Behind the Wheel - Q4 Winter 2019

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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

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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

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| Q4 WINTER 2019

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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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MMTANET.COM

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

CONTINUED  BEHIND THE WHEEL

| 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

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* * * 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.

➥

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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

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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.

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Potomac Truck Center, Inc. 3371 Kenilworth Avenue Bladensburg, MD 20710 301-864-2000

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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

CONTINUED  BEHIND THE WHEEL

| 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

MMTANET.COM

k n a h T you

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23

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

Members "Boosting Their Businesses"

MMTANET.COM

BEHIND THE WHEEL

| Q4 WINTER 2019

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BEHIND THE WHEEL

| Q4 WINTER 2019

BEHind tHE WHEEl ~ Q3 Fall 2016

19

MMTANET.COM

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.

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Visit www.atri-online.org to explore your giving opportunities.

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