Robust Trucking Drives Economy Forward

This Opinion piece appears in the Dec. 15 print edition of Transport Topics. Click here to subscribe today. By David Congdon and Bill Cranfill

Old Dominion Freight Line

The trucking industry today operates at or near capacity, a testament to the resiliency of the U.S. economy that has rebounded from the depths of the recession.

However, the failure to fix the nation’s highways can prove to be problematic for the industry — but more on that later.

If 2013 was overshadowed by worries about the economy, 2014 has certainly been the year the trucking industry stopped rebuilding from the recession of 2008 and started substantive growth. Over the next 18 months, carriers such as Old Dominion Freight Line likely will expand their fleets just to meet increasing freight demands.

In 2013, the trucking industry moved 69.1% of all domestic shipments, up from 68.5% the previous year. By 2024, that share is projected to increase to 70.8%. Data from American Trucking Associations also indicate that truckload volumes should grow by 3.2% annually through 2018, while the less-than-truckload segment is expected to grow by 3.5% annually during this timeframe.

A flurry of new regulations over the past few years have left the industry scrambling to some degree, but Washington could help the industry — and consumers as a whole — if it would allow LTL carriers to increase capacity safely, ultimately reducing the cost of goods for American consumers and businesses.

Technology has enabled the industry to save fuel, be safer, utilize better routing and packing systems, and otherwise take costs and time out of the supply chain system — which benefits all of us. The opportunity to deliver even greater efficiency, however, lies in the use of greater capacity and more technologically advanced trucks that can bring more goods to market.

Even a modest increase in trailer size, with no increase in weight limit, will improve highway safety and maintenance, and lower fuel use, thanks to better technology and industry innovation. Increasing cubic capacity actually will reduce the number of trucks on the road, providing a reduction in fleet fuel consumption and roadway congestion. Old Dominion and the LTL industry primarily use twin 28-foot trailers in over-the-road operations. We are advocating a modest increase to twin 33-foot trailers with no increase in the 80,000-pound weight limit.

To ensure the positive trajectories of the transportation industry and our nation’s economy continue, we need legislation that does not stifle the industry’s ability to meet demand. Battles over the budget, health care and political nominations distract us from the real conversations.

Old Dominion is optimistic that our elected representatives in Washington will authorize the increase in trailer length for our industry, not to mention the necessary funds to upgrade the nation’s infrastructure. But Congress must take action before it’s too late.

We look forward to working with our colleagues in Washington on initiatives that will help ensure a vibrant, successful and more efficient supply chain and propel the economy to heights unseen.

Another one of those hoped-for initiatives involves highway funding.

The U.S. highway system is broken. More than 32% of the nation’s roads are in poor or mediocre condition, according to American Society of Civil Engineers, and will continue to fall into further disrepair unless we as a country take action.

Amid the steady deterioration of decades-old roads and bridges, cash for the U.S. Highway Trust Fund can’t keep up with the increased capacity on the nation’s infrastructure, leading to more potholes and one in nine bridges being declared structurally deficient by the ASCE.

The American people have grown tired of our nation’s failing infrastructure. In fact, more than half (52%) of Americans surveyed by AAA said they would pay higher fuel taxes for better roads, bridges and mass transit systems.

Many of us in the trucking industry agree.

The real issue is the maintenance of U.S. highways is grossly underfunded. The need for infrastructure spending is nearly three times the amount of funding that has been allocated. For motorists and the trucking industry alike, an increase in fuel taxes is one of the most efficient mechanisms for funding the necessary improvements to the national highway system.

Higher fuel taxes not only will help the trucking and freight industry, but the increased revenue from these taxes will ensure the safety of all motorists who rely on the nation’s interstates.

The Senate agreed this July on a short-term solution, and the House passed a $10.8 billion bill to keep projects going through next year. But without resolution, we’ll be back out of funds in less than a year.

Perpetuating the problem, inflation and increased fuel economy have cut the purchasing power of the current tax by nearly half. Concurrently, only 5% of respondents to the AAA survey believe the federal government should spend less on transportation, and rightfully so. Who wants to travel when road conditions continue to worsen?

Take the recent Interstate 5 Skagit River Bridge collapse in Washington state, for example. The bridge did not meet current standards and, as a result, it collapsed into the river. A total of three people in two different vehicles fell with the span but were rescued by boat and luckily survived with no serious injuries.

Incidents such as this will continue to increase in frequency until federal and state legislators step up to the plate and take control of the American highway system. Something must be done soon and before we see another tragedy resulting from deteriorating infrastructure.

Americans — with the trucking industry leading the charge — are ready to pay their share in fuel taxes to improve highway safety and interstate commerce.

Now it’s time for the politicians to listen.

Congdon is president and CEO of Old Dominion Freight Line Inc. He has more than 43 years of experience in the transportation industry. Cranfill joined ODFL in 2007 and serves as vice president for government relations and assistant general counsel.