Press & Media
President Signs $286 Billion Transportation Measure Into Law
August 16, 2005 · NASSTRAC · By William Hoffman
Read original articlePresident Signs $286 Billion Transportation Measure Into Law
President Bush signed the $286.4 billion transportation bill into law last week near Aurora, Ill. The president signed the measure at a Caterpillar Inc. plant in the home district of House Speaker Dennis Hastert (R-Ill). The president's signing into law of the highway bill follows his signing the energy bill into law on Monday in New Mexico.
Both the House and Senate voted overwhelmingly to pass the six-year highway and mass transit legislation before heading home for the August recess. Lawmakers left Washington carrying promises of new highway and bridge projects, which is significant given substandard road conditions and roadside hazards are a factor in nearly one-third of the 42,000 traffic fatalities a year, and every $1 billion in highway construction creates 47,500 jobs, according to Associated Press.
Bush had threatened to veto the bill if the final version was above the $284 billion passed by the House, but agreed to sign the measure, which was less than a $295 billion plan passed by the Senate. Some critics of the legislation criticized its abundance of special projects, including Sen. John McCain (R-Ariz.), one of only four senators who opposed the bill. He said the estimated $24 billion lawmakers directed to special projects was “egregious,” AP reported.
However, according to Michael Regan, CEO of TranzAct Technologies and NASSTRAC's Advocacy Chair, in creating this legislation, the Bill did not include the fuel surcharge provision, it did not address the Hours of Service issue, and there was no provision for pilot programs to run heavier trucks on certain roads. "One other noteworthy item is that our elected representatives included thousands of projects (the estimated cost is in excess of 25 billion dollars) that have very little to do with maintaining our transportation infrastructure," said Regan. He notes that with the Highway Bill now out of the way, there are a few things that shippers should be watching for:
- Hours of Service Rules Deadline Rapidly Approaching. The Federal Motor Carrier Safety Administration (FMCSA) has a September 30th deadline to publish a new version of the Hours of Service rules. This week, they sent a new version of the Hours of Service regulation to the White House budget office for review. People are hoping that the FMCSA finds a way to keep the existing rules in effect. Regan says that the reason for concern is because some industry analysts are fearing that the FMCSA could move to reduce the driving time from 11 hours to 10 hours. If that happens, shippers can expect costs for truckload moves to rise. Warren Hoemann, Deputy Administrator for the FMCSA, will be a keynote presenter at the upcoming NASSTRAC Fall Conference.
- Increasing fuel prices. With retail diesel levels at record levels, the numbers are staggering. Carriers have been able to pass along the increases in their fuel prices through fuel surcharges; shippers may want to revise their 2005 and 2006 budgets to reflect these increases.
- Labor Situation at the Port of Vancouver. A recent report noted that if the Vancouver situation is not resolved by October, shippers can expect significant delays at West Coast Ports. This may come as news to shippers who do not anticipate any delays at the ports this fall as peak season approaches.
- Changes in Minimum Cargo Liability Requirements. The FMCSA recently issued a Notice of Proposed Rulemaking that would effectively waive the need for carriers to maintain minimum cargo liability requirements. Currently, carriers must maintain insurance adequate to compensate shippers for cargo loss and damage in at least the amounts of $5,000 for loss or damage to property carried on one vehicle, and $10,000 for aggregate losses or damages occurring at one time or place. If this rulemaking passes, many anticipate this would not be good for shippers.
Diesel Soars to Record Levels, Surge 16 Cents per Gallon
The average price of U.S. retail diesel rose drastically last week, rising 16 cents a gallon in the largest single-week increase ever recorded, the Department of Energy reported to NASSTRAC Monday. The surge left prices at $2.567 a gallon, setting a new record for the second time in the past month. The 16-cent spike in prices shattered the previous record of $2.408 a gallon set on July 11. Last week, the price of diesel was $2.407.
In addition, gasoline prices spiked to $2.55 rising 18.2 cents a gallon from last week's record high of $2.368, DOE said in its weekly report. Gas prices are now 67.5 cents higher than they were a year ago. The price rose by at least 12.9 cents a gallon in all of the major regions measured by DOE’s Energy Information Administration, with the exception of the West Coast and California, which one only saw increases of 9.0 and 9.9 cents a gallon respectively. The West Coast gains followed increases of more than 20 cents a gallon last week. The Midwest was the hardest hit among the EIA region’s in this week’s survey, seeing an 18.8-cent rise to $2.524. The massive increase in the national average showed the third straight week of increases after two weeks of decline. The national average has now risen in 23 of 33 weeks so far in 2005. The price of fuel has risen 63.3 cents a gallon since hitting a low for the year Jan. 10 of $1.934.
"Dealing With The Issues: Legislative | Capacity | Collaboration"
Theme is Set for NASSTRAC Fall Conference in September in Baltimore
NASSTRAC's fall educational conference will take place Sept. 25-27, 2005, at the Sheraton Inner Harbor Hotel in Baltimore, Md. NASSTRAC selected Baltimore partially because its location to Capitol Hill, and will focus on topical issues facing logisticians today, ranging from legislative developments to capacity challenges and opportunties in collaboration up and down the supply chain. This event will feature high-level general sessions and panel discussions covering topics to help the transportation and logistics executive streamline and optimize the supply chain, reduce costs, and improve operations and customer service.
NASSTRAC Logistics 101 Seminar to Take Place in Princeton, NJ
NASSTRAC recently announced that it will hold a seminar for professionals who have a need for a broader understanding of logistics fundamentals. NASSTRAC’s “Logistics 101” Seminar will take place Oct. 5-6, 2005 at the Radisson Hotel in Princeton, N.J.
“There are few educational venues in the industry that provide basic education on transportation and logistics in a quick, easy-to-understand, and affordable format,” said Brian Everett, executive director. “NASSTRAC has taken the lead to fill this need in the marketplace by creating a seminar that covers all of the basics.” The day-and-a-half seminar is designed to cover fundamental topics necessary for a professional responsible for logistics to be successful, including the modes of transportation available, emerging trends in the industry, technologies available, trade and compliance issues, legal requirements, and best practices in logistics. NASSTRAC launched it’s “Logistics 101” series in Chicago last February.