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Rising Fuel Prices: An Ongoing Problem for Drivers

5 Tips for Conserving Fuel

These days, the glowing numbers on gas station signs cause drivers to wince as they pass. What once was affordable for most drivers now costs anywhere between $4 and $6 a gallon in some areas. This surge in fuel prices has become a top concern for consumers, affecting drivers and the broader economy. 

Higher fuel prices, especially diesel, strain owners and operators, affect the cost of goods that require transportation via truck, and so much more. In this article, we will look at the reason behind increasing fuel prices, who they affect, and what drivers can do to conserve their fuel.

Fuel prices continue to climb, but why?

The Russian invasion of Ukraine primarily influences today’s surging fuel prices, however, prices were on the rise well before the war. Before the COVID-19 pandemic settled in, energy producers reduced their investments and cut back on projects that were less than profitable. Once the pandemic hit, these same producers minimized output even more as the need for petroleum diminished due to quarantine restrictions.

The economy has since reopened, goods are being manufactured, and the roadways are filled once again. The reboot of society led to a surge in demand and a tightening oil market that led President Biden to tap into the Strategic Petroleum Reserve in hopes of leveling prices, but this plan failed.Once Russia invaded Ukraine, the already fragile energy market was sent spiraling downward. With Russia being the largest oil exporter in the world and the U.S.’s ban on Russian oil imports, U.S. oil reached its highest price point since 2008 at $130 per barrel.  

Oil companies are now reluctant to drill and face obstacles like labor shortages and increasing prices for parts and raw materials. On top of that, Russian petroleum product exports are being sanctioned, pushing the price of diesel higher than ever.

All of these factors contributed to the national average of a gallon of gas reaching $4.589, according to AAA. Now, every state in the U.S. averages more than $4 per gallon. In some areas, like California, they’re averaging above $6. And diesel prices retail at an average of $5.577 a gallon, which is 76% higher than last year’s average.

Who is affected by rising fuel prices?

Higher fuel prices impact not only consumer spending but also company spending, affecting many industries, including transportation. For instance, Target is the latest company to speak out about its struggles with higher costs. Target CEO Brian Cornell said, “We did not anticipate that transportation and freight costs would soar the way they have as fuel prices have risen to all-time highs.” Cornell estimates that the higher fuel costs will run the company approximately $1 billion in incremental costs this fiscal year. Walmart executives had similar concerns, “fuel ran over $160 million higher for the quarter in the U.S. than we forecasted.”

But the prices aren’t just impacting domestic costs. Companies like Tractor Supply and Amazon have noted that their import freight costs have increased over the last year. Currently, the cost to ship an overseas container has doubled compared to pre-pandemic rates. Even the airline industry is experiencing the effects of higher fuel prices. The CEO of United Airlines explained that jet fuel prices would cost the company $10 billion more than in 2019.

The ultimate worry for freight companies is how the higher fuel prices will affect the overall cost of operations. A carrier moving shipments from the West Coast to the East Coast will have to pay approximately $1,000 more in fuel costs than in 2021. If things continue in the same direction, this inflation will impact truckload shipping, ocean freight shipping, air cargo shipping, and train shipping costs, which will ultimately cause a domino effect throughout the economy.

Source: truckstop.com

5 Tips for Conserving Fuel

Conserving fuel is no longer just a want or a good deed. It’s now something we must do to save money. In the U.S. alone, the trucking industry consumes approximately 38 billion gallons of diesel annually. And 39% of drivers’ operating expenses come from fueling their rig. So, drivers must do what they can to improve their fuel economy.

Here are a few ways they can do so:

1. Drive more responsibly

Follow speed limit signs and take things slow. Studies show that every 5 mph over 65 mph yields a 7% decrease in fuel economy. You can also do things like:

  • Switch off the air conditioner (weather permitting)
  • Avoid idling unnecessarily
  • Turn off your engine when not in use
  • Use cruise control on the highways (if possible)

2. Improve your truck’s aerodynamics

Research shows that about half of a truck’s fuel is consumed, overcoming aerodynamic drag while traveling at highway speeds. Lucky, there are a few simple ways to improve your truck’s aerodynamics, including using a roof-mounted cab deflector, a deep angled bumper, or a sun visor to push wind to the top of your trailer. You can also use side fairings to avoid turbulence underneath your trailer.

3. Be conscious of the traffic conditions

Every time you have to restart your rig due to stop-and-go traffic, you use a considerable amount of fuel. So, it’s essential to use your GPS and monitor traffic conditions to get to your next location efficiently. Avoiding traffic will also help your clutch last longer.

4. Engine oil & fuel

By simply using the recommended grade of motor oil for your truck, you could improve your fuel mileage by up to 2%.

We also recommend:

  • Filling up your truck first thing in the morning
  • Pump fuel at a low setting to minimize vapors
  • Fill up well before you reach ‘Empty’

5. Conduct regular maintenance checks

Regular maintenance can go a long way in saving you fuel.

Maintenance practices include:

  • Filling up your tires and changing them when needed
  • Checking your trailer and drive axle alignment
  • Watch for any fluid leaks
  • Invest in an engine overhaul if yours is older
  • Replace any old or worn-out parts, like fuel injectors

At the end of the day, improving your fuel efficiency by 2% to 3% can help you save your hard-earned money and keep your rig running like new.

 

 

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What to Expect from Amazon Prime Day 2022

Inflation, Labor Shortages, and the Supply Chain

Every year, deal seekers prepare for the highly-anticipated sales event, Amazon Prime Day. The retail giant will hold the two-day summer sale on July 12th and 13th and offer significant savings on thousands of products. Amazon recently gave Prime members a sneak peek at this year’s best offers, which include electronics, household staples, beauty products, and more. And while members won’t know the exact details of the sale until midnight EDT on July 12th, we can guess it will be comparable to previous Prime Days.

However, unlike in past years, this year’s event will happen despite some obstacles. So, what can the industry expect this Amazon Prime Day?

Potential obstacles facing Amazon Prime Day

Amazon Prime Day is held annually and offers members a chance to benefit from exclusive discounts and extremely low prices on thousands of items. This year’s sale is coming at an opportune time with some recent issues curbing consumer spending and, in turn, threatening the success of those in the shipping industry. 

So, while more sales are anticipated, we do expect a few impediments will get in the way, including:

1. Inflation

In May, the inflation rate was at 8.6% –the largest year-over-year increase the country has seen in 40 years. The elevated rate increased the prices of goods and services and decreased consumer spending. However, Amazon swears that its member-exclusive sale will change the tide with savings on products from national brands and small businesses. And there is nothing more valuable than a great deal in a tough economy. As the holiday season approaches and more companies attempt to unload excess inventory with low prices and sales events, consumers will resume spending, and the shipping industry, including the supply chain, will recover. 

2. Supply chain struggles

While Amazon still promises that Prime Day will be full of deals for various products, there’s no denying that this year’s selection will differ from previous years. While there will still be a variety of goods, it will be far less than what members are used to due to the shape of the world’s supply chain. But the retailer isn’t giving up. They accumulated their stocks and upped their inventory by almost 47% from Q1 2021 to Q1 2022. The retailer’s sales also increased by about 8% during that same period. So, the supply chain may see further strain depending on how Amazon handles this year’s exclusive event. But, as those within the supply chain have proven time and time again, there’s nothing they can’t handle.

3. Amazon labor shortages and unions

On top of mounting inflation and unrelenting supply chain issues, Amazon is also battling some in-house challenges. If things stay on their current trajectory, the retail giant could run out of workers by 2024. This loss could cripple Amazon’s service quality and growth plans. The memo that explained the labor shortage also explained how the crisis could be delayed, including raising wages and increasing automation. Still, the only way the company could significantly change the course they are on is by altering the way it manages its employees. The company also predicts that it could lose the availability of staff in some regions by the end of 2022. This loss could damage the potential for future sales events, like Prime Day, and, in turn, take a toll on those within the transportation industry who rely on Amazon’s sales.

Amazon Prime Day still has a lot to offer consumers

At the end of the day, Amazon is offering significant discounts on Prime Day that will draw people in regardless of the state of the economy or the supply chain. The deals will be available for items like Apple AirPods, TVs, gaming systems (PS5, Xbox, and Nintendo Switch), Echo devices, Fire TV Sticks, robot vacuums, and gift cards. To get people excited for Amazon Prime Day, the retailer is also offering early Prime Day deals to drum up some business that will have people returning for the actual sale.

As previously mentioned, those working within the supply chain could feel some strain during this time of year, but there will still be much to gain. As people hunt for online deals, supply chain workers and transportation professionals will be needed more than ever, meaning job security amid a shaky economy.

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What is the COVID HOS Emergency Declaration?

The COVID-19 pandemic changed the way many industries executed their operations and has had a lasting impact that the world still hasn’t been able to shake. In recent years, federal government agencies have declared various guidelines and regulations pertaining to the transportation industry, including the HOS Emergency Declaration.

What was supposed to be temporary measures has now been extended and could possibly carry on even further. So, what is the emergency declaration and how does it affect our country’s drivers?

What is the COVID HOS Emergency Declaration?

After COVID-19 was declared a national emergency, the Federal Motor Carrier Safety Administration (FMCSA) issued an Hours of Service (HOS) Emergency Declaration which suspended federal regulations and offered relief for fleets engaged in COVID-19 emergency relief operations. 

The declaration ensured that transportation services were distributed properly and vital supplies were delivered to areas in need of aid. However, it came with a number of restrictions that excluded some drivers and carriers over others. 

As previously mentioned, the declaration was originally supposed to end on April 12, 2020, but has since been extended and expanded upon multiple times. These amendments to the HOS Emergency Declaration include things like, limitations to the transportation of goods like “(1) livestock and livestock feed; (2) medical supplies and equipment related to the testing, diagnosis, and treatment of COVID-19; and (3) supplies and equipment necessary for community safety, sanitation, and prevention of community transmission of COVID-19, such as masks, gloves, hand sanitizer, soap, and disinfectants.” And recently, the declaration has been extended yet again. 

What’s the latest on the COVID HOS Emergency Declaration?

The FMCSA has recently announced another extension of the emergency declaration amid the dwindling number of COVID-19 cases and the return to national normalcy. The FMCSA also confirmed that carriers would still be relieved from maximum drive-time limits within the hours of service for another 90 days starting June 1st and lasting until the end of August.

The carriers that can take advantage of the extended relief are those who carry commodities in “direct assistance in support of emergency relief efforts related to COVID-19.”

These commodities include:

  • Community safety supplies and equipment (disinfectants, gloves, hand sanitizer, and soap)
  • Diesel, diesel exhaust fluid (DEF), Gasoline, ethyl alcohol, jet fuel, and heating fuel (propane, natural gas, and heating oil)
  • Food, paper products, and grocery items for emergency restocking
  • Livestock (and livestock feed)
  • Medical supplies related to COVID-19, constituent products, and vaccine supplies/kits

Some commodities that were once on the declaration are no longer covered, including building materials, vehicles, and more.

Will the HOS Emergency Declaration be extended again?

The overall goal is to eventually end the HOS Emergency Declaration. However, this won’t happen until a number of things take place. For starters, the U.S. government must deem that we are no longer in a national emergency. When this will happen is unpredictable since emergency declarations bring in discretionary funds and opportunities for various federal agencies. The troubles within the supply chain have also had an influence on the extensions of this declaration by forcing the FMCSA to waive certain parts of the HOS for haulers moving goods in direct-assistance efforts. So, as we continue to experience supply chain challenges alongside inflationary pressures, another extension could definitely be on the table.

In the meantime, industry experts are hopeful that the span of the current extension will narrow as COVID-19 cases continue to lessen. The FMCSA has also said that they intend “to continue to closely monitor the safety impacts of the relief granted under this extension. … As necessary, FMCSA may take action to modify the Emergency Declaration, including scaling back the commodities covered by the Emergency Declaration or changing the restrictions associated with transporting the commodities.” Or they will move to terminate the hours relief sooner than the end of August if conditions permit.

Frequently Asked Questions from the FMCSA

Question:  Does the current COVID-19 Emergency Declaration include the transportation of fuel?
Answer:  Yes, the Emergency Declaration includes the transportation of fuel including gasoline, diesel, jet fuel, ethyl alcohol, and heating fuel including propane, natural gas, and heating oil.

Question:  What does the May 13, 2022 amendment of the COVID-19 Emergency Declaration change?
Answer:  FMCSA amended the commodities covered by the Emergency Declaration to include heating fuel including propane, natural gas, and heating oil.

Question:  Why did FMCSA amend the COVID-19 Emergency Declaration?
Answer:  FMCSA amended the Emergency Declaration to address particular fuel needs arising out of the ongoing emergency and to broaden the categories of fuel shipments covered. 

For more information, visit the FMCSA website.

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Is Another Trucking Bloodbath on the Horizon?

In 2018 the trucking industry was flourishing. Drivers were earning more than ever before, which quickly drove people into entering the career. But, in 2019, things took an unexpected turn. As things grew, the demand for trucking services declined, leading to more than a thousand trucking companies going out of business. The incident was later coined “the bloodbath of 2019”.

Now, experts are certain another “bloodbath” could be on the horizon. The question is: are they right?

What caused the bloodbath of 2019?

2017 through 2018 was a prosperous time for carriers in the trucking industry, but when 2019 rolled around, the market dried up and led to a period of contraction. This trying time was labeled as a trucking bloodbath due to the operating ratios for dry van carriers averaging over 100%. Carriers also battled oversupply, lack of demand, and fallen investments. In 2018, fleet owners thought it wise to invest in new trucks, but their investments later proved unbeneficial as 2019’s daily truckload volumes were over 4% under 2018’s volumes. Combined, these factors contributed to many trucking companies closing shop and hundreds of industry professionals without a job.

What is causing the latest trucking bloodbath?

The COVID-19 pandemic has wreaked havoc on global freight markets for the past two years. As we’ve attempted to move forward, the market has taken an unfavorable downturn, and the result could be as detrimental as what we saw in 2019.

Unfortunately, truckloads have already been relatively soft. While March has proven to be a stronger month in previous years, this year’s has not seen the same surge. A few factors contribute to the market’s current state, and industry professionals worry they could be enough to spark yet another bloodbath.

The contributing factors include:

1. Soft truckload volumes and spot rates

In 2020, inflation began creeping up, causing many consumers to slow down on spending and truckload volumes to lessen more and more. This slow truckload decline only worsened when Russia invaded Ukraine at the start of 2022. For the past few years, industry experts have monitored the dwindling volumes and confirmed that spot rates are also falling fast.

With too many trucks on the road and insufficient freight to load them with, spot rates have skyrocketed. In January, spot rates reached $3.83 per mile, and while they are now down to $3.42 per mile, many experts aren’t exactly sure how the rest of the year will play out.

2. Inflation and high fuel prices

As most Americans know, fuel prices, along with everything else, are higher than it’s ever been. This economic chaos is responsible for curbing consumer spending, therefore affecting truckloads and conjuring the foreseen bloodbath.

3. Consumer spending on the decline

After years spent indoors (thanks to the COVID-19 pandemic), consumer spending on physical goods has slowed, while spending on travel and entertainment has increased. Unfortunately, experiences do not drive much in the way of freight. This spending trend has taken much longer to balance out than most experts expected. In fact, in February, retail sales only reached 0.3%, and they haven’t been much better in the proceeding months.

 4. Inventory struggles

The lack of inventory has also played a significant role in why many experts believe another bloodbath is on the horizon. After the pandemic, transshipment infrastructures were clogged up, and freight velocity slowed. Many companies were left with barren shelves and unhappy customers. So, the same companies ordered more stock to safeguard themselves against inventory outages. However, this plan backfired and left businesses with more than they needed after prices spiked and consumers cut their spending habits. Now, experts believe the purchasing of goods will slow to work off excess inventory, and truckloads will continue to remain light.

Will some fleets survive the bloodbath?

So far, most of the larger trucking companies have had decent first-quarter earnings this year. According to market projections, analysts believe that the more established fleets will continue to prosper. However, smaller companies may not be so lucky.

Larger carriers don’t have to worry about spot loads or adjust pricing to account for customer rate cuts, whereas smaller fleets don’t have the same luxury. However, both small and large companies should still be cautious. In 2019, hundreds of fleets went bankrupt, three times as many as the year prior. So, when it comes to fleet survival, it really depends on several factors, such as location and client relations.

Moving forward, owners and operators can expect lower rates and an influx of new fleets entering the market, even after loads soften. And with everyone chasing after high spot volumes, fewer opportunities will be available. And as we saw in 2019, the declining spot rates, dwindling volumes, and increased prices will continue to push fleets into another trucking bloodbath. We all just have to hang on for the ride.

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Top 10 Father’s Day Gifts for Truckers

Father’s Day is right around the corner! Have you gotten something for your trucker dad? Well, if you aren’t sure what to get for your truck-driving dad, we have some ideas that will make his life on the road more enjoyable.

Whether your goal is to keep dad comfortable or entertained or just make his life a little more convenient, these gifts are sure to impress. After all, he works hard all-year-long and deserves to be treated extra special on his special day.

Here are our top 10 picks for your favorite truck driver.

1. A Model of His Truck

Truck drivers are incredibly proud of their rigs and the work they put into them. Some even go as far as to customize them with bold paint jobs. So, if your dad’s truck is his pride and joy, then a model of his rig would be the perfect gift. You could even customize your model to feature your dad’s name or go for a replica. Either way, your trucker dad is sure to display his gift with pride.

2. A New Truck Seat

Drivers spend a lot of time on the road. Some can spend up to 12 hours a day or more hauling freight. And with so many hours spent in the same old seat, your dad could experience persistent back pain or chronic leg problems. That said, a new seat could be a nice upgrade for dad. Be sure to choose a seat that is on a suspension system with ergonomic support. A good seat will not only be comfortable, but it will also be good for dad’s health.

3. A Wireless Headset

Truckers rely heavily on their headsets. If your dad’s headset is on the older side, consider upgrading it for Father’s Day. Today’s headsets often have noise-canceling capabilities and crisp, clear sound quality. Some headsets even offer mute capabilities, speed dial, and more.

4. Audio Books

Nothing helps pass the time quite like a good audiobook—gift dad with a subscription to an audiobook site. He can browse through the hundreds of titles and genres and choose what he likes. He can also search through a list of audiobooks where truck drivers share their stories.

5. A GPS

Traveling to an unfamiliar place can be stressful, even more so when hauling a larger rig. Help dad stay on the right path with a trucker-friendly GPS. A GPS specially built for truck drivers offers trucking routes that help commercial drivers navigate complex city streets and new locations.

6. A Thermoelectric Cooler

An iceless cooler is a perfect gift for a trucker who’s always on the go. They keep refrigerator items nice and chilled and are powered by a power cord that plugs directly into the dash. And while they come in a few different sizes, some are large enough to hold up to 44 cans. 

7. A Heavy-Duty Phone Case

Life on the road is filled with tough surfaces and hard knocks. Save your dad from a cracked screen or broken phone by gifting him with a phone case that can keep up with his lifestyle. A heavy-duty phone case can be the difference between your dad having a working, damage-free lifeline.

8. A SiriusXM Radio Subscription

Any truck driver will tell you there’s nothing quite like driving on the open road with your favorite tunes filling your cab. This Father’s Day, give your dad the ultimate music-lover gift, a subscription to SiriusXM Radio. There are over 175 channels to choose from, so your dad is sure to find a station he likes. They also offer several different subscription options so that you won’t break the bank.

9. A Power Inverter

When your dad is on the road, he shouldn’t have to worry about one of his devices being out of juice. A mobile power supply would ensure that all of his devices remained charged and ready to use! Be sure to find one that offers charging options for several different devices and is usable on and off of the truck.

10. A Sentimental Keychain

And finally, if your dad is the type that has it all, a sentimental keychain is sure to be his favorite. Go for one that says “#1 Dad” or “Drive Safe, Dad.” Whatever message you choose, he’ll think of you and how much you care every time he gets on the road.

Any of these items would make for a perfect gift and show your trucker dad just how much you care. And you can bet that any time he uses his gift, he’s sure to think of you and smile.

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Pros and Cons of Battery-Electric Trucks

Image Credit: Tesla

In today’s world, electric vehicles account for approximately two percent of auto sales, and that number only continues to grow. Now, electric semi-trucks and freight vehicles, or commercial battery-electric vehicles (CBEVs), are merging onto America’s roads and highways. Manufacturers have poured billions of dollars into developing CBEVs, and companies are slowly integrating the new technology into their fleets. And while the focus has mainly been on Class 8 trucks, automakers are introducing commercially available models in numerous classes.

So, what exactly does this electric revolution look like and who is responsible?

Who are the key creators of electric semi-trucks?

Very few automakers dared to venture into the world of EV manufacturing. However, those who did are now reaping the benefits of their investment. Currently, Volvo Trucks offers two tractor configurations for their electric Class 8 trucks, including a 4×2 and a 6×2. These trucks provide different ranges that are dependent on the amount of cargo you’re hauling and the overall size of your trailer. The manufacturer also sells an electric box truck model, which offers a range of 150 miles on a single charge. 

And in 2021, Volvo received its largest order from Quality Custom Distribution (QCD) for its VNR Electric model. The foodservice logistics supplier ordered a total of 14 electric trucks for their Southern California drivers. While the new EVs won’t significantly impact QCD’s original fleet of 700 fuel-powered trucks, it’s a step in the right direction. Daimler has also been a key player in the EV market with models like the Freightliner eM2 and Freightliner eCascadia. And while Volvo and Daimler have been innovators in the trucking industry’s EV movement, Tesla has recently unveiled what may be the new standard in trucking…

Check out the reveal of the new Tesla Semi

How will electric semi-trucks shape the future of trucking?

Experts from the U.S. Energy Information Administration estimate that battery-electric trucks will account for 31% of the industry or reach around 672 million vehicles by 2050. Undeniably, this would reshape the trucking industry and the world as we know it.

In a single day, a fuel-powered truck will be on the road for up to 11 hours, all while producing harmful emissions. And if a team of drivers runs the truck, it could be on the road even longer. But, if a company were to deploy just one EV, it would be equivalent to placing over a dozen electric sedans on the road, thus significantly reducing harmful emissions. 

The North American Council for Freight Efficiency (NACFE) created Run on Less – Electric, a trucking demonstration that set out to determine the pros and cons of EVs. The run further confirmed that CO2 and particulate emissions would be significantly reduced by replacing traditional trucks with electric ones.

Electric trucks also reduce noise pollution and provide optimal safety through intuitive technology and design measures. For instance, the Tesla Semi is built with active safety features that help to prevent jackknifing. Volvo Trucks also attempts to provide enhanced safety through a new, patented safety feature called Active Grip Control. The feature “improves stability, acceleration, and braking in slippery conditions.”

What concerns come with battery-electric trucks?

While there are clear advantages to using BEVs, there are some concerns. 

The main concerns include:

  • The effects of extreme weather and temperatures on electric trucks.
  • Maintenance costs and schedules.
  • Availability of parts and services.
  • The overall safety of electric trucks.

Thankfully, some testing and trial runs have shed light on the above mentioned issues. The NACFE’s Run on Less – Electric found that extreme weather and temperatures don’t pose any serious threats to BEVs’ overall performance or vitality. 

RoL-E also proved that overall maintenance costs and failure rates are less than internal combustion vehicles. However, when the microchip and automotive technology shortage struck the nation in 2020, many EV manufacturers found themselves between a rock and a hard place. Automakers were not only unable to produce new electric models, but they weren’t able to make most of the necessary parts or components. This led many owner-operators to question whether or not moving to BEVs would be wise, considering the unpredictability of the future.

What should fleets keep in mind moving forward?

Before fleets commit to transitioning to BEVs, there are a few things that fleet managers and owner-operators should keep in mind, including:

  • How many miles are being driven?
  • How often would charging need to take place for each truck?
  • Will charging stations or at-home charging need to be installed?
  • How many BEVs would be needed?
  • Would a partial conversion make more sense than replacing the entire fleet? Or vise-versa.

Fleet managers must also consider a maintenance plan for their electrified fleet. Industry experts who’ve made the move recommend “[getting] your mechanics in there and [getting] them trained” in the new-age technology. Finally, if owner-operators choose to transition to CBEVs, they must implement proper safety protocol and invest in new safety equipment, including arc lash shields, dielectric boots/shoes, electrical safety gloves, insulated tools, etc.

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