Industry praises renewed government efforts to address truck driver shortage
Trade associations are hopeful as Congress reintroduces the DRIVE-Safe Act, aimed at expanding the pool of available talent for open truck driver positions.
Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Logistics and transportation industry leaders are applauding the reintroduction of a bill aimed at easing the nation's shortage of truck drivers.
The DRIVE-Safe Act was reintroduced February 26 by 14 Republicans and Democrats in the House and Senate, and trade association leaders say they are hopeful strong bipartisan support will help push the measure forward this year. The bill aims to lift age restrictions that prevent drivers from crossing state lines and to improve safety and training through a rigorous apprenticeship program, proponents said. The DRIVE acronym stands for Developing Responsible Individuals for a Vibrant Economy.
"We feel confident that we will build a lot of support for this," said Mark Allen, president and CEO of the International Foodservice Distributors Association (IFDA), one of more than 50 trade groups backing the bill.
The truck driver shortage touches all aspects of the supply chain, Allen and others argue, pointing to rising freight rates and increasing consumer prices as by-products of the problem.
"Given the broad coalition of interests backing this measure, there is growing understanding across the country that the impact of this issue reaches far beyond just trucking and commercial vehicles," American Trucking Associations President and CEO Chris Spear said following the reintroduction of the bill. "It is a strain on the entire supply chain, from the manufacturers and producers on down to retail and the end consumer, who will see higher prices at the store."
Lifting driver age restrictions is a key part of the proposal. Although 48 states allow individuals to obtain a commercial driver's license (CDL) and drive trucks at age 18, federal regulations prevent those drivers from crossing state lines until they turn 21. Proponents of the bill call the federal regulation outdated and say it limits the potential pool of candidates for open truck driver positions. As it stands now, Allen explained, professional drivers under age 21 can make the more than 300-mile trip from Maclean, Va., to deliver products to Bristol, Va., but they are prohibited from making similar deliveries from Maclean to Washington, D.C., just 12 miles away.
What's more, expanding the pool of candidates will open new career opportunities for young people seeking good-paying jobs, Allen added. According to IFDA data from 2017, the average salary for a foodservice distribution driver nationally is $63,000 a year.
Improving safety and training is another key part of the bill. The DRIVE-Safe Act would allow certified CDL holders already permitted to drive intrastate the opportunity to participate in an apprenticeship program designed to help them master interstate driving, while also promoting enhanced safety training for emerging members of the workforce, IFDA and other supporters said.
The apprenticeship program provides CDL drivers an additional, two-step training program with what supporters describe as rigorous performance benchmarks. Drivers must complete at least 400 hours of on-duty time and 240 hours of driving time in the cab with an experienced driver. Every driver will train on trucks equipped with new safety technology, including active braking collision mitigation systems, video event capture, and a speed governor set at 65 miles per hour.
"We think this will result in a better-prepared, much safer driver," Allen said. "If you have an opportunity to put an experienced driver in the cab of a truck with someone learning, that experienced driver gets a good sense of the younger person's temperament, maturity [and so forth]. That's another important benefit of this [program]."
Allen said the main challenge moving forward lies in what the DRIVE-Safe Act will be attached to, which could include an infrastrucutre bill or an appropriations bill.
"There is a road ahead, but we're optimistic," Allen said. "In this day and age, there's nothing done that is bipartisan [so] to see legislation that's got support from Republicans, Democrats, from urban areas, rural areas and from different parts of the country [indicates to us] that we will continue to build support."
The DRIVE-Safe Act is cosponsored by Senators Todd Young, R-Ind.; Jon Tester, D-Mont.; Tom Cotton, R-Ark.; Angus King, I-Maine; Jim Inhofe, R-Okla.; Joe Manchin, D-W.Va.; and Jerry Moran, R-Kan.; and Representatives Trey Hollingsworth, R-Ind.; Jim Cooper, D-Tenn.; Henry Cuellar, D-Texas; Al Green, D-Texas; Sheila Jackson Lee, D-Texas; Paul Mitchell, R-Mich.; and Bruce Westerman, R-Ark.
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."
Global trade will see a moderate rebound in 2025, likely growing by 3.6% in volume terms, helped by companies restocking and households renewing purchases of durable goods while reducing spending on services, according to a forecast from trade credit insurer Allianz Trade.
The end of the year for 2024 will also likely be supported by companies rushing to ship goods in anticipation of the higher tariffs likely to be imposed by the coming Trump administration, and other potential disruptions in the coming quarters, the report said.
However, that tailwind for global trade will likely shift to a headwind once the effects of a renewed but contained trade war are felt from the second half of 2025 and in full in 2026. As a result, Allianz Trade has throttled back its predictions, saying that global trade in volume will grow by 2.8% in 2025 (reduced by 0.2 percentage points vs. its previous forecast) and 2.3% in 2026 (reduced by 0.5 percentage points).
The same logic applies to Allianz Trade’s forecast for export prices in U.S. dollars, which the firm has now revised downward to predict growth reaching 2.3% in 2025 (reduced by 1.7 percentage points) and 4.1% in 2026 (reduced by 0.8 percentage points).
In the meantime, the rush to frontload imports into the U.S. is giving freight carriers an early Christmas present. According to Allianz Trade, data released last week showed Chinese exports rising by a robust 6.7% y/y in November. And imports of some consumer goods that have been threatened with a likely 25% tariff under the new Trump administration have outperformed even more, growing by nearly 20% y/y on average between July and September.
Declaring that it is furthering its mission to advance supply chain excellence across the globe, the Council of Supply Chain Management Professionals (CSCMP) today announced the launch of seven new International Roundtables.
The new groups have been established in Mexico City, Monterrey, Guadalajara, Toronto, Panama City, Lisbon, and Sao Paulo. They join CSCMP’s 40 existing roundtables across the U.S. and worldwide, with each one offering a way for members to grow their knowledge and practice professional networking within their state or region. Overall, CSCMP roundtables produce over 200 events per year—such as educational events, networking events, or facility tours—attracting over 6,000 attendees from 3,000 companies worldwide, the group says.
“The launch of these seven Roundtables is a testament to CSCMP’s commitment to advancing supply chain innovation and fostering professional growth globally,” Mark Baxa, President and CEO of CSCMP, said in a release. “By extending our reach into Latin America, Canada and enhancing our European Union presence, and beyond, we’re not just growing our community—we’re strengthening the global supply chain network. This is how we equip the next generation of leaders and continue shaping the future of our industry.”
The new roundtables in Mexico City and Monterrey will be inaugurated in early 2025, following the launch of the Guadalajara Roundtable in 2024, said Javier Zarazua, a leader in CSCMP’s Latin America initiatives.
“As part of our growth strategy, we have signed strategic agreements with The Logistics World, the largest logistics publishing company in Latin America; Tec Monterrey, one of the largest universities in Latin America; and Conalog, the association for Logistics Executives in Mexico,” Zarazua said. “Not only will supply chain and logistics professionals benefit from these strategic agreements, but CSCMP, with our wealth of content, research, and network, will contribute to enhancing the industry not only in Mexico but across Latin America.”
Likewse, the Lisbon Roundtable marks the first such group in Portugal and the 10th in Europe, noted Miguel Serracanta, a CSCMP global ambassador from that nation.