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Sleep Apnea: A Growing Concern for Truckers

An estimated 1 out of every 3 truckers suffers from sleep apnea, a potentially dangerous condition where a person struggles to breathe as they sleep. This can lead to a host of dangers and medical issues—from feeling distracted and drowsy to heart attack and stroke. 

For truck drivers and the companies that employ them, this condition can lead to larger safety concerns. To safely operate their vehicles, truck drivers need to be alert and attentive at all times. Those who drive with sleep apnea symptoms may put themselves or other drivers at increased risk for accidents as the condition can affect focus and reactions, leading to fatigue-related crashes.

What is Sleep Apnea?

Sleep apnea is a condition where a person cannot breathe properly while sleeping, causing them to wake up sometimes several hundred times throughout a night. There are three types of sleep apnea:

  • Central Sleep Apnea (CSA) is when a person’s brain does not send the proper signals to the muscles that control breathing.
  • Obstructive Sleep Apnea (OSA) is when a person’s throat muscles relax as they sleep and collapse, blocking the airway.
  • Complex Sleep Apnea Syndrome (CSAS) is a combination of CSA and OSA.

People with sleep apnea may gasp for air as they sleep or snore loudly. Even though they can sleep for a full eight hours, the person will wake to feel exhausted as the constant interruptions impact the quality of their rest.

Sleep apnea can be incredibly dangerous, contributing to conditions such as high blood pressure, diabetes, morning headaches, difficulty staying asleep, attention problems, irritability, and others. Many times, a person will not know they suffer from sleep apnea unless told of potential symptoms—something that may be difficult for truckers and owner/operators who tend to spend lots of time alone.

Who is at Risk for Sleep Apnea?

Anyone can have sleep apnea regardless of age, gender, or ethnicity. However, there is a statistical correlation between the size of a person’s neck and their body mass index to sleep apnea sufferers.

People who have a larger neck size or are overweight have a higher chance of suffering from sleep apnea. A sleep study—done either at a sleep lab or in some cases at a person’s home—can help determine if someone suffers from the disorder.

How Do You Treat Sleep Apnea?

Once diagnosed, a sleep apnea sufferer may be prescribed one of several treatments. A Continuous Positive Airway Pressure (CPAP) machine is typically the most common remedy. This device delivers air pressure through a mask placed over a person’s face that can help keep their airway open.

Other treatment options include a Mandibular Advancement Device, or MAD, which is a custom-designed mouth guard to help keep the throat open. Some sufferers simply sew a tennis ball to the back of their sleeping clothes to stop them from lying on their back.

More severe treatments include surgery or implants, although the most common way to relieve sleep apnea is to lose weight.

What Truckers Need to Know About Sleep Apnea

Sleep apnea among truckers has been a concern for more than two decades. Some companies require drivers who meet certain criteria—either for age, body mass index, or neck size—to complete sleep studies to see if they suffer from apnea, although there is no formal regulation.

Some experts, including P. Sean Garney, vice president of Scopelitis Transportation Consulting, believe formal regulation may happen under the administration of President Joe Biden. One issue for trucking companies is the cost of sleep studies, which can be expensive both for drivers and for companies.

Many organizations have started working with organizations like SleepSafe Drivers, a third-party sleep apnea and fatigue-management service, for coaching and monitoring. With such a high number of drivers at risk for the condition, trucking companies see long-term value in finding ways to help those at risk, even before regulation makes it mandatory.

Even if a driver’s company does not require it, or if they work as an owner/operator, there is a benefit in getting tested for sleep apnea. As mentioned, several potential remedies can help a person feel more awake, alert, and calm during the day, reducing the potential for dangerous accidents. For truckers who spend their workday behind the wheel, they must do so at their full physical and mental capability for their sake and those sharing the road.

Used Truck Prices Continue to Skyrocket in 2021 – Here’s Why

The market for used trucks has hit one of its highest points in history—with no sign of slowing down.

ACT Research reported that in March the average used Class 8 truck brought the third-highest price on record, jumping to $52,388 per sale from $43,791 just a year before. The all-time high of $55,000 was recorded in 2015 and may be in jeopardy over the coming months and years. Technavio, a global technology research company, estimates that the used truck resale market will expand at a compound annual growth rate of more than 4% between now and 2025.

But what’s driving this growth, and why do experts believe it will continue for the immediate future? Let’s look deeper at this explosive growth in used truck prices.

A Shortage of New Trucks

The COVID-19 pandemic created shortages and delays throughout the supply chain, including the raw materials and parts needed to build new Class 8 trucks. Meanwhile, demand for new trucks continues to rise. FTR Transportation Intelligence reported that more than 42,800 new trucks were ordered in January, up 144% from the year before.

With more trucking companies looking to purchase vehicles and manufacturers unable to keep pace, the secondary market for used trucks has increased. There is hope, however, that as the pandemic fades away, the supplies needed to build new trucks will return to normal levels—but it may take some time for the price of used trucks to recover.

Strangely, it’s one of the smallest components that’s holding up production. A shortage in the semiconductor supply chain has reduced the availability of computer chips, which are used in both tractors and passenger vehicles. The average tractor can use anywhere between 15 to 35 chips, but pandemic-related slowdowns, two factory fires, and congested West Coast ports have greatly decreased availability.

While things like wiring harnesses, foundry parts, axles, or tires can be added after a truck is assembled, a lack of microchips can slow the entire assembly. These challenges combined with increases in new orders have created an unbalanced market.

As of March 1, the reported backlog of trucks ordered and waiting to be built stands at 228,000. At the current build rate, it would take almost a year to simply clear the backlog if no other orders were placed. Part of that problem is also staffing. The COVID-19 pandemic impacted the ability for manufacturing workers to be on-site, resulting in a labor shortage.

The Benefits of Used Trucks

Auction and retail prices for late-model, low-mileage used trucks, in particular sleep truckers, are up. These models are at their highest point since J.D. Power began tracking the segment in 2015. Used trucks tend to hold their value more than other vehicles as drivers must adhere to strict standards to stay on the road. A lot of truckers also invest in their vehicles, adding amenities once they own the truck—both to make it more comfortable while on the road and to increase potential resale value.

According to J.D. Power, the average sleeper tractor retailed in March was 68 months old and had approximately 458,000 miles on it. Its selling price of $57,489 cost almost 30% more than just one year ago. Due to new truck shortages, companies that traditionally cycled trucks out on a three-year or five-year cycle may hold on to them longer, further reducing the availability of used trucks.

High Demand + Low Supply = Pricey

The need to carry freight has remained strong, and trucking companies with staffed drivers on the road can start charging higher fees. Those extra funds could, in turn, be used to purchase more expensive vehicles if and when they become available.

Contract freight rates are near record levels, as are spot rates, after season adjustment. This has been exacerbated by people leveraging online ordering and delivery, along with the distribution of stimulus checks that provided many families with additional income.

That said, the trucking industry as a whole finds itself in an odd predicament. There is a strong need for drivers and trucks but not enough of both. Companies and owner/operators will have to decide if they want to invest in a newer used vehicle, make improvements to their existing ride, or get in line for a new truck now. With the end of the pandemic hopefully in sight, there is hope that the production of new trucks can increase in the coming months.

How Will the American Rescue Plan Benefit the Transportation Industry?

Most Americans know the American Rescue Plan as the $1.9 trillion government act that brought with it an additional $1,400 stimulus check for those who qualified. While the payments were an important part of the act, the American Rescue Plan also included funding for numerous projects and programs aimed to stimulate the economy, including billions of dollars for the transportation industry.

A Huge Payment for Public Transportation

The American Rescue Plan will provide $30.5 billion to the nation’s public transit system. This includes money to support rural transit agencies, transportation services for the elderly and those with disabilities, and transportation on Tribal lands. This money will be dispersed to public transportation operators to assist with operating costs, including payroll and personal protective equipment for essential employees working during the pandemic.

The goal of these payments is for public transportation organizations to improve operations to welcome back riders once the pandemic ends, as opposed to making drastic cuts due to the prolonged lack of travelers. Public transportation ridership dropped up to 65% (July 2019 numbers compared to July 2020), forcing many systems to furlough workers and reduce service. While ridership has increased as stay-at-home and other orders have been lifted, they are still below pre-pandemic levels.

Helping the Airline Industry Recover Job Losses

Air travel dropped around 70% during the first six months of the pandemic, forcing many air carriers to furlough thousands of employees. The Air Transport Action Group believes the pandemic has put up to 46 million jobs in the aviation and tourism sector at risk, about half of the total global workforce in this sector. While this number may be a worst-case scenario, airlines have and continue to be hit hard during the pandemic.

The American Rescue Plan contains $15 billion to provide payroll support for airlines to avoid furloughs and other staff cuts. To ensure airports can continue to function, the plan also outlined $8 billion to cover costs of operations, personnel, and cleaning. This includes set-aside rent relief and other costs for airport workers and businesses. The plan also includes $3 billion to establish an Aviation Manufacturing Payroll Support Program to protect aviation manufacturing jobs.

Amtrak Gets a Needed Boost

Just like public transportation and airlines, Amtrak was also hit hard. It was reported in November 2020 that the rail service had seen ridership drop 80 percent from year to year. The American Recovery Plan includes $1.7 billion for Amtrak to recall employees furloughed during COVID and restore daily long-distance service. The money will also help states cover revenue lost in state-supported routes.

Amtrak, which typically runs at a deficit, forced major budget shortfalls this year and discussed making significant cuts to its workforce several times.

Only the Starting Point?

While these investments will surely help the transportation industry, President Joe Biden continues to work with lawmakers on an infrastructure package that could spend another $2 trillion that will impact the transportation industry in many ways.

Some key provisions of the plan, which would either need congressional support or be included in the next budget reconciliation process, calls for $174 billion for electronic vehicles, $115 billion for roads and bridges, $20 billion to improve road safety, $85 billion for public transit, $80 billion for railways, and $25 billion for airports.

While the plan is still in the early stages and much could still change, the Biden administration has made infrastructure spending a top priority. Transportation Secretary Pete Buttigieg says the goal of this program would be to create jobs in these sectors, along with improving daily life.

“President Biden’s plan is the most visionary proposal for the nation’s transportation network since the dawn of the Interstate Highway System,” said Janette Sadik-Khan, chair of the National Association of City Transportation Officials.

A lot can still change before the infrastructure proposal becomes real. If approved, it would disperse spending over the next eight years to boost transportation-related industries. The American Rescue Plan and the Biden administration’s infrastructure proposal aim to help the nation’s transportation industry recover from the pandemic and set itself up for a lucrative future.

6 Tips for Financing a Food Truck During a Pandemic

6 Tips for Financing a Food Truck During a Pandemic What You Need to Know About Food Truck Financing

What You Need to Know About Food Truck Financing

The food truck industry grew steadily between 2014 and 2019 as these mobile restaurants became a trendy way to serve different cuisines to a hungry clientele. In fact, the industry grew 6.8% year over year during that time, peaking at more than $1 billion.

Then the COVID-19 pandemic hit.

Like many industries, food trucks were hit hard by the impact of the coronavirus. While food trucks could continue to operate during the pandemic, the customers they relied on to stay afloat disappeared, especially in urban areas. 

Food trucks have long benefitted from parking in downtown metropolitan areas, feeding lunch to the masses of office workers. With more employees working remotely from home, the lunch crowd vanished. So did the demand for food trucks to attend large gatherings or other well-attended social events, forcing many to close their doors.

The Coming Food Truck Resurgence

Hopefully, for food truck owners the worst is now in the past. With states lifting restrictions and more people returning to normal life, the opportunities that originally spurred massive growth will soon return. Entrepreneurs interested in starting a food truck—or those who stopped during the heart of the pandemic—will soon want to re-enter the market.

Many, however, will require financing, both for the truck itself and equipment used inside. Here are a few things to consider when shopping for food truck financing.

1) Choose a commercial vehicle lender.

Food truck financing can be a little different than getting a loan for another small business. If you have good credit, you should be able to get a loan—but instead of approaching a bank, find lenders that specifically offer vehicle loans. Some companies even offer vehicle financing tailored for food trucks. As with other loans, food truck owners will need to make a down payment, put down some collateral, or include a co-signer.

2) Plan to purchase a truck in good condition. 

It may be tempting to buy a fixer-upper, but many companies will not provide commercial vehicle financing if the truck is not a worthy investment. Plus, there is nothing more frustrating than losing potential income from a lengthy breakdown. It may be worth it to pay a little extra for a reliable vehicle.

3) Consider a business credit.

A business credit card or business line of credit may be required. It can be difficult to start any business, and some creditors may want more information or a history of success in the food business before offering a loan. If you are starting new, it may be difficult to get a traditional loan. You may need to use business credit until you prove your business acumen to a larger lender. If that’s the case, food truck owners will need a good credit score and may have to offer personal collateral.

4) Don’t forget about equipment loans. 

Of course, food trucks require more than just the truck. They house special equipment, like a stovetop or a deep fryer, to cook food on demand; they also need refrigeration to keep ingredients safe. Equipment loans typically use the cooking items you are leasing as collateral, so if you default on a payment they will be taken away.

5) Leverage an SBA microloan. 

Perfect for food trucks, the US Small Business Administration’s Microloan Program provides up to $50,000 to borrowers. Borrowers can use these funds to purchase supplies, equipment, and food inventory. These can be an excellent way to get a food truck off the ground once the vehicle has been acquired.

6) Explore other ways to finance your food truck. 

Crowdfunding can be a viable method as well. Think Kickstarter or GoFundMe. Food trucks have boomed during the time of social media with trucks using Twitter, Facebook, and Instagram to announce their location, share pictures of what people are eating, and even release special deals. Food truck owners can get creative, offering loyal customers a small cut of the profits or a special per—five free meals per month, for example—in exchange for an investment.

The Bottom Line

The COVID-19 pandemic has brought great uncertainty to the food and beverage world, but it’s also time to rethink how things are done. Food trucks have proved to be a solid business for those who can make delicious food and find a market to sell it to. There are multiple ways to finance a food truck, so if you have the desire to get started, you can find several paths to lead you to your dream.

5 Common Tax Myths Debunked

5 Common Tax Myths Debunked

Tax season is here, bringing the usual avalanche of tax-related questions. While truck drivers do not need to be experts in the tax code, certain tips and tricks can make this time of year a little less painful—both for your wallet and your mental health. Let’s look at five common tax myths truckers need to know.

Myth 1: April 15, 2021, is the deadline to file. 

Usually, April 15 is the deadline for tax returns to be postmarked to the Internal Revenue Service without facing a possible fine, but that has changed this year. Filers now have until May 17, 2021. Better yet, there is no requirement to be granted the extension; it is immediately given to everyone. Truckers who currently feel rushed to finish their returns—or are figuring out when they will put them together between long trips—have a little bit of extra time. The April 15 deadline is scheduled to return in 2022.

Myth 2: Owner/operators do not need to pay quarterly taxes. 

This is a big misnomer that gets many independent contractors in trouble, regardless of industry. Owner/operators work as their own business and as such must manage their tax payments to the federal and state governments (this is compared to a traditional employee who will have taxes withheld). Owner/operators need to set aside money each quarter—think about 25% of income after deductible expenses—and pay it to the government.

Failing to make these payments can result in penalties but owner/operators also have to make sure not to pay too much. While the federal government will give you a return, an overpayment is akin to giving the government a free loan of any earned income that could be spent, saved, or invested. It may take some practice, but owner/operators need to be cognizant of their income, what existing taxable deductions they can take, and keep track throughout the year for an accurate total.

Myth 3: Truckers need to keep receipts for every meal they eat.

Over-the-road truckers can spend weeks on end without ever going to their permanent home. As a result, they can benefit from the per diem food benefit allowed through the IRS. Truckers with work that takes them away from home overnight are allowed to charge the government on the IRS Schedule C form. This directly reduces self-employment taxes and does not need to be itemized. As long as a trucker eats below $60 to $70 on food each day, they will make that money—and more—back with taxes. 

Myth 4: You can deduct deadhead mileage and days off for illness. 

Sadly, this one is not true. Owner/operators can only deduct actual expenses while working on the profit being made. Things like time off and deadhead miles cannot be deducted. However, some things that truckers occasionally overlook can be. Truckers who travel with a dog can write the dog off as a security expense if the dog is always with the truck. Permits and license fees can also be deducted along with accounting services, repairs, and interest paid on business loans. There are lots of valuable deductions if you know where to look.

Myth 5: More deductions increase your chance of an audit. 

The IRS will closely look at your returns but there is no guarantee you will face an audit. It is best to be honest with all your deductions and only use the ones that pertain to your situation. The IRS knows how to spot potentially fraudulent deductions, so be honest and upfront. 

Take the time to understand the deductions you take and keep detailed records where possible. These records can prove invaluable, ensuring first that you get all the deductions owed but also holding up to the scrutiny of an audit. Owner/operators must face a lot of difficult tax issues to run their business. It may be beneficial to hire a professional or take a course to fully understand how to manage your tax situation. While the IRS does not want to charge penalties and conduct audits, they also want to ensure every person pays their properly owed amount.

Parking Shortage: An Unexpected Problem for Truckers

The COVID-19 pandemic has increased attention on the already growing need for more truck parking as trucking advocates push for federal funding to alleviate the problem. The need for safe truck parking existed before the pandemic, fueled largely by the electronic logging device (ELD) mandate that more strictly regulates the length of time drivers can work. With traditional truck and rest stops filling up quickly, truckers find themselves now parking in abandoned parking lots, on shoulder highways, and other dangerous locations.

A Rapidly Growing Problem

A 2019 survey showed there were about 313,000 truck parking spaces across the country. This included about 40,000 at public rest areas and another 273,000 at private truck stops, numbers that increased from just five years earlier (the number of public rest area spots grew 6%, while private spots were up 11%). However, the same survey found that 98% of truckers interviewed still had trouble finding safe parking at the end of their day.

This was, of course, before the pandemic started. Some private truck stops further curtailed parking to reduce the number of people on their property to limit virus exposure, and public rest stops became crowded as more people traveled in recreational vehicles to avoid air travel and public transportation. Before the ELD mandate, truckers could simply continue to travel until they found a safe location, usually away from a major metropolitan area.

Now truckers must either commit valuable driving time to planning where they will spend their night or drive around in hopes of finding a safe space to sleep. Some truck drivers have resorted to staying in unsafe locations to avoid fines and penalties for logging too much time behind the wheel. While some mobile applications have been created to help solve the problem, the reality is there are simply not enough available spaces for truckers currently on the road.

Is There Help in Sight?

Maybe. There was initial hope that funding could be included in the upcoming $1.9 trillion COVID-19 relief bill but that did not happen. Instead, the best hope for trucks is an infrastructure bill Congress will debate later this year.

Peter DeFazio, a Democrat representative from Oregon who chairs the House Transportation and Infrastructure Panel, has vowed to push for truck parking when the discussion begins on a highway bill to replace a transportation bill passed in 2015 that expires this October. DeFazio included $250 million in an infrastructure bill last year to improve truck parking, but that measure never received a vote in the Senate. Other politicians, including Mike Bost, a Republican representative from Illinois, have proposed similar measures to increase parking options for truckers.

Bost, who comes from a family of truckers, introduced a measure for the COVID-19 relief bill that would dedicate $125 million to truck parking this year, a number that would increase each year through the 2025 federal fiscal year. In the end, $755 million would have been provided to help truckers. While this measure was tabled, it provides a potential outline for what relief could look like.

The Federal Highway Administration has taken note of the problem; through the National Coalition on Truck Parking, the agency will seek to obtain initiatives that will improve parking for commercial truck drivers.

Trucking advocacy groups argue that airlines, Amtrak, and other transportation industries have received billions of dollars in aid during the pandemic, truckers have largely been ignored. The goal is for funding to create additional parking areas and forbid rest areas from charging truckers to park.

The Risks of Not Expanding Truck Parking

The trucking industry seemingly has more trucks than drivers these days. While trucking has shown to be a valuable profession, especially during the pandemic, the stressful nature of the work has led to decreased driver retention.

Truck drivers already work long hours, spend days and weeks away from loved ones, and must follow strict workplace safety guidelines to keep themselves and the roads safe. While a driver may be unlikely to leave the profession over the lack of parking alone, the daily stress of finding a spot may contribute to an overall negative feeling for the job.

The pandemic has highlighted the value of truck drivers who have worked in difficult conditions to continue delivering goods. For many, they could not even use a bathroom at their distribution center for fear of spreading the virus.

Lewie Pugh, executive vice president of the Owner-Operator Independent Drivers Association, summed up the increasingly complicated issue from a trucker’s standpoint.   

“All truckers want is a place to take a nap,” he said, according to Roll Call.

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