ORLANDO, Fla. — Truck rates could be headed sharply higher in early May, Kenny Lund told attendees of the National Watermelon Association convention on Feb 21.
Lund, executive vice president at the Allen Lund Company, La Canada, Calif., said the rate outlook for the entire year is flat to slightly higher.
However, the Commercial Vehicle Safety Alliance’s (CVSA) international Roadcheck in May could cause rates to temporarily jump 40% as a result of drivers staying off the road to avoid the enforcement action. While in previous years Roadcheck took place in June, this year it is slated for May 5-7.
The Roadcheck, according to the CVSA website, is the largest targeted enforcement program on commercial motor vehicles in the world. During that 72-hour period, approximately 17 trucks and buses are inspected, on average, every minute in Canada, Mexico and the U.S., the group said.
This year, the focus is on the driver requirements category of a roadside inspection, according to the CVSA website.
“The Commercial Vehicle Safety Alliance is one of the unaccountable quasi-government organizations that runs Roadcheck, and we see the highest prices in transportation when Roadcheck happens,” Lund said. “Why? Because thousands of truckers stop operating because (inspectors) do a concentrated inspection (period) for three days and it messes up transportation for about two weeks.”
If shippers can avoid shipping during that time, they may avoid paying the highest transportation prices of the year.
“If you have your own trucks and drivers out on the road, make sure they have all their requirements, all their testing all their paperwork, because during that time there will be a concentrated inspections on the trucks,” he said.
Besides the expected rate spike in early May, Lund said he think truck rates for 2020 could change between zero and 5% higher, representing a relatively quiet year after rates bottomed out in 2019.
In his speech to the convention, Lund also talked about the 150-air mile radius exemption (171.2 road miles) where drivers do not have to record hours-of-service when hauling agricultural commodities from their source.
“It is really important, and especially helps from the field to the packing shed if you have your own trucks,” Lund said. “If you have some regular runs, from the field to the one of the ports, that is a 171.2 mile (exemption) both ways — coming into where they are loading at and going out.”
Lund said reports of a driver shortage are wrong.
“The big trucking companies talking about a driver shortage, but let me tell you in 2018, when we had the highest prices, we also had the biggest influx of drivers coming in,” Lund said. “It is more of a money shortage at time, and not so much of a driver shortage.” If prices are high, the industry will attract needed drivers, he said.
On the question of autonomous trucks, Lund told NWA attendees that he doesn’t see robot truck drivers taking over anytime soon.
“I say no — not for a long time, and especially with produce, where truckers have to be able to check the product, to make sure it is loaded properly, that it is pre-cooled, to check the temperatures, to make sure it is unloaded properly,” he said. “And so that will not happen.”
On the other hand, Lund said autonomous vehicles could operate short routes, such as from the field to the packing shed.
Trucks with autonomous capability could eventually also be used for long-haul routes when accompanied by a driver, Lund said.
Lund urged watermelon grower/shippers to use live temperature tracking technology to keep an eye on the condition of their loads.
“(The cost) is down to about $25 per load and it is your best insurance, and if you could tie that to a transportation management system, that is key,” he said.
Independent contractor law
Lund said California’s AB 5 law is an attack on independent contractors such as truckers.
He said the law was an attempt to unionize Lyft and Uber drivers but would have big threat to many industries. “It has been held up in court, thankfully,” Lund said. “It looks like it’s not going to get through, but it is very worrisome.”
Lund said legislation similar to AB 5 has been introduced in New Jersey and in the U.S. House of Representatives.
“If in this election the Senate is flipped (to Democratic) and presidency has flipped, you will see that (law) come in,” he said. “It is going to make it very difficult for independent contractors to operate and that will affect all operations,” he said.
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