Cleveland trucking may not be inherently political, but there’s no denying that government rules and regulations inevitably have an impact on the industry’s policies and practices. With a new administration poised to take control of the White House early next year, it’s a good idea to for Cleveland trucking companies to forecast potential shifts in legislative and regulatory agendas — to stay a step ahead and ensure logistics elasticity and supply chain resilience.

It’s worth noting that at least as far as logistics are concerned, changes in government typically can’t be characterized as simply all “good” or “bad.” The reality is global supply chains are constantly feeling the push and pull of a wide range of factors: Elections, wars, disasters, pandemics, new laws, strikes and more.

The key is to be ready for whatever the future brings. One advantage Cleveland trucking companies have with the incoming administration is that it’s already been in office before, from 2016 to 2020. That means we have a better idea of what to expect, in addition to whatever vows they’ve made on the campaign trail.

Here, we’re outlining some of the most significant potential changes and impacts for the Cleveland trucking industry over the next four years.

Engine Emissions

The current administration’s Environmental Protection Agency had initiated a final rule for greenhouse gas emissions standards for heavy-duty vehicles that applies to trucks with model years 2027 through 2032. It relies fairly heavily on power systems that are either battery-electric or hydrogen-electric.

The new administration, however, is widely expected to reset or readjust the standards/emissions targets, lengthen compliance timelines and explore alternatives, such as renewable diesel.

Cleveland trucking companies may see some cost savings, given that a brand new diesel-powered electric tractor-trailer costs less than half as much as a brand new electric tractor-trailer. Also, electronic vehicle batteries can weigh up to 16,000 pounds, which cuts into cargo capacity for highway safety weight restrictions. That means trucks without electric vehicle batteries may be able to move more goods faster.

Autonomous Trucks

The current administration had intended to propose regulation that would fast-track truck automation. The incoming administration is more likely to revert to an approach that’s more industry-driven. That’s likely to be less expensive for Cleveland trucking companies, given that onboarding autonomous trucks will require sizable upfront costs for equipment, training, inspections, etc.

Truck Parking

The current administration had allotted more money to truck parking via the Infrastructure, Investment & Jobs Act. But the VP candidate of the incoming administration was also a co-sponsor of the Truck Parking Safety Improvement Act, a pending measure that would allot more than $750 million by 2027 to expand truck parking.

Infrastructure Laws

The current administration passed a massive infrastructure bill that allotted roughly $110 billion for new and/or improved bridges, highways and road projects. The new administration is expected to reauthorize that bill in two years, but will have discretion on how that money is spent. More than likely, we’ll see environmental protections being scaled back while there are greater investments on larger capacity on bridges and highways.

Corporate Taxes

The difference in corporate tax proposals between the two administrations is fairly broad. Whereas the current administration had proposed increasing corporate taxes from 21% to 28%, the incoming administration has voiced favor for cutting corporate taxes from 21% to as low as 15% – and repealing the 12% federal excise tax on large trucks and trailers.

The new administration’s policy could result in immediate positive effects on freight hauling of domestic goods, but the long-term impacts remain to be seen.

Cleveland Trucking Forecasting

This is just a snapshot of the changes that may be on the horizon as the incoming administration (re)takes office.

As a dedicated third-party logistics company in business for nearly five decades, On Time Delivery & Warehouse has seen many presidents, government agency leaders, and policy agendas come and go. We’ve remained steady through it all. We’re here to help our customers navigate whatever supply chain and logistics challenges arise, providing the very best customer service along the way. No matter what the future holds, our goals remain steadfast: To ensure your goods get where they need to be : Intact, on time, every time.

If you have questions about our Cleveland, Ohio trucking options, give us a call at (440) 826-4630 or request a quote!

Additional Resources:

Top 10 trucking policies likely to be affected by Trump’s return, Nov. 6, 2024, By John Gallagher and John Kingston, FreightWaves

More Blog Entries:

Multi-Door Cleveland Warehouse Helps Ensure On Time Deliveries, Oct. 15, 2024, Cleveland Trucking Company Blog