U.S. Trucking Curbed by Infrastructure: FedEx Freight CEO

HOUSTON, TX – The upcoming years will be tough for the transportation industry in the United States, FedEx Freight president and CEO William Logue said at the annual National Industrial Transportation League conference in Houston.

Logue praised the advancements of the industry so far, but urged industry leaders to pay attention and address the barriers to further innovation.

“Companies have become more competitive and agile through supply chain management,” Logue said.

Yet despite those advances, Logue said the nation’s transportation network is falling behind.

He asked for system improvements, which are “vital to economic growth, the creation of jobs and access to goods and services.”

Citing the U.S. Federal Highway Administration’s prediction that traffic volumes will double by 2040, he said the current infrastructure isn’t adequate to handle the growth. In fact, the infrastructure struggles to meet even the current demands.

“We must begin to address aging infrastructure across every mode of transportation,” he said. “We cannot solve tomorrow’s challenges with yesterday’s approaches.”

The problem, Logue said, is in part due to government regulations.

The new hours of service restrictions for truck drivers are said to cut productivity by two to 10 percent, he said.

And the American Transportation Research Institute’s survey shows that 80 percent of motor carriers claim they’re negatively affected by the new rules.

Logue asked attendees to consider infrastructure improvements and improve productivity by simplifying commercial processes. 

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