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July & August 2020
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Sukhi Dosanjh 916-343-1061
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UTILITY TRAILER SALES
OF CENTRAL CALIFORNIA, INC.
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FROM THE EDITOR Raman S. Dhillon
This past couple of months have been a wild ride for everyone. COVID-19 has proved the economy was not prepared for a global pandemic. Due to the worldwide pandemic impact, the economy was forced to an abrupt shutdown. Countries from around the world hastily struggled to come up with safety guidelines. Many nonessential businesses were forced to shut down while essential businesses were to follow constantly changing safety guideline procedures. Millions all over the world had lost their livelihood and over half a million lost their lives. as the pandemic caused a global recession. Social distancing became the norm and businesses jumped onto technology to move the economy in a safe manner. The trucking industry has changed in more ways than one as it evolved to meet safety standards brought forth by the CDC guidelines.
While other businesses slowed, the trucking industry boomed in high demand and found new ways to efficiently and safely conduct businesses. Many offices had their employees work from the comfort of their own home. During this time, it is important to come together as a community and support each other. We can all come back from this pandemic stronger and more prepared for any future pandemics with all we have learned. Help your fellow neighbors by following CDC guidelines and wear a mask if you must enter a gathering. Remember to wash your hands often. As for truck drivers who don’t have constant access to soap and water; be sure to carry around hand sanitizer that is at least 60% alcohol. Please be safe and together, we will all beat this pandemic!
EDITOR Raman S. Dhillon press@punjabitruckingusa.com
GRAPHIC DESIGN Maxx Printing, LLC Harshpal Brar
Official Magazine for: North America Punjabi Trucking Association
ASSOCIATE-EDITOR Sunny Vraitch
TRANSLATIONS Harjinder Dhesi
Published Bi-monthly by Primetime Multimedia Company LLC
CONTENT DIRECTOR Gurjit Kaur Randhawa
CONTRIBUTORS Ajit S Sandhu Harjinder Dhesi Pash Brar Surjit Singh Dr. Surdeep Singh William Mutugi
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All Rights Reserved. No material herein or portions thereof may be printed without the written consent of the publisher.
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OFFICE MANAGER Melissa Nolasco info@punjabitruckingusa.com
DISCLAIMER: Primetime Multimedia Company LLC assumes all advertisers to be reliable and responsible for any and all liability for their claims. The publisher reserves the right to refuse any advertisement it may find unfit for publication. The opinions expressed in articles and features are of the writers and may not be those of the publisher.
ADVERTISING SALES Raman S. Dhillon
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NE T LOAD 5
July & August 2020
A Product of
INDUSTRY NEWS
CONTENTS
ARTICLES
Apex (Nextload) .......................................... 05 Automann ....................................................... 53 Big Rig Tires & Alignment ............................. 49 BP Lab Services ............................................ 31 Capitol Truck Lines Inc ................................ 36 Ceragem Thermal Massage ...................... 11
08
12
COVID-19 tr`ikMg ƒ ikvyN bdl irhw hY, Swied sdw leI
10
Compass Funding Solutions ........................ 35 CVTR Inc ...................................................... 33 Ex-Guard ..................................................... 28 Flat Rate Dispatching ................................. 27 GCR Tires & Service ..................................... 29 Gillson Trucking Inc. ..................................... 11
30
Golden State Peterbilt ................................... 03 Golden Land Trans. Insurance .................. 19 Jagdeep Singh Insurance Agency ................ 09 Inland Phoenix .............................................. 25 Kam-Way Transportation Inc .................... 47
34
Keep Truckin ................................................ 07
Lotus Financial Group ................................. 39 Maxx Printing ............................................... 50 NAPTA ...................................................... 19, 43
36
Padda Insurance ......................................... 46 Paul Singh - Real Estate Consultant ............. 21 Publix Insurance .......................................... 15 Primelink Express ........................................ 41 Ratebeat Mortgages ..................................... 56
42
Speedy Truck Wash Inc. ............................... 45 Truxlink ........................................................ 51 TXT ELD Solutions ..................................... 37 Western Truck Centers ................................. 55 Utility Trailer Sales of Central California ..... 02
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July & August 2020
ienvYst AYkt ienPrwstrkcr qy 494 iblIAn fwlr Krc krygw
14 iSprz Aqy pRwpkrqwvW ƒ vI AYP.AYm.sI.AYs.ey jbr inXm dI pwlxw krn dI zrUrq hY
16 jdoN ik PPP krizAW ƒ ishq sμktkwl dOrwn qrjIh id`qI jWdI hY
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Legend Transportation Inc. ......................... 54 London Properties ....................................... 23
Connect with Us
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fYmlr ny swry AYkstYNff ieMjn vwrMtI gwhkW leI AYkstYNff nYkst kvryj ivklpW dw ivsQwr kIqw hY
38 Very Few Were Prepared for COVID 19
40 Suspension of FET would bolster economy, aid in fight against Climate Change
52 FMCSA Hours of Service Final Rule
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Build a culture of safety and trust with the KeepTruckin Smart Dashcam
Ph.: 424-325-5330 hux jdoN iek tr~k AYksIfYNt dw AOsqn Krcw $91000* q~k hY qW iek glq klym quhwfy ibzns leI mwrU ho skdw hY[ kIp tr`ikMn AYc fI smwrt fYSkYm quhwnM U auh vIifE prUP prdwn kr skdw hY qy quhwfy kwrobwr nM U Aijhy glq klymw qoN bcwA skdw hY[ www.punjabitruckingusa.com
July & August 2020
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COVER ARTICLE
COVID-19 tr`ikMg ƒ ikvyN bdl irhw hY, Swied sdw leI
20 l~K qoN v~D kys Aqy 110,000 qoN v~D mOqW hox dy nwl, sMXukq rwj AmrIkw ipCly kuJ mhIinAW qoN koivf -19 mhWmwrI dw kyNdr irhw hY[ ies mhWmwrI ny ies sMkt nwl nij~Tx leI AwriQk St fwaUn krn ƒ Aqy jldbwzI iv~c iqAwr pRqIikRAwvW dI ie~k lVI bxwaux leI mjbUr kIqw hY[ skUl irmot-lrinMg qy cly gey hn, dPqrI krmcwrI Awpxy swQIAW nwl juVn leI zUm dI vrqoN kr rhy hn Aqy kirAwny dIAW dukwnW ny gwhkW Aqy krmcwrIAW dI r~iKAw leI qyzI nwl plyks glws lgvw ley hn[ tr~ikMg ieMfstrI hor izAwdw lckdwr bxn Aqy nvIn qknIkW ƒ lwgU krn ivc ip~Cy nhIN rhI[ kuJ mh~qvpUrn qbdIlIAW, ijs iv~c swrI tYknolojI Swiml hY, tr~ikMg kMpnIAW leI sMBwvq qOr qy vDyry kuSl bx ky swhmxy AweIAW hn[ AMq iv~c, ieh jwpdw hY ik frweIvrW leI ielYktRwink ib~lW dI vrqoN, ivkrI Aqy gwhkW drimAwn vrcuAl mIitMgW dI vrqoN krdy hoey, tr~ikMg PlIt kwgz rihq Aqy sMprk rihq qknIkI v~l vD rhy hn[ mhWmwrI dOrwn kwrobwr krn dy ieh sur~iKAq qOr qrIky hI nhIN blik Biv~K dI lihr vI hn ikauNik ih~sydwr smJdy hn ik kwrobwr clwaux leI smwrtPon jW lYptwp dI vrqoN krnw sOKw Aqy qyz hY[ dsq^q lYx jW Bugqwn krn leI ie~k tr~k cwlk ƒ jo muSiklW dw swhmxw krnw pYNdw sI auh vI hux dUr jWdw hoieAw jwpdw hY ikauNik PlIts Aqy gwhk iehnW nwl nij~Tx leI keI swrIAW nvInqwkwrIAw swhmxy lY ky Awey hn[ d&qrI stwP dw ie~k v~fI bhuigxqI iv~c hux Gr qoN kMm krn nwl pUry dPqr dw mwfl bdl cu~ikAw hY[ hux krmcwrI vwtr kUlr dy Awly-duAwly KVHy ho ky smW brbwd nhIN krdy[ ies dI bjwey, auh G~t qxwA dy nwl Awpxy Gr iv~c Awrwm nwl kMm krdy hn ijs nwl auh frweIvrW jW iksy vI sm~isAw vwly mu~idAW nwl nij~Tx leI vDyry SWq Aqy pRBwvSwlI bx gey hn[ drAsl, kuJ PlItW dw mMnxw hY ik mhWmwrI Kqm hox dy bwAd vI auh dPqrW ƒ nw KolHx dw PYslw kr skdy hn, ijs nwl ikrwey Aqy aupkrxW qy Awaux vwlI lwgq vI GtygI, krmcwrI dPqr Awaux-jwx vwlI Xwqrw dy nwl nwl smyN Aqy pYsy dI vI b~cq kr skdy hn[ hwlWik Awhmo-swhmxy hox vwlIAW bYTkW zrUrI hoxgIAW Aqy vDyry vrcuAl mIitMgz ƒ iek imAwr bxnw cwhIdw hY[ kMpnIAW ny vrcuAl AnukUlqw pRdwn kr ky frweIvrW ƒ Enborf krn dy nvyN qrIky vI l~By hn, ^wskr jdoN frweIvr dy kwgzwq ƒ Brn Aqy vrcuAl dsqKqW dI vrqoN krn dI g~l AwauNdI hY[ Prm vIfIE isKlweI pRdwn kr skdy hn, Aqy bhuq swry Asl iv~c nvyN fRweIvr nhIN dyK rhy hn jdoN qk G~to G~t A~DI ErIAYntySn pUrI nhIN ho jWdI[ sp~St hY ik ivAkqIgq mIitMgz ƒ kdy nhIN bdilAw jw skdw, pr smwijk dUrIAW Aqy Coty smUhW dI zrUrq dy smyN, tr~ikMg kMpnIAW leI ip~ClI pRBwvSIlqw Aqy pRdrSn dy p~Dr ƒ bxweI r~Kx leI vrcuAl tYknwlOjI dI vrqoN krnI mh~qvpUrn bx geI hY[
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July & August 2020
www.punjabitruckingusa.com
COVER ARTICLE
W
ith over two million cases and over 121,000 deaths, the United States has been the epicenter of the COVID-19 pandemic for the last few months, forcing an economic shutdown and a series of hastily prepared responses in dealing with the crisis. Schools went to remote-learning, office workers used Zoom to connect with their associates and grocery stores quickly installed plexiglass to protect customers and employees. The trucking industry has been no different in becoming more flexible and implementing innovative techniques in attempting to remain as dynamic as ever. A few key changes, all involving technology, have emerged as potentially more efficient for trucking companies, even after the pandemic is far in the rearview mirror.
How COVID-19 is Changing Trucking, Maybe for Good
Finally, it seems, trucking fleets are moving to paperless and contactless technology, using electronic bills of lading for drivers and virtual meetings between sales and customers. Not only are these safer ways of doing business during a pandemic but are also the wave of the future as stakeholders realize it’s easier and quicker to use a smartphone or laptop to conduct business. The days of a trucker jumping in and out of his cab to get a signature or make a payment are seemingly gone as fleets and their customers come up with more innovative ways to achieve results that used to be done in person. With a large majority of office staff now working from home, the entire office model has been transformed. No longer are employees standing around a water cooler wasting time. Instead, they are working from the comfort of their own home with less stress which has made them calmer and more effective in dealing with drivers or any problematic issues. Indeed, some fleets believe they may decide to downsize offices even after the pandemic is over, saving money on rent and equipment. Workers will also save time and money with travel to and from the office reduced. While face to face meetings will still be essential, more virtual meetings should become the norm. Companies have also found new ways to onboard drivers by providing virtual orientation, especially when it comes to filling out employee paperwork and using virtual signatures. Firms can provide video training, and many are not actually seeing new drivers until at least half of the orientation is completed. Obviously in-person meetings will never be replaced, but at a time of social distancing and a need for smaller groups, the use of virtual technology has become significant for trucking companies to maintain previous effectiveness and performance levels.
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July & August 2020
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INDUSTRY NEWS
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July & August 2020
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July & August 2020
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INDUSTRY NEWS
“
The new HOS rules would have made four significant changes for truckers including increasing safety and flexibility for the 30-minute break rule.
A
new transportation and infrastructure bill proposed by Congressional Democrats seeks to invest nearly $500 billion in highways, bridges, safer streets, zero-emission vehicles, and public transit. The bill, however, would also delay, by as much as 18 months, the new Federal Motor Carrier Safety Administration’s hours-of-service (HOS) final rule which had been set to go into effect on Sept. 29. A “comprehensive review” of the new rules is now part of the House of Representatives’ bill, titled Investing in a New Vision for the Environment and Surface Transportation in America Act (INVEST in America), proposed by Transportation and Infrastructure Chairman Peter DeFazio, D-Oregon. The bill includes $319 billion for highways and 12
July & August 2020
infrastructure, including fixing nearly 50,000 structurally compromised bridges across the nation. The bill represents “the largest highway legislation in history” and nearly doubles a similar $287 billion bill recently introduced in the Senate. The bill would provide $4.6 billion over five years to the FMCSA, part of which would be used for a Large Truck Crash Causal Factors Study. It would offer incentives for reducing emissions related pollution and increase the funding for charging stations for zero-emission vehicles. The bill would also provide $250 million for truck parking projects. The legislation, if passed, would require a delay in the HOS final rule until 60 days after the submission of a “comprehensive review of hours of service rules and the impacts of waivers, exemptions, and other allowances that www.punjabitruckingusa.com
INDUSTRY NEWS
INVEST Act Would Spend $494 Billion on Infrastructure, Delay HOS Final Rule
limit the applicability of such rules.” The new HOS rules would have made four significant changes for truckers including increasing safety and flexibility for the 30-minute break rule. It would modify the sleeper berth exception by allowing drivers to split the required 10-hours off duty into two periods, an 8/2 split or a 7/3 split with neither period counting against a driver’s 14-hour driving window. It would modify the adverse driving conditions exception by extending the time during which driving is permitted by two hours. And, it would change the short-haul exception available to certain commercial drivers by extending the driver’s on-duty period from 12 to 14 hours and extending the distance limit from 100 air miles to 150 air miles.
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Reactions to the House proposal from industry stakeholders were mostly positive. Chris Spear, American Trucking Associations President, and CEO said in a statement, “This draft legislation contains significant investment in our country’s roads and bridges and approaches highway and truck safety from a data-driven perspective. And while we may not agree on every provision therein, this is a real and commendable step on the part of the committee to advance the process in the House and ultimately arrive at a negotiable solution with the Senate.” Republicans, however, pointed out the bill would need to have their input, saying that transportation-related issues have always been bipartisan. But, since infrastructure has become an urgent priority in recent years, a compromise between House Democrats and Senate Republicans should be on the horizon.
July & August 2020
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INDUSTRY NEWS
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July & August 2020
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iek frweIvr dI khwxI suxI ijs ƒ qkrIbn kùJ GMitAW qoN bwhr rihx dy bwvjUd iek shUlq ivc 6 GMty leI nzrbMd kIqw igAw sI[ frweIvr ƒ ikhw igAw sI ik pwrk krn leI aus kol sur`iKAq jgHw hovygI jy ausƒ do GMitAW qoN vI izAwdw dyrI ho geI[ auh pwrikMg sQwn Aqy aus dy Awpxy GMitAW dI BrpweI krn dI Xogqw kdy vI sMpUrn nhIN hoeI[ aus frweIvr dy PlIt dy mwlk ny mwrtInyz ƒ ikhw, “iSprz dy mwlkW ƒ pUrw Bugqwn krn dI zrUrq hY Aqy nw ik isrP $25 pRqI GMtw nzrbMdI leI[“ mOjUdw AYP.AYm.sI.AYs.ey dPqr AwP ienPorsmYNt AYNf kMplweIAYNs fwierYktr jo fI loryNjo dw mMnxw hY ik pihlI vwr jbr inXm ny eyjMsI ƒ ie`k vpwrk frweIvr duAwrw “ie`k iSpr jW pRwpq krn vwly aùqy AiDkwr lwgU krn dw AiDkwr id`qw”[ iesdy nwl hI, pihlI vwr, jbr inXm ny frweIvrW ƒ CotIAW XwqrwvW dy dOrwn nyVly sur`iKAq pwrikMg sQwnW qy jwx dI AwigAw id`qI hY Aqy iSprz jW pRwpœkrqwvW, tr`k stwpW jW hor AsuivDwjnk siQqIAW dy duAwly GuMmx leI[ pr frweIvr, iSprz jW pRwpœkrqwvW dw vI iSkwr ho skdy hn jo ieh DmkI idMdy hn ik pYisAW dy
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Bugqwn ƒ roikAw jweygw jykr frweIvr iSpr / pRwpœkrqw leI cIzW ƒ vDyry PwiedymMd bxwaux leI inXmW dI aulMGxw nhIN krdw[ kuJ frweIvrW ny AYcEAYs dI aulMGxw krn qoN ienkwr krn qoN bwAd vI shUlqW qoN bwhr iljwey jwx dI Kbr id`qI hY[ frweIvrW ƒ Xwd idvwieAw jWdw hY ik jy aunHW ƒ AijhI siQqI dw swhmxw krnw pYNdw hY ij`Qy aunHW ƒ inXmW dI aulMGxw krn leI mjbUr kIqw jw irhw hovy, qW aunHW ƒ qurMq aus iekweI ivrùD iSkwieq drj krnI cwhIdI hY jo aunHW ƒ iksy AYP.AYm. sI.AYs.ey inXmW dI aulMGxw krn leI kihMdI hY[ A`j q`k, izAwdwqr iSkwieqW kYrIArW dy ivrùD hn pr fIlorynzo dw kihxw hY ik frweIvrW ƒ ies g`l dw iDAwn r`Kxw cwhIdw hY ik auh iksy kwrobwr dy ivrùD iSkwieqW vI kr skdy hn BwvyN auh iek XU.AỲs.fI.E.tI. nMbr nhIN r`Kdw jW AYP.AYm. sI.AYs.ey EpryitMg AQwrtI r`Kdw hY[ kuJ audXogW dy ih`sydwr suJwA idMdy hn ik aunHW iSprz Aqy kYrIArW dy nwm dI ie`k jnqk sUcI jo frweIvrW ƒ inXmW dI aulMGxw krn leI mjbUr krdy hn, ƒ kMpwiel krnw cwhIdw hY Aqy swry PlIts Aqy frweIvrW leI aupl`bD krvwauxI cwhIdI hY[
July & August 2020
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jdoN ik PPP krizAW ƒ ishq sµktkwl dOrwn qrjIh id`qI jWdI hY
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July & August 2020
jdoN ik PPP krizAW ƒ ishq sMktkwl dOrwn qrjIh id`qI jWdI hY, Coty PlIts Aqy mwlk-sMcwlkW ƒ hor auDwr dyx dy ivklpW bwry jwgrUk hoxw cwhIdw hY[ kOvIf -19 mhWmwrI dy kwrn hoey AwriQk St fwaun nwl, ijs kwrn pRBwivq hoey Coty PlIts Aqy suqMqr mwlk-cwlk krzy nwl jUJ rhy hn ikauNik aunHW dy BwVy dI mwqrw G`t geI hY Aqy spwt ryt G`t gey hn[ ^wskr bhuq swrIAW irtyl dIAW cIzW lY jwx nwl ijnHW ƒ ik zrUrI qOr qy nhIN dyKieAw jWdw[ vDyry krjy nwl nij`Tx vyly ienHW kMpnIAW Aqy suqMqrW ƒ aunHW dy ivklpW bwry jwxU hoxw cwhIdw hY[ auDwr lYx dw sB qoN rvwieqI Aqy sB qoN vDIAw qrIkw iek kRYift lweIn dy rUp iv`c iek bYNk qoN lYxw huMdw hY[ drAsl, CotIAW tr`ikMg kMpnIAW ƒ dyx vwly v`fy krzy kRYift dIAW lweInW hn[ mhWmwrI qoN pihlW, pMj swlW dI imAwd dy dOrwn lgBg 11% dy ihswb nwl pRqI mhInw AdwiegI drW $100,000 q`k dIAW lweInW ho skdIAW sn[ mwrc dy AKIr iv`c PYfrl kyArz AYkt dy pws hox qoN bwAd ieh krzy izAwdwqr Coty kwrobwr pRbMDn dy pycYk pRotYkSn pRogrwm (PPP) duAwrw auplbD huMdy hn[ ies swl hux q`k, PPP duAwrw 25% qoN v`D krzy id`qy jw cùky hn[ ieh krizAW ƒ qrjIh id`qI jWdI hY ikauNik aunHW kol muV
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AdwiegI leI vDIAw SrqW hn[ ie`k vDyry suivDwjnk ivklp mrcMt kYS AfvWs ho skdw hY[ Aijhy AfvWs dw Bugqwn pRwpqI XogqwvW nwl juiVAw huMdw hY[ ies leI ieh qknIkI qOr qy krzy dy qOr qy nhIN dyiKAw jWdw hY Aqy Cy qoN 12 mhIinAW iv`c AdwiegI kIqI jw skdI hY[ ikauNik muV AdwiegI pRwpqIXog pRqISq dy ADwr qy hY, ies leI AfvWs pRdwqwvW ƒ iv`qI qOr qy Xogqw pUrI krn leI PlIt jW mwlk-Eprytr dI zrUrq nhIN huMdI hY Aqy muV AdwiegI leI id`qy smyN dI mwqrw iv`c lckdwr huMdy hn[ pYsw Aksr idnW dy AMdr auplbD kr id`qw jWdw hY[
ienvoies ƒ vycx dI AwigAw idMdI hY[ ies dI bjwey, jy gwhk AwpxIAW AdwiegIAW qoN ifPwlt huMdy hn jW Bugqwn krn ivc dyrI krdy hn, Gwty PYktr duAwrw Absorb kIqy jWdy hn, ijs nwl kwrobwr pRBwivq nhIN huMdw[
AfvWs dw ie`k sB qoN v`fw Gwtw, hwlWik, ieh hY ik drW aùcIAW huMdIAW hn Aqy bYNkW duAwrw lwgU kIqIAW geIAW Awm slwnw pRqISq drW dy mukwbly nhIN huMdIAW[ auh tr`k frweIvr jo ieh krzy lYNdy hn auh mrcMt ƒ Awpxy KwiqAW ivcoN rwq ƒ pYsy kFvwaux dI AwigAw idMdy hn Aqy jy koeI ifPwlt huMdw hY qW aunHW dy AiDkwrW ƒ muAwP krn dI sihmqI idMdy hn[
jdoN hor ivklp AsPl ho jWdy hn, qW krzy dI iekjùtqw Coty PlItW Aqy mwlk-sMcwlkW leI rwhq pRdwn kr skdI hY[ ie`k eykIikRq krzw dubwrw Bugqwn leI G`t drW Aqy lMmy smyN dIAW SrqW pRdwn kr skdw hY[ jo Aijhy krzy dI mMg kr rhy hn aunHW ƒ AwpxI ivSyS siQqI leI sB qoN vDIAw iksm dy krzy inrDwrq krn dI zrUrq hY[ ieh ivklp aunHW ƒ AwkriSq kr skdw hY ijhVy PPP krzy leI Xog nhIN hn[
ies qoN ielwvw, dyr nwl AdwiegI krn vwly zurmwny bhuq izAwdw ho skdy hn Aqy kuJ CotIAW kMpnIAW dw kihxw hY ik, KpqkwrW duAwrw vrqI jWdI qnKwh krzy dI qrHW hY , auh bkwieAw rkm vwps krn leI Aiqirkq AfvWs dI iek byAMq lVI ivc Ps jWdy hn[ PYfrl rYgUlytrW dw doS hY ik AfvWs pRdwn krn vwly keI vwr Awpxy smJOiqAW iv`c imslIifMg jwxkwrI dI vrqoN krdy hn[ iek hor ivklp nwn rIkwrs PYkitRMg dI cox krnw hY[ nwn rIkwrs PYkitRMg ie`k kMpnI ƒ ibnW iksy AdwiegI Awpxy
vpwrI qr`kI dy ault, PYkitRMg isrP pYsy pRdwn krdI hY ikauNik ienvoies AwauNdy hn Aqy bhuq swrw pYsw nhIN idMdy[ PYkitRMg dIAW drW vI Awm qOr qy AfvWs nwloN bhuq G`t huMdIAW hn, 4-6% qoN lY ky, Aqy vDIAw PYk†rz zurmwny nhIN lYNdy[
pr, jy iekjùtqw AsPl ho jWdI hY, qW ieh smW Aw skdw hY ik iek Xogqw pRwpq AtwrnI ilAwieAw jwvy jo krzy dI ktOqI bwry g`lbwq kr skdw hovy[ bdiksmqI nwl, AtwrnI AijhI syvw leI 20% vsUlxgy, pr jy auh krzy ƒ 40% q`k Gtw skdy hn qW ie`k krzdwr ijs kol $100,000 dw bkwieAw hY, kùl krzy ƒ Gtw ky, $60,000 kr skdw hY[ krzw rwhq dw ieh rUp, hwlWik, krYift skorW qy nkwrwqmk qOr qy pRBwv pweygw Aqy Biv`K dIAW auDwr lYx dIAW zrUrqW nwl smJOqw krygw[ krzy qoN Cutkwrw pwaux dy dUjy rUpW iv`c in`jI krzy Swml hn ijvyN ik 401 (k) qoN irx jW irtwiermYNt syivMg pRogrwmW jW kRYift kwrfW qoN krzy[ ie`k in`jI lon lYxw Aksr iehnW ivklpW iv`c G`t qoN G`t byArwmI ho skdw hY, pr krzw lYx vwilAW ƒ lon dIAW SrqW ƒ ilKq iv`c r`Kxw inScq krnw cwhIdw hY Aqy ies ƒ bYNk lon vWg gMBIrqw nwl lYxw cwhIdw hY[ irtwiermYNt bcq jW kRYift kwrf qoN auDwr lYx dy ivklp hn jo zurmwny Aqy aùc ivAwj drW kwrn pihlW auqwry jwxy cwhIdy hn[ irtwiermYNt pRogrwmW nwl, iek krzw lYx vwly qy 10% tYks l`g skdw hY jy aumr 59 swl qoN G`t hY[ pr, jy pMj swlW dy AMdr-AMdr AdwiegI kIqI jWdI hY, qW zurmwny muAwP kIqy jWdy hn[ kRYift kwrfW nwl krzw lYx vwly ƒ kRYift sImw Aqy muV AdwiegI krn dI Xogqw dw mulWkx krnw cwhIdw hY[ kRYift kwrf aùpr auDwr lYxw Aqy muV AdwiegI krnw Aksr kRYift skor vDwaux dw iek vDIAw qrIkw huMdw hY[ AwKrI ivklp bYNkrUptsI dwKl krnw hY[ bYNkrUptsI dy do rUp AiDAwie 11 iv`c hn, jo krzy ƒ pCwxdy hn, Aqy AiDAwie 7 jo jwiedwd Gtw ky krzy qoN Cutkwrw pwauNdw hY[ 11 vW AiDAwie bYNkrUptsI muSikl hY ikauNik ieh mihMgw Aqy smW Krc krn vwlw, mhIinAW jW keI swlW q`k vI ho skdw hY[ pr, AiDAwie 11 ƒ AiDAwie 7 nwloN qrjIh id`qI jw skdI hY ikauNik ieh kMpnI ƒ lYxdwrW nwl nij`Tx leI vDyry smW idMdw hY[ Coty kwrobwrI mwlk vpwrI AfvWs krzy nwl jUJ rhy ho skdy hn pr auh bYNkrUptsI qoN swvDwn ho skdy hn ikauNik lYxdwr iksy krzdwr dI jwiedwd qy lwiesYNs lY skdy hn ijs iv`c tr`k jW Gr Swiml ho skdw hY[
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July & August 2020
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INDUSTRY NEWS
Aperia’s Halo Pro+ Program Now Available Without Upfront Costs
T
ire inflation experts Aperia Technologies Inc. has responded to challenges created by the coronavirus pandemic by making it more convenient for fleets to get tech support for their truckers without a down payment. Aperia’s Halo Pro+ program allows users to cancel after a year with monthly fees automatically waived. In a press release, the Burlingame-based company said, “As a company that cares deeply about the success of our fleet
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July & August 2020
customers and industry as a whole, and understands the vital role the trucking industry plays in delivering essential services and goods across the United States, our No. 1 priority is to help them succeed during these challenging times.” Considered by many analysts as the state of the art in truck inflation systems, Aperia’s Halo automatically keeps truck tires from falling below optimal tire pressure. It is part of Halo Connect, introduced last year, which is a connectivity platform
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that gives fleets the ability to diagnose and eliminate unplanned operation delays with predictive analytics. According to the American Trucking Associations, under inflated tires are one of the major causes for truck downtime. They estimate that breakdowns happen every 10,000 miles and tire pressure is often the culprit. Not only does proper tire pressure help avoid breakdowns, but it is also a key to fuel efficiency. Aperia’s website says “By decreasing tire rolling resistance, properly inflated tires will increase your MPG by 1.4% on average. This can lead to savings of up to $1,000 a year per tractor-trailer.
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July & August 2020
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INDUSTRY NEWS
Truck Stop Association Now Opposes Electric Vehicle Charging Station Provision of New Infrastructure Bill
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$494 billion federal infrastructure bill which once had broad support from the trucking industry now faces opposition from a variety of trucking organizations with NATSO, a group representing the nation’s truck stops and travel plazas, now adding their voice to a chorus of dissent against the bill which is making its way through the Democratic-controlled House of Representatives. NATSO is at odds with an amendment to the bill which would allow charging stations for electric vehicles to be established at interstate rest areas instead of partnering with private businesses such as travel plazas which are already investing in electric fuel. Lisa Mullings, president and CEO of NATSO, said, “The House reauthorization bill passed last night endangers the goals that our industry established in our collaboration with one of the nation’s largest electric vehicle charging vendors. We simply cannot support a bill that prioritizes state monopolies and utilities at the expense of private businesses.” NATSO’s opposition comes on the heels of the OwnerOperator Independent Drivers Association’s objections over a proposed increase of minimum liability insurance for commercial drivers from the current $750,000 to $2 million. Another point of opposition from both trucking sector stakeholders and Republicans in the House was the Democrats postponement of the Federal Motor Carrier Safety Administration’s final hours-of-service rule which had been set to go into effect on Sept. 29. Yet another amendment to the bill is a “dry bulk weight tolerance” provision which will allow dry bulk carriers to add 10% more weight than allowed per axle in an attempt to compensate for shifting cargo loads. The bill is now moving to the floor of the House and will be voted on by the full chamber at some point within the next two weeks. Then it will move to the Republicancontrolled Senate where it is sure to face further changes. The Senate had originally proposed a $287 billion bill last summer, so a compromise and several revisions are certain to follow. 20
July & August 2020
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July & August 2020
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INDUSTRY NEWS
Pot Use Outpaces Other Drugs in First Clearinghouse Data Release
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ith 33 states now having some form of legalized marijuana—either recreational or medical—it should come as no surprise that findings from the brand new federal Drug and Alcohol Clearinghouse show that positive tests for marijuana far exceed any other drug, according to data released by the Federal Motor Carrier Safety Administration (FMCSA). The data also reports the number registrations, queries, violations and drivers in the return-toduty process. More than 10,000 positive tests for marijuana were recorded while the next highest count was for cocaine with slightly more than 3,000 positives, a 3-1 margin. The clearinghouse is a digital database which tracks commercial driver’s license holders who have positive tests for alcohol or drugs or have refused to take a test. It began recording data as early as last September. Analysts say the statistic is alarming and indicates that pot is the drug of choice for a small number of drivers. The Trucking Alliance, which advocated for the clearinghouse and supports hair testing for drugs warns that the number of positive tests will go up and that the industry will need to replace thousands
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July & August 2020
of drivers who can’t resist temptation with those that are drugfree in order to make roads safer. Among the potential reasons for such a large number of positive tests is that CBD related products, such as oils which don’t provide a high, can also cause a driver to fail a test even though CBD manufacturers deny their products will render a positive result. FMCSA officials say a driver claiming they only used a CBD product will not be considered an acceptable explanation and will still result in adverse consequences for the driver. Marijuana and CBD oil can stay in a person’s system for about 30 days. The more than 20,000 drivers who tested positive represents only a small percentage of the 356,000 limited queries and more than 528,000 full-employment queries that have been made since the clearinghouse opened in January. There are, however, only about 115,000 registered trucking related employers in the database along with 35,000 owneroperators while there are nearly a million employers and owneroperators in the U.S. at this time. FMCSA has stressed that owner-operators are also subject to clearinghouse requirements and must register as soon as possible. www.punjabitruckingusa.com
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July & August 2020
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INDUSTRY NEWS
fYmlr ny swry AYkstYNff ieMjn vwrMtI gwhkW leI AYkstYNff nYkst kvryj ivklpW dw ivsQwr kIqw hY
pihlW ieh isrP kuJ gwhkW leI aupl`bD sI, pr hux fYmlr tr`k nOrQ AmYirkw (DTNA) AYkstYNff nYkst pRogrwm inrmwqw dI AYkstYNff ieMjx kvryj vwrMtI dy swry p`DrW leI ie`k ivklp hY[ AYkstYNff nYkst pRogrwm iek vwrMtI hY jo gwhkW ƒ OEM p`Dr dy kvryj dy s`q swlW jW 750,000 mIl q`k vDwaux dw ivklp idMdI hY[ AsIN jwxdy hW ik iek gwhk dw tr`k kyvl iek vwhn hI nhIN huMdw - ieh aunHW dI rozI rotI hY, DTNA dy kwrjkwrI pwl romngI ny ikhw “swrIAW AYkstYNff kvryj XojnwvW leI AYkstYNff nYkst Xogqw KolHx nwl swfy gwhkW kol hux aunHW dy AptweIm Aqy iv`qI sur`iKAw dI r`iKAw leI vDyry ivklp hn[ QoVHI ijhI vDyry mn dI SWqI bhuq lMbI jw skdI hY, ^wskr Ajoky smyN iv`c[”
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July & August 2020
vDyry Xogqw dy nwl, DTNA iek AYkstYNff nYkst ivklp vI pRdwn krdw hY, ijs leI fIzl pwritkulyt iPltr (DPF) srivs AYkscyNj dI zrUrq vI nhIN huMdI[ gwhk vwrMtI ƒ DPF AYkscyNj dy nwl jW ibnHW iesdy KrId skdy hn[ gwhk AwpxI mOjUdw vwrMtI ivc AYkstYNff nYkst ƒ iek swl dy AMdr jW AwpxI imAwd dy 120,000 mIl dy AMdr joV skdy hn Aqy vDyry AYkstYNff nYkst pYkyz iv`c vI ApgRyf kr skdy hn[ AYkstYNff nYkst pRogrwm leI vDyry jwxkwrI Aqy kvryj dIAW pUrI SrqW leI, gwhkW ƒ sQwnk PrItlweInr jW vYstrn stwr fIlr nwl sMprk krnw cwhIdw hY[
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INDUSTRY NEWS
Autonomous truck market expanding across U.S. and World
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July & August 2020
S
afety, efficiency and cost effectiveness are all factors driving the ongoing semi-autonomous truck revolution. It is estimated that the number of these trucks on the road will rise to more than 3.2 million by 2025 from just under a million this year. North America, where much of this new technology is being developed, will be the largest semi-autonomous truck market in the world. U.S. companies such as Embark, Plus.ai, Torc Robotics, TuSimple and Waymo have made major strides in developing autonomous vehicles during the last few years. Retail goliath Amazon has also thrown its hat into the autonomous ring with recent investments in self-driving car startups Aurora Innovation and Zoox. Amazon is particularly interested in autonomous last-mile delivery trucks which can save up to 40% in total shipping costs. Amazon is already delivering packages with autonomous robots in some areas of the U.S.
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Autonomous delivery will potentially make things easier for companies such as Amazon as the U.S. continues to deal with the largest outbreak of the COVID-19 pandemic in the world because deliveries can be made without human contact. Many aspects of the new technology are appealing, including safety. Self-driving trucks can cut down on the number of road accidents because these vehicles always follow traffic rules and keep a safe distance from other vehicles. Not only safety, but also traffic congestion could be a benefit from more autonomous vehicles on the road. Another major factor driving the autonomous market is the shortage of drivers in the trucking industry. Analysts predict that 160,000 driver positions will go unfilled in the next ten years. Of course, savings in delivery and transportation costs are another primary reason why the autonomous truck market is booming. In addition, the industry is also hungry for modern technology and trucks which are rich in convenience and time saving features. At this point, most trucks are Level 1 semi-autonomous with driver assistance technology which can control either steering or acceleration and deceleration. Some on the road are deploying Level 2 automation with the complete ability to control steering and acceleration. Level 3 technology is being currently tested and would automate all aspects of driving while a truck was on the highway. Level 4, also in testing phases, would provide complete automation in limited environments with a driver present. Level 5 (prototypes under development) would be totally self-driving with no need for a driver. In the U.S., major car manufacturers such as Ford and General Motors are already
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equipping their new pickup trucks with advanced semiautonomous features. Although at this time the U.S. is the largest market for the new technology, experts say Asian countries such as South Korea, Japan and China have been developing their own advanced self-driving vehicles. In fact, Japanese-based UD Trucks has recently unveiled a truck with Level 4 autonomy.
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July & August 2020
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July & August 2020
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INDUSTRY NEWS
Controlled Substances Testing Waiver for Pre-Employment Extended by FMCSA
I
n order to take pressure off of trucking companies as they return to normal operations and start to hire back drivers who have been sidelined during the COVID-19 pandemic, the Federal Motor Carrier Safety Administration (FMCSA) has extended its waiver for specific pre-employment drug testing requirements until Sept. 30.
country shut down because of the pandemic.
In a statement regarding the waiver extension, the FMCSA said, “In response to the COVID-19 public health emergency, many employers have imposed layoffs, furloughs or otherwise temporarily removed employees from performing safety-sensitive functions, resulting in their removal from the random pool for controlled substances and alcohol testing for a period greater than 30 days.”
• A driver participated in a controlled substances testing program that meets requirements within the previous 30 days.
Back in March, the FMCSA issued “reasonable flexibility” guidance for carriers in the testing of their drivers because the pandemic was causing an undue burden on these firms and drivers. Areas of concern included pre-employment testing, random testing and post-accident testing. The FMCSA also said, “The administrative and cost burdens of pre-employment testing for furloughed drivers outside the random testing pool for more than 30 days falls on motor carrier employers at the very time they are attempting to return to expanded levels of operation.” Federal regulators contend that this response is appropriate and will help in the economic recovery of carriers who were most harshly affected when the 30
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The waiver indicates that if a pre-employment test for controlled substances cannot be administered, a potential employee cannot be allowed to drive until a negative test is confirmed unless one of the following exceptions applies:
• A driver was tested for controlled substances within the past six months from the date of their application. • A driver participated in the random controlled substances testing program for the previous 12 months from the date of the application. • Another element of the exception includes when a carrier guarantees that a prospective driver’s past employers have no knowledge of a violation for controlled substances. The waiver also requires carriers to: • Verify that the driver participated in the controlled substances testing and had no recorded violations for controlled substances-use regulations within the previous six months. • Comply with the Drug and Alcohol Clearinghouse pre-employment query requirement (although some exceptions are being made for the use of Clearinghouse).
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• Not allow a driver to perform a safetysensitive function if results of a Clearinghouse query show the driver is prohibited from doing so. • Finish mandatory investigations and inquiries required by federal regulations. • Inform FMCSA within five days of an accident involving a driver operating under the terms of the waiver specifying that the driver was using the waiver.
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INDUSTRY NEWS
Loadsmart and Opendock combine to provide more efficient freight scheduling
F
reight matching startup Loadsmart will now partner with the cloud-based scheduling system Opendock to combine Loadsmart’s digital freight platform and Smart Scheduling technology with Opendock’s management software, giving shippers increased efficiency in load scheduling.
Opendock’s centralized dock management software enables us to remove friction and streamline the appointment scheduling process for our shared customers.”
This new integration, using artificial intelligence (AI), is sure to transform the inefficient and time-consuming manual process that used to be needed to book appointments.
Using AI to determine travel time and other issues, Loadsmart’s technology can now select and book the best possible appointment for a carrier. It will also reschedule an appointment if a driver has problems with weather or adverse road conditions.
Founded in 2014, New York-based Loadsmart utilizes AI along with hundreds of data points to automate truckload bookings. Arizona-based Opendock, founded in 2018, has aided thousands of warehouses to improve their logistics scheduling systems.
Opendock CEO Bob La Loggia said, “It’s impressive how [Loadsmart is] using technology to simplify and streamline what’s historically been a very complex and time-consuming process. With this partnership, we’re eliminating a traditional bottleneck that impacts efficiency and on-time service.”
“Shippers are increasingly looking for new ways to leverage technology to eliminate bottlenecks and improve the efficiency of their supply chains,” said Loadsmart CEO Ricardo Salgado. “The integration of our Smart Scheduling technology with
While phase one of the integration has been completed, the two companies will continue to expand their ability to provide AI based technology to make scheduling as easy as possible for carriers.
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Nikola goes public; slates 2021 for intro of battery-electric Tre cabover
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roviding more than $700 million in new investment, VectoIQ, a special purpose acquisition company, has announced a merger with Arizonabased Nikola Motors, a leading zero-emission semi-truck manufacturer. The merger comes as Nikola makes its stock market debut. In its first day listed on the Nasdaq exchange, Nikola (stock ticker NKLA) shares closed at $33.75 with a market value of $12 billion. Nikola has over 14,000 pre-orders for its high-energydensity battery and hydrogen fuel cell heavy duty trucks with future sales estimated to exceed $10 billion. Belgiumbased beer company Anheuser-Busch has ordered 800 trucks from Nikola, with hopes of becoming a leader in using non-polluting transportation to ship its product. The merger and debut listing made Nikola founder Trevor Milton a multibillionaire as he holds more than $3.5 billion of the company’s shares. Milton founded Nikola in 2016 with a vision to combine coverage for fuel, service and warranty. Milton believes that his model could
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eventually make five times as much money per truck as its leading competitors. Nikola’s initial zero-emission battery electric Class 8 truck, the Tre cabover, will begin production in Germany next year. The Tre will be based on Iveco’s S-WAY commercial platform. The trucks will first be introduced in Europe before coming to the U.S. Beginning in 2023, Nikola will manufacture a Class 8 truck with a hydrogen fuel cell battery for the U.S. market. In fact, the company will build a factory in Coolidge, Arizona, about halfway between Phoenix and Tucson. Nikola will use existing dealerships to promote and sell its trucks once they become available in the U.S. Since its inception, Nikola has drawn interest from fleet operators and investors, mainly because the company has developed a battery which produces four times more energy than existing lithium-ion cell batteries and will provide twice the range of other batteries while maintaining the same size and weight. Nikola also plans to build its own charging infrastructure.
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Shippers and Receivers Also Need to Abide by FMCSA Coercion Rule
A
mid allegations that brokers have been price gouging truckers during the coronavirus pandemic, at least one recent federal rule continues to protect truckers from unscrupulous shippers or receivers. The driver coercion rule, which went into effect in 2016, prohibits forcing drivers to operate a commercial vehicle when that operation would violate regulations, especially hours-of-service (HOS) rules. Although most violations of the rule are made by carriers, shippers and receivers, even those who had not previously been under the purview of the Federal Motor Carrier Safety Administration (FMCSA), could now be fined and held accountable.
FMCSA rules which drivers cannot be coerced into violating include: HOS rules, equipment inspection, repair and maintenance regulations, intermodal roadability regulations and load securement regulations. A violation occurs when a threat is made to withhold business, withhold employment opportunities or permit any negative employment action against a driver. The advent of the coercion rule was the first time the FMCSA could use their authority to investigate and levy fines against shippers and receivers who were not already under their jurisdiction for coercing drivers into breaking rules. In 2018, then FMCSA Administrator Ray Martinez listened to the story of a driver who was detained at a facility for six hours despite being nearly out of hours. The driver was told he would have a safe place to park if he was delayed by more than two hours. That parking spot and his ability to replenish his hours never materialized. The fleet owner for that driver told Martinez, “Shippers need to be held to the fire and not pay just $25 an hour for detention.�
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Current FMCSA Office of Enforcement and Compliance Director Joe De Lorenzo believes that for the first time the coercion rule gave the agency “enforcement authority over a shipper or receiver that causes violation of regs� by a commercial driver. Also, for the first time, the coercion rule allowed drivers to move to nearby safe parking locations during short journeys and moves around shippers or receivers, truck stops or other inconvenient situations. But drivers can also be victims of shippers or receivers who threaten to withhold payment if a driver will not violate rules to make things more advantageous for the shipper/receiver. Some drivers have even reported being escorted from facilities after they refused to violate HOS.
Drivers are reminded that if they encounter a situation where they are being coerced into violating rules, they should immediately file a formal complaint against any entity that asks them to violate any FMCSA rules. To date, the broad majority of complaints have been against carriers but DeLorenzo says that drivers should be aware that they can also make complaints against a business even if it doesn’t carry a USDOT number or has FMCSA operating authority. Some industry stakeholders suggest that a public list of those shippers and carriers who have been known to attempt to make drivers violate rules should be compiled and made available to all fleets and drivers.
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Very Few Were Prepared for COVID 19
A
s restrictions are easing for the short term, before a possible second wave of COVID 19, it’s time to reflect on how well prepared you were for this pandemic. Statistics in the United States show that only a small percentage of the population was financially prepared and did not seek government assistance. That is not a good thing. The vast majority were unprepared and this is a humbling notion.
clients to have 6 months or more in savings in times of emergency. Obviously this was not the case as I had countless calls looking for payment deferrals on trucks, trailers, and cars. I hope this taught everyone the importance of saving. Those who saved and had money faired a lot better than those who did not, and are continuing to fair better.
The other thing showing lack of preparation was panic buying. I personally took an emergency preparedness course No one can predict that they will lose their job. Most jobs at university. That course prepared me for not only a pandemic, were lost in March and April and immediately people were but also countless other situations such as earthquakes, tsunami, tornados, hurricanes, or even war. For me, there was hit with financial hardship. This means the greater part of the population is living paycheque to no need to hoard supplies and panic buy because I already had the supplies. I paycheque. One missed paycheque and nothing to fall back on. I have did help those who were less prepared PASH BRAR always recommended my trucking by sharing my supplies. I know not
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everyone took a course as I did, but a good rule of thumb taught by my mom was, “If it’s on sale buy a few.” That’s exactly why I had and still have many months of supplies in my home. I’m known to yell at people visiting my home who grab a water bottle from my fridge. I literally yell, “Put that water DOWN!! That is my EMERGENCY water!” I keep flats of water for a possible emergency and when the date will expire soon, I replace it and allow everyone to drink the older bottles before expiration. In a pandemic, we didn’t need the water, but I was still prepared for any other major catastrophes. We should all be prepared at all times.
We don’t know when or if the second wave of coronavirus will hit us, but try to be better prepared for it and also be ready for any disaster. Save your money and keep expenses low. If you don’t NEED it, don’t buy it. We all like nice things, but when a vaccine is tested and approved, then it will be the time to have a well-earned splurge. Please continue to social distance, be patient, help one another, and eventually, we’ll have stories to share with future grandkids of, “Back in 2020 I survived Covid-19.”
A possible second wave could be hitting the world in a few months. Historically every past pandemic has had a second wave. I hope everyone continues to social distance and this second wave does not occur, but we don’t know as of yet. Will people be better prepared for the potential second wave? I honestly don’t think so. What lessons have been learned from the first wave will not be correctable in only a few months. No one will have much time to save or prepare. It’s unfortunate, but the strong with money survive. It reminds me of a song by Stevie Ray Vaughan, Crossfire. A lyric in the song is, “Money’s tight, nothin free. Won’t somebody come and rescue me.” I think the lyrics are very fitting in the current environment. Stevie Ray Vaughan was killed in a helicopter crash 30 years ago and his music is still very relevant in these times. For now, before a possible second wave hits, everyone needs to do a few things. First, assess your bank accounts and do a budget. Spend as little as possible until there is a vaccine because we don’t know how long that will be. Every penny counts. Also, look at your supplies at home. Look at the things people rushed out to buy and stores were low on. Do you really need these things? Many made do without them. So only keep the items you actually used. Don’t go out and buy a lot and hoard it, but if it’s on sale and you use it, then maybe buy a few. Again save your money by not paying full price.
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INDUSTRY NEWS
A
rguing that both economic and environmental benefits will follow, a variety of trucking industry stakeholders are asking the government to suspend the federal excise tax (FET) on new truck purchases. Groups including several state trucking associations just completed the “Suspend the FET Week” movement which targeted Washington D.C. politicians. In a letter sent to top congressional leaders, including House of Representatives Speaker Nancy Pelosi, D-California, and Senate Majority Leader Mitch McConnell, R-Kentucky, these groups are requesting a suspension of the 12% excise tax on new trucks through next year. In a letter first sent in April and recently updated, the severe drop in commercial truck sales—now at a 25-year low—is provided as evidence that it is time to make it easier to buy new trucks. Not only would a suspension assist in restarting an economy badly hobbled by the COVID-19 pandemic, but stakeholders argue that with the purchase of new trucks, emissions will drop, which is a major goal of many U.S. states including California which has an ongoing plan to significantly reduce carbon in the next ten years. “To jump start the economy after the pandemic, a suspension of the burdensome FET, which increases the cost of new heavy-duty trucks and trailers by $22,000 on average, would immediately spark the purchase of heavy-duty trucks and trailers,” the letter says. “In turn, this would help save or bring back the livelihoods of the 7.8 million Americans employed in jobs related to trucking.” A brief from the group that organized “Suspend the FET Week,” argues that the technology in new trucks makes it imperative that the U.S. begins to get older trucks off the road in an effort to fight climate change. It is estimated that older trucks generate up to 60 times more emissions than just one modern truck manufactured within the last few years. The brief says, “Diesel engine improvements on trucks manufactured since 2010 have reduced carbon dioxide (CO2) emissions by 43 million tons, nitrogen oxide (NOx) emissions by 21 million tons, and particulate matter (PM) emissions by 1.2 million tons. Since 2010, new, more efficient diesel trucks have saved 101 million barrels of crude oil and 4.2 billion gallons of diesel fuel.”
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Suspension of FET would bolster economy, aid in fight against Climate Change www.punjabitruckingusa.com
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Since more than half of the trucks currently on the road are more than ten years old, the group argues that it is up to the government to make trucks cheaper because new trucks loaded with improved safety and environmental features can add up to $40,000 to the cost of a newer model. Unfortunately, no new legislation is currently on the docket to deal with the excise tax, although one congressman, Chris Pappas, D-New Hampshire, seems poised to introduce such legislation, hoping it would be part of any new COVID-19 legislation. In a letter to leadership, Pappas says, “The FET on heavy-duty trucks, first implemented to help fund World War I, is hitting truck sales hard during this pandemic. At 12%, this tax has grown to become one of the highest percentage excise taxes and adds approximately $21,000 to a vehicle’s cost.” Groups involved in this crusade include the American Truck Dealers Association, the National Automobile Dealers Association, the American Trucking Associations, the Truckload Carriers Association as well as several trucking manufacturers such as Cummins, Daimler and Navistar.
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INDUSTRY NEWS
Tesla to Ramp Up Production of Battery-Electric Semi
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ust as battery-electric truck manufacturer Nikola Motors has gone public, Tesla chief Elon Musk reportedly announced in an email to employees that his electric car company will begin its long-awaited production of the heavy-duty Semi truck. News of the decision sent Tesla stock soaring to over $1,000 as the news leaked to investors.
30,000 lbs. for a long range mile version. Our fuel cell should be 10,000 lbs. less.”
Analysts see a competition brewing between the two companies for dominance in the zero-emissions truck market. While no schedule has been released, Musk told his staff the company would “go all out” to begin production of its new truck.
Delays have plagued Tesla’s production of the Semi which had been originally slated to begin in 2019. Semis had even been seen on highways and rumors of an electric truck charging network swirled.
An influx of $700 million in investments to Nikola and the company’s initial public listing seem to have spurred Musk to action, despite having told investors in April that production of the Semi would not start until next year. In response, Nikola founder Trevor Milton said in a post on Twitter, “I love the competition! Tesla’s call to mass produce a semi is a good thing to Nikola’s business model no matter what. I hear their semi-truck weighs 27,000-
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Not only are Tesla and Nikola in a race to produce the best electric truck but are also locked in competition to put a zero-emissions pickup on the market. Nikola said it is already opening reservations for the Badger.
Several companies, including Anheuser-Busch, were interested in the Tesla Semi, but the beer manufacturer has recently ordered 800 hydrogen-electric powered trucks from Nikola. On its website, Anheuser-Busch said, “Thanks to this agreement with Nikola and other partners, Anheuser-Busch plans to convert our entire long-haul dedicated fleet to renewable energy-powered trucks by 2025.”
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INDUSTRY NEWS
While PPP Loans are Preferred During Health Emergency, Small Fleets and Owner-Operators Should be Aware of Other Lending Options
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ard hit by economic shutdowns caused by the COVID-19 pandemic, small fleets and independent owner-operators may be struggling with debt as the amount of freight they carry has dropped and spot rates have decreased, especially on carrying many retail items which have not been seen as essential. These companies and independents should be aware of their options when dealing with excessive debt.
A major drawback of advances, however, is that rates are high and not comparable to the usual annual percentage rates applied by banks. Truckers who take these advances agree to allow merchants to make automatic nightly withdrawals from their accounts and to waive their rights if a default occurs.
The most traditional, and best, form of borrowing is from a bank in the form of a line of credit. In fact, the large majority of loans to small trucking companies are lines of credit. Before the pandemic, lines could be up to $100,000 with monthly payment rates at about 11% over a five-year period. Since passage of the federal CARES Act in late March these loans are mostly available through the Small Business Administration’s Paycheck Protection Program (PPP). So far this year, more than 25% of loans have been made through the PPP. These loans are preferred since they have excellent terms for repayment. A more convenient option can be a merchant cash advance. Repaying such advances is linked with receivables so is not technically seen as a loan and can be repaid over six to 12 months. Since the repayment is based on a percentage of receivables, advance providers don’t need a fleet or owneroperator to financially qualify and are flexible in the amount of time allowed for repayment. Money is often made available within days. 44
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In addition, late payment penalties can become exorbitant and some small companies say that, like payday loans used by consumers, they get caught in an endless chain of additional advances to pay back money owed. Federal regulators allege that advance providers sometimes use misleading information in their agreements. Another option is to choose non-recourse factoring. Nonrecourse factoring allows a company to sell its invoices to a factor without having to absorb any unpaid invoices. Instead, if the customers default on their payments or are late in paying, losses are absorbed by the factor, leaving the business unaffected. Unlike merchant advances, factoring only provides money as invoices come in and do not supply a lump sum of money. Factoring rates are also usually much lower than advances, ranging from 4-6%, and the best factors don’t charge penalties. When other options fail, debt consolidation can provide relief for small fleets and owner-operators. A consolidated loan can provide lower rates and longer terms for repayment. Those seeking such a loan need to determine the best type of loan for their particular situation. This option may attract those that are not eligible for PPP loans. But, if consolidation fails, it may be time to bring in a qualified attorney who can negotiate debt reduction, especially for those who may find themselves underwater with merchant cash advances.
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Unfortunately, the attorney will charge 20% for such a service, but, if they can reduce the debt to 40% a debtor who owes $100,000 can lower total debt to $60,000. This form of debt relief will, however, negatively impact credit scores and compromise future borrowing needs. Other forms of relieving debt include personal loans, borrowing from 401(k) or retirement savings programs or from credit cards. Taking a personal loan can often be the least uncomfortable of these options, but borrowers should make sure to put the terms of the loan into writing and take it as seriously as a bank loan. Borrowing from retirement savings or a credit card are options with consequences which should be considered beforehand because of penalties and high interest rates. With retirement programs, a borrower can incur a 10% tax if under the age of 59. But, if repaid within five years, penalties are waived. With credit cards, the borrower should assess credit limits and ability to repay. Borrowing and repaying a credit card is often a good way to increase credit scores. The final option is to file bankruptcy. The two forms of bankruptcy are Chapter 11, which reorganizes debt, and Chapter 7 which relieves debt by liquidating assets. Chapter 11 bankruptcy is difficult because it can be expensive and time consuming, taking months or even years. But, Chapter 11 may be preferred over Chapter 7 since it gives a company more time to deal with creditors. Small business owners grappling with merchant advance debt may be wary of bankruptcy because creditors can take out liens on a debtor’s property which may include a truck or house.
July & August 2020
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INDUSTRY NEWS
Volvo Trucks Offers New Geotab Telematics Package for Fleets and Drivers Volvo Trucks North America has expanded its partnership with Geotab by offering Geotab Drive + Fleet for Volvo Trucks, which provides insights to fleet managers and drivers through a cloud-based platform. A professional driver changes duty status on the Geotab Drive app.
T
he new Geotab Drive + Fleet for Volvo Trucks is an expandable, cloud-based platform for fleet managers and drivers. Fully integrating the Geotab fleet management solution via factory-fit telematics hardware, the latest solution from Volvo Trucks eliminates the need for additional hardware installation on Volvo trucks. Geotab Drive + Fleet for Volvo Trucks is compatible with all 2015 and newer Volvo Trucks models powered by Volvo engines.
Fully expandable, Geotab Drive + Fleet for Volvo Trucks can help customers to better optimize their fleet while also helping to enhance productivity, improve driver safety and increase compliance and sustainability measurement. When using Geotab Drive + Fleet for Volvo Trucks, fleet managers can access activity reports, driver performance reports, delivery schedules and more, as well as monitor vehicle locations all through a simple, user-friendly dashboard. In addition, accurate data measurement can help reduce operating costs and environmental impact by improving fuel efficiency. Customers also have 24/7 access to the Volvo Trucks Uptime Center should they Paddains@gmail.com need any assistance with the platform.
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Geotab Drive + Fleet for Volvo Trucks includes Geotab Drive for Volvo Trucks, a cloud-based system that delivers accurate operator and vehicle logs in compliance with the federal Electronic Logging Device (ELD) mandates. Enabling drivers to easily record hours of service status and complete vehicle inspections from their smartphone or tablet, Geotab Drive for Volvo Trucks, launched in the fall of 2019, allows fleet managers to stay up-to-date with real-time access to information in the MyGeotab app, including detailed reports on driver logs, service hours and other alerts. www.punjabitruckingusa.com
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“As a leader in integrated data technologies for the trucking industry, Volvo Trucks is excited to provide the Geotab platform and its fleet management capabilities to our customers as part of the same hardware that drives our Remote Diagnostics and Remote Programming services,” said Ashish Sadhu, director, connected vehicle uptime services, Volvo Trucks North America. “Geotab Drive + Fleet for Volvo Trucks helps fleet managers and drivers work together to achieve a level of communication, compliance and productivity that is unmatched.” The Geotab platform provides additional functionality by leveraging data analytics and machine learning to help customers improve productivity and efficiency and offers hundreds of third-party data integrations and analytics options. “As a global organization committed to optimizing fleet management, Geotab is pleased to work with Volvo Trucks to expand our combined offerings to help ensure fleet managers have access to the data they need to be more productive and
efficient,” said Scott Sutarik, vice president of commercial vehicle solutions at Geotab. “Geotab Drive + Fleet for Volvo Trucks demonstrates how collaboration and integration is key to equipping businesses with the tools they need to help increase fleet optimization, improve driver safety and increase compliance and sustainability.” Volvo Trucks originally partnered with Geotab in 2016 in an effort to advance its Remote Diagnostics telematics package. In contrast to Wi-Fi or Bluetooth-based systems, Geotab’s cloud-based platform delivers the industry’s most reliable ELD data-capturing capabilities. “Volvo Trucks continues to look for advanced technology solutions to provide competitive advantages to our customers,” said Sadhu. “Geotab, as a global leader in commercial telematics recognized for delivering business-critical, datadriven intelligence, demonstrates the same commitment we do to innovation and systems integration to deliver measurable, positive impacts on fleet and driver performance.”
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INDUSTRY NEWS
U.S. Bank Introduces New Ways for Carriers to Manage Cash Flow
F
eatures recently introduced to U.S. Bank’s proprietary Freight Payment Platform will provide carriers with innovative new tools to manage and increase cash flow. U.S. Bank is a major payment processor and lender in the trucking industry and its website boasts it is “one of the highest rated banks in the world.” The two new features, Cash Manager and Quick Pay, allow carriers to pick and choose which of its invoices to “accelerate,” meaning present for payment early and which to put on hold. While accelerating payments is not new, the ability to choose which invoices to put forward first is a positive update to the U.S. Bank platform. “Now more than ever, carriers need ways to accelerate their cash inflows,” said John Hardin, General Manager, Transportation, Corporate Payment Systems, U.S. Bank. “At U.S. Bank, we continuously invest in innovative solutions that help our customers securely optimize their cash flow and streamline their operations. Our new Cash Manager dashboard and Quick Pay features offer carriers new ways to better inform their short- and long-term decisions and overall business strategies.”
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The new Cash Manager gives carriers insight into where their invoices are in the payment process, including submission, audit and final payment. Carriers will now be able to make informed decisions as well as having the ability to predict future cash flow with greater accuracy. The Quick Pay feature allows carriers to increase cash flow by choosing to be paid once an invoice is approved, potentially receiving payment by the next business day. Unlike “factoring,” U.S. Bank will only charge a “nominal” fee for acceleration. Hardin estimated that on a $1,000 invoice, the charge would only be about $17 or 1.7%. Factoring rates can run anywhere from 2.5% to 3.0%. Hardin pointed out that the bank’s goal was to target carriers who don’t like to “pay to get paid” with rates nearly half what a factor would charge. Hardin said some carriers may “see something out there that they can accelerate for a nominal fee to help them make payroll without getting hooked on a factoring solution.” Hardin also said the new features are part of a “multimillion dollar investment” the bank has made over recent years in improving its banking services to transportation related companies.
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INDUSTRY NEWS
Patrick Shannon Appointed President of VFS North America Region
V
olvo Financial Services (VFS) has announced that Patrick Shannon has been appointed president of the company’s North America region. In this role, he will be responsible for the business operations and financial performance for VFS in the U.S., Canada and Mexico. Shannon has over 30 years of experience in business operations and financial services, the majority of those with VFS and Volvo Group. He has held various senior leadership roles in sales, wholesale operations and risk management. He joined sister company Volvo Construction Equipment in North America as vice president and chief financial officer in 2009, and returned to VFS in 2012 as vice president and later, senior vice president, strategy and business
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development. Shannon’s most recent role was as senior vice president, risk and chief credit officer for VFS. “Shannon will be responsible for developing and maintaining relationships with Volvo Trucks’ customers and dealers, our Volvo Group business areas and partners in the region,” says Marcio Pedroso, president, Volvo Financial Services. “With his experience in working for the Volvo Group brand, and his long history at VFS, I am confident he will continue VFS’ successful growth and the strong support of our Volvo Trucks’ dealers and customers in these key markets.” Shannon holds a bachelor’s degree in Business Administration from Saint John’s University in Minnesota, and an MBA from Wake Forest University in North Carolina. He remains based in Greensboro, North Carolina, reporting directly to Pedroso.
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INDUSTRY NEWS
FMCSA Hours of Service Final Rule
F
MCSA’s top priority is safety on America’s roadways. That’s why the Agency is updating hours of service regulations to improve safety and increase flexibility for the nation’s commercial vehicle drivers. These updates to hours of service rules offer four key modifications to improve safety, and increase flexibility: The Agency will increase safety and flexibility for the 30-minute break rule by tying the break requirement to 8 hours of driving time without interruption for at least 30 minutes, and allowing the break to be satisfied by a driver using on duty, not driving status, rather than off duty. • The Agency will modify the sleeper-berth exception to allow drivers to split their required 10 hours off duty into two periods: an 8/2 split, and a 7/3 split—with neither period counting against the driver’s 14‑hour driving window. • The Agency will modify the adverse driving conditions exception by extending by 2 hours the maximum window during which driving is permitted. • The Agency will change the short-haul exception available to certain commercial drivers by lengthening the drivers’ maximum on‑duty period from 12 to 14 hours and extending the distance limit within which the driver may operate from 100 air miles to 150 air miles. The new rule would not increase driving time and would continue to prevent CMV operators from driving for more than 8 consecutive hours without at least a 30-minute change in a duty status.
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