September 5, 2006

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Headline News

• Utilize Safe Backing Techniques
• Proposed Rule Would Decrease Highway Worker Injuries and Fatalities
• FMCSA Vision Exemption Requests Have Increased In Popularity
• Fuel Prices Place Truck Businesses at Risk
• Diverse Drivers Represent Over 85 Million Total Miles
• It’s Not Just Pay Per Mile
• DHS Has Invested In Handheld Detection Equipment
• Canadian HOS Requirements Are Effective January 1, 2007

Utilize Safe Backing Techniques

Proper driver training can prevent backing collisions, which can reduce the chances of property damage, injuries, and death. Regularly, drivers back their vehicles into driveways, loading docks, parking areas, and into or out of other congested areas. To maintain safety while backing their vehicle, it is imperative for drivers to utilize safe backing techniques.

To read about how drivers can utilize safe backing techniques to reduce backing collisions, click here.

Reprinted with permission from "The Quill," a newsletter of loss prevention provided as a public service to the transportation industry by Baldwin & Lyons, Inc., Indianapolis, Indiana.

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Proposed Rule Would Decrease Highway Worker Injuries and Fatalities

Increasingly, maintenance and reconstruction of the nation's highways are taking place while traffic is maintained on the facility under repair. This has resulted in an increase in the exposure of workers to high-speed traffic and a corresponding increase in the risk of injury or death for highway workers, adding to worker safety concerns within an industry where the fatality rate for highway construction workers is already more than double that of other construction workers.  

The proposed changes are intended to decrease the likelihood of fatalities and injuries to workers who are exposed to motorized traffic (vehicles using the highway for purposes of travel) while working on Federal-aid highway projects.

To review the proposed rulemaking as it appeared in the Federal Register, please click here.

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FMCSA Vision Exemption Requests Have Increased In Popularity

The Federal Motor Carrier Safety Administration (FMCSA) has announced the receipt of applications from 75 individuals for exemptions from the vision requirement in the Federal Motor Carrier Safety Regulations. If granted, the exemptions would enable these individuals to qualify as drivers of Commercial Motor Vehicles (CMVs) in interstate commerce. Accordingly, FMCSA will evaluate the qualifications of each applicant to determine whether granting the exemption will achieve the required level of safety mandated by the Federal Motor Carriers Safety Regulations.  

To review the list of those requesting exemptions as it appears in the Federal Register, please click here.

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Fuel Prices Place Truck Businesses at Risk

Almost 70 percent of international trucking leaders think fuel prices place business at risk, prompting 92 percent of U.S. trucking managers to seek new methods for efficiency and cost savings. The driver shortage was a close second at 69 percent.

Low business volume was among the least of executives' concerns, cited by only nine percent of Americans. Two-thirds of American executives plan to buy new trucks in the next 12 months, compared to only 54 percent of their foreign counterparts.

GE Capital Solutions, a financing provider for the trucking industry, commissioned the survey of 1,200 American, British, Canadian and French trucking executives in cooperation with Dun and Bradstreet.

Seventy percent of interviewees said fuel prices place their business at risk. Nearly nine out of 10 executives think fuel prices will jump in the next 12 months and say this cost represents a third of their overall costs.

The United States leads in the use of alternative fuels including biodiesel, but only seven percent of interviewees said they used them. American executives were the most willing to consider alternative fuel use, with 65 percent being open to the idea. Canadians were the least willing, with only 45 percent indicating they were receptive -- perhaps a reflection of Canada 's climate and consumer uncertainty about biodiesel's cold-weather performance.

Survey respondents said they will seek ways to offset fuel expenses by passing costs on to shippers. But American carriers are looking at other options as well: 43 percent are seeking to tighten supplier management, 34 percent seek alternative green initiatives, and 14 percent are looking to lease trucks to free cash flow.

A fifth of carriers think the driver shortage will affect delivering goods on time. In the United States , 20 percent of managers said their ability to serve additional businesses is at risk of being affected.

The survey indicated carriers are aggressive in their efforts to hire and keep drivers. Half of American and Canadian companies have offered more pay, and 36 percent have cut paperwork.

A quarter of U.S. trucking managers say maintenance and insurance are the best places to save money, followed by salaries and general efficiencies, according to the etrucker.com website.

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Diverse Drivers Represent Over 85 Million Total Miles

Contact: Nancy O'Liddy, Director of Public Relations & Marketing
703/838-1950 or noliddy@truckload.org

TCA Announces Driver of the Year Contest Finalists
Diverse Group Represents Over 85 Million Total Miles

The Truckload Carriers Association, along with contest co-sponsors, Truckers News and Overdrive Magazine , is pleased to announce the top finalists for the Independent Contractor of the Year and Company Equipment Driver of the Year contests. The competition for these contests becomes more intense each year as we try to honor the best drivers throughout the United States and Canada .

The thirty finalists were chosen on the basis of miles driven without accidents as well as a review of their driving records, moving, and Hours of Service violations. The contest is open to TCA carrier member drivers who have logged over a million miles while adhering to the strictest safety standards. This exceptional group of finalists represents sixteen states and Canada .

The outstanding drivers listed below will now complete the second part of the application (due December 15, 2006) and official judges will choose the top five winners in each contest. The top three prizewinners for both contests will be announced at the TCA 2007 Annual Convention at the Bellagio Resort in Las Vegas , Nevada on March 11-14. Congratulations and best wishes to all the finalists and their companies:

Company Driver of the Year Contest Finalists

Jay Banick , Lawrence Transportation Services (Eric Lawrence, President) (Dawn Cole, Safety Director)
Brett Campbell , O&S Trucking (Jim O'Neal, President) (Mike Tettamble, Jr. CDS, VP, Driver Resources)
James Conner , Team Transport (J. Keith Sherman, CEO) (Mike Cieri CDS, Safety Manager)
Robert Deal , Cargo Transporters, Inc. (John Pope, CEO) (Jerry Waddell CDS, Safety Director)
Steven Eckhoff , Hogan Transporters, Inc. (David Hogan, President) (Don Lewis, Safety Manager)
Robert Hess, Jr. , D.M. Bowman, Inc. (Donald Bowman, Chairman) (Scott Bowen, Director of Safety & Risk Management)
Edward Hosier , O&S Trucking (Jim O'Neal, President) (Mike Tettamble, Jr. CDS, VP, Driver Resources)
Jean-Charles Huard , Robert Transport (Michel Robert, Executive Vice President) (Jean-Yues Letarte, VP Safety)
Eugene Hubbard , Regal Service Company (Howard Benningfield, General Manager)
Kenneth Luther , S.B., Inc. dba Sherman Bros. Heavy Trucking (Bart Sherman, President) (Jason Muggy, VP Safety/Risk Management)
Vernon Mosher , S.B., Inc. dba Sherman Bros. Heavy Trucking (Bart Sherman, President) (Jason Muggy, VP Safety/Risk Management)
Bruce Pfeffer , Smithway Motor Xpress, Inc. (Larry Owens, President & CEO) (Jim Kwakenat, Safety Manager)
Dwight Phoenix , Martini, Inc. (Jack Martini, President) (Gary Potter, Safety Director)
Denis Sansoucy , Robert Transport (Michel Robert, Executive Vice President) (Jean-Yues Letarte, VP Safety)
Steven Udelhoven , Art Pape Transfer, Inc. (Loras Pape, President) (Tom Cloos, Safety Director)

Independent Contractor of the Year Contest Finalists

Bruce Barnes , Witte Brothers Exchange (Brent Witte, President) (Marilyn Barnes, Director, Safety & Recruiting)
Albert Beck , Dart Transit Company (Donald G. Oren, President) (Gary Volkman, Vice President, Safety & Compliance)
Constance and Lanny Beyer , MCT Transportation, LLC (Matt Staniszweski, President) (Greg K. Beckman, Director of Safety)
Charles Boyles , Landstar Ranger, Inc. (Jeff Pundit, President Carrier Group) (Tina McGovern, Lost Prevention Coordinator)
Joe Chitwood , O&S Trucking (Jim O'Neal, President) (Mike Tettamble, Jr. CDS, VP, Driver Resources)
Steven Recker , Warren Transport, Inc. (Robert J. Molinaro, President & CEO) (Clayton W. Fisk CDS, Vice President/Director of Safety)
Jack Laughlin , Regal Service Company (Howard Benningfield, General Manager)
Charles Maly , Shaffer Trucking, Inc. (Ray Dunn, President) (Thomas Irving, Director of Safety)
Kerry Marvin , Cornhusker Motor Lines, Inc. (Ed Trout, President) (Greg Novacek, Safety Director)
Robert McCray , Warren Transport, Inc. (Robert J. Molinaro, President & CEO) (Clayton W. Fisk CDS, Vice President/Director of Safety)
Stacy Moran , Contract Freighters, Inc. (Glenn F. Brown, Chairman) (Randall Cornell CSS, Vice President, Safety)
Gary Nelson , Robert Transport. (Michel Robert, Executive Vice President) (Jean-Yues Letarte, VP Safety)
Paul Tetrault , Robert Transport. (Michel Robert, Executive Vice President) (Jean-Yues Letarte, VP Safety)
Gibert Wolf , Bradway Trucking, Inc. (Andrew J. Bradway, Sr. President) (Geoff Warren, Safety Director)

TCA's Driver of the Year Contests are made possible by generous industry sponsors. Once again this year the grand prize winner of the Independent Contractor of the Year Contest will receive a brand new fully-loaded International tractor. The top five winners in both contests will receive numerous prizes including cash, savings bonds, trucking supplies and gift cards donated by supplier companies.

TCA is the only national trade association whose collective sole focus is the truckload segment of the motor carrier industry. The association represents dry van, refrigerated, flatbed, and intermodal container carriers operating in the 48 contiguous states as well as Alaska , Mexico , and Canada . Representing operators of over 200,000 trucks, which collectively produce an annual revenue of over $20 billion, TCA is an organization tailored to specific truckload carrier needs.

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It’s Not Just Pay Per Mile

Most owner-operators are paid on a per-mile basis or on a percentage of revenue for a load. The per-mile basis is used the most and is the easiest to measure but dissatisfaction with pay per mile is one of the major reasons why many owner-operators choose to switch carriers.

Pay per mile is important but it alone will not ensure that an owner-operator has a profitable and successful business. Nor does it automatically mean a big settlement check. This is because pay per mile is just one component of gross revenue. Gross revenue is the total paid to owner-operators and can include things like mileage pay, percentage of revenue pay, unloading pay, stop in transit pay and fuel surcharge pay.

Too often, owner-operators focus on pay per mile and overlook the importance of gross revenue. Pay per mile may be higher at one carrier than at another but an owner-operator may be able to get more miles at another carrier, receive a higher fuel surcharge or get paid for unloading.

For Example:

Carrier 1 pays .94 per mile
This results in $940 gross revenue for a 1000-mile load.
1000 miles X $0.94 per mile = $940

Carrier 2 pays .90 per mile but also pays unloading pay
1000 miles X $0.90 per mile = $900
Unloading pay $ 45
Gross revenue $945
$945 gross revenue ÷ by 1000 miles = $0.945 pay per mile.

In this example, although it may appear that Carrier 1 has a much better pay rate, there is actually little difference between the gross revenue for each carrier once all revenue components are taken into account. If an owner-operator were leased to Carrier 2 and decided to switch to Carrier 1 due to the higher pay per mile, they may have made a costly mistake.

Owner-operators often don't understand that most carriers must operate at similar rates in order to remain competitive. If a carrier appears to be paying more per mile, chances are the carrier is taking that cost from somewhere else, such as lower accessorial pay or fuel surcharge. Gross revenue can be sliced many different ways, but it is finite and typically can't be increased among carriers who compete in similar operations.

Owner-operators who don't recognize the significance of gross revenue may also overlook other important considerations such as a carrier's culture. Like people, companies have personalities. Owner-operators often fail to realize, until it's too late, the value of a carrier that respects its drivers, offers fuel networks or insurance assistance, or allows the owner-operator freedom to run his business his own way. Gaining a penny or two more per mile in revenue may not be enough to offset the loss of these things.

Recruiting and retention professionals can attract and retain quality owner-operators by helping them see their carrier's value. Encouraging owner-operators to look at gross pay and pointing out the cultural strengths of your carrier will help owner-operators see that there is much to consider before changing carriers and they will be encouraged to evaluate other carriers in the same way.

Answers to the following questions can help demonstrate your carrier's worth to owner-operators. If you don't have all the answers, ask your co-workers and managers so that the next time an owner-operator tells you he wants to change carriers, you can point out the advantages of staying with you.

• How many miles a week do your owner-operators average?
• What are your freight cycles? Are miles consistent throughout the year?
• Do you pay on all miles or just loaded miles?
• What is your fuel surcharge and how is it figured?
• How often is the fuel surcharge updated?
• What is your stop pay, detention pay or other assessorial pay?
• Do you have a fuel network?
• Do you have a purchase program for tires and parts?
• Do you employ company drivers?
• What is the ratio between company drivers and owner-operators?
• What are your truck specifications?
• How much deadhead can an owner-operator expect?
• What is your average length of haul?
• Do you have dedicated runs?
• What are your carrier's strongest lanes?
• How often will an owner-operator get home?
• Are owner-operators required to load and unload? How often?
• Is your operation drop and hook?
• Do you ever force dispatch owner-operators?
• What is your owner-operator turnover rate?
• What is your trailer to tractor ratio?
• What do others say about your carrier and its reputation?
• What is your safety record?
• Do you pay lumper fees?
• Do you have an owner-operator advisory board or driver council?
• Do you offer a remote processing service for paperwork?
• How is your fuel tax reporting handled?
• How do you show respect for drivers—awards, recognition?
• Is your settlement easy to understand?

The bottom line is owner-operators need to consider many factors before switching carriers. If they have a good relationship with their driver manager, like the company culture and have opportunities to get the miles and pay they need, chances are they won't be any better off anywhere else. You can play a key role in helping them understand your value, reducing their desire to switch carriers. A business services provider such as American Truck Business Services can help owner-operators understand the true cost to switch and help them improve their business so that they become the most successful and loyal owner-operators in the industry, according to Angela Bruskotter .

Angela Bruskotter is responsible for marketing at American Truck Business Services (ATBS). ATBS is the largest owner-operator business services provider in the United States providing services to owner-operators leased to fleets as well as owner-operators running on their own authority. You can contact ATBS by calling 1-888-640-4829 or going to www.attrucktax.com .

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DHS Has Invested In Handheld Detection Equipment

The U.S. Department of Homeland Security (DHS) announced $113 million in competitive contracts to enhance the detection of radiological materials at the nation's ports of entry. DHS said it's awarding Human Portable Radiation Detection Systems (HPRDS) contracts to Ametec AMT, Oak Ridge, TN, Science Application International, San Diego, CA, Sanmina-SCI, Huntsville, AL, Target Instruments, Oak Ridge, TN and Smiths Detection, Pine Brook, NJ.

“These next generation handheld devices will bring an even faster and more reliable means to detecting and identifying radioactive materials at our ports,” said Vayl S. Oxford, director of DHS's Domestic Nuclear Detection Office (DNDO). “They are part of a robust global nuclear detection architecture built for the most consequential threats to the homeland.”

DNDO anticipates purchasing and deploying roughly 1,000 next generation handheld systems and 200 backpack systems through the HPRDS program. The portable technology will be used primarily by Customs and Border Protection officers for secondary screening of cargo to identify and localize radiological material after a primary alarm has been triggered. DHS said the devices could be used by Coast Guard officers aboard vessels prior to an arrival at port, according to the National Industrial Transportation League (NITL).

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Canadian HOS Requirements Are Effective January 1, 2007

The Canadian Council of Motor Transport Administrators (CCMTA), which represents the Canadian federal and provincial motor vehicle departments, has made available an application guide with information on Canada's new Hours-of-Service (HOS) requirements, which are effective January 1, 2007. The guide is primarily in a question-and-answer format, which provides examples of logs that will be compliant with the new rules. CCMTA says such a log will also be compliant with the current HOS rules in the United States. The converse, however, is not the case: a driver using a U.S. log in Canada will need to add a few entries, including various odometer readings. In addition, while U.S. rules require the last seven days logs to be in the truck, Canada will require the last two weeks' worth. The site includes much other information about the new Canadian regulation, according to the Wisconsin Motor Carriers Association (WMCA) .

To view the guide, please click here- http://www.ccmta.ca/english/producstandservices/publications/reportcentre.cfm#hoursofservice

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