GRAIN VALLEY, MO. (RFD-TV) — Rising diesel prices, higher insurance premiums, and proposed regulatory changes are adding pressure to America’s trucking industry. As a new Congress prepares to take shape, independent drivers and small carriers are hoping lawmakers will reconsider policies that could increase operating costs and make it harder for smaller businesses to stay on the road.
Lewie Pugh with the Owner-Operator Independent Drivers Association (OOIDA) joined Market Day Report to discuss the challenges facing truckers and the industry’s priorities for the next Congress.
Small Trucking Businesses Feel the Cost Pressure
In his interview with RFD-TV, Pugh said independent drivers and small trucking companies are especially vulnerable to higher fuel costs because they don’t have the same purchasing power as larger fleets.
He said more than 96 percent of trucking businesses operate 20 trucks or fewer, while 52 percent are one-truck owner-operators.
“They don’t have the volume or the buying power when it comes to buying fuel like the big boys do to save money,” Pugh said. “They also sometimes don’t have the leverage to put fuel surcharges on.”
That leaves smaller operators absorbing more of the increases at the pump.
“This is a direct hit in the wallet,” he said.
Pugh also pointed to rising insurance premiums, which he said have been driven higher by large lawsuit verdicts. He said the combination of fuel and insurance costs is making it increasingly difficult for independent drivers to manage their businesses.
Proposed Insurance Changes Raise Concerns
One of OOIDA’s biggest concerns heading into the next Congress is proposed legislation that would increase minimum liability insurance requirements for trucking companies.
Pugh said trucking companies currently carry at least $750,000 in liability coverage, with many carrying $1 million policies. He said some proposals would raise the minimum to between $2 million and $3 million.
Supporters of higher limits argue that insurance requirements have not kept pace with inflation.
Pugh disagreed, pointing to research he said shows that 99.4 percent of trucking accidents involve damages below the current $750,000 minimum.
He argued that increasing coverage requirements could put additional financial pressure on small carriers without improving highway safety.
Higher Premiums Could Affect Safety Investments
Pugh said the average trucker is already paying about $17,000 per vehicle each year for insurance. If premiums doubled or tripled, he said some smaller businesses could struggle to afford coverage.
He is concerned that higher costs could force experienced drivers out of the industry and leave less money available for equipment maintenance and other business expenses.
“Every time you take more money away from a small-business trucker, that’s money they don’t have to spend on their family, to buy goods, to fix things,” Pugh said.
He added that experienced drivers play an important role in moving goods safely, including agricultural products from farms to markets.
OOIDA Prepares to Work With New Lawmakers
Pugh said OOIDA plans to meet with incoming members of Congress to explain the challenges facing independent drivers and small trucking businesses.
Before moving into lobbying, Pugh spent 25 years as a truck driver. He said that experience helps him bring a practical perspective to conversations with lawmakers.
“Most people who come to Congress have no idea about trucking,” Pugh said. “We’re going to be getting in front of new lawmakers, people we’ve never met, introducing them to the Owner-Operator Independent Drivers Association, talking about safety and highway safety, what’s good for trucking and what’s not good for trucking.”
He said building relationships with new members of Congress will be important as the industry works to advance its priorities.
OOIDA hopes lawmakers will pass a new surface transportation bill next year. Pugh said priorities include expanded truck parking, restroom access and keeping proposed increases to insurance minimums out of the legislation.
