Houston Truck Deals delivers news and information on the state of the trucking industry in the Houston area, the state of Texas and national developments which affect us in the South West. Many drivers are experiencing the pain at the pumps with gas bills frequently topping $1,000 and more to fill an 18-wheeler’s fuel tank. The state of the economy and the health of the trucking industry rely on effective control of the rising cost of diesel. This is more than simply the pain associated with a headlining $5 a gallon gas price – the state of the entire recovery and the US economy rely upon dealing with the cost of diesel.

Today, we take a look at the written submissions of the American Trucking Association to Congress in Washington D.C.:

A recent press release told us that the House Natural Resources Committee met with American Trucking Associations President and CEO Bill Graves to discuss the trucking industry’s need for access to affordable diesel fuel, as well as potential new practices for the trucking industry.

Graves, in regards to the rising oil prices, shared with the committee the expected amount the trucking industry projects it will spend on fuel in 2011, and the cost is a good $35 billion dollars more than 2010.  Graves explains that this not only impacts the trucking industry, but trickles all the way down to the consumer.

Graves had many suggestions for the committee, all having to do with Congress involvement to make them happen.  One is to conserve the oil we have by encouraging the development of gas-to-liquid fuels.  Liquefied natural gas (LNG) trucks are double the price of a standard diesel truck, but the potential savings in relation to oil prices is significant.  In order to encourage the use of these LNG trucks, Graves suggests that not only should Congress regulated refueling and weight stations to accommodate the LNG trucks, which are heavier than standard diesel trucks.  Additionally, Graves says that a tax credit may be necessary to encourage trucking companies to make the change over to LNG trucks.

The LNG truck is not a single solution to the problem, however.  Graves says that while this practice would conserve diesel fuel, more oil needs to be made available.  Because of this need, Graves suggests that Congress urges the Obama administration to allow more offshore drilling in the Gulf of Mexico to procure more oil.  Graves is adamant that the US do more to increase the supply of oil so that fuel costs can be addressed.

While the hearing was technically about gas prices, Graves, as a spokesperson for the trucking industry, was a key person to make a statement, since around seven million Americans currently work in the trucking industry, and the industry is suffering because of the high fuel prices.

Houston Truck Deals is dedicated to bringing you the news and views on what is happening within the trucking industry. Today, we’re taking a look at NTSB lady chairperson who also holds a CDL – the first NTSB head to do so:

Deborah A.P. Hersman, Chairman of the National Transportation Safety Board, knows a lot about the transportation industry.  In fact, prior to her appointment as Chairman of the NTSB in July of 2009, she served on the U.S. Senate Committee on Commerce, Science, and Transportation (1999 to 2004), and has held her Commercial Driver’s License since 2004.  What better-qualified woman to honor female truck drivers at the largest heavy-duty trucking event in the world?

Hersman honored female truck drivers at the 2^nd Annual Women in Trucking Salute to Women Behind the Wheel, an event that occurred on the last day of the Mid-America Trucking Show in Louisville, Kentucky.  The 2010 1^st Annual Women in Trucking Salute to Women Behind the Wheel yielded 300 participants, and this year’s was expected to have double attendance.  600 hundred participants are more than enough to beat the former world record for the largest gathering of professional women truck drivers -  a record set in 2004 in the Netherlands.

The larger event, The Mid-America Trucking Show, celebrated its fortieth anniversary this year, and had exhibitors from every possible field of the trucking industry.

Hersman departed Washington, D.C. in a 2011 Kenworth T660 heavy-duty, long-haul tractor trailer.  The rig was driven by Conway Truckload professional Stephanie Klang.  During the course of the journey to Louisville, Hersman rode with four other drivers that work for companies that belong to the Women in Trucking organization, including U.S. Xpress, Schneider, Wal-Mart, and UPS.

Along the way, Hersman observed a Level 1 roadside inspection at a weigh station in Maryland, visited a West Virginia travel center, and more.  She met with Kentucky and West Virginia transportation officials at one round table, as well as with safety advocates at another.  She hosted a listening session with safety officials, and one with professional drivers.  Her journey ended at the Mid-America Trucking Show, where her salute to female truck drivers began at 1 PM EDT at the Kentucky Fair and Exp Center on the last day of the show.

The NTSB formed in 1967 with strong ties to the U.S. Department of Transportation.  In 1975, the Independent Safety Board Act severed those ties and exists today as an independent organization that gets its authority from U.S. Code Title 49-Subtitle 11 – Chapter 11.  The organization’s main purpose is to investigate accidents that happen on land or in the air, but safety and the prevention of accidents is a main goal and focus.  Terms of office last five years, so Hersman will hold her title until July of 2014.

Houston Truck Deals is the premier online resource for truckers and owner-operators, including providing a secure online platform for buying and selling trucking equipment.

We cover the latest consumer spending data issued by the U.S. government for February 2011:

Consumers increased their spending by 0.7% in February 2011, which follows on from a 0.3% increase in spending reported for the month of January. Whilst the increases in consumer spending is good news for the economy, there are several worrying issues which ought to be addressed.

When an economy transitions from recession to recovery, the greatest fear is that price inflation will outstrip the ability of consumers to buy goods and the recovery will slide back into recession. There is a very delicate balancing act with the need to maintain price stability and business recovery, but at the same time to ensure that price inflation is curbed because this in turn leads to higher interest rates and this dampens down any economic revival.

The fact that consumers are prepared to spend more money is the most heartening sign of all. The fact that people feel more secure in their jobs and financial situation is allowing them to consider greater expenditures, however there is a sting in the tail with this data.

The extra money for spending is coming from consumers accessing savings and using credit to meet the gap between their incomes and the cost of goods they are buying.  A major component of the increase in consumer spending is the price of gas – with gas knocking on the $4 per gallon level, and fears of a $5 a gallon price level this year, the cost of motoring is going up. Once you appreciate the masking effect that the cost of gas is having on total amount of consumer spending, the strength of the economic recovery is put into perspective.

If more money is simply going into gas tanks rather than buying goods and services, then the recovery cannot be as strong as the data tells us. The good news is still that consumer spending on goods and services is also rising, even after taking into account the chunk allocated to gas costs, but it is a delicate set of increases in spending which could be simply wiped out if price inflation starts running rampant.

The bottom line is that while we are on the road to recovery, as can be seen from new job hires within the trucking industry, increasing driver rates and unfortunately, increases in the cost of diesel at the pumps, the whole economic outlook is still very fragile.

Houston Truck Deals is the #1 Houston trucking resource on the Web and for buying and selling trucking equipment.

Today, HTD puts the spotlight on the growing problem of domestic human and child sex trafficking afflicting the country and the efforts of Truckers Against Trafficking to combat the problem:

The border with Mexico is a problem for truckers and the country, though the major issue is the impact of illegal immigration with desperate people trying to make it into the US which creates a human problem, both for the illegals themselves and for the US. Any truck driver operating in the region knows the problems because they see them every day: border checks, high crime threat, drug cartels creating havoc and unsafe conditions for everyone, and a human and economic cost which is impossible to quantify but we all know it is extremely expensive.

What many do not understand is that there is a huge human trafficking problem within the United States itself. Of particular concern is the level of child sex trafficking within and between states.

Truckers Against Trafficking has been established to recruit truckers as eyes and ears to help tackle the problem. The average age of a child involved in the illicit sex trade is just 13 years old – I have two children on either side of that age and it is impossible for me to even consider what is happening to these kids who are less fortunate.

But truckers can and do make a difference – all it takes is one phone call to report any suspicious activity to save a child.

The problem of child sex trafficking spreads across the entire country, though there are hotspots in certain areas which are more affected.  Oklahoma is one such hotspot, situated as it is right in the center of the country and at the crossroads of virtually all the major national trucking routes. Texas is also a regional hotspot, given its extended border with Mexico and the activities of human trafficking gangs trading in human misery and targeting vulnerable children for effective enslavement in the sex trade.

Shared Hope International is an organization which monitors the child sex trafficking problem both internationally and domestically. A recent report card was issued for Arizona, one of Texas’ neighbors, and the results are deeply disturbing. An overall assessment of the laws and actions of enforcement authorities has resulted in only a moderate rating.

For instance, AZ has relaxed one child prostitution law which has downgraded buying sex from a child aged between 15 and 17, from a Class 2 to a Class 6 felony. In jail sentencing terms that means the difference between 21 years and as little as 90 days.

The really disturbing issue is that Arizona is not particularly bad at tackling the issue, just about as good as every other state in the country.

Check out this blog post at Jim and Jan McCarter’s blog on the issue (Jim is aka Bobby Boofay)

Houston Truck Deals is the premier online resource for trucks and trucking equipment in the Houston region.

Today, we take a look at the close ties between the Port of Houston and the family of Colonel Ghadafi, the embattled leader of Libya.

Gas prices are pushing through the $4 a gallon limit; however some pundits are predicting $5 gas by the end of the year. One reason for rising gas prices is the concern over the safety of oil supplies from the Middle East, which includes the war torn Libya. As President Obama gave the order for a no-fly zone to be implemented, and in conjunction with coalition allies, launched a strong series of plane and missile strikes against key targets in rebel-held areas of Libya, it has comes as a shock to learn that the Port of Houston has been forging extremely strong ties with the ruling Ghadafi clan.

Khamis Ghadafi Photo Session with Port of Houston Officials

Roll back the clock to January 2011, and the Port of Houston was playing host to a very important person’ Khamis Ghadafi, the Libyan ruler’s son.  A photo session was held with Port of Houston chairman, Jim Edmonds, and the man which the US administration is calling a ‘bloodthirsty special forces commander…[who] used mercenaries to massacre civilians”  in Libya.

The close ties between the Ghadafi clan and the Port of Houston stem from a proposed contract for the construction of five port facilities in Libya.  The Port of Houston was involved in negotiations for over two years, which also included offers to share technology and information on security practices.

Remember this is Libya – a terrorist state which has been responsible for numerous atrocities carried out on American citizens, including the Lockerbie bombing of a Pan Am 747 which crashed in Scotland.

So far, the Houston taxpayer has forked out over $60,000 in airfares alone, to woo the Libyan leadership, which includes a $12,000 plane ticket.

The January visit by Khamis was prematurely ended because of the increasing unrest in Libya, which has spilled over into outright civil war. The no-fly zone has now been implemented and Ghadafi’s military forces are being pushed back by the rebels who have held and retaken key installations and cities in the country.

The first issue is that all the taxpayer money expended has been lost. No contracts will be honored or entered into whatever the outcome of the civil war in Libya, and even if Ghadafi remains in power he is not likely to hand over cash to any US entity after the US military has bombed the country. The second question is though diplomatic tensions have eased between the two countries, just what was going on with the Port of Houston getting into bed with a bunch of terrorist killers?

Houston Truck Deals is the premier source for trucking industry and business news in the Houston region.

Today’s post puts Houston oil giant, ConocoPhillips, under the spotlight.

The Houston oil giant, ConocoPhillips has been expanding and is one of the success stories emerging from the recessionary times. The experience of the hard recession has persuaded the company to take a hard look at its operations and the decision was previously made to strip away non-essential businesses and operations. It is the scale of the sell-off of assets which has heads turning – over $17 billion worth!

The sell-off program will take up to 2 years to complete and the rationale behind the asset sales will be to pay off debt and provide more in0house financing for capital projects. Looking deeper into the numbers and the company, which is the 3rd largest oil company in country, is adopting a tactic of shrinking in order to expand. The latest sell-off announcement is in addition to the one made in 2009. At that time, the company announced a $10 billion sell-off of assets which is expected to be completed by the end of 2011. The current round of sell-offs is expected to take place through to the end of 2012.

By shedding operations which have created high exposure to the high risk oil refining business, ConocoPhillips is expecting to improve share holder returns. Issues over oil supplies and the cost of raw materials have also made a mockery of oil refining business projections over the last couple of years, leading to enormous loss-making potential.

To put the asset sale into perspective, ConocoPhillips has assets in excess of $156 billion. Assets likely to be put up for sale include oil and gas facilities and rights in western Canada, Germany and the United States. In particular, oil refining capacity will be reduced from $2.7 million barrels in 2010, down to 1.8 million barrels by 2013. Oil production will also be reduced in the short-term, from 1.75 million barrels per day (in 2010) down to 1.6 million per day (in 2013), though it is then expected to rise as new oil projects come on-stream. ConocoPhillips has already sold a 20% state in the Russian company, Lukoil for $9 billion, though this is not included in the existing or newly-announced sell-off plans.

Stock markets have responded positively to the news: the share price of ConocoPhillips has seen a 50% increase in the past 12-months and rose a further $1.32 per share on the new sell-off announcement.

Houston Truck Deals is the premier online resource for Houston truckers looking for trucks and trailer equipment.

Today’s post will take a look at the major issues facing the trucking industry in 2011.

The trucking industry is leading the economy out of the recession, however just as it is one of the first industry sectors to feel the benefits of recovery, it is also one of the first to feel the adverse effects of any stalling in the economy.

What are the major issues facing the trucking industry as we continue into 2011?

Gas Prices

California is already experiencing $4 a gallon gas prices, and the rest of the country is seeing increases across the board. When it costs over $1,000 to fill up a rig you know there is something going on which is seriously causing headaches for everybody’s financial planning and budgeting. We can expect more fuel increases as the Middle East unrest continues to gather pace, particularly with US military involvement in Libya and elsewhere in the region. Upwards pressure on oil prices is going to increase due to increasing demand from every sector of the economy as business and consumer activity heats up.

Shortage of Drivers

The trucking industry shed over 300,000 jobs during the recession, however it wants those drivers back now. 200,000 driver jobs are expected to be created this year alone, with a similar number in 2012. The incoming HOS rule changes are going to amplify the shortage of drivers on the road, as existing drivers see their road time increasingly restricted.

Rising Freight Costs

Increases in demand, shortage of drivers and also a shortage of trucks (there has been a 13% reduction in trucks on the road between 2008 and 2010), are all going to put the cost of freight under pressure to increase. This is in addition to the general inflationary pressures which accompany the economic environment as we move out of recession and into recovery – as demand picks up, so will the price until equilibrium is established.

North American Free Trade Association (NAFTA)

We already know two key things: the behind closed doors negotiations between Hilary Clinton and her Canadian counterparts on an actual re-negotiation of the NAFTA treaty, and the new cross-border trucking deal with Mexico. Part of the renegotiation is going to address the NAFTA Superhighway, linking Mexico, through the US to Canada and creating an East/West divide to rival the North and South one.

Houston Truck Deals is the primary online resource for the best truck and equipment deals.

We’re looking at the results of the Texas Workforce Commission’s 2010 Economic Activity Review for 2010:

The Houston region weathered the economic recession relatively well, and through 2010 demonstrated advance economic signs of recovery well ahead of most of the country. The Texas Workforce Commission announced the results of the area’s job creation last year, and the numbers show that tens of thousands of jobs were added last year. This job creation trend is continuing into 2011 and that is the really good news for the region.

For the year to December 2010, the Houston area added 46,300 new jobs – an increase of 1.8%. The numbers are based upon payroll tax filings, and the underlying data also demonstrates that job creation activity is far wider in range than was thought to be the case; this is also a positive indicator for the region’s economic return to growth and stability.

In keeping with the rate of increase in new job creation, the unemployment rate for the Houston area also declined to 8.3%.  This is an already too high level of unemployment, however the national average has been touching 10% which demonstrates just hard hit the economy as a whole has been affected by the recession and just how much further down the road to economic recovery Houston already is.

The bottom line for Houston is that the area is also attracting labor as fast as it can create new jobs. This is also helping employers already in the area, because they do not have to worry about labor constraints when they are creating business plans. The availability of skilled labor is also making Houston a destination for new investment and providing a welcoming home for new businesses starting up.

Houston benefits immensely from its association with big oil. Jobs have been rapidly increasing in energy and the energy support sectors. 2010 saw over 5,700 jobs created in the exploration and production sides of the oil and gas industry alone. What is particularly encouraging is that this rise is in the face of the cutback in offshore work as a result of the offshore drilling ban after the BP oil disaster.

Houston’s status as a major industrial port and the Port of Houston has also been experiencing double-digit increases in both imports and exports; either way, the business activity emanating from the port has dramatically contributed to the region’s growth too. One area of the local economy which is affected is that the number of public jobs has shrunk dramatically over the same period of time, and this is a trend also expected to continue with very tight fiscal policies being implemented by legislators and local government bodies.

Houston Truck Deals brings you the very best truck and tractor-trailer equipment deals on the Web.

In this article we look at the proposed legislation to help disabled veterans who own o roperate a business in Texas:

State Representative Ryan Guillen (D-Rio Grande City) has proposed House Bill 888 which will provide contractual preference (positive discrimination) in favor of businesses owned or operated by disabled American veterans. The legislation will add amendments to existing positive discrimination laws which have been used to help minority members who own businesses gain contracts from the State government.

The law specifically revolves around HUBs – Historically Under-utilized Businesses.

Providing a HUB is at least majority owned by a disabled American veteran then it will qualify for benefit under the new law. A majority stake means at least 51% ownership. Previously, the HUB program was used for economically disadvantaged groups and minorities which mean you had to be a woman, a member of a racial minority group or a group which was recognized as economically disadvantaged.

Supporters point to the reports by the State Comptroller of over $6 billion in State government contracts being awarded to HUBs since 2008. Others point out that Texas is way behind other states in implementing such programs to help disabled veterans and veteran business owners. Jim Brennan is an Army veteran and runs AAUSA Electric Supply, however he has been highly skeptical of the new legislation. In his opinion, even the new legislation is not providing enough assistance to those disabled veterans who are looking to make a difference to the commercial life of the state and that Texas is not doing enough to help probably the most important, disadvantaged minority in the country – the state’s disabled veterans.

State Representative Guillen has previously sponsored legislation which saw the Texas veterans Commission budget increased by $13 million and allowed for the addition of a further 181 staff to that body. In addition, he introduced security legislation which saw the allocation of $110 million to Border Security initiatives and programs and he also serves on the Texas House of Representatives Border Legislative Conference. Guillen also supported a bill which relieved veterans of the post-9/11 conflicts from paying tuition fees at Texas state educational institutions and universities.

Houston Truck Deals reports on the imminent cross border trucking deal with Mexico.

The Mexican cross border trucking deal is likely to come into force within the next few days, according to U.S. Trade Representative Ron Kirk. US exporters to Mexico are happy with the prospect of a lifting of the cross border trucking ban – the retaliatory tariffs levied by the Mexican government has created havoc. The cost to US businesses and the economy has been put at over $7 billion a year in tariffs, however the cost in terms of business disruption and loss of Mexican market share has cost S industry even more.

First, let’s put this in to perspective.

In 2010, the United States exported $163 billion to Mexico and manufacturers and producers have had to bear the brunt of the cost of the cancellation of the previous trucking deal. In addition, the US runs a trade deficit with Mexico – over $229 billion of goods are imported from Mexico to the US, and the tariffs imposed upon US industry and agriculture have been making narrowing that trade gap increasingly difficult.

The impact on US exporters was magnified beyond the steep tariffs themselves because the Mexican government randomly rotated the target of the levies. One month wine would be hard hit but pork bellies may be adversely taxed the month after. This random application of tariffs across a very broad range of US goods made it impossible to make appropriate business plans, and the cost to US companies is far greater than the tariffs themselves.

The counter arguments from the US trucking industry are compelling.

The US economy is only now recovering from the worst recession in over 60 years. The industry is in an exceptionally fragile state though it is recovering well. Job losses have been heavy in the US trucking industry but 200,000 new driver positions are expected to be created this year. This volume of job creation is essential if the record unemployment we are currently experiencing is to be reduced (over 9% nationally). Mexican truckers earn around one third of their US counterparts, and will be able to cross the border and haul cargo to final destination anywhere in the US.  This is bound to have an impact on the ability of the US trucking industry to generate the much needed jobs here in America.

Road safety is a serious issue and the US and Mexican trucking industries are poles apart. The US has invested heavily in road safety, including the most exhaustive truck driver screening and training system in the world, but the same cannot be said of Mexico. Mexican trucks are simply not maintained to the same standard as their US counterparts and neither are their drivers trained anywhere near to the same standards. Rubbing salt into the wound is that part of the deal is the US taxpayer will pay for EOBRs to be fitted into Mexican trucks, though how far that is going to go to improve safety is anyone’s guess.

Unfortunately, as Kirk makes clear, the US Mexican cross border trucking deal could be in place within the next few days. This means by the time you read this Mexican trucks could already be hauling across the United States.