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2012 Cargo Theft Decreases

Wednesday, January 30th, 2013

FreightWatch International released its 2012 cargo theft report on Monday, indicating a slight decrease in thefts last year.

According to the report, cargo theft dropped 0.5% to 940 thefts with nearly 81% of these being full truckloads or containers.  Hijackings/violent thefts decreased as well, accounting for only 2% of all thefts. 1

Pharmaceuticals, a high-valued target, announced a drop both in instances and value.  Compared to 2011, pharmaceutical product theft has decreased from 36 to 30 last year with the average stolen value dropping drastically from $585,000 to $168,219, an even larger drastic decrease from 2009’s $4.2 million per incident statistic, according to the Pharmaceutical Cargo Security Consortium.

Overall, there were 14 full truckload pharmaceutical thefts with the majority taking place over the weekend or holiday, which is unsurprising being most thefts took place last year on Fridays and Saturday with January, March, and April being the busiest time. 2, 3

white paper

Learn about supply chain security and the risks/importance of carrier selection by requesting your free white paper by clicking the image above.

In addition, 10 out of 14 of these thefts did not employ GPS tracking technology, creating a difficult means of recovery which can lead to contaminated products, recalls, consumer health issues, and brand equity concerns.

Although cargo theft numbers/value decreased last year, there was still an average of 2.6 thefts per day with 75% of these thefts concentrating in six key states: California, Florida, Texas, New Jersey, Georgia, and Illinois. 1

Jewelry/accessories ranked in the number spot for the greatest loss per incident, averaging $425,000 while food/drinks were the most popular stolen product. 3 Metal thefts significantly increased as well, doubling from 73 thefts in 2011 to 130. 3

FreightWatch International also reported a rise in the number of fraudulent pick ups.  More and more thieves are turning towards the internet to steal freight, posing as a carrier in order to seize loads from broker loads.  With many brokers not vetting out carriers and instead, grabbing the cheapest rate, thieves are making away with shipments.

Road Scholar Transport is helping you prevent risk of cargo theft with the following tips:

-Do not leave cargo unattended.  If necessary, be sure that the trailer is in a secure area.

-Vet out carriers and verify drivers prior to trusting them to handle your freight.

-Utilize trailers equipped with security features including satellite tracking, navalock, geo-fencing, and electronic door monitoring.

Want to learn more about how Road Scholar is combating cargo theft in our fleet?  E-mail us here and we will send you six security methods we use to prevent the risk of our customer’s freight being stolen.

To register for FreightWatch International’s cargo report click here.

1http://www.ccjdigital.com/cargo-theft-numbers-drop-in-2012-after-2011-increase/

2http://www.securingindustry.com/pharmaceuticals/pcsc-says-pharma-cargo-theft-declined-in-2012/s40/a1597/

3http://www.businessinsurance.com/article/20130122/NEWS07/130129955?tags=|312|303

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Posted in Freight Quotes, LTL Freight Quotes, LTL freight, Northeast Regional Freight Quotes, Services, Trucking Industry News | Comments Off

Cybercrime and Climate Change Spell Danger for Supply Chain

Friday, January 25th, 2013

According to a report released earlier this week by World Economic Forum, 80% of companies across the globe place increased supply chain security a priority, expressing concerns evolving from cybercrime, natural disasters, and climate changes. 1

Cybercrime

The number of crimes occurring through the internet is expected to cybercrimeincrease this year and no one is safe.  Whether you are a shipper, manufacturer, carrier, or consumer, cybercrime affects everyone and it is becoming a larger issue in the trucking industry throughout the years.

More and more instances of fraudulent companies using online methods to develop and steal freight are erupting, posing a concern for those shippers utilizing brokers, since they do not know who exactly is handling their freight or if the company now entrusted with their goods is legit.

But how are thieves securing these loads in the first place?  Many times it is through brokers who post their loads online, and who do not always vet out drivers before handing them your shipment.  This can result in fraudulent companies stealing your freight or double brokerage schemes.

Where’s my freight?

Let’s look at a case in March 2011 where a fraudulent trucking company utilized a number of brokers to make away with several shipments.

Realizing the impact that freezing weather conditions would play on produce sales, E&A Transport Express quickly registered with the Federal Motor Carrier Safety Administration and began to search out brokers listing produce loads, posing as a Miami-based trucking company.  By taking loads that were given a few days for delivery due to distance, the company had enough time to pull of the theft before the goods were reported missing/undelivered.  They managed to secure eight loads of produce, a high target at the time due to their rising prices, making away with close to $300,000, not to mention creating a widespread concern over the reselling of potentially contaminated products.

On the other hand, if the shipper had transported their cargo with Road Scholar Transport, they would been able to track their shipment live as well as have their freight constantly monitored by Road Scholar employees so that if a driver goes off route, the driver and truck are immediately contacted and checked of any problems.

Double Brokerage Schemes

Another common cybercrime affecting the transportation industry are double brokerage schemes.

Last July, Pauline Robinson-Kirkland was charged with six counts of fraud after setting up over 15 trucking company names from January 2006 to December 2009, using these companies to bid on loads posted online. 2 Once a load was granted, Robinson-Kirkland would ask for payment to be sent to her company, while reposting the same load, never informing the carrier that it was being double-brokered. 2 Robinson-Kirkland received nearly 69 payments, never paying the carrier who actually transported the freight.

Natural Disasters/Climate Changes

Natural disasters can strike at any moment, affecting profits as businesses attempt to recover from damaging affects (as was the case in the recent Hurricane Sandy).

70% of companies, according to the Carbon Disclosure Project (CDP) and Accenture’s research which surveyed 2,415 companies composing of suppliers and purchasers, believe that climate change affects their revenue as well, with 678 of these companies investing in emission reduction initiatives. 3

Emissions

According to CDP’s research, “Suppliers are significantly less prepared than their clients to respond to climate change, potentially threatening customer relationships and heightening supply chain vulnerability,” with 38% of suppliers setting emission reduction initiatives verses 92% of purchasing companies.” 3

29% of suppliers have already reduced emissions, leading them to save nearly $13.7 bn. 3 As Accenture’s Gary Hanifan explains, “This report provides clear evidence that those who are most transparent about their climate change risks are more likely to achieve the greatest emissions reductions. And they are also more likely to enjoy monetary savings as a result of their responses to climate change risks. But the return on investment by the most proactive companies will not reach its full potential unless those companies can encourage their suppliers to follow their lead.” 3

Road Scholar, a SmartWay Company

smartway

Recognized by the U.S. Environmental Protection Agency for committing to improve the environmental performance of our customer’s freight operations, Road Scholar is collaborating with the SmartWay Transport Partnership with a focus on reducing emissions and fuel consumption.

SmartWay, launched in 2004 by EPA and Charter Partners and has grown to include over 3000 partners since, works with carriers to track fuel consumption/improve performance, identifying equipment that helps save fuel and lower emissions.  Becoming a member of SafeWay, Road Scholar vows to contribute to the Partnership’s savings of 1.5 billion gallons of fuel, $3.6 billion in fuel costs, 14.7 MMT of carbon dioxide (CO2), 215,000 tons of oxides of nitrogen (NOx) and 8,000 tons of particulate matter.

Road Scholar’s 2012 trucks are 40 times cleaner than 2007 engines.  In fact, newer equipment/engines “can improve their performance and reduce key emissions by up to 90 percent.” 4

Road Scholar has already gone eco-friendly and is offering the following advice on how you too can reduce your carbon footprint:

-As stated previously, newer trucks/equipment, fuel efficiency methods (such as eco-friendly fuel choices, reducing deadhead, and planning routes to make mileage more efficient), as well as  joining a program such as SmartWay can help reduce the amount of diesel your trucks emit.

-Speed control:  It goes without saying, the faster you go, the more fuel you burn.  For example, traveling at 60 mph would burn fuel at a rate of 6 mpg.  Traveling at 70 mph would burn fuel at a rate of 5 mpg…and so on.

-Skirting on trailers slipstreams the trailer and reduces drag created by rushing air.  In fact, those skirts that are verified by SmartWay are known to increase fuel efficiency by 4-7%. 5

-Cruise control typically has a .3% fuel efficiency gain by helping your driver maintain a steady speed instead of constantly stepping on the gas and then braking.

-Progressive shifting:  For example, shifting at lower revs in lower gears rather than tacking out the rev/minute in each gear.

-A good driver vs. a cowboy, who is constantly running fast.

With these tips, you too can become an eco-friendly carrier and help our environment.

For information about the SmartWay Transport Partnership visit www.epa.gov/smartway.

Do you prefer to ship with an eco-friendly carrier?

1http://articles.economictimes.indiatimes.com/2013-01-22/news/36484379_1_chains-natural-disasters-risks

2http://www.landlinemag.com/Story.aspx?StoryID=23924

3http://finchannel.com/Main_News/Business/122499_Major_Climate_Threat_to_Global_Supply_Chains_Identified_by_New_Research_/

4http://www.marketwatch.com/story/in-the-past-10-years-emissions-from-diesel-trucks-and-buses-have-been-reduced-by-99-for-nox-and-98-for-particulate-emissions-2012-02-21

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Posted in Freight Quotes, LTL Freight Quotes, LTL freight, Northeast Regional Freight Quotes, Trucking Industry News | Comments Off

2013 Hazmat Changes in Effect

Wednesday, January 23rd, 2013

This month, the Pipeline and Hazardous Materials Safety Administration (PHMSA)’s HM-2151 exited the voluntary transitional stage began in December 2006, becoming mandatory January 1, 2013.

The PHMSA (which “develops regulations and standards for the hazmat classclassifying, handling and packaging of over 1 million daily shipments of hazardous materials within the United States”)’s ruling “now rearranges the order of information on US shipping documents to be more in synch with international documents, specifically the current UN Recommendations for Transport of Dangerous Goods.” 1

Whereas in the past, shipping papers would first state the shipping name followed by hazard class, identification number, and packing group, the new standard places identification number first (a unique four-digit number which aids in identifying the material), followed by shipping name, hazard class, and packing group. 1

According to PHSMA, “Harmonization facilitates international trade by minimizing the costs and other burdens of complying with multiple or inconsistent safety requirements for transportation of hazardous materials.  Harmonization has also become increasingly important as the volume of hazardous materials transported in international commerce grows.  Safety is often enhanced by creating a uniform framework for compliance.” 2

Other HMR Amendments

In addition to changes on hazmat shipping papers, the PHSMA also made amendments to the Hazardous Materials Regulations (HMR) which include the following (provided by http://safety.blr.com):

-“Updated references to international regulations” 2

-“Addition, revision, or removal of certain proper shipping names, hazard classes, packing groups, special provisions, packaging authorizations, bulk packaging requirements, and passenger and cargo aircraft maximum quantity limits from the hazardous materials table” 2

-“Adoption of new HMT entries for chemicals under pressure and specify acceptable bulk and nonbulk packagings, filling limits, and appropriate segregation requirements” 2

-“Adoption of minimum size requirements for the “UN” or “NA” markings specified at 49 CFR 172.301” 2

-“Adoption of changes throughout Part 173 (packaging requirements) to  (1) authorize the use of wood as a material of package construction for certain explosives; (2) authorize the use of metals other than steel or aluminum for drums and boxes; and (3) where appropriate, permit the use of nonremovable head drums in those instances where removable head drums are otherwise authorized” 2

-“Adopt a new packaging definition, operational controls, performance-oriented standards, and testing requirements for flexible bulk containers” 2

Food Safety Modernization Act of 2011

Last week we presented you with the FDA’s recent proposals for increasing food safety in the supply chain (read article here).  Among these proposals is the requirement of facilities to undergo the following “(1) a hazard analysis (identifying foreseeable hazards), (2) preventative controls (to minimize the identified hazards), (3) monitoring procedures (to ensure compliance), (4) corrective actions (in the event of a concern), (5) verification (that preventive controls are implemented), and (6) recordkeeping (to evidence compliance).” 3

Hazmat Stats

According the U.S.  Department of Transportation, in the last decade, “the amount of hazmats transported on a daily basis resulting in a high level of risk” increased greatly.  In fact, 3.1 billion tons of hazmat are transported annually in the U.S. with trucking responsible for over 800,000 hazmat shipments per day.

hazmat incidents

Click to enlarge

With over 800,000 hazmat shipment on the road each day, the level of risk with these loads remains high.  In fact, according to the Hazmat Intelligence Portal, 3,441 hazmat incidents occurred while IN TRANSIT last year, resulting in 10 fatalities, with a total of 13,140 hazmat incidents total in 2012.  See chart on the right.

How Can We Help?

Road Scholar Transport is a hazmat certified carrier, hiring only the most professional and experienced drivers who are subject to background checks and safety tests well beyond the industry standard.  Road Scholar’s hazmat certified drivers participate in a training program that keeps them “up to speed” on the latest techniques to prevent accidents and protect hazardous cargo.  Combine Road Scholar’s drivers’ experience with our strict in transit security protocols and the result is a “security officer” behind the wheel escorting your freight.

Road Scholar also employs state of the art rollover and collision sensing to protect your freight by preventing what could potentially be a catastrophic accident if it were to involve dangerous chemicals.

Not only that, but we have record of what was inside the trailer before your freight, before that, within the last month, and so on, as well as what has been transported since the last time the trailer was cleaned.  Would you want your food products transported in the same trailer as a toxic chemical?

Visit www.roadscholar.com to learn more about Road Scholar’s hazmat service.

How difficult is it to find qualified hazmat drivers today?  Do you believe this number to be decreasing?

For a revised version of the Hazardous Materials Table posted by the Office of Hazardous Materials Safety click here.

1http://bulktransporter.com/management/new-hazmat-shipping-paper-rule-0102/

2http://safety.blr.com/workplace-safety-news/transportation-safety/hazardous-materials-transportation/PHMSA-launches-2013-with-harmonization/

3http://www.lexology.com/library/detail.aspx?g=b420132d-9fa6-4782-9a0f-f13780360f51

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Posted in Freight Quotes, LTL Freight Quotes, LTL freight, Northeast Regional Freight Quotes, Services, Trucking Industry News | Comments Off

2013 Brings Increased Problems for Carriers

Friday, January 18th, 2013

Trucking companies will face a greater challenge this year as volumes, rates, and capacity issues are forecasted to grow, increasing difficulties among carriers.  As Transport Capital Partners (TCP)’s Richard Mikes notes, “Volume and rate outlook does not bode well for cash flows and profits in 2013 for an industry under costs and availability pressure for drivers.” 1

Freight Volumes

The TCP’s Fourth Quarter 2012 Business Expectations Survey, which evaluated trucking executives, forecasted for the first time since 2009’s 1st quarter that freight volumes will remain flat. 1

Last month, the DAT North American Freight Index noted that although freight volumes declined 18.4% from November to December, December volumes were up 5% compared to the same time last year and were at their highest December mark since 1996. 2

Capacity

Carriers are refusing to add capacity unless they are “tied to specific dedicated fleet contracts, as supply and demand is now roughly in balance despite weak U.S. economic growth,” stated Stifel Nicolaus senior transportation analyst John Larkin. 1

perfect storm for capacity shortage

Click to enlarge

Capacity shortage is the result of several factors (see The Perfect Storm for Capacity Shortage on the right) including new, stricter regulations in the trucking industry such as “speed limiters, revised drug testing procedures, and the medical certification process.” 1

One of the regulations causing great debate is changes to the Federal Motor Carrier Safety Administration’s CSA, including the revision of the hours-of-service provision which becomes effective July 1st.  This revision is expected to reduce a driver’s work week from 82 to 70 hours (a 17% decrease).

Earlier this week, the Office of Inspector General of the Department of Transportation announced an audit of the Federal Motor Carrier Safety Administration’s CSA, in particular concerns over its Safety Measurement System, stating, “Specifically, our audit will assess whether FMCSA has (1) established adequate controls to ensure the quality of the data used to evaluate carrier performance and risk, and (2) effectively implemented CSA enforcement interventions.” 3

Meanwhile, stricter regulations such as CSA are adding to the driver shortage, not only by reducing the number of unsafe drivers on the road, but the cost of training the younger generation and inexperienced drivers is acting as a barrier as well.

In order to attract drivers to their fleet, carriers are competing with wages, bonuses, and other incentives, but in order to increase driver pay, rates need to rise as well, another challenge carriers are facing.

Rates

Despite capacity shortages, nearly 46% of carriers expect rate trendrates to remain the same while 44% expect to see only a moderate increase (this percentage favorable among large carriers). 1 Only 21% of the carriers participating in TCP’s survey increased their rates within the last few months which is said to be “the lowest percentage since February 2010.” 1

Dedicated rates, according to Stifel Nicolaus, are expected to remain flat or increase by only 2% while contract rates may actually decrease 1% or increase by 2%.1

For more information regarding the Safety Measurement System and the new Hours of Service rule changes, contact us via the form below or by visiting www.roadscholar.com.

Do you feel that the trucking industry will face greater challenges in 2013?  What is your outlook for volume, rates, and capacity?

1http://fleetowner.com/fleet-management/challenges-continue-grow-carriers

2http://www.supplychaindigital.com/global_logistics/dat-freight-index-reports-record-december-volume

3http://www.thetrucker.com/News/Stories/2013/1/15/OIGinitiatesauditofCSA.aspx

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FDA Proposes Two Major Regulations for Increased Food Safety in Supply Chain

Wednesday, January 16th, 2013

On January 4th, 2011, the Food Safety Modernization Act (FSMA) was signed into law by President Obama, making it the first significant food safety reform in over 70 years.

Earlier this month, the US Food and Drug Administration (FDA) progressed forward in releasing two major proposals which, instead of intended towards consumers, would affect “areas such as suppliers, manufacturing plantshttp://www.roadscholar.com/blog/wp-admin/post-new.php, wholesale dealers, and transportation.” 1

The FDA’s following proposed rules “build on existing voluntary industry guidelines for food safety” and “are key to the preventive food safety approach established by the 2011 FDA Food Safety Modernization Act.” 2

1.  Manufacturing, process, packing, or holding facilities of human food products that “are required to register with FDA under FDA’s current food facility registration regulations,” must “develop a formal plan for preventing their products from causing foodborne illnesses.” 2,3 This includes:

a) “Analyzing potential hazards associated with their facilities” along with a recall plan. 4

b) “Develop and implement controls to significantly minimize or prevent those hazards.” 4

c) “Verify the controls are working (and take corrective action if they are not).” 4

d) “Periodically reassess those hazards and controls.” 4

This proposal is expected to cover an anticipated 97,600 domestic and 109,200 foreign facilities. 5

2.  “Enforceable safety standards for the production and harvesting of produce on farms.” 3

Risks

Do you know that 1 in 6 Americans suffer foodborne illnesses, affecting 48 million Americans, hospitalizing nearly 130,000 and causing nearly 3,000 fatalities annually?

Not properly vetting out brokers or carriers puts your product and brand equity at risk through recalls and vicarious liability claims, due to accidents, spoilage due to negligence, and faulty equipment.  Road Scholar outlines these risks and how to prevent them in our white paper:  Supply Chain Insanity: Would you Choose a Babysitter Found on Craigslist? Click here for your free copy.

According to the FDA, its proposal would attribute to nearly 1 million of food illnesses each year and save nearly $2 billion annually from the economic cost of illnesses. 5 During its first year in effect, the proposal is expected to cost $701 million with “an annualized cost of $472 million using a 7 percent discount rate.” 5

How Can Road Scholar Help?

Road Scholar Transport provides you with six ways to keep your freight safe from contamination:

aluminum floor

*We utilize aluminum floor trailers which can help prevent contamination built up on wooden flooring over time, creating a more sanitary environment for your products.

*We conduct regular sweeps on all trailers to ensure that your freight is being transported in a clean, and therefore safe, environment.

*We have record of what was inside the trailer before your freight, before that, within the last month, and so on, as well as what has been transported since the last time the trailer was cleaned.

*We employ reefer tracking with the ability to adjust trailer temperature remotely from headquarters, complete with unlimited user-defined temperature alerts, displaying the history of the temperature inside the trailer (even months after delivery) to ensure that your freight was transported under the proper conditions.

* Electronic Door Monitoring:  Displays the time of every door opening/closure alerting of any suspicious activity.

Effective Date

Currently, there is a 120 day comment period on the FDA’s proposals.  If published, the rule would take affect after 60 days.  Compliance dates are as follows (according to the FDA website):

-“Small Businesses—a business that employs fewer than 500 persons and that does not qualify for an exemption would have to comply two years after publication of the final rule.” 5

-“Very Small Businesses—Three options are being proposed for the definition of a very small business: less than $250,000,  less than $500,000, and less than $1,000,000 in total annual sales of food, adjusted for inflation. Very small businesses, which would be considered “qualified facilities” and subject to modified requirements for preventive controls, would have to comply three years after publication of the final rule.” 5

-“Other Businesses—a business that is not small or very small and does not qualify for an exemption would have to comply one year after publication of the final rule.” 5

Read the FDA’s proposed regulations at http://www.fda.gov/Food/FoodSafety/FSMA/ucm334115.htm.

Would you like to know more about Road Scholar’s ReeferTrak?  Contact us at www.roadscholar.com.

1http://www.hayspost.com/2013/01/14/extension-agent-u-s-food-supply-generally-very-safe/

2http://www.lexology.com/library/detail.aspx?g=d34b3dbc-273a-4e9f-ac48-3871a85e8a58

3http://www.cattlenetwork.com/cattle-news/latest/DC-Watch-Debt-ceiling-debate-next-on-US-agenda–186493231.html

4http://www.feedstuffs.com/ME2/dirmod.asp?sid=F4D1A9DFCD974EAD8CD5205E15C1CB42&nm=Breaking+News&type=news&mod=News&mid=A3D60400B4204079A76C4B1B129CB433&tier=3&nid=CAF887EA5AC643D8A4B846D700FC85DC

5http://www.fda.gov/Food/FoodSafety/FSMA/ucm334115.htm

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Road Scholar is Proud to Announce our New Awareness Truck!

Friday, January 11th, 2013

Earlier this week, Road Scholar Transport had the pleasure of rolling out our newest awareness truck, spreading the word to LIVE BEYOND LUPUS.

The truck was created in memory of Tanitha Kulsiri, the daughter of Nuj Fungladda who is employed at one of Road Scholar’s valued customers, Veltek.

Tanitha passed away from Systemic Lupus Erythematosus (SLE), a chronic, autoimmune disease that can affect any part of the body, in 2003 at the age of 22.

“Tanitha was diagnosed with SLE at 13 (shortly after her 13th birthday),” explained Ms. Fungladda.  “Sadly, she was one of those whose Lupus affected her severely. It affected her kidneys right from the beginning and spread to her heart later. Her Lupus never went into remission as such she had been in the hospitals on a regular basis throughout her life. I remembered teasing her when she was still in high school that they should create an award for her for missing so many days of school and still maintain excellent grades and apparently had graduated in National Honor Society as well. She was always a very active kid both academically and with extracurricular activities. She was in marching band, winter guard, drama (as stage manager and stuff), and school broadcast member. She was involved in local drama theaters as well.

While attending Temple University, she was an editor and a writer at Temple News, and a bartender on the side and still managed to maintain her grades (dean’s list and was receiving a scholarship). Unfortunately, she had to take sabbatical her last 1+ year because of the severity of her Lupus. She passed without finishing her degrees (Journalism and American Study with minors in English and Photography). The sad thing was she could have finished her school a year and a half earlier, but she wanted so badly to attend Temple University Campus in Rome for a semester, so she was holding a couple of courses back while trying to concentrate on her health.

She was an amazing young lady who could have done anything she wanted. She was so talented and the immense thirst for life and learning never cease to amaze me…and we can’t forget her attitude.  One sad thing was she never let anyone know of her illness. Very few knew about her illness. She hated for people, even close friends, to look and treat her differently. She just wanted to be normal. That’s maybe one of the reasons I want to offer support groups for friends, especially younger kids. I want to have resources for them to deal with friends who have to live with chronic illnesses.”

Ms. Fungladda is referring to the Tanitha Kulsiri Memorial Foundation (TKMF), established in loving memory of Tanitha to make sure that others like her will have support and the life that she didn’t have.

“As a mom, I could not accept the fact that I’ve lost her for no good reason. There has to be a reason for this to happen and something good needs to come out of this terrible loss.”

TKMF’s mission is to promote the network of support groups and counseling for affected individuals, their families and friends, enhance the quality of life for those affected by Lupus through complementary therapies, promote a greater public awareness about Lupus, honor Tanitha’s passion for life and learning through Scholarships, and promote research in order to find more effective treatment and the cure for SLE.

For more information on TKMF please visit www.tanitha.org.

“You know, one thing that has always amazed me with Tanitha (besides her talents and just being an amazing kid) is the ability to keep going regardless of what she had to endure. She never let Lupus stop her from doing things. I guess she inspires me to be a better person and do something good.”

So how did we come up with a design for our truck that would reflect the memory of this wonderful and talented young woman?

When Tanitha passed away, Ms. Fungladda honored her by creating a book (Awkward Grace) of Tanitha’s compiled works during her last 10 years.  She sent the book to Bridget Barrett, Road Scholar’s awareness truck designer, for inspiration.

lupus

click image to enlarge

One of the narrative poems she came across contained a drawing (a sketch at the time which Tanitha created in high school) that caught her eye.  Loving the drawing, Bridget decided it would be perfect for our new awareness truck, so she cleaned up the image and added color, giving it brunette hair, the color of the woman’s hair in the poem.

Bridget then added the truck’s purpose to LIVE BEYOND LUPUS and incorporated TKMF’s website and logo (two flying pigs kissing, which was another artwork of Tanitha’s).

“Everyone at the foundation and her friends would like to express our deepest gratitude for all the support that Road Scholar has given us.”

For more information about Road Scholar’s awareness campaign please visit www.roadscholarawareness.org and remember…

“It isn’t money or fame that makes life worthwhile, rather the support of another person who picks us up when we fall, catches us when we stumble, loves us for who we are, who we were and who we will inevitably become.”  -Tanitha Kulsiri (Sept ‘01)

Below is the poem written by Tanitha that inspired the design of Road Scholar’s Live Beyond Lupus Awareness Truck.

poem

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Shale Increases Need of Drivers, Rates Not Holding Up to Increased Costs

Wednesday, January 9th, 2013

Fact:  Over the next 19 years “10,000 Americans will turn 65 years old every day and (presumably) retire shortly thereafter.” 1

Fact:  It is expected that within the next seven years, the driver shortage will increase to over 100,000, partly due to this retirement, leading younger, less experienced drivers to enter the industry. 1

A boom in activity at Ohio’s Utica and Marcellus Shales has lead to an increased effort to recruit drivers.  Ohio experienced a drop in CDL drivers in 2011 for the first time in over a decade and is expected to create over 9,000 jobs in the trucking industry within the next five years to account for the thousands of additional drivers needed, as well as increase driver education and recruiting efforts. 2

In addition to a driver shortage, new truck sales decreased 22% from April to December 2012 compared to 2011 with December experiencing a 39% decrease in truck volumes. 3

A decrease in newer truck sales means older equipment operating on the roads and hence greater safety hazards.  Do you know that with newer equipment, continual maintenance, and pre/post trip inspections, Road Scholar Transport has NEVER been cited for a piece of faulty equipment involved in an accident?

So why the drop in sales?  According to Indian Foundation of Transport Research and Training’s SP Singh, “In most parts of the country truckers held back their fleet expansion plan due to uncertain economic environment and poor cargo offerings in various truck transport markets,” along with a decrease in truck rentals, slow down in manufacturing, and weak freight rates. 3

With an economic growth expected mid-2013, freight rates are anticipated to increase.  As FTR Associates Noel Perry explains, “There’s a great deal of room for freight rates to rise,” however, the “problem is that truckers are very, very shy pricers” as well as “the entire supply chain culture is built on the assumption that transportation costs always go down.” 4

But the problem with transportation rates is that they are not being adjusted to account for increased costs in the industry.  As Perry notes, “It has become a core value in that community that you always save on transportation,” but “demand for trucking services won’t change because the price goes up.” 4

Perry describes a situation common in the industry today.  There are trucking companies negotiating with their customers over rate increases.  Their customer threatens to stop doing business with them or decreases their number of shipments unless the carrier lessens their original rate increase, often settling for a rate increase that is less than the cost of inflation.

“It’s historically true; transportation has not kept pace with GDP for the past 40 years,” explains Perry.  “That has to change. We’re facing some very real cost increases in the coming years — labor, equipment, new regulations, compliance costs, it’s a long list.” 4

Do you have need for drivers in the Ohio area?  Road Scholar offers discount rates on outbound from the Groveport, OH area back east.  You can be assured that our drivers are qualified, uniformed, drug & alcohol tested, and background checked (you can verify a driver online instantly through our website). Contact us at www.roadscholar.com to learn more!

Do you agree with Perry that transportation has not kept pace with GDP for the past 40 years and that transportation rates are failing to be adjusted to account for increased costs in the industry?

1http://www.todayonline.com/Business/Management/EDC130107-0000004/Get-ready-for-the-new-workforce

2http://www.crainscleveland.com/article/20130107/SUB1/301079973

3http://www.mydigitalfc.com/news/truck-sales-decline-22-drop-freight-rates-cargo-390

4http://www.truckinginfo.com/news/news-detail.asp?news_id=78629

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Potential Vehicle Mileage Tax to Replace Fuel Tax Takes Light Again as Proposal for Pilot Program is Introduced

Friday, December 28th, 2012

Over the past few years, the U.S. Highway Trust Fund, which finances road and transportation projects mainly through an 18.4 cents/gallon tax on gasoline and 24.4 cents/gallon on diesel fuel, has been unable to raise enough money to fund spending. 1 With the increasing number of fuel efficiency vehicles on the road today, which is expected to reduce the Highway Trust Fund by 21% by the year 2040 according to the Congressional Budget Office, the government is looking towards new means to increase funding.  One of these is increasing the fuel tax, which hasn’t occurred since 1993, to account for inflation, while another is to replace the fuel tax all together with a new tax based on vehicle miles.

Bill Shuster, the new chairman of the House Transportation and Infrastructure Committee, called the vehicle miles tax (VMT) “fair,” and with the introduction of HR 6662 by U.S. Rep. Earl Blumenauer earlier this month, which “calls for a pilot program to study a mileage-based user fee in each state,” the potential for such a tax in the future is not far off. 2 States such as New York, Minnesota, Iowa, Nevada, and Texas already have vehicle mileage pilot projects in place while Oregon “is beginning the second phase of its project, which will expand the pool of users and test collection methods to address questions raised in the initial phase.” 3

Although the thought of a VMT was blocked in the past, including from Schuster’s own committee, the House of Representatives is considering Blumenauer’s pilot program.

But there is a long way to go and many concerns to evaluate before such a tax takes affect.

Looking into the Federal Highway Administration’s 2010 statistics, which cite the number of miles driven that year to be 2.97 trillion, there would need to be a vehicle miles tax of around 1.8 cents/mile to account for the $54.5 billion raised for the Highway Trust Fund. 1

Despite cost, truckers are stating privacy concerns over the idea, since the tax “would be levied, most likely through GPS or some other mileage tracking system,” not to mention the other issue of “implementing a nationwide network of tracking locations where motorists would see and pay their individual tax bills.” 2

Additionally, this tax would add to the perfect storm for capacity, brought about perfect storm requestby factors including health care costs, credit markets, generation-x drivers retiring, CSA 2010, hours-of-service, fuel and equipment costs, and 2008 and the lingering recession.  For more information about this perfect storm and its contributing factors, contact us via our online form at http://www.roadscholar.com/contact.php and mention the Perfect Storm for Capacity.

However, the primary concern right now is the Highway Trust Fund’s unstableness.  As OOIDA Director of Legislative Affairs Ryan Bowley explains, “We’ve got a $105 billion shortfall over the next 10 years. Realistically, are we going to switch to a VMT for all vehicles in the next 10 years?  I would say that would likely be too short of a timeframe, because it really goes back to that issue of scale.” 2

What do you think of the idea of replacing the fuel tax with a vehicle miles tax?  What implications can you foresee this as having on your business?

Below is a list of U.S. Gas Taxes by state provided by http://www.gaspricewatch.com/web_gas_taxes.php.

state gas tax

Click to view

1http://www.bloomberg.com/news/2012-12-07/miles-driven-seen-as-fair-way-to-pay-for-highways-taxes.html

2http://www.landlinemag.com/Story.aspx?StoryID=24555

3http://www.ccjdigital.com/congress-eyes-vehicle-miles-traveled-tax/

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NY Thruway Announces Decision on 45% Toll Increase

Friday, December 21st, 2012

Last May the New York State Thruway Authority proposed a 45% toll hike on commercial vehicles with more than three axles in an attempt to raise $85 million to repair damage caused by trucks on the Tappan Zee Bridge. With the new hikes, the cost of a three-axle truck going from Buffalo to New York City would increase from around $88 to $127.

In response to opposition from manufacturers, shippers, and members of the trucking industry, which called the increase “intolerable” and “ridiculous,” the Thruway announced its decision to drop its proposal on Monday.

The result came from concerns that the hike would greatly impact a carriers’ net profit. One trucking company acknowledged that they would be hit with a cost of nearly $660,000 due to the polls while another noted that the hike would deduct nearly a third of their profit. 1 As one carrier explained, “This could put us out of business,” expecting the tolls to affect half of his company’s net income. 1

To account for these profit deficits, the companies would resort to lowering costs within, including eliminating pay raises for drivers who are in desperate need in the industry.

Additionally, the trucking companies are considering alternate routes in order to avoid tolls, which could ultimately lead to greater congestion on roads and longer routes, eating up a driver’s hours-of-service.

And finally, it would come as no surprise that higher tolls would leave carriers no choice but to raise their costs/fees in order to account for this hike, thus impacting shippers and manufactures, especially those in the food industry, who then need to charge more for their products, trickling costs down to wholesalers, and ultimately, to consumers.

As NYSMTA’s Kendra Hems states, “The hike would have devastated the entire state’s economy and nullified any attempts by the governor and the legislature to make New York ‘open for business.’” 2

Instead, NYS Thruway Authority Executive Director Thomas Madison presented other cost saving means to replace the money that would have been brought in by the tolls. According to Madison, “the proposed 2013 operating budget for the Authority is 21% below that of 2012” as the authority “is cutting costs by $25 million in 2012 and $130 million in “fiscal reforms” planned for the next three years.” 2, 3

In addition, the Authority is seeking to do the following:

*Reduce the Authority’s workforce by 6%. 4

*Freezing salaries of M/C managers. 4

*Reducing overtime, travel, and other optional expenses. 4

*Continued “efforts such as reduce vehicle and equipment purchases and fleet size.” 4

Carriers taking alternative routes to avoid tolls can put your freight at risk of significant delays, higher mileage/rates, and unsecure routes that are prone to cargo theft. Contact Road Scholar Transport today at www.roadscholar.com to learn about our online tools for the LIVE tracking of your freight.

What do you think of the Thruway’s decision to drop the 45% toll hike proposal? Are alternate means of cost-saving such as reducing their workforce, freezing salaries, etc. the way to go?

Click on the image below read Madison’s presentation on New Cost Savings for the Thruway Authority.

new cost savings

1http://www.syracuse.com/news/index.ssf/2012/08/opponents_speak_out_at_thruway.html
2http://fleetowner.com/fleet-management/new-york-state-dumps-controversial-truck-toll-hike
3http://auburnpub.com/blogs/eye_on_ny/area-state-legislators-agree-no-toll-hike-for-trucks-a/article_45d916a0-493e-11e2-8cac-001a4bcf887a.html
4http://www.scribd.com/doc/117175236/New-Cost-Savings-for-the-Thruway-Authority

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How is Road Scholar like Santa? Read to Find Out!

Wednesday, December 19th, 2012

Santa

The holidays are right around the corner and although Christmas comes but once a year, Road Scholar is playing Santa every day with your freight.  But how can a trucking company compare to a figure like Jolly Old Saint Nicholas?  We’ll tell you!

*Both Road Scholar Transport and Santa are entrusted with the special care and handling of delivering your presents and freight.  Santa doesn’t bring you broken gifts (hopefully) and Road Scholar doesn’t deliver damaged goods either, one of the reasons why we currently hold a 0.0003% damage claim record.

*Just as Santa keeps a close eye on whether you’ve been good or bad all year, Road Scholar keeps a close watch on your freight 24/7 keeping it out of the hands of the Grinch and those on Santa’s naughty list with the following security features and transport protocols:

-Electronic door monitoring
-Reefer tracking
-Power unit tracking
-Qualcomm distress/panic messaging
-Roof decals for aerial tracking
-Navalock
-Facility security
-Nextel direct connect
-ShowMe
24 X 7 pinpoint freight location
View a single shipment or your entire order fleet
View via Map, Satellite view, or Hybrid
Zoom into street level
View current status (docked, in transit, delivered, etc.)
View on map a time stamped delivery confirmation
Overlay a real time traffic view
View 3 months of delivery history
Use on iPad or “lite” version on smaller iPhones, Androids, or Blackberry devices
-High valued targets transport protocols
10 year background checks on drivers
Driver must be uniformed
Must fuel prior to unloading
One driver must remain with vehicle
Navilock must be attached
Equipment must be GPS traceable
Trailer may NOT be dropped in route
Dispatch notified of any stop

*Whereas Santa eats the cookies and drinks the milk left by children on Christmas Eve night, Road Scholar is delivering those cookies and milk fresh with our temperature-regulated reefers, preventing contamination issues and unsellable products.

*With Santa in the sleigh guiding his 9 reindeer, Road Scholar President Jim Barrett guides the sales reps as they share their expertise in the transportation industry, providing you with solutions to your shipping problems.  On Jean, on Jen, on Kristina and Paul, on Craig, on John, on Larry and Rich.  And do you recall, the sales manager of them all…Jim Friel.

*Santa needs to travel at lightning speed to deliver presents all around the world in one night.  Although Road Scholar can’t travel that fast (our drivers abide by the speed limit) we offer expedited shipping to get your freight where it needs to be on time, every time.

cystic fibrosis

*And let’s not forget what makes Santa stand out…his long white beard, little round belly, and bright red suit.  You’ll be sure to spot Road Scholar on the road, cruising in our bright red tractor trailer supporting the Cystic Fibrosis Foundation via our awareness program, driven by our neatly kept and uniformed drivers.

So if you are looking for an asset-based carrier who gives you what you want in a transportation company not only for Christmas, but every day of the year, look no further than Road Scholar Transport.  Visit www.roadscholar.com to get a quote.

For safe traveling tips this season from drivers such as yourself visit http://www.prnewswire.com/news-releases/truck-drivers-offer-safety-tips-for-holiday-travel-183735411.html.

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