Twin 33s Can Offer Benefits
Analysts, Fleets Cite Cost Reductions, Less Traffic
This story appears in the July 6 print edition of Transport Topics.
The twin 33-foot trailer, the first potential nationwide truck-size change in nearly three decades, could generate attractive cost reductions for fleets and broad public benefits in reduced truck traffic, industry experts said.
Legislation that would increase maximum lengths for pup trailers to 33 feet from 28 feet has passed the U.S. House and a key Senate panel. The proposal is expected to be addressed by the full Senate this year.
So far, there is no change to the 80,000-pound weight limit.
If the change becomes law, 33-foot trailers would create an 18% productivity gain for less-than-truckload and parcel carriers. The advent of 53-foot trailers in the 1980s was the last national truck size increase.
鈥淔or the [LTL] carriers, the big thing is cost reductions, with fewer drivers, lower fuel expense and fewer miles driven,鈥 Michael Scheid, a senior analyst at SJ Consulting in Sewickley, Pennsylvania, told Transport Topics last week.
Full adoption of 33-footers would require about 25,000 fewer trailers to move the same amount of freight and cut miles driven by 1.3 billion annually, Scheid said.
He gauged $1.7 billion in annual cost savings for LTL carriers at full implementation, excluding the cost of new equipment. Package carriers could save more than $1 billion, he added. LTL carriers now run about 140,000 28-foot pups, with about 80,000 used to carry packages at UPS Inc. and FedEx Corp., he said.
FedEx and Estes Express Lines executives said they strongly support the move.
鈥淣ow is the time to introduce a new era of efficiency and safety to the market through use of extended twin trailers,鈥 said Michael Ducker, president of FedEx Freight, the nation鈥檚 largest LTL carrier. 鈥淢ore capacity means fewer trips, fewer trucks and less congestion, resulting in better environmental stewardship.鈥
鈥淲e support the current legislation in Congress and feel the added cube of five extra feet per trailer with no weight-limit increase will significantly reduce truck traffic,鈥 said Rob Estes, CEO of Estes Express.
The Association of American Railroads, a staunch opponent of any truck size and weight changes for decades, is not taking a position on twin 33s, spokesman Ed Greenberg told TT.
鈥淸Size and weight] limits were imposed largely because of concerns about the safety of longer and heavier trucks and the uncompensated highway damage they cause,鈥 according to AAR鈥檚 current policy.
After a Senate committee adopted the 33-foot trailer provision June 25, the Coalition for Efficient and Responsible Trucking urged the Senate to pass the bill.
鈥淔or the first time in more than three decades, national highways are posed to see a meaningful reduction in truck traffic along with safety provisions that, taken together, will prevent more than 900 highway crashes per year,鈥 the group said. Its members include UPS and Con-way Freight.
Some obstacles remain, including a potential veto of the funding measure by President Obama, as well as opposition from several Democratic senators and interest groups.
For example, Public Citizen late last month said truckers are 鈥渦sing backdoor tactics to weaken truck safety rules.鈥
Its president emeritus, Joan Claybrook, in a statement envisioned 鈥渁 grotesque increase in the size of trucks.鈥
Elsewhere, some trucking executives said they see limited applications.
鈥淲e are not really excited about [33s],鈥 said Ed Vander Pol, co-president of Oak Harbor Freight Lines Inc.
鈥淲e would prefer triple trailers with 28-foot pups,鈥 Vander Pol said, because it would better fit the LTL fleet鈥檚 operating plan on key routes.
鈥淭riples have been proven to be very safe,鈥 he added, though he noted that state regulatory hurdles and opposition from railroads to using them would have to be overcome.
Joe Finney, chief operating officer at Dependable Highway Express, said, 鈥淲e would use very specific routes to run the equipment to get maximum utilization.鈥
Longer trailers might help to attract backhauls from truckload fleets, he said.
Finney also noted equipment-related factors, saying the company already has trailer orders stretching into next year. If the longer trailers are allowed, he said, Dependable will switch orders to 33-footers within the capabilities of the trailer makers.
Tom Connery, president of New England Motor Freight, said, 鈥33-foot trailers are not as critical to us because we don鈥檛 really run pups.鈥
His company primarily uses 48- and 53-foot trailers for linehauls. Connery also said, 鈥淲e鈥檙e certainly in favor of any way to increase productivity.鈥
SJ鈥檚 Scheid projected a 6-point operating ratio improvement through reduced linehaul wages, fuel and maintenance costs.
He added that 33-foot trailers could become a competitive advantage for some, though 鈥渋t is a big expense to replace those trailers. A lot of companies won鈥檛 be able to afford to replace them.鈥
鈥淚f it happens, we would anticipate a quick conversion by most LTL fleets,鈥 Stifel Nicolaus analyst David Ross said in a report to investors.听
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