Trucking

2020 International Roadchecks Have Been Set for May Fifth Through the Seventh

February 18, 2020 by Levinson and Stefani Leave a Comment

The Commercial Vehicle Safety Alliance (CVSA) an organization that includes both local and national government officials in North America, as well as industry representatives, will be conducting its International Roadcheck this year on May 5-7. The Roadcheck is an initiative meant to focus attention on the importance of commercial vehicle safety through a 72 hour marathon of roadside vehicle inspections throughout North America.

Inspectors will be checking both vehicles and drivers. They will conduct driver interviews, review documents, and check their records and inspection reports. Inspectors will also be looking for signs that a driver may be ill or fatigued, and whether the driver displays any signs of drug or alcohol abuse.

The inspectors will also conduct vehicle inspections to make sure drivers are operating a properly maintained rig. CVSA inspectors will be placing decals on vehicles on which no critical violations are found during their Level I or Level V inspections. However, inspections that do reveal critical violations may be rendered out of service until any violations are corrected.

Some drivers or motor carriers may decide they want to sit out the inspections all together. If you stay off the road in early May there is less of a chance of having to go through an inspection. However, not driving to avoid getting checked is not only unsafe it is also a bad business move.

If you’re not driving, you’re not earning. The purpose of running any efficient transportation business is to make a profit. With plenty of time and a warning of upcoming inspection dates, drivers and motor carriers can prepare to make sure all their logs, records, licenses, certifications, and vehicles are in proper order. A vehicle that doesn’t pass and is put out of commission cannot produce an income. A vehicle that has violations but is hidden from inspectors creates a great safety risk to professional drivers and to the public who use the roads. When a crash happens, you can be certain that there will be law enforcement, government officials, and lawyers scrutinizing over records and conducting inspections to find violations. In these situations, the risk of being put completely out of business is a real consequence that motor carriers can face. Even if the majority of a given company’s fleet is violation free, the part that is not can result in a shutdown.

Chances are that everything we see around us from goods, food, to furniture got to where it is at least in part by a truck. Commercial motor carriers are operating in a business that holds definite risks to public safety and property damage when people do not follow safety rules. If motor carriers or drivers do not follow safety rules and a crash occurs, government inspectors can cause the whole operation to be shut down. Crashes can also lead to insurance rates skyrocketing, making it too expensive to keep the business running.

Public safety is not the only concern when it comes to operating a commercial trucking company. IF a driver gets hurt as the result of an unsafe truck the company that driver works for can incur costs for worker’s compensation and will be short a driver. Additionally, vehicles are expensive. It costs money to fix or replace a damaged truck. Taken as a whole, it will certainly be less expensive to properly maintain a fleet of vehicles and follow all the proper safety rules rather than to cut corners. It’s much less expensive to stay safe than to recoup after a crash. Of course, your life and health are priceless.

U-Haul Refuses to Hire Nicotine Users

January 30, 2020 by Levinson and Stefani Leave a Comment

Starting February 1st, U-Haul will no longer bring any nicotine users onboard.

In a recent announcement, the moving and truck rental company said it will now refuse to hire nicotine users in the 21 states which legally allow that decision–citing the desire for a “healthier workforce” as the reason.

This nicotine-free policy is possible in states without protections for the rights of smokers. However, it won’t apply to employees hired prior to February.

In a news release, company chief of staff Jessica Lopez said U-Haul will be working toward fostering an overall new “culture of wellness.”

The states in which the new policy will take affect include: Alabama, Alaska, Arizona, Arkansas, Delaware, Florida, Georgia, Hawaii, Idaho, Iowa, Kansas, Maryland, Massachusetts, Michigan, Nebraska, Pennsylvania, Texas, Utah, Vermont, Virginia, and Washington.

Prospective applicants in these states, which allow companies to choose not to hire job seekers using nicotine, should expect to find information on the anti-nicotine policy on their applications and to be questioned about their use of nicotine, U-Haul said. In states where testing is allowed, applicants may also have to undergo nicotine screening to be hirable.

U-Haul said it is striving to encourage wellness among its employees, and is working on a new fitness center in one of its Arizona locations, as well as multiple wellness and fitness programs.

The company currently employs over 30,000 people throughout North America and will work toward helping its current nicotine-using workers with cessation assistance.

“In our continued efforts to enhance our wellness program and decrease health care costs, we have become more aware of the medical side effects of using nicotine and tobacco products,” said Lopez.

These products include vaping tools and e-cigarettes, in addition to traditional cigarettes, according to the policy. U-Haul company officials have also explained their inspiration from hospitals and other health-conscious businesses which are implementing nicotine-free hiring methods.

Alaska Airlines has had a no-nicotine policy in place since 1985 in order to help keep health care costs and health consequences lower.

U-Haul’s decision to follow suit comes soon after President Trump signed legislation raising the minimum age of those purchasing any tobacco or vaping products from 18 to 21.

However, while public health experts may be pushing for smoke-free lifestyles, they are torn on whether or not companies and employees will benefit from the new policy.

Michael Siegel, professor of community health services at the Boston University School of Public Health, said that U-Haul’s policy is misguided in terms of its approach to furthering wellness, as those who are addicted to nicotine may have trouble quitting and opt for nicotine-infused gum, patches, or lozenges. Nicotine replacement treatment is able to appear in nicotine-screening urine tests.

“Essentially, what that means is if you quit smoking and start using nicotine patches or nicotine gum or electronic cigarettes, you are not eligible to work for that company if you’re using nicotine replacement products,” he explained.

According to a survey by the Food and Drug Administration, around 7 percent of smokers can successfully quit smoking for at least six months to a year; however, the Mayo Clinic found that over 30 percent of smokers can quit fully with the help of a nicotine-replacement product.

“There are a lot of vices out there, and [these workers] have just chosen this one thing,” said Siegel. “[Banning it] is just kind of inappropriate.”

Lynn Kozlowski, University of Buffalo School of Public Health and Health Professions professor, wants U-Haul to note that some nicotine-infused products are more harmful than others–like cigarettes and cigars as opposed to smokeless tobacco.

Products like smokeless tobacco and nicotine products for vaping are less likely to contaminate public workplaces or affect work performance. Banning all nicotine products together causes U-Haul to look as if its policy is based on morals rather than health, Kozlowski argued.

“I bet if U-Haul were to look at [its] corporate office, [it has] a coffeepot going most of the time and people addicted to caffeine,” he said.

This begs the question, where does a trucking company–or any employer–draw the line between raising reasonable health standards and being intrusive?

According to Kevin Schroth, associate professor at the Rutgers School of Public Health, the company’s new rule could be deemed unfair to those who have fallen victim to the tobacco industry’s strong advertising techniques–which are aimed heavily at young people.

As of now, said Kozlowski, U-Haul’s policy announcement does not have nearly enough clarity for full scrutiny.

Growing Carriers Finally Switch to TMS Software

December 16, 2019 by Levinson and Stefani Leave a Comment

Smaller trucking companies that are growing steadily are beginning to notice when they should start taking advantage of new management software.

For example, PVG Trucking out of North Carolina used simple Excel spreadsheets to organize its business for around eight years, and finally switched its management methods to an electronic transportation management system after its fleet grew to 28 trucks.

“It slowly became very cumbersome to keep track of all the different loads and accounting things and dispatches,” CEO Daniel Gusev said. “Consolidating everything into one software that did everything from invoicing to paying settlements and dispatching definitely saved time and manpower.”

The difficulty, however, is choosing the right system for your fleet, evaluating it properly, and putting it into place.

Because of this, a trucking company needs to have a solid strategic plan for its future growth as well as for its potential return on investment. Then, it can decide if and when implementing a new management system should happen.

“For smaller, emerging fleets, I think the two biggest challenges are cost and fear of change,” said director of sales and marketing for Transport Pro, Kelly Frederick. “If the fleet is not doing consistent volume and they don’t know what business looks like from one day to the next, cost can quickly become a barrier to entry.”

According to Gusev, who had his system supplied from Frederick, PVG slowly began utilizing the system, first implementing it into their dispatching methods and then into handling invoices.

The bottom line, though, is that it becomes more and more challenging to successfully operate an expanding trucking company with basic tools.

“It’s just obvious when you’re not meeting your customers’ needs [due to] a technological barrier,” said Ben Wiesen, president of Carrier Logistics. He said shippers will also tell carriers when a lack of technology is hindering business.

The move from simple methods to new technology often occurs once a company reaches from around 30 to 50 trucks in its fleet, according to senior director of product management for Trimble Transportation, Jay Delaney. However, “we’re seeing fleets of smaller size starting to make that jump,” he explained.

Delaney also said that smaller fleets that are seeing expansion are usually accustomed to handling business via phone call, but once contracts, mergers, and acquisitions start coming through, they consider bringing in management software.

“They can’t do it all on sticky notes and Excel spreadsheets,” said Rick Halbrooks, vice president of McLeod Software sales and marketing. “They can’t do it using Big Chief notepads.”

Additionally, as fleets grow and carriers look seriously into TMS implementations, they also need to think about the benefits of cost reductions. These savings that come from an increase in efficiency can be put right back into the company with more trucks, newer facilities, or lower and more competitive rates for customers.

But to make cost reductions possible, those seeking TMS choices for the first time should find some guidance. The capital investment involved with adopting one of these systems can be a struggle, but some vendors say finding a subscription-based service can alleviate some of those challenges.

Fully understanding how a system works can be extremely difficult “until you actually get in there and look at the screen and follow a transaction through its life cycle,” said Carrier Logistics’ Wiesen. “It’s easy to get very confused by the product offerings.”

Because of this, finding a reliable source to which a carrier can direct important questions is vital, according to Wiesen. A company should separate questions regarding what software does specifically, and evaluate every individual answer, he said. He also suggested a carrier hire a consultant to help with this analysis.

Many vendors say carriers should first look into the largest business aspects which they aim to manage with the software, regarding everything from dispatching to increased asset utilization.

The main goal should be to make sure “the higher-value areas are going to improve and automate,” said senior vice president of industry strategy for Descartes, Brian Hodgson. “There are a ton of a capabilities.”

One capability includes the configurability of assigning loads to specific drivers based on commodity or destination.

“Those are standard configurables in many TMS [systems],” said Hodgson. Customization, however, “can take you down a path…that’s expensive to implement from a software provider’s standpoint.”

All in all, once a carrier learns the ways a TMS automates tasks, operations staff will start to think differently about how they work.

“You can be more proactive,” said Trimble Transportation’s Delaney. ”When a driver is running three hours late, you can see that in the system and you can make an adjustment to save that load.”

He says this change in workers’ thinking will change overall behavior and maximize business potential.

New Trucking Apps are Changing the Game for Drivers

November 27, 2019 by Levinson and Stefani Leave a Comment

Recently, we reported on the new sector of Uber: Uber Freight, an app which works to allow truck drivers and operators to claim shipments straight from their phones, as well as to get fixed rates and instant confirmation, tracking tools, and guaranteed seven-day payments.

However, the gratification of apps such as these seems to be fizzling out.

Uber Freight promised to motivate more new truckers to enter the industry in the midst of a driver shortage, and to easily allow drivers to match with jobs without the need of a middleman.

It also claimed it would allow drivers to pick their own hours and diminish the need to worry about rate negotiations.

For many independent drivers, though, Uber Freight and other similar apps, which seemed too good to be true, turned out to be just that.

Amit Sekhri, a driver who took up the vocation during the Great Recession, started noticing that not only was he enduring lengthy hours and weeks on end away from home, but he also was constantly dealing with late payments and incessant phone calls. Like a majority of truckers, Sekhri was booking his jobs through freight bookers, who do most of their business via phone call and habitually pay their drivers late.

Eventually, Sekhri came across Convoy, an app not unlike Uber Freight that allowed him to select nearby loads via his phone’s GPS and get paid within two days after completing a job. Now, Sekhri also dispatches four other drivers through Convoy delivery orders as well as through Uber Freight.

“It’s pretty easy. You like the price, you accept it, you assign it to a driver, and you can track them,” Sekhri said. “I don’t have to call the driver and say, ‘Where you at?’”

But problems began arising quickly. The number of jobs has started to dwindle, and drivers have begun complaining about low prices on Convoy. Three truck drivers, including Sekhri, recently discussed their disappointment with Bloomberg.

“I’ve got four kids to support,” said Sekhri. “I’m still hanging in and hoping it will get better.”

One of the other drivers had to close his business in March.

Convoy has even been negatively compared to its Uber counterpart, as truckers notice its business model has not been turning a profit. Convoy is planning to expand a bidding system, which would make it a kind of freight-eBay. Drivers would be able to place offers for a number of shipment gigs, which Convoy explains would help drivers find more work.

This theory isn’t proven, though, and could easily allow job payments to decrease, thus only making the low payment problem worse.

Drivers are continuing to try and find effective ways to save on costs. Although Convoy originally strived to become the new face of the trucking industry, it has instead become a reminder for drivers to pinch pennies.

For trucker Ira Lawrence, however, penny pinching wasn’t enough. After signing up with Convoy and buying a truck in 2017, he quickly found that it would be nearly impossible to make a living this way. With insurance costing over $1,600 a month, weekly fuel costing up to $3,000, and monthly maintenance exceeding $1,500, he was unable to stay in business with the vast majority of his jobs coming in through Convoy.

“We thought it would be this glorified life of: Get a load; stay there for a few days; and then get a load to somewhere else,” Lawrence said. “The overall cost of owning a truck is through the roof.”

The problem at hand is that while Lawrence and other drivers need to be paid more, shippers continually want to pay less. The quick payouts through Convoy helped him to stay in the gain for a while, but Lawrence was eventually forced to shut down his business after the low payments made it impossible for him to cover his insurance costs.

Insurance is an ongoing issue for these gig apps, as drivers are required to have high coverage for their cargo in addition to what they need for their trucks. For example, Uber Freight drivers have to cover all damages when they are at fault in the event of an accident, and must have a plan with at least $100,000 in liability coverage for cargo, as well as $1 million for their trucks.

The driver would then take on all responsibility for damages, which isn’t typically the case with traditional truck drivers, whose manufacturers or trucking companies are usually held responsible.

This is another ongoing issue, especially for innocent drivers involved in a trucking-related accident. Because these truckers are only required to have insurance covering the truck and its cargo, it is never guaranteed that hospital bills or car damage to the innocent party would be fully covered.

Still, Convoy plans to work toward exceeding the success of other trucking companies, including Uber Freight. However, Uber says it plans to spend $2 billion to expand its operations throughout Chicago.

When Fleets Need to Buy, Lease, and Sell in an Ever-Changing Market

November 26, 2019 by Levinson and Stefani Leave a Comment

The modern trucking industry has made it vitally important for fleets to know the best times to buy and sell their assets.

Right now, experts are saying asset management being aligned with the ever-changing industry is of the utmost importance, and this includes everything from proper maintenance to extend the life of equipment, to when and where professionals should dispose of used assets, to the way they plan for capital acquisition of new equipment.

Still, those in the industry have a never-ending list of questions regarding how they can stay on top of the game. When should they buy or lease? How do they know when a truck is too old to be useful? How should a fleet stay up-to-date on the newest technologies?

The biggest issue at hand, still, is the need to keep costs low, which becomes increasingly difficult as new technology is introduced.

Manufacturers show us new models every year, each with their own improvements in comfort, safety, driver assistance, emissions control, and more. As of now, a Class 8 tractor typically exceeds $125,000. As trucks’ technologies increase in sophistication, businesses need more highly-skilled technicians, which are also more costly than ever before.

On top of this, insurance rates for trucking companies tend to follow the trends in the industry. “Rate increases have ranged from single digits to, in some cases, double or worse depending on these factors,” vice president of Lockton Cos.’ transportation practice, Todd Reiser, said.

Shippers are now working to stay as environmentally conscious as possible, while fleets are taking advantage of every tool they can to increase their fuel economy.

In terms of fleet acquisition, Hub Group Trucking has five principles it follows. Those include: safety and reliability, driver appeal, deploying the latest technology, fuel efficiency, and overall ownership cost.

Hub Group’s executive vice president, John Vesco, weighed in. “Safety is first and foremost,” he explained, saying that having the newest equipment and technology supports that value.

Also of high priority–a solid capital expenditure plan and a disposal strategy that take into account all aspects of a fleet’s operating considerations.

“The best strategy is to establish a ‘continuous build’ [plan],” said Mike Britt, principal of MG Britt Engineering. “This will help the vehicle manufacturer remain consistent with quality, materials, and skill sets.”

He also added that fleets should schedule the disbursement of new equipment evenly throughout the year at the same times they retire their old assets. “This process will reduce maintenance cost on vehicles ready to retire, keep quality on new builds, and prevent ‘full fleet’ out-of-service situations,” Brit said. He also believes this process will prevent a company “from being bombarded with loads of new equipment to learn all at one time.”

Balancing fleet composition for projected business plans and maintenance costs will also aid in seeing a maximum return on investment, according to Taki Darakos, vice president of vehicle maintenance at Pitt Ohio, which has a fleet of 2,000 tractors and 5,200 trailers.

He also said the acquisition and disposal schedule should always take into account technology improvements. “Drivers want the newest trucks with the newest features and equipment,” Darakos noted. However, he says there is an important balance between getting the most value of an asset’s life and holding onto equipment for too long, which can cause new technology to become obsolete and maintenance costs to exceed boundaries.

On the other hand, new tech does tend to help increase driver retention and recruitment, he said.

Pitt Ohio also doesn’t ever lease equipment. According to Darakos, it’s important for trucking companies to have a substantial mix of new, middle-aged and older assets, so that as trucks come to the end of their life cycles, there are already newer ones to take their places, thus keeping costs consistent.

“When you have a good mix, your [capital expenditure] becomes more predictable and you benefit from an even approach to maintenance expense,” Darkos explained.

For disposal, Pitt Ohio uses auctions, as it doesn’t operate as a wholesale truck sales company.

No matter what a company chooses to do in regards to buying and selling, though, consistency is always key.

“Don’t overreact to market swings,” executive vice president of Melton Truck Lines, Robert Ragan, said. Ragan follows many practices he believes to be fundamental: understanding the operating environment, keeping a close eye on business needs and growth plans, and continuing to spec equipment to meet those criteria. He’s also careful to invest in preventative maintenance and to trade or sell his units before warranties expire.

“Know what you paid for it, what you spent [on it] while you owned it, and what you sell it for,” Ragan said. Taking good care of assets while you have them, he says, will give you “a good reputation in the market that will maximize the residual value of your rolling stock when you sell.”

Trucking Safely on Snowy Roads

November 25, 2019 by Levinson and Stefani Leave a Comment

For workers who make their living on the roads, it’s of the utmost importance that traffic continues moving, even during winter weather.

For emergency planners, this isn’t necessarily always an easy feat–especially when multiple car accidents occur in the same area.

For semi truck drivers Michelle and Floyd Goss, keeping a close eye on upcoming weather systems can make or break their hauls between Montana and Colorado. If conditions get bad enough, there’s a huge strain on the timeliness of their deliveries.

“If it’s too bad, then we just stay here, we have enough food in the truck to last us about three weeks,” said Floyd, who owns and operates his vehicle-hauling truck.

Both Michelle and Floyd had to put chains on their tires for the incoming weather, and they say all drivers–not just truckers–should keep with them an emergency kit at all times, but especially during winter. Things to include are food, water, jackets, and blankets. More importantly, though, is making sure other drivers are aware of all semi trucks they may be sharing the road with in snowy conditions.

“It takes so much longer for us to stop, and if anything happens, that’s an 80,000 pound vehicle versus your 2,000 to 2,500 pound car,” Floyd said. “If we tangle, you’re going to lose.”

The biggest thing for drivers to keep in mind is to always give trucks plenty of room, take it slow, and stay patient.

For truck drivers, though, safety precautions are doubly important in winter weather.

On top of extra food, water, and blankets in your emergency kit, truckers should also keep on board:

-Rain/snow gear, extra gloves

-A coat that can support both day and night temperatures

-A flashlight

-A bag of sand/salt

-Extra windshield washer fluid

-A windshield scraper

-Jumper cables

-Tire chains/traction mats

-At least a half tank of gas at all times

In addition, Roadmaster Drivers School also has these tips for truckers planning a trip during inclement weather conditions:

-Complete pre-trip inspections–Commercial drivers must inspect their vehicles prior to every trip. They should do a hands-on visual inspection and check tires, wiper blades, fluids. and lights. Truckers should check their vehicles more often in extreme temperatures.

-Slow down–Because most winter accidents take place when drivers go too fast for the road conditions, and hydroplaning can happen easily at higher speeds in slush, a slower speed will give you more time to react.

-Brake and accelerate lightly–Doing anything forcefully in bad weather can be detrimental. If your vehicle has an anti-locking brake system, use it properly by pressing and holding the brake down as far as possible in the event of an emergency. ABS prevents wheels from locking so you can steer around obstacles. If your vehicle does not have ABS, lightly pump your brakes when needing to slow down quickly on slick roads–this will decrease your likelihood of sliding out of control.

-Give yourself plenty of safe space–Keep an ample following distance between yourself and other vehicles so that you always have space and time to move out of the way of a dangerous situation.

-Hold the steering wheel firmly–Sudden moves can easily make you lose control of your vehicle, so be sure to keep both hands on the wheel and keep your vehicle steady through heavy wind and when ice or ruts appear on the road.

-Watch out for black ice–Black ice is a thin layer of clear ice that shows up when temperatures are near freezing and can make the road look only slightly wet. Never assume that just because the sun is shining that the road is only wet, and use these clues to be able to spot black ice when the temperature is getting close to freezing.

Ice build-up on antennas, windshield corners, or mirror arms
Spray from tires on vehicles ahead will stop

-Use caution on bridges–Elevated structures tend to freeze first, and are often not treated with snow-melt materials (like salt), whereas other parts of the road may be. Black ice is often found on bridges, and vehicles driving easily on the highway may spin out of control on a bridge or highway overpass.

-Be wary of mountain driving–Weather on mountains can be unpredictable during the winter months and can change rapidly. Be on the lookout for emergency vehicles, snowplows, and wind gusts. Do not stop in avalanche zones. Tire chains may also be required for some of these routes.

-Remain in your vehicle if you get stuck–Stay put if you end up getting stuck in a storm or if you slide off the road and can’t see a nearby place to find help. Bundle up and keep moving to stay warm. Keep your exhaust pipe clear of snow, open a downwind window for ventilation, and run your engine for only around 15 minutes each hour.

-Obey all road signs–Warning information is always posted for good reason, and a curve posted at 35 mph is because testing has determined that is the safest maximum speed for any vehicle on the road.

-If conditions look too bad for driving, get off the road–Use your best judgment, listen to weather reports and act accordingly. Don’t push your luck.

-Treat your fuel–Cold temperatures can cause diesel to gel, so it may be helpful to stock up on anti-gel ahead of bad weather.

-Keep in mind the ‘Five Keys to Space-Cushion Driving’ that many carriers make required training for drivers—

Aim High in Steering: Look far enough ahead of your vehicle so you have time to react to any hazards.
Get the Big Picture: Keep a lookout all around our vehicle.
Keep Your Eyes Moving: Scan the entire area as often as possible.
Leave Yourself an Out: Have an escape plan for you and your vehicle.
Make Sure They See You: Make sure other drivers are aware of your presence.