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November & December 2019
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November & December 2019
3
FROM THE EDITOR Raman S. Dhillon
Another year is almost at its end and for most of us, 2019 has just flown by. With this year ending, Trucking is changing on a regular basis since ELD got introduced to the general trucking community. Several protests and roadblocks to halt the proposed ELD Mandate but the final implementation date arrived on Dec 16, 2019. At the same time, AB 5 is going to take place about 15 days after the ELD Mandate takes place. The trucking industry as we all know is going thru tough times. Several other rules & regulations are also taking place like the CARB mandate for a smog check for trucks, Seams like everything is happening at the same time. This is the time to take trucking seriously and start thinking about planning and bringing awareness in the trucking community. We need to consider trucking as a serious business because the way we are operating our businesses today is not a healthy way to conduct business. Maybe in the perfect world, the next administration will wake up and realize our industry needs help to
perform one of the most necessary services to our land and actually becomes a positive force on us. To go long ways we need to learn about new technology, software and other ways to save more money to the bottom line. From buying a truck and trailer to running a compliant company, takes a lot of time, courage and understanding. Trucking shows are a really great opportunity to learn and understand the changing face of the trucking industry. Last month we organized American Trucking Show at Cal Expo in Sacramento, CA. We as a team want to thank you to all our sponsors, vendors, visitors and volunteers for supporting us to put together a great show. In this last issue of 2019, our entire team wishes you a safe, relaxing, and enjoyable upcoming Holiday Season. As we approach the upcoming holiday season, make sure to spend some precious time with your loved ones. Wish you good luck for 2020. Stay safe on the road, share the roads, and keep on trucking!
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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November & December 2019
CIRCULATION MANAGER Ravi Dhillon
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November & December 2019
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INDUSTRY NEWS
CONTENTS American Truck Show ............................... 26-27
ARTICLES
Apex (Nextload) .......................................... 33
08
Automann ....................................................... 53 BF Goodrich Tires ...................................... 41 Big Rig Tires & Alignment ............................. 37 BP Lab Services ............................................ 24 BVD Petroleum ............................................ 23 Capitol Truck Lines Inc ................................ 30
14
kYlIPornIAw dy sYnytrW ny nvW ib`l pws kIqw jo ieMfIpYNfyt kwntRYktrW dI pirBwSw nUM bdl skdw hY
12
Clamp Guy ................................................... 21
Economy Slows But Consumers Still Spending
CVTR Inc ...................................................... 43 Doxa Lubes ................................................... 49 Ex-Guard ..................................................... 55 Gillson Trucking Inc. ..................................... 31 Golden State Peterbilt ................................... 03 Golden Land Trans. Insurance .................. 18
22
Jagdeep Singh Insurance Agency ................ 17 Jumbo Logistics ........................................... 25 Inland Group ................................................ 13 Kam-Way Transportation Inc .................... 39 Keep Truckin ................................................ 07 Legend Transportation Inc. ......................... 54 Lotus Financial Group ................................. 40
26
Maxx Printing ............................................... 35
Pape Kenworth ............................................. 10 Premier Business Lending ........................... 22 Primelink Express ........................................ 17 Sean Crisp & Associates Insurance Agency .. 45
40
Speedy Truck Wash Inc. ............................... 48 Sunshine Auto Care Inc. .............................. 44 TEC Equipment Dixon ......................... 28-29 TEC Equipment Lathrop ............................. 02 The Truck Stop .............................................. 47 Thermo King of Central California .......... 15 Triumph Business Capital ........................... 09
44
Truxlink .............................................. 22, 34, 46 Tulare Truck Wash & Repair Inc ......... 50 Utility Trailer Sales of Southern California .. 19 Utility Trailer Sales of Utah ....................... 05 Valley Truck & Trailer Sales .................... 39 Volvo Trucks ................................................ 56
6
November & December 2019
18 “Nuclear Verdicts” An Existential Threat To Trucking Industry
20 Other’s Misfortune Can Be Our Advantage
24
NAPTA ...................................................... 35, 51 Padda Insurance ......................................... 34
Connect with Us
52
TMf dy mOsm leI iqAwrI
36 How App-Based Long-Haul Trucking Looks to Improve Efficiency in the Trucking
38 ArQ ivvsQw G`t ho geI pr knizaUmr hwly vI Krc kr rhy hn
42 tr`k frweIvrW iv`c BMg dI vrqoN
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November & December 2019
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COVER ARTICLE
kYlIPornIAw dy sYnytrW ny nvW ib`l pws kIqw jo t`rikMg ieMfstrI iv`c ieMfIpYNfyt kwntRYktrW dI pirBwSw nUM bdl skdw hY
1
8 sqMbr ƒ, kYlIPornIAw dy gvrnr, gYivn inzom ny kwƒn ivc iek nvyN ib`l qy sweIn kIqy jo ik mzdUrW ƒ ieMfIpYnfYNt kMtrYktr vjoN pirBwSq krn leI s^q stYNfrf qih krdw hY[ AsYNblI ib`l 5, ijs ƒ eybI 5 vI ikhw jWdw hY, Agly swl 1 jnvrI qoN lwgU hovygw[ kYlIPornIAw lgBg 18 mhIinAW qoN ieMfIpYNfMt TykydwrW dy smJOqy ‘qy rok lgwaux dI koiSS kr irhw hY[ ies nwl kuJ gMBIr lwibMg, frwauxy kwgz sMpwdkI Aqy ivroD pRdrSn hoey[ hux jdoN nvW AsYNblI ib`l kwƒn ‘qy sweIn kIqw igAw hY, iesdw audyS krmcwrIAW nwl glq vqIrw Aqy kMm vwlI QW ivc Asmwnqw dI sm`isAw ƒ h`l krnw hY[ ieh kYlIPornIAw dI suprIm kort duAwrw ApRYl 2018 iv`c ley gey ie`k PYsly qoN bxI hY ijsny ieMmplwierW leI ie`k nvIN sKq pRIiKAw sYt kIqI hY[
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November & December 2019
suqMqr kwimAW ƒ krmcwrI dw drjw dyxw audyS hY[ hwlWik, ies iv`c lybr kost iv`c 20 Aqy 30 pRqISq q`k dw vwDw hox dw Anumwn hY[ tr`ikMg kMpnIAW ƒ hux ApMgqw Aqy byruzgwrI bImw, mYfIkyAr Aqy soSl isikEirtI tYks, ibmwrI, mzdUr muAwvzw, G`t qnKwh, ryst bryk, Aqy sYksuAl hrwsmYNt dy ivru`D sur`iKAw Aqy kMm krx vwly igg vrkrW leI ivqkry ƒ pUrw krnw peygw[ ib`l Uber, DoorDash Aqy Lyft vrgIAW rweIf-SyAirMg kMpnIAW ƒ twrgyt krdw hY jo lMby smyN qk Awpxy frweIvrW ƒ ieMfIpYNfYt kWtrYktr dI qrHW vrqwv krdy hn[ AsYNblI vumYn Aqy ib`l dy lyKk, LORENA GONZALEZ (D-San Diego), ny ienHW kMpnIAW ƒ pyrol qy kMm kr rhy kYlIPornIAw vwsIAW ƒ r`Kx Aqy byisk lybr vrgy AiDkwrW qk phuMc pRwpq krn leI bwhr bulwieAw[ AwriQkqw dy hor Kyqr jo ib`l nwl
pRBwivq hoxgy aunHW iv`c mnorMjn, trWslySn, inrmwx, GrylU ishq shwieqw, pRwhuxcwrI Aqy iflIvrI Swml hn[ kuJ kwrobwr Ajy vI ieh pqw lgwaux dI koiSS kr rhy hn ik kwƒn aunHW ƒ ikvyN pRBwvq krdw hY Aqy kI aunHW ƒ ies dI pwlxw krnI cwhIdI hY[ tr`ikMg audXog leI, Tykydwr v`Kry rihMdy hn. jdoN ik kuJ rvwieqI ruzgwr dy nwl sur`iKAw dI mMg krdy hn, dUsry AwpxI ieMfIpYNfyt ƒ bxweI r`Kx ƒ pMsd krdy hn[ jwieMt kONsl 42 Aqy 7 dIAW sQwnk XUnIAnW dw ih`sw bx rhIAW tImW ny sYkrwmYNto iv`c ib`l dy smrQn iv`c keI lwibMg idnW iv`c ih`sw ilAw[ dUjy pwsy, kuJ ieMfIpYNfyt tr`k cwlkW ny ivDwiekW nwl g`l kIqI Aqy aunHW ƒ ikhw ik auh krmcwrI dw drjw nhIN cwhuMdy ikauNik auh sPlqwpUrvk Awpxy Kud dy kwrobwr bxw rhy hn Aqy clw rhy sn[
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COVER ARTICLE
vYstrn styts tr`ikMg AYsosIeySn (WSTA) Aqy kYlIPornIAw tr`ikMg AYsosIeySn (CTA) dovW ny ib`l dy ivru`D pYrvI kIqI hY. aunHW dw dwAvw hY ik ieh aunHW dy Awpxy rwjW iv`c kWntRYktr tr`kW dI vrqoN ivc rukwvt pweygI[ EnrEprytr ieMfIpYNfYNt frweIvr AYsosIeySn (OOIDA) ib`l dw jvwb dyx dI jldI nhIN hoeI iesleI ieMqzwr hY ik ieh tr`ikMg audXog ƒ ikvyN pRBwvq krdw hY[ OOIDA nUM l`gdw hY ik ipCly kuJ dhwikAW qoN motr kYrIAr frweIvrW nwl ikvyN pyS Aw rhy hn Aqy ies qy ivcwr krnw lwzmI sI[ tr`kW ƒ G`to G`t qnKwh dy ibnW kuJ Bugqwn kIqy ibnW iBAwnk kMm krn vwly vwqwvrx iv`c kMm krnw ipAw hY[ AYsosIeySn nUM l`gdw hY ik ieh mMnxw ik kwƒn isrP cIzW ƒ muSkl bxwaux vwlw hY[ hwlWik, ieh ho skdw hY ik eybI 5 ieMfIpYNfyt Awnr AwpyRtrW ƒ nkwrwqmk qOr qy pRBwvq krdw hY, OOIDA ies ƒ pUrI qrHW cuxOqI dyx leI hovygw[ ieh aumId krdw hY ik ies dy ivckwr, kYlIPornIAw dy motr kYrIAr frweIvrW 10
November & December 2019
dy AiDkwrW ƒ iDAwn iv`c r`Kxgy Aqy kI auh aunHW ƒ krmcwrI dy rUp iv`c r`K skdy hn[ieh ies leI hY ikauNik Awnr Aprytr mwfl durivvhwr dy mwmilAW duAwrw ivAwpk qOr qy dyiKAw igAw hY[loNg bIc Aqy lws eyNjls dIAW bMdrgwhW dI syvw krn vwly 13,000 tr`krW leI, aunHW ivcoN bhuiqAW ƒ “Awnr AwpRytr” vjoN SRyxIb`D kIqw igAw hY Aqy bhuq G`t krmcwrI hn[pihlW dw vrgIkrx aunHW ƒ tr`ikMg kMpnIAW duAwrw pRdwn kIqy irgz ikrwey ‘qy dyx, Aqy vwhn clwaux Aqy kwrjW leI aunHW’ qy inrBr krn dI AwigAw idMdw hY[ 2018 dI SurUAwq iv`c, kMpnIAW ny Awpxy Krcy ƒ Gtwaux leI frweIvrW ƒ nvyN tr`k KrIdx leI mzbUr kIqw[ ieh vwqwvrx sMbMDI inXmW dI pwlxw krn dI koiSS sI[ bhuq swry frweIvr krizAW iv`c fu`bx qy mjbUr ho gey[ keIAW ƒ bImw, iPaUl ienSorYNs Aqy murMmq leI Bugqwn krnw pYNdw sI[ jy auh koeI vI AdwiegI nhI krdy qW kuJ kMpnIAW aunHW ƒ brKwsq kr dyxgIAW, tr`kW ‘qy muV dwAvw krxgIAW Aqy aunHW dI iekuietI zbq kr lYNxgIAW[
2011 iv`c ie`k hzwr qoN v`D tr`kW ny gælq SRyxI Aqy qnKwh corI dy dwAvy dwier kIqy sn[ aunHW ƒ 50 imlIAn fwlr qoN v`D dw jurmwnw Aqy Bugqwn id`qw igAw sI[ Uber, Swift Transportation Holdings Inc. Aqy XPO Logistics Inc. vrgIAW kMpnIAW ny keI glq klwsIiPtW dw inptwrw krn leI l`KW qnKwh Aqy EvrtweIm dy dwAivAW dw Bugqwn kIqI hY[bdiksmqI nwl, bhuq swrIAW kMpnIAW Ajy vI krmcwrI inXukq krn dy rUp iv`c jurmwny dw Bugqwn krnw ssqw smJdIAW hn[ DoorDash, Lyft Aqy Uber pihlW hI AYlwn kr cu`ky hn ik auh 2020 ivc kYlIPornIAw dy iek bYlt ivc 90 imlIAn fwlr q`k dI ktOqI kr rhy hn qW ik votrW ƒ kwƒn ƒ r`d krn dI ApIl kIqI jw sky[ aunHW dw qrk hY ik kwƒn aunHW ‘qy lwgU nhIN huMdw ikauNik frweIvr aunHW dy Awm kwrobwr dw ih`sw nhIN bxwauNdy[ auh isrPæ ifjItl plytPwrm hn jo Asl iv`c AwvwjweI kwrobwr dw ih`sw nhIN hn[
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November & December 2019
11
INDUSTRY NEWS
Economy Slows But Consumers Still Spending
M
ore evidence is in that the U.S. economy has slowed this year with freight shipments by all modes of transportation—truck, rail, air and barge—falling by 3.4% in September, compared to one year ago, according to the Cass Freight Index which tracks consumer and industrial shipment volume. This marks the tenth month in a row of such declines, but total freight spending has only fallen in the last four months, mostly due to the higher rates achieved in 2018 which carried over into the first six months of this year. A measurement of North American freight volumes, the Cass Freight Index tracks the goods-based economy, including retail products, construction materials and equipment, manufacturing components as well as oil and gas drilling and mining supplies. Railroads showed the worst results as the number of carloads dropped 7%, according to the Association of American Railroads. Because of dropping shipments and slumping freight rates, the total amount that retailers, wholesalers and manufacturers spent on freight, including fuel surcharges, declined by 4.5%. One silver lining, however, for recent trends is that American consumers have once again opened their wallets in recent months after keeping them under lock and key for much of 2019. Buffeted by e-commerce, retail sales surged 4.6% in September, compared to 2018, according to the Commerce Department. Nevertheless, the industrial economy, especially manufacturing, has slowed
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November & December 2019
after better than expected results last year. Those results were achieved mostly because manufacturers were rushing to ship goods ahead of potential and real tariffs. This caused companies to over order with inventory ballooning. Manufacturing production fell 0.4% year-over-year Industrial production, including manufacturing, oil and gas drilling, mining and utilities dropped 0.5% yearover-year Construction spending, including material and shipping, dropped 1.9% year-over-year For railroads, carloads of coal fell 8.7%, carloads of grain fell 15.8% and carloads of crushed stone, sand and gravel fell 7.5%. Rail carriers are also being impacted by competition from trucking, which has also had its challenges with spot rates falling. These lower spot rates for trucking, however, have lured shippers away from railroads. In September, spot rates for vans fell 14% from last year to $1.84 per mile
with contract rates for vans declining 9.7% to $2.15 per mile. Flatbed rates have dropped 14% to $2.20 per mile and contract rates down 5.6% to $2.56 per mile. Several dilemmas now confront the freight industry. Consumers are spending once again with e-commerce consumption at a white hot pace and no end in sight, although the sales of new automobiles have lagged. Still the industrial and construction sectors are not growing and the U.S. trade war with China has caused declining business confidence. Other factors to slow growth include China’s own economic slowdown, rising German exports and the partial shutdown of the Hong Kong Airport, the largest commercial hub in the world.
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COVER ARTICLE
California Senators Pass A New Bill That Could Change The Definition Of Independent Contractors In The Trucking Industry
O
n September 18, California Governor, Gavin Newsom, signed a new bill into law that sets stricter standards for workers to be defined as independent contractors. The Assembly Bill 5, also referred to as AB 5, will take effect on January 1 next year. California has been looking to curb the contracting of independent contractors for nearly 18 months. This brought about some serious lobbying, fearful paper editorials, and street protests. Now that the new Assembly Bill has been signed to law, it aims to solve
worker misclassification and the problem of inequality in the workplace. It builds from a decision made by the California Supreme Court in April 2018 that set a new strict test for employers. The aim is to give independent workers the employee status. This, however, is estimated to increase labor costs by up to 20 and 30 percent. Trucking companies will now have to cater for disability and unemployment insurance, Medicare and Social Security taxes, sick leaves, worker’s compensation, minimum wage, rest breaks, and protection against sexual harassment
and discrimination for gig workers that become employees. The bill targets ride-sharing companies like Uber, DoorDash and Lyft which have for a long time treated their drivers like independent contractors. Assemblywoman and author of the bill, Lorena Gonzalez (D-San Diego), called these companies out for keeping working Californians off payroll and from gaining access to basic labor rights. Other sectors of the economy that will be affected by the bill include entertainment, translating, construction, home health aides, hospitality, and delivery. Some businesses are still trying to figure out how the law affects them and whether they must adhere to it. For the trucking industry, contractors remain divided. While some seek the protection that comes with traditional employment, others prefer to keep their independent status. Teamsters that are part of local unions in Joint Councils 42 and 7 took part in several lobbying days in support of the bill in Sacramento. On the other hand, some independent truckers spoke to legislators and told them that they didn’t want the employee status since they were successfully building and running their own businesses.
14
November & December 2019
www.punjabitruckingusa.com
COVER ARTICLE
The Western States Trucking Association (WSTA) and the California Trucking Association (CTA) have both lobbied against the bill. They claim that it will impede the use of contractor truckers in their respective states. The Owner-Operator Independent Drivers Association (OOIDA) hasn’t been too quick to respond to the bill. It’s taking on a wait-and-see approach to see how it affects the trucking industry. OOIDA feels that the law was inevitable considering how motor carriers have been treating drivers over the last few decades. Truckers have had to work in awful working environments without being paid anything close to a minimum wage. The association also feels that assuming that the law is only going to make things difficult is premature. However, be it that AB 5 affects independent owner-operators negatively, OOIDA will be there to challenge it fully. It hopes that in the midst of
this, Californian motor carriers will take into consideration drivers’ rights and whether they can hire them as employees or change the conventional lease agreements that grant owneroperators total independence. This is because the owner-operator model has been widely characterized by multiple cases of abuse. For the 13,000 truckers that serve the ports of Long Beach and Los Angeles, most of them are classified as “owner-operators” and very few as employees. The former classification allows them to lease rigs provided by trucking companies, drive under their policy, and depend on them for assignments. At the beginning of 2018, the companies forced drivers to buy new trucks to alleviate themselves of the expense. It was also in an effort to adhere to clean-air regulations. Many drivers were forced into debt as they worked to clear their loans. Some had to pay for insurance, fuel, and repairs.
If they missed on any of the payments, some companies would fire them, reclaim the trucks and seize their equity. More than a thousand truckers filed misclassification and wage theft claims in 2011. They were awarded over $50 million in penalties and back pay. Companies like Uber, Swift Transportation Holdings Inc., and XPO Logistics Inc. have also paid millions in wage and overtime claims to settle several misclassification suits. Unfortunately, many companies still find it cheaper to pay the penalties as opposed to hiring workers as employees. DoorDash, Lyft, and Uber have already announced that they are churning up to $90 million into a California ballot in 2020 to appeal to voters to undo the legislation. They argue that the law does not apply to them because drivers don’t make part of their normal business course. They are simply digital platforms that aren’t actually part of the transportation business.
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November & December 2019
15
INDUSTRY NEWS
Walmart Mimics Amazon By Subsidizing Third-Party Merchants To Offer Lower Prices On Its Website
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onsumers may be in for an early holiday gift as Walmart Inc., one of the world’s largest retailers, has followed in the footsteps of Amazon.com Inc. by temporarily slashing prices of items on its website where third-party merchants list their goods. The vendors, however, will still be receiving the full price with Walmart subsidizing the difference.
Walmart has yet to put a timeline on its “temporary” Competitive Price Adjustment program, but analysts believe Walmart could sustain the price cuts as long as Amazon sticks to its program. One thing is for certain, Walmart’s program is just in time for the busy holiday season and it seems likely they will continue to employ creative ways in their battle with Amazon.
The move seems to counter a similar tactic by Amazon which rolled out a program giving the e-commerce goliath complete control of prices set for third-party merchandise. Amazon also appears to be undercutting Walmart by making sure their merchants’ products aren’t showing up on the Walmart site for a lower price.
Walmart’s plan should be familiar since Amazon did much the same thing two years ago with its “Discount Provided by Amazon” program, cutting prices of third-party merchandise for a short time. Participation in the program was a definite boon for vendors because they not only got their full price, with Amazon making up the difference, but also received prominent positioning on Amazon’s website.
Amazon has recently overtaken Walmart as the overall leader in sales of retail goods, controlling 40% of U.S. e-commerce which will surge to $587 billion this year.
More recently, Amazon announced the beginning of its “Sold by Amazon” program with merchants giving Amazon permission to advertise lower prices in exchange for a guaranteed return. The e-tailer has also made it easier to buy small, inexpensive products without being part of a minimum order.
The price war between the two biggest retailers in the world comes at the same time as the Federal Trade Commission is taking a closer look at Amazon for possible monopolistic business practices. The FTC is probing whether Amazon is using its size to eliminate competitors. Amazon has recently overtaken Walmart as the overall leader in sales of retail goods, controlling 40% of U.S. e-commerce which will surge to $587 billion this year. Amazon denies it is under investigation and says it makes up only 4% of the current retail market. 16
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Both companies are offering next-day shipping on items, believing that convenience will bring more shoppers and send more products out the door, in order to make up the difference in its subsidies to vendors. According to Walmart, it has 75 million unique products on its website with the broad majority of those items come from third-parties. Whatever Walmart is doing, it is working, with its stock up 29% on Wall Street.
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“Nuclear Verdicts” An Existential Threat To Trucking Industry
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n unfortunate trend currently haunting the trucking industry is the proliferation of “nuclear verdicts” handed down by juries across the nation. A nuclear verdict is one which exceeds $10 million in damages. For Country Wide RV Transport, the second largest RV shipper in the U.S., a recent verdict by a court in Denver, Colorado has put the company out of business, eliminating 540 jobs, effective Nov. 1.
The Denver court ruled that Country Wide was liable for the fatal crash involving one of its independent contractors who fell asleep at the wheel causing the deaths of Mike and Jill Waters in 2017. The jury ruled that despite being an independent contractor, driver Mark Bollinger was an agent of the company. The jury awarded the victims’ children $26.6 million. Country Wide was the exclusive transport provider for Camping World, an RV retail chain which ships its motor homes throughout the U.S. The Waters family said they brought the lawsuit against CWRV in order “to make a change in sleepy driving habits within the trucking industry, including ensuring drivers log hours and companies take responsibility for driver actions while on the job,” according to the Denver Post. Bollinger pleaded guilty to criminal charges against him for reckless driving but avoided jail time by receiving a suspended sentence. While a large sum, the Denver verdict is nowhere near the highest penalty levied on a trucking company this year. In Georgia, a jury took just 45 minutes to decide that Schnitzer Southeast and Schnitzer Steel would have to pay plaintiffs $280 million because their truck killed five people in a headon collision in Alabama. Nuclear verdicts are seriously impacting the ability of insurance companies to cover trucking companies. Both AIG and Zurich International have stopped issuing policies to trucking entities. In previous years, large shipping companies have been able to avoid nuclear verdicts because drivers were largely considered independent contractors. Prosecuting attorneys, however, have found that juries are often willing to hold companies responsible for the actions of a driver even if they aren’t permanent employees of the shipper. The same trend is hitting freight brokerage firms who are being hit with lawsuits because prosecutors are
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linking them to personal injury cases involving independent contractors. Lawyers argue that shippers have “vicarious liability” for the actions of those it hires to move freight. Phone calls, text messages or emails can link a company with an independent contractor to prove vicarious liability. The argument claims that the shipping company is in control of the driver and thus on the hook when something catastrophic happens. American Trucking Associations President and Chief Executive Officer Chris Spear recently said, “We’re fed up. I’m sick of playing defense while trial lawyers buy jets and yachts at the expense of trucking jobs. These ‘nuclear’ verdicts are strangling our industry.” These large settlements are only a part of what has turned out to be a disastrous year for trucking. Trade wars, manufacturing slowdowns, environmental regulations, low spot rates, ever increasing insurance rates, restructuring of networks by Amazon and plant closures by General Motors have all exacerbated the trucking industry’s woes.
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ith trucking being slow for several months now, a few situations have arisen that can actually financially aid some, while others continue to struggle. Opportunities are available for stronger more established people and companies to purchase struggling companies, and their equipment to free them of an industry they cannot cope in. Trucking is cyclical, just like the economy. When the economy slows during a recession, the demand for goods declines, and hence the demand for trucking also declines. When the economy gains momentum, so does trucking. Having interviewed a few people with over 40 years of experience in the trucking industry,
they each explained the same cycle to me. When a slow down occurs, it begins in the East by New York and Toronto, and about 9 months to a year later, reaches the West coast. Not being able to make payments has become a problem and now we are seeing increases in repossession rates. Those who could not cope, lost their equipment, but others who have been able to adapt, have been able to purchase repossessed equipment at a good price and continue to thrive. It’s unfortunate for those who lost their equipment, but I always caution my clients when looking at equipment that was repossessed. There is often work that needs to be done mechanically. Those who cannot afford the payment, also cannot afford the maintenance. So
always proceed with caution and make an extra allowance for maintenance that will need to be done. At one-point, new equipment was in such high demand, that there were months of backups and wait lists. This is still the case with certain equipment, but some who had ordered the equipment months ago, and since experienced a slowdown in work, may no longer want the equipment they ordered. Keeping in touch with local dealerships on those who may not pick up ordered items, is a great opportunity to get yourself off the
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wait list. I know a few dealerships are offering incentives as well to potential buyers to get the custom ordered equipment off their lot, such as sale prices and vacation packages. When trucking was booming, a lot of new trucking company’s formed. This is common with any industry. Where money is being made, newcomers will follow looking for opportunity and wealth. Those same new company’s now do not have the staying power in a slower economy and cannot sustain themselves. Long established companies are now able to purchase these small companies at good prices, and pick up their extra equipment and drivers. Being bought by a larger firm may give the existing driver’s a more stable future, the firm acquires equipment the company may have been struggling to make payments on, and pick up any existing load contracts while expanding.
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All industry, whether it’s going slow or fast, always has opportunity to do business. The buy low and sell high motto is what business is all about. There are many company’s and drivers right now trying to sell equipment and get out of trucking fast. These are chances for others to buy low and gain from their misfortune. I know from talking to driver’s and company owners daily there is a lot of stress and worry. If you enjoy
trucking and have been in it long term, you will most likely stay in it and weather the storm as you have probably seen slowdowns before. Long term people will seek opportunities for their financial gain. If you are too stressed about money and want out, then act before it’s too late and before you have run out of money. Timing is everything. Seek guidance and financial advice and know all the options that are open to you.
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n a sign that 2020 may be better than 2019 for the trucking industry, preliminary trailer orders reached 19,000 units for September, a whopping 81% gain month-over-month. It still, however, represents a 66% decline year-over-year. Net orders for the month could have been higher if not for fleet cancellations of excess 2019 orders. According to Don Ake, vice president of transportation intelligence experts FTR, “This is a decent order amount for September. It indicates fleets are somewhat optimistic about 2020. Orders should rise to healthy levels in October, as more large fleets place their 2020 orders. The increase in September orders signals the trailer market is becoming much more stable and should be settling into historic order patterns, after a turbulent couple of years.” While trailer production should remain steady for the next few months, backlogs are expected to decline for the ninth straight month with trailer orders for the last year at 264,000 units. “Trailer sales are expected to dip in 2020 after hitting record volumes in 2019,” Ake said. “However, the forecast is still for a solid year based on moderate economic and freight growth, which should provide fleets with enough profits to buy new equipment.” www.punjabitruckingusa.com
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We thank all our sponsors, vendors, visitors and volunteers for supporting us to put together a great show. See you in September 2020.
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Marijuana Use in Truck Drivers
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he use of marijuana among truck drivers is becoming a rising concern across the United States. Twenty states are currently looking to join 11 others in legalizing recreational marijuana, while 33 states have already legalized medical marijuana.
Being high on pot while driving on public roads remains an offense. This is despite the growing legalization of marijuana in multiple scenarios and settings. Commercial drivers are governed by the Federal Motor Carrier
Safety Administration which still holds the use of marijuana while driving an illegal act regardless of state laws and medical prescriptions. For the public, confusion as to whether pot consumption is illegal or
Statistics show that 93 percent of Americans support the legalization of pot. According to poll results from Yahoo/Marist, more than one in every five Americans use marijuana while half of this number use the drug regularly. In addition, close to 25 percent of Americans now live in a state that permits consumption of recreational marijuana. With the drug continuously becoming more and more available, chances of the trucking industry being affected are exponentially high. Many fleets are working round the clock to find ways of preventing their drivers from joining the more than 55 million Americans taking advantage of the liberalized laws.
not is understandable. But, for truck drivers, they do it fully aware that they are breaking the law. According to a study by American Transportation Research Institute (ATRI), marijuana impairment is normally accompanied by decreased reaction time, reduced motor coordination, and poor judgement. Smokers that try to perform various tasks 24 hours after consumption struggle with special determination, memory, coordination, problem-solving, rapid decision making, and multiple object tracking. This is even after the effect of the drug has worn off. Todd Simo, HireRight’s chief medical officer, 30
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recently shared at America Trucking Associations’ Management Conference & Exhibition that impairment for alcohol and marijuana differ. An alcoholic driver will drive through a red light while an intoxicated weed smoker will stop at a green light, wondering if he should go or not. The latter is aware that he is impaired and therefore, does not trust his own judgement. This and the fact that marijuana impairment lasts longer than that of alcohol makes weed’s growing popularity a critical issue for the trucking industry. There’s also a growing need of creating policies specifically aimed at tackling the growth of marijuana. American Trucking Associations (ATA) wants to lead the pack in driving how American businesses adapt to the legalization of pot. ATA Board of Directors have already come up with new policies that push for a commonsense approach to how states liberalize marijuana. The board wants uniform impairment laws adopted across the
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entire country. This is because truckers operate not only in all 50 states, but also across national borders. According to Paul Enos, CEO of Nevada Trucking Association, the main focus for the trucking industry is safety. Everyone else is looking to the industry to step out on the issue because it has the best argument. One of the best ways to deter drivers from using marijuana is by carrying out tests for drug use. There are three main ways to do so: saliva, hair, and urine. Hair testing has been a growing trend in catching opioids and stimulant use. To catch the use of marijuana in hair, the driver has to be a chronic smoker. This means that he/she smokes cannabis on a daily basis. Stringent hair testing techniques can also detect drug use in the past 90 days. Urine has a detection period of about seven days. This means that someone can smoke on Wednesday and still test positive on Monday. Oral fluids have a
detection period of less than 24 hours. Their impairment period, however, goes past 24 hours. A lot of companies are using this method as it helps make derogatory employment decisions based on impairment, not just a positive test. ATA managed to endorse four new recommendations and policies to the federal government as the nation tries to adapt to more weed. These policies include: 1. A need for employers to retain their rights to test for cannabis if the job in question is safety-sensitive. 2. Existing federal restrictions on cannabis research to be lifted as there’s need for more research on marijuana’s effect on impairment, especially when used in conjunction with other drugs and substances. 3. A call for the creation of a cannabis victim’s compensation fund. This is to be paid for by cultivators, manufacturers, and dispensaries.
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Werner On The Hook For $40.5 Million After New Mexico Jury Rules On Fatal Crash
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n yet another “nuclear verdict” leveled against a trucking company, a New Mexico court awarded $40.5 million to the family of Kathryn Armijo, who was killed in a 2017 accident caused by a Werner Enterprises driver. A nuclear verdict is one that exceeds $10 million in damages. The decision marks the second such judgment against Werner in the last two years. In 2018 a jury ordered them to pay a Texas family $89.7 million in another fatal crash. Werner is one of the largest fleets in the nation. Armijo was killed when a Werner driver crossed four traffic lanes as well as a paved medium before the head-on collision claimed the woman’s life. The jury found Werner, the driver and his trainer responsible for the crash. Werner President and CEO Derek Leathers admitted the company and driver were at fault, saying, “The accident that resulted in the tragic loss of Kathryn Armijo was the result of 32
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a brief moment operator error by the Werner driver. The Werner driver was not distracted, fatigued or impaired in any way. In every sense, it was simply an accident.” Attorneys for Armijo, however, argued that Werner’s training practices were negligent and represented a “systematic disregard for basic safety policies and training of new drivers.” The Werner truck, driven by Felipe Jose Johnson of Apopka, Florida, was driving eastbound on I-10 outside of Las Cruces, New Mexico when he drifted into the left-hand line, over the median and crashed into Armijo. “Due to Johnson’s lack of training at Werner as well as inadequate education at Roadmasters, Johnson not only lost control of the 18-wheeler but was unable to regain control,” the attorneys said. Johnson had just graduated from the Werner owned Roadmasters Drivers School and was considered a student
driver when the accident occurred. He had only been on the job for eight days. Attorneys alleged that despite being still in training and subject to supervision, Johnson was not being monitored by trainer Gabriel Perez at the time of the crash. Records indicate that in those eight days, Johnson drove 64% percent of the time unsupervised and that neither Johnson nor Perez logged any “observation time.” Some in the trucking industry are increasingly frustrated by the number of “nuclear verdicts” recently handed down by juries nationwide. American Trucking Associations President and CEO Chris Spear told an audience at the group’s recent annual conference, “We’re fed up, and I don’t know about you, but I’m sick of playing defense while trial lawyers buy jets and yachts at the expense of trucking jobs. It’s time to go on the offensive and tell our story to policymakers. It’s time to take the Hill,” an obvious reference to lobbying for legislation which might limit such large awards. www.punjabitruckingusa.com
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edEx officials confirmed the company has filed a building permit for its new package sorting facility and world hub in Tennessee. The Memphis Commercial Appeal reports the $212 million permit filed Oct. 15 indicates the company could soon begin work on the Express World Hub at the Memphis International Airport, a major piece of an expansion project announced in 2018. The permit calls for a four-level building with offices, maintenance shops, and a cafeteria. FedEx officials announced in August the company would be investing an additional $450 million into the modernization project, for an expected total investment of more than $1 billion. The newspaper reports Gov. Bill Lee signed a bill this year giving FedEx more than $20 million in tax breaks for the hub. It’s scheduled for completion in 2025. www.punjabitruckingusa.com
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How App-Based Long-Haul Trucking Looks to Improve Efficiency in the Trucking Industry
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here are hundreds of thousands of shippers in North America today. This is thanks to a decentralized trucking industry that comprises more than a million companies. According to the American Trucking Associations, majority of these trucking companies are small businesses. Despite the growth, the industry is highly inefficient and is characterized by low margins. Long-haul truckers spend between 25 and 40 percent of their hours hauling empty trucks. The combined inefficiencies and idle times add up to traffic, unnecessary pollution, wasted time, and wasted fuel. A growing group of app-based businesses is working to change this by adopting the same internet forces that disrupted food delivery and the taxi industry. The aim is to streamline the faxes, calls, and emails, and to eliminate unnecessary paperwork. The two largest companies that are taking this up are Uber Freight and Convoy. As of 2018, their revenues had grown to $500 million and $300 million respectively. The idea is to have a one-stop app that makes truckers more money and reduces shipping costs while taking a cut from the process. Convoy started four years ago in Seattle. It had Jeff Bezos and Bill Gates as its early investors. Today, the company has more than 700 employees with an estimated start-up value of $1 billion as of 2018. 36
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Convoy lets truck drivers choose when and where they’d like to drive to and what size and type of load they wish to carry. Where the indicated price seems too low, truckers can bid for jobs. All the paperwork is done electronically. The app also allows shippers to put out requests which are matched with truckers automatically instead of having to make phone calls themselves. On average, truckers aren’t able to schedule other runs while on another job. This is because of unpredictable factors such as unloading time and
There are more than 40 appbased companies currently taking on the trucking industry in North America. Others include Transfix and Loadsmart. They have attracted billions of dollars in investment in the last seven years. Traditional logistics companies and brokers are also modernizing their operations to include app-based services. The only challenge that Convoy and related businesses face is handling the personal side of the business.
weather make their availability uncertain. When available, they may end up idle if their brokers don’t have any jobs for them. This forces them to drive empty as they wait for more opportunities. With Convoy truckers have a wide selection of jobs to choose from. Shippers are able to award shipment jobs to the company, which then lists them on the app for truckers to see. Shipping rates vary depending on urgency, destination, available drivers, and other factors. Convoy uses its centralized database and algorithms to price shipments. Payment through the app is also more efficient. It takes an average of three days compared to the industry’s current average of two weeks. The driver is only required to scan in the paperwork once the task is complete. Apps like Convoy and Uber Freight are making things a lot easier and faster for the trucking industry. According to commercial vehicle analyst for Frost and Sullivan, Silpa Paul, an app that can provide truck and load availability, replace countless of phone calls and emails, improve payments, proof-of-delivery, and rate negotiations is of high value to shipping companies and truckers alike. In 2017, apps like Convoy and Uber Freight raked in broker fees of over $210 million in North America. This www.punjabitruckingusa.com
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with drivers. Data science has also made it possible to improve algorithms and the matching process. As the technology grows, we may see other supply-chain elements get streamlined. These include
is expected to grow to $6.7 billion by 2025. Ms. Paul adds that considering that there’s a shortage of more than 60,000 truckers in the United States, the efficiencies created by app-based businesses are expected to create more jobs. Furthermore, they promise positive environmental impacts by reducing the idle time truckers spend on the road.
scheduling precise unloading and loading appointment times, making payments automatically for time spent waiting, and combining multiple deliveries going the same route.
Shippers are normally not very quick to assign expensive cargo to people they do not know nor trust. This makes it hard for them to trust a voiceless and faceless trucker availed to them through a digital platform. What the digital platforms can do is to assure shipping companies that their goods are safe and that drivers and systems will be reliable. Fortunately, data plans are now cheap enough for truckers to use. This allows them to file their paperwork electronically and use apps like Convoy. Location data helps shippers to track their goods and match jobs
BI RI
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Anwj dy Bwr nwl 15.8% Aqy kucilAw p~Qr, ryq Aqy b~jrI dw Bwr 7.5% ifigAw[ ryl kYrIArW ƒ tr~ikMg dy mukwbly nwl vI pRBwivq kIqw jw irhw hY, ijsdw spwt rytW iv~c igrwvt hox nwl muSiklW vI AweIAW hn[ sqMbr ivc, vYnW leI spwt ryt ipCly swl nwloN 14% Gt ky 84 1.84 pRqI mIl ho igAw hY Aqy vYnW leI iekrwrnwmy dIAW drW 9.7% Gt ky 2.15 pRqI mIl ho geIAW hn. PlYtbY~f dIAW drW 14% Gt ky 2.20 pRqI mIl Aqy iekrwrnwmy dIAW drW 5.6% qoN hyTW 2.56 pRqI mIl qy Aw geIAW hn[ knijaUmr iek vwr iPr vweIt hwt pys rPæqwr nwl eI-kwmrs dI knzpSn nwl Krc kr rhy hn Aqy dyKx ivc koeI AMq nhIN hY, hwlWik nvyN vwhn dI ivkrI G~t geI hY[ Ajy vI audXoigk Aqy inrmwx Kyqr nhIN v~D rhy hn Aqy cIn nwl AmrIkw dI vpwr jMg krky vpwr GitAw[ivkws dr hOlI krn dy nwl cIn dI AwriQk mMdI, v~D rhI jrmn dI brwmd Aqy hWg kWg eyArport dw AMSk qOr ‘qy bMd hoxw, ivSv dw sB qoN v~fw vpwrk kyNdr hY[ www.punjabitruckingusa.com
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Federal Register Now Open For Comments On Rear-Visibility Camera Systems
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ublished in the federal register on Oct. 10, an advanced notice of proposed rulemaking from the National Highway Traffic Safety Administration wants input about the viability of replacing mirrors on light vehicles and heavy trucks with camera-based, rear visibility technology. Manufacturers, including Tesla, Inc. and Daimler Trucks North America, have petitioned the federal government to make cameras standard equipment on all of their vehicles. Currently, vehicles must have two outside mirrors that give clear views of the road to the rear and on both sides of a commercial truck or bus. The notice is in line with the NHTSA’s efforts to fully explore technical information and data regarding camera systems in order to determine that cameras will provide the same level of safety as the federally required rearview mirrors. The NHTSA is mandated to pursue the best possible safety equipment and standards for new cars, trucks and commercial vehicles. This includes modification of existing standards as a response to the development of more efficient technologies. 40
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A recent press release from the agency said, “Examples of technological transitions that triggered the need to adapt and/or replace requirements in the Federal Motor Vehicle Safety Standards include the replacing of analog dashboards by digital ones, the replacing of mechanical control systems by electronic ones and the first production of electric vehicles in appreciable numbers.” Last year, the Federal Motor Carrier Safety Administration gave MirrorEye Inc. a five-year exemption for developing and implementing multiple digital cameras aerodynamically mounted outside commercial vehicles which give environmental protection for the cameras and clear visibility.
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These cameras provide high-definition views of a vehicle’s surroundings to the driver with a screen placed on each A-pillar between the windshield and door. MirrorEye claims this placement eliminates the blind spots which plague conventional mirrors. The camera mounts also meet or exceed federal requirements. NHTSA researchers reviewed passenger car rear-camera systems in 2018, finding that while some glare was caused by sunlight, the glare was quite low. Researchers said, “Image clarity was good, comparable to that of outside rearview mirrors. Visibility was especially good during dusk and dawn conditions when the displayed areas appeared brighter than would be seen with traditional mirrors. One downside of the cameras was that blooming and lens flare from headlights during night driving could be excessive. Researchers also found that “image obscuration” because of water on the lens and dark driving conditions may cause problems for drivers. They indicated that it is “currently unclear whether these issues may be adequately remedied in a cost-effective manner.” While the new technology appears promising to the NHTSA, it is imperative that a full safety examination of these new systems continues with comments from interested parties. The comment period runs until Dec. 9. The agency’s announcement concluded, “NHTSA invites comments on all aspects of permitting camerabased technologies to be installed as an alternative to mirrors meet the Federal Motor Vehicle Safety Standards No. 111 rear visibility requirements. The agency requests commenters provide as much research, evidence, and/ or objective data as possible to support their comments to inform the agency in determining the appropriate next steps.” www.punjabitruckingusa.com
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Getting Ready W
For Winters
hen the temperature plunges to five degrees, even the most experienced of truckers can have a hard time managing the icy roads. Poor visibility coupled with reduced traction makes the job of a big rig driver extremely challenging. However, by implementing preventive safety skills for driving in icy conditions, you can sail through the winter season without any major problems. Here are 10 winter driving tips for truck drivers that can help you stay safe this winter. 1. Inspect Your Vehicle Getting your truck prepared for winter is essential to prevent any major problems. Check the tire pressure, engine oil and antifreeze levels fastidiously before you hit the road. You can also have a mechanic inspect your vehicle to make sure it’s ready to withstand the harsh season of wear and tear.
2. Slow Down Most accidents occur because drivers don’t adjust their speed according to the road conditions. While driving on a snow-covered road, you may need to compensate for the poor traction by reducing your speed. Moreover, going slow will also give you more time to react if anything goes wrong. So, be extra-easy with your accelerator this winter.
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3. Give Yourself Some Extra Space Do you know that the stopping distance on a wet road is twice the normal stopping distance? And on icy roads, it’s almost 10 times! So, leave plenty of room between your truck and the vehicle in front of you so that you have enough space to move out of harm’s way in case of unpredictable situations. 4. Stay Smooth In cold weather, try hard to refrain www.punjabitruckingusa.com
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from doing anything sudden – sudden braking, sudden acceleration, cornering, etc. If the situation demands you to slow down suddenly on a slick road, pump your brakes lightly. The key is to maintain a consistent speed and avoid doing anything that reduces traction on the slippery roads. 5. Pay Attention to the Tire Spray This is one of the most important (and commonly forgotten) winter driving tips. A good way to assess the road condition is to observe the water coming off the tires of vehicles around you. If there’s a lot of water being sprayed, the road is definitely wet. If the tire spray is relatively less, it means that the roadway has started to freeze and you need to exercise additional caution. 6. Let There Be Light The visibility is quite poor in inclement weather conditions. So, don’t forget to turn on the headlights of your truck. This will allow the other drivers to see you and maintain a safe distance from your truck. 7. Take Evasive Action Sometimes, it’s better to take evasive action than hard braking, especially on a snow-covered road. If your speed is around 25-30mph, consider decelerating your truck slightly
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and maneuvering around the obstacles to avoid a collision. 8. When in Doubt, Pull Over If the weather condition is too severe to drive, don’t think too much about your schedule. Find a safe way to get off the roadway and wait until the weather gets better and it’s safe for you to drive. 9. Be Prepared Don’t forget to carry warm clothes and blankets with you. If you are going for an extended trip, carry a flashlight, shovel, matches, traction devices, a bag of sand, etc. Make sure you have roadside assistance for trucksto fall back on if you get stuck or run into trouble on the road. 10. Check Twice When visibility is compromised in a whiteout blizzard, it can be difficult to see traffic lights and signs. Make sure you look twice before proceeding through an intersection or turning down a one-way street. These winter driving safety tips might appear quite simple, but they will only work if you follow them carefully. Ultimately, it’s up to you to exercise your judgment and stay safe out while driving on the road.
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SkyBitz Announces New Cargo Monitoring System In Partnership With Omnitracs
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ew technology will now enable drivers to know instantaneously just how much open trailer capacity they have available. SkyBitz, in partnership with Omnitracs, has developed a new volumetric sensor that will give drivers remote monitoring of trailer capacity in real-time. The unveiling came at this year’s American Trucking Associations’ Management Conference and Exhibition in San Diego. Equipped with a camera, the new volumetric sensor sends a video of the inside of the trailer back to the SkyBitz SmartTrailer ecosystem in the driver’s cab, providing exact calculations of available capacity, total cubic space and total floor space. During the announcement at the ATA Conference, SkyBitz President Henry Popplewell said, “Volumetrics data is critical to line haul customers that experience freight discrepancies such as load capacity issues, damage claims or theft. Integrating this camera to our SmartTrailer ecosystem allows customers to identify exact cubic space and capture crystal clear images of freight, eliminating discrepancies that can lead to millions in lost revenues.” Along with aiding shippers incorrectly packaging cargo, the new system can easily solve damage claims issues. Mounting on a loaded or unloaded trailer and the full installation of the entire system can occur in under an hour. Images of freight and volume data are transmitted through the SkyBitz asset tracking portal InSight. Images can be captured with a door-sensor and then fed to either the SkyBitz cloud or importing into the customer’s system. According to its website, Omnitracs is “a modern and intuitive user interface delivering unified driver and backoffice workflow experiences.” The SkyBitz partnership with Omnitracs will make data available such as trailer visibility and scheduling across platforms in a combined format. “Our partnership with Omnitracs will help customers better utilize more advanced tools across their entire supply chain, regardless of whether they are optimizing their driver and dispatch operation or their asset management environment. This technology will improve their internal operation so they can focus on providing the best external experience for their customers,” said Popplewell. The new system will provide in-cab and trailer telematics units that share data, giving both drivers and office personnel direct information about tractor-trailer connections with realtime coordination. Omnitracs CEO Ray Greer said, “Integrating SkyBitz trailer tracking solutions with our fleet capabilities allows us to continue to focus on the open platform strategy of Omnitracs www.punjabitruckingusa.com
One and the consolidation of data within the platform across the value chain.”
arb.ca.gov/truckstop November & December 2019
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FedEx Freight Direct Expands To More U.S. Markets
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n an indication that e-commerce is changing the shipping landscape for carriers, FedEx Freight is now offering delivery of large items such as furniture, televisions and exercise equipment to residences and businesses as it expands its Direct e-commerce pilot program to approximately 80% of U.S. households. Only Alaska, Hawaii, Montana, and the Dakotas will not be covered. It is the first time FedEx Service has made deliveries through the door and into homes, according to an Oct. 15 press release from the Memphis, Tenn. corporation. At this point, however, FedEx has not released the names of its retail partners in these deliveries. The new service should prove to be attractive to customers who can access their zip code online to find out whether FedEx Freight Direct delivers in their area. Businesses will also benefit from the service with new business-oriented options. Brie Carere, FedEx executive vice president and chief marketing and communications officer said, “Today’s consumers are just as comfortable purchasing a television or sofa online as they are groceries or books. We’re seeing more oversized items move through our global network. FedEx Freight Direct is critical to addressing challenges as part of our growing e-commerce portfolio.”
With over 370 service centers, 25,000 vehicles and 45,000 employees, FedEx Freight moves upwards of 115,000 lessthan-truckload shipments each day in the U.S., Canada, and Mexico. The Direct program, including truck design, was implemented with plenty of input from company drivers, especially how to operate in limited access destinations such as residential neighborhoods and downtown business districts. Drivers have also been exposed to several hours of service training for working in such areas. FedEx Freight CEO John A. Smith sees the increasing potential of e-commerce and the delivery of awkward, bulky items straight to businesses and homes. In August, he said, “The heavy, hard-to-handle segment—as we call it—is over a $10 billion industry right now, and growing at double-digit margins. In the foreseeable future, we do not see that ending. We’ve got a really good business plan developed in order to take advantage of that market and to offer a service that really differentiates us from the existing market.”
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Peterbilt Teams With PepsiCo To Introduce Zero-Emission 220EV
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ntroduced at last year’s Las Vegas Consumer Electronics Show, Peterbilt’s six-battery-electric Model 220EV will soon be part of PepsiCo’s Frito Lay division running out of its Zero and Near Zero-Emission Freight Facility Project in Modesto, California. Six of the new units were recently delivered by Peterbilt. The Model 220EV will join the company’s 579EV and 520EV in customer field trials. Peterbilt will now have 15 battery-electric trucks in the city delivery, regional haul and refuse applications. According to Paccar VP and Peterbilt GM Jason Skoog, the new models will be “in customer’s hands running real routes and collecting real-world validation data.” Powered by two battery packs, the zero-emission 220EV has a total capacity of 148 kWh with a two-speed drive eAxle and has a 100-mile range that includes a one-hour recharge, making it an excellent choice for local deliveries. PepsiCo VP of Supply Chain claims the new EV’s are part of the company’s commitment to reduce greenhouse gas emissions by 20% over the next ten years. He said, “PepsiCo and Frito-
Lay have a longstanding relationship with Peterbilt and are excited to partner in the advancement of electric vehicles within our fleet and to be the first customer to put the Model 220EV in service in our delivery operations.”
C.: 650-333-6096, P.: 925-378-3561 www.doxalubes.com : info@doxaimpex.com
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November & December 2019
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Ray Martinez Out As FMCSA Administrator
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ederal Motor Carrier Safety Administrator Ray Martinez is yet another Trump administration official caught up in the revolving door of ever changing faces running the federal government’s various agencies. Martinez will be leaving the FMCSA at the end of October, although he will remain in the Department of Transportation. Jim Mullen, the agency’s chief counsel, will assume Martinez’s duties on Oct. 28. For his part, Martinez has been reassigned as oversight director of redevelopment at DOT’s Massachusettsbased John A. Volpe National Transportation Systems Center which targets infrastructure and innovation projects. The move enables Martinez to move closer to home and family.
Martinez has been a proactive face of the agency and has often reached out to garner input from various factions in the trucking industry. During his term, the FMCSA has offered several changes in the hopes of streamlining regulations. They have recommended hours-of-service rule changes and secured a pilot program to allow 18-20 year olds with a U.S. military comparable commercial driver’s license to drive for interstate commerce. Martinez also recently proposed a project to foster the growth of advanced driver assistance technology. Some trucking industry leaders expressed surprise at the move. David Heller, vice president of government affairs for the Truckload Carriers Association said, “We thought he was a tremendous asset to DOT, and a great advocate for our industry. I don’t want to say he was entirely truckingfriendly. He was safety-friendly, and was dedicated to improving safety on the roads.” Todd Spencer, president of the Owner-Operator Independent Drivers Association, echoed Heller’s words, saying, “Ray Martinez has been the most active, receptive, and responsive FMCSA Administrator since the agency’s creation. We will certainly miss his leadership and his willingness to listen and learn about issues that impact small-business truckers, but we wish him the best. Most truckers can certainly identify with his desire to be closer to his home.” As Mullen ascends to the top position, Deputy Administrator Alan Hanson will assume the agency’s role as chief counsel.
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INDUSTRY NEWS
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new debate has arisen in the trucking industry about how long a commercial truck is economically viable for large fleets before it should be sold off in order to move to a newer model. It was a commonly held assumption for many years that purchasing several trucks at the same time and running them for 10-15 years was the best way for a fleet to gets its money’s worth. Today, experts are saying it may be best to upgrade within five years. Fleet managers are now paying greater attention to the time at which a truck begins to cost more to operate than it would be to simply purchase the latest model. Outlays for fuel, finance costs, maintenance, and repair are all part of this consideration. By using increased data and analytics, fleets, in conjunction with their finance departments, can determine when best to sell off older models and replace them. Examples show that fleet managers can gain nearly $17,000 in savings by upgrading from a 2015 sleeper truck to a brand new model. In fact, savings for a fleet of 100
trucks could be as high as $1.7 million when moving to the newest model. For most fleets, then, savings can be achieved through leasing trucks over a shorter number of years. Now, more than ever, fleets need to have a good strategy for acquiring new equipment, with an eye on changing market conditions—including the explosion of new truck technology. Fleets also need to have a cost effective way to get rid of old assets, gaining the highest resale value possible. Utilizing a third party may be the best way to accomplish this so that fleet managers aren’t spending all of their time dealing with used trucks and auctions. HIgh volume sales for Class 8 trucks marked the beginning of 2019 but sales seem to have slowed in the spring. “In June, the J.D. Power Valuation Services data revealed that May’s Class 8 market prices were down and volume up in the auction channel,” said Chris Visser, senior analyst for J.D. Power.
Fleets Look To Upgrade In Less Time Than Previous Years
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