Should the head of FMCSA be a driver?

Tariffs are set to reshape the way business is conducted, with the potential to bring big changes to the trucking industry. Cross-border fleets, in particular, will need to adapt quickly to any shifts in costs and supply chain strategies.

Plus, we had the chance to chat with OOIDA’s Todd Spencer to hear about his journey into trucking and his insights on the industry.

Today's Lineup
🔷 What's next for cross-border supply chains?
🔷 Ten trucking issues for the incoming Trump administration
🔷 Driver throws hat in the ring to lead the FMCSA
🔷 A $400 million trucking acquisition
🔷 The top state for truck drivers is...

 ⬆️$3.54

AVG. COST OF DIESEL PER GALLON IN U.S. AS OF 12/02, up 0.001¢

Source: U.S. Energy Information Administration

"Their career is their entire livelihood"

Nearly one million owner-operators are registered with the Federal Motor Carrier Safety Administration. These independent trucking businesses play just as critical a role in the freight economy as large logistics firms like J.B. Hunt or Knight-Swift. 

The Owner-Operator Independent Drivers Association represents the trucking industry's owner-operators. The Inside Lane spoke to Todd Spencer, president of OOIDA, to learn about his story and the independent trucking world's priorities.  - Shefali Kapadia

How did you get into the trucking industry?

When I was young, I admired my uncle who was a truck driver and thought it looked “pretty cool.” I began in trucking as an employee-driver in 1974, and in 1976, I purchased a truck and became an owner-operator leased to a carrier. 

When did you get involved in OOIDA?

In 1978, I was elected to the OOIDA's Board of Directors. There were less than 1,000 members at that time. In 1981, I sold my two trucks and assumed the role as editor of the Association’s magazine, Land Line, and Communications Director for OOIDA. I was elected Executive Vice President in 1992 and held this position for 26 years before I was elected as President in 2018.

What's the biggest misconception that the public gets wrong about owner-operators?

I would say one misconception is that Owner Operators are the guys and gals out there always bending the rules. When really they are the safest operators on the road. They have families to get back home to like everyone else plus a huge investment in their equipment, so all this means their career is their entire livelihood. I also think that there is a lack of understanding how regulated all drivers are and the challenges they face every day. 

Above: Todd Spencer (Courtesy Todd Spencer)

FREIGHT

The future of cross-border trade hangs in limbo

Canada and Mexico are among the U.S.' top trading partners, with tons of goods crossing the borders via truck every day. Could that change with Trump's plan to impose 25% tariffs on imports from the two countries?

The move would raise costs for U.S. firms, which have a few options. They could continue business as usual and pass added costs onto consumers. Or, they could decide to bring in their goods from elsewhere, shifting their supply chains.

Why this matters: Fleets that haul across the northern and southern borders will need to brace for possible changes due to the tariffs, whether that means a big surge before the tariffs take effect, or a slowdown after they're enacted. (Reuters)

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• WINTER WEATHER: Tips for truckers to prepare for winter conditions

The next head of the FMCSA: A truck driver?

"Wouldn't it be great to actually have someone that drives a truck... be in charge of the FMCSA?" -Owner-operator Lee Schmitt 

Lee Schmitt announced on social media that he submitted his resume to be next administrator of the Federal Motor Carrier Safety Administration. He told Overdrive that he feels a good bit of the FMCSA's work doesn't actually address safety, and he'd work to reform that, particularly issues around fraud. Watch his announcement here. 

LEGAL

Judge decides 3PL won't be held liable in a fatal crash
Echo Global Logistics, a freight broker, won't be held liable in a case involving a fatal crash. The backstory: Echo hired a carrier, and the trucker crashed into the back of a vehicle, killing its driver. 

Why this matters: While trucking carriers and even equipment manufacturers are being held liable by courts and juries, brokers seem to be evading nuclear verdicts. Rulings like this one set the precedent for future cases involving 3PLs. (FreightWaves)

BUSINESS

Schneider acquires Cowan for almost $400 million

Wisconsin-based trucking company Schneider National will buy Cowan Systems, LLC, based in Baltimore. Cowan is focused primarily on dedicated contracts, complementing Schneider's business in that area.

Why this matters: The acquisition brings Schneider's dedicated tractor count to 8,400, making this top 10 carrier even larger. It's the latest example of consolidation among the biggest trucking firms. (Schneider)

DRIVERS

North Dakota tops list of best states for truck drivers

A new study looked into the top states for truckers, based on factors such as industry demand, job availability and average wages (see the full ranking here). The conclusion: North Dakota is the top state, thanks to industries like oil and agriculture that require truck drivers. 

Why this matters: Fleets operating in the top states may have an easier time recruiting and retaining drivers. (OnFocus News)

Thanks for reading today's edition! You can reach the newsletter team at editor@theinsidelane.co. We enjoy hearing from you.

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The Inside Lane is curated and written by Shefali Kapadia and edited by Bianca Prieto.