b"DECEMBER 19, 2022 - JANUARY 22, 2023ANALYSIS & PERSPECTIVE 17(WATCHcontinued from page 15) projected to remain above $5 a gallonnias AB 5 law regulating independent(TRIPLEcontinued from page 14)the top reasons drivers consider switch- into2023.Thatsdrivinghighship- business ownersincluding indepen- and 2040 emission targets. ing to another fleet. Which leads us toping charges that get passed along todent truck driversis inspiring otherAlthoughreefercontaineroperat-the topic of driver retention. Turnoverthe final consumer in the grocery storestates and the federal government toing efficiency, refrigerant leakage, and in the industry averages 100% turnoveraisle.Inadditiontofuelinginflationpass similar laws. The movement is aemissions are key metrics that will be with extremes of 150% or more in some(pun intended), $5 diesel is forcing car- big threat to the owner-operator modelassociated with vessel decarbonization cases. Most of that turnover is from driv- riers to make hard decisions about lowthat moves much of freight in the U.S.compliance,end-to-endrefrigerated ers moving from one fleet to another,profit routes and difficult customers.Regulations that make it hard tocontainer transport will also be a prior-ratherthanleavingtheindustryalto- Trucksafetyalsomovedtothemakealivingarealeadingreasonity. End-to-end emissions efficiency is gether according to ATA research.forefront in 2022. In September, thefor truckers disliking their job today.connectedtotheenergyconsumption Fleets and carriers have to workFederal Motor Carrier Safety Admin- That brings us full circle back to thethat takes place when reefers are operat-harderthanevertoholdontodriv- istration(FMCSA)reviveditspushpeople ingredient of trucking. Amidsting before being loaded to the vessel and ersatrendthatssuretocontinueformandatedspeedgovernorsintodays market uncertainty, a winningafterbeingdischarged.TheInterna-into the new year. With driver wagestrucks and will release new rules instrategy going into 2023 for shipperstional Chamber of Shipping, a lobby and signing bonuses already inflatingJune2023.Themovewillimprovetrying to secure capacity and carriersgroup for shipowners controlling 80% compensation, theres more pressuresafety and cut fuel costs, but probablyfightingtorecruitdriverswouldbeof the global fleet, is calling for the to provide the best driver experience.increasetransittimesandshipmentto carefully listen to the needs of themaritime industry to reach net zero Fromwhatweveseen,improvingdelays as well. driving force.carbonemissionsby2050.This retentionstartswithbeingtruthfulAnother big safety issue is the lackParking is a key example. It wasincludesvesseloperationswhenoff aboutwages,hometimeandben- oftruckparkingthenumberthreethe number one concern of drivers inand on the high seas. This is an ambi-efits during recruitment. Simply put,trucking industry concern in the 2022the 2022 ATRI report. Allowing over- tious goal and reefer operations, with misled drivers dont last ATRI Report. Trucks parked along thenight parking or letting drivers park inthe investment in technology, will be highwayendangertruckersandthethe yard are just two ways a shipperessential for ocean container operators f reIgHt motoring public. Both the House andor carrier can listen to drivers needs. to meet this overall proposed target.High inventory levels dominatedSenate are pushing legislation to fundIf listening is not your strong suit the topic of freight in 2022. Going intomore parking spaces.Well see if ouras a trucking company or private fleet,s ustaInablee ngIneerIng andthe holidays, retail inventories were atindustry can get more than just wordsnows the time to create a driver advo- e nd - to -e nde mIssIonr eduCtIonsSkysTheLimit2.pdf 1 12/13/2021 3:07:20 PMpall-time high levels and discretionaryout of Congress in 2023. cate position or hire a workforce solu- WIll be a rIorItyspending was trending down accord- On the regulatory front, Califor- tions provider who has that expertise.(TRIPLEcontinued on page 19)ing to Bank of America Retail Ana-lyst Lorraine Hutchinson. In addition, imports to the U.S. dropped 11% from September2021perU.S.Customs data aggregated by Descartes. Thesefactorshavesoftenedthe amount of freight flowing by truck. It looks like inventory levels will prob-ably continue in a more guarded per-spectivein2023becausecompanies dont want to get stuck holding the bag with overinflated inventory levels. Even with the glut of inventory, supply chain disruptions continue to createshortagesinthingslikecom-puter chips and auto parts as well as randomout-of-stocksweveallper-sonally experienced. It goes to show that there are still plenty of uncertain-ties affecting freight.At the Port of Baltimore, the sky's the limit. Theyincludeincreaseddemand fortruckingcapacityatEastCoastNew cranes. 50-foot deep berths. No supply chain congestion.ports as a result of ocean cargo diver-sion from West Coast ports. Theres a question going into 2023 about how truckingcompanieswillrespondto this potential new volume. Also, the Cuncertainty regarding rail service will Mcertainly continue into 2023. A forced Ysettlement could just postpone a strike CMor lead to work slowdowns that move more freight to trucks.MYLastly, freight rates dropped 30% CYfrom December 2021 to October 2022 CMYand will likely remain lower for most of K2023. Whats good news for shippers is bad news for a lot of owner-operators and small carriers who are leaving the industrypotentiallytakingcapacity with them that may affect the supply of trucking in the future.t ruCksAsshortastheindustryison truck drivers, it seems to be almost as short on trucks. Were hearing stories of carriers whove been waiting six-months for new vehicles. New truck priceshavesoaredandusedtruck prices are double or triple what they were a year ago. High equipment costs are a major contributor to todays high trucking costs which are at their high-estlevelin15years,accordingtomarylandports.com1.800.638.7519ATRIsAnalysisoftheOperationalGovernor Larry Hogan Costs of Trucking: 2022 Update. MDOT Secretary James F. Ports, Jr. Fuel is another top cost of truck- MPA Executive Director William P. Doyleing.Itwasthenumberonetrucking industryconcerninthe2022ATRI report.2022dieselpriceswereup over 35% year-over-year, and they are"