Private Motor Carrier December 2014

T H E P R I VAT E T R U C K F L E E T M A G A Z I N E

December 2014 • issue 5

MOTOR CARRIER

NATURAL

ATTRACTION CHEAPER FUEL, LOWER EMISSIONS, AND THE PROVEN TECH OF NATURAL GAS TRUCKS

PM #40069240

Border Bound

Premium Ideas

Operating realities when

Control insurance costs

Is Same Day the Right Way?

crossing the border

with a safety focus

Tomorrow is not fast

pg 16

pg 18

enough anymore

pg 27

THERE IS NO TIME FOR DOWNTIME.

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Volvo Trucks. Driving Progress

issue 5 Dec, 2014

8 features

8

Natural Attraction Cheaper fuel, lower emissions, and the proven tech of natural gas 5 Editor’s view

7 President’s report

7 Chairman’s message

35 From the headlines

16

Border Bound Prepare for operating differences if expanding into the U.S.

18

Premium Ideas Control insurance costs through technology, commitments to safety

25

Look Who’s 40 Hino celebrates four decades and a top Class 4-7 market share

27

Is Same Day the Right Way?

36 New products New tires from Goodyear and Bridgestone, Kenworth’s virtual coach, and more.

38 Stats and facts Buying trends for the year ahead.

“Tomorrow is not fast enough anymore”

29

Meet the Candidate Tips and techniques to find the right people

31

Saving Space

27

“Ship from store”, automation are keys to e-commerce

32

Time for TMS What to look for in your Transportation Management System

contents

37

is corrosion eating away at your bottom line?

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FULL-SERVICE DEALERS IN CANADA: ONTARIO Glasvan

NOVA SCOTIA Nova Enterprises

QUEBEC Great Dane of Montreal

BRITISH COLUMBIA Pacific Coast Heavy Truck Group

ALBERTA • MANITOBA SASKATCHEWAN Maxim Truck and Trailer

NEW BRUNSWICK Universal Truck and Trailer

A y

ailer

Entry-level driver training begins by defining the work a driver does

“

Ontario

should be

applauded for committing to mandatory entry-level

training for Class A drivers.

”

John G. Smith editor

EDITOR John G. Smith 905-686-4851

info@wordsmithmedia.com Twitter: @wordsmithmedia

EDITORIAL DIRECTOR PRESIDENT, PMTC Bruce Richards 905-827-0587 trucks@pmtc.ca

Publisher Jack Meli 647-823-2300

jmeli@bizinfogroup.ca

COPY EDITOR Vanessa Cox

We have all heard of driving schools that promise to “train” someone to be a truck driver in a matter of days; that pocket tuition fees after teaching someone just enough to pass a ministry licensing exam. It would be an insult to call their graduates truck drivers.

Newly pocketed licences do not reflect the knowledge, skills and abilities that a carrier actually requires. Many of the unwitting students emerge from these licensing mills without being able to back into a loading dock, fill out a logbook, secure a load, or perform the most minor repair. They know little about the policies, rules and practices which govern the industry. Some have never even driven on a highway.

At best, they are surprised that nobody will hire them. At worst, they find employers willing to hire anyone who can fog a mirror.

It’s why Ontario should be applauded for committing to mandatory entry-level training for Class A drivers. It’s a change that will lead to safer roadways, help fleets identify those who are truly prepared for work, and take us a step closer to recognizing truck driving as a skill.

The first step toward any such commitment, though, will involve defining exactly what a driver should be expected to know or do. This is trickier than it sounds. While fleet managers have long complained that today’s Class 1/A exams are not enough, most of those who assess drivers are making their decisions based on instincts alone. Vague descriptions of the related tasks leave plenty of room for misinterpretation.

Trucking HR Canada is about to change all that. For several months, through the Driving the Future project, it has been working with fleet managers across Canada to clearly define a driver’s work. The emerging National Occupational Standards include more detail than ever before – identifying all the core competencies that apply to the broadest-possible range of drivers. Each can be measured through a test or observed by an assessor.

Every province will continue to decide the best approach for training and licensing its drivers. But this voluntary standard offers a way to clearly identify how the underlying learning outcomes and tests measure up to the job.

By way of full disclosure, I have had the good fortune to work as one of the consultants on this project. I have watched the drafts evolve from one province to the next.

But this January, everyone in the industry will have a chance to comment on a draft posted at www.TruckingHR.com.

I encourage every fleet private fleet manager to participate in the process. Let’s ensure that this document clearly reflects what a driver needs to know.

John G. Smith, Editor Twitter: @wordsmithmedia

PRODUCTION MANAGER Steve Hofmann

shofmann@bizinfogroup.ca

ART DIRECTOR Lisa Zambri Circulation Manager Mary Garufi 416-442-5600 ex 3545 mgarufi@bizinfogroup.ca

VICE PRESIDENT PUBLISHING Alex Papanou PRESIDENT Bruce Creighton

Private Motor Carrier magazine is produced under contract by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd., a leading Canadian information company with interests in daily and community newspapers and business-tobusiness information services.

Editorial services and content supplied by WordSmith Media Inc.

The contents of this publication may not be reproduced or transmitted in any form, either in part or full, including photocopying and recording, without the written consent of the copyright owner, the Private Motor Truck Council of Canada. Nor may any part of this publication be stored in a retrieval system of any nature without prior written consent.

ISSN 2291-3998 (Print) ISSN 2291-4005 (Online)

Return Undeliverable Canadian Addresses to: Circulation Department – Private Motor Carrier magazine 80 Valleybrook Drive, Toronto, Ont M3B-2S9 Subscription Inquiries – 416-442-5600 The content of this magazine should be viewed for information purposes only, and should not be seen as an alternative to legal advice.

T h e P r i vat e T r u c k F l e e t M a g a z i n e

motor carrier

May 2013 • issue 1

INTRODUCING A NEW SERVICE AVAILABLE FOR PRIVATE FLEETS RYDER ON-DEMAND MAINTENANCE

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Ryder and Ryder Logo are registered trademarks of Ryder System, Inc. Copyright © 2014 Ryder System, Inc.

d d ’s

nt

nc. nc.

Private Motor Truck Council of Canada

PMTC joins in the call for entry-level driving training

“

Editor John G. Smith’s column on page 5 explores a sensitive topic in the trucking community: the training of entry-level truck drivers. It’s time for the issue to get the attention it deserves.

John G. gets directly to the root of the problem. There is a lack of uniform training standards for aspiring drivers. Without rigorously enforced standards, students may unwittingly pay for substandard training that leaves them unfit to begin a career behind the wheel.

It’s why the Private Motor Truck Council of Canada (PMTC) congratulates Ontario’s minister of transportation for committing to mandatory entry-level training. The time has come.

Luckily, we are hardly starting from scratch.

Existing lessons are ready to be applied. Some date back to the Target ‘97 review of truck safety, which involved industry and government alike. There are also effective training and curriculum models already in place at respected schools.

Before Trucking HR Canada was formed, the Canadian Trucking Human Resources Council was also involved in several related initiatives. It took the first steps to defining the role of a truck driver through an Essential Skills Profile and National Occupational Standards. Ongoing work by Trucking HR Canada builds on all of this, bringing us ever closer to the clearly defined learning outcomes that schools can use to ensure that graduates are prepared for work.

Still, we have stressed to the minister that there are other factors to consider. Any mandatory training regime will need to be effectively enforced, and must apply equally to all training schools. The students themselves also deserve to be protected from unscrupulous schools – often referred to as “licensing mills” – which deliver substandard training. It is a matter of protecting the consumer and industry alike.

PMTC supports mandatory entry-level training to a standard developed by industry and government, and we are ready to do our part in making it a reality.

Bruce Richards, President

”

PMTC

Exploring the border, insurance and natural gas

“ Bruce Richards president

Dennis Shantz chairman

The editorial team at Private Motor Carrier magazine has assembled several interesting articles for our December edition, and I know you will find them to be informative.

One of the most frequently asked questions in the Private Motor Truck Council of Canada’s (PMTC’s) office concerns what Canadian fleets need to know when expanding operations into the U.S. American fleets looking to operate in Canada have similar questions of their own.

This is why the Border Bound feature article is so timely, exploring some of the significant regulations that fleets need to understand when moving across the international border. Even if your fleet only operates within your home country, you’ll find this to be an interesting read. If nothing else, you will know more about what some of your compatriots face on a daily basis.

Meanwhile, there is the matter of protecting against losses. Private fleets handle insurance a number of ways, depending on the size of the parent company and the approach the organization wishes to take.

Premium Ideas delves into the factors that influence insurance premiums themselves, and how fleets can mitigate those costs. Experts from Northbridge Insurance and Marsh Insurance, both PMTC member companies, offer their insights.

And, in tracking what is increasingly a hot topic for fleets, Natural Attraction looks at the use of natural gas as an alternative fuel. In this article we speak with fleet operators, as well as the suppliers of vehicles and fuel, to discuss the type of operations in which the use of natural gas as a fuel can be most effective.

The fuel is not for everyone, but in the right circumstances it can represent money in the bank.

Enjoy the edition.

Dennis Shantz, Chair

”

December 2014

PMC • 7

8 • PMC

December 2014

natural

by John G. Smith

attraction

C

old Star Solutions CEO Kelly Hawes points directly at lower fuel bills when making the case for natural gas trucks.

The fleet and grocery wholesaler which serves Vancouver Island and British Columbia’s Lower Mainland recently purchased 10 Mack Pinnacle tractors powered by Compressed Natural Gas (CNG).

They can be fueled for 30% less than their diesel counterparts. Pretty impressive, particularly since he expected savings closer to 20%. And the benefits do not end there. Customers in residential areas are sending notes of thanks about quieter engines, drivers no longer reek of diesel, and the equipment is attracting attention from tourists who share space on BC Ferries.

There are environmental gains too, including lower Greenhouse Gas emissions.

Fortis BC, which partnered with the fleet to establish the first fast-fill natural gas fueling station on Vancouver Island, even paid 75% of the $60,000 premium on the trucks themselves.

“For a return-to-base fleet, natural gas absolutely makes sense,” Hawes says.

Things are undeniably trickier for those with Gross Vehicle Weights above 80,000 pounds, beyond the pulling power of the Cummins ISX 12G that Cold Star adopted.

Cheaper fuel, lower emissions, and proven tech continue to drive interest in natural gas

Cummins Westport and Cummins itself both shelved 15-litre natural gas engines in the past year, even as new fueling stations continued to emerge. Volvo, which had announced plans to launch a 13-litre natural gas engine, turned its focus to Dimethyl Ether (DME) instead.

The lack of big-bore power was clearly on the minds of those who attended the recent Natural Gas Vehicles Canada conference in Toronto. Many speakers openly called for the bigger engines to return. But the market for 15-litre engines simply can’t compare to interest in the 12-litre models that will meet most demands in the U.S. That has dampened initial interest by some of Canada’s private fleets including FritoLay, whose U.S. counterpart has embraced natural gas, and Labatt Breweries, which runs all its trucks in Texas on the fuel.

“Without that 15-litre engine, we’re kind of shut out right now,” says Mauro Fantin, national transportation manager at Labatt Breweries of Canada, where existing payloads approach 90,000 pounds. Even where Liquefied Natural Gas (LNG) trucks have been used between Quebec and a distribution centre in Mississauga, Ontario, the added equipment weights mean the

trucks carry one less pallet of beer per trip. The delivery trucks which could be powered by smaller CNG engines travel less than 50,000 kilometres per year. The fuel savings that emerge wouldn’t offset the added equipment prices.

While FritoLay will have 200 CNG tractors in the U.S. by the end of this year, those wouldn’t meet the needs of the Canadian fleet which hauls loads of potatoes and chips alike, says fleet manager Danny Vettoretti. “We just don’t have low-weight lanes that are dedicated in our system,” he says. Besides that, the tractors which pull Long Combination Vehicles are legally required to have higher horsepower. There might be a chance to convert the gasoline engines which power many of the 1,290 trucks used for direct store deliveries, but the diesel versions can’t be converted after the fact.

There are still plenty of private fleets which do just fine with smaller engines.

On top of the transit and refuse fleets which have been quick to embrace natural gas, the fuel can be well suited for everything from dump trucks to mixers, pickup-and-delivery applications, and specialty vehicles like street sweepers.

“You can be surprised at what you can deploy with the 12-litre product,” said

Cold Star Solutions CEO Kelly Hawes (opposite page) introduced natural gas tractors which can be fueled for 30% less than their diesel counterparts.

A fast-fill station (right) was introduced in a partnership with Fortis BC. (Photos: Cold Star Solutions)

December 2014

PMC • 9

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Strength in numbers.

Private Motor Coach Carrier | 8.125 x 10.875

B Plus

By John G. Smith

Biofuel blends continue to rise, and there’s no need to worry Regulators are planting a little something extra in your fuel these days.

Indeed, a tank of diesel’s share of biofuels – created using everything from plant matter to organic waste – continues to rise in the name of lower emissions.

Alberta mandates a 2% blend to support its goal of reducing Greenhouse Gas emissions by 25%. British Columbia has mandated a 4% blend. Saskatchewan and Manitoba have 2% thresholds of their own. Ontario is scheduled to reach 4% by 2017, after recently extending the rollout by a year, and will introduce an interim target of 3% in 2016.

Biodiesel continues to be the “best and most economical” alternative fuel available, says Scott Thurlow, who recently served as president of the Canadian Renewable Fuels Association. “It’s proven on-road technology that has hundreds of millions of miles.” Thank the higher cetane numbers for a fuel that burns more completely than diesel alone.

All vehicle warranties will accept blends of up to 5% he stresses, and ¾ of the vehicles produced for North America will allow blends of up to B20. (The number after the B represents the percentage of biofuel in the mix.)

He also points to Minnesota when addressing concerns the fuel could gel and plug filters in cold weather. The state now mandates B10 between April 1 and Sept. 30, and by 2018 will be pumping B20 during the warmer months of the year. The shares will drop to B5 for the rest of the year. There is a reason the NFL’s Minnesota Vikings play football under a dome, he says. “It’s really cold there.”

It isn’t the only place where higher blends have been embraced. The municipality of Thunder Bay, Ontario, for example, uses blends of up to B15. Rothsay, a company that collects, processes and recycles animal byproducts, runs its vehicles on B20 in the summer and even B100 once equipment is off warranty.

While some cold-weather fleets struggled with plugging filters and frozen fuel lines with earlier biofuels, most of those issues could be traced to blending procedures that have since been addressed, Thurlow says.

For its part, the Canadian Renewable Fuels Association continues to call for B5 across Canada by 2020. Despite the potential environmental gains, though, he says there continues to be a need for tax support to increase the levels.

“It’s not always going to be altruism,” he says.

For more information on biofuels, see www.greenfuels.org.

Gordon Exel, president of Cummins Westport, suggesting that fleets look within their operations for the trucks that would be a fit. When under load and at higher speeds, a natural gas engine comes close to matching the fuel economy of a diesel design, and the fuel is undeniably cheaper. Under the right conditions, a truck traveling 160,000 kilometres per year would save about $18,000 in fuel costs at today’s prices. Even with added maintenance costs such as spark plugs and premium engine oil there is still a solid business case to be made.

That said he is quick to stress the upper weight of 80,000 pounds, and the need to travel 95,000 kilometres per year. “It can’t do everything,” he says. “We’re not going to get you the ‘Canadian’ weights.”

There are times when Cold Star trucks are close to the upper end of the weight range, but the relatively flat roads around Victoria are easy to handle. Drivers simply need to drop another two gears on Malahat Hill, adding about six minutes to a 90-minute trip. “For a 30% savings,” Hawes says, “I’m OK with that.”

“We found the breaking points on a number of these vehicles,” admits Scott Perry, Ryder Systems’ vice-president of supply management, alternative fuels, and natural gas. “The engine just doesn’t like to be idled.” But the leasing giant discovered the U.S.-based trucks were a perfect fit for local deliveries and Gross Vehicle Weights around (30,000 kilograms). They may introduce an extra $850 in maintenance costs per year, but that is less than a penny per mile in the right application. Shorter oil drain intervals can be scheduled so spark plugs are replaced at the same time.

The real question, he says, is whether the fleet has access to a fuel station and maintenance support. Service facilities which want to work on the equipment can require upgrades including air handling systems, methane detectors, and enhanced electrical systems and lighting.

Cold Star experienced a few challenges of its own.

While the fleet committed to buying 380,000 litres of natural gas a year from Fortis BC, it initially ran short of its

December 2014

PMC • 11

v

RENTALS

Canadian fleets may not have the option of a big-bore engine powered by natural gas, but there are still options for those who deal with maximum Gross Vehicle Weights of 80,000 pounds. (Photo: John G. Smith)

targets with the 10 trucks. Operations teams were too quick to throw a driver the keys to a diesel-powered truck if a natural gas version was running a few minutes late, Hawes says. He solved that problem by collecting keys to the diesel tractors. All anyone had to do was ask for a key if the freight really had to move that quickly. Nobody ever did.

Rather than mounting fuel tanks on the back of the cabs, he also had a pair of 45 Diesel Gallon Equivalent (DGE) tanks placed on the frame rails. This extended the tractor wheelbases by two feet, reaching 193 inches. Admittedly he wondered if BC Ferries, which charges rates by the foot, would notice. “They literally measured the first truck,” he says with a laugh. “I couldn’t believe it.”

The ferry service was even reluctant to transport the trucks at first, until it learned about the technology. For their part, drivers had to be educated that they were not “driving on a bomb”, and learn to shift by tachometer readings rather than listening to engine sounds.

Meanwhile, a natural gas truck can be refuelled in about 15 minutes, effectively matching the time to fuel its diesel counterpart, and each pair of tanks can be refuelled with a single connection. Drivers also only use about half the available fuel on their 350-kilometre trips. Hawes wonders how much further they might get on that tank, but has yet to push the limits. “At some point we’re going to have to bite the bullet and test it, and pay a tow bill if necessary.”

Unique barriers can emerge in any operation. Ira Pearl, the president and COO of Mansfield Energy, admits that some fuel terminals were still banning spark-ignited engines because of rules put in place in the 1970s. “We had to go through extraordinary lengths to document and demonstrate the safety,” he says of his experience with CNG trucks in the U.S. The biggest barriers of all tend to involve introducing new ideas.

Universal Truck Rental and Leasing has introduced a dual-fuel daycab tractor into its fleet just to introduce customers to the bolt-on system, which offers a 400-kilometre range and more than 20% in fuel savings in return for a $16,000 investment.

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PMC • 13

“There’s the fear of skepticism, there’s the fear of conversion, the fear of risk, and the fear of being the first to jump at dual fuel.

The only way to overcome that fear was to put the keys in the companies’ hands and let them drive the truck,” owner Steve Baty said during the recent Surface Transportation Summit. “It’s very anti-climactic. There’s nothing to it. You get into the truck and drive it. Nothing changes. When the natural gas runs out, the truck runs 100% on diesel, and if you’re not watching the fuel switch, it just switches over. It’s just a cheaper form of running your truck. What the natural gas does to diesel is it burns it more efficiently, higher in the combustion chamber, so it burns your engine cleaner, faster, quicker.”

“That yellow pipe delivers fuel for 30 cents a litre. You can’t buy cheaper fuel. It costs you 30 cents to compress it, so you can have onsite fuel for 60 cents,” he said. “We thought by now we’d be beating you off with a stick.”

Even Enbridge Gas Distribution has opted for dual-fuel equipment on its 600 vehicles that run on natural gas, because many run in isolated areas that have limited access to fueling stations. But the resulting savings still add up to $1 million a year.

“That’s not chump change,” says Jamie Milner, vice president. “It just makes good sense to save money and reduce emissions.”

Indeed, the environmental benefits cannot be overlooked.

Transportation accounts for 30% of the energy used in Canada, or about 18 billion litres of diesel last year. Natural gas fleets even compete with electric vehicles if you consider the emissions generated to actually create the electricity upstream, says Cummins Westport’s Exel.

But the deciding factor is always driven by economics, stresses Olivier Sylvestre, director of development for natural gas in transportation at EBI, a waste management business in Montreal that also rents CNG vehicles. His company has the added advantage of actually generating biogas with a landfill site, which supports two public filling stations. “It’s our own energy.

It’s renewable. It’s efficient,” he said. And it now diverts 3 to 4 million litres of diesel per year. “The environmental benefits are just icing on the cake.”

As new fleets continue to emerge, governments are showing their own interest. Union Gas recently hosted visits by two Ontario cabinet ministers at its storage facility. That was the first time this happened, says Dave Simpson, vice president of in-franchise sales, marketing and customer care.

Financial incentives to purchase the vehicles continue in Quebec and British Columbia. Incentives south of the border include Michigan’s tax incentives, New York has a grant for fuel stations, and Ohio has an emission reduction program. “It’s all around us,” Simpson says. “Promote it. Incent it.”

“I would never have jumped on board so quickly without the incentives,” Hawes admits, noting how the support comforted bankers. But based on his experience, he would still do it without the incentives.

It’s an important observation. “The government can give and the government can take,” Mansfield Energy’s Pearl offers. “The pMC business case better stand on its own.”

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PMC • 15

borderBound

by John G. Smith

Prepare for operating

differences if your private fleet is expanding into the U.S.

T

he prospect of serving the U.S. marketplace is exciting for any company. Our largest trading partner includes more than 300 million consumers and accounts for 25% of the globe’s economic output. Trade across the Ambassador Bridge between Windsor, Ontario and Detroit, Michigan will on its own match the trade between the U.S. and Japan.

But the opportunities come at a price.

When Statistics Canada studied cross-border trucking costs, it found that the U.S.-bound shipments cost 18 to 31% more than equivalent domestic trade. “Higher fixed costs per shipment are consistent with border delays and compliance cost,” concluded the authors of Trucking Across the Border, released in

16 • PMC

December 2014

2012. Steeper linehaul costs were linked to the struggle with finding backhauls, in part because point-to-point movements within the U.S. are restricted by cabotage rules.

They are not the only operational differences to consider.

“First and foremost is the Hours of Service and also the weight,” says Edward Cherubini, national fleet manager for Livingston Vehicle Transportation Services. “At the end of the day you can haul more [per truck in Canada].”

Canadian regulations allow drivers to work 13 hours after taking eight hours off, while the U.S. regulations limit drivers to 11 hours of work after 10 hours off duty. The U.S. duty cycles of 60 hours in seven days or 70 hours in

eight days are also less productive than the 70 hours in seven days and 120 hours in 14 days allowed here. While maximum weights can vary depending on province or state, a tractor and tandem semi-trailer generally allowed a Gross Vehicle Weight of more than 40,000 kg in Canada will be capped at about 36,000 kg (80,000 pounds) on U.S. interstates.

The unique rules don’t end there.

Cross-border drivers are subject to drug testing requirements, and depending on their past may require criminal waivers before traveling to the U.S. Insurance requirements might vary too, particularly if the freight will travel through areas that are known for hefty court settlements against fleets. Drivers can

even be placed out of service if they cannot read and speak English well enough to converse with the general public, understand highway signs and signals, respond to official inquiries, or make entries on reports and records.

When asked, “Where did you start your trip today,” they better be able to answer.

There is also a unique approach to safety ratings to consider.

U.S. regulators and insurers alike keep a close eye on Compliance, Safety, Accountability (CSA) ratings, which track such things as unsafe driving, compliance with Hours of Service, driver fitness, the use of controlled substances and alcohol, vehicle maintenance, and compliance with hazardous materials rules, on top of providing a crash indicator based on the frequency and severity of high-risk crashes. “They have to monitor their CSA score,” Cherubini says of the fleets. Given the wide-reaching nature of the reports, it will be equally important to ensure that drivers report all fines, collisions and inspections in a timely manner so fleet can address rising totals, he adds.

Back in fleet offices, the files on each cross-border driver must be more comprehensive than the documents for those who operate in Canada alone. In terms of drug and alcohol testing, there will need to be a certificate of violations, and a copy of the medical examiner’s report, Cherubini says. The application for employment will also need to be more detailed, exploring experience, the type of equipment that has been operated, the existing class of licence, and training, he adds. On top of this, the file has to include documented inquiries to anyone who has employed the driver in the last three years; inquiries to state agencies covering the same three-year period; annual inquiries to state agencies from the moment the driver is hired; an annual review of the driving record; an annual certification of violations; a copy of the driver’s road test or equivalent; and a medical examiner’s certificate.

An estimated 45 different agencies now gather data about trucks that cross the border, whether it involves the U.S. Immigration and Naturalization Service’s

need for details about a driver, or the U.S. Department of Agriculture’s focus on goods in the reefer.

While private carriers do not require an MC Number, those that offer for-hire services will. And fleets which hope to expedite border crossings will want Free and Secure Trade (FAST) cards to identify low-risk drivers.

There are other options to expedite business activities, such as registering with the International Fuel Tax Agreement (IFTA), which requires fleets only to file a single quarterly return with a base jurisdiction. This could lead to a refund for a fleet that tends to buy highly taxed fuel but travels most of its distance in states with lower taxes.

They are not the only tax implications to consider.

Linda Spina of MNP LLP, one of Canada’s largest accounting and consulting firms, suggests that businesses may even want to establish the U.S.-bound private fleets as separate entities, particularly if they will collect some for-hire revenue through backhauls.

“If a Canadian [fleet] is considering doing business in the U.S., it would have to determine how it’s going to conduct its business in the U.S. so it does not pay U.S. income tax at graduated rates,” Spina says. The mileage in an individual state can determine tax exposure.

Some jurisdictions are also more aggressive than others. States like California, New Jersey, New York and Pennsylvania are particularly known for chasing after tax dollars, Spina says, referring to information that is gathered in documents known as a nexus questionnaire.

“New Jersey will stop your truck. They have revenue agents at weigh stations,” she says.

Those who have not filed a tax return will find vehicles impounded.

“You have to track the mileage of each truck in each state,” she says. “That’s critical to make sure that you are compliant and you’re not doing yourself a disservice with bad records.”

The reporting is not always complex.

A fleet traveling in Florida, for example, can attach a federal tax return that claims treaty-related protections. But

Trade across the Ambassador Bridge between Windsor, Ontario and Detroit, Michigan will on its own match the trade between the U.S. and Japan.

other states require tax forms of their own. Complex requirements to disclose a corporation’s worldwide revenue and taxes might be minimized by establishing the U.S.-bound fleet as a special-purpose corporation. “It’s much cleaner,” she says. Fleets without a permanent U.S. establishment like an office or warehouse would also be exempt from U.S. income tax.

Of course, steps to minimize crossborder differences continue. Canada recently adjusted allowable dimensions, giving fleets the right to use full-length aerodynamic boat tails on both sides of the 49th parallel. Recent announcements by the Canada-United States Regulatory Cooperation Council, meanwhile, refer to plans to harmonize codes and standards around natural gas as a vehicle fuel.

Transport Canada and the National Highway Traffic Safety Administration (NHTSA) are looking for ways to use the same tests when establishing vehicle standards. But, even then, new barriers continue to emerge – such as the U.S. Department of Agriculture’s plans to increase animal, plant and health inspection fees.

There will always be some unique factors to consider when you’re border pMC bound.

December 2014

PMC • 17

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nsurance is one of the few things that a fleet will buy and hope not to use — like spill kits, first aid supplies, and fire extinguishers. So there should be little surprise when fleet managers show an interest in strategies that will help to manage insurance premiums.

Of course, some factors are outside any fleet’s control. Shari Dodsworth, Northbridge Insurance’s senior vice president of sales, business development and distribution, cites examples including the type of freight, the location of a facility, or a customer’s address. Fees for medical support and lawyers also continue to rise. “People submitting claims always have lawyers,” she says. “Look at the billboards.” Ambulance chasers are hardly subtle in their advertising.

Claims have the biggest influence on insurance rates, adds Scott Cober, national transportation practice leader at Marsh Insurance. “The large losses in trucking are unfortunately a factor in the business.”

But fleets which have a five-year track record of sub-30% loss ratios – a figure comparing claims to premiums – are going to be rewarded with the most competitive rates, he says. “A good risk is a good risk.

Good fleets are paying lower premiums.”

Todd MacGillivray, Northbridge’s director of transportation and logistics, refers to three primary factors which influence insurance premiums. “It’s where you go, what you haul, and your level of commitment to safety and hazard management,” he says. “That’s where the communication [with your insurer] is key.”

Some locales such as New York, California and Texas expose fleets to a higher likelihood of big lawsuits and massive jury settlements. While the customer locations don’t change, a fleet can limit the number of trucks which require related coverage by

18 • PMC

December 2014

by John G. Smith

Claims play a role in rates, but so do factors such as the type of freight and lanes that are traveled.

clearly identifying the equipment and drivers who will go to the locations. The trucks and drivers that remain can be covered by insurance which reflects their lower risks, he says.

Private fleets also tend to have a unique advantage over for-hire counterparts when it comes to identifying exactly what is hauled. But insurers are still going to want information about any goods that are being collected during backhauls.

“Is it something thieves generally will look at?” MacGillivray asks. And how likely would these goods survive a collision. Cargo such as lumber, sand and gravel, for example, is more likely to be recovered than electronics or household goods.

Safety first The biggest opportunities for savings tend to surround a fleet’s commitment to safety and hazard management.

Insurers today will carefully study factors such as hiring practices, equipment age, preventive maintenance schedules, and how often damage falls short of deductible

limits. “Is the business owner being proactive? Are they doing things above and beyond the requirements?” MacGillivray asks. “If they’re committed to safety, then it’s going to resonate all the way toward their drivers.”

One way or another, the commitment is eventually reflected in government safety ratings. Insurers openly admit that they keep a close eye on reports available through sources such as Ontario’s Commercial Vehicle Operator’s Registration (CVOR) and the U.S.-based Compliance, Safety, Accountability (CSA) program.

The latter’s Behaviour Analysis and Safety Improvement Categories (BASICs) measure unsafe driving, fatigued driving, driver fitness, substance abuse, maintenance, cargo issues, and the chance that a future crash will occur.

Some insurers will not even consider a fleet with a “conditional” rating, says Greg St. Croix, national transportation risk focus leader at Marsh Insurance. Fleets which have other lines of insurance with the same company may be somewhat protected from this threat. But even then, a visit from the

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insurance company’s risk control specialist will be pretty likely to occur.

It is not the only data to monitor. Some types of losses are a greater concern to insurers than others, Dodsworth says.

Today’s ticket for an improper lane change, for example, increases the likelihood of a sideswiped trailer. An increase in the frequency of incidents eventually leads to a higher severity.

“If you can’t measure it you can’t manage it,” St. Croix adds.

He likes to see fleets tracking data as diverse as the frequency of collisions and driver turnover. “Generally the industry doesn’t know how to analyze all they have,” St. Croix says. “We’re finally wising up to the power of analytics.” Properly tracked, this gives fleet managers the ability to see issues like an increasing share of collisions involving right-hand turns.

They spot trends. They take action.

MacGillivray suggests that 15% of the fleets insured by Northbridge are ultimately identified with a “superior” status which is rewarded with favourable rates. “It is achievable if the individual is committed and willing to work with our team,” he says.

Investments in technology often help to make the difference. Electronic logbooks, for example, help to ensure that drivers comply with Hours of Service rules. Dash cams and other telematics tools help to track driver behaviour, leading to the insight that can be used to focus driver training.

While some fleets balk at the idea of using electronic logbooks, or choose to wait for the equipment to be mandated, the tools are more affordable than ever before, St. Croix says. Insurers also believe that the tools help to reflect a fleet’s commitment to safety. “They embrace technology, and they see drivers as partners, and they see drivers as operators that are crucial to the success of their operation,” he says. Not only that, but early adopters have a chance to learn how the equipment affects their business, and will be better prepared to flip the switch when rules are mandated.

“With the growth and change of technology, you can see the cornering and

lane handling street by street,” Cober adds. This is the type of information which can identify risky drivers and reduce the frequency of collisions. “It has to be seen as rewarding good behaviour, not just coming down on bad behavior.”

The approach of using the technology as a carrot rather than a stick can be particularly important when introducing the tools to older drivers who are more likely to fear technology.

Then there are the options such as adaptive cruise control and lane monitoring technologies which actively help to avoid collisions altogether, St. Croix says. “Adaptive cruise control has been proven to reduce rear-end collisions dramatically.”

“Captive” groups are also becoming more popular, drawing several fleets together under a common umbrella, and transferring risk. “We take the good risk

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PMC • 21

out of the traditional marketplace,” Cober says, referring to the ways that participating fleets also share best practices and ideas. Some of their insurance coverage might be shifted outside of Canada, or supported with a higher deductible. The latest generation of fleet executives seem to be more open to different strategies which transfer risk, he says.

Times change. “Ten years ago, fleet captives were virtually unheard of in Canada,” St. Croix notes.

The power of personal relationships cannot be overlooked, either. He stresses the value of working with insurance providers throughout the year rather than simply communicating at renewal time.

“It’s a business relationship much the same as a carrier has a relationship with their own clients,” St. Croix says. “It’s every bit as important.” pMC

pet project Defensive driving leads to massive savings Fuel savings were just one of the benefits that Hill’s Pet Nutrition expected to realize when it introduced a defensive driving program in its private fleet, which largely includes straight trucks averaging 15 drops a day.

The 220-truck operation saved its first million within six years. As impressive as that was, it now saves about $1 million every year.

Bill Perry, safety and compliance manager – customer fulfillment with Hill’s, shared his success story at the Green Truck Summit in Indianapolis earlier this year. The company, which leases its trucks from Idealease, began spec’ing more fuel-efficient vehicles in 2006. It adopted automated transmissions and installed electronic on-board recorders. The fleet was divided up by vehicle type and location and drivers worked as groups to improve their fuel economy.

They were trained to drive defensively, using the Smith System for defensive driving. Fuel economy baselines were established and operators were given the opportunity to earn a 5% quarterly bonus depending on whether they met or exceeded expectations.

In the fourth quarter of 2013, the company’s drivers averaged 8.6569 mpg – yes, Hill’s tracks fuel economy out to the fourth decimal. Its fleet-wide fuel economy before implementing the program was 7.1 mpg. Its top operator, running Florida, achieved 11.232 mpg. Its top 25 drivers are all achieving greater than 9.75 mpg.

Perry said it’s possible for a driver to immediately improve by 1/10 mile per US gallon, just by modifying behavior. His team rides along with drivers every quarter to ensure they’re implementing the skills taught through the Smith System. Each of its driver trainers are certified Smith System instructors.

Hill’s spent $4.5 million on fuel last year, but that’s a million less than it was spending before the defensive driving training was provided and the fuel economy incentives were offered.

“With a little bit of training, a little bit of encouragement and a little bit of technology, you’re going to see numbers very similar to that without a whole lot of effort,” he said. “Get your folks involved and let it be part of their program. Dangle the carrot out there and you’ll see some sort of difference in your organization.”

“We don’t always think of fuel-efficient driving and defensive driving as being one and the same. But both types of training involve similar ideals. Don’t follow too closely. Easy on the throttle and the brake. Look far down the road and anticipate stops. Use the vehicle’s momentum to reduce braking.”

All these things lead to a safer driver but also a more fuel-efficient driver. If you’re having a hard time justifying the cost of defensive driving training for your professional drivers, consider the Hill’s experience and the payback they achieved. They’re proof that a defensive driver is not only a safer driver, but also a more fuel-efficient driver.

December 2014

PMC • 23

by John G. Smith

Look who’s

40

Hino celebrates four decades and a top Class 4-7 market share in Canada

Hino Canada had plenty to celebrate when it hosted a gala with more than 200 guests including customers, dealers, and executives from across the globe.

“I guess many people wonder why Hino Canada decided to have this kind of party for 40 years,” admitted Shuichi Kaneko, president of Hino Motors Canada, recognizing that it is unusual to celebrate such an anniversary in such a grand way.

“We believe this year is the starting point of a new era of Hino business in Canada.”

Business has been good. Hino notes that last year, for the first time in company history, it secured the top market share for Class 4-7 vehicles in

Canada. This year it expects to reach 1,900 units — with sales of Hino’s popular 195 platform topping orders — and next year it is eyeing 2,000 units.

“Canada is one of the most important markets for Hino,” said Masakazu Ichikawa, chairman of Hino Motors Ltd. Japan.

Agreeing that the road to success “has at times been bumpy,” he linked successes to teamwork throughout the organization, including a production group in Woodstock, Ontario with a “relentless focus on quality, safety and kaizen [a process that eliminates waste in manufacturing].”

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December 2014

PMC • 25

Is same day the

right way ?

by James Menzies

“Tomorrow is not fast enough anymore,” says Marc Wulfraat

MISSISSAUGA, Ont. — By the end of this year, Amazon will offer same-day delivery service to 23% of the U.S. public as well as Toronto and Vancouver. It’s a trend that could revolutionize the transportation industry, according to Marc Wulfraat, president of MWPVL International, who spoke about same-day delivery services, at the recent Surface Transportation Summit.

“Tomorrow is not fast enough anymore.”

However, the question remains: are customers willing to pay for same-day delivery service, and if so, how much?

“Everybody loves free shipping. That much is clear. Everybody loves same-day delivery. That much is clear. But what’s not clear is how much people are willing to pay for it,” Wulfraat said.

Amazon charges Amazon Prime members $6 for same-day delivery on top of their $99 annual membership fee.

However, Wulfraat said it’s not viable to offer same-day delivery service for much

less than that. His consulting firm has calculated it would take 150 deliveries on a single truck to keep the price to $4 per delivery.

“So if you don’t have mass density and volume to support same-day delivery, you can get into the $10-$12 price tag very quickly,” he said. “If you’re doing 30 stops per load for $5, it’s going to be a moneylosing proposition.”

Amazon is using a broad network of fulfillment centres and sorting facilities to organize packages and then drops the packages off at local post offices or delivery companies for final delivery to the customer. Items ordered between 7 a.m. and noon will be received by 9 p.m.

Amazon’s goal is to offer the same-day service to 50% of the U.S. population.

“To keep up with Amazon in terms of delivery service levels, every other retailer has to keep up with that raised bar, so there’s a mad rush now,” Wulfraat said.

Most same-day freight will move by trucks, but Amazon has also unveiled a prototype of Prime Air -- an unmanned aerial vehicle which could deliver selected packages within 30 minutes. A key limitation, though, is that it will still require approval by aviation officials.

(Photo: amazon.com)

Other retailers offering or planning to offer same-day delivery in the U.S. include: Google: Through its Google Shopping Express concept, customers can order things from local retailers, with goods delivered to homes within two hours. The program is being tested in San Francisco with 20 retailers. eBay Now: Since 2012, eBay Now has used couriers as local valets to pick up and deliver items from hundreds of retailers in less than two hours. It charges $5 per order with a minimum order of $25.

However, plans to expand the program to 25 cities by the end of this year have been shelved, Wulfraat said.

Walmart To Go: Walmart is testing an online grocery delivery service in Denver.

It charges $5-$7 per order with a minimum order of $30 in an aim to convert its stores into logistics centres.

Walmart.com: Operated as a separate business unit, Walmart.com will provide same-day delivery service from its stores.

Target: Not to be outdone, Target is offering same-day delivery in three markets — Minneapolis, Boston and Miami — with a $10 charge for rush delivery.

Items ordered by 1:30 p.m. will be received between 6 and 9 p.m.

Macy’s: Macy’s is launching a same-day delivery service in eight markets beginning this fall.

Instacart: This grocery delivery company provides delivery within one to two hours from a variety of grocery retailers including Costco. It charges $4 for two-hour deliveries and $6 for one-hour service.

“We haven’t seen this in Canada to the same extent it’s happening in the U.S.,” acknowledged Wulfraat. “Canadians don’t order online as much as Americans do. But whatever is going on in the U.S. is pMC definitely on its way here.”

December 2014

PMC • 27

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y.

by Julia Kuzeljevich

Meet the

candidate Tips and techniques to find the right people

Ross Reimer, president of Reimer Associates, says the best advice he ever received came early in his career as a recruiter.

“When you meet a job candidate, and you don’t quite have that connection at the beginning or you don’t even like the person, go very easy at that point and suspend your judgment,” he told a crowd at the recent Surface Transportation Summit hosted by Glacier Media’s Transportation Media Group. “The flip side is the same — if you find it’s going too easy, start going harder. But be careful you don’t waltz the person right into the job.”

He offered several tips when searching for personnel for any organization.

Be considerate of a candidate’s schedule when booking the interview, he said.

Fitting them in is important, so be flexible.

“I would just say that sometimes going off location is best, and adjust your expectations accordingly. We may be interviewing salespeople in the morning and vice presidents in the afternoon. It’s important to keep that in mind,” he added.

While there are many outgoing people who tend to be less nervous in a given situation, nervousness “doesn’t mean they are hiding something or lying. I’ve seen people sweat, cry, hyperventilate and spill coffee. You have to make allowances for this,” Reimer noted.

Questions that examine behaviour allow you to drill down into the resume and see if there is actual experience behind what is written.

Getting someone to describe how they handled a particular situation can reveal a great deal.

Panel interviews can also be very effective, in that they can give one interviewer the chance to ask questions and one person to observe.

“I think eight people on a panel is overkill, but two or three people can give

the interviewers the chance to reflect on what they are hearing,” Reimer said.

When comparing skills sets of comparable candidates, an important factor to consider is whether they are a good cultural fit, which is paramount.

“Candidates can have similar skills sets but people can be great candidates for one location but not in another. It comes down to intuitive listening, record checking, and even taking the candidate off site. Taking a senior person offsite can be a good way to see what their cultural fit will be,” Reimer said.

And as you’re proceeding with the interview, remember that silence can be golden.

“As an interviewer it is important to not fill in every gap of silence. The person

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being interviewed will generally fill it in and you will find more out,” Reimer said.

When you encounter someone unusual, just keep in mind that unusual can be OK. While it will depend on what you’re hiring for and what the candidate will be doing, it is not fair to lay the template of perfection over the interview when the people in question may be far from that, Reimer said.

Of course, there are exceptions.

“One of the legendary people we came across was in a telephone interview that he initiated and then, while talking to us, he paused to flush the toilet. That was too unusual for us,” said Reimer.

It comes down to culture, the position being filled, and your intuitiveness on whether a candidate is just too unusual to be seriously considered.

When managing the hiring timeline, be aware that great candidates expect to be handled well throughout the process, even if you only want to test the market.

“Companies who do poorly here only get pMC mediocre people,” stressed Reimer.

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PMC • 29

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space saVING

by Sonia Straface

‘Ship from store’, automation seen as keys to supporting e-commerce aS iMPoRTanT aS THE space in a traditional distribution centre may be, Canadian businesses are increasingly looking to automation, and even other locations, to support e-commerce activity.

“Regular sales or brick-and-mortar retail sales for most chains are very mature and are flat. But e-commerce sales are growing every year at double digits. This is where the money is. This is where retailers are making investments,” says Alan Taliaferro, Deloitte’s director — supply chain management, retail industry, logistics and distribution.

During the recent Surface Transportation Summit he warned that this rise in activity increases the strain on e-commerce commercial centres, but said more companies are looking to fix this through other means.

“If you’re out of stock and absolutely have to save that order, then ship it from the store because you don’t want to lose that customer,” he said. “We see ‘ship from store’ coming for things like ... next-day delivery, because the e-commerce fulfillment centre is too far away. Retailers are not going to see double-digit [sales gains] in store. They have to make investments in e-commerce in order to keep that ball rolling.”

Greg Laurin, president of Conestoga Cold Storage, said his company has a mix of conventional and automated warehouses to meet the expanding needs. “Automation is really helping,” he said. “We do it primarily from an efficiency standpoint — it reduces labour. In our business it’s a little easier to justify we have because -18 degrees Celsius operating temperatures and we operate 24 hours a day, seven days a week. It’s very difficult to find people who want to stick around.”

He noted that automation will go a long way for the warehousing business, saying

that new technology like Automated Guided Vehicles (AGVs), which are most often adopted and seen in Europe, should

be welcomed in North America.

“What they’ll do is the load and unload product right from conveyer lines,” he said of AGVs. “And they’re getting to the point where they can load and unload trailers all by themselves. They’ve come a long way.

That’s really an important aspect. I’ve seen a facility that had 50 of these AGVs, running like ants all over, picking product up and moving it around. You don’t have the people issues.” pMC

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December 2014

PMC • 31

time for

TMS

by Carolyn Gruske

What to look for in your Transportation Management System

While there is no one magic Transportation Management System (TMS) that will work for every company, there are a number of

common features and functions that carriers want to see.

For starters, it has to be good for the

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December 2014

bottom line, said Ed Ryan, CEO of Descartes, during a presentation at the recent Surface Transportation Summit.

“Typically it’s to save money. A good Transportation Management System will save you in the 5 to 20% range depending on the problems you have,” he said, adding that by having all carrier and rate information entered into a TMS, a business can better control its spending.

A TMS can also provide savings by handling loads more efficiently.

“There’s a big cost-saving opportunity when it comes to consolidation. If you have 100 moves tomorrow out of Vancouver, you move it as 100 moves because that’s what it came into you as.

There are probably opportunities to consolidate those loads and turn those 100 shipments into 90 shipments before you even start figuring out other ways to save money, if you just take a look for backhauls and other consolidation opportunities,” he said.

According to Ryan, a good TMS can offer a company the data to know whether it makes more sense to use its own fleet or to outsource a specific delivery to a third-party carrier.

He also warned that a good TMS implementation is one that is done in stages.

“A lot of failed projects started with the ‘boil the ocean’ concept that’s about solving a gigantic problem and not getting any value until they solve the whole problem. I encourage you to break the problem up into chunks. Find the ones with the more value and that are the easiest and start there. ‘Boil the ocean’ projects tend to waste a lot of money and not deliver the value you need.”

Mark Sauve, senior manager of distribution operations at Hershey Canada, also offered some insights about what he feels makes a good TMS. He said Hershey has an old TMS it relies upon to manage up to 1,000 moves per day during peak season, but the company intends to replace it in the near future.

Hershey’s TMS is able to “automate a lot of process,” said Sauve. “The only way to stick on budget and on plan is to have a

framework that forces you to stick to that budget. It also sets up and automates some of the other functions around transportation management such as payables. When an invoice comes in from a carrier, we have a load we can match against it to verify that load was actually delivered.

We have rates in the system to verify the charge we are being charged is correct.”

He also finds value in the information the TMS collects.

“One advantage is it collects large amounts of data. It captures costs and service metrics by carrier by client by service type. All those things are very important and useful. Mostly they are useful to negotiate and analyze carrier performance. When we go for an RFP we are able to provide detailed information to the carrier by lane—this is the volume in the lane, these are the typical loads you’ll see in the lanes. The better information we can provide the carrier, the better they can do giving us a rate appropriate to that.”

What he’s looking for in the future TMS is something that allows him a bit more flexibility to handle complex situations.

“Seasonality is one of the issues we deal with and our carriers deal with.

Recently we had some challenges on our north-south transportation network into and out of Florida. It was produce season and a lot of carriers have capacity right up. We talked to some carriers who said they’d really like to be able to offer us different prices at different times of the year, so they can better service us during the peak times when there is a high demand for their service, which would be great, but we have a very rigid system… we’re not really able to accommodate seasonal rates. There are always exceptions to what you are doing.

Generally we like to stick to plan, but things don’t always go according to plan.”

He also expects a TMS to provide not just historical data, but real-time information that will allow the company to head off upcoming problems.

“I want to know before we’re late we may have a particular issue. I think that’s a big change in how I view technology.

The easy part is to tell me we were late.

The difficult part and what I’m looking for

in the future is to tell me something I need to know. I need to know when something has gone off plan so I can take some steps to address that.”

Not only does he want to know what’s happening, he wants that ability to run a variety of scenarios and come up with options ahead of time, based on differences in circumstances. As well, Sauve wants a system that will allow him to ask it a variety of questions.

“The entire TMS ecosystem for us includes more things than just the TMS,” said Patrick Ressa, chief information officer at SCI Logistics. “To name some: network analysis, GPS monitoring and reporting from our equipment in the field, telematics, mobility option in the field.”

“We want a system that allows us to create standard processes across our business,” he added. pMC

December 2014

PMC • 33

www.PMTc.ca Your Voice. online.

• • • • •

•

THE PRIVATE TRUCK FLEET MAGAZINE

Read news and views from PMTC Register for industry events Download Private Motor Carrier magazine Link to important resources Members-only bulletins, presentations and resources And much, much more!

www.PMTc.ca

a

.

a

in the

WEIGHT CHANGES INTRODUCED — The National Task Force on Vehicle Weights and Dimensions Policy adopted three key changes during a recent meeting in Montreal. Tridem drive tractor/semi-trailers have been added to the Memorandum of Understanding, aerodynamic devices can now extend up to 1.52 metres from the rear of trucks and tractors (to allow boat tails), and B-Train doubles are increasing to 27.5 metres from the current 25 metres. The latter change will accommodate tractors with longer wheel bases and make room for devices such as moose bars and auxiliary power units.

WOMEN WITH DRIVE — Those who recruit, retain and mentor women in Canada’s trucking industry will be able to tap into new insight through the Women with Drive Leadership Summit, scheduled for March 5 in Toronto. Trucking HR Canada has organized the summit as part of a three-year action plan to address barriers and challenges faced by women in the trucking industry. While women account for 48% of the workers in Canada’s labour force, they represent a mere 3% of truck drivers, mechanics, technicians and cargo workers. See www.truckingHR.com for details.

DRIVING CHAMPS NAMED — Private fleets were well represented among the winners after a competition in St-Jerome, Quebec. Aaron Kershaw of TDL Group in Ontario placed third in the train category.

Dale Robert Scott of Fountain Tire in British Columbia placed second in the single-tandem category; Dean Grant of Agrifoods International in British Columbia placed second in the straight truck category; and Robert Stevens of Home Hardware in Atlantic Canada placed second in the train category. Stevens was also named Rookie of the Year.

CASH FOR COMMUNICATION — The federal government is investing $1.3 million in a project to help vehicles and infrastructure communicate with each other. The three-year ACTIVE-AURORA initiative is being led by the University of

Alberta and University of British Columbia to help test emerging connected vehicle systems. Tests can involve such things as sending messages from roadside signs to vehicle information systems in trucks, or offering advance warnings about traffic slowdowns. The overall project will cost about $3.66 million.

PORT SUPPORT — Metro Vancouver’s container trucking industry is moving ever closer to a new licensing system at the Port of Vancouver. Recently unveiled reforms include requirements for performance bonds, damage deposits, driver sponsorship agreements and licence charges. The new system will be running

by Feb. 1. Other changes include establishing an independent container trucking commissioner and an industry advisory committee. The changes come in the wake of a lengthy strike.

news

Excellence Award for the second year in a row, recognizing quality, on-time delivery, added value and customer service.

BENDIX BEST — Bendix Commercial Vehicle Systems has earned the Frost & Sullivan Product Leadership Award for Overall Best Supplier of Advanced Safety Systems for Heavy-Duty Trucks. Sixty-four percent of surveyed fleets said Bendix was the best brand in safety systems.

NEW VP FOR TRAILER WIZARDS — John Geertsema has been named vice president of Trailer Wizards’ Ontario region. He was previously managing director of sales at FedEx. KENWORTH MOVES IN FORT MAC — Edmonton Kenworth has moved its Fort McMurray dealership to a new 13,000 square-foot location with a larger parts department and four service bays. It also doubled the capacity of its remote service fleet by adding two Kenworth T370 mobile service trucks. The new location sits on Taiganova Crescent, just off Hwy. 63.

TRAILER WIZARDS EXPANDS SERVICE SITE — Trailer Wizards recently celebrated the grand opening of its new service centre in Mississauga, Ontario.

“This expansion brings us to 20 bays in the [Greater Toronto Area] supported by 10 mobiles,” said Anne McKee, executive vice president.

ESPAR HONOURED AS MASTER OF QUALITY — Espar has been awarded the Daimler 2013 Masters of Quality Award from Daimler Trucks North America, counting the company among the top 3% of the OEM’s suppliers. More than 1,000 suppliers were considered. “This award acknowledges our dedication to continually improve the performance of our heater products and the devotion of our team to service our heavy-duty truck customer,” says Ashu Aggarwal, Espar’s quality manager. Espar also earned the GM Supplier Quality

INLAND KENWORTH SERVICES KELOWNA — Inland Kenworth has opened its first parts and service location in Kelowna, with 10,000 square feet and six service bays just off Highway 97. “The Okanagan Highway is a major truck route connecting Kelowna with Vancouver,” said Rick Datoff, dealer manager for the new Kelowna shop. “Local customers in the construction and logging industries, as well as transient customers, will find this dealership easy to find and more pMC convenient.”

December 2014

PMC • 35

whAt’s

new • new regionAl And P&d steer tire from Bridgestone Bridgestone commercial solutions has unveiled the firestone fs561 all-position radial tire recommended for steering applications in regional and P&d fleets. “the new fs561 is built for demanding environments, with features such as a tough tread cap compound and solid shoulder ribs that help resist manoeuvring scrub leading to increased tread life,” said matt loos, director of truck and bus marketing - Bridgestone commercial solutions. “the fs561 delivers the trusted, quality performance of the firestone brand.”

Additional features of the firestone fs561 include sidewall protector ribs, stone rejecters in centre grooves, and a sidewall designed to reduce weight and improve fuel economy. it is currently available as a 295/75r22.5 and 11r22.5. more sizes are pending.

•

Bridgestone Commercial Solutions

• new drive tire enhAnces fuel efficiencY goodyear has unveiled its most fuel-efficient longhaul drive tire. the fuel max lhd g505d tire is verified by

• eXtrA frAme rAil sPAce for model 220

smartway and enhances fuel economy by an

Peterbilt’s new medium-duty model 220 can now be spec’d

through a combination of fuel-efficient

with a clear frame rail package that offers up to 10 inches of

compounds, tire construction and tread design.

extra frame rail space.

average of 2%. the gains were realized

“this tire is a must-have for fleets that are

“this new option is ideal for customers in applications such

serious about reducing their cost per mile,”

as beverage delivery, street sweeping and striping and refuse

says Brian Buckham, general manager –

collection and packing,” said robert woodall, Peterbilt

product marketing for goodyear commercial

director of sales and marketing. “the clear frame rail package

tire systems.

optimizes chassis space to help accommodate installation of a

sipes in the centre ribs and lateral grooves

wider range of work bodies. Additionally, this new configura-

help to enhance all-season traction, while tire

tion results in a 40% larger capacity def [diesel exhaust fluid]

life is supported with a wide tread and

tank, improved visibility through the rear window and greater

“micro-grooves”, steel belt casing package

ease of serviceability.”

and penetration protectors.

Peterbilt introduced the new model 220 in march and it went into full production in July.

•

•

Goodyear Commercial Tire Systems

Peterbilt

• wArrAntY enhAnced on reefer units carrier transicold has enhanced the warranty coverage for its vector trailer reefer units, now covering the engine, generator and compressor for 48 months or 8,000 hours of

the september 2014

service. that adds one year and 2,000 hours to the coverage for previous models.

edition of Private Motor

“vector systems deliver dual benefits of reduced maintenance and higher system

on hino joining with telogis

comparative semi-electric systems,” said Patrick mcdonald, product manager – trailer,

to launch a web-based

carrier transicold. “our latest-generation vector units build on this legacy, employing a

location and telematics

fully hermetic electric scroll compressor with 70% fewer moving parts than a traditional

program. this option is

reciprocating compressor.”

exclusive to the u.s. market

plugged into an Ac electrical supply when parked, providing full refrigeration without engine noise, emissions or fuel. over the road, the 8500 and 8600mt units are powered by an on-board generator driven by the unit’s diesel engine.

•

Carrier Transicold

December 2014

Carrier included information

reliability because they are less complex than conventional mechanical systems and

the vector’s refrigeration and heating operations are fully electric. All models can be

36 • PMC

correction

and is not available in canada. Private Motor Carrier regrets the error.

Ad

index

• Driver Performance Center includes virtual coach Kenworth has added the option of a Driver Performance Assistant on new Kenworth T680 and T880 models specified with PACCAR MX-13 engines and automated transmissions.

Drivers receive immediate feedback on how their driving impacts wear on brakes as well as fuel economy. For example, it tells a driver how smoothly they braked to a stop after exiting a highway, and acknowledges when they are using the engine brakes. Trip performance can be displayed at the push of a button during rest periods.

It also offers reminders such as a snowflake icon when air conditioning is not needed, or the fact that engine idling can consume up to half a US gallon of fuel per hour.

“Competition breeds improved performance. Kenworth’s Driver Performance Assistant is a built-in virtual driver’s coach and a tool to improve driver performance for fleets and owner operators alike,” said Kurt Swihart, Kenworth marketing director.

•

Kenworth

• Chicago Pneumatic cordless, pneumatic tools Chicago Pneumatic has unveiled a

PMTC is pleased to recognize those companies marked as valued members

Cummins

19

www.cummins.com Drive Products

23

www.driveproducts.com Espar 12 www.espar.com Fort Garry Industries

29

www.fgiltd.com Fortigo Freight Services

21

www.fortigofreight.com Great Dane

4

www.greatdanetrailers.com GTA Trailer Rentals

33

www.gtatrailer.com Hino 22 www.hinocanada.com Howes Lubricator

26

www.howeslube.com

new range of cordless tools

Huron Services Group

designed for vehicle service.

24

www.hurongroup.ca

The offerings include impact wrenches and drivers,

Kenworth 28

complete with added power and a

www.kenworth.com

runtime which doubles conventional

Mack Canada

products. The 20-Volt/4Ah CP20XP

www.macktrucks.com

and 12-Volt/1.5Ah CP12XP

Maxim

Lithium-ion batteries are said to help tools deliver the power and performance of an air tool

www.maximinc.com

while providing the mobility of a battery tool.

Peoplenet Canada

New air tools unveiled by the company include the CP7776 1” metal pneumatic impact

Peterbilt of Canada

heavy vehicles. Chicago Pneumatic has also previewed a new line of workshop equipment

www.peterbilt.com

including jack stands, bottle and floor jacks, air-hydraulic jacks and presses, and other

PMTC

•

Chicago Pneumatic

13, 15 14

www.peoplenet.com

wrench that offers high power and durability for general mechanics and tire changing on

accessories.

39

40 20, 30, 34

www.pmtc.ca Ridewell Suspensions

32

www.ridewellcorp.com

• Great Dane showcases food service trailer Great Dane displayed a specially configured Everest CL multi-temp refrigerated trailer during the 2014 International Food Distributors Association conference in Indiana. The 42-foot design included ThermoGuard interior lining, Grote’s Lightform LED interior lighting, Grote’s LED Entrance lighting to add up to 12 feet of exterior lighting, and a floor rated for 20,000-pound forklift loads.

The two curbside doors included a blade lock system with full-length seal, while a new Randall Floor-Deployed Platform was included for side deliveries. Moveable bulkheads allow an ambient section and up to three controlled compartments.

•

Great Dane

Ryder Canada

6

www.canada.ryder.com Shaw Tracking Solutions

31

www.shawtracking.ca Truck-Lite 25 www.truck-lite.com TMW Systems

10

www.tmwsystems.com Volvo 2 www.volvotruckscanada.com

December 2014

PMC • 37

STATS AND

facts

A Buying Mood All good things come to an end. Equipment is no exception. Replacements aside, fleets also need to acquire new iron to address growing demands. Transportation Media’s annual Transportation Buying Trends Survey offers some insight into the purchases that private and for-hire fleets expect to make in the year to come.

More detailed information will be found in the coming edition of the Private Fleet Benchmarking Report.

Have purchased a used truck before

TRADE-IN CYCLE FOR HEAVY-DUTY VEHICLES Years

Private

For-hire

10 years +

34.5%

13.2%

8-9 years

19%

10.5%

7 years

12.1%

15.8%

6 years

8.6%

15.8%

5 years

20.7%

21.1%

4 years

5.2%

17.1%

3 years

0%

Private fleets

66.7% For-hire fleets

77.3%

6.6%

SHARE OF MEDIUM-DUTY FLEET TO BE REPLACED IN 2015 SHARE OF HEAVY-DUTY FLEET TO BE REPLACED IN 2015 To Be Replaced

Private

To Be Replaced

Private

For-hire

0%

49.1%

77.6%

10%

32.1%

17.1%

For-hire

20%

11.3%

3.9%

0%

19%

11.8%

30%

1.9%

1.3%

10%

37.9%

46.1%

40%

0%

0%

20%

29.3%

26.3%

50%

3.8%

1.3%

30%

8.6%

10.5%

100%

1.9%

0%

40%

0%

2.6%

50%

1.7%

0%

80%

0%

1.3%

90%

1.7%

1.3%

100%

1.7%

0%

38 • PMC

December 2014

First Mack built North America’s highways. Then we designed a complete line of trucks to dominate them. Amp up fuel efficiency with high-performing Mack® MP ® engines and our mDRIVE™ automated manual transmission.

Then operate with confidence thanks to a dedicated coast-to-coast support network backed by GuardDog® Connect’s real-time monitoring and your choice of Mack’s Fleet Management Services partners—including Telogis.

Still think Mack just builds roads? Challenge accepted.

MackTrucks.com