Over the Road October 2022

Transam Carriers, we believe that success is not achieved without professional human attitudes. We are proud of providing some of the most flexible work options in the industry for an optimum work-life balance. All of these, in conjunction with new equipment, modern technologies, in-house truck shop, and cross-dock facility, make Transam an exceptional workplace that we call here our second home.

1189694 Ontario Ltd. C.O.B. as Over The Road

Publisher Peter Charboneau peter@otrgroup.ca

Director of Operations & Editor-in-Chief Cathryn Charboneau cathryn@otrgroup.ca

Account Executive Luke Zentil luke@otrgroup.ca

Account Executive Earle Madden earle@otrgroup.ca

Graphic Design & Advertising lennykuiper.com lennykuiper@gmail.com

Controller Estela Navarrete estela@otrgroup.ca

Office Manager

Mary Charboneau mary@otrgroup.ca

18 Parkglen Drive, Ottawa, Ontario K2G 3G9 1.800.416.8712 • 613.224.9947 Email: otr@otrgroup.ca www.overtheroad.ca

benefits plan, pension plan, vacation starting at 4 weeks per year, paid sick leave, paid personal days, and additional paid time off around the year-end holidays and in the summer!

All advertisements, and/or editorials are accepted and published by Over the Road on the representation that the advertiser, its advertising company, and/or the supplier of the editorials are authorized to publish the entire contents and subject matter thereof. The advertiser, its advertising company, and/or the supplier of the editorials will defend, indemnify and hold Over the Road harmless from and against any loss, expense or other liability resulting from any claims or suits for libel, violation of privacy, plagiarism, copyright or trademark infringement and any other claims or suits that may rise out of publication of such advertisement and/ or editorials. Press releases are expressly covered within the definition of editorials.

Drivers would be responsible for loading and unloading assigned product into the assigned truck for every shift. Must provide a clean driver’s abstract of minimum 3 years.

Robert D. Scheper

Making Your Miles Count PODCAST

Beginning in January 2023 and in association with Over the Road Magazine, Making Your Miles Count will be producing a PODCAST to serve Canadian Truck Drivers and Operators. I have been researching topics and formats for over two years and I’m excited to provide a wide range of detailed topics. What I am offering readers is the opportunity to participate in topic development. If you have input or questions regarding anything on our list of 20+ topics, please feel free to contact me through our website. If you have a story, issue, or concern, we may just read it on the Podcast or even contact you for an interview if we believe the story is worth telling in audio/video format. Below are two of the topics on the list.

3. MAKING YOUR MILES COUNT: CHOOSING A TRUCKING COMPANY

The second book in the Making Your Miles Count series was published in 2015. Nearly a third of the book deals with every aspect of fuel costs. One of the first steps in controlling net fuel costs is a clear understanding of Fuel Taxes. Too many operators misunderstand the importance of knowing the impact of fuel taxes. The bottom line is that fuel taxes must be completely removed from the calculations of controllable fuel cost issues. In other words, remove the fuel tax from the pump price to compare the BASE PRICE of fuel you are considering purchasing. If you owned a truck that miraculously consumed zero diesel fuel (a wonderful concept) it would make zero difference on your net fuel tax cost. For some people, playing the fuel tax ‘game’ is very important. However, it is an exercise in futility… it moves cash/liability from one pocket to another but makes no difference to your wealth building. The activity is a complete waste of time. There are many issues surrounding net fuel costs. The first is fuel consumption, then fuel cost issues. Consumption has a greater impact than costs. Typically, carriers make better

fuel purchases while operators have better fuel consumption averages. Operators enjoy the freedom of fueling where they desire, which is usually not the most economical. Understanding where fuel is cheapest is not a static science; prices fluctuate seasonally, cyclically, and randomly across the North American markets. It’s a management issue that each Operator must understand and embrace.

Comparing carrier contracts is a science that few Operators have used. The method of choosing a carrier is almost always on the word or observation of a friend. I remember one client who spent four months preparing to leave a carrier on the testimony of a friend. Then after finally making the change, he met his friend at a truck stop only to find out they were no longer at the company he just moved to. He obviously trusted the guy’s word too much and/ or he didn’t keep in touch with him. Another client moved to a carrier because he saw an acquaintance purchase a new truck, an SUV and boat. He assumed that the money must be awesome, not considering the probability that their acquaintance was demonstrating a flare for excessive debt.

Charting and comparing carrier contracts are only a part of the research an operator must do to make a sound choice in truck placement. Halfway through my research, I realized that providing a written contract does not mean the carrier will honor it. In fact, from a legal point of view, most contracts are designed to expose and clarify the liability of the Operator and not nearly so much the obligations and responsibilities of the carrier (if at all). After reading hundreds of contracts my estimation is that the average carrier contract focuses 80% on Operator liabilities and obligations and only 20% on carrier responsibilities. With little to no clear obligations and responsibilities, a carrier can ‘legally’ get away with an awful lot of wing

clipping. I charted 13 different carriers over a 16-year span in my research. It clearly displayed the highest paying contract with the lowest and all the contracts between them. What the charts DON’T show is the relative corresponding turnover of those contracts. When Operators view the chart, they immediately ask who the highest paying carrier is, thinking that financial remuneration is the primary or only criteria for an educated choice. Then I ask the operator what he thinks the annual turnover is at the highest paying carrier? The assumption is that it is low, but it is more than 80%. I then point out a contract slightly above mid-way through the range and that carrier has an annual turnover of 8-12%. The highest paying carrier is not always the best carrier for two reasons. They may not honor their contract, or the work required is too hard/difficult for the Operator to sustain. Operators usually choose to leave a carrier for reasons unrelated to pay.

The book also deals with many related issues beyond lease operators. It touches on being an Owner Operator (running percentage). The difference between a Lease Operator and Owner Operator is much larger than the gap between a Company Driver and a Lease Operator. To be a successful Owner Operator (running percentage) requires a deep understanding of freight rates, lanes, cycles, and carrier customers. It is easier to move from a percentage operator to owning your own running rights (becoming your own carrier) than a Lease Operator to an Owner Operator. The amount of critical information for success jumps exponentially.

There are several fundamental lessons derived from the 16-year study comparisons. The research answers questions such as: do operators make more money after deregulation became entrenched or before? Do operators make more money than company drivers? If so, how, and where do they make it?

4. BUILDING WEALTH AS A DRIVER OR OPERATOR

When Drivers or Operators search me out for financial advice, too often they are looking for some ‘trick’ or ‘loophole’ to gain a financial edge. The ability to generate income from

operating a highway tractor is only one part of a person’s life. It may be an important part but certainly not to be considered the only focal point. In fact, if a person wishes to gain and retain after tax wealth, they almost certainly need to first focus on becoming wise and retain an understanding of their craft. Discipline, structure, and prudence are keys to building long-term after-tax wealth.

There are many life mentors available online. In fact, when I began researching for these PODCASTS, I found HUNDREDS of life mentors and ‘experts’. Admittedly, I have found some very helpful in the development of these PODCASTS. I am not interested in selling you books, programs, or courses that “help” you become wealthy. I’m not in this to make a buck. I have no sponsors other than the ‘Making Your Miles Count’ accounting firm. It is this accounting firm that allows me to help the industry with some critical issues. If I can help operators become more successful or save some operators from their false fantasies, I would count my efforts a success.

Over thirty years ago I designed my dream job; if I could have a business that provided me enough income so I could study, teach and help people without worrying about money, that would be my dream job. As near as I can tell, I have seen that dream come to life in my book series, articles in Over the Road Magazine and now with these PODCASTS. I cannot help people with everything, but I can provide a proven plan to build enough wealth to retire with dignity and maybe even enough to change your world significantly. You don’t need a Ph.D. or even an MBA to do this.

25 years ago, I was talking to an office administer at a carrier who told me a story of a driver they had hired several years prior. This driver was not typical; he was not a particularly bright man. He was a loner and probably should have taken one or two more showers a week than he was used to. He was assigned a scheduled run that put him on the road about five and a half days a week. After two years he was called into the office. He was nervous and shy, and the payroll lady was a little sheepish, but she asked him if he had been depositing

his pay checks, because according to the payroll account, there was a long list of outstanding, uncashed checks. He smiled a bit and reached into his back pocket and pulled out a thick wallet. From the unfolded leather he pulled a stack of un-deposited checks. He told the clerk that once his cash runs low, he takes out the next check and makes a deposit. Slowly over two years, he had accumulated nearly six months of checks. Payroll had called him in because, after six months, he would not be able to cash the cheques in his wallet as they will become stale dated. Hearing the reasoning of the driver, the clerk gave him some advice. She set him up with auto payments at his bank and had his surplus funds invested in mutual funds. If everything stayed the same, that man is now a very rich truck driver.

After two years of driving, he had accumulated six months of cheques, so he was able to save 25% of his net pay. That’s impressive. His lifestyle was much lower than his income.

Several years ago, I spoke with two separate clients. The first was a young married couple. They had three very young children and they lived in an apartment complex while her husband drove a truck. We were going over their finances and she made an off-hand comment like “…and of course, we have our personal living expenses.” I asked, “How much do you need?” “$2,500 per month” she replied. I assumed she didn’t know exactly how much she was spending but I was wrong. After going through their finances, I realized that she knew exactly what she was doing; their family expenses were $2,500 per month.

I was impressed. Over the years I followed their progress. They grew their family’s net worth step by step until they were able to retire to another country in comfort.

I had another client, a husband and wife only, in their early sixties. They ended up owning two highway tractors because he didn’t like how the first one drove. They were in bad financial shape trying to make two payments, driving the new truck while trying to sell his first. I asked them how much income they personally require each month. He said $10,000. I immediately thought that he misunderstood my question. “Personal

not business” I said. Again, I was wrong. They had every kind of debt - all the way down to a hot tub payment. They needed $10,000 per month just to ‘survive’.

Given the right structure an operator can build a great financial future, or with the wrong structure, build a life of perpetual crisis. It’s not just personal financial issues - it’s business too. Building wealth is a combination of personal and business discipline. Being a successful operator requires a clear set of short- and longterm goals and maybe even a sound exit plan.

Over the next few months, I will overview a few other topics to be featured on the PODCAST. Our PODCAST is designed for industry information and educational purposes. It is not designed to make me popular or some kind of social influencer. I seek to assist Drivers in building long term financial wealth and stability, outside any dependence on the governments ‘cradle to grave’ standards. Building wealth as a truck driver and/operator is not difficult if the right formula is followed. In fact, ours is probably one of the easiest industries in which to succeed. I know plenty of very wealthy drivers and operators who are well prepared for retirement. You can be too.

About the Author:

Robert D. Scheper is a leading Accountant and Consultant to the Lease/Owner operator industry in Canada. His first book in the Making Your Miles Count series “taxes, taxes, taxes” was released in 2007. His firm exclusively serves Lease/Owner Operators across Canada. His second book “Choosing a Trucking company” is the most indepth analysis of the operator industry available today. He has a Master’s degree (MBA) in financial management and has been serving the industry since he and his wife came off the road in 1993. His dedication, commitment and strong opinions can be read and heard in many articles and seminars.

You can find him at www.makingyourmilescount.com or 1-877-987-9787.

What Questions Do You Ask?

The other day I received an e-mail asking me, “In today’s world, when every trucking company is looking to hire more drivers, what should I look for in a trucking company when looking for a new place to call home?” I get this question a lot and below is an outline of my typical response.

Ask the Carrier What Type of Work They Do?

Questions like: how far do you run and what areas of the country (Canada and/or USA) do you usually service? Will I be live loaded or is the work drop-n-hook? If it is live-loaded, am I being paid for the wait time? Speaking of wait time, what is the company policy? And does the company hire only employees, or does it use Driver Inc. or both?

If you are in the Driver Inc. group, just remember that you don’t have the same rights as employees who are not part of Driver Inc. And back to the question of how far you run, the answer you receive may tell you how long you will be out on a trip. Be sure to ask about trip length, how many days is the usual trip?

What Type Of Equipment Do You USE?

For some drivers, the type of tractor is important. Some drivers like to drive straightnose Pete’s and others want a Volvo. So, this might be important to you. I was never a lover of the big Peterbilt trucks. Remember I’m a safety guy. This type of truck has a big blind spot in the front of the truck and in tight spaces, it has its disadvantages.

Perhaps more important is the type of trailer. Are you going to be pulling a dry van, a refer, flat deck or drop deck? Are they open deck or covered? There are so many types of trailers, each with their own needs and uses. If you don’t want to be tarping cargo then an open deck may not be for you.

Where Do You Go?

Why would you work for a carrier that only goes to the east coast if you don’t like going to the east coast? The same would be said for going anywhere. If you don’t want to cross the Rockies, why would you agree to work for a carrier that only services Vancouver? It is important to specify the questions based on the things that matter to you.

SAFETY DAWG

Chris Harris

What Is Your CVOR Or National Safety Code Score? What Is Your SMS Score (if the company goes to the States)?

This is a question that most recruiters have never heard. Very few drivers ask about a company’s safety scores. These scores affect every driver in the fleet. For example, every carrier in the States has an Inspection Selection System (ISS) score. This score greatly affects which trucks get selected for inspections at the scales. A similar system works in all the Provinces in Canada. I would much rather work for a carrier that gets inspected far less than its competitors. And it is not just because I don’t like being inspected, although that is very true. It is because it takes time away from driving. It takes many inspections to create a good score so that the company does not get inspected frequently. So, good scores indicate that the carrier has a good maintenance practice and keeps their trucks in great shape.

And Now the Question That Most Ask First – When It Should Be Asked Last. What About Pay?

Although pay is certainly one of the most important questions, you should leave it to the end. If the answers received to the above questions are satisfactory to you, now you need to know about the pay and if there are benefits available. Why should pay or your remuneration be the last question? Because most companies are paying just about the

same, it’s the other questions that will first let you know if the company is a good fit for you. But when you do start talking about pay, be sure to also ask what they pay for. Do they pay waiting time? When do they pay waiting times? Are they paying incentive pay? Meaning, that they are likely paying by the mile or per trip. If they are paying this way (and there is nothing wrong with this), how do you make more? Do they pay overtime after 60 hours? Do they have a benefits program and if so, what are the details and what is included?

With so many trucking companies looking for drivers, you the driver applicant have the advantage. Ask the questions that are important to you and to your family. It does you no good to make great money which will support your family, only to find that the company is not a good fit for you and causing you unhappiness. It is just not worth the money!

Stay safe.

Chris Harris

Top Dawg, Safety Dawg Inc. 905-973-7056 chris@safetydawg.com @safety_dawg (twitter)

WOMEN IN TRUCKING

What Happened to Civility?

The word civility is defined as formal politeness and courtesy in behaviour or speech. Its origin is the word “civilitas” which relates to citizens. Words aligned with civility include courtesy, politeness, good manners, graciousness, and respect.

The Institute for Civility in Government goes beyond this definition to include “disagreement without disrespect.” What does that mean? It means we can hold opposing views while still recognizing the other person’s opinions as valid and deeply held.

For those who have studied language in some capacity, you may be familiar with some of the arguments people use to discredit others. One of them is called the Ad hominem argument, which is a personal attack. You can see this tactic used in politics every day. Instead of addressing the statement, the speaker instead denigrates the other person’s character or motive to undermine the statement.

Children use the Ad hominem argument all the time. I recall my niece choosing the name Rose for her doll and another

little girl told her she was stupid for her selection. With children, we can teach them to be more respectful, but once we’re adults, we should already hold these values to create a more pleasant environment.

Visit any Facebook group and you’ll see some nasty comments directed at other posters. It’s called keyboard courage when you are an anonymous icon hiding behind a long line of bitter and angry people. I’ve never understood the attraction to hurting another person, even if you don’t know them personally. What satisfaction does a person get from being mean?

Many of us learned the adage, “If you can’t say something nice, say nothing at all.” I have bitten my lip to keep in some of the negative thoughts I would like to share, so I am not lowered to the level of those who enjoy shooting electronically charged daggers.

The trucking industry is a close community. Drivers really are good at connecting with one another, both in person and through technology. In the past, the CB radio was the most common method of interaction. Now, drivers use

Ellen Voie

apps and websites and especially social media to find common ground with others.

Unfortunately, that same venue can be viewed by those outside of our industry and more importantly, many who are considering becoming a part of the supply chain. Yet, what they are seeing is bickering, attacking, denigrating and profanity. What happened to a sisterhood or brotherhood?

Are you looking out for your fellow drivers on the road or at loading docks? Are you being supportive and helpful to encourage and validate others? If so, then I thank you from my bottom of my heart, as we need more civility these days.

If you are quick to share a verbal barb or comment on another person in a negative way, why are you doing it? Wouldn’t you prefer to give someone a compliment and see a smile than to hurt someone and make them unhappy?

Our first President, George Washington, hand-wrote a list of 110 rules of civility and decent behaviour. Many of these rules involve physical etiquette, such as not sneezing on people and others include table manners. However, the first rule is, “every action done in company ought to be with some sign of respect, to those that are present.”

Civility begins with you. The next time you are at a truck stop or a loading dock and you hear a person make a negative comment, ask them to please stop.

Many times, people don’t realize how destructive their words can be. Think about how the trucking industry could return to the “Knights of the Road” image that the public used to see.

Let’s make the trucking industry more civil, more accepting, kinder and more welcoming. Let’s bring back the sisterhood and brotherhood that trucking was founded upon nearly a century ago. It’s up to you.

Ellen Voie

President/CEO/Founder of Women In Trucking, Inc. ellen@womenintrucking.org www.womenintrucking.org

Mission: Women In Trucking was established to encourage the employment of women in the trucking industry, promote their accomplishments and minimize obstacles faced by women working in the trucking industry.

Atlantic Transportation

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Beyond

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Carmen

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Genesis

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Trucking

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