CCJ1213

COMMERCIAL CARRIER JOURNAL

DECEMBER APRIL 2013 2013

TRAINING TODAY'S DRIVERS

SINCE 1911

Technology complements classroom instruction page 46

PLUGGED FOR POWER

page 50

Are electric trucks a viable alternate to diesel?

SMART LOAD TRACKING

page 35

Apps help fleets keep tabs on drivers, shipments BUSINESS SOLUTIONS FOR TRUCKING PROFESSIONALS

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DECEMBER 2013 | VOL 170 | NO. 12

42 LOUD AND

JOURNAL LEADING NEWS, TRUCKING MARKET CONDITIONS AND INDUSTRY ANALYSIS

CLEAR

Fleet graphics can say a lot about a company. Whether they serve to promote brand image or a specific product, many carriers turn to truck and trailer wraps to stand out in the crowd. And as the trucking industry pushes to revive its reputation, these images can help fleets better relate to the motoring public and present a professional look to their customers.

Cover design by David Watson

FEATURES

46

Targeted training

While computerized training and video-based driver risk managment systems have not replaced human instructors, they have made them more effective. DRM and other technologies also have helped to expand many carriers’ recruiting pools and reduce the risks and costs of hiring inexperienced drivers.

50

Trucks on the grid

While all-electric commercial vehicles have shown some promise in limited applications, the German-based Siemens company – a leader in railroad technology – is taking many of its proven rail components and concepts and rethinking them with a goal toward creating an all-new type of highly-efficient low-emissions commercial vehicle.

11 News House bill would reinstate prior hours rule, delay July 1 provisions … Deadly crashes prompt NTSB to recommend FMCSA audit … CSA SMS display changes now available for review … Carrier alliance wants hair testing OK’d, bills introduced …

Changes proposed to help military, vets transition into trucking

12 InBrief

39

18 FuelSavvy Innovators: M&M Cartage

The Louisville, Ky.-based company invests $7.5 million in building materials and capital equipment for the construction of a new headquarters with green efficiencies and new CNG-powered trucks.

20 MarketPulse Financial research, data, analysis, forecasts and trends

COMMERCIAL CARRIER JOURNAL | DECEMBER 2013

3

DEPARTMENTS

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technology

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Editorial

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

23 24

editorial@ccjdigital.com

Are glider kits the way to start using natural gas?

33

Volvo Trucks debuts Optimized Series regional haul truck models

In-cab ‘coach’ helps TDC boost mpg

34 InBrief

26 InBrief

35 InFocus:

Smartphone apps

Design & Production

Art Director: David Watson Graphic Designer: Kenneth Stubbs Quality Assurance: Timothy Smith Advertising Production Manager: Anne Marie Horton production@ccjdigital.com

Trucking Media

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

Corporate

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 of Events: Alan Sims Vice President, Audience Development: Stacy McCants Vice President, Digital Services: Nick Reid Director of Marketing: Julie Arsenault

28 Severe Service:

Kenworth T880 test drive

28

Mack goes pink for breast cancer awareness

ALSO IN THIS ISSUE

6

Upfront Impressions from Mexico

72

57

4

As John Doe attempted a wide U-turn from the left lane, he struck a car that had pulled up next to him in the right lane. Was this a preventable accident?

Products Webasto’s pre-heat timer, Bridgestone’s all-position radial and more

Preventable or Not?

71

COMMERCIAL CARRIER JOURNAL | DECEMBER 2013

Ad Index

3200 Rice Mine Road N.E. Tuscaloosa, AL 35406 800-633-5953 randallreilly.com Commercial Carrier Journal (ISSN 1533-7502) is published monthly by Randall-Reilly Publishing Co. LLC, 3200 Rice Mine Road N.E., Tuscaloosa, AL 35406. Single copy price U.S., $6; Canada/ Mexico, $9; Foreign, $12. Subscription rates, payable in U.S. dollars, $48 per year (in Canada $78 U.S. currency). For subscription information/inquiries, please email commercialcarrierjournal@ halldata.com. Periodicals Postage-Paid at Tuscaloosa, AL, and at additional mailing offices.

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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 Randall-Reilly 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 © 2013, 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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UPFRONT

Impressions from Mexico Despite lax regulations and little oversight, some Mexican carriers get onboard with fleet safety BY JEFF CRISSEY

W

hen it comes to trucking productivity, let’s just say Mexican fleets have it made. No hours of service, no real presence of weigh stations or enforcement, and size and weight standards that are astronomical compared to the United States – as much as 80 metric tons weight limit (176,370 pounds) and 31 meters (101.7 feet) for longer combination vehicles.

And let’s just say that I’ve seen and heard things on my recent trip through Mexico that would get even the least-stringent U.S. safety managers fired on the spot.

The trucking industry south of the border is extremely fractured. With only 600 fleets in operation with more than 100 power units, much of the trucking industry there – with an estimated Class 8 tractor population of roughly 635,000 power units – is run by small fleets and independent contractors. In many ways, the U.S. perception of the Mexican trucking industry operating like the Wild West holds true.

But I’ve also seen some fleets with remarkable safety standards and performance. In many respects, safe trucking operations happen by choice rather than mandates and regulations.

Take, for example, Transportes Monroy Schiavon, a truckload and dedicated carrier with 843 vehicles, including 443 Class 8 power units – placing it as the 16th-largest carrier in Mexico. TMS, based in Cuautitlán on the outskirts of Mexico City, has a rich heritage in trucking. Thanks to Volvo Trucks, I, along with a handful of other American and Canadian journalists, had the opportunity to visit the fleet last month.

Today, 82 percent of TMS business is domestic and 18 percent international. The company’s customer portfolio includes some of the biggest companies in Mexico – Wal-Mart, Proctor & Gamble, Ryder Logistics and Unilever – as well as international trans-

border alliances with U.S.-based carriers including Schneider National, Con-Way, Celadon and Werner Enterprises.

TMS couldn’t serve such a customer portfolio without an impeccable image and strong safety culture. “Our vision is to be recognized as the most reliable alternative to provide transportation and logistics services, both domestically and internationally,” says Laura Mandujano Valdes, TMS commercial director.

TMS takes great pride in maintaining a professional image to its customers. The company continually invests in new equipment and technology when it can – as evidenced by its order of 100 Volvo VNL tractors with I-Shift automated manual transmissions, which the truck maker now has made available in the Mexican market for the first time.

Presently, TMS’ fleet replacement cycle is only three years on average. When in operation, tractors and trailers are washed each time they depart the terminal for a delivery.

When TMS develops special safety and security procedures for international business, it adopts those procedures domestically as well. Indeed, TMS’ efforts in driver safety and training are on par with many large safety-focused fleets in North America.

But one safety measure stood out on our visit.

Within an hour of leaving the terminal on a route, drivers must submit to a pre-trip medical test. The three- to five-minute procedure includes testing blood pressure levels, heart rate and other vital statistics. The nurse makes the final determination on a driver’s health before releasing him to begin the route. That’s not something we’ll likely see north of the border.

On average, North American negative perception of the Mexican trucking industry holds some water. But as TMS and a growing number of other safety-conscious fleets in Mexico show, those perceptions soon may change.

JEFF CRISSEY is Editor of Commercial Carrier Journal. E-mail jcrissey@ccjmagazine.com.

6

COMMERCIAL CARRIER JOURNAL

| DECEMBER 2013

A nurse at Transportes Monroy Schiavon screens a driver before his trip can begin.

Transportes Monroy Schiavon’s safety and security procedures include: • Daily driver safety briefings • Mandated rest time between trips • Pre-trip, semi-annual and new-hire medical screenings • Random anti-doping tests • Driver training simulator • Extensive background checks for new hires • 24/7 monitoring of loads in transit to assure stops are made only at authorized sites • Specialized coaching for poor-performing drivers • Better routes, prizes and recognition for safe drivers

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leading news, trucking market conditions and industry analysis

House bill would reinstate prior hours rule, delay July 1 provisions

A

bill introduced in the U.S. House last month would reinstate the hours-of-service rule in effect prior to July 1 by delaying the current rule pending a congressional investigation.

U.S. Reps. Richard Hanna (R-N.Y.), Tom Rice (R-S.C.) and Mike Michaud (D-Maine) introduced the True Understanding of the Economy and Safety Act (TRUE Safety Act) that would allow truck drivers to revert back to obeying the 34-hour restart rule that was in place prior to July 1 – the one in place since April 2003.

The six-page bill also would require the Government Accountability Office to conduct an independent assessment of the methodology used by the Federal Motor Carrier Safety Administration to create the revised rule that limits the use of the 34-hour restart to once per 168 hours and requires that the restart include two consecutive 1-5 a.m. periods.

Per the bill, FMCSA also would not allow the new 34-hour restart rule to be re-implemented until six months after the GAO submitted its report to Congress. Hanna said the TRUE bill would allow assessment of the regulations “to ensure the rule makes sense and will not actually harm the traveling public and the American economy.”

“It is wrongheaded for the federal government to impose an arbitrary and capricious regulation that impacts almost every sector of the American economy without first finishing a study on its effectiveness,” Hanna said. “Federal agencies should have an obli-

Deadly crashes prompt NTSB to recommend FMCSA audit

T

he National Transportation Safety Board last month recommended to

U.S. Transportation Secretary Anthony Foxx that the Federal Motor Carrier The bill also would require an independent assessment of FMCSA’s methodology for its 34-hour restart rule.

gation to prove that new rules and regulations do not cause more harm than good, in terms of both safety and costs.”

Hanna tried in July to attach an amendment to a larger House transportation bill that would have delayed the July 1 hours rule, but the bill was pulled before Congress’ August recess. “[FMCSA] is requiring truckers to comply with one of the most stringent parts of its regulation prior to receiving their study’s findings,” Rice said, adding that the bill would “require an additional study to ensure that our truckers are not being over-regulated.”

In August, House members – including Hanna, Rice and Michaud – sent a letter to U.S. Transportation Secretary Anthony Foxx and House colleagues saying FMCSA once again would miss its deadline to complete a report on the results of the hours-ofservice study required by the current MAP21 highway funding act.

The hours-of-service rule was tested in court by the American Trucking Associations, which had sued FMCSA in an attempt to undo the rule. An Aug. 2 ruling upheld the Scan the QR code with your smartphone or entirety of the rule except visit ccjdigital.com/news/subscribe-to-newsfor a mandatory 30-minletters to sign up for the CCJ Daily Report, a ute break for short-haul daily e-mail newsletter filled with news, analydrivers. sis, blogs and market condition articles.

– James Jaillet

Safety Administration be audited on its oversight capabilities of motor carriers and trucking companies.

NTSB said its findings “raise serious questions about the oversight of motor carrier operations” and come in response to investigations within the past year into four accidents in which collectively 25 people were killed and 83 more injured. In all four accidents, NTSB investigators said it identified “safety deficiencies and noted red flags had been present prior to the crashes,” and that the red flags were either not noticed or not acted upon by FMCSA. NTSB said its investigations raised issues about both FMCSA’s “thoroughness and quality” of compliance reviews and the agency’s “increasing reliance on focused compliance reviews,” as they focus on just a narrow portion of a carrier’s operation.

“Our investigators found that, in many cases, the poor performing company was on FMCSA’s radar for violations, but was allowed to continue operating and was not scrutinized closely until they had deadly crashes,” said NTSB Chairman Deborah Hersman.

FMCSA responded via a prepared statement, saying each year it has increased the number of carriers it has shut down for unsafe practices, and that in 2012 it shut down 47 carriers compared to just 10 in 2011.

commercial carrier journal

– James Jaillet

|

december 2013

11

JOURNAL NEWS

INBRIEF 12/13 • October Class 8 truck net orders for all major North American OEMs were up 39 percent from September to 25,960 units and were the highest since December 2011, according to FTR Associates.

• FTR Associates said its Trucking Conditions Index reading of 9.97 in September continued to show a positive environment for trucking. FTR expected the index to peak in October.

• The Freight Transportation Services Index rose to an all-time high in September, climbing 0.8 percent from August and 4.3 percent from the same month last year to a reading of 115.8, the Bureau of Transportation Statistics said.

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• The number of cargo theft incidents in the third quarter of 2013 rose 15 percent from the second quarter, while the average value per stolen load dropped 5 percent, according to FreightWatch.

• U.S. fatalities from accidents involving large trucks increased by 3.7 percent in 2012, rising to 3,921 from 3,781 the prior year, according to the National Highway Traffic Safety Administration.

• Of the 20,067 commercial vehicles inspected during the Commercial Vehicle Safety Alliance’s Brake Safety Week in September, 2,714 vehicles – 13.5 percent – were placed out of service, tying May 2013 and September 2010 for the lowest OOS rates for CVSA inspection blitzes.

• North Liberty, Iowa-based Heartland Express (CCJ Top 250, No. 39) acquired Pacific, Wash.-based Gordon Trucking (No. 58) for $300 million.

• Addison, Texas-based Daseke Inc. and Clayton, Ala.-based Boyd Bros. (No. 97) announced a merger that includes more than 2,000 tractors and 3,600 trailers.

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journal news

CSA SMS display changes now available for review

T

he Federal Motor Carrier Safety Administration in early November announced a 60-day preview period of several changes to the display of carrier data and scoring metrics available to the public via the Compliance Safety Accountability program’s Safety

Measurement System website. Attendant to the preview, FMCSA requested comments on the changes from both stakeholders and the public.

The comment period began Nov. 5. Written comments regarding the changes can be filed online in the Federal

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Docket Management System via regulations.gov referencing Docket ID Number FMCSA-2013-26543. FMCSA said it would review comments and make any necessary changes prior to implementation. A summary of some of the agency’s changes: • Motor carriers’ Behavioral Analysis and Safety Improvement Category percentile rankings are being moved from the front summary to within the drilldown pages for each BASIC. A carrier’s summary page will display a summary BASIC status to clarify more clearly if a motor carrier’s performance in the individual BASICs causes it to be prioritized for an intervention.

• The display of the BASICs will be reordered based on each category’s correlation to crash rates, with the BASICs with the strongest associations – Unsafe Driving and Hours of Service Compliance – at the left.

• Every motor carrier’s individual performance measure in each BASIC – the safety performance number that is not relative to other carriers – will be highlighted to help users more clearly identify performance trends over time. The measure is based on computational results of the carrier’s roadside inspections or crashes.

• Carrier safety rating information gleaned as a result of a compliance review will be displayed prominently.

Previously, users had to go to FMCSA’s Safety and Fitness Electronic Records System (SAFER) website to access such data.

• Each carrier’s safety event group will be accessible to website users via a download of the data for all of the carriers.

• Current insurance and authority status will be included.

• Carriers’ enforcement case history – including applicable violations, associated fines and date the case was closed – will be accessible to users.

– Todd Dills

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| december 2013

11/11/13 2:25 PM

journal news

Carrier alliance wants hair testing OK’d, bills introduced

P

rompted by trucking interests, U.S. Sen. Mark Pryor (D-Ark.) and U.S. Rep. Rick Crawford (R-Ark.) introduced legislation designed to enable trucking companies to more effectively prevent lifestyle drug users from gaining employment as commercial truck drivers.

Companion bills introduced in the Senate and House direct the U.S. Department of Health and Human Services to recognize hair testing as an optional method to comply with U.S. Department of Transportation drug testing requirements for truck drivers.

Under current federal regulations, only urinalysis is recognized by HHS for mandatory pre-employment drug and alcohol exams of truck driver applicants.

However, the number of truck driver applicants who pass a pre-employment urine test but fail a subsequent hair test is high, according to the Washington, D.C.-based Alliance for Driver Safety & Security, also known as The Trucking Alliance.

For that reason, many trucking companies have turned to hair testing, which is more expensive but is more effective in identifying drug users who apply for jobs as truck drivers.

“Passing this much-needed legislation will give trucking companies the option of conducting either a urinalysis or a hair test or both methods and will also allow positive hair tests to be reported to the soon-to-be-created national drug and alcohol clearinghouse that Congress adopted last year,” said Gary Salisbury, a member of the Trucking Alliance board of directors and current chairman of the Arkansas Trucking Association.

Congress mandated the creation of a drug and alcohol clearinghouse last year, and DOT is expected to have it operational by next year. This database will identify any person who previously has tested positive on a pre-employment drug exam required by the federal government before being employed as a

truck driver.

Pryor and Crawford were joined by Sen. John Boozman (R-Ark.) and representatives Tom Cotton (R-Ark.), Steve Womack (R-Ark.), Tim Griffin (R-Ark.) HowesCCJW13_HalfPageIsland.pdf 1 and Reid Ribble (R-Wis.).

– Kevin Jones

8/7/13

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|

december 2013

15 8/8/13 8:56 AM

journal news

Changes proposed to help military, veterans transition into trucking

T FMCSA analyzed training, testing and licensing similarities between military and civilian CDL requirements.

he Federal Motor Carrier Safety Administration said an in-house study has prompted the agency to implement regulation changes to help active and former military personnel

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transition to civilian truck driving jobs more easily. FMCSA said it plans to implement “as soon as possible” the changes, which include: • Allowing active duty and recently separated veterans to have up to one year – as opposed to the current 90 days – to take advantage of the Military Skills Test Waiver, which allows states to waive commercial driver’s license skills tests for service members with two years of safe driving experience with similar vehicles.

Right now, 46 states offer the waiver, which almost 2,000 veterans have been able to use; • Allowing active-duty military personnel with training and employment in heavy vehicle operation to qualify for a CDL immediately. The 60,000 service members who currently qualify for the waiver operate vehicles that are nearly identical to civilian trucks, FMCSA said; and • Allowing service members stationed in one state but licensed in another to obtain a CDL before being discharged.

FMCSA’s study was required by the MAP-21 highway funding law that went into effect last summer. The agency said it analyzed training, testing and licensing similarities between military and civilian CDL requirements.

“Our military men and women make tremendous sacrifices in service to our nation, and helping veterans transition to the civilian workforce when they come home is just one way to show our gratitude,” said U.S. Transportation Secretary Anthony Foxx. “This report builds on the work FMCSA has already accomplished on behalf of our veterans and outlines opportunities to help even more qualify for jobs based on the skills and training they receive in the armed forces.”

– James Jaillet

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commercial carrier journal

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Based on Isuzu dealer inventory, inventory can vary by dealership. Eligible models include 2011-2014 diesel N-Series trucks and 2012-2013 Reach.

*

†

Extreme or severe usage/applications may not qualify. See dealer for details.

Credit approval required. Please see your authorized Isuzu dealer for qualifying information. This is a limited time offer only available through Isuzu Finance of America, Inc. Finance terms limited. Participating dealers only. See your Isuzu dealer for complete financing and special offer details. +

Vehicles shown with optional equipment; some equipment is dealer installed. These vehicles are assembled from component parts manufactured by Isuzu Motors Limited and by independent suppliers who manufacture such components to Isuzu’s exacting standards for quality, performance and safety. N-Series is a trademark of Isuzu Motors Limited. Reach is a trademark of Utilimaster Corporation.

© 2013 ISUZU COMMERCIAL TRUCK OF AMERICA, INC.

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journal fuel savvy

Energy policy would help solve many U.S. problems, says Jeb Bush

NORTH

I

AMERICA’S

MOST FUEL-EFFICIENT

DRIVE SOLUTION.

1

Copyright ©2013 Michelin North America, Inc. All Rights Reserved.

See ad at right for details.

18

13MTT7020

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1

commercial carrier journal

3468_13MTT7020_XOneXDA1/3_CCJ.indd 1

Untitled-2 1

f the U.S. economy were to grow at 3.5 percent per year, it would create $4 trillion by the 10th year – the equivalent of Germany’s economy – and create more opportunity than government ever has accomplished and more revenue than any tax increase. Such growth – former two-term Florida Gov. Jeb Bush told attendees at the annual American Trucking Associations Management Conference & Exhibition in Orlando, Fla. – would be the answer to many U.S. economic woes.

“You seldom hear anyone talk about how the U.S. could regain its footing through growth,” Bush said. “It’s all about economic fairness, support for people in poverty, but not about how to lift them out. We’d be a lot more optimistic if we were growing.”

Achieving such growth would require significant changes in policy, he said, noting that the country would have to deal with issues such as the cost of health care.

“Obamacare isn’t going to bend the cost curve down – probably the other way around,” said Bush, who also called for personal and corporate tax reform. “If we simplified the code, it would create an unleashing of entrepreneurialism.”

Bush’s three-pronged approach to spurring growth starts with what he calls “a patriotic energy policy” that would exploit U.S. resources. “We have 100 years of gas reserves, yet last year, $300 billion left our country without any economic benefit to us and went to other countries, some of whom hate us,” he said. “The Former Florida Gov. Jeb Bush discussed U.S. tax policy, great news is the U.S. is energy policy, education policy and economic growth the largest producer of at the American Trucking Associations’ Management oil and gas in the world Conference & Exhibition in Orlando, Fla. today, and it could grow exponentially if we created a strategy around it.”

Bush called the combination of hydraulic fracking and horizontal drilling technology the “greatest innovation in America in the last generation,” and said that while states such as North Dakota and Texas are creating economic opportunities around natural gas, states like California and New York are missing out. He called for approving the Keystone XL Pipeline, creating incentives for energy conservation and letting market forces decide where to invest. “Government-sponsored venture capital is an oxymoron,” he said.

Bush said his other two changes needed to grow the U.S. economy are immigration reform and a radical change in the education system. However, achieving the kind of growth that’s possible with these initiatives requires leadership, he said, encouraging the audience to “use whatever influence you have to challenge every elected official that the broader good has to outweigh special interests.”

– Linda Longton

| december 2013 7/23/13 11:28 AM

7/23/13 1:53 PM

Copyright ©2013 Michelin North America, Inc. All Rights Reserved. The Michelin Man is a registered trademark of Michelin North America, Inc.

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Every MICHELIN® X One® tire is designed to help deliver exceptional fuel efficiency and weight savings. Take the new MICHELIN® X One® Line™ Energy D tire, for example. In addition to increased payload, it offers 15% more mileage1 and the best fuel economy 2 in a line haul drive tire. And when combined with the MICHELIN® X One® Line™ Energy D Pre-Mold™ retread—which also leverages Michelin’s Matrix™ Siping and Dual Energy Compound Tread technology—you can take advantage of North America’s most fuel-efficient drive solution2 without compromise. It’s just more proof that The Right Tire Changes Everything™.

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2

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13MTT6996

To learn more about the MICHELIN X One Line Energy D tire and retread—and check out our fuel savings calculator—visit michelintruck.com.

Marketpulse

T

he following information is obtained from the October 2013 Randall-Reilly MarketPulse Report, a survey of more than 200 senior executives at trucking companies who have agreed to participate monthly. The October 2013 MarketPulse Report received 92 completed responses from carrier executives.

The entire report is available online for $99 at www.rrmarketpulse.com. If you would like to participate in the MarketPulse, please email Jeff Crissey at jcrissey@randallreilly.com.

I firmly believe the new HOS regulations have made every trucking company less efficient and/or productive. Combine this with driver turnover rate and driver shortage, the future is very challenged.

– survey respondent

20

commercial carrier journal | december 2013

Untitled-26 1

Holding steady Only 10.9 percent of survey respondents see their business doing worse in the next six months. 35.9 percent believe business will be better, and executives at larger fleets are slightly more optimistic.

Much better Better

Overall

Same

Up to 100 power units

Worse

More than 100 power units

Much worse 0%

10%

20%

30%

40%

50%

60%

Time to buy?

More fleet executives are looking to grow the size of their fleets, and carriers with more than 100 power units are more inclined to do so over the next six months.

Increase the size of our fleet Replace aging equipment but keep fleet size the same Decrease the size of our fleet Make no change in our fleet

overall 41.3%

Up to 100 power Units 32.4%

More than 100 power Units 46.6%

43.5% 2.2% 13.0%

41.2% 5.8% 20.6%

44.8% 0.0% 8.6%

Marketpulse 70%

Driver shortage remains key concern 8 7

60%

1 0 9 t month ev er s be

50%

6.51

6

Driver availability 40%

5

in October 4

30% Other er 3

1

Nov.

2012

Dec.

Jan.

2013

Feb. March April

2 month ev

Fuel costs 0%

st

10%

May

June

July

Aug. Sept. Oct.

driver availability again tops the list of concerns for carriers regardless of size, but regulations have more smaller carriers worried (29.4 percent listing it as their top concern) than larger carriers (only 3.4 percent). For the second-straight month, fuel costs are not the main concern for any survey respondents.

October was pretty strong overall. Seeing signs that November may not be as strong as we projected.

– survey respondent

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or

Freight pricing

w

Freight volume 20%

1 = worst 10 = best

Carrier sentiment down in October

As reported in the october 2013 edition of the randall-reilly marketPulse report, the Carrier sentiment Index for october was 6.51 – down from the 6.73 reported in september. the index assesses the month on a scale of 1 to 10, with 1 being the carrier’s worst month and 10 being the best. the index level for carriers with more than 100 power units was 6.48 (down from 6.80 in september), while the level for those with 100 or fewer power units was 6.56 (down slightly from 6.59 in september). sourCe: rAndAll-reIlly mArketPulse rePort

commercial carrier journal | december 2013

21

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Text INFO to 205-289-3554 or visit www.ccjdigital.com/info Apple, the Apple logo, iPhone and iPad are trademarks of Apple Inc., registered in the U.S. and other countries.

App Store is a service mark of Apple Inc.

60 PC 105016

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

by Jack roberts

Are glider kits the way to start using natural gas?

D

Lower acquisition costs may help fleets make transition

Glider kits, such as this one for a 2014 Freightliner Columbia, can allow fleets to begin using natural gas trucks for less than purchasing a new dedicated LNG or CNG vehicle.

Glider OriGiNS: the concept was born in the pacific northwest logging industry when trucks were damaged by rolling logs.

TiTle TraNSfer: regulations allow fleets or manufacturers to transfer an

uring a recent visit to Salt Lake City, I learned that a partnership of existing truck title to a glider kit. companies is looking to make it easier for fleets to enter the natuimmediaTe beNefiTS: Fleets enjoy ral gas market. The key player in the cooperative effort is American lower emissions, reduced acquisition and Power Group, a manufacturer of aftermarket natural gas fuel systems. fuel costs and a higher resale value.

The company designed its patented natural gas turbocharged dual-fuel conversion system to be simple and affordable for retrofit to diesel engines or installation on new 2014 model-year glider kits. to a glider kit. The main consideration The result, says Steve Majkowski, APG’s vice president of sales and marketing, is that the glider must be powered with is a fuel-efficient productive truck that uses diesel fuel for combustion but burns a remanufactured engine and coman average 50-65 percent natural gas in daily vocational and hauling applications. ponents equal to or better than the Most appealing for fleets, Majkowski says, is the much lower acquisition cost of the truck’s original equipment. If you’re a glider kits, which he says allows fleets to begin using natural gas trucks for $30,000 Detroit Series 60 fan, for instance, you to $70,000 less than purchasing a new dedicated natural gas vehicle. can purchase a glider kit with a 1998 Other companies have joined APG to create a full-fledged natural gas package rebuilt engine that takes advantage of for interested fleets. They include the WheelTime Network, which assembles 2014 the latest emissions and fuel economy Freightliner Columbia tractors with APG natural gas fuel systems and also protechnologies – a perfect blend of proven vides natural gas glider customers with fully-certified nationwide maintenance and components and new technology. repair support. Utah-based Smith Power Products is a member of the WheelTime Majkowski says APG’s glider trucks Network. are new 2014 model-year trucks that Ervin Group USA also is assembling and selling glider trucks but primarily acts offer immediate emissions and fuel as the financing arm of this business venture, helping fleets with various financing economy benefits, including reduced and leasing packages to get them into the vehicles. Natural gas supplier Blu.LNG acquisition and fuel costs and a higher is the final piece of the puzzle; the Utah-based company is developing liquefied resale value – with or without the comnatural gas fueling stations and infrastructure throughout the nation and working pany’s fuel system – thanks to natural closely with interested fleets to get fuel to them – including a portable onsite fueling gas being a cleaner-burning fuel. The station that can be driven to a remote fleet location, be set up and begin result appears to be a highly fueling trucks in a few hours’ time. productive yet affordable Mark Meier, Smith Power Products drivetrain/natural gas sales repreway for fleets to gain valuable sentative, says confusion over glider kits and how they can benefit fleets experience with both LNG still pervades the trucking industry. The concept of a glider, Meier says, and compressed natural gas was born in the Pacific Northwest logging industry; trucks routinely were fuel while cutting emissions and saving significantly on hit by rolling logs, which bashed in cabs and bodies but left drivetrains and chassis intact. Over time, government regulations allowed fleets to fuel costs. “recycle” these trucks by replacing cabs and bodies.

Today, gliders are more a title transfer than anything else; current JACK ROBERTS is Executive Editor of Commercial Carrier Journal. regulations allow fleets or manufacturers to transfer an existing truck title E-mail jroberts@ccjmagazine.com or call (205) 248-1358. commercial carrier journal

|

december 2013

23

Volvo debuts Optimized Series regional haul truck models

V

olvo Trucks North America rolled out its Optimized Series designed to boost fuel efficiency and payload capacity for regional haul carriers. The series, now available to order, includes eight models equipped with fuel- and weight-saving specifications to deliver added value for

regional tanker, bulk haul, refrigerated, dry van and flatbed applications. As part of the Optimized Series, Volvo also is offering a mid-roof design for its VNM 430 and VNL 430 sleepers to provide additional headroom.

Volvo Trucks’ Optimized Series of

vehicles includes: • VNM 200 and VNL 300 daycabs; • VNM 430 and VNL 430 flat-top sleepers; • VNM 430 and VNL 430 mid-roof sleepers; and • VNM 630 and VNL 630 mid-roof sleepers.

Optimized daycabs, 430 sleepers and the VNM 630 feature the Volvo D11 engine with 405 horsepower and 1,550 lb.-ft. of torque, and the Volvo I-Shift automated manual transmission. The optimized VNL 630 model is spec’d with a Volvo D13 engine featuring 435 horsepower and 1,750 lb.-ft. of torque. All Optimized Series models use an aluminum fifth wheel, Michelin wide-base single tires, aluminum wheels, a 6×2 tandem rear axle configuration with a rear tag axle and Volvo’s Optimized Air Suspension rated up to 38,000 pounds.

Exceptional efficiency Volvo also expanded its fuel-efficient XE – exceptional efficiency – powertrain package lineup with the introduction of XE11 for its 11-liter Volvo D11 engine.

Available on Volvo VNM and VNL models and rated up to 80,000 pounds GCWR, XE11 is suited for less-than-truckload, distribution, bulk haul and other regional applications.

XE packages improve fuel efficiency by lowering engine rpm at a given vehicle speed, a concept Volvo calls downspeeding. XE combines Volvo’s I-Shift overdrive transmission and a Volvo engine with modified software to allow the engine to cruise with about 200 fewer rpms. Fuel efficiency improves by about 1.5 percent for every 100 rpm of downspeeding, so customers spec’ing the XE package can expect up to a 3 percent improvement, the company said.

– Jack Roberts

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

24

commercial carrier journal

WreathsThankyou_OVD1213_PG.indd 1

| december 2013

11/14/13 9:33 AM

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INBrIeF •

•

appear as early as next year. Alcoa said the MagnaForce alloy is up to 16.5 percent stronger than its current alloy, facilitating stronger and lighter wheels to help increase payload, improve fuel economy and enhance sustainability.

Navistar recalled 16,107 International trucks – model-year 2008-2013 LoneStar, ProStar and TranStar tractors – because of disoriented air lines at the isolation/vent valve on the electronic fifth wheel jaw release system that could cause the jaw to release the trailer from the tractor. Navistar dealers will repair defective air line routings for free. Owners may call Navistar at 331-332-1590; the recall number is 13514.

Westport stopped taking orders for its 15-liter liquefied natural gas engine after discussions with Kenworth and Peterbilt and said it soon would unveil its new HPDI 2.0 architecture for heavy-duty engines to make its products more manufacturable, scalable, applicable and affordable.

Westport plans to launch a 13-liter HPDI-equipped Volvo product.

The Goodyear Tire & Rubber Co. rebranded its 180 Wingfoot tire sales, service, retread and truck care centers as Goodyear Commercial Tire & Service Centers.

•

Alcoa Wheels said its new MagnaForce aluminum alloy will lead to a host of new company products that will begin to

Navistar’s International LoneStar on-highway tractor equipped with Cummins’ ISX15 engine with selective catalytic reduction emissions technology is available for order.

•

Meritor Wabco’s OnLane lane departure warning system now is available as an option on Freightliner’s Cascadia and Cascadia Evolution trucks.

•

ATDynamics announced its aerodynamic TrailerTail equipment is being deployed by refrigerated hauler C.R. England (CCJ Top 250, No. 14) on 200 trailers to reduce its total diesel fuel consumption by more than 2 million gallons per year.

•

•

Michelin’s enhanced OnCall 2.0 emergency tire service package includes real-time tracking and reporting to complement its mechanical, towing and tire services.

Double Coin Tires/CMA’s new Smart Money Fleet Program allows medium- and

800-525-0011

Monday - Friday: 8:00 aM - 6:00 pM saturday: 8:00 aM - 12:00 pM est

•

Volvo Trucks North America introduced the I-Shift automated manual transmission to the Mexican truck market at the Expo Transporte 2013 in Guadalajara, Mexico. Transportes Monroy Schiavon, the 16th-largest carrier in Mexico with 553 power units, has taken delivery of 25 I-Shift-equipped Volvo VNL tractors and will add 75 more units by yearend.

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.

OEM Quality at Aftermarket Prices

Applicable Vehicles • Freightliner • International • Mack • Peterbilt • Volvo • Kenworth

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Untitled-21 1

Goodyear’s new Smart Fleet program is designed to provide owner-operators and small fleets access to benefits normally reserved for the company’s national account fleets. Go to www.goodyeartrucktires. com/smartfleet to sign up.

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Installation available in Michigan Text INFO to 205-289-3554 or visit www.ccjdigital.com/info 9/12/13 3:56 PM

MAKING EXTRA STOPS.

PrePass enables qualified commercial drivers and fleets to bypass weigh stations at hundreds of inspection facilities across the United States. And, with PrePass Plus, these same trucks also benefit from electronic toll payment at EZ-Pass facilities – all using one transponder.

So, STOP waiting and START moving with PrePass Services. » MANAGE CSA RISK Qualify for pre-clearance to maintain a good CSA score » FUEL SAVINGS Save a minimum of up to one-half gallon of fuel per bypass » GET HOME MORE OFTEN Save at least 5 minutes with each bypass

HOURS OF SERVICE Maximize your driving & earning time GUARANTEED DATA PRIVACY Be confident that your data always remains private FUEL CARD Get fuel discounts, toll services and streamlined billing ENVIRONMENTAL PrePass weigh station technology and EZ-Pass electronic toll collection yield a cleaner and greener environment by reducing unnecessary idling

www.prepass.com | 888.361.PASS | Text INFO to 205-289-3554 or visit www.ccjdigital.com/info

EQUIPMENT

KENWORTH T880 SPECS AS TESTED MODEL: 2014 Kenworth T880 dump truck ENGINE: Paccar MX-13 POWER RATING: 485 hp at 1,700 rpm TRANSMISSION: Eaton FO-16E308LL-VCS UltraShift Plus with Hill Start Aid feature TORQUE RATING: 1,650 lb.-ft. at 1,000 rpm FRONT AXLE: Dana Spicer D2000 20K STD Track REAR AXLE: Dana Spicer D46-170HP 46K Dual HVY DUTY with pump REAR AXLE RATIO: 4.10 GVWR: 86,000 lbs.

CCJ TEST DRIVE:

Good genes

Kenworth’s T880 inherits driver-focused traits from the T680 By JACK ROBERTS

I

t’s a shame I was in Orlando, Fla. I was behind the wheel of a new 2014 Kenworth T880 dump, and there wasn’t a hill or a dirt track within miles to give it a good test.

My only option was to escape the rubber-necking tourists driving identical rental cars, here for the House of Mouse, and get as far out of town as I could.

I had power to spare, thanks to the 485-horsepower Paccar MX-13 engine.

Although I wasn’t pulling any grades or powering out of muddy potholes today, it was nice to hit the accelerator and merge smoothly into the dense traffic.

The T880, Kenworth’s new flagship vocational truck, takes its updated design cues from the company’s T680 tractor that debuted two years ago at the Mid-America Trucking Show.

Aerodynamic concerns were the guiding principle in the T680’s design,

and the T880 inherited that truck’s sleek hood and front fenders. Subtly rounded edges – most notably around the front grill, fenders and wheel wells – contribute to the clean design.

But the T880’s stance and demeanor is cut out for the rough-and-tumble world of construction. The truck stands an intimidating 13½ feet tall and 102 inches wide. Kenworth cut its teeth in the construction and logging world and isn’t about to start cutting corners on its vocational trucks today.

When the T680 debuted, engineers stressed that it was a driver’s truck, and the attributes that make the T680 such a delight to drive are present on the Continued on page 31

Mack goes pink for breast cancer awareness Mack Trucks did its part to help increase awareness of breast cancer in October by displaying a pink Pinnacle Axle Back tractor at its headquarters in Greensboro, N.C. The truck display was in conjunction with several employee events for National Breast Cancer Awareness Month, including a luncheon, a 5K celebration run and an awareness fair with vendors offering information about prevention, early detection and caregiver support.

28

COMMERCIAL CARRIER JOURNAL | DECEMBER 2013

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www.sidumpr.com Call and Ask About Our New THREE YEAR Tub Warranty

Unique One Cylinder System em Faster dump cycle times

✔ 2 year warranty on cylinder linder ✔ Exclusive Superior Tub Design center divider” allows dumping ping ✔ “No a variety of cargo materials and

dumping a distributed load, “wind rowing on the go” or stationary dumping from on-off road, ad, curbside or over bridge rails

tub made out of tough ✔ One-piece istant” Hardox AR450 “Abrasive Resistant” steel from Sweden

Air Ride Suspension Air-ride supensions offer increased stability and safety

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Sidump’r Is Looking For Dealers Interested in becoming a Sidump’r Dealer? Please email our sales dept. at sales@sidumpr.com and we will be glad to assist you in becoming a Sidump’r dealer.

1.888.743.8677 | sales@sidumpr.com

Š 2013 Old World Industries, LLC. All Rights Reserved.

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EQUIPMENT Continued from page 28 T880. This includes a new brightly lit and well laid-out instrument cluster, as well as ergonomically placed switches and controls. Even though my test truck was a daycab, there were plenty of well-placed cabinets and cubbyholes to put jackets, boots, documents, tools or a lunch cooler.

Even better, this truck was equipped with Kenworth’s slick air-ride suspension seat. This “smart seat” lowers itself to make cab entry and egress easier, then automatically returns to the correct preselected height when you’re seated.

The outstanding sightlines and mirror placements were most welcome while I was driving on a packed eight-lane freeway with carloads of screaming kids and their jittery parents darting madly around me. Making lane changes and monitoring oncoming traffic both were a breeze.

TRJN_CCJ_HP_0813.pdf

1

The T880 features a panoramic windshield for enhanced visibility and a quiet cab with triple-sealed and robust doors. Premium Diamond VIT and Vantage interior trim levels are available in two colors, Sandstone Tan and Slate Gray.

On my test truck, the MX-13 got a lot of help from the Eaton UltraShift Plus automated manual gearbox. We were lightly loaded – about 35,000 pounds – with sand, but I still was impressed at how quickly this big truck responded when I gave her the gun.

Accelerating to 60 mph before merging into traffic was not a problem, and neither was passing at cruising speed.

Steering was tight and precise; this wasn’t a truck that wandered around the lane.

8/13/13

The transmission’s intelligent shift patterns – with much needed skipshifts – made dealing with the stopand-go traffic around Orlando much easier. The MX-13 and UltraShift Plus are the perfect balance of quiet and powerful.

When mated with the cab’s advanced soundproofing and vibration-dampening technology, the result is a truck that allows for civilized conversation between driver and passenger – even at full throttle on a construction site.

7:07 AM

Whether cruising down the highway, or parking overnight, Trojan’s OverDrive™ AGM 31 battery gets your fleet there. With 730 cold cranking amps, the OverDrive AGM 31 delivers outstanding starting power plus the staying power to manage your electric APU, inverter, heavy-duty liftgate operations and reefer unit needs on and off the road.

Unlike traditional dual-purpose AGM batteries, Trojan’s deep-cycle AGM features superior product enhancements. The robust plate construction, heavy-duty corrosion resistant grid, high-density paste plus a rugged polypropylene case means you’ll get the most out of this high quality, durable and reliable battery.

Contact us today to learn more about how we can get you there.

800.423.6569 or + 1.562.236.3000 Text INFO to 205-289-3554 or visit www.ccjdigital.com/info COMMERCIAL CARRIER JOURNAL Untitled-16 1

|

DECEMBER 2013

31

8/13/13 1:44 PM

“WE’VE HAD TRAILERS COME BACK AFTER 10 YEARS FOR REPURPOSING AND THE PAINT STILL LOOKS GREAT.” MIKE FENTON HEAD PAINTER KENTUCKY TRAILER TECHNOLOGIES WALLED LAKE, MICH.

PROVEN TECHNOLOGY GOOD REASON TO CHOOSE THE DELFLEET® EVOLUTION PAINT SYSTEM. • Exceptional durability • Superb gloss • Matched to OEM standards, variants and alternates • Superior chemical and corrosion resistance • Panel match capability • 3-, 5- and 7-year warranty options • PPG Commercial 20 Group of peer-to-peer knowledge sharing For more information, contact your local PPG Commercial Coatings distributor or visit ppgcommercialcoatings.com.

©2013 PPG Industries All rights reserved.

The PPG logo and Delfleet are registered trademarks of PPG Industries Ohio, Inc.

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

technology To determine a vehicle’s fueling target, PedalCoach connects to the J1939 databus to perform instantaneous calculations using ECM data. The fueling target is dynamic, but the green area on the gauge stays static.

Keeping it in the green In-cab ‘coach’ helps TDC boost mpg

T

his past spring, an experienced driver at Transport Distribution Co. noticed that his fuel performance scores was improving every day. A few weeks earlier, Steve Page, vice president of safety for the Joplin, Mo.-based company, had placed in the driver’s truck an Android device loaded with the PedalCoach application. All Page gave the driver was a simple instruction: “Keep this thing in the green.”

The “thing” is a needle that represents the rate of fuel flow to the engine. The “green” is an area on the PedalCoach gauge, below the yellow and red areas, that represents the fueling target – the appropriate amount of fuel to give the truck at any given moment based on real-time operating conditions.

To determine a vehicle’s fueling target, PedalCoach connects to the J1939 databus to perform instantaneous calculations using electronic control module (ECM) data. The fueling target is dynamic, but the green area on the gauge stays static. PedalCoach’s patent-pending algorithms can infer a lot about the truck, starting with the first acceleration event; it knows if the truck is pulling a trailer and how much it weighs.

“The driver can feel how much he’s got, and so can we,” says Jeff Baer, founder and chief executive officer of LinkeDrive, the developer of PedalCoach. Baer, a mechanical and systems engineer, once was the engine calibrator for Ford Motor Co.

technology Making the latest technology developMents work for your fleet

by AAron Huff

Baer says the green zone, or fuel target, works according to the laws of physics and chemistry; “staying in the green” is a way to create and preserve momentum efficiently. “The green zone represents the equilibrium between drivability and fuel economy,” he says.

While driving, drivers can see the needle and hear audible alerts from PedalCoach; for every mile driven in the green zone, PedalCoach makes the “cha-ching” sound of a cash register. At the end of each trip when the ignition is turned off, drivers see their score on a scale of 0 to 100. The score answers the question: “Did you do the best you could with what you had?”

Before using PedalCoach, the TDC driver was averaging 5.8 mpg with a 14-liter engine. Within a few weeks, he was getting 6.8 mpg, Page says. After six months of using PedalCoach with a variety of drivers, TDC saw a 12 percent mpg improvement.

“Keeping it in the green” turned out to be an enlightening experience for the driver. “He was trying to sell me on what he was doing to change the Not a real-time view: TDC used score,” Page says. “The to print infrequent mpg reports to things he was trying review with drivers. to sell me on were the things we’ve been FueliNg target: PedalCoach depreaching all along. termines the right amount of fuel the truck needs at any given moment.

He calls it ‘learn to feather the pedal.’ We Peer comParisoN: Drivers always call it ‘reduce rpms.’ ” are aware of their performance and Real-time adaptive how it compares with others. fuel coaching is a paradigm shift for TDC. Before PedalCoach, TDC was training drivers by downloading data from ECMs. Page would review ECM reports with drivers to reinforce positive behaviors such as progressive shifting and “time in top gear.” He also pointed out negative behaviors like hard braking and speeding.

The ECM reports were run once every 18,000 to 19,000 miles during service intervals. “By then, drivers didn’t remember what they did wrong,” Page says. With PedalCoach, drivers always are aware of their performance and how it compares with others in the fleet. “You start learning how to drive that truck,” he says. aaron huff is senior editor of Commercial Carrier Journal. e-mail ahuff@ccjmagazine.com or call (801) 754-4296. commercial carrier journal | december 2013

33

technology

INBrIeF •

Omnitracs added two enhancements to its Critical Event Reporting (CER) application: Over Speed Events (OSE) and integrated Following Time Violation (FTV) and Forward Collision Warning (FCW) sensors. Omnitracs also added Tire Pressure Monitoring (TPM) and Trailer Tire Inflation Alerts (TTIA) applications to its Vehicle Diagnostics suite.

•

Jump Technologies announced a planned vs. actual reporting enhancement for its JumpTrack proof-of-delivery product designed to provide insight about their drivers’ delivery efficiency.

•

Trinium Technologies announced an interface with LoadMatch.com’s intermodal equipment posting services, allowing intermodal fleets using Trinium’s enterprise software to manage container/ trailer dispatch planning and execution to push empty equipment data to the LoadMatch service automatically.

•

Telogis announced its expanded Navigation 5 – also sold through partners as NaviGo powered by Telogis – with new driver-oriented features designed to

U-JOINT PULLERS

make it easier to use and give companies access to accurate and timely road-condition information.

•

Rand McNally announced TrueTrack, a Web-based application designed to allow fleet managers to control the in-cab routing experience and track a driver’s adherence to predefined routes.

TrueTrack is powered by the company’s IntelliRoute navigation software.

•

Navman Wireless USA announced a new satellite communications option for its OnlineAVL2 fleet tracking platform designed to enable continuous visibility of both heavy equipment and on-road vehicles used in construction, surface mining, mining, oil and gas exploration and other environments with remote location work.

•

Orbcomm, a global provider of machine-to-machine systems, launched its self-powered GT 1100 trailer tracking platform that uses solar recharging technology.

•

SkyBitz, a provider of remote asset tracking and information management systems, released InSight Trends, a flexible and customizable visual dashboard

WHEEL STUD SERVICING

designed to improve visibility into asset performance.

•

Spireon, a provider of mobile resource management and business intelligence solutions that connect companies to their mobile assets and workforces, launched its new optimized GPS mobile platform for its FleetLocate and VehiclePath Fleet customers.

•

Pegagus TransTech – a provider of electronic revenue cycle, document management and invoicing systems – announced Frank Adelman has been named president and chief executive officer as part of the company’s longterm succession plan. Adelman, who joined the company in 2004, replaces Bob Helms, who is retiring as chairman and CEO to pursue other interests.

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commercial carrier journal | december 2013

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

technology

in focus: Smartphone appS

Load tracking for the masses Apps can keep tabs on both drivers and shipments by aaron huff veryone with a smartphone or tablet has access to a big and expanding universe of mobile applications. How big? For the trucking industry alone, there are more than 14,000 apps in the Google Play and App Stores.

If you can think of something that is beneficial to you as a motor carrier, broker, owner-operator or driver to work more efficiently and accurately, chances are there’s already an app for that.

Let’s start with the common point of frustration between carriers, brokers and drivers – the daily check call. The call is always the same question(s): “Where are you now? When do you expect to get there?” Or perhaps in a more abbreviated form, “What’s your 20? What’s your ETA?” To automate check calls and other routine driver communications, asset-based carriers often will spend more than $1,000 per truck for the hardware and $50 a month in wireless costs to track loads and capture shipment information.

Today, any nonasset logistics providers can get the same shipment tracking capabilities despite major differences in the technology used by their contracted drivers and vehicles.

Instead of requiring drivers to call periodically to report load status and other details, a broker could send a text message straight to a driver’s cell phone. The text could include a link to a tracking app once the driver accepts the load.

With the driver’s permission, the company begins tracking. Location information flows from the driver’s GPS handset to a website or directly into the company’s transportation management software.

E

Whatever hardware or wireless provider the driver is using becomes irrelevant.

Pegasus TransTech now offers a free tracking app to complement its Transflo Mobile app that drivers can use to capture images of paper documents to speed the billing and payment process. All a driver needs to use the Transflo Load Track app is an iPhone, Android smartphone or tablet, and Overdrive’s free Trucker Tools app. The Trucker Tools app, used by more than 200,000 drivers, comes preloaded with Transflo Load Track.

Within Trucker Tools, the driver clicks on the Load Track icon and touches a large button to start the track. The app automatically sends the location to the broker in five- to 15-minute increments.

Even with frequent shipment updates, the driver doesn’t have to worry about losing data from his plan.

“Load Track doesn’t use that much data,” says Prasad Gollapalli, chief executive and founder of Salebug.com, the company that developed Load Track. If a driver uses the app for five loads, with each load taking a day-and-a-half to complete, the amount of data usage is the same as opening a Facebook page one time. “We’ve also fine-tuned the app to not use much battery,” Gollapalli says. “It

stays in the background and only comes up when needed.”

If a driver wants to stop the truck and go off-duty, he could push a “stop” button.

The driver could also push a “pause” button to the carrier or broker know not to call for eight hours while he is sleeping.

Drivers also can share their tracking information with a family member for free; the cost – $1 per load tracking event from start to finish – is paid by the broker.

Pegasus TransTech now offers a free tracking app to complement its Transflo Mobile app that drivers can use to capture images of paper documents to speed the billing and payment process. commercial carrier journal | december 2013

35

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Ready.

Set. Learn.

CCJ and its CCJ Innovators partners are proud to provide a series of podcasts that highlight the achievements of recent Innovator honorees.

The CCJ Innovators program profiles fleets that have shown initiative in addressing critical areas in their businesses: • • • • • •

Operational efficiency Use of information technology Customer relations Maintenance practices Employee recruiting and retention Safety

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Archives of past Innovator articles, webinars and podcasts are also available online.

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INNOVATORS

M&M Cartage has big plans to become the greenest carrier in Kentucky

I

BY AARON HUFF

n 1972, Don Hayden began working at M&M Cartage under his father’s tutelage. Hayden always enjoyed working for his dad and being around trucks.

Diesel must have been in his blood, he says.

In the late 1990s, Hayden was the one making the decisions and on his way to becoming chief executive officer of the Louisville, Ky.-based family business in 2003. Moving forward, diesel does not fit in his plans for M&M Cartage.

About four years ago, Hayden turned down a path that would lead to a decision to convert to natural gas. It all started by studying the new technical developments and products that soon would be entering the Class 8 market.

“I started trying to learn all I could,” he says. By the end of 2011, Hayden was convinced that natural gas would be a viable option for M&M Cartage, which hauls dry van and flatbed truckload shipments in 24/7 relay operations between its terminals in Louisville, Indianapolis, Cincinnati and Morristown, Tenn.

The company’s current business model is a far cry from its origins as an expe-

M&M CARTAGE Louisville, Ky. dited hauler for commercial airlines and less-than-truckload carriers in Louisville and surrounding regions.

Over time, M&M Cartage had to cede airfreight business to FedEx, but in the early 1980s, it already was pursuing new post-deregulation opportunities in truckload transportation.

Going forward, M&M Cartage will be a leader in green transportation, Hayden says. As part of this goal, the company will invest $7.5 million in building materials and capital equipment. The construction of a new headquarters with green efficiencies soon will be underway. Adding new trucks powered by compressed natural gas already has started.

Last year, Hayden decided to begin replacing 120 of the company’s 170 trucks with new CNG-powered trucks, a conversion that falls in line with M&M Cartage’s replacement strategy for its fleet. All of the 120 tractors are model-year 2006 and older.

The company’s lifecycle strategy has been to overhaul engines and cab interiors at the 800,000- to 1-million-mile mark. At 1.6 to 2 million miles, it then replaces trucks after 10 years in service.

With this strategy, all 120 are due for replacement by 2016.

Hayden says when running the numbers, the knowledge he gained about CNG equipment entered into the analysis. The numbers were convincing enough to make the natural gas leap – even without grants or other financial incentives from state or fed-

The company is investing $7.5 million in new CNG-powered trucks and a new headquarters with green efficiencies.

COMMERCIAL CARRIER JOURNAL | DECEMBER 2013

39

eral government agencies.

“If my forecasts are right, there are some serious savings here and efficiencies,” he recalls thinking at the time.

“If that’s the case, I’ve really got to pay attention and do more homework.”

Once Hayden’s analysis was finished, he continued to visit with vehicle and engine manufacturers. During this exploratory period, he met with the Kentucky Clean Fuels Coalition, a nonprofit group that provided the additional resources and assistance that M&M Cartage needed to make natural gas fit within its operations.

As M&M Cartage went down this path, Hayden remembers a colleague in the trucking industry asking which customer was forcing this change on his company.

“Nobody is pushing us,” he replied.

“We are hoping to make ourselves more marketable and attractable. Our customers have the same desires and concerns.”

Zero-waste operations As Hayden continued to explore CNG, he paid a visit to a truck manufacturing plant, where something besides natural gas captured his interest. The manufacturer took pride in its plant being a zero-waste facility. All byproducts and waste from the manufacturing process were being reused and recycled. Even the paint sludge had a second life.

“How are they doing that?” Hayden recalled wondering. He couldn’t help but think about the two dumpsters M&M Cartage was filling with refuse from one office and maintenance facility.

Besides converting his fleet to natural gas, Hayden began working on plans to build a new facility. The site selection process has been completed, and construction likely will start in early 2014. By the time the new headquarters opens in the third quarter, Hayden anticipates having everything in place to be a zero-waste Leadership in Energy 40

45 new jobs by the end of 2015.

While some of the new employees will be drivers, a larger portion will be technicians. The company has developed a strategy to recruit the right candidates and provide them with training and certification to work on natural gas vehicles, he says.

Hayden also plans to create a new company position – a “green captain.”

Job responsibilities will include staying informed and helping to execute options and strategies to reduce waste and emissions.

M&M Cartage CEO Don Hayden, at podium, joined Louisville Mayor Greg Fischer (pictured) and Kentucky Energy and Environment Secretary Len Peters to announce the addition of CNG trucks to the company’s fleet.

and Environmental Design (LEED)certified facility.

Features planned for the new property include a large rainwater retention basin and solar panels to generate electricity for exterior lighting. The new headquarters will have between 10,000 and 20,000 square feet of warehouse and cross-dock space and be equipped and certified for maintenance of natural gas vehicles.

M&M Cartage is working with Kentuckiana Clean Fuel on an onsite CNG station scheduled to be in operation early next year. The station will be used as the primary fueling location for its own fleet and will be open to the public for both fast-fill and time-filled natural gas fueling. The company currently uses two offsite fuel facilities: one at Waste Management Inc. in Louisville, the other in Sellersburg, Ind. As part of planning the move to CNG vehicles and to the new facility, Hayden worked with the Louisville mayor’s office and Kentucky Cabinet for Economic Development to create a tax incentive plan worth $800,000 to spur the investment, which will create

COMMERCIAL CARRIER JOURNAL | DECEMBER 2013

Evolving changes M&M Cartage placed its first CNG tractor into service in February. While the tractor was one of the first models available and had some limitations, the company has been able to use it on regular routes.

“The decision was all about trying to get ahead of the curve,” Hayden says.

As M&M Cartage steadily switches the majority of its fleet to newer CNGpowered trucks with the latest technologies, the company does not have immediate plans to expand its fleet beyond 170 trucks, he says.

In addition to fulfilling his duties as M&M Cartage CEO, Hayden hopes to serve on the executive committee of the Kentucky Clean Fuels Coalition to promote the use of alternative fuels in transportation. In this role, he will be helping other carriers explore the benefits of natural gas. He also believes the experience will provide networking opportunities to work with like-minded shippers.

“For the path forward, we will inspire our employees, customers and anybody who comes across us,” Hayden says.

“We want to make an impact on people who want to make changes.”

CCJ INNOVATORS profiles carriers and fleets that have found innovative ways to overcome trucking’s challenges. If you know a carrier that has displayed innovation, contact Jeff Crissey at jcrissey@ccjmagazine.com or 800-633-5953.

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Extra miles in every bottle

technology: driver training Green Bay, Wis.-based Schneider National has developed an integrated learning model that consists of instructor-led, computer-based and simulation training to deploy the most effective training to drivers at the lowest overall cost.

targeted training With technology, carriers move aWay from ‘one-size-fits-all’ approach By aaron huff

L

ast August, a C.R. England truck was sideswiped at an intersection. A few hours later, Marcus Edwards, the company’s director of corporate safety, saw the event unfold from his desk. Immediately, he knew the driver was innocent. The truck remained stopped until the traffic light turned green.

Salt Lake City-based C.R. England, the nation’s largest refrigerated carrier (CCJ Top 250, No. 14), currently is testing two video-based driver risk management (DRM) systems. Cargo Transporters (CCJ Top 250, No. 214) has had similar experiences using a 46

commercial carrier journal

| december 2013

video-based DRM system.

Last winter, a Cargo Transporters driver was on a two-lane road near the company’s headquarters in Claremont, N.C. While rounding a corner, a passenger car coming from the opposite direction drifted into his lane.

Instinctively, the truck driver moved over to the shoulder. The car continued on its deadly path but only clipped the truck’s bumper. The video showed the truck driver had avoided a head-on collision by swerving off the road and overturning his rig.

“The car driver told the state trooper at the scene that he was reaching for his cell phone,” says John Pope, Cargo Transporters chairman. Even without this confession, the company had convincing evidence.

While the number of truck crashes has been trending down for a number of years, accident–associated costs are rising sharply. On average, a single fatality costs $7 million; big judgments of $10 million and more are common. According to the Federal Motor Carrier Safety Administration, the average payout per injury is $321,000; for property damage, $13,000.

While video evidence can help put an end to frivolous lawsuits, the real reason video-based DRM systems are growing in popularity is to help eliminate accidents.

The technology can help identify risky behaviors early and give fleets and drivers an effective training tool to eradicate mistakes that otherwise might become costly.

Caught on Camera C.R. England has been testing systems from the two largest providers of video-based DRM technology: SmartDrive and Lytz, formerly known as DriveCam. Both continuously record forward-looking

technology: driver training

The days of ‘one-sizefits-all’ training are over.

– Don Osterberg, senior vice president of safety and security, Schneider National and cab-facing video and vehicle operating data.

The only footage that makes it out of the truck is short clips when risky driving events occur. The clips show what happened before, during and after an event such as a sudden lane change, a rapid acceleration or deceleration or rolling through a stop sign.

SmartDrive and Lytz upload the video clips and data surrounding risky events from the onboard device to cloud-based servers through cellular networks. Before the next business day, the events are reviewed by behavior analysts who score events according to individual fleet policies. Any contributing factors or non-safe behaviors – such as distraction, fatigue or not using a seatbelt – are noted. Fleets then manage the events using robust online portals.

“If we see an incident that is unsafe, we contact the driver and tell him what we’ve seen,” says Edwards. “Depending on the severity, we will bring him in and go over the action, put an action plan in place and reprimand. We may even disqualify them from driving.”

SmartDrive recently added alerts and data from third-party active vehicle safety systems such as Meritor Wabco, Bendix and Mobileye. High-risk events are separated from low-risk events and combined with onboard video, audio and vehicle data to provide a unified view for driver coaching.

Lytz’s latest portal, version 3.0, has role-based user dashboards with customized key indicators, including a ranking of drivers according to their accident probability. Individual events also are ranked and displayed by severity in a “to do” list tied to a workflow that is designed to improve “coaching moments” with drivers.

Lytz also has a mobile version of its portal for the iPad so that fleet managers can review video clips and coach drivers while outside the office. Drivers also can visit a website for in-cab coaching.

Driver acceptance One difficulty with implementing a video-based DRM system is acceptance from drivers who may view such in-cab devices as an invasion of privacy.

“Some drivers don’t like it,” Edwards says. “They feel the truck is their house.” Drivers are more receptive once they understand how the system works, but others may continue to have reservations. “Some have bad driving habits and don’t want a camera,” he says.

Bozutto’s – a Cheshire, Conn.-based wholesale distributor of

food and household products to retailers in 13 New England and Mid-Atlantic states – is in its third year of using SmartDrive.

To say the company’s 280 drivers initially were reluctant about having an in-cab camera would be an understatement, says Tom Halpin, transportation safety manager.

During the rollout, Bozutto’s held a town hall-style meeting to try to ease drivers’ concerns. “The initial rollout was a hostile environment,” Halpin says. “Drivers didn’t like it at all.”

Halpin remembers a much different meeting six months later; Bozutto’s drivers were applauding the system for exonerating their peers from wrongdoing and the dramatic difference it had made to the company’s safety record. Accidents were down, and Compliance Safety Accountability scores had improved.

The company’s Behavioral Analysis Safety Improvement Category (BASIC) score for Unsafe Driving had dropped from 27.1 to 7.8, accidents had fallen by 22 percent, and seatbelt and cell phone violations were down from 30 per year to zero. For the first time in recent history, the company’s insurance carrier did not raise its rates.

“We went from nonacceptance to 360-degree acceptance,” Halpin says. “Now, our drivers would be hesitant to take it out.” computer training On Nov. 3, 26 new drivers started a training program at Maverick Transportation (CCJ Top 250, no. 84). All had been hired with less than six months of driving experience.

Similar groups have been coming to Little Rock, Ark., since August 2005, when Maverick began taking drivers straight from commercial driver’s license schools. Most say the success rate of the training program is their top reason for choosing to launch a trucking career with the 1,200-truck fleet.

SmartDrive’s integration with third-party active safety systems captures additional data to better determine the difference between a high-risk and low-risk event. commercial carrier journal

|

december 2013

47

technology: driver training

Salt Lake Citybased refrigerated hauler C.R. England has been testing video-based DRM systems from both SmartDrive and Lytz.

Drivers must score at least 90 percent on the academic and hands-on assessment tests each week to advance in the program.

While the curriculum is not easy, less than 4 percent will drop out because instructors know immediately which drivers will need extra attention and resources to make it through, says Curt Valcovic, director of training.

Maverick uses what it calls its Computer Driver Training (CDT) learning management system (LMS) from EBE Technologies to streamline its training process from start to finish.

Before drivers arrive, Valcovic builds classes from the queue of drivers in CDT. Information feeds into CDT directly from Maverick’s paperless driver recruiting and hiring system, also from EBE. CDT provides real-time visibility of the driver training process.

From an iPad or any device with an Internet connection, Valcovic can monitor drivers’ progress and quickly identify those having difficulties with learning. He can assign tutors to help them advance to the next phase.

“The neatest thing about computerized driver training is it allows me to see people’s issues a lot quicker,” he says. “It is allowing me to not dismiss people that I would have dismissed in the past.”

For fleets with a mixture of classroom and remote training, Pro-Tread modules can be used effectively in either setting. Holding a safety meeting on winter driving becomes more effective when drivers are assigned to complete a Pro-Tread lesson beforehand, says Jim Vorhees, chief executive officer of ITI; this gives drivers and the instructor a common point of reference.

The instructor could use the classroom time to talk about specific instances to apply the information learned, such as where to stop to chain up heading westbound on I-70 from Denver. “You would not have to introduce the topic cold,” Vorhees says.

J.J. Keller’s interactive on-demand training center at www.jjkellertraining.com includes an LMS that fleet managers can use to enroll drivers in courses – both basic and master levels – and track their progress. The system can track when drivers logged in and for how long, what courses they completed and their scores. Classroom training also can be recorded in the LMS. Carriers can customize the front page of the portal that drivers see, such as a welcome message with a company logo. Because the training is interactive, drivers can complete the online courses at their own pace.

inTegraTed learning Schneider National (CCJ Top 250, no. 6) has developed an integrated learning model that consists of instructor-led, computer-based and simulation training. The integrated model enables the Green Bay, Wis.-based fleet to deploy the most effective training to drivers at the lowest overall cost, says Don Osterberg, senior vice president of safety and security.

Schneider recently completed an integrated learning project to increase fuel economy and safety. The project was initiated by an analysis that found a correlation between fuel-efficient driving Training on demand and safe driving, Osterberg says. Drivers that exhibit aggressive Online computer-based training modules and LMS make it behaviors like hard braking also are more likely to have poor fuel possible for carriers to assign consumption. courses to drivers to complete Once the target list of drivIn June 2011, almost immediately after Cargo Transporters began using Lytz – when it was known as DriveCam – the Claremont, N.C.in the office, at home or in ers was identified, Schneider based fleet began to focus on drivers not using seatbelts. the cab. Commercial offerings routed them into its network come with a wide variety of service centers; Schneider has prebuilt courses, and some full-scale driver simulators at allow carriers to customize the each facility. First, a simulation training to their specific needs. check ride captured drivers’ The instructor-free apmpg performance; next, drivproach to training always has ers viewed a computer-based been integral to the Pro-Tread training model on fuel-efficomputer-based programs cient driving. from Instructional TechnolAfter repeating the simogies Inc. The system keeps ulation model, drivers saw electronic records of when an instant difference in their drivers complete each training mpg performance by applying module, as well as their results. the tips and techniques they 48

commercial carrier journal

| december 2013

technology: driver training learned from the computer-based training, Osterberg says.

Schneider’s drivers also complete an integrated training module if they have a low-severity crash incident or are cited for unsafe driving. The company previously assessed these incidents solely through the lens of drivers having a skill deficiency; it now uses technology to determine if the incident was skill- or behavior-related.

A simulation check ride to assess skills versus behavior replicates the conditions of the incident. If the driver succeeds in the check ride, he likely has the skill, so the incident probably was caused by a behavioral issue. The results of the test are mapped with the appropriate intervention.

“The days of ‘one-size-fits-all’ training are over,” Osterberg says.

Customizing the training to meet the specific needs of each driver is where the success lies. “Technology enables us to do that more effectively.”

In-cab coachIng Terpening Trucking uses its 60-plus tanker trucks to deliver more than 400 million gallons of fuel products across seven states and Canada annually. The Syracuse, N.Y.-based company is using Vnomics’ In-Cab Advisor system to coach drivers in the cab.

Drivers receive audio alerts for improper speeding, shifting, hard acceleration and idling. Drivers can view their performance

scorecards in the cab, allowing them to manage their own progress throughout the day.

Each day, Terpening supervisors use an online portal to review Vnomics’ driver safety and performance alerts to address adverse behavior. The top- and bottom-ranked driver scores also are displayed on a large screen in the drivers’ break room to encourage friendly competition.

Vnomics has developed proprietary algorithms that calculate the “true” fuel economy of vehicles and drivers; load weight, terrain, temperature, headwind and other factors are removed from the mpg equation. The system also identifies the “potential” fuel economy based on the variables drivers and fleets can control.

After partnering with Vnomics, Terpening improved its fleet mpg by 9 percent in the first two months of use and by 9.8 percent within the first two years. Safe driving miles also have increased by 73 percent, says Brian Brundige, safety director.

Terpening credits the cost savings and performance gains from using Vnomics for accelerating its growth. In 2010, when Terpening first integrated the Vnomics system into its vehicles, the company had 36 tanker trucks.

Face-to-face training meetings still are effective, but for many fleets, such opportunities with drivers are limited. Engaging drivers online and through smart devices might be the best strategy to sustain their interest.

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|

december 2013

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9/12/13 8:50 AM

Could rail technology from Europe transform trucking in the States?

A

by Jack RobeRts

lternative fuel vehicles are all the rage these days, and interest in their possibilities for commercial vehicles has not diminished even as prices for traditional fuels continue to fall. But regardless of whether the cost at the pump rises or falls, the demand for fossil fuels continues to escalate. Today’s alternative fuel strategies are all about diverting resources away from the most globally popular fuels – diesel and gasoline – to avoid future price spikes and shortages.

At the moment, the abundant supply of domestic natural gas in the United States is driving growth for alternative fuel trucks running proven engines and technology, with the limiting factors on more growth being the lack of fueling infrastructure and high acquisition costs.

All-electric vehicles also show some promise in limited applications. Fleets such as FedEx and UPS are experimenting with all-electric delivery vans in urban applications, and these vans already are being used with success in European cities. The main concern in the United States is the relatively short range of the vehicles and the resulting “range anxiety” experienced by both fleets and drivers. On the other hand, all-electric vans use no fossil fuels and don’t produce any emissions – particularly attractive benefits in smog-plagued cities such as Los Angeles or Houston.

Experiments in Germany and California with another type of electric truck soon could have fleets considering another way to move freight. The Siemens company, based in Munich, Germany, has long been a leader in railroad technology, and today the company is taking many of its proven rail components and concepts and rethinking them with a goal toward creating an all-new type of highly-efficient low-emissions commercial vehicle.

50

commercial carrier journal

| december 2013

A highly flexible system Siemens calls its concept the eHighway Project – an elegant and sophisticated solution that the company hopes has the potential to revolutionize the way freight is hauled along dedicated eHighway corridors in the United States.

At the heart of the concept is a diesel-electric hybrid truck.

Unlike hybrid trucks in the States, this vehicle uses a constantstate diesel engine to drive a high torque-output electric motor – the same principle used to drive diesel-electric locomotives around the world.

In this mode, the Siemens hybrid drive system allows the truck to behave much like a conventional diesel truck: The driver is in control of the vehicle and can change lanes and maneuver on freeways and in tight urban surroundings exactly as he would in a truck today.

The twist comes when the vehicle pulls into a dedicated “eHighway” lane that features overhead electrical lines powered by substations – a technology familiar to anyone who’s been to Europe or a major Asian city and rode the subway or trains there.

Once the truck has been maneuvered into an eHighway lane, a continuously-monitoring sensor in the truck’s nose detects the presence of the overhead power lines and automatically deploys a prong-shaped wand called a pantograph. This is the relay system that makes contact with the power lines and acts as a conduit for the electrical power now flowing from the lines and directly to the vehicle’s electric motor.

Holger Sommer, eHighway project manager for Siemens, says the company decided from the outset that its electric truck lane concept would have to be highly flexible and allow conventional truck traffic to use the eHighway lanes if it was going to be successful. It would not make sense from a funding, infrastructure or efficiency standpoint to build exclusive electric truck lanes, Sommer says.

To that end, Siemens engineers developed a completely new pantograph design with a highly intelligent control system. The

EQUIPMENT: ELECTRIC TRUCKS

Once the diesel-electric hybrid truck has been maneuvered into an eHighway lane, a continuously monitoring sensor in the truck’s nose detects the presence of the overhead power lines and automatically deploys a prong-shaped wand called a pantograph.

The pantograph wand relay system makes contact with the power lines and acts as a conduit for the electrical power flowing from the lines and directly to the vehicle’s electric motor.

pantograph not only moves up and down to make connection with the power lines, it also moves side-to-side to maintain contact and counteract normal steering input from the driver.

Most importantly, the system is highly flexible: Once on the grid, trucks are not stuck in position as if they were on a slot car track.

Nor are they locked into a predetermined shared speed: Vehicle speed remains completely under the driver’s control.

If the truck needs to pass a slower truck in the eHighway lane, the system automatically disconnects from the power grid as

the truck pulls out of the lane. Once the slower vehicle has been passed and the driver returns to the eHighway lane, the system automatically reengages the power grid.

The driver also retains full control of all braking and steering functions in electric drive mode – just as he would with a conventional diesel truck, Sommer says. Even better, any kinetic energy generated by a truck connected to the wires is put back into the grid automatically, where it can be used by other trucks.

If the sensor in the truck’s nose is not functioning, the driver

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EquipmEnt: ElEctric trucks can disengage the system manually with the push of a button on the truck’s dash.

Can Costs be Controlled?

The system’s advantages are considerable, Sommer says. Since the vehicle essentially is an electric truck with an onboard constantrate diesel engine, it can produce immediate high torque outputs without fuel consumption spikes. Lower-displacement diesel engines power the trucks and run continuously in their most efficient modes, drastically reducing fuel costs and dramatically cutting vehicle emissions, he says.

Siemens has been testing the system extensively in Europe with modified Mercedes-Benz Actros trucks and is confident enough in its progress that preliminary work has begun on building evaluation lanes in California to test the system for use in the United States.

The initial plan is to develop a one-mile stretch of highway near the Port of Long Beach at a cost of $14 million, for which the California Air Resources Board now is seeking funding. In addition to validating the eHighway concept in real-world trucking conditions, the tests also will seek to determine estimated vehicle and infrastructure costs.

Siemens stresses that the overall infrastructure impact in terms of investment and construction is relatively mini-

If a driver needs to pass a slower truck in the eHighway lane, the system automatically disconnects from the power grid. The system automatically reengages the power grid when the driver returns to the eHighway lane.

mal, and that the system can be installed easily on existing highways and roads – although the Los Angeles Times has estimated a cost between $5 million and $7 million a mile to convert roadways to eHighway use.

It remains to be seen if the California tests will prove out the eHighway concept in the States – and moreover, if the technology can be scaled up for public use within a cost structure that is acceptable to both taxpayers and fleets.

Despite what would appear to be considerable investment in infrastructure and assets, the concept seems to hold promise – and will be interesting to watch as it unfolds.

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commercial carrier journal

| december 2013

BACHELOR’S

2013

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

HOW TO

USE FINANCIAL STATEMENTS

The following is an excerpt from How to Use Financial Statements, a manual produced by Commercial Carrier University and sponsored by Chevron Delo and Sprint. 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.

Business owners often ask, “If I pay off my bank debts, I can count that off on my taxes, right?” The question exposes a fundamental misunderstanding of the “basis of accounting” upon which financial statements are built. Learn the difference between the three main bases of accounting: accrual, cash and tax. As a result, your understanding of financial statements will grow dramatically.

A basis of accounting is nothing more than a set of rules that the accountant follows in preparing the reports. It tells him when to count certain transactions in the records, and how to do it.

The “when” is the biggest difference between the accrual method and the cash method of accounting.

The “how” is the biggest difference between the accrual method and the tax method.

The American Institute of Certified Public Accountants has developed accounting rules over time. Between generally accepted accounting principles, known as GAAP, and the actual rules established by various professional and regulatory boards, there’s a set of

54

COMMERCIAL CARRIER JOURNAL

practices to help all companies report profit and loss in basically the same manner. This allows for apples-to-apples comparisons between companies.

For companies with publicly traded stock, the financial statements are the only real measuring sticks for investors. Inaccuracies or inconsistent practices lead investors to make the wrong decisions, and then lead them to the courthouse. To keep companies and their managers honest, the Securities and Exchange Commission and the AICPA require all companies to report profit and loss in the same manner. These rules frequently are referred to as GAAP. Accountants must comply with these rules and disclose in their reports when they are violated — or risk losing their licenses.

Even privately held companies must follow most of these rules. Thus, your accountant gets mighty nervous if you suggest — knowingly or unknowingly — a treatment or practice of accounting that breaks the rules.

Accrual basis means that a transaction is recorded when it happens, regardless of when cash actually changes hands. Consider

| DECEMBER 2013

how you might treat the revenue from a single haul. The accrual basis records the event when the haul is completed. The accountant enters the revenue on the P&L and logs an accounts receivable on the balance sheet. When the cash finally arrives, there is no further effect on the P&L. But the balance sheet changes, as accounts receivable is reduced and cash is increased.

Thus, the accrual basis “matches” revenues and expenses in the same period. You record your revenue when your hauls are completed, whether or not the money is received during that period.

Likewise, you record your expenses when you incur them. Some you pay in cash, some you might owe as accounts payable.

Most companies use accrual basis, especially as they grow. That’s because banks and other lenders typically require you to report under the accrual basis in the loan agreements you sign.

The bigger the loan, the more lenders have to lose, so the more they insist that you tighten your accounting practices. For loans of $1 million to $3 million or larger,

COMMERCIAL CARRIER UNIVERSITY lenders often require a review statement by an accounting firm. Since reviews (and audits, too) require the accountant to list any departure from GAAP or accrual, you must move to full accrual-basis accounting at that point.

Cash basis means that you don’t record a revenue or expense item until you receive or write the check.

Continuing our example, if you use cash-basis accounting, you don’t record anything when you complete the haul unless, of course, the shipper or receiver pays on the spot.

When the check arrives, you record it on the P&L as revenue and on the balance sheet as cash. Few companies use the cash basis to keep their books, and there are lots of reasons not to do it.

First, it doesn’t give a clear picture of real profit or earnings in a given month or year. Because it doesn’t match expenses with revenues, using the cash basis can lead to poor

business decisions. What looks like a profit can really be a loss. And what’s deposited into your checking account does not equal your profits.

Second, your bank may not allow you to use the cash basis; it wants to know what you’re earning or losing, and the cash method isn’t a good indicator of that.

Third, the Internal Revenue Service may not allow you to use it. They want you to report on the accrual basis, which doesn’t let you manipulate income as easily as the cash basis.

Tax basis means that the rules of the IRS are used in deciding how to record transactions. Essentially, your business’s P&L mirrors that of your tax returns. For most companies, this is a modified version of the accrual basis. Rarely, a company might use a tax basis based on the cash basis. Businesses that do generally are very small; many leased owner-operators use it.

If your company’s annual financial statements are presented on the tax basis, it’s probably because your bank has consented to the practice as a way to save you money on accounting fees. Your accountant saves time and effort if he uses the same basis of accounting for your published financial reports as he does for your tax return.

The main difference between the accrual and tax bases is how you calculate depreciation. In addition, sometimes tax rules won’t let you deduct an expense in the same period that you record it under accrual-basis reporting. This means your accountant may have to maintain two sets of numbers, but that’s really not as hard as it sounds, given the capabilities of modern software packages. But it still takes time, and to save on accounting fees, you might elect to have your reports prepared on the income tax basis of accounting.

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| DECEMBER 2013 55

SPEND BIG BUCKS

products new

All-position radial

Air cleaner Donaldson’s PowerCore PCD Air Cleaner is a single-stage filtration system in a compact unit and is suited for on-highway trucks and other applications operating in light dust conditions.

The PCD family – which includes the PCD09 and PCD10 – has an obround housing shape designed to allow for a narrow or wide mounting orientation with side access to facilitate easier filter service and maintenance. The PCD family also can be used in conjunction with other Donaldson pre-cleaner offerings to create a two-stage filtration intake system.

Bridgestone’s fuel-efficient R268 Ecopia premium all-position radial is designed for regional and pickup-and-delivery applications. The tire is verified by the U.S. Environmental Protection Agency’s SmartWay program and is compliant with the California Air Resources Board for low rolling resistance while also offering high traction and long wear life. The R268 Ecopia’s tread design and protective features in the casing help resist damage from curbing and maneuvering scrub, extending tread life.

The tire is available in size 295/75R22.5.

Bridgestone Commercial Solutions, www.ecopiatrucktires.com, 800-523-6366, Text INFO to 205-289-3554 or visit www.ccjdigital. com/info

Donaldson Co., www.donaldson.com, 888-888-3835, Text INFO to 205-289-3554 or visit www.ccjdigital.com/info

Temperature gun Snap-on’s Cordless Infrared Temperature Gun features a dual laser pointer that indicates the edges of the temperature circle to help provide more accurate average temperature readings for monitoring heating and A/C units and inspecting exhaust and emissions systems, thermostats and engine temperature sensors. The gun has a range of -58 to 1,832 degrees Fahrenheit and a continuous-on long-term record function that can record temperature changes over a period of time.

Snap-on, www.snapon.com, 877-762-7664, Text INFO to

Engine pre-heat timer Webasto’s SmarTemp Control fx Timer is designed to work with the company’s engine pre-heaters and to be easy to program for repeated heating duration times, eliminating the need to idle. The high-efficiency heaters help provide fuel savings and reduced engine wear and emissions during cold starts. The LCD screen displays both week-at-a-glance and month-at-a-glance settings, and timer settings are saved indefinitely until changed; four different settings per day are available.

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ccjdigital.com/info commercial carrier journal | december 2013

57

products

Gauge/tuner Bully Dog’s Triple Dog Gauge/Tuner is designed to manage engine performance, offering advanced programming and monitoring capabilities, including a vehicle engine tuner, function monitor, performance gauge and diagnostic device. The gauge/tuner is engineered to detect overheating or excessive boost in a turbocharged engine and to shift automatically to the highest safe power level. Various horsepower settings – stock, tow and performance – are available.

Bully Dog Technologies, www.bullydog.com, 940-783-9914, Text INFO to 205-289-3554 or visit www.ccjdigital.com/info

Coolant /antifreeze line Alliance’s extended-life coolant/antifreeze products are formulated for today’s heavy-duty engines in severe-duty applications and to be compatible with most coolants. The line is designed to provide extreme long-term wet sleeve liner cavitation and corrosion protection of all cooling system components.

Alliance Truck Parts, www.alliancetruckparts.com, 800-385-4357, Text INFO to 205289-3554 or visit www.ccjdigital.com/info

LED ceiling lights Progressive Dynamics’ LED ceiling lights are available in single- and double-lens models and feature large lenses and a reflector design for added illumination. The easy-toinstall lights feature a snap-out lens design and are made with a heat-resistant high-impact polymer to help minimize damage.

Progressive Dynamics, www.progressivedyn.com, 269-781-4241, Text INFO to 205289-3554 or visit www.ccjdigital.com/info

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

commercial carrier journal | december 2013

7/25/13 9:16 AM

products

Battery terminals, lugs Del City’s Fusion Battery Terminals and Lugs are made with premeasured metered flux and solder loaded into a tin-plated copper connector to help simplify cable assembly by adding heat only.

The Fusion line is designed to offer added strength and provide more consistent quality without having to clean, flux and add solder.

Del City, www.delcity.net, 800-654-5757, Text INFO to 205-2893554 or visit www.ccjdigital.com/info

Latching pail lid New Pig’s 5-Gallon Latching Pail Lid is designed to fit both steel and poly pails. The durable powder-coated steel lid is engineered to open and close easily and to create a tight seal, helping to keep pail contents pure and decrease vapor emissions. A fast-latch ring helps simplify installation.

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Portable radio SERIES

Icom America’s F3230D Series digital portable radio features an 8-character alphanumeric LCD, a voice scrambler, individual/group call capability and a channel announcement function that audibly reports the channel when rotating the channel knob.

The F3230D’s rugged construction and loud audio make it suitable for harsh, noisy and outdoor environments.

TM

Engineered with Thin Plate Pure Lead (TPPL) technology, ODYSSEY® Extreme Series™ and ODYSSEY Performance Series™ batteries provide superior power with three times the life of ordinary batteries. Plus, the Extreme Series offers even more cold cranking amps and reserve capacity for extra power when you need it. From powerful engines to long periods in storage, ODYSSEY batteries have the power to handle anything you throw their way. ®

For more information, visit www.odysseybattery.com.

Icom America Inc., www.icomamerica.

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commercial carrier journal | december 2013

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products

Drop-and-hook detection system Mobile Awareness has enhanced its SenseStat Wireless Obstacle Detection Sensor System to help eliminate vehicle backing accidents on trailers in drop-and-hook environments. The upgraded system is designed to pair the switched trailer to the monitor in the tractor, automatically providing drivers with backing safety information available via both an audible alarm and a visual display.

Mobile Awareness, www.mobileawareness.com, 866-653-5036, Text INFO to 205-289-3554 or www.ccjdigital.com/info

Fuel filter/ water separator Parker Racor’s FBO Fuel Filter and Water Separator Assembly is designed to meet tough hydrocarbon refueling conditions for high-flow applications while providing easier filter changeouts. The unit is used as a primary fuel filter and water separator on a large diesel engine, for fuel dispensing pumps or in bulk fuel handling, fuel transfer and other higher-flow applications.

It also can be used on mobile refuelers or installed in refueling cabinets.

Parker Hannifin, www.parker.com, 800344-3286, Text INFO to 205-289-3554 or visit www.ccjdigital.com/info

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

commercial carrier journal | december 2013

products

Mobile column vehicle lift Stertil-Koni’s ST 1085 heavy-duty mobile column vehicle lift features a lifting capacity of 18,500 pounds per column and is equipped with extra-long adjustable forks of 14 inches to raise all types of vehicles, including those with super single tires.

The width between the lifting forks is adjustable so that vehicles with a variety of wheel diameters can be lifted.

Each individual column has its own control box.

Tire traction system Flex Trax’s GoClaws tire traction system is designed for use in mud, sand, snow and ice in a variety of applications.

The injection-molded high-strength and high-durability polyurethane assembly features a positive-locking design that impedes bolts and screws from loosening, helping to provide a smoother ride and longer life through improved abrasion resistance and less tire damage.

Stertil-Koni USA Inc., www.stertil-koni.com, 800-336-6637, Text INFO to

Flex Trax, www.flextrax.com, 423-244-8030, Text INFO to

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71

Turnpike Grits Road

Preventable or not?

Doe’s U-turn turns out all wrong

B

urping from a free yogurt smoothie awarded by Bubba’s Truck Stop for buying 150 gallons of fuel, tractor-trailer driver John Doe was eastbound on a four-lane turnpike near Greensboro, N.C. It was 10 p.m., the sky was heavily overcast, and the turnpike was as dark as the inside of his diesel’s crankcase. In preparation for making a U-turn at the intersection with Grits Road, which was dead ahead, Doe moved into the left lane, actuated his left-side flashers and started to brake.

By the time Doe had stopped at the intersection, the traffic signal in his lane was red. That gave Doe time to extract a celery stalk from his survival rations, As John Doe attempted adjust the squelch on his CB and glance a wide U-turn from the left lane, he struck a car at the adjacent lane via his right-side West that had pulled up next Coast and convex mirrors, which at that to him in the right lane. time revealed nothing.

Was this a preventable Seconds later, while the traffic light still accident? was red, Tommy “The Duke” Gripley became weary of staring at the rear of Doe’s trailer and began maneuvering his dark blue 1957 “Heavy Chevy” – 327 with multiple Holley carbs, column-mounted Sun tach and four-on-the-floor Hurst – into the right lane, next to Doe’s saddle tank. When the light turned green, Doe quickly started to turn, his rig extending into the right lane to complete the maneuver when … Sproing! Oh no! His trailer’s ICC bar had encountered the Chevy’s left front fender!

Because Doe contested the preventable-accident warning letter from his safety director, the accident was turned over to the National Safety Council’s Accident Review Committee. NSC upheld the preventable ruling, concluding that – despite Doe’s claim that the Heavy Chevy had materialized from thin air – Doe had not checked his mirrors adequately. Also, attempting a wide U-turn at a dark intersection on a high-speed road wasn’t exactly a safety-award-winning idea, either.

72

commercial carrier journal | december 2013

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3/21/13 9:56 AM

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