Tuesday, April 28th, 2015

A Simple Shift in Shipping Regulations Could Net the American Economy $27 Billion in Annual Savings

Truck in portThe shipping economy operates adjacent to the manufacturing economy, and increased efficiency in either can often yield benefits in both. The advent of plastic materials decades ago enabled trucks to carry more products for longer, all while using only a fraction of the fuel because of the lightness of plastic materials.

That’s just one example, and the industries have traded innovations back and forth for decades. Most recently, however, a new industry group comprised of some of the biggest names in the shipping world is doing its best to save manufacturers money. The Coalition for Efficient & Responsible Trucking (CERT) counts Conway, Estes Express Lines, and UPS as members, among several others. The group has only one goal: a five-foot increase in the maximum length of trailers used in double configurations, from 28 feet, to 33 feet.

The idea is elegant in its simplicity, but could still have wide-ranging effects on a multitude of sectors. According to CERT, under the current 28-foot limit, trucks routinely “cube out before they gross out,” which is to say they fill all of their available volume long before they brush up against the 80,000 lbs. gross weight limit. This, simply put, makes shipping much less efficient, and saddles businesses with $27 billion per year in avoidable, additional shipping costs. Congressional authorization to extend the trailer length to 33 feet could put those costs back in the pockets’ of companies and consumers.

It’s a practical solution arriving at just the right time for the shipping economy and those industries that depend on it. “Every year, millions of tons in goods are sent across roads in shipments that don’t quite fit in a 28-ft. trailer, but aren’t nearly enough to require a full 48-ft. or 53-ft. trailer,” CERT says in a fact sheet. “As a result, more than 6.6 million avoidable truck trips occur every year. This inefficiency is only expected to worsen: over the next decade, less-than-truckload (LTL) shipments will grow from 145 million tons to an estimated 204.6 million tons.” Before that happens, however, CERT, SPI and its other industry partners are hoping Congress authorizes the five-foot extension.

More than just reducing inefficiencies and putting $27 billion back into the economy, CERT’s suggested legislative fix will also yield significant environmental benefits. By eliminating those 6.6 million unnecessary truck trips that currently happen each year because of the currently outdated regulations, extending the length of the trucks would result in 204 million fewer gallons of fuel being used by trucks, and reduce carbon emissions by 4.4 billion pounds per year.

If you need any more reason to support CERT, on their website they note that their simple suggested legislative change would eliminate 1.3 billion miles in truck traffic nationwide, making the 42 percent of the nation’s highways that are congested much clearer, and preventing 912 crashes annually.

SPI supports CERT’s plan and stands behind their efforts. The entire $375-billion plastics industry stands behind them and looks forward to repaying the favor through innovation.

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