The Trucking Industry Section FFD.pdf

THE TRUCKING INDUSTRY A Brief History Early 1900s Trucks with gasoline powered internal combustion engines begin replacing horse-drawn wagons to deliver goods from railheads to markets and end users. At this time, trucking had a limite...

THE TRUCKING INDUSTRY A Brief History Early 1900s Trucks with gasoline powered internal combustion engines begin replacing horse-drawn wagons to deliver goods from railheads to markets and end users. At this time, trucking had a limited reach due to the lumitations of the trucks and roads, and thus was concentrated in urban areas. 1919 During World War I, the number of trucks in use in the United States went from 100,000 to over 1,000,000. Trucks became larger and began extending their range as innovations such as pneumatic tires were incorporated into the industry and the road network began to improve. Also in 1919, Lieutenant Colonel Dwight D. Eisenhower led one of the first coast-to-coast truck movements. The trip went from Washington D.C. to San Francisco, CA, and involved 282 soldiers and 67 wehicles (21 of which did not complete the trip). Many of the soldiers were engineers who were needed to build and repair roads and bridges along the way. The trip took 62 days (about 2 months) and followed the path known as the Lincoln Highway (later called U.S. 30). The trip highlighted the need for a nationwide road network. 1924 The diesel engine was introduced, improving the power and efficien- cy of trucks. 1935 Congress passed the Motor Carrier Act of 1935. ‘This led to the Interstate Commerce Commission, or [CC, taking oversight over the trucking industry. The [CC regulated rates and the routes carriers were authorized to operate on, oversaw the safety regulations, and put the first hours-of-service regulations into place. 1945 Trucking became a vital mode of freight transportation during World War IT. ‘This was due to a significant increase in the need to transport goods for the war effort and the flexibility provided by the trucking industry. 19536 President Dwight D. Eisenhower signed the Federal Highway Act establishing the interstate highway network. This road network allowed trucks to travel further, faster, and safer, and increased their share of the nation’s freight movement. 1966 The U. S$. Department of Transportation (DOT) was created and assumed control of all transportation matters, including regulating the safe operation of commercial vehicles. 1980 The Motor Carrier Act of 1980 was signed into law, deregulating the trucking industry. Asa result, carriers were free to openly compete for customers. This was due to elimination of the regulations restrict- ing the rates a carrier could charge, the commodities a carrier could haul, the routes a carrier could travel, and the geographic regions a carrier could operate in. Also in 1980, the Commercial Vehicle Safety Alliance (CVSA) was created. This is the organization that standard- izes the roadside inspection procedures and criteria, and that oversees the North American Out-of-Service Criteria (OOSC). 1982 The US. Surface Transportation Assistance Act of 1982 established funding for state motor carrier enforcement programs. This fund- ing allowed states to dedicate resources and officers to enforcing the motor carrier safety regulations. 1986 The Commercial Vehicle Safety Act of 1986 created nationwide testing and qualification standards for issuance of commercial drivers’ licenses, or CDLs. 1988 Rules requiring drug testing were added to the safety regulations. Rules for alcohol testing were implemented in 1994. 1990 ‘The number of motor carriers authorized by the DOT doubled to more than 40,000 active carriers when compared to 1980. During the 1980's, the flexibility created by deregulation led to the development of the pust-in-tume (JIT) logistics model. Under this model, manu- facturers and retailers were able to lower inventory levels, lowering overhead. Also during the 1980's, trucking increased tts share of U.S. freight movement. Asa result, nearly every good consumed in the U.S. moves on a truck sometime during its life cycle. That has led to trucking hauling over 72 percent of all freight transported in the U.S. 1991 ‘The Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA, pronounced “Ice Tea”) did away with “bingo cards” (authority registration cards) and established nationwide standards for truck sizes and weights. 1994 The North American Free Trade Agreement (NAFTA) between Mexico, Canada, and the United States went into effect, expanding international trade among the three countries. Part of NAFTA involved making it easier to conduct cross-border trucking opera- tions. As a result of this, the NAFTA Trucking Demonstration Project ran from 2007 to 2009. This program allowed Mexico-based carriers to operate in the U.S. In 2011, the program was restarted under a “Concept Document.” The current program was later formalized as part of the U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and frag Accountability Appropriations Act, 2007. 1995 The [CC was formally abolished, and its remaining responsibilities were transferred to the Surface Transportation Board (STB). 1998 The Transportation Equity Act for the 21st Century (TEA-21) required states to lower the breath-alcohol content level for intoxication to 0.08. This Act also established the Motor Carrier Safety Assistance Program (MCSAP) to better disperse funds for state enforcement of CM’ safety and hazardous materials regulations. In part, MCSAP regulations require states to have motor carrier safety regulations that are compatible with the federal regulations. Finally, TEA-21 estab- lished the procedures used to shut down carriers proven to be unsafe or non-compliant. 1999 The Motor Carrier Safety Improvement Act of 1999 moved all motor carrier safety oversight responsibilities from the Office of Motor Carriers within the Federal Highway Administration (FHWA) to the then-newly created Federal Motor Carrier Safety Administration (FMCSA), an agency within the U. 5. DOT. The FMCSA officially began operation on January 1, 2000. 2015 The Fixing Americas Surface Transportation (FAST) Act required FPMCSA to establish a Drug and Alcohol Clearinghouse to track drivers that were caught violating the drug and alcohol regulations, implement electronic logging devices (ELDs), and develop new entry-level driver training requirements. 2017 Negotiations began on the U.S.-Mexico-Canada Agreement (USMCA), which was fully implemented in 2020. This updated and 10 replaced NAFTA. Under NAFTA and the USMCA, trucking has dominated cross-border trade. In 2022, 61.9 percent of the value of trade with Canada and 83.5 percent of the value of trade with Mexico was transported by trucks. 2021 The Infrastructure Investment and Jobs Act (IIJA) was passed, and it requires FMCSA to: « Develop automatic emergency braking regulations, Incorporate the rear-impact guard into the annual inspection requirements for trailers, Develop an apprenticeship pilot program for 18- to 20-year-old drivers, and Complete a large-truck crash causation study. 2022 According to the U.S. Department of Transportation, as of April 2023, there were over 750,000 active US motor carriers that own or lease at least one tractor. Trucking: A Mainspring of the U. S. Economy Over time, there have been a number of slogans that have captured the essentiality of trucking; for example: “Trucking Delivers Ameri- ca, “Good Stuff, Trucks Bring It,” and, most recently, “Trucking Moves America Porward.” ‘There is no doubt that the trucking indus- try can be justly called a mainspring of the U.S. economy. After all, practically everything we eat, wear, or use is delivered by truck. Since a nation’s progress is inevitably tied to how efficiently and effectively it transports its goods and people, much of the success of the American way of life is due to motor carriers and their drivers. Trucks of every type are serving Americas farms, homes, and indus- tries, performing a complete door-to-door transportation service entirely on their own or joining with other modes of transportation in hauling nearly everything we need. No American home ts too remote to share in the nation’s production. Li Trucks perform a distribution service that cannot be duplicated by any other form of transportation. Trucks have the advantage of flexibility which does not appear likely to be challenged. ‘Throughout the country, the motor carrier is the important link 1n the transporta- tion of virtually all commodities. After all, over 30% of all U.S. communities rely exclusively on trucks to deliver their products and goods. Although other forms of transportation play an important role in the transport of materials and people, each is necessarily limited in its operation. Cargo transported by railroads, ships, and airplanes, for example, ultimately must be hauled by truck to reach its final destina- tion. The motor truck ts the only direct means of transport to many warehouses, stores, and consumers doors. Important advantages of the motor truck are: Flexibility - Trucks can go virtually anywhere on our roads and streets. In fact, in 2021, commercial single-unit and combination trucks traveled 327.48 billion miles, while combination trucks alone logged 195.62 billion miles for business purposes. In the same year, combination trucks drove an average of nearly 80,000 miles, although many long-haul Class 8 tractors travel around 100,000 miles each year. Versatility - Any number of trucks can be used at any given time for a specific haul. Trucks are available in all types, shapes, and sizes. Many of them are specially designed to carry a specific product or class of products, and many of them are adaptable to another, but similar, class of product. Efficient Delivery - On average, trucks are more efficient than rail transport. This greater efiiciency is due to easier pick-up and delivery as well as trucking’s ability to pick up and deliver door- to-door. This, coupled with regular delivery schedules, allows much lower stockpil- ing by manufacturers and merchandisers. Goods can be ordered as needed, freeing capital that would otherwise be frozen in inventory — something all businesses desire. In other words, trucks are a more efficient means of transport. Protection - Truck cargo requires less packing and handling, which reduces packing expenses. This feature also results in less damage and Iz pilferage. All of this means savings to shippers and their customers. Essentiality - The dynamic motor transport industry has accepted its responsibility as an essential force in the continued expansion of America’s mass production and distribution system, and is constantly striving to develop better service and equipment to support a growing America. Trucking: A Leader in Safety & Security According to figures from FMCSA, U.S. truck drivers’ ability and commitment to avoid and reduce crashes resulted in a 34% decrease in the number of fatal or injury crashes per 100 million vehicle miles traveled by large trucks between 2000 and 2020. What makes this decrease so astounding ts that since 2016 the National Highway Traffic Safety Administration (NHTSA) umple- mented changes to revise vehicle classification based on gross vehicle weight rating (GVWR), which reclassified 329 light pickup trucks as large trucks. Without the reclassification, the trucking industry's overall crash statistics would be even lower. Motor carriers, in cooperation with their state and national associa- tions and law enforcement, carry on year-round multiphase safety and security programs related to driver selection, training, and supervision. Trucking safety and security professionals are con- stantly evaluating their existing and new safety and security practices, technology, and training. Many states’ cooperative highway safety patrols report unsafe practices or exceptionally good performance by truck drivers. Professional drivers are carefully selected for judgment, responsibility, and skill, among other qualities. Many of today’s vehicles are equipped with the most modern safety devices and all equipment is, and must be, regularly inspected and kept in good repair. To further reinforce the importance of safety and security, the Truck Driving Championships, Step Van Driving Championships, and other awards and recognition programs are held on a local, state, and national level, during which drivers earn respect and awards for their skill in handling their vehicles and for their safe and secure driving achievements. 13 ‘The trucking industry also cooperates with state, local, and federal officials as well as organizations like the National Safety Council, universities, and other entities that study and teach safe and secure practices and provide related tools. Altogether, this collaboration produced an outstanding safety and security record for the industry. Trucking: A Good Corporate Citizen Truck drivers are instructed to cooperate with motorists to make highway travel safer and more pleasant. The trucking industry's year-round safety and courtesy campaigns stress, for example, that truck drivers should pull to the right, if possible and safe to do so, to allow motorists to pass, particularly on hills. ‘They should also avoid creating moving traffic blockades. Even before the general public and government became concerned about environmental impact and energy conservation, the trucking industry was working to reduce fuel consumption and the noise and smoke created by some truck engines. Truck drivers do their part as good citizens by observing and reporting cases of vehicle breakdowns, accidents, and other difficulties as well as alerting law enforcement authorities to suspicious, erratic, and dangerous behavior and situations. Hundreds of letters are received annually by truck operators across America praising drivers for acts of courtesy, courage, and helpfulness toward the motoring public. Trucking: One National Voice The trucking industry is represented nationally by American Trucking Associations, Inc. (ATA). ATA ts a federation of motor carrier mem- bers, industry suppliers, 50 state trucking associations (each represent- ing all classes and types of truck operations within their specific state), five afhliated conferences (each representing a type of truck operation), five councils (professional societies comprised of individuals with specific job functions, such as safety, maintenance, security, etc.), and the American Transportation Research Institute. ATRI, as it is also known, has been engaged in critical transportation studies and tests since 1954. Asa non- profit, ATRI is dedicated to conducting and 14 supporting research on trucking’s essential role in a safe, efficient, and viable transportation system. ATA ts headquartered in Washington, D.C., with a separate office on Capitol Hill. ATA’s mission is: - To serve and represent the interests of the trucking industry with one united voice; ¢ To positively influence federal and state governmental actions; > To advance the trucking industry's image, efficiency, competitive- ness, and profitability; « To provide educational programs and industry research; - To promote safety and security on our nation’s highways and among professional drivers; and ¢ To strive for a healthy business environment. ‘The departments into which ATA ts divided support tts mission and include: Office of Public Affairs; Image & Outreach; Legislative Affairs; Law; Policy & Regulatory Affairs (including Safety, Security, Opera- tions, Highway, Cross Border, Environmental, Engineering, Govern- ment Trafic, Workforce Development, etc.); Federation Relations & Strategic Planning; Economic & Statistical Analysis; the Conferences (Agricultural and Food Transporters Conferences; Automobile Carriers Conference; Government Freight Conference; Intermodal Motor Carriers Conference; and Moving and Storage Conference), as well as the Councils (National Accounting & Finance Council; Safety Manage- ment Council; Transportation Security Council; Technology & Mainte- nance Council; and Women in Motion Council.) ATA 1s also the headquarters for Transport Topics, the weekly newspaper of the trucking industry. Trucking and the Driver’s Role in Building Public Relations The trucking industry is the most vital part of our entire nation’s transportation system. Without trucking, the economy would screech to a grinding halt. Without the 3.5 million truck drivers transporting goods safely and efficiently in the U.5., there would be no industry. To say that everyone in the United States relies on the merchandise delivered by America’s truck drivers is true but not 15 enough in the modern arena of public opinion. ‘Today, the profession- al driver must not only move America physically, but also psychologi- cally. A driver's ability to drive crash-free, provide quality and timely service, represent the industry professionally, and demonstrate the essentiality of trucking are now all critical to public perception and the health of the industry. It is because of the professional truck drivers’ superior performance and professionalism that the public still has a positive overall view of CMV drivers. For most Americans, the driver represents trucking and is the most visible symbol of the industry. A driver's actions behind the wheel form a lasting impression on the motoring public. The public's opinion, and thus, the industry's reputation, affects the way govern- ment officials regulate the industry, including operational require- ments and limitations, fees and taxes, and the ability to gain access to certain roads and highways. Ultimately, the industry's reputation affects its ability to grow and prosper. To overcome negative percep- tions, the industry relies on each truck driver's superior driving abilities, professionalism, and courtesy at all times. America’s Road Team Further helping to bolster the industry’s image is America’s Road Team. Created by American Trucking Associations in 1986 and sponsored by Volvo Trucks, this national public image and outreach program is led by a team of professional truck drivers with superior driving and communication skills, remarkable safety records, and a strong desire to educate fellow motorists and the general public on highway safety and the trucking industry. Millions have heard the Road Team motto: “Safety is our driving concern.” America’s Road Team Captains, most of whom have million-mile, accident-free driving records, take a few days each month away from their truck driving jobs to travel and speak on behalf of ATA and the industry to the media and public. They conduct news interviews and hold safety talks before diverse groups including students, senior citizens, businessmen and women, and fellow truck drivers, during which they share their experiences and safety successes. Road Team drivers address transportation issues from their unique perspective and promote the trucking industry's overall commitment to improving highway safety. 16 Share the Road Because one life lost in a trafic accident is one too many, American Trucking Associations Share the Road program its dedicated to reducing the fatality and accident rates on Americas roadways. This national safety outreach effort seeks to educate all motorists about how trucks and cars can safely share the road. The Share the Road program engages a team of professional truck drivers known for their safe driving records to conduct safety demon- stratpons to the media in an effort to reach the driving public through TY, radio, print, and online. Representatives from State Trucking Associations, ATA member companies, and law enforcement are also enlisted to help communicate the Share the Road lifesaving messages to hundreds of towns and cities, and millions of motorists annually. By providing highway users with tips on how to drive safely around trucks, the ATA Share the Road program ts helping to reduce accidents and save lives. In fact, U.S. DOT reports have credited programs like Share the Road with the significant reduction in truck-related fatalities over the past decade. The Share the Road program has been in existence for over 20 years and replaced the highly successful How to Drive program, a partner- ship with the Federal Motor Carrier Safety Administration. Combating Human Trafficking ATA and its member companies are leading an industry-wide effort to help end human trafficking. ATA encourages all of its member companies to provide anti-human trafficking training to their drivers and staff, and to implement and enforce zero-tolerance policies related to human trafficking and commercial sex activities. Trucking: Government Relations Truck Taxes The trucking industry's support of America goes beyond transporta- tion and highway safety and security. It is also a huge revenue generator for federal, state, and local governments. Commercial lL? trucks paid $34.89 billion in federal and state highway-user taxes in 2021. Of that total, $18 billion was paid in federal highway-user taxes by the trucking industry in 2021. The total consisted of: « Diesel taxes: 58.3% « Federal use taxes: 6.0% « Gasoline taxes: 9.9% « Retail truck taxes: 22.6% « Tire taxes: 3.3% States collected $16.77 billion in total highway-user taxes, with $13.7 billion contributed to commercial truck diesel taxes. In addition, for a typical five-axle tractor-semi-trailer combination, a carrier pays a federal excise tax on new equipment and tires, federal and state fuel taxes, a federal heavy vehicle use tax, a state registra- tion fee, and various other state and federal fees and taxes. In January 2023, the average cost in taxes for a 5-axle tractor- semitrailer combination was $7,745. Oregon collected the highest average tax, $22,508, among the 50 states and the District of Columbia. Alaska collected $1,783 on average in taxes on a typical 5-axle tractor-semi- trailer combination, the lowest average tax in any state. Federal Regulations As stated previously, interstate trucking came under the control of the federal government in 1935 with the passage of the Motor Carrier Act. At that time, federal control over rates, routes, operating territory, and operating procedures of interstate for-hire motor carriers was vested in the Interstate Commerce Commission (ICC) which then issued its Motor Carrier Safety Regulations. In 1967, control over interstate motor carrier safety, including such regulations, was transferred to U.S. DOT which ts led by a presidential appointee known as the Secretary of Transportation and is currently divided into 10 operating administrations, four of which are directly or indirectly related to trucking. The four are: The Federal Motor Carrier Safety Administration (FMCSA), established on January 1, 2000, pursuant to the Motor Carrier Safety Improvement Act of 1999, administers the Federal Motor Carrier Safety Regulations (FMCSR). These safety regulations are 15 the primary regulations motor carriers must comply with. They cover company requirements (safety management, registration, authority, insurance, etc.), vehicle marking, driver licensing and qualifications, safe driving, parts and accessories, hours of service, vehicle inspec- tion and maintenance, etc. FMCSA has also issued standards for state safety programs, and the state regulatory and enforcement bodies have, for the most part, adopted them as their own. The Pipeline and Hazardous Materials Safety Administration (PHMSA), created in 2005, is responsible for hazardous materials transportation and safety. This agency oversees the Hazardous Materials Regulations (HMRs). These are the regulations carriers and drivers transporting hazardous materials must obey. Topics covered by the HMBRs include registration, naming and classifying hazardous materials, shipper’s responsibilities, and package and tank specifica- tion and testing. Also in the HMRs are specific requirement for carriage by rail, aircraft, water vessels, and highway vehicles. The National Highway Traffic Safety Administration (NHTSA), established in 1970, provides education, research, safety standards, and enforcement activity for the purpose of saving lives, preventing injuries and reducing economic costs due to traffic crashes. Under its authority, NHTSA issued the Federal Motor Vehicle Safety Standards (FMVSS), which set forth minimum safety performance require- ments for motor vehicles or items of motor vehicle equipment with which manufacturers must comply. All new vehicles must comply with the FMVSS when built, and many of the FMVSS requirements have been adopted into the FMCSRs, requiring commercial vehicles to be in compliance with them when operating on the roadway. The Federal Highway Administration (FHWA), one of the first admin- istrations to be created under U.S. DOT on October 15, 1966, has broad responsibility for ensuring that America’s roads and highways (physi- cal infrastructure) continue to be safe and technologically up to date. Another agency that has regulations affecting the trucking industry ts the Environmental Protection Agency (EPA). EPA regulations affecting the trucking industry include emissions limits on soot and waste gases (such as NOx and CO2), and the required use of Ultra Low Sulfur Diesel (ULSD). 1o State Regulations Both interstate and intrastate trucking operations are subject to many types of state regulations — tax, environmental, and safety, to name just a few. State Authority: On January 1, 1995, the Federal Aviation Administra- tion Authorization Act of 1994 went into effect. It prohibits States from enacting or enforcing any law or regulation affecting the prices (rates), routes, or services of any motor carrier of property (except household goods). That same law, however, permits States to continue to regulate motor vehicle safety, including the transportation of hazardous materials (as long as the state regulation is consistent with the federal hazmat regulations). It also permits States to control routing based on the size and weight of vehicles, and financial responsibility (insurance). In addition, states may also enact laws and regulations governing cargo liability, extension of credit, bills of lading, classification, mileage guide and joint line rates, but these “economic” laws can be no more burdensome than federal laws and/ or regulations addressing the same subject and may only apply to carriers who elect to be subject to them. State and city ordinances may also govern speed limits, idling, mud flaps, and parking on ramps. ‘The constitutionality of whether the federal government could prohibit states from enacting/enforcing such pricing, route, or service laws was upheld by the U.S. Court of Appeals for the 10th Circuit and later by the U.S. Supreme Court in February 2008. State Taxes; Every state taxes the operations of motor carriers, both inter- and intrastate, through highway taxes such as vehicle registra- tion fees and fuel taxes and through general business taxes like sales and corporate income taxes. Depending on the type of carrier operation, drivers may have substantial tax compliance respomsi- bilities, including the creation of trip reports for mileage and fuel tax records, and the proper presentation of tax and registration creden- tials for the states in which they travel. Business taxes are becoming more complex for motor carriers as technology and laws change. Currently, carriers can expect to pay business taxes in states other than their domicile state, generally 20 based on a formula incorporating the mileage percentage calculated for other (registration) purposes. Environmental Requirement: In addition to new federal diesel engine emission requirements, many states have or are adopting environ- mental regulations which also affect trucking operations. These regulations include such matters as idling reduction, diesel engine retrofits, transport refrigeration unit upgrades, alternative fuel mandates, and roadside smoke inspections. The increased focus on climate change and the “greening” of businesses will result in contin- ued efforts to advance environmental regulations directed at the transportation sector at both the state and federal levels far into the foreseeable future. It will also spur research and testing of alternative fuels such as natural gas. Commercial Driver Licenses: As previously noted, the Commercial Motor Vehicle Safety Act of 1986 set minimum, mandatory national standards for states to follow when issuing a CMV driver's license. The regulations that pmplemented this Act are found in 49 CFR Part 383. As a result of these regulations, drivers of certain CMVs have been required to have a CDL in order to drive a CMV. Then, based on the Motor Carrier Safety Improvement Act of 1999, FMCSA went a step further and issued regulations to address a number of licensing issues: (1) disqualification for driving while suspended or disqualified, or for causing a fatality; (2) emergency disqualification of drivers posing an imminent hazard; (3) expanded definition of serious traffic violations; (4) extended driver-record check; (5) new notification requirements; (6) a prohibition on “mask- ing” by requiring convictions to be made available to authorized parties; and (7) disqualification for violations obtained while driving a noncommercial motor vehicle. Law Enforcement: Virtually all states have adopted the provisions of the Motor Carrier Safety Assistance Program (MCSAP), so that federal safety regulations now have the force of state as well as federal law. Administered by FMCS.A, MCSAP enables state enforcement personnel to monitor the compliance of both inter- and intrastate CMs with a uniform set of safety regulations. Under MCSAPB, uni- form roadside driver and vehicle safety inspections, traffic enforce- ment, compliance reviews, and the like are eligible for federal funding. ral | To ensure that large trucks and buses driving on the nation’s roadways are operating safely, trained inspectors in each state inspect com- mercial motor vehicles based on procedures and criteria created by the Commercial Vehicle Safety Alliance (CVSA). The criteria and procedures known as the North American Standard Inspection Program describes the 8 level of inspections: « Level I - North American Standard Inspection e® Level I - Walk-Around Driver/Vehicle Inspection * Level III - Driver/Credential/ Administrative Inspection « Level IV - Special Inspections « Level V - Vehicle-Only Inspection « Level VI - North American Standard Inspection for Transuranic Waste and Highway Route-Controlled Quantities (HRCQ) of Radioactive Material « Level VII - Jurisdictional Mandated Commercial Vehicle Inspection « Level VIII - North American Standard Electronic Inspection Typically, inspectors conduct 3.0 to 3.5 million inspections annually. However, only 2.58 million roadside truck inspections were conduct- ed in 2020, a 23% decrease from 2019. The decrease in inspections is attributed to the COVID-19 pandemic. However, in 2021 there were 2.88 million inspections completed and that number increased to 2.99 million in 2022, indicating a return to a more traditional number of inspections. Trucking: Classes and Types of Carriers The U.S. trucking industry is comprised of more than 750,000 active motor carriers; about 95.8% operate 10 or fewer trucks and 99.7% operate 100 or fewer. Approximately 13.86 million trucks (all classes) were registered for commercial use in 2021. Motor carriers fall into two other broad categories: “private” and “for- hire.” Private carriers are those shippers, manufacturers, merchants, and others who use their own vehicles or leased trucks under their direct Zz control for moving their own goods. ‘Their principal business activity is something other than transportation. For-hire carriers are those trucking companies providing transporta- tion of freight owned by another party. For-hire operations are of several types: interstate, intrastate or local. Most intrastate trucking, and even some local operations, will involve interstate commerce, and thus usually come under federal regulation by FMCSA. Traditionally, motor carriers have engaged predominantly in either local or intrastate operations. As a generally accepted rule, a carrier is a local carrier if at least half tts business 1s conducted in metropolitan or commercial zone operations. Interstate carriers transport cargo that has or will cross state lines. Many are also known as line-haul or over-the-road carriers — in almost all cases they also conduct local pick-up and delivery opera- tions. Since 1980, many traditionally local carriers expanded their operations. Similarly, many traditionally “interstate” carriers have acquired local operations. Whether private or for-hire, generally, a motor carrier can be characterized as a truckload (TL) or less than truckload (LTL) carrier. A truckload carrier is one that dedicates trailers to a single shipper's cargo, as opposed to an LIL carrier that transports the consolidated cargo of several shippers and makes multiple deliveries. Currently, regulated freight carriers are classified by FMCSA based on Bross annual revenues: « Class I carriers have gross annual revenues of $10 million or greater; « Class IT carriers have gross annual revenues of between 33 million and $10 million; and « Class II] carriers have less than $3 million in gross annual revenues. The Highway System There are over 4.19 million miles of highways and roads in the United States. These roads are functionally classified as arterials, collectors, 3 or local roads, depending on the type of service they provide. The roads are further subdrvided into rural and urban area classifications. Arterial roads generally provide the fastest method of travel, typically have minimal accessibility from neighboring roads and were envi- sioned for long-distance travel. These thoroughfares are designed to the highest standards, are wider, and have multiple lanes and some degree of access control. Collectors are generally two-lane roads that serve short trips. They collect and distribute travel to and from arterial roads and local roads. Local roads are those not classified as either an arterial or collector. Of all the roadway systems, the National Highway System is one of the most essential to the nation’s economy, defense, and mobility, even though it only comprises 4.1% of the nation’s roads. This system carries more than 44% of all vehicle traffic, 75% of heavy truck traffic, and 90% of tourist traffic. It consists of: « Certain designated interstate highways; e Specific arterial roadways which provide access to major ports, airports, public transportation facilities, or other intermodal facilities; « A Strategic Highway Network, which provides defense access, as well as continuity and emergency capabilities for defense purpos- E55 « Major Strategic Highway Network Connectors, which provide access between major military installations and the Strategic Highway Network; and « Intermodal Connectors which provide access between major intermodal facilities and the other four subsystems making up the National Highway System. The growth rate in highway vehicle miles traveled (WMT) had exceed- ed 3% for every five-year period in the 1960s. In the 1970s, the growth of U.S. VMT was offset by sharp declines corresponding to the recession and fuel crisis in 1973-74 and 1979-80. VMT grew steadily in the 1980s by 37%, the 1990s by 26%, and the 2000s by 8%. From 2010-2015, VMT grew just under 5%, from 2.98 trillion to 3.10 Z4 trillion. Growth stalled from 2015-2020 due to the COVID-19 pandemic. Numbers decreased over 4% from 3.11 trillion in 2015 to 2.9 trillion in 2020. Bridges Bridges and structures are key components of the nation’s roadway network that provides transportation connectivity to safely cross features such as waterways, railways, roadways, and other obstacles. Through federal regulations and policy, the FHWA Office of Bridges and Structures manages the technical guidance and policy of the nation’s bridges. ‘The Office of Bridges and Structures gives direction on design, construction, inspection, evaluation management and preservation of the nation’s inventory of highway bridges. Approxi- mately $7 billion is given by FHWA annually to assist transportation agencies to plan, design, build, repair, rehabilitate, and inspect bridges and structures. The Bureau of Transportation Statistics (BTS) reported that there were over 621,000 bridges in 2023. To maintain the nation’s bridges and structures, FHWA grades bridges by structural integrity in three categories: good, fair, or poor. In 2023, there were 275,000 bridges in good condition, 304,000 bridges in fair condition, and over 42,000 bridges in poor condition. iS