The days when heavy trucks idle away the evening at truck stops and freight yards may be numbered. States and municipalities are cracking down on the practice, and DCs may be forced to follow suit.
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
Old habits can be hard to break. But if it's a habit of idling a truck engine for hours on end, drivers might not have much choice in the matter. States and municipalities nationwide are cracking down on the practice, adopting new antiidling regulations (20 states now have restrictions) and stepping up enforcement of existing rules. These are no idle threats: Flout the regulations, and you risk a hefty fine.
But drivers risk more than fines if they don't kick the idling habit. They could also find themselves in hot water with their employers. Though they haven't always seemed terribly concerned about the practice, truckers today have become almost fervent in their zeal to minimize idling—and with good reason. Along with the potential legal exposure, they have powerful environmental (not to mention, public relations) incentives to reduce air pollution caused by idling trucks. And with diesel prices approaching a national average of $3 a gallon, their concerns about wasting fuel require no explanation.
For the nation's truckers, reducing idling could have a potentially enormous payoff. A typical long-haul tractor idles approximately 1,830 hours per year, according to the U.S. Department of Energy's Clean Cities program. Every year, U.S. trucks collectively burn more than 800 million gallons of diesel fuel while idling. The cost of that wasted fuel? Close to $3 billion a year.
A war on idling
Given those numbers, it's hardly surprising that truckers of all stripes—private fleets, truckload and less-than-truckload carriers, and small-package carriers—are vowing to cut back on idling. "Reducing idling makes great business sense," says Jim O'Neal, chairman of the Truckload Carriers Conference and president of O&S Trucking in Springfield, Mo. "It is a total waste of fuel and has a high maintenance cost to it. I'm not sure why we've done it all these years." Adds Dan Smith, corporate director of transportation for Smart & Final, a West Coast grocer that runs a private fleet of 55 tractors and 250 trailers, "Keeping idling to a minimum is good for the environment and good for the company."
As for how they're going about it, carriers have taken a variety of approaches. Some, like UPS Freight (the former LTL carrier Overnite Transportation), have chosen the technology route. UPS Freight has programmed its fleet vehicles' engines to turn off after five minutes of idling.
Others have taken what could be termed the behavior modification approach, rewarding drivers for cutting down on idling. Smart & Final, for example, offers additional compensation to drivers who avoid unnecessary idling. Smith reports that the strategy is working well. "Drivers are keyed into that. You rarely drive into one of our facilities and see a tractor idling."
Schneider National, the nation's largest truckload carrier, also rewards drivers for reducing idling time. Dennis Damman, Schneider's director of engineering, says the company asks drivers to idle their trucks only when the outside temperature drops below 10 degrees F. (Idling at low temperatures is necessary because it's difficult to start diesel engines when it is very cold.) Damman reports that the policy has been working. "Last January is a great example," he says. "We had 7,000 trucks that idled less than 5 percent of the time."
Carriers are also working with regulatory agencies to clean up their collective act. To date, well over 300 truckers (and a number of shippers) have joined the Environmental Protection Agency's SmartWay Transport Program. SmartWay, which includes an idling-reduction program, is a voluntary public-private partnership aimed at improving fuel efficiency and reducing greenhouse gas emissions in the freight transportation industry. Schneider National and O&S Trucking are both members of SmartWay, as is national LTL carrier FedEx Freight. "We view that as a commitment to our communities," says Doug Duncan, president of FedEx Freight.
No place for idling
The increase in state and local anti-idling ordinances might seem only peripheral to DC operations, but that's actually not the case. Though the regulations have the most direct effect on truckers, they're likely to have an impact on shipping and receiving operations as well.
Wal-Mart can attest to that. In 2005, the mega-retailer was fined by the Environmental Protection Agency (EPA) for clean air violations caused by idling trucks. In the fall of 2004, EPA inspectors had observed trucks owned by Wal-Mart and by other trucking companies idling for long periods at six different Wal-Mart properties in Connecticut and Massachusetts.
As part of the settlement, Wal-Mart agreed to pay a $50,000 penalty and establish idle-reduction programs at all of its facilities nationwide. The retailer also agreed to notify other delivery companies that idling is not permitted on Wal-Mart property and may violate state or local idling restrictions.
With the settlement behind it, Wal-Mart now prefers to frame its anti-idling initiatives as part of its broader environmental sustainability crusade. By establishing a "no idle" policy for its trucks and retrofitting them with high-efficiency generators, Wal-Mart claims it will save 10 million gallons of diesel fuel each year, reducing carbon dioxide emissions by 100,000 tons. It will also save nearly $26 million, according to company statements. (Wal-Mart officials declined to be interviewed for this story.)
Wal-Mart's initiatives have not gone unnoticed by other DC managers. O'Neal believes the retailer's anti-idling efforts have prompted others to follow suit, adding that he sees more shipping facilities establishing anti-idling rules.
One company that has cracked down on idling at its DCs is Smart & Final. Smith says the company has instructed inbound dry freight carriers not to idle in its yards, although he notes that the grocer makes an exception for temperature-controlled carriers that must run their engines to keep trailer-cooling systems operating.
What DCs can do
When it comes to discouraging idling, DCs have a huge role to play—one that goes well beyond simply handing down anti-idling rules, according to John Gentle. Gentle, the former global transportation leader at Owens Corning and now an independent consultant, believes DCs bear much—if not most—of the responsibility for the idling that takes place on their premises. And while creating anti-idling policies is a good start, Gentle maintains there's much more DCs can do.
To begin with, Gentle urges shippers and receivers to offer decent accommodations for drivers waiting for their trailers to be loaded or unloaded. When drivers are forced to sit in their rigs while awaiting their turn at the dock, they have no choice but to keep their engines running in order to maintain a comfortable cab temperature. That wouldn't be necessary if they had an acceptable place to wait, argues Gentle, who notes that he's seen some pretty small, uncomfortable waiting areas for drivers.
Offering comfortable quarters isn't just good business, Gentle says; it's basic decency. "Quite honestly, if shippers knew what some DCs looked like and how people are treated, they would be offended," he adds. "I'm not saying it's typical, but it is not an unfamiliar conversation."
The other thing DC managers can do, Gentle says, is take a candid look at their scheduling practices. Addressing any scheduling issues is imperative to reducing waiting—and therefore, idling—time. A history of long waiting times is an indication that DC operations are less efficient than they should be, he says. "If you cannot move a driver in and out, that's a problem."
Gentle adds that he doesn't buy the excuse that DCs have little control over what goes on outside their premises. "People say they measure from the time a truck pulls into the gate," he says. "That's a bunch of baloney. If a trucker is waiting two miles up the road to get in, you are kidding yourself."
Duncan of FedEx Freight agrees with Gentle that many DC traffic backups can be traced to scheduling problems. Noting that carriers are often willing to work with customers to improve turn times, he urges shippers experiencing tie-ups to take advantage of their truckers' expertise. Duncan adds that FedEx has found that setting up appointments at shipping and receiving locations can make a big difference in smoothing the flow of traffic.
Keeping their cool
In their zeal to put a stop to idling, state and municipal governments have inadvertently created a dilemma for long-haul truck drivers. What some (though not all) of the regulations fail to consider is that drivers need a way to heat or cool their sleeper cabs during their federally mandated rest periods. In the past, that has generally meant keeping their tractors running all night long. Now, bans in some areas are forcing drivers to choose between violating the law and risking heat exhaustion or hypothermia.
To address the heating and cooling issue, fleets are increasingly turning to technology solutions. They're installing auxiliary power units (APUs), which require only a fraction of the amount of fuel used during idling. Wal-Mart, for example, reports that it installed APUs in its entire fleet last year. According to the EPA, APUs typically consume between 0.05 and 0.2 gallons of fuel per hour, compared to about a gallon per hour for an idling truck.
However, the auxiliary units are costly, which may put them out of reach for many smaller carriers. "The expense is rather large," says O'Neal. "Certainly, the return on invested capital is there, but they are still too expensive."He adds that truck makers are currently developing low-power heating and cooling units that could be specified as original equipment on a vehicle. But he notes that the technology is still four to six years away.
At least one of the major players is searching for a system that doesn't require the use of diesel at all. Damman says that although Schneider has not decided on a technology for cooling tractor interiors without running the engine, it would like to find a battery-operated system. The company currently has 200 tractors in test programs for engine-off air conditioning equipment. "I think in the near future, we will find a cab-cooling solution," he says.
As for what lies ahead on the anti-idling front, carriers are generally optimistic about their prospects for reining in the practice. Duncan, for one, is confident that truckers and their equipment suppliers will succeed in getting better mileage from their equipment and reducing emissions, though he admits that both tasks seem daunting. "We have to do both and we can do both," he says. "If you look at it from a macro level, it looks impossible. You have to do it a piece at a time."
For both truckers and DC managers, the benefits of reducing idling go well beyond regulatory compliance or public relations, says Gentle. It's also good business, he says, citing the potential payoffs in better fuel mileage and more efficient DC operations. "We really need to do a better job of managing the challenge," he adds. "We will have less pollution and better asset utilization. It should really be about that, not the EPA."
"but officer, the sign said the county line was back there …"
The right thing to do shouldn't be the hard thing to do. But for truckers trying to stay in compliance with a vast array of state and local anti-idling ordinances, that's all too often the case.
In the absence of federal rules, the nation has ended up with a crazy quilt of state and municipal regulations, whose time limits, penalties, and exemptions vary widely from city to city and state to state. As things stand now, truckers driving across, say, northern Nevada had better figure out what county they're in before stopping to take a 20minute break. If they're in Humboldt County, they can safely leave the engine running. But if they're in neighboring Washoe County, they'd better turn it off—Washoe County bans idling for more than 15 minutes. (The American Transportation Research Institute maintains a list of state and municipal antiidling regulations as well as a downloadable cab card on its Web site. Visit www.atri-online.org and click on Idling Regulations Compendium.)
Fearing that the confusion would only worsen as more states and municipalities adopted anti-idling regulations, the Environmental Protection Agency (EPA) in 2004 announced that it would develop a model anti-idling law for states to use as a guideline. After soliciting suggestions during a series of public workshops held around the country, the agency unveiled a model law last May. The model, which has no regulatory weight, generally limits heavy-truck engines from idling for more than five minutes. Of particular interest to DC managers, it also prohibits shipping or receiving locations from causing trucks to idle for more than 30 minutes while waiting to load or unload. For a look at the model, visit www.epa.gov/smartway. Click on Idling Reduction, then on State Laws.
Most of the apparel sold in North America is manufactured in Asia, meaning the finished goods travel long distances to reach end markets, with all the associated greenhouse gas emissions. On top of that, apparel manufacturing itself requires a significant amount of energy, water, and raw materials like cotton. Overall, the production of apparel is responsible for about 2% of the world’s total greenhouse gas emissions, according to a report titled
Taking Stock of Progress Against the Roadmap to Net Zeroby the Apparel Impact Institute. Founded in 2017, the Apparel Impact Institute is an organization dedicated to identifying, funding, and then scaling solutions aimed at reducing the carbon emissions and other environmental impacts of the apparel and textile industries.
The author of this annual study is researcher and consultant Michael Sadowski. He wrote the first report in 2021 as well as the latest edition, which was released earlier this year. Sadowski, who is also executive director of the environmental nonprofit
The Circulate Initiative, recently joined DC Velocity Group Editorial Director David Maloney on an episode of the “Logistics Matters” podcast to discuss the key findings of the research, what companies are doing to reduce emissions, and the progress they’ve made since the first report was issued.
A: While companies in the apparel industry can set their own sustainability targets, we realized there was a need to give them a blueprint for actually reducing emissions. And so, we produced the first report back in 2021, where we laid out the emissions from the sector, based on the best estimates [we could make using] data from various sources. It gives companies and the sector a blueprint for what we collectively need to do to drive toward the ambitious reduction [target] of staying within a 1.5 degrees Celsius pathway. That was the first report, and then we committed to refresh the analysis on an annual basis. The second report was published last year, and the third report came out in May of this year.
Q: What were some of the key findings of your research?
A: We found that about half of the emissions in the sector come from Tier Two, which is essentially textile production. That includes the knitting, weaving, dyeing, and finishing of fabric, which together account for over half of the total emissions. That was a really important finding, and it allows us to focus our attention on the interventions that can drive those emissions down.
Raw material production accounts for another quarter of emissions. That includes cotton farming, extracting gas and oil from the ground to make synthetics, and things like that. So we now have a really keen understanding of the source of our industry’s emissions.
Q: Your report mentions that the apparel industry is responsible for about 2% of global emissions. Is that an accurate statistic?
A: That’s our best estimate of the total emissions [generated by] the apparel sector. Some other reports on the industry have apparel at up to 8% of global emissions. And there is a commonly misquoted number in the media that it’s 10%. From my perspective, I think the best estimate is somewhere under 2%.
We know that globally, humankind needs to reduce emissions by roughly half by 2030 and reach net zero by 2050 to hit international goals. [Reaching that target will require the involvement of] every facet of the global economy and every aspect of the apparel sector—transportation, material production, manufacturing, cotton farming. Through our work and that of others, I think the apparel sector understands what has to happen. We have highlighted examples of how companies are taking action to reduce emissions in the roadmap reports.
Q: What are some of those actions the industry can take to reduce emissions?
A: I think one of the positive developments since we wrote the first report is that we’re seeing companies really focus on the most impactful areas. We see companies diving deep on thermal energy, for example. With respect to Tier Two, we [focus] a lot of attention on things like ocean freight versus air. There’s a rule of thumb I’ve heard that indicates air freight is about 10 times the cost [of ocean] and also produces 10 times more greenhouse gas emissions.
There is money available to invest in sustainability efforts. It’s really exciting to see the funding that’s coming through for AI [artificial intelligence] and to see that individual companies, such as H&M and Lululemon, are investing in real solutions in their supply chains. I think a lot of concrete actions are being taken.
And yet we know that reducing emissions by half on an absolute basis by 2030 is a monumental undertaking. So I don’t want to be overly optimistic, because I think we have a lot of work to do. But I do think we’ve got some amazing progress happening.
Q: You mentioned several companies that are starting to address their emissions. Is that a result of their being more aware of the emissions they generate? Have you seen progress made since the first report came out in 2021?
A: Yes. When we published the first roadmap back in 2021, our statistics showed that only about 12 companies had met the criteria [for setting] science-based targets. In 2024, the number of apparel, textile, and footwear companies that have set targets or have commitments to set targets is close to 500. It’s an enormous increase. I think they see the urgency more than other sectors do.
We have companies that have been working at sustainability for quite a long time. I think the apparel sector has developed a keen understanding of the impacts of climate change. You can see the impacts of flooding, drought, heat, and other things happening in places like Bangladesh and Pakistan and India. If you’re a brand or a manufacturer and you have operations and supply chains in these places, I think you understand what the future will look like if we don’t significantly reduce emissions.
Q: There are different categories of emission levels, depending on the role within the supply chain. Scope 1 are “direct” emissions under the reporting company’s control. For apparel, this might be the production of raw materials or the manufacturing of the finished product. Scope 2 covers “indirect” emissions from purchased energy, such as electricity used in these processes. Scope 3 emissions are harder to track, as they include emissions from supply chain partners both upstream and downstream.
Now companies are finding there are legislative efforts around the world that could soon require them to track and report on all these emissions, including emissions produced by their partners’ supply chains. Does this mean that companies now need to be more aware of not only what greenhouse gas emissions they produce, but also what their partners produce?
A: That’s right. Just to put this into context, if you’re a brand like an Adidas or a Gap, you still have to consider the Scope 3 emissions. In particular, there are the so-called “purchased goods and services,” which refers to all of the embedded emissions in your products, from farming cotton to knitting yarn to making fabric. Those “purchased goods and services” generally account for well above 80% of the total emissions associated with a product. It’s by far the most significant portion of your emissions.
Leading companies have begun measuring and taking action on Scope 3 emissions because of regulatory developments in Europe and, to some extent now, in California. I do think this is just a further tailwind for the work that the industry is doing.
I also think it will definitely ratchet up the quality requirements of Scope 3 data, which is not yet where we’d all like it to be. Companies are working to improve that data, but I think the regulatory push will make the quality side increasingly important.
Q: Overall, do you think the work being done by the Apparel Impact Institute will help reduce greenhouse gas emissions within the industry?
A: When we started this back in 2020, we were at a place where companies were setting targets and knew their intended destination, but what they needed was a blueprint for how to get there. And so, the roadmap [provided] this blueprint and identified six key things that the sector needed to do—from using more sustainable materials to deploying renewable electricity in the supply chain.
Decarbonizing any sector, whether it’s transportation, chemicals, or automotive, requires investment. The Apparel Impact Institute is bringing collective investment, which is so critical. I’m really optimistic about what they’re doing. They have taken a data-driven, evidence-based approach, so they know where the emissions are and they know what the needed interventions are. And they’ve got the industry behind them in doing that.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”
That result showed that driver wages across the industry continue to increase post-pandemic, despite a challenging freight market for motor carriers. The data comes from ATA’s “Driver Compensation Study,” which asked 120 fleets, more than 150,000 employee drivers, and 14,000 independent contractors about their wage and benefit information.
Drilling into specific categories, linehaul less-than-truckload (LTL) drivers earned a median annual amount of $94,525 in 2023, while local LTL drivers earned a median of $80,680. The median annual compensation for drivers at private carriers has risen 12% since 2021, reaching $95,114 in 2023. And leased-on independent contractors for truckload carriers were paid an annual median amount of $186,016 in 2023.
The results also showed how the demographics of the industry are changing, as carriers offered smaller referral and fewer sign-on bonuses for new drivers in 2023 compared to 2021 but more frequently offered tenure bonuses to their current drivers and with a greater median value.
"While our last study, conducted in 2021, illustrated how drivers benefitted from the strongest freight environment in a generation, this latest report shows professional drivers' earnings are still rising—even in a weaker freight economy," ATA Chief Economist Bob Costello said in a release. "By offering greater tenure bonuses to their current driver force, many fleets appear to be shifting their workforce priorities from recruitment to retention."