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Dec 07, 2018

Trucking Industry Update December 7, 2018

Trucking Industry Update December 7, 2018

By Jeremy Feucht

Did you Know?

On December 8, 1993, NAFTA (North American Free Trade Agreement) was signed into law. For more on how NAFTA affects trucking, check out the FMCSA Fact Sheet.

Trucking tip of the Week

Snow has begun to fall more frequently across the US. Make sure to allow yourself plenty of stopping distance. If you haven’t already, store an extra set of warm clothes and plenty of blankets in your truck in case you run into trouble out on the road.

Diesel Fuel Tax Increase

Multiple states are considering an increase to their state fuel tax rates. The state that will be the quickest to approve the increase may be Illinois. If Illinois does not do it as a state, the city of Chicago may do it on its own. Citing the need to push ahead with construction jobs that have been tabled, officials say there will not be enough revenue to get it all done without the tax increase. With diesel prices expected to soar by mid-2019 into the $4 per gallon range, any proposed increase in fuel taxes are worth noting.

Tariffs and Trucking

Could we see an earlier peak season than normal in 2019? With the recent pause being placed on tariffs from China, a rush may be placed on orders to arrive in the US before the threat of tariffs comes to fruition. Last year, with tariffs being imminent, peak season shifted from August to July. While it is a plausibility that the Journal of Commerce entertains (and makes a valid point),due to weather related issues that come with the first quarter of the year, it is highly unlikely that a full-scale shift from late spring/early summer for the peak season will come to pass. The ports will undoubtedly be busier than normal for that time of the year, but a total shift is unlikely to occur.

General News

The Federal Highway Administration enacted new regulations that will force all agencies to investigate environmental impacts of proposed legislation prior to enacting new rules. While the trucking industry will not feel the effects of this rule immediately, this could be the start of a wider range of rules that could make older trucks illegal to drive for commercial purposes.