What FMCSA’s non-domiciled CDL rule means for fleets

Plus: Tips to scale your fleet | Why logistics stocks tumbled

The freight market is giving seriously mixed signals. While the industry is shedding jobs, rates are rising in some sectors, and one trucking finance expert sees promising signs from balance sheets and bank financing.

Plus, the FMCSA has finalized its rule on non-domiciled CDLs.

But before we dive in, here's a funny photo for a good laugh.

ROADSIDE READS

Stock sell-off 📉 Why did trucking and logistics stocks take a nose-dive last week? A Bloomberg journalist explains what happened.

Cargo criminals. Thieves are carrying out elaborate schemes to steal diesel across the country, including one ring that bought $3.4 million in fuel for resale using cloned credit cards.

Parking problems. A new report analyzes the freight corridors most severely impacted by truck parking shortages.

"The Beasts." Check out photos of these seriously heavy-duty trucks. They're specifically designed to move industrial equipment and oversized loads.

INDUSTRY VOICES

5 things to consider when scaling your fleet

If you think it might be time to grow your trucking business, there are a handful of factors to consider, writes Jennifer Lockett, Freight Factoring Operations Manager at altLINE. Do you have a handle on how insurance costs and coverage requirements would change? Do you have plans for increased maintenance and new SOPs?

Lockett notes it's important to have a solid foundation before scaling. Otherwise, "adding trucks too soon or without a plan can cause more headaches than profits," she writes.

Why this matters: Scaling a trucking company is about much more than physically adding trucks. The more fleet executives lay the groundwork and answer key questions before expanding, the more likely they'll grow successfully. (CCJ Digital)

FAST LANE

REVISED REPORT: BLS reveals trucking lost more jobs than first thought

EMISSIONS CHANGE: EPA strikes greenhouse gas rules for heavy-duty trucks

RECOVERY COMING? Valentine's flower shipments boost truck rates

WEAK DEMAND: Trailer maker Wabash cuts 270 jobs, idles plants

GLASS HALF FULL: Small biz optimism third highest since 2007

MORE AVS: Aurora plans to triple driverless trucking routes

SEEN & HEARD

"No one was excited about reviewing a transportation finance deal, because the bank knew that there's a high chance that maybe this defaults. Every which way, it's starting to turn more positive and excited."- Derek Rodriquez, president, KC Financial

Rodriquez joins the Making Cents of It All podcast to share his perspective on the state of the transportation market. He sees freight rates rising and banks more willing to finance trucking equipment loans—both of which indicate the market is improving. (Making Cents of It All)

ROAD REPORT

Small trucking businesses struggle with rising insurance costs

Across the country, health insurance costs are on the rise. On average, businesses saw their premiums increase 11% from last year as drug prices rise and chronic disease becomes more common. The hardest hit: small and independent businesses. Members of the National Federation of Independent Business consistently report rising health insurance costs as their top business concern.

Why this matters: Fleets that provide healthcare coverage for employees have decisions to make as premiums rise. While they could reduce the employer contribution, that may not sit well with workers. Most likely, it will be one more cost factor to take into account and absorb into margins. (Trucks Parts and Service)

AGENDA

FMCSA publishes final rule on non-domiciled CDLs

The Federal Motor Carrier Safety Administration has cemented its rule regarding non-domiciled CDLs. The final rule allows CDLs only for particular visas and declines licenses for DACA recipients, among other provisions. The rule underwent a comment period in which nearly 87% of commenters opposed the rule.

Why this matters: DOT officials say the CDL changes will help boost road safety, while many trucking groups assert there's no evidence of that. Fleet executives may end up recruiting from a smaller pool of drivers going forward, and it's possible some of their current drivers are at risk. (Overdrive)