Florida Truck News - Spring 2020 by Florida Trucking Association

Spring 2020

The Official Publication of Florida Trucking Association

At the Heart of Trucking ALSO INSIDE: SMC Awards Trucking Day at the Capitol FTA and the Florida Supreme Court

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TABLE of CONTENTS

4 | Demands of the Supply Chain By Alix Miller Experts in supply chain management believe we are on the cusp of a major transformation in the industry. How will trucking logistics change in the future—and are we ready?

SPRING 2020

DEPARTMENTS President’s Message

Trucking Day at the Capitol

SMC Awards

Moves and News

FEATURES 4

The Supply Chain

18 28 26

Paving the Way for Autonomous Trucking

Florida Seaports: Connecting Commerce

Navigating Rising Costs in the Trucking Industry

INDUSTRY INSIDER

FTA Weighs In to the Florida Supreme Court

The Importance of Grassroots Advocacy

Q + A with Lori Ann Chaussinand

FLORIDA TRUCK NEWS

SPRING 2020 | 1

Congratulations to the 2020 ATD Truck Dealer of the Year! OSCAR HORTON

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KENNETH S. ARMSTRONG, PH.D. PRESIDENT AND CEO, FLORIDA TRUCKING ASSOCIATION

VOLUME 79, NUMBER 1 • Q1 2020 STAFF: President and CEO, Kenneth S. Armstrong ken@FLTrucking.org Vice President, Alix Miller alix@FLTrucking.org Director of Operations, Brian Nerland brian@FLTrucking.org Executive Assistant, Dot Butler dot@FLTrucking.org

PUBLISHED BY:

350 E. College Ave. Tallahassee, FL 32301 www.FLTrucking.org EDITORIAL Editor: Alix Miller ADVERTISING Sales: Brian Nerland

President’s Message Wednesday of this week I spoke to the Supply Chain master’s degree class at FSU. I had done so 4 or 5 times previously. The difference in trucking and supply chain between now and just 6 years ago when I talked to the 20 students the first time is jarring. Imagine the differences in our industry 16 years or 26 years ago. The rate of change is astonishing and increasing. This magazine issue will help you put some of that in perspective, thanks to our able editor and writer Alix Miller. Because so much of FTA’s work right now is tort reform, I can’t end this President’s Message without a few words. William Large fills you in on the Supreme Court situation in this issue. Our PAC is closing in on the $250,000 we need in order to support candidates for 2020 state races—we have a rare shot at changing the whole tort reform and litigation landscape in the state. If you haven’t contributed to the PAC, please consider doing so. Call our office at 850-222-9900. In the next issue we will bring you up to speed on what did and didn’t get accomplished during the 2020 legislative session…and our plans for the 2021 session. To get the full impact, consider attending the April 16 Tort Reform Summit in Ocala. Hoping to see you soon, Cordially,

DESIGN & LAYOUT Art Director: Jeremy Ashmore © 2020 Florida Trucking Association. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of FTA. For subscription information, please contact FTA at 850-222-9900. Postmaster: Address changes to Dot Butler, 350 E. College Avenue, Tallahassee FL 32301

Tort Reform Summit April 15 -16 Ocala Hilton

www.FLTrucking.org/summit

Disclaimer: The opinions expressed by the authors of the articles contained in Florida Truck News magazine are those of the respective authors and do not necessarily represent the opinion of Florida Trucking Association or its member companies.

Ed. Note: This issue was going to press as the Coronavirus hit. The focus on supply chain could hardly be more timely.

Printed in Florida. Please recycle where facilities exist.

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e h t f o s d an

Dem Chain y l p Sup

4 | SPRING 2020

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COVER STORY: THE SUPPLY CHAIN <

By Alix Miller Upheaval. Disruption. Tectonic shifts. Profound transformation. High-stakes makeover. These are the phrases experts in supply chain management are using to describe the next few years in the field. Supply chain management (SCM) is defined as the “management of the flow of goods and services, movement and storage of raw materials, work-in-progress inventory and finished goods from point of origin to point of consumption.” Logistics encompasses a lot. Complex choreography ensures each part works seamlessly with the others and on schedule for goods to arrive at a final destination. A breakdown in the system creates, at best, frustration, and at worst, chaos. One need only look at the real-time operations during a natural disaster. Supply chain management operates invisibly most days, but when emergent situations occur, there is nothing more important than a healthy and efficient logistics network. Tactics and strategy—logistics encompasses planning and execution to manage the flow of freight. Multimodal and intermodal. From plants and factories to e-commerce. Planes, trains, ocean containers and trucks must rely on and speak to one another. Few people notice when the system is working well, but everyone does when something goes wrong. In 2018, Harvard Business Review published an article, The Death of Supply Chain Management. The authors pointed to new digital technologies which have the “potential to take over supply chain management entirely and are disrupting traditional ways of working.” The article predicts that, within five to 10 years, the current supply chain function may be obsolete. New processes may require little human interaction, relying on predictive analysis to help “companies improve demand forecasting, so they can reduce or

better manage volatility, increase asset utilization and provide customer convenience at optimized cost.”

THE HISTORY While the field is currently experiencing rapid changes, supply chain management has evolved significantly since its inception. Frederick Taylor, author of The Principles of Scientific Management in 1911, is considered the father of industrial engineering. His research included improving manual loading processes and operations. Further industry developments occurred during World War II, as the military found themselves needing more complex solutions to logistical challenges. Adam Robinson, author for Cerasis, explains the biggest leaps in supply chain management occurred when an “integrated framework addressed supply chain and logistics issues.” Robinson goes on to explore the advances in the 1940’s and 50’s, when mechanization started to improve labor-intensive issues (such as developing pallets and pallet lifts to ease the burden on employees). Intermodal containers began to be used more frequently, a necessity for global logistics. In the 1960’s, more timedependent standards began to be implemented, including freight

movement from truck rather than rail. Robinson explains this shift led to consideration of warehousing, becoming labeled “Physical Distribution.” Of course, the biggest change in the 1960’s and 70’s was the introduction of computers. Prior transactions were handled by paper and pen— with each company maintaining individual records that could not effectively talk to one another. Computers and the subsequent data that could be extracted and shared became a game-changer in the industry. Inputting and accessing data allowed for companies to develop innovations in “logistics planning, from randomized storage in warehouses to optimization of inventory and truck routing.” Enter the advent of personal computers. No longer a wall of blinking lights, slowly printing out reports, limited to a select few with the resources to access big data, Americans were becoming familiar with a new, virtual world. While most families began their introduction to the computer modestly enough, with simplistic computer games, computer programmers began developing improved graphics, spreadsheets and interfaces to aid logistics technology. The 1990’s was marked by Enterprise Resource Planning Systems to integrate multiple databases. This decade was also the FLORIDA TRUCK NEWS

SPRING 2020 | 5

COVER STORY: THE SUPPLY CHAIN <

planes, trains and trucks, Americans are becoming acquainted with autonomous delivery vehicles, slowly rolling down the sidewalk of neighborhoods, and delivery drones.

time when “supply chain” became codified and more widely recognized. Over the past few decades, the supply chain industry has made the world much smaller. Cerasis reports that manufacturing around the world has experienced an explosion, particularly in China, as U.S. imports from the country grew from $5 billion per year in 1995 to more than $280 billion in 2006. Now where are we today? At the time of this publication, we’re looking at major upheavals to the supply chain. Political trade wars have been a significant concern recently, to say nothing of the Coronavirus. The former disturbed existing trade when patterns of freight shifted in ports in an effort to bring in inventory before tariffs took effect. More than $2 billion a day comes through the Mexican border every day, and companies held their breath during the NAFTA renegotiation between the U.S., Canada and Mexico until the new United States-Mexico-Canada Agreement was signed. A burgeoning new market in lastmile delivery and e-commerce is requiring more regional routes with

6 | SPRING 2020

smaller urban distribution sites for deliveries to arrive, sometimes only hours after ordering. Such demand requires new technology and processes to keep everything running efficiently and give customers visibility. The increase of third-party logistics is a result of the shifting needs of consumers, to outsource transportation planning for those companies which do not have trucks of their own. Deborah Lockridge, in The Changing Supply Chain: It Takes More than Trucks, argues that there are two schools of thought when it comes to private fleets: 1. Shippers are increasingly deciding that transportation is not their core competence and that they’re going to outsource that job, typically to one or more third-party logistics providers. 2. As the supply chain has gotten more complex and transportation more expensive, shippers are paying more attention than ever to their transportation options as a differentiating factor. Intermodal shipping is now becoming a more viable option. Inside fulfillment centers, robots are responsible for inventory, and beyond cargo ships,

FLORIDA TRUCK NEWS

Harvard Business Review notes that, beyond considering 3PL’s, companies are exploring the “digital control tower”, a “virtual decision center that provides real-time, end-to-end visibility into global supply chains.” For many retail companies, the towers are described as the “nerve center” for operations, with a team of data analysts monitoring screens 24/7. The increased dependency on automation and computer systems threatens the jobs of hundreds of thousands of workers. The Business Review notes that “supply chain executives will need to shift their focus from managing people doing mostly repetitive and transactional tasks, to designing and managing information and material flows with a limited set of highly specialized workers.” This emerging job skill will include those who can analyze data, use digital tools and be able to forecast trends. Deloitte’s 2019 Supply Chain Digital and Analytics Survey found that surveyed companies are investing in predictive analytics primarily to drive cost reduction and improve customer satisfaction. Forbes Insights, along with Penske, published a study, Logistics, Supply Chain and Transportation 2023: Change at Breakneck Speed. The focus was on omnichannel delivery and found that on average apparel retailers saw an eroding profit margin of just 12 percent on an item, versus one bought in a store (32 percent). Among a survey of 433 senior industry and executives in logistics and supply chain, 65 percent reported they are seeing tectonic shifts in processes, and 62 percent are seeing “profound transformation.”

THE GAME-CHANGERS There are several key elements that are effecting change in the supply chain industry and are positioned to redefine the industry as a whole.

COVER STORY: THE SUPPLY CHAIN <

Internet of Things (IoT): In our daily lives, IoT connects everyday items like air conditioners, security systems and refrigerators to the internet. In transportation IoT is more commonly known as telematics. Most fleets are already using GPS tracking systems and keeping track of drivers’ behavior. Hard braking, taking a sharp curve or speeding is immediately uploaded to the cloud, with the ability to access data and correct any unsafe behavior. With IoT, companies can also track weather conditions, traffic patterns to adjust delivery routes to avoid spoilage or dispatch a crew for repairs. The Forbes Insight study predicts the developing telematic market to expand in scope, with hardware investments dropping dramatically and software costs rising, representing nearly $8.7 billion of the market. Market research firm IDC Manufacturing Insights predicts “double-digit annual growth for worldwide IoT spending through 2022…with ample opportunity for connected and sensored ‘things’— think finished goods, shipping containers, or warehouse stations — to communicate information and deliver insights that will upend traditional supply chain practices.” Blockchain: Blockchain has become a buzzword in Florida and works in tandem with IoT. In its simplest definition, blockchain is an electronic ledger that can track every item from production to delivery, offering visibility and transparency for shippers and consumers. Records of transactions and movement can be tracked and watched throughout the movement of goods. IDC projects that a “quarter of OEMs will leverage blockchain to source spare parts by 2023—a move it predicts will improve accuracy of usable parts by 60% and lower costs by 45%.” Safety and Autonomous Technologies: Fleets are investing heavily in safety technologies. Lane departure warning,

collision mitigation systems and adaptive cruise control are making drivers, and therefore the public at large, safer. In- and out-facing cameras are providing driver oversight and protection from litigation. But on the horizon are delivery drones, automated delivery vehicles and autonomous trucks. There is no question that the evolving technology of trucks will reshape the supply chain process in the future. The question of how and when is still to be determined. To read more about the climate of autonomous vehicles, read ‘Paving the Way’ in this issue. Shifting Warehouse Forces: E-commerce and the daily shifting force of the last mile are causing companies to react today. Consumers are more savvy and demanding than ever: just a few years ago, purchases made online would take days to arrive at their final destination. Then came next-day delivery, and now…some companies and their transportation systems promise arrival within hours. The competitive nature of online purchases is not slowing down anytime soon. One CEO in the Forbes research stated: “Loads used to see two, three, maybe four touches before the goods were in the hands of the endconsumer…But today, getting goods to consumers faster means ‘seven, eight or nine touches [moving] the freight to a network of warehouses and forward positions.’ In short, says the executive, ‘that final mile is being redefined almost every day.’”

BENEFITS TO THE TRUCKING INDUSTRY While sometimes painful, several benefits exist for trucking companies when they adopt and embrace change. IoT, blockchain and automated systems can increase productivity and give great visibility. Routes can be optimized, and equipment can be monitored more effectively to avoid breakdowns. Quality control is improved, particularly for those loads that are dependent upon temperature or are fragile. Keeping the

customer happy, which is increasingly important in the world of Yelp and other online reviews, can be dramatically improved with better tracking. And at a time when the trucking industry is facing serious driver shortages, improved quality of life for employees can assist in recruiting and retaining workers, as a result of providing effective tools for job performance; safety features to protect the driver; and increased automation to make over-the-road trips easier. Additionally, there will be less manual work. Supplementing human effort with IoT, artificial intelligence and data analytics will make supply chain management less taxing on a daily basis.

PREPARING FOR THE FUTURE Universities are already responding to the evolving needs of Supply Chain Management. One of the top training programs in the country is the Massachusetts Supply Chain Management Master’s degree, which emphasizes analytical problem solving, leadership and communication skills. Each student completes a research project to “devise solutions to real-world business challenges.” Here in Florida, Florida State University offers programs through the Department of Business Analytics, Information Systems and Supply Chain. The Department provides a “cross-disciplinary focus that give students the skills to bridge functional business areas by applying expertise in analytics, information systems, and/or supply chain management.” And down in Miami, St. Thomas University is set to launch its Trade and Logistics Program. We are in a time of transformation in the trucking industry — executives, managers and their employees need to prepare for change and keep their companies nimble for what’s to come.

FLORIDA TRUCK NEWS

SPRING 2020 | 7

Trucking Day at the Capitol

The Florida Road Team at the Capitol

FTA leadership and members on the courtyard of the Capitol

8 | SPRING 2020

FLORIDA TRUCK NEWS

Pennington Law Firm hosting the legislative reception

Former FTA Board Chair Jeff Day

Senator Lauren Book

The day started well before dawn— the cold wind whipped around the Capitol Complex buildings as the guard gates opened on Monroe Street. First to enter at 6:30am was Marion Dick Taylor from Werner Enterprises, who started his trek to the Florida Capitol from Ohio. He wound his truck up against the Senate building and started preparing the truck driving simulator. Just a few minutes later, Fred Combs, driving a Walmart sleeper and trailer, expertly wound around the Courtyard, assisted by Road Team members. Finally, George Moore drove a UPS truck into position against the House Office Building. By dawn, all three trucks were poised and eight Road Team members ready to welcome the public. Meanwhile, more than 40 trucking executives made their way to breakfast, sponsored by Harrell’s, at the DoubleTree Hotel just two blocks away to receive briefings and prepare

The Werner driving simulator arrives at the Capitol Complex before dawn

for legislator meetings. Trucking Day at the Capitol unofficially began the day before, with the inaugural FTA Foundation meeting, a Board of Directors meeting and briefings by FTA staff. Guest speakers included James Murdaugh, President of Tallahassee Community College, who spoke about their new CDL program; Jamal Sowell, Secretary of Commerce and CEO of Enterprise Florida; President of the Florida Justice Reform Institute William Large; and former Secretary of FDOT, Ananth Prasad, who is currently President of the Florida Transportation Builders’ Association. Guests then gathered for the FTA legislative reception, sponsored by Pennington Law, along with leaders from other transportation sectors, members of the Florida House of Representatives and friends of FTA. The 2.0 class then headed off to Harry’s for dinner, to discuss their legacy project.

But back to the “official” Trucking Day the Capitol. Incoming Senate President Wilton Simpson joined members for breakfast to share in their concerns about tort reform issues for the business community. Colonel Gene Spaulding, Lt. Colonel Troy Thompson and the as-yet unnamed new Chief of CVE Major Jeff Dixon at Florida Highway Patrol stopped by to provide regulatory updates, as did Secretary Kevin Thibault, who discussed technological advances and truck parking plans for the state. The group was then ready to move to the Capitol, where members broke into smaller groups to have meetings with a dozen state senators and representatives. By the end of the day, feet were sore but energy was high. By all accounts Trucking Day at the Capitol was a success.

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Paving the Way for Autonomous Vehicles: ATRI Reports Just as the judicial system is faced with trying to keep up with emerging technologies in the court of law, the regulatory process is tasked with developing new rules, processes and ultimately, a comprehensive program for fostering emerging technologies in trucking. In January 2020, the American Transportation Research Institute (ATRI) released a study: Redefining the Role of Government Activities in Automated Trucking. Their research analyzes “the ongoing changes and challenges associated with these technologies in the industry, particularly in the context of relevant policy areas and regulatory jurisdictions.” ATRI notes that currently patchwork regulations, which differ from state to state, have hindered adoption of autonomous vehicle (AV) technologies. Despite this, in 2018, more than $10 billion has been spent on AV research. That investment was down to about $3

10 | SPRING 2020

billion in 2019, signaling a slowdown due in part to the fragmented regulatory landscape. The United States Department of Transportation, the National Highway Traffic Safety Administration, Federal Motor Carrier Safety Administration and the Federal Highway Administration all play integral roles in designing, testing, deploying, regulating and maintaining AV programs. However, with such large federal offices, each charged with its own respective responsibilities, there are roadblocks and significant considerations to streamline and centralize activities. For example, USDOT’s role is focused on “ensuring the safety and mobility of the traveling public while fostering economic growth.” USDOT is inherently technology-neutral but has issued policy guidance in Automated Safety Systems 2.0: A Vision for Safety and subsequent publications 3.0 and

FLORIDA TRUCK NEWS

4.0. NHTSA is tasked with critical functions related to design, testing and deployment technologies and has assumed a leading role in a regulatory framework, including setting the Federal Motor Vehicle Safety Standards (FMVSS) for new motor vehicles and equipment. However, NHTSA’s current standards are currently incompatible with new AV development, as they were developed based on the assumption of a human driver being present. FMCSA is the USDOT operating agency responsible for regulating interstate commercial motor vehicle carriers, and its authority includes enforcement action for unsafe automated systems; monitoring compliance with FMCSR’s; preempting local or state laws, should they be in conflict; and determining how CDL qualifications apply to computerized driving systems. ATRI stressed that FMCSA will need to address policy issues that arise from new AV applications while remaining flexible with new technology (for example, the

recent exemption allowing camera monitors to replace side mirrors). FHWA is responsible for “overseeing the construction, maintenance and preservation of highways, bridges and tunnels across the U.S.,” which includes administering the Manual on Uniform Traffic Control Devices and funding grants to help deploy congestion management technology. In addition to the vital roles these agencies play in developing AV policy issues, the Federal Communications Commission oversees “The Safety Spectrum:” the 5.9 GHz band dedicated to shortrange communications for connected vehicle technology, vehicleto-vehicle (V2V) and vehicle-to-infrastructure (V2I), known as vehicle-to-everything (V2X). Unfortunately, the FCC has recently indicated uncertainty in this bandwidth, as they may reallocate a portion of the spectrum for Wi-Fi, threatening emerging V2X technologies with loss or delays of connectivity. While pilot testing has been mostly centered around passenger vehicles, more than 50 cities across 20 different states have entered the sphere—and Florida has been a leader. Trucking finds itself at the epicenter of these efforts—AV over-the-road and drayage could have the biggest impact on the industry. There are some hurdles to overcome during this process, however. There has been limited testing in longcorridors; most AV systems still do not function well in snow, heavy rain or fog; and failures of passenger vehicle technologies are slowing the pace of progress due to public perception. Another major consideration for all federal agencies is cybersecurity. ATRI reports that cyberattacks and

development of AV needs to consider the enforcement and interaction between human drivers and automated vehicles. Such considerations include AV versus human behavior. As ATRI notes, AVs are programmed to follow the law, while people are not. Human drivers are likely to rear-end autonomous vehicles at a stop sign when the latter comes to a full and complete stop. Roadside inspections need to be developed for new protocols for compliance, and as of yet, the Commercial Vehicle Safety Alliance has not yet adapted to handle automation. network vulnerabilities have resulted in $300 million in lost earnings at just one national freight company. The National Institute of Standards and Technology’s National Cybersecurity Center of Excellence has been working to develop best practices to serve as frameworks. In 2016 the American Trucking Associations started a cybersecurity task force through its Technology and Maintenance Council, and in 2017 ATA launched a cybercrime reporting sharing tool. But data privacy is still a concern. Many stakeholders are concerned with “big brother” collecting and utilizing data from Electronic Logging Devices and other pilot testing programs. As technology develops, the role of the human driver diminishes. The oft-used statistic is that 94 percent of all accidents on the road are caused by human error. The simple solution? Allow AV to do its job and rely on technology to keep everyone safe on the roads. But, because there will be no immediate, automatic switch from human drivers to artificial intelligence,

Certainly many steps remain to be taken to ensure the forward momentum of automation. Technical standards need to be developed for law enforcement and technicians. Definitions of “driver” and “operator” need to be clarified, and as such, research is needed to adjust CDL requirements to reflect qualifications for different roles. State action needs to be taken to adapt local and state laws to the adoption of AV technologies. ATRI also recommends a lead federal agency be identified to be responsible for AV testing; applications for testing remain at the state level; train safety officials to improve the understanding of AV operations; and consider the legal ramifications of liability among AV owners, operators, passengers, manufacturers and others when a crash occurs. Technology is moving fast, and it is incumbent upon our regulatory agencies to work together, along with states, to advance automation safely.

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Florida Trucking Association Weighs In to the Florida Supreme Court By William W. Large

the standard when video evidence “completely negates or refutes any conflicting evidence” and there is no evidence that the video was altered.

Spiraling lawsuits for the trucking industry are nothing new. A recent Fox Business headline traced “‘brutally tough’ insurance rates hammering trucking companies” to nuclear verdicts and a worsening litigation environment. In response, trucking companies have increasingly turned to video evidence to manage risk, control litigation expenses, and most importantly, defend against lawsuits alleging fault. Against that backdrop, a recent court decision compelled the Florida Trucking Association to take its advocacy on behalf of its members all the way to the Florida Supreme Court. In WilsonArt v. Lopez, FTA joined with the Florida Justice Reform Institute, the leading organization working to restore fairness and personal responsibility to Florida’s civil justice system, and together filed a “friend of the Court” brief urging adoption of the federal summary judgment standard. The facts of the underlying case will probably not surprise you. Jon Lopez crashed his vehicle into the back of a Freightliner that was coming t o a stop. He died as a result of his injuries. Video from the tractor dashcam showed unequivocally that the Freightliner was traveling in a safe manner in its lane before being struck all of a sudden from behind. After being sued by Lopez’s estate, WilsonArt successfully asked the judge to rule directly in their favor under a “summary judgment” without the 12 | SPRING 2020

expense and delay of a trial, since the evidence clearly showed there was no real basis for the lawsuit. On appeal, Lopez’s estate submitted one man’s testimony that he saw the Freightliner change lanes in the moments before impact. The estate also had an “expert” who concluded, mostly from the eyewitness testimony, that the Freightliner was partially in the right line before impact. Essentially, in the face of the video evidence, their argument was who are you going to believe, me or your lying eyes? In their ruling, the 5th District Court of Appeal (DCA) said that under the current Florida summary judgment standard, even the slightest doubt of an issue of material fact prevented granting summary judgment. In this case, the Court said, the eyewitness and expert testimony conflicted with the video evidence, and therefore a jury – not a judge – should weigh the issues and determine the conclusive facts. That’s a very high bar to clear in order to avoid a lawsuit. Luckily, recognizing this result raised serious questions, the 5th DCA asked the Florida Supreme Court to clarify

FLORIDA TRUCK NEWS

In the brief, FTA and FJRI noted that Florida’s rules of civil procedure exist expressly to achieve the “just, speedy, and inexpensive” resolution of litigation. In this case, though, the standard as interpreted allowed Lopez to contradict objective evidence with subjective evidence and avoid summary judgment, thus prolonging the litigation. Instead, FTA and FJRI argued that the Court should adopt the federal standard for summary judgment. Under that standard, when there is no genuine issue of material fact that prevents awarding summary judgment to the party asking for it, the burden shifts to the other party who must come forward with enough credible evidence to establish a genuine, as opposed to alleged, factual dispute. Now it’s up to the Florida Supreme Court, which, with three appointments from Governor DeSantis last year and two more coming this year, is in the middle of its own evolution. Recent actions by the Court, including adoption of the federal Daubert expert evidence standard (a story for another day), suggest that the Court is open to improving the efficiency, and fairness and predictability, of Florida jurisprudence. William W. Large is President of the Florida Justice Reform Institute

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Safety Management Council Awards In their professional lives, members of FTA’s Safety Management Council (SMC) are committed to ensuring drivers are safe on the roads. They are, arguably, the best in the business—their expertise is admired throughout the state and nation, as evidenced by their leadership roles in their companies and safety organizations. Of course, their tireless dedication to safety isn’t limited to onduty hours. Every year, SMC members volunteer their time to help run the Florida Truck Driving Championships; assist in educational programming for conferences; teach NATMI classes (shoutout to the inimitable Jeff Stamm of Rowland Transportation), run Voluntary Vehicle Inspections at FDOT weigh stations around the state; and even assist their colleagues during the SuperTech competition. Even more behind the scenes, perhaps, is the SMC Awards program. Each year, SMC celebrates drivers, safety professionals and students by poring through applications and resumes to select the best of the best. Fleet Safety Awards, Safety Professional of the Year, Drivers of the Month/Year and Herman Fauss Scholarship winners are selected by the SMC Awards committee and judges including public school teachers, FHP leadership and community leaders. 2019 saw the largest number of applicants in all award categories—read more about the award program and recipients. HERMAN FAUSS SCHOLARSHIP The Herman Fauss Scholarship was established by the FTA Safety Management Council to recognize and reward outstanding high school academic performance and overall involvement in community affairs by children and grandchildren of commercial vehicle drivers in Florida. Eligible graduating high school seniors are the child or grandchild of a full-time commercial vehicle driver: employed for at least one year from this application date by a current, dues-paying member 14 | SPRING 2020

Cary Watkins presents SMC gavel to Larry Hicks

Breakthru Beverage Accepting a Fleet Safety Award

Jim Anderson Accepting a Fleet Safety Award

Driver of the Year Eric Blandford

of Florida Trucking Association, and dispatched from a Florida terminal. 2020 marks the sixteenth year of the program which is supported by the Herman Fauss Scholarship Golf Tournament. The 2019 recipients were Katie Slaten, Ezekiel Blount and Kamaya Williams.

tens of thousands of drivers employed by FTA member companies. And Driver of the Year is considered the pinnacle of a professional truck driver’s career.

FLEET SAFETY AWARDS

The Safety Professional of the Year award isn’t given out every year—in fact, the honor is an exception rather than the rule. The object of this program is to advance standards of excellence for truck fleet safety professionals. Member companies boast thousands of safety experts at the top of their game, both in Florida and nationally. So it takes an exceptional person to receive the award. Such is the case of Bill Roy of Walmart Transportation.

The Fleet Safety Awards has three separate classifications, Truckload, Less-Than-Truckload, and Bulk/ Other, delineated by size of fleet. The winners are selected by reported DOT recordable accidents for the past two years, crash frequency and overall number of Florida miles driven. DRIVERS OF THE MONTH Nominees for the Driver of the Month/Year Award must be employed by or contracted to a member company of Florida Trucking Association, and must have been continuously employed or contracted for a least one year prior to the nomination date. The Driver of the Month is highly competitive—with

FLORIDA TRUCK NEWS

2019 SAFETY PROFESSIONAL OF THE YEAR

Bill Roy has been involved in the trucking industry for almost 42 years. He started as a truck driver right out of high school in New Hampshire (and was a Driver of the Year) and has risen to the rank of Fleet Safety Manager for Walmart

FLEET SA FETY AWA RDS

CARRIER

Bill Roy accepting the Safety Professional Award

CATEGORY OVER//UNDER

Grammer Industries Emerald Transformer

Bulk/Other Bulk/Other

< 5 Million Miles < 5 Million Miles

First Place Second Place

Centurion Auto Transport Oakley Transport

Bulk/Other Bulk/Other

5-10 Million Miles 5-10 Million Miles

First Place Second Place

Eagle Transport Bulk/Other Florida Rock & Tank Lines Bulk/Other

> 10 Million Miles > 10 Million Miles

First Place Second Place

Breakthru Beverage of FL ABF Freight

LTL LTL

< 20 Million < 20 Million

First Place Second Place

Old Dominion Freight Line FedEx Freight

LTL LTL

> 20 Million > 20 Million

First Place Second Place

Kottke Trucking Omega Mile

TL TL

< 5 Million < 5 Million

First Place Second Place

Davis Express Shelton Trucking

TL TL

5-15 Million 5-15 Million

First Place Second Place

Landstar Inway Carroll Fulmer Logistics

TL TL

> 15 Million > 15 Million

First Place Second Place

Herman Fauss Scholarship recipient Ezekiel Blount

DRIVERS O F THE MO NTH

Herman Fauss Scholarship recipient Kamaya Williams

MONTH NAME

COMPANY

January

Christopher Strauss

Florida Rock & Tank Lines

February

Michael Deighan

United Parcel Service

March

Patrick Kutenits

Publix Super Markets

April

Eric Blandford

UPS Freight

May

Dexter Lewis

Florida Rock & Tank Lines

June

Tommy Forrest

FedEx Freight

July

Tony Schmidt

Publix Super Markets

August

Dothan Jackson, Jr.

UPS Freight

September

Brian Winchel

Florida Rock & Tank Lines

October

Joseph Skates

Oakley Transport

November

Stephen Chesser

United Parcel Service

December

Juan Ruiz

Publix Super Markets

Herman Fauss Scholarship recipient Katie Slaten

Transportation. He has dedicated his life to safety; serving as SMC Chair here at FTA, hiring committees, No Zone Demonstrations, and this year, Chair of the Florida Truck Driving Championships. He is responsible for 145 drivers at Walmart in Alachua and Macclenny, as well as compliance, accident investigations, training, safety campaigns and team building. But perhaps more importantly, his commitment to improving safety on the roads is unwavering—he passionately works every day towards the goal of no accidents, while serving as a trusted advisor to his friends, family, colleagues and employees.

2019 DRIVER OF THE YEAR Eric Blandford has spent more than 25 years at UPS Freight with more than one million safe miles driven. His commitment to the profession is evident in his consistent effort to improve himself as a driver, leader and community member. He has always gone the extra mile to take continuing education courses and learn more about the trucking industry. His professional development includes safety courses, certifications in health and wellness, and trainer workshops. Blandford maintains a passion for volunteering for his community

and industry, whether that’s for children or veterans. He has received numerous honors and awards at UPS Freight, including the 10-year Safety Award and UPS All-Star Road Team Captain. At FTA he has placed in third place in 2016 and second place in 2017 in the Flatbed class of TDC. When he’s not out driving for work, he is sharing the message of safety on the roads with students across the state as a Florida Road Team member. His colleagues love and respect him, but no one champions him like his six children, ten grandchildren and his lovely bride Glenda.

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SPRING 2020 | 15

Florida Seaports: Connecting Commerce

JAXPORT welcomes one of the largest container vessels to service Florida, following their new relationship with ZIM Shipping Lines

By Doug Wheeler Florida’s 14 seaports serve different markets and accommodate a variety of industries – there isn’t a type of cargo they can’t handle. By increasing the channel depth at strategic Florida ports, along with other infrastructure improvements, the ports have been able to regularly welcome postPanamax vessels from the expanded Panama and Suez Canals, bringing even more products onto their docks. And, 10 of the 14 seaports have the advantage of being closer to the Panama Canal than seaports in any other state. Many Florida ports have warehouse facilities, extensive berths, and modern cargo terminals that allow on-site manufacturing, storage 16 | SPRING 2020

space for large bulk commodities, and management of perishable transport. In today’s global marketplace and worldwide supply chain, American manufacturers, farmers and businesses often rely on seaports to import the raw materials and semi-finished components needed for production here in the U.S., and to export their finished products and enhance their international competitiveness. And the state’s transportation network is a vital element in attracting a wide range of businesses to locate in Florida. Business recruitment and retention efforts are cooperative efforts of state leadership, seaports, local economic development organizations, private enterprise, the Department of Economic Opportunity, Enterprise Florida and Chambers of Commerce. Investments in improved highway access, rail, and deepening at our ports in addition to on-port infrastructure at several ports have

FLORIDA TRUCK NEWS

paved the way for Florida ports to handle increased volumes of cargo more efficiently. While Florida’s seaports have increased capacity and connectivity to strengthen the state’s ability to attract and grow large-scale and broad-based manufacturing activity, they also depend on trucking partners throughout the nation to ensure goods travel from the ports to their destinations, and they put significant emphasis on the first and last mile of the supply chain. Florida ports’ utilization of Intermodal Container Transfer Facilities and Intermodal Logistic Centers enhances the economic performance of a supply chain by using modes in the most productive manner. This allows for a variety of short and long-haul trucking services and operations at seaports – including global freight shipping companies with

waterborne vessel and trucking services, and third-party trucking logistics providers working on behalf of logistics companies or individual businesses. In addition, aggregate or breakbulk cargo operations at a seaport can be dependent upon multiple truck pick up and deliveries each day, and seaports must provide fast and efficient connectivity at these operations. In recent years, Florida’s seaports have seen unprecedented state and federal investments to improve onport and off-port connectivity. Port infrastructure improvements that have increased connectivity include the tunnel at PortMiami, which allows port users, including cargo and cruise, to avoid the downtown area and provides direct access to I-395 and I-95 without stopping at any traffic lights. Similarly, the dedicated express truck connector to Port Tampa Bay keeps trucks from rumbling through Ybor city

while also allowing access to the I-75 and I-4 interstate systems and beyond. Many other Florida ports are investing in terminal upgrades to improve connectivity including JAXPORT, the Port of Palm Beach and Port Canaveral. Specifically, Port Panama City has invested in a 250acre intermodal distribution center, while Port Everglades is utilizing a 43-acre near-dock Intermodal Container Transfer Facility.

addition, local and state tax revenues are in excess of $4.3 billion. However for ports to continue to succeed – providing infrastructure and services that increase the safety, security, efficiency and velocity of the supply chain while protecting the things Floridians hold dear – exceptional planning and management is essential.

The return on seaport investment is evident in increases in tonnage, as well as the total value of goods being imported and exported. The number of containers collectively traveling through Florida has risen to more than 4 million TEUs, and waterborne trade has increased with nearly all of Florida’s top ten international trading partners. Maritime activities at Florida’s ports are strong and growing, supporting nearly 900,000 jobs and $117.6 billion in total economic activity. In

Florida’s seaports have identified $3.1 billion in capital improvements over the next five years. In general, these projects will automate processes, decrease costs, add capacity, attract cargo and expedite movement, with an emphasis on using as few resources as possible. This dedication allows the ports to better position Florida as a global hub for trade and further the state’s designation as a connector of international commerce. Doug Wheeler is President and CEO of Florida Ports Council

THE UNIFIED VOICE OF TRUCKING: FUELED BY THE FTA-PAC 2020 is a big year, politically. Be a part of our efforts to promote the priorities of the trucking industry. Call the FTA office at 850-222-9900 to support the Association PAC. FLORIDA TRUCK NEWS

SPRING 2020 | 17

Navigating Rising Costs in the Trucking Industry By Shaun Savage Year after year, the cost of doing business in the trucking industry steadily outpaces national inflation. According to the American Transportation Research Instituteâ&#x20AC;&#x2122;s (ATRI) recently released annual report, costs for motor carriers in the for-hire trucking industry increased by 7.7 percent over the previous year. The costs for private fleets rose 7.9 percent, according to the average cost per mile tracked by the National Private Trucking Council (NPTC). This is more than three times the average U.S. inflation of 2.4 percent over the same time period. Unfortunately, because shipping rates arenâ&#x20AC;&#x2122;t growing at the same steady rate as these costs, the motor

18 | SPRING 2020

carriers are left shouldering the burden of many of these increases. Motor carriers are facing increases across the board. The cost of keeping vehicles on the road is rising. Diesel fuel costs jumped 17.7 percent year over year. Repair and maintenance costs have been steadily increasing for many years. They have gone up 24 percent since 2012 and 65 percent since 2008. The ATRI study found that increases were due to the higher expenses associated with diagnosing and repairing the sophisticated electronic components found in the newer vehicles. In addition, the shortage of qualified diesel technicians was also cited as a reason for rising costs.

FLORIDA TRUCK NEWS

Insurance premiums went up 12 percent. The cost spikes are partly attributed to rising vehicle prices. Newer vehicles have a higher value and, therefore, higher premiums to insure that total value. The rise in insurance premiums can also be tracked back to the increased risk of litigation. Juries are increasingly awarding large, multimillion dollar claims to victims and their families in cases of serious accidents with injuries or fatalities. In the past, brokers and trucking companies that relied on independent owner-operators were insulated from legal consequences in the event of a serious incident. But, an increasing number of brokers are being held vicariously liable for the actions of their contractors. Juries are awarding multi-million dollar

damage claims to defendants, leaving motor carriers, brokers and insurance providers on the hook for these payouts. Driver shortages have created a competitive wage environment, with average pay per mile growing 7 percent and the cost of benefits rising 4.7 percent. The ATRI report notes that over 55 percent of professional truck drivers are over 45 years old. Meanwhile, only five percent of all truck drivers are between the ages of 20 to 24. As the older generation of drivers retires, shortages will become more severe. For retailers and distributors operating private fleets, the increased costs may leave many wondering whether maintaining this service internally is financially viable. And yet, many in the retail sector don’t have a choice. Customer expectations for last-mile delivery have never been higher. According to Deloitte’s annual consumer study, in 2015, 63% of consumers felt that getting an item in 3-4 days was fast. Just three years later, in 2018, just 25% of consumers felt the same. Call it the Amazon effect, but whether it’s a toothbrush ordered online or a new dining room set purchase in-store, consumers are no longer content waiting for their items to be delivered. Many are looking for next-day, same-day, and on-demand options. Many retail establishments are turning to virtual fleets in order to balance costs while continuing to offer the high-level of service demanded by customers. Virtual fleets leverage large networks of local independent delivery professionals and fleets. Project details are sent out in realtime to nearby contractors registered to the network. Shippers are instantly able to get their project details into the hands of dozens of nearby professionals. They are matched quickly to a driver with the capacity and availability to handle their load.

By using a virtual fleet network, retailers and distributors are able to avoid overstaffing as well as paying to retain drivers and vehicles during slow periods. Large retailers, suppliers, and distributors across the country are adopting ondemand platforms as a primary or supplementary tool in their supply chain networks. Virtual networks are also attracting a new type of client. In addition to businesses, individual users are employing these solutions for last mile delivery, local hauling, and other personal needs. These virtual networks guide users through the process of creating a project request, helping them standardize the information and provide clearly defined expectations as well as a fair estimate. This allows individuals users who may not have had access to professionals at this level to make requests through the network. So long as they have a verified payment method and their project meets the standards of the platform, it will be pushed out to professionals within the virtual network. These new technologies do not need to be competitive with existing fleets. They can be an ideal partner. The rise of on-demand technologies in the local freight market creates an opportunity for fleet managers. On-demand service platforms have loads, but don’t employ drivers or maintain vehicles. By partnering with on-demand platforms, forward-thinking fleet managers have a new resource to find local projects and loads for their trucks and vans. Fleet managers using on-demand services are able to keep their trucks and vans moving on slow days by accepting same-day projects and keeping idle vehicles active. They are uniquely positioned to benefit from new on-demand technologies. Shaun Savage is CEO and Founder of GoShare: https://www.goshare.co/

FLORIDA TRUCK NEWS

SPRING 2020 | 19

MOVES AND NEWS

Update on people and places in the FTA membership

NextGen Driver Training defensive simulators now incorporate Risk Zones—allowing the simulator to visibly display the size and shape of the driver’s and other vehicles’ risk areas. The Risk Zone is composed of three key elements: perception, reaction, and braking distance. UPS: Mike Deighan retired after 44 years of service and 35 years safe driving; Sam Turbeville and David McEntire were inducted into the UPS Circle of Honor for achieving 25 years safe driving; Lou Carver celebrated 45 years of service; Jim Rosier celebrated 40 years of service. Jim and his wife Michelle have a combined 73 years of service at UPS. Robert Foskey has been promoted to Global Health & Safety Manager at UPS Freight. Russ Wainer was promoted to Fleet Safety Manager at Publix Super Markets. 20 | SPRING 2020

Suddath recently promoted Scott Perry to President, Suddath Moving & Logistics. Perry has more than 25 years of experience in third-party logistics and joined Suddath in 2018 as the head of Global Logistics, where he led significant growth in Suddath’s contract logistics, international freight forwarding and furniture, fixtures and equipment logistics product lines. In this new role, Perry will oversee

FLORIDA TRUCK NEWS

multiple lines of business at Suddath, including interstate household goods, global logistics, commercial moving and local moving. Appointments: FTA President Ken Armstrong was appointed by Governor Ron DeSantis to the Board of the new Florida Foundation for Correctional Excellence. Scott Reagan was appointed by Governor DeSantis to the Commercial Motor Vehicle

Review Board. FTA Vice President Alix Miller was appointed by Senate President Bill Galvano to the Florida Council on Arts and Culture. Oakley Transport recently revealed the winner of their Safety’s Super Sweepstakes appreciation award through a random drawing at their headquarter terminal in Lake Wales. The winner of the 2019 GMC Sierra Elevation, Xavier Hood, has been a professional driver for Oakley Transport for three years and hauls in the OTR division. He holds a Smart Drive System score of 69 and gained a total of 26 tickets for safe performance during 2019 and his length of service with Oakley.

Mike Deighan

Jim and Michelle Rosier

During 2019, over 66 percent of Oakley Transport’s fleet earned the Smart Drive bonus. Over 90 percent of Oakley Transport’s drivers qualified for the Safety’s Super Sweepstakes and over 30 million accident free miles were driven in adherence to SmartDrive’s requirements. The Alabama Trucking Association will present Publix Super Markets with two Truck Safety Contest awards (First place in the Private Carrier Division and Most Improved Safety Performance 2019 from 2018) at their awards banquet March 23rd. Publix received an award in May from the Florida Department of Highway Safety Division of Motorist Services for Excellence in Maintaining Quality Standards in CDL Skills Testing. Publix celebrated the following drivers for two million safe driving miles: Patrick Kutenits, Wayne Broderick, Timothy Mohler, Derek Singleton, Todd Jackson, Willie Kreiling, Cliff Manrodt, Brett Morson, and Bruce Phillips. John L. Shadd Trucking recently announced the new direction of their fleet—focusing on aggregate hauling in the North and Central Florida area. The company is celebrating 40 years in trucking.

Publix receiving award from DHSMV

Bestpass has launched a toll by plate solution as a supplement to its nationwide transponder-based toll coverage. “The rise of all-electronic tolling across the United States has led to an increase in unplanned toll by plate for commercial fleets,” said John Andrews, president and CEO of Bestpass. “By combining our traditional transponder-based coverage with this new toll by plate solution, we are able to provide an even more comprehensive toll management program for our customers.” Bestpass toll by plate coverage includes both power unit and trailer license plates. Oscar Horton of Sun State International in Tampa was named

the 2020 American Truck Dealer’s truck dealer of the year. The award, which is given out annually at the ATD show, recognizes truck dealers who have excelled in dealership management, community impact and service to the industry. Four Star Freightliner, headquartered in Montgomery, Ala., officially marked its 20th anniversary on February 20, 2020. The company, led by Jerry Kocan, originally started out with two stores in Dothan and Montgomery, Alabama. Over the past twenty years, it has grown from 50 to nearly 250 employees who work at seven location in Alabama, Georgia and Florida. Florida Rock and Tank Lines recently announced the addition

FLORIDA TRUCK NEWS

SPRING 2020 | 21

MOVES AND NEWS

Jerry Kocan

NextGen Driver Training Simulator

of Corporate Sales Executive, Stan Tedder. Stan brings over 40 years of transportation Sales and Marketing experience to Patriot. After beginning his career at Roadway Express (now part of YRC) Stan joined Transport South in 1993 as Director of Sales marking his entrance into the petroleum hauling industry. Stan spent the past 26 years marketing petroleum hauling services with

the last 11 years as VP of Sales and Marketing with The Kenan Advantage Group. According to Rob Sandlin, Patriot President and CEO, with the addition of Stan Tedder the company is re-emphasizing its focus on cultivating long-term partnerships with customers who understand the value gained in forming strategic “win-win” business relationships.

Stay Driven. 22 | SPRING 2020

Total Distribution displays US veterans flag

FLORIDA TRUCK NEWS

Total Distribution has been nominated for the 2019 Best Places to Work in Jacksonville. The company continued its local involvement through employee engagement events including a breast cancer awareness day and blood drive. Total Distribution was also honored with a U.S. Veterans’ flag from the National Association of Veterans and Families for the continued support of NAVF and its programs.

Omnitracs delivers software-as-a-servicebased solutions to help over 14,000 customers — spanning from carriers to owner/operators, to wholesale distributors and local service companies — manage nearly 1,100,000 assets in more than 70 countries. Today, as a powerhouse of innovative, intuitive technologies, Omnitracs transforms the transportation industry through technology and insight, featuring best-in-class solutions for compliance, safety and security, productivity, telematics and tracking, transportation management (TMS), planning and delivery, data and analytics, and professional services.

Learn more at omnitracs.com

THE IMPORTANCE OF

MOVES AND NEWS

Grassroots Advocacy When thinking about political advocacy, most people immediately think organization leadership, government affairs, digital media campaigns. But a recent study by the Congressional Management Foundation found that, “Direct constituent interactions have more influence on lawmakers’ decisions than other advocacy strategies.” Grassroots advocacy relies on the general public to engage with local, state and federal officials to influence public perception, policy and regulations. This brand of activism starts from the ground up and often utilizes personal experiences or anecdotes to paint a picture for officials to better understand the issues. Grassroots is vital to further legislative agendas. Tips to bolster any advocacy communications strategy: -Consistent contact: Maintain your relationships with local, state and federal leaders. (This includes their staff—who often serve as the gatekeepers.) -Online engagement: Be active on all platforms of social media (especially Twitter) and tell a story. Instead of posting data, personalize and humanize the issue. -Extend an invitation: Site visits, lunch or dinner, a speaking engagement. (Don't forget about their staff!) Go to their events—show your support. Tending to the roots allows the grass to grow. Interested in hosting a state legislator or a member of the Florida congressional delegation? Contact Alix at FTA..

FLORIDA TRUCK NEWS

SPRING 2020 | 23

Q+A with

Lori Ann Chaussinand Lori Ann is an Account Manager for Pilot Travel Centers, overseeing Florida and Georgia. She has more than 26 years in the oil and gas industry, with an emphasis on industrial lubricants, additives and diesel fuel. She was the recipient of Pilot Flying J’s prestigious Founders Club Award and is a current member of the FTA 2.0 leadership class. The work she does for her company and industry is integral to the supply chain. What do you do in your spare time? I love spending time with my family, gardening and cooking. How did you get into the trucking industry? Initially through industrial lubricants, fuels, additives, sales and technical support. While supplying various industries, the trucking industry became my focus. What advice would you give to other women who are considering going into this field? It’s tremendously rewarding and there are so many wonderful people in this industry; but don’t look for leniency in any way. You need to work hard and always do the right thing and in the end, you’ll earn respect. You travel all over the country for work—where is your favorite place to visit? I do love Atlanta- Pasta Di Pulcinella is a quaint, small house made into the best kept secret in Atlanta. What was your first job? I was a waitress through college at Bob’s Big Boy.

24 | SPRING 2020

FLORIDA TRUCK NEWS

What’s one thing that most people don’t know about you? In 1997 I spec’d the lubricant used in the Mars Rover and in 2002 the compressor oil for the bit that successfully rescued the Quecreek Miners. What’s the most important characteristic to have to be successful in business? If have to pick two…honesty and hard work What are you most looking forward to in the next five years? Finding a parallel focus to our industry where I can bring value...possibly working to fight Human Trafficking If you could spend a month anywhere in the world, where would it be? Home Favorite candy? Kit Kat...where it’s at! First car? 1979 Metallic green Ford LTD… it was horrible Favorite product at Pilot Travel Centers? Our coffee...it’s truly the best! One thing you think truck drivers can’t live without? Friendly service—most want interaction after being in a truck for hours at a time. A smiling face goes a long way!

Values Drive Performance Shared Values Can Lead to Organizational Excellence

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We understand you are in business to make a profit. Our Value-Driven® Company modules can help you reduce losses and increase profits by focusing on influencing employee behavior, changing culture, improving communication, and managing risk successfully. We believe it is everyone’s job to do what they can to prevent losses. We have developed a variety of training tools to help get all employees involved in safety. From seminars and webinars to Self-Service e-Tools and FAQs, we have solutions to fit your operations. We see “Critical Crashes” as a risk to your company. Our Value-Driven® Driving program focuses on helping drivers do what they can to prevent these types of accidents: rear-end, loss of control, lane change, and run under. All of our driver training programs are FREE to our insureds and can be accessed 24/7 on Great West’s Online Learning Library. GREAT WEST CASUALTY COMPANY – No matter where the road takes you, you will discover that at Great West, The Difference is Service®.

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