"We regret that the FMCSA and the Obama Administration have put the ATA and its member companies in a position to take this legal action" said ATA President and CEO in announcing that the ATA has filed a petition in the D.C. U.S. Court of Appeals. In the suit, the ATA is asking the court to review the recently published 'final' rule that has changes hours-of-service for commercial drivers.
The basis of this action is that the ATA feels the FMCSA did not follow the proper rules and procedures for rule-making in reaching this decision to bring the change in the regulations. For more, click here
Tuesday, February 21, 2012
Monday, February 13, 2012
2012 Game Changers
John G. Larkin, CFA,
Managing Director with Stifel Nicolaus Equity Research, Transportation
& Logistics provides his insights on 2012 logistics outlook. The summary is
below and the full article may be found here.
1. The November 2012 elections in the U.S. will set the tone (one way or the other). Will Americans opt for more regulation, higher taxes, energy inflation, demonization of capitalism and the so-called "rich"? Or will the political pendulum swing back toward the right once again?
2. The U.S. takes a giant step towards energy self-sufficiency.
3. Congress finally passes a Surface Transportation Infrastructure Bill.
4. Mexico cements its position as "the new China."
5. Federal Motor Carrier Safety Administration (FMCSA) Regulations (new and proposed) and deteriorating driver demographics set the stage for "the mother of all capacity shortages.”
6. Dedicated fleets finally become the rage.
7. Truck brokerage approaches saturation.
8. Eastern rail-based intermodal infrastructure reaches critical mass: the stage is set for additional market share to shift to all-water service.
9. U.S. export growth taxes port capacity.
10. Resurgence of the U.S. industrial base accelerates.
Conclusion: While it is always challenging to look into a crystal ball and predict the major trends that will shape any industry, we are struck by the number of generally favorable trends that are evolving in the broader transportation and logistics space—almost all of which will have the net effect of reducing effective capacity or increasing demand for freight transportation and logistics services.
1. The November 2012 elections in the U.S. will set the tone (one way or the other). Will Americans opt for more regulation, higher taxes, energy inflation, demonization of capitalism and the so-called "rich"? Or will the political pendulum swing back toward the right once again?
2. The U.S. takes a giant step towards energy self-sufficiency.
3. Congress finally passes a Surface Transportation Infrastructure Bill.
4. Mexico cements its position as "the new China."
5. Federal Motor Carrier Safety Administration (FMCSA) Regulations (new and proposed) and deteriorating driver demographics set the stage for "the mother of all capacity shortages.”
6. Dedicated fleets finally become the rage.
7. Truck brokerage approaches saturation.
8. Eastern rail-based intermodal infrastructure reaches critical mass: the stage is set for additional market share to shift to all-water service.
9. U.S. export growth taxes port capacity.
10. Resurgence of the U.S. industrial base accelerates.
Conclusion: While it is always challenging to look into a crystal ball and predict the major trends that will shape any industry, we are struck by the number of generally favorable trends that are evolving in the broader transportation and logistics space—almost all of which will have the net effect of reducing effective capacity or increasing demand for freight transportation and logistics services.
Transportation Reauthorization Bill House vs. Senate
This week the U.S. House of Representatives and the U.S. Senate are scheduled to debate their respective versions of the Transportation Reauthorization Bills. The following information is a basic summary of each piece of legislation.
- House Bill – H.R. 7, the “American Energy & Infrastructure Jobs Act of 2012.”
- Five-year Bill at $260 billion
- Funding Sources
- Extend the motor fuel taxes, and all three non-fuel excise taxes at their current rates through September 30, 2018.
- Net increases in Federal revenues from certain onshore and offshore domestic energy leasing and production; be appropriated to the Highway Trust Fund.
- Ends the transfer of all motor fuel tax amounts to the Mass Transit Account, instead funds the account with a one-time appropriation of $40 billion.
- Partisan Legislation
- Senate Bill – S. 1813, the “Moving Ahead for Progress in the 21st Century Act” (MAP-21).
- Two-year Bill at $109 billion
- Funding Sources
- Extends the motor fuel taxes and three non-fuel excise taxes at their current rates through September 30, 2015.
- Transfer $3 billion from the Leaking Underground Tank Trust Fund (LUST Fund) to the Highway Trust Fund.
- Prohibits taxpayers from claiming the cellulosic bio-fuels credit for unprocessed or excluded fuels as defined in section 40(b)(6)(e)(iii) (such as black liquor).
- Transfer the gas guzzler taxes received in the Treasury to the Highway Trust Fund.
- Establish a provision that bars the Secretary of State from issuing a passport to any individual who has a seriously delinquent tax debt. (Excess of $50,000).
- Establish a provision that allows the Department of Treasury to levy up to 100 percent of a payment to a Medicare provider to collect unpaid taxes.
- Appropriate from the General Fund and deposit in the Highway Trust Fund amounts equivalent to amounts received in the General Fund for fiscal year 2012 through fiscal year 2014. Customs Duties collected on imported vehicles are an example of funds deposited into the General Fund.
- President Obama supports
- Bi-partisan Legislation
Highway Bill Nears Vote
Both houses of Congress were scheduled to vote this week on separate transportation reauthorization bills that would provide highway spending of more than $41 billion annually.
The Senate’s $109 billion bill is a two-year bipartisan proposal that last week survived a test vote of 85-11 on a measure that limits debate to 30 hours and prevents a filibuster of the bill.
After the Feb. 9 vote, Sen. Barbara Boxer (D-Calif.), chairwoman of the Environment and Public Works Committee, begged colleagues not to attach “controversial or extraneous” amendments that would “slow this bill down.”
The nation’s transportation system is currently being funded by the eighth temporary extension since the previous reauthorization bill expired in 2009.
The Senate bill contains no new taxes and does not address truck weights or lengths, although it would mandate electronic onboard recorders for trucks.
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