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Diesel Price Drops 3.7¢ to $3.651 a Gallon

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The U.S. national average diesel price dropped by 3.7 cents to $3.651 per gallon, marking the seventh consecutive week of decline. Since mid-July, diesel prices have fallen by 21.4 cents. Year-over-year, the price is down by 82.4 cents, providing some relief to the trucking and logistics industries. The most significant drops occurred in the Rocky Mountain and West Coast less California subregions.

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Diesel prices in the U.S. have continued to fall, with the national average dropping by 3.7 cents to $3.651 per gallon, according to the latest data from the Energy Information Administration (EIA). This marks the seventh week in a row that diesel prices have declined, with a total reduction of 21.4 cents since mid-July. Compared to this time last year, the price is down by 82.4 cents per gallon, offering some financial relief to the trucking and logistics industries that have been dealing with high fuel costs.

The biggest year-over-year decreases were seen in the Rocky Mountain region and the West Coast less California subregion, where prices fell by $1.05 and $1.08 per gallon, respectively.

Diesel prices fell across all ten regions tracked by the EIA, ranging from a decrease of 5 cents in New England to 1.3 cents in the West Coast less California subregion. Here’s a closer look at how prices changed in various regions:

  • East Coast (PADD 1): Prices fell by 3.2 cents to $3.725 per gallon. New England saw the steepest drop in this region, with a 5-cent decrease to $3.969 per gallon.
  • Midwest (PADD 2): This region recorded the largest decrease this week, with prices dropping by 4.7 cents to $3.627 per gallon.
  • Gulf Coast (PADD 3): Known for having the lowest diesel prices in the country, this region saw a decrease of 3.8 cents, bringing the price to $3.317 per gallon.
  • Rocky Mountain (PADD 4): Prices fell by 4.2 cents to $3.608 per gallon, maintaining relatively stable pricing compared to other regions.
  • West Coast (PADD 5): The average price dropped by 2.2 cents to $4.272 per gallon, with California experiencing a 3.2-cent decline, bringing the price to $4.707 per gallon.

The ongoing decline in diesel prices is due to various factors, including decreased demand, stable crude oil prices, and seasonal changes in fuel consumption. These trends have eased some of the financial pressure on trucking companies and other businesses that rely heavily on diesel fuel.

How This Affects You: Truck Drivers

For truck drivers and those in the trucking industry, the recent drop in diesel prices is welcome news. Lower fuel costs mean reduced expenses for operators, especially owner-operators and small trucking businesses that are heavily impacted by fuel prices. Over the past two years, high diesel costs have been a significant challenge, so this decline can help improve profitability and reduce overall operating costs.

Additionally, the drop in diesel prices can make it more affordable for companies to maintain their fleets and could lead to lower transportation costs for goods. This might also positively impact the broader economy by helping to keep the cost of goods down, which is beneficial for consumers and businesses alike.

As a truck driver, staying updated on fuel price trends can help you plan your routes and fueling stops to maximize your savings. While fuel prices can be unpredictable, the current downward trend provides a bit of breathing room for the industry.

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Jury Says Wabash Owes $462 Million in Fatal Crash Case

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A St. Louis jury awarded $462 million in damages against Wabash National Corp., a trailer manufacturer, for its role in the deaths of two men who died in a 2019 crash when their car went underneath a Wabash trailer. The jury determined that Wabash failed to install safer trailers for over 30 years. Wabash is reviewing its legal options and argues that the trailer met all existing safety standards at the time of manufacturing.

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A St. Louis jury has ruled that Wabash National Corp., a trailer manufacturer, must pay $462 million in damages related to a 2019 crash that resulted in the deaths of two men, Taron Tailor and Nicholas Perkins. The crash occurred when their car collided with the rear of a Wabash-manufactured trailer, and the rear impact guard failed, allowing the car to slide under the trailer. Each family received $6 million in compensatory damages, and an additional $450 million was awarded in punitive damages, which the plaintiffs argue represents the amount Wabash saved by not upgrading to safer trailer designs over three decades.

Wabash National, headquartered in Lafayette, Indiana, responded to the verdict by stating that the trailer involved in the crash was manufactured in 2004 and met all regulatory standards at the time. They disagree with the jury’s decision, arguing that no existing rear impact guard or safety technology would have changed the outcome of the crash. Wabash also pointed out that evidence, including the fact that the driver’s blood alcohol level was above the legal limit and that neither the driver nor the passenger was wearing seat belts, was not presented to the jury.

The case has drawn attention to the broader issue of underride crashes, where a smaller vehicle slides under a truck or trailer, often resulting in severe injuries or fatalities. The plaintiff’s legal team argued that Wabash never conducted effective crash tests on their two-post impact guards and chose not to upgrade to safer, modern four-post designs to save money. They also criticized the existing federal safety standards for underride guards as inadequate and outdated.

This verdict could have significant implications for the trucking industry, which has historically resisted stricter regulations on impact guards. Advocates for crash victims are hopeful that the ruling will prompt federal regulators to enforce more robust safety standards for underride guards, which they argue are necessary to protect road users.

Wabash is currently evaluating its legal options and maintains confidence in the safety and quality of its products. The company has stated that this ruling will not deter them from continuing to provide trailers that contribute to road safety.

How This Affects You: Truck Drivers

If you’re a truck driver, this case highlights the importance of trailer safety and the ongoing discussions around underride guards. The ruling against Wabash could lead to stricter regulations for trailer manufacturers, including potential updates to the requirements for underride guards on trailers. As a driver, this could impact the type of equipment you use, and it may also increase the safety measures on the roads.

For those in the industry, staying informed about changes in safety regulations and equipment standards is crucial. Upgraded underride guards could prevent tragic accidents and improve overall road safety for all drivers. As discussions around trailer safety continue, it’s important for truck drivers and companies to prioritize compliance with the latest safety standards to minimize risks and liabilities.

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$3.5 million in grants to 27 colleges for commercial driver’s license (CDL) training programs.

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Federal Motor Carrier Safety Administration

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The Biden-Harris Administration is awarding nearly $3.5 million through the Federal Motor Carrier Safety Administration (FMCSA) to support 27 CDL training programs. These grants aim to improve driver safety, create opportunities for veterans and underserved communities, and expand the number of well-trained CDL holders as part of a broader effort to strengthen America’s supply chains and support truck drivers.

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The Biden-Harris Administration, through the Federal Motor Carrier Safety Administration (FMCSA), is investing nearly $3.5 million in grants to 27 colleges and commercial driver’s license (CDL) training programs. This funding is part of the Commercial Motor Vehicle Operator Safety Training (CMVOST) Grant Program, designed to improve driver safety and create new career opportunities in the trucking industry.

U.S. Transportation Secretary Pete Buttigieg highlighted that this funding will help address the growing demand for truck drivers while preparing for the future. The grant program has three main goals: to expand the number of CDL holders with advanced safety training, to offer opportunities for veterans and their families to join the trucking or busing industry, and to increase training for individuals from rural, refugee, and underserved communities.

FMCSA Deputy Administrator Vinn White emphasized that the focus of their work is on safety, both for the roadways and for commercial motor vehicle drivers. The funding is intended to make it easier for new drivers to enter and stay in the commercial vehicle industry.

Over half of FMCSA’s annual budget goes to funding states and local communities to promote commercial motor vehicle safety. Apart from the CMVOST program, FMCSA also offers funding through the High Priority Grants Program and the Commercial Driver’s License Program Implementation Grant, all contributing to the Department of Transportation’s National Roadway Safety Strategy.

The FMCSA is committed to preventing crashes, fatalities, and injuries involving large trucks and buses. They develop safety standards, analyze data, conduct research, and work with various stakeholders to improve commercial driver training and safety.

How This Affects You: Truck Drivers

If you’re a truck driver or considering a career in trucking, the Biden-Harris Administration’s recent funding boost could directly benefit you. For current drivers, this means access to enhanced training programs designed to improve safety skills and potentially make your job safer and more efficient.

If you are a veteran, a member of the National Guard, or from a rural or underserved community, these grants are creating pathways to enter the trucking industry. The funding helps make training more accessible, which can lower the barriers to starting a career as a commercial driver.

Overall, these initiatives are part of a broader effort to strengthen America’s supply chain by ensuring that there are enough skilled drivers on the road. By focusing on safety and providing more training opportunities, the FMCSA aims to support drivers and keep the roads safer for everyone.

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Trucking Wages Continue to Rise Despite Challenging Freight Economy

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ATA

WASHINGTON, Sept. 3, 2024 /PRNewswire/ — Today, the American Trucking Associations released the results of its latest Driver Compensation Study showing that, despite a currently challenging freight market for motor carriers, driver wages across the industry continue to increase post-pandemic. The study provides detailed wage and benefit information for drivers based on a wide-ranging survey that collected data from 120 fleets, more than 150,000 employee drivers and 14,000 independent contractors.

Among the key findings in this year’s survey:

  • Truckload drivers earned a median annual amount of $76,420 in 2023 – a 10% increase over the previous two years.
  • Linehaul less-than-truckload drivers earned a median annual amount of $94,525 in 2023, while local LTL drivers earned a median of $80,680.
  • Median annual compensation for drivers at private carriers has risen 12% since 2021, reaching $95,114 in 2023.
  • Leased-on independent contractors for truckload carriers were paid an annual median amount of $186,016 in 2023.
  • Carriers offered smaller referral and fewer sign-on bonuses for new drivers in 2023 compared to 2021 but more frequently offered tenure bonuses to their current drivers and with a greater median value.

“While our last study, conducted in 2021, illustrated how drivers benefitted from the strongest freight environment in a generation, this latest report shows professional drivers’ earnings are still rising—even in a weaker freight economy,” 

“While our last study, conducted in 2021, illustrated how drivers benefitted from the strongest freight environment in a generation, this latest report shows professional drivers’ earnings are still rising—even in a weaker freight economy,” said American Trucking Associations Chief Economist Bob Costello. “By offering greater tenure bonuses to their current driver force, many fleets appear to be shifting their workforce priorities from recruitment to retention.”

“Trucking is one of the few roads in today’s economy that lead to the middle class without requiring a college degree and the debt that comes with one,” said ATA President and CEO Chris Spear. “As this study shows, those pursuing a career as a professional truck driver will find strong earning potential in this field, which remains in high demand and will only continue to grow higher in the years to come.”

The full 2024 ATA Driver Compensation Study is available for purchase at ATABusinessSolutions.com.

American Trucking Associations is the largest national trade association for the trucking industry. Through a federation of 50 affiliated state trucking associations and industry-related conferences and councils, ATA is the voice of the industry America depends on most to move our nation’s freight.  Follow ATA on Twitter or Facebook.  Nothing Without Trucking.

SOURCE American Trucking Associations

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