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Trucking Industry Perspectives on Freight Transportation Planning July 10, 2001

Darrin Roth American Trucking Associations, Inc. Trucking Industry Perspectives on Freight Transportation Planning July 10, 2001. Trucking’s Role in the Economy. Trucking’s Role in the Economy (cont.). Trucking’s Role in the Economy (cont.).

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Trucking Industry Perspectives on Freight Transportation Planning July 10, 2001

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  1. Darrin Roth American Trucking Associations, Inc. Trucking Industry Perspectives on Freight Transportation PlanningJuly 10, 2001

  2. Trucking’s Role in the Economy

  3. Trucking’s Role in the Economy (cont.)

  4. Trucking’s Role in the Economy (cont.) • 82% of U.S. communities served exclusively by trucks • Industry growth will require an additional 2.3 million trucks and 117 billion additional VMT between 1998-2008 • Population of smaller vehicles will increase 93% and VMT will increase 154% • Operate mostly in urban areas

  5. Logistics: A Critical Factor in National Productivity Reliable, Efficient Highway System Trucking industry deregulation Adoption of Advanced Logistics Productivity Growth

  6. Logistics: A Critical Factor in National Productivity (cont.) • Adoption of advanced logistics allows firms to • Produce more goods using fewer resources • Reinvest in more productivity-improving technologies • Productivity cycle • Impacts of improved logistics (1980-2000) • Inventory carrying costs declined 50% • Transportation costs declined 22% • Total logistics costs declined 37% • Reduction in logistics costs during 1980s resulted in an average annual savings of about $1,000 per family

  7. Logistics: A Critical Factor in National Productivity (cont.)

  8. Logistics: A Critical Factor in National Productivity (cont.) • Productivity gains that resulted from deregulation and new transportation efficiencies have been realized • Except for past few quarters, inventory-sales ratio dropping steadily • Transportation costs static • Logistics cost over $1 trillion in 2000 • Transportation $590 billion • Trucking $481 billion (5% of GDP)

  9. Current and Future Challenges • Profit margins continue to be very low • Glut of Used Trucks in the Market • Driver salary increases slowing and driver shortage becoming less of a problem • Fuel Prices stabilizing • Dramatic increase in insurance rates

  10. Planning-related Challenges • Worsening congestion • TTI - Overall congestion costs $3.3 billion annually, $50-$70 an hour/vehicle • Real cost of congestion is unpredictability • Tight delivery windows (10-30 minutes) • Drivers forced to build time into deliveries to account for potential delays • Delayed deliveries can shut down production lines

  11. Planning-related Challenges (cont.) • Poor loading/unloading access • Cities have converted loading zones to parking, failed to require adequate loading facilities for new buildings • Delivery vehicles forced to double, triple park at cost of several hundred million dollars/year; congestion compounds problems • Given the choice, truckers will avoid rush hour, but the choice is usually not theirs to make • Lack of truck parking outside metro areas to stage deliveries and avoid peak congestion

  12. Recommendations • Incident Management - All Major Corridors • Sensible ITS Applications • Improved Access Control and Signalization • Better Signage, Better Parking/loading zone Mgmt.

  13. Recommendations (cont.) • Design highways with trucks in mind • Replacement of Substandard Structures • Better access to Intermodal facilities • Workshops and Education on Best Practice and Low Cost Strategies

  14. Getting the Trucking Industry Involved • Freight stakeholders generally not involved in planning process • Too many agencies, too many meetings • Michigan has a dozen MPOs; each has approx. 10-15 meetings each year • Planning process too slow and incremental • Companies, state associations don’t have time, resources to participate • Cultural issues • Lack of trust by carriers of government officials • Planners view freight as adversaries

  15. Getting the Trucking Industry Involved (cont.) • Recommendations • Simplify, shorten planning process • Don’t expect freight stakeholders to come to the agency; the agency must make initial and subsequent contact • Make freight stakeholders part of the decision-making process • Anticipate freight needs

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