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Insurance Minimum for Motor Carriers Called Inadequate, Increases Proposed

Wednesday, June 19th, 2013

trucking alliance

In the 1980s, the minimum insurance requirement for motor carriers was increased from $500,000 to $750,000.  Nearly 30 years later, many are questioning whether that number remains sufficient.

As part of the surface transportation bill, signed last July by President Obama, the Department of Transportation is required to “evaluate the adequacy of the $750,000 minimum level of insurance required for motor carriers.” 1

The Trucking Alliance, which includes the carriers JB Hunt, Schneider National, Maverick Transportation, Knight Transportation, Fikes Truck Line, and Boyle Transportation, are in support of an increase, referencing a recent study they conducted which analyzed 8,692 accidents (recorded by confidentially named companies participating in the study) settled between 2005 and 2011. 1 Although “only 1 percent of these settlements exceeded the minimum requirement,” the Alliance stated, “the per occurrence average is what determines true risk.  If all the study’s companies had maintained the minimum $750,000 requirement, 42 percent of monetary exposure from these settlements would have exceeded the carriers’ insurance coverage.” 2

As the Trucking Alliance’s senior manager Lane Kidd explains, “This uninsured exposure means that trucking companies must pay out the additional dollars from within the business or in the worst case, file bankruptcy to avoid paying.” 1

Those carriers that were covered up to $1 million dollars faced uninsured liability in 37.5% of cases while 17.7% still experienced it with $4 million coverage. 1

While the Trucking Alliance is in support of increasing the insurance minimum, the Owner-Operator Independent Drivers Association (OOIDA) is against it.  According to OOIDA’s Todd Spencer, the Trucking Alliance, “cherry picked data to make a claim that just isn’t so.  No one should take this bogus study seriously. In 98 to 99 percent of crashes involving trucks, claims are settled well below the $750,000 minimum. But even at that, most truckers have $1 million in coverage. All the Alliance will succeed in doing is increase costs for their competition in trucking and chum the water for personal injury lawyers.” 2

The Federal Motor Carrier Safety Administration’s mandated analysis, which is near being finished, could become the basis for whether the insurance requirement will be raised to the $1 million proposal which was considered by Congress.  Once completed, the FMCSA’s findings will be reviewed and sent to the White House Office of Management and Budget, all of which could take up to three months. 3

The American Trucking Associations is waiting for the FMCSA’s study as well as any data before taking a position.

Do you believe that the minimum insurance requirement set for motor carriers should be increased to $1 million?  What do you think are the outcomes if they are?  Are not?

Click on the graph below to view the list of insurance requirements provided by fmcsa.dot.gov.

insurance requirements

1http://www.thetrucker.com/News/Stories/2013/6/14/42ofsettlementspaidbycarriersforaccidentsexceedinsurancerequirementsalliancesays.aspx

2http://www.ccjdigital.com/group-pushing-for-raising-federal-insurance-requirements-for-fleets/

3http://www.truckinginfo.com/news/story/2013/06/new-study-puts-spotlight-on-fmcsa-insurance-requirement.aspx

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Driver Safety Becomes Leading Concern Among Carriers

Friday, June 14th, 2013

The number of carriers announcing driver safety to be their strongest concern has increased annually from 23% in 2012 to 36%, making it the leading worry among fleet managers according to a recent survey conducted by GE Capital Fleet Services. 1

Driver Safety

With over 500,000 accidents involving tractor trailers each year, according the United States Department of Transportation, carriers are improving driver safety through the use of technology and fleet management tools, training and education, better equipment and maintenance, providing incentives and recognitions for safe driving, screening applicants, and abiding by regulations including upcoming changes to the hours-of-service.

Here are a few ways in which Road Scholar Transport is placing an emphasis on the safety of our drivers:

*We operate newer equipment and newer trucksutilize disc brakes which are more effective in reducing stopping distance.

*Perform both pre- and post-trip inspections on our trucks to ensure safe equipment on the road, one of the reasons we have never been cited for a piece of faulty equipment involved in an accident.

*We have anti-rollover technology incorporated onto our trucks.  These stability control systems are especially good for icy or wet weather conditions where wheels lose their grip, or taking a curve too quickly, which can result in a rollover.  Drivers may not sense a rollover could be starting, which is where the ESP’s row and yaw stability sensors come into play.  The row sensors work to prevent rollovers while yaw sensors prevent slide, spin, or jackknife situations.  The ESP automatically distinguishes the problem and quickly corrects it by reducing the engine throttle and applying the brakes.

*Road Scholar Transport also has anti-collision technology on our trucks.  These ACB systems (Active Cruise with Braking) allow our trucks to maintain a set distance of 8/10ths of a mile marker behind a forward vehicle.

When cruise control is off, the ACB will deliver a beeping alert, which gets faster and louder when closing in on a vehicle, as well as a visual warning on the dashboard showing how far the vehicle is from our truck.  When cruise control is on, the ACB will automatically reduce the throttle, use the engine retarder, or apply the brakes (delivering 1/3 the vehicle’s power but the driver can apply the rest if needed) in order to maintain a set distance from the vehicle ahead and help avoid accidents.

Other Findings

The leading issue in last year’s survey, coming in at 26%, cost savings is still a top issue for fleet managers, placing second this year at 22% tied with workforce productivity. 1 To help manage these costs, carriers stated the following strategies:  vehicle purchasing decisions (42% of those surveyed), “activating telematics and analytics solutions (31%), and managing maintenance expenses (28%).” 1

The survey also found that 61% of the carriers already have turned towards alternative fuel vehicles with only 19% stating that they have no intentions of adding these vehicles in the near future. 1

Trucking companies, especially those who operate reefers, are turning towards natural gas fuel rather than diesel, which can save them up to $1.50 a gallon and help them meet emissions standards, but at the same time, face challenges which include difficulty finding liquefied natural gas stations.

To learn more about GE Capital Fleet Services visit www.gefleet.com/‎.

Do you agree that driver safety is the number one concern among fleet managers?  What is your primary concern?

1http://www.genewscenter.com/Press-Releases/Driver-Safety-Becomes-Top-Priority-of-Fleet-Managers-3ffe.aspx


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Trucking Reliance Increases but Rising Costs Spell Trouble for Small Carriers

Friday, June 7th, 2013

Trucking continues to dominate as the primary means of transporting freight over any other mode in the United States.  In the American Trucking Associations’ ATA American Trucking Trends 2013 report issued last week, trucking increased last year compared to 2011, accounting for 9.4 billion tons of freight (68.5% of all domestic shipments). With 6.9 million trucking-related employees, 2012’s trucking hit “$642.1 billion in gross freight-related revenues, or 80.7 percent of the nation’s freight bills.” 1

Bob Costello, ATA Chief Economist explains, “As the nation continues to travel the road to recovery following the Great Recession, it is becoming increasingly clear that trucking is leading the way.”

With shippers heavily relying on trucking to get their products delivered to customers on time, it may come as a surprise that only 2.8% of fleets contain over 20 trucks, with 90.5% of carriers operating six or under. 1 But increased costs spell trouble for small carriers.

“Smaller carriers can’t handle the increased costs of industry regulations and can’t hold their heads above water any longer,” spoke ATA Chairman Mike Card at the Great West Fleet Executive Conference held last week.  “Trucking has been consolidated.  The primary reason for consolidation in the trucking industry is the costs associated with increased regulation.” 2

Among these regulations Card is referring to include the following:

-Revisions to the hours-of-service, becoming effective July 1st, which include a restart provision containing two consecutive breaks between the hours of 1 a.m. and 5.am., reducing a driver’s work week from 82 to 70 hours, as well as a mandatory 30-minute break if 8 hours or less have passed since the driver’s last off-duty period.

-CSA, which is holding carriers and drivers more accountable, is limiting the number of unsafe drivers from the road, and thus, a carrier’s fleet.

-The mandatory use of electronic onboard recorders, which Federal Motor Carrier Safety Administration’s Anne Ferro believes will be proposed by September, would further dig into carrier’s pockets.

Other mandates Card referred to included “emissions standards, anti-lock brakes, fuel standards, and more.” 2

As Card explained, “It doesn’t matter how old you are.  It matters how big you are. If you’re not big enough and profitable enough to handle the additional cost of regulation, you’re going to struggle to survive,” stating that carriers “basically have only three options for leaving the industry, ‘merger, sale or death.’” 2

In fact, Card posed the idea that one day the trucking industry will have consolidated so far that it could be left with only four or five carriers to choose from, like the airline industry, and that similarly, shipments will be booked online. 2

road scholar transport

Road Scholar Transport utilizes safe equipment driven by qualified, uniformed drivers every day. Visit our website to learn how you could become part of our team!

An emphasis on the use of social media, education, uniformed drivers, and clean and safe equipment needs to be utilized to help remake the industry’s image, Card also noted. 2

For a copy of the ATA’s American Trucking Trends 2013 visit trucking.org.

Do you think that trucking will eventually consolidate to 4 or 5 carriers to choose from like Card poses?

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1http://www.thetrucker.com/News/Stories/2013/5/29/NewreportunderscorestruckingsessentialroleinUSeconomy.aspx

2http://www.ccjdigital.com/atas-card-costs-regulations-forcing-out-truckings-first-generation/

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Drivers, Industry Factors, and Healthcare Changes Among Topics Discussed at CCJ Spring Symposium

Thursday, May 30th, 2013

The Commercial Carrier Journal (CCJ)’s Spring Symposium took place at the Ross Bridge Golf Resort & Spa in Birmingham, AL last week featuring speakers Dr. Benjamin Carson (author of America the Beautiful: Rediscovering What Made This Nation Great), Don Mann (author of Inside Seal Team Six: My Life and Missions with America’s Elite Warriors) and Bob Costello (chief economist, American Trucking Associations).  Topics discussed at the event included the following:

Driver Incentives/Pay Increases

The number of trucking companies offering sign-on bonuses has escalated to nearly 50% from 12% of carriers in 2011, with amounts ranging from $250-$5,000 per driver and $2000-$15,000 for teams, varying based on supply and demand. 1

The tactic of offering sign-on bonuses is being used as a strategy by carriers to help cope with the driver shortage, which is expected to only get worse in forthcoming years.  As consultant Gordon Klemp explains, in the next decade, “25% of today’s drivers will retire or leave due to a physical issue” along with “generous unemployment pay that may encourage some drivers not to find jobs until their benefits run out.” 1

But while drivers are in high demand, carriers are less likely to offer increases in base pay and more likely to offer performance-based pay for better fuel consumption, safety, customer feedback, and more.  As Klemp states, “These carriers understand that if the driver does this for me, I can do this for them.” 1

Driver pay increased only slightly in 2012’s 4th quarter to 1.1% for dry van drivers and 0.6% for refrigerated while owner-operators seen only a 2 cents per mile dry van rate increase and 1 cpm refrigerated increase. 1 To account for driver pay increases, shippers can expect to see rate hikes as well.

Factors Affecting the Industry

The American Trucking Associations chief economist Bob Costello spoke on several positive and negative factors facing the trucking industry.  While Costello explained that “the government is the primary factor holding back economic growth, pointing to tax increases, the sequester, budget debates, and lingering uncertainty over the implementation of the affordable Healthcare Act next year,” he did offer hope for the industry. 2

The housing industry has already grown nearly 24% in the last year with another 25% growth expected within a year’s time, which can mean large opportunities for flatbed carriers. 2

Along with housing market increases, factory output is expected to rise as well.  Already up 3.4% in 2013 and predicted to likely increase another 4% next year, Costello explains that “thanks to technology increases, the U.S. is now competing evenly with China, India and Brazil in factory output and that will naturally generate a lot of truck freight in the coming years.” 2

U.S. energy production is also booming and the U.S. “could be totally energy independent by as soon as 2020.  Last year saw the greatest surge in crude oil production in this country’s history thanks to fracking and that is very good news for trucking — particularly the heavy freight segments of our industry. If these current trends continue, there is a real possibility the U.S. could be the largest oil producer on the planet by 2020 while our current energy consumption levels are the lowest they’ve been in 17 years,” Costello encouraged. 2

Healthcare Changes for Carriers

healthcare

On January 1, 2014, the Patient Protection and Affordable Care Act will go into full effect.  As AHM Financial Group’s Tom Goedde states, the Act will “add a lot more to business costs,” requiring companies with 50 or more employees to offer healthcare coverage to its staff or else pay a penalty. 3 These companies must offer “affordable” health coverage (defined as “no more than 9.5% of an individual’s W2 earnings or monthly rate of pay”), resulting in a $3,000 per person fine if they do not do so. 3

Although small companies are not required to offer healthcare to its employees, those that do will face higher costs.  According to Goedde, “Large companies should expect a 20-25% increase, small companies a 25-50% increase, and individuals a whopping 116-percent increase over pre-reform numbers.” 3

In order to retain employees, 90% of companies researched intend on retaining their plan coverage. 3

To learn more about the Patient Protection and Affordable Care Act visit http://www.uschamber.com/health-reform.

Road Scholar Transport offers its employees a comprehensive benefits package.  We are currently looking for professional truck drivers.  Visit Road Scholar’s employment opportunities section at http://www.roadscholar.com/employment.php to apply online.

What impact do you think the Affordable Care Act will have on the trucking industry?  Are you in support or opposition?

Do you believe that small carriers not required to offer healthcare under the Affordable Care Act will drop their plan coverage to prevent a 25-50% predicted increase or sustain coverage to retain employees?

1http://www.ccjdigital.com/carriers-favoring-sign-on-bonuses-performance-based-driver-pay/

2http://www.ccjdigital.com/atas-costello-bullish-on-truckings-long-term-fortunes/

3http://www.ccjdigital.com/affordable-care-act-bringing-sweeping-healthcare-changes-for-carriers/

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Hours-of-Service Changes: What Carriers and Shippers Can Expect

Friday, May 24th, 2013

Despite opposition from numerous trucking groups, the fifth set of changes to the hours-of-service regulations since 2003 is still on track with an effective date of July 1st. Among the revisions include a restart provision containing two consecutive breaks between the hours of 1 a.m. and 5.am., reducing a driver’s work week from 82 to 70 hours, as well as a mandatory 30-minute break if 8 hours or less have passed since the driver’s last off-duty period.

As Ron Sucik, founder of RSE Consulting explains, while the CSA will further increase driver shortage by taking unsafe drivers off of the road, the upcoming HOS will reduce productivity of those remaining.

What Can Be Expected

Carriers can see a 5-10% loss in productivity, according to the Owner-Operator Independent Driver Association, due to scheduling and delays resulting from the HOS changes, with impacts hitting long-haul carriers hardest as well as dedicated moves which are planned with maximizing a drivers’ 11 hours within a 15 hour work day.

With a shorter workweek, and no way of guaranteeing that a driver will exactly take a 30 minute break instead of longer, appointments and routes will need to be readjusted to accommodate delivery windows.

The National Grocers Association noted that these changes would disproportionately impact its members. “Grocery stores rely on deliveries early in the morning, especially for perishable goods that have a limited shelf life and must be on the shelves when stores open. With the changes to the rule, lead times for perishable goods will increase, leading wholesalers to increase inventory levels to maintain service. All of these changes would lead to increased costs throughout the supply chain.”1

To accommodate for the driver shortage and capacity concerns, carriers will need to recruit additional drivers to their fleet, pay current drivers more in order to retain them, as well as “add trucks to offset the decrease in available hours per driver.”2

Carriers are expecting up to a 33% loss in revenue with additional operated costs estimated to hit between $10,000-$25,000 per truck. 2 In order to account for these costs, shippers can expect to see rate hikes between 4-10% this year.

Carriers are expecting up to a 33% loss in revenue with additional operated costs estimated to hit between $10,000-$25,000 per truck. 2 In order to account for these costs, shippers can expect to see rate hikes between 4-10% this year.

To help prevent your business from being caught in a driver shortage, and to save money in the long term, shippers should consider the following tips:

-Establish carrier meetings in advance.  Stop bidding out your business year.  Instead, establish and grow your relationship with a specific carrier(s).

-With that being said, work hand-in-hand with carriers to schedule routine shipments.  If a carrier knows that a particular lane will run a specific time each week or month, they can schedule backhaul, cutting back on costs for both the carrier and shipper.

-If you do not have a load that ships on a specific time of week/month, it is best to plan your lanes ahead of time.  Giving carriers a day or more notice can help them position their equipment efficiently.

-It is also beneficial to add additional carriers in cases where your primary carriers do not have the availability.

hos

Click Image to Enlarge

To view all of the 2011 HOS Final Rule Provisions, click the image on the right.

Are you having difficulty finding experienced carriers to move your freight in times of the driver shortage? Visit www.roadscholar.com to request an LTL or truckload rate today.

How do you think the upcoming hours-of-service changes will affect your company? What are you doing to prepare for the July effective date?

1http://logisticsviewpoints.com/2013/01/30/clock-ticking-on-hours-of-service-and-other-trucking-risks/

2http://blog.trinitylogistics.com/2013/04/regulatory-review-how-new-hours-of.html

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Drivers Seek Fair Treatment in Time of Shortage

Wednesday, May 22nd, 2013

It’s no surprise that there is a driver shortage affecting the industry with numbers expected to get worse.  With roughly 21% of truck drivers being of 55-65 years of age versus 8% between the ages of 25 and 29, the shortage is expected to range from 20,000 to over 100,000 drivers.

According to CarriersEdge, the level of importance placed upon wages does not weigh as heavily today as drivers are placing more emphasis on working conditions, benefits, equipment, personal life, and so on.  But as trucking companies search for drivers to fill their trucks and reduce capacity concerns, drivers search for fair treatment.

Earlier last month, the court ruled in favor of a female driver (Rachel Harrington) who was said to be sexually harassed by her supervisor, discriminated against due to her sex, and unjustifiably dismissed.1 Harrington, who was employed by Thunderbird One Limited, recounted an incident when she was ordered to “manhandle a load of around 800 kilograms.”  Threatened by colleagues that they would complain if she had not done her job, she attempted to move the load and was injured.  According to Harrington, when she told her manager, “she was met with ‘derision and laughter’ from employees, who blocked her access to first aid and refused to help her get medical assistance, telling her that “calling an ambulance would result in disciplinary action, and told her to seek transport to hospital from a competing firm a kilometre down the road.”1

Luckily, the company did not refute her allegations and Harrington received over $63,000 in lost wages and humiliation.

Aside from harassment and discrimination in the workplace, drivers are also on guard for being taken advantage of in an attempt to cover up a scandal or cut costs.

Just last week, two drivers filed a suit against Harbor Express, claiming that the company “misclassified hundreds of truck drivers as independent contractors” in an attempt to avoid providing them with rest breaks, lunch hours, workers’ compensation, and overtime.2 As one of the drivers explained, “Truck drivers are paid per trip, no matter how long they take. Delays leaving the port aren’t accounted for when being paid.  They don’t pay us a penny for the time we wait at the port.  I live paycheck to paycheck. I don’t have a savings account.”2 As many as 400 drivers who have been employed with the company since May 2009 could be affected.2
With driver turnover still high, CarriersEdge provides nine following ways to retain drivers:

-Compensation.  Although wages are not as much as a priority as in the past, drivers still need to make a living.  As CarriersEdge notes, many carriers are having a hard time raising rates in order to increase driver pay, and therefore, are taking more constructive measures in order to compensate drivers including rewarding them for better fuel mileage, safety, and customer feedback.

-Ask them.  One of the best ways to keep your drivers happy is by simply asking them.  CarriersEdge suggests driver surveys that cover a variety of topics from facilities improvements to your bonus system.

-Go online.  Technology is here to stay and online social media sites as well as a company website is one of the most efficient tools for recruitment.

-Be honest.  Do not provide drivers with high expectations in order to recruit them.  They will leave faster than they came on board.

-Proper orientation.  Don’t just show new drivers your rules and procedures but show them they will be treated with respect and introduce them to other employees.3

-Promote their health.  More trucking companies today are taking a concern with their drivers’ health and demonstrating that they care by opening onsite gyms, weight-loss programs, and health screenings.3

-Home time.  Provide drivers with the ability and assurance that they will be able to get home on a frequent basis.

-Promptness.  If a problem arises, resolve it in a timely manner.

-Stick to it.  Don’t try to resolve driver turnover through several different trial and error approaches but narrow your methods to a few and stick to them.

Road Scholar Transport is currently flight 93looking for professional drivers.  Our company operates in a localized footprint which allows our drivers to get home at least every other night.

Road Scholar is well focused on safety, security, and technology.  We operate excellent equipment and conduct the proper maintenance procedures keeping our drivers safe. In fact, we have never been cited for a piece of faulty equipment in an accident.

Road Scholar has an excellent reputation, treats our employees with respect, as well as rewards our drivers with safety bonuses, rewards for positive customer feedback, excellent wages, and a comprehensive benefits package.

To join Road Scholar’s fleet of drivers, click here to complete an online application.

With the upcoming hours-of-service changes, as well as increasing driver shortage, do you think that more trucking companies are going to be creating scandals/breaking the law in order keep drivers on the road longer without proper compensation?

1http://tvnz.co.nz/national-news/harassed-woman-truck-driver-awarded-63-000-5424015

2http://articles.latimes.com/2013/may/15/business/la-fi-port-lawsuit-20130515

3http://www.truckinginfo.com/channel/fleet-management/article/story/2013/05/9-ideas-to-find-keep-drivers.aspx

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FMCSA Announces New and Upcoming Proposals

Friday, May 17th, 2013

FMCSA

Building off of current regulations, the Federal Motor Carrier Safety Administration announced its new and forthcoming propositions, which included its recently posted Medical Examiner’s Certification Integration and upcoming no-defect Driver-Vehicle Inspection Reports proposals.

Medical Examiner’s Certification Integration Proposal

Last year, the FMCSA enforced validation of medical exams through random checks and took measures to eliminate fraudulent MECs and unsafe drivers from the road, including the requirement of drivers to receive medical certificates from an FMCSA-approved examiner, with most of the requirements going into effect in 2014. 1

Last week, the FMCSA included in the Federal Register the second part of the original ruling proposing the following requirements:

*Medical examiners would need to utilize a new Medical Examination Report Form when performing physical exams on drivers.2

*Medical examiners would be required to “use a prescribed form for the medical examiner’s certificate.”2

*Medical examiners will expedite the results process by sending completed physical exam results to the FMCSA the same day that the exam was performed.2

*The Medical Examiner’s Certificate information will be transmitted from the National Registry system to the State Driver Licensing Agencies electronically.2

*“Transmit to the SDLAs information about Medical Examiner´s Certificates that have been invalidated because a subsequent examination has found that the driver is not physically qualified.” 2

*Medical variance information for such drivers must be transmitted by the agency to the SDLAs electronically.2

For drivers, the changes would mean that they would no longer have to carry their medical certificates or documents since the information will be available electronically to local DMVs and law enforcement as well as would not have to verify the medical examiners National Registry Number.

If passed, the ruling would become effective in three years.

To view the FMCSA’s Medical Examiner’s Certification Integration proposal click here.

Driver Vehicle Inspection Reports

Last year, the FMCSA published a ruling that would omit intermodal equipment from submitting and retaining no-defect driver vehicle inspection reports, becoming effective June 12th.3

Now, the FMCSA is looking to apply a similar ruling to interstate truckers, which the Department of Transportation believes would save the industry $1.5 billion annually, hoping to issue a Notice of Proposed Rulemaking by Sept. 10th. 3

Also on the agenda is a proposal that would permit carriers to use e-signatures for electronic recordkeeping with no date set as of yet.3

To view all of the FMCSA’s final rulings and proposals visit http://www.fmcsa.dot.gov/rules-regulations/rules-regulations.htm.

What do you think of the FMCSA’s new and upcoming proposals?  Are you in support or opposition?

1http://www.etrucker.com/ovd/fmcsa-proposes-rule-to-immediately-transmit-medical-exam-results-to-state-licensing-agencies

2http://www.thetrucker.com/News/Stories/2013/5/9/FMCSAproposesruletoautomatedriversphysicalexamresults.aspx

3http://www.overdriveonline.com/fmcsa-easing-burden-on-driver-vehicle-inspection-reports/

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Hottest Black Market Product and Why

Wednesday, May 15th, 2013

It’s been the hottest target on the black market since 2010, accounting for 19% of all cargo thefts in 2012…food.  This trend has carried over into the first quarter of 2013 with food and beverage thefts making up 24% of stolen cargo at an average of $141,266 per incident, according to FreightWatch.

Why are food products so popular?

Food and beverages are hot black market items for a variety of reasons:

food products

*Lack of Security:  According to CargoNet’s Vice President of Operations Keith Lewis, “food and beverage cargo is popular because this product is often not secured as well as bigger ticket items” such as pharmaceuticals and electronics which carry high-tech tracking equipment.1

90% of cargo theft occurs while in transit via trucks, resulting in an annual loss of $35 billion, according to Tyco Integrated Security.  It goes without saying that stolen products, even if recovered, run a high risk of contamination concerns.  Road Scholar Transport specializes in product safety and security, cutting back on the handling of your products, which could lead to contamination, by offering 24-hour expedited service, dock-to-dock with NO transfers.  We can provide the exact route that the truck took with a time log noting every door opening/closing, temperature conditions within the trailer at any given time, and its exact location (right down to the breadcrumbs), along with protecting your freight with security features including Navalock.  Visit www.roadscholar.com to learn more about our services.

*Higher Returns:  As Tyco Integrated Security explains, although an average food theft incident has a loss of $100,000 compared to nearly $1 million for electronics, on the black market food is much more valuable, with food products being worth 70 cents on the dollar while electronics bring in 30 cents on the dollar or less. 2,3

Recent examples

In the past month, we’ve seen food and beverage thefts that resulted in stolen shipments valued as high as $200,000 worth.  Here are a few examples:

*Last month, 3,000 cartons of hamburger patties worth $100,000 were stolen from a shipping yard in New Jersey.  The patties, which were never recovered, are thought to be an insider job in which an employed tipped the thief off.

*What would hamburger patties be without cheese?  Also last month, 21 tons of muenster cheese was stolen with the intention of selling it to East Coast retailers at a discounted price.  Venjamin Balika pulled into Pasture Pride Cheese in Wisconsin and presented them with false paperwork which he used to secure 42,000 lb. of cheese manufactured by K&K Cheese in Wisconsin.  The shipment, which contained 1,135 cases of cheese, enough to make nearly 250,000 sandwiches, was valued at $200,000 and scheduled to deliver to a Texas location.

*$75,000 worth of Campbell’s soup was stolen in April after a tractor was stolen from a Florida truck stop. 3 Fortunately, the truck was equipped with GPS and the load was recovered.

*Earlier this month, 15,303 bottles of BluePrint juice worth $153,000 was stolen from a Long Island City warehouse by a fraudulent driver.  When the real driver showed up hours later, the company realized it was a heist and fortunately, was able to recover the stolen load and destroy the products due to contamination concerns.

Contact us below for a list of strategies that can help prevent your products from contamination risks.

Why do you believe food is the most targeted product by thieves?  Do you believe that accessibility and poor security measures are the number one reason?

1http://www.roadscholarawareness.org/reduced-security-leads-to-stolen-food-products/

2http://www.businessweek.com/articles/2013-05-08/the-growing-black-market-for-stolen-food

3http://money.msn.com/now/post.aspx?post=1230261d-63d0-4415-a527-0b0bf7da55b1

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Flight 93 Truck to Help Deliver Totes to Hurricane Sandy Victims

Friday, May 10th, 2013
hurricane sandy

Mantoloking, NJ Before and after Hurricane Sandy

The damaging winds and rain of Hurricane Sandy last October claimed the lives of over 100 individuals.  Among the most devastated areas were the Barrier Islands of NJ, with many of these people completely losing their homes.

The HALO Foundation of Akron, OH, whose mission is to “offer HOPE to the afflicted through the generosity of Service & Charity, involving intergenerational support from seniors to children,” conducted a drive last month to help aid those afflicted by Hurricane Sandy, collecting over 280 18-gallon totes of donations which included pet supplies, hygiene products, office supplies, clothing, and food, along with letters of encouragement written by local students and senior citizens.  Since, the Foundation has gathered 500 of these totes along with office furniture and several thousand dollars worth the food.

Volunteers ranged from all ages, from local senior facilities that knitted and crocheted blankets and other materials as well as made cards for the drive, to students, including a young girl whose overwhelming generosity asked that for her 10th birthday party people bring items for the drive rather than presents.

Working with JW Didado, Jersey Central Power and Light, and Rubber City Radio (where last month’s drive took place), the HALO Foundation was able to sort and pack the items which will be distributed to the Barrier Islands in NJ on May 16th in Road Scholar Transport’s Flight 93 awareness truck.

The truck, which memorials the heroes of Flight 93, portraying the names of the 40 lives lost that day, will be greeted by families of Flight 93 victims, the chief of police, Mayor, and local businesses and schools, along with students being present to help unload the truck.

To learn more about the HALO Foundation visit http://www.halofoundation.com and check out http://www.roadscholarawareness.org for more information on Road Scholar’s awareness campaign and to view our trucks.

flight 93

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Underride Guard Standards Inadequate, Critics Argue

Wednesday, May 8th, 2013

crash test

Since 1953, rear underride guards have been a federal requirement for interstate semi-trucks.  Despite this regulation, used as a preventative measure to stop cars from sliding underneath the trailer, nearly 5,000 people are injured and 400 others killed in underride truck collisions in the U.S. each year. 1

Due to current standards not providing strength, energy absorption or attachment method specifications, critics are seeking stricter regulations similar to Canada mandates which are 1.75 times stronger than U.S. requirements, which do not even require side guards. 2

According to the Insurance Institute for Highway Safety (IIHS), although “auto manufacturers have improved the ability of engine compartments to absorb the impact of a crash and protect passengers more effectively,” underride guards have been unchanged since the 1990s, failing at speeds as low as 30 mph. 1

In a recently released study crash chartconducted by the IIHS, eight popular semi-trailer models (Great Dane, Hyundai, Manac, Stoughton, Strick, Utility, Vanguard, Wabash) were tested for underride guard performance.  In a three test series, a 2010 Chevrolet Malibu traveled at 35 mph, crashing into a parked trailer.  In the first test, the car hit the center of the rear underride guard.  All 8 models passed this test.  In the second phase, the car crashed into 50% of the rear end, with 7 out of 8 of the models passing.  However, in the final test, in which the car only crashed into 30% of the rear, only Manac (a Canadian manufacturer) passed the test. 3 Manac’s guard design was found to be constructed differently than the other models with its vertical supports being “attached near the edges of the trailer to a specifically reinforced floor” whereas in other models, the supports are “attached to part of the trailer’s frame, nearer the center.” 3
As Underride Network consultant and former Indiana state trooper Joe Badger, explains, “Most of the bumper guards are inadequate.  They have developed some bumpers that are sturdy enough, but until the federal government mandates a more substantial bumper, they’re underriding them.” 2

As the National Highway Traffic Safety Administration stated, stricter regulations could be upcoming, as they plan to utilize data from a recent study when amending guidelines. 2

underride video
To watch the Insurance Institute for Highway Safety’s video on underride guards click the video on the right.

Do you believe that most underride guards are inadequate?  Should stricter federal standards be required for both side and rear guards in the U.S.?

1http://www.lawfulspeech.com/8/post/2012/05/tractor-trailer-underride-guards-may-be-inadequate-to-save-lives-in-trucking-accidents.html

2http://www.theindychannel.com/news/call-6-investigators/safety-advocates-push-for-change-in-tractor-trailer-underride-guards

3http://www.lawfirmnewswire.com/2013/04/study-tests-the-limits-of-truck-safety-systems/

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