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January 10, 2006
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Headline
News
PTDI Certifies/Recertifies Courses at Five Truck Driver Training Schools in Texas, Michigan, and Wisconsin
FOR IMMEDIATE RELEASE
January 9, 2006
Contact: E. Nancy O'Liddy, Director Public Affairs
703/838-1950 or noliddy@truckload.org
Alexandria, Virginia – The Professional Truck Driver Institute (PTDI) is proud to announce that three schools located in Michigan, Texas, and Wisconsin have received initial certification of their truck driver training courses and two additional schools in Texas have received program recertification for five years. The schools receiving first-time program certification are Baker College of Cadillac, Michigan, and Schneider Training Academy in Green Bay and in Dallas . Receiving five-year recertification were ATDS in Elm Mott, Texas , and Houston Community College Northeast Commercial Truck Driving Center in Houston .
Robert Hunt, director of ATDS, said he pursued recertification for his program to continue to attract “better educated students” and to maintain the school's pride in having met all the standards of the PTDI certifying body. Through the past five years, he said, “PTDI has helped us stay above the industry,” and despite the rigorous process, “we're finding [PTDI certification] is slowly paying off, not just for us but for the people that want long-term benefits.”
The benefits to carriers that employ graduates of PTDI programs, he said, include hiring drivers who are “better quality trained and better prepared for the industry. We believe that students going through PTDI programs result in less turnover, and they gain more confidence [in their abilities]."
“We're located in the middle of Texas and I get calls all the time from prospective students who can't get hired by certain trucking companies unless they have graduated from a PTDI-certified program,” Hunt said.
Now that more schools are seeking PTDI certification, Hunt said carriers nationwide have a broader base to hire from, and that makes him feel better about the quality of drivers on the road. “That's one of the main things I've been worried about,” he said, “but we're finally seeing these carriers waking up, as more people are saying that [PTDI certification] is important.”
“PTDI certification will make a difference in our program as well,” said James Stark, dean at Baker College of Cadillac. “The big thing about PTDI is that they really up the scale of requirements on students' behalf, teaching the students management, responsibility…qualities any employer is looking for.”
In addition, students receive proper training and preparation, and as a former employer with an industrial background, Stark said, “those are the things I looked for in hiring a person; not just someone who could fill the job but fulfill it.
“PTDI certification is an extra endorsement that the other person competing for that job doesn't have. It says ‘the hoops I had to jump through were much higher than someone graduating from another program.'”
Don Osterberg, vice president of safety and training for Schneider National , agrees that graduates of PTDI programs can “ differentiate themselves” from the competition. “Only drivers who have demonstrated ability go through our program,” Osterberg explained. “The certification acknowledges that we train [our students] not only to drive a truck but to be a professional driver. Public safety and advocacy groups understand this is a competitive industry, and we've chosen not to modify or truncate our program [at Schneider Training Academy].”
Noting that PTDI lends credibility to their program, Osterberg said, “It's one thing to think that you have a high-quality training program but another to have validation of it.”
PTDI is a national, nonprofit organization established for the twofold purpose of developing uniform industry skill, curriculum, and certification standards for entry-level truck driver training and motor carrier driver finishing programs, and certifying entry-level truck driver training courses at public and private schools and driver finishing programs at carriers for compliance with PTDI standards. PTDI is based in Alexandria , Virginia .
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See you in Court!! OOIDA plans to challenge HOS in Court
Following the denial of the Owner Operator Independent Drivers Association's (OOIDA) petition to reconsider the sleeper berth provisions of the new Hours-of-Service (HOS) regulations, OOIDA has developed plans to take the new regulations to court and appeal FMCSA's much publicized recent HOS regulations.
In a January 5 th letter, denying the petition to reconsider the “Sleeper Berth” provisions of the regulations, FMCSA denied OOIDA's request to retain the 2003 rule's split sleeper-berth provision for teams by claiming that the current regulations “ensure that drivers can obtain seven to eight hours of uninterrupted sleep during one sleeper-berth period.”
OOIDA, based on its most recent denial, will be asking the court to overturn FMCSA's actions as far as team driver regulations are concerned as well as maintain a defense of the other regulations as they do not include any Electronic On-Board Recorders (EOBRs). OOIDA remains strongly opposed to the introduction of any EOBR mandate.
These recent developments make it clear that the HOS regulations will continue to be at the forefront of the transportation industry in 2006. Top
2006 Looks Promising for Trucking
Strong demand and good prices for trucking services are expected to continue in 2006, according to Fitch Ratings.
The global rating agency, based in New York and London , said the economy has been slowed somewhat by higher energy costs, but truck transport should remain relatively strong in 2006.
Long-haul LTL volumes are stable, and regional LTL has continued to grow because of just-in-time inventory management, the company said. Raw materials shipments are expected to moderate, although truckers serving foreign-owned auto factories in the Southeast are forecast to experience some growth.
Fuel surcharges have become key in shipping prices, with surcharges accounting for more than 50 percent of some trucking firms' unit revenue increases, the company said.
“As fuel surcharges have become a larger component of the pricing structure, shipping customers are paying more attention to the effect it is having on their overall shipping costs and will likely begin to more actively negotiate the surcharge along with the base rate,” said the Fitch report. “As a result, the distinction between base rates and surcharges may begin to blur.”
Although fuel costs and increased demand for CDL holders will affect expenses, trucking should see increases in profitability and operating cash flow, the company said. Some carriers are expected to buy trucks before the lower emissions requirements become effective in 2007, Fitch said.
Some trucking companies will have more cash flow than has been typical, Fitch said. This cash may be used for acquisitions, especially in the LTL sector, and the largest companies are expected to invest overseas, Fitch said.
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‘Nice Guy' Dispatchers Could Help Cut Down Driver Turnover
I joined the trucking industry in January 1991 when I decided to limit my law practice to the defense of truck companies and their drivers on transportation related legal issues. One constant, consistent, continuing, and controlling issue affecting the bottom line of motor carriers is driver turnover. In fact, this driver turnover issue has plagued the trucking industry for over 20 years, and as of today is still a major problem for carriers.
How do carriers keep their good drivers? What can carriers do to ensure they keep drivers? Why do drivers leave? What do drivers want? Do drivers want more money, more time at home, rewards like jackets, patches, or jewelry, or do they just want plain old respect?
Truckload carriers report turnover rates as high as 200 to 300 percent a year according to the Truckload Carriers Association Driver Recruitment and Retention Panel Report, chaired by Ronnie Dowdy of Ronnie Dowdy Trucking in Batesville , AR. In that report, the panel found companies spend an average of $8,234 to replace each lost driver, and is surely more since the report was completed in 2001. The last national turnover rate I have heard appears to be an average of 121%. Simply put, that means that a 100 truck motor carrier that hauls over the road will have to hire 121 new drivers in one year just to keep his 100 trucks full. Carriers are especially sensitive to driver's wages since they make up one of the carrier's largest operating expenses.
In the TCA report, companies spend an average of $8,234 to replace each lost driver. Driver replacement is the cost born by the company, but it also costs the average driver more than $ 100,000 in lost wages and benefits over a 30 year span to job hop. Drivers who change jobs 8 times in 30 years will lose not only medical insurance, but 401k, vacation and income. The same driver will be unemployed for 4 months, go 21 months without medical insurance and lose 84 months of 401k eligibility according to the study. There have been studies and reports over the years that addressed each of the above questions, and each safety director has his or her own thoughts of the causes and reasons.
One area [of why drivers leave] that appears obvious to me at least is the driver/dispatcher relationship. I reach this conclusion because every carrier admits this is the first chink in their armor for their driver retention. Some carriers attribute driver retention to the ability of the carrier to provide closer personable relationships between the driver and the dispatcher. There are a lot of consultants out there, like Dan Baker from Bulverde, Texas and Kelly Anderson of Neosho, Missouri, that specialize in working with your in-house people to explain and show them how and why they should develop a pleasant personality when they deal with drivers.
Therefore, I suggest you hire dispatchers that have attitudes you like and appreciate. You can teach them the skills of managing trucks and freight if they have the “nice guy” attitude everyone wants to work with. The more sensitive a dispatcher is in listening to drivers, the more proactive they can be in correcting any potential problems that arise with a driver before they reach the point the driver is willing to quit, whether it is company related or personal problems a driver may have. When I say personal problems, I refer to getting the driver home or helping them get to graduations, anniversaries, trouble with the kids or the wife and always when someone is in the hospital. One thing we all know is all drivers will need a time to vent about what is bothering them. The best dispatchers are the ones that allow their driver to vent his frustrations and not to take the venting process personally.
One good thing to notice when drivers quit is whether their dispatcher modifies the way they handle drivers to prevent other drivers from leaving. Don't keep a dispatcher that is constantly costing you drivers, a driver costs way too much to replace to accept a dispatcher that won't change their ways. Any dispatcher with the attitude, “my way or the highway” is one a carrier can not afford to keep.
Just look at the driver shortage and you can see that being a CDL driver will become more difficult, but with the increased difficulty comes other rewards such as better pay and better jobs. Let me remind you that there are a lot of really good driving jobs out there; you just need to be the good driver the carrier needs. Nothing raises the wage level like supply and demand, and there is a huge demand for drivers now, but only good drivers. Bad drivers need not apply.
By Jim C. Klepper, President of Interstate Trucker Ltd., (800) 333-3748 or go to www.interstatetrucker.com or www.DriversLegalPlan.com . This article first appeared in The Trucker. Top
Another HOS Petition Denied!
The Federal Motor Carrier Safety Administration (FMCSA) has denied yet another petition, submitted by the Owner-Operator Independent Drivers Association (OOIDA), to retain the split sleeper provision from the 2003 rule for team drivers. FMCSA informed OOIDA of the decision in a letter dated December 5, 2005.
This is already the second petition denied by FMCSA in regard to the new sleeper berth provision requiring 8 consecutive hours to be spent in the sleeper berth. The first denied petition was submitted by the International Brotherhood of Teamsters (IBT), as reported in the December 20 issue of the Truckload Carrier Report. OOIDA argued that the new split sleeper-berth provision forces team drivers to actually drive longer periods of time that “wear them out.”
FMCSA denied the Association's request to retain the 2003 rule's split sleeper-berth provision for teams by claiming that the current regs “ensure that drivers can obtain seven to eight hours of uninterrupted sleep during one sleeper-berth period.”
Although several other petitions have been filed in regard to changes to the new HOS regulations, the denial of the OOIDA and IBF petitions regarding split sleeper berth time represents FMCSA's dedication to the science and data developed that is the backbone of the current rule.
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EPA Launches Program to Increase Use of Domestically Grown and Produced Fuels
Starting in 2006, Americans will be gassing up with nearly three percent of clean-burning, domestic renewable fuels such as ethanol under new standards issued by EPA. Authorized by the Energy Policy Act of 2005, the standard is the first step in EPA's Renewable Fuels Standard Program, which is designed to reduce vehicle emissions and strengthen U.S. energy security by doubling the use of fuels produced from American crops by 2012.
"Under President Bush's leadership, we are addressing our nation's growing energy demand in a way that supports our goals for a clean environment and healthy economy," said EPA Administrator Stephen L. Johnson. "This investment in renewable fuels made from domestic crops will support American agriculture and replace fossil fuels with an increasing amount of cleaner-burning alternatives such as ethanol or biodiesel illustrating that environmental progress and economic development can, in fact, go hand-in-hand."
The regulation announced today explains how industry will comply with the Energy Policy Act's default provision requiring that 2.78 percent of the gasoline sold or dispensed to U.S. motorists in 2006 be renewable fuel. The regulation is intended to provide market certainty for smooth implementation of the program in 2006 as EPA expands the program. Many of the act's other provisions regarding the Renewable Fuel Standard Program for 2007 and beyond will be implemented in subsequent regulations.
The program will significantly increase the volume of renewable fuels blended into motor vehicle fuels. Various renewable fuels can be used to meet the requirements of the program, including ethanol and biodiesel. Under this standard, refineries, blenders, and importers would collectively be responsible for meeting program requirements for 2006, where compliance would be calculated over the entire pool of gasoline sold to consumers.
For more information on the Renewable Fuel Standard Program, visit: http://www.epa.gov/otaq/renewablefuels/.
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GAO Completes Report on FMCSA's Outreach
In a report requested by the House Appropriations Committee, GAO – Congress' agency for overseeing the executive branch – reviewed five FMCSA education and outreach programs: new entrant, non-entrant, motor coach, safety belt and household goods. In fiscal year 2005, FMCSA spent $36.3 million on these programs, including about $33 million on the new entrant program.
The report concluded that FMCSA should describe the link between its education and outreach programs and the agency's strategic objectives and should evaluate how additional information and safety audits are helping new carriers learn FMCSA requirements, the Government Accounting Office said.
Although FMCSA's new entrant program, which includes educational safety audits of new carriers, has existed for more than two years, FMCSA doesn't plan to evaluate the program's effectiveness until 2008, GAO said. However, a preliminary comparison of crash rates for new entrants who had received safety audits during the first part of 2003 with new entrants who had not received safety audits found little difference in the crash rates of the two groups.
In part because there are few sanctions for carriers that fail certain portions of the safety audit, FMCSA now is increasing the enforcement associated with its safety audits by making it more difficult to pass the audit and requiring carriers to correct deficiencies, GAO said. Currently, a carrier can pass its safety audit even if it fails two of the six sections of the audit. GAO found, for example, that over the past two years, about 40 percent of the carriers failed the “driver” section of their safety audits, despite passing the audit overall.
To view a full copy of the GAO Report, click here. Top
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