The industry expects a rollback of federal rules under a second Trump administration.

The trucking industry anticipates a much different regulatory environment under a second Donald Trump presidency than in the past four years of President Joe Biden’s administration.

Carriers and other stakeholders are closely monitoring — and advocating for — shifts in safety, labor and emissions rules as the Republican president-elect returns to the White House.

“I wouldn’t look for this administration to be very forward-leaning on adding a regulatory burden on our industry or many others,” American Trucking Associations President and CEO Chris Spear told Trucking Dive in an interview.

1. ‘Speed limiters are dead’

The ATA and Owner-Operator Independent Drivers Association are divided on the issue of requiring speed limiters, with ATA in favor and OOIDA against.

The rival trucking groups are on the same page, however, about the safety regulation’s prospects for the next four years. The Federal Motor Carrier Safety Administration postponed the rule last year.

“Speed limiters are dead,” OOIDA EVP Lewie Pugh declared in an interview. “I think Trump getting elected will kill speed limiters.”

Spear agreed, saying he would be “very surprised if that were a front-burner issue under this incoming administration.”

2. California won’t enforce ACF emissions rule

California this week withdrew its waiver request to implement its Advanced Clean Fleets rule ahead of Trump taking office. The rule would have required a shift to zero-emission vehicles by 2036.

“The California Trucking Association has consistently stated the Advanced Clean Fleets Rule was unachievable,” the group’s CEO, Eric Sauer, said in a statement. “We look forward to engaging all stakeholders, including CARB and EPA, to continue the trucking industry’s efforts to further reduce emissions in a technologically feasible and cost-effective manner that preserves our state and the nation’s critical supply chain.”

But Elon Musk’s influence on the upcoming administration could play a role in advancing an electric vehicle agenda, Harbor Trucking Association CEO Matt Schrap said during a SoCal Supply Chain Meetup panel last month.

Noting the policy shifts with changing administrations, the ATA publicly called on OEMs in November to pull out of an agreement with the California Air Resources Board, saying Trump’s election created an opportunity to rechart zero-emissions timelines.

“It’s a call for unity,” Spear said last month, adding that CARB and the Biden administration “enabled an accelerated path that was simply unachievable.”

3. ‘Not putting cart before the horse’ on EPA emissions deadlines

Scrapping the EPA’s Phase 3 greenhouse gas rule would require research to justify doing so, which “won’t happen on day one” of the new administration, Spear said in October.

But ATA and the Truckload Carriers Association expect emissions deadlines to be delayed to allow the industry, equipment and infrastructure to reach environmental goals.

“We want to support the environment,” said David Heller, TCA SVP of safety and government affairs, in an interview. “We just have to do so in a strategic way.”

Current environmental requirements have deadlines in advance of equipment coming into mass production, he said.

Emissions rules must avoid “cart-before-the-horse-type scenarios,” and the TCA will work with the EPA to develop realistic standards for the industry, Heller said.

4. Independent contractor, organized labor laws in the spotlight

The trucking industry has expressed support for Trump’s Department of Transportation and EPA nominees. It hasn’t been quite as keen on his selection for secretary of labor, former U.S. Rep. Lori Chavez-DeRemer.

ATA encouraged a thorough vetting of Chavez-DeRemer’s positions on independent contractor law and her sponsorship of the Teamsters-backed Protecting the Right to Organize (PRO) Act.

Spear called the PRO Act a “highly offensive piece of legislation to not just trucking, but everyone in the business community.” But meetings with the Labor Department transition team were productive in allowing ATA to voice members’ priorities and concerns, he said.

“She will certainly be supported by people in the department that are like minded with us, and we’ll get the job done,” Spear told Trucking Dive last month.

OOIDA anticipates Trump’s labor department will do away with Biden administration policies, Pugh said.

“I’m hoping they’re not as friendly with ATA on that as they were the last time, to put in a bunch of stuff to allow control of owner operators,” he said. “But I guess we shall see.”

5. Autonomous trucking rules could set course for trucking’s future

Trucking interests are closely watching the future of autonomous vehicle rules that could come down from FMCSA in 2025 or the following years.

The agency’s rulemaking will provide clarity about the future for AV trucks, Spear said.

It’s another area where the industry will be examining Musk’s ability to wield his influence on the incoming administration, given Tesla’s investment in autonomous driving.

“Obviously, Elon Musk’s role with this president is going to be notable,” the ATA CEO said. “It just can’t be dismissed.”

The trucking and transportation industry is ripe with opportunity for entrepreneurs who want to enter a field that contributes immensely to the U.S. economy. According to data released by the American Trucking Association in 2019, industry revenues grew to $796.7 billion in 2018, which was nearly $100 billion more than in 2017.

Along with the opportunity comes responsibility.

1. Get professional legal, accounting, and tax guidance.

It’s advisable to enlist the expertise of licensed practitioners in law, accounting, and taxes, who can offer specialized guidance for your situation. Doing research online can help you identify what you must consider, but it is not a replacement for one-on-one counsel from licensed professionals.

2. Carefully choose the business structure for your trucking company.

The business entity you choose will affect the personal liability, tax obligations, and other aspects of your trucking business:

Legal Matters

With sole proprietorships and partnerships, there’s no legal or financial separation between the business owners and the company—they are the same legal and tax entity. That makes owners personally liable if someone sues the business. On the other hand, Limited Liability Companies (LLCs) and corporations are independent legal and tax entities, thereby reducing the risk that owners' assets will be taken in the event of a lawsuit filed against the business.

Tax Treatment

Income Taxes
The profits of sole proprietorships, partnerships, LLCs, and C Corporations that file for S Corp tax treatment pass through to the owners (or shareholders) of the company. Those profits get reported on the owners’ individual income tax returns and taxed at the applicable individual tax rates. Corporations (known as C Corps) that do not opt to be taxed as an S Corp are taxed at the corporate income tax rate. They experience “double taxation,” which means a corporation's profits are first taxed at the corporate rate and reported on the corporation’s tax return. Then, if the corporation distributes dividends to shareholders, those distributions get taxed again on each shareholder’s personal tax statement.

In most states, state income taxes are applied in the same manner as federal income taxes.

Any businesses with employees and all LLCs and corporations must obtain an EIN (Employer Identification Number), also known as a “Federal Tax ID Number” from the IRS for tax filing purposes.

Self-employment Taxes
Owners of sole proprietorships, partnerships, and LLCs must also pay self-employment taxes (Medicare and Social Security) on all business profits. Owners of S Corporations and Corporations only pay self-employment taxes on wages and salaries that the business pays them. Business profits paid to them as distributions (dividends) are not subject to self-employment taxes.

Growth Considerations

The need for financing can also affect which business entity type is best. Many investors and lenders will only provide funding to a business that’s registered as an LLC or corporation.

Compliance Complexity

The amount of registration paperwork and ongoing compliance requirements vary by entity type. There typically isn't any formation paperwork required when operating as a sole proprietorship or partnership, aside from filing a DBA (doing business as) if using a fictitious name rather than one that contains the first and last names of the business owners. LLCs must file Articles of Organization and corporations must file Articles of Incorporation to form their entities. Depending on the state and the entity type, there may be other filings and activities, as well. C Corporations have more formalities (such as appointing a board of directors and adopting bylaws) than other entity types. To keep legal costs in check when forming and running a business entity, consider using an online business filing service to prepare and submit the necessary filings.

3. Write a business plan.

Starting a trucking company has a lot of moving parts, such as the purchase or lease of a truck and trailer, plate fees, fuel, inspections, maintenance, repairs, various licenses and registrations, insurance, staff, filing fees, and legal and accounting services. A business plan serves as a roadmap to help guide business owners through the startup process and beyond.

A business plan may change as the industry or business climate evolves. It’s a dynamic rather than a static document.

Some of the components generally included in a business plan are:

• Executive Summary

• Company Description

• Market Analysis

• Sales and Marketing

• Financial Projections

Talk with a SCORE mentor about what your business plan should cover and where you might find a suitable template to use as a starting point.

4. Research and obtain the business licenses and permits your trucking business needs.

Besides the general business licensing requirements, trucking businesses face industry-specific tax, license, and permit regulations, too. I’ve listed some common requirements below:

• CDL (Commercial Driver’s License) - Any truck driver working for a trucking company must have a CDL from the state driver licensing agency in their state of residency.

• Federal DOT Number –  The Federal Motor Carrier Safety Administration issues USDOT numbers, and the U.S. Department of Transportation uses them to collect and monitor a trucking company's safety information, including inspections and accident investigations.

• Operating Authority – For-hire freight carriers and those that transport (or arrange for the transport of) federally regulated commodities in interstate commerce must obtain operating authority (also known as “trucking authority”). That requires applying for an MC Number (Motor Carrier Authority Number) through the FMCSA. To obtain operating authority, trucking companies must provide proof of liability insurance.

• Registration with the Unified Carrier Registration (UCR) system – Individuals and companies that operate commercial vehicles in interstate or international commerce must register in a state that participates in the UCR program. There is an annual fee (varies depending on the size of the fleet). If a trucking company’s home state doesn’t participate in UCR, the business must register with UCR in a state that does participate.

• Heavy Vehicle Use Tax – Trucking companies must file an annual Heavy Highway Vehicle Use Tax Return and remit the applicable tax (for trucks that weigh more than 55,000 pounds) for their fleet. Costs can range from approximately $100 to $550 per year per vehicle.

• Designate a Process Agent – Trucking companies must designate a process agent in each state where they have an office or establish contracts. Process agents are used in the event that court papers are served to the trucking company in a state other than the one its business is registered in. Some process agents offer coverage in all 50 states.

• International Registration Plan (IRP) Registration – The IRP distributes commercial motor carrier registration fees to U.S. states, the District of Columbia, and Canadian provinces based on the miles traveled in each state or province.

• International Fuel Tax Agreement (IFTA) Permit and Decals – IFTA is an agreement between the lower 48 states of the U.S. and Canada’s provinces to simplify motor carriers' reporting of their fuel use and taxes. Carriers that drive in multiple states and/or across Canadian provinces must make quarterly reports and tax payments to the International Fuel Tax Association, Inc., which distributes tax revenues to the individual states and provinces.

Note that your trucking company may have other requirements to fulfill, depending on the state where they're located and other factors.

5. Create a calendar for your ongoing business compliance responsibilities.

As you can see, there are many details to stay on top of when running a trucking business. To operate your company legally year after year, you'll have ongoing business compliance responsibilities to fulfill. Depending on the business entity type, there might be annual reports to file, annual meetings to hold, registered agent services to keep current, and more. It's critical to stay up to date with all filings, reports, fees, taxes, license and permit renewals, fee payments, and all other requirements for operating a trucking business. Failure to do so can put your company at legal risk and jeopardize its good standing with the Secretary of State and other authorities. I recommend having a compliance calendar laid out for each upcoming year so that you don't lose sight of when filings and reports are due. Some online business document filing companies have free compliance monitoring tools you can use to get notifications when upcoming filings and reports are nearing their due dates.

Nellie Akalp

Fiery accident involving car, tractor-trailer, and gasoline truck carrying 8,500 gallons shuts down I-95, causing massive damage

I-95, the primary north-south highway along the East Coast, was shut down as a result of a fiery accident involving a car, a tractor-trailer, and a tanker truck carrying 8,500 gallons (about 32,000 litres) of gasoline. A gasoline truck that was travelling on I-95 erupted in flames in a horrific explosion, causing massive damage and forcing a complete closure of the highway in both directions. The fire, which sent flames and black smoke billowing into the air, destroyed the truck and damaged nearby properties.

Gas truck explodes on I-95 in Connecticut

Connecticut Governor Ned Lamont assured that no major injuries or fatalities have been reported. However, the massive fire has wreaked havoc on traffic. Firefighters raced to the scene to put out the flames and assess the damage from the crash, which shut down the highway and raised questions about safety and the potential effects on the surrounding.

The best approach to decarbonization provides the greatest environmental benefit at the lowest possible cost. Current regulations do neither while unleashing inflationary consequences that will be felt for decades to come.

EV mandates for the trucking industry are an enormous mistake for many reasons validated by a new study from the American Transportation Research Institute. The report, Renewable Diesel – A Catalyst for Decarbonization, provides data using the U.S. Department of Energy's GREET model that proves renewable diesel (RD) has a much smaller carbon footprint over its lifecycle than do battery-electric trucks, and that widescale adoption of RD in trucking can be achieved at a fraction of the cost of electrification.

To be clear: the trucking industry is not opposed to battery-electric vehicles (BEV). Some fleets are testing them, and the initial results are mixed at best. What's abundantly clear from early adopters of this technology is that the hurdles to widescale adoption are so massive and undeniable that target and timelines mandated by the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) can be described as nothing more than utterly disconnected from reality.

This week a fleet manager for PITT OHIO, an early-adopter of BEV trucks, testified on Capitol Hill to explain the real-world challenges of commercial vehicle electrification to members of Congress:

What we do oppose are one-size-fits-all mandates that impose singular technologies onto an extremely varied industry like trucking while ruling out alternative fuel sources that offer greater environmental, operational, and financial benefits. Just as any good toolbox contains a diverse set of tools, each designed for specific tasks, the trucking industry needs a range of technologies tailored to different operational needs. Hammers are great at driving nails, but it's not advisable to build a house with just a hammer. BEV trucks might work well in specific trucking operations, such as urban delivery and school buses--but you cannot move the entire U.S. economy on battery-electric alone.

EPA's new Greenhouse Gas Phase 3 regulation classifies BEV trucks as "zero-emission," but that's only because regulators looked solely at tailpipe emissions and excluded the full life-cycle carbon footprint of battery-electric and other alternatives. It's no longer a secret that battery-electric trucks are not truly zero-emission vehicles, as the sourcing of rare minerals, the production of Lithium-ion batteries, and the electricity generation and transmission required to power them generate significant carbon emissions. Replacing a petroleum diesel truck with battery-electric does reduce the lifecycle carbon footprint by about 30%. However, substituting renewable diesel in place of petroleum provides a far greater carbon reduction of nearly 70%.

This week, a trucking company based in Jacksonville, Florida, filed notice of impending plans to shut down two divisions and lay off dozens of workers.

On April 30, 2024, Raven Transport Holding Inc. filed a notice with Florida state officials of planned layoffs under the Worker Adjustment and Retraining Notification (WARN) Act.

“We are writing to inform you that Raven Transport Holding, Inc. (“Raven”) will be shutting down its over the road fleet as well as its dedicated fleet. All Raven employees including drivers and staff who work on the road fleet or dedicated fleet will be separated. This action is expected to be permanent. Employees who are affected by this action work at, or report into, Raven’s facility located at 7150 Philips Highway, Jacksonville, FL 32256,” the company said.

A total of 83 workers will be laid off, including 57 drivers.

The layoffs will go into effect over a 14 day period starting on June 30, 2024.

Raven told state officials that all workers would “continue to receive their regular pay and benefits through their separation date unless they voluntarily resign prior to their separation date or are terminated for a reason unrelated to the facility closure.”

Raven did not provide a reason for shuttering the OTR and dedicated divisions or for the layoffs.

According to FMCSA records, Raven employs 352 drivers and operates 340 power units.

According to the company website, Raven has been in business for more than 23 years and operates as a strategic partner of the Florida East Coast Railway.