Archive for April, 2012

FMCSA to Revisit Rule Defining Tank Vehicles

Thursday, April 26th, 2012

What should be defined as a tanker vehicle has groups and organizations stirring debate.

A petition led by the Commercial Vehicle Safety Alliance (CVSA) in 2008 prompted the Federal Motor Carrier Safety Administration (FMCSA) to redefine tank vehicles in May of 2011.

Whereas tank vehicles previously “did not apply to commonplace fluid bins,” and which drivers did not need a tank endorsement for, the revision surpassed the CVSA’s request, including vehicles that “haul any containers of liquid or gas with a rated capacity of 119 gallons or more as part of an aggregate of 1,000 gallons that aren’t permanently attached to the vehicle.” 1 This includes “dry van trailers hauling empty or filled cylinders and intermediate bulk containers (IBCs) designed for the carriage of liquids and gases.” 2

Considered “too broad” of a definition and forcing more drivers to have tank endorsements on their CDLs, groups such as the Owner-Operator Independent Drivers Association (OOIDA) and American Trucking Associations (ATA), have pointed out the additional expense drivers and carriers will be facing under the revised definition.

As the ATA stated, “Obtaining this endorsement is burdensome, requiring additional training, time off work and substantial costs and fees.” 3

Understanding these concerns, the FMCSA decided on March 30th to reconsider the definition and who is required to hold a tank endorsement on their CDL.  The problem, however, lies with the states who have already adopted the definition.

Although the ruling was set to go into effect on July 8th, states were given until July 2014 to establish the ruling, which poses as a problem.  As the OOIDA’s Joe Rajkovacz states, “If it can be assumed that we’re going to get a relaxed definition, then drivers should not be exposed to being cited for this in the various states that have already adopted the wider definition.” 1

The FMCSA acknowledged that it will be seeking comments on the definition but did not announce a date as of yet.

The ATA and ARA (Agricultural Retailers Association, who is also affected by the tank endorsement since pesticides are transported via IBC containers) suggested the following definition to the FMCSA:

“Tank vehicle means any commercial motor vehicle that is designed to transport any liquid or gaseous materials within a tank having an individual rated capacity of more than 1,000 gallons that is either permanently or temporarily attached to the vehicle or the chassis; or tanks having an individual rated capacity of more than 119 gallons and an aggregate rated capacity of 1,000 gallons or more that are permanently attached to the vehicle or the chassis. A commercial motor vehicle transporting portable tanks that are manifested as either empty or as residue on a bill of lading or transporting an empty storage container tank, not designed for transportation, with a rated capacity of 1,000 gallons or more that is temporarily attached to a flatbed trailer are not considered to be tank vehicles.” 2

How would you define tank vehicles?  Post your responses at http://gsfn.us/t/2tatk.

Are you looking to get your tanker endorsement or are being required to do so?  Take the practice tanker endorsement CDL practice test below (provided by http://www.truckingtruth.com/cdl-test/cdl-test-tanker-endorsement-A.html):

NOTE:  Click on image to view all 15 questions and answers.

click to view

1 http://www.landlinemag.com/Story.aspx?StoryID=23492

2 http://www.croplife.com/article/26733/dot-issues-final-regulations-on-tank-vehicle-definition

3 http://www.truckinginfo.com/news/news-detail.asp?news_id=76184

4 http://www.etrucker.com/ovd/feds-revisit-tanker-definition

Win a Kodak PlaySport Waterproof Pocket Camera With Road Scholar’s ‘On The Road’ Photo Contest!

Tuesday, April 17th, 2012

KodakThe nice weather is here and Road Scholar Transport is giving you the chance to show off your photography skills in our ‘On the Road’ photo contest!

From now until May 17th, take your best photograph of Road Scholar’s trucks on the road, at your dock, at an awareness event (see our Facebook page for event listings)….anywhere you can sneak a snapshot.

Individuals can submit up to 5 photos to Kristina.brown@roadscholar.com up until May 17th, 12 P.M. EST.

Photographs will be posted for voting on Road Scholar’s Pinterest site (http://pinterest.com/roadscholar) under the board “On the Road Photo Contest’ on May 18th, 12 P.M. EST.  Voting runs until June 1st 12 P.M. EST.

Kodak

The photo with the most “likes” will win a brand new Kodak PlaySport Waterproof Pocket Camera!  Only 1 vote per person per photograph is allowed so make sure you “repin” your favorites and tell your friends to vote!  The winner will be announced via e-mail shortly thereafter the June 1st voting deadline.

The Prize (Details provided by Amazon.com)

Kodak PlaySport Waterproof Pocket Camera

*Color: Black

*Shockproof, dustproof, and waterproof up to 10 ft!

*Kodak’s Share button lets you choose your favorite sharing destination, e-mail address, or Kodak Pulse Display

*Full 1080p HD videos and 5 MP HD stills, with auto focus

*Get sharper videos and less blur thanks to built-in digital image stabilization

*On-camera editing

*Color:  With options of Black and white, Sepia, High saturation—bright, bold colors, and ’70s film—muted colors, slightly greenish cast, and a little graininess for a retro look

*Hard-drive

*Memory-card-compatible:  Record up to 10 hours of HD video with expandable SD/SDHC card slot (up to 32 GB)

*Zoom

*Online-sharing

RULES:

-Pictures must be sent to kristina.brown@roadscholar.com as a file attachment.  TIF, JPEG, GIF, BMP, and PNG are accepted formats.

-The picture will be processed and posted to the voting site.

-Road Scholar truck pictures only please, no individuals allowed.

-By submitting the picture you are giving consent for Road Scholar Transport to post the pictures on our voting site as well as releasing full copyright privileges to Road Scholar.

-Road Scholar Transport reserves the right when necessary to resize or crop a picture to fit on the voting site.

-Road Scholar Transport will review all pictures and will not post inappropriate photos.

-Picture submissions will be accepted until 12 P.M. EST May 17th.  Voting begins on May 18th 12 P.M. EST.

-The voting period will end 12 P.M. EST June 1st.  Winner will be announced shortly thereafter.

-The winner will receive a new Kodak PlaySport Waterproof Pocket Camera.

What are you waiting for?  Start snapping today!

Good luck!

Driver Salary/Population Increases, Strong Employment Growth Expected Within Upcoming Years

Friday, April 13th, 2012
driver_pop

Click to enlarge. Provided by http://www.joc.com/labor/truck-drivers-payroll-rise-29-percent

Driver population increased last year for the first time since 2008.

According to the Bureau of Labor Statistics (BLS), the industry saw a 2.8% increase in heavy-duty truck drivers in 2011 when compared to 2010, coming in at 1.51 million drivers.

After reaching a high of 1.8 million in 2008, carriers and shippers began experiencing a shortage of drivers due to the recession in which a lot of drivers exited the business, dropping numbers as low as 1.47 million (18.4%) in 2010.  But from May 2010 to May 2011, close to 42,000 additional truck drivers were hired with that number continuing to improve into 2012. 1

January rang in the New Year with 9,800 additional jobs but slowly decreased to 1,900 between February and March, which BLS explains to be “the first decrease since August 2011.” 2 Despite the drop, BLS predicts a driver growth of 21% from 2010 to 2020.

But don’t get too excited.  There is still anticipation of a significant shortage as the economy recovers.  It is estimated that by July 1, 2013 (when Hours of Service compliance is fully implemented) driver shortage will peak at around 250 ,000 drivers, hitting above the 150,000 mark in 2013 and reaching nearly 240,000 by 2014, with the shortage lasting longer than that which occurred during the 2004 recovery.3

With an anticipated driver shortage, it is no surprise that driver pay is going up as well.

The mean hourly wage for heavy-duty truck drivers increased from $18.97 in 2010 to $19.15 per hour with a mean annual wage of $39,830. 2

The first quarter of 2012 showed an increase of 14,400 in truck payrolls, according to the American Trucking Associations, along with increases associated with private fleets of 1-2 cents per mile, not to mention sign-on bonuses in the range of $1,500-$3,500 to attract drivers and draw them away from their competitors. 4

FTR senior consultant Noel Perry offers good news for drivers, expecting wages to average $60,000-$90,000 by 2014.  But along with good news for drivers comes bad news for shippers, as rate increases are expected to account for higher costs of conducting business.

And although pay is certainly a factor in driving applicants towards a job, drivers are looking for more in an employer.

The Journal of Commerce listed in a CostDown Consulting study the top concerns that lead drivers to leaving their job or choosing to stay.  This includes not only compensation, bonuses (such as the sign-on bonuses mentioned above), and benefits, but keeping the promises set forth upon hirement.  A company may be able to lure you in with money but do they hold true to their word?

And what about respect and problem resolution?  Isn’t that important?  Take the recent case over driver harassment involving over a hundred women drivers from an Iowa trucking company who claimed they were sexually harassed by their male trainers.  The women stated that CRST Van Expedited failed to stop the harassment after they cited their experiences.

Despite testimonies, the court dismissed the Equal Employment Opportunity Commission’s suit seeking compensation and changes in the company’s policy, stating that they used a “sue first, ask questions later litigation strategy” instead of “investigating every worker’s claim and seeking informal settlements before suing the company.” 5 The EEOC announced it will be petitioning the case.

Would you continue working for a company such as this?

Other driver concerns making the Journal of Commerce’s list include home time, the ability to communicate, equipment and equipment maintenance, training, and clear/fair work rules.

Road Scholar Transport understands these concerns, that’s why we are offering you a list of some of the many perks you will receive in working as a Road Scholar driver.

*Excellent Pay and Benefits:  We compensate our drivers for their hard work, offering a $1500 sign-on bonus, excellent pay, safety bonuses, a comprehensive benefits package for eligible full-time employees, and much more!

*Flexibility in work schedules:  Full-time and Part-time positions are available.

*Home Time:  As a family-owned business, Road Scholar understands the importance of family, which is why we allow flexibility in your work schedule to allow you to spend the well-deserved and needed time with your family, so your personal life is not inconvenienced by work.

*A Great Work Environment:  Our operations team is friendly, courteous, and knowledgeable.  We treat our drivers with respect and eliminate any discrimination. One of Road Scholar’s female drivers takes pride in driving the American Breast Cancer truck, a cause dear to her heart, remarking that she has never faced inequality due to being a woman at Road Scholar.

*Excellent Equipment:  We conduct daily maintenance checks and operate newer models…one of the reasons why we’ve never been cited for a piece of faulty equipment in an accident!

*New Sights/Once-in-a-Lifetime Experiences:  The ability to see new places/sights and meet new people.  One of our drivers even met Lorretta Lynn at a Tennessee truck stop.  Another witnessed a tornado come across the highway he was traveling on.

*Make a Difference:  Drive with a purpose by climbing onboard one apply todayour awareness trucks.  Whether it is our Autism Speaks or Stop Bullying truck, take pride in transporting freight while helping spread awareness.  Here’s what one of our drivers had to say about the awareness campaign.  “The awareness program is really good.  I get a lot of compliments about the foundation that I drive for.  I drive the American Foundation for the Blind.  I had one person in Virginia, a gentleman out of the blue, come up and tell me that his daughter was in that foundation.  It made me feel pretty good because I feel like I’m the odd ball out of the whole group.  He liked the truck.  He took all kinds of pictures.”

Interested in a rewarding carrier?  Apply today!

What’s most important to you when applying for a truck driver position?  Cast your vote/comments at http://gsfn.us/t/2s0d6:

-Compensation/Bonuses

-Home Time

-Communication/problem resolution

-Respect

-Benefits

-Equipment/Vehicle Model and Maintenance

-Other

1http://www.joc.com/labor/truck-drivers-payroll-rise-29-percent

2http://www.truckinginfo.com/news/news-detail.asp?news_id=76606

3https://www.truckgauge.com/2012/04/11/driver-shortage-eased-in-2011-growing-in-2012/

4http://www.truckinginfo.com/news/news-detail.asp?news_id=76585

5http://www.thetrucker.com/News/Stories/2012/4/9/EEOCtoseekrehearingintruckerharassmentcase.aspx

TCP Business Expectations Survey: As Carriers Continue to Shy Away From 3PL Providers, Higher Spot Quotes Draw Brokerage Usage Up

Wednesday, April 11th, 2012

According to Transport Capital Partners (TCP)’s First Quarter 2012 Business Expectations Survey, the majority of carriers reported utilizing broker services as a means of obtaining freight lanes less within the last 90 days compared to previous months.

survey

The survey shows that 67% of carriers have drifted away from brokers in the last three months, slightly lower than last year in which 86% acknowledged drawing away from 3rd party logistic services in February 2011 and 82% in August 2011, yet accounting for over twice the number of carriers pulling away in May 2009 (which was around 31%). 1

On top of that, TCP’s Richard Mikes explains that in a time where capacity is tight, more and more carriers are turning towards forming their own brokerage arms. 2

And with concerns over vicarious liability, chameleon carriers, double brokerage, and false 3pls, among other issues, shippers are becoming more careful on who they trust to transport their freight, vetting out carriers based on safety scores.

Let’s look at a recent ruling involving a double brokerage scheme.  Between 2004 and 2005, Kulwant Singh Gill operated as a California broker under several false names in order to obtain loads posted on brokerage loads.  Presenting false social security and driver’s license numbers, Gill presented himself as transporting the loads himself, and once given the load, would then repost the lane as a broker, handing off the load to another carrier.  Once the shipment was transported, Gill was paid by the original broker and never compensated the actual carrier, scheming over 100 trucking companies. 3

Gill was indicted in 2006 and again in 2008 for continuing his scheme, being found guilty in 2009.  After continuing to double broker loads, the court sentenced Gill to 10 years, 10 months in jail and ordered to pay $443,388 in restitution on March 28, 2012. 3

But despite the majority of carriers shying away from brokers, better rates have led to an increase in the number of carriers using 3rd parties.

Looking at TCP’s survey, 33% of carriers stated that they have increased their broker utilization in the last three months.  This number increased from 15% in August 2011 and 12% in February 2011 but is still less than May 2009 which reported 65%. 1

TCP gives the reasoning of higher spot quotes compared to contract rates (along with the need to fill lanes) to account for this brokerage increase.  As TCP’s Lana Batts explains, trucking companies, especially larger carriers, “are going back to brokerages because there is a shortage of equipment and they are getting better spot market rates than they are getting out of their contract rates.” 4

Although only 45% of carriers recently increased their rates, 77% believe that freight volumes will increase within the next year, which Batts believes will lead to an upward rate trend, spiking in early summer, and leading more carriers to utilize brokers since “carriers can get more money for non-contractual freight,” she states. 5

Need help deciding on whether to choose an asset-based carrier or a broker?  We’ve constructed a list of what an asset-based carrier, such as Road Scholar Transport, can provide versus a typical 3PL broker below.

broker vs. rst

click to enlarge

From your experience, what do you consider to be the benefits of utilizing an asset-based carrier over a broker?

1http://www.truckinginfo.com/news/news-detail.asp?news_id=76593

2http://www.truckinginfo.com/trucks-trailers/news-detail.asp?news_id=74969&news_category_id=29

3http://www.overdriveonline.com/broker-sentenced-11-years-for-defrauding-carriers/?pg=1

4http://www.logisticsmgmt.com/article/tcp_survey_shows_that_carriers_continue_to_be_active_in_the_spot_market/

5http://www.ontruck.org/imispublic/Home/AM/ContentManagerNet/ContentDisplay.aspx?Section=Home&ContentID=10822

FMCSA Schedules Listening Session over EOBR Driver Harassment after Court Denies OOIDA’s Request

Friday, April 6th, 2012

eobr

The battle continues over whether required electronic on-board recorders (EOBRs) are a gateway for driver harassment or a much needed step towards a safer industry.

The Owner-Operator Independent Drivers Association (OOIDA) has become one of the forerunners in the fight against EOBR requirements based on the notion that constant surveillance violates a driver’s right to privacy and can lead to greater safety issues for those drivers pushing to meet their quota, sometimes driving tired.

The Seventh Circuit Court ordered last August that the Federal Motor Carrier Safety Administration (FMCSA)’s April 2010 rule that would mandate EOBRs on all trucks used by certain non-compliant carriers with an effective date of June 2012, to be vacated until harassment concerns were addressed.

Although the court granted OOIDA’s request, the association was not that lucky when the court denied their January 19th motion that claimed the FMCSA violated the Seventh Circuit’s decision by failing to address/issue a ruling that would prevent drivers from being harassed, requesting that the FMCSA be ordered to “‘cease and desist from authorizing, sanctioning or in any way encouraging’ using the EOBR to increase hours of service compliance until the agency issues a rule ensuring the devices will not be used to harass drivers.” 1

The FMCSA decided to pose the topic of EOBR driver harassment at the Mid-America Trucking Show, holding a hearing session and explaining that additional sessions will be held. 1

One of these sessions is scheduled for Thursday, April 26th from 1:30 to 5:30 pm PT in Bellevue, WA and will gather perspectives/comments used in creating their Supplemental Notice of Proposed Rulemaking regarding the “factors, issues and data it should consider as it addresses the distinction between productivity and harassment: what will prevent harassment from occurring; what types of harassment already exist; how frequently and to what extent harassment happens; and how an electronic device such as an EOBR, capable of contemporaneous transmission of information to a motor carrier, will guard against – or fail to guard against – harassment.” 2

For those who cannot attend the session in person but would still like to listen in/participate, a webcast will be available at 10:00 a.m. ET at http://www.tvworldwide.com/events/dot/120323/.  Attendees are asked to register in advance by going to http://www.tvworldwide.com/events/dot/120323/.

Not very informed about EOBRs?  No problem.  We’ve gathered what groups consider to be the pros and cons of electronic on-board recorders giving you the ability to talk knowledgably about these devices to your drivers/customers.

eobr

click to enlarge

Do you believe that EOBRs are more beneficial or costly?  Post your comments at http://gsfn.us/t/2rbcz.

1 http://www.truckersnews.com/court-denies-ooida%E2%80%99s-eobr-request/?pg=1

2 http://www.truckersnews.com/fmcsa-schedules-session-to-discuss-eobrs-harassment/?pg=1

Carriers Increase Fuel Surcharges to Aid in Diesel Prices

Wednesday, April 4th, 2012

What do these three things have in common?

what do they have in common

They are all products used by trucking companies in an effort to help reduce fuel costs.

It’s no stranger that fuel prices are rising with the price of diesel ranking in at a national average of nearly $4.15/gallon.  Compare that to two years ago when diesel cost $2.99/gallon.

When looking at the price of gasoline vs. the price of diesel, consumers may be glad they don’t drive a truck.  But diesel costs have not always been higher than gasoline.  In fact, “diesel has historically been lower than that of gasoline” (hard to believe when looking at the last few years) but, as the Florida Trucking Association explains, diesel is also “taxed by the federal government at a rate 25 percent higher than gasoline.” 1

Transitioning into the trucking industry, this increasing cost of fuel spells T-R-O-U-B-L-E, especially for small carriers.

According to the American Trucking Associations, nearly 97% of trucking companies in the U.S. operate with fewer than 20 trucks with almost 90% of them servicing six or fewer. 1 With the rising costs of doing business, (equipment costs-new trucks average about $125,000 while more environmentally friendly engines “have gone up $15,000 to $20,000,” healthcare costs, fuel costs…etc.), along with stricter regulations, and driver shortage/capacity problems, these companies are being forced to shut down.

Let’s take a look at the facts.  Two years ago, when diesel was at $2.80/gallon, nearly 700 trucking companies went out of business.  Two years prior to that, when diesel costs $3.50/gallon, almost 1,000 carriers closed. 1 Fast forward to the present day when diesel prices cost even more.  How many carriers will battle out increasing costs and how many will fail this year?

In order to cut back on fuel costs and prevent closure, carriers are being more selective on what lanes/customers they transport for, many of them turning down smaller accounts that they find to be non-profitable.  As one company operating its own fleet notes, “We can’t afford to pay drivers, keep the trucks on the road and pay for gas too for some of the smaller accounts — it’s just cost prohibitive.” 2

Other carriers are increasing fuel surcharges to tackle diesel costs, which prevents them from raising freight rates due to diesel prices.  Without these fees, a carrier would be forced to increase freight rates to make a profit, competing with bottom-feeder carriers.

Increasing in popularity/practice in the late 1990s, fuel surcharges have been used by carriers, allowing “the hauler to be reimbursed for excessive fuel costs incurred in the performance of hauling freight from one point to another.” 3

There are different methods carriers use in determining the fuel surcharge of their customers.  One is based on the cost per mile, which is generally classified as 5-6 miles/gallon (the typical mileage of an older truck), whereas newer models can get over 7 miles/gallon. 4 Another calculation method relies taking a percentage of the linehaul rate, which can vary depending on whether the load is an LTL or Truckload shipment.

But, as the American Trucking Association’s Bob Costello explains, “some common carriers may have as many as 100 different fee structures,” depending on the customer, shipment, and other factors. 4 And guess who these fees, in return, trickle down to?  You guessed it, the consumer.

Despite fuel surcharges, many carriers are taking measures to become more fuel efficient.  These include speed control, skirting on trailers (which slipstreams the trailer and reduces drag created by rushing air, increasing fuel efficiency by 4-7%), cruise control (which has a .3% fuel efficiency gain), progressive shifting, hiring “good/qualified” drivers as opposed to “cowboys” who are constantly running fast, operating newer equipment, and installing technology such as GPS (which determines the best/most efficient route) and fuel economy gauges such as the ScanGaugeD (which monitors fuel usage changes).

How are you coping with increasing fuel prices?  Have you taken any changes to account for this cost?

Understanding the history of diesel fuel costs can help you better understand the reasoning behind a carrier’s fuel surcharge.  That’s why we are suggesting that you show the following graph, provided by the U.S. Energy Information Administration depicting diesel fuel costs from 1994 to the present day, to your transportation manager.  As the graph displays, in March 1994, diesel cost just $1.107/gal with a low of $0.959/gal in February 1999.  Today, it’s nearly $4.15/gal!  How high do you see the price of gasoline/diesel going?

click to enlarge

click to enlarge

Would you be willing to extend the delivery of a shipment 24 or 48 hours if it meant saving up to 25% off the cost?   Working with carriers who can consolidate freight to maximize trailer space and the related fuel consumption could be an option that benefits you as a shipper – and a small side benefit to the environment.  List your comments below.

1 http://www.theledger.com/article/20120326/NEWS/120329448

2 http://www.news-journal.com/news/local/gas-prices-pinch-motorists-fleet-operators-hit-harder/article_40ef1dc6-e63a-5c0c-a7be-e593a852af89.html

3 http://www.aitaonline.com/Info/General/Fuel%20Surcharges.html

4 http://www.palletenterprise.com/articledatabase/view.asp?articleID=3630