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SHIP IT Act Aims to Boost Supply Chain and Support Truckers

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SHIP IT Act Aims to Boost Supply Chain and Support Truckers
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On Tuesday, Reps. Dusty Johnson and Jim Costa presented the Safer Highways and Increased Performance for Interstate Trucking Act to the House in an effort to overhaul America’s supply chain logistics. Aimed at improving recruiting efforts of truck drivers while boosting shipping capacity nationwide, this new bill provides incentives as a way of encouraging retention within the profession.

The SHIP IT Act, or HR471, would:

  • Allow states to issue special permits for overweight vehicles and loads during emergencies
    • Allow truck drivers to apply for Workforce Innovation and Opportunity Act grants
    • Attempt to recruit truck drivers to the industry through targeted and temporary tax credits
    • Streamline the CDL process, making it easier for states and third parties to administer CDL tests
    • Expand access to truck parking and rest areas for commercial drivers

The bill could see truck drivers across the nation benefit from potential tax credits. Experienced drivers who logged at least 1,900 hours in a year may be eligible for a $7,500 incentive, while those starting out in the industry can access up to $10,000.

“Americans experienced a slew of freight disruptions during and after the COVID-19 pandemic,” Johnson said in a news release. “Last year we addressed ocean shipping reform, and it’s clear that updates are needed for other parts of the supply chain. The SHIP IT Act will bridge gaps, keep costs down for consumers, and make it easier for shippers to move products across the U.S.”

The Shippers Coalition, the International Dairy Foods Association, the National Milk Producers, Consumer Brands Association, and heavy-duty suspension manufacturer Hendrickson expressed support for the bill.

“The SHIP IT Act is commonsense trucking reform legislation that will help dairy companies overcome many of the current supply chain challenges facing our industry,” International Dairy Foods Association President Michael Dykes said. “The legislation would bring the U.S. supply chain into the 21st century to meet the needs of shippers, reduce regulatory burdens that cost shippers millions of dollars a year, create good paying jobs and support the ambitious sustainability goals of dairy businesses.”

Costa said the bill is necessary to ensure that the nation’s supply chain can continue to run smoothly.

“Disruptions in our trucking supply chain continue to drive up costs and create uncertainty for American consumers and producers,” Costa said. “We need to recruit, train, and retain truck drivers to keep our supply chain moving, while also updating best practices to improve trucking to fit our modern economy. That is why we introduced this bipartisan legislation to strengthen the workforce and make it easier to move products across the country.”

The Owner-Operator Independent Drivers Association supports some aspects of the bill but believes it needs some tweaking.

“We appreciate Rep. Johnson’s longtime support of expanding truck parking capacity, and are glad that he and Rep. Costa recognize the importance of addressing the truck parking shortage to help keep drivers safe and improve supply chain performance,” OOIDA Executive Vice President Lewie Pugh said. “However, the bill misses the mark by failing to fix the underlying causes of the driver retention problem in trucking, including a lack of adequate compensation from carriers and a failure of shippers and carriers to value any of a trucker’s time. We look forward to working with Reps. Johnson and Costa to advance policies that support truckers and ultimately improve the movement of goods throughout the supply chain, instead of policies that subsidize big businesses like shippers and carriers and continue churning drivers in and out of trucking.”

 

Source: Land Line

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