The Houston-based trucking company is converting 24 of its 36 diesel engines to newer technology with the help of an $871,110 federal grant. When Bealine Service Company decided to replace the majority of the engines in its aging fleet with cleaner-burning diesel engines, the Houston-based intrastate hauling company was able to obtain nearly $900,000 in federal funding administered regionally through the Houston-Galveston Area Council’s (H-GAC) Clean Vehicles program. Bealine was granted $871,110 to help replace 24 of the 36 diesel engines in its fleet through the H-GAC program, designed to distribute federal funding to help area businesses and local governments convert their fleets to more environmentally friendly vehicles. Bealine qualified for the Clean Vehicles grant because the majority of its operations take place in the eight-county Houston non-attainment area, where air quality does not currently meet EPA standards.

With the grant in place for new engines, Bealine decided to go a step further by fully replacing the trucks. Funding non-engine costs itself, the company is purchasing 24 new 2005 International 9400i trucks and is replacing old trucks with new ones at a rate of one per month. So far, six trucks that house cleaner-burning engines are on the roads. Under the grant guidelines, once Bealine receives its new engines, it must destroy the old engines to prevent their re-use.

To date, H-GAC has approved federal grants totaling more than $17 million for 24 Clean Vehicles projects. As a result, 232 tons of nitrogen oxide (NOx) emissions will be removed from the air each year, equalling the removal of nearly 28,000 cars from the road. Fleet owners interested in similar grants in their area must contact their local council of governments or visit the U.S. Department of Energy’s Clean Cities Web site, www.eere.energy.gov/cleancities.

“We believe we can positively impact our community by replacing engines with new cleaner-burning diesel technology,” said Jack Beal, owner of Bealine Service Company. “H-GAC’s Clean Vehicles program created a win-win situation for our company and the environment by helping us financially to convert a significant number of our engines quickly.”

Two types of pollutants, NOx and volatile organic compounds (VOCs), combine to form ground-level ozone. High concentrations of this ozone can cause shortness of breath, wheezing, coughing, headaches, and throat and lung irritation. Older diesel engines are the largest, most mobile source of NOx, making it imperative for fleet owners to upgrade to new engines.

“New diesel engines on the market emit only 2.5 grams per brake horsepower hour (g/bhp-hr) of NOx and are more fuel efficient than other fuels in comparable duty cycles,” said David Coffee, emission specialist for International Trucks of Houston, an authorized dealer of the cleaner-burning engines. “Older diesel engines emit 6-8 g/bhp-hr of NOx, the principal precursor to ground-level ozone smog.”

There is record demand for medium truck tires and a corresponding shortage of supply. Besides the cyclical upturn in truck sales, the increased demand is also being fueled by the upcoming 2007 diesel emission standards. There is record demand for medium truck tires and a corresponding shortage of supply. Besides the cyclical upturn in truck sales, the increased demand is also being fueled by the upcoming 2007 diesel emission standards. Many fleets are pre-buying trucks ahead of the EPA deadline to avoid the all-new 2007 engines, which are anticipated to cost more, require more frequent oil drains, and have an unknown reliability history. The pre-buying spike is creating artificially high demand for new trucks, which is expected to drop dramatically once 2007 production commences. This cycle will probably repeat itself in 2010 when the next EPA diesel engine emission change is set to occur. This cyclicality has historical precedent based on the tire shortage that occurred in 2002, when the current EPA diesel regs were first implemented.
However, today’s tire shortage is not restricted to trucks and trailers. There is also a global shortage of construction equipment tires that started last year and will probably continue until late 2007. In particular, there is a severe shortage of large and medium-size off-road tires, especially 25-, 33-, and 49-inch tires, caused by surging construction demand in the U.S., China, and Iraq.

The Impact of the Tire Shortage on Fleets
The tire shortage is impacting commercial fleets in three ways:

1. Difficulty Getting the Tire Brand Ordered.
Truck OEMs are struggling to get proper allocations of tires from tire manufac-turers, said Mark Stumne, senior truck application engineer for GE Commercial Finance Fleet Services. “The result is that fleets order trucks with a specific brand and model of tire and receive a truck with different tires than ordered. In many cases, they are receiving trucks with a mix of tire brands. For example, the front tires may be brand X and rear axles are brand Y or they receive a different model/tread design. However, the OEMs are matching traction/highway treads requested and the tires are of the proper size and load range,” added Stumne. “This can be an issue for truck fleets that have a specific tire maker recapping program or other tire manufacturer programs for their fleet.” For fleets that want to wait for a specific brand of tire, the tire shortage has lengthened production lead times. “But most of our clients are willing to change brands in order to get their trucks built,” said Dave Decker, manager of truck engineering for Wheels Inc. Although there is a shortage of medium truck tire availability for new builds, this is not the case for vehicles already in service. “Tire manufacturers may have narrow margins built into their deals with the OEMs. As a result, some tire companies might try to shift their sales away from the OEMs to retail sales to increase their profitability,” said Ron Dapkunas, director of customer and vehicles services for PHH Arval. “In response, some truck manufacturers are telling customers that they can’t commit to a particular tire brand and the customer may have to acknowledge at the time of the order that they will accept a substitute brand if what they order isn’t available at the time of build. As for tire availability at the retail level, we aren’t hearing that there are any issues in getting what we request.”

2. Spare Tire Shortage.
Spare tires are optional on all trucks and must be selected if required. “When selecting a spare tire, some truck OEMs are only supplying a wheel without a tire,” said Stumne. “Often the customer must source a tire after delivery. The OEMs are doing so to ensure they have enough tires to supply the trucks coming off the assembly lines.”

3. Shortage is Prompting Price Increases.
In conjunction with the tire shortage, fleets have experienced numerous price increases from the major tire manufacturers since the first of the year, said Decker.

Still a Manageable Problem
Despite these problems, the medium truck tire shortage has been manageable for most fleets. “In most cases, an alternative tire brand has been selected – at extra cost unfortunately – to ensure a shorter lead time,” said Ken Gillies, director of truck services for Donlen Corporation. “Customers have not done much manufacturer ‘brand hopping’ with the hopes of a competitor having better tire selection and availability. As with any component for a truck, if one manufacturer is challenged by it, most all are either currently dealing with it or will be shortly.”

Gillies believes the medium truck tire shortage is a short-term problem. “In another 15 months, the tire manufacturers will most likely have the opposite problem – overcapacity – as the 2007 build starts and fleets delay truck purchases in the hopes that someone else will sort out the early model-year emission problems.” But others say the tire shortage may potentially have a more long-term impact. “Although the problem today is manageable, I do believe that it is a situation that could cause some real problems down the road,” said Mike Corchin, manager of truck business development for Wheels Inc.

The American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index rose 1.2 percent in March, which was the second consecutive monthly gain. The index increased 1.6 percent in February.  On a seasonally adjusted basis, the tonnage index improved to 114.6 (2000 = 100) in March from 113.3 the previous month. The index grew 1.6 percent compared with a year earlier, marking the first year-over-year increase since June 2006 and the largest gain since December 2005. The not seasonally adjusted index jumped 15.7 percent from February to 117.1.

ATA Chief Economist Bob Costello said the year-over-year improvement was a positive sign, but that the industry was not out of the woods just yet.

“The latest increases, both monthly and year-over-year, bode well for the industry, although the year-over-year changes could still fall back into negative territory during some future months,” Costello said. “Many motor carriers are telling us anecdotally that April has been filled with starts and stops.”Â

The industry will see a gradual improvement in volumes as the year progresses due to an inventory correction, which should boost truck volumes. Â Costello also projects a better economic outlook for 2008.

Trucking serves as a barometer of the U.S. economy because it represents nearly 70 percent of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods, according to ATA.

Trucks hauled 10.7 billion tons of freight in 2005. Motor carriers collected $623 billion, or 84.3 percent of total revenue earned by all transport modes.

ATA calculates the tonnage index based on surveys from its membership and has been doing so since the 1970s. This is a preliminary figure and subject to change in the final report issued around the 10th day of the month. The full report includes month-to-month and year-over-year results, relevant economic comparisons, and key financial indicators.

The American Trucking Associations is the largest national trade association for the trucking industry. Through a federation of other trucking groups, industry-related conferences, and its 50 affiliated state trucking associations, ATA represents more than 37,000 members covering every type of motor carrier in the United States.

CRST International will soon start work on a new training and lodging center to be built on the CRST corporate complex in Cedar Rapids. The three-level facility will encompass 36,000 square feet and will be large enough to accommodate more than 110 people. Construction on the $2.5 million building is scheduled to begin in June and last five to six months. CRST hosts between 50 and 75 people every week for orientation and driver training, the company stated in its new release regarding the expansion. The majority of drivers who will utilize the facility are participants in the company-sponsored Commercial Drivers License training program through Kirkwood Community College. The program lasts two to three weeks, and students are lodged at the CRST facility during this training period. Lodging and training space will also be used by drivers from other parts of the country who visit Cedar Rapids to attend safety and other company seminars.

“We are one of the few large companies in the industry that offer training to individuals who want to become professional truck drivers,” said Dave Rusch, president of the CRST Carrier Group. “With that responsibility it’s important to have a state-of-the art training facility that will enable these new drivers to learn in the best environment possible. This will be one of the nicer training facilities in the industry, and will provide our drivers a strong foundation to launch their careers.”

The new training and lodging center will feature state-of-the-art video and electronic equipment as well as a driver simulator. The facility will offer a recreational facility including pool tables, a theater room, an outdoor patio and a barbecue pit.

The new facility will replace a company-owned motel and a set of buildings that have been used for lodging and training purposes for the past 45 years. Once construction on the new facility is complete, the buildings will be raised and developed into a greens area that can potentially be used for future corporate expansion, the company said.

Peterbilt’s two most aerodynamic trucks, the Models 387 and 386, have been recognized as fuel efficient and environment friendly by the Environmental Protection Agency’s SmartWay program, the company reports. The SmartWay program establishes a comprehensive set of fuel-saving, low-emission equipment specifications for new Class 8 long-haul tractors and trailers. Peterbilt’s SmartWay compliant vehicles offer customers fuel savings of between 10 and 20 percent, lower greenhouse gas emissions, and significantly reduced NOx, particulate matter and other air pollutants, according to the manufacturer.

“The EPA’s SmartWay program is a valuable asset for fleets and customers seeking verification of the industry’s leading aerodynamic solutions. Peterbilt Motors Company is setting the pace for state-of-the-art aerodynamic designs optimized to improve air flow and fuel efficiency,” said Bill Jackson, Peterbilt general manager and PACCAR vice president. Â

Components required for the SmartWay-eligible designation include engines certified to the new 2007 emissions standards, high roof fairings, fuel tank side fairings, aerodynamic bumpers and mirrors, anti-idling options and low-rolling resistance tires.

“As customers increasingly focus on their daily operating expenses due to rising fuel costs, sales of aerodynamically-styled, fuel efficient trucks continue to climb and account for the majority of the Class 8 on-highway market today. Â As a result, Peterbilt has made significant investment in the expansion of aerodynamic products to help customers in this growing market,” said Scott Pearson, Peterbilt assistant general manager, sales and marketing.Â

Peterbilt also continues development and testing of vehicles equipped with advanced hybrid technologies that increase fuel efficiency, reduce emissions and improve service requirements. The company’s hybrid initiatives include medium- and heavy-duty vehicle platforms and for both on-highway and vocational applications.

In March, Peterbilt announced the latest of its hybrid initiatives, a hybrid electric Class 8 Model 386 configured for long-haul applications. It combines the aerodynamic efficiency of the Model 386 with a parallel-type “direct” electric hybrid system.

The heavy-duty hybrid electric Model 386, configured for on-highway use, is being developed in conjunction with Eaton and Wal-Mart Stores, Inc. It is currently in the testing and evaluation phase and is expected to be available in 2010. Wal-Mart, which operates the nation’s second largest private fleet, is supporting development by helping validate the concept and refine the final design, Peterbilt stated.

Trucking interests, along with safety and environmental advocacy groups, are asking a federal court not to open the gate for 100 Mexican trucking companies lining up long-haul, transborder operations under a pending U.S. program.The Owner-Operator Independent Drivers Association, International Brotherhood of Teamsters, Public Citizen, the Sierra Club, and the Environmental Law Foundation filed a complaint April 23 in the Northern District of California. The injunction suit wants the U.S. Department of Transportation and the Federal Motor Carrier Safety Administration “to comply with the law” for federal pilot programs and to provide public notice and an opportunity for comment on a plan to allow approved carriers beyond the current southern border transition zone.

In announcing the program February 23 DOT said the action was meant to comply with the trucking provisions of the North American Free Trade Agreement and U.S. congressional guidelines. Implementation of such transborder trucking operations has been halted by various judicial and political roadblocks since 1995.

Recently proposed legislation to delay the program will not be decided in time, opponents say. The plan was scheduled for implementation as soon as 60 days after the February announcement.

“We have strongly opposed this program since first introduced, and in particular, the secretive nature in which it has been presented by the DOT,” OOIDA Executive Vice President Todd Spencer said in statement. “The DOT has still not answered questions about verification of drivers’ records, drug and alcohol testing, Hours of Service, cabotage, inspections and insurance. They make general statements about audits of Mexican motor carriers, but have shown nothing that should make the American public feel confident that they have fulfilled all the obligations necessary before moving forward.

The Teamsters likewise questioned the safety of Mexico-based commercial vehicles.

The Bush administration is ignoring the American people in its zeal to open our borders to unsafe Mexican trucks. This reckless pilot program must be stopped and the driving public protected, stated Teamsters General President Jim Hoffa. The Bush administration is trying to circumvent safety requirements by repackaging this plan as an illegal pilot program. Inspectors can’t enforce truck safety in the United States, let alone south of the border.

Volvo Group truck makers Mack Trucks Inc. and Volvo Trucks North America today characterized the recently issued Environmental Protection Agency guidance on selective catalytic reduction (SCR) as a key step in the ongoing effort to dramatically reduce diesel engine emissions, specifically with regard to federal regulations scheduled to take effect in 2010.“This document is a critical guideline for the many stakeholders dedicated to bringing this important emissions control technology to the United States,” said Mack president and CEO Paul L. Vikner. “We are convinced that in addition to its environmental benefits, SCR will deliver the fuel economy, reliability, and performance Mack customers demand; and we’re committed to working with the EPA, the truck industry, and other stakeholders to ensure that the infrastructure is in place to support this solution.”

Volvo likewise said it considers the guidance an important step in the effort to bring this technology solution to market.

“We are convinced that SCR is the best choice for continuing to dramatically reduce diesel engine emissions in 2010, while delivering optimal performance and fuel efficiency for our customers,” said Volvo Trucks North America president and CEO Peter Karlsten. “The EPA has provided an important guide for the many stakeholders working to address the urea infrastructure and other issues necessary to bring this clean diesel technology to the North American market.”

Mack, according to the news release, has been successfully running SCR systems on prototype trucks since 2000, logging more than 2 million miles on 10 customer vehicles. Mack’s parent company, the Volvo Group, has logged more than 23 million miles of SCR road testing in Europe, and has produced more than 40,000 SCR-equipped vehicles since the Euro 4 emissions standards took effect in October 2006.

Volvo Trucks North America reported it has accumulated more than six million test miles with SCR systems on customer trucks in the U.S.

The United States ranks second in world maritime container traffic with one in nine maritime containers in the world either bound for or coming from the United States, according to “America’s Container Ports: Delivering the Goods,” a new report from the Bureau of Transportation Statistics (BTS).

BTS, a part of the U.S. Department of Transportation’s Research and Innovative Technology Administration, reported that U.S.-container trade in 2005 and 2006 was more than double the trade of a decade earlier. An estimated 46.3 million 20-foot equivalent units (TEUs — the standard measure for counting containers of various sizes) passed through U.S. ports in 2006, up from 22.6 million in 1996. Two-thirds of the containers are imported into the U.S.

During that time, world container trade more than tripled, resulting in a decline in the U.S. share of world container trade from 16 per cent to 11 percent. China has exceeded the U.S. share of world container trade since 1998.

Other findings of the BTS report:
• Container traffic in the United States is becoming more concentrated as larger, faster and more specialized vessels call at the limited number of ports capable of handling them. The top 10 U.S. container ports accounted for 85 percent of U.S. containerized traffic in 2005, measured in TEUs, up from 78 percent in 1995.
• More than half, nearly 55 percent, of U.S. containerized merchandise trade in terms of TEUs passed through West Coast ports in 2005, up from 42 percent in 1980.
• U.S. maritime ports are handling larger container vessels, measured by the average vessel size per call. The average size per call of container vessels calling at U.S. ports was nearly 45,000 deadweight tons (dwt) in 2005, up from 38,000 dwt in 2000.
• Overall, nearly 26 million containers of various sizes entered the United States by all modes of transportation in 2005, up 37 percent from 19 million in 2000. Of those containers, more than 15 million entered the nation by truck and rail from Canada and Mexico in 2005 while the remaining 11 million were oceanborne.