Your July 19 Pre-Trip: Surge in trucking company failures

Here are five things worth knowing today:

1. More fleets going out of business

According to The Wall Street Journal, weak freight demand and rising diesel prices are responsible for the failures of more and more trucking companies. The Journal cites an analysis by Avondale Partners LLC, which says 120 trucking companies with an average fleet size of 17 tractor-trailers halted operations in the second quarter. According to the report, that’s up from 70 firms in the same quarter last year. The Wall Street Journal has more.

2. Port truck drivers win $5-million settlement

Several trucking companies in Southern California will pay $5 million to settle a class-action lawsuit by port truck drivers who claim they were improperly treated as independent contractors, the Los Angeles Times reports. According to the report, the lawsuit accused companies of illegally deducting nearly $1,500 from drivers’ paychecks and failing to give them rest breaks. Trucking companies did not admit to any wrongdoing, according to the report.

3. Rhode Island truckers challenge state’s number of toll gantries

The Rhode Island Trucking Association claims that the state’s plan for implementing truck tolls calls for 33 gantries rather than the 14 the state DOT had publicly advertised, according to a Johnston Sunrise report. Truck tolls were introduced as part of the governor’s RhodeWorks plan to spend $543 million over 15 years to repair state roads and bridges. Johnston Sunrise has more.

4. How weather impacts freight

A project based on a study completed for the Federal Highway Administration provides a national estimate of weather-related delays affecting the trucking industry. In the report, which focuses on limited major highways, decreased traffic speeds due to weather events are estimated to cost the freight industry $3.8 million per year.

5. Atlanta voters to consider transportation tax increase

According to an AJC report, the Atlanta City Council voted to place a 0.4% tax increase on the November ballot to pay for $397 million worth of transportation projects. If approved, people in Atlanta would be faced with an 8.9% sales tax on items, AJC states. A portion of the tax money would be used to do work on the Atlanta Beltline. AJC has more.

TAGS: News
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