Trucking's cash flow fix

Gas taxes have long been contested, but is now finally the time to revise tax structure once and for all? We’re unpacking what that change could look like if it’s adopted.

Meanwhile, leadership is changing again at the FMCSA, and carriers are increasingly using factoring to keep the cash flowing. 

Plus, some new releases: a management book about driver recruitment to add to your reading list, and an AI-powered dispatcher that autonomously handles load matching and broker negotiations. 

Reading list. This newly published book delves into driver recruitment and retention, and how to make hiring work for the future of trucking. It's currently ranked in the top five books for business decision-making and leadership in the Kindle Store. It’s also currently free on Kindle Unlimited.

Showtime. We're following the happenings of the Mid-America Trucking Show, which runs today through Saturday in Louisville.

Let's celebrate! This trucker just hit a milestone—100,000 miles and 10 months solo with Knight-Swift.

By any means necessary. This truck driver may have taken delivery responsibilities a little too far.

63

The number of truck parking spots at Love's newest travel stop.

Source: Trucking Dive

It's time to bid farewell to gas taxes

For years, gas taxes have helped to fund infrastructure repairs via the Highway Trust Fund. But as consumers and some fleets convert to EVs, funding is drying up. The solution, posed by attorney and professor Andrew Leahey? Start a kilowatt-hour tax on public charging instead. 

"Such a tax would be cleaner, fairer, and much harder to evade," Leahey writes.

Why this matters: Trucking groups have lobbied against tax proposals that disproportionately target trucking, including the vehicle miles traveled tax. As coffers for road repairs run out, the government will need a common-sense solution that funds critical infrastructure in a fair way. Get more details at Forbes.

MEET BUBBA: This AI dispatcher handles load matching, broker negotiations

VERDICT DOWN: Court lowers $450M verdict against Wabash

FATAL WRECK: Truck driver veered across three lanes, ejected from cab

ILLEGAL TRUCKING: Industry wants crackdown on B-1 drivers for domestic hauls

Trump selects new head of FMCSA

Derek Barrs, the former top cop at Florida Highway Patrol and former head of the state's Office of Motor Carrier Compliance, has been nominated to serve as administrator of the Federal Motor Carrier Safety Administration (FMCSA). He brings decades of experience in commercial vehicle enforcement and safety regulation. His nomination follows the abrupt departure of Adrienne Camire, who stepped down after serving just two weeks as acting administrator. 

Why this matters: The American Trucking Associations praised the nomination of Barrs, noting his experience at the Florida Department of Transportation and with ATA’s Law Enforcement Advisory Board. The Owner-Operator Independent Drivers Association also congratulated Barrs. If confirmed, a permanent administrator of the FMCSA would provide a clearer picture of leadership and priorities at the agency. (CCJ Digital)

Trucking owner feels uncertain, 'betrayed' amid Calif. EV rules

Jennie Abarca, owner of King Fio Trucking in Long Beach, sprung into action when the California Air Resources Board passed its diesel truck phaseout rule in 2023. Today, eight of the 32 trucks in King Fio's fleet are fully electric. But with the rule pulled back, Abarca feels uncertain and betrayed by the hard work she did to start converting her fleet. 

Why this matters: Fleet owners who started preparing for the phaseout of diesel trucks are left unsure how to proceed as emissions rules hang in limbo. This adds further uncertainty to managing the business, especially for executives who likely invested thousands of dollars to start converting their equipment. (LAist)

Carriers rely on factoring to keep cash flowing

As the trucking market remains tough, fleets are increasingly using factoring. The process involves sending invoices to a company that pays cash immediately, rather than waiting for the client to pay. This year, 80% of carriers who use factoring intend to factor the same number or more loads than in the past.

Why this matters: Long payment cycles can disrupt a fleet's cash flow, especially in an operating environment with low rates and high costs. Sometimes, factoring is the only option to stay afloat, even when it takes a cut out of fleets' earnings. (The Trucker)

Aurora makes the case: self-driving tech safe for public roads

Autonomous trucking company Aurora released a Driverless Safety Report, which details how its self-driving technology is making AVs safe to operate on public roads. The company's Aurora Driver includes hardware, software and data to safely deploy a driverless vehicle, and cameras, radar, lidar and sensors give the system accurate information about its surroundings. 

Why this matters: Autonomous vehicle providers are moving full speed ahead with driverless technology, using real-life trials and data to prove that their trucks can safely operate right alongside driver-based vehicles. (trucknews.com)

OOIDA's Pugh pushes for truck parking, driver advocacy

Lewie Pugh, executive vice president of the Owner-Operator Independent Drivers Association, testified on Capitol Hill this week as Congress prepares to work on the next highway bill. He called for improvements to truck parking and driver restroom access, and he pushed back on efforts to increase carriers' minimum liability insurance.

As Pugh put it: "Our goal is to shape federal policies in a manner
that makes trucking a more attractive, sustainable and safe career for professional drivers." 

Why this matters: The newest Congress is just getting started and has the potential to influence many regulatory factors that will impact trucking. Advocates for the industry are making their voices heard and priorities known as work gets underway on the highway bill. (Land Line)

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.