Dueling proposals for GVW increases
Posted By:
Tom Sanderson
Date Posted:
Wednesday, November 03, 2010
1:30 PM
The Truckload Carriers Association has come out in favor of raising the gross vehicle weight (GVW) limit from 80,000 pounds to 88,000 pounds while continuing to utilize 5-axle tractor-trailer combinations. The American Trucking Associations (ATA), on the other hand, is supporting a 97,000 pound GVW with a 6-axle combination that adds a third axle for the trailer. It is safe to assume that the Association of American Railroads will oppose both ideas. The TCA's position is easy to understand. Truckload carriers do not want to buy new 3-axle trailers or convert existing equipment to that configuration because the cost of doing so will not be recouped through higher rates to haul freight. Tire maintenance will rise and fuel economy will fall with the 3rd trailer axle. Only shippers with heavy, dense freight will benefit from the 97,000 pound limit and they will be willing to pay more as long as the cost per unit is less, but shippers with lighter weight products will not pay more for something that has no incremental value to them despite the fact that the carriers' cost has increased. Carriers will not want the complexity of running two different trailer types as that will only lead to greater empty miles to get the right trailer on the right load.
The ATA-supported 97,000 pound limit is more beneficial to the heavy-weight shippers and also has the benefit of not increasing highway wear and tear as the extra weight is spread over an extra axle. The only problem is that this will have lukewarm support from the truckload carriers that have to shell out the money to buy the new trailers. It may take a long time to see any realized benefits other than in shorter haul and closed loop environments where the more expensive equipment can be dedicated to customers willing to pay for the extra hauling capacity.
You can read more about the TCA's position at The Trucker and Transport Topics.
We know that everything coming out of Washington (CSA 2010, hours of service, cap and tax) is driving up the cost of freight transportation, so we need some productivity gains to offset the cost increases to remain competitive. We also know that our highways and bridges are in terrible shape and can't take much more stress.
With some reservations due to highway wear, I think we should pursue both changes. The 88,000 pound TCA proposal provides immediate productivity gains to offset the rapidly approaching shortage of TL drivers and other 2011 cost increases. The 97,000 pound limit would provide great productivity gains in dedicated and closed loop environments, but would not need to be adopted by over-the-road truckers to remain competitive. Both proposals mean fewer trucks and drivers are required to transport the nation's freight and that means less highway congestion and lower costs.
Comments:
(0)
Categories:
Truck size and weight