California Air Resources Board

[pelicn]

How many of you with reefers will be effected by this?
Subject Top Page: Transport Refrigeration Unit ATCM

Since diesel particulate matter has been identified as a toxic air contaminant, the ARB adopted an Airborne Toxic Control Measure (ATCM) for TRUs and TRU generator sets on February 26, 2004.

LATEST NEWS! U.S. EPA grants ARB authorization to enforce the TRU ATCM.
On January 9, 2009, U.S. EPA approved ARB’s request for authorization to enforce the TRU ATCM, also known as a waiver from preemption. This decision was published in the Federal Register on January 16, 2009 (see Federal Register, Vol. 74, No. 11, Friday January 16, 2009, Notices, pages 3030 – 3033). This decision affects not only persons in California, but also persons outside the State who would need to comply with California’s TRU ATCM regulations to enter California with TRU engines. Therefore this action has national applicability. ARB has delayed the enforcement of the first phase of the TRU ATCM’s in-use performance standards for six months from the publication date. Therefore, the six-month enforcement grace period for TRU engine model years 2001 and older will end on July 16, 2009, and enforcement of the in-use performance standards for these model years will begin on July 17, 2009. All other compliance dates for the in-use performance standards are unaffected by this grace period. Call the TRU Helpline at 1-888-878-2826 (1-888-TRU-ATCM) for compliance assistance and review the list of compliance dates in the table below.

 

[layoutshooter]

Not yet but someday it will. So much for Inter-State commerce laws. Layoutshooter

 

[ATeam]

Here is a link to a Land Line article that explains the issue in simpler terms. While we have a pretty good idea of what to expect, we are researching the rules, now that they are in place, and waiting for guidance from our carrier before forming beliefs about how exactly we will be affected.

One way or another, our operating costs are likely to increase because of these new rules. In this situation, I am not looking so much at how Diane and I will be affected as I am looking at how to quantify the costs and pass them on to our customers.

Our long-term goals require us to stay in business to achieve them. To that end, profitability must be maintained. An aggressive government entity may decide to restrict our actions and increase our costs, but that does not mean that I have to be the one to pay the price.

Owner-operators who successfully pass costs on to their customers are the ones who will succeed and will be there tomorrow to meet their customers' needs.

Owner-operators who have not yet mastered the basics, like knowing your cost per mile, are going to find it harder and harder to survive in these recessionary and increasingly regulated times.

 

[layoutshooter]

I agree with you on most of what you say Phil. What I don't know just how much we can pass on to customers. Maybe if I was running on my own but FedEx is more or less setting the rates along with the general economy. I do know one thing for sure. Aggressive regulation will, for the most part, have an inflationary effect on everything. The price of everything will go up. What a shame since a lot of these regs are based on theory and not sound science. Layoutshooter

 

[ATeam]

I agree with you on most of what you say Phil. What I don't know just how much we can pass on to customers. Maybe if I was running on my own but FedEx is more or less setting the rates along with the general economy.

You make a good point. It is easy to beat your chest and crow about maintaining your price points and discipline when push does not come to shove. So far, we have been able to maintain a good acceptance rate and still accept only loads that meet our price point.

But what will we do if costs rise and customers are unwilling to pay? Our response will be to leave the business. We got into the business to make money, not lose it. (We are nowhere near thinking about that now. Freight has slowed, not stopped. We are doing OK, not great, but OK.)

We do not haul freight that is not profitable so a few weeks of low-paying load offers would translate into a few zero-income weeks and a high refusal percentage for us. If a few bad weeks turn into a few bad months, push will come to shove.

Our carrier could decide to dump us. The customers could remain steadfast in their refusal to pay profitable rates. Who knows?

I do know that while it might make sense to sustain some losses to make it over whatever hump you may be facing, sustaining longer-term losses with little hope of recovering later makes no sense at all.

We have other options. We do not have to be expediters. In the long run, and when push comes to shove, carriers and customers who want our services must pay our price. If they do not, we will not stay in the business and they will have to look elsewhere to find the services we provide at the quality we do.

The flip side is our responsibilty to run an efficient business and not price ourselves out of the market. The price we set must be reasonable and competitive. Otherwise, customers and carriers have no reason to even consider our truck for a load.

A CARB-related increase in our cost of doing business is not the first such increase we have dealt with. Tolls have increased. The cost of maintaining a HAZMAT endorsement has increased. As always, we will roll with the punches and counter-punches back.

 

[nightcreacher]

Phil,over the years these same prices have soured,from the price of fuel to everything you must do to maintain your truck.When times get tough,companies don't usually raise their rates,they have to keep a competitive edge with the other companies.In the early 80's we all found this out with deregulation.What suffered was the integrity of the owner operator,as he had a hard time maintaining his truck.The prices of doing business went up,and the revenue went down.You either lost your truck,or you cut costs.I hope this doesn't happen again.