CCJ1214

DECEMBER 2014

A COACH IN THE CAB

Shining the spotlight on this year's best-looking trucks

Fuel-saving apps offer real-time feedback page 50

CORROSION CONTROL

Don't let rust ruin your rides page 24

page 46

NO-FRILLS FLEETS

Low-tech trucks finding more demand page 54

BUSINESS SOLUTIONS FOR TRUCKING PROFESSIONALS

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Extra miles in every bottle

DeCeMber 2014 | voL 171 | No. 12

46

CCJ ’s Five Flashiest Fleets Most fleets look at a 53-foot trailer as a box to move freight from point A to point B. Others see it as a blank canvas – and an opportunity to advance their company’s brand and product message to the driving public. This year’s Five Flashiest Fleets stood out above the crowd with evocative and enticing imagery that help propel the story of the fleet’s brand or services.

Cover design by David Watson

features

journal LeADiNg NewS, TruCkiNg MArkeT CoNDiTioNS AND iNDuSTry ANALySiS

11 News FMCSA’s insurance hike rule will come slowly, if ever, ATA says …

50

Natural gas adoption

Virtual coaching

stalls on lower diesel

Mobile fleet management systems are used widely by fleets to capture data and create reports regarding the performance of vehicles and drivers. Fleet managers traditionally reviewed this information before giving drivers feedback on what they could have done differently to increase fuel efficiency. Today, this after-the-fact approach is waning with the adoption of new applications that put drivers on the front line of visibility.

54

prices, ACT says …

LaHood again pushes for more highway

The good old days

funding … Driver ha-

Some fleet managers are becoming less than enthusiastic concerning trucking’s technological explosion.

That’s because all the new technology found on today’s commercial vehicles comes with tradeoffs such as higher prices and technicians who haven’t received enough training to support modern rigs. Some industry experts predict the rise of cheaper, simpler truck designs to counter today’s high-tech models.

rassment via e-logs not an issue, FMCSA finds … FMCSA surveying drivers for data on training rule … Driver shortage impacts equipment buying,

43

Innovators: Walmart Transportation

The retail giant employs a series of improvements and innovations to deliver more goods with fewer miles traveled.

survey shows

12 InBrief

commercial carrier journal

| december 2014 3

DEPARTMENTS

ccjdigital.com

technology

facebook.com/CCJMagazine @CCJnow linkedin.com/ccjmagazine

Editorial

21 22

Volvo’s Adaptive Gearing technology pushes fuel economy Sprinter unveils 4x4 van option

22 InBrief 24 InFocus: Corrosion

35 36 36

Telogis creates new routing technology DPL Telematics creates portable trailer-tracking device Motorola adds Symbol TC70 mobile touch computer

editorial@ccjdigital.com

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

26 Test Drive:

36 InBrief 38 Geotab launches G07

32 Severe Service:

40 InFocus:

Corporate

control

Caterpillar debuts CT681 off-highway truck

Electronic logging devices

ALSO IN THIS ISSUE

6

Upfront Five takeaways from CCJ Fall Symposium

76

61

Preventable or Not? John Doe was clearing the intersection when a pickup driver tried to swing around his trailer, but the pickup clipped the trailer’s corner. Was this a preventable accident?

Products Suspension systems, flatbed trailer, tire changer, more

COMMERCIAL CARRIER JOURNAL

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

telematics system

Peterbilt 579 EPIQ

4

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

| DECEMBER 2014

75

Ad Index

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

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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leading news, trucking market conditions and industry analysis

FMCSA’s insurance hike rule will come slowly, if ever, ATA says

I

just intended to gather information.” ndustry concerns over regulators’ FMCSA released a report in April conseemingly quick work to produce a cluding that an increase to the current rule to raise the minimum amount $750,000 was necessary, saying that the of liability insurance required of number would be closer to $2 million if it trucking companies could be much was indexed to inflation. ado about nothing, said the American The agency seemed to be making Trucking Associations’ chief of advocacy, quick work of a Dave Osiecki. rule to raise it by The “rule proexpediting the posal” that cleared ANPRM. But the White House Osiecki said a last month isn’t proposed change even a rule, Osiecki may never come, said, but is a “prefactoring in typical rule” that will be regulatory slowpublished as an downs before presAdvanced Notice idential elections of Proposed ATA’s analysis and FMCSA’s April report shows that and depending on Rulemaking and just one-tenth of one percent of all crashes involvwill be a set of ing trucks exceed the current minimum amount of the information questions for truck- liability insurance required of trucking companies. FMCSA collects with the ANPRM. ing companies and “I strongly suspect that this is a rule other industry stakeholders. that will get delayed and perhaps never The ANPRM is part of the Federal even see the light of day,” Osiecki said.

Motor Carrier Safety Administration’s Generally about a year before presidential data gathering process for the potenelections, the White House slows down tial rulemaking, Osiecki told CCJ. The regulatory changes, no matter which party ANPRM likely will be published in the coming weeks, but it will not have a num- is in control, he said.

Osiecki said ATA’s analysis and ber nor any language that will change fedFMCSA’s April report show that just 0.1 eral regulations, he said. percent of all crashes involving trucks “[ATA] talked to the head of the regulaexceed the current minimum. Until tory office over at FMCSA several weeks ago, and we clarified that” the ANPRM will data reflects a need for a change, ATA supports maintaining the current limit, not have a number, Osiecki said. “It’s really Osiecki said.

The Owner-Operator Scan the QR code with your smartphone or visit ccjdigital.com/news/subscribe-to-newsIndependent Drivers letters to sign up for the CCJ Daily Report, a Association likewise does daily e-mail newsletter filled with news, analynot support an increase. sis, blogs and market condition articles.

– James Jaillet

Natural gas adoption stalls on lower diesel prices, ACT says

W

ith diesel prices at three-year lows and expected to remain

well below $4 in 2015, much of the shine is off the pennies per gallon that can be saved by using alternative fuels, according to a study by ACT Research.

“NG Reality Check: Moving from Infancy to Adolescence,” available for viewing at www.actresearch.net, updates ACT’s first comprehensive natural gas study in 2012. That report was more bullish, ACT noted, reflecting “the enthusiasm of the moment” that included planned market and product development that has been slow to materialize with a narrowing fuel price spread and improving diesel engine fuel economy gains.

“The previous long-term penetration overstatement does not mean NG has not grown,” said Ken Vieth, ACT’s senior partner and general manager. “It has and will continue to grow, but at a slower rate the next few years.” NG Class 8 truck/ transit bus penetration was 3 percent in 2013 and should reach 4 percent in 2014, or about 11,000 units, Vieth said.

Looking at the most likely adoption curve, NG heavy Class 8 penetration is expected to total 23 percent of the units sold in 2025. If the total new U.S. Class 8 truck/transit bus market is 200,000 units that year, then the NG market will be a strong 46,000 units, ACT said.

commercial carrier journal

– Kevin Jones

| december 2014 11

JOURNAL NEWS

INBRIEF 12/14 • The Pipeline and Hazardous Materials Safety Administration on Oct. 30 issued a Safety Advisory saying that Ebolacontaminated materials must be packaged in compliance with Category A infectious substances hazardous material regulations. Materials that have been incinerated are not considered Category A infectious substances and are not subject to hazmat regulations.

• Electronic logging devices are being registered with and approved by the Federal Motor Carrier Safety Administration in preparation for its upcoming ELD mandate.

The agency will maintain a list on its website and expects all 22 ELD makers to register their devices and estimates that 88 different devices will be registered.

• The American Transportation Research Institute seeks motor carrier input to evaluate the impact that detention time caused by shippers and receivers may have on safety and productivity. A survey at https:// www.research.net/s/detentionimpactscarriersurvey will remain open through early January 2015.

• Celadon Group Inc. (CCJ Top 250, No. 39) acquired New Freedom, Pa.-based A&S Services Group (CCJ Top 250, No. 197), a 500-truck regional for-hire and dedicated truckload carrier providing dry van services to the Mid-Atlantic and Northeast regions. Indianapolis-based Celadon paid $55 million at closing and assumed $31.8 million in operating leases.

• FMCSA is seeking approval to question states on their plans for monitoring commercial driver’s license issuing agencies.

States were required by the MAP-21 highway funding act to submit their plans to DOT by Sept. 30, 2015. The agency began a 60-day public comment period on the request Nov. 13. Go to www.regulations.gov; the Docket Number is FMCSA-2014-0133.

12

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journal news

LaHood again pushes for more highway funding

C

ontinuing his “America is one big pothole” theme, former U.S. Transportation Secretary Ray LaHood used an appearance at a Caterpillar press event in late October to lambast the present direction of U.S. transportation policy. Calling the two-year transportation bill passed in 2012 “chintzy,” LaHood called upon Congress to think of roads as economic corridors.

“I hear people today talking about alternative methods of funding, but what we need is a big pot of money,” he said.

“We need to raise the gas tax by 10 cents a gallon. Do it over two to three years, but index it to the cost of living.”

If that index had happened in 1993 – the last year the gas tax was raised – America now would have that “big pot of money,” LaHood said. Today, even a 10-cent raise is not nearly enough, “but it would send the message that America’s serious” about its roads and bridges, he said.

Even though politicians don’t want to raise taxes, the states have taken another direction, LaHood said. “In states where they’ve had a referendum to raise the gas tax one or two pennies, 95 percent of the referendums have passed because people know it’s going to roads,” he said, offering this advice to politicians: “Don’t be afraid to raise the gas tax, because people won’t be mad at you.”

LaHood, who served as DOT secretary from 2009 to 2013, called the movement to allow states to use federal highway funds at their discretion “a terrible idea.”

“There is value in having a national program,” he said. “Do we really want 50 states doing their own thing?”

The transportation and construction industries have a responsibility to let their congressional representatives know the importance of a six-year highway bill, LaHood said. “Persuade your congress-

people to be bold and to have vision,” he said. “Almost every segment of the economy benefits.

There’s no downside.”

HowesCCJW14_HalfPageIsland.pdf 1 – Marcia Gruver Doyle

Former U.S. Transportation Secretary Ray LaHood spoke on the importance of healthy 8/7/14 9:45 AM road and bridge funding at a Caterpillar press event in late October.

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journal news

Driver harassment via e-logs not an issue, FMCSA finds

B

ased on a survey of more than 600 drivers, the Federal Motor Carrier Safety Administration has concluded that carrier harassment of drivers – especially when attributed to electronic logging devices – is minimal.

The agency on Nov. 13 released the report “Attitudes of Truck Drivers and Carriers on the Use of Electronic Logging Devices.” FMCSA began the study in March, interviewing 628 truck drivers at 24 truck stops across the coun-

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try. It found that regardless of whether drivers use paper logs or ELDs, few said they felt they are harassed by their carriers.

“The evidence in this survey research does not support concluding that harassment occurs due to being in a situation where HOS are logged using ELDs,” according to the agency’s report.

FMCSA sought to use the study to find (a) whether drivers’ interactions with carriers constituted harassment, (b) the frequency of certain drivercarrier interactions and (c) whether ELDs made inappropriate or harassing interactions possible.

Though drivers who use ELDs reported more frequent instances of harassment via interrupted off-duty time with messages at inappropriate times, most driver respondents did not attribute 95 percent or more instances of harassment to the use of ELDs. Drivers using ELDs did say they were more likely to be paid for customer delays when picking up or delivering a load, with 63 percent saying that happened at least once per month, compared to 53 percent of those using paper logs. Also, 37 percent of drivers using e-logs said this happened at least twice a month, compared to just 30 percent of those using paper logs.

Conversely, drivers using e-logs said they were more likely to wait between loads without pay. But drivers with e-logs also were more likely to have their carrier adjust a load schedule so pickup or delivery was “realistic,” according to the study.

Seventy percent of drivers in the survey were company drivers, and 29 percent were owner-operators. More than threequarters of them worked for a for-hire carrier, and 24 percent worked at a private carrier.

– James Jaillet

| december 2014 6/19/14 8:57 AM

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journal news

FMCSA surveying drivers for data on training rule

T

he Federal Motor Carrier Safety Administration is surveying recently licensed truck operators as part of its data-gathering process in producing an entry-level driver training rule.

The agency said it hopes to determine

what type of entry-level training truck operators received to obtain a commercial driver’s license and what additional training hazmat haulers received.

FMCSA is surveying drivers licensed within the past three years, including

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Drivers surveyed also must have received an inspection within the past 12 months, which will verify they still drive for a living, the agency said in its Federal Register announcement.

FMCSA sent invitations to roughly 82,000 CDL holders asking for participation in the confidential online survey, which the agency said should take about 15 minutes to complete.

FMCSA on Nov. 7 began a 60-day period for public comment on the survey.

To comment, go to www.regulations.gov and search FMCSA-2014-0388.

A driver training rule has been in the works for more than 20 years, with all of the agency’s several attempts being overturned in court. The MAP-21 highway funding law passed in 2012 required FMCSA to produce a rule.

The Teamsters, along with safety advocacy groups, filed a lawsuit against FMCSA in October for not having produced the rule. The groups argue the rule has been “unlawfully withheld,” as Congress repeatedly has mandated the agency to produce a rule since the 1990s.

FMCSA announced in August it was exploring the possibility of producing the rule via a negotiated rulemaking, meaning industry stakeholders would play a larger part in the rulemaking than with other rules.

– James Jaillet

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FMCSA hopes to determine what type of entry-level training truck operators received to obtain a CDL.

| december 2014 3/18/14 2/18/14 1:41 1:24 PM

journal news

Driver shortage impacts equipment buying, survey shows

F

leets will be less aggressive in purchasing new equipment in 2015 as the driver shortage continues to hamper capacity growth, according to the 2014 Annual Fleet Study by CK Commercial Vehicle Research.

“The key point from this year’s survey is the driver shortage – impacting everything,” reads the executive summary.

Topics for this year’s 20-question survey included planned 2015 truck and trailer purchases for replacement and added capacity, brand choices, driver shortage impact, equipment specifications, new technologies, maintenance and replacement parts, information sources and challenges for 2015.

“This is a snapshot in time and shouldn’t necessarily speak to an increase or decrease in actual units purchased from one year to the next, as fleets make adjustments throughout the year,” said analyst Chris Kemmer about the October survey.

Along with the nuts and bolts on equipment purchase plans, the survey sheds some light on the thinking of fleet decision makers by tracking changes in equipment orders over the past three years.

Responding fleets indicated they added technology targeting safety, driver recruitment and fuel economy. The percentage of fleets spec’ing trailers with tire pressure monitoring systems nearly doubled this year after holding steady for the previous two surveys.

The survey reflects a growing adoption of 13-liter engines, with nearly 60 percent of fleets ordering the more fuel-efficient lighter engines. Nearly half of the fleets surveyed are ordering trucks with automated manual transmissions, and orders for adaptive cruise control and added driver comforts also spiked.

The study also notes that the trailer-totractor ratio has increased significantly from last year’s report and attributes the spike to the driver shortage – even though

planned trailer orders for next year fell.

The U.S. Environmental Protection With the driver shortage as a recurAgency’s push for fuel economy stanring theme, the new hours-of-service dards came in at No. 2, with respondents rule topped the fleet list of regulatory citing increased equipment and mainteconcerns, while the coming electronic log nance costs. mandate was No. 3.

– Kevin Jones CAT CCJ Miller 012914_Layout 1 1/29/14 11:50 PM Page 1

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”

| december 2014 19 1/31/14 1:20 PM

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

by Jack roberts

Volvo gears up

More slippery: refined airflow fea-

Adaptive Gearing technology pushes fuel economy

I

tures, including tractor side fairings and a new bumper, boost fuel economy.

loaded and unloaded: adaptive

gearing can help fleets that leave fully n August, Volvo announced its Adaptive Gearing fuel-saving technology loaded and return home lighter. centered around its I-Shift automated manual transmission. Last month, slick systeM: volvo’s refinements the company hosted a tour at its North American Class 8 truck plant in build on existing technology and are New River Valley, Va., to demonstrate the new concept, along with addiintended to benefit all truck owners. tional 2016 VNL features.

Although Volvo’s VN Series of Volvo said its I-Shift aerodynamic tractors already automated manfeatured a slippery design, ual transmission the company’s engineers have was spec’d on 74 created another 3.5 percent percent of all new trucks the company fuel economy boost thanks has sold this year. to a host of refined airflow features, including tractor side fairings and a new bumper. ters, I-Shift reverts Under the hood, Volvo has manautomatically to aged to unearth another 2 percent “Economy” mode. fuel economy boost from its XE Spence said the integrated drivetrain. The XE drivenew aerodynamic train’s brain is Volvo’s I-Shift AMT, touches and Adaptive which the company said was spec’d on Gearing both reflect 74 percent of all new trucks it has sold this year. Volvo lessons Volvo learned from its participation with the governsaid it now is moving away from “one-size-fits-all” powertrain ment-sponsored SuperTruck research offerings and is focusing on specific customer needs to offer more application-foprogram. cused drivetrains.

Volvo said that philosophy is what led to its Adaptive Gearing concept, which Adaptive Gearing builds on existing builds on the I-Shift’s sensory and computing power by adding load-sensing electechnology and is intended to benefit tronic control modules. The XE drivetrain now can adjust horsepower and gear fleets, company drivers and owner-operators alike and improve on an already selection to match specific vehicle haul configurations to maximize either power outstanding tractor. Volvo took an early or fuel economy. lead in the push for improved Volvo product manager Jason Spence said Adaptive Gearing is designed to benefit fleets that leave fully loaded and return home either lighter heavy-duty fuel economy or empty. When fully loaded, the XE drivetrain emphasizes torque and with the VN’s launch, and the horsepower in order to ensure that the load is moved efficiently; while latest enhancements I found fuel economy remains important, the priority is on available power. during my time in Virginia When fully loaded, a 12th gear lockout function helps makes sure the drivemade it clear the company train stops shifting in 11th gear. Once the drivetrain senses that the vehicle is has no intention of surrenempty, it automatically opens 12th gear up to help maximize fuel economy. dering that position.

While “Economy” is the default operational mode during highway cruises, drivers can shift into “Performance” mode to tackle grades or JACK ROBERTS is Executive Editor of Commercial Carrier Journal. whenever they need extra power. Once the truck reenters cruise parame- E-mail jroberts@ccjmagazine.com or call (205) 248-1358. commercial carrier journal

|

december 2014

21

INBrief •

Navistar announced the restructuring of its senior leadership team and the retirement of 33-year company veteran Jack Allen, who most recently served as chief operating officer. Bill Kozek was promoted to president of the company’s Truck and Parts division, and Persio Lisboa was promoted to president of operations.

Walter Borst, Navistar’s executive vice president and chief financial officer, now also will lead business development, corporate strategic planning and mergers and acquisitions.

•

Carrier Transicold enhanced the warranty coverage for its Vector trailer refrigeration units. The warranties for the hybrid Vector 8500 and Vector 8600MT units now include 48-month/8,000-hour major component coverage for the engine, generator and compressor. Also, the APX control’s microprocessor and stepper valve modules are warrantied for 60 months/10,000 hours. On the multitemp Vector 8600MT, basic warranty coverage for the new, smarter remote evaporators has been extended to 36 months/6,000 hours.

•

Kenworth introduced a Driver Performance Assistant option for new T680 and T880 models specified with the company’s Driver Performance Center and powered

by Paccar MX-13 engines and automated transmissions. Drivers receive immediate feedback on how their driving impacts fuel economy and brake wear.

•

Peterbilt’s Pride & Class Model 389 is now in production and shipping to customers and dealerships. The truck features numerous bright exterior accessories and interior accents designed to provide a customized show-truck-ready look, with insignias in the cab and on the sleeper to identify the exclusive edition.

•

Peterbilt’s medium-duty Model 220 can be spec’d with a clear frame rail package that provides up to 10 inches of additional frame rail space versus the previous package. The truck maker said the option optimizes chassis space to help accommodate a wider range of work bodies.

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. 22

commercial carrier journal

Sprinter unveils 4x4 van option

C

argo vans seldom are known for their off-road capabilities, but that might be about to change. Early next year, Mercedes-Benz will introduce the industry’s first 4×4 commercial van as part of the company’s Sprinter line.

Since the four-wheel-drive system isn’t active full time, the company considers the van a 4×2 with 4×4 capabilities when needed. Once the electronic traction system has been push-button activated by the driver, a factory-installed all-wheel-drive system spreads torque at a ratio of 35:65 between the front and rear axles.

The option is available only with Mercedes’ 3-liter V6 BlueTec diesel matched to a five-speed automatic, both of which ably handled everything thrown at it during a recent test drive at Daimler’s Sprinter assembly plant in Charleston, S.C. The 3-liter diesel provided more than enough power to push the 144-inch short wheelbase van up a fairly steep grade and over a manmade off-road track suited for ATVs. Many times over the course of the brief drive, one wheel was lifted from the ground. Sensing the loss of traction, the onboard computer shut the dangling wheel off and diverted torque to the three tires actually touching the ground.

Even when all four tires weren’t on the ground, the van never felt out of control.

It was difficult to judge the van’s interior comfort while being lifted 4.3 inches in the front and 3.1 inches at the rear on the hilly test track, but cab styling was what one would expect from a Sprinter: not lacking in its simplistic design, fit and trim.

The Sprinter 4×4 is available in 144-inch and 170-inch wheelbases and lowand high-roof configurations, and it can be spec’d as a passenger or cargo van in 8,550- and 11,030-pound GVWRs. A crew van spec, featuring two rows of seats and cargo space to the rear, takes direct aim at quad cab pickups by offering more enclosed load-hauling capability.

While the Sprinter remains a popular cargo/passenger van, and now also a capable off-road tool, the company hasn’t neglected safety when hauling over treacherous terrain. Mercedes’ load-adaptive stability control system is active constantly when four-wheel drive is engaged.

The 4×4 option adds $6,500 to the sticker price for high range and $6,800 for low range, which offers an additional 42 percent gear reduction.

– Jason Cannon

| december 2014

Sponsored information by Shell Rotella®

MAINTENANCE MATTERS

Q&A WITH RICKY COLE, OWNER OF TAYLOR TRANSPORT

R

icky Cole established Taylor Transport in 1995 and named it after his son Taylor. Located in Cartersville, Georgia, 30 miles from Atlanta, Cole operates a fleet comprised of 90 tandem and tri-axle day cab/sleeper tractors and 160 trailers. The fleet includes 35- to 65-ton lowboys, extendable trailers, stepdecks and an extensive fleet of 48-foot and 53-foot flatbeds and van trailers. Taylor offers an unlimited range of transportation solutions, including oversized hauls and currently operates in all 48 states. “No job is too big or too small for us to take on,” he says.

Cole is actively involved in all aspects of his company and says his exacting expectations set the bar for the entire operation, especially when it comes to maintenance. That’s why he relies on the Shell family of products to keep his equipment running. “I choose to use the Shell line exclusively because they live up to my high standards,” he says.

How does your maintenance department fit into your corporate mission?

I’m known to be very particular about everything, especially my equipment.

I depend on my maintenance supervisor, Steven Waits, to lead the 14 employees in our in-house shop. He’s been with me since nearly the beginning and shares my same high expectations to keep everything in top working condition. We can’t afford breakdowns and take pride in providing our customers the quality of equipment and service they expect.

How does Shell help you run an efficient operation?

We take advantage of all the latest data-based technology available to attain the best fuel efficiency for our fleet.

This includes using Shell’s lube analysis and oil sampling program. We depend on the following Shell products: Shell Rotella® T Triple Protection® 15W-40, Shell Rotella T5 10W-30, Shell Gadus S3 V 220C2, Shell Gadus S3 V 1000 XD, Shell Rotella ELC 50:50, Shell Spirax S6 AXRME 75W-90 and Shell Spirax S6 GME 50.

What are your biggest challenges?

Like most fleet owners, we are challenged to manage the whole CSA score function. We’ve not had any major

issues but are constantly communicating with our drivers, dispatch and maintenance to make sure everyone is compliant.

Communication is key.

How do you manage fuel efficiency?

We brought on a compliance officer to monitor and manage the fuel economy. Every truck has an APU and our drivers rarely need to idle. We also lowered our top speeds and bought more efficient equipment. We meet regularly about fuel and fuel reports and of course we bring our trucks in every 30,000 miles for service.

in focus: Corrosion Control

Rust never sleeps Simple steps can stop killer corrosion cold

By Jack RoBeRts

V

ehicle corrosion is nothing new. In the earliest days of trucking, rust and road salts were identified as agents that could, over time, degrade even the hardiest trucks. Invasive chemical agents eventually can eat away frames and engine components.

Less robust vehicle components such as floorboards, fenders and doors can be the first structures to fail due to corrosion. Today, with new trucks more dependent on sensitive and vulnerable electronic connections and wiring harnesses, corrosion can bring a truck to a dead stop even quicker.

“We try to have our equipment washed once a week at our terminals,” says Michael Burns, vice president of Burns Motor Freight of Marlinton, W.Va. However, Burns warns that quick washes won’t prevent all corrosion because chemicals such as magnesium chloride and road salts lay in frames, junction boxes, upper couplers and other hard-to-clean areas.

“Over time, corrosion starts to rear its ugly head by having more electrical shorts, paint flaking and pits in metal,” he says. “I’ve seen shocks completely disappear due to corrosion, even with a weekly washing.”

Russ Whiting, president of Whiting Systems Truck Washes, says one simple way to control corrosion is by cleaning a vehicle thoroughly on a frequent basis to remove contaminants before they can do serious damage. Like Burns, Whiting warns that just washing a truck’s exterior is not enough.

“You really need a comprehensive washing system that washes the undercarriage, chassis and as many hard-to-reach areas on the vehicle as possible,” he says. “Nothing else is as effective as stopping corrosion before it starts than washing.

You cannot stop corrosive materials from getting onto a vehicle, particularly in winter months, but you can limit the amount of time they are on a truck and the amount of damage they do.”

Brett Johnson, president and chief executive officer of Optronics International, says corrosion PPG Commercial Coatings’ Delfleet Evolution Epoxy Primers are formulated to provide added adhesion and corrosion resistance over a variety of substrates.

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commercial carrier journal

| december 2014

I’ve seen shocks completely disappear due to corrosion.

– Michael Burns, vice president, Burns Motor Freight most often is caused by moisture intrusion within a vehicle’s electrical and power delivery system. “The chemicals used to treat the roads can accumulate on the equipment via road spray and will eventually ‘infect’ the components on a piece of equipment, including the electrical system,” he says.

Chemical-based corrosion is prevalent on trailers because the harness system typically is exposed to the elements, Johnson says. Once corrosion begins, an electrical and wiring system can be compromised quickly through leaking lamp connections, cracked lamp housings and lenses, wire and cable abrasion, grit and sand damage, extreme temperature fluctuations, extensive flexing and exposure to moving parts.

Burns’ fleet pays attention to frames, starters, battery terminals, junction boxes, electronic control module connections, anti-lock braking system components and sensors, electrical terminals, radiators, shock absorbers, frame brackets, brake shoes and slack adjusters – “virtually any component that is exposed to these chemicals,” he says.

“We pay extra to have our truck OEM spray a corrosion protectant on electrical components,” says Burns. “We also pay a higher cost for our trailers because we spec the best paint to resist these chemicals.”

In addition to washing and protective coatings, maintenance basics can go a long way toward controlling corrosion. “We stress that technicians make corrosion awareness a routine part of their maintenance checks,” says Dennis Dammon, national accounts manager for Phillips Industries, a manufacturer of electrical and air brake components.

Routine checks should include major electrical connections, including batteries, starters and alternators. “Make sure no corrosion is present, and treat all major external connections with a corrosion-protective covering,” Dammon says.

WE'VE HAD A GREAT YEAR THANKS TO YOUR SUPPORT

278

TRAVEL STOPS NATIONWIDE... AND COUNTING

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27 LIGHT MECHANICAL 99 LOCATIONS ROADSIDE TRUCKS 228 EMERGENCY TRUCK TIRE CARE SERVICE CENTERS

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Love's services are always growing to meet your fleet's fuel and truck service needs. Whether its CNG, DEF and diesel all in one lane or Truck Tire Care and Light Mechanical Services, we provide solutions 24/7 that keep your trucks on the road.

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Fast. Clean. Friendly.

Peterbilt’s Model K370 579 EPIQ While Kenworth’s stillis a fuel-economy enhancement shares some strong exterior spec builtfeatures around aggressive cosmetic with DAF aerodynamics the – namely itsand Euro 6 MX-Fuller cab – it’s Advantage integratedtruck. drivetrain. a NAFTA-capable

ccj test drive:Peterbilt 579 ePiQ

An ‘EPIQ’ fuEl Economy Push Peterbilt takes its Model 579 to new heights

By Jack RoBeRts

I

n a sense, Peterbilt engineers never get to build a true “clean sheet” design when they start work on a new truck.

Those engineers might disagree with that statement, but as I gazed at the fully restored 1939 Peterbilt tractor on display at the company’s plant in Denton, Texas, I couldn’t help but see styling cues that have carried over from generation to generation of Peterbilts.

No matter what marching orders the company’s engineers receive, there are a few mandatory design aspects: a bold old-school exterior wrapping a refined, even luxurious, cab and sleeper. Engineers can add to that legacy, but they never can take away. Peterbilt’s newest and most fuel-focused long-haul tractor yet, the Model 579 EPIQ, is no exception.

The Model 579 was a groundbreaking design for Peterbilt, seamlessly melding traditional Class 8 styling with highly efficient aerodynamics. The new EPIQ package takes this formula further, with

26

more aggressive aerodynamics and a highly optimized and integrated drivetrain. The result is consistently high miles per gallon while allowing owners to bask in Peterbilt’s refined image.

Before I headed out in my crimson test truck, Peterbilt product manager Anthony Gansle noted how many of the Model 579 EPIQ’s fuel economy enhancements were a direct result of the company’s extensive involvement with the SuperTruck initiative, a government program that funded OEM and component research in technologies to boost commercial truck

The highly efficient highway cruiser doesn’t sacrifice looks, prestige, comfort or power.

commercial carrier journal | december 2014

Peterbilt engineers reduced as many drag-inducing open spaces as possible on the Model 579 EPIQ, as evidenced by extremely tight tolerances around the steer axle wheels.

fuel economy.

He pointed to extremely tight tolerances between new fairings around the steer wheels and tractor side fairings that stretch almost to the ground, directing air onto trailer side skirts. Other aerodynamic touches include a new roof fairing bridge that dramatically reduces the gap between the tractor and trailer, standard tandem wheel covers, a new bumper air dam design that reduces lift and drag, and tighter tolerances in the bumper-tohood seal design.

A highly tuned Paccar MX-13 diesel communicates at a high level with Fuller’s UltraShift Plus-based Advantage automated manual transmission. The engine and transmission share proprietary telemetry to maximize performance and, primarily, fuel economy.

Once we completed our walkaround, I pointed the Model 579 EPIQ north on I-35, skirting Dallas and heading toward eastern Oklahoma, a route that has some decent hills to pull.

I drove the original Model 579 when it debuted three years ago, and I noted its low interior sound levels. If anything, the EPIQ’s aerodynamic enhancements only add to the tractor’s in-cab quietness, a nice complement to an extremely smooth-riding suspension and Paccar’s premium air-suspension seats.

This overall tightness extends to the

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Cenex Maxtron® Enviro-EDGE® heavy-duty engine oil, for example, is API CJ-4 certified and exceeds critical industry standard tests on soot handling, viscosity and fuel economy. To get more from your fleet’s engines, find a dealer at cenex.com and ask for Cenex Maxtron Enviro-EDGE. PROVEN RESULTS • Up to 44% better wear protection* • 50% acid fighting after 50K miles • Extends oil drains up to 2X**

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wonderfully precise steering system.

Despite the tight aero tolerances around the steer axle, generous wheel cuts made the truck easy to maneuver around the congested Peterbilt plant site. On the open road, the truck tracks straight with minimal steering input.

Cab layout, storage space and driver ergonomics are top-notch. Cab and sleeper space is generous. Not much has A new interactive driver-coaching system changed from the standard Model 579’s is designed to help drivers stay focused dash or instrument layout, though there on good fuel economy practices. is one standout EPIQ enhancement.

It’s a fuel-focused interactive driver-coaching system that works with the with fuel-based performance bonuses. pre-existing driver information system.

For certain older drivers, “fuel This system provides not only real-time economy” is synonymous with “crapfuel economy feedback and performance py performance.” But today’s onboard information, but also coaching tips to electronic control systems have changed help boost mpg performance. all that. Drivers fearing sluggish low-end Some drivers may find the system performance from the Model 579 EPIQ a tad pretentious, but it’s not overtly should have no fear. in-your-face, and the useful information The ECM effortlessly provided Polywill Deckboard_7x4.5.pdf 1 2/25/14 plenty 10:52 it provides be a real plus for drivers ofAMhigh torque needed to get my

70,000-pound load moving, and the truck easily hit 55 mpg on an interstate onramp. Once at cruising speed, the system automatically gets to the highest gear/lowest RPM setting possible to conserve fuel.

But throttle response – and corresponding horsepower boosts – are instantaneous if you decide to jump over a lane and pass a slower vehicle.

Once you’re back in cruise mode, the integrated drivetrain reverts to fuel economy mode, with zero driver input required.

Upon hitting some hilly terrain beyond the Red River, the engine easily maintained my desired cruise speed with little or no deceleration. I logged 9.5 mpg on my drive without really concentrating on fuel economy.

In short, Peterbilt’s Model 579 EPIQ is a highly efficient highway cruiser that doesn’t sacrifice looks, prestige, comfort or power.

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commercial carrier journal | december 2014

Untitled-35 1

6/17/14 1:20 PM

AERO HAS FOUND ITS EDGE.

Edges instead of curves. Fuel economy without sacrificing power.

Durable and lightweight. Introducing the all-new 5700XE. A perfect fusion of proven Daimler technology and innovation with the legendary durability and performance of Western Star.

This is how we do aero. Learn more at allnew5700.com

WS/MC-A-513. Copyright Š 2014 Daimler Trucks North America LLC. All rights reserved. Western Star Truck Sales, Inc. is a subsidiary of Daimler Trucks North America LLC, a Daimler company.

Western Star - A Daimler Group Brand

Caterpillar’s CT681 features a more robust, spartan look, abandoning the CT660’s wheel loader-inspired brushed aluminum grille guard and trim.

Caterpillar debuts CT681 off-highway truck Caterpillar added a second model to its new line of vocationally focused work trucks – the CT681. The Class 8 truck borrows heavily from the existing CT660 but features enhancements designed for applications such as snowplow, mixer, dump and super dump.

The CT681 features a set-forward front axle for a longer wheelbase with a 114-inch BBC measurement.

Dave Schwartz, global on-highway product manager, says this configuration offers better ride quality on both long hauls and rough dirt roads while giving body builders more flexibility and room for behind-the-cab installations.

Power is provided by Cat’s CT Series vocational truck 32

COMMERCIAL CARRIER JOURNAL | DECEMBER 2014

engine family, with ratings from 365 to 430 horsepower available. Schwartz says higher horsepower ratings will be offered as early as next year, coinciding with the launch of the next Caterpillar truck, the CT680, which will be a stylistic departure from the CT660 and CT681.

The CT681 already has made a move away from the CT660 in terms of appearance. The new truck features a more robust spartan look, abandoning the CT660’s wheel loader-inspired brushed aluminum grille guard and trim.

Schwartz says this move was necessary to accommodate the CT681’s higher radiator configuration and to simplify front engine PTO access.

– Jack Roberts

A FULL LINE OF PRODUCTS ENGINEERED TO TURN TRAILERS INTO PROFIT CENTERS.

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We didn’t invent the trailer, but for more than 65 years, our components have revolutionized ™ ™ them. From innovative systems like RideSentry Suspensions and MTA Suspensions, ® ™ to cost-efficient Meritor Tire Inflation Systems (MTIS by P.S.I.) and axle solutions, Meritor offers a full line of products that create the perfect trailer for your application.

Explore all Meritor trailer products at meritor.com/trailerproducts.

© 2014 Meritor, Inc. All Rights Reserved.

4th time in last hour he’s jammed on the brakes.

6th time in last hour he’s crossed into another lane.

8th time in last hour he’s sang, “Friends in Low Places”.

We deliver mobile fleet solutions that drive your bottom line. Driver productivity, back office efficiency, fuel consumption, compliance, safety – now each decision is based upon real-time intel. From customer service to industry innovations, PeopleNet helps you drive smarter.

The more you know, the better your fleet runs.

technology Orchestrating the supply chain

Telogis creates new routing technology

D

uring the Telogis Latitude user conference, held Oct. 27-29 in Dana Point, Calif., the company announced a set of cloud-based applications that fleets can use to move their supply and service chains to the next generation in value creation.

The first generation started with connecting people, devices and vehicles to the “Internet of Things,” said Newth Morris, co-founder of Telogis and president of Telogis Route and Navigation. Connectivity creates value in even the most simple supply and service chains, he said.

A fisherman in India once had to come ashore before he could decide to sell his catch to a broker or take his chances and go to the market. Today, cell phone connectivity has made it possible to call ahead from the boat to find the best price and then take his goods directly to market.

Telogis’ Software‘Internet of thIngs’: telogis as-a-Service platform started with connecting people, devicis used by fleets to es and vehicles to the web. connect with about next generatIon: fleets can use 400,000 vehicles. The cloud-based applications to create valplatform is designed ue in their supply and service chains. to give Telogis cusstrIke up the band: the chaltomers access to data lenge is in moving from connectivity from electronic conand connections to orchestration. trol modules, sensors, cameras, wearable devices and more.

“We are in a moment where there is the opportunity to have 100 percent connectivity,” Morris said. “We have vehicles, and not only vehicles, but everything that’s on a vehicle.”

The connected vehicle can be combined with powerful mobile computing devices such as smartphones. “The challenge is no longer connecting things,” he said. “The challenge is in moving from connectivity and connections to orchestration.”

Orchestration involves the use of super-computing power in the cloud to solve complex and dynamic routing problems. The result is people and products getting to the right place, at the right time, in the safest and most efficient way possible.

To achieve this goal, Telogis has developed the following applications for its SaaS platform:

technology Making the latest technology developMents work for your fleet

by AAron Huff

Aaron Peele, outbound logistics manager for Door to Door Logistics, describes how the company uses routing tools to gain a competitive advantage in the online grocery business.

Telogis Sites. This feature previously existed in Telogis’ commercial navigation application and now is available for all of its routing products. With Sites, users can fine-tune their final-mile routing to improve efficiency and safety. Specific route instructions for the ingress and egress at each stop location can be added to route plans.

Telogis Curated Sites. This application gives users access to final-mile site-specific route directions created by other users.

Telogis Quick Route. This “easy onramp” is designed for businesses to start using Telogis’ route optimization platform by importing customer stop data, planning routes and then pushing routes out to the field through a single intuitive online interface.

Telogis Navigation 6.0. The latest version of Telogis’ commercial navigation app has been rebuilt from the ground up to leverage Apple and Android operating systems and to take advantage of more dynamic data such as lane guidance.

Telogis Control Room. This app is designed to give users real-time visibility into how their route plans are progressing and to support data for traffic, weather and customer-specific parameters.

Telogis Dispatch. This tool leverages Telogis Control Room and the company’s route optimization engine to assist dispatchers with responding to changes throughout the day.

One of Telogis’ customers, Door to Door Organics, uses routing tools to gain a competitive advantage in the online grocery business, which is projected to grow from 3.3 to 10 percent of the $500 billion grocery market in the next 10 years.

The Boulder, Colo.-based company, founded in 2005, delivers groceries in 30 major cities in five markets. Its revenue is on pace to increase from $35 million in 2014 to $50 million in 2015, said Aaron Peele, outbound logistics manager.

Door to Door’s order volume has increased 20 percent over last year, Peele said, but labor costs have come down by more than 10 percent due to the efficiency of its route planning process, which will help with expansion next year and beyond. aaron huff is senior editor of Commercial Carrier Journal. e-mail ahuff@ccjmagazine.com or call 385-225-9472. commercial carrier journal | december 2014

35

technology

InBrief •

Continued on page 38

SmartDrive Systems, a provider of driving performance systems for reducing collisions and improving fuel efficiency, was issued a patent by the U.S. Patent and Trademark Office for its application for advanced driving maneuver detection and integration with onboard active safety systems.

•

Pegasus TransTech announced Transflo On-Demand, a new document delivery and retrieval service that gives drivers the ability to print, fax or e-mail documents from its nationwide Transflo truck stop scanning network.

Documents sent by carriers and brokers can be stored in the cloud and retrieved by drivers at their convenience directly from a truck stop kiosk.

•

Drivewyze’s PreClear bypass service has been added at three locations on U.S. Interstates 40 and 95 in North Carolina, making it the 30th state to offer the mobile-based weigh station bypass service.

•

Orbcomm, a global provider of machine-to-machine systems, agreed to acquire SkyWave Mobile Communications, the largest M2M service provider on the Inmarsat global L-band satellite network, for $130 million.

•

Omnitracs will be holding its first joint user conference – Omnitracs Outlook 2015, which includes all Omnitracs, RoadNet and XRS users – on Feb. 8-11, 2015, in Dallas. Attendees can register for the event at http://info.omnitracs. com/outlook.

•

Transplace, a provider of transportation management services and logistics technology, released Optimize Prime, a platform that designs, analyzes and optimizes transportation distribution networks to help eliminate waste and reduce transportation costs. Optimize Prime works with a third-party logistics provider’s transportation management software system to optimize mode selection, load consolidation, optimal carrier assignment, continuous moves matching and shipment routing.

•

ALK updated its CoPilot Truck mobile GPS navigation app for iOS and Android. The company said the update, v9.6.2, includes a revamped and restyled user interface and a full map update for PC Miler commercial routing with truck-specific attributes

36

DPL Telematics creates portable trailer-tracking device

D

PL Telematics, a provider of asset monitoring and telemetry technologies, released its MultiTrack system for wireless monitoring and remote tracking of powered or unpowered assets from any device to help reduce theft, prevent loss and manage inventory. Features include: • Internal battery powered for up to 16 weeks between charges. The unit recharges in three hours via a wall DPL Telematics’ Multiplug; Track system is designed • Little to no sky view required, allowing it to be hidto notify whenever the host asset begins moving. den inside or under certain assets; Alerts can be set during • Rugged waterproof design for deployment in harsh customer-defined curfews environments; and whenever there is unauthorized activity.

• A compact portable profile for rotation between company assets.

As a locator, the MultiTrack is designed to notify whenever the host asset begins moving. Alerts can be set during customer-defined curfews whenever there is unauthorized activity. As a semi-permanent trailer-tracking device, an optional wiring harness may be used to extend battery life.

– Aaron Huff

Motorola adds Symbol TC70 mobile touch computer

M

Motorola’s Symbol otorola Solutions released an enterprise-class TC70 touch commobile computer running the Android Kitputer is designed Kat operating system. The company said the Symbol to combine the ease of use of a TC70 touch computer combines the ease of use of a smartphone with smartphone with purpose-built durability, reliability purpose-built duand performance. rability, reliability Key features, according to Motorola, include: and performance.

• A large 4.7-inch high-resolution display that can adjust automatically to changing conditions so it can be used with wet fingers, gloves or a stylus; • A voiceover IP-ready format equipped with Extensions (Mx) by Motorola Solutions, providing an added layer of security, manageability, data capture and wireless software features; • Mx Data Capture for application developers to integrate barcode scanning, signature capture, image capture and payment processing; • Motorola’s Workforce Connect Push-To-Talk Express that enables the device to serve as a two-way radio via Wi-Fi; and • PowerPrecision batteries, fully submersible IP67 sealing and the ability to withstand high drops to concrete.

– Aaron Huff

commercial carrier journal | december 2014

“ELITE SUPPORT KNOWS THE INS & OUTS OF

MY TRUCK. SO MY TRUCK IS

IN & OUT FAST.” ANDY ROTH,

CO-OWNER, DEDICATED DELIVERY PROFESSIONALS, INC.

WHO DO YOU TRUST WITH YOUR TRUCK? For maximum uptime, look for Elite SupportSM Certified Freightliner and Western Star dealers. This distinction requires a commitment to exceptional levels of customer service and performance. With continuous improvement efforts and technicians trained by the manufacturers, we streamline your return to the road. It’s all a part of why elite drivers and fleets demand the Elite Support experience.

Visit EliteSupportNetwork.com to find the nearest location.

Experience a Higher Standard.

Copyright © 2014. Daimler Trucks North America LLC. All rights reserved. Daimler Trucks North America LLC is a Daimler company.

technology

Geotab launches GO7 telematics system

G

eotab, a telematics engineering company, released its GO7 telematics device that supports a variety of fleet management applications for detecting vehicle data communications from the engine, drivetrain, instrument cluster and other relevant subsystems. The plug-and-

play device has internal antennas and is designed to be future-proof for any fleet to install quickly and maintain for a longer period of time.

The device supports a range of monthly subscription-based reports and services, including Geotab’s fleet management software portal, MyGeotab. GO7 also is compatible with a variety of mobile devices for the in-cab driver display, including both Apple iOS and Android platforms. Geotab offers electronic hours of service, driver vehicle inspection reporting and driver safety feedback as optional applications.

The latest edition of Geotab’s GO devices is designed to cater to more than one vehicle protocol at a time, allowing the device to collect data simultaneously for all possible datasets, such as rpm, VIN, fuel level, seatbelt detection and odometer.

– Aaron Huff Continued from page 36 such as height and hazardous materials restrictions, truck-related points of interest, state mileage calculators and more.

CoPilot Truck’s new ActiveRoutes feature calculates routes using average road speeds at the exact time of day and day of the week a driver is scheduled to travel for precise routing.

•

Winegard announced a partnership with DAS Distributing to offer its expanded truck TV antenna lineup at more than 500 truck stops. The lineup of portable satellite and/or over-the-air TV antennas includes the Pathway X1, Carryout G2, Rayzar Amplified and Rayzar Mini.

•

Help Inc., the nonprofit that oversees PrePass, named Terry Maple regional director overseeing several northern and Midwestern states. Help’s regional directors serve as the principal points of contact with state commercial enforcement agencies.

Interested In truckIng technology?

Scan the barcode or go to www.goo.gl/Ph9JK to subscribe to the CCJ Technology Weekly e-mail newsletter.

38

commercial carrier journal | december 2014

Radiator Works_CCJ1014_PG.indd 1

9/18/14 10:11 AM

With 23 new fuel-saving features, the Kenworth T680 Advantage is our most advanced and aerodynamic truck. Powered by the optimized PACCAR MX-13 engine and new Eaton Fuller Advantage™ transmission, it helps you achieve exceptional financial performance while driving efficiency for your company.

Experience the T680 Advantage today.

Follow us on

www.kenworth.com Ask your local Kenworth dealer about excellent leasing and financing options.

ISO 9001:2000 Š 2014 Kenworth Truck Company. A PACCAR company.

technology

in focus: ElEctronic logging dEvicEs

Low-cost logging Compliance options expand ahead of ELD mandate by aaron huff

T

he final rule mandating the use of electronic logging devices by drivers and fleets is scheduled to be published Sept. 30, 2015, with enforcement set to begin Sept. 30, 2017. For fleets that already have onboard communications systems, the cost to implement an ELD solution for paperless driver logs is incremental, perhaps $5 to $10 plus a periodic subscription per truck.

For fleets that lack a mobile computing platform or are considering replacement options before the ELD mandate arrives, the market is filling up with low-cost compliance options.

Aftermarket subscriptions Several ELD compliance applications can be purchased from suppliers using a subscription model that includes the hardware.

BigRoad’s Automatic On-Board Recording Device option for its paperless driver logging application is available for Android- and iOS-powered smartphones and tablets. Drivers and fleets can plug a link into the truck’s data portal, which communicates via Bluetooth to the BigRoad app. The package is available for $10 a month for the plug-in hardware and $15 for the software.

BigRoad’s Automatic On-Board Recording Device option for its paperless driver logging app is available for Android- or iOS-powered smartphones or tablets.

40

commercial carrier journal | december 2014

Navman Wireless plans to leverage Apple and Android devices for the driver display portion of its telematics platform.

XRS, which recently was purchased by Omnitracs, offers a small in-cab “Relay” device that communicates via Bluetooth with a wide range of compatible devices, including the driver’s smartphone or tablet.

XRS has been offering the Relay device to fleets for no upfront cost with a subscription to its Software-as-a-Service platform that includes electronic logs, vehicle and driver performance data, integrated messaging and other features traditionally associated with onboard computers.

J.J. Keller and Associates and Verizon recently announced a partnership to develop an integrated fleet compliance and telematics system for all vehicle classes.

The system uses the Verizon Networkfleet telematics platform to communicate data to the J.J. Keller Mobile app for smart devices and tablets and to the J.J. Keller Encompass compliance management portal.

J.J. Keller is “not in the business of selling technology,” says Rustin Keller, executive vice president and chief operating officer. “We leave that to our partner. We are in the business of compliance solutions.” J.J. Keller is “focusing our energy on the best driver experience on the mobile app and breadth of compliance in the back office,” he says.

Rand McNally offers an ELD compliance system that includes navigation and fleet management applications.

Its IntelliRoute TND 730 navigation device can be paired via Bluetooth to its HD 100 device that connects to the vehicle’s data port for a fully compliant ELD. The TND 730/HD 100 package retails for less than $600 with a monthly service fee.

Starting next year, Navman Wireless will leverage Apple and Android devices for the driver display portion of its telematics platform. The company’s ELD application is

technology available for a monthly subscription that includes the hardwired telematics device for between $60 and $80 per month, says Steve Blackmon, vice president.

AT&T has an exclusive relationship with WebTech Wireless to sell its ELD, driver vehicle inspection reports and fuel tax compliance software as AT&T Fleet Driver Center.

The product has the option of using tablets and handsets as the driver interface and can be delivered with no upfront costs for a monthly subscription, which includes fleet tracking and other telematics functions.

Rand McNally’s IntelliRoute TND 730 navigation device can be paired via Bluetooth to its HD 100 device that connects to the vehicle’s data port for a fully compliant ELD.

TRUCKING

Factory-fit ELDs Truck makers are offering factory-installed telematics platforms. A built-in telematics system can be paired with the fleet’s preferred mobile device to run ELDs and other fleet management applications.

Daimler Trucks North America offers the Detroit Connect telematics system developed in conjunction with Zonar. The system uses an Android-powered onboard tablet that comes pre-loaded with four trucking-specific apps for navigation, hours of service, pre- and post-trip inspection and two-way messaging.

Volvo and Mack trucks now come equipped with a telematics solution provided by Telogis. Using the base

Telogis Fleet platform, fleets can add the Telogis Compliance suite for electronic logs and DVIR and fuel tax compliance for a combined monthly subscription of between $30 and $50 a month, says Kelly Frey, vice president of product marketing for Telogis.

It’s not just fleets with heavy-duty trucks in need of ELD compliance solutions; any commercial driver of a vehicle combination weighing more than 10,000 pounds could be required by law enforcement to produce electronic logs.

That’s why Telogis also has partnerships with the major manufacturers of light- and medium-duty trucks to offer its telematics platform straight from the factory.

WORKERS’ COMP FOR WORKING PEOPLE

FOR MORE INFORMATION, CALL: (800) 897-9719 | AMERISAFE.COM COMMERCIAL CARRIER JOURNAL | DECEMBER 2014

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Ready.

Set. Learn.

CCJ and its CCJ Innovators partners are proud to highlight the achievements of the industry’s most innovative fleets.

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 Scan the QR code to directly link to the CCJ Innovators website for the complete rules and criteria along with the nomination form as well as browse archives of past Innovator articles, webinars and podcasts.

Sponsored by:

Nominate your fleet as a CCJ Innovator at ccjinnovators.com.

INNOVATORS

Walmart Transportation nears the summit on its quest to double fleet efficiency in 10 years

BY JEFF CRISSEY

T

he driver shortage that so many analysts and industry insiders have been predicting in recent years is finally here in full force. At the same time, tonnage is at an all-time high, further crimping the trucking industry’s potential for capitalizing on good business conditions after a hard recession. As many fleets have maximized their recruiting and retention efforts, the focus now shifts to squeezing every ounce of productivity and efficiency out of their truck assets.

Before 2005, Walmart Transportation worked like many fleets to realize incremental gains in fuel and freight efficiency annually. Then, during the height of the previous driver shortage, Walmart announced a new global responsibility initiative that included a lofty goal for its private fleet to double its efficiency in 10 years from a baseline in 2005 to 2015.

For Walmart – a company whose U.S. operation employs 1.3 million people and has 4,987 retail stores, 42 regional distribution centers (each serving roughly 100 retail locations) and a fleet of 7,000 trucks – identifying and correcting inefficiencies in freight movement would have a major impact on its environmental footprint while it works to meet its goal.

More with less To establish its 2005 baseline, Walmart Transportation established a formula to calculate its fleet efficiency by dividing vehicle miles traveled by miles per gallon to determine fuel consumption. It then takes the number of cases delivered and divides that by fuel consumption.

WALMART TRANSPORTATION Bentonville, Ark. In the first several years of its efforts, Walmart Transportation set its sights on big wins, such as route optimization and strategic location of its distribution centers. It then focused on packaging, working internally and with suppliers to reduce the amount of space required in each trailer in order to load more freight.

The fleet also leveraged its relationships with truck OEMs, trailer makers and suppliers to upgrade equipment to the latest technology and to add new tire designs and inflation systems. In 2006, it added auxiliary power units to tractors used in overnight operations, which netted the company savings of $25 million in diesel costs in just two years.

These early efforts were promising.

By 2008, Walmart Transportation was driving 7 percent fewer miles – an actual reduction of 90 million miles – while delivering 3 percent more cases per load. The end result was a 38 percent improvement in fleet efficiency in 2008 compared to the 2005 baseline, easily surpassing its interim goal of 25 percent.

In 2008 and 2009, Walmart Transportation replaced 2,400 of its 7,000-truck

The retail giant employs a series of improvements and innovations to deliver more goods with fewer miles traveled.

COMMERCIAL CARRIER JOURNAL | DECEMBER 2014

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fleet with newer aerodynover, Germany, the concept namic models to further intruck has a fuel-neutral crease fuel efficiency. It also turbine engine, meaning it focused on better efficiencan run on diesel, gasoline, cies in how freight is loaded natural gas, biofuels and into trailers (the company other sources, says Elizabeth discovered that shorter dock Fretheim, director of busiemployees couldn’t reach ness strategy sustainability the top of the trailer when in Walmart’s logistics wing.

At the Mid-America Trucking Show earlier this year, Walmart unveiled a new concept truck that features a teardroploading merchandise, so it The turbine engine uses hyshaped body and fuel-neutral turbine engine that can run on now uses stepping stools to brid power, with the electric diesel, gasoline, natural gas, biofuels and other sources. increase fill by 3 percent), motor and energy storage reducing empty miles and handling acceleration and tation, Walmart’s global responsibilcross-dock consolidation deceleration, and producing ity initiative has resulted in an 84.2 networks. low emissions without aftertreatment. percent improvement in fleet efficiency About the same time, Walmart beFretheim says the company then compared to 2005, or 830 million more gan to explore alternative fuel options, wanted to “make something bolder, cases while driving 300 million fewer and the company currently is evaluatmore transformative” for itself. There’s miles. The company recognizes that ing both compressed natural gas- and no word yet on what type of fuel in recent years, large gains in fleet efliquefied natural gas-powered traceconomy numbers the truck posts, as fi ciency are harder to come by as it now tors, and also has explored renewable track testing is just now underway. searches for new opportunities to imdiesel in the form of animal fat, grease The truck’s cab has been placed over prove efficiency by another 16 percent and vegetable oil in a joint partnerthe engine, shortening its wheelbase by the end of next year. ship with Tyson Foods at a Louisiana and reducing weight. The gap between distribution center. the trailer and truck has been reduced Another tool Walmart TransportaFrom concept to reality to lower trailer aerodynamic drag. The tion uses is lean routing, a concept that In a demonstration of just how serious trailer’s body is made almost entirely of involves monitoring seasonal demand Walmart remains in its quest to increase carbon fiber, cutting weight by about for certain products and altering shipefficiency past 2015, the company last 4,000 pounds. ments to meet that demand rather than March unveiled a new tractor-trailer Fretheim says though a truck like this delivering on fixed schedules. Walmart concept at the Mid-America Trucking may not go to market for some time if says if a store normally receives daily Show that features a teardrop-shaped ever, the technologies of the truck are deliveries during peak season, it can body that the company hopes will imits key sticking points. eliminate extra miles and extra deliverprove aerodynamics by 20 percent over CCJ INNOVATORS profiles carriers and fleets ies by adapting the schedule to lessconventional models. than-daily shipments to keep trailers as Developed after Walmart representa- that have found innovative ways to overcome trucking’s challenges. If you know a carrier that full as possible. tives saw another truck on display four has displayed innovation, contact Jeff Crissey at jcrissey@ccjmagazine.com or 800-633-5953.

Through eight years of implemenyears ago at the IAA Show in Han44

COMMERCIAL CARRIER JOURNAL | DECEMBER 2014

Virtual CoaChing New apps help drivers, fleets improve fuel efficieNcy By aaron huff

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onsidering the amount of fuel burned by commercial vehicles, modest gains in fuel economy can add up quickly to benefit the bottom line. But despite the best efforts by truck and engine manufacturers and aftermarket suppliers to optimize fuel economy, studies show that as much as 30 percent of mpg is controlled directly by drivers.

Today’s advanced trucks and engines generate an enormous amount of data from various electronic control modules and sensors. Mobile fleet management systems are used widely by commercial and private fleets to capture this data and create various reports and alerts regarding the performance of their vehicles and drivers.

Fleet managers traditionally reviewed this information before giving drivers feedback on what they could have done differently to increase fuel efficiency. Today, this after-the-fact approach is changing with the adoption of new applications that put drivers on the front line of visibility.

Many of these technologies act as a virtual driver coach to give drivers instant feedback at the moment it can help make a difference. Several technology providers now offer applications and are planning more soon-to-be-released features designed to improve fuel efficiency by interfacing directly with drivers.

• PedalCoach is an application designed to give instant feedback to drivers regarding the optimal amount of throttle input. The user interface is a digital gauge 50

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with a needle that measures the fuel flow rate to the engine. The bottom third of the gauge has a green zone that represents the fueling target – the appropriate amount of fuel for the truck at any given moment.

The green zone turns to yellow in the middle and red along the top third. The objective is to keep the needle in the green; a meter on the app tracks every mile the driver is successful.

The PedalCoach algorithm calculates the fueling target instantaneously from ECM data, taking into account equipment specifications, topography, temperature, weight and other factors.

PedalCoach typically is deployed on smart devices and mounted in the cab for drivers to see as they scan their mirrors.

Within a few seconds after completing a trip, PedalCoach displays a score – the percentage of time the driver was “green.”

The app also sends data to cloud servers.

LinkeDrive, the company that developed PedalCoach, also offers its Data online management portal where fleet managers can view more in-depth fuel efficiency information on drivers and assets.

The PedalCoach system isn’t designed to provide people with data to act upon later, says Jeff Baer, founder and chief executive

| december 2014

The PedalCoach application is designed to give instantaneous feedback to drivers for the optimal amount of throttle input.

officer of LinkeDrive.

“Any technology can do that,” Baer says.

Instead, PedalCoach uses a “human-centric” approach by providing instant feedback to help drivers train themselves to accelerate more gently and preserve momentum, he says.

It’s possible that drivers may ignore the app, and experience has shown that they have to be engaged by more than an app to sustain fuel savings, Baer says. He believes that PedalCoach is more effective when tied to a fuel incentive plan, and

Zonar’s ZFuel online application analyzes and displays complex data to help fleet operators and drivers improve fuel efficiency.

LinkeDrive says it can help fleets increase the driver engagement factor.

The company changed its business model to be more than a technology provider; it also plays a support and consulting role with drivers to help them with fuel performance. “We made driver engagement part of the model,” Baer says.

• PeopleNet soon will begin developing a new in-cab driver scorecard for its fleet mobility platforms that will give drivers real-time visibility of any violations of their companies’ standards for speed, rpms, idling and sudden deceleration and acceleration events.

The scorecard can incorporate violations caught by collision avoidance and lane departure warning systems, which

tend to correlate with fuel-efficient driving. Fleets will be able to configure the scorecard using PeopleNet’s fleet management portal.

While in motion, drivers will be able to monitor their progress on the “safe mode” screen. If violations occur during the measurement period, such as every 20 days, a line on the screen will change

PeopleNet’s new in-cab driver scorecard feature will be available for its fleet mobility platforms.

from green to yellow and, for more serious violations, to red. The system can alert the office when a driver’s score falls below a certain threshold.

The new scorecard is designed to get drivers and fleet managers on the same page, says Rick Ochsendorf, executive vice president. “There is no reason for conflict if everyone has the same data,” Ochsendorf says.

• Zonar offers its ZFuel online application designed to analyze and display complex data to help drivers and fleet operators improve fuel efficiency. A fuel efficiency score shows drivers how they performed under the circumstances of each trip. ZFuel also calculates the amount of money drivers could have saved during each ignition on/off event if they had taken every possible step to optimize fuel economy.

Fleet managers can view a ranked list of drivers according to their fuel efficiency scores and fuel losses, and then drill down to see how individual drivers performed on particular routes. The performance of one driver could be compared against other drivers who drove the same route.

An interactive map display helps to identify problem areas. Clicking on a route’s red segment zooms in on the area and shows a chart of all the fuel variables for that period, such as speed, temperature, incline and use of cruise control.

ZFuel is an option for Zonar’s fleet

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technology: Fuel-Saving appS management system that comes with the company’s 2020 industrial-grade Android tablet display, V3 onboard computer and the Ground Traffic Control online management portal.

• CarrierWeb is developing new driver scoring and coaching applications for its CarrierMate mobile fleet management system.

As a standard CarrierMate feature, drivers can view their individual performance statistics by trip using the in-cab Mobile Data Terminal when the vehicle is not in motion. Fleets also can allow drivers to access CarrierMate’s online management portal to view individual performance metrics.

The portal can be arranged to show drivers the fleet’s goals for fuel economy, idle time, speed and other parameters, allowing drivers to track their own performance.

CarrierWeb also is planning a graphical user interface for its Mobile Data Terminal to allow drivers to see how their performance measures up against peer groups.

If the fleet is averaging 6.8 mpg, drivers can see where they rank within the lower, middle or upper tier of that parameter.

CarrierWeb also is developing training tools to show drivers how to improve to reach the top tier, such as idle reduction tips, shifting techniques and other areas. The company also is creating more real-time alerts to give drivers an advance warning when the system detects a problem, such as a decline in fuel economy, before the alerts escalate to the fleet management level.

CarrierWeb is planning new driver scoring and coaching applications for its CarrierMate mobile fleet management system.

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• Omnitracs has added mpg performance information on its Mobile Computing Platform 110 (MCP110) and 200 (MCP200) user interfaces, allowing fuel efficiency feedback to be delivered directly to the driver via the in-cab unit.

• FuelOpps is an application designed to provide feedback to drivers regarding fuel-efficient driving techniques based on the type of equipment they use. The

Omnitracs added mpg performance information on its MCP110 and MCP200 user interfaces.

application automatically transmits driver performance information from the fleet’s existing mobile computing systems to the FuelOpps database on a daily basis.

FuelOpps also sends messages to drivers through the fleet’s mobile computing platforms. On Mondays, drivers might receive a message detailing skill strategies to attain the weekly goal. Midweek, their progress could be evaluated, with feedback relayed via another message. On Fridays, a summary would be available for review.

Drivers also can access the FuelOpps database online, where a screen shows three ratings for fuel efficiency: acceleration and shifting, cruising and overall driving.

For each rating, FuelOpps shows drivers a score on a 10-point scale. Shading around the score shows the range of all driver scores in the fleet for each group, such as local, regional and longhaul.

Drivers also see their group percentile ranking and their overall FuelOpps rating, a blended ranking using the first two ratings. By scoring in the 55th percentile or higher, drivers earn points for every mile they drove that day within fleet parameters; no points are deducted.

| december 2014

Depending on how the fleet sets up the program, drivers can redeem their FuelOpps points from an online gift catalog or for a fleet-specific award, such as a meal voucher or cash.

• Cadec designed its PowerVue fleet management platform to be integrated with many third-party products and to proactively coach drivers toward performance benchmarks. Managers can set parameters for speed, rpm and idling, and drivers can receive visual and audible alerts.

• SmartDrive offers a video-based driver risk management system that has both a safety and a fuel-saving application for drivers to monitor their performance.

Fleets that implement SmartDrive typically start with the safety program, which measures 80 different driving skills.

After fleets have seen the safety program’s results, they tend to add the fuel efficiency application, says Jason Palmer, president of SmartDrive.

The SmartDrive Fuel app shows drivers a score that is a measure of how their fuel-saving behaviors compare to other drivers and to the target mpg for their vehicle. The target mpg is based on individual route characteristics, such as the mix of freeway versus city driving.

SmartDrive also captures fuel-inefficient events on video that fleet managers can review later with drivers to help them improve certain behaviors such as shifting techniques. The video is displayed on a dashboard that contains a number of digital gauges for SmartDrive offers a rpms, speed and video-based driver risk other parameters management system that captured during has both a safety and a the event. fuel-saving application.

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By JaCk RoBeRtS

Some fleet managers and truckers pine for a dependable, affordable truck without all of today’s bells and whistles. Can they rewind the clock?

T

he pace of technological change in trucking over the past decade has been breathtaking. Commercial vehicles rolling off assembly lines now boast standard and optional features that would have been unthinkable on high-end luxury cars just a few years ago.

The proliferation of technology has penetrated virtually every aspect of truck design, from GPS-oriented telematics systems to computer-controlled integrated powertrains, high-pressure common-rail fuel injection systems and Bluetooth systems that enable drivers to talk on the phone safely.

Trucks increasingly are becoming rolling robots with an ever-increasing ability to “think” for themselves. This 54

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technology push has reached such unprecedented levels that several OEMs are testing fully functioning “driverless” trucks, and it appears that some level of autonomous driving functionality may become commonplace within the next 20 years.

Yet, more fleet managers are becoming less than enthusiastic concerning trucking’s technological explosion. That’s because all the new technologies found on today’s commercial vehicles come with tradeoffs – and some fleets say they cannot see an end to the new problems that have piggybacked these high-tech models.

The most glaring unwanted burden has been skyrocketing truck prices. OEMs point out that many of the new technologies – particularly emissions and engine systems – are the result of government mandates. The cost of developing these systems can total hundreds of millions – if not billions – in research and development costs. There is simply no way, OEMs say, they can avoid passing these costs along to fleets.

At the same time, the exponential leap in new and advanced technologies found on today’s trucks is stressing the

EquipmEnt: Low-Tech Trucks industry’s service and support network, which already is struggling with a crippling technician shortage (see CCJ November 2014). There already are not enough technicians at either fleets or dealerships to handle repairs, and the few that are there are unprepared to deal with new vehicle systems coming online – especially computing and software issues.

Finally, fleet managers say, there is the issue of durability.

“I talk to owner-operators leased to our fleet all the time,” says Margret Hogg, general manager of Toronto-based J.G. Drapeau, a long-haul hazmat fleet. “They all drive beautiful old trucks that are dependable day in and day out. They don’t want anything to do with all these new technologies because they run trucks that work when they need them to.”

Hogg believes vehicle reliability has never been lower than it is today. “We still have a 2002 model in our fleet that is far more dependable than a comparable 2012 model,” she says.

“We’ve only had six major repairs with the ’02 truck since we got it. In contrast, the ’12 model has already had 11 major breakdowns. That’s not an isolated event, either.”

Another Midwestern fleet manager says that while his fleet has purchased new tractors this year and will purchase more in 2015, those new trucks will be glider kits.

“We’ve left our OEM supplier completely,” says the manager, who wished to remain anonymous. “We just got tired of having breakdowns. Usually those breakdowns were noncritical items. Something in the electrical system would go bad – a sensor, most of the time – and the computer just won’t let the truck run. Then it took forever and cost a fortune to get the truck repaired and back on the road. We’re sick of it.

Gliders are simpler trucks, and they’re more affordable, too. I can’t see us buying new trucks again anytime soon.”

Owner-operators leased to Toronto-based longhaul hazmat fleet J.G. Drapeau prefer older trucks they believe are more dependable, says Margret Hogg, general manager.

possible the same thing could happen in the U.S. commercial vehicle market today.”

But, Kar says, for all the grumbling about truck prices and technology, the fact remains that new commercial vehicles in North America are the most efficient the world has seen.

“It is easy to forget that all this new technology in the spotlight has very real benefits for fleets today,” he says. “These trucks are the most environmentally friendly and most fuelefficient in history. They are also safer and allow drivers to be more comfortable and productive.”

At the same time, he says, drivers in long-haul applications are more connected, and resale values never have been higher. “There are fleets that are leveraging all this technology to make more money.”

Still, Kar says, the advent of lower-cost trucks remains a distinct possibility – particularly in medium-duty markets. “It is possible we may see a ‘reverse innovation’ process take place.”

Kar says that several major players in the North American commercial vehicle market – notably Volvo and Daimler –

Reverse innovation More than five years ago, Sandeep Kar, global director of commercial vehicle research for industry analysts Frost & Sullivan, first postulated the rise of cheaper, simpler truck designs to counter today’s high-tech models.

“We’ve seen this before in the U.S. auto industry,” Kar says.

“In the 1960s and ’70s, U.S. automakers thought they had the perfect size and design for passenger cars. Then Toyota attacked, and all those designs were obsolete in an astoundingly short period of time. It is Seattle-based Rainier Truck and Chassis is the first outside component assembler to market its line of low-tech Class 4-7 cabover models in North America. commercial carrier journal

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EquipmEnt: Low-Tech Trucks Sandeep Kar, global director of commercial vehicle research for industry analysts Frost & Sullivan, predicts that Class 8 new truck prices will increase by at least another $10,000 to $15,000 by 2020.

already are building and selling dependable, simpler lowcost trucks for emerging markets around the world, such as China, India and Russia. “They already know how to build these vehicles,” he says. “Many component manufacturers are doing the same thing.”

Kar cites Hendrickson’s 27-ton rubber truck suspension developed for the company’s China market. “It’s a durable, cheaper design, and they’ve discovered that it’s capable of handling a 40-ton payload just fine.” Hendrickson now is bringing the suspension to North America. “They’ll sell the same product engineered for the developing world here for a higher margin,” he says. “It’s a win-win-win for them.”

A simpler ride Another medium-duty prediction made by Kar a few years back has become reality: Truck assemblers are taking U.S.-compliant components from around the world and assembling a simpler, durable low-cost model for the North American market.

Seattle-based Rainier Truck and Chassis became the first outside component assembler to begin marketing its line of Class 4-7 cabover models in North America. Gary Jones, Rainier’s chief executive officer, says feedback obtained during the due diligence phase of the company’s launch convinced him that dealers, fleets and drivers are “fed up” with today’s complicated vehicle technology.

“Routine maintenance is one thing, but it takes an IT wizard to chase down defective programming modules today, all while a truck is sitting idle and not earning any revenue,” Jones says. “Based on this feedback, we saw an opportunity to fill a void by offering customers a reliable low-tech intelligently-designed COE platform.”

Rainier uses proven components to build what Jones calls a “brand-new old-school truck” with simplicity and durability as defining design principles. “We’re using components every fleet manager is familiar with,” he says, citing Cummins engines and Allison transmissions as examples. But Rainier keeps the programming in those components as 56

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simple as possible to make maintenance and repairs just as uncomplicated.

“We’re not concerned with bells and whistles,” Jones says.

“I’m not interested in an electrical system to softly turn off a dome light. The light can either be on, or off, if the cab door is closed. If the bulb goes out, someone can figure that out without a dash light telling them and quickly replace it.”

Long-haul limits Jones and Rainier may be first out of the box with a marketable low-tech truck, but Kar thinks other offshore manufacturers soon may test the waters in the North American market. While that may be good news for medium-duty fleets looking for alternatives to high-tech rigs, Kar doesn’t think long-haul fleets can expect any new options anytime soon.

“Because of the specific role long-haul fleets play in the North American market, it is far more likely that any low-tech push in Class 8 will be limited to municipal and vocational applications,” he says.

For many medium-duty fleets, low-cost low-tech trucks may prove irresistible, but Kar says that appeal will not translate well into other Class 8 applications – especially those with resale concerns.

“If a medium-duty fleet can purchase a new Class 5 or 6 truck for 20 to 25 percent less than a standard vehicle today, there are some applications where they will be able to run those vehicles into the ground over a four- or five-year period and walk away,” he says. “Even without a second life from the trucks, that fleet will have made money. It’s a good deal for the fleet, and it’s also a good deal for the manufacturer, which gets to sell even more trucks over that period of time.”

Even worse for long-haul fleets, Kar predicts that Class 8 new truck prices will increase by at least another $10,000 to $15,000 by 2020. However, he thinks fleets will absorb these costs easily because those future tractor designs will be more fuel-efficient than current ones.

“It all boils down to the economy, really,” he says. “If the economy is good, high-tech trucks will soon deliver higher values that will be absorbed by fleets, assuming margins are better than they are today.”

But if the economy remains flat or turns down, Kar says all bets are off, and lower-tech lower-priced trucks eventually may find their way into future long-haul designs.

“If fleet margins don’t change, then the market will have to shift,” he says. “OEMs will have start asking themselves hard questions, because at the end of the day, they want to sell trucks. If no one can afford a new truck because it is packed with a suite of high-technology components, then they will have to respond to those market demands. If they do not, I guarantee other offshore manufacturers will.”

HOW TO MANAGE CASH FLOW

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

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

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

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

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

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

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

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payables and other obligations before you consider investment options.

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

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

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

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

| DECEMBER 2014

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

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

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

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

If, for example, you owe $10,000

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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CCU manuals are available on USB drives and can be purchased online through eTruckerStore.com.

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| DECEMBER 2014 59

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products new

Flatbed trailer Steerable auxiliary suspension system Ridewell’s expanded RSS-233 product line now includes a 20,000-pound-capacity steerable auxiliary suspension system that features a compact mounting envelope, an adjustable frame width to help simplify installation and dust shields to help extend brake service life. Ride heights range from 8 to 15 inches with total travel of 12½ inches and a 9½-inch lift. Options include a preplumbed air tank and a Kaiser kingpin.

Ridewell Suspensions, www.ridewellcorp.com, 800-641-4122

Tire changer Coats’ ProGuard Plus Leverless tire changer is designed to reduce the risk of tire damage in oversized, run-flat and low-profile applications. Built-in features help reduce user strain such as lifting, prepping, bead loosening, mounting and demounting, and all are done with easy-to-use controls from a single operator location.

Hennessy Industries, www.ammcoats.com, 800-688-6359

Drowsy-driving warning device Resqme’s AlertMe is a drowsy-driving warning device that sits behind the driver’s ear and is designed to buzz promptly if the head falls forward unexpectedly, effectively alerting the driver to heighten focus or pull off the road. The compact device contains no mercury.

Resqme Inc., www.resqme.com, 805-568-0227

Antares Equipment’s latest 48-foot flatbed trailer has a fixed wide-spread air suspension, with bolt-on suspension hangers available. The trailer is outfitted with steel wheels and weighs 9,400 pounds with a 54,000-pound coil package and has an 80,000-pound gross vehicle weight rating; optional aluminum wheels enable a 300-pound weight reduction. All steel is hotdip galvanized, and the floor sills, flooring and side rails are tensile-strength aluminum for added corrosion protection.

Antares Equipment, www.antaresequipment.com, 888-591-0845

Heavy-duty suspension Watson & Chalin’s SL13K-1190 suspension with air disc brakes is suited for dump, mixer, refuse and heavy-haul applications and is designed with proper torqued fasteners, the ability to maintain track and sufficient clearance to facilitate faster installation.

The SL13K Series Tru-Track Alumilite is engineered for light weight and durability and incorporates the company’s proprietary quick-change ride height system. A Super Short Rail version offers a more compact mounting design when space requirements are a factor.

Watson & Chalin, www.watsonsuspensions. com, 800-445-0736

commercial carrier journal | december 2014

61

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The SP-5 is engineered to replace the power loss from electrical accessories that occurs even when the ignition is turned off. The panel is designed to desulfate and maintain all types of generators and vehicles with 12- and 24-volt lead-acid battery systems, including conventional flooded, AGM and VRLA types.

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COMMERCIAL CARRIER JOURNAL | DECEMBER 2014

63

products

Fuse line Del City’s Micro3 Fuse is designed with a subminiature style and is available in a variety of amperages ranging from 5 to 15 amps. The company’s time-delayed MCase Cartridge Fuse is engineered to handle inrush currents and is available in several amperages ranging from 15 to 40 amps.

Del City, www.delcity.net, 800-654-4757

Trailer harness pigtail line Phillips now offers three additional aftermarket trailer harness pigtail products, all with molded connections for added protection to help keep out moisture and contaminants. The Stop-Tail-Turn and Mid-Turn Light Pigtails have three bullet connectors on one end and either the standard or 90-degree PL-3 connector on the other end. The Marker/Clearance Light Pigtails have two bullet connections on one end and either a 2-pin AMP connector with sealed boot, PL-10 connector or flat seal connector on the other end. The company’s Pigtail Adapter converts a PL-3 connector, typically used for incandescent trailer lighting, to a 3-pin AMP connector for LED lighting; it also includes Phillips’ Sta-Dry sealed boot for added protection against moisture and contaminants.

Phillips Industries, www.phillipsind.com, 800-423-4512

Plastic treatment Rain-X’s water-beading Plastic Treatment is formulated to clean plastic and prevent water spots.

The cleaner is designed not to harm or change the plastic.

Rain-X, www.rainx.com, 855-888-1990

64

commercial carrier journal | december 2014

E L E VAT E Y O U R B U S I N E S S

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Kenworth . . . . . . . . . . . . . . . . . . . . . . . . . . .Kenworth .com . . . . . . . . . . . . . . . . . 39

American Drug Testing Consortium . . . .800-528-9075 . . . . . . . . . . . . . . . . . 71

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Amsoil Distributor-Jim Fleschner . . . . . .800-709-2516 . . . . . . . . . . . . . . . . . 70

Meritor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Meritor .com . . . . . . . . . . . . . . . . . . . 33

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Old World Industries . . . . . . . . . . . . . . . . . .800-323-5440 . . . . . . . . . . . . . . . . . 29

CCJ ’s Innovators . . . . . . . . . . . . . . . . . . . . . .800-633-5953 . . . . . . . . . . . . . . . . . 42

O’Reilly Auto Parts . . . . . . . . . . . . . . . . . . .FirstCallOnline .com . . . . . . . . . . . . . 10

Cenex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .800-232-3639 . . . . . . . . . . . . . . . .27A

PCS Software . . . . . . . . . . . . . . . . . . . . . . . .281-419-9500 . . . . . . . . . . . . . . . . . 67

Citgo Lubricants . . . . . . . . . . . . . . . . . . . . . .HDLubes .com/ProveIt . . . . . . . . . . 13

Penske Truck Leasing . . . . . . . . . . . . . . . . .888-361-8978 . . . . . . . . . . . . . . . . . 68

Commercial Carrier University . . . . . . . . .800-633-5953 . . . . . . . . . . . . . .58-59

PeopleNet Communications . . . . . . . . . .888-346-3486 . . . . . . . . . . . . . . . . . 34

Deckmate @ Gateway Supply LLC . . . . . .800-633-5953 . . . . . . . . . . . . . . . . . 71

Peterbilt . . . . . . . . . . . . . . . . . . . . . . . . . . . .800-473-8372 . . . . . . . . . . . . . . . . . BC

Direct Equipment Supply Co . . . . . . . . . . .800-992-1478 . . . . . . . . . . . . . . . . . 72

Peterson Manufacturing . . . . . . . . . . . . . .816-765-2000 . . . . . . . . . . . . . . . . . 57

Dish Network . . . . . . . . . . . . . . . . . . . . . . . .855-865-1538 . . . . . . . . . . . . . . . . . 60

PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .440-572-2800 . . . . . . . . . . . . . . . . . 17

Driver Recruiting Calculator . . . . . . . . . . .RandallReilly .com/DRC . . . . . . . . . 66

PrePass . . . . . . . . . . . . . . . . . . . . . . . . . . . . .888-361-PASS . . . . . . . . . . . . . . . . . 53

Elite Support . . . . . . . . . . . . . . . . . . . . . . . .EliteSupportNetwork .com . . . . . . 37

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Emerson Manufacturing . . . . . . . . . . . . . .800-633-5124 . . . . . . . . . . . . . . . . . 63

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Shell Lubricants . . . . . . . . . . . . . . . . . . . . . .800-231-6950 . . . . . . . . . . . . . . . . . 23

Fleet Soft . . . . . . . . . . . . . . . . . . . . . . . . . . . .800-980-2555 . . . . . . . . . . . . . . . . . 70

TA-Petro . . . . . . . . . . . . . . . . . . . . . . . . . . . .800-632-9240 . . . . . . . . . . . . .8-9, 12

Fumoto Engineering . . . . . . . . . . . . . . . . .707-545-7020 . . . . . . . . . . . . . . . . . 70

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Giraffe G4 . . . . . . . . . . . . . . . . . . . . . . . . . . .877-543-1087 . . . . . . . . . . . . . . . . . 68

TSI/SSG . . . . . . . . . . . . . . . . . . . . . . . . . . . . .800-223-4540 . . . . . . . . . . . . . . . . . 71

GoNMF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .GoNMF .com . . . . . . . . . . . . . . . . . . . 71

Van Alstine Manufacturing . . . . . . . . . . . .610-480-7670 . . . . . . . . . . . . . . . . . 72

Great Dane . . . . . . . . . . . . . . . . . . . . . . . . . .773-254-5533 . . . . . . . . . . . . . . . . . . 5

Verizon Networkfleet . . . . . . . . . . . . . . . . .866-869-1353 . . . . . . . . . . . . . . . . .IBC

Harrington . . . . . . . . . . . . . . . . . . . . . . . . . .888-MPG-FUEL . . . . . . . . . . . . . . . . 69

Vipar Heavy Duty . . . . . . . . . . . . . . . . . . . .800-494-4731 . . . . . . . . . . . . . . . . . 18

HDAW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .HDAW .org . . . . . . . . . . . . . . . . . . . . . 65

Volvo Trucks North America . . . . . . . . . . .336-393-2000 . . . . . . . . . . . . . . .IFC-1

Howes Lubricator . . . . . . . . . . . . . . . . . . . .800-438-4693 . . . . . . . . . . . . . . . . . 15

Water Cannon . . . . . . . . . . . . . . . . . . . . . . .800-333-9274 . . . . . . . . . . . . . . . . . 70

Imperial Supplies . . . . . . . . . . . . . . . . . . . .800-558-2808 . . . . . . . . . . . . . . . . . 69

Western Star Trucks . . . . . . . . . . . . . . . . . .866-850-STAR . . . . . . . . . . . . . .30-31

IPA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .845-679-4500 . . . . . . . . . . . . . . . . . 62

Windshield Cam . . . . . . . . . . . . . . . . . . . . .403-616-6610 . . . . . . . . . . . . . . . . . 72

J .J . Keller & Associates . . . . . . . . . . . . . . . .877-564-2333 . . . . . . . . . . . . . . . . . 14

commercial carrier journal | december 2014

75

Preventable or not?

Doe can’t dodge Ram at intersection

O

n a warm summer day in the countryside near Pumpkin Patch, Ark., tractor-trailer driver John Doe rapidly was approaching Route 202, where he intended to turn left. Arriving at the intersection, Doe had a green light, so he started to make his turn, but …

Gosh dang it! He was blocked from the left by a Ram pickup whose driver had made an indecisive emergency stop at the red light on Route 202 and had wound up halfway through the intersection.

Doe initially expected that the pickup – driven by an impatient young adult named Butch Snidely – would back up a few inches, permitting the 18-wheeler to complete its green-light turn. Then, deciding that Snidely John Doe was clearing wouldn’t budge without dynamite, the intersection when Doe checked his mirrors, found that a pickup driver tried to swing around his trailer, he had plenty of room, cautiously but the pickup clipped the backed up about a foot and then trailer’s corner. Was this a entered the intersection. preventable accident?

Just before Doe was all clear, however, the light on Route 202 turned green, signaling Snidely that maximum acceleration was in order. So, deciding not to waste a few seconds for Doe to get out of the way, Snidely attempted to swing around Doe’s trailer, with the pickup’s pedal to the metal. BLAM! Snidely couldn’t ram his way past, and he clipped the corner of Doe’s trailer.

Later, Doe contested the preventable-accident warning letter from his safety director, and the National Safety Council’s Accident Review Committee was asked to settle the dispute. NSC immediately ruled in Doe’s favor, noting that he could not have prevented Snidely’s selfdestructive behavior.

76

commercial carrier journal | december 2014

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