Possible Change to Hours of Service
Texas Representative (R) Brian Babin introduced a bill to modify the 14-hour rule and allow truck drivers to take advantage of a three-hour break without counting towards the driver’s available hours. The act would eliminate the required 30-minute rest break and allow a rest break up to 3-hours. This allows the drivers to gauge their own bodies and current driving conditions to make the industry safer. In the article, Why the 14-hour clock rule is the most dangerous of them all, Croke states that regulating the hours worked does not accurately reflect if the driver is well rested. The amount of sleep and rest a driver gets should be regulated to ensure safety.
Shanghai Crude Futures Launched Monday
Shanghai crude futures launched Monday as the world’s new financial oil instrument. This is China’s attempt to host the third global crude oil benchmark price alongside WTI and Brent. Currently, WTI and Brent are traded in US dollars, whereas Shanghai is traded in yuan. This will give China more power in pricing crude sold to Asia.
China is now the world’s largest importer of crude and second-largest oil consumer. Russia, Angola, and Saudi Arabia are the top three exporters of crude to China. If China can purchase from these countries using the Shanghai, it could help break the dollar’s dominance. If successful, it could also shift other commodities to be traded with yuan.
In Other News
China’s crude futures kicked off to a roaring start on Monday as western traders and Chinese majors eagerly traded the world’s newest financial oil instrument, which many expect to become a third global price benchmark alongside Brent and WTI crude.
President Trump promised Midwestern voters that he would not abandon the rural economy by gutting the Renewable Fuel Standard (RFS). Now refineries are attempting to hijack a conversation about one mismanaged refinery, Philadelphia Energy Solutions (PES), to justify betraying that promise. They want an industry-wide handout that would undermine American energy security, hurt the struggling farm economy and destroy rural manufacturing jobs in biofuel production.
FedEx on Monday confirmed the company has placed a reservation for 20 Tesla Semi trucks. Those trucks are slated for operation in FedEx Freight’s less-than-truckload unit.
Arizona Governor Doug Ducey has suspended Uber’s self-driving vehicle testing privileges in the wake of a pedestrian fatality in Tempe, AZ last week. Uber had immediately suspended its own self-driving testing in Arizona, Pennsylvania, California and Ontario following the incident.
California wants 5 million emission-free cars on the road by 2030. China, with a far larger population, wants 7 million electric vehicles by 2025. California has a cap-and-trade program to limit emissions from power plants, factories and fuel suppliers. China is launching a cap-and-trade system to lower fuel consumption and cut reliance on oil imports.
Germany has approved the construction and operation of the Russia-built Nord Stream 2 gas pipeline, its operator and the German maritime authority said on Tuesday.
OPEC is seeking a long-term deal to cooperate on oil output controls with Russia and other non-OPEC producers, said Saudi Crown Prince Mohammed bin Salman.
Canadian railway operators see a lucrative opportunity to transport more crude oil to the United States as a rise in output force producers to find new routes to its southern neighbor.
Saudi Arabia’s sovereign-wealth fund and Japan’s SoftBank Group Corp. announced plans to launch the world’s biggest solar-power-generation project, providing another ambitious goal for two of the world’s richest investors.
Wages and benefits for truck drivers are rising in the U.S. as tight freight-hauling capacity falls short of surging demand. Annual truck-driver salaries rose between 15% and 18% from 2013 to 2017, with growth varying based on the type of fleet and the nature of the routes.
Oil prices are likely to rise this year thanks to supply disruptions and an OPEC-led deal to limit production, but doubts over the future of compliance with the multilateral agreement and rising U.S. production could stem the upward momentum.
China is taking its first steps towards paying for imported crude oil in yuan instead of the U.S. dollar, three people with knowledge of the matter told Reuters, a key development in Beijing’s efforts to establish its currency internationally.
Amid a renewed focus from the Trump administration to pass an infrastructure bill, there are encouraging signs elsewhere that Congress will increase spending on the nation’s freight network.
Texas Rep. (R) Brian Babin introduced a bill in the House on Thursday evening that will change the hours of service regulations for American truckers. The bill is intended to modify the 14-hour rule and will allow drivers to enjoy a three-hour break without the time counting against the driver’s available hours. For additional commentary on the 14 hour rule see Why the 14-hour clock rule is the most dangerous of them all.