Into the Weed(s) PG.13
Deep Thinking g PG. 46
The implications of legal marijuana
Testing an integrated powertrain owertrain
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December 2018
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Contents
December 2018 | VOLUME 32, NO.12 7 9 29 31
John G. Smith Rolf Lockwood Carole McAfee Wallace Mike McCarron
NEWS & NOTES
Dispatches 13 Into the Weed(s) Legalized marijuana leaves fleets with plenty of headaches
21 23 24 25 26 27 28 54
Truck Sales
10
34
36
54
Logbook Stat Pack Pulse Survey Heard on the Street Truck of the Month Trending Faces
In Gear 42 Light it Up Shining a light on vehicle lamps By Jim Park
Features 10 Black Mark Feds pledge a crackdown on Driver Inc. business model
By John G. Smith
34 Secure Future Trucking remains firmly on BlackBerry’s Radar
By John G. Smith
36 A Good Fit You’re miles from the gym, but a healthy lifestyle is in reach
50 Continental Divide What drives the differences in Europe’s trucks?
52 Product Watch
By Eric Berard
46 Deep Thinking By Jim Park
An integrated powertrain that’s right for the times
For more visit www.todaystrucking.com DECEMBER 2018
3
Letters The issue is training, not speed The Business Magazine of Canada’s Trucking Industry
PUBLISHER Lou Smyrlis lou@newcom.ca • 416/510-6881 VICE PRESIDENT, EDITORIAL Rolf Lockwood, MCILT rolf@newcom.ca • 416/614-5825 EDITORIAL DIRECTOR, TRUCKING AND SUPPLY CHAIN John G. Smith johng@newcom.ca • 416/614-5812 CONTRIBUTORS: Eric Berard, Steve Bouchard, Mike McCarron Jim Park, Nicolas Trepanier, Carole McAfee Wallace DESIGN / LAYOUT Tim Norton, Frank Scatozza production@todaystrucking.com • 416/614-5818 SALES AND MARKETING CONSULTANT Anthony Buttino anthonyb@newcom.ca • 514/292-2297 SALES AND MARKETING CONSULTANT Nickisha Rashid nickisha@newcom.ca • 416/614-5824 QUÉBEC ACCOUNTS MANAGER Denis Arsenault denis@newcom.ca • 514/947-7228 CIRCULATION MANAGER Pat Glionna 416/614-2200 • 416/614-8861 (fax) PRODUCTION MANAGER Kimberly Collins kim@newcom.ca • 416/510-6779
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Today’s Trucking is published monthly by NEWCOM MEDIA INC., 5353 Dundas Street West, Suite 400, Toronto, Ontario M9B 6H8. It is produced expressly for owners and/or operators of one or more straight trucks or tractor-trailers with gross weights of at least 19,500 pounds, and for truck/trailer dealers and heavy-duty parts distributors. Subscriptions are free to those who meet the criteria. For others: single-copy price: $5 plus applicable taxes; one-year subscription: $50 plus applicable taxes; one-year subscription in U.S: $90 US; one-year subscription foreign: $120 US. Copyright 2018. All rights reserved. Contents may not be reproduced by any means, in whole or in part, without prior written consent of the publisher. The advertiser agrees to protect the publisher against legal action based upon libelous or inaccurate statements, unauthorized use of photographs, or other material in connection with advertisements placed in Today’s Trucking. The publisher reserves the right to refuse advertising that in his opinion is misleading or in poor taste. Postmaster: Address changes to Today’s Trucking, 5353 Dundas Street West, Suite 400, Toronto, Ont., M9B 6H8. Postage paid Canadian Publications Mail Sales Agreement No.40063170. ISSN No. 0837-1512. Printed in Canada.
Member
Re: Letters (October 2018) In regards to Raymond Mercuri’s “Speed limiters are an issue, too.” You say the OPP needs to enforce 105 km/h. Garbage. It causes more accidents than not. It’s not the speed. It’s the lack of training. The skill level of drivers in this country has dropped drastically. The joke of a highway that they call the Trans-Canada is pathetically outdated. Stretches of Highway 17 and northwestern Ontario need to be four lanes to prevent the amount of crashes. The 401 could easily accommodate a speed of 110 or 120 km/h. Too many drivers accelerate to 105 km/h when another truck governed to 105 tries to pass them. Fourwheelers cut off trucks that are governed at 105 because they don’t want to be behind trucks. And the OPP can’t get out there fast enough to ticket a driver.
Email: johng@newcom.ca
SEND YOUR LETTERS TO: Newcom Media Inc., 5353 Dundas Street West, Suite 400, Toronto, Ontario M9B 6H8
— Eric Coulson Calgary, Alberta
Online
Drivers, carriers deserve better treatment Re: Driver shortage is an economic drag (November 2018)
There are at least two other factors critical to attracting new drivers and keeping existing ones. First, carriers and drivers need better treatment by shippers and receivers. Drivers are often met with very poor attitudes and are frequently verbally abused. As well, they are often forced to wait during loading and unloading with little to no communication as to why they have to wait so long. This is very frustrating, especially when the carrier has been given a pre-set appointment time and shows up on time. Second, carriers are fed up with fines associated with deliveries to places like Overwaitea, Loblaws, and Walmart. If the carrier is late, the fines usually start at $1,000. How is it fair that the carrier can be fined for showing up late, and yet carriers can wait hours with absolutely no repercussions toward the receivers? — Jason Burden Edmonton, Alta.
Online
Too many trucks on the road Re: Driver shortage is an economic drag (November 2018)
All of these companies crying about a driver shortage are only encouraging cheap labor and taking advantage of every scam the governments provide them. There are way too many trucks on the road today. This is the main reason why rates are so low. It’s called bad competition. Apart from letting these big companies hire more drivers than they need, they are making our roads unsafe and putting too many lives in jeopardy. You can put all of the systems you want in the truck to oversee what’s going on, but until you have the properly trained people behind the wheel of these rigs, the safety issue will not change. Government officials with their white-collar jobs should not be the ones making the rules. They should be made by a consortium of professional truck drivers with experience in the trade. — Gary Patterson Candiac, Que. DECEMBER 2018
5
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Editorial By John G. Smith
Inc. Stained Driver Inc. is part of a larger problem – fleets that manage risks on a driver’s back
C
anada’s trucking industry has been stained by yet another tax scheme. For months the Canadian Trucking Alliance (CTA) has been crying foul over a growing number of fleets that set up drivers as “independent” businesses in name only, avoiding source deductions for income tax and offering empty promises for those who turn wheels for a living. The cries appear to have been heard. Now the Canada Revenue Agency (CRA), joined by Employment and Social Development Canada (ESDC), have issued guidance on how they view such business structures. Crackdowns are likely soon to follow. Many of the incorporated drivers would have trouble passing the sniff test to determine they are really independent rather than employees, of course. Just how many truly have the ability to work for other companies, set their own hours, or turn down work? Because those are just a few of the standards that must – and let’s emphasize must – be met. Otherwise these drivers will be deemed to be Personal Service Businesses (PSBs). Those entities are not entitled to the income tax deductions enjoyed by corporations, can’t deduct many expenses, and face a combined federal and provincial tax rate of 33%. I doubt many of the drivers entered such structures knowingly. Instead, they were likely sold a bill of goods by recruiters, placement agencies, or selected bookkeepers. Why bother paying the same taxes as an office employee, they might have been told. Wouldn’t it be better to be the master of your own business – and write off expenses like cars, meals, and office space? CRA says you’re an employee if you have to accept all loads, follow specific routes, report daily and explain any delays or downtime regardless of the deadline, need approval before taking the truck for a repair, or leave the fleet to resolve complaints and deliver discipline. In contrast, the self-employed negotiate rates when contracts are signed and renewed, own or lease a truck, can pick and choose loads or routes, don’t have to report in during trips, or can hire a replacement driver and pay their wages. Personal Service Businesses provide equipment to secure loads, pay for helpers to load or unload, are responsible for penalties linked to late deliveries, pay liability insurance, and can keep all the profits earned from backhauls.
All of those are just a few examples. The incorporated drivers who don’t meet the various checks and balances are the ones who could pay the biggest price when the taxman comes asking for the dollars owed. Maybe they should begin asking questions about vacation pay or overtime they would have been owed, or other benefits that are afforded to employees. My hope is that the fleets who have exploited the loopholes will pay a steep price because they are the ones gaming the system, building entire business models on the backs of the drivers they supposedly value. This is hardly the first scheme set up to shield fleets from such business costs, of course. We have seen so-called “never-never plans” in which fleets set up owner-operators in name only, with structures that ensured those who shouldered the risks for equipment never actually had a chance to own their trucks and define their destinies. As for flexibility to work for others? Just try to turn down a load to see how real that business model is. These schemes are a symptom of a larger problem. As the trucking industry stares into the sinkhole that is a growing driver shortage, with fewer people looking to explore careers behind the wheel, many fleets continue to look for ways to manage their risks at the expense of those who do the work. Here’s your pay per mile. Delayed at the border? That’s too bad. Growing requirements for inspections? You better come in earlier to check over the equipment. Delayed in a customer’s yard? Nothing we can do. Yes, margins are tight. The bureaucratic burdens continue to increase. But those who reap the rewards in terms of profits should be the ones who shoulder the risks. TT
“Incorporated drivers who don’t meet the various checks and balances ... will pay the biggest price.”
John G. Smith is the editorial director of Today’s Trucking. You can reach him at 416-614-5812 or johng@newcom.ca. DECEMBER 2018
7
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Lockwood By Rolf Lockwood
Truck Parking Shortage is a Productivity Killer But there is a disconnect in the way carriers and drivers view the scale of the problem
W
hat are the trucking industry’s biggest issues these days? Most everyone will say the driver shortage leads the way. Everyone except drivers, of course. I’d say the top spot belongs to hours of service rules, followed closely by the electronic logging device (ELD) mandate – both of which are key reasons for the shortage of drivers willing to work long hours within that arbitrarily constructed straitjacket. So it’s no surprise that the top three issues for drivers are those two factors plus the lack of parking facilities. That’s according to the American Transportation Research Institute (ATRI), trucking’s not-for-profit research institute, an arm of the American Trucking Associations. It recently unveiled its annual Top Industry Issues report, which includes a list of the top 10 critical issues facing the North American trucking industry. The survey garnered 1,539 responses, with carriers representing 47.5% of the pool, drivers 41.3%, and other industry stakeholders making up the balance. Yes, it’s essentially an American survey, and the Canadian trucking scene is a different tin of tuna, but there are still lessons to be learned. For the second year in a row, the driver shortage is the topranked issue, when driver and carrier responses are aggregated. It’s been a top-three issue in 12 out of the 14 years that ATRI has conducted this survey. Note, however, that it ranks as the top issue for motor carriers, but unsurprisingly the ninth-biggest concern from the perspective of truck drivers. The overall number-two issue in this year’s survey is the hours of service regime, driven in large part by the industry’s call for increased flexibility in the rules. At number three is driver retention, up two spots from last year. The ELD mandate actually dropped in ranking from the number two issue in 2017 to number four this year. No real surprises there. Automated truck technology was 13th overall, in 10th spot according to drivers. Clearly they feel their jobs are threatened. But here’s the one that concerns me – the lack of available truck parking. Overall it’s number five, but it’s the number two issue for drivers, and only ninth according to carriers. That’s a big disconnect and implies that fleet managers either don’t
understand what drivers are up against or simply don’t care. I’d guess it’s the former. The truth is, it’s a huge burden to drivers and a massive productivity killer for both sides of the divide. Drivers waste an untold number of hours – meaning available on-duty time – trying to find a safe and suitable place to rest. It’s a huge frustration for them and a major source of stress. Rebecca Brewster, president and COO of ATRI, says she doesn’t see the parking problem being resolved any time soon, so it’s likely to be on the issues list for years. The ATRI report also identifies three preferred strategies for addressing each issue. Here’s what it says about parking, in rank order: n Identify strategic locations for new or expanded truck parking, like opening shuttered parking facilities, investing in new ones, and repurposing vacant urban and suburban land parcels. A majority of survey respondents (50.2%) say that’s their preferred strategy. o Educate state and local officials on the safety consequences of closing public parking facilities and/or failing to expand truck parking availability. ATRI says that 48.7% of drivers are forced to park in undesignated locations like highway shoulders or ramps three to seven times per week. p Research the role and value of real-time truck parking information availability and truck parking reservation systems. ATRI designed the Truck Parking Information Management System concept and it’s on track to be launched by the summer of 2019 in eight midwest states. The report is worth reading. Download it at https://tinyurl. com/y7pmwp39. TT
“Drivers waste an untold number of hours trying to find a safe and suitable place to rest.”
Rolf Lockwood is vice-president, editorial, at Newcom Media Inc. You can reach him at 416-614-5825 or rolf@todaystrucking.com. DECEMBER 2018
9
Black Mark Feds pledge crackdown on ‘Driver Inc.’ business model By John G. Smith Truck drivers may enjoy a feeling of independence behind the wheel, but Canada’s taxman will ultimately decide how independent the drivers really are. Late in October, the federal government announced that it plans to stop fleets from misclassifying employees as individual businesses – a process that has become known in the trucking industry as Driver Inc. A growing number of employers are thought to be using the business model to avoid source deductions and other labor obligations. Their incorporated drivers, meanwhile, can mistakenly believe they are eligible for lower tax rates and business deductions. “In trucking in particular, we heard both from employer and employee groups that misclassification was a real challenge and created a sense of instability and an unlevel playing field,” said Minister of Employment, Workforce Development and Labor Patty
10
TODAY’S TRUCKING
Hajdu, during an industry briefing on proposed changes to the Canada Labor Code. “Our intent,” she said, “is to create a level playing field.” “Employers hated it because it actually gave a competitive advantage to those other employers who were misclassifying people as ‘self-employed,’” she added. Meanwhile, employees who thought there would be certain benefits to the structure began to realize that they were being “ripped off” once they actually paid the costs of being self-employed and balanced those against the benefits of being an employee. Some of the differences were highlighted during a Canada Revenue Agency briefing to a fall Canadian Trucking Alliance board meeting. In one supplied example based on a gross income of $70,000 a year, a single Ontario driver took home $52,683 after deductions when classified as an employee. When classified as “self-employed”, the driver
took home a lesser $47,168 after claiming $5,000 in business expenses. If classified as a Personal Services Business (PSB), the driver who left $15,000 in the business before taxes had a take-home pay of $42,121 – or $52,171 once personal and corporate amounts were included. In other words, the driver who was classified as an employee actually took home the most money after taxes. Whether they are incorporated or not, drivers need to meet a long list of checks and balances before the government will view them as an independent business rather than an employee. A driver who is identified as an employee, for example, must accept all assigned loads and trips, has to explain delays or downtime regardless of their ability to meet a deadline, and needs approval before deciding where to take a truck for repairs. Employees also don’t pay for trucks and communication devices; don’t cover operating expenses like fuel, oil, maintenance, insurance and repairs; and can’t accept cargo from other shippers. “If you would normally be an employee if it were not for the existence of the corporation, the CRA will consider you a Personal Services Business
(PSB),” the Canada Revenue Agency said in its guidance. But a PSB is not entitled to tax deductions available to other corporations, like the small business deduction and general rate deduction. For this year that means a combined federal and provincial tax rate of 33%. Such businesses can’t deduct things like travel expenses, meals, or cell phone costs, either. “An employee may be entitled to benefits, be paid for vacation time, or be covered by a collective agreement,” CRA added. Hajdu’s announcement was made in the offices of Trillium Roadways, which openly admits to incorporating about half of its 96 drivers. Fleet president Jaspreet Samra said it’s the drivers themselves who request the payment structure, and he wants to transition all of them into employees. “The whole industry is like that,” he said of the growing number of drivers who want to be classified as independent businesses. The willingness to adopt the structure was needed for recruiting, Samra said. “It’s hard for us to maintain the drivers, keep the drivers.” “We do think that it is unfair to the entire sector if some people are playing by different
Into the Weed(s) PG. 13
CN Acquires TransX PG. 15
Economic Drag PG. 18
Trillium Roadways president Jaspreet Samra (left) says drivers have been the ones pushing to be incorporated. Minister of Employment, Workforce Development and Labor Patty Hajdu says the federal government wants improper classifications to end.
rules than others,” said Hajdu, noting that she first became aware of the situation about a year ago, during industry consultations in Woodstock, Ont. That particular meeting was part of a months-long Canadian Trucking Alliance (CTA) effort to have the government crack down on the business model. “Our industry is built around a lot of independent contractors who invest a lot of money to get into the industry
by leasing and purchasing their truck,” CTA president Stephen Laskowski noted during the latest meeting with Hajdu. “That’s a big investment and a big risk. And investment is risk. The misclassification of someone who doesn’t have that risk is really unfair to the entrepreneurial spirit of those individuals.” Tax collectors are not the only ones taking notice. “We do conduct some inspections in high-risk
industries and would consider targeting businesses that operate using a Driver Inc. model if they can be identified,” said Brenda Baxter, director general of the workplace directorate – labor program at Employment and Social Development Canada (ESDC), in an October letter to Laskowski. “Your concerns have been noted and will be taken into consideration as we continue our efforts to modernize labor standards.”
Shawn Baird, the president of Ontario-based Sharp Transportation Systems, struck out at those fleets taking advantage of the business model. “My biggest concern is how they’re selling a bill of goods to the driver – taking advantage of them by telling them, ‘You’re going to get all these tax advantages.’ At the end of the day the driver is further behind than if he was to be treated as an employee,” he told Today’s Trucking. Fleets that abuse the Driver Inc. model are not just avoiding taxes but also employer health taxes and WSIB payments, he added. “You have some companies out there with spouses and kids, with people getting free health care in this province while their employer doesn’t pay a penny towards it.” “We believe Driver Inc. is costing Canadian government hundreds of millions of dollars in lost tax revenue from drivers not filing as a PSB or simply not properly reporting their income,” Laskowski said in a prepared statement. “We are hopeful the combined actions of CRA and ESDC will finally restore labor standard compliance and tax fairness throughout the trucking industry.” TT
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11
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Dispatches
Into the Weed(s) Legalized recreational marijuana leaves fleets with plenty of headaches By John G. Smith North America’s trucking industry finds itself in the midst of a growing drug problem. The same recreational marijuana that is now legalized across Canada and select U.S. states is still banned by the federal government south of the border. This means truck drivers who record any trace of the drug – even if it’s legally acquired – will fail the DOT drug tests required to operate in the U.S. The rules also vary from one province to the next, Frontline Commercial Vehicle Solutions’ Alex Bugeya said during a presentation hosted by the Private Motor Truck Council of Canada (PMTC), referring to Ontario’s zero tolerance for commercial drivers as an example. Such provincial rules add to a foundation of new federal limits for criminal charges, testing, police authority, and criminal penalties. Chief among those is a testing threshold similar to the approach taken with the well-known 0.08% Blood Alcohol Content (BAC) limit used to identify drunk motorists. For THC, the active ingredient in marijuana, federal limits were set at between two and five nanograms per milliliter (ng/ ml) for a summary offence. Higher levels generate a criminal charge. So, too, is there a criminal impaired driving offence for those found with more than 2.5 ng/ml of THC in their blood and a BAC of more than .05%. The challenge is telling people what amount of the substance will trigger those readings. “I can’t tell you if that’s one gummy bear,” Bugeya said, referring to edible marijuana products. Law enforcement teams no longer require probable grounds like a driver’s
slurred speech or dilated pupils before following up with a blood test, either. He expects that to play a role in drug tests conducted after any collisions.
South of the Border Abigail Potter, the manager of safety and occupational health policy at the American Trucking Associations, elicited a few laughs when she displayed a Canadian flag with a marijuana leaf in the place of the maple leaf during a presentation at the group’s annual management conference
and exhibition. But it’s clear that the issues are not limited to Canada alone. Thirteen states and the District of Columbia have decriminalized marijuana. Nine states and the District of Columbia have fully legalized it. Then there are the jurisdictions that have medical marijuana statutes. Eleven of those states include case law that requires to accommodate the drug’s use when possible. “This really has opened up the accessibility of marijuana and also really has started to break down the stigma of marijuana use,” said Potter. In September, a Pew Research poll found that 62% of Americans support legalization, and the rates are highest among young genera-
tions. Seventy-four percent of surveyed millennials showed their support, compared to 63% of Generation X. It isn’t the only research drawing attention. Just when Canada legalized recreational marijuana, the Insurance Institute of Highway Safety (IIHS) reported a 5.2% jump in crashes within the legalizing states of Colorado, Nevada, Oregon and Washington, when compared to the neighboring states of Idaho, Montana, Utah and Wyoming. This was after accounting for differences in driver populations, insured vehicle fleets, urban versus rural exposure, unemployment and the weather. “We don’t want that person behind the wheel. We want to prevent that person from getting behind the wheel,” Potter said of the American Trucking Associations. “It’s not ‘under the influence’. That is not our standard.”
“We really saw a rise on our preemployment failures in part because it became normalized,” said Greg Fulton, president of the Colorado Motor Carriers Association. “They [drivers] don’t realize how long it stays in the system.” One LTL company, even after telling people not to apply for jobs if they had used the drug within a certain time period, was still seeing 60% of applicants fail drug tests.
Running drugs Meanwhile, Potter predicted a growing interest in transporting loads of the drug from one legalizing state to the next. Those who take such freight across state or international borders face a real DECEMBER 2018
13
Dispatches risk. One way to secure a lifetime ban from trucking is to be convicted of a felony for moving or transporting drugs. “That applies to the driver and the motor carrier as well,” she said. State officials might be fine with such loads, but federal agents might not be quite as willing to overlook a truckload of marijuana, which in some cases can be
valued at millions of dollars. Fulton admits his state’s business community was caught by surprise and never thought marijuana would actually be legalized. “Little did we know at that time how much pain our young people were in,” he said of the 500,000 medical marijuana cards that were issued. One doctor made
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TODAY’S TRUCKING
$500,000 in six months by writing such prescriptions. In Colorado, the related businesses are also driving up the land prices in areas fleets use for warehousing. “The dispensaries and their grow houses, they tend to be zoned almost to the same places we are,” Fulton said. In one odd twist, such businesses have to conduct all such transactions in cash, because they can’t deposit the proceeds of their sales in federally regulated banks. The cash needs to be stored, too. Of course, Canada now faces a legal dynamic of its own. “Whenever we had questions related to drug or alcohol impairment or cannabis, they were almost exclusively within the context of U.S. DOT regulations,” recalled Jonathan Blackham, director of policy and public affairs at the Canadian Trucking Alliance. How time change. “Now I look back on those days as the easy times. The golden days.” “It’s been a huge gamechanger for us – and is really one of the largest issues we’re facing right now,” he said. One of the biggest debates surrounds the issue of how to identify truly impaired drivers. Roadside testing devices are still “very, very limited” in terms of their ability to measure impairment, Blackham said, referring to the limits of 5 nanograms of THC per milliliter of blood. Unofficially, the alliance has heard the thresholds for testing devices are set closer to 15 nanograms. “Legal or not, they can’t use the stuff,” he added, referring to cross-border drivers. But it’s a different story for domestic truckers who are only limited by thresholds for impairment. “That’s a scary, scary thought.” “We’re finding companies with policies all over the place – and I’m talking from the last time you used to impairment,” Blackham said. Air Canada won’t allow employees to use marijuana at all. Toronto police are requiring officers to stay off duty for 28 days after consuming the drug. And while some Canadian carriers find the concept offensive, others are weighing options from marijuana producers who would like their freight moved. TT
Dispatches
News Briefs
Alberta to mandate training for new drivers Alberta is introducing mandatory training for entry-level Class 1 and 2 truck drivers, beginning March 1. “The announcement of mandatory entry-level training [MELT] will ensure the industry has the fundamental tools to operate on public roadways, by establishing a benchmark of required education for commercial drivers and carriers,” said Alberta Motor Transport Association president Chris Nash. Temporary Safety Fitness certificates will also become a thing of the past and will no longer be issued as of Jan. 1. The changes emerged in the wake of a fatal truck-bus collision in Saskatchewan that killed members of the Humboldt Broncos hockey team. A Calgary truck driver and company have been charged in that crash.
in terms of specialty truckload, and we could add to that probably within the next six to 12 months.”
Westcan Bulk earns safety gold Westcan Bulk Transport recently took home a gold medal for being Canada’s
Safest Employer in the transportation sector. The award was handed out by Toronto-based Canadian Occupational Safety, recognizing the carrier that has 800 trucks hauling across Western Canada, Ontario, and the western Arctic. Among recognized initiatives, Westcan drivers are required to stop for
CN to acquire TransX Group CN has reached a deal to acquire Winnipeg-based TransX Group of Companies, which has been in business for 55 years. “CN’s acquisition solidifies our future as an industry-leading intermodal services provider in North America,” said TransX chief operating officer Mike Jones. “We look forward to working with the CN team, which will allow us to continue building long-term customer confidence.” TransX will continue to be based in Winnipeg and will operate independently.
TFI acquires Gorski Bulk TFI International has acquired Gorski Bulk Transport and will likely make three or four more purchases before the end of the year in Ontario and Quebec. News of the deal came during a quarterly earnings call with Alain Bedard, chairman president and CEO of TFI International. “The Gorski acquisition was fantastic,” he said. “Gorski has a small operation in the U.S., very small, but it’s our first foothold in the U.S. territory DECEMBER 2018
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Dispatches an eight-minute break every three hours. The fleet also has a new fatigue management program that involves monitoring for sleep apnea.
Moving day for Day and Ross Day & Ross has opened its second facility
in the nation’s capital. The new 5,000-sq.-ft. terminal located at 1270 Humber Place will handle freight originating from Toronto, Montreal, and Woodstock, Ont., and destined for the rural area around Ottawa. “The opening of a second terminal in Ottawa is a notable step forward in our ongoing commitment to bolster our
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network with secondary capacity where needed,” said president Doug Tingley. “We will continue to aggressively invest in our capabilities that allow us to deliver a good customer experience in a safe environment.”
Ryder expanding for the last mile Toronto accounts for one of three North American facilities that Ryder is expanding to improve its last-mile delivery service. The company recently announced the expansion of its Ryder Last Mile business, which focuses on home deliveries and “white glove” installations of big and bulky goods. “We’re getting closer to the consumer,” said Patrick Coughlin, vice-president and general manager of Ryder Last Mile. “By expanding our existing locations and adding new facilities, we continue to position our customers to meet – and even exceed – the ever-growing demands of e-fulfillment and the increasing expectations of their customers.”
Fastfrate Group forms TL service Fastfrate Group has formed a new dedicated truckload linehaul service, integrating BRS Transportation and Consolidated Fastfrate operations. Known as Fastfrate Linehaul, the new entity will provide contract-based truckload services in the U.S. and Canada. “We have just come off a banner year and the merger of BRS into our various operations has given us added and immediate capacity where it was needed most,” said president and CEO Manny Calandrino. “Fastfrate Linehaul is not an ad-hoc truckload service. It is a more strategic highway offering that will foster deeper, long-term relationships in new areas.”
Mullen Group profits in Q3 Mullen Group’s trucking and logistics segment achieved record revenues and profits in the third quarter of 2018.
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TODAY’S TRUCKING
Dispatches The segment now makes up about 70% of Mullen Group’s revenue, a stark contrast to the company’s traditional business model in which oilfield services accounted for that share. “The natural gas sector here in Canada is a total mess, including the service industry,” chairman, president and CEO Murray Mullen said in a conference call with analysts. While commodity prices are strong, Mullen said Canada’s policies prohibit it from getting oil and gas to new markets.
providing sales, parts, and service of temperature-controlled equipment, auxiliary power units, gensets, and telematics. Former Chill Tech owner Jay Somers has joined the Eskimo team as business and technical development manager. Other mobile refrigeration technicians have also made the move to the Eskimo team.
Drivewyze brings wisdom to Ontario Drivewyze is bringing its weigh station bypass platform to Ontario, offering bypasses at 32 of the province’s scales by the end of this year. It currently offers bypass services at 31 sites in Alberta.
Regina makes a specialty investment
Regina’s Brandt Group of Companies has plunged into the specialty transportation equipment sector, purchasing Camex Equipment Sales and Rentals. Camex, an Edmonton-based company, has been in the custom truck rigging and on-highway specialized trailer business for more than 25 years. Its products serve the oil and gas, mining, pipeline, infrastructure, municipal and environmental sectors. Brandt will acquire three buildings as part of the purchase, including a 71,000 sq.-ft. sales and service facility and two others, totaling 150,000 sq.-ft. on a 26-acre piece of property near the Edmonton International Airport.
Hiway/Eskimo acquires Chill Tech The recently merged Hiway/Eskimo Refrigeration has already expanded, acquiring Chill Tech Reefer Services and adding to its leadership team. Chill Tech, an independent transport refrigeration service, had been operating in the Calgary area for 16 years. The acquisition adds to service capabilities as a dealer for Carrier Transicold in Alberta, B.C. and Saskatchewan, DECEMBER 2018
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Dispatches
Rising Rates, Lingering Challenges Driver shortage remains an (economic) drag By John G. Smith When Canadian Trucking Alliance president Stephen Laskowski took his turn at the mic during the annual Surface Transportation Summit, he was quick to refer to trucks parked against fences along nearby Dixie Road. They’re not idled because of a lack of business opportunities, he stressed, referring to the surroundings of Mississauga, Ont. It’s because of a lack of truck drivers. And the situation is expected to intensify as the trucking industry comes to terms with “massive” retirement numbers over the next five to six years. The challenge is not limited to Canada, either. The average driver in the U.S. is somewhere between 52 and 57 years old, said David Ross, Stifel Financial’s research managing director – global transportation and logistics. “That’s older than it used to be, and next year it’s going to be older than it is today.”
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Historically, the number of drivers has been evenly divided between those under 35, those 35-50, and those over 50. In the last decade the demographics have shifted. Today just 20% of drivers are under 35, with the two older groups evenly splitting the remaining labor pool. Solutions in Canada will require a new approach to immigration policies that are still focused on so-called professional workers, or even rethinking how longhaul freight is moved, Laskowski suggested. In the meantime, the driver shortage continues to be an economic drag.
Trucking growth Despite this challenge, a strong general economy continues to generate some new opportunities and business growth for those in trucking. “Your sector, it is very cyclical. It does follow the business cycle,” Royal Bank of
Canada assistant chief economist Paul Ferley told the crowd representing both sides of the supply chain. He projects trucking revenues to grow 2.5% this year and 3.2% next year, compared to forecasted GDP gains of a respective 2.1% and 2%. Stifel’s Ross expects truckload rates to rise 5-10% in 2019, excluding fuel. Even though he sees LTL rates moderating against the backdrop of a cooling manufacturing sector, they’re still projected to rise just under 5% in 2019. Small fleets appear to be the most likely to realize the related gains, with their revenue up 1.2% year over year in the U.S. truckload sector, Ross said. In contrast, large fleets with revenues above US $30 million have seen revenue drop 0.5%. “Large fleets have been shrinking for some time, partially because they got too big and most of them didn’t make any money,” he said, noting how many turned to asset-light options like brokering trucks and warehousing. He believes the current surge in Class 8 truck orders is less about chasing new business and has more to do with realizing technological improvements. “The economics of the new [trucks] today are really compelling.” For its part, Ontario-based J.D. Smith is investing in replacement equipment, but not expanding the fleet. The focus, said CEO Scott Smith, is ensuring the fleet charges the right rates and continues to be seen as an employer of choice in a tight labor market. While 2018 was a “good year”, the operation certainly felt the personnel-based constraints on growth, Smith said. Gone are the days when the business could simply reach out to find warehouse and fleet workers with ease. “It really has been a significant impact on discipline for the quality of the labor.” But there is certainly business to be had for those who can combine the trucks and drivers. Ross pointed to weekly rail carloads excluding grain and coal, up 6% year over year in September, as proof. That measure correlates well with trucking activity in the U.S., he explained. The industrial sector is healthy and growing as well and is expected to grow for
Dispatches another six months. “We think there’s going to be modest truckload growth in terms of demand next year, really limited by driver supply,” he said. Yields expected to hit 12% this year will likely moderate to 5-7% next year, although Ross admitted some shippers think such projections are conservative. Meanwhile, LTL tonnage was up 3.8% in the second quarter of 2018, and that’s good news for FedEx, which is gaining market share in that segment south of the border, he added. While LTL and TL volumes in the U.S. slowed in August, they’re still up year over year. Flatbed and reefer activity are down over the same period, but dry van activity is up 2.5%, he said. Spot market rates peaked in June but are still near 2014 levels. “Some of the pressure in the spot market moved freight into the contract market.” Shippers looking for other strategies to control costs will want to consider modal changes, longer contracts, guar-
anteed volumes, wider delivery windows, and simply offering coffee and bathroom facilities to help retain company drivers, Ross said. Collaborating with carriers and other shippers can help, too. “We’re looking for solutions on how to contain our costs,” said Belmont Meats president and CEO Paul Roach. He stressed that his company recognizes the challenges of limited labor and tighter capacity, but is looking for ways to fill trucks more effectively. Laskowski emphasized the need to monitor the technologies that are changing the supply chain. Investments in waterless agriculture are transforming old warehouses into grow houses, for example. This could lead to new customers with short-haul freight to move. “We need, as an industry, to stay on top of the technology of our customers.” Said the Canadian Trucking Alliance chief: “If you’re not changing, you’re not growing.”
The general economy Driving much of the current growth, of course, are strong economic conditions. “Right now, the Canadian economy is viewed at capacity,” said Ferley, offering rising oil prices, strong U.S. growth, and monetary policies as reasons. Current monetary policies are looking to keep growth around a moderate 2% next year. “There will be some growth, but our view is it will not be as rapid as what we saw in 2017,” he added. In that year, Canada’s 4% growth rate led the G7, in part because of recovering oil prices. Limits to broader economic growth are not limited to the driver shortage alone. While the emerging USMCA trade deal has eased concerns about threats to scrap the North American Free Trade Agreement, the administration of U.S. President Donald Trump could still introduce other trade challenges, Ferley said. TT
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Dispatches
‘Canada has gone fantastic,’ says new Volvo chief As Volvo Trucks expands its market share around the world, some of the biggest gains in North America appear to have been realized in Canada. “It’s exciting times,” said Peter Voorhoeve, recently named president of Volvo Trucks North America. Across the continent, the company boosted its year-to-date market share by 10.5% as of this September. And the numbers were already up 8.3% in 2017. “[This is] in a market that you all know is very hot,” he added, during a briefing at the American Trucking Associations’ annual management conference. Volvo’s year-to-date market share in Canada alone had risen 13.9% as of September, compared to the 10.2% growth seen during the same period last year. “We have come back stronger than we hoped for – especially in Canada,” said Magnus Koeck, vice-president of
“It’s exciting times,” said Peter Voorhoeve, recently named president of Volvo Trucks North America.
marketing and brand management, noting how sales had lowered predictably while Volvo transitioned to new models including the VNL and VNR. “Canada has gone fantastic.” The gains have hardly been limited to North America. Brazil’s year-to-date market share is up 20.7%, with South Africa up 17.1%, the European Union up 16.2%, Russia up 24.9%, and Australia up 15.3%.
All the gains are against the backdrop of an estimated 300,000 Class 8 truck market in North America this year, and that is expected to continue growing to 310,000 units in 2019. January to September accounted for the nine strongest monthly orders ever. Truck orders in the third quarter were an astounding 215% higher than they were in the same period last year. Current order boards suggest the sales would actually exceed 500,000 trucks in the year to come. “I don’t think that’s going to happen, quite frankly, but it shows the market is strong,” Voorhoeve said. “Even when you take that ‘panic factor’ out, it’s a very big number.” That panic factor refers to those who are simply ordering trucks as a way to insulate themselves from extended delivery timelines. “The underlying economic performance of the U.S. economy is very strong,” Voorhoeve said, predicting the strong market will continue throughout 2019. “It will continue to be hot.” — John G. Smith
Daimler CEO expects 440,000 Class 6-8 market Daimler Trucks North America – the market share leader in North America’s truck market – expects Canada, the U.S. and Mexico to take deliveries on more than 440,000 Class 6-8 vehicles this year. “There was 330,000 deliveries through September, which is usually a very good year, but we still have two months to go,” said chief executive officer Roger Nielsen, during a roundtable discussion at the American Trucking Associations’ annual management conference. “We’re going to have a strong year end.” Still, the booming economy also means dealing with the “daily challenge” of supply shortages that hold the company back from delivering more units. “Little hiccups required [us] to go to extreme measures to get the parts we needed. But we saw some stabilization over the last
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two or three months and we are running at stable rates,” he said. It’s not the only potential challenge that can emerge in a robust market, however. In the face of strong demand, dealers have also been known to secure more spots in a production line than needed. If orders are cancelled or the economy weakens, this would create excess inventory. “You will not see that at Daimler. We are working with dealers and customers to make sure they have the ability to access build slots. If an order looks speculative, we will cancel it. We don’t want people to handle inventory they can’t put into productive use. I don’t think it’s good for the industry to take speculative orders,” said Nielsen. “I hope the industry did a good job.”
Roger Nielsen, CEO of Daimler Trucks North America
Regarding tariffs and the new USMCA trade deal, Nielsen said Daimler is well positioned to comply. If the deal is approved, the agreement will in seven years require truck makers to incorporate 70% of regional value in their products. Daimler engines, axles and transmissions are made in Michigan, so complying should not be a problem. The situation is a little more difficult with inbound tariffs, though, as aluminium and steel prices went up and stayed high. But “all the OEMs are experiencing the same costs,” he said. — Steve Bouchard
Dispatches
Class 8 orders reach 504,000 this year Temperatures may be dropping, but North America’s Class 8 truck orders are as hot as ever. Both FTR and ACT Research have reported that October orders surpassed 43,000 units for the eighth month in a row – 2% above a strong September showing and 19% better than a year ago. North American Class 8 orders for the past 12 months have now totaled 504,000 units as fleets look to secure slots on production floors. In terms of retail sales, Freightliner led the way in Class 8 truck numbers this September, recording a 30.9% year-to-date market share, WardsAuto reports. International led Class 7 sales with 35.5% for the year – but 57.1% for the month. Hino led Class 6 with 34.3% for the year to date and 45.4% of sales for the month. Ford essentially accounted for half of the Class 5 sales for the year, and 41.9% for the month.
Canada – September 2018 SALES
U.S. – September 2018
MARKET SHARES
SALES
CLASS 8
Sept.
YTD
Sept. %
YTD %
CLASS 8
Freightliner Kenworth Volvo Truck Peterbilt International Western Star Mack Other Total CLASS 7
958 549 300 371 472 317 195 0 3,162 Sept.
7,870 4,011 3,529 3,111 3,094 2,346 1,502 0 25,463 YTD
30.3 17.4 9.5 11.7 14.9 10.0 6.2 0.0 100.0 Sept. %
30.9 15.8 13.9 12.2 12.2 9.2 5.9 0.0 100.0 YTD %
International Peterbilt Freightliner Hino Kenworth Ford Total CLASS 6
581 204 80 84 65 3 1,017 Sept.
1,911 1,154 969 830 448 76 5,388 YTD
57.1 20.1 7.9 8.3 6.4 0.3 100.0 Sept. %
Hino Freightliner International Peterbilt Ford Kenworth Isuzu GM Total CLASS 5
44 27 14 4 1 6 1 0 97 Sept.
384 371 220 74 37 18 17 0 1,121 YTD
226 142 93 75 3 0 0 0 0 0 539
2,981 1,162 910 876 26 21 9 0 2 2 5,989
Ford Hino Dodge/Ram Isuzu Mitsubishi Fuso Freightliner International GM Kenworth Peterbilt Total
Source: WardsAuto
www.total-canada.ca
MARKET SHARES
Sept.
YTD
Sept. %
YTD %
Freightliner Peterbilt Kenworth International Volvo Truck Mack Western Star Other Total CLASS 7
8,415 3,638 3,693 3,643 2,313 1,560 386 0 23,648 Sept.
64,574 26,605 26,153 24,306 19,398 12,940 4,214 9 178,199 YTD
35.6 15.4 15.6 15.4 9.8 6.6 1.6 0.0 100.0 Sept. %
36.2 14.9 14.7 13.6 10.9 7.3 2.4 0.0 100.0 YTD %
35.5 21.4 18.0 15.4 8.3 1.4 100.0 YTD %
Freightliner International Peterbilt Kenworth Hino Ford Total CLASS 6
2,034 1,769 581 470 176 194 5,224 Sept.
22,218 13,159 5,735 3,468 1,495 1,423 47,498 YTD
38.9 33.9 11.1 9.0 3.4 3.7 100.0 Sept. %
46.8 27.7 12.1 7.3 3.1 3.0 100.0 YTD %
45.4 27.8 14.4 4.1 1.0 6.2 1.0 0.0 100.0 Sept. %
34.3 33.1 19.6 6.6 3.3 1.6 1.5 0.0 100.0 YTD %
Freightliner Ford International Hino Kenworth Isuzu Peterbilt GM Total CLASS 5
1,713 2,106 1,348 582 259 97 3 2 6,110 Sept.
17,605 15,423 12,438 5,782 2,026 905 86 43 54,308 YTD
28.0 34.5 22.1 9.5 4.2 1.6 0.0 0.0 100.0 Sept. %
32.4 28.4 22.9 10.6 3.7 1.7 0.2 0.0 100.0 YTD %
41.9 26.3 17.3 13.9 0.6 0.0 0.0 0.0 0.0 0.0 100.0
49.8 19.4 15.2 14.6 0.4 0.4 0.2 0.0 0.0 0.0 100.0
Ford Dodge/Ram Isuzu Freightliner Hino GM Mitsubishi Fuso Kenworth International Peterbilt Total
3,988 1,229 426 632 171 32 19 5 2 0 6,504
38,241 11,628 4,257 3,580 1,769 231 136 31 17 8 59,898
61.3 18.9 6.5 9.7 2.6 0.5 0.3 0.1 0.0 0.0 100.0
63.8 19.4 7.1 6.0 3.0 0.4 0.2 0.1 0.0 0.0 100.0
DECEMBER 2018
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Dispatches
Trading Spaces Equipment manufacturers grapple with the ‘new normal’ in trade By John G. Smith Rona Ambrose didn’t have many comforting words for members of the Canadian Transportation Equipment Association (CTEA). Offering a keynote address during the association’s annual meeting, the former leader of federal Conservatives and an advisor in recent NAFTA negotiations promised more trade uncertainty to come. As for the new U.S.-Mexico-Canada Agreement (USMCA)? She quoted U.S. sources who give that no more than a “50/50” chance of being passed. Democrats could look to block any agreement that U.S. President Donald Trump introduced, Ambrose said, referring to the opinions of others that she’s talked to. Meanwhile, there’s the threat that Trump could then invoke a sixmonth timeline to terminate the existing NAFTA trade framework. To compound matters, Democrats can be anti-NAFTA, she reminded the manufacturers. “Where are our friends?” Perhaps some of the better news came with her assertion that Canada wasn’t hit as hard as Mexico during recent trade negotiations. “At the end of the day, the Americans had all the leverage. They do,” Ambrose said. “It was pretty clear what President Trump thought a win would look like.” Hanging in the midst of it all is the ongoing weight of tariffs on steel and aluminum. “Every week something else is hitting your industry,” Ambrose told the crowd. “Overall trade uncertainty is not going anywhere anytime soon.” It would hardly be welcome news for members of the audience, which included equipment manufacturers who source materials outside Canada or sell their equipment in the lucrative U.S. market. The CTEA continues to review USMCA’s updated rules of origin that govern the minimum amounts of North
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TODAY’S TRUCKING
Rona Ambrose, who served as an advisor during recent NAFTA talks, stresses the new USMCA trade deal is not yet a done deal.
American content in equipment like heavy trucks and heavy vehicles, noted Don Moore, director of government and industry relations. So far, for example, it hasn’t identified specific references to trailers. But the underlying details will determine exactly how much foreign material can be included if products are to be sold in the U.S. Manufacturers need to perform their due diligence to determine whether specific materials can be added to finished products, said Candace Sider, Livingston International’s vice-president of government and regulatory affairs – North America. “We’re going to see some very significant differences in rules of origin,” she said during a related panel discussion. “Really take a look and do the research that’s necessary to ensure that you comply … the penalties, the risks are too high.” Of course, deciding to source materials from somewhere other than the U.S. would be no small matter, either. Each
shift could introduce new challenges like different delivery times. “Global supply chains are not as nimble as we often wish they would be,” she said. Sider also warned about a pending government crackdown on those who might try to change tariff classifications in name alone, simply in a bid to bypass the related costs. “They’ve already started a monitoring review of all the imports coming into the country that are subject to a surtax,” she said. Regulators who have been “fairly lenient” during the first round of tariffs will likely be issuing penalties in rounds to come. So, too, did she stress the need to review contracts or any other documents that trigger sales. “Some of the devil is in the details,” Sider said. Wendy Wagner, a partner in the Ottawa office of Gowling WLG, agreed – especially since purchase orders might not address issues like a sudden shift in duties. “When you’re trading with the U.S. you’re often not looking at that aspect of a contract,” she said. “A lot of companies are starting to look at their contracts and look at what [they] could do in terms of a price-escalation clause.” Wagner admitted it was unusual for the U.S. to cite national security concerns when imposing the tariffs on Canadian-made steel and aluminum. But even though Canada is raising the issue with the World Trade Organization, the only thing that body can do is approve countermeasures which have already been imposed, she said. And while other countries facing the tariffs now find themselves with excess steel and aluminum, the Canadian government is introducing related measures to protect the domestic market against any dumping. “It’s really a complex environment,” Wagner said. “It’s really important to understand what all those tariffs are, and what the new tariffs are.” Still, for all the challenges, Wagner believes the USMCA is similar to NAFTA in many respects. “It’s better to have an agreement than none,” she said. The one thing that does remain likely is continuing flux in the world of trade. “It’s business as usual,” Wagner said, “until it’s not.” TT
Dispatches
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Dispatches
StatPack
20 million LB. OF FOOD Trucks for Change Network, an organization that connects charities to those who can haul their freight, has just transported its 20 millionth pound of donated food – and that’s just a sample of what has been accomplished in the last seven years. The group has also coordinated about $600,000 in industry support and 1,600 volunteer hours, president Pete Dalmazzi said during an annual partnership celebration.
3-DAY ROADSIDE SUSPENSIONS
Anyone caught using a cellphone behind the wheel in Manitoba now has to surrender their licence and face a shortterm suspension. First-time offenders could face a three-day roadside suspension, with further offenses in the next decade resulting in seven-day suspensions. A $50 fee will have to be paid to get the suspended licence reinstated.
160,000 -SQ.FT. DISTRIBUTION CENTER Paccar Parts has opened a 160,000-sq.ft. parts distribution center in Toronto to support customers across Eastern Canada. Features include voice-activated picking, an automated banding conveyor, optimized pick paths, and custom inventory zones. The site complements another facility in Montreal, which opened in 2014.
LOAD VOLUMES DIP
Third quarter load volumes were 11% lower year over year, TransCore Link Logistics reports. There were 2.90 trucks per load at the beginning of September, but that improved to 2.68:1 by the end of the month. The volumes were the second highest the company has recorded for a third quarter, only beat by numbers recorded last year.
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TODAY’S TRUCKING
2 million SERVICE CALLS Goodyear’s Fleet HQ Emergency Roadside Service program has completed 2 million service calls in 10 years. “Helping a truck return to service requires the rapid and precise mobilization of resources and people, and is not a simple task,” said Johnny McIntosh, general manager – commercial services and solutions.
Dispatches
Pu se Reader Survey Tell us your thoughts on ... Driver Appreciation The trucking industry grinds to a halt without drivers at the wheel. But are they really appreciated for the work they do? In this month’s Pulse Survey, we asked for your thoughts.
How does the general public view the role of truckers? (5 = highly regarded)
n 23% o 40% p 29% q 7% r 1%
In general, how do fleets treat their drivers? (5 = very well)
n 3% o 17% p 48% q 30% r 2%
Other than base compensation and bonuses, what are the most-effective tools a fleet can use to show drivers they’re appreciated? 47% 43% 41% 35% 32% 28% 26% 22% 20% 20% 19% 17% 16% 15% 5%
In general, how do shippers treat the truckers who deliver their freight? (5 = very well)
Driver-friendly truck spec’s (i.e. premium seats) Late-model/new equipment Open-door policies Awards for periods of service Awards for top performers Training opportunities Social gatherings (i.e. office parties, tournaments) Gift cards for spot inspections Family events Reward trucks (premium vehicles for top performers) Driver councils (to collect feedback) Driver lounges Internal communications (i.e. newsletters) Free food/beverages (i.e. coffee) Fitness centers
n o p q r
14% 37% 35% 11% 3%
What are the top things shippers and receivers should offer drivers to show they’re appreciated? 63% 62% 57% 35% 30% 29% 27% 21%
Restroom access Simple thank-yous Parking areas for off-duty time/delays Driver lounges Pre-loaded trailers Extended hours of operation Ongoing communication Free food and beverages (i.e. coffee)
RESTROOM
“ Treat me like a person with feelings and respect –
NOT A ROBOT.”
Today’s Trucking Pulse surveys are conducted once per month, covering a variety of industry issues. To share your voice in future surveys, email johng@newcom.ca.
Next month: Entertainment DECEMBER 2018
25
Dispatches
Heard Street on the
Trianos promoted by Transcourt Tank Leasing Transcourt Tank Leasing has named Michael Trianos its director of fleet services and procurement for the entire North American market. Previously, he was director of business development for Ontario and Manitoba. The company says he was promoted due to his knowledge of tank trailer spec’s, maintenance, and repair procedures, which have made him an important source of information for Transcourt and its customers.
Smyrlis, Smith promoted by Newcom Media Lou Smyrlis has been named publisher of Today’s Trucking magazine as part of his duties as the managing director of Newcom Media’s Trucking and Supply Chain Groups. In a related announcement, John G. Smith will oversee the content for both groups in the role of editorial director – trucking and supply chain.
Michael Trianos Charles Fetz
Rourke will lead Schneider National
Mark Rourke
Chris Lofgren will retire as president and chief executive officer at Schneider National following the company’s annual meeting of shareholders in April 2019. Mark Rourke, executive vice-president and chief operating officer, has been named his successor and will become the 84-year-old company’s fourth-ever president and CEO. Rourke, 54, began his career with Schneider in 1987.
Great Dane mourns loss of former VP Charles Fetz
president of the Commercial Vehicle Safety Alliance (CVSA), an association dedicated to uniform commercial vehicle enforcement across North America. Richard Roberts, the B.C. Ministry of Transportation and Infrastructure’ s acting deputy regional manager – South Coast – is president of Region 5, which covers Canada. Sean Mustatia, commercial vehicle enforcement specialist with the Saskatchewan Ministry of Highways and Infrastructure, is the region’s vice-president.
Charles Fetz, Great Dane’s former vice-president of design and development, has passed away. “Although retired, we lost a gentle giant in our industry whose impact will be felt for years to come,” said Rick Mullininx, Great Dane’s executive vice-president of engineering. During his years with the trailer manufacturer, he was the inventor or co-inventor on 16 U.S. and foreign patents.
FLO Components appoints sales manager
Manac’s Maillet to focus on Atlantic
FLO Components has appointed Winnipeg’s Mike Munro
Manac has appointed Marcel Maillet as its new regional sales
Roberts is Canadian lead for CVSA Lt. Scott Carnegie of the Mississippi Highway Patrol is now serving as the 2018/19
as its new territory sales manager for southern Manitoba and northwestern Ontario. He has 16 years of experience in various managerial and technical sales roles promoting products and services to manufacturing, agriculture, commercial, transportation, utility, forestry, mining, and government accounts in Manitoba.
manager for the Atlantic provinces. In his new role, Maillet will be responsible for overseeing Manac’s existing customer base and expanding Manac’s coverage into the Maritimes. Mike Munro
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TODAY’S TRUCKING
Dispatches
Truck of the Month
Summertime Dream You never forget your first new truck. For Pierre Aubin of Ste-Catharine, Que., that was a 1974 Kenworth K100 cabover with a single bunk. Aubin now owns L’Express du Midi, Delsen Transport, and Transport Audet – three fleets with 114 working Kenworths. But this one remains his favorite. “That ‘74 was nothing like this one, but my love for Kenworth cabovers goes back many years,” he says. He bought this truck in 2013 in Land ‘O Lakes, Fla. And it was still hauling show horses around the U.S. southeast at the time. The Kenworth was in good shape, too, but had to be repainted. The two brothers who owned it had painted it with a roller, Aubin says. He drove the truck home from Florida and took it to Garage François Thouin in SteAnne-de Bellevue, just west of Montreal, to be refurbished. Aubin says the garage had two mechanics there who had previously worked at Kenworth of Montreal and knew his truck like the back of their hands. Four months later, this is what rolled out of the garage. The truck had just 370,000 km on it when he bought the vehicle five years ago. It now has about 460,000 km on the clock, so it’s earning its keep. This is Aubin’s personal truck, and he still drives on 10 or 15 loads into the U.S. during the summer months. TT
THE SPEC’S TRUCK: 1986 Kenworth K100 Aerodyne ENGINE: 400-hp Caterpillar 3406 TRANSMISSION: 13-speed Eaton-Fuller REAR AXLE: 40,000 lb.
Do you have an unusual, antique, or long-service truck to be profiled? Send your Truck of the Month ideas or photos to johng@newcom.ca, or mail Today’s Trucking Magazine, 5353 Dundas Street West, Suite 400, Toronto, Ont., M9B 6H8 DECEMBER 2018
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Dispatches
Trendingg on
.com
Block by Block Florida fleet illustrates how blockchains can work in trucking dexFreight’s shipment of frozen food between Preferred Freezer Services and Manny’s Enterprises was typical in many ways. The goods completed their journey along with many other trucks on Florida highways this Oct. 15. But the load also offered one of the first examples of how a blockchain can be used to manage related transactions – offering a digital platform to negotiate rates and schedule the pickup and delivery. “This is a huge milestone towards an imminent transformation of the logistics industry through the adoption of blockchain technology,” said Rajat Rajbhandari, CEO and co-founder of dexFreight. “Our platform aims for a truly decentralized model, open to all the stakeholders, and allowing for a new world of services that will bring much needed optimization and liquidity to this industry.” The concept of blockchains emerged amid a “mashup” of maturing technologies, explained Ken Craig, vice-president of special projects at McLeod Software, during a presentation at the
@todaystrucking Your go-to social media source
American Trucking Associations’ management conference and exhibition. The internet improved, peer-to-peer networks and distributed databases strengthened, computing speeds increased, storage costs dropped, and cryptography advanced. Blockchains build on it all, offering a tool for participants to share documents – a general ledger of sorts. While blocks of information can be added, none of the interconnected pieces can be changed or deleted. In trucking that infrastructure could support secure transactions and communication, smart transportation contracts, and even autonomous vehicles and maintenance, said Brad Taylor, vice-president of data engineering, AI and machine learning at Omnitracs. Walmart, for example, has established a blockchain to establish a chain of custody for perishable products as they move through the supply chain. “This is a good thing for us,” Craig said. “This will help us define the standards that we’re looking for.”
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HERE ARE A FEW EXAMPLES OF TWEETS POSTED BY TODAY’S TRUCKING THIS MONTH
KEEP IN TOUCH facebook.com/ TodaysTrucking
@todaystrucking Federal Minister of Employment, Workforce Development and Labor Patty #Hajdu says the federal government is committed to cleaning up the way #truckdrivers are classified, bringing a potential end to #DriverInc. https:// www.todaystrucking.com/feds-committo-cleaning-up-driver-inc/ …
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TODAY’S TRUCKING
@todaystrucking On average, studied #truckdrivers gave up about 1 hr a day of productivity per day just because they’re afraid they wouldn’t find #parking, says @ATRIPREZ
@todaystrucking . @WastecoCanada is making a splash and celebrating its 40th anniversary at #wasteandrecyclingexpo with this @MackTrucks tagged by Toronto artist Skam. #gowasteco
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TodaysTrucking1
Legal
Human Rights Before Hiring By Carole McAfee Wallace
T
erminated employees have been known to raise human rights complaints, claiming that a termination should have been prohibited under applicable human rights legislation, or that an employer failed to accommodate a disability to the point of undue hardship. A recent decision of the Ontario Human Rights Tribunal, in Haseeb v. Imperial Oil Ltd., is a good reminder that an employment-related human rights complaint can arise even before an employee starts working. In this case, the applicant was an international student completing his professional engineering degree at McGill University. He applied for a position as an engineer with Imperial Oil, had a student visa, and on graduation would be eligible for a post-graduate work permit for a three-year term. Imperial Oil also required engineers to have either permanent residency or Canadian citizenship to be eligible for the job. That requirement was set out in the job posting, the online application form, and in the questions asked during the interview process. The applicant said he met this requirement and was offered the job. He was then asked to provide proof of his eligibility. When he couldn’t, the offer was withdrawn. The applicant then launched a human rights application seeking
damages for the breach of his human rights. Under the Ontario Human Rights Code, discrimination based on citizenship is not discriminatory if Canadian citizenship is a requirement imposed or authorized by law. But that was not the basis for Imperial Oil’s requirement.
and as a result, breached the human rights legislation. The tribunal found that Imperial Oil had discriminated against the applicant based on citizenship. The tribunal also found that Imperial Oil couldn’t rely on a defence that being able to work in Canada permanently
The company had implemented a policy that all entry-level engineers had to be able to work in Canada permanently to address the significant investment it made in new employees, and to further its goal of developing lifelong corporate employees. The Ontario Human Rights Tribunal found that Imperial Oil’s job posting, application form and questions during the interview process all included questions about the applicant’s ability to work permanently in Canada –
was a bonafide occupational requirement. This is because the requirement was not linked to the performance of essential job tasks, and also because Imperial Oil had waived the requirement for business reasons in other cases. As an aside, the human rights tribunal found that the applicant’s dishonesty when saying he could work in Canada permanently wasn’t relevant to deciding whether the Human Rights Code had been breached.
Damages have yet to be assessed, so we don’t know how much this is going to cost Imperial Oil. With respect to citizenship, place of origin or ethnic origin, unless there is a requirement authorized by law, an employer can only ask whether someone is legally entitled to work in Canada. That’s all, at least up until a conditional job offer is made. Additional information or documents like an authorization issued by Immigration Canada can be obtained after that, as long as these details are a bonafide requirement for a position. Even asking for something as seemingly simple as the form of address (Mr. Mrs. Miss, or Ms.) is a minefield because it discloses marital status, sex and sexual orientation. Employers are well advised to review their recruiting activities – from job postings, to application forms, and interviewing procedures – to ensure they don’t discriminate based on grounds prohibited under human rights legislation. An employer who sets a requirement that may be seen as discriminatory bears the burden of proving it is a bonafide occupational requirement. TT Carole McAfee Wallace is counsel at Fernandes Hearn LLP, and can be reached at 416-203-9551. This column is intended for information purposes only and does not constitute legal advice.
DECEMBER 2018
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Canada’s #1 Source for Heavy Trucks and Trailers
Open Mike
It’s Time for Hourly Pay By Mike McCarron
T
he trucking industry has trouble finding drivers, and it’s no secret that pay is part of the problem. The fact that truck drivers bring home the same dough as they did 40 years ago, when the cost of living was half of what it is today, certainly has something to do with it. Carriers have increased driver pay lately, but all those empty seats indicate that reform is still needed. I’ve spoken to many carriers that are switching to an hourly pay model for highway drivers. An hourly wage gives drivers a predictable income, and considering that it’s the way nearly every other industry pays its workers, the model can help carriers compete. Michael Belzer, associate professor of economics at Wayne State University, sums it up this way: “Driver pay continues to be a problem. Just pay people for all their time and the problem is solved.”
Driver point of view The most compelling argument for an hourly wage comes from drivers who are literally tired of getting paid only when the wheels are turning. With per-mile pay, they’re incentivized to keep working and cover more distance in a day regardless of how they feel. I’ve talked to drivers who are frustrated that they never know how much money they’re going to make from
week to week, which places financial stress on families who they rarely see. Finally, drivers don’t like being penalized for delays and other situations beyond their control. They wonder why they should essentially work for free when at the wheel but stuck in traffic, while the dock workers waiting for them are on the clock and doing nothing.
Technology and efficiency One of the concerns carriers express about the per-hour model is how to keep drivers motivated and productive when they can earn more for taking longer to complete a task. Many small carriers still rely on drivers to weed out and report inefficiencies in the system, particularly at consignees’ docks. A carrier who has been paying highway drivers by the hour for 18 years tells me this thinking is hogwash. Technology allows dispatchers to digitally peer into a truck cab at any time, from anywhere on the planet. If a driver takes seven hours to complete a five-hour run, the carrier will know instantly. Taking the onus off the drivers and using technology to manage their performance could be the tipping point to support a change to per-hour pay.
Safety and snow The 14-hour clock and winter weather represent the perfect storm for unsafe highways.
One of the benefits of hourly pay is that drivers feel like they don’t have to race around in a panic to make up for lost hours or meet deadlines. To improve safety, carriers that pay by the mile can switch to hourly pay during inclement winter weather. That kind of creative thinking is a small but important step in the right direction.
Administrative burden For mid-sized and large carriers, switching to the per-hour model can bring unexpected administrative costs. In fact, several carriers I spoke with have not made the switch because of this concern. No doubt, switching hundreds of drivers from per-mile to hourly pay would be a massive headache. But the short-term pain “might” be worth it to solve a chronic driver shortage. I say “might” because the
jury is still out on hourly pay. Carriers that have made the switch and love the system could not offer me tangible proof that the model helps retain or attract drivers. Smart carriers who know a lot more about hauling freight than me are skeptical it will change anything. Something has to give, though. “Carriers and shippers will consume an infinite amount of free labor as long as they can get away with it,” Wayne State’s Belzer says. In today’s job market, they can’t get away with it much longer. TT Mike McCarron is the president of Left Lane Associates, a firm that specializes in growth strategies, both organic and through mergers and acquisitions. A 33-year industry veteran, Mike founded MSM Transportation, which he sold in 2012. He can be reached at mike@leftlaneassociates.ca, 1-844-311-7335, or @AceMcC on Twitter.
DECEMBER 2018
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Changing Face of Trucking
Shelley Uvanile-Hesch, a Sharp Transportation driver and CEO of WKH :RPHQ·V 7UXFNLQJ )HGHUDWLRQ of Canada, stresses there are SOHQW\ RI FDUHHU RSSRUWXQLWLHV IRU ZRPHQ LQ WUXFNLQJ
Breaking the Glass Windshield How can trucking break the 3% barrier when it comes to attracting women drivers? TORONTO, Ont. – Shelley UvanileHesch is a rarity. Of the 181,330 tractor-trailer drivers working in Canada’s trucking industry in 2016, barely 3% were women, according to Newcom Media’s Changing Face of Trucking research, based on Canada’s National Household Survey. In contrast, women made up about half (47%) of the nation’s entire workforce overall.
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Uvanile-Hesch credits early exposure to the industry for steering her personal career path. “My dad drove, so I kind of had the bug early on,” says the Sharp Transportation driver who serves double duty as the CEO of the Women’s Trucking Federation of Canada. Her first driving job was at the wheel of a school bus, but she graduated to a
six-wheeler and then a tractor-trailer. There are plenty of opportunities for work, and women can make exactly as much as their male counterparts, she adds. Fleets post the same rates for everyone. The question, then, is why female drivers seem to make less per year than their male peers. Male tractor-trailer drivers in Canada’s trucking industry reported a median income of $45,681 in 2016, compared to the female drivers who made $36,392, according to the Newcom research. Uvanile-Hesch suggests it might be because women drivers are more inclined to lean toward regional or daily work, especially if they are caregivers for children or aging parents. Women in Trucking Association CEO Ellen Voie adds that women tend to be particularly safety-conscious, leading them to avoid some of the higher-paying jobs perceived to carry higher risks. Her group’s 2017 best practices survey certainly reinforces that safety concerns exist.
Changing Face of Trucking On a scale of 1-10, surveyed women drivers rated their safety at a mere 4.4. Key “intimidation factors” associated with their roles included topics familiar to drivers of any gender, such as weather and equipment. But concerns about personal safety were also on the list. When asked what issue fleets should focus on to attract more women drivers, safety tied with family and home time in the top spot. Women in Trucking isn’t the only group researching the safety concerns, either. The U.S. Federal Motor Carrier Safety Administration is now in the midst of a three-year study on crimes against female drivers, exploring issues such as harassment by trainers. Industry recruiters may be missing the message. “Employers cited everything but safety as a priority for women drivers,” the Women in Trucking survey found. Voie says this opens an opportunity for recruiters who highlight a fleet’s safety-related technologies like collision avoidance systems. “I don’t think we’re doing a good enough job in the industry, showing people it’s more than [exhaust] stacks,” she says. Uvanile-Hesch stresses that women are paying particular attention when researching potential jobs, too. “Women really do a lot more research when they’re ready to start with a carrier. They talk to the company, they talk to drivers, they do their research, they look at the CVOR [Commercial Vehicle Operator’s Registration] scores,” she says. “The company culture is very important.” Voie says the entry-level drivers among them also come to the careers with a good understanding of the work ahead. Eighty-three percent of surveyed women were encouraged to join the career path by a male in the industry, such as a husband, boyfriend or father, Voie says, referring to the Women in Trucking research. “They’re well versed on what is expected.” TT www.womenstruckingfederationofcanada.net/ www.womenintrucking.org
Number of tractor-trailer drivers in Canada’s trucking industry
IN YEAR 2016
YEAR
Men 175,450 161,245 183,540 153,720 129,715 94,250
2016 2011 2006 2001 1996 1991
Men
Women 5,880 5,785 7,215 5,240 2,940 1,670
175,450 Women
5,880
Source: Newcom Media and National Household Survey
Annual pay for tractor-trailer drivers in the trucking industry Median Male Wage * $45,681 $40,961 $36,730 $34,114 $30,565 $29,271
YEAR
2016 2011 2006 2001 1996 1991
Median Female Wage * $36,392 $34,085 $27,501 $24,017 $20,015 $19,221
IN YEAR 2016
Men
$45,681 Women
$36,392
Source: Newcom Media and National Household Survey
INCOME CHANGES FROM 1991-2016 Male tractor-trailer drivers
Female tractor-trailer drivers
+ 56.1%
+ 89.3%
Median income by province *
* Median vs. Average
PROVINCE
Saskatchewan Alberta Newfoundland/Lab British Columbia Nova Scotia New Brunswick Manitoba Quebec Ontario
Men $56,961 $56,516 $53,392 $49,791 $49,214 $48,620 $47,256 $44,011 $39,304
Women $40,005 $42,208 $31,420 $40,198 $39,169 $34,883 $37,040 $35,743 $32,891
Median incomes shouldn’t be confused with average incomes. The median is the number in a middle of a list, so it is less likely to be skewed by numbers that are unusually high or low.
Source: Newcom Media and National Household Survey
DECEMBER 2018
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Trucking remains firmly on BlackBerry’s radar | By John G. Smith
B
lackBerry chief marketing officer Mark Wilson says the Internet of Things (IoT) is rapidly transforming the transportation industry. And the driving force behind such change, he believes, is nothing less than a driver shortage. In a room full of tech watchers at the company’s fifth annual security summit, Wilson offered the example of asset tracking systems like BlackBerry Radar, and how such technologies can help to offset traditional frustrations associated with jobs behind the wheel. Contract Transport Services installed 1,000 Radar units in three months and began tracking everything from open doors to humidity, he explained. Through the tracking capabilities it was also able to save drivers about 20 to 30 minutes a day that would otherwise have been spent searching for trailers. “The more time they’re driving, the more money they’re making,” Wilson told the decidedly non-trucking crowd. And quoting one of the fleet’s executives: “Whoever has the drivers is the one that’s going to win this game.”
Securing the systems As transportation-related technologies like tracking systems, electronic logging devices (ELDs) and autonomous vehicles emerge, BlackBerry – yes, that Blackberry – is betting its future on the need for robust security using a platform known as Spark, and by further developing the QNX software now loaded into 120 million vehicles. “There’s a big backlog of connected products that are isolated from other connected products,” said chief technology officer Charles Eagan, referring to opportunities that exist. Spending on the Internet of Things in transportation and logistics hit US $10 billion worldwide in 2015. The investment is expected to grow fourfold by 2020. But security concerns remain the top technical barrier to realizing the possibil-
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ities that come through what BlackBerry refers to as the Enterprise of Things (EoT), Wilson said. “The Enterprise of Things enables digital transformation using hyper-connected things that are ultra-secure.” “How do you basically secure all the connectivity of these physical and digital things?” he asked. Indeed, many of the devices that have emerged in trucking and other industries are not as secure as they need to be. “In general, as different organizations bring different devices on, they have different levels of security,” Eagan said,
“These are also very price-sensitive products,” he agreed. But security-related work is most effective when it’s completed at the front end. BlackBerry’s Radar devices, for example, secure data through a combination of encryption processes, user authentication, and best practices. “It’s extremely important to have that secured,” Eagan said, referring to the value of freight that could be stolen if thieves had the time to work behind hacked or spoofed monitoring systems. “We’re doing something different and we’re doing something impactful,” CEO John Chen said, referring to the goal of developing secure platforms.
Blackberry’s future While most Canadians are familiar with the BlackBerry name, far fewer would be
SECURE
Future
when asked about potential security weaknesses in something like electronic logging devices. “There’s a lot of things you can do to protect yourself.” The developers of such systems, for example, can prepare for the future by leaving the “head room” to allow for future encryption algorithms and ensure devices can be updated. This is particularly important if a device is expected to be used for an extended period of time. “This is a changing industry. People might plan [to use something for] 10 years, but there might be a disruptive device in two years,” he said. Future security measures will even need to account for quantum computing power that can easily break through a traditional code. Admittedly, the added security comes at a cost.
familiar with the type of work the business is conducting these days. Executives admit they still field questions from people who are surprised they’re still around. The Canadian tech darling, once a maker of smart phones for world leaders, hasn’t manufactured a phone since 2016. But under Chen, BlackBerry has manufactured a corporate turnaround. In the latest fiscal quarter it earned $43 million, more than a double what it recorded a year ago, and is topping analyst expectations. Perhaps not surprisingly, Chen’s contract has been extended to November 2023. Chen says Radar has been adding new customers along with repeat orders. That product alone is expected to generate $100 million in revenue over the next three years. And it’s already secured users
Secure Future ing with Virginia Tech to train future mechanical engineers in the company’s QNX software. It’s equipping concept cars competing in the Auto Drive Challenge, too.
Protecting yourself
BlackBerry CEO John Chen addresses the company’s fifth annual security summit.
including Titanium Transportation and Caravan Transport Group. The Radar-M units scatter infrared light inside a trailer to measure the percentage of available space, which can identify opportunities to broker freight for an LTL operation. A stripped-down version known as Radar-L is used for flatbeds, chassis, containers, and heavy machinery, and tracks equipment locations, motion, and opening or closing doors. One advantage is that the related antenna-tuning technology allows the device to be mounted under a trailer chassis or between frame rails, rather than requiring a clear view of the sky. Most of today’s users have applied Radar to containers, Chen said.
Consumer to commercial BlackBerry is also looking to add a level of security to consumer devices that find their way into business settings. Consider emerging speaker-based systems like Amazon’s Alexa as an example. “Voice is the most natural input,” Chen said, referring to the attraction to the devices. But an extra layer of privacy and security will be needed if a tool like that is used in a boardroom or to perform functions like requesting shipping costs. An upgrade version of the voice-
activated system might monitor all other connections in a fleet’s office, sounding the alarm if another connection mysteriously appears.
Autonomous vehicles Meanwhile, the company is actively involved in steps to secure autonomous vehicles, using everything from its QNX system to Jarvis automotive security software. But it’s merely part of the solution. Virginia Tech associate professor Alfred Wicks stresses the importance of funding competitions to further develop such technologies. For example, Tony Tether, the former director of the Defense Advanced Research Projects Agency (DARPA), accelerated work on autonomous vehicles by offering a $1 million prize to the winning team. Other competitions such as the GM Auto Drive challenge in Canada and the U.S. continue taking steps to developing autonomous technology that doesn’t require any driver interaction. “For us to make impactful technologies, we also have to provide a workforce to keep it going,” he said in a speech to the summit, noting how such research will establish personnel to keep the industry moving forward. For its part, BlackBerry is partner-
But what can existing fleets do to protect themselves? Seventy percent of Enterprise of Things devices have serious security issues, said Rory Macleod, global head of professional services for BlackBerry. As consumers and businesses buy new devices and link them through the internet, many leave default passwords in place; valuable information that’s uploaded when a phone is plugged into a vehicle is often not deleted. The threats are not just about hacking into a vehicle to apply the brakes or change the speed. The ability to tap into information can be valuable in its own right. And no longer are threats limited to kids in a basement, Macleod said. Organized crime and even governments are using it to access intellectual property. Even corporate IT teams can create weaknesses, perhaps bypassing a firewall to more easily load some software. In one case, a public sector administrator’s computer included a file called passwords. “If they had sticky notes with the passwords all over their desk it would have been more secure,” he said. In another case, hackers monitored social media to identify a senior executive’s hobby, created a fake website about it, found someone to friend the person, and then shared a pdf about an inventory list for the hobby. The pdf carried the hackers’ malware. “You don’t think of it. You click,” Macleod said. Access is not even limited to digitalonly approaches. BlackBerry teams conducting a test for one retailer bought some golf shirts in the retailer’s colors, added a logo at a local print shop, walked in and said they were IT staff and needed access to servers. They were led inside and offered coffee. “No challenging was occurring,” Macleod said. “Even with the advent of machine learning and artificial intelligence. And that’s critical to where cybersecurity is going. People are going to continue being that weakest link.” TT DECEMBER 2018
35
A comprehensive pre-trip offers its own chance to get some fresh air and complete a little stretching. Vehicle health is maintained in the process.
A Good FIT You may be miles away from a gym, but healthy habits are still within reach By Eric Berard
S
utco Transportation has invested in plenty of equipment over the years, but some of the latest additions in the name of recruiting and retention have nothing to do with the trucks. They come in the form of a gym and meditation room, tucked inside the fleet’s facility in Kelowna, B.C. “For energy levels, ability to do their job, [fighting] fatigue and all that – it’s so important,” says vice-president Doug Sutherland. “Multiple trades kept saying to us, ‘Where do I apply? I’m going to go get my Class 1 to work for you guys,’” he adds, referring to those who were involved in the construction work. One employee of the moving company that helped the fleet relocate said that very thing, and is now in the midst of training for a licence. It’s just one example of the way health and wellness programs are emerging as a recruiting and retention tool. And no matter where a focus on healthy lifestyles begins, it seems to boost productivity and attitudes alike.
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TODAY’S TRUCKING
A Good Fit “Exercise has the same beneficial effect as almost anything a doctor or psychiatrist could prescribe you for depression,” says Alfy Meyer, a 66-year-old Brampton, Ont. driver who spent 39 years driving across North America. These days he only hauls the occasional load for film crews, but the focus on a healthy lifestyle remains.
With that, drivers won’t feel as much pressure to cut into their sleeping hours, he says. A light meal before bedtime will help as well. Says Meyer: “Nothing that sits heavy in your stomach.”
Nutrition
Not all trucking companies allow drivers to cook inside their trucks, because of possible lingering smells and cleanliness issues. But those who have the option can easily prepare According to Andrea Morley, nutritionist and health coach healthy options. at Healthy Trucker in London, Ont., establishing a consistent The choice of food for the sleeper’s fridge – even the packagpre-bedtime routine is the first step to a good night’s sleep. It ing – has a role to play. Rectangular containers will optimize could involve brushing your teeth and then reading a book for the limited space. And Morley recommends stocking fruits and 10 minutes or watching 15 minutes of a TV show. vegetables when possible. “If you do the same things, it signals your body each night to “Things like canned tomatoes are awesome because they’re wind down for sleep,” she says. really versatile. They can be thrown in so many different types Meyer advises to do everything possible to go to bed at the of dishes,” she says. Apples and bananas also are healthy same time you would at home. Route planning will help, espechoices that can be kept at room temperature. cially when it comes to finding the all-important parking space. If you are crossing the border, however, remember that “Most truck stops now are filling up long before 7 o’clock,” he lots of foods can’t be moved from one country to the other. says. Meyer finds that showering in the morning also helps to The enforcement of such rules can be inconsistent, so Morley avoid evening lineups and make the most of available rest time. suggests that those who always use the same port of entry Once settling in, use every available curtain to block light should ask for a list of allowed foods. and create a dark sleeping environment, Morley says. This Essential onboard appliances to prepare the foods include a could include aftermarket curtains to block the windshield portable rice cooker that can be used to cook almost anything, and windows rather than simply drawing a sleeper compartand a hot plate, Morley says. ment’s curtain, creating the “Say you want to cook a largest-possible space in the projambalaya with sausage and cess. Sleep masks can block any chicken and rice and tomatoes. remaining light, too. You can easily do that in a rice Then there’s the matter of cooker and that will take about enhancing the mattress that 20 to 30 minutes,” Morley says. comes with the truck. Even the compact rice cookers “Chances are, you’re not being make it possible to prepare a paired up with the exact matcouple of servings at a time. tress that you need,” Morley says, Meyer pleads for a quality recommending a foam topper or microwave oven on top of that. an upgraded mattress. Breakfast should be the most Since silence can be tough to consistent meal of a driver’s come by around other trucks, day. It could be whole grain using a fan or other sources cereal with berries, bananas or of white noise can help create honey in it; hard-boiled eggs a comfortable environment. Sutco Transportation’s latest investments include brought from home; or microThere are actually white noise a private gym and meditation room. waved eggs. smartphone apps, Morley adds. “I always recommend fruit Earplugs are another option if as a snack for when you need energy because it will give you the noise continues to be bothersome. that boost of carbohydrates that your body and brain need to It can also be a good idea to bring your own sheets, blankets function. We want drivers to be focused, safe, alert and awake and pillows from home. Just the familiar smell of your own bedon the road, so fruit is a great option,” Morley says. They can be ding can be soothing. “Nobody sleeps well in a hotel, and when used to prepare quick, tasty smoothies, for example. Granola you’re sleeping in a truck five nights a week, it’s basically like bars are another healthy option for a snack. sleeping in a hotel,” she says. A driver can still eat meat, though. “Go ahead and eat meat. If finding a restful night continues to be tough, keeping a But don’t become a pig. Four to six ounces, whether it’s pork, sleep journal can help to identify problematic patterns. beef or chicken,” Meyer advises, adding that a kitchen scale can Six to eight hours of sleep is a minimum, says Meyer. It’s be used at home when preparing portions for the road. one of the reasons he supports the stricter enforcement of Nuts of all kinds are also recommended, especially if they’re hours of service through electronic logging devices (ELDs).
Sleep
DECEMBER 2018
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A Good Fit not salted, but processed foods such as cold cuts should be avoided. The numerous additives in them are particularly hard on the liver and kidneys. Sugary cereals, bagels and muffins should also be in the “no-no” category, Morley believes. “They don’t offer a lot of nutritional value. They will spike your blood sugar in a bad way and then your blood sugar will fall very quickly and you’ll become very tired and hungry after an hour or two, versus something like fruit that will sustain you for a little bit longer.” The last meal of the day should be the lightest. Both Meyer and Morley suggest opening a small can of salmon, tuna or sardines, or tossing a salad with vegetables that are available. Soup can also be a comforting alternative for dinner, too. But any form of caffeine – including energy drinks – is to be avoided, just like alcohol, Morley says. Water, milk or green tea are healthier options before going to sleep.
Physical activity Exercise also remains one of the best options to digest food and ensure proper sleep patterns. And it doesn’t have to be a high-impact workout. “Drivers are sedentary. They don’t get a lot of activity in their day-to-day routine,” Morley says. But even walking around truck stops, or simple workouts that rely on bodyweight alone, can make a difference. “That’s a good way for drivers to improve their strength and challenge their muscles while they’re on the road.” Jogging, which puts stress on the knees and hips, may not be the greatest idea in a trade that involves bouncing around all day in the cab. Meyer faces joint issues himself and enjoys a swim whenever he can find access to a pool. “If you’re not a swimmer, go in the shallow end and just walk
against the water for 30-35 minutes,” he says, referring to the low-impact exercise. Stretching is crucial to warm up muscles before any physical activity, and it’s also a great way to improve blood flow and increase alertness, which translates into improved safety behind the wheel. One easy stretch involves sitting on the bunk and stretching one leg out across the mattress. Then reach down along the leg until feeling a comfortable amount of stretching in the back or thigh. An added advantage to stretching is that it will relieve tension in the torso and arms after long periods at the wheel, too. Meyer certainly warns against the bad posture that can lead to neck pain. Keeping your right hand on a vibrating stick shift can also lead to carpal tunnel syndrome, he warns. A quality seat with armrests, and lumbar and lateral support, will help address both issues. Investments in healthy living will certainly help to ensure there are plenty of healthy miles to come. TT
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HR Proper candidate screening can reduce future risks, says Charlie Charalambous of ISB Canada.
Qualified Control Screen your drivers, reduce the risk Charlie Charalambous of ISB Canada flashed two seemingly identical truck driver abstracts onto a screen and challenged his audience to spot the difference. It was impossible to distinguish the documents except for a single spelling mistake – found on the counterfeit abstract he created using nothing more than Microsoft Word. It demonstrates how easily vital recruiting documents can be faked by would-be applicants, he told fleet managers attending a Private Motor Truck Council of Canada (PMTC) seminar. “You don’t need to be a designer to recreate something.” And he cited sources with the Guarantee and Aviva Insurance who confirm that fraudulent documents are in the system. Properly qualifying drivers – and confirming that true documents are used – can help mitigate the risks relating to cargo theft, fraud and safety, said the
One of these abstracts is a counterfeit. Can you spot the difference?
company’s director of client services. Considering the source of any documents will help. While most recruiters ask job candidates to provide an abstract, Charalambous recommends ordering another copy to ensure everyone is being truthful. “Verify their records are from an accredited training facility,” he added. “Make sure those other [professional development] courses are from an accredited training facility as well.”
So, too, should fleets hold staff accountable for getting the documents that are required, he said, stressing the need to offer personnel the tools for the job or the authority to collect information directly from a given source. Performance reviews and audits can help to ensure that process is followed. Hiring the wrong driver can have disastrous consequences, of course. “Hiring an unqualified driver is a safety risk to your fleet,” he said, citing the example of those prone to distracted driving. Three out of four Canadians now admit to distracted driving, according to the Insurance Bureau of Canada. And through his time in the insurance industry, Charalambous knows that distracted drivers are 23 times more likely than their peers to be involved in a crash. The costs of their collisions certainly extend beyond bent metal. “Fleets, they’re driving billboards,” he told the fleet managers. “Do you really want your brand and company name associated with that?” Knowing more about the job candidates – both drivers and others – can help to mitigate the risk of thefts, too. As of Aug. 15, there were 318 cargo thefts in Canada, and 167 of those were from the Peel Region alone, Charalambous said. “A high percentage of these are inside jobs.” Not all criminal background checks are created equally, however. Records from the Canadian Police Information Center can be 18 months out of date, he said, stressing the value of premium criminal background checks available through services such as the PMTC Driver Qualification System. He also makes the case for screening personalities when recruiting. “There are tests out there that can get to the core of the driver, what their DNA is like … better you know upfront than find out after the fact.” Requalification procedures can be valuable when it comes to existing drivers as well. “Requalify them against your original criteria,” Charalambous said. “It’s easy to make excuses for drivers once you know them. I’m not saying get rid of them, but requalify them and provide them with the training they need.” TT DECEMBER 2018
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Douglas Sutherland, VP and GM of Sutco, Leanne Quail, operations manager of Paul Quail Transport, and Liberty Linehaul president Brian Taylor.
referring to the example of daily fees for holding trailers. “We’ve always been able to see issues. We get a lot of feedback from our drivers.”
o Train and retain your drivers
Small and Mighty Big ideas are not limited to the biggest carriers Large carriers don’t have a monopoly on the secrets of success. Just ask the managers of smaller operations like Sutco Transportation Specialists, Paul Quail Transport, and Liberty Linehaul, who participated in a panel discussion at the recent Surface Transportation Summit. “Just because we’re a smaller carrier doesn’t mean we can’t come up with a solution that works for us,” observed Leanne Quail, the operations manager at Paul Quail Transport, an Ontario-based hauler specializing in automotive freight. Whether it’s a need to increase rates, find and retain drivers, or introduce new technologies, the underlying challenges and lessons will seem familiar to fleets of every size.
n Be transparent when
discussing rates and charges
The laws of supply and demand have clearly led to higher rates for many operations this year. Sutco, for example, added just under 10% to the rates for its LTL and truckload shipments. How times change. “The customers were beating us to death,” Liberty Linehaul’s Brian Taylor said, referring to earlier rate pressures. No matter what
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TODAY’S TRUCKING
business case was made, bosses always seemed to be telling their negotiators to demand 10% cuts. “Right now there’s too much freight for the amount of equipment,” he said, adding that today’s trucking industry could easily absorb a 5% drop in the market. But even in today’s favorable pricing environment, open conversations are needed to ensure customers don’t look elsewhere for someone to haul their freight. “They have to understand why it’s going up,” said Douglas Sutherland, vice-president and general manager of Sutco, which is involved in logging, heavy hauls, and general freight. So, too, are shippers looking for innovative ways to keep costs under control. Taylor has had conversations with several Fortune 500 companies that are openly looking for ways to be better customers. “At the end of the day they’re surprised with what we come up with,” he said, referring to increased efficiencies that have been realized through things like night deliveries, which eased bottlenecks during daytime hours. Shippers will also accept accessorial charges based on issues they can control, Taylor added,
Such feedback is particularly important because drivers are the secret to every fleet’s success, even if they’ve become harder to come by. “The strategy for growth right now will be driven by acquiring drivers. The trucks and trailers are easy to grab,” said Quail. Finding the right personnel is no small task. Gone are the days when youth learned how to drive like she did, taking grain trucks through agricultural fields. A good Class AZ licensing course can also cost $8,500, which can be prohibitive to those exploring a second or third career, Quail said. “You’re kind of established in your financial responsibilities at that point.” Her fleet has responded by hiring and onboarding would-be drivers before they even begin their training, basing decisions on attributes like character and how well they’ll fit with the company. “Retention is up. Skill level has definitely gone way up,” Quail said of the experience. “I have to pay them for the training anyway.” Only one of the first five drivers left. Efforts to retain proven drivers are also ongoing at all three fleets. “We still do a lot of things that companies have given up,” Taylor said, referring to everything from Christmas parties to a pension plan. “I want them to retire with some money.” Sutco has introduced something as simple as birthday gifts to reinforce that it’s a great company to work for, Sutherland added. “Profitability will come.”
p Focus on retaining customers, too
While every business needs to grow, successful fleets are also able to retain relationships with existing customers. In other words, don’t chase new busi-
Small and Mighty ness at an existing customer’s expense, the speakers agreed. “The economy is going to be cyclical. It’s going to go up and down,” Sutherland said, stressing the need to support those who remain with the fleet during challenging points in the business cycle. “There’s a lot of people asking for us to do business now, and I think you don’t want to chase that.”
q Embrace change and technology
Meanwhile, one of the great equalizers for fleets of every size will come in the form of new technologies – and such tools aren’t limited to those with the biggest budgets. In fact, smaller fleets can prove themselves to be more nimble and adopt tech more quickly and effectively than their larger counterparts. “I’ve been a proponent of technology for a long time,” Sutherland said, noting how Sutco introduced GPS tracking in 2009 and electronic logging devices
(ELDs) in 2012. “When you need to change, sometimes it’s easier to change 100, 200 than a few thousand.” Once systems are in place, though, Quail stresses the importance of putting available data to work. “It’s really a huge missed opportunity [if] that money you’ve invested in technology is not being put to good use.” Admittedly, there are some challenges to being an early adopter of technologies. Sutco learned that when it jumped at the chance to fuel trucks with liquefied natural gas (LNG). “Sometimes we’ve gotten bitten,” Taylor admitted, referring to prices of different options that have dropped after a purchase. But tools such as transportation management systems can still deliver a return on investment in just 24 months, he said. What are other fleets waiting for?
r Invest in safety Safety-related investments may realize the biggest returns of all.
“Striving for that 100% compliance was always part of what we did, and I’ve seen that pay off time and again,” Quail said. For its part, Liberty Linehaul has supported a commitment to safety by rethinking vehicle spec’s. It has selected disc brakes since 2008 and installed collision avoidance and lane departure warning systems on all its trucks, eliminating reports of rear-end collisions in the process. It’s a different story for other fleets that participate in the same insurance captive – 38% of their claims involve rear-end collisions. Granted, some technologies can be distracting in their own right. Drivers face the ongoing pull from smartphones, electronic logging devices, collisionavoidance warnings, and alarms. “All the stuff in the truck is a distraction,” Taylor agreed. But the fleet reinforces things like the importance of taking a few minutes before every trip to get seats in the right position. “You have to live, breathe and walk that line.” TT
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DECEMBER 2018
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In Gear
46 Deep Thinking 50 Continental Divide 52 Product Watch
EQUIPMENT NEWS, REVIEWS, AND MAINTENANCE TIPS Blue-rich white LED lighting is great for lighting parking lots, but the glare it produces is hard on the eyes and it may be inhibiting sleep. Can we make LED light work better for us?
Light It Up Exploring the science of LED lamps and how they affect drivers By Jim Park We take lighting pretty much for granted in this day and age. With the flip of a switch we can continue daytime activities long after the sun sets. As little as 200 years ago, that option didn’t exist. The first street lamp of any kind was a gas lamp installed in 1817. Electric street lighting wouldn’t come along for another 50 years. Since then, we have migrated from incandescent lights and halogen lights to compact fluorescents and most recently to LEDs, or light-emitting diodes. LEDs are much more energy-efficient than incandescent lights and last much longer. It’s largely why LEDs will be the light source of the future, but they are not without their problems. In 2016, the American Medical
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TODAY’S TRUCKING
Association released Human and Environmental Effects of Light Emitting Diode (LED) Community Lighting, cautioning against excessive exposure to blue-rich white LED light. The report describes several related challenges including the suppression of sleep-inducing melatonin, excessive glare while driving at night, as well as a potentially higher risk for cancer, diabetes and cardiovascular disease. Its authors laid out specific concerns about white LED street lights in residential areas, compared to the orange-ish light produced by high-pressure sodium lighting. The key difference is the “color temperature” of the light. Sodium lighting has a color temperature of around
2,100 degrees Kelvin (K), which is perceived as something between the light produced by a candle and a 100-watt incandescent light bulb. Human physiological response to that sort of light is calming and restful. On the other hand, blue-white LED lighting used in street lights and automotive headlamps can be as high as 5,500 to 6,000 K, which humans perceive as daylight. Those numbers do not speak to brightness, but rather the relative blue content in the light entering the eye. Our brains get signals from our eyes, telling us when to be active and when to be sleepy. As you might imagine, being bathed in strong blue-white light is a trigger to be awake and alert. In response, the body suppresses a chemical called melatonin, which is responsible for triggering sleep. Normally, the body will naturally produce melatonin from around 9 p.m. until the early morning hours when you wake up. If the production of melatonin is suppressed or stopped, you will have trouble falling asleep. That’s not to say the lack of melatonin production acts as a stimulant – it just makes falling asleep difficult. You can see the positive side of that for drivers working at night, and the downside for those living under streetlights that produce high color-temperature blue-white light.
Customized colors Engineers who design LEDs can vary the chemical compounds used in the devices to tailor the “color” of the light they produce. “All of that technology is a function of the phosphor recipe,” said Brad Van Riper, Truck-Lite’s former senior vice-president and chief technology officer, in an interview we did a few months before his untimely passing in May 2018. “One of the reasons that parking lot and street lights use cool LEDs is that you get more lumens per watt. So, it’s more efficient to illuminate large
In Gear
A NIGHT AND DAY DIFFERENCE
S
ince headlamps are something drivers use every single day, we arranged a test drive with Truck-Lite to see if the LEDs lived up to the billing. I just wanted to see with my own two aging eyes what kind of a difference they made in night vision. Any driver who has them knows they are superior to halogen lights, but the reason why might surprise you. To test the two kinds of headlamps, we took a series of photos from inside the cab of a Freightliner Cascadia while parked on a deserted two-lane road near Truck-Lite’s plant in Falconer, N.Y. We used the same truck that underwent a headlamp transplant between the test runs. We switched the entire factory assembly with the halogen lights and replaced it with a module offered by Truck-Lite containing the LED lights. The photos were taken with the same camera using the same settings, so the camera’s exposure controls were nullified and would not affect the outcome. What you see is what the camera saw. No digital trickery was applied after the fact. What jumped out at me immediately was detail visible just off the road, where the trees are on the left in the LED photos. They were not even visible with the halogens. That gives a driver a real edge when it comes to spotting wildlife lurking at roadside
spaces like parking lots to get more light using the cool white technology.” When it comes to headlights, Van Riper said manufacturers use different LED “recipes” for their products that slightly emphasize different colors in the light spectrum. “Cool white LEDs appear brighter, but we believe that that cooler white isn’t the best solution for on-road applications.” Van Riper explained his company’s warmer LED headlamps better illuminate red objects like stop signs. While the “brightness” of the bluerich white LED headlamps is desired in a headlamp from the user’s perspective, high levels of blue produce an undesirable side effect for other road users: a disabling glare. The U.S. Department of Transportation defines it as “the introduction of stray light into the eye, which reduces the ability to resolve spatial detail. It is an objective impairment in visual performance.” Who hasn’t had a set of those coolwhite LED headlamps shining in the rearview mirrors for miles on end? They are not only annoying, they make it harder see in the dark – especially for
Halogen Low
Halogen High
LED Low
LED High
and even in catching signage way off in the distance. Interestingly, the LED lights were no “brighter” than the halogen lights, it’s the color of the light that makes the difference. Truck-Lite says color temperature of the LED light – the blue to red shift in the light spectrum – is very close to the color temperature of sunlight, around 6,000 degrees Kelvin, compared to halogen at around 4,000 K. Technically, they are not much brighter, but they sure appear to be because of the color.
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an incorporated driver & issue T4As? CRA has clariďŹ ed incorporated company drivers are Personal Services Businesses (PSBs) and not eligible for any small business deductions. Trucking ownership must now issue T4As to all self-employed contractors. Are you ready to comply? Now is the time to get educated. For more information on Canada Revenue’s 2018 tax guidance on self-incorporated drivers, Driver Inc., PSBs and mandatory T4As in the trucking sector, please visit cantruck.ca/driverinc
In Gear older driver whose nighttime vision may be declining with age. The University of Michigan Transportation Research Institute (UMTRI) studied the effects of short-wavelength content (blue-rich white) in headlamps more than a decade ago and came to similar conclusions.
LED impact on drivers You can understand why people living under LED streetlamps may find them annoying, but what impact does the prevalence of blue-rich white LED light have on drivers? We couldn’t find any research on that, but one of the authors of the UMTRI report told Today’s Trucking it’s something that should be looked at. Drivers are only exposed briefly to oncoming headlights, and while they may work in environments bathed in such light, it’s not shining directly on them. One implication could involve the in-cab lighting they are exposed to. Again, there’s no research to draw on here, either. However, since LEDs can be “programmed” to produce different-colored light, LEDs could be used to help drivers stay awake during the night and to help put them into a more restful state as they prepare for sleep. Aircraft manufacturers are now using LED cabin lighting in various shade of blue and pink to simulate different times of day to help alleviate jetlag – and to calm and relax passengers. Optronics, a producer of LEDs, is currently engaged with major truck manufacturers in the design of new variable lighting environments for cabs and sleeping compartments. The lighting scenarios being explored would allow an occupant to select a lighting combination that they find comfortable, but would also allow them to select pre-programmed lighting environments based on their activities. “Lighting is more complex than one might think and people can easily misjudge the type of lighting that might be appropriate for the time of day, or the task at hand,” said Brett Johnson, president and CEO of Optronics International. Operators using Optronics’ system will be able to choose the lighting that most
closely approximates the phase of daily activity they are in at that moment. For instance, the “awakening phase” would be red-shifted like a sunrise and might increase in intensity over time. “We’re also working on an aftermarket version that could be installed in existing vehicles. Optronics’ sees that the future of lighting isn’t just about more light or
one kind of light, it’s about delivering the right kind of light where and when it’s needed,” Johnson said. “One thing is for sure. For many working people, the world isn’t going to slow down, so it’s up to science and medicine to help us understand the how to best achieve the healthiest balance between lighting, health and safety.” TT
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In Gear
The Endurant is a clean-sheet design conceived as an automated transmission. It’s a 12-speed twin-countershaft unit weighing just 657 lb. Direct drive is in 11th gear, with 12th gear offering a 0.77:1 overdrive.
Deep Thinking Eaton Cummins Automated Transmission Technologies delivers an integrated powertrain that’s right for the times By Jim Park Cummins and Eaton have been integrating components for years. In 2013 they announced an engagement of sorts with the launch of the SmartAdvantage powertrain. Last year, by launching the Endurant transmission through the Eaton Cummins Automated Transmission Technologies joint venture, the last two independent major component suppliers figuratively tied the knot. Before the end of this year we will see a new suite of performance features for the X15/Endurant powertrain that integrate engines and transmissions more tightly than ever before. In my opinion, this pairing is as tight as any of the vertically integrated OEM powertrains. Back in June I went to the Cummins
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TODAY’S TRUCKING
plant in Jamestown, N.Y., to hitch a ride on a Kenworth T680 equipped with the new powertrain. At that time, some of the calibrations were still being developed and not all the features had been named, so I couldn’t very well write about them in a test drive. You’ll soon officially hear what the engineers have been up to. In the meantime, I can tell you it will be worth the wait. As a reminder, the Endurant was introduced in October 2017, conceived from the outset as an automated transmission rather than a manual with add-on shift actuators. It’s a 12-speed twin-countershaft design weighing just 657 lb. Direct drive is in 11th gear, with 12th gear offering a 0.77:1 overdrive.
Our test drive took us along I-86 between Jamestown and Erie, Pa. That stretch has loads of rolling hills and a couple of climbs long and steep enough to prompt a downshift or two in some cases. The engine model was an Efficiency Series X15 450 SA, delivering 450 hp with 1550/1850 lb-ft of torque at 1000 - 1400 rpm. It also had the full Adept feature suite, including SmartTorque 2, SmartCoast and Predictive Cruise Control – a pretty typical fleet spec’ powering a pretty typical 65,000-lb. Gross Vehicle Weight load. As innovative as it is, Endurant is still just a box full of gears until it’s programmed and bolted to a Cummins engine. I’ll get to the latest feature updates shortly, but first, here are my basic driving impressions of the X15/ Endurant powertrain. If previous generations of Eaton automated transmissions left a bad taste in some mouths, the Endurant is like a bottle of mouthwash. The closer ratios between the 12 gears allow for more skip-shifting opportunities and much smoother shifts to boot. It launches very
In Gear smoothly, whether the driver is kind to the throttle pedal or just stomps on it. The level of acceleration changes with the “aggressiveness� of the throttle application, but it’s all carefully managed to not push the engine out of its optimum operating range. The new calibrations favor using as few gears as possible while accelerating, based on weight and grade, and are actually more inclined to skip up through the gears if the driver is firm on the pedal. My first few runs through the gears were fairly gentle – in keeping with my driving style. I think I skipped two gears on the way from 2nd to 12th. My guide and instructor, Mike Hicks, a vehicle systems integration and calibration engineer at Eaton Cummins Automated Transmission Technologies, suggested I try driving it the way most drivers would. Sure enough, all the odd-numbered gears seemed to disappear. On one launch from a stop sign, I floored the pedal and we hit 6th gear on the second shift and then went right to 8th. I went from 2nd to 8th in two shifts and the engine revs were never carried away. I hate to admit it, but I think my driving style has gone out of fashion. The team that put this calibration together recognized that many of today’s entry-level and junior drivers are going to operate this truck the way they drive their cars, and they have wisely tuned the calibration to that driving style. It responds really well to an aggressive throttle application, and when cruise control is set it settles into a more “seasoned� style that’s basically invisible to the driver.
New features and calibrations The quick-shifting, fast-accelerating performance is new to the product, thanks to two new features. The first, Engine Assisted Shifting (EAS), uses the turbocharger as an exhaust brake of sorts, using exhaust backpressure to slow the engine for faster upshifts. That process also preserves boost pressure, so there’s no lag time while the turbo spools up after the shift. This helps drivers get up to speed more quickly without driving more aggressively. On top of EAS, Performance Shift
Optimization allows for higher engine revs in fourth gear and above, encouraging skip shifting and getting the truck up to speed more quickly with no fuel consumption penalty. The fuel savings come from fewer gear changes through the lower, less-efficient ratios. Because Hicks had his computer connected to the electronic control module, he was able to turn these features on and off for demonstration purposes. The difference was obvious.
re-engages and the engine brakes activate. Coasting takes advantage of vehicle momentum without the parasitic losses from engine friction. Predictive Gear Shifting uses lookahead data from the Predictive Cruise Control’s GPS and terrain maps to pick the right gear for an upcoming hill. It reads engine load, vehicle weight, and grade, matching engine output with the right gear to reduce or eliminate downshifts while climbing. This one confused
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I noticed another of the new features almost immediately, even though I wasn’t initially aware of it. Launch Control Tuning all but eliminates the lag time as the clutch engages at launch. The truck literally starts moving the moment you depress the accelerator pedal. This is sure to be a hit with drivers. The above-mentioned features are standard with the latest calibration and software update, which is backwards compatible with the first models released earlier this year. I also tried out two optional features that expand on technologies now available in the Adept suite: Accelerator Coasting Management and Predictive Gear Shifting. Accelerator Coasting Management allows the transmission to coast in neutral on slight downhill grades even when the cruise control is not engaged. Protections are baked in to keep the truck from going above a customer-selected speed, where the transmission
me a little because it caused the truck to perform in ways I wasn’t expecting, like downshifting early – or what I would call early. We did in fact climb the grade without shifting on the hill. We just shifted before we got to the hill. As I mentioned earlier, my driving style was somewhat at odds with this setup. Once I accepted the fact that it was calibrated for a different driving style, it all made more sense. The EatonCummins joint venture will sell thousands of these powertrains to fleets with legions of exactly the type of driver to which this calibration will appeal. However, drivers like me can still order a calibration that will suit their driving style, too. That’s the nice thing about electronic controls – you can take the same pile of hardware and make it perform exactly for its intended market. Basically, this powertrain will appeal to everyone who likes red engines, because you can get it the way you want it. TT DECEMBER 2018
47
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In Gear Differences between European and North American trucks are more than skin deep.
engine. Agebrand also refers to the engine access. Items not strapped down in a cabover have been known to crash through the windshield when everything’s tilted for a repair.
The power
Continental Divide Truck manufacturing is increasingly global, but Europe and North America remain distinct By John G. Smith The manufacturers of North American and European trucks are more closely aligned than ever. Daimler brands include Mercedes-Benz, Freightliner and Western Star. Volvo Group offers Volvos and bulldog-adorned Macks. Paccar’s Peterbilt and Kenworth count Europe’s DAF as a sibling. And now Traton Group, formerly Volkswagen Truck and Bus, has a share in Navistar. As close as the companies have drawn together, however, the equipment itself can appear a world apart. The most obvious difference is Europe’s preference for cabovers rather than the hooded engines that travel North American highways. But dig deeper and you can see the results of varied approaches to weights and dimensions, emissions, and even preferences for automotive-like finishes. “It’s interesting. Things like emissions technologies are really being driven from North America. Some of the safety technologies are being driven from Europe.
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But, conversely, autonomous operation is coming out of North America,” says Darren Gosbee, Navistar’s vice-president – powertrain and advanced technology. The trucks have evolved against the backdrops of the different regulations. Europe’s cabovers, for example, are largely the results of rules that put a greater emphasis on overall vehicle length, says Johan Agebrand, director of product marketing for Volvo Trucks. Forty-foot trailers married to individual 4x2 tractors are more the norm on the other side of the Atlantic. Europe’s typical Gross Vehicle Weights of 88,000 lb. are also closer to Canadian masses than the 80,000-lb. tandem configurations that travel U.S. interstates. Each configuration comes with its own pros and cons. Cabovers are easier to maneuver through the tight confines of densely populated urban centers; conventionals offer a more comfortable ride because drivers are not sitting right above the
Engines, meanwhile, have evolved through differing focuses on emissions. European regulators took an earlier interest in reducing NOx, which led to the earlier adoption of diesel exhaust fluid. “SCR [selective catalytic reduction] or AdBlue has been around in Europe for at least five years before it made its way here,” Gosbee says. North American regulators were quicker to focus on particulate matter and soot. Granted, such differences are less pronounced than they were in the past. “Over time, the emission legislations are getting closer and closer to each other,” Agebrand explains. But he stresses that it still wouldn’t be easy to use the exact same engine on both sides of the Atlantic because of distinct standards governing things like engine speeds and loads during certification processes. Regulated road speeds have influenced truck designs as well. North American speed limits are typically higher than those in Europe, leading to a different emphasis on aerodynamics, Agebrand says. Such enhancements tend to realize the biggest gains around 95 km/h. Europe’s trucks tend to have speeds capped at close to 80 km/h. It hardly means European buyers don’t care about fuel economy improvements. Fuel costs in Europe can be four times higher than those in the U.S., after all. But the increasing focus on reducing greenhouse gases in North America will play a role in promoting the vertically integrated powertrains that have a longer tradition in Europe. “You can’t really regard the truck as a collection of parts anymore. You have to look at a truly integrated system,” Gosbee says.
The safety While each continent has a broad array of safety standards to meet, there are clear differences in the approaches. One distinctly European crash test, for example,
In Gear slams a bar that weighs about the same as a full grown moose into a truck’s A and C pillars. The cab then needs to remain rigid enough to open the doors. There’s no such test in North America. “Safety standards in Europe are a little bit tougher to abide by,” Agebrand says, adding that they tend to emphasize dynamic crash tests. “You have more trucks or cars designed in Europe that would actually pass and get approved in the U.S. than vice-versa.” There are even differences in the braking systems of choice, with Europe embracing electronically controlled disc designs. “Before [North America] got to ABS there were really no electronics involved in the air brake system. It was really just a series of valves and primary and secondary systems,” says Fred Andersky, Bendix’s director of customer solutions and marketing controls. The evolution in Europe was different. “Instead of having a single control unit, like we do for an ABS system, you started [in Europe] to move the control units … closer down to the wheel end.” “Take a look at the way our trailer ABS and trailer roll stability systems have evolved, where you have this functional unit that has the modulators built in. It gets the input from the wheel speed sensors, and it has a brain or a circuit board that helps it do things,” he says. Europe’s approach has essentially produced smarter brake systems. “It is the regulatory environment in Europe, too.”
Congratulations on 75 Years of Success!
European trucks have evolved against a backdrop of different regulations.
Different buyers Don’t discount cultural differences behind the spec’ing choices, either. “We have fleet customers here in the U.S. that are a lot more sensitive to the price of vehicle,” Gosbee explains. In Europe, there seems to be a wider preference for premium fit, finish and content. “You step into a Scania or MAN product, the first thing you see is a carpeted floor,” he says as an example. But where European truck owners have limited space to outfit a sleeper, there are plenty of opportunities to offer extra amenities in a North American truck. So is there any hope for the idea of a truly global truck? “I think we’re closer,” Agebrand says,
referring to the way manufacturers are taking a worldly approach to developing things like autonomous technologies and electric vehicles. Changes of that nature could even make it possible to rethink what a truck looks like. “It depends a little bit on what legislation will do.” But Gosbee remains unconvinced that common trucks will ply the different highways, largely because of the different length laws and typical distances being traveled. Opportunities are likely limited to niche applications, perhaps in urban pickup-and-delivery work that would benefit from tightly turning cabovers, he says. “I think we’ll struggle to see a global truck in all applications.” TT
Derrick Brommerma 519 452-7732 Cell : 519 801-0714 Fax : 519 452-4861 brommersmad@tremcar.com
www.tremcar.com
DECEMBER 2018
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PRODUCTWATCH WHAT’S NEW AND NEWS FROM SUPPLIERS
For more new product items, visit PRODUCT WATCH on the web at todaystrucking.com
TRUCKS
Volvo Xceeds for fuel economy
Volvo’s new Xceed fuel efficiency package for VNL 760 and 860 models has been specifically designed for those who haul dry vans or reefers – promising to boost fuel economy by 11% when compared to the existing Fuel Efficiency Plus spec’, and bettering the Fuel Efficiency Advanced package by 3.5% Each is built on XE powertrain packages including the Volvo I-Shift automated manual transmission, Volvo D13 engine with turbo compounding, extended fairings, and ground effects. Dedicated wheelbase options ensure optimal trailer gaps of around 44 inches, while about 950 lb. is shed using components including a horizontal exhaust system, dedicated rear axle, limited fuel tank configurations, lightweight fifth wheels, and aluminum chassis components. www.volvotrucks.ca  TRUCKS
Kenworth’s Paccar package for fuel Kenworths are now available with a Paccar powertrain fuel economy package – combining the Paccar MX-13 engine with 405 hp at 1,650 lb-ft of torque, 12-speed automated transmission, 40K tandem rear axle, and enhanced Kenworth predictive cruise control.
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The MX-13 engine features a new torque curve that further refines fuel economy by lowering the horsepower rating while maintaining torque, the company says. The predictive cruise control varies speed over rolling hills without reducing the average vehicle speed. Meanwhile, the transmission’s software has been optimized for the MX-13 to allow for lower rpms at cruising speeds. www.kenworth.com
The triangular-shaped tie-bars in the outside shoulder help to promote traction throughout the tire’s life, while also mitigating heel-toe wear. Other features include proprietary compounds that form what’s known as chip guard technology, and stone ejectors in the lateral grooves. Available sizes include 11R22.5 (LRH) and 11R24.5 (LRH). www.us.coopertire.com
ENGINES
Mack models pre-wired for Lytx
Peterbilt adds two MX-13 ratings Peterbilt will offer two new ratings of Paccar’s MX-13 engines in the 2019 model year. A multi-torque 455-hp with a torque rating of 1,650 – 1,850 lb.-ft. is joined by a 405-hp model with 1,650 lb.-ft. of torque. When packaged with the Paccar transmission and 40k rear axle, the new 405-hp MX-13 provides one of most fuel-efficient integrated powertrains for longhaul customers, the company says. A Peterbilt 579 already sheds more than 500 lb. when spec’d with the full Paccar powertrain. www.peterbilt.com TIRES
Cooper Severe for mixed service use Cooper’s Severe Series Mixed Service Drive premium drive tire is rolling to support mixed-service applications. The treads measure a deep 32/32, and the company says they handle off-road conditions and deliver even wear on the road. The tire is also engineered to withstand the heavy scrub, cut and chip environments experienced by off-highway tires.
TRUCKS
Mack Trucks is now taking orders for the Lytx DriveCam and Lytx Video Services pre-wire option on LR, TerraPro and Granite models – making it possible to simply plug in a Lytx event recorder. The related feeds can be used to support driver coaching, reconstruct accidents, identify near misses, and even to prove innocence, refuse product manager Curtis Dorwart said during a related announcement at Canada’s Waste and Recycling Expo. Those benefits easily outweigh the cost of the equipment, added Roy Horton, director of product strategy. The video feeds can be combined with Lytx Video Services that include features like on-demand continually recorded video, optional live streaming, and support for multiple cameras. www.macktrucks.com
National Advertisers Canadian Trucking Alliance 44 cantruck.ca Cummins DBU 41 www.cummins.com DDC FPO Solutions 53 www.ddcfpo.com Eaton 19 eatoncumminsjv.com/endurant Eberspaecher 17 www.eberspaecher-na.com ExpoCam 12 www.expocam.ca Highway Star of the Year 48-49 todaystrucking.com/hsoy Hino 4 www.hinocanada.com ISAAC Instruments 15 www.isaac.ca Mann+Hummel Filtration (Wix Filters) 6 www.wixfilters.com
Omnitracs 8 www.omnitracs.com Penske 55 www.gopenske.ca Peterbilt back cover www.peterbilt.com Prestone 45 www.PrestoneCommand.com Sirius 23 siriusxm.ca/fleet Stoughton Trailers 2 www.stoughtontrailers.com Total Canada 21 www.total-canada.ca Traction 43 www.traction.com Trailcon Leasing 16 www.trailcon.com Tremcar Industries Inc. 51 www.tremcar.com Truck & Trailer 30 www.truckandtrailer.ca Vipar 14 www.vipar.com Webasto 38 GenuineWebasto.com
www.todaystrucking.com
COMPANIES IN THE NEWS A ACT Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 B Belmont Meats. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Bendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 BlackBerry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Brandt Group of Companies . . . . . . . . . . . . . . . . . . . 17 C Camex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Chill Tech . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 CN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Cooper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Cummins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 D Daimler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Daimler Trucks North America . . . . . . . . . . . . . . . . . 20 Day & Ross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Delsen Transport. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 dexFreight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Drivewyze . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 E Eaton Cummins Automated Transmission Technologies . . . . . . . . . . . . . . . . . . . . 46 F Fastfrate Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Fastfrate Linehaul . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 FLO Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Ford . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Freightliner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21, 50 Frontline Commercial Vehicle Solutions . . . . . . . 13 FTR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
G Goodyear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Gorski Bulk Transport . . . . . . . . . . . . . . . . . . . . . . . . . 15 Gowling WLG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Great Dane . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 H Healthy Trucker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Hino . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Hiway/Eskimo Refrigeration . . . . . . . . . . . . . . . . . . . 17 I Imperial Oil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 International. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 ISB Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 J J.D. Smith . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 K Kenworth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27, 50, 52 L L’Express du Midi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Liberty Linehaul . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Livingston International . . . . . . . . . . . . . . . . . . . . . . . 22 Lytx . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 M Mack Trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50, 52 Manac . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 McLeod Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Mercedes-Benz . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Mullen Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 N Navistar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Newcom Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
O Omnitracs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 P Paccar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50, 52 Paccar Parts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Paul Quail Transport . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Peterbilt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50, 52 R Royal Bank of Canada . . . . . . . . . . . . . . . . . . . . . . . . . 18 Ryder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 S Schneider National . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Sharp Transportation . . . . . . . . . . . . . . . . . . . . . . . . . 32 Stifel Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Sutco Transportation. . . . . . . . . . . . . . . . . . . . . . .36, 40 T TFI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 TransCore Link Logistics. . . . . . . . . . . . . . . . . . . . . . . 24 Transcourt Tank Leasing . . . . . . . . . . . . . . . . . . . . . . 26 Transport Audet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Trans-West . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 TransX Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Traton Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Trillium Roadways . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Trucks for Change. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 V Volvo Trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Volvo Trucks North America . . . . . . . . . . . . . . . .20, 52 W Westcan Bulk Transport . . . . . . . . . . . . . . . . . . . . . . . 15 Western Star . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
DECEMBER 2018
53
Faces
Real Gagnon
Real Success Real Gagnon’s vision for Trans-West began in the cab By Steve Bouchard Trans-West founder Real Gagnon still remembers seeing his future hanging in the frame behind a truck stop counter. Then 16 years old, he had joined his father on a run to Riviere-Beaudette, Que. But it was the picture showing a fleet of long-nose Peterbilts that caught his eye. “That morning I thought, ‘That’s what I want,’” he says, referring to the moment he knew he wanted a truck of his own rather than joining the family business at Express Roberval. Forty years later, that first truck has evolved into the fleet known as Trans-West – an operation specializing in refrigerated transportation and recording $100 million in annual revenue. It’s been recognized among the Best Managed Companies in Canada, and in 2017 the American Trucking Associations honored the company with its top safety award. But a business like that is not built overnight. It grew one truck at a time, and began with his own time behind the wheel. First came a problematic GM
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Astro when he was only 17. Then an International S2575 city cab that actually completed long hauls to Western Canada; his bed in the form of a sleeping bag and a piece of plywood with a strategically drilled hole that fit over the gearshift. Once he earned enough for a new truck, a Freightliner, he began hauling heavy machinery along the eastern seaboard. And by the time he was 30 he had purchased a reefer for runs to Texas and California. “No need to find three trips in the week and three times to Philadelphia. I had already tried and I did not like it,” he says. In the family business he billed $200 or $300 at a time. This work paid $4,000 a shot. It’s also when he began assigning work to others, gradually building the fleet that became known as Trans-West. A focus on factors such as fuel economy supported the ongoing growth. When some haulers said they struggled to make money at five miles per gallon (47 liters/100 km), his trucks were recording 6.5 mpg (36 L/100 km). Over the past
seven years TransWest’s ongoing focus has secured a SmartWay certification from the U.S. Environmental Protection Agency. Even suppliers turn to the fleet for help with real-world tests of emerging technologies. There were times the interest in fuel economy pushed him too far. The first generation of super single tires certainly didn’t last. And early automatic tire inflation systems added air but couldn’t deflate the tires, which presented a challenge when leaving the fleet yard at -20 Celsius and finishing a trip at 30 C. (“We found ourselves with pressures of 110-120 psi when we wanted to have 95,” he says.) But gains were gradually realized, and further insights were gathered along the way. “Today we are on another planet in terms of information – we have data on weights, distances, destinations, engine, fuel, drivers, operating conditions,” he says. That data helps Trans-West make better decisions as it continues to move forward. “If you do not have the right information, you cannot make the right decisions,” says Gagnon. “The better you control your expenses and your network of operations, the better you will arrive.” The focus on equipment is only one piece of the puzzle, of course. Gagnon knows that he relies on well-selected teams to safely complete more than 70 million kilometers a year, mostly to and from California. About 20 candidates are interviewed per week, but only a select few make the grade. “What I ask my drivers to be is independent, responsible and safe. We are very selective in hiring. When you do team, you must understand that there is always someone sleeping behind [you]. It’s a responsibility that applies all the time.” Three factors keep such drivers on the job, he says. “They have to be well paid, they have to do the mileage they are promised, and they have to have good equipment.” Today he has 550 of them, and 200 trucks. Also, he adds, “I’d rather have 10 trucks at the fence than 10 people who cannot drive.” TT
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