American Trucking Trends

Transcription

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2 American Trucking Trends 2012

3 2012 American Trucking Associations, Inc. All rights reserved. Printing in the United States of America. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. For information, contact ATA Business Solutions at 950 N. Glebe Road, Suite 210, Arlington, VA , or (toll free). ISBN (paperback)

4 TABLE OF CONTENTS President s Message...I Introduction...IV Standard Trucking and Transportation Statistics...V Chapter 1: Size of Industry...2 Chapter 2: Trucking Performance...10 Chapter 3: Fleet Demographics...20 Chapter 4: Retail Sales...24 Chapter 5: Taxes...32 Chapter 6: Safety...38 Chapter 7: International Trade...42 Chapter 8: Trucks & the Environment...52 Chapter 9: Diesel Fuel Price Trends...60 U.S. Commercial Truck Configurations...66 Glossary...68 Sources...71 Index...72

5 PRESIDENT S MESSAGE I It is my pleasure to introduce this edition of American Trucking Trends For over 60 years, Trends has provided a profile of the dynamics shaping the trucking industry. This is a product we are very proud of at ATA and believe it helps us advance the trucking industry s safety, image, efficiency, competitiveness, and profitability. Good data and information are going to be critical in the year ahead as the economy and trucking continue to grow. As the economic and truck freight volumes improve, we expect the industry to also have to contend with a driver shortage and other operational challenges. Trends provides indispensable information to trucking companies, industry suppliers, logistics providers, analysts, public policy decision makers, and many others. It is the singularly most important guide to trucking facts and figures and also serves as a vital source of information on major trucking and transportation issues. Trends reports on a variety of industry issues, including: trucking performance, employment trends, safety issues, diesel fuel price trends, domestic and international trade, taxes paid by the industry, and the environment. The report identifies significant trends in truck tonnage, freight revenue and revenue share for the motor carrier industry, as well as facts about North American trucking. Data on trailer manufacturers and engine sales are also provided, and a detailed breakdown of safety statistics, revenue per mile analyses, and highway-user taxes are featured. Trends offers an overview of the nation s trucking market, including the number of U.S. motor carriers and trucking employment by state. This trucking industry almanac is organized for quick and efficient fact-finding. Data is provided in easy-to-read graphical and tabular formats for ease of interpretation and analysis. The information in these pages clearly indicates that trucking is the driving force behind our great, and improving, economy. Safe, reliable and efficient motor carriers enable businesses throughout the entire supply chain to keep inventories lean, thereby saving the economy billions of dollars each year. I am certain you will find American Trucking Trends 2012 a valuable business resource and will benefit from the comprehensive insights it provides. Thank you for relying upon American Trucking Associations for your trucking information needs. Sincerely, Bill Graves ATA President and CEO

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7 INTRODUCTION

8 IV 2011 turned out to be a year that the economic recovery not only continued, but strengthened, especially late in the year. And, despite all of the worries about slipping back into a recession, both the trucking industry and the macro-economy are gaining some momentum. To be sure, risks remain, especially from Europe. However, at this point, 2012 appears to be starting off better than Nevertheless, whether the economy is in good times or a rough patch, trucking remains a critical component of the national economy. In fact, nearly every good consumed in the U.S. is put on a truck at some point. As a result, the trucking industry hauled 67% of all the tons of freight transported in the United States in 2011 equating to 9.2 billion tons. The trucking industry was a $604 billion industry in that same year, representing 80.9% of the nation s freight bill. Put another way, on average, trucking collected 80.9 cents of every dollar spent on freight transportation. Both the tonnage and revenue figures included for-hire (truckload and less-than-truckload) and private carriage. Trucking is the vital transportation link not only for domestic goods, but also international products. Imported goods from overseas have to be moved multiple times from port to final destination. But, perhaps even more important, is the role that trucks play in the enormous amount of trade that flows over our northern and southern borders. Canada and Mexico now rank one and three, respectively, in terms of the top U.S. trading partners, since China surpassed Mexico as our second largest trading partner in In 2010, trucks hauled nearly 57% of the goods (in terms of value) between the U.S. and Canada, and over 66% between the U.S. and Mexico. As the North American economies become more interrelated, as well as global, trucking s importance in international trade should only grow. Over 26 million trucks (all classes) hauled just under 9 billion tons of freight. Of the more than 26 million trucks, 2.4 million were Class 8 vehicles. Also, there were 5.7 million commercial trailers registered in All trucks (excluding vehicles used by the government and on farms, but including all weight classes) used for business purposes logged a total of billion miles in 2010, which accounted for 13.4% of all motor vehicle miles and 29.8% of all truck miles. According to an analysis by Martin Labbe Associates for ATA, Class 8 trucks drove a total of 99.2 billion miles, which means that, on average, a Class 8 truck drove almost 43,000 miles in 2010, although most long-haul Class 8 tractors travel in excess of 100,000 miles each year. In 2011, trucks (all classes) consumed 52.3 billion gallons of fuel, including both diesel and gasoline. Most heavy-duty trucks run on diesel fuel, which is why over 70% of all fuel burned by trucks is diesel fuel, equating to 37.2 billion gallons annually. Based on consumption and price, ATA reported that motor carriers spent $142.7 billion on diesel fuel in In 2010, ATA estimated that the industry s diesel fuel bill bounced back to $109 billion, after 2009 s $86.8 billion. Before the motor carrier industry was initially deregulated by the Motor Carrier Act of 1980, there were fewer than 20,000 interstate motor carriers in the U.S. By December 2011, there were more than 408,782 for-hire motor carriers on file with the U.S. Department of Transportation (DOT), with an additional 662,544 private fleets. There were also 168,680 other interstate motor carriers according to the U.S. DOT. While this is a significant amount of trucking companies, the vast majority of them are small businesses, with 97.2% operating fewer than 20 trucks and 90.2% operating six trucks or less. Consequently, the trucking industry is a highly fragmented industry, resulting in intense competition (both price and non-price competition) and low profit margins. The trucking industry is a major employer in the U.S. Across all industries, 6.8 million people were employed in trucking-related jobs in Just over 3 million of these workers were truck drivers. 1 Both the tonnage and revenue statistics come from U.S. Freight Transportation Forecast to 2023, produced by IHS Global Insight, Inc. for ATA. The U.S. Freight Transportation Forecast to 2023 provides tonnage and revenue data for all other modes of freight transportation as well. Please visit for more information. 2 Class 8 trucks have a gross vehicle weight of over 33,000 pounds and are typically tractor-trailer combinations, although the classification does include straight trucks as well. 3 Other interstate motor carriers are those that did not specify their segment or checked multiple segments.

9 AMERICAN TRUCKING TRENDS 2012 V Standard Trucking and Transportation Statistics Revenue: $603.9 billion in gross freight revenues (primary shipments only) from trucking, representing 80.9% of the nation s freight bill in Tonnage: 9.2 billion tons of freight (primary shipments only) transported by trucks in 2011, representing 67.0% of total domestic tonnage shipped. Taxes: $33.1 billion paid by commercial trucks in federal and state highway-user taxes in Commercial trucks make up 10.9% of all registered vehicles, and paid $14.3 billion in federal highway-user taxes and $18.7 billion in state highway-user taxes, in in federal fuel tax paid for each gallon of diesel fuel as of August, in federal fuel tax paid for each gallon of gasoline as of August, paid on average in state fuel tax for each gallon of diesel fuel as of July, paid on average in state fuel tax for each gallon of gasoline as of July, Number of Trucks: 26.4 million trucks registered and used for business purposes (excluding government and farm) in 2009, representing 24.4% of all trucks registered. 2.4 million Class 8 trucks used for business purposes (excluding government and farm) in (2.3 Million in 2010) 5.7 million commercial trailers registered in Mileage: billion miles logged by all trucks used for business purposes (excluding government and farm) in % of all miles traveled by trucks. 13.4% of all motor vehicle miles traveled billion miles logged by all Class 6-8 trucks used for business purposes (excluding government and farm) in billion miles logged by Class 8 trucks used for business purposes (excluding government and farm) in Fuel Consumption: 52.3 billion gallons of fuel consumed by those trucks used for business purposes in billion gallons of diesel fuel billion gallons of gasoline.

10 STANDARD TRUCKING AND TRANSPORTATION STATISTICS VI Number of Companies: According to the U.S. Department of Transportation, as of December 2011, the number of for-hire carriers on file with the Federal Motor Carrier Safety Administration totaled 408,782 private carriers totaled 662,544 and other* interstate motor carriers totaled 168,680. * Other interstate motor carriers are those that did not specify their segment or checked multiple segments. All other categories were excluded. 90.2% operate 6 or fewer trucks. 97.2% operate fewer than 20 trucks. International Trucking: Trucks transported 56.6% of the value of trade between the U.S. and Canada in Trucks transported 66.2% of the value of trade between the U.S. and Mexico in In 2010, the value of truck-transported trade 25.5% to $260.1 billion with Mexico; increased truck-transported trade with Canada grew 19.9% to $296.8 billion in Employment: 6.8 million people employed throughout the economy in jobs that relate to trucking activity in 2010, excluding self-employed. 3 million truck drivers employed in Private Sector Trucking-Related Jobs by Industry; 2010 Mining 0.8% Agriculture 1.2% Finance, Insurance, Real Estate 1.2% Transportation & Public Utilities 41.4% Construction 2.6% Services 12.1% Trade 27.7% Manufacturing 12.8% Sources: Bureau of Labor Statistics, U.S. Department of Labor; American Trucking Associations

11 Size of the Industry CHAPTER 1

12 SIZE OF THE INDUSTRY 2 Number of Carriers: According to the U.S. Department of Transportation (DOT), there were more than 1.2 million U.S. interstate motor carriers in the United States in December This figure incorporates all types of fleets, including for-hire (both truckload and less-than-truckload), private carriers, and owneroperators. More specifically, U.S companies with authority to haul interstate commercial freight are included in this figure. The number of for-hire carriers on file with the Federal Motor Carrier Safety Administration totaled 408,782 and the number of private carriers totaled 662,544. There were also 168,680 interstate motor carriers that did not specify their segment or checked multiple segments. Figure 1-2 indicates that out of the more than 1.2 million carriers, 53% were private carriers, whose primary business is not hauling freight. A private carrier owns a fleet of trucks to support its main business, like manufacturing or retail. For-hire carriers represented 33% of the total. There are a handful of billion-dollar carriers operating in the U.S.; however, the industry is primarily comprised of small carriers. Figure 1-3 shows that 90% of carriers operate six or fewer trucks. Furthermore, 97% of carriers operate fleets of 20 or fewer trucks. Map 1-1 Distribution of U.S. Motor Carriers 63,065 1,240,006 Total 172,949 75, ,353 78,130 86, , , ,979 As of December 2011 Includes private, for-hire, and motor carriers who do not specify their segment of the industry or their fleet size. All other categories were excluded. Excludes carriers in Puerto Rico and the U.S. Virgin Islands. Source: Federal Motor Carrier Safety Administration, U.S. Department of Transportation

13 AMERICAN TRUCKING TRENDS Map 1-2 Distribution of U.S. For-Hire Motor Carriers 22, ,782 Total 38,976 24,846 71,807 43,646 27,325 30,030 59,299 90,851 As of December 2011 Source: Federal Motor Carrier Safety Administration, U.S. Department of Transportation Figure 1-1 Distribution of U.S. Motor Carriers by Region (December 2011) Figure 1-2 Distribution of U.S. Motor Carriers by Sector (December 2011) IL, IN, MI, MN, OH, WI 21.2% AK, ID, OR, WA 5.1% CO, MT, ND, SD, UT, WY 6.1% IA, KS, MO, NE 6.9% AZ, CA, HI, NV 6.3% For-Hire Carriers 33.2% DE, DC, MD, PA, VA, WV 8.9% AL, FL, GA, KY, MS, NC, SC,TN 21.0% AR, LA, NM, OK, TX 10.5% Private Carriers 53.1% Other 13.6% CT, ME, MA, NH, NJ, NY, RI, VT 13.9% Note: Includes private, for-hire, and motor carriers who did not specify their segment or their fleet size. All other categories were excluded. Source: Federal Motor Carrier Safety Administration, U.S. Department of Transportation Note: Includes private, for-hire, and motor carriers who did not specify their segment or their fleet size. All other categories were excluded. Source: Federal Motor Carrier Safety Administration, U.S. Department of Transportation

14 CHAPTER 1 SIZE OF THE INDUSTRY 4 Figure 1-3 Distribution of U.S. Motor Carriers Operating a Given Number of Power Units (December 2011) More than % 7 to % 6 or Fewer 90.2% Note: Includes private, for-hire, and motor carriers who did not specify their segment, but gave their fleet size. All other categories were excluded. Source: Federal Motor Carrier Safety Administration, U.S. Department of Transportation

15 AMERICAN TRUCKING TRENDS Number of Employees: In 2010, there were just under 6.8 million people working in trucking-related jobs across all sectors of the economy, which was down 1.6% from the 2009 level. The total decrease in trucking-related employment between 2009 and 2010 was 106,643. Table 1-1 shows the breakdown of employees in trucking-related jobs by industry excluding the self-employed. Over 41% of people working in trucking-related jobs are employed in the transportation and public utilities industries, followed by the wholesale and retail industries (28%). In 2010, about one out of every 16 people working in the private sector in the U.S. was employed in a trucking-related job. Including the public sector, it is about one out of every 19 workers. Table 1-2 shows for-hire trucking employment in each state. Texas and California reported the highest numbers of jobs in the trucking industry, 99,343 and 92,429, respectively, in Together, these two states accounted for over 16% of all U.S. trucking employment. However, this was a few percentage points below the two states share of all private sector employment (19.2%). While California and Texas may have the most people working in the trucking industry, Arkansas and Nebraska, in terms of percentage of total state employment, were on top. In both Arkansas and Nebraska, 3.3% of all people employed in the private sector worked for a trucking company. Table 1-1 Non-Government Trucking-Related Employment by Sector - Annual Averages (Thousands) Wholesale Transportation Finance Total & Retail Comm. & Insurance & Trucking Year Agriculture Mining Construction Manufacturing Trade Public Utilities Real Estate Services Employment * , , , , * , , , , * , , , , * , , , , * , , , , * , , , , * , , , , * , , , , * , , , * , , ,771.7 * Note: Data for 2001 through 2010 have been revised and are not directly comparable with those from previous editions of Trends. The revisions were due to changes in benchmark data. 1 Excludes self-employed workers Sources: Economics & Statistics Group, American Trucking Associations; Bureau of Labor Statistics, U.S. Department of Labor 1 The difference between Tables 1-1 and 1-2 is that Table 1-2 includes only jobs classified in the trucking industry and not all of the other trucking jobs in other industries.

16 SIZE OF THE INDUSTRY 6 Table 1-2 Total Private Industry vs. For-Hire Trucking Employees by State Annual Averages (Thousands) State Total Trucking % Trucking of Total State Total Trucking % Trucking of Total Alabama 1, % Montana % Alaska % Nebraska % Arizona 1, % Nevada % Arkansas % New Hampshire % California 12, % New Jersey 3, % Colorado 1, % New Mexico % Connecticut 1, % New York 6, % Delaware % North Carolina 3, % Dist. Of Col % North Dakota % Florida 6, % Ohio 4, % Georgia 3, % Oklahoma 1, % Hawaii % Oregon 1, % Idaho % Pennsylvania 4, % Illinois 4, % Rhode Island % Indiana 2, % South Carolina 1, % Iowa 1, % South Dakota % Kansas 1, % Tennessee 2, % Kentucky 1, % Texas 8, % Louisiana 1, % Utah % Maine % Vermont % Maryland 1, % Virginia 2, % Massachusetts 2, % Washington 2, % Michigan 3, % West Virginia % Minnesota 2, % Wisconsin 2, % Mississippi % Wyoming % Missouri 2, % Totals 106, , % Sources: Economics & Statistics Group, American Trucking Associations, Bureau of Labor Statistics, U.S. Department of Labor; Number of Truck Drivers: According to the U.S. Department of Labor, the number of active truck drivers in the U.S. decreased to million in This was a decline of 123,000, or 3.9%, from 2009 (see Table 1-3). The number of truck drivers has declined annually since As a result of this continued decrease, from 2001 to 2010, for-hire and private fleets have removed 128,000 drivers. The government reported that the number of female drivers decreased by 25,000 in 2010 to 139,000. The percentage of minority drivers fell from 33.9% in 2009 to 32.6% in 2010, as the number of African-American and Hispanic drivers entering the driver pool decreased 2.5% and 10.1%, respectively. Meanwhile, the number of Asian drivers decreased 9.9%.

17 AMERICAN TRUCKING TRENDS Table 1-3 Number of Truck Drivers (Thousands) Year Total Drivers Women Minority , % 26.9% 2001* 3, % 26.6% 2002* 3, % 27.1% 2003* 3, % 29.4% 2004* 3, % 30.6% 2005* 3, % 32.0% 2006* 3, % 31.1% 2007* 3, % 32.7% 2008* 3, % 33.6% 2009* 3, % 33.9% 2010* 3, % 32.6% * Note: Data for 2001 through 2010 are not directly comparable with those from 2000 and earlier because the U.S. Department of Labor changed industry definitions from the U.S. Standard Industrial Classification (SIC) to the North American Industrial Classification System (NAICS). Source: Employment and Earnings - Household Data, Bureau of Labor Statistics, U.S. Department of Labor Figure 1-4A Characteristics of Truck Drivers by Gender Figure 1-4B Characteristics of Truck Drivers by Race Women 4.6% Minority 32.6% Men 95.4% Non-Minority 66.4% Source: Employment and Earnings - Household Data, Bureau of Labor Statistics, U.S. Department of Labor. Source: Employment and Earnings - Household Data, Bureau of Labor Statistics, U.S. Department of Labor.

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19 Trucking Performance CHAPTER 2

20 TRUCKING PERFORMANCE 10 Commodity Flow Data: Every five years, the Bureau of Transportation Statistics (BTS) and the U.S. Census Bureau collaborate to conduct the Commodity Flow Survey (CFS). The CFS is much more detailed than Table 2-1 and Figure 2-1 provided in this report. For example, it also reports modal shares by commodity type and provides state breakdowns by mode and by type of freight. The survey is typically conducted every five years, however the next the next edition is expected in For a copy of the 2007 CFS, visit the BTS website. 1 In 2007, trucks hauled over $8.3 trillion worth of merchandise. It is important to note that this is not revenue collected by motor carriers, but the value of the products hauled by carriers in that year. It is also important to highlight that the CFS understates the importance of trucking in the freight transportation industry. Specifically, the CFS covers the mining, manufacturing, wholesale trade, and select retail trade industries. However, it does not cover most retail trade, services, transportation, and construction industries, which primarily use trucking for transportation needs. Therefore, the CFS, while being an essential tool for those analyzing and measuring the transportation industry, underestimates the importance of trucking to the U.S. economy. Figure 2-1 and Table 2-1 reveal that trucks hauled 71.3 percent of the value of all shipments in The next closest value share was the Parcel, U.S. Postal Service, or Courier segment, with 13.4 percent of the total, followed by Rail with 3.7 percent. Pipeline was fourth with 3.4 percent. Figure 2-1 Commodity Flow by Mode, 2007 Truck 71.3% Other Intermodal Combinations 2.9% Water 1.0% Pipeline 3.4% Air (including trucking) 2.2% Other & Unknown Modes Modes 2.4% Parcel, U.S. Postal Service, or Courier 13.4% Rail 3.7% Source: 2007 Commodity Flow Survey, U.S. Bureau of Transportation Statistics, U.S. Department of Transportation, in partnership with, U.S. Census Bureau, U.S. Department of Commerce 1

21 AMERICAN TRUCKING TRENDS Table 2-1 Shipment Value by Mode Detailed Mode Value (million $) Percent Total Trucking 8,335, % Private Truck 3,380, % For-Hire Truck 4,955, % Parcel, U.S. Postal Service, or Courier 1,561, % Air (including truck & air) 252, % Rail 436, % Water 114, % Inland Water (Shallow draft & Great Lakes) 91, % Deep draft 23, % Pipeline 399, % Other Intermodal Combinations 304, % Truck/Water 58, % Truck/Rail & Rail/Water 201, % Other Multiple Modes 45, % Other and Unknown Modes 279, % TOTAL ALL MODES 11,684,872 Source: 2007 Commodity Flow Survey, U.S. Bureau of Transportation Statistics, U.S. Department of Transportation, in partnership with, U.S. Census Bureau, U.S. Department of Commerce 2 Trucking Failures: According to Avondale Partners, LLC, in 2011, 800 motor carriers with at least five trucks went out of business, which was 55.4% lower than 2010 s total started off with just under 300 failures in the first quarter, with the second quarter improving to just 240 failures. Q saw only 85 failures, an astounding 74.2% below the same time period in Q witnessed 180 failures, giving 2011 the lowest number of failures since Avondale began reporting the measure in It is important to note that the vast majority of the motor carriers operate five or less trucks. Current data does not indicate exactly how many carriers operate less than five trucks; however, we know that 90.2% of fleets have six or fewer trucks, as reported in Chapter 1 of Trends. We also know that smaller carriers tend to be more susceptible to failure, so these numbers should be considered a minimum, as it is likely that many more carriers failed. However, the increasing or decreasing trends are still likely to hold true. In other words, even if there are more failures than reported here, if we see an increase or decrease in a given year compared with the previous year, it is unlikely that the directional change would be different if we were able to account for all of the failures. 2 Also see Chapter 9

22 TRUCKING PERFORMANCE 12 Table 2-2 Trucking Business Failures Year or Quarter Total Trucking Failures Annual Percent Change , , % , % , % , % , % , % , % , % , % , % % Quarter: 2010:I :II :III :IV :I :II :III :IV 180 Note: only includes fleets with 5 or more trucks Source: Avondale Partners, LLC Figure 2-2 Trucking Business Failures (Q Q4 2011) Q1 01 Q3 01 Q1 02 Q3 02 Q1 03 Q3 03 Q1 04 Q3 04 Q1 05 Q3 05 Q1 06 Q3 06 Q1:07 Q3:07 Q1:08 Q3:08 Q1:09 Q3:09 Q1:10 Q3:10 Q1:11 Q3:11 Note: only includes fleets with 5 or more trucks Source: Avondale Partners, LLC

23 AMERICAN TRUCKING TRENDS Truck Tonnage: ATA s For-Hire Truck Tonnage Index averaged in 2011, up 5.8% from 2010 and the highest level in history. The previous highest annual average on record was in In 2010, tonnage jumped 5.8% after plummeting 8.6% in Figure 2-3 ATA's For-Hire Truck Tonnage Index (Seasonally Adjusted, 2000=100) Figure 2-4 Annual Percent Change in ATA's Seasonally Adjusted For-Hire Truck Tonnage Index % % 4.1% 3.0% 5.8% 2.4% -1.5% -1.8% 1.2% -8.6% Source: Monthly Truck Tonnage Report, Economics & Statistics Group, American Trucking Associations % 5.8% 2011 Source: Monthly Truck Tonnage Report, Economics & Statistics Group, American Trucking Associations 3 These data are derived from monthly data released by ATA. Each month, ATA surveys a large number of carriers on various activity measures, including, among other things, tonnage and revenue. The data are then transformed into monthly indexes. The data in Figures 2-3 and 2-4 are coming from ATA s Monthly Truck Tonnage Report. Figures 2-5 and 2-6 (on page 14) are derived from ATA s monthly Trucking Activity Report. More information is available at

24 TRUCKING PERFORMANCE 14 Truck Revenue: Industry revenue rose 11.4% in The substantial jump is the largest increase since After plummeting 27.2% in 2009 to 97.6, the index has recovered to in the last two years, but it is still below 2008 s record Figure 2-5 ATA's For-Hire Trucking Revenue Index (Seasonally Adjusted, 2000=100) Figure 2-6 Annual Percent Change in ATA's Seasonally Adjusted For-Hire Trucking Revenue Index % % -0.1% 3.7% 8.4% 12.3% 4.4% 0.5% 0.9% 6.4% 11.4% % Source: Trucking Activity Report, Economics & Statistics Group, American Trucking Associations Source: Trucking Activity Report, Economics & Statistics Group, American Trucking Associations

25 AMERICAN TRUCKING TRENDS Revenue per Mile and Revenue per Ton: Similar to the tonnage and revenue data, the average revenue per mile and average revenue per ton data is derived from ATA surveys of for-hire trucking companies. The for-hire truckload revenue per mile index rose 5.7% in 2011 from the previous year, following a 4.4% gain in After plunging 10.9% in 2009, the revenue per mile index has recovered to just below 2008 s record For the less-than-truckload industry, the average revenue per ton index increased 4.3% in 2011, after falling a combined 16.5% over the previous two years. Figure 2-7 ATA's For-Hire Truckload Revenue per Mile Index (Seasonally Adjusted, 2000=100) Figure 2-8 Annual Percent Change in ATA's Seasonally Adjusted For-Hire Truckload Revenue per Mile Index % % 0.8% 2.8% 8.9% 11.4% 6.2% 5.5% 3.9% 4.4% 5.7% Source: Trucking Activity Report, Economics & Statistics Group, American Trucking Associations % 2009 Source: Trucking Activity Report, Economics & Statistics Group, American Trucking Associations Figure 2-9 ATA's For-Hire Less-than-Truckload Revenue per Ton Index (Seasonally Adjusted, 2000=100) Figure 2-10 Annual Percent Change in ATA's Seasonally Adjusted For-Hire Less-than- Truckload Revenue per Ton Index % % 1.1% 4.9% 4.0% 6.4% 4.5% 1.8% 4.3% 1.8% -0.7% -15.9% Source: Trucking Activity Report, Economics & Statistics Group, American Trucking Associations Source: Trucking Activity Report, Economics & Statistics Group, American Trucking Associations

26 TRUCKING PERFORMANCE 16 Trucking Producer Price Indexes (PPI) : While revenue per mile can be influenced by various factors and is therefore not a true rate, the U.S. Department of Labor (DOL) does track producer price data for the trucking industry and certain sub-groups. Producer prices essentially show the average movement for all rates for all lanes. However, it is important to note that PPIs include fuel surcharges in their calculations. Table 2-3 reports the average annual PPI for various segments of the trucking industry, as well as quarterly figures for For all of 2011, the total truck transportation PPI averaged (December 2003=100), 5.8% higher than in The Trucking General Freight Index averaged 126.7, up 6.2% from The TL General Freight Index averaged in 2011, and ended the year at in Q The LTL General Freight Index averaged in 2010 but surged 8.6% to average in 2011, an all-time high. The General Freight Trucking, Long Distance PPI increased 7.1% from 2010 to This index rose to an all-time high of during the fourth quarter of Producer Price Indexes measure average changes in prices received by domestic producers or providers of commodities or services.

27 AMERICAN TRUCKING TRENDS Table 2-3 Various Trucking Producer Price Indexes Truck General General General Freight Transportation Freight Freight Trucking, Trucking Trucking, Long Local Distance Year or December Year-Over-Year December Year-Over-Year December Year-Over-Year December Year-Over-Year Quarter 2003 = 100 Growth 2003 = 100 Growth 2003 = 100 Growth 2003= 100 Growth n.a n.a n.a n.a % % % % % % % % % % % % % % % % % % % % % % % % % % % % 2011:I :II :III :IV (p) Less-than Truckload: General Public Truckload: General Warehousing & General Freight Freight Storage Year or December Year-Over-Year December Year-Over-Year December Year-Over-Year Quarter 2003 = 100 Growth 2003 = 100 Growth 2003 = 100 Growth n.a n.a n.a % % % % % % % % % % % % % % % % % % % % % 2011:I :II :III :IV (p) (p) preliminary Note: In 2003, the U.S. Department of Labor changed industry definitions from the U.S. Standard Industrial Classification (SIC) to the North American Industrial Classification System (NAICS), thus the PPI indexes in this table were re-indexed to December 2003 = 100. Source: Bureau of Labor Statistics, U.S. Department of Labor

28 TRUCKING PERFORMANCE 18 Figure 2-11 Trucking Revenue Per Mile vs. General Inflation (1976=100) Inflation Rev/Mile 350 Index Level Sources: Bureau of Labor Statistics, U.S. Department of Labor; Economics & Statistics Group, American Trucking Associations

29 Fleet Demographics CHAPTER 3

30 FLEET DEMOGRAPHICS 20 Registrations: The total number of U.S. truck registrations, both private and commercial vehicles, increased 0.3% from 2008 to Conversely, the number of commercial truck registrations fell, dropping 1.3% during the same one-year period. In 2009, there were 1.82 million truck-tractors (a subset of the commercial trucks) registered, down 5.8% from a year earlier 1. Meanwhile, the number of registered trailers and semitrailers grew 1.7% to 5.67 million. In 2009, Florida had more trucktractors registered than in any other state, with 240,567. Texas was second, with 182,426. Although California had fewer truck-tractors registered than Florida and Texas, it had the highest number of commercial trucks at 2.9 million. California, Florida, and Texas combined are home to nearly one-third of all commercial trucks on the road. Figure 3-1 Total Truck and Commercial Truck Registrations (Millions) All Trucks Commercial Trucks Source: Highway Statistics, 2009, Federal Highway Administration, U.S. Department of Transportation Figure 3-2 Truck-Tractor and Trailer Registrations (Millions) Truck-Tractors Trailers Source: Highway Statistics, 2009, Federal Highway Administration, U.S. Department of Transportation 1 The number of Class 8 trucks reported in the Introduction section of Trends is higher than the number of registered truck-tractors because a portion of the Class 8 population is straight trucks.

31 AMERICAN TRUCKING TRENDS Table 3-1 Registrations by State (Thousands) Commercial Commercial Truck- Truck- Trailers & Trailers & State All Trucks All Trucks Trucks 1 Trucks 1 Tractors Tractors Semitrailers Semitrailers Alabama 2,501 2, Alaska Arizona 2,133 2, Arkansas 1,076 1, California 13,505 14,401 3,445 2, Colorado Connecticut 1,064 1, Delaware Dist. Of Col Florida 8,231 7,665 2,625 2, Georgia 4,286 4,349 1, Hawaii Idaho Illinois 3,995 4, Indiana 2,679 2, Iowa 1,625 1, Kansas 1,561 1, Kentucky 1,617 1, Louisiana 1,999 2, Maine Maryland 1,863 1, Massachusetts 2,081 2, Michigan 3,531 3, Minnesota 2,222 2, Mississippi Missouri 2,235 2, Montana Nebraska 933 1, Nevada New Hampshire New Jersey 2,397 2, New Mexico New York 2,440 2, North Carolina 2,642 2, North Dakota Ohio 4,472 4,654 1, Oklahoma 1,618 1, Oregon 1,627 1, Pennsylvania 4,240 4,006 1,060 1, Rhode Island South Carolina 1,588 1, South Dakota Tennessee 2,245 2, Texas 9,284 9,285 2,075 2, Utah 1,245 1, Vermont Virginia 2,628 2, Washington 2,668 2, West Virginia Wisconsin 2,326 2, Wyoming Total 110, ,561 26,765 26,420 1,930 1,819 5,571 5,665 Note: Truck-Tractors (private and for-hire truck-tractors) may include some large single-unit trucks used regularly in combination with a full trailer. Commercial excludes vehicles used for personal transportation as defined by the Vehicle Inventory and Use Survey, Columns may not sum to totals due to rounding. 1 An ATA estimate based on Highway Statistics, 2009 and Vehicle Inventory and Use Survey, Sources: Highway Statistics, 2009, Federal Highway Administration, U.S. Department of Transportation

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33 Retail Sales CHAPTER 4

34 RETAIL SALES 24 U.S. Truck Sales: Total U.S. truck sales increased 13.3% from 2010 to 2011, with the number of Class 8 units (i.e., those weighing at least 33,001 pounds) sold increasing by a substantial 59.8%. Sales in almost all other categories jumped by doubledigit percentages. The smallest increase was 7.3%, experienced by Class 7 units. However, the sale of Class 4 units fell 13.6%. In 2011, manufacturers sold 171,358 Class 8 units in the United States, recovering 59.8% from The downward trend in sales appears to have turned around in 2010 and 2011, after plummeting in 2009 to only 94,800 units. However, Class 8 sales are still down 39.7% from the record-level 284,000 units in In 2010, Freightliner maintained their leading market share and remained the top-seller of Class 8 trucks. Freightliner and International previously (2008) shared a relatively equal market share, however Freightliner s portion is 9.5% greater than that of International. In terms of Class 8 market share, Freightliner (30.5%) was followed by International at 21%, Peterbilt (14.3%), Kenworth (13.2%), Volvo Truck (12.2%), and Mack (7.5%). Table 4-1 U.S. Retail Truck Sales (Thousands) Year Class I Class II Class III Class IV Class V Class VI Class VII Class VIII Total , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,951.2 Source: WardsAuto.com copyright 2011 Ward's Automotive Group, Southfield, MI USA (A division of Penton Media, Inc.)

35 AMERICAN TRUCKING TRENDS Table 4-2 U.S. Retail Truck Sales By Manufacturer and Size, 2011 Class I Class II Class III Class IV Class V Class VI Class VII Class VIII Total BMW 91,215 91,215 Chrysler 718, ,744 96,189 7,527 1,014,755 Ford 665, ,721 61,341 1,784 27,310 5,176 3,705 1,426,305 Freightliner 1, ,757 14,928 52,276 82,504 GM 680, ,126 34, ,551,425 Hino ,952 1,111 5,078 Honda 541, ,036 Hyundai 130, ,769 International ,831 16,201 15,537 35,928 72,936 Isuzu 1,840 5,238 2, ,074 Kenworth ,666 22,577 26,111 Kia 202, ,221 Land Rover(Tata) 38,099 38,099 Mack 12,928 12,928 Mazda 91,913 91,913 Mercedes 88,860 16, ,437 Mitsubishi 35,889 35,889 Mitsubishi Fuso 221 1, ,321 Nissan 369,838 28, ,276 Other Peterbilt ,945 24,583 27,728 Porsche 12,978 12,978 Saab Sterling Subaru 183, ,392 Suzuki 7,155 7,155 Toyota 747, ,347 UD Trucks Volkswagen 79,904 79,904 Volvo 29,257 29,257 Volvo Truck 20,955 20,955 Western Star 2,090 2,090 Total 4,714,119 1,735, ,289 10,459 42,483 40,677 41, ,358 6,951,210 Source: WardsAuto.com copyright 2011 Ward's Automotive Group, Southfield, MI USA (A division of Penton Media, Inc.)

36 RETAIL SALES 26 Figure 4-1 U.S. Truck Sales By Class, 2011 Figure 4-2 Class VIII Truck Market Share, 2011 Class IV 0.2% Class IV Class VII 0.6% Class V 0.6% 0.6% Class VIII 2.5% Class III 2.8% Freightliner 30.5% Western Star 1.2% Mack 7.5% Volvo Truck 12.2% Class I 67.8% Class II 25.0% International 21.0% Peterbilt 14.3% Kenworth 13.2% Source: WardsAuto.com copyright 2011 Ward's Automotive Group, Southfield, MI USA (A division of Penton Media, Inc.) Source: WardsAuto.com copyright 2011 Ward's Automotive Group, Southfield, MI USA (A division of Penton Media, Inc.) Engine Sales: Sales of diesel engines used in Class 8 trucks totaled 254,727 in 2011, recovering more than 65% over 2010 s 153,969. In 2011, Cummins sold the most Class 8 engines and its market share grew by 2.2%, to 41.6%. Detroit Diesel was second with 22% of total sales and Navistar was third (17.6%). Since announcing their departure from the Class 8 engine market in 2008, Caterpillar has gone from the leading manufacturer to making only 100 engines this year as they exit the market. Figure 4-3 Cummins 41.6% Class VIII Diesel Engine Market Share, 2011 Mercedes-Benz 2.3% Volvo 8.1% Mack 8.5% Navistar 17.6% Detroit Diesel 22.0% Source: WardsAuto.com copyright 2011 Ward's Automotive Group, Southfield, MI USA (A division of Penton Media, Inc.)

37 AMERICAN TRUCKING TRENDS Table Factory Sales of Diesel Engines Used in Class VIII Trucks, U.S., Canadian, and Mexican Plants Detroit Mercedes Truck Caterpillar Cummins Diesel Mack Benz Navistar PACCAR Volvo Manufacturers Engines % Share Engines % Share Engines % Share Engines Engines Engines Engines Engines TOTAL Freightliner 1 1.0% 21, % 48, % - 5, ,238 International % 11, % , ,146 Kenworth % 37, % ,883-46,097 Mack , ,299 Peterbilt , % ,682-29,306 Volvo - - 5, % ,369 25,209 Western Star % % 4, % ,399 Other Total ,504-52,524-20,299 5,385 41,981 15,565 19, ,727 Note: Refers to engine application; excludes buses Source: WardsAuto.com copyright 2011 Ward's Automotive Group, Southfield, MI USA (A division of Penton Media, Inc.)

38 RETAIL SALES 28 Equipment Producer Price Indexes (PPI) 1 : The PPI for Class 8 trucks continued to rise in 2011 as the prices received by domestic producers of new trucks grew 2.2% from a year earlier (see Table 4-4). Class 8 truck prices surged a total of 35.5% from 2001 to Manufacturers were able to increase trailer prices 4.7% in After inching up just 0.4% in 2009, prices have jumped a combined 6.9% over the last two years. Furthermore, trailer prices have climbed 36.9% between 2001 and Figure 4-4 Percent Change in Class VIII Trucks Producer Price Index, % 6% 5% 4% 3% 2% 1% 3.0% 1.3% 1.0% 4.3% 4.1% 4.8% 2.8% 4.4% 2.8% 2.2% 0% -1% -0.2% Source: U.S. Bureau of Labor Statistics, U.S. Department of Labor Figure 4-5 Percent Change in Truck-Trailers Producer Price Index, % 6% 5% 4% 3% 2% 1% 0% -1% -2% -0.4% -0.5% 0.9% 6.2% 6.1% 4.7% 3.0% 4.5% 4.7% 0.4% % 2011 Source: U.S. Bureau of Labor Statistics, U.S. Department of Labor 1 Producer Price Indexes measure average changes in prices received by domestic producers or providers of commodities or services.

39 AMERICAN TRUCKING TRENDS Table 4-4 Various Trucking Equipment Producer Price Indexes Year Class VIII Trucks Year-Over-Year Truck-Trailers Year-Over-Year 1990 = 100 Growth 1990 = 100 Growth % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % Note: Data are re-indexed to 1990 = 100 for easier comparisons. Source: U.S. Bureau of Labor Statistics, U.S. Department of Labor

40

41 Taxes CHAPTER 5

42 TAXES 32 Federal Highway-User Taxes: The trucking industry paid $14.3 billion in total federal highway-user taxes in 2009 (see Table 5-1), down 3.2% from The 2009 total consisted of diesel taxes (58.5%), gasoline taxes (19.3%), the retail truck tax (13.2%), the federal use tax (6.7%), and the tire tax (2.2%). State Highway-User Taxes: Table 5-2 shows the amount each state contributed to total state highway-user taxes in Commercial truck diesel taxes contributed $7.4 billion, or 39.5%, of the $18.7 billion collected in total state highway-user taxes. In 2009, truck registration fees and trailer registration fees contracted 3.4% and 0.6%, respectively, from a year earlier. State Highway-User Taxes on a Typical 5-Axle Tractor-Semitrailer: In October 2011, the average cost in taxes for a 5-axle tractor-semitrailer combination was $5,221 (see Table 5-3), up 1.1% from January Oregon collected the highest average tax ($11,545) among the fifty states and the District of Columbia. Alaska collected $1,336 (on average) in taxes on a typical 5-axle tractor-semitrailer combination, the lowest average tax of any state.

43 AMERICAN TRUCKING TRENDS Table Commercial Truck Federal Highway-User Taxes ($ Thousands) State Commercial Commercial Fed Use Tax Retail Truck Tax Tire Tax Total Federal Truck Diesel Taxes Truck Gasoline Taxes Hwy-User Taxes AL $163,632 $52,687 $19,253 $37,805 $6,286 $279,663 AK $63,550 $5,910 $6,087 $11,952 $1,987 $89,486 AZ $172,786 $53,464 $20,374 $40,006 $6,652 $293,282 AR $141,061 $29,607 $15,624 $30,679 $5,101 $222,073 CA $649,072 $300,190 $73,506 $144,337 $24,000 $1,191,105 CO $124,554 $42,477 $14,490 $28,452 $4,731 $214,705 CT $63,866 $30,636 $7,362 $14,455 $2,404 $118,723 DE $16,300 $9,014 $1,645 $3,230 $537 $30,726 DC $5,210 $2,259 $671 $1,317 $219 $9,676 FL $317,433 $168,492 $37,187 $73,020 $12,142 $608,273 GA $285,800 $98,890 $33,228 $65,247 $10,849 $494,014 HI $11,767 $9,143 $1,467 $2,881 $479 $25,737 ID IL $54,147 $333,021 $13,432 $99,285 $6,134 $36,714 $12,044 $72,092 $2,003 $11,987 $87,760 $553,099 IN $266,171 $62,418 $32,645 $64,101 $10,659 $435,994 IA $144,960 $33,391 $16,237 $31,884 $5,302 $231,774 KS $105,114 $26,870 $11,983 $23,531 $3,913 $171,411 KY $176,930 $44,844 $20,441 $40,139 $6,674 $289,028 LA $166,569 $46,385 $17,368 $34,105 $5,671 $270,098 ME $44,405 $13,448 $4,775 $9,376 $1,559 $73,563 MD $123,669 $58,234 $13,302 $26,119 $4,343 $225,667 MA $95,893 $55,979 $9,470 $18,595 $3,092 $183,029 MI $186,417 $92,288 $20,927 $41,093 $6,833 $347,558 MN $142,433 $51,652 $16,619 $32,632 $5,426 $248,762 MS $131,870 $31,912 $15,560 $30,554 $5,081 $214,977 MO $226,786 $64,760 $24,779 $48,656 $8,091 $373,073 MT $56,413 $10,049 $6,290 $12,350 $2,054 $87,156 NE $92,648 $16,781 $10,173 $19,977 $3,322 $142,902 NV $74,428 $22,399 $8,317 $16,330 $2,715 $124,189 NH $22,290 $14,514 $2,461 $4,832 $803 $44,901 NJ $200,061 $84,885 $22,493 $44,167 $7,344 $358,950 NM $103,202 $19,510 $11,787 $23,146 $3,849 $161,494 NY $323,163 $114,285 $35,387 $69,486 $11,554 $553,875 NC $222,291 $89,727 $25,401 $49,877 $8,294 $395,590 ND $47,206 $7,536 $4,936 $9,693 $1,612 $70,983 OH $318,242 $101,583 $37,646 $73,921 $12,292 $543,684 OK $173,778 $37,290 $22,552 $44,282 $7,363 $285,265 OR $119,595 $31,186 $13,432 $26,375 $4,386 $194,973 PA $330,121 $102,727 $37,431 $73,500 $12,222 $556,001 RI $13,364 $7,948 $1,460 $2,867 $477 $26,116 SC $152,915 $55,091 $16,856 $33,098 $5,504 $263,464 SD $47,486 $9,078 $5,114 $10,042 $1,670 $73,390 TN $196,639 $64,026 $24,935 $48,963 $8,142 $342,706 TX $896,392 $243,055 $107,590 $211,264 $35,129 $1,493,430 UT $97,667 $21,459 $11,257 $22,105 $3,676 $156,164 VT $12,937 $6,708 $1,518 $2,982 $496 $24,641 VA $228,358 $79,501 $25,795 $50,651 $8,422 $392,727 WA $142,596 $54,413 $16,444 $32,290 $5,369 $251,113 WV $64,751 $16,884 $7,139 $14,018 $2,331 $105,123 WI $161,483 $50,951 $18,573 $36,470 $6,064 $273,541 WY $77,467 $7,462 $9,693 $19,033 $3,165 $116,820 Total $8,388,911 $2,766,719 $962,528 $1,890,021 $314,276 $14,322,456 Note: Commercial trucks include all weight classes, including pickups and vans. Sources: Highway Statistics, 2009, Federal Highway Administration, U.S. Department of Transportation; Economics & Statistics Group, American Trucking Associations

44 TAXES 34 Table Commercial Truck State Highway-User Taxes ($ Thousands) State Commercial Commercial Truck Trailer Other Motor Total State Truck Diesel Taxes Truck Gasoline Taxes Registration Fee Registration Fee Carrier Fees Hwy-User Taxes AL $127,418 $51,542 $84,833 $4,330 $585 $268,708 AK $20,836 $2,570 $17,005 $1,867 $0 $42,278 AZ $184,116 $52,302 $45,615 $2,001 $131,047 $415,081 AR $130,077 $34,596 $63,543 $7,533 $0 $235,749 CA $478,824 $293,664 $1,510,244 $282,029 $12,199 $2,576,960 CO $104,646 $50,788 $58,261 $6,573 $20,563 $240,831 CT $118,047 $41,625 $10,208 $3,666 $4,701 $178,247 DE $14,697 $11,267 $14,755 $2,297 $2,199 $45,215 DC $4,270 $2,886 $2,232 $55 $0 $9,443 FL $208,153 $146,514 $288,827 $25,717 $271 $669,482 GA $87,848 $40,308 $19,701 $5,348 $13,892 $167,098 HI $8,198 $8,448 $21,294 $5,278 $209 $43,427 ID $55,478 $18,250 $27,921 $2,884 $57,440 $161,974 IL $293,441 $102,523 $456,486 $34,110 $14,111 $900,671 IN $174,538 $61,061 $86,417 $17,456 $2,041 $341,513 IA $133,672 $38,109 $245,800 $12,900 $35,630 $466,111 KS $112,007 $35,048 $113,630 $5,887 $2,823 $269,395 KY $153,001 $58,736 $44,612 $916 $85,708 $342,973 LA $136,532 $50,418 $28,706 $2,926 $2,690 $221,272 ME $55,870 $21,561 $19,326 $7,546 $1,695 $105,998 MD $122,909 $74,375 $65,841 $22,629 $1,152 $286,906 MA $82,531 $63,889 $69,853 $20,307 $5,014 $241,594 MI $114,600 $95,298 $124,493 $14,349 $5,354 $354,094 MN $158,194 $76,074 $164,071 $47,399 $936 $446,675 MS $99,443 $31,912 $31,745 $2,222 $4,546 $169,867 MO $158,007 $59,833 $140,819 $8,812 $1,217 $368,688 MT $64,158 $15,156 $96,833 $5,970 $32,387 $214,504 NE $101,761 $24,443 $36,117 $4,514 $1,396 $168,231 NV $82,359 $29,216 $29,422 $4,172 $11,205 $156,374 NH $17,933 $15,484 $37,261 $2,326 $18,774 $91,778 NJ $110,689 $48,440 $61,995 $10,869 $89,590 $321,583 NM $96,773 $20,014 $40,859 $2,856 $108,757 $269,259 NY $309,256 $156,210 $83,947 $31,957 $108,108 $689,478 NC $274,675 $147,026 $176,763 $34,649 $9,072 $642,185 ND $44,497 $9,420 $35,991 $2,344 $3,132 $95,385 OH $365,195 $154,583 $215,420 $32,692 $53,928 $821,819 OK $99,709 $34,453 $51,476 $7,137 $21,389 $214,163 OR $117,634 $40,677 $36,723 $13,582 $204,984 $413,600 PA $515,476 $167,490 $208,742 $9,885 $36,552 $938,145 RI $16,431 $12,959 $17,694 $2,387 $380 $49,851 SC $100,272 $47,905 $14,636 $798 $7,092 $170,704 SD $42,815 $10,854 $48,748 $4,594 $182 $107,193 TN $137,003 $69,594 $54,354 $97,417 $29,388 $387,756 TX $734,748 $264,190 $395,574 $167,456 $85,990 $1,647,958 UT $98,068 $28,573 $29,570 $2,742 $13,622 $172,574 VT $13,785 $7,292 $17,058 $3,075 $0 $41,210 VA $163,781 $75,612 $14,751 $3,055 $15,244 $272,443 WA $219,154 $110,897 $177,134 $14,859 $36,823 $558,867 WV $85,451 $29,546 $30,079 $1,032 $21 $146,129 WI $204,501 $85,565 $181,372 $10,309 $1,216 $482,963 WY $44,448 $5,678 $47,299 $3,912 $59 $101,396 Total $7,397,929 $3,134,873 $5,896,056 $1,021,626 $1,295,314 $18,745,798 Note: Commercial trucks include all weight classes, including pickups and vans. Sources: Highway Statistics, 2009, Federal Highway Administration, U.S. Department of Transportation; Economics & Statistics Group, American Trucking Associations

45 AMERICAN TRUCKING TRENDS Table 5-3 Annual State Highway-User Taxes On A Typical 5-Axle Tractor-Semitrailer Combination As of October 2011 State Annual Diesel Fuel Tax on Third Structure Third Structure Total Annual State Registration & Fuel Tax 12,308 Tax Rate Tax on State Hwy- Ranking Weight Fees Rate Gallons ($/mile) 80,000 Miles User Fees by $ Total Alabama $910 $ $2,339 $3, Alaska $351 $ $985 $1, Arizona $3,960 $ $3,323 $7,283 6 Arkansas $1,370 $ $2,806 $4, California $2,775 $ $4,271 $7,046 9 Colorado $4,682 $ $2,523 $7,205 8 Connecticut $1,586 $ $5,686 $7,272 7 Delaware $1,410 $ $2,708 $4, Dist. Of Col. $2,885 $ $2,892 $5, Florida $1,391 $ $3,947 $5, Georgia $737 $ $2,252 $2, Hawaii $827 $ $1,984 $2, Idaho $3,389 $ $3,077 $6, Illinois $3,210 $ $4,788 $7,998 4 Indiana $2,072 $ $3,323 $5, Iowa $1,705 $ $2,892 $4, Kansas $1,770 $ $3,323 $5, Kentucky $1,976 $ $4,431 $ $2,280 $8,687 3 Louisiana $514 $ $2,462 $2, Maine $3,462 $ $3,923 $7,385 5 Maryland $1,852 $ $2,985 $4, Massachusetts $1,850 $ $2,585 $4, Michigan $1,660 $ $4,551 $6, Minnesota $1,760 $ $3,446 $5, Mississippi $2,927 $ $2,265 $5, Missouri $1,730 $ $2,092 $3, Montana $1,162 $ $3,508 $4, Nebraska $1,286 $ $3,274 $4, Nevada $2,718 $ $3,423 $6, New Hampshire $787 $ $2,415 $3, New Jersey $1,258 $ $2,154 $3, New Mexico $190 $ $2,708 $ $3,502 $6, New York $1,231 $ $4,868 $ $3,120 $9,219 2 North Carolina $1,255 $ $4,308 $5, North Dakota $1,018 $ $2,831 $3, Ohio $1,406 $ $3,446 $4, Oklahoma $993 $ $1,600 $2, Oregon $1,017 $ $ $10,528 $11,545 1 Pennsylvania $1,715 $ $4,689 $6, Rhode Island $1,056 $ $3,939 $4, South Carolina $820 $ $2,062 $2, South Dakota $1,482 $ $2,954 $4, Tennessee $1,420 $ $2,265 $3, Texas $857 $ $2,462 $3, Utah $1,858 $ $3,015 $4, Vermont $1,922 $ $3,569 $5, Virginia $1,350 $ $2,659 $4, Washington $1,792 $ $4,616 $6, West Virginia $2,301 $ $3,963 $6, Wisconsin $2,575 $ $4,049 $6, Wyoming $2,231 $ $1,723 $3, AVERAGE $1,735 $ $3,212 $ $4,858 $5,221 Note: The chart features fees for a typical 5-axle tractor-semitrailer combination weighing 80,000 lbs. The registration fees are figured for an interstate vehicle traveling entirely intrastate, which doesn't happen, but allows for comparison at full fees. Fees are also those that apply to carriers based in that state and include semitrailer plate fees and registration surcharges. Other fees such as operating authority fees and property, sales, and excise taxes are not included and would affect total carrier costs and state ranking. AZ, CA, CO, ME, MN, MS, MT, NV, ND, SD, UT, WA, and WY registration fees contain a valuation component, figured on a $100,000 vehicle. Source: The State Laws Newsletter, American Trucking Associations

46 36

47 Safety CHAPTER 6

48 SAFETY 38 Fatal Crash Rate: The number of miles traveled by large trucks jumped 42.2% from 1999 to By contrast, the number of large truck fatal accidents dropped 34.5% during the same ten-year period (see Figure 6-2). As a result, the large truck fatal crash rate, which is the number of fatal crashes per 100 million vehicle miles traveled, plummeted 53.8% during the period. The large truck fatal crash rate plunged to 1.04 in 2009, which marked its lowest level since the U.S. Department of Transportation began tracking the data in Figure Large Truck Vehicle Miles Traveled (Billions) Note: A large truck is defined as a truck with a gross vehicle weight rating (GVWR) greater than 10,000 pounds (includes medium and heavy trucks). Sources: Highway Statistics, 2010, Federal Highway Administration, U.S. Department of Transportation; Highway Operations, American Trucking Associations Figure 6-2 4,750 4,500 4,250 4,000 3,750 3,250 3,000 2, Large Truck Fatal Crashes Note: A large truck is defined as a truck with a gross vehicle weight rating (GVWR) greater than 10,000 pounds (includes medium and heavy trucks). Sources: Large Truck and Bus Crash Facts, 2009, Federal Motor Carrier Safety Administration, U.S. Department of Transportation; Highway Operations, American Trucking Associations Figure 6-3 Large Truck Fatal Crash Rate (per 100 million Vehicle Miles Traveled) Note: A large truck is defined as a truck with a gross vehicle weight rating (GVWR) greater than 10,000 pounds (includes medium and heavy trucks). Sources: Large Truck and Bus Crash Facts, 2009, Federal Motor Carrier Safety Administration, U.S. Department of Transportation; Highway Operations, American Trucking Associations

49 AMERICAN TRUCKING TRENDS Blood Alcohol Content: Truck driver high blood alcohol content was reported as a factor in 1.7% of fatal accidents involving large trucks in 2009 (see Table 6-1). The 2009 percentage was significantly lower than that for drivers of other vehicles involved in fatal crashes. Furthermore, over the past ten years, the percentage of time that alcohol was a factor in a fatal crash averaged 1.4% for drivers of large trucks. Table 6-1 High Blood Alcohol Content (BAC = 0.08+)* Drivers in Fatal Crashes by Vehicle Type Year Motorcycle Passenger Car Light Truck Large Truck % 21.3% 22.3% 1.5% % 23.6% 22.2% 1.5% % 22.7% 22.7% 1.2% % 22.4% 23.1% 1.7% % 22.0% 21.5% 1.4% % 22.9% 21.5% 1.1% % 23.5% 21.6% 1.4% % 22.6% 24.0% 1.1% % 22.6% 23.4% 1.0% % 23.0% 22.6% 1.6% % 23.2% 23.2% 1.7% italic: annual data were revised * High BAC (intoxication) was lowered to from as of Note: A large truck is defined as a truck with a gross vehicle weight rating (GVWR) greater than 10,000 pounds (includes medium and heavy trucks). A light truck is defined as a truck with a gross vehicle weight rating (GVWR) of 10,000 pounds or less, including pickups, vans, truck-based station wagons, and sport utility vehicles Sources: Large Truck and Bus Crash Facts, 2009, Federal Motor Carrier Safety Administration, U.S. Department of Transportation; Highway Operations, American Trucking Associations

50 SAFETY 40 Speed Limits: Table 6-2 displays the maximum speed limit in each of the 50 states and the District of Columbia for large trucks and cars (as of February 2012). Approximately 18% of the states have different speed limits for cars and heavy trucks. Table 6-2 The Status of Maximum Speed Limits Limits as of February 2012 State Cars Trucks Comments AL 70* 70* *Rural interstates; otherwise 65. AK 65* 65* *Rural interstates and other limited access roads; otherwise 55. AZ 75* 75* *Rural interstates; otherwise 65. AR 70* 65* *Rural interstates; 55 for Urban interstates and other roads. 60 on other limited access roads (speed limits on these roads could increase to 65 if supported by a state study due to be completed on or before 9/15/2008). CA 70* 55** *Rural interstates and other limited access roads; otherwise 65. ** Rural & Urban interstates; 70 on other limited access roads; otherwise 65. CO 75* 75* *Rural interstates; otherwise 65. CT 65* 65* *Rural interstates and other limited access roads; otherwise 55. DE 65* 65* *Rural interstates and other limited access roads; otherwise 55. DC 55* 55* *Urban interstates; otherwise 25. FL 70* 70* *Rural interstates and other limited access roads; otherwise 65. GA 70* 70* *Rural interstates; otherwise 65. HI 60* 60* *Rural interstates; 50 on Urban interstates; otherwise 45. ID 75* 65* *Rural interstates; 75 on Urban interstates; otherwise 65. IL 65* 65* *Rural interstates and other limited access roads; otherwise 55. IN 70* 65* *Rural interstates; 55 on Urban interstates and other roads; otherwise 60. IA 70* 70* *Rural interstates and other limited access roads; otherwise 55. KS 75* 75* *Rural & Urban interstates and other limited access roads; otherwise 65. KY 65* 65* *Rural & Urban interstates and other limited access roads; 70 on portions of I-75 and I-71; otherwise 55. LA 75* 75* *Rural & Urban interstates and other limited access roads; otherwise 65. ME 75* 75* *Rural & Urban interstates and other limited access roads; otherwise 60. MD 65* 65* *Rural & Urban interstates and other limited access roads; otherwise 55. MA 65* 65* *Rural & Urban interstates and other limited access roads; otherwise 55. MI 70* 60* *Rural interstates and other limited access roads (EXCEPT - posted car limits <70, Trucks 55); 65 on Urban interstates; otherwise 55. MN 70* 70* *Rural interstates; 65 on Urban interstates and other limited access roads; otherwise 55. MS 70* 70* *Rural & Urban interstates and other limited access roads; otherwise 65. MO 70* 70* *Rural interstates and other limited access roads; 60 on Urban interstates; otherwise 65. MT 75* 65* *Rural interstates; 65 on Urban interstates; 70 during daytime on other roads and other limited access roads; 65 during nighttime on other roads and other limited access roads. NE 75* 75* *Rural interstates; 65 on Urban interstates and other limited access roads; otherwise 60. NV 75* 75* *Rural interstates; 65 on Urban interstates; otherwise 70. NH 65* 65* *Rural & Urban interstates; otherwise 55. NJ 65* 65* *Rural interstates and other limited access roads; otherwise 55. NM 75* 75* *Rural & Urban interstates; 65 on other limited access roads; otherwise 55. NY 65* 65* *Rural & Urban interstates and other limited access roads; otherwise 55. NC 70* 70* *Rural & Urban interstates and other limited access roads; otherwise 55. ND 75* 75* *Rural & Urban interstates; 70 on other limited access roads; otherwise 65. OH 65* 65* *Rural & Urban interstates; otherwise 55. OK 75* 75* *Rural interstates; otherwise 70. OR 65* 55* *Rural interstates; otherwise 55. PA 65* 65* *Rural interstates and other limited access roads; otherwise 55. RI 65* 65* *Rural interstates; otherwise 55. SC 70* 70* *Rural & Urban interstates; 60 on other limited access roads; otherwise 55. SD 75* 75* *Rural & Urban interstates; otherwise 70. TN 70* 70* *Rural & Urban interstates and other limited access roads; otherwise 65. TX 75* 70** *Daytime limit for Rural interstates and other limited access roads (65 nighttime limit); Daytime limit for Urban interstates - 70 (65 nighttime limit); Daytime limit for other roads - 60 (55 nighttime limit). ** Daytime limit for Rural interstates (65 nighttime limit); Large trucks may drive 70 in the daytime only on sections of I-10 and I-20 in rural West TX - see posted signs. UT 75* 75* *Rural interstates and other limited access roads; 80 on portions of I-81; otherwise 65. VT 65* 65* *Rural interstates; 55 on Urban interstates; otherwise 50. VA 70* 70* *Rural & Urban interstates; 65 on other limited access roads; otherwise 55. The posted limit may be as high as 70 mph where indicated by lawfully placed signs, erected subsequent to a traffic engineering study, effective 07/01/10). WA 70 60* *Rural interstates; otherwise 60. WV 70* 70* *Rural interstates; 55 on Urban interstates and other roads; otherwise 65. WI 65* 65* *Rural & Urban interstates and other limited access roads; otherwise 55. WY 75* 75* *Rural interstates; 60 on Urban interstates; otherwise 65. Please use care as this information changes frequently. We cannot guarantee the accuracy or timeliness of what has been reported to ATA. Always observe the POSTED limit. Source: Insurance Institute for Highway Safety

51 International Trade CHAPTER 7

52 INTERNATIONAL TRADE 42 Surface Trade by Transportation Mode: Table 7-1 shows the value of surface trade between the U.S., Mexico, and Canada by mode. (The other and total data are not directly comparable with trade data published in previous editions of Trends because the numbers for these categories include maritime, which was previously excluded by the U.S. Bureau of Transportation Statistics.) It is evident that trucking continues to be a vital part of cross-border activity. Between the U.S. and Canada, trucks hauled 69.9% of the shipment value into Canada and 44.7% out of Canada in Meanwhile, trucks transported 68% of the surface trade into Mexico and 64.9% out of it, in terms of shipment value. Figures 7-2 through 7-5 present a month-to-month breakdown of North American surface trade by transportation mode. The figures exemplify the dominance of the trucking industry and its significance to cross-border trade activity. Table 7-1 Surface Trade in the U.S. (Shipment Value in U.S. $ Millions) Figure 7-1 Percentage of Total Value of U.S. Trade by Truck (2010) (Imports plus Exports) Exports to Mexico Truck Rail Other * Total * , , , , , , , , , , , , , , , ,320.8 Imports from Mexico Truck Rail Other * Total * , , , , , , , , , , , , , , , ,654.6 Exports to Canada Truck Rail Other * Total * , , , , , , , , , , , , , , , ,194.1 Imports from Canada Truck Rail Other * Total * , , , , , , , , , , , , , , , ,477.8 Canada 53.3% Mexico 46.7% Source: U.S. Bureau of Transportation Statistics, U.S. Department of Transportation The other and total data are not directly comparable with trade data published in previous editions of Trends because the numbers for these categories now include maritime, which was previously excluded by the U.S. Bureau of Transportation Statistics. Source: U.S. Bureau of Transportation Statistics, U.S. Department of Transportation

53 AMERICAN TRUCKING TRENDS Figure 7-2 Surface Imports from Mexico (YTD) (Shipment Value in U.S. $ Millions) Truck Rail Total Other Modes $14, Jan-09 Mar May Jul Sep Nov Jan-10 Mar May Jul Sep Nov Jan-11 Mar May Jul Sep Source: U.S. Bureau of Transportation Statistics, U.S. Department of Transportation Figure 7-3 Surface Exports to Mexico (YTD) (Shipment Value in U.S. $ Millions) Truck Rail Other $11, Jan-09 Mar May Jul Sep Nov Jan-10 Mar May Jul Sep Nov Jan-11 Mar May Jul Sep Source: U.S. Bureau of Transportation Statistics, U.S. Department of Transportation

54 INTERNATIONAL TRADE 44 Figure 7-4 Surface Imports from Canada (YTD) (Shipment Value in U.S. $ Millions) $16, Truck Rail Total Other Modes Jan-09 Mar May Jul Sep Nov Jan-10 Mar May Jul Sep Nov Jan-11 Mar May Jul Sep Figure 7-5 Surface Exports to Canada (YTD) (Shipment Value in U.S. $ Millions) Truck Rail Total Other Modes $18, Jan-09 Mar May Jul Sep Nov Jan-10 Mar May Jul Sep Nov Jan-11 Mar May Jul Sep Source: U.S. Bureau of Transportation Statistics, U.S. Department of Transportation

55 AMERICAN TRUCKING TRENDS Truck Trade by Commodity: Tables 7-2 through 7-5 identify the top ten commodities that were transported by truck to and from the U.S., Canada, and Mexico in 2009 and In terms of value, the largest commodity group transported by truck from the U.S. to Mexico in 2010 was electrical machinery and equipment, which represented about one-fourth of the total. From the Mexico to U.S., electrical machinery and equipment accounted for about one-third of the total. During the same one-year period, the largest commodity group transported by truck from Canada to the U.S. was autos, which made up over one-sixth of the total. Moreover, the top 10 commodities transported from the U.S. to Canada by truck in 2010 equaled 66% of the total value of truck-transported trade from the U.S. to its northern neighbor. Table 7-2 Value (U.S. $) of Top Ten Commodities Transported from Mexico to the U.S. by Truck (2009 and 2010) Value (U.S. $) of Top Ten Commodities Transported from Mexico to the U.S. by Truck (2009) 85 Electrical machinery and equipment and parts thereof $42,216,608, % 84 Nuclear reactors, boilers, machinery & mechanical appliances 19,836,623, % 87 Vehicles, other than railway or tramway rolling stock 10,647,803, % 90 Optical, photographic, cinematographic, measuring, medical instruments 6,863,313, % 98 Special classification provisions 4,116,115, % 94 Furniture, bedding, mattress supports, cushions and similar stuffed furnishings 3,785,123, % 7 Edible vegetables and certain roots and tubes 3,130,569, % 8 Edible fruit and nuts; Peel of citrus fruit or melons 2,272,550, % 39 Plastics and articles thereof 2,029,558, % 71 Natural or cultured pearls, precious or semiprevious stones, precious metals; 1,963,315, % metals clad with precious metal, and articles thereof; imitation jewelry; coin Top Ten Total by Truck $96,861,582, % Total, All Commodities by Truck $117,787,364,033 Total, All Commodities, All Modes $176,537,048,132 Value (U.S. $) of Top Ten Commodities Transported from Mexico to the U.S. by Truck (2010) 85 Electrical machinery and equipment and parts thereof $47,843,276, % 84 Nuclear reactors, boilers, machinery & mechanical appliances 30,816,092, % 87 Vehicles, other than railway or tramway rolling stock 15,278,277, % 90 Optical, photographic, cinematographic, measuring, medical instruments 8,069,388, % 94 Furniture, bedding, mattress supports, cushions and similar stuffed furnishings 5,582,501, % 98 Special classification provisions 4,594,300, % 7 Edible vegetables and certain roots and tubes 3,943,099, % 71 Natural or cultured pearls, precious or semiprevious stones, precious metals; 2,935,960, % metals clad with precious metal, and articles thereof; imitation jewelry; coin 8 Edible fruit and nuts; Peel of citrus fruit or melons 2,677,248, % 39 Plastics and articles thereof 2,489,856, % Top Ten Total by Truck $124,230,002, % Total, All Commodities by Truck $148,948,191,844 Total, All Commodities, All Modes $229,654,627,821 Source: U.S. Bureau of Transportation Statistics, U.S. Department of Transportation

56 INTERNATIONAL TRADE 46 Table 7-3 Value (U.S. $) of Top Ten Commodities Transported from the U.S. to Mexico by Truck (2009 and 2010) Value (U.S. $) of Top Ten Commodities Transported from the U.S. to Mexico by Truck (2009) 85 Electrical machinery and equipment and parts thereof $21,371,732, % 84 Nuclear reactors, boilers, machinery & mechanical appliances 7,701,904, % 39 Plastics and articles thereof 87,588,038, % 87 Vehicles, other than railway or tramway rolling stock 6,301,314, % 90 Optical, photographic, cinematographic, measuring, medical instruments 3,865,461, % 48 Paper and paperboard; articles of paper pulp 2,408,031, % 73 Articles of iron and steel 2,383,876, % 2 Meat 1,969,927, % 76 Articles of aluminum 1,580,468, % 40 Rubber and articles thereof 1,572,856, % Top Ten Total by Truck $66,743,612, % Total, All Commodities by Truck $89,416,555,981 Total, All Commodities, All Modes $128,997,679,354 Value (U.S. $) of Top Ten Commodities Transported from the U.S. to Mexico by Truck (2010) 85 Electrical machinery and equipment and parts thereof $28,365,747, % 84 Nuclear reactors, boilers, machinery & mechanical appliances 21,672,481, % 39 Plastics and articles thereof 9,266,963, % 87 Vehicles, other than railway or tramway rolling stock 9,209,656, % 90 Optical, photographic, cinematographic, measuring, medical instruments 3,639,581, % 73 Articles of iron and steel 2,861,238, % 48 Paper and paperboard; articles of paper pulp 2,641,116, % 2 Meat 2,303,237, % 76 Articles of aluminum 2,203,264, % 40 Rubber and articles thereof 1,988,815, % Top Ten Total by Truck $84,152,102, % Total, All Commodities by Truck $111,110,203,892 Total, All Commodities, All Modes $163,320,752,355 Source: U.S. Bureau of Transportation Statistics, U.S. Department of Transportation

57 AMERICAN TRUCKING TRENDS Table 7-4 Value (U.S. $) of Top Ten Commodities Transported from Canada to the U.S. by Truck (2009 and 2010) Value (U.S. $) of Top Ten Commodities Transported from Canada to the U.S. by Truck (2009) 87 Vehicles, other than railway or tramway rolling stock $16,652,818, % 84 Nuclear reactors, boilers, machinery & mechanical appliances 13,605,463, % 98 Special classification provisions 6,078,452, % 85 Electrical machinery and equipment and parts thereof 5,938,776, % 39 Plastics and articles thereof 5,295,222, % 48 Paper and paperboard; articles of paper pulp 4,813,939, % 30 Pharmaceutical products 4,407,093, % 94 Furniture, bedding, mattress supports, cushions and similar stuffed furnishings 2,909,122, % 76 Articles of aluminum 2,723,526, % 71 Natural or cultured pearls, precious or semiprevious stones, precious metals; 2,579,666, % metals clad with precious metal, and articles thereof; imitation jewelry; coin Top Ten Total by Truck $65,004,081, % Total, All Commodities by Truck $105,078,889,007 Total, All Commodities, All Modes $224,910,749,701 Value (U.S. $) of Top Ten Commodities Transported from Canada to the U.S. by Truck (2010) 87 Vehicles, other than railway or tramway rolling stock $22,354,546, % 84 Nuclear reactors, boilers, machinery & mechanical appliances 15,293,013, % 98 Special classification provisions 6,502,639, % 39 Plastics and articles thereof 6,059,121, % 85 Electrical machinery and equipment and parts thereof 5,812,129, % 48 Paper and paperboard; articles of paper pulp 5,051,213, % 71 Natural or cultured pearls, precious or semiprevious stones, precious metals; 4,967,334, % metals clad with precious metal, and articles thereof; imitation jewelry; coin 76 Articles of aluminum 3,487,697, % 30 Pharmaceutical products 3,481,222, % 94 Furniture, bedding, mattress supports, cushions and similar stuffed furnishings 3,457,239, % Top Ten Total by Truck $76,466,157, % Total, All Commodities by Truck $123,238,004,538 Total, All Commodities, All Modes $276,477,756,178 Source: U.S. Bureau of Transportation Statistics, U.S. Department of Transportation

58 INTERNATIONAL TRADE 48 Table 7-5 Value (U.S. $) of Top Ten Commodities Transported from the U.S. to Canada by Truck (2009 and 2010) Value (U.S. $) of Top Ten Commodities Transported from the U.S. to Canada by Truck (2009) 84 Nuclear reactors, boilers, machinery & mechanical appliances $26,628,584, % 87 Vehicles, other than railway or tramway rolling stock 22,095,191, % 85 Electrical machinery and equipment and parts thereof 14,471,959, % 39 Plastics and articles thereof 6,424,645, % 90 Optical, photographic, cinematographic, measuring, medical instruments 4,168,627, % 48 Paper and paperboard; articles of paper pulp 3,919,373, % 73 Articles of iron and steel 3,649,603, % 30 Pharmaceutical products 3,594,876, % 72 Iron and steel 3,132,926, % 94 Furniture, bedding, mattress supports, cushions and similar stuffed furnishings 2,835,361, % Top Ten Total by Truck $90,921,150, % Total, All Commodities by Truck $142,544,582,195 Total, All Commodities, All Modes $204,728,093,537 Value (U.S. $) of Top Ten Commodities Transported from the U.S. to Canada by Truck (2010) 84 Nuclear reactors, boilers, machinery & mechanical appliances $32,676,368, % 87 Vehicles, other than railway or tramway rolling stock 30,427,531, % 85 Electrical machinery and equipment and parts thereof 17,885,144, % 39 Plastics and articles thereof 7,719,505, % 90 Optical, photographic, cinematographic, measuring, medical instruments 4,850,733, % 73 Articles of iron and steel 4,629,603, % 72 Iron and steel 4,459,583, % 48 Paper and paperboard; articles of paper pulp 4,342,153, % 30 Pharmaceutical products 4,091,499, % 94 Furniture, bedding, mattress supports, cushions and similar stuffed furnishings 3,444,520, % Top Ten Total by Truck $114,526,643, % Total, All Commodities by Truck $173,587,984,402 Total, All Commodities, All Modes $248,194,089,454 Source: U.S. Bureau of Transportation Statistics, U.S. Department of Transportation

59 AMERICAN TRUCKING TRENDS Truck Trade by U.S. State: Figures 7-6 through 7-9 show the top 10 states for both imports and exports (to and from Mexico and Canada) in Texas and California were responsible for the vast majority of truck-transported trade between the U.S. and Mexico. In terms of truck-transported imports from Mexico in 2010, these two states represented 52.3% of the total, and for exports to Mexico, they equaled 62.1% of the total, with Texas alone accounting for 46.7%. In terms of truck-transported imports from Canada in 2010, Michigan represented 17.6% of the total. For exports to Canada from the U.S., Michigan accounted for 10% of trucking cross-border trade. Figure 7-6 Distribution of Surface Imports from Mexico by Truck: Top Ten States, 2010 Figure 7-7 Distribution of Surface Exports to Mexico by Truck: Top Ten States, 2010 MI 6.3% AZ 3.7% IL 3.3% OH 3.2% NC 2.4% TN 2.0% IN 2.0% WI 2.0% IL 2.9% AZ 4.1% OH 2.2% TN 2.2% PA 1.6% WI 1.6% NC 1.3% TX 33.4% MI 4.2% TX 46.7% CA 18.9% CA 15.4% All Other States 22.8% All Other States 17.9% Source: Transborder Surface Freight Data, U.S. Bureau of Transportation Statistics, U.S. Department of Transportation Source: Transborder Surface Freight Data, U.S. Bureau of Transportation Statistics, U.S. Department of Transportation

60 INTERNATIONAL TRADE 50 Figure 7-8 Distribution of Surface Imports from Canada by Truck: Top Ten States, 2010 Figure 7-9 Distribution of Surface Exports to Canada by Truck: Top Ten States, 2010 IL 5.0% MA 3.5% WA 3.4% IN 3.1% All Other States 34.4% IN 4.9% PA 5.0% TN 3.5% WI 3.0% TX 5.1% NY 5.7% All Other States 39.8% PA 5.5% CA 5.8% OH 6.0% TX 6.5% IL 6.5% NY 10.6% MI 17.6% CA 6.8% OH 8.3% MI 10.0% Source: Transborder Surface Freight Data, U.S. Bureau of Transportation Statistics, U.S. Department of Transportation Source: Transborder Surface Freight Data, U.S. Bureau of Transportation Statistics, U.S. Department of Transportation

61 Trucks & the Environment CHAPTER 8

62 TRUCKS & THE ENVIRONMENT 52 Vehicle Miles and Fuel Consumption: In 2010, combination trucks consumed 56.3 billion fewer gallons of fuel than passenger vehicles, and only 17.6% of the total (see Figure 8-1), while traveling just 8.7% of the miles traveled by passenger cars. Table 8-1 shows that combination trucks consumed 29.9 billion gallons of fuel in 2010, up from 28.0 billion gallons in Table 8-1 Vehicle Miles and Fuel Consumption (Billions) Year Passenger Passenger Fuel Single-Unit Single-Unit Truck Combination Combination Truck Vehicle Miles Use (Gallons) Truck Miles Fuel Use (Gallons) Truck Miles Fuel Use (Gallons) , , , , , , , , , , , , , , , , , , , italic: annual data were revised Source: Highway Statistics, 2010, Federal Highway Administration, U.S. Department of Transportation Figure Vehicle Miles & Fuel Consumption % of Total Passenger Vehicle Single Unit Truck Combination Unit Truck % 60.8% 72.0% 68.3% % 27.9% 23.1% 24.7% 17.6% 10.0% 3.9% 5.9% Fuel Consumption Rural Miles Urban Miles Total Vehicle Miles Note: Percentages do not add up to 100% since motorcycles and buses data were excluded. Source: Highway Statistics, 2010, Federal Highway Administration, U.S. Department of Transportation 1 The figures shown in Table 8-1 do not directly match the fuel consumption information in the Introduction because single-unit trucks in this table contain both personal and commercial vehicles. In addition, the miles-traveled data do not match that in the Introduction because combination trucks and Class 8 trucks are not exactly the same.

63 AMERICAN TRUCKING TRENDS Emissions: Table 8-2 and the subsequent tables and figures in this chapter indicate that highway vehicles release substantially fewer emissions than they did a decade ago, and account for only a small percentage of overall air pollution. For example, Table 8-3 reveals that highway vehicle nitrogen oxide emissions in 2011 were 55.2% lower than in Table 8-2 Sulfur Dioxide Emissions (Thousands of Short Tons) Highway Vehicles Off-Highway Vehicles Miscellaneous All Sources , , , , , , , , , , , , ,059 Complete details can be found at Note: Highway Vehicles includes: light-duty gasoline vehicles and trucks; light-duty diesel vehicles and trucks; heavy-duty gasoline vehicles; heavy-duty diesel vehicles. Off-Highway Vehicles includes: non-road gasoline and diesel vehicles; aircraft; diesel and gasoline marine vessels; railroads. Miscellaneous includes: among other things, agriculture and forestry (e.g., crops, fires, logging). Sources: National Emissions Inventory (NEI) Air Pollutant Emissions Trends Data, , Office of Air Quality, Environmental Protection Agency; American Trucking Associations. Figure 8-2 Sulfur Dioxide Emissions by Highway Vehicles (Thousands of Short Tons) Note: Highway Vehicles includes: light-duty gasoline vehicles and trucks; light-duty diesel vehicles and trucks; heavy-duty gasoline vehicles; heavy-duty diesel vehicles. Sources: National Emissions Inventory (NEI) Air Pollutant Emissions Trends Data, , Office of Air Quality, Environmental Protection Agency; American Trucking Associations.

64 TRUCKS & THE ENVIRONMENT 54 Table 8-3 Nitrogen Oxide Emissions (Thousands of Short Tons) Highway Vehicles Off-Highway Vehicles Miscellaneous All Sources ,371 4, , ,394 4, , ,774 4, , ,870 4, , ,411 4, , ,951 4, , ,492 4, , ,106 4, , ,720 4, , ,333 3, , ,808 3, , ,283 2, , ,758 2, ,009 Complete details can be found at Note: Highway Vehicles includes: light-duty gasoline vehicles and trucks; light-duty diesel vehicles and trucks; heavy-duty gasoline vehicles; heavy-duty diesel vehicles. Off-Highway Vehicles includes: non-road gasoline and diesel vehicles; aircraft; diesel and gasoline marine vessels; railroads. Miscellaneous includes: among other things, agriculture and forestry (e.g., crops, fires, logging). Sources: National Emissions Inventory (NEI) Air Pollutant Emissions Trends Data, , Office of Air Quality, Environmental Protection Agency; American Trucking Associations. Figure 8-3 Nitrogen Oxide Emissions by Highway Vehicles (Thousands of Short Tons) 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, Note: Highway Vehicles includes: light-duty gasoline vehicles and trucks; light-duty diesel vehicles and trucks; heavy-duty gasoline vehicles; heavy-duty diesel vehicles. Sources: National Emissions Inventory (NEI) Air Pollutant Emissions Trends Data, , Office of Air Quality, Environmental Protection Agency; American Trucking Associations.

65 AMERICAN TRUCKING TRENDS Table 8-4 Volatile Organic Compounds (VOC) Emissions (Thousands of Short Tons) Highway Vehicles Off-Highway Vehicles Miscellaneous All Sources ,681 2, , ,325 2, , ,952 2, , ,917 3,057 3,970 21, ,649 2,994 3,970 20, ,381 2,930 3,970 19, ,112 2,866 3,291 18, ,927 2,776 3,051 17, ,743 2,686 2,811 16, ,558 2,595 2,571 16, ,353 1,954 2,943 14, ,147 1,313 3,315 13, , ,688 12,129 Complete details can be found at Note: Highway Vehicles includes: light-duty gasoline vehicles and trucks; light-duty diesel vehicles and trucks; heavy-duty gasoline vehicles; heavy-duty diesel vehicles. Off-Highway Vehicles includes: non-road gasoline and diesel vehicles; aircraft; diesel and gasoline marine vessels; railroads. Miscellaneous includes: among other things, agriculture and forestry (e.g., crops, fires, logging). Sources: National Emissions Inventory (NEI) Air Pollutant Emissions Trends Data, , Office of Air Quality, Environmental Protection Agency; American Trucking Associations. Figure 8-4 Volatile Organic Compounds (VOC) Emissions by Highway Vehicles (Thousands of Short Tons) 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Note: Highway Vehicles includes: light-duty gasoline vehicles and trucks; light-duty diesel vehicles and trucks; heavy-duty gasoline vehicles; heavy-duty diesel vehicles. Sources: National Emissions Inventory (NEI) Air Pollutant Emissions Trends Data, , Office of Air Quality, Environmental Protection Agency; American Trucking Associations.

66 TRUCKS & THE ENVIRONMENT 56 Table 8-5 Particulate Matter (PM-10) Emissions (Thousands of Short Tons) Highway Vehicles Off-Highway Vehicles Miscellaneous All Sources ,186 23, ,649 23, ,580 23, ,883 21, ,809 21, ,736 21, ,662 21, ,518 19, ,373 18, ,229 16, ,414 13, ,599 10, ,784 7,837 Complete details can be found at Note: Highway Vehicles includes: light-duty gasoline vehicles and trucks; light-duty diesel vehicles and trucks; heavy-duty gasoline vehicles; heavy-duty diesel vehicles. Off-Highway Vehicles includes: non-road gasoline and diesel vehicles; aircraft; diesel and gasoline marine vessels; railroads. Miscellaneous includes: among other things, agriculture and forestry (e.g., crops, fires, logging). Sources: National Emissions Inventory (NEI) Air Pollutant Emissions Trends Data, , Office of Air Quality, Environmental Protection Agency; American Trucking Associations. Figure 8-5 Particulate Matter (PM-10) Emissions by Highway Vehicles (Thousands of Short Tons) Note: Highway Vehicles includes: light-duty gasoline vehicles and trucks; light-duty diesel vehicles and trucks; heavy-duty gasoline vehicles; heavy-duty diesel vehicles. Sources: National Emissions Inventory (NEI) Air Pollutant Emissions Trends Data, , Office of Air Quality, Environmental Protection Agency; American Trucking Associations.

67 AMERICAN TRUCKING TRENDS Figure vs 2011 Distribution of Sulfur Dioxide Emissions (Thousands of Short Tons) Highway Vehicles Off-Highway Vehicles Miscellaneous Note: Highway Vehicles includes: light-duty gasoline vehicles and trucks; light-duty diesel vehicles and trucks; heavy-duty gasoline vehicles; heavy-duty diesel vehicles. Off-Highway Vehicles includes: non-road gasoline and diesel vehicles; aircraft; diesel and gasoline marine vessels; railroads. Miscellaneous includes: among other things, agriculture and forestry (e.g., crops, fires, logging). Sources: National Emissions Inventory (NEI) Air Pollutant Emissions Trends Data, , Office of Air Quality, Environmental Protection Agency; American Trucking Associations. Figure vs 2011 Distribution of Nitrogen Oxide Emissions (Thousands of Short Tons) ,500 4,000 3,500 3,000 2,500 2,000 1,500 4,283 3,758 2,873 2,351 1, Highway Vehicles Off-Highway Vehicles Miscellaneous Note: Highway Vehicles includes: light-duty gasoline vehicles and trucks; light-duty diesel vehicles and trucks; heavy-duty gasoline vehicles; heavy-duty diesel vehicles. Off-Highway Vehicles includes: non-road gasoline and diesel vehicles; aircraft; diesel and gasoline marine vessels; railroads. Miscellaneous includes: among other things, agriculture and forestry (e.g., crops, fires, logging). Sources: National Emissions Inventory (NEI) Air Pollutant Emissions Trends Data, , Office of Air Quality, Environmental Protection Agency; American Trucking Associations.

68 TRUCKS & THE ENVIRONMENT 58 Figure vs 2011 Distribution of Volatile Organic Compounds (VOC) Emissions (Thousands of Short Tons) 4, ,688 3,500 3,000 3,147 2,942 3,315 2,500 2,000 1,500 1, , Highway Vehicles Off-Highway Vehicles Miscellaneous Note: Highway Vehicles includes: light-duty gasoline vehicles and trucks; light-duty diesel vehicles and trucks; heavy-duty gasoline vehicles; heavy-duty diesel vehicles. Off-Highway Vehicles includes: non-road gasoline and diesel vehicles; aircraft; diesel and gasoline marine vessels; railroads. Miscellaneous includes: among other things, agriculture and forestry (e.g., crops, fires, logging). Sources: National Emissions Inventory (NEI) Air Pollutant Emissions Trends Data, , Office of Air Quality, Environmental Protection Agency; American Trucking Associations. Figure vs 2011 Distribution of Particulate Matter (PM-10) Emissions (Thousands of Short Tons) ,000 8,599 5,784 5, Highway Vehicles Off-Highway Vehicles Miscellaneous Note: Highway Vehicles includes: light-duty gasoline vehicles and trucks; light-duty diesel vehicles and trucks; heavy-duty gasoline vehicles; heavy-duty diesel vehicles. Off-Highway Vehicles includes: non-road gasoline and diesel vehicles; aircraft; diesel and gasoline marine vessels; railroads. Miscellaneous includes: among other things, agriculture and forestry (e.g., crops, fires, logging). Sources: National Emissions Inventory (NEI) Air Pollutant Emissions Trends Data, , Office of Air Quality, Environmental Protection Agency; American Trucking Associations.

69 Diesel Fuel Price Trends CHAPTER 9

70 DIESEL FUEL PRICE TRENDS 60 After plummeting to a four-year low of $2.017 per gallon on March 16, 2009, the national average retail price of on-highway diesel was $2.992 per gallon in For all of 2011, diesel averaged $3.840 a gallon, 3.7 cents above 2008 s record $3.803 a gallon and the highest average of all time. The price of diesel is continuing to slowly climb back up, and has averaged $3.852 per gallon year-to-date as of February Table 9-1 and Figures 9-1 and 9-6 show annual average prices for gasoline and diesel, including the average annual diesel prices across the five main Department of Energy (DOE) regions. From 2009 to 2010, diesel and gasoline prices rose 21.3% and 18.2%, respectively. In 2010, diesel, on average in the U.S., was 21 cents per gallon more expensive than gasoline; the same measure jumped to 31.9 cents in Diesel prices have exceeded gasoline prices since the summer of experienced diesel prices fluctuating across the year, with retail diesel averaging a substantial 84.8 cents above 2010 nationwide. Based on the Energy Information Administration s (EIA) latest energy price predictions (released February 2012) and current energy market fundamentals, ATA estimates that the trucking industry s diesel fuel bill was $142.7 billion in 2011, up from $109 billion in Current projections estimate a $155.9 billion cost in 2012, with diesel prices expected to average around $4.15 per gallon. Table 9-1 Average Annual Retail Fuel Prices: (Dollars Per Gallon) Gasoline Diesel East Coast Midwest Gulf Coast Rocky Mtn West Coast 2007 $2.791 $2.876 $2.868 $2.853 $2.813 $2.976 $ $3.246 $3.803 $3.870 $3.758 $3.756 $3.793 $ $2.353 $2.467 $2.503 $2.433 $2.420 $2.476 $ $2.782 $2.992 $3.007 $2.964 $2.938 $3.026 $ $3.521 $3.840 $3.862 $3.802 $3.775 $3.867 $4.000 Source: Energy Information Administration, U.S. Department of Energy

71 AMERICAN TRUCKING TRENDS Figure 9-3 reveals the level of distillate (diesel and heating oil) inventories in 2010 and In 2010, distillate inventories remained elevated in the first half of the year and surged to a 26-year high in August before beginning its decline below 2009 levels. In 2011, inventories continued to gradually decline until the third quarter, when inventories temporarily rebounded before plummeting below the 5-year average in October. The cost of crude oil, which accounts for 67% (as of January 2012) of the retail price of diesel, was a key contributor to the behavior of diesel prices in 2010 and After climbing steadily throughout the year, oil prices began an upwards surge in Q4 2010, surpassing $90 a barrel by the year-end. In 2010, the price of WTI oil averaged $79.40 per barrel, 21.2% higher than 2009 s $61.96 per barrel. Political instability in the Middle East, along with the ongoing financial crisis, drove oil prices up at the end of 2010 and throughout Since peaking at $ per barrel at the end of April 2011, the price of WTI has remained volatile. For 2011, the price of oil averaged $94.86 per barrel, 19.5% higher than 2010 s average. As of February, the year to date average for 2012 has climbed to $99.67 a barrel. For a more up-to-date analysis of the diesel market, see ATA s weekly publication, Fuel Line. This report contains an array of relevant data specifically selected to better visualize and measure ongoing market conditions. For more information call Figure 9-1 Average Annual Retail Fuel Prices (Dollars Per Gallon) 4.50 Gasoline Diesel $3.84 $ Source: Energy Information Administration, U.S. Department of Energy

72 DIESEL FUEL PRICE TRENDS 62 Figure 9-2 West Texas Intermediate Crude Oil Daily Closings Jan. 1, Dec. 31, 2011 ($/barrel) Max: $145.29; 07/3/ Min: $17.97; 1/16/ Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Source: The Wall Street Journal, New York, USA Figure 9-3 U.S. Distillate Inventories (Millions of Barrels) 5-year avg Jan Feb Mar Apr. May June Aug. Sept. Oct. Nov. Dec. Sources: Energy Information Administration, U.S. Department of Energy; Economics & Statistics Group, American Trucking Associations

73 AMERICAN TRUCKING TRENDS Figure 9-4 U.S. Crude Oil Stocks (Millions of Barrels) 5-year avg , , , , , , , , , , ,000 Jan Feb Mar Mar Apr. May Jun Jul Aug. Sept. Oct. Nov. Dec. Sources: Energy Information Administration, U.S. Department of Energy, American Trucking Associations Figure 9-5 Trucking Business Failures (Q4 02-Q4 11) vs. Average National Diesel Prices (Dollars per Gallon) Total Trucking Failures Average National Diesel Prices 1200 $ $4.30 $3.80 $ $ $2.30 $1.80 $ Q4 02 Q2 03 Q4 03 Q2 04 Q4 04 Q2 05 Q4:05 Q2:06 Q4:06 Q2:07 Q4:07 Q2:08 Q4:08 Q2:09 Q4:09 Q2:10 Q4:10 Q2:11 Q4:11 $0.80 Note: only includes fleets with 5 or more trucks Sources: Avondale Partners, LLC; Energy Information Administration, U.S. Department of Energy; Economics & Statistics Group, American Trucking Associations

74 DIESEL FUEL PRICE TRENDS 64 Figure 9-6 Diesel Fuel Prices, 2011 $4.50 National Retail Avg. Jan Dec $4.50 National Retail Avg. vs. East Coast Avg. Jan Dec $4.25 $4.25 $/gallon $4.00 $3.75 $/gallon $4.00 $3.75 $3.50 $3.50 $3.25 1/3/11 3/3/11 5/3/11 7/3/11 9/3/11 11/3/11 $3.25 1/3/11 4/3/11 7/3/11 10/3/11 National Average National Average East Coast $4.50 National Retail Avg. vs. New England Avg. Jan Dec $4.50 National Retail Avg. vs. Central Atlantic Avg. Jan Dec $4.25 $4.25 $/gallon $4.00 $3.75 $/gallon $4.00 $3.75 $3.50 $3.50 $3.25 1/3/11 3/3/11 5/3/11 7/3/11 9/3/11 11/3/11 $3.25 1/3/11 3/3/11 5/3/11 7/3/11 9/3/11 11/3/11 National Average New England National Average Central Atlantic $4.50 $4.25 National Retail Avg. vs. Lower Atlantic Avg. Jan Dec $4.50 $4.25 National Retail Avg. vs. Midwest Avg. Jan Dec $/gallon $4.00 $3.75 $/gallon $4.00 $3.75 $3.50 $3.50 $3.25 1/3/11 3/3/11 5/3/11 7/3/11 9/3/11 11/3/11 $3.25 1/3/11 3/3/11 5/3/11 7/3/11 9/3/11 11/3/11 National Average Lower Atlantic National Average Midwest $4.50 National Retail Avg. vs. Gulf Coast Avg. Jan Dec $4.50 National Retail Avg. vs. Rocky Mtn. Avg. Jan Dec $4.25 $4.25 $/gallon $4.00 $3.75 $/gallon $4.00 $3.75 $3.50 $3.50 $3.25 1/3/11 3/3/11 5/3/11 7/3/11 9/3/11 11/3/11 $3.25 1/3/11 3/3/11 5/3/11 7/3/11 9/3/11 11/3/11 National Average Gulf Coast National Average Rocky Mtn

75 AMERICAN TRUCKING TRENDS Figure 9-6 Diesel Fuel Prices, 2011 (cont) $4.50 National Retail Avg. vs. West Coast Avg. Jan Dec $4.50 National Retail Avg. vs. California Avg. Jan Dec $4.25 $4.25 $/gallon $4.00 $3.75 $/gallon $4.00 $3.75 $3.50 $3.50 $3.25 1/3/11 3/3/11 5/3/11 7/3/11 9/3/11 11/3/11 $3.25 1/3/11 3/3/11 5/3/11 7/3/11 9/3/11 11/3/11 National Average West Coast National Average California Source: Energy Information Administration, U.S. Department of Energy

76 U.S. COMMERCIAL TRUCK CONFIGURATIONS 66

77 GLOSSARY