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Q4 WINTER 2019 Q2 SPRING/SUMMER 2019
MMTANET.COM MMTANET.COM
CONTENTS
Q 4 W I N TE R 2 0 1 9
COVER 14 New MMTA Chairman Always Knew He Would End Up 'on the Waterfront' Getting to know MMTA's incoming leader, Armand Patella of Preferred Services, and what he deems important BY STEVE BRAWNER
FEATURES 9
Buying vs. Leasing
Industry leaders provide insight to help you decide which is right for you BY DAN CALABRESE
21 Bozel Transfer Has ‘Always Been a Family Effort’ 14
Bozel Transfer reaches a milestone in 2019 that few trucking companies ever achieve – 100 years in business!
BY STEVE BRAWNER
23 Thank you, MMTA Sponsors!
ON THE
24 Maryland on the Move: MMTA's 2019 Fall Conference
BY SELENA GRIFFIN
DEPARTMENTS 5 6 26 26
MMTA's 2019 Fall Conference, hosted on Sept. 26, brings industry leaders together for education, information, networking and fellowship. MMTANET.COM
Chairman’s Message Dates to Know New MMTA Members Advertising Resource Index
COVER AND INSIDE IMAGES OF ARMAND PATELLA BY DAVID SINCLAIR
BEHIND THE WHEEL
| Q4 WINTER 2019
3
con • ti • nu • i • ty
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BEHIND THE WHEEL
| Q4 WINTER 2019
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MMTANET.COM
The Official Magazine of the Maryland Motor Truck Association Behind the Wheel is owned by the Maryland Motor Truck Association and is published by Matthews Publishing Group. To request additional copies, order reprints of individual articles or to become a subscriber to Behind The Wheel, please contact Selena Griffin at (410) 644-4600. To inquire about advertising, please contact the publisher at (501) 690-9393.
Publisher Jennifer Matthews-Drake Matthews Publishing Group jennifer@matthewspublishing.com Executive Editor Louis Campion lcampion@mmtanet.com Managing Editor Selena Griffin sgriffin@mmtanet.com Creative Director Fran Sherman fran@shermanstudios.com Graphic Designer Barbara Negron Photographer David Sinclair Contributing Writers Steve Brawner Dan Calabrese Mary Lou Jay Renee Miller
Derek Rayment Jennifer Barnett Reed John Schulz Todd Traub
CHAIRMAN’S MESSAGE
THERE IS A LOT ON THE HORIZON, BUT WE WILL ALSO REMAIN FOCUSED ON WHAT HAS KEPT OUR ASSOCIATION AMONG THE STRONGEST IN THE COUNTRY.
At our recent combined Management Conference and Board meeting [or “Annual Meeting”] on September 26th, I was honored to become the 78th Chairman of the Board of the Maryland Motor Truck
Association. It is a privilege for me to serve you in this position and I want to assure you all that I will represent the interests of all our industry sectors. We will continue to focus
Maryland Motor Truck Association Louis Campion President & CEO lcampion@mmtanet.com Dottie C. Duvall Vice President - Administration dduvall@mmtanet.com Brenda Tharp Director of Safety btharp@mmtanet.com Selena L. Griffin Controller sgriffin@mmtanet.com Margie Anne Bonnett Marketing & Communications Director mbonnett@mmtanet.com Kathy Norris Administrative Assistant knorris@mmtanet.com
on fulfilling the Association’s mission to support and advocate for a safe, efficient, and profitable trucking industry regardless of industry type or size. Two weeks earlier, I had the opportunity to attend the Association’s annual Call on Washington where we visited with Maryland’s members of Congress on Capitol Hill. Although there are a number of important trucking issues being debated at the federal level – hours of service reform, infrastructure investment, allowing younger CDL drivers to operate across state lines, and ratification of the new trade agreement between the United States, Canada and Mexico to name a few – the polarizing climate in Washington left me feeling that these issues will face the same gridlock that our trucks face on the highways. At the end of the day, it appeared to me that little or nothing will get done as everyone keeps “playing politics” rather than working for the good of the people. Fortunately, that same gridlock is not facing us at the state level. As we prepare for the 2020 General Assembly session, we have several priorities that we will be pursuing. • Renewing the $400 income tax credit for Class F tractors that are titled and registered in Maryland. The current credit expires after Tax Year 2019 and the Association is pursuing a three-year extension. MMTA worked hard to obtain this credit, which helps offset the high cost of vehicle registration fees, tolls and fuel taxes in our state and
Maryland Motor Truck Association is an affiliate of the American Trucking Associations. MMTA is a Maryland corporation of trucking companies, private carrier fleets and businesses which serve or supply the trucking industry. MMTA serves these companies as a governmental affairs representative before legislative, regulatory and executive branches of government on issues that affect the trucking industry. The organization also provides public relations services, education services, operational services and serves as a forum for industry meetings and membership relations.
we will work just as hard to keep it.
CONTINUED
For more information, contact MMTA at: Maryland Motor Truck Association, Inc. 9256 Bendix Road, Suite 203 - Columbia, Md. 21045 Phone 410-644-4600 | Fax 410-644-2537 mmtanet.com
MMTANET.COM
BEHIND THE WHEEL
| Q4 WINTER 2019
5
DATES TO KNOW DECEMBER 5, 2019
Western MD Chapter Legislative Dinner Dutch’s Daughter, Frederick MD ~ a gathering of members and state legislators will enjoy special guest speaker Lt. Governor Boyd K. Rutherford.
• Revisiting Maryland’s Preventive
industry has taken many steps to improve
DECEMBER 10, 2019
Maintenance Program, which is currently
its equipment over the last 10 years and the
Drug & Alcohol Suspicion Training
required annually or every 25,000 miles
so called “dirty diesel” has quickly become
(whichever comes first). Only California
a thing of the past. We will ensure that
8:30 at MMTA DOT requires all supervisors of drivers to be training in drug & alcohol testing rules! This seminar meets all DOT training requirements and includes materials pertinent to rules & regulations. Attendees receive a certificate of completion. *Register online at www.mmtanet.com
has a more stringent rule. The current PM
legislators understand
rules were drafted over 25 years ago. With
that these newer and cleaner technologies
the design and engineering of today’s newer
are what power today’s trucks and the
equipment (automatic slack adjusters,
associated costs they represent to our
LED lights, radial tires, anti-lock brakes), a
industry. If any further actions are
modest change to require a PM for newer
considered, they need to
model vehicles every 50,000 miles may
be focused on protecting our industry’s
JANUARY 28, 2020
make more sense.
access to a readily available and affordable
MMTA’s Driver of the Year Banquet Turf Valley Resort, Columbia MD ~ don’t miss the chance to submit your best drivers as candidates for Driver of the Month/Year. Our safest drivers deserve to be noticed & recognized, they power our economy as well as your company. Submissions accepted thru December 10, 2019; contact Brenda Tharp for the necessary paperwork. Drivers of the Month will be honored at this event with one being selected as MMTA’s 2019 Driver of the Year. FEBRUARY 9, 2020
National Pizza Day!
FACT: Americans consume on average 23 pounds of pizza per each year FEBRUARY 27, 2020
Oyster Roast & Trade Show ~ Martin’s West
You don’t want to miss this annual feast & impressive trade show, the opportunity only comes once a year! This event has sold out completely in the last several years – get your tickets & booths early, sales will start in early January. Watch our website for updates! www. mmtanet.com
6
WE HOPE TO INCREASE OUR SUPPORT TO LEGISLATIVE LEADERS WHO ENDORSE POLICIES THAT REPRESENT THE NEEDS OF MARYLAND’S TRUCKING COMMUNITY.
BEHIND THE WHEEL
| Q4 WINTER 2019
• There is growing tension between the states and the federal government as more
ULSD fuel supply as we deliver the products our citizens need.
and more states look to allow recreational
There is a lot on the horizon, but we
marijuana use, which remains illegal as a
will also remain focused on what has kept
Schedule 1 drug in federal law. This is a
our Association among the strongest in the
public safety issue not just for our drivers
country. We hope to increase our support to
but for everyone. The Insurance Institute
legislative leaders who endorse policies that
for Highway Safety has found that, for the
represent the needs of Maryland’s trucking
second year in a row, crashes in states with
community. We will continue to oppose
legalized recreational marijuana continue to
any actions or interpretations that may
rise compared with neighboring states that
be detrimental to our industry by offering
have not legalized recreational use. Law
informed opinions and alternatives. And,
enforcement needs an effective field tool to
we look forward to continuing to work
help determine if any driver of any vehicle
with our partners at the American Trucking
is impaired by the effects of marijuana
Associations on a national basis for their
use. And while federal law mandates drug
industry-leading initiatives as well.
testing for your commercial drivers, we
Please consider becoming involved.
need to preserve the right of employers to
Whether it’s attending a presentation on a
promote a drug free workplace and ensure
variety of subjects or participating in one
testing can be done of any employee in
of our events, it’s a great way to network
positions that involve employee or public
with other trucking professionals who share
safety – such as your warehouse workers or
your concerns.
truck loaders. • Reducing greenhouse gas emissions from
Looking forward to a great year!
transportation sources will be a continued challenge as the General Assembly looks to take further actions to address global
Armand Patella
warming and climate change. The trucking
2019-2020 Chairman of the Board MMTANET.COM
MMTANET.COM
BEHIND THE WHEEL
| Q4 WINTER 2019
7
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Buying vs. Leasing Industry leaders provide insight to help you decide which is right for you BY DAN CALABRESE CONTRIBUTING WRITER
The easiest decision you have to make is that you need a truck. Or multiple trucks. It’s essential to your business operations and you know exactly how you’ll use it once you have it. But the much more complicated question is exactly how you should structure your acquisition of the truck. When users consider the question of whether to buy or lease truck assets, they need to consider everything from the nature of the use to the likely length of use to what kind of capacity they have inhouse to handle maintenance. There are pros and cons to each option, but there are also some general principles that will tend to point most potential users in one direction or another. Two Baltimore-based dealerships who handle both sales and leasing are Beltway Companies (an International dealer) and Baltimore Potomac Truck Centers (a Mack, Volvo, and Hino dealer). The sales and leasing professionals at both dealerships offered some perspective for MMTA members on how to decide between leasing and buying. Jack Saum, CEO at Beltway Companies, said certain industries are better positioned than others to take advantage of leasing. “For example, highly specialized equipment doesn’t easily fit into a leasing application,” he said. “Trucking companies whose only real mission is being a common carrier are not a great fit for leasing. Leasing is more for somebody in the private, traditional business where trucking is not necessarily the primary focus of their business.” That would include companies, for example, who need trucks to deliver MMTANET.COM
their goods to customers, but don’t need
changed their thinking on buying vs. leasing.
to be spending time and resources
William Caterham, director of leasing
dealing with issues like Department of
at Potomac Truck Leasing (a division of
Transportation requirements, tax reporting
Baltimore Potomac Truck Centers), said food
and vehicle maintenance.
service is a prominent example.
Most lease agreements specify that the
“What we’ve found over time since
dealer will provide maintenance on trucks
the ’60s is that clients in food service have
and offer replacement vehicles if a truck
gravitated from almost exclusive ownership
under lease breaks down.
to almost exclusive lease,” Caterham said.
“If you own your truck, you have no
“If they have 40 trucks running, they need to
idea if it’s going to break down and cost
keep 45 on the ground so they have enough
you $15,000 to get fixed,” Kevin Saum said.
spares to do the same thing they could with
“With a full-service lease, if it breaks down
40, and leasing becomes a good way to do
you don’t have to fix it, and you’ll get a
that because of the substitution clause.”
replacement vehicle at no extra charge.”
But according to Caterham, ownership
Over time, certain industries have
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| Q4 WINTER 2019
9
transfer all those benefits back to us. I would tell the client up front, you don’t need to lease that truck, you need to own it.” That might apply with users such as municipalities, whose travel would be limited to a small geographic area, particularly heavy equipment type trucks. Municipalities often use the same trucks for a long time for such applications and can still recoup some resale value at the end. “BGE builds these enormous trucks with lift capabilities to service the tall power poles out in the wilderness,” Caterham said. “That’s definitely not a lease truck, because it’s got one use and they’re probably going to use that truck for 15 or 20 years.” Mark Parker, director of sales and can make more sense if the client’s use of the truck is either very heavy or very light. “In a high-mileage application, I have to build that into the rate so the rate becomes oppressive,” Caterham said. “It makes more
By contrast, a user whose truck will put on
marketing at Baltimore Potomac Truck
very limited miles might be better off owning
Centers, said leasing is also getting a fresh
because turning it in at the end of a lease means
look from fleets who used to be more inclined
giving away a potentially valuable asset.
to own the trucks and operate their own
“If they turn the truck in at 60,000 miles,
service shops.
sense for the guy to own that truck if he’s
it’s a truck we want to sell all day,” Caterham
going to take all the depreciation.”
said. “It’s a used truck seller’s dream. So they
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BEHIND THE WHEEL
| Q4 WINTER 2019
MMTANET.COM
* * * sPEcial Edition on Elds * * *
be proficient at maintaining their own
trucks with their own shop,” Parker said.
outsource, those things go away.”
Saum often finds that dealing with
“It’s becoming harder and harder as
CFOs, as opposed to working only with
people determine they can’t maintain those
transportation managers, brings about a
“When we first implemented electronic trucks as easily as they used to. They’re
heightened interest in leasing.
logs, we our seeing thebrought runningevery costs driver go up, into and they’re North Little Rock office basically saying, ‘OK, I’m for justtraining shutting before my turning on the unit,” Brown tells us. And, maintenance shop down.’” keep in mind that Maverick is an OTR That’s bringing leasing business to operation, so bringing their 1,700 drivers dealerships who work directly with the in for training was no easy feat. OEMs to master the complexities of the At Maverick, training consisted of two trucks and embrace everything about the hours of instructor-led and hands-on trainvehicles as their core competency. ing. Drivers spent time in a lab, changing Companies willcomfortable often try towith guide dutyBeltway statuses and getting customers from ownership, the devicesaway before they ever evenparticularly attempted if it appears the customer doesn’t recognize to operate the electronic logs in their cabs. all Trainers the implications of being truck owner. then took their aeducation one step“Typically, further. They climbed into the cab they like the control,” Jack with each logged made Saum said.driver, “But they don’tthem trulyin, understand sure the technology was working as expectall the costs associated with owning these ed, andand double-checked to ensure drivers trucks maintaining compliance with state understood how it worked. and federal laws. They don’t truly understand In the end, this investment on the front what their operating costs are and what end dramatically minimized frustration their overhead costs are – and that once they and confusion among their drivers. It wasn’t a simple thing to do, but it made for
“If you change the conversation, you
company. It can afford to hire experienced trucking professionals, acquire and maintain the assets, and hire the drivers. For smaller or midsize companies, however, everything starting with the cost of acquisition might argue for leasing.
lease a vehicle as opposed “the worst thing you“When canyouDo to these to purchasing one, the leasing company is guys is hanD them going new technology to acquire that truck at a lesser cost as monthly payment, factor in all the ancillary without training — without opposed to if you went out and bought that things that have to do with compliance, and explaining how it works, what truck,” Kevin Saum said.it Does, understand that the technology on a modern whyto manage.” they have it. turning on anD That’s because theit leasing company truckanD is very difficult letting ‘em Definitely buys on greater volume from the Jack Saum emphasizes that aloose company woulD’ve manufacturer. By contrast, the end user choosing to invest in ownership of a fleet a mistake.” been typically find out that leasing doesn’t cost
twice as much when you do the math on the
of trucks, as well as its own maintenance
would be investing larger dollars in a
a trucking company. That may not be the
those dollars to invest in things more critical
precise vision of many companies who are
to its core business operations.
brown, vptoof shop, has—wayne made a decision: It is going be
information technology, depreciating asset, when it could have used maverick transportation
operating in every industry from steel to food
Another problem for private fleet owners,
to lumber, but once you own and maintain
even if it’s a somewhat newer problem, is the
a much more experience for everyyour own fleet,positive that’s what you’ve become.
Turningshortage it on and ‘em loose If all current of letting truck mechanics.
onecourse, involved. Of the largest private fleet in the “The worst thing you can do to these world belongs to Walmart, so a large enough guys is hand them new technology without enterprise can afford to run its own trucking training — without explaining how it works, what it does, and why they have it.
would’ve definitely been afor mistake,” says the mechanics go to work dealerships,
Brown. Of course, drivers weren’t the only ones CONTINUED to undergo training at Maverick. Everyone
there are probably enough to go around.
➥
SALES • PARTS SERVICE • BODY SHOP 800-832-7278 2723 Annapolis Road • Baltimore, MD 21230 410-685-4474
www.baltimorefreightliner.com MMTANET.COM www.mmtanet.com
|
BEHIND THE WHEEL WINTER BEHind tHE WHEElQ4 ~ Q3 Fall 2019 2016
11 25
assets even if it means they might be on the hook for unexpected maintenance costs. “Some believe the equity in used assets is something they’re giving up to the leasing company,” Jack Saum said. “But at the end of the day you purchase equity, so if you purchase the equity did you really gain anything?” There is also a cash-flow argument in favor of ownership, despite the more predictable nature of costs with leasing. “At the beginning of the lease you’re going to be paying for future expenses because you’re going to have a mileage But if large numbers of private fleets start
from the OEM’s and private fleets do
charge that’s more than you’d expect to
competing for the same limited pool of
not have the same access to this training.
run at the beginning, and less at the end,”
mechanic talent, now the industry has a
Dealerships are better positioned to
Jack Saum said. “So, from a cash-flow
serious problem.
provide factory trained technicians to work
perspective, you could argue that you’re
on the trucks.”
going to be pre-paying expenses that
“If we’re all appealing to the same pool of mechanics,” Caterham said,
But what about the most fundamental
you’re realizing later.”
“then someone who has maintained their
argument for ownership of an asset – that
own fleet may consider captive leasing
of equity? Even a depreciating asset still
way. Companies who want the benefits
services because of the shrinking pool
has some value, and many companies
of leasing without losing the benefit of a
of mechanics. The best training comes
prefer to have complete control over their
depreciating asset do have an option.
There is a middle ground, by the
KELLY Benefit Strategies is proud to be endorsed by the
Maryland Motor Truck Association (MMTA)
kellybenefitstrategies.com
12
BEHIND THE WHEEL
| Q4 WINTER 2019
MMTANET.COM
“Let’s say their mileage falls in the right range for leasing, but they really want to have that asset on the books as a depreciating asset,” Parker said. “In that case we could sell them the truck but put it under a contract maintenance program, which offers all the benefits of a full-service lease, except that we don’t buy the asset and lease it to them.” That allows the company to claim the depreciation in addition to maintaining the residual at the end of its use of the truck. Another option is straight rental, which can work for those who want some time to make a longer-term decision between this article are just that. Only you can
leasing and buying. “Let’s say you’re starting a business,
help them.
ultimately decide the best course of action
Whatever you decide, think critically
you need a truck and perhaps you rent
when it comes to acquiring the use of a
and find out everything you need to know.
one until you figure out what you need,”
truck or trucks.
Dealerships like the two featured here,
But it’s fair to say that everyone
Caterham said. “It allows you to make a
as well as many others, want you to
risk-free investment and you can turn it in
is better off if they at least know the
drive away with one of their trucks. They
whenever you want to, so there’s no risk.” Every company’s situation is unique,
questions they should be asking, and if
also want you to do it under terms that
they understand the resources of other
will, in the long run, make you happy
of course, so the guidelines offered in
players in the field who might be able to
you did.
BALTIMORE POTOMAC TRUCK CENTERS, INC. Baltimore Truck Center, Inc. 610 Nursery Road Linthicum, MD 21090 410-636-6200
Baltimore Truck Center, Inc. 803 Central Avenue Linthicum, MD 21090 410-636-9330
Baltimore Truck Center, Inc. 11715 Greencastle Pike Hagerstown, MD 21740 301-733-1707
Potomac Truck Center, Inc. 3371 Kenilworth Avenue Bladensburg, MD 20710 301-864-2000
Potomac Truck Center, Inc. 7750 Progress Court Gainesville, VA 20155 703-753-6444
Now offering full-service leasing and rental!
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MMTANET.COM
BEHIND THE WHEEL
| Q4 WINTER 2019
13
New MMTA Chairman Always Knew He Would End Up 'on the Waterfront'
Getting to know MMTA's incoming leader, Armand Patella of Preferred Services, and what he deems important BY STEVE BRAWNER CONTRIBUTING WRITER
PHOTOGRAPHY BY DAVID SINCLAIR 14
BEHIND THE WHEEL
| Q4 WINTER 2019
MMTANET.COM
MMTA’s 2019-2020 chairman has
City was ready to begin a long awaited,
with industry-wide issues such as hours
worked in the intermodal industry since
major rebuilding of Broening Highway
of service regulations and the electronic
high school, and now he’s helping carriers
which would lead to its own delays and
logging device mandate. As he explained
navigate that challenging business as
the intermodal trucking industry was just
it, “I’ve learned that you don’t necessarily
a consultant.
not ready for the additional stop-off.” he
have to be a port trucker to experience
said. As it turned out, the road project ran
the strain that these large import volumes
companies, Armand Patella, 61, this
a year overdue and would, at times, have
place on the supply chain. An intermodal
January began advising clients through
made access to the new yard impossible.
carrier will most likely move the cargo to
After a career working for other
Preferred Services, LLC, a transportation
In 2013, he led the charge for the
a distribution facility or warehouse, but
trucking industry against the Storm
then the same cargo is loaded to a domestic
Water Remediation Fee in Baltimore City.
carrier for store or last-mile delivery. If it’s
really know trucking thoroughly, but the
Working together with other industry
late to the warehouse, it may be really late
intermodal part is such a deep subject, with
associations and individuals, the coalition
to the store — especially if your driver runs
so many outside influences, that they may
was able to convince city legislators of the
out of hours!”
not be familiar with the particular details
additional financial burden and obtain
or requirements of a certain situation.” he
rate reductions, caps, and discounts for
operators who are dealing with giant,
said. “For instance, our clients may not
Baltimore City landowners.
foreign-owned companies that know
consulting business. “Most of the companies I deal with
be aware of specific procedures for a
By late 2015 and early 2016, it had
Most of Patella’s clients are smaller
how to turn fees into big profits. He
certain equipment provider and assume
become evident that the avalanche
often can help resolve their issues, or
the rules are the same across the board,
of arriving imports was presenting a
at least explain them, with a quick
so we try to guide them through their
challenge for the Port’s infrastructure. As
consultation. The bulk of his time is
individual situation. Other clients are
the economy recovered and water carriers
spent clarifying rules, regulations, and
looking for operational or sales assistance,
navigated to the east coast through the
requirements. For example, a client might
terminal planning, human resources, or
newly widened Panama Canal, Baltimore
be under the impression they must return a
other services.”
was suffering from the terminal congestion
container to a pier in five days, but Patella
and associated truck delays that were also
knows that particular company only
navigate these challenges, but also the
plaguing other ports. Working closely
allows four days. Often, clients will have
entire industry as the decade-long chairman
with Ports America, Patella was able to
a contract issue with a chassis provider or
of the MMTA’s Intermodal Council. He
communicate the needs and issues of the
container operator.
helped MMTA push a bill through the
trucking community for better turn times
General Assembly in 2019 that increased
and increased visibility. Ports America
so anxious to get in the business, they’ll
the weight limit from 80,000 to 100,000
added additional resources such as labor
sign just about anything to get the wheels
pounds on certain routes for containerized
and equipment, RFID tag readers, and
rolling. It’s not until there’s an issue that
cargo, which was necessary because of
posted times on their website. During
they have to refer back to that contract
containers’ increasing weights. “Not
particularly long periods of pier delays
they signed and learn, ‘Oh, man, do I really
because I liked the prospect of heavier
caused by volume, weather, or other
have to pay $200 a day to rent this piece of
boxes, but because the Port’s customers
factors, he was also successful negotiating
equipment?’ or ‘I only had how much time
and our members needed it to keep pace
extended free time for imports.
to return it?’ ” he said. “So, we just try to
Patella helps not only his own clients
with other ports.” he said. Several years ago, management of
“Armand has been a tireless advocate for the trucking companies operating at
“The big thing I find is people are
give them a little help understanding those issues and avoiding them in the future.” Wayne Gaumer, president emeritus
Baltimore’s Seagirt Marine Terminal was
the Port. I am certain he will continue
turned over to Ports America Chesapeake,
that approach representing the entire
of intermodal drayage carrier Lightning
a private terminal operator, as part of a
membership of Maryland Motor Truck
Transportation, said Patella has “unlimited
public-private partnership. The change
Association as our chairman,” said Louis
energy.” He said Patella’s relationships
means port users are now dealing with
Campion, MMTA’s president and CEO.
throughout the intermodal sector benefit
a private company rather than the state.
While Patella’s career has been spent
the entire motor carrier industry. “Anything that truckers aren’t sure
In 2011, Patella led a group of members
in intermodal operations, he understands
who successfully convinced Ports America
the issues facing the entire industry. All
of and need information from the
to delay their original plans to relocate
intermodal carriers are considered to be
stakeholders at the port, Armand has those
the Port’s chassis to an off-site yard. “The
interstate carriers, and he’s had to deal
MMTANET.COM
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| Q4 WINTER 2019
15
Patella always knew he would end up working on the waterfront. The native of Brooklyn, New York, is the youngest of five children. Both his father’s and mother’s families had early ties to the NY piers and all the stories that came with it. “At least in my mind, there was never any question I would end up in some sort of cargo handling or transportation related business. It was always interesting and seemed to be what I was going to do.” Patella said. Starting in his later high school years, he would spend his summers and other breaks in Miami working for Maritime Cartage Company. He started as a clerk, became a dispatcher, and then general manager. He earned extra money on the commute driving individuals’ cars between their homes in the Northeast and South. He continued with Maritime Cartage until taking a job in retail in New York City Maryland's Honorable Governor Larry Hogan with Armand Patella, Preferred Services
while earning a management degree at Brooklyn’s St. Francis College.
connections and works to get problems
Maryland. The current credit sunsets after
solved. He gets answers to any questions
the 2019 tax year. He also wants Maryland
water carrier United States Lines his
that come up, and then disperses the
to revisit its preventive maintenance
senior year of college. The company had
information back to the membership
program for newer trucks equipped
been purchased in 1978 by Malcolm
through MMTA,” he said.
with modern safety technology. The current
McLean, who had pioneered containerized
program was drafted over
shipping as the founder of Sea-Land. With
knowledge of the trucking industry will
25 years ago and needs some revision
the country in the midst of a recession,
translate well in his year as chairman of
to account for the advances reflected in
Patella was glad to be one of the few
MMTA. “He’s a leader,” he said. “His
today’s equipment.
graduates among his classmates with a
Gaumer said Patella’s thorough
communication and problem-solving skills are fantastic.”
The association is up against a
Patella was recruited to work for
job offer. In June 1980, he accepted a job
number of important state and national
in operations and was sent to Savannah,
issues, including infrastructure funding
Georgia for training in every aspect of the
Patella’s goals as MMTA’s chairman. As he
and ensuring independent contractors
business, including equipment control,
describes, “Nothing gets the attention of
aren’t reclassified as employees. The
administration, maintenance, terminal
legislators more than a large constituency.”
industry should support congressional
and vessel operations, railroads,
He wants to increase support for those
ratification of the United States-Mexico-
and contracts.
legislators who endorse policies that
Canada Agreement, President Trump’s
represent the needs of Maryland’s trucking
replacement of the North American Free
he had put together was tremendous and
community and oppose any actions
Trade Agreement. Also important is the
the time I spent in Savannah really shaped
detrimental to the industry. He’d also like
DRIVE-Safe Act, which would allow
my career. That’s where I learned that
to attract a younger, more diverse member
drivers under age 21 to travel across state
despite all the investment in ships, cranes,
base by assuring them their ideas and
lines. For intermodal carriers, important
and boxes, shipping was a service business.
concerns are important and can help direct
issues remain relieving port congestion,
Learning how to deliver good service was
the association’s efforts.
establishing “trucker choice” for chassis,
probably my biggest take-away. But, being
Policy goals include a three-year
and improving the safety and reliability
exposed to all the different elements of
extension of the $400 income tax credit
of equipment dispensed by intermodal
what makes a shipping company work on
for Class F tractors titled and registered in
equipment providers.
Increasing membership is one of
16
BEHIND THE WHEEL
| Q4 WINTER 2019
“Working for Mr. McLean and the team
CONTINUED MMTANET.COM
MMTANET.COM
BEHIND THE WHEEL
| Q4 WINTER 2019
17
a global scale gave me the direction that I
for bankruptcy. Fortunately, earlier that year, Patella had
wanted to follow.”
of the American water carriers. During his career, the industry came to be dominated
accepted a job as vice president at Picorp
by a small number of huge international
supervisor in New York and then moved to
Inc., a container and chassis maintenance
companies including Denmark-based
the company’s headquarters in Cranford,
and repair company that operated as an
Maersk and Taiwan- based Evergreen
New Jersey. In 1982, he was transferred to
agent for leasing companies. “At that point,
Marine. Today, there are almost no
Baltimore, where eventually he became port
the only aspect of operations I was missing
American merchant ships other than
operations manager. During his six-year
was the maintenance and repair piece.
oil tankers. Even the United States
career with the company, he had temporary
Picorp offered me the chance to develop
military hardware is transported overseas
assignments in places as varied as Boston,
that skill and learn the leasing component
under contracts with these foreign-
Chicago, Norfolk, and Oakland.
of the business.” he said.
owned companies.
Patella started as an equipment control
“It was like being in the Army,” he said.
Patella would spend 32 years at Picorp,
“It was a function of the economics
“You had to show up with a packed bag
where he played a variety of roles enroute
of containers driving the cost of shipping
every day because you never knew where
to the position of senior vice president
down to ridiculously low levels so that
they were going to send you. But it was a
for business development helping the
the only way you could make a profit
lot of fun.”
company evolve into a full-service provider
was to do it on a gigantic scale,” he said.
of intermodal services. “It was great,” he
“Build ships bigger – every year the ships
Tom Huesman, now the president of
get bigger, the cranes get bigger, and they
“[PATELLA'S] A LEADER. HIS COMMUNICATION AND PROBLEMSOLVING SKILLS ARE FANTASTIC.” -- WAYNE GAUMER, LIGHTNING TRANSPORTATION
handle more and more volume so they can benefit from economies of scale. And during that transition, the American companies simply said there’s just not enough money in the return to justify the amount of capital outlay.” The dominance of those international water carriers would force the American supply chain to react. For example, those carriers might decide to allow transporters
Terminal Transportation Services and
said. “The job varied and came with a lot
four days instead of five to collect freight
himself a former chairman of MMTA,
of responsibility. I was able to use the skills
at the pier. Also, when they decided to
was the U.S. Lines boss who brought
I already had and develop new ones along
exit the chassis business almost overnight,
Patella to Baltimore after meeting him
the way.” When the company was looking
other companies expanded or entered that
in New York. He said Patella knew how
for new business opportunities, he would
market and were not prepared for the
to get the best out of people and also
help identify, set-up, and integrate the unit.
transition. Moreover, American regulators
worked well with the company’s powerful
After creating an equipment sales division,
have limited control over those foreign-
labor union.
he headed up the resales of new and
owned companies.
“We were a booming company back
secondhand containers and chassis. And
“I’m amazed at the evolution that’s
then that handled five or six ships a week,
last year, he stepped in to reorganize their
taken place over the last 35 or 40 years
and you had to keep everybody moving
trucking division, using the experience he
where so much of our supply chain is the
and motivated,” he said. “It was a very
had learned earlier.
consequence of foreign flagged companies
daunting task and Armand always did very
Patella’s career has coincided with
making decisions that can rock our
well stepping up to the plate doing that.”
what he described as an “earth-moving”
infrastructure. Yet, U.S. transportation
The two remain close friends.
evolution in the shipping business that
regulators have far less oversight and
was already occurring when he entered the
control over these companies than they
were coming. The company was freezing
industry. Offloading by hand and pallet
ever did” he said.
spending and wages, cutting its budget,
was replaced by containerization, which
and delaying vendor payments. Personnel
required ports to expand or move to areas
their port destinations based on weather,
were being moved around to fill openings
that could handle the space demands.
port inducements and other factors. For
But Patella could see hard times
caused by employees leaving the company. In November 1986, the company filed
18
BEHIND THE WHEEL
| Q4 WINTER 2019
Containers made it easier to transport imported goods and also led to the demise
Those huge water carriers can change
example, a port that might regularly handle 1,000 loads weekly from a carrier MMTANET.COM
like Maersk might be asked to handle
their customers and grow their businesses,
to. They really don’t want to hear about
3,000 due to a hurricane or congestion
but then supply chain disruptions
all the complications that will make you
at another port. The supply chain must
prevent them from meeting expectations.
miss an appointment. Unfortunately, in
then react to an additional 2,000 loads
Those disruptions can leave a driver
the intermodal business, there are so many
in the same period of time with the same
stuck at the port for hours and unable
factors out of our control that most days
amount of equipment and labor resources.
to pick-up because they’ve missed the
it is difficult or impossible to control your
Meanwhile, there are seasonal variations
delivery appointment, or the driver
own destiny. We coach to manage those
and surges that occur because of consumer
has run out of service hours. This can
expectations, sometimes hour-by-hour, to
buying habits. The trade war with China
lead to pier storage charges, known
fulfill your commitments and not to go
has added a recent complication.
as demurrage.
broke doing it.”
That environment can make it hard for
Patella helps his clients deal with
And it’s that customer focused,
trucking companies to respond, especially
all of those issues. “When a customer
problem-solving approach that Patella
smaller ones. Patella said his clients seek
commits their freight to you, they want
intends to bring to Maryland Motor Truck
his help because they’re trying to serve
it delivered when you say you’re going
Association as its 2019-2020 chairman.
A Closer Look... What is your “guilty pleasure”? Bingeing on a TV series with Reese’s peanut butter cups. Having a pizza within reach is always helpful too. It helps to reinforce the “guilty” part. Favorite kind of music? Or favorite song? I enjoy all kinds of music but, if I had to narrow it down, I really like Alternative Rock, Jazz, and Vocals. My all-time favorite song is Nessun Dorma from Puccini’s opera Turando. It never gets old.
Night Owl or Early Bird? Very much a night owl. Despite years of trying to break the cycle, I still cringe when I have to wake before 8 a.m. What is one piece of advice would you offer to a young person today? Definitely to stay in school and memorize the Times table. An education is one thing you can’t lose and it can’t be taken from you. The Times table will make math chores seem second nature. If you could learn to do anything, what would it be? Scuba diving. I’ve played at it and have a couple of friends who enjoy it and make it part of their travel plans. And, it seems like a better choice than jumping out of a plane.
MMTANET.COM
What makes you unique? My family. I am truly blessed with the best family anyone can ask for.
Pacific. I’d settle on one of their secluded islands to read books and sail. Who or what makes you laugh the most? Watching Rodney Dangerfield do his stand-up routines. I have to watch them a couple of times because I’m laughing so much, I miss the next joke. Would you sing at karaoke night? Probably not. My friend, Jack Daniels, and I have much more fun watching other people try to do it.
Name one of your weaknesses? Easy — Food. Number one on the list is a big, fat, greasy cheeseburger with fries and a shake. Five Guys is the best.
If you could choose any job for one day, what would it be? Chairman of the Federal Reserve. It always seemed like so much mumbo jumbo that I’d like to see if they really do anything all day.
One word to describe yourself. Spontaneous. (You just have to learn to keep yourself out of trouble.)
Biggest pet peeve? A messy or disorganized work area… unless it’s my own!
First Job? A mason’s helper during a summer. I earned about $3 an hour to haul and stack concrete block and cement. Nothing makes you want to stay in school more than that.
Worst gift ever received? I’m really not sure but if I had to pick one, it’d be that fruit cake that seems to get re-gifted all the time.
If you could live anywhere, where would it be? The small nation of Tonga in the South
Do you collect anything? Yes, my thoughts. I find the older I get, the more time I have to spend collecting them.
BEHIND THE WHEEL
| Q4 WINTER 2019
19
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Bozel Transfer Has ‘Always Been a Family Effort’ Bozel Transfer reaches a milestone in 2019 that few trucking companies ever achieve – 100 years in business! BY STEVE BRAWNER CONTRIBUTING WRITER
PHOTOGRAPHY BY DAVID SINCLAIR
He was very hands off, very
How do five brothers keep a 100-year-old trucking
likable. If you didn’t like Moe,
company – and their family –
then it was a ‘you problem.’” Moe’s talents, along with the
going strong? By basing both on timeless values such as respect
trucking industry’s deregulation
for each other, their employees
in the 1980s, enabled the carrier
and their customers – and by
to expand its service area. Meanwhile, he insisted his
trusting each other to do their
five sons learn the business from
jobs well.
the ground up, so they worked in
“With five brothers,” said Chris Bozel, the youngest
the warehouse, unloaded trucks,
brother at Aberdeen-based
and some even had delivery
Bozel Transfer, “I guess you’re
routes during high school
big enough so you can run your
and college.
own departments and not step
The Bozel Brothers (L to R) Rick, Moe Jr., Chris, Pat, Jeff
The sons were all born within five-and-a-half years of
too much on each other’s toes.
each other (Pat and Rick are
We’ve always respected each other’s boundaries and departments, and we
bought his first truck with proceeds from a
twins) and were raised in a strong Catholic
don’t interfere or cross-reference. We don’t get
pawned player piano. From its location at
family and received Catholic educations. They
ourselves in the middle of each other’s business,
Camden Yards, R.W. Bozel Transfer served
graduated from Calvert Hall College High
per se.”
small businesses in the Baltimore-Washington,
School and then earned college degrees at
D.C. area. With help from wife Josephine, who
Loyola University Maryland.
The company was formed in 1919 by Richard “Dick” Bozel and is now led by five
kept the books, he grew the company to 10
of his grandsons. Chris is the company’s Chief
trucks by the mid-1930s in the midst of the
Financial Officer. The other brothers are Pat,
Great Depression.
CEO and President; Moe Jr., Vice President of
Meanwhile, the two also grew their staunch
Chris said their mother, Joan, deserves much of the credit for the family’s success. “She’s the saint in all this,” he said. “We grew up an old school family. The father worked.
Sales; Rick, Vice President of Facilities; and Jeff,
Catholic family to 10 children – two of whom
The mother took care of the home. She did that
President of the company’s brokerage firm,
became nuns while a third became a monsignor
and she played referee. She had to pull us apart
Bozel Enterprises.
and a fourth was a Christian Brother. Three
a couple of times. But growing up, it was just
sons, Richard, Joseph and Maurice, or “Moe,”
fun. You always had a playmate, and there was
joined the company in the 1950s. Dick Bozel
always something to do.”
Each brother has his own role to play at the LTL refrigerated hauler. “Each of us gears our energies toward
died in 1971, Richard retired soon afterwards,
Chris said it was not a given that all five sons
running our department,” Chris said. “Then in
and Joseph died in 1978, leaving Moe, the
would work at Bozel Transfer, which for a time
the board meetings, we talk about the bigger
youngest of the 10, in charge of the company.
wasn’t big enough to support them all. In 1978,
issues. They say you can’t rule by committee, but
He had no problem filling the role.
we do a pretty good job of doing it.”
“He was a salesman’s salesman,” Chris said.
The company started when Richard Bozel MMTANET.COM
it had a little more than $1 million in sales. But one by one, they all joined the business.
“He was one of those old-school backslappers.
CONTINUED BEHIND THE WHEEL
| Q4 WINTER 2019
21
Moe Bozel Sr.
Richard "Dick" Bozel
Pat worked there all through high school and
terminals in Norfolk, Virginia; Jamesburg, New
together and have season tickets to Baltimore
college and never left. Moe Jr. also went to work
Jersey; and Waterbury, Connecticut.
Ravens football games.
there, while Jeff worked for Bozel Enterprises, the
“We love this company, and we had a great
The company celebrated its 100th year
brokerage firm. Rick and Chris eventually joined
blueprint from my father and my grandfather,
with a company-wide celebration with
the family business – Chris the last in 1989.
so it wasn’t really hard,” Chris said of the
employees and their families at a nearby
company’s growth. “We didn’t have to reinvent
country club, with food, drink, entertainment
the wheel, no pun intended. But we
and lots of festive activities. Linda Schomer,
just added a few things here and there, and
human resources and risk management director
meeting with the bank, or the corporate lawyer,
you have to remember, deregulation helped us
and a 30-year employee, said employees are
or even with drivers,” Chris said. “He made
immensely, too.”
treated with respect, and the brothers are very
Moe Sr. retired in 1995 after training his sons to run the business. “He involved us very early whether it was
While the five brothers each have their
personable and maintain an open-door policy
transpired. So we were exposed to everything
management roles, they also lead the company
with all employees. There is definitely a family
at an early age, and then he trusted us at a
jointly. All serve on the boards of Bozel Transfer,
atmosphere. All day long, employees go directly
relatively young age. He let us grow each
Bozel Enterprises, and Eskimo Enterprises,
to any of the brothers whenever they have
department or each area and was hands off, and
which owns the facilities. They keep an open-
an issue.
then he just encouraged us to shoot bigger.”
door policy for both employees and customers.
sure we were present so we could see what
The brothers’ combined efforts enabled
“Being a service industry, I think it’s
Keith Butler, a trip driver who has driven most of his 20-year career for the company,
the company to continue growing. Today it
important to customers that they know they can
said he feels respected not just by the Bozels, but
has 110 employees, including about 70 full-
pick up a phone and speak to a Bozel,” Chris
also by his dispatcher, Marty Smith. One of the
time and part-time drivers. It has 70 tractors
said. “They know that they’re not just hearing
reasons he’s stayed with the company so long
and 120 refrigerated trailers, all company
white noise; they’ll get a response. They know
is because he doesn’t feel taken for granted. He
owned. It serves more than 400 customers
that we challenge our employees, and they
said another is because it’s a well-run, profitable
ranging from Fortune 500 companies to those
know that we try to go above and beyond your
company where the “checks don’t bounce.”
shipping a couple of pallets a week. Among
normal service expectations.”
Talking with Chris, he said, “feels like I’m
its largest customers are Reser’s Fine Foods,
The family remains close and shares many
talking to a friend.” “A lot of people are intimidated by their
which makes pasta and macaroni salads;
fun and meaningful activities outside of the
Lamb Weston, which makes potato products;
office. Moe passed away in 2002. Their mother,
immediate supervisors, bosses or owners, and
and US Foods, a food distributor serving
Joan, will be celebrating her 82nd birthday in
I can talk to him just like I’m talking to you
restaurants and the healthcare industry. About
November. For her 80th birthday, the brothers
right now on the phone. That’s a pretty good
10 years ago, it added a 50,000-square-foot
took her to Las Vegas, which was one of her and
situation,” he said.
refrigerated warehouse with 26 dock doors at
Moe’s favorite places to visit.
its headquarters in Aberdeen. Freight is brought
The brothers are among the founding
That’s not an accident. The brothers understand how important drivers and employees are to the company.
there, sorted, and then shipped to supermarkets,
members of GB Charities, a charity that is very
warehouses and food service venues as far south
dear to their hearts. GB charities raises money
as the Carolinas, as far north as Maine, and as
for low-income children in the Baltimore and
Bozel Transfer that made this company great,
far west as Ohio. Those “trip drivers” are in and
Washington, D.C. area to attend Catholic
and not one Bozel is singularly responsible for
out in two or three days. The rest of the drivers
schools. Chris estimated it has served more than
the success,” Chris said. “It’s always been a
report every day. The company has satellite
100 students. For fun, the brothers play golf
family effort.”
22
BEHIND THE WHEEL
| Q4 WINTER 2019
“We all realize that it’s the employees of
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| Q4 WINTER 2019
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MMTA Hosts Fall Conference ON THE
f her gnition o ue in reco q la p l e v ith ga tmeyer w term. sents Wit 2018-19 e th r Patella pre fo e ic rv se d an leadership
FMCSA Depu ty Director Alan Hanson pictur with Wittmey ed er.
Wittme yer pre sents in procla coming mation Chairm of duti es for h an Pate is 2019 lla with -2020 his chairm anship .
r after he t Chris Spea rs. TA Presiden A ks and’s trucke an yl th ar Maria sage to M es m t ea b up delivered an
ort, stating their supp Chairman’s Award e th ive ce . re ice to MTA Staff her year of serv yer chose the M r success during Chairman Wittme ie Anne Bonnett. rk as a key to he wo rd ha d an ss a Griffin and Marg ine Wittmeyer, Selen friendliness, read ria Ma ll, va Du Dottie arp, Kathy Norris, L to R: Brenda Th
24
BEHIND THE WHEEL
| Q4 WINTER 2019
MMTA Sta ff presente d Maria w goodies – ith a “giraf all items fe fic” bag of aturing he knew a gir r favored an affe head imal! Who made a gre at wine sto pper? MMTANET.COM
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BEHIND THE WHEEL
| Q4 WINTER 2019
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Sometimes People Must Come Together for a Mission THANK YOU Since 1954, the American Transportation Research Institute and its predecessor have been the trucking industry’s source for scientific data and analysis on the many high priority issues facing freight transportation today. The people and companies listed here are our core contributors, annual donors who have come together in this mission to help the industry as a whole. If you or your company has not contributed in the past, now is the time to step up and do your part. Step up and leave your footprint for the good of the industry. Visit www.atri-online.org to explore your giving opportunities.
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