CCJ0714

COMMERCIAL CARRIER JOURNAL SINCE 1911

JULY 2014

WHERE'S MY TRAILER? Technology keeps tabs on widespread assets page 52

A CLEARER VIEW LED lighting becoming standard spec page 26

POINT A TO POINT B Routing systems make the best choice page 36 BUSINESS SOLUTIONS FOR TRUCKING PROFESSIONALS

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jUly 2014 | vOl 171 | NO. 7

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journal

CSA’S diStorted rAnkingS

Three and a half years after Compliance Safety Accountability began its scrambling of how trucking safety is regulated and scored, carriers and owner-operators concerned about the reliability of their scores continue to suffer from its fallout, while bureaucrats struggle to repair the complex program.

Don’t expect fixes anytime soon.

leADINg NewS, tRUCkINg MARket CONDItIONS AND INDUStRy ANAlySIS

7

News

8

InBrief

Cover design by David Watson

features

52

Power up

The first generation of selfcontained trailer tracking systems was severely limited with their communications to conserve power, while systems powered by the tractor were fairly expensive and difficult to install. But the technology continues to evolve, as witnessed by the latest offerings and the challenges they help solve for fleets.

41

Innovators: Long Haul Trucking

The Albertville, Minn.-based flatbed carrier goes all-in on advanced safety technologies and driver amenities to improve recruiting and retention efforts and incentivize safe driving practices.

Senate bill sets e-log, carrier fitness deadlines … House bill would nix gasoline tax, index diesel tax to fuel economy …

Senate committee clears bill amendment to temporarily undo parts of HOS rule …

FMCSA updating data system to account for successful challenges to roadside citations … OOIDA demands Ferro’s resignation …

House amendment would stop carrier insurance minimum hike … New Century closes, files bankruptcy; driver sues for lack of notice … First U.S.-Mexico cross-border participant investigated for possible violations …

Report criticizes DOD hazmat shipping, use of CSA … California considering replacing fuel tax with mileage tax

16 Fuel Savvy

commercial carrier journal

| july 2014 1

DEPARTMENTS

ccjdigital.com

technology

33

facebook.com/CCJMagazine

Navistar hitting its stride with telematics

34 InBrief 19

Kenworth’s T680 Advantage has integrated drivetrain

22 24

Detroit unveils new fully integrated powertrain Meritor announces ‘intelligent’ truck axle system project

36 36

Verizon, J.J. Keller integrate for fleet management Pegasus TransTech acquires TripPak, ACS

Hino, Telogis team for medium-duty telematics initiative

Mileage and routing

ALSO IN THIS ISSUE

4

Upfront

80

Preventable or Not?

79

Ad Index

Products

CNG system, docking station, cleaning wipes, more

| JULY 2014

production@ccjdigital.com

Trucking Media

Vice President of Sales, Trucking Media: Brad Holthaus sales@truckingmedia.com

Corporate

38 InFocus:

COMMERCIAL CARRIER JOURNAL

Editor: Jeff Crissey Executive Editor, Trucking: Jack Roberts Senior Editor: Aaron Huff Managing Editor: Dean Smallwood Trucking News Editor: James Jaillet Contributing Editors: Carolyn Magner Mason

Art Director: David Watson Graphic Designer: Kenneth Stubbs Quality Assurance: Timothy Smith Advertising Production Manager: Anne Marie Horton

28 Test drive: Volvo VNX

2

Editorial

Design & Production

26 InFocus: LED headlights

63

linkedin.com/ccjmagazine

editorial@ccjdigital.com

20 InBrief 22

@CCJnow

When the ELD deadline arrives, will you be ready?

John Doe hit the brakes and swerved to avoid a car cutting in front of him, but the collision damaged his right front fender. Was this a preventable accident?

Chairman/CEO: Mike Reilly President: Brent Reilly Chief Process Officer: Shane Elmore Chief Administration Officer: David Wright Senior Vice President, Sales: Scott Miller Senior Vice President, Editorial and Research: Linda Longton Senior Vice President, Acquisitions & Business Development: Robert Lake Vice President, Events: Stacy McCants Vice President, Audience Development: Stacy McCants Vice President, Digital Services: Nick Reid Vice President, Marketing: Julie Arsenault

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Address all mail to Commercial Carrier Journal Editorial Dept., P.O. Box 3187, Tuscaloosa, AL 35403. All advertisers for Commercial Carrier Journal are accepted and published by RandallReilly Publishing Co. LLC on the representation that the advertiser and/or advertising agency are authorized to publish the entire contents and subject matter thereof. The advertiser and/or advertising agency will defend, indemnify and hold Randall-Reilly Publishing Co. LLC harmless from and against any loss, expenses or other liability resulting from any claims or suits for libel violations of right of privacy or publicity, plagiarisms, copyright or trademark, infringement and any other claims or suits that may arise out of publication of such advertisement. Copyright © 2014, Randall-Reilly Publishing Co. LLC All rights reserved. Reproduction in whole or in part without written permission is prohibited. Commercial Carrier Journal. is a registered trademark of Randall-Reilly Publishing Co. LLC. Randall-Reilly Publishing Co. LLC neither endorses nor makes any representation or guarantee regarding the quality of goods and services advertised herein.

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leading news, trucking market conditions and industry analysis

Senate bill sets e-log, carrier fitness deadlines

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few months of the end of public comment he Senate’s version of the annual periods on proposed rules, and the Jan. appropriations bill for the U.S. 30 deadline would give the agency seven Department of Transportation months to publish its final ELD rule. contains language that would prevent the The bill’s language wouldn’t seem to set Federal Motor Carrier Safety Administration an unrealistic target, but FMCSA has missed from dragging its feet in producing a final several self-set timeframes on its calendar. electronic logging device mandate rule.

Citing “excessive” delays on a Safety The bill also sets a deadline for the agency Fitness Determination rule, the bill also to produce its long-awaited Safety Fitness would require FMCSA to initiate a rulemakDetermination rule, the timetable for which ing “no later than December 2014.”

FMCSA has continued to push back.

The SFD rule is the agency’s next step The Senate’s Transportation, Housing in its Compliance Safety Accountability and Urban Development bill gives the program. The rule would allow the agency agency $592.3 million in funding for the 2015 fiscal year and came out of the Senate’s to use a similar data set it uses in CSA’s Safety Measurement Appropriations System rankings to Committee June 5, produce an actual when an amendfitness score for carment was added to riers. It then could suspend the 2013 use the scores to hours-of-service rule target carriers for for at least a year intervention. until more study can The THUD bill be done to justify its text calls the SFD restart provisions.

The deadline in the Senate bill – Jan. 30, 2015 rule “the corner(See page 10.)

– would give the agency seven months to publish its final ELD rule. stone of CSA,” and If passed, the that until the rule is Senate bill would implemented, “FMCSA continues to rely on require FMCSA to publish a final ELD a rating and enforcement system that fails to rule by Jan. 30, 2015. The current MAP-21 place sufficient emphasis on both driver and highway funding bill required the agency to vehicle qualifications, thereby compromising produce a proposed rule by Sept. 30, 2013, safety on our nation’s highways.” but the agency didn’t publish the proposal In its most recent monthly report on siguntil March of this year. nificant rulemakings, DOT projected Dec. The 90-day public comment period on 17 as the publication date for the SFD rule, the rule ended June 26, after which the which was a delay from the prior month’s agency began work on a final rule. The agency usually produces a final rule within a Sept. 16 projected date. Sept. 16, however, also was a delay from months prior: At points last Scan the QR code with your smartphone or visit ccjdigital.com/news/subscribe-to-newsyear, the rule was projected letters to sign up for the CCJ Daily Report, a to be published in May daily e-mail newsletter filled with news, analy2014. sis, blogs and market condition articles.

– James Jaillet

House bill would nix gasoline tax, index diesel tax to fuel economy

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s the Highway Trust Fund’s insolvency looms, U.S. Rep. Peter

DeFazio (D-Ore.) introduced a high-

way funding plan that would repeal the federal gas tax in favor of other funding options, like taxing oil barrels and indexing the diesel tax to inflation and fleet fuel economy.

DeFazio’s Repeal and Rebuild Act is designed to be a long-term solution that he says would create jobs, repair infrastructure and “break the transportation funding impasse that has plagued Congress for years.”

The act would: • Repeal the federal gas tax; • Increase the tax on a barrel of oil that is processed into gasoline to $6.75 and index it to construction cost inflation and fleet fuel economy; • Index the diesel tax to construction cost inflation and fleet fuel economy; • Bond the new revenue to backfill the Highway Trust Fund shortfall; and • Support a $324 billion six-year reauthorization.

In the bill’s first year, it would raise less than the 18.4-cent gas tax but provide potential short-term relief to buyers, DeFazio said.

But the barrel tax would be indexed to the U.S. Department of Transportation’s National Highway Construction Cost Index and to CAFE standards with the goal of mitigating losses that could be seen from higher fuel economy – something the current gas tax does not do.

commercial carrier journal

– Kevin Jones

| july 2014 7

JOURNAL NEWS

INBRIEF 7/14 • The Federal Motor Carrier Safety Administration in June announced a delayed timeline for its rule to mandate speed limiters in heavy trucks. The agency now expects to publish the proposed rule Oct. 23, a three-week postponement from its estimated Oct. 1 publication date issued in May. FMCSA has not commented on its proposed mandated speed limit.

• Drivers carrying livestock received a yearlong exemption from the 30-minute break requirement of the hours-of-service rule “to ensure the well-being of the nation’s livestock during interstate transportation,” the Federal Motor Carrier Safety Administration announced June 6 via a Federal Register notice. The exemption builds on the 90-day waiver granted to livestock haulers last summer after the National Pork Producers Council petitioned FMCSA. • TransForce (CCJ Top 250, No. 8) of Saint-Laurent, Quebec, agreed to acquire Eagan, Minn.-based dry van truckload carrier Transport America (No. 65) from Goldner Hawn Johnson & Morrison for $310 million.

• Con-way ordered 5501new2/25/14 tractors, 540 ofAM which Poly Truckload Deckboard_7x4.5.pdf 10:52

will be equipped with automatic transmissions and all with 6x4 axles, as part of the Joplin, Mo.-based company’s replacement cycle for its 2,700-tractor fleet.

• Love’s Travel Stops debuted Love’s Financial, a factoring service designed to help drivers manage their business and cash flow through flexible cash management products with lower transaction fees. Love’s pays its customers within 24 hours or less of delivering a freight load. Drivers can factor with Love’s remotely or at any Love’s that offers Transflo Express.

• The U.S. Department of Labor ordered Iowa-based Absolute Waste Removal to pay a driver $123,203 in back wages and penalties and to reinstate him after the department’s Occupational Safety and Health Administration found the carrier violated federal retaliation laws. The driver refused to drive early last year, citing what he called unsafe procedures implemented by Absolute Waste Removal. The company fired him in February 2013.

• The Ohio Supreme Court affirmed the death sentence of trucker Calvin Neyland Jr., 50, of Toledo, who was convicted for the 2007 murders of his supervisor at Pennsylvania-based Liberty Transportation and the company’s safety director during a meeting where he was to be fired following a series of violations.

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journal news

Senate committee clears bill amendment to temporarily undo parts of HOS rule

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bill making its way through the U.S. Senate now includes an amendment to suspend some provisions of the hoursof-service rule changes implemented in July 2013 and require a study by the U.S. Department of Transportation.

If the bill becomes law, drivers no longer will be limited to taking one 34-hour restart in a 168-hour period, and the restart no longer will have to include two consecutive 1-5 a.m. periods.

The Federal Motor Carrier Safety Administration also would be required to conduct a field study in conjunction with DOT’s Inspector General to determine if the provisions are justified and report its findings to Congress.

The amendment was offered by U.S. Sen. Susan Collins (R-Maine) during the Senate Appropriations Committee’s markup of the Transportation, Housing and Urban Development (THUD) bill June 5 and was approved by the committee by a 21-9 vote.

It would affect only the two aforementioned restart provisions and leave intact the rest of the HOS rule, including the required 30-minute break and 14-hour on-duty time, 11-hour drive time and 10-hour off-duty time.

The THUD bill is a $54.4 billion discretionary spending budget to fund DOT, among other departments. The following week, the full House took up its version of the THUD bill, which did not include the amendment. It still can be added, however.

The committee’s vote on the amendment came after about 30 minutes of comment and debate on the proposal.

Collins said she proposed and supported the amendment because the current rule has caused the “unintended consequences” of placing more trucks on roadways during peak congestion and commuter hours, which she said actually makes the HOS changes cause more 10

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| july 2014

accidents, not less.

Other senators supported the bill based on that premise, while some supported it for other reasons – such as objections to the government’s rule in regulating sleep patterns, which was voiced by Sen. Mary Landrieu (R-La.) – and the determination that FMCSA did not produce adequate research or study before implementing the rule.

There was some opposition to the bill, however, including Sen. Dianne Feinstein (D-Calif.), who said trucks in the Long Beach and Los Angeles areas “just zoom out all over the highway” and that the restart provisions offer a mechanism to ensure they’re rested. The 2013 rule changes have been effective, she said.

Others said the HOS rule had been through the courts, where it was upheld, and it had been studied enough by FMCSA. The Owner-Operator Independent Drivers Association applauded the committee for the amendment. “We thank Senator Collins and the supportive members of the committee for their work on this important amendment,” said Todd Spencer, OOIDA executive vice president. “Truckers have long pointed out the negative impacts of the 2013 changes on their ability to get rest, stay out of busy city traffic, spend time at home and make a family-supporting income.”

The American Trucking Associations likewise voiced its appreciation for the committee’s willingness to address “the unjustified changes” to the restart provision. “Since these rules were proposed in 2010, ATA has maintained that they were unsupported by science, and since they were implemented in 2013, the industry and economy have experienced substantial negative effects as a result,” said Bill Graves, ATA president and chief executive officer. “Today, thanks

FMCSA would be required to conduct a field study to determine if the hours provisions are justified and report its findings to Congress.

to Senator Collins’ leadership, we are a step closer to reversing these damaging, unjustified regulations.”

Teamsters President James P. Hoffa penned a letter June 9 to the U.S. House asking it to not add any amendments to its DOT funding bill that would “delay, revise or replace” the 34-hour restart rule.

Hoffa pointed to the high-profile June 7 truck crash involving actor Tracy Morgan as evidence to keep the current rule, saying the crash “could have been prevented had Walmart’s driver been properly rested.”

Hoffa also said the 2013 rule protects drivers from carriers that want to “push their drivers to squeeze every possible hour out of them that they can.”

Graves, addressing the Morgan crash, said the 2013 restart rule actually decreases safety, as it “[alters] driver sleep patterns and [puts] more trucks on the road during more risky daylight hours.”

He also addressed public reports that the Walmart driver hadn’t slept in more than 24 hours – but had taken the proper amount of time off duty – by saying there’s no way the industry or government action can “dictate what drivers do during that off-duty period.”

ATA “strongly believes that drivers must take advantage of their off-duty periods for rest and that drivers should not drive if they are fatigued,” Graves said.

Walmart driver Kevin Roper pleaded not guilty to charges of vehicular homicide and assault by auto filed against him in the Morgan crash.

– James Jaillet

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Text INFO to 205-289-3554 or visit www.ccjdigital.com/info

journal news

FMCSA updating data system to account for successful challenges to roadside citations

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tarting Aug. 23, the Federal Motor Carrier Safety Administration will implement changes to its data collection system to account for any legal processes that come after roadside inspection citations are issued, which could result in removal of those violations from a driver’s or carrier’s record.

In a Final Rule notice, FMCSA says the changes will allow its Motor Carrier Management Information System to remove violations if they were dismissed or resulted in a “not guilty” ruling.

Data from the MCMIS feeds the agency’s Safety Measurement System – the heart of its Compliance Safety Accountability program – and its driver Pre-employment Screening Program reports. Both programs could be affected by the change, FMCSA says. The changes, however, will not be applied to citations issued before Aug. 23.

Presently, FMCSA has no way of accounting for dismissals or “not guilty” verdicts in its system, which has drawn the ire of the trucking industry since the data began being used to rank carriers in the CSA program. CSA scores and PSP reports will be altered accordingly under the new rules if a carrier’s or driver’s charge is dismissed or they’re acquitted.

FMCSA will retain the violation and indicate it resulted in a different or lesser charge and change the severity weight in the carrier’s CSA SMS score if adjudication results in conviction of a different charge. If the carrier is convicted of the original charge, both the CSA and PSP records will retain the violation.

Challenges will continue to be made through the agency’s DataQs system with Roadside Data Review requests. Upon successful submission of an RDR and a review by FMCSA, the agency will direct the state in which the violation occurred to change the result in its system.

FMCSA first released the proposed

changes in December and sought public comment for 30 days. The agency received 111 comments on the rule, with 70 supporting the proposed changes.

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| july 2014 13 2/13/14 12:45 PM

journal news

OOIDA demands Ferro’s resignation

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he Owner-Operator Independent Drivers Association last month sent U.S. Transportation Secretary Anthony Foxx a letter asking for Federal Motor Carrier Safety Administration Administrator Anne Ferro to resign and

for Foxx to begin searching for a new administrator immediately.

In the three-page letter signed by OOIDA President Jim Johnston, the association says Ferro has a “clear bias against truckers and the trucking indus-

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try” and that the agency “can no longer perform its regulatory and enforcement duties impartially.” The group also accuses Ferro of violating federal laws that prohibit federally appropriated money to be used for lobbying purposes.

The letter – and the claims about lobbying law violations – stem from a post published by Ferro June 3 in DOT’s Fast Lane blog in which she asked Congress not to roll back the hours-of-service rule changes implemented July 2013.

In the blog post, Ferro writes about three deadly crashes that she says point to the need for the more prohibitive HOS rule. She also backs up her agency’s rule change by saying it was research-driven and by tossing out the figures the agency’s used from the beginning to justify the rule: 19 saved lives annually and 1,400 fewer crashes each year.

OOIDA says Ferro’s blog post illustrates an “extreme bias against the trucking industry and truckers in general.”

“The tone of this blog posting leads professional truck drivers to conclude that the Administrator feels they are actively seeking to cause accidents (or at the very least lack a commitment to safety) by opposing specific changes to the hours-of-service regulations.

Such comments coming from the Administrator of the Federal Motor Carrier Safety Administration, which are obviously intended to influence legislative efforts, are totally inappropriate and should not be tolerated.”

OOIDA writes that its board of directors voted unanimously to call for Ferro’s resignation. The association says in addition to what it refers to as “demagoguery against truck drivers,” FMCSA has continued to act quickly on larger

Text INFO to 205-289-3554 or visit www.ccjdigital.com/info

| july 2014

6/19/14 8:57 AM

journal news regulations like hours of service – contrary to the impact they have on the industry and on drivers and their questionable effect on safety – and slowly on actions that the industry supports and could have a greater impact on safety, like OOIDA’s push for entry-level driver training.

– James Jaillet

House amendment would stop carrier insurance minimum hike

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Text InFO to 205-289-3554 or visit www.ccjdigital.com/info

he U.S. House voted June 9 to add an amendment to its version of the U.S. Department of Transportation’s annual funding bill to stop the Federal Motor Carrier Safety Administration from increasing the required minimum amount of liability insurance for carriers.

FMCSA earlier this year announced its intentions to seek a rulemaking to increase the current $750,000 minimum, saying it has not kept up with inflation since being set at that level in 1985.

DOT said in its most recent significant rulemakings report that FMCSA could publish a proposed rule as early as November to raise that amount.

FMCSA said in a report issued earlier this year that if the $750,000 minimum liability insurance amount had kept up with inflation, it would be $1.62 million.

Both the Owner-Operator Independent Drivers Association and the American Trucking Associations reject the agency’s claims that the current minimum needs changing, citing studies that show just 1 percent of all crashes exceed $750,000 in claims.

If the House bill becomes law with the amendment from Rep. Steve Daines (R-Mont.) included, it would “prohibit the use of funds to develop, issue or implement regulations that increase levels of minimum financial responsibility for transporting passengers or property as in effect Jan. 1, 2014.”

– James Jaillet Continued on page 56 commercial carrier journal

| july 2014 15

JOURNAL FUEL SAVVY

James Jaillet

Dan Arcy, Shell’s OEM technical manager, explains the results of the company’s low-viscosity field trial testing.

Shell maps out PC-11 engine oil timeline Go-to-market date for the thinner lubricant set for April 2016

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t a late May press event in Greensboro, N.C., Shell outlined a timeline update on the development of PC-11 lower-viscosity engine oil. Dan Arcy, Shell’s OEM technical manager, said the development team is shooting for April 2016 as the go-to-market date for the thinner lubricant.

The new development team is made of members from engine makers, truck makers, oil marketers, additive companies and others in the industry, Arcy said, and a few steps remain –including approval of the tests that will be used to validate PC-11 – before American Petroleum Institute licensing begins.

PC-11 originally was requested by engine makers in 2011 in response to the industry’s mandate to lower fuel consumption and reduce greenhouse gas emissions. Modern engines also are running hotter than older engines by as 16

COMMERCIAL CARRIER JOURNAL

| JULY 2014

much as 10 degrees Celsius, Arcy said, and a new oil category was needed to reflect the changes.

The key PC-11 goals are to improve oxidation stability to handle the hotter engine temperatures, reduce aeration, provide scuffing and adhesive wear protection and improve shear stability.

There are two subcategories to PC-11: PC-11A and PC-11B. PC-11A will have the aforementioned improvements to the current CJ-4 engine oil, but it will retain the viscosity level of CJ-4. It will be backwards-compatible with all model-year engines.

PC-11B also will have the requested improvements over CJ-4, but it also will increase fuel economy and in turn lower greenhouse gas emissions, Arcy said.

It’s uncertain yet whether the oil will be backwards-compatible and may be recommended only by manufacturers for model-year 2017 and newer engines.

Arcy said Shell will back up whatever recommendations manufacturers make about the backwards compatibility regarding PC-11B.

Matt Urbanak, lead formulator for Shell Rotella heavy-duty engine oils, said tests show no discernible difference in engine wear between PC-11 and higher-viscosity oils currently on the market. There also was no difference in iron wear, chromium, lead, copper or aluminum in oil analysis, Urbanak said.

“Testing does indicate that [low-viscosity] oils do maintain engine durability,” he said.

Urbanak said Shell has 16 million miles of field testing so far on lowviscosity oils, and still roughly two years remain before the oils will go to market.

– James Jaillet

Testing does indicate that [low-viscosity] oils do maintain engine durability.

– Matt Urbanak, lead formulator, Shell Rotella heavy-duty engine oils

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*Based on industry standard rolling resistance testing of comparable tires and retreads. Actual results may vary, and may be impacted by many factors, to include road conditions, weather and environment, driver performance, etc.

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product reviews, oeM & supplier news, and equipMent ManageMent trends

by Jack roberts

Under the hood: kenworth has embraced the new integrated drivetrain trend.

At A glAnce: the truck does not look markedly different from a conventional t680.

Power to sPAre: throttle response

Kenworth’s T680 Advantage mates a Paccar MX13 diesel engine with an Eaton Advantage automated manual transmission.

Gaining an Advantage

Kenworth’s updated T680 boasts integrated drivetrain

I

was instantaneous with aggressive, timely shifts.

panels VanVoorhis mentioned, as well as the new wheel covers.

Throttle response was instantaneous with the MX13-Eaton Advantage integrated drivetrain, with aggressive and timely shifts. I wasn’t fully loaded – a tad under 30,000 pounds – so acceleration also was impressive. The truck was governed to a fuel economy sweet spot of 68 mph, but once at that speed, dialing in the cruise control was a breeze, and the truck effortlessly ticked along with the tachometer showing 1,100 rpm.

It was a windy day, but at highway speeds, the ride was smooth. Minimal wind buffeting is an obvious bonus from the enhanced aerodynamics package, and combined with excellent views from the cab, tight handling and comfortable ergonomics, it made for an easy truck to drive – and a safe one at that.

The T680 Advantage isn’t a radical departure from anything Kenworth wasn’t doing already, but it builds upon a solid aerodynamic platform and takes advantage of new engine technology to deliver better fuel economy in a way that also makes life easier and safer for drivers.

n another sign that highly integrated aerodynamic trucks are becoming the default fleet spec, Kenworth recently sent its T680 highway tractor back to the drawing board. The resulting new model, the T680 Advantage, builds on the truck’s already slippery profile while adding a host of internal and external enhancements to further increase efficiency and fuel economy in long-haul highway applications.

Brett VanVoorhis, Kenworth’s on-highway marketing manager, told me about the many tweaks found on the T680 Advantage during a test drive I took in the truck last month out of Birmingham, Ala. “The T680 was already an aerodynamic leader,” VanVoorhis said. “Now we’ve added a number of features that will build on that solid platform.” Most notable, he said, are the front air dam and larger side extenders, as well as a redesigned rear fairing and standard wheel covers. “These components reduce the trailer gap, move through the air more efficiently and combine to add just over a 1 percent improvement in fuel economy.”

Under the hood, Kenworth has embraced the new highly-optimized integrated drivetrain trend, mating a Paccar MX13 diesel engine with an Eaton Advantage automated manual transmission to boost fuel economy via precise engine calibrations. “The shift points are extremely well-timed and factor in various load demands and engine output, so it’s also nice to drive,” VanVoorhis says.

I took our test T680 Advantage on Interstate 65 North out of Birmingham to see for myself how this new aerodynamic model handles on the open road. My route was one I travel often and offers a good mix of terrain, including fairly steep grades.

At a glance, the truck does not look markedly different from a conventional T680 since Kenworth wisely opted to retain the original model’s excellent cab JACK ROBERTS is Executive Editor of Commercial Carrier Journal. and sleeper amenities. A closer look reveals the more-aggressive aerodynamic E-mail jroberts@ccjmagazine.com or call (205) 248-1358. commercial carrier journal

|

july 2014

19

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INBrIeF Mack Trucks recalled 44,047 trucks spanning model years 2007-2014 for potentially defective hazard warning lights.

Mack began notifying owners of trucks equipped with the Hamsar Electronic Flasher by mid-June. Dealers will replace the flasher for free.

•

Navistar recalled certain International ProStar, WorkStar, DuraStar and TranStar trucks from model years 2013-2015 for potential problems with the air disc brake caliper that could have loose or missing bolts, possibly leading to pulling while braking or increased stopping distance. Navistar was to begin notifying owners at the end of May. Dealers will check the torque of all caliper bolts and replace them if needed for free.

•

Peterbilt Motors Co. announced a new powertrain pairing for Models 579, 567, 384 and 365 that run on either compressed or liquefied natural gas: the Cummins Westport ISX12 G engine and Eaton UltraShift Plus automated transmission.

•

Kenworth Truck Co. announced a lightweight configuration for its T680 52-inch mid-roof sleeper that features the 12.9-liter Paccar MX-13 engine, Eaton Fuller’s Advantage series transmission, Kenworth’s AG380 suspension, an MX optimized hood (119-inch BBC), a 6-by-2 drive axle, rear wide-base single tires, aluminum rear wheels, air disc brakes and an aluminum fifth wheel.

•

American Power Group Corp. announced that its network of WheelTime dealers had a record order month in May for its V5000 Dual Fuel Turbocharged Natural Gas System.

•

Freightliner Trucks’ M2 106 diesel-electric hybrid truck was approved for New York’s Truck-Voucher Incentive Program.

•

Third-party logistics provider Kane Is Able Inc. added seven compressed natural gas-powered Volvo VNL daycab tractors equipped with Cummins-Westport ISX12 G engines to its fleet.

•

Mack Trucks optimized its MackTrucks.com website for mobile devices and debuted an application-focused layout to help customers explore models designed for specific jobsites and tasks.

•

Mack Trucks donated a new Granite Axle Forward model to the Environmental Research & Education Foundation’s live auction at WasteExpo 2014.

•

CT Power of Commerce City, Colo., was named Carrier Transicold’s 2013 North America Dealer of the Year, and Frio Servicio de Monterrey S.A. de C.V. of Monterrey, Nuevo León, Mexico, was named the company’s 2013 Latin America Dealer of the Year.

•

Wabash National Corp. received an Above and Beyond Award from the Indiana Employer Support of the Guard and Reserve in recognition of extraordinary support of its associates who serve in the two branches.

Want more equipment neWs? Scan the barcode to sign up for the CCJ equipment Weekly e-mail newsletter or go to www.goo.gl/Ph9JK. 20

Untitled-17 1

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| july 2014 6/6/14 1:52 PM

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Detroit unveils new fully integrated powertrain

D

etroit Diesel Corp. unveiled its Integrated Detroit Powertrain featuring its DD15 engine, DT12 transmission and Detroit axles. The package will be available January 2015 for the Freightliner Cascadia Evolution and later next year for the new Western Star 5700.

For the IDP, the DD15 offers a new downspeed rating of 400 hp and 1,750 lb.-ft. of torque, which the company says enables the engine to turn at lower rpms regardless of road speed, reducing fuel consumption and friction while delivering the necessary torque at lower rpms.

“Downspeeding improves fuel economy by shifting usable power and torque to a lower rpm range,” says Brad Williamson, manager of engine and component marketing for Daimler Trucks North America. “You’re going to get usable torque and power at about 970 rpm. It’s not taking away the power (drivers) are used to having – it’s just shifting it to a different spot in the calibration.”

The IDP DD15 engine also features a six-blade fan to cut parasitic loss.

The DT12 transmission features the company’s Intelligent Powertrain Management, which uses preloaded terrain maps and GPS to know the route ahead and automatically adjust transmission and engine functions.

Features include eCoast, a technology specific to the DT12 that allows the engine to operate at idle of 500 rpm when road and driver inputs don’t require engine power to move the truck down the road; and creep mode, which improves low-speed maneuverability.

“Whether approaching a grade, cresting a hill or traveling along rolling hills, Intelligent Powertrain Management makes sure the truck is carrying the most efficient momentum into the road ahead,” Williamson says. “The DT12 transmission is the critical

Detroit’s Integrated Detroit Powertrain features its DD15 engine, DT12 transmission and Detroit axles.

link between the engine and the axles, and with the addition of the IPM, we are providing a seamless solution that has a direct impact on fuel savings.”

With the new offering, Detroit now has a 6-by-2 configuration with a 2.28 ratio specifically designed to work with the downspeed engine rating, making it the fastest ratio available in Freightliner and Western Star trucks. The 6-by-2 configuration incorporates a nondriven tag axle on the tandem, reducing total weight by almost 400 pounds, while a new 2.41 ratio in its 6-by-4 axle configuration also is available for applications requiring more traction.

The IDP also includes steer axles that use low-friction needle bearings for added maneuverability and minimal maintenance.

David Hames, DTNA’s general manager of marketing and strategy, says the IDP’s launch was the next step in the company’s quest for better fuel economy. “We have an internal target of achieving 5 percent fuel economy (savings) every two years,” Hames says. “IDP is another 5 to 7 percent, depending on baseline, over the Cascadia Evolution.”

– Jason Cannon

Meritor announces ‘intelligent’ truck axle system project

M

eritor announced it is working on an electronic control system designed to enhance gear efficiencies inside its truck axles. At a press briefing at Meritor’s Cameri Axle Plant outside of Milan, Italy, Chief Axle Engineer Fabio Santinato told North American truck journalists about the 17X LogicDrive system, which he says currently offers significant enhancements in fuel economy for trucks in long-haul applications.

At its core, the 17X LogicDrive concept is simple. Oil in an axle has two basic functions: to lubricate and cool the internal gearing system. But a phenomenon called “oil splash” inside the axle forces an engine to work harder and burn more fuel to turn the gears, causing a parasitic horsepower loss.

Santinato says Meritor engineers currently are working with 22

commercial carrier journal

| july 2014

several 17X LogicDrive prototypes that will use electronic control modules to add or reduce oil in the axle to meet driving conditions and enhance fuel economy.

The ECM modules continuously monitor operating variables such as temperature, torque, vehicle speed and braking demands.

When the truck is at highway cruise speeds and less oil is needed to lubricate and cool the internal gears, the system pulls oil out of the housing and stores it in a holding tank. When more oil is needed – such as when climbing a grade or in heavy braking situations – the system automatically adds oil to the housing.

Santinato says the system, which is still in development, already is demonstrating a fuel economy improvement of 0.5 percent compared to conventional truck axle systems.

– Jack Roberts

Fully synthetic Mobil Delvac 1™ LE 5W-30 heavy-duty diesel engine oil.

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*A Fuel Economy evaluation was conducted using two 2012 Freightliner Cascadia trucks in an urban driving environment. Testing was conducted on track at the Pecos Research & Testing Center, an independent 3rd Party test facility. Mobil Delvac 1™ LE 5W-30 was used in the engine and Mobil Delvac™ Synthetic Gear Oil 75W-90 was used in the rear axle.

These were compared to a mineral 15W-40 in the engine and a mineral 85W-140 in the rear axle. Savings estimates are based on a fuel economy improvement potential of 1.5%, an average cost of $3.99 per gallon of diesel, with a baseline fuel economy of 5.9 mpg and 125,000 annual miles driven. Actual savings and potential fuel economy improvements are dependent on miles driven, diesel costs, baseline fuel economy, vehicle/equipment type, outside temperature, driving conditions and your current fluid viscosities.

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Copyright © 2014 Exxon Mobil Corporation. All rights reserved. All trademarks used herein are trademarks or registered trademarks of Exxon Mobil Corporation or one of its subsidiaries unless otherwise noted.

Extra miles in every bottle

Hino, Telogis team for medium-duty telematics initiative

H

ino Trucks and Telogis says Glenn Ellis, vice president of announced a partnership marketing, dealer operations and to release a next-generation platproduct planning for Hino Trucks. form for Hino Insight, the truck Hino Insight 2.0’s dashboard is maker’s Web-based location and designed for fleet managers to gain a telematics solution tailored for the daily snapshot of their fleet’s critical medium-duty commercial truck diagnostics status and performance market designed to improve vehicle against established targets. The uptime. Launching this summer, dashboard is designed to allow fleet Hino Insight 2.0 powered by managers to simultaneously access Telogis will be standard on Hino’s key metrics as well as real-time vehiHino Insight 2.0 powered by Telogis will be standard on 195h and 195h-DC hybrid models cle- and driver-related information. the 195h and 195h-DC hybrid models, which will come with a one-year subscription to the platform. and an option on its full lineup.

“Telogis partnered with Hino to The product and service suite will provide new and existing customers provide Hino customers with access to Telogis’ location intelliwith exclusive connectivity and services that can only be achieved gence platform that includes route optimization, real-time work through this kind of integrated partnership with the manufacturorder management, truck-specific navigation, telematics and er,” says Susan Heystee, executive vice president of worldwide sales mobile integration services. New hybrid model trucks will come at Telogis. “With Hino Insight 2.0 powered by Telogis, customers with a one-year subscription to the platform. now have one of the easiest paths to advanced solutions that help “This next-generation technology brings new functionality, a them maximize uptime and enhance the safety, productivity and refined user interface and a robust platform to support the needs environmental impact of their fleets.” of our largest fleet customer or an individual owner-operator,” – Jack Roberts

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24

commercial carrier journal

Untitled-29 1

| july 2014

We currently are investigating claims in all 50 states involving 2010-2013 International trucks with MaxxForce engines.

Text INFO to 205-289-3554 or visit www.ccjdigital.com/info 5/14/14 1:39 PM

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in focus: LED hEaDLights With LED headlights, drivers get excellent contrast at close range with a wide field of view to enable them to see terrain in front of them and objects off to the side.

LIghtIng the way

LED headlights becoming preferred spec for OEMs, fleets

I

t’s hard to miss the changes in truck lighting taking place today.

Sealed-beam halogen headlamps increasingly are being replaced by LED headlights.

Several OEMs, including Daimler, International and Volvo, are spec’ing LEDs on select new truck models, and it appears this trend only will grow as the benefits of LEDs become known more widely.

“These are not light bulbs as we are used to thinking of them,” says Russell Ong, business manager for Grote. “These are really sophisticated light engines that are, in fact, a totally new way of providing vehicle illumination.”

Among the many benefits LED headlamps offer for fleets, Ong says, is the ability to customize light patterns and manage power on a vehicle in a way that never has been possible.

While LED headlamps cost more, they can last up to 50,000 hours as long as their circuitry holds out, vendors say.

26

commercial carrier journal

| july 2014

By Jack RoBeRts

“If you’re running in oilfields or dump trucks, you need a totally different light pattern than a long-haul truck,” he says.

“Your drivers need excellent contrast at close range with a wide field of view to enable them to see terrain in front of them and objects off to the side. We can do that with LED headlamps.”

Fleets leading the way For that reason – and others – the LED lighting evolution is being led by fleets.

Brad Van Riper, senior vice president and chief technology officer for Truck-Lite, says fleets have nearly 25 years of experience with LEDs in signal and marker light positions on trucks and have come to appreciate the durability of those systems.

“We have data that shows that fleets using conventional bulbs for signal and marker positions were logging lighting problems as one of their top three problems in terms of frequency of repair,” Van Riper says. After switching to LED systems, lighting dropped out of the top 25 on that list. “Now they can get that same degree of reliability for their headlamps,” he says.

Another noticeable benefit is luminance maintenance, Van Riper says.

“Sealed-beam halogen bulbs suffer from that we call ‘luminance depreciation,’ ” he says. Conventional headlamps gradually decline in brightness from 20 to 25 percent over their first 100 hours of operation. “You don’t really see it over time,” he says.

In contrast, fleets will see only about

a 7 percent decrease in brightness from LED lamps over 20,000 hours of use. “The performance difference is striking,” Van Riper says.

A related feature that fleets find appealing is the sophisticated driver board that controls the amount of input voltage the lamp receives to optimize light output.

Halogen lamps take whatever input current is available.

“Often the amount of available voltage can vary greatly,” Van Riper says. “If the truck’s batteries are weak, the system will automatically make recharging them a priority.”

Because conventional headlamps have no way of controlling the voltage they receive, a mere 10 percent drop in voltage to the lamp can result in a 30 percent decrease in lighting efficiency, he says.

Get what you pay for LED headlamps currently cost more than sealed beam units, but Ong says the exponential increase in unit life more than justifies the expense.

“There are no moving parts and no filament to break to cause a failure,” he says. “When a failure occurs, it’s almost always a circuitry issue. That’s why we’re seeing LED headlamps last as long as 50,000 hours as long as their circuitry holds out.”

Fleets using LED headlamps will see only about a 7 percent decrease in brightness over 20,000 hours of use, Truck-Lite says.

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Architectural & Decorative

ccj test drive: volvo vNX

Tough enough With I-Shift, Volvo’s heavy-haul VNX easily transitions from road to severe service

By JACK ROBERTS

W

hen Göran Nyberg was settling into his position as the new president of Volvo’s North American operations a few years ago, he noticed an opportunity: a heavy-haul on-highway tractor that also could handle occasional off-highway work.

Nyberg knew well Volvo’s large presence in Europe’s high-horsepower/heavy-duty markets, but there was nothing comparable for North American buyers. So Volvo’s North American engineering team threw themselves into their work and crafted the VNX. The result, said Jason Spence, Volvo’s marketing product manager for long-haul business segments, is a truck that takes the best from the company’s aerodynamic VN tractors and vocational VHD truck models. The VNX handles well on the highway but is tough enough to work on the most rugged jobsites.

28

commercial carrier journal | july 2014

For our test drive, Spence selected a fairly arduous route through the Smoky Mountains near Asheville, N.C. The VNX was pulling a flatbed loaded with concrete blocks, rated at 77,500 pounds – a tough assignment on the steep 6 and 7 percent grades as I-26 winds its way into Tennessee.

“It’s a great chance to show the pulling power this 550-horsepower D16 engine offers,” Spence said. “And it’s also a great way to show how well our I-Shift automated manual transmission works in tough terrain with heavy loads.”

I-Shift routinely is spec’d for severe service applications in Europe, he said.

“In North America at the moment, automated manuals are making the most inroads in the on-highway/long-haul markets. But the I-Shift is not limited to those types of jobs. It was designed from the get-go to be robust and durable.”

Pulling a nearly full load of blocks, this VNX showed strength and grace on the curves and grades of the Appalachians.

Spence pointed to I-Shift’s Power Launch feature as proof. Stopping the VNX on an unpaved grade covered with loose gravel, he had me shift to neutral, rev the D16 up to 1,300 rpm and then shift into drive. The transmission immediately delivered a smooth, metered burst of rear-wheel torque that easily powered the truck forward.

“This feature allows iShift to precisely deliver the power needed to get a big, heavily loaded truck like the VNX out of a deep hole or sandy soil,” Spence said.

Stylistically, VNX shares more than a passing resemblance to the company’s VNL family of tractors, though with a more robust look, bold chrome grille and wider stance. The truck stands tall on vocational floatation tires.

The daycab interior is appointed nicely with large windowpanes allowing plenty of daylight inside while providing panoramic 360-degree views that are helped by large rearview mirrors. And while Volvo’s D16 diesel is a quiet engine anyway, when you pair that with ample sound insulation, you get remarkably low cab noise levels.

Continued on page 31

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KEEP•ROLLING

“GOODYEAR DURASEAL* TIRES HAVE REDUCED DOWNTIME AND LED TO A 30% OPERATION SAVINGS.” – RICK GONZALEZ, FLEET MAINTENANCE MANAGER, GULICK TRUCKING INC.

When every minute counts, DuraSeal Technology® can help keep your long-haul fleet rolling.

According to Rick Gonzalez, before Gulick Trucking began using tires with DuraSeal Technology, it experienced up to 20 flats per month, costing $600 each. Gonzalez says, “Each flat meant two to three hours of downtime, and now we don’t have to stress about it.”

To learn how Goodyear’s industry-leading tires, services and profitability tools help to provide your fleet a total solution, stop by any Goodyear® Dealer, or visit goodyeartrucktires.com.

*Seals up to ¼" diameter punctures in the repairable area of the tread. Does not seal sidewall punctures. ©2013 The Goodyear Tire & Rubber Company. All rights reserved.

Text INFO to 205-289-3554 or visit www.ccjdigital.com/info

Continued from page 28 Pulling oversize/overweight loads like the VNX is designed to do usually means lots of small-step shifting to get the truck going. But I was happy to let the I-Shift take over and do the hard work while I concentrated on traffic and steering.

Deep wheel cuts helped me easily maneuver the long flatbed through the narrow mountain roads that started our drive. Despite the big flotation tires under me, I found the VNX to be pleasantly docile on the twisting, turning hills. Later at highway cruise speeds, the truck held its place in the lane with little or no steering input. Spence said this was a result of a twin-steering gear design Volvo engineers gave the VNX to ensure excellent handling in varied conditions.

On the interstate, the integrated engine brake easily held our speed in check on long downhill runs with

minimal braking. The cruise control works in conjunction with the I-Shift to maintain desired highway speeds, so even in mountainous terrain, you easily can adjust your speed settings to stay with a preset limit. The transmission will downshift accordingly and apply the engine brake on downhill grades

to keep you within a given range. It’s a slick system that reduces driver fatigue, improves brake life and enhances safety.

The VNX features head-turning conventional styling with a killer combination of brute power and refined technology. They work together well to get the toughest trucking jobs done.

The I-Shift automated manual transmission has been so popular with new-truck buyers – 71 percent are choosing it – that it’s now the tractor’s standard offering.

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commercial carrier journal | july 2014

31

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D E D I C AT E D TO T H E P R O F E S S I O N A L

Small guys get looked at because a single incident shows up as a bigger percentage” with a more dramatic effect on rankings, says a survey respondent, “not because we are unsafe.

Drivers’ top 10 problems with CSA Scoring is unreliable for very small fleets

37%

Driver/law enforcement relationship deteriorating

34%

DataQs challenge process still does not take into account whether a citation was adjudicated in court

34%

Crash fault/accountability not considered in Crash Indicator BASIC scoring

29%

State-to-state disparities in inspections/violations

28%

Scores don’t correlate to true crash risk in some BASIC categories

22%

Carriers don’t get credit for “pre-screen” or unfinished, otherwise clean, inspections

19%

Brokers/shippers use scores as a reason to refuse business

15%

Large majority of the smallest carriers, being unscored, often viewed negatively Safety-score competition among carriers reduces sharing of best safety practices

9% 4%

Todd Dills

SOURCE: Overdrive’s 2014 CSA Survey in March yielded results from 718 respondents, among them company drivers, leased owner-operators and independents, both operators and small fleets, running under their own authority.

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COMMERCIAL CARRIER JOURNAL

| JULY 2014

CSA’s diSTorTed rAnkingS

Small fleets and independents are most concerned about reliability of scores, but the system’s many flaws haven’t halted third-party use of the rankings in business decisions. Don’t expect fixes anytime soon.

By TODD DILLS

CSA scores: To be or not to be public

It wasn’t so long ago that suppression of CSA scores was an active debate.

In February 2013, a majority of the Motor Carrier Safety Advisory Committee’s CSA Subcommittee came close to

Should carriers’ CSA SMS percentile rankings (scores) be removed from public view?

Source: OverdriveOnline.com poll

T

hree and a half years after Compliance Safety Accountability began its scrambling of how trucking safety is regulated and scored, carriers and owner-operators continue to suffer from its fallout, while bureaucrats struggle to repair the complex program.

Among carriers receiving a ranking in any of the CSA BASICs (Behavioral Analysis and Safety Improvement Categories), none feel the program’s inadequacies more than the smallest independents. As one respondent noted in a recent survey on CSA by CCJ’s sister magazine Overdrive, the “small guys get looked at because a single incident shows up as a bigger percentage” with a more dramatic effect on rankings, and “not because we are unsafe.”

Unreliable small-fleet scoring was ranked the number one CSA problem in the survey. The Federal Motor Carrier Safety Administration acknowledges CSA problems and strives for improvements. At the same time, the agency rigorously defends the system as is, with confidence in the CSA Safety

Measurement System’s numerical evaluation of carriers.

“It is a good tool, and it is one of the factors that should be looked at” by all industry participants to measure carrier safety, says Bill Quade, FMCSA associate administrator for enforcement. But a growing chorus of fleets, drivers, owner-operators and others call for scores to be removed from public view until the agency gets the kinks worked out.

In Overdrive’s poll, seven in 10 called for removal of the scores, and nearly half of that group also wants all inspection and violation data to be removed. Such sentiment reflects the reality that shippers and brokers treat the scores as gospel truth, refusing to do business with fleets that, in some cases, are just as safe as they were prior to CSA’s activation.

Yes 70%

I don’t know 3%

No 27%

And also remove all inspection/ violation data from public view 32% And also remove only inspection/ violation data that has no proven relationship to crash risk 28% But keep all inspection/violation data publicly accessible 10% commercial carrier journal

| july 2014 45

C ov e r s t o ry: C s A ’ s D I s t o r t e D r A N K I N G s

Todd Dills

Unreliable small-fleet scoring was ranked the number one CSA problem in the survey.

officially urging the agency to withhold percentile rankings in the BASICs from public view in the CSA SMS. Removing scores from public view, however, was not an option on the table when the CSA subcommittee met this past April.

Removing the scores might not even be feasible as long as the program exists, said subcommittee member Todd Spencer, executive vice president of the Owner-Operator Independent Drivers Association. That’s because there’s a “cat’s-out-of-the-bag” effect in third-party reliance on the scores. If the scores were available only to law enforcement and carriers themselves, Spencer said, some shippers then likely would require disclosure as part of carrier contracts.

Another potential consequence would be a piling on of further workload for an already taxed federal agency with a flood of Freedom of Information Act requests for carrier SMS BASIC scores, said MCSAC member John Lannen of the Truck Safety Coalition of public safety advocates.

Tom Sanderson, chief executive officer of broker/3PL Transplace, told the CSA Subcommittee that “several large shippers have told us that even one BASIC over the intervention threshold knocks a carrier out of their service.”

Cream of the Crop Transportation’s Hours of Service BASIC score went beyond the intervention threshold a couple of years ago, and owner J. Webb Kline says the small fleet lost as much as $1.5 million in annual sales. It was “a glaring example of just what an economic disaster this program is for companies like ours that fall through the cracks of the system,” Kline says.

After Cream of the Crop went more than a year without an hours violation, his small fleet no longer showed any percentile ranking or score whatsoever in that BASIC, so the 46

commercial carrier journal

| july 2014

FMCSA warning triangle disappeared.

“Many of our old customers told me they checked every month to see if they could use us again, and they called as soon as we lost the triangle,” Kline says. “Our sales shot up from an average of $4,000 a week per truck to well over $5,000, and often exceeding $6,000 per week per truck.”

It’s not just small carriers that take issue with the public nature of SMS scores. Irwin Shires of all-owner-operator Panther Expedited Services says he’s “fought very hard” to expose fundamental flaws in CSA’s percentile ranking approach. Among the worst, he says, is the scores’ public nature.

In Panther’s small Safety Event Group of comparison (with just 73 of the largest straight-truck carriers), the percentile-ranking basis of scores in the Unsafe Driving BASIC “dooms approximately 25 carriers to never being able to improve their score to a point to where their golden triangle goes away,” Shires says. That’s because in all of the BASIC categories, the system grades on a curve, so that the weakest carriers, no matter how safe they are, fall prey to those who score better.

“It’s like a scarlet letter that brokers and shippers are using in determining whether to put their freight on a carrier’s truck,” Shires says.

SMS, safety rating system disconnect compounds problems CSA was intended as an improvement to FMCSA’s SafeStat rating system that used primarily out-of-service violations uncovered during onsite company investigations in determining a carrier’s rating. Given the agency’s small staff relative to the size of the motor carrier population, the system was limited in the number of carriers it could rate, as well as its ability to update those ratings.

Today, SafeStat remains the official rating element of FMCSA’s safety program, using ratings of Satisfactory, Conditional and Unsatisfactory. The CSA SMS runs alongside it, giving more of a real-time window into inspections, violations and crashes.

However, the difference in results produced by each system

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C ov e r s t o ry: C s A ’ s D I s t o r t e D r A N K I N G s

Severity weights, peer groups lead to other CSA problems

One initiative to improve Compliance Safety Accountability scoring was an April 30 draft report issued by the CSA Subcommittee of FMCSA’s Motor Carrier Safety Advisory Committee. Principle areas of recommendation are as follows:

Violation severity weights The current weightings given to individual violations in the Safety Measurement System are point values on a scale of 1-10, with 10 the most severe.

A presentation to the subcommittee by Dave Madsen of the Volpe National Transportation Systems Center, a chief architect of the SMS, illustrated what he called the “ugly little secret” of the system: It implies “a level of precision that doesn’t exist.” Only broad groupings of violations, in FMCSA’s view, correlate to crash risk statistically. Severity weighting, Madsen said, might be better if simplified to a basic low, medium and high system.

Tests of such a three-tiered system show that “the companies that move in and out” of alert status in the individual categories don’t change much, Madsen said. Nevertheless, the current system has the added problem of contributing to misperceptions about how the SMS works.

“Everyone’s focused on the individual violation and the points assigned to it. People think ‘points on licenses,’ and third parties take this stuff and create driver scores. … We don’t calculate driver scores,” at least not for public consumption, Madsen added. “In general, we’re trying to get patterns, and we’re losing the forest for the trees with what we have now.”

The CSA Subcommittee recommended such a modification of the weighting system, but its chief concern with the quality of the system went further. “FMCSA should explore further improving correlation of violation groupings within [Behavioral Analysis and Safety Improvement Categories] to crash risk,” its report reads. This would be in keeping with the ultimate goal of identifying unsafe carriers more effectively.

Subcommittee members also offered other things to test relative to violation severity weights – from an even simpler lowhigh system, with only two weights, to a more detailed examination of what enters the measurement system in the first place.

Carrier peer groupings in the BASICs One CSA problem is that a carrier can experience a dramatic swing in its percentile ranking when it moves from one peer group to another. It’s often a particularly hard reality at the small-carrier level.

Madsen gave the MCSAC subcommittee the example of Continued on page 50 48

commercial carrier journal

| july 2014

A tow-away crash 10%

No 84%

An injury crash 4% A fatality crash 2%

Yes: 16% | No: 84%

Source: Overdrive’s 2014 CSA Survey. Respondents were instructed to default to the most serious crash if more than one crash had occurred.

‘Ugly little secret’

is marked. In some quarters, eliminating that disconnect is seen as at least a partial solution to public confusion over what the scores mean. It’s a key component of why critics feel use of the scores in business decisions is so onerous.

The discrepancies are likely to remain until a Safety Fitness Determination rulemaking is proposed and completed, which will take years. Slated for proposal late this year, according to recent estimates, the SFD would use roadside inspection violation and crash data to rate carriers with enough data in the system; the grading would not be on a curve and would replace the current SafeStat rating model.

This would give entities such as brokers, shippers and insurance companies a more hard-and-fast indication of a carrier’s safety performance. Given SMS reliability problems at the small-carrier level, however, respondents to Overdrive’s CSA Survey showed only a 20 percent approval for the notion of using inspections and crashes toward establishing the SFD. In the brokerage realm, ambulance-chasing attorneys are promoting ways to get courts to rule a broker as negligent if the broker contracts with a carrier with a bad CSA score and the carrier later gets in an accident. Using the CSA SMS has thus become due diligence for some, but Tucker Company Worldwide General Counsel Darin Day

CRASH FAULT/ACCOUNTABILITY. FMCSA’s long-awaited crash weighting study could be delivered as early as this month, says Bill Quade, the agency’s associate administrator for enforcement. The study will address whether FMCSA will be able to account for crash fault in carrier CSA SMS results. CSA’s failure to do so has been criticized from the beginning because carrier Crash Indicator BASIC scores suffer whenever a truck is in a wreck, even when the truck driver had no fault. Though only 16 percent of respondents to Overdrive’s 2014 CSA Survey indicated involvement in a crash over the last two years, the issue of the lack of fault accounting is No. 4 on the list of CSA problems.

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C ov e r s t o ry: C s A ’ s D I s t o r t e D r A N K I N G s Continued from page 48 a carrier in the smallest peer group in the Hours of Service Compliance BASIC, which includes carriers getting five to 10 relevant inspections. Assume a carrier with 10 inspections and an absolute measure score of 2.39, putting it right on the 65th percentile in the BASIC, or at the level of FMCSA’s intervention alert threshold.

If that carrier then gets a clean inspection, what is typically advised as a way to improve BASIC scores, its absolute measure score falls to 2.25 in Madsen’s example. However, its percentile ranking in the Hours BASIC, its hours-performance face to the public, shoots up to 76 because it’s now being compared to the next-highest carrier peer group, those with 11-20 relevant inspections.

Madsen also presented on so-called “dynamic peer groups” – a concept FMCSA has considered to guard against such severe changes. The idea is that the lines separating peer groups are not set in stone, but are more fluid and narrowly defined.

Consider a carrier has five inspections, he said. “In a dynamic safety event group, [that carrier is] compared to those with five, and I look to those immediately to the left and right” with four to six inspections as well.

The CSA Subcommittee adopted the recommendation to implement such a peer grouping system. It also offered these suggestions for testing: • Changing the peer group being compared more broadly beyond current exposure measures (i.e., number of inspections/ power units/vehicle miles traveled). Other peer grouping considerations could include characteristics of operations, routes, number of violations, geography of where carriers received inspections, etc.

• Consider separating motorcoach operations from truck operations.

• Achieve more uniform crash reporting from states.

• Crash exposure should be taken into account in the Crash Indicator BASIC, and not just vehicle miles traveled. In more hightraffic areas, crash risk is higher.

PODCAST: CSA’S gOlDen TriAngle mOre like A ‘SCArleT leTTer’?

Search the title above on OverdriveOnline.com to hear remarks from Panther’s Irwin Shires and Transplace CEO Tom Sanderson during the public comment period following the April 29 meeting of the MCSAC’s CSA Subcommittee.

50

commercial carrier journal

| july 2014

Who’s safe?

I have no idea.

–Tucker Company Worldwide General Counsel Darin Day

hammers on the difficulties some brokers and shippers have with the system, particularly given the safety rating/ SMS disconnect.

Day came into the April 29-30 CSA Subcommittee meeting with a long list of carriers with four or more BASICs at alert status. Such carriers in many cases would fall clearly into FMCSA’s “High Risk Carrier” category, prompting an automatic intervention/review. All of the carriers in his list, however, were rated Satisfactory under SafeStat.

“Who’s safe?” he said. “I have no idea.”

FMCSA’s Quade explains that, minus the SFD rulemaking, the agency’s stuck with the SMS/rating disconnect. Putting expiration time limits on carrier safety ratings in the old system, which also has been discussed, likely would require more time-consuming rulemaking, he says. And the current rating system is so far entrenched in the trucking business that doing such would have unintended consequences of its own – expiring Satisfactory ratings would be missed by those carriers.

Legislation introduced in the House of Representatives in May and supported by the Transportation Intermediaries Association of freight middlemen aims to cut down on negligent-selection lawsuits by establishing a motorcarrier “hiring standard” that specifically excludes the CSA BASICs. The legislation stops well short of calling for removal of the SMS scores from public view, however.

Quade says he’d have more confidence in the CSA SMS than in the old rating system: “I would use a Conditional [rated] carrier with good performance data [in the CSA SMS] before I would use a Satisfactory carrier with bad performance data.”

Such public use of the data beyond law enforcement, and FMCSA’s encouragement of it, is the subject of long-ongoing litigation brought by the Alliance for Safe, Efficient and Competitive Truck Transportation, which represents motor carriers, shippers and brokers, among others.

FMCSA continues to be unmoved by CSA-use realities, given its investment in the program. Yet many in the industry would agree with transportation attorney Henry Seaton’s assessment of CSA: “The closest thing to it is over on the military side where you spend 10 years and however much money, and the plane doesn’t fly.”

Text INFO to 205-289-3554 or visit www.ccjdigital.com/info

Trailer Tracking sysTems are beaTing The odds By aaron huff

T

he odds always have been stacked against using technology to track and monitor trailers.

Exterior-mounted devices are exposed to a harsh environment. Power also is a formidable foe, as batteries are drained quickly by receiving and attenuating signals constantly from the Global Positioning System, as well as from transmitting messages to satellites or cellular towers and sensors surrounding the vehicle.

Fleets are unforgiving if dead batteries or anything else stands in their way of receiving timely, reliable and accurate information. On top of this, they expect to spend a fraction on the technology compared to their onboard computing

People do not want to be worried about hardware that is going to last five or six years. They want it to last the life of the trailer.

– Henry Popplewell, executive vice president and general manager, SkyBitz 52

commercial carrier journal

| july 2014

and communications systems.

Despite these and other obstacles, a number of companies have beaten the odds, but it has not been always easy. Looking back, the first generation of self-contained or “untethered” trailer tracking systems was severely limited with their communications to conserve power. Meanwhile, tethered systems powered by the tractor were fairly expensive and difficult to install.

Cellular and satellite communication platforms have expanded bandwidth and coverage. Hardware and power sources, including solar panels, have become more reliable, compact and rugged.

In general, these five developments – most of which have happened in the past two years – have put trailer tracking and monitoring systems on a fast track forward.

BaTTery power As demand grew for more frequent reporting of location, mileage and trailer activity, vendors Orbcomm’s GT 1100 features an intebegan offering rechargegrated solar panel designed to proable batteries that draw vide virtually unlimited reporting. power from the trailer’s ABS system through the 7-way connector (J560). When dis-

technology: Trailer Tracking

connected, batteries can provide uninterrupted coverage for several weeks. Systems that monitor temperature and other conditions draw power from the reefer unit.

Spireon’s FleetLocate tracking platform uses a redundant power supply. If the ABS line goes down, its hardware draws power from the trailer’s running lights.

Orbcomm’s GT 1100, a rugged tracking device with an integrated solar panel, can report trailer location and other status information 50 times through a dual-mode satellite and cellular modem for each hour of sunlight it absorbs.

ExpandEd information Technology providers today are focused on differentiating themselves by providing more frequent, robust and tailored reporting capabilities.

“The decision today is a lot more about the data that the customer wants to get from the system and how a particular company is able to deliver that,” says Henry Popplewell, executive vice president and general manager of SkyBitz.

During the past year, fleets interested in trailer tracking Spireon’s FleetLocate platform captures have lined up in two GPS locations every second and reports distinct groups, Popevery 10 minutes, and also provides a plewell says. The first management portal that incorporates is content with know- business intelligence tools. ing the location of trailers once or twice per day. The second, and fastest-growing, wants frequent reporting of location, mileage, speed and other information, along with sophisticated tools to analyze it quickly.

SkyBitz has a robust analytics tool in its customer Web portal, Insight, which allows users to view data trends for select time periods. The tool can be used to monitor trailer commitments with customers by location.

Spireon’s FleetLocate platform captures GPS locations every second and reports every 10 minutes. The cloud-based management portal also includes business intelligence tools such as the Par trend analysis report that allows users to compare and monitor trailer count, by location, to an established baseline each day and over time.

The Par report was developed in consultation with Coca-Cola Bottling Co. Consolidated, which wanted to decrease the expense of leasing trailers and ensure that trailer capacity matched daily production at each distribution center.

SoftwarE aS a SErvicE The upfront cost of trailer tracking hardware – between $400 and $600, with monthly wireless SkyBitz as a Service, available through a costs of about $15 – monthly subscription, is designed to provide used to be a barrier trailer and asset information management for companies. and historical trends analytics without SkyBitz and Spireon upfront capital investment. both have adopted Software-as-a-Service models designed to allow fleets to deploy technology without an upfront capital investment.

After SkyBitz was purchased last year by private equity investment group Telular, the companies mutually determined that data was key to the future of the trailer tracking business, Popplewell says. With SkyBitz’s new service platform, it provides the hardware and all ongoing maintenance for a monthly fee.

“We realized that when people go out and buy a new trailer, they plan to run it for 10 to 12 years,” Popplewell says.

“They do not want to be worried about hardware that is going to last five or six years. They want it to last the life of the trailer.” data intEgration Data collected from trailer tracking systems, when added to the stream from other sources, easily can get buried in a pile of to-do lists.

Big strides have been made to integrate the CarrierWeb’s ReeferMate reefer tracking system captures a broad range of data data into one portal every 60 seconds when under power. for fleets’ native transportation management systems.

CarrierWeb offers fleet management systems for both tractor and trailer assets. The information from each system can be viewed through a single configurable portal for TMS integration. Its reefer tracking system, ReeferMate, captures Isotrak’s trailer tracking module allows fleets to drill down to trailer location every five minutes and set geofences to automate reporting of arrivals and departures at given destinations. commercial carrier journal

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july 2014

53

technology: Trailer Tracking

MultiMode coMMunications From the beginning, trailer tracking systems have used cellular or satellite modems. Fleets used to have to decide between broader but more expensive satellite coverage and more economical cellular options.

Today, the cost of satellite communication has dropped to about a 20 percent premium of cellular. Orbcomm launched its next-generation OG2 satellite network designed to deliver about 30 times the bandwidth at a lower cost than its OG1 network.

The company has designed its tracking devices to use both cellular and satellite modems compatible with the Inmarsat network, much BlueTree Systems’ standard interface for its trailer monitoring system provides fleet managers like the roaming agreements for terrestrial with real-time status and alerts concerning temperatures and reefer operation. networks. a broad range of minute-by-minute data and reports once In 2013, telematics research and consulting every hour when under power. firm Clem Driscoll and Associates found that one-third of Through an integration with McLeod Software’s LoadMas- carriers without a trailer tracking system were interested in ter TMS, CarrierWeb sends any truck and trailer data it has having the technology to know the status and location of captured during a 60-second timeframe. LoadMaster match- their assets. Given recent advancements and lower upfront es the GPS records of trucks and trailers within 9 meters to costs, their waiting periods soon may come to an end. determine which tractors are hitched to which trailers, says Norman Thomas, vice president of commercial operations for CarrierWeb. When security coMes first Isotrak, based in the United Kingdom, began to focus Trailer tracking systems fill a variety of needs: equipment and cargo security, asset utilization, operational efficiency, chain of heavily in North America in 2013. About 95 percent of all custody and temperature monitoring, to name a few. For fleets U.K. groceries are transported on Isotrak-equipped vehicles with security at the top of the list, knowing a trailer’s location may by some of the largest global retailers. not be enough.

The company’s ATMSi cloud-based platform manages TrakLok International’s cargo security platform uses a high-tech telematics data from both the tractor and trailer. Informaintegrated device installed on the vertical bars of trailer and tion such as trailer temperature or reefer fuel level can be container doors. The platform originally was designed to secure displayed on a dashboard alongside other critical areas such radiological shipments but has evolved into a next-generation as hours-of-service compliance, says Cliff Koutsky, vice presplatform now used by motor carriers to protect high-value ident of business development. shipments.

BlueTree Systems offers a standard interface for both its The platform pairs GPS tracking and a padlock with a built-in onboard computing and trailer monitoring systems that keypad. Using a Web portal, fleets can enter a destination address provides fleet managers with real-time status and alerts conand time of day, and create a new password for each delivery. To cerning temperatures and reefer operation. open the lock, the password, time and trailer location all have to Orbcomm has its own network of satellites, builds its match. own hardware to track any type of asset and creates its own TrakLok’s built-in alarm system is triggered by tampering with cloud-based portals. The company acquired two of the largthe padlock. The base system uses rechargeable batteries and est providers of cold-chain trailer tracking systems, StarTrak comes with cellular communications, while a higher-end model and Par Logistics. includes satellite.

One reason for these acquisitions and others was that “It is very sophisticated but so simple for an operator,” says Tom Orbcomm saw an advantage to connecting fleets to all of Mann, president of TrakLok. “We are competing against a padlock their assets in diversified lines of business – flatbed, reefer, and a bolt seal, so it had to be really simple to use.” intermodal, dry van, etc. – through one portal.

54

commercial carrier journal

| july 2014

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journal news Continued from page 15

New Century closes, files bankruptcy; driver sues for lack of notice

N

ew Century Transportation (CCJ Top 250, No. 99) filed a voluntary petition for Chapter 7 bankruptcy in a federal bankruptcy court in New Jersey. The Mount Holly, N.J.-based company had about 1,500 employees, and they were terminated June 9, court documents say.

New Century, which had about 1,000 drivers and 1,000 power units, said in its bankruptcy documents it has between 200 to 999 creditors, between $10 million and $50 million in assets and between $10 million and $50 million in liabilities.

New Century also was hit with a class-action lawsuit over the termina-

tion from driver Robert Kearney, who alleges the company violated federal law by not giving drivers a written notice 60 days prior to their dismissal.

Kearney’s suit says the company violated the federal Worker Adjustment and Retraining Notification (WARN) Act and New Jersey’s Millville Dallas Airmotive Plant Job Loss Notification Act. Kearny is seeking for himself and other drivers 60 days of wages and benefits and severance pay for lost wages that’s equal to one week of pay for each full year of employment.

The WARN Act is designed to protect employees in “mass layoffs and

First U.S.-Mexico cross-border participant investigated for possible violations

A

14th Mexican carrier received authority through the U.S. cross-border trucking pilot program, while the first company admitted to the program is being investigated for possible violations.

The one-truck Importaciones Y Distribuciones Latina America became the fifth carrier to receive provisional operational authority through the Federal Motor Carrier Safety Administration’s program, while the other nine participants hold permanent authority.

The Advocates for Highways and Auto Safety had expressed concern that ILDA had not fully disclosed affiliations. On May 7, FMCSA announced its investigation had concluded the company had not attempted to mislead officials on its application.

The agency also said it will update its data if investigators confirm alleged violations by Transportes Olympic, the first

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| july 2014

Driver Robert Kearney’s class-action lawsuit alleges New Century Transportation violated federal law by not giving drivers a written notice 60 days prior to their dismissal.

plant closings,” according to court documents, and New Century would have been required to give the 60-day notice, Kearney’s suit alleges.

The company had $273 million in revenue in 2012, according to the CCJ Top 250, and hauled general freight nationwide.

– James Jaillet

program participant. The five-truck company may have had an incident of cabotage, which would violate the program’s prohibition against domestic point-to-point transportation. Agency representatives also are investigating TO for a possible hours-of-service violation.

FMCSA began the three-year program in October 2011.

Since then, it has revoked the provisional authority of one participant and dismissed 15 applicants, while five additional carriers have withdrawn applications. On Jan. 23, the agency revoked the authority of Sergio Tristan Maldonaldo, doing business as Tristan Transfer, over management control violations.

FMCSA also reported ordering trucks out-of-service for the following companies on the weeks indicated: • Two for Servicio de Transporte Internacional y Local and one for Transportes Del Valley during the week ending June 1.

• One truck for STIL during the week ending May 25.

• One truck for Grupo Behr during the week ending May 11.

• One truck for STIL during the week ending May 4.

– Jill Dunn

NOT JUST PARTS, PARTNERS.

It takes more to keep you on the road and in the black.

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They are exceptional-quality solutions to your daily issues. Specify Gates so you can focus on other parts of your business – now and for the long haul.

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Text INFO to 205-289-3554 or visit www.ccjdigital.com/info

journal news

Report criticizes DOD hazmat shipping, use of CSA

W

hen it comes to hazmat, the Department of Defense is sometimes a careless carrier-unfriendly shipper – and instances of denying truck drivers access to secure parking could be catastrophic, a recent oversight report concludes. The report also cautions that Compliance Safety Accountability has shortcomings as a tool for DOD’s carrier selection process.

In the report published in late May, “DOD Needs to Take Actions to Improve the Transportation of Hazardous Material Shipments,” the U.S. Government Accountability Office finds that DOD’s implementation of hazmat regulations “has experienced some challenges” that can “adversely affect safe, timely, and cost-effective transportation.”

Most notably, with regard to trucking, at least 44 times during fiscal years 2012 and 2013, DOD installations did not provide carriers with access to secure holding areas for arms, ammunition and explosives shipments or assist them in finding alternatives, as required by DOD regulations. While noting that there were 70,891 of these types of shipments, “not providing secure hold for even a small

percentage … poses a risk to public safety and national security,” the report says.

GAO also found that “a substantial number” of hazmat shipments were not documented and packaged properly.

With regard to CSA and carrier selection, GAO revisits its previous analysis of the program’s shortcomings and recommends the Defense Department review its procedures as well.

The report points out that DOD may be determining which carriers should be eligible to transport its most sensitive shipments “using a safety score that lacks sufficient information to reliably assess safety performance for many carriers.”

That score, from the Federal Motor Carrier Safety Administration’s Safety Measurement System, determines which carriers are eligible to participate in DOD’s Transportation Protective Services program.

However, in February GAO found that scores from many carriers lack sufficient safety performance data to reliably compare them with other commercial carriers’ scores.

– Kevin Jones

California considering replacing fuel tax with mileage tax

C

alifornia soon may test the feasibility of replacing state fuel excise tax with a vehicle-miles-traveled fee.

On June 2, the state assembly’s transportation committee received SB 1077 after the Senate approved it by a 23-11 vote. The measure would require the California Transportation Agency to create a voluntary pilot program by 2016, but the CTA would not be permitted to collect fees.

The state’s transportation funding is supplied mainly through fuel excise and sales taxes. California requires revenue from the base 18-cent-per-gallon fuel

58

commercial carrier journal

| july 2014

excise tax to be used for maintaining and operating the state highway system.

Gasoline excise tax revenue from above the base revenue is used mainly for streets, roads and new capacity projects.

The state’s diesel sales tax is dedicated to supporting transit operations.

Fuel excise taxes are relatively inexpensive to administer because they are collected from a small number of fuel wholesalers nationwide, according to a May 23 California legislative analysis. Over two fiscal years, more than $1 million annually would be needed to test and implement VMT,

the analysis stated.

In 2007, nearly 300 volunteers tested Oregon’s VMT pilot program at a cost of $3 million. Estimates were not readily available for its 2012-13 program, which enrolled 100 participants in three states.

In 2015, Oregon will implement a voluntary program to allow 5,000 vehicle owners to pay a per-mile road charge of 1.5 cents per mile instead of fuel tax. The state’s annual administrative costs for the program are expected to be $1.4 million annually.

– Jill Dunn

It’s Go Time!

E-Logs and so much more on your smart device

Three years ago, Sal Giovingo, President and Owner of RoadRunners Autotransport, Inc., introduced his drivers to J. J. Keller’s Encompass® with E-Logs. The results speak for themselves …

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“If it wasn’t for J. J. Keller’s partnership and assistance, knowledge and teaching, we wouldn’t be where we are today. And really, being compliant and being safe … that’s what we feel has catapulted our company to the next level. That is really what made us grow.”

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PC107491

HOW TO MANAGE CASH FLOW

The following is an excerpt from How to Manage Cash Flow, a manual produced

by Commercial Carrier University and sponsored by Chevron Delo. CCU is an educational program produced by Commercial Carrier Journal that includes business management manuals, seminars aimed at improving management skills and a website. For more information, visit www.commercialcarrieruniversity.com.

Using idle cash better By now you have improved your cash flow so much that your cash reserves are piling up. Even relatively small cash surpluses can generate still more cash, so you should take steps to increase the return on your idle cash.

The first step in evaluating what to do with idle cash is to know how you got it and how long you will have it.

Your investment options depend on whether this cash is available for a few days or a few months.

Short-term cash surpluses can spring from a quick-paying customer, a well-run billing-and-collection cycle or an effective stretching of your accounts payable. These surpluses might last only one to three weeks. Even a company with revenue of $200,000 per month might at any one time have $50,000 to $100,000 cash balances temporarily for a week or two before the bills come due.

A large surplus-cash balance created because you aren’t paying bills isn’t a surplus at all. Make sure you cover all payroll tax deposits, trade

60

COMMERCIAL CARRIER JOURNAL

| JULY 2014

payables and other obligations before you consider investment options.

Late charges or a damaged reputation will cost you more than you could earn on the funds.

A better investment might be to pay down your debt – even if only temporarily. If you have a line of credit at 10 percent and you can spare your extra $50,000 to reduce that debt, you would save more than $400 per month in Using bank funds interest – almost Many companies use Even relatively small $5,000 per year. two bank accounts cash surpluses Sweep arrange– a money market ments can make this account for depositcan be used to process automatic. ing all collections and generate still more Your bank can take a checking account your excess cash for disbursements. By cash, so you should each night and apply placing all customer take steps to it toward your line payments immediof credit. In the ately into a money increase the return morning, the bank market account and on your idle cash. gives you back the transferring enough money.

Over time, this has almost each week to cover checks written in the same effect as paying down your the checking account, your cash balloan, but it’s more convenient and ances earn interest almost from the consistent.

Your bookkeeper might date of deposit. object to the extra bank reconciliaEven at today’s low interest rates, tion chores, but it’s worth it in the you might be permanently investlong run. ing $50,000 to $100,000 in funds. If Your bank also offers a variety of the return is 3 percent, that could certificates of deposit that make sense be $1,500 to $3,000 per year in extra if you know of a particular need for earnings for your company.

COMMERCIAL CARRIER UNIVERSITY cash a few months ahead, such as income tax payments. The returns are small – only 3 to 4 percent – but you have little concern over losing any value on your investment.

Another bank product is the repurchase agreement. Banks keep an inventory of U.S. Treasury securities and can sell them to you with the agreement to repurchase them in a week or a month. You might invest $99,600 in such securities, and the bank agrees upfront to buy them back in 30 days for $100,000.

Returns may be only in the range of 3 to 5 percent.

Using discounts Taking purchase discounts can pay off handsomely. Scour your supplier and vendor statements to see if they offer early payment discounts. Even a 1 percent discount for payment in 10 days with net due in 30 days will offer a fantastic – and risk-free – return.

If, for example, you owe $10,000

but can pay $9,900 if you pay within 10 days, you earn $100 for paying early. In effect, you are earning 18 percent interest on your money for 20 days. If anyone offers 2/10 net 30, take the discount. That’s equal to a 36 percent annual interest rate.

It may even make sense to take an advance on your line of credit at 10 percent to earn the discount.

Longer-term options If you have exhausted short-term strategies and still have a surplus, you might investigate other options.

A good starting place might be an investment policy statement. Get your banker or investment adviser to help prepare one.

A policy statement is a brief listing of what your investment time frame might be and a listing of what types of investments are appropriate for this time frame and for your company. Most importantly, a policy outlines investments that are not

appropriate. It can be a written guide for your internal managers and outside investment advisers.

A fundamental principle of investing is that to get higher rewards, you must take more risks.

If you are considering bonds or equities, consult a CPA, certified financial planner or investment adviser that work on a fee-only basis.

Fee-only advisers charge by the size of the portfolio, so their reward depends on increasing your portfolio, not getting you to buy something because it pays a commission.

In summary To invest excess funds effectively, you must know the period during which your cash is available.

Different investments are appropriate for different time periods. And there may be great investments inside your own business – in the form of reducing your debt or taking discount opportunities.

Commercial Carrier University is an educational initiative for owners and managers of trucking companies that are held at select Truckload Carriers Association events. We’re certain you will find this program a valuable resource in managing your business more easily and more profitably.

CCU’s goal is to provide you with an in-depth road map for success through clear advice on basic and advanced business practices.

CCU Titles Available: • How to Evaluate Life Cycle Costs • How to Manage Cashflow • How To Plan For Succession • How to Use Financial Statements • How To Write A Business Plan Produced by:

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COMMERCIAL CARRIER JOURNAL

12/18/13 10:38 AM

| JULY 2014 61

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products new

CNG regulator system Parker Hannifin’s Veriflo Division has developed a CNG Vehicle Gas Regulator System for medium- and heavy-duty vehicles that is engineered to perform in extreme engine and environmental operating conditions and increase the usable range of compressed natural gas vehicles by 10 to 15 percent. Integrated internal regulator components are designed to work together to help dampen flow-induced vibration, reduce drop at high flow, extend cycle life and eliminate fuel line failures due to freezing.

Parker Hannifin, http://solutions.parker.com/alternativefuels, 800962-9590, Text INFO to 205-289-3554 or visit www.ccjdigital.com/info

Docking station Gamber-Johnson’s TabCruzer vehicle docking station for the Getac F110 11.6-inch Windows tablet computer has a compact design with a shallow depth for mounting the device closer to the vehicle’s dash. The dock, which accommodates the F110’s magnetic strip reader and hand strap, is designed for rugged mobile environments and to meet shock/vibration and crash test standards. A

push-and-turn lock is engineered for easy docking and undocking, while bottom-facing ports allow cable routing for most mounting applications. The station is built for port replication and optional Tri-Pass antenna pass-through to simultaneously connect GPS, WWAN and WLAN roof-mounted antennas.

Gamber-Johnson, www.gamberjohnson. com, 715-344-3790, Text INFO to 205-289-3554 or visit www.ccjdigital.com/info

Wheel cleaner wipes

Rain-repellant wipes

Black Magic Wheel Cleaner Wipes can be used between heavy-duty cleanings to maximize shine or as a convenient all-purpose cleaner to remove dust, dirt and grime. Each wipe uses the company’s proprietary formula that also helps maximize shine.

Rain-X 2-in-1 Glass Cleaner and Rain Repellent Wipes are formulated for strong water beading results on windshields and glass without buffing. The wipes can be used directly on a vehicle’s glass to help remove rain, sleet, snow, ice, bugs and road spray and prevent sticking.

ITW Global Brands,

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ccjdigital.com/info commercial carrier journal | july 2014

63

MEETING THE BUSINESS NEEDS OF FLEET EXECUTIVES The goal of COMMERICAL CARRIER UNIVERSITY is to provide you with an in-depth road map for success through clear advice on basic and advanced business practices.

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products

Drum latching lid New Pig’s Latching Lid for Fiber Drums is built to help keep solids dry and pure while eliminating the hassle of conventional lids.

The latching handle is designed to make it easier to open and close with one hand; the 3-inch-wide EVA gasket forms a tight seal to help prevent moisture from entering the

drum. Tabs on the included drum ring selfalign to the drum chime to fit fiber drums more securely. A removable hinge pin is built to allow the lid to be removed without loosening the band around the drum.

New Pig Corp., www.newpig.com, 800468-4647, Text INFO to 205-289-3554 or visit www.ccjdigital.com/info

Mixed-service tires Goodyear’s G731 MSA and G751 MSA mixed-service tires are designed for construction, dump, cement mixer and other mixed-service fleets. The low-rolling-resistant tires feature more wearable rubber volume, a wider footprint for extra traction and stability, a sturdy casing for added retreadability and a tread compound engineered for enhanced resistance to cuts, chips and tears. The G731 MSA, designed mostly for off-road applications, is available in sizes 11R22.5 (with DuraSeal Technology), 12R22.5, 11R24.5, 275/70R22.5 and 255/70R22.5. The G751 MSA, designed mostly for on-road applications, is available in sizes 11R22.5 (with DuraSeal Technology), 315/80R22.5 (with DuraSeal Technology), 12R22.5, 12R24.5 and 11R24.5.

Goodyear, www.goodyeartrucktires. com, 866-353-3847, Text INFO to 205-2893554 or visit www.ccjdigital.com/info Text INFO to 205-289-3554 or visit www.ccjdigital.com/info

commercial carrier journal | july 2014

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products

Pete 379 floor mats Minimizer offers custom-made floor mats for the Peterbilt 379 covering model years 1987-2007. The floor mats are made of durable thermoplastic and are designed to fit the interior measurements and angles of each specific make and model. They are built to contain spills, dirt and debris and to help prevent corrosion of floorboards and interior components.

Minimizer, www.minimizer.com, 800-2483855, Text INFO to 205-289-3554 or visit www. ccjdigital.com/info

Smoke machine Snap-on’s EVAP Smoke Machine, designed to pinpoint leaks and diagnose emissions-related diagnostic trouble codes, features the company’s Diagnostic Smoke technology and UltraTraceUV noncontaminating dye solution. The unit features variable flow control that can be reduced manually to help pinpoint the leak’s exact location, as well as a hanger when using the device beneath the vehicle’s hood.

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Rugged computer GammaTech’s DuraBook R8300, built for harsh and demanding outdoor applications, features a 13.3-inch touchscreen LCD display to allow direct-sunlight readability, Intel i-Core processor options and anti-theft features.

GammaTech, www.gammatechusa.com, 800-995-8946,

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products

Portable power supply The Whistler Group’s Jump&Go portable power supply is designed to jumpstart 12-volt vehicles many times on one single charge. The 11-pound device features a lithium polymer battery designed to be recharged hundreds of times and hold a charge for more than a year.

The device features a 2.1-amp USB port and built-in multifunction LED flashlight for emergency situations, a battery power/charging level indicator, built-in overcharge protection and back-feed protec-

tion. The shock-absorbent silicone covers are available in black, yellow, red, and pink. The device comes with a zippered storage case that also holds the jumper cables, charger and home charger.

The Whistler Group, www.whistlergroup.com, 800-531-0004, Text INFO to 205-289-3554 or visit www.ccjdigital.com/info

Upgraded tire inflation system Stemco’s upgraded Aeris automatic tire inflation systems now feature the company’s SmartSense technology, a driver alert system designed to quickly identify which wheel ends are taking air for faster corrective action. SmartSense also features Stemco’s Zero Power Technology, which notifies the maintenance team which tires need service even when the trailer is disconnected from power. The system is equipped with a radio frequency link between the Aeris control box and the driver warning lamp.

Stemco Intelligent Transportation Systems, www.stemco.com/product/aeris-smartsense, 800-527-8492, Text INFO to 205-2893554 or visit www.ccjdigital.com/info

68

text INFo to 205-289-3554 or visit www.ccjdigital.com/info

commercial carrier journal | july 2014

THE MINIMIZER TIRE MASK SYSTEM

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FuelSurchargeIndex.org provides shippers, carriers and owner-operators with average retail fuel prices updated every 24 hours and specific to the route that the load is actually traveling.

• FuelSurchargeIndex.org provides fuel data transparency for the entire industry • Use the actual retail price of diesel along a specific route to calculate the fuel surcharge • Accurate, detailed fuel data updated daily • Interface options available

Get the answers you need to run your company efficiently and profitably.

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This important panel discussion is part of a fourday meeting of trucking executives from across the country that focuses on economic, regulatory, and business trends that will drive your fleet’s success today and in the future. Registration is open to ATA members and others involved in trucking.

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79

Muttonbutt Road

What’s this new diesel engine oil I’m hearing about?

You are probably hearing or reading about a new API category in development for heavy duty diesel engine oils.

This new category, currently referred to as Proposed Category 11 (or PC-11), is under

By Dan Arcy Shell Lubricants development as you read this. So what is it and why are things changing?

In simple terms, when engine technologies change we often see a new oil category introduced. This was true in October 2006 when the current API CJ-4 category was launched. At that time, we needed to work with new technologies like diesel particulate filters and the anticipated higher operating temperatures of some engines.

In the past, changes were typically driven by reducing particulate matter and NOx emissions. However the driver for this round of changes is a little different.

Truck manufacturers are adapting their technology to develop next-generation diesel engines to meet emissions, renewable fuel and fuel economy standards, as well as to meet CO2 and other greenhouse gas emissions mandates due to be introduced in the next few years.

PC-11 will be a significant undertaking for the industry not just in North America but also globally. The engine manufacturers have to respond to new regulation such as renewable fuels mandates, on and off-road exhaust emission and greenhouse gas emission standards. There are also changes to the hardware and operating strategies of engines which can introduce factors such as: increased power density, increased combustion and injection pressure, increased in-cylinder NOx reduction, higher oil temperatures and wear resistance coatings. As an industry we must keep pace with such developments and of course, give the market the products that it needs.

This is why the American Petroleum Institute, Shell Lubricants and others in the industry are looking to provide changes in the new oils that include improvements in oxidation stability, aeration benefits, shear stability, biodiesel compatibility and scuffing/adhesive wear protection.

This will mean developing new engine tests and modifying existing engine tests for deposits and oil. The development of this specification is well underway and the planned launch is early 2016. We’ll keep you updated on developments for the new specification and the next generation of ® Shell Rotella engine oil products.

This monthly column is brought to you by Shell Lubricants. Got a question?

Visit ROTELLA.com, call 1- 800 - 231- 6950 or write to The ANSWER COLumN, 1001 Fannin, Ste. 500, Houston,TX 77002.

The term “Shell Lubricants” refers to the various Shell Group companies engaged in the lubricants business.

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COMMERCIAL CARRIER JOURNAL | JULY 2014

Rt. 4

PREVENTABLE or NOT? Merging Cougar mauls Doe’s fender

S

hortly before the accident, tractor-trailer driver John Doe was listening with disbelief to a Channel 19 account of a luckless New Jersey carrier being fined thousands of dollars by the Occupational Safety and Health Administration because forklift operators weren’t wearing seatbelts. Huh? Are these enforcement guys nuts? The last time Doe had heard of a forklift flipping was back in 1968 during a wild New Year’s Eve barrel race between a Clark and a Hyster!

At the moment, Doe was moseying along at 55 mph in the far-left lane of three-lane one-way Muttonbutt Road, approaching the intersection with Route 4. The light ahead had just turned green, and Doe’s lane was devoid of traffic. Cautiously decelerating to 35 mph before entering the intersection – where vehicles in the center and right lanes had started to move – Doe suddenly John Doe hit the brakes and swerved to avoid a noticed a dull-blue Cougar in the middle lane whose left-turn signal was flashing. car cutting in front of Whoa! Suspecting that the Cougar him, but the collision damaged his right front intended to leap across his bow onto fender. Was this a Route 4, Doe hit the brakes, sounded his preventable accident? horn and swerved to the left. But alas, the Cougar’s elderly driver, Matty Munchley, was sure she could squeak past the nasty ol’ truck, and … WHUMPPO! Oh no! Doe had been struck, with his right front fender sustaining a spontaneous structural reconfiguration. Munchley was OK, albeit mighty miffed.

Since Doe contested the warning letter from his safety director for a preventable accident, the National Safety Council’s Accident Review Committee was asked to resolve the controversy. NSC quickly ruled in Doe’s favor, concluding that there was nothing more he could have done to avoid being pounced upon by the Cougar.

YOUR FLEET NEVER FAILS TO DELIVER. NEITHER SHOULD YOUR ENGINE OIL. Whether you’re hauling across town or across the country, you need an engine oil as dependable as you. For over 40 years, Shell Rotella® heavy duty diesel engine oils have worked hard to deliver protection and performance. From the wear, deposits and emissions protection of Shell Rotella® T Triple Protection,® or the improved fuel economy of Shell Rotella® T5 Synthetic Blend Technology, to the excellent high/low temperature protection of Shell Rotella® T6 Full Synthetic, there’s a Shell Rotella® engineered to handle your needs. www.rotella.com Receive a $10 rebate back by mail with the purchase of a 5 gallon pail of Shell Rotella® Tractor Hydraulic/Transmission Fluid from participating locations.*

THE ENGINE OIL THAT WORKS AS HARD AS YOU.

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