Commercial Carrier Journal, January 2020 by Richard Street

JANUARY 2020

SLOW FLOW FOR FA-4 OILS

Why haven't they taken off?

FINDING SOLUTIONS

page 22

Experts advise ï¬&#x201A;eet executives page 12

COSTLY CRASHES

Nuclear verdicts sending trucking insurance expenses through the roof OVER-THE-AIR MAINTENANCE Telematics keeps trucks rolling page 46

BUSINESS SOLUTIONS FOR TRUCKING PROFESSIONALS

MIDDLE-GROUND TRUCK POWER Mild hybrids save fuel, cut emissions page 42

JANUARY 2020 | VOL 177 | NO. 1

COVER STORY

JOURNAL

The cost of coverage

Tractor-trailer insurance rates are expected to rise in 2020, brought on by an uptick in truck crashes and massive settlements and judgments. Larger carriers with deeper pockets are targeted, and juries have been responding with multimillion-dollar judgments. As a result, fleets and insurers are more eager to settle out of court, where the price of mediation also has been on the rise.

LEADING NEWS, TRUCKING MARKET CONDITIONS AND INDUSTRY ANALYSIS

Cover design by Richard Street

FEATURES

Celadon, unable to overcome financial scandal, closes doors … EPA erred in glider kit regulatory repeal attempt, watchdog finds … FMCSA delays rule for new entry-level training standards

Middle-ground power

Mild hybridization in long-haul trucks is gaining momentum for fuel savings and emissions reductions. The 48-volt system works with a truck’s existing 12-volt architecture and includes an electric motor/generator, energy recovery during braking and deceleration, and batteries capable of high-power discharge and recharge, with parasitic loads powered by electric motors.

Built by data

Diagnosing and repairing a vehicle with an unexpected service event may cost between $700 and $1,500 a day in lost revenue. The downtime costs add up when technicians have to troubleshoot problems or trucks wait for parts to arrive. To minimize downtime, fleet managers have to know in advance of any developing problems to turn unplanned events into planned ones.

… Fleets cutting California-based owner-operators … Connecticut governor proposes trucks-only tolls; Rhode Island tolls lawsuit remains unsettled

Innovators: Paper Transport Inc.

The De Pere, Wis.-based truckload carrier implements a behavior assessment tool to screen driver applicants and improves its turnover, safety and culture.

News

InBrief

12 CCJ Solutions Summit 17 MacKay & Company COMMERCIAL CARRIER JOURNAL

| JANUARY 2020 1

DEPARTMENTS

ccjdigital.com

technology

facebook.com/CCJMagazine @CCJnow linkedin.com/ccjmagazine

Editorial Editor: Jason Cannon Senior Editor: Aaron Huff Associate Editor: Tom Quimby Managing Editor: Dean Smallwood News Editor: Matt Cole Contributing Editors: Todd Dills, James Jaillet

Nikola, Anheuser-Busch, BYD collaborate on St. Louis delivery

Iveco, Nikola detail European joint venture

California’s A.B. 5 law fuels demand for driver leasing

editorial@ccjdigital.com

Trimble Duo combines vehicle display, gateway

Design & Production

3Dtracking adds behavior monitoring, rating to driver app

ITI adds medium-duty courses to training library

production@ccjdigital.com

Navistar gets waiver for mounting ADAS on windshield

Corporate

26 InBrief 27 Stay Metrics research finds why drivers make referrals

28 InFocus:

Routing software

Meritor unveils Uptime Services Group

DTNA inaugurates Phoenix PDC

Chairman Emeritus: Mike Reilly President/CEO: Brent Reilly Executive Vice President and General Manager, Equipment: Prescott Shibles Senior Vice President and General Manager, Recruiting: Scott Miller Executive Vice President, Internal Consulting Services: Nick Reid Senior Vice President, Audience: Linda Longton Senior Vice President, Acquisitions and Business Development: Robert Lake Senior Vice President, Marketing: Julie Arsenault

A 3200 Rice Mine Road N.E. Tuscaloosa, AL 35406 800-633-5953 randallreilly.com

20 InBrief 22 InFocus: FA-4 oils

ALSO IN THIS ISSUE

Upfront Editor Jason Cannon’s column

56 Preventable or Not? Tractor-trailer driver John Doe was backing his rig toward the front of a store for a delivery when his trailer struck a van whose driver was attempting to squeeze past behind him. Was this a preventable accident?

50 Products Engine oils, tires, ratchet, more 2

Art Director: Richard Street Quality Assurance: Timothy Smith Advertising Production Manager: Leah Boyd

COMMERCIAL CARRIER JOURNAL

| JANUARY 2020

55 Ad Index

Publication

Commercial Carrier Journal (ISSN 1533-7502) is published monthly by Randall-Reilly Publishing Co. LLC, 3200 Rice Mine Road N.E., Tuscaloosa, AL 35406. Single copy price U.S., $6; Canada/ Mexico, $9; Foreign, $12. Subscription rates, payable in U.S. dollars, $48 per year (in Canada $78 U.S. currency). For subscription information/inquiries, please email commercialcarrierjournal@omeda.com. Customer service: 1-800-517-4979. Periodicals Postage-Paid at Tuscaloosa, AL, and at additional mailing offices. POSTMASTERS: Send all UAA to CFS. (See DMM 507.1.5.2); NON-POSTAL AND MILITARY FACILITIES: send address corrections to Commercial Carrier Journal, PO Box 2029, Tuscaloosa, AL 35403. Unsolicited letters, manuscripts, stories, materials or photographs cannot be returned except where the sender provides a postagepaid, addressed, stamped envelope. Address all mail to Commercial Carrier Journal Editorial Dept., P.O. Box 3187, Tuscaloosa, AL 35403. All advertisers for Commercial Carrier Journal are accepted and published by Randall-Reilly Publishing Co. LLC on the representation that the advertiser and/or advertising agency are authorized to publish the entire contents and subject matter thereof. The advertiser and/or advertising agency will defend, indemnify and hold Randall-Reilly Publishing Co. LLC harmless from and against any loss, expenses or other liability resulting from any claims or suits for libel violations of right of privacy or publicity, plagiarisms, copyright or trademark, infringement and any other claims or suits that may arise out of publication of such advertisement. Copyright © 2020, Randall-Reilly Publishing Co. LLC All rights reserved. Reproduction in whole or in part without written permission is prohibited. Commercial Carrier Journal. is a registered trademark of Randall-Reilly Publishing Co. LLC. Randall-Reilly Publishing Co. LLC neither endorses nor makes any representation or guarantee regarding the quality of goods and services advertised herein.

Retain good drivers with great tech. Make life easier for drivers and help improve business results with GPS fleet tracking from Verizon Connect. The driver shortage is real. To help retain your drivers and recruit more, invest in a fleet tracking platform that can streamline their day (and yours). • Improve driver safety with coaching tools, roadside assistance and dash cams • Make compliance simple with a mobile app for drivers • Start reducing fleet expenses, so you can reinvest in your drivers • Make routing easy with turn-by-turn navigation and road updates

UPFRONT

Online battleground Digital retailers facing off over last-mile supply chain BY JASON CANNON

any brick-and-mortar stores rely on strong holiday sales to make or break their fiscal year. Black Friday, after all, is “Black” Friday because the day’s sales can pull retailers out from months of operating in the red. But technology has changed the face of peak bargain shopping and brought with it a boon to the last-mile delivery segment. The U.S. Postal Service expected to deliver 800 million packages between Thanksgiving and New Year’s Day. UPS braced to handle about 32 million packages per day from Nov. 29 through Dec. 30 — 60% more than the rest of the year. FedEx expected to handle more than 33 million packages on Cyber Monday alone. If you add all those packages up, that’s the equivalent of every resident of the state of Texas getting 30 packages each, or everyone in the United States getting two. Deloitte’s 2019 Holiday Shopping Survey, a national sample of 4,410 consumers, indicate Cyber Monday shopping – which largely takes place online the Monday following Thanksgiving – has surpassed Black Friday in post-turkey day shopping relevance, with 53% of respondents saying they plan holiday shopping around Cyber Monday, versus 44% who say they plan around Black Friday. Deloitte forecasts 2019 will see up to $149 billion in digital retail sales and estimates e-commerce holiday sales will grow 14% to 18% percent over 2018. According to Adobe Analytics, Black Friday 2019 online sales reached $7.4 billion – the second-largest online shopping day ever, second only to 2018’s Cyber Monday – a mark that would stand for only three more days, as online shoppers spent $9.4 billion on Cyber Monday 2019, 20% more than 2018. Online shopping means on-road shipping, and shipping means trucks, but unsurprisingly the general public – some of whom may have dropped upwards of $1,000 on a new television – doesn’t want to pay for having it brought to them. A full 85% of Deloitte’s survey respondents said they prefer free shipping over fast shipping. Among shoppers who prefer free shipping, 80%-plus are willing to wait three

Convey’s survey found that four in 10 shoppers said late delivery was their biggest concern, ahead of having the package stolen.

days or more. Similarly, a consumer survey conducted by delivery experience management firm Convey found that more than 65% of shoppers would accept slower delivery services if delivery was free. And not just free delivery. Free two-day shipping, according to 80% of Convey respondents (thanks, Amazon). “This last-mile supply chain, or how the product is delivered to consumers, has become another key battleground,” the Deloitte survey noted. “In early communications and advertising for the 2018 and 2019 holiday seasons, delivery and fulfillment communications are moving to the forefront.” Holiday shoppers spent $81.5 billion online between Nov. 1 and Dec. 2, according to Adobe, and Convey’s survey found that four in 10 shoppers said late delivery was their biggest concern, ranking it ahead of having the package stolen by a porch pirate. “For brands that like to think they aren’t competing with Amazon, the data clearly suggests that shoppers think they are,” said Kirsten Newbold-Knipp, chief growth officer for Convey. As much as the trucking industry derides government regulation, the expectation that Amazon has set for on-demand delivery has eroded any remaining flexibility.

JASON CANNON is Editor of Commercial Carrier Journal. E-mail jasoncannon@randallreilly.com.

COMMERCIAL CARRIER JOURNAL

| JANUARY 2020

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LEADING NEWS, TRUCKING MARKET CONDITIONS AND INDUSTRY ANALYSIS

Celadon, unable to overcome financial scandal, closes doors

eladon (CCJ Top 250, No. 41) last month announced it would cease operations, signaling the trucking industry’s largest Chapter 11 bankruptcy filing to-date. The only business unit spared in the sweeping closure was Celadon’s Hope Mills, N.C.-based Taylor Express subsidiary, which will remain operational while the company works toward a sale. Paul Svindland, chief executive officer for Celadon, blamed multiple factors for the Indianapolis-based company’s demise, including ongoing legal troubles and expenses surrounding a financial scandal uncovered in 2017 and its debts. “When combined with the enormous challenges in the industry and our significant debt obligations, Celadon was unable to address our significant liquidity constraints through asset sales or other restructuring strategies,” Svindland said. The news of the company’s closure came just days after former chief operating officer, William Eric Meek, and former chief financial officer, Bobby Lee Peavler, were charged by the U.S. Department of Justice on counts of securities fraud, wire fraud, bank fraud and lying to investigators. Another former employee, Danny Williams, pleaded guilty in May to criminal charges as part of the same scandal. Celadon’s shuttering of operations will displace thousands of drivers and employees as the company winds down, but it also pulls more than 3,000 trucks and tractors – and nearly 10,000 trailers – off the highway for potential liquidation. “Fortunately for the used market, Celadon recently started taking delivery of 2019 and 2020 models, which are valuable, but the additional hundreds of sleepers entering the market in 2020 will basically be a piling-on scenario,” said Chris Visser, J.D. Power senior analyst and product manager for Commercial Vehicles. “Celadon’s trucks will be additional supply in a market that’s already oversaturated.” Scan the QR code with your smartphone or visit ccjdigital.com/news/subscribe-tonewsletters to sign up for the CCJ Daily Report, a daily e-mail newsletter filled with news, analysis, blogs and market condition articles.

COMMERCIAL CARRIER JOURNAL

| JANUARY 2020

Multiple Celadon drivers reported receiving this message, deployed by the company at 12:45 a.m. Dec. 9.

Avery Vise, vice president of trucking for FTR, said it’s possible that many of Celadon’s trucks never see the open market. “It is likely that much of that equipment would be reassigned before hitting the retail used market, perhaps even acquired by some of the carriers that end up with Celadon’s book of business,” he said. However, should Celadon elect to liquidate its truck assets, Visser estimated an influx of those units early next year will affect the market, which already is trending toward a pricing low point set in late 2016. “If new truck deliveries industry-wide are running in the low-20,000 range, and we’re in a one-for-one trade scenario, the impact from Celadon should be mild to moderate,” Visser added. “We’re on the back end of a cycle that was more volatile than most due to the short-term economic juice from 2018 tax cuts and incentives, compounded on the downside by the tariff war.” Celadon’s sudden closure also left shipper customers hunting for new options to move freight, and Peggy Dorf, senior analyst for DAT, said that could cause temporary hang-ups in isolated markets or lanes, “but at the national level, even 3,000 trucks don’t have a big impact on capacity or rates in today’s market conditions,” she said. However, Vise said there could be short-lived issues on the spot market, where capacity is currently tight, near a recordlow in terms of available trucks. Also, the spot market isn’t as fluid as it historically has been, he said. “When we have a big disruption like a carrier with thousands of trucks going out of business ... there’s potential” for a brief spot market impact, Vise said. – Jason Cannon and James Jaillet contributed to this report.

JOURNAL NEWS

EPA erred in glider kit regulatory repeal attempt, watchdog finds

he U.S. Environmental Protection Agency’s internal watchdog panel said the agency skirted required steps in the process of crafting a rule to repeal regulations that capped production of glider kit trucks. The finding delivers another blow to an early Trump-era push to roll back the regulations, though it has no immediate impact on current glider kit production. The glider kit limits have remained in place since taking effect in 2018, with EPA having tabled the repeal well before the investigation by its Office of Inspector General began. OIG released the results of its findings Dec. 5. EPA’s OIG did not question the rule’s contents — that is, its intentions to repeal the regulations. Rather, it concluded that EPA did not produce analyses on cost-benefit and health impacts, which are required by federal law when an agency undertakes such a rulemaking. It’s unclear whether EPA will proceed with the rule. It has been tabled since mid-2018. The glider kit regulations were included in the Phase II truck and trailer emissions rule enacted in 2016 by the

Obama-era EPA. Under the rule, glider vehicle manufacturers are limited to building 300 trucks a year that don’t meet Phase II standards for emissions of greenhouse gases, nitrous oxide and particulate matter. Fitzgerald Glider Kits, the country’s largest glider kit builder prior to the implementation of those regulations, had been manufacturing 5,000 to 10,000 kits a year. Starting in 2021, all glider kits must meet the emissions standards stipulated by the Phase II rule, meaning they likely would need to be outfitted with a 2010 or newer engine. Fitzgerald and others pressed the EPA in 2017 to reconsider the glider kit regulations, arguing they effectively would end the glider truck business. Company representatives met with then-EPA Administrator Scott Pruitt, who initiated the repeal rule shortly thereafter. The agency then published a proposed rule in November 2017 intending to unwind the glider limits. However, the proposed rule was met with a wave of pushback. The study used to justify the repeal was called into

Fitzgerald Glider Kits, the country’s largest glider kit builder prior to the implementation of regulations that capped glider kit production, had been manufacturing 5,000 to 10,000 kits a year.

question, and the school that produced the study, Tennessee Tech University, announced in October 2018 that the study was flawed and that EPA should disregard its conclusions. EPA already had tabled its rulemaking by the time the university made that announcement. A separate competing study produced by EPA in 2017 also had come under scrutiny, but EPA’s OIG last August released a report stating that study was sound and its conclusions were valid. That study was produced in response to the push to repeal glider kit regulations and was not used to develop the initial 2016 regulations, which originally were proposed in July 2015. – James Jaillet

FMCSA delays rule for new entry-level training standards

he Federal Motor Carrier Safety Administration is delaying the implementation of its rule establishing new training standards for entry-level truck drivers for two years due to delays in the setup of the IT system. The rule was set to go into effect Feb. 7, 2020, and would apply to commercial driver’s license applicants who receive their licenses after that date. It now will not take effect until Feb. 7, 2022. Required training – both classroom and behind-the-wheel driving – in the

rule includes the basic operation of a vehicle, vehicle control systems and dashboard instruments, pre- and posttrip inspections, backing and docking, distracted driving, roadside inspections, hours of service and more. The training must be completed by an FMCSA-approved provider from the Training Provider Registry established by the rule. FMCSA last July already delayed the implementation of two parts of the rule — the requirement that trainers

The rule has been delayed for two years and now will apply to CDL applicants who receive their licenses after Feb. 7, 2022.

upload drivers’ certification information into the agency’s database, and the requirement that states confirm that CDL applicants have complied with the new training standards before allowing them to take a CDL skills or knowledge test. – Matt Cole

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SPONSORED INFORMATION

Radar guns and traffic tickets I

defend traffic citations for a living, and have for years, so I am up to speed on traffic law. I thought it was universally understood that if you are in your personal vehicle, the first 5 mph over the limit are free. Turns out, I was wrong. Recently, I had a roadside conversation with an officer regarding my alleged speed. This officer had not gotten the memo about the “first 5 mph are free.” In fact, when I pulled over, the officer asked if I knew how fast I was going and, of course, I said no (for the record that is always your answer as your response could be an admission of guilt and used against you in court). I was invited back to view the readings on the laser gun. Turns out the dang thing said I was allegedly speeding. Of course, I immediately started thinking of how to defend the citation and laser readings in particular. Everybody knows that law enforcement uses radar and laser guns to determine if a vehicle is speeding. Keep in mind that once an officer sees you break the law, he or she has probable cause to stop you and sometimes those stops can yield a lot more than a speeding ticket. You could receive a DUI or, if you are lucky, find that you have a warrant for your arrest and that speeding ticket is just a small problem. If you are stopped based upon the radar or laser gun information, it is possible to challenge that stop due to the mechanical and electrical limitations in all radar or laser guns. These speed detecting guns both send and receive signals, either radar or light waves, and based upon the Doppler Effect can calculate the speed of the vehicle. Yes, these speed guns are elaborate and sensitive equipment that require regular and adjustment and calibration by the user. For example, the radar gun manufacturer recommends calibration with a tuning fork before every use, but states may require testing and calibration on a less frequent basis, such as once before the officer’s shift starts. Officers are required to have proper, current training on the equipment they use to determine whether you were speeding. That means you have the opportunity to verify in court they do in fact have that training and they did the proper calibrations as required by their state or jurisdiction requirements. When you are in court defending yourself, you should address the following with the officer: Are you on the current police force?; how long have you been an officer?; did you use a radar or laser gun to determine I was speeding?; do you have the required training to use that device?; show me your certificates of training; do you calibrate and maintain that device?; show me your certified maintenance and repair logs for that device; show me your logs for calibrating that device for the 30 days prior to and including the date you issued me the speeding ticket in question; if you did not do the maintenance on the device, who did and where are the certified logs for the maintenance?; did you use any equipment to calibrate the device, and if so, what, and can you produce it for the court to review?; how many tickets do you write each month based upon the displays from the device? You can ask these questions but must know what to do when you get the answers to best protect yourself from the speeding ticket. That is why I recommend that when you receive that ticket, you hire an attorney rather than try and defend it yourself.

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JOURNAL NEWS

INBRIEF 1/20 • The Federal Motor Carrier Safety Administration denied a petition from four environmental emergency response companies for relief from the 14-hour hours of service regulation. Hepaco, Heritage Environmental Services, Lewis Environmental and Moran Environmental Recovery requested the exemption in August 2018 for drivers assisting in environmental emergencies. The companies asked that their drivers be able to work up to 18.5 hours of nonconsecutive on-duty time before a reset. FMCSA said there is no basis to allow driving after the 18th on-duty hour. • Republic Services, a solid waste collection company with about 16,000 trucks and 15,500 drivers, petitioned FMCSA for permission to extend the 12-hour on-duty period for the short-haul hours of service exemption to 14 hours. Republic said its drivers routinely qualify for the short-haul exemption but occasionally can’t complete their daily duties in 12 hours. Go to Regulations.gov and search Docket No. FMCSA-2019-0369. • Recorded cargo thefts for the third quarter of 2019 increased in volume but decreased in value compared to the same period a year ago, according to cargo theft recording firm SensiGuard. The firm recorded 165 cargo thefts with an average loss value of $155,709, a 3% increase in volume and an 8% decrease in value. Electronics were the most stolen product type, making up 21% of recorded thefts. California had the most reported cargo thefts with 26% of the U.S. total, followed by Texas (10%), Georgia (9%) and Florida (8%). • Wisconsin became the 12th state to implement training for commercial truck drivers to recognize and help prevent human trafficking. Wisconsin Gov. Tony Evers signed into law a bill that requires truck driver training courses offered by technical colleges or private trucking schools to provide instruction on recognizing human trafficking. • The Indiana Department of Revenue and Department of Transportation announced that its new oversize/overweight permitting system will require additional time to implement and now is set to be launched this spring. • The Rhode Island Department of Transportation is changing the exit numbers on Interstate 195 from the I-95 interchange to the Massachusetts border. The change is part of RIDOT’s multiyear program to update highway numbering for interstates and other limitedaccess highways. The new exit numbers will match up with mile markers rather than the current system of the numbers being sequential. RIDOT will install temporary signs indicating the old exit number and will leave them up for an extended period of time. • Roadrunner Transportation System (CCJ Top 250, No. 31) sold its D&E Transport flatbed business unit for $30 million to an unspecified buyer, with proceeds going to pay down company debt. The move came two months after the 3,500-truck fleet announced it was downsizing its dry van division and cutting 450 jobs, roughly 10% of its workforce. Roadrunner in November also announced it had sold its intermodal division for $50 million. • Louisville, Ky.-based A&R Logistics (CCJ Top 250, No. 114), a supply chain services company for the chemical industry, acquired Plantgistix Holdings, a provider of packaging, warehousing and export services for the plastic resin industry. Plantgistix serves the world’s largest chemical producers from three facilities in the Houston area. This represents the second add-on for A&R under Wind Point Partners’ ownership following the addition of Blue Water Plastic Transport in June 2019.

JOURNAL NEWS

Fleets cutting Californiabased owner-operators

andstar and Prime Inc. are the latest major fleets to announce they’d be cutting ties with owner-operators based in California over the state’s restrictive labor law that took effect Jan. 1. The fleets said any truckers who wished to remain with them as owner-operators must move out of state. Prime (CCJ Top 250, No. 13) said it will offer its California-based owneroperators relocation packages. The Springfield, Mo.-based company also said it would allow owner-operators to transition to company drivers to remain with Prime in California. Landstar (No. 8) confirmed that it is calling its Californiabased owner-operators to discuss options, but the Jacksonville, Fla.-based fleet would not elaborate on available options. Landstar owner-operators familiar with the calls have said the choice is simple: Leave California, or “they’re done at Landstar,” said one such owner-operator, speaking anonymously. California’s restrictive Assembly Bill 5, made law in October and set for enforcement beginning in January, effectively makes it illegal for fleets to contract with owner-operators under their authority. Swift and Knight, part of Phoenix-based Knight-Swift Transportation Holdings (No. 4), reportedly cut ties with its California owner-operators earlier this year, offering those truckers the option to leave the state or sell their equipment to the fleets and become company drivers. The California Trucking Association and two independent owner-operators based in the state have filed a lawsuit that seeks to derail the state’s law, specifically targeting the test for determining whether a worker should be classified as a company employee or an independent contractor. The ABC test, set in place by the California Supreme Court in April 2018 in the Dynamex case and then made state law via A.B. 5, mostly prohibits carriers from contracting freight to leased or independent owner-operators. The law could impact more than 70,000 owner-operators in the state, said CTA head Shawn Yadon. “The bill wrongfully restricts their ability to provide services as owner-operators and, therefore, runs afoul of federal law,” Yadon said. CTA’s Chris Shimoda said the group also intended to work with California lawmakers to find a way for legitimate owneroperators to continue working in the state and for carriers to continue contracting with owner-operators. CTA’s lawsuit argues that the 1994 Federal Aviation Administration Authorization Act places the federal government in charge of regulating trucking and that California’s law should be superseded by federal regulations. CTA is asking the court 10

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Jacksonville, Fla.-based Landstar was contacting its Californiabased owner-operators to “discuss some options relating to the potential impact of” A.B. 5.

to provide an injunction relief for trucking from both A.B. 5 and the Dynamex decision. Litigation such as this is the “most viable solution” to the problems presented to trucking by A.B. 5, said Joe Rajkovacz of the Western States Trucking Association, speaking from the annual conference of the National Association of Small Trucking Companies. WSTA recently withdrew its own lawsuit that was on appeal after an adverse decision by a federal district judge. New Jersey has introduced similar legislation in its Congress. Like California’s A.B. 5, New Jersey’s S. 4204 would restrict businesses’ ability to use independent contractors and in effect block trucking companies from contracting with owner-operators. However, as has happened with California’s law, legal challenges likely would mount should the bill prevail. In that case, the ultimate stop for such lawsuits could be the U.S. Supreme Court, which could have the final say as to whether the restrictive anti-owner-operator laws will remain in place. Bob Roginson, a partner at the law firm Ogletree, Deakins, Nash, Smoak & Stewart, said New Jersey’s law is nearly identical to California’s. Roginson is representing CTA and the two independent owner-operators in their lawsuit against A.B. 5. That lawsuit is currently at the Ninth Circuit Court of Appeals — a federal appellate court a step below the U.S. Supreme Court. New Jersey’s S. 4204 bill, filed into the State Senate, intends to enact the same ABC test as the state’s go-to for determining worker classification across industries. If challenged via the courts, a subsequent lawsuit could make its way to the Third Circuit Court of Appeals. “I think it’s clearly setting up for a likely split,” Roginson said of the potential circuit court decisions. He feels the Ninth Cir-

JOURNAL NEWS cuit will side with him, CTA and the owner-operator plaintiffs in their case in California. He bases that on standing Ninth Circuit decisions, which have deemed the Borello test as more legitimate for determining whether a truck driver is a company employee or an independent contractor. Borello “was held by the Ninth Circuit as to not be pre-empted so long as it’s fairly enforced, and that’s where we would like to get back to,” Roginson said. Whether either circuit will side with or against the use of

ABC tests in trucking is unclear, and decisions could be years off. But if the rulings are split – one for and one against – the issue would be ripe for the nation’s high court, Roginson said. Split circuit court decisions “normally would mean the U.S. Supreme Court would weigh in and resolve any lingering disputes,” he said, adding that it may be best to have the issue “confirmed and clarified” by the Supreme Court one way or the other. – James Jaillet

Connecticut governor proposes trucks-only tolls; Rhode Island tolls lawsuit remains unsettled

proposal from Connecticut Gov. Ned Lamont released Dec. 6 outlines his plan to fund the state’s transportation budget with tolls aimed solely at trucks. His announcement came on the heels of a court ruling that allows the lawsuit over Rhode Island’s trucks-only tolls to proceed in federal court. In a letter to state legislative leaders of both parties, Lamont, a Democrat, calls for trucks-only tolls on 12 bridges along major Connecticut thoroughfares. Rates would vary by location and whether drivers have an E-ZPass or have their plates registered in the state, but truckers could be charged between $6.40 and $19.20 at each of the 12 toll locations. The plan follows months of back-andforth between Democrats and Republicans on transportation funding. Lamont, who was elected in 2018, campaigned on bringing trucks-only tolls to Connecticut to help fund transportation projects but backed off the plan due to truck tolls not generating enough revenue to upgrade the state’s infrastructure, as well as ongoing legal challenges to Rhode Island’s tolls. In November, Lamont proposed his CT2030 transportation funding plan that included tolling both cars and trucks, but state Democrats, who control both chambers of the State Legislature, were not keen on tolling constituents

and countered with a plan for trucksonly tolls. Republicans have come out against tolls altogether, instead proposing to use the state’s budget reserves to free up cash flow for transportation funding. Joe Sculley, president for the Motor Transport Association of Connecticut, said that while state Democrats were opposed to tolling passenger cars because they don’t want to toll constituents, Census Bureau data shows that 62% of freight moved by truck in Connecticut is done completely within state lines and that only 26% of freight moved by truck into the state is from out-of-state companies. “This is freight that is directly part of Connecticut’s economy,” Sculley said. “So this is a proposal to tax the freight while it’s on the way to the marketplace, where it will then be taxed again when the consumer or end-user makes their purchase. For all the talk about out-ofstate trucks, this data shows that trucksonly tolls will be merely another blow to our state’s economy.” Sculley also said MTAC remains opposed to tolls on existing infrastructure and that litigation “is a definite possibility” if trucks-only tolls are passed and signed into law. Opponents of truck tolling scored a small victory in court in early December

Connecticut Gov. Ned Lamont laid out his plan for trucks-only tolls at 12 bridges in the state.

when a U.S. Court of Appeals ruled that the American Trucking Associations’ lawsuit over Rhode Island’s trucks-only tolls could be heard in a federal court. A district court ruled in March that Rhode Island’s tolls were considered taxes under the Tax Injunction Act, which states that federal courts do not have jurisdiction over state taxes. ATA’s lawsuit argues that the tolls discriminate against interstate trucking companies and are unconstitutional because they “impede the flow of interstate commerce.” Lamont said he is “confident that the legal arguments for truck tolls will prevail.” “The ruling says nothing about the strength of the underlying legal challenge to trucks-only tolls, which far from being a burden on interstate commerce are a commonsense way to benefit that commerce by asking the in- and out-of-state commercial trucks that do the most damage to our roads to pay their fair share of maintenance and congestion mitigation projects,” Lamont said. – Matt Cole

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EDITOR’S NOTE: The following is a roundup of coverage of the CCJ Solutions Summit held Nov. 18-20 in Scottsdale, Ariz.

Breaking up is hard to do: How and why to dump shippers

“H

ey dude, this sucks. I’ve got to tell you something.” This is how Amanda Schuier starts a breakup conversation with unprofitable customers. The audience listening to Schuier’s story laughed, but then she turned serious. “We are in such a delicate balance right now in terms of figuring out who we can move on from and who we can’t,” she said. According to a recent survey by CCJ, 57% of fleet respondents said they rarely terminate business with a shipper customer. Schuier is senior vice president for Freeport, Ill.-based Quality Transport, a truckload carrier with 31 power units. On Nov. 18 in Scottsdale, Ariz., she participated in a panel discussion at the CCJ Solutions Summit, “Moving On: Lose The Customers You Are Losing Money With.” In 2018, motor carriers could afford to be selective of customers and shipments. In 2019, difficult decisions needed to be made, which can be even more excruciating for small fleets that need immediate cash flow by sticking to established customers, even when those customers are unprofitable. As freight volumes dropped off in 2019, shippers’ attitudes are “probably that they are not going to have to pay decent rates until after the next presidential election,” said panelist John Miller, managing partner for Plains Dedicated, a motor carrier and logistics provider based in ChampionsGate, Fla. “We all got giddy when rates went up [in 2018],” Miller said. “I think shippers felt like we burned them a bit.” Before parting ways with unprofitable customers, Quality Transport tries 12

commercial carrier journal

From left, CCJ Editor Jason Cannon moderated a panel discussion on unprofitable shippers with Amanda Schuier, senior vice president for Quality Transport, and John Miller, managing partner for Plains Dedicated.

to restructure the relationship where possible, such as by divesting long-haul routes and retaining the customers’ regional lanes. “We are still trying to maintain that relationship, but we are kind of letting them down slowly,” Schuier said. It may not make sense to walk away completely, and in some lanes, “we do take a loss … because maybe they are a customer that has a lot of freight with us.” One strategy that has been working for Quality Transport is asking its unprofitable customers for permission to broker out loads to third-party carriers, she said. Each month, Miller analyzes the revenue per mile by customer and lane to identify seasonal trends for Plains Dedicated. This helps the fleet plan ahead to find new customers and freight lanes before its business slows. He also looks at cost per mile and time for loads, along with other costs, to determine when to cut ties with unprofitable customers. Plains Dedicated, a refrigerated carrier, operates a fleet of 20 owner-operators. On average, the company cycles through its top three or four customers every 4.5 years. It is important, Miller

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said, to “make sure every day you are developing new business … so you can walk away if you need to.” Shippers that are unwilling to pay accessorial charges for detention, fuel surcharges, rebooking fees and other areas quickly rise to the top of Miller’s list of customers he wants to lose, and in the refrigerated business, “everybody knows” which shippers are notorious for not paying detention, he said. Shippers that will allow the carrier to increase its line-haul rates to cover the costs they do not pay as accessorial charges are the customers it will keep, he said. Miller believes the trucking industry will regain pricing power in the next two years, and when it happens, “the [shippers] who are doing RFPs (request for proposals), just run from them until they wake up, and when they wake up, just gouge them,” he joked. Capacity already may be starting to tighten based on recent successes that Schuier and Miller have experienced when asking for rate increases. “People are aware that trucking is getting a little bit tighter,” Miller said. – Aaron Huff

JOURNAL SOLUTIONS SUMMIT

2020 projected to be ‘a tough year’ for trucking

usiness conditions in 2019 were more challenging for carriers than 2018, a year that held two of the best quarters of revenue in trucking’s history. Tax cuts in 2017 boosted activity to white-hot levels in 2018, but tariffs threw cold water on it midyear and accelerated the economy’s return to a more normal trend during 2019. “We believe about 20% of the profitability from publicly traded carriers comes from these tax cuts,” said ACT Research President Kenny Vieth, who led an economic session Nov. 19 at CCJ ’s Solutions Summit in Scottsdale, Ariz. “In the first quarter of 2018, the world was awash in manufacturing good news,” Vieth said. But tariffs quickly started to suppress that growth, he said. “Tariffs have been the driver in slowing down the entire global economy.” Tariffs and a looming trade war raise the risk of an economic recession, and Vieth said that an industrial recession in the United States is already underway, which has led to a freight recession across all segments. “The evidence overwhelmingly suggests 2020 is going to be a very, very tough year,” he said. “Freight recovery is dependent on the speed at which equipment supply and freight demand are brought back into line.” Active capacity is up 10% over early 2018 – the fastest fleet capacity growth since 1999 – but Vieth said re-emerging productivity trends negate a still-growing economy. Freight down markets tend to last from one to two years, Vieth said. “We’re really a full year into this at this point,” he said, adding that he expects freight to stabilize and even grow in 2020 and into 2021.

ACT Research President Kenny Vieth said re-emerging productivity trends negate a stillgrowing economy.

Private fleets have taken up to 5% of market share from for-hire carriers, which has helped pull down per-mile rates. The gap between contract and spot rates last year, Vieth said, was about 18 cents per mile, and October data suggests contract rates could fall another 5% to 10% early into 2020. Vieth said contract rates were down about 2% in late 2019, but that didn’t significantly impact profitability that was fueled by tax cuts. Margins were still at near-record levels among publicly traded carriers but were down about 6% from 2018, he said. The resolution of the U.S-China trade stalemate has a high upside for trucking, Vieth said, as it would “accelerate the global economy, spurring a strong rebound in commodity pricing and machinery demand.” Carriers, bolstered by high rates and customers desperate to move goods, added a lot of new equipment in 2018 and pushed truck orders to record levels. But now, Vieth said, there’s about 75,000 more tractors in the market than are needed to haul freight, “roughly about 5% too much tractor capacity,” he said. Capacity rebalancing hasn’t started yet, and Vieth believes January 2020 capacity will be up 13% from January 2018. Trailer orders last October, hitting

31,800 units, signaled some level of confidence in the freight markets going into 2020. ACT Research said heavy truck orders last October reached 22,100 units, their highest level since November 2018. However, October 2019 order activity was the weakest performance for the month since 2016 and was 51% lower than October 2018, signaling a subdued beginning to the traditional start of the ordering season. Declining truck order rates would help accelerate a resurgence in freight rates, Vieth said, but more trucks in the market hasn’t necessarily led to more problems finding people to drive them. “We have had an easing of the driver shortage,” he said, which has lessened capacity constraint. Vieth said the industry added about 2,000 drivers last year and suggested forecasts indicating the industry will see a driver shortage of upwards of 160,000 people over the next decade – a figure that would account for the movement of roughly 10% of all road freight – are wildly incorrect. “If 10% of the freight wasn’t moving, we would have the worst recession that we’ve had since 1933,” he said. “The economy can’t grow if freight can’t move. Not having drivers is not an option.” – Jason Cannon

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JOURNAL SOLUTIONS SUMMIT

Climbing court-ordered payouts sparking hike in insurance renewals

“N

uclear” verdicts by juries in the last decade will cause insurance premiums to go up between 20% and 25% when carriers renew their policies in 2020, “even if they are doing an outstanding job,” a speaker told fleets Nov. 19 at the CCJ Solutions Summit in Scottsdale, Ariz. Insurance companies in the trucking market have been running 120% loss ratios for the last seven to eight years, and “it is going to be a really hard year for renewals,” said Bert Mayo, vice president of risk solutions for insurance broker TrueNorth Companies. To be able to afford insurance, carriers may have no choice but to raise deductibles and lower liability coverages. They might raise their deductibles from $50,000 to $100,000, and lower their coverages from $5 million to $3 million per incident, Mayo said. “I don’t mean to be the bearer of bad news, but that is what’s out there,” he said. Mayo also outlined reasons why the proposed hours of service rule likely will become law. Besides the obvious political reasons for “voter grab,” the proposal gives fleets and drivers more flexibility without the Federal Motor Carrier Safety Administration

compromising safety, he said. The proposed changes would: • Extend the radius of the short-haul exemption from 100 to 150 air miles. Currently, only fleets that operate within a radius of 100 air miles are not required to keep a record of duty status (RODS) or take a 30-minute break. • Extend the maximum on-duty limit of short-haul fleets to 14 hours, up from 12 hours. • Increase the maximum 14-hour on-duty period by two hours to allow for up to 13 hours of drive time and up to 16 hours of on duty for “adverse conditions,” meaning unforeseen events such as weather. • Split up the 10-hour off-duty rest period, either by taking eight or seven hours in the sleeper berth and then spending two or three hours in off-duty status. The off-duty breaks would not count toward a driver’s 14-hour on-duty window. • Allow drivers to satisfy the 30-minute break requirement by using offduty status. Drivers can extend a break for up to three hours without counting it as on-duty. Mayo said the split duty for sleeper berths and the 30-minute break will

Bert Mayo, vice president of risk solutions for TrueNorth Companies, said carriers may have to raise deductibles and lower liability coverages.

have the greatest impact on fleets and driver productivity. He also was enthusiastic over the short-haul exemption because, as an insurance broker, he deals with lot of drayage operations. A 150 air-mile radius and 14 hours of on-duty time “is going to make drivers more efficient, productive, equipment utilization go up,” Mayo said. He also addressed two gray areas in the HOS rule that motor carriers will have to use judiciously: adverse conditions and personal conveyance. “With all the tools we have at our disposal,” such as electronic logging devices, mapping data and other technologies, “we know what is happening when and where,” Mayo said. It would be difficult for a carrier or driver to claim that using adverse conditions is justified when traveling through a January snowstorm in Colorado on Interstate 70, he said. Mayo advised fleets to not let drivers spend more than one hour in personal conveyance to avoid potential logbook violations. – Aaron Huff

Turn your maintenance shop into a profit center

hen your fleet’s maintenance shop has downtime, it’s almost as costly as when a truck is down over-the-road. Attendees at CCJ ’s Solutions Summit in Scottsdale, Ariz., heard from a carrier that has put its shop to work with outside jobs to keep its technicians busy and bring in extra profits at the same time. During a session titled “Setting Up Shop: How to Turn Your Maintenance 14

commercial carrier journal

Department into a Profit Center,” Marc Scibilia with Taylor, Mich.based Atlas Trucking discussed the challenges and rewards of installing a new business line in the shop. Lew Flowers, president of Flowers Fleet Services, also spoke during the session. This year, Atlas opened a 73,000-square-foot three-shift 24-hour commercial repair facility. Today, 15

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technicians for Atlas Fleet Services not only service the company’s growing fleet of trailers and mixed trucks – now up to 130 units from various OEMs – but also provide around-the-clock forhire maintenance service for the trucks of their Detroit Metro area competitors, owner-operators throughout the region and overflow work from local dealerships. The business line accounts for about 25% of Atlas’ overall revenue.

JOURNAL SOLUTIONS SUMMIT

Timing truck’s lifecycle means balancing efficiency, asset disposal

valuating the truck makes and models that best fit a fleet’s operation – and drive the best cost of ownership – can be a long and arduous process, but knowing when to sell or trade that equipment can be just as important. Advancements in new trucks have made studying trade cycles critical for carriers looking to maximize their investment. Al Barner, senior vice president of strategic fleet solutions for Fleet Advantage, who spoke Nov. 19 at CCJ ’s Solutions Summit in Scottsdale, Ariz., is a proponent of shifting from functional obsolesce – “how many years could I run this truck?” – to economic obsolesce, or “how many years should I run this truck?” “Once you get beyond that warranty period, you start to invest money in trucks that you’ll never get back,” he said. “Once you sink that money into that asset, you’re almost forced to run it until you get that money out.” Equipment age pulls down fuel economy, Barner said. “We consistently see an upward trend in fuel economy (each model year),” he said. In fuel economy alone, fleets can save upwards of $910 per truck per month from the

2013 model year to 2020 over a 70,000mile period, he said. The biggest opportunity for savings, Barner said, is in maintenance expense, which can climb upwards of nine times from year one to year seven of the truck’s lifecycle. Over 500,000 miles, maintenance can make up 11% of the truck’s total cost, the third-largest percentage behind fuel (61%) and depreciation (25%). All-in savings from a 2014 to a 2020 model-year truck are more than $21,000 per year, about $17,000 of which comes from reduced maintenance and repair costs, Barner said. “When you get to that threshold of warranty, your costs go up,” he said. “Shorter asset lifecycles are proving more cost-effective toward an organization’s bottom line.” While run costs are mostly consistent under the truck’s warranty period, extended warranties aren’t a magic-bullet solution, said Barner, who suggested they be evaluated on a per-unit basis. As newer and more sophisticated technologies are heaped on trucks, even fleets that provide service in-house may not see meaningful maintenance savings as units age. “10, 15 years ago, you knew what you

had with a truck,” Barner said. “I don’t know if that’s true anymore. Technology is more and more complicated. If you have your own shop, are you comfortable with your technicians fixing a safety component?” The timing of when to dispose of a truck doesn’t rely solely on its maintenance schedule and fuel consumption. Its position on the balance sheet also comes into play, said Barner, who noted the selling price of a seven-yearold truck is currently the lowest it’s been since 2010, but there’s been a 3% increase on three-year-old trucks. To sell trucks in a three- to four-yearold window for their assessed value on the balance sheet, “you have to be really good at remarketing trucks,” he said. – Jason Cannon

The facility features 10 service bays, an alignment bay and a multipurpose bay and has the capacity for 32 tractors. Minor repairs can be handled in Atlas’ Rapid Assessment Bay in a couple of hours, Scibilia said. The facility has slashed Atlas’ downtime by upwards of 80 percent “at least,” he said. The company’s $4 million investment also included multiple diagnostics platforms to accommodate a customer base operating everything

from heavy-haul trucks to expediter vans, as well as hand-selected technicians and specialists to handle the work. Atlas openly solicits new maintenance business from its competitors, which Scibilia said has caused some “strange looks” along the way, but he said there’s enough freight to move for all parties to be successful. “We’re all in the same game,” he said. “There’s enough of it to go around. In fact, there’s more than

enough to go around.” Scibilia said the Fleet Services business doesn’t weight Atlas’ needs with any priority over its public customers and has gone to great lengths to ensure that customers wouldn’t feel like there’s any risk in their equipment being shuffled to the end of the line. “We do keep a couple spares onhand so owner-operators and the outside customers can take priority,” he said. – CCJ Staff

Al Barner, senior vice president of strategic fleet solutions for Fleet Advantage, said equipment age pulls down fuel economy.

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JOURNAL SOLUTIONS SUMMIT

Diving into data can lead to valuable business insights

fleet’s data is a valuable asset, but its value is not measured in terms of volume. The value comes from turning data into actionable insights and monetizable strategies. “Most of the marketing data we have is something our customers want to keep private,” said John Reed, chief information officer for Aim Integrated, during a presentation Nov. 20 at CCJ ’s Solutions Summit in Scottsdale, Ariz. From backend data generated by logistics and customer service platforms to data spit out by the engine byway of diagnostics, that information, properly filtered, can lead to several potential business-improving insights. Jason Meares, senior manager of Logistics Systems for Crestwood, said weakened demand and downward price pressure from declining crude oil prices created economic challenges for his company in late 2014. He said Crestwood started combing through data it already generated as part of a “transportation transformation” effort. In October 2016, Crestwood implemented an automated fuel interface, which enabled the daily import of all fuel card transactions from its fuel card provider into its transportation management system (TMS). Early last year, Crestwood leveraged its Microsoft Power BI platform on top of its TMS to analyze more than two years of accumulated fuel spend data to identify opportunities to reduce diesel costs. Meares said Crestwood’s fuel spend was down more than $450,000 through the first six months of 2019 because of analyzing fuel and operational data and identifying and executing on opportunities found within that data to reduce fuel costs. “Opportunities included missed fuel discounts, drivers fueling out of network, opportunities to renegotiate existing discounts, opportunities to negotiate new discounts, as well as opportunities to renegotiate agreements with the fuel card provider,” he said. “The rich operational and fuel data helped to jumpstart the company’s diesel hedging program, which

“Driver satisfaction has improved by enabling them to manage hours of service and dispatches.” - Jason Meares, Crestwood 16

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“Most of the marketing data we have is something our customers want to keep private.” - John Reed, Aim Integrated has impacted fuel surcharges and lane margins.” In 2015, Crestwood implemented a separate dispatch system to manage its oilfield operations, but operating the fleet from two different dispatch systems created challenges that required drivers and office staff to use multiple systems and devices, created reporting limitations and costing the company more than $60,000 annually to operate. Last year, Crestwood rolled out a new telematics platform capable of managing its oilfield and non-oilfield operations through a single workflow application that is fully integrated into its TMS, allowing the company to auto-dispatch its trucks using a workflow process and enabling it to operate from a single dispatch system across its entire fleet. Meares said the move lowered telematics costs, and the elimination of the company’s legacy dispatch systems is on track to save the company $60,000 annually in software and cellular costs. “Driver satisfaction has improved by enabling them to manage hours of service and dispatches from a single system and device,” he said. A new document scanning app integrated with Crestwood’s imaging system provides clear, legible, digital copies of paperwork upon delivery of each load, enabling quicker invoice processing times, improved days sales outstanding (DSO) and increased customer satisfaction. Reed suggested that when evaluating customer data, fleets should dive deep into the details versus using averages, especially when it comes to calculating profitability. “You really can’t apply an average when it’s a [large] account,” he said, adding that averages may suggest fleets are making a slim margin that can be made up on volume, while in reality a carrier is losing money on every load. “With those customers, they are generally pretty needy.” Reed said high-maintenance customers tend to come with baked-in costs – after-hours calls, dinners and other perks, especially for high-volume customers – that aren’t revealed by averages. – Jason Cannon

JOURNAL PERSPECTIVES

A new decade TEA steady despite minor concerns BY LUCAS DEAL

espite a few significant quarterly shifts within individual shares, Truckable Economic Activity (TEA) was steady overall in the third quarter of 2019, MacKay & Company announced last month during its first TEA quarterly webinar. After posting 2.3% growth in Q2, TEA slipped only fractionally to 2.2% in Q3, buoyed by consistent strength in consumption and government spending and an increase of exports to offset a similar slip in imports. The strong quarter also extended the longest continuous economic growth period in American history to 126 months — six months longer than the March 1991 to March 2001 expansion. Yet despite strong overall numbers, Bob Dieli, founder and president for RDLB Inc. and MacKay & Company inhouse economist, says granular data within TEA does show a few economic weak spots. One is the economy’s growing dependence on trade. Dieli says imports and exports represented 14% of TEA in 1985 but are now 25%. Though TEA is different from GDP in how it calculates imports (GDP deducts imports entirely; TEA includes 50% of them because they “spend time on a truck,” Dieli says), the expanded overall influence of trade on the economy has increased its vulnerability. Another data point that Dieli says causes concern is how the previous six quarters compare to the six quarters that immediately preceded them when evaluated against 2012 chained dollars. Dieli says total TEA was $743.2 billion from 2017 Q1 to 2018 Q2, but just $398.9 billion from 2018 Q2 to 2019 Q3, with Truckable Investment, Exports and Imports all falling precipitously over the last six quarters. Dieli also references his Enhanced Aggregate Spread

The weakest element of TEA entering 2020 is exports, with imports and investments also somewhat lagging.

Though TEA is different from GDP in how it calculates imports (GDP deducts imports entirely; TEA includes 50% of them because they spend time on a truck), the expanded overall influence of trade on the economy has increased its vulnerability.

(EAS), which serves as his most detailed indicator for potential economic contraction. Dieli says every recession over the last three decades has followed a drop in EAS, and the index’s last reported total of 88 in July 2019 is well within its danger zone — less than 200 basis points. Forecasting out, Dieli summarizes the weakest element of TEA entering 2020 is exports, with imports and investments also somewhat lagging. Regarding exports in particular, Dieli’s TEA report notes “weaker overseas activity has already taken a toll on exports. Prospects for improvement are slim.” The webinar closed with a Q&A segment. Most of the questions touched on the trade dispute and the upcoming election. Regarding both, Dieli says it’s important to keep the news in perspective. “Often people have what we call ‘current-itis,’ ” he says. “They hear something happen and expect something else to happen in reaction the next day.” Dieli says TEA and the greater economy don’t work like that. Economic changes, even those generated by a presidential election, occur gradually over a number of months and years. “Don’t let the last headline be what makes the basis of your next decision,” Dieli says.

For more about TEA and to register to receive MacKay & Company’s quarterly TEA reports, go to https://www.mackayco.com/tea. commercial carrier journal

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PRODUCT REVIEWS, OEM & SUPPLIER NEWS AND EQUIPMENT MANAGEMENT TRENDS

Zero-emissions beer run Nikola, Anheuser-Busch, BYD collaborate on St. Louis delivery

nheuser-Busch, in partnership with Nikola Motor Co. and BYD Motors, completed a zero-emissions beer delivery in the brewer’s hometown of St. Louis. On Nov. 21, Nikola’s hydrogen-electric truck picked up the load of beer and delivered it to Lohr Distributors, a local Anheuser-Busch wholesaler partner, marking the first commercial delivery using a Nikola Nikola's hydrogen-electric truck picked up the load of beer and delivered it to Lohr Distributors. hydrogen-electric vehicle. Lohr then delivered the beer to the Enterprise Center, home of the National Hockey League’s St. Louis Blues, on a BYD electric truck. Last year, Anheuser-Busch placed an order for up to 800 Nikola hydrogen-electricpowered semi-trucks. In November, the brewer announced a pilot project with BYD in California at four AnheuserBusch distribution facilities across southern California. The 21 BYD electric trucks, as Lohr Distributors delivered the beer to the Enterprise Center, home of the St. Louis Blues, on a well as a 958.5-kW solar array BYD electric truck. to charge the vehicles, is North America’s largest Class 8 electric truck deployment to-date. Trevor Milton, chief executive officer for Nikola, said the Phoenix-area truck maker is “now preparing production vehicles for Anheuser-Busch” and plans on “delivering the WANT MORE EQUIPMENT NEWS? trucks as fast as possible.” WANT MORE EQUIPMENT NEWS? The week of the zero-emissions delivery, Anheuser-Busch Scan the barcode to receive the CCJ hosted Scan the barcode to sign up for the CCJ Equipment Weekly more than 100 strategic suppliers and partners in St. Equipment Weekly or go to ccjdigital.com/ e-mail newsletter or go to www.goo.gl/Ph9JK. Louis for its inaugural Eclipse Summit to discuss best pracnews/subscribe-to-newsletters ikola Motor Co.’sin hydrogen-electric tices and align on collective action sustainability. Both semi-truck will take center stage early next year as the cornerstone of a three-day 18 commercial carrier journal | january 2020 a fleet’s recipe for failure: The expectation that a new hire should hit the shop event the company will use to showcase its

Nikola to showcase hydrogen tractor

Nikola and BYD participated in the summit to highlight their technologies and the impact of their partnerships with the brewer. Nikola to debut new battery tech Prior to the beer run, Nikola also announced details of a new battery featuring energy density more than double current lithium-ion battery cells. The prototype cell, Nikola said, is the first battery to remove binder material and current collectors, enabling more energy storage within the cell itself. Milton said the new battery technology could increase the range of current EV passenger cars from 300 miles up to 600 miles with little or no increase to battery size and weight. “This is the biggest advancement we have seen in the battery world,” he said. “We are not talking about small improvements. We are talking about doubling your cell phone battery capacity. We are talking about doubling the range of BEVs and hydrogen-electric vehicles around the world.” Nikola will show the batteries charging and discharging at its Second Annual Nikola World later this year. Milton said by using the new battery technology – which the company will not protect with a patent – Nikola’s battery-electric trucks now could drive 800 miles fully loaded between charges, while trucks could weigh 5,000 pounds less than competitive models. Milton noted the development in new battery technology doesn’t change its plans for a wide-range deployment of hydrogen. “It equally helps hydrogen like it does [battery-electric vehicles],” he said. “It doubles the range of our hydrogen truck. Trucking needs fast and light trucks … hydrogen has that advantage.” – Jason Cannon

The vehicle displayed at the announcement of Iveco’s and Nikola’s joint venture was a model of the Nikola Tre 4×2 tractor planned for regional deployment.

Iveco, Nikola detail European joint venture

veco and its powertrain division FPT Industrial, along with Nikola Corp., last month presented the scope and plans of their partnership designed to accelerate Class 8 truck emissions neutrality in North America and Europe through the use of hydrogen fuel cells. The partnership includes the creation of a European joint venture to develop and distribute cabover hydrogen fuelcell and battery-electric trucks for the European market. Under the agreement, Nikola will provide fuel-cell expertise and advanced technologies along with its allinclusive lease rate business model. Iveco, with FPT, will contribute engineering and manufacturing expertise to industrialize the fuel-cell and battery-electric trucks. Speaking at the event in Turin, Italy, Hubertus M. Mühlhauser, chief executive officer for Iveco parent CNH Industrial, called the joint venture with Nikola a “testament to both partners’ technical expertise, which will result in tangible environmental benefits for Europe’s long-distance haulers.” “Our industry is changing fast, driven by tightening emissions regulations and younger generations demanding the creation of a circular economy to preserve the environment for their future,” added Gerrit Marx, president, Commercial and Specialty Vehicles. “Hydrogen and battery – depending on the [duty

cycle] – are the only viable solutions for green energy and have the advantage of enabling nations to become more independent from fossil fuels.” Iveco, FPT and Nikola already have started development of the joint venture’s first truck. The battery-electric Nikola Tre is based on Iveco’s S-Way platform and integrates Nikola’s truck technology, controls and infotainment. Testing is expected to begin later this year, with the European public launch planned for the IAA 2020 commercial vehicle exhibition in September. The vehicle displayed at the announcement was a model of the Nikola Tre 4×2 tractor planned for regional deployment with a range of up to 250 miles. The companies said the vehicle will feature a modular battery system with a total capacity of up to 720 kWh, which can be tailored to match different duty cycles. Nikola said the electric driveline will deliver nearly 650 hp of continuous power output with more than 1,300 lb.-ft. of torque. The Nikola Tre also will be available in two- and three-axle rigid versions, with GVWs ranging from 40,000 to 57,000 pounds for urban distribution and municipality routes. Sales and aftersales support will be provided by Iveco’s European dealer network. – Jason Cannon

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INBRIEF • Engine manufacturer Cummins said it would lay off around 2,000 employees in response to market conditions and that the layoffs were expected to be completed by the end of the first quarter of 2020. The company called the cuts “tough and disappointing” but said they were needed “to navigate this downturn and emerge stronger when markets return, just as we have done in the past.” Cummins employs around 62,000, and the cuts account for about 3% of its workforce. • SelecTrucks and Daimler Truck Financial now allow customers to purchase a preowned late-model Freightliner Cascadia truck for as little as $1,250 per month with a 60-day deferral for the first payment. A Freightliner-backed Select Warranty protects each truck in the program for up to three years. The warranty includes the Select After-Treatment System (ATS) Warranty for up to two years. • Penske Logistics (CCJ Top 250, No. 20) said its first two Freightliner eCascadias logged more than 10,000 miles in just over three months making multiple daily deliveries on dedicated routes in Southern California. The two trucks are part of Freightliner’s Electric Innovation Fleet and are being used to service a large quick-service restaurant chain. Penske plans to deploy 10 eCascadias in its Southern California operations supported by heavy-duty electric-vehicle charging stations at five Penske Truck Leasing facilities. • Volvo Group Venture Capital AB invested in Apex.AI, an autonomous mobility software company, to fund the development of a safety-certified software framework for autonomous systems. Apex. AI, based in Palo Alto, Calif., is building an automotive-grade Robot Operating System (ROS), an open source software framework used in robotics and autonomous systems research. • ERoad, a provider of transportation telematics services, launched ERoad Asset Tracker, a weatherproof product designed to make it easier for customers to track trailers, equipment and other powered assets via the company’s ETrack Wired device, which offers 4G connectivity, internal antennas for GPS and wireless and a builtin accelerometer. Any 12- or 24-volt power source runs the unit and charges the battery to provide locations, yard checks, miles travelled and engine time.

commercial carrier journal

Meritor unveils Uptime Services Group

Meritor’s Uptime Services Group will be based at the company’s parts distribution center in Florence, Ky.

eritor announced an initiative to get special order parts to customers faster. The company said its Uptime Services Group will accelerate the delivery of parts to customers in emergency situations and when vehicles require unscheduled repairs. The group will expedite the fulfillment of special orders for parts that are not in stock or in short supply, or not part of the regular inventory, and also will provide customers with a single point of contact for accurate delivery expectations. “We know how important uptime is to our customers, and we do everything within our power to expedite orders for the parts needed to get vehicles back on the road,” said Christy Westrich, director of customer loyalty for Meritor. The group will be based at Meritor’s parts distribution center in Florence, Ky., the company’s largest aftermarket distribution operation that handles 23 product lines and more than 70,000 active part numbers. – Dean Smallwood

DTNA inaugurates Phoenix PDC

aimler Trucks North America in late November held a grand opening for its 10th parts distribution center, launched earlier this fall. Located just outside of Phoenix in Goodyear, the 268,000-square-foot facility stocks more than 10,000 parts and serves over 130 DTNA dealers in the Southwest. With the addition of its new PDC in Goodyear. “As part of our strategy to Ariz., DTNA has invested more than $100 get closer to our customers and million in its PDC network over the past five dealer partners, DTNA identified years. the southwest United States as the best location for its next stage of expansion,” said Jay Johnson, general manager of Aftermarket Supply Chain for Daimler Trucks North America. “After an exhaustive search, we determined that the Phoenix metropolitan area offers a great combination of benefits — proximity to our customers and dealers, a strong workforce and ease of doing business.” DTNA said the new facility supports its long-term vision of elevating the customer experience by enabling it to fulfill 90% of all dealer part orders in under 12 hours. – Dean Smallwood

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INBRIEF • Rocketail, a provider of aerodynamic tail systems for semi-trailers, announced that Las Cruces, New Mexico-based Mesilla Valley Transportation (CCJ Top 250, No. 77) is installing its rear drag reduction devices on all its dry vans and will spec the devices on its newly purchased trailers. • FleetPride, a distributor of truck and trailer parts for the independent heavy-duty aftermarket, acquired the assets of Commercial Truck Services (CTS) of Little Rock and Conway, Ark.; terms were not released.

market parts and service, walking floor and flatbed repair and maintenance and mobile service and parts delivery. • Shipping marketplace uShip teamed with Etsy, a marketplace for artists and sellers worldwide, to offer a convenient way to ship large and bulky items. With uShip,

Etsy sellers can get blanket-wrapped room-of-choice delivery, full tracking, shipping price estimates, transparent rates, insurance and fewer handoffs per shipment. Sellers get to choose their own carriers from uShip profiles, review each carrier that submits a quote and communicate about the shipment in advance.

• Strick Trailers announced that Indiana-based VoMac Truck Sales joined its dealer network. VoMac specializes in the sale of new and used heavy- and medium-duty trucks and trailers and also is a certified dealership for Volvo Trucks, Mack Trucks, Hino Trucks, Isuzu Trucks, East Trailers and Talbert Trailers. The company has locations in New Haven, Vincennes, Evansville, Terre Haute and Seymour and provides parts, service, body shop repairs and 24-hour towing. • Penske Truck Leasing relocated its facility in Kalamazoo, Mich., to a new, larger and renovated building in response to a growing customer base in the region. The new location is outfitted with the company’s proprietary digital and voice-directed truck fleet preventive maintenance process and connected fleet offerings. • GCR Tires & Service, the commercial tire and service network owned and operated by Bridgestone Americas, acquired Tires Inc., a commercial tire dealer with two locations in Chehalis and Tumwater, Washington; terms were not released. • Michelin North America announced that Denray Tire joined Michelin Retread Technologies (MRT) as a franchisee, manufacturing commercial truck retreads servicing Manitoba and Saskatchewan. Formerly a Bandag retread facility, the 25,000-squarefoot MRT facility employs 13 associates. Denray is a dealer of Michelin, BFGoodrich and Uniroyal products that include commercial truck, agriculture, industrial, passenger/light truck, motor home and trailer tires. • Thermo King of Central California joined the Vipar Heavy Duty network of distributor stockholders. The Fresno, Calif.-based company provides heavy-duty dry van and refrigerated trailer aftercommercial carrier journal

| january 2020 21

in focus: FA-4 OILS

New lubes not catching on so quick Vendors cite slow FA-4 adoption rates by fleets BY JASON CANNON

he American Petroleum Institute’s (API) nextThese engines generation engine oil categories – FA-4 and have been approved CK-4 – hit the market three years ago, boasting for FA-4 improvements in engine wear protection and fuel econoils that are omy over the lubricants they were developed to supplant. formulated to boost fuel Compatible for virtually all models of diesel engines and economy a more direct replacement for prior generation CJ-4 oils, and lower CK-4 has seen fairly widespread market proliferation. Howemissions. ever, developed specifically for 2017 model-year and newer engines, FA-4 has been slower to filter into the market. “The transition to FA-4 engine oils is a step-change for James Booth, Chevron’s North America Commercial Sector manager, called the slow migration toward FA-4 “a little disap- the heavy-duty industry,” he said. “It follows the widespread pointing.” But Stede Granger, Shell Lubricants’ OEM Technical adoption of CK-4 engine oils, which was arguably the largest industry change in 10 years.” Services manager, said oil manufacturers expected it would Navistar was the first to factory-fill with 10W-30 in 1998, take time for trucks that require FA-4 oils to make their way with Volvo following a decade later, but Booth said most into fleets. OEMs didn’t start until 2013. “Some fleets will not use FA-4 oils until a majority of their “It was then two years later where we saw most large fleets fleet requires the oil,” Granger said. “With trucks in a fleet for about five years, many of the older trucks are still being phased adopt 10W-30,” he said. “By comparison, FA-4 is seeing higher adoption. Today, Detroit is the only OEM factory-filling out, and we expect the use of FA-4 oils to increase.” with API FA-4, but because of their large market share, that Freightliner and Western Star trucks in North America are represents 35%. We anticipate FA-4 will represent 54% of the factory-filled with FA-4 oils, and Detroit engines going back factory-fill market in 2020 as other OEMs endorse FA-4.” to 2010 U.S. Environmental Protection Agency-compliant “This time, unlike the transition to 10W-30 oils, wear proengines have been approved to use it. Paccar, Volvo and Mack tection is not a concern to the customer,” Cigala added, noting have yet to sign off on FA-4, but the latter two are developing another contributing factor to slow adoption is that FA-4 oils a new VDS-5 specification, which Granger said likely will inare not approved for use in reefers or auxiliary power units. corporate the FA-4 specification and make the oils applicable “Once the reefer and APU piece is taken care of, fleets will to their trucks. slowly adopt FA-4 oils,” he said. “The big thing is fleets don’t “This will help the industry continue to move toward and want to stock two engine oils in their shops for the chance of adopt FA-4 oils as newer engines and specifications become a misapplication by techs and drivers, and the inability to purlarger proportion of the market,” said Darryl Purificati, Petrochase FA-4 oils on the road.” Canada Lubricants’ OEM technical liaison. The number of heavy-duty trucks with engines approved for Cummins, in its X15, and Navistar, for its A26 engine, also API FA-4 is relatively high, but Booth agreed that fleets have have approved the use of FA-4 oils. been reluctant to stock an oil not approved for all their units. “I think it all depends on hardware, field test experience, “What we have seen in practical terms is that if a fleet of 100 engine designs and internal testing,” said Paul Cigala, ExxonMobil’s Commercial Vehicle Lubricants Applications engineer. has just one engine not approved for API FA-4, they will not adopt FA-4,” he said. FA-4 lubricants are blended to thinner viscosity grades to In somewhat of a twist of fate, Booth said many of the fleets boost fuel economy and lower emissions compared to CK-4 currently adopting FA-4 oils were early adopters of 10W-30. oils, and the slow migration to them is not unlike that of CJ-4 “They typically are fleets accumulating high mileage per 10W-30 oils earlier this millennium in that adoption will take unit (and high fuel costs), and their fleet truck age is two to time “as units are replaced with assets that have more fuelfour years,” he said. efficient powertrains,” Purificati said. 22

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| january 2020

MAKING THE LATEST TECHNOLOGY DEVELOPMENTS WORK FOR YOUR FLEET BY AARON HUFF

technology Driver leasing California’s A.B. 5 law fuels demand

ith California’s Assembly Bill 5 (A.B. 5) law taking effect Jan. 1, carriers no longer are able to contract with California-based owneroperators under their authority. Landstar, Prime, Knight-Swift Transportation and others already are restructuring their operations and will require their contractors who live in California to either sell their trucks and become employees or move out of state. As it turns out, A.B. 5 also has fueled demand for a niche service in the trucking industry: driver leasing services. Companies that specialize in driver leasing can fill gaps for carriers that need drivers in California, and elsewhere, on a temporary or full-time basis. Contracted Driver Services (CDS), based in Goodyear, Ariz., has seen business demand increase significantly in California and nationwide since launching a new technology platform that makes it possible to provide carriers with drivers on demand. Looking to combat an industrywide driver shortage, CDS launched F|Staff in NO OWNER-OPS: Carriers can’t contract with California-based drivers under their authority. DRIVER LEASING: A.B. 5 has fueled demand for a niche service in the trucking industry. F|STAFF APP: CDS connects motor carrier partners with its available driver employees.

commercial carrier journal

February 2019. The on-demand staffing and job monitoring app connects motor carrier partners with its available driver employees. However, the new technology created an urgent need for CDS to recruit, hire and train drivers faster and more efficiently. After launching the F|Staff app, CDS implemented a driver applicant tracking software to better manage qualification screening, background checks and other tasks F|Staff instantly connects employee drivers for Contracted Driver Services with in recruiting. To further increase carriers that need drivers in California and its speed to hire drivers, CDS partelsewhere. nered with Luma Brighter Learning. “The decision to develop F|Staff came from a core belief that people and technology work best together,” said April Ray, chief marketing officer for CDS. “We champion and strive for early adoption and work with partners like Luma who are experts at giving people a frictionless way to use technology with user-friendly interfaces and experiences.” Faster hiring and orientation CDS implemented Luma’s Drive First learning management system primarily for its Rapid Forms tool that digitizes employment and policy forms. Drivers receive an email in the recruiting process to complete requisite forms online before they arrive for orientation. Names, addresses and other data fields in the forms are autopopulated to save drivers time. Drive First also comes with a collection of about 350 individual learning modules called Luma eNuggets that engage drivers with various media that cover relevant topics in safety, compliance, orientation and health and wellness. “Online driver training wasn’t on our radar until we met with Luma and identified a need that we hadn’t even considered,” Ray said. “The online education piece totally blew our minds.” CDS went live with Luma Drive First last July and since has realized: • A two-fold increase in speed to hire. Prior to Drive First, CDS was spending eight days, on average, to get drivers from recruiting into orientation. The hiring process now takes four days. The efficiency gains have come from drivers completing digital forms and training modules online, starting from the mo-

| january 2020

technology INTERESTED INTRUCKING TRUCKINGTECHNOLOGY? TECHNOLOGY? INTERESTED IN Go ccjdigital.com/news/subscribe-to-newsletters Scantothe barcode or go to www.goo.gl/Ph9JK to to subscribe to the CCJ Technology Weekly e-mail newsletter.

system ment maythey show speak that to at midnight, recruiters the andunit a mutual is still adecision quarter-mile is made away to from move the unloading forward. spot. “We • Compressed are very carefully orientation watching to how a half-hour. it is unloaded” Beforetopartnering determinewith when Luma,actually CDS used antiquated videos.delivery Driversappointwere containers are available fordriver pickuptraining to set realistic spending between hours and a full provider day in theis offi ce forsure orientaments, Prince said. “Ourfour job as an intermodal to make a great tionoftraining. Drivers nowon complete and training modules number little things happen time andforms correctly.” online and complete the orientation in 32 minutes upon arrival. • Rapidlytrailer accelerated growth. After going live with the new platform, Predicting capacity CDS addeddeliveries, more drivers to its payroll in September and October than When making drivers often lose productive time unloading or during of 2018. In those twotomonths alone, also doubledIf its searching forallempty trailers to take their next loadCDS appointments. no total number of hires from February to July. CDS has 550 empty trailers are available onsite, office personnel maycurrently begin cold-calling drivers. customers in the area to locate empty trailers. “OneXpress of the (CCJ biggest diff250, erences launching the F|Staff app SkyBitz’s is that U.S. Top No. since 16) equips its trailer fleet with we have grown a regional focusing onofthe to a tracking systemfrom embedded withcompany cargo sensors. One theSouthwest nation’s largest national company the contiguous 48 states, ” Ray said. truckload carriers,servicing the Chattanooga, Tenn.-based company uses“Having the inforvendor partners us to support fast growth trajectory. mation it receiveslike to Luma predictenabled when trailers will beour unloaded and ready for ” pickup, said Aaron Wood, the company’s manager of trailer management. Training drivers on demand The SkyBitz system is integrated with U.S. Xpress’ custom transportation As a provider system of on-demand leasing, CDSsoftware gives motor carrieruses partmanagement and withdriver ESRI’s mapping that Wood to nersupthe benefits for of staffi ng their temporary or permanent jobstimes with and conset geofences tracking arrivals, departures, turnaround tractors. Drivers for get thelocation best of and bothgeographical worlds — access to employee trailer inventories byCDS customer planning regions. benefi ts big andthing on-demand work engagement. “The that bites us and any carrier is when we have loaded trailusing the F|Staff findhave drivers by setting for ersCarriers going into markets whereapp we can do not loaded freightparameters out,” he said. their schedules, distance, jobcounts qualifiincations and more. Drivers U.S.work Xpress is managing trailer each planning region to accept job offers the directly through the app. maintain balance of capacity across its freight network. The company “Our don’tcarriers have toand worry about to forced dispatch, Ray said. also usesdrivers secondary railroads reposition its ”trailers in its Luma’s Drive First platform and training modules support CDS’ businetwork. ness If years customers have special projects situations, In model. the three U.S. Xpress has been usingor theemergency SkyBitz trailer tracking “we are its able to getcount drivers specifi c training need in a short period system, trailer hasthe gone from 17,000 tothey about 14,000 by increasing of time,” Ray efficiency andsaid. managing the available capacity in its network, Wood said. on-demand CDS is abletrailers to address specificthat customer With SkyBitz, U.S.training, Xpress also canalso identify at locations have safety needsfor that One period. customer recently spotted trendpossible among meits not moved anarise. extended These events could asignal own drivers: hitting stationary whiledrivers backing. “Wehook wereup. able to chanical defects on trailers that objects are causing to not send a specifi training to our driver population to refresh U.S.out Xpress alsoc increases trailer capacity by monitoring theirthat use content by in their minds and raise awareness, ” Ray said. third-party carriers and shippers through interchange Ultimately,“We CDS plans to develop agreements. know when one of individual our trailerstrainstarts ing tracksWood for each carrier partner. Currently has moving,” said. The system tracks whereittrailers tracks set up Drive First for atbed, hazmat and are picked upinand dropped andflhow many miles they mail operations. The company than moved so the company can bill has more carriers for the500 authorclients the United ized or across nonauthorized useStates. of its trailers. AARON HUFF HUFF isisSenior SeniorEditor Editorof ofCommercial CommercialCarrier CarrierJournal. Journal. E-mail ahuff@ccjmagazine.com ahuff@ccjmagazine.com or call (801) (385) 754-4296. 225-9472.

Obstacle detection Trimble Duo system forvehicle big trucks combines ear View display, RSafety debut-gateway

ed itsrimble RVS-125 last month Sensestat formally Wireless announced its Obstacle new Trimble Detection Duo, an Android-powered System designed device that to warn combines truck an intuiWith the Trimble Rear View Safety’s RVSDuo, fleets can tive drivers in-cab of potential display with a Sensestat 125 Wireless get a device that Obstacle Detection 4G-LTE obstaclesvehicle behind gateway. Systemisiscompliant designed with their Thevehicle ruggedized with ELD mandate for easythe installation and leverages fi a xed-mount detection range device is on heavy-duty trucks, LTEtonetwork with no4G need install built of upspecifi to 8 feet. cally The for the connectivity. excess cabling. commercial trucking system is engiindustry neered toand provide connects and mounts directly to theadriver truck’sboth dashboard, audible and eliminating visual warning the need to indicators run cables to avoid through backing the headliner accidents.or to uninstall older ECU onboard equipment. The wireless is engineered to be Aaron Huff waterproof and includes multiple–antenna installation options. A user can connect to a Sensestat-equipped trailer by pressing the monitor’s sync button. – Aaron Huff

3Dtracking adds behavior monitoring, In-motion scale app rating to driver weighs each mobile app from axle

A A

lliance 3Dtracking, Scale deavailable through buted a truck Google scale engineered Play and Apple to weigh Store, has Visual star indicators on each a newaxle driver and behavior print a 3Dtracking’s receipt featurewithout designed requirto updated mobile ing provide a driver fleettomanagers stop. The app deliver quick monitoring Alliance insight into AxleWeigh their topIn of driver The Alliance Motion rated drivers. Truck With Scale isthe performance. AxleWeigh In built dashboard, to weigh managers individuMotion Truck al can axles rank bythe driving five best overand worst Scale isdrivers, precon-and for easy the a KPI scale report at 3 mph update re- showsfigured the driver/vehicle installation gardless percentage of truck over length the reporting period.and can be installed or Th configuration. e new update provides on a star rating for a gravel each Designed trip based for on easythe number of incidents, driveway, elimithe need use, where a driver 100%stops is a perfect at trip nating with no incidents. for ramps. the Managers controller canand view full breakdowns of any enters incidents his per truck’s trip,I.D. while drivers can allocate number, themselves and tothe a specifi controller c vehicle, will eliminating calculate the gross, costs associated tare and net with values. the driver The scale tags features and hardfactory-calibrated ware needed to allocate load cells drivers andtoa vehicles. preprogrammed indicator. – Aaron – Aaron HuffHuff

commercial commercial carrier carrier journal journal | september | january 2018 2020

35 25

technology

INBRIEF • McLeod Software eliminated transaction charges for capturing and transmitting proof-of-delivery and other images of load documents for customers using its DocumentPower Mobile Capture app. Drivers can snap a picture of documents and index them against the load, identify the document type and submit a high-quality image to get the billing and settlement process moving. • Schneider (CCJ Top 250, No. 7) launched an automated tool designed to allow third-party carriers to view real-time rates and book loads instantly with the click of a button. Qualified carriers can access the feature on Load My Truck, Schneider’s free online load board within SchneiderCarriers.com. • Echo Global Logistics, a provider of technology-enabled transportation management services, launched EchoDrive Preferred, a tiered rewards program for its carrier network. EchoDrive Preferred complements the company’s EchoDrive web portal and mobile app that gives carriers real-time access to search, view and bid on available loads. EchoDrive also provides dispatchers the ability to manage loads and drivers from one centralized location and allows drivers to provide real-time tracking and submit documents quickly, allowing for faster payment. • Lanehub, a collaborative transportation network designed to enable shippers and carriers to match recurring freight lanes based on long-term direct partnerships, announced that Green Bay, Wis.-based KBX Logistics selected the network to optimize its operations. KBX Logistics, an independent company of Koch Industries, was formerly Georgia-Pacific Transportation. • SmartDrive Systems, a provider of video-based safety systems for the transportation industry, announced that Linden, N.J.-based Linden Bulk Transportation, a subsidiary of Odyssey Logistics, added SmartDrive Extended Recording to capture hard-to-get low-impact incidents such as sideswipes that aren’t triggered by other systems and to help improve its worker’s compensation claims and driver compliance with company policy. • Cooltrax, a cold chain visibility provider, announced that Florida-based foodservice distributor Cheney Brothers implemented its Cooltrax Fresh inTransit wireless temperature monitoring and management system for improved visibility and real-time data on the handling of temperature-controlled products for its fleet of 700 tractor-trailers.

commercial carrier journal

ITI adds intermodal, lithium battery, following distance courses to training library

ITI’s Rear End Collision AvoidanceMedium Duty Truck training lesson uses the Space Cushion concept.

nstructional Technologies Inc., a provider of training courses for the transportation industry, announced three additional lessons as part of its Pro-Tread library. “The steady stream of new courses we’re adding to the Pro-Tread library, especially for the medium-duty market, is a reflection of ITI’s ongoing commitment to meeting the industry’s training needs,” said Laura McMillan, vice president of training development for ITI. The new courses being offered by ITI as part of Pro-Tread, which blend timely information with examples of real-world scenarios, include: • Intermodal Equipment Inspections: Covers the inspection process for intermodal containers and chassis to ensure safety during transit. The training shows the viewer the details needed from a close-up perspective. • Transporting Lithium Batteries: Provides information for shippers about safety precautions, packaging and labeling requirements, and documents required for compliance with applicable U.S. and international regulations. • Rear End Collision Avoidance-Medium Duty Truck: Focuses on techniques for avoiding rear-end collisions since most truck/automobile accidents involve the car getting hit from behind. The training uses the Space Cushion concept for establishing a safe following distance based on five key factors and uses graphical representations. All three training courses can be taken from any connected device and can be assigned and tracked automatically for ease of recordkeeping and compliance. – Dean Smallwood

Navistar gets waiver for mounting ADAS on windshield

Navistar’s ADAS system features rearend collision mitigation, adaptive cruise control, stationary object alerts and lane departure warning.

avistar has been granted a waiver from federal regulations that will allow the company to mount its advanced driver assistance systems lower on the windshield than current regulations allow. The company petitioned to have its ADAS mounted in the upper center area of the windshield and in an area where the windshield is swept by the wipers to provide a clear view of the road ahead and any obstacles that may be in the truck’s path. Navistar’s system features rear-end collision mitigation, adaptive cruise control with following distance alerts, stationary object alerts, lane departure warning, speeding alerts and automatic braking on stationary vehicles. FMCSA in late November granted the request because it says there is no indication that the system would obstruct drivers’ views of the road, signs or traffic. The waiver is effective for five years. – Matt Cole

| january 2020

technology

Stay Metrics research finds why drivers make referrals

tay Metrics, a provider of driver retention tools for motor carriers, announced new research identifying the top five reasons why drivers will make referrals within the first 90 days on the job. “Attracting new drivers is difficult across the trucking industry, making referrals from current drivers more important than ever,” said Allyson Smith, a Stay MetThe first three rics data analyst reasons relate who compiled the to pay issues, while the fourth list. “The results of and fifth relate our latest research to the impact of project highlight communication on a driver’s the aspects of work work experience. that most influence a driver’s decision to refer their carrier to another driver.” To create the report, Stay Metrics analyzed responses from all questions in its Early Experiences Survey, one of several driver lifecycle survey products the company administers for trucking clients using its Stay Ahead platform. Driver responses to the survey questions were compared to their Net Promoter Score, a measurement of company loyalty that directly asks how likely they are to recommend their carrier. The top five questions identified as having the most influence on drivers’ willingness to recommend their carrier (or not) came from responses to “How satisfied are you with …” • The compensation you receive from your carrier? • Your carrier’s wait time/detention pay? • The number of miles you typically drive in a week? • Your communication with your carrier? • Your level of work-related stress? The first three questions relate to pay issues. The fourth and fifth relate to the

impact of communication on a driver’s work experience, said Tim Hindes, cofounder and chief executive officer for Stay Metrics. “The way these three issues relate to one another suggests that the overall system of work and the communication

that surrounds it are the main catalysts for drivers’ willingness to recommend their carriers,” Hindes said. “Accurate communication by carriers, especially about pay, is essential to positively impact driver opinions.” – Dean Smallwood

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| january 2020 27

technology

in focus: ROUTING SOFTWARE

Looking ahead Fleets have help when planning for seasonal business BY AARON HUFF

t the end of every busy retail season comes the drop-off in freight volumes. The first quarter of a new year is typically an economic lull not only for freight volumes but also for fleets, especially in the service and construction industries. Fleet management systems have a number of tools to help users plan ahead and keep the bottom line from falling out during the winter months. “One of the best things a business can do with the data they have, especially those that experience fluctuating job cycles, is to leverage that historical data to have better viewpoints into the future,” said Kevin Aries, head of global product success for Verizon Connect, a provider of fleet management platforms. Mobile and back-office routing and planning applications have troves of data that can be analyzed for predicting seasonal trends, Aries said. Comparing planned versus actual route performance also is important to identify areas of opportunity to increase efficiency. Analyzing historic job locations also can identify trends for how routes change during seasons. Taking a deeper dive into worker productivity metrics also can uncover cost savings. How many jobs were completed, and how long did workers spend on each job? Perhaps time and money could be trimmed by shortening transit times and idling. Year-round problem solving Even though seasonality is a factor for Al Khayyat Investments (AKI Group) in Dubai, the company didn’t have a big 28

commercial carrier journal

reason to invest in fleet management technology. The company operates in a region with some of the world’s cheapest fuel and labor. With the low cost of resources, “it is tough to justify a payback” for implementing technology, said Gary Grindlay, the company’s supply chain director. AKI Group has a diverse range of business units in retail, consumer, contracting, healthcare and automotive that generate $2 billion annually in sales. The company’s in-house transportation operation is responsible for delivering goods across the seven UAE emirates to a wide range of customer locations that include hospitals, pharmacies, shopping malls, retail stores and restaurants. Last year, AKI Group implemented Paragon Software Systems’ cloud-based routing software to help it plan and execute routes for 25,000 orders a month, which equates to about 12,500 deliveries to 5,500 customer sites. The software automates a complex routing problem by considering drivers’ hours of service restrictions, the vehicle licensing for each emirate and how to stock multiple vehicle compartments with food, non-food and pharmaceutical products. In the past year, AKI Group reduced its fleet from 94 to 52 vehicles, while its annual deliveries increased from 110,000 to 140,000, Grindlay said. The company also saved $1 million in direct labor and fuel costs. For the next phase, AKI Group plans to use Paragon features to notify customers automatically of scheduled deliveries. When customers receive an

| january 2020

Paragon Software Systems recently enhanced its routing and scheduling software to address the potential challenges of planning routes for electric, natural-gas and hybridpowered vehicles with a limited range. Transportation planners can define the vehicle’s actual range to restrict the distance of any trip. If any subsequent manual adjustments result in extra mileage beyond the vehicle’s range, a warning will alert the planner.

alert that a vehicle is 15 minutes away, they will know to plan on when to be ready to merchandise goods on the shelves, which will save drivers more time at stops, Grindlay said. Will Salter, chief executive for Paragon, said companies using fleet management technology are interested in fine-tuning the execution of their routes by knowing where their drivers are at any time against the plan. “In the past, a transportation office would not know what was going on,” Salter said. “We are seeing a huge amount of interest in that information flow for keeping an organization informed.” Besides using fleet management systems to stay on top of business needs during seasonal fluctuations, another area of interest is how to smooth the transition to a future of electric and alternative-fuel vehicle powertrains. To that end, Paragon has created new modules for fleets to plan routes for alt-fuel vehicles with a limited range by accounting for the locations of charging stations and charging times, Salter said.

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PAPER TRANSPORT INC. De Pere, Wis. hiring drivers it normally would pass over. Its hiring criteria for safety remained the same, but drivers with a previous employment history showing a tendency to change jobs frequently were given a chance. “We did that for a little bit, but then we hit a turnover number that made me want to puke,” Schill says. “From that point, I knew we had to focus on something different.”

PREDICTING

BEHAVIORS Paper Transport shifts its paradigm for hiring drivers with behavior-based screening BY AARON HUFF

he first quarter of 2018 at Paper Transport Inc. (PTI) read like the opening of “A Tale of Two Cities” by Charles Dickens: “It was the best of times, it was the worst of times.” The good news? The freight economy was firing on all cylinders. “Nobody could hire enough drivers,” remembers Ben Schill, vice president for the De Pere, Wis.based truckload fleet. The bad news? The company’s driver turnover had reached a breaking point in March 2018. It climbed 10 percentage points from January to hit a 70% annualized rate. The impact on the company’s operations and culture was palpable, Schill says. PTI was faring better than the industry, with a turnover rate for large carriers tracked by the American Trucking Associations increasing 20 points to reach 94% in the first quarter. The ultracompetitive recruiting environment was partly to blame. PTI began

Finding a better model Schill began looking for options to improve its recruiting process. He talked to data consultants, thinking perhaps the type of safe driver that PTI should target could be found with a mathematical solution. “My mind was slanted around predictive analytics and that space,” he says, to “help us out of that funk.” During this time, Schill discovered a behavior assessment tool that predicts how drivers will perform in safety, professionalism, teamwork and other areas. PTI already had been using a personality and culture assessment tool to screen candidates for office jobs. He believed a similar tool could work for drivers. “If you hire just off of experience, you are going to get the good and the bad,” he says. “But if you hire off of tested behaviors, you are going to get what you want.” Schill initially wanted to use PTI’s best drivers as the baseline. He changed his mind when speaking with JOBehaviors, the company that provides the assessment tool he evaluated. Using PTI’s own drivers for a baseline would taint the results with

The truckload carrier implements a behavior assessment tool to screen driver applicants and improves its turnover, safety and culture.

commercial carrier journal

| january 2020 31

INNOVATORS Schill’s own biases, the company told him. JOBehaviors uses a scientific method to evaluate behavioral psychology. The online survey takes about 15 minutes for drivers to complete. Recruiters receive an email instantly with the results, which show where a driver ranks with a five-star system. Each star corresponds to the driver’s percentile rank in behaviors that predict job success. Before implementing the tool, Schill had a random set of PTI drivers take the assessment. Some drivers he perceived to be the best in the fleet did not score well. This was concerning. “It almost scared us away,” he says. “You mean you would possibly take a driver applicant with 20 years of experience and throw them out? Our response is unfortunately ‘Yes.’ ” A leap of faith Using a behavior assessment tool to screen driver applicants was a leap of faith, Schill says, but PTI management was fully onboard. The company flipped the switch in October 2018. From that moment, PTI only would hire drivers who scored in the top 50% (three or more stars) on the assessment. “Not only were we going to eliminate half our applicants, but we also knew that a good chunk of individuals weren’t even going to take the survey,” he says. PTI has found that 22% of the drivers it recruits are not taking or completing the assessment. “They can go work somewhere else without having to go through these extra steps,” he says. Companies that conduct hair follicle testing such as PTI already have an extra step in the hiring process for safety, “and that’s great for us,” Schill says. The behavior assessment tool goes beyond safety to identify professional drivers that care about the company and not just themselves. “We know that we are leaving some 32

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Rather than try to cram training into two full days of driver orientation, PTI began using Luma’s online training program to schedule the release of short training modules to drivers over their first 90 days of employment. Drivers complete enough orientation training in the office to prepare them for the job. Other training, such as for insurance benefits, is assigned to drivers to complete at a later date “when it is most meaningful to them,” says Julie Decker, organizational development manager for PTI. Over the past year, the driver turnover rate in the first 90 days of employment has decreased by 35%. Another trend that PTI has found is that new driver hires – particularly those that come from CDL schools – are posting the highest scores on the company’s scorecard system. Also, the accident rate of new driver hires from October 2018 to 2019 was on par with tenured high-performance Retaining new drivers drivers, Schill says. With the new hiring process, “We just don’t have the isdriver turnover at PTI receded sues we used to have with the from its high mark in March new drivers,” he says. 2018. Today, the growing comBen Schill, vice The larger impact of behavpany’s retention rate is better president for ior assessments on safety is with 870 drivers than what it Paper Transport Inc., says that difficult to quantify, because was when it had 450 drivers, using a behavior only 30% of drivers in the Schill says. assessment tool fleet today were hired since The only downside for using to screen driver applicants has October 2018, Schill says. a behavior assessment tool is improved the Even so, PTI’s 2019 fiscal year that PTI is not hiring the same company’s was among the fleet’s best in number of drivers. Even so, turnover, safety terms of safety. the company has been able to and culture. “Putting a behavior assesscontinue its growth – albeit at ment in place was a gamea slower pace – by reducing changer for us,” he says. “I believe it was turnover. The company closed out its 2019 fiscal one of the best things we’ve done in this company in the last five years. It is havyear in September with a 59% turnover ing a significant impact on our culture rate, and since has averaged 41%. The and how we operate.” goal for 2020 is to stay below 50%. Improvement has come mostly by reducing CCJ INNOVATORS profiles carriers and fleets early departures during the first 90 days. that have found innovative ways to overcome Another contributing factor for the suctrucking’s challenges. If you know a carrier that cess in lowering turnover was its online has displayed innovation, contact Jason Cannon training program, Schill says. at jasoncannon@randallreilly.com. possible employees out based on this,” he says. “However, I can tell you that the ones we are getting are what we want. We are willing to make that tradeoff.” Schill believes drivers who are not willing to take a 15-minute survey probably are the same ones who will not do what the job requires, such as completing 15-minute pre- or post-trip vehicle inspections. “That’s just the type of individual that we will naturally weed out,” he says. “They are self-selecting out based on a behavior we wouldn’t have liked.” As PTI began hiring only those who scored in the top 50%, the first positive result was that a higher percentage of drivers were showing up for orientation. “Our drop-off or no-show rate was basically cut in half,” he says. “We knew we were onto something. We are finding an individual that was committed. When they say ‘Yes,’ they mean it.”

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BUSINESS | TRUCKING INSURANCE

THE COST OF COVERAGE

Trucking insurance rates expected to skyrocket — but why?

BY TOM QUIMBY

eware and prepare. Tractor-trailer insurance rates are expected to rise in 2020, brought on by an uptick in truck crashes and massive settlements and judgments. The worst possible rate surge could come from Washington, D.C., where U.S. Rep. Matt Cartwright (D-Pa.) is sponsoring a bill (H.R. 3781) to raise the minimum liability coverage on semis from $750,000 to $4.5 million — a 500% jump. 34

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Cartwright, an attorney with a history of suing trucking companies, has come under fire from watchdog group Foundation for Accountability and Civic Trust for proposing a bill that it says will benefit his family’s law firm if it’s signed. While H.R. 3781 has not advanced since being introduced last July to the House Subcommittee on Highways and Transit, Cartwright’s efforts are emblematic of an increasingly aggressive legal community that’s eager to put trucking

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companies on trial and cash-in big time. “The nuclear verdicts that are coming out are a derivative of the reptile area of attorneys,” said Tommy Ruke, founder for the Motor Carrier Insurance Education Foundation. Data-rich attorneys armed with Compliance, Safety, Accountability (CSA) scores, truck logs and social media posts are convincing more juries to deliver huge verdicts. “They’re saying this motor carrier has

BUSINESS | TRUCKING INSURANCE

Most truck and bus crashes are caused by automobile drivers, but no matter who’s driving, the causes are largely the same.

a bad history, so therefore you, the jury, have an obligation to punish this motor carrier for having a bad history, not just because of this crash,” Ruke said. Larger carriers with deeper pockets are targeted, and juries have been responding with multimillion-dollar judgments. As a result, fleets and insurers are more eager to settle out of court, where the price of mediation also has been on the rise. “No plaintiff ’s attorney is going to take a trial and go to a jury and get a $91 million judgment against somebody with five trucks,” Ruke said. “There’s just not enough dollars for that. The insurance company is going to pay the money, and they’re gonna run. But what’s

happening is the fear of those judgments is increasing all the offers at mediation time. And so the average claim statistics I show have gone from about a million to about $2 million.” Michael Nischan, vice president of transportation and logistics risk control for Epic, believes strongly in educating fleets on the ins and outs of insurance, particularly risk reduction. Now more than ever, that means doing everything possible to reduce CSA scores. “Everybody needs to be educated so that everyone who is part of a solution can ensure that the company is compliant and safe,” Nischan said. “They’re doing everything they can to keep the scores low and are therefore worthy of doing business with this insurance company and realizing decent premiums. But even if a company is performing well, we’re going to see 20% to 30% increases because of our environment.” While Nischan is more encouraged about CSA scoring carriers under the proposed Item Response Theory method, he said the new approach will not help companies that have struggled with CSA scores in the past. “CSA is not a regulation, and Item Response Theory is not a regulation,” Nischan said. “It’s just a means by which enforcement keeps up with the performance of motor carriers and identifies them for enforcement interventions. It’s important that motor carriers take their performance very seriously. They need to be obsessed with safety. Having partnerships with insurance firms will be critical as they collaborate to survive the storm.” Life in the fast lane The National Highway Traffic Safety Administration reported last November that the number of people involved in large truck crashes rose from 553,000 to 622,000, or 12.5%, in 2018 versus 2017. The number of people killed rose 0.8% year over year from 878 in 2017

to 885 in 2018. However, injuries were down 2% in 2018 at 39,000 versus 40,000 in 2017. The vast majority of people involved in large truck accidents over those two years were not injured: 512,000 in 2017 and 582,000 in 2018. Still, scores of personal injury attorneys stand at the ready with billboards and TV, radio and internet ads with catchy toll-free numbers and dramatic websites eager to sue the truck driver, the carrier, the truck manufacturer, the truck loader, the brake manufacturer and, if possible, the service company that handles the truck’s maintenance following an accident. It’s become something of a thriving and lucrative industry that’s motivated some unscrupulous four-wheel drivers to purposely stomp on their brakes in front of a moving truck with the hopes of getting rear-ended so that they might hire an aggressive attorney and collect huge sums of money for whiplash or other reported injuries. The cost of doing business can skyrocket and prove insurmountable for some carriers following a single accident. “Extraordinarily large insurance claims – accidents that include fatalities – are probably the single biggest cause of failure in 2018,” said Donald Broughton, principal and managing partner for Broughton Capital. “Everything else has gone right, but you hit somebody, and it blew past any and all amounts of insurance you had. The plaintiff ’s lawyer sued your company, your insurance, and if the insurance paid the maximum they were going to pay, there was still millions of dollars in claims to be satisfied.” A Federal Motor Carrier Safety Administration report found 70% of fatal crashes involving a large truck and a passenger vehicle were initiated by the actions of, or were the fault of, passenger motorists. An American Automobile Association study found the critical factor leading to a large truck crash was attributed to the passenger

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BUSINESS | TRUCKING INSURANCE

The cost of doing business can skyrocket and prove insurmountable for some carriers following a single accident.

vehicle driver 75% of the time, and that in 10,732 fatal car-truck crash records from 1995 to 1998, the car drivers were more likely to be cited for multiple unsafe acts — 36% of the car drivers were cited for two or more unsafe acts versus 11% of the truck drivers. But no matter who’s driving, the causes are largely the same. “Distracted driving is a huge problem,” said Nischan, who added that speeding and improper lane changes also rank high as contributing factors. Proving impairment Impaired driving is also a problem, one that only has gotten worse following the increased legalization of marijuana. “There’s an increase in drug usage and failed tests of the now-recreational marijuana, things like that,” Ruke said. The robust and record trucking market of 2018 created a surge in driver demand, which Ruke said led companies to be less scrutinizing when seeking to put drivers behind the wheel to meet growing customer demand. Avery Vise, vice president of trucking for FTR Transportation Intelligence, shares Ruke’s concern about driver qualifications, particularly as more states legalize marijuana for medicinal and recreational use. “I think everyone realizes that you have to watch the bottom line, and the 36

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bottom line includes things like insurance premiums and lawsuits and things like that,” Vise said. “And we’re coming into a period where not only is the workforce aging, but we do have these driver qualification issues. I really do think that the big driver qualification controversy for the coming decade is going to be marijuana, because we have a regime with alcohol. Nobody expects truck drivers never to drink beer. They expect them not to drink beer within a reasonable amount of time before they’re going to drive their truck.” Vise said testing for marijuana impairment will prove more difficult in reducing risk, since the drug can linger in a user’s body for weeks even though they actually may not be under the drug’s influence while driving. “I think at some point, we’re going to have to go with a regime that says we’re going to have to test for impairment, not for use,” Vise said. “Not for whether your use of marijuana can be shown, but whether you can be shown to be impaired, or the concentration levels are such that impairment is likely or something like that. That is definitely a growing issue that is going to have to be dealt with. It’s a big one.” As insurance premiums are predicted to rise amid more intense litigation, some carriers are taking additional

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steps to lower the risk of driver impairment. “I won’t say never, but it could be quite awhile before the hair-testing issue becomes a regulatory requirement,” Vise said. “I think the larger carriers are moving in that direction for the same litigation reasons as insurance premiums going up and all that — to try and protect themselves, because they don’t want to end up in court where someone says, ‘You could have used hair testing, but you chose not to.’ So that’s why we see the larger carriers doing that, and that’s going to have a pretty significant impact.” ELD anxiety Increased customer demand also has introduced more trucks on the road, which increases risk. “What increases severity is, of course, more frequency,” Ruke said. “The trucks were traveling more miles no matter who was driving it.” In addition to driver impairment and distracted driving, some analysts criticize mandated electronic logging devices (ELDs) for elevating risk and thus insurance premiums. “We keep hearing about drivers being forced to haul freight on tight schedules,” said Mark Montague, senior industry pricing analyst for DAT Solutions. “Sometimes a shipper isn’t ready when they arrive. They (ELDs) cause an increase in speed. It’s the pressure to deliver on time, and the faster the fleet, the more accidents, which leads to higher insurance rates. So it’s kind of an ugly picture from that standpoint.” Ruke said that trucking companies also would be wise to protect their public image as attorneys seek as much derogatory information as possible to

BUSINESS | TRUCKING INSURANCE

sway juries. In addition to CSA scores, anything posted on social media – including comments, pictures and videos – is up for grabs in court. “This started with the CSA stuff in 2010, so now there’s far more data out there the plaintiffs’ attorneys are using to elevate the jury pool against the trucker,” Ruke said. “Think about it. Could you get 12 people in a jury box that have not been scared of a truck on a highway? It’s just human nature, and then the other thing is how many trucks have skulls and crossbones? I’ve got a picture of one with a skull and crossbones on the front grille, and it says ‘Widow Maker’ on the side. We’re not our own best friends in those areas. And then all of that stuff is given to the jury.” When it comes to dealing with insurance carriers, honesty is the best policy, given the vast amount of data available to agents, attorneys and Uncle Sam. “There’s nothing you can hide anymore between social media and what’s on the federal website,” Ruke said. “A trucker lives in a glass house. Every insurance carrier has access to everything. The more you try to be deceitful and try to hide, you’re better off saying ‘Here’s my problem, and here’s what I’ve done with it’ than trying to hide it, because it’s going to come out. So we’re trying to teach the motor carrier why this stuff is important and what it means to them in the long run.” Now more than ever, new carriers will have to brush up on their business plans, demonstrate dependable revenue streams and make safety a priority. “If you don’t understand the dynamics of running a trucking company, that’s also a factor for new ventures,” Ruke said. “Business plans can be written. There’s going to be ‘More value, more price.’ But it’s not ‘Can the driver drive the truck?’ It’s ‘Can they run their business?’ Do they understand the importance of safety? That’s where insurance companies are putting overlay onto the

The vast majority of people involved in large truck accidents over a two-year period were not injured: 512,000 in 2017 and 582,000 in 2018.

process of these new ventures. Right now, there’s a limited number of companies that will write new ventures, and by new venture, I mean anybody that’s been in business less than three years with their own insurance. This is how the insurance carriers define that. I’ve got a couple of people that write new ventures. You’ve got to be clean.” Leveraging technology While some decry mandated electronic tracking as counterproductive, others including Doug Schrier, vice president of product and innovation for Transflo, believe that ELDs can improve a fleet’s bottom line in the long run. If so equipped, ELDs can go beyond simply logging driver hours to keeping track of driving habits, including speeding, hard braking, hard cornering, rapid acceleration and improper lane changes. “We always look at safety,” Schrier said. “Safety first. What are the things they’re doing with risk reduction, especially with ELDs? There could be a whole bunch of events that will let a fleet see abnormalities within their drivers’ behaviors. Which one of their drivers are the most at risk? Or having the most

number of near misses? That’s a big piece that I think a lot of fleets may be missing.” Schrier said insurance companies increasingly are turning toward technology to help with more thorough risk assessments. “They’re using the data to determine the risk of that fleet over another, and if you’re deemed to be a riskier fleet, you’re ultimately going to pay more for your insurance than if you’re deemed to be a less riskier fleet,” Schrier said. “We have also seen some companies in the insurance space play a much more active role by strongly encouraging that they have a certain kind of ELD that provides them the data that’s needed. They’re encouraging fleets to proactively interface with their drivers that are on the riskier side of the fleet, kind of driving toward camera solutions within the cab of the truck.” Ruke said fleets would be wise to invest in camera event recorders. “It’s crazy that a motor carrier doesn’t have an event recorder,” Ruke said. “I understand the privacy issue, but that’s for training purposes. What they don’t understand is that the greatest value of the event recorder is to get the insurance

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BUSINESS | TRUCKING INSURANCE

carrier to know how immediately to handle a claim. There’s actually more cost savings when we find the motor carrier is at fault than when they’re not at fault. Because if they are at fault, then we don’t fight it. We don’t hire attorneys. We don’t pay the $700. We don’t do the reconstruction with claim. If we know we caused it, then we don’t pay all that extra cost.” Schrier said that having quick access to video evidence following an accident can prove advantageous. “Our fleets are able to go in there to the portal and usually get access to that accident reconstruction view and determine how to mitigate that cost,” Schrier said. “If they perceive themselves to be at fault, there’s been a lot written about how to accept fault and mitigate that accident sooner than later — bringing it to court is just going to drive up your cost. Or, if they’re perceived to not be at fault, a lot of these fleets don’t spend a significant amount of time subrogating against the claimant — the person that was at fault at a cost to the fleet. And ensuring that the accident does not count against them, both from an insurance standard and then from a CSA standard as well — both of those are really important to ensure that a fleet knows how to handle those.” While increased technology can prove helpful in reducing risk, getting fleetwide buy-in is critical in leveraging the benefits. When asked if ELD tampering was a problem among truckers, Florida Highway Patrol Trooper Bobby Simmons quickly nodded. “And they’ll sit there and tell you that they don’t mess with it,” said Simmons, who’s been inspecting trucks the past 10 years. “The ones that I’ve caught, I’ve told them, ‘I don’t understand why you would even risk this.’ Their response? ‘What do you mean? I’m not making enough money by this ELD.’ I said, ‘If you just let this thing do what it’s supposed to do and not worry with it, just 38

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As more states legalize marijuana for recreational and medicinal use, testing for impairment will prove more difficult in reducing risk, since the drug can linger in a user’s body for weeks even though they actually may not be under the drug’s influence while driving.

keep track of your hours, 11, 14, your 30-minute break, I said you shouldn’t have any issues.’ They respond, ‘Well, it just makes us run harder and harder.’ Well, they used to do the same thing with the paper log book. The only difference now is that whenever that truck moves, it’s going to put you on duty as driving.” Simmons said that drivers can enable their ELDs to run in yard mode so that the time spent there is not counted against their hours. Still, some drivers can’t overcome the temptation to yank the plug, which can lead to fines and a higher CSA score. He recalled one driver who claimed that he didn’t know that a loose wire hanging from his dash was intended to power his ELD. “As soon as he plugged it in, the box came on — the phone connected,” Simmons said. “So I started looking at different things on it. It showed that he was somewhere in Mississippi. And then five minutes later, it showed him somewhere near Birmingham. I said, ‘You’re pretty good.’ I placed him out of service for no ELD and falsifying. He was unplugging it thinking that it wouldn’t do what it was supposed to do. It also puts him in violation of the 14-hour rule.” Broughton said when used properly, ELDs can improve a fleet’s bottom line. “They may blame the ELD when the vast preponderance of people using ELDs have been able to, after getting through the learning curve, use them effectively to increase utilization,” Broughton said. “You can blame them

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all you want, but that’s the symptom, not the root cause. ELDs did initially shrink capacity, but I said it for a couple of years that this is not going to be the disaster everybody expects, because calamity well anticipated seldom is, one. Two, the visibility will more than offset whatever loss in productivity there is.” Vise advised investing in technology where it makes sense. “I think that the important takeaway is that if you’re not having accidents where you’re rear-ending cars – if you have a safe driving force as it is – then investing in technology to stop one crash every five years or whatever, you have to think about if that makes sense or if just slightly more emphasis on defensive driving is your better option,” Vise said. Ruke said risk reduction technologies now common in consumer insurance are coming to trucking, but in the meantime, he advises teaming up with an agent who understands the trucking industry. “We’ve got some insurance companies now that are marrying personal autos, like Progressive’s Snapshot,” he said. “That’s coming to trucking. That’s going to be the next level to allow these trucking insurers to have your electronic log device’s information, because that’s where you’re going — the miles you’re driving and how you’re driving, speeding or not. That’s coming, but we don’t have anything right now that can be put in a formula to put a dollar savings on it upfront.”

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MIDDLE-GROUND EQUIPMENT: 48 VOLTS

POWER 48-volt mild hybrids safe, cost less, so why stick with 12? BY TOM QUIMBY

ild hybridization in long-haul trucks is gaining momentum for fuel savings and emissions reductions. The 48-volt system works in tandem with a truck’s existing 12-volt architecture and includes an electric motor/ generator (in place of the alternator), energy recovery during braking and deceleration, and batteries capable of high-power discharge and recharge. Parasitic loads such as power steering, HVAC, brakes and the engine fan can be powered by electric motors. The savings add up. Eaton reports that its 48Eaton reports that its 48-volt mild hybrid regenerative accessory drive, which the U.S. Department of Energy used in its Super Truck II program, reduces fuel consumption by volt mild hybrid regenerative accessory 2% to 3%. drive, which the U.S. Department of Energy used in its Super Truck II program, electrical-rated boots, tapes off her stall with yellow hazard reduces fuel consumption by 2% to 3%. tape and goes through critical shutdown procedures before “That may not sound like a lot, but that could be up to even thinking of working on the high-voltage truck. $1,500 to $2,000 a year in fuel that would be saved through Though not as dangerous, mild 48-volt hybrid systems are that system,” said Matt Nolan, eMobility global product stratnot without risk. egy manager for Eaton, during a video presentation. “It’s not the voltage that kills, it’s the current,” said Professor But why 48 volts? Safety and savings. “Using 48 volts makes sense because it stays under the 60John Frala, who instructs classes on alternative fuels, including volt safety limit, beyond which significant costs are incurred to electric and fuel-cell vehicles, at Rio Hondo College in Whittier, Calif. “A small current of 500mA can stop a heart.” keep the operator and first responders safe,” said Dave Genise, Besides offering safer working conditions, 48-volt hybrid director of engineering for Eaton. systems cost less than all-electric; require fewer battery cells, In Dana’s roughly five-minute-long “Electric Vehicle Mainwhich reduces weight; do not require costly charging infratenance Safety Tips” training video, the late women's landstructure; and use smaller-gauge wires versus 12- and 24-volt speed record holder, Jessi Combs, puts on two pairs of gloves, systems, which reduces weight and cost. a hood, a special jumpsuit and an arc-resistant face shield and 42

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EQUIPMENT: 48 VOLTS “There is definitely a weight and cost savings to the wiring harnesses,” Genise said. “For Eaton’s 48-volt mild hybrid system, the main power harness is 40% lighter than the 12-volt cables it replaces, saving up to 50 kilograms per vehicle at the same power. However, this effect is quite small compared with the overall cost of the collision mitigation equipment. Another option, which Eaton often uses, is to keep the same cable size and increase the available power to four times. This provides increased power without adding weight.” During a presentation on 48-volt technology at last year’s Technology & Maintenance Council meeting in Atlanta, Jim Bevan, eMobility manager for Daimler, said that while less wiring drops the price on one hand, additional technology required for a multivoltage system (i.e., converters and equalizers) would negate those savings and actually result in a higher upfront cost. The savings, Bevan said, would come over time through improved fuel economy, thanks to the truck’s hybrid capability. Other challenges for a 48-volt system include increased corrosion problems, particularly at ground, and dramatic arcs. “Arcs can be dangerous,” Bevan said. “This is something that needs to be considered when we’re designing these systems.” Playing nice with others Anyone who’s ever handled a greasy 12-volt starter motor beneath a powertrain knows there is nothing light or small about them. About half as dense as gold, one cubic foot of copper weighs 559 pounds, which at current market value adds up to $1,542.84. A fourth of that weight is 140 pounds or $386.40. Let that sink in for a second. A 48-volt system requires onefourth of the wiring of a conventional 12-volt circuit. While the cost savings may be offset by other expenses brought on by 48-volt technology, using one-fourth of the wiring invites a welcomed reduction in weight and the size of motors and wiring harnesses. There’s only so much room under the hood and only so much cargo that can be hauled. Every cubic inch and ounce counts. So what about taking the entire system to 48 volts? After all, it would eliminate the hassle of dealing with a truck that has 12- and 48-volt circuits and cut even more cost and weight in wiring. Seems like a no-brainer, especially at a time when trucks are getting additional electronics such as collision mitigation systems. “No,” said Richard Beyers, vice president of engineering and research and development for Bendix. “There’s not a significant cost reduction, since these systems are not high-power consumers. When you talk about the HDAD sensors, the cameras, the radars and all that —there’s no benefit to those devices in going to high voltage. They’re already working at 12 volts, and that’s where the big volumes are. I think it boils

The 48-volt system works in tandem with a truck’s existing 12-volt architecture and includes an electric motor/generator (in place of the alternator), energy recovery during braking and deceleration, and batteries capable of high-power discharge and recharge.

down more to a total cost of ownership. When you look at the installed cost, that’s what’s going to drive the voltage. You can do it at 12 effectively and cost-effectively. That’s probably the cheapest way to do it, because you have economies of scale.” Collision mitigation technology has been on the market for years in passenger cars, along with 12-volt lights, radios and GPS devices. Firmly established supply chains and production methods drive the Class 8 market, and hanging these low-watt electronics to 48 volts would entail much larger costs with no real benefit at the moment, Beyers said. Also, lights will last longer at 12 volts than 48, he said. “If you look at the chassis itself, 12 being the standard here, 24 volts being the standard in Europe, there’s no real drive to go to 48 volts,” Beyers said. “And then on top of that, the problem is that the cost of the electronics to go to 48 volts would drive the cost higher, not lower, because of the protection devices that they have to put in to make it automotive-grade.” Other factors, however, may converge to push for a larger 48-volt footprint. “If there’s a benefit functionally or safety-wise for highly automated driving or greenhouse gas emissions, they’ll go to 48 volts, but it’ll be selective,” Beyers said. “You can’t do it at 12 or 24 volts. It’s just impractical (to run accessories), because the motors just get so heavy. You need to have higher voltages, and 48 volts becomes a cross between safety and what you can do. You can handle the current and get enough power to do a 5- or 7-kilowatt draw for a prime device like a compressor or a power-steering pump.” Genise agreed that 12 volts will be here for a long time to come, especially in light of all the trailers that rely on the older power stream. “Initially, Eaton sees early 48-volt commercial vehicle adoption in the United States using a dual bus of 48 volts and 12 volts,” Genise said. “It is unlikely the 12-volt bus will be commercial carrier journal

| january 2020 43

EQUIPMENT: 48 VOLTS eliminated unless many of the tried-and-true basic 12-volt systems are available in 48volt versions with the same economies of scale. “Trailer fleet life also becomes important,” he said. “With roughly four trailers in use for every truck, there will be a need for 12-volt trailer power for some time to come. For this reason, Eaton expects a 3-5kW 48-volt/12-volt DC/DC converter will be needed to cover the expected 12-volt loads. Over time, scale will grow on 48 voltFor Eaton’s 48-volt mild hybrid system, the main power harness is 40% lighter than ready electric components, partly reducing the 12-volt cables it replaces. Another option Eaton uses is to keep the same cable cost, and the 48-volt/12-volt converter will size and increase the available power to four times, which provides increased also shrink, reducing cost further through power without adding weight. smaller wiring harnesses and less powerful cable on the motor generator unit (MGU). Anything above converters to support the 12-volt bus.” that amount would use orange cable. Though mindful of the challenges in adapting 48-volt “The prime power unit and MGU carry protective meacircuits, Larry Rambeaux, sales manager for Purkeys, said colsures for voltage control,” Spohn said. “In all electrification lision mitigation systems may stand to benefit from an uptick powertrains, installation and removal must follow the ordered in voltage. procedure.” “Higher voltage could allow the system to be more efficient In addition to Ram pickups, 48-volt systems currently are and make them faster-responding,” he said. being used in Mercedes S-Class cars, Bevan said. However, there are challenges, too. Jeff Williams, senior power electronics engineer for Volvo “Another real concern over the higher voltage is the fact that Group, spoke last March at TMC’s presentation on 48-volt the lower current can mean smaller wires used,” Rambeaux hybrids and said that larger voltage systems have been used said. “While this can be a great weight and cost savings inisuccessfully for years in aviation, military and European comtially, the risk of corrosion grows as the voltage increases, and mercial vehicle applications. all connections will have to be made more robust and better “It’s not new technology,” he said. “There are billions of sealed to live the life of the truck. Also, any repairs will have to miles on this equipment.” be done with higher-quality components and workmanship.” Williams said that higher voltages enable brighter lights and more effective braking on trailers (especially on triples) and On the road again could “facilitate active aero, gap reduction, e-PTOs (powerThe only factory-produced 48-volt truck currently available takeoffs), solar features, etc.” is Ram’s 1500 eTorque, which features a 48-volt battery that He said additional components will be required in a multiprovides boost to the powertrain with electric assist. voltage system, including a battery equalizer to maintain the Brian Spohn, manager of vehicle electrification for Ram, said that since its mild hybrid is not all-electric but instead has stress equally in a multibattery configuration. But no matter the battery, DC voltage is only as good as its a common ground, personal protective equipment is not required like it is on a high-voltage electric vehicle or hybrid. But ground, which some feel may prove to be an area of concern for 48-volt applications. before the hood goes up, technicians must undergo training. “Arc fault protection is currently being developed for higher“On top of the current training for the Ram 1500, the FCA Performance Institute initiated a special course on the eTorque voltage applications – generally 400 volts to 1,000 volts – but mild hybrid and how to service and diagnose the system,” said not for 48 volts,” Genise said. “However, Eaton, along with many OEMs that currently operate 24-volt systems, recomBrian Szalk, head of technical training for Ram. “We estabmends managing the 48-volt grounding loop by using cables lished this course as an online resource in different languages and connection systems to eliminate the challenges with voltage, for quick proliferation and constant access. Technicians must corrosion and electronic noise associated with using the chassis complete the course before servicing the e-torque system.” as a grounding loop. This also eliminates any negative impact of One of the lessons that technicians receive focuses on cable a 48-volt system on sensitive collision mitigation systems.” colors. An electrified vehicle at or below 60 volts uses blue 44

commercial carrier journal

| january 2020

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Volvo Trucks North America, in partnership with global analytics firm SAS, has enhanced its Remote Diagnostics capabilities, allowing for more precise analysis and decisionmaking.

The connected vehicle is the new aftermarket for truck manufacturers and dealers BY AARON HUFF

om Howard gets email alerts whenever his fleet of Kenworth T680s or T880s detects issues that require service. As fleet director of Veritable Vegetable, an organic produce distributor based in San Francisco, he uses Kenworth’s TruckTech+ Remote Diagnostics service. The same alerts are sent to a local dealership, NorCal Kenworth. “Kenworth TruckTech+ helps us avoid all these hassles by allowing us to determine if there’s an easier fix or if the truck can be driven to a Kenworth dealership instead of having it towed in,” Howard says. “That’s great for our company’s bottom line.” Vehicle downtime is planned or not

planned. The cost spread between the two are miles apart. Diagnosing and repairing a vehicle with an unexpected service event may cost between $700 and $1,500 a day in lost revenue. The downtime costs add up when technicians have to step through troubleshooting diagrams or when trucks wait for maintenance bays to open up or parts to arrive. The expense of the repair itself may be a fraction of the cost to a fleet. To keep downtime to a minimum, fleet managers have to know in advance of any developing problems and turn unplanned events into planned ones. They also need to understand the risks before allowing a driver to continue

Veritable Vegetable, an organic produce distributor based in San Francisco, uses Kenworth’s TruckTech+ Remote Diagnostics service. The same alerts are sent to this local dealership, NorCal Kenworth.

driving a vehicle with a problem. For the past several years, truck manufacturers and dealers have gotten into the business of predictive maintenance. They use wireless connections to their customers’ vehicles to identify services that maximize uptime. CCJ recently got an exclusive behindthe-scenes look at what happens inside the offices of an OEM to give fleets the information and help they need to make the best possible business decisions for maintenance.

Accurate diagnosis Virtually all off-the-shelf telematics devices are able to connect to a vehicle’s Controller Area Network (CAN bus) to capture and transmit diagnostic trouble codes (DTCs). These codes, at least in their raw form, give meaningless information to a fleet operator, driver or technician. In the past few years, truck 46

commercial carrier journal

| january 2020

TECHNOLOGY: REMOTE DIAGNOSTICS a timely manner. OEMs understand the conditions that have a high probability of escalating to a de-rate situation, says Joe Edmonds, project manager of Connected Services for Navistar. Navistar has a remote diagnostics service, OnCommand Connection (OCC), with a Fault Code Action Plan to give its fleet customers insight into the probability of a failure for each event. With this information, fleets are able to make a decision about when and where to send trucks for service. “Aside from physical damage, there are virtually no conditions that would result in a de-rate if the vehicles are being properly managed,” Edmonds says. With data analysis, Navistar also has been able to combine faults for a specific condition to determine the probability of a specific failure. The company is able to predict the failure of AC compressors with such high confidence that it is paying for warranty replacements before the part fails, he says. manufacturers and dealerships have solved complex data challenges needed to diagnose remote problems accurately and give their customers action plans and services to maximize uptime. Many DTCs do not require immediate service. A vehicle can keep moving without fear of breaking down. Some codes also appear and disappear randomly, creating “false positives” that could lead fleet managers to send drivers to the shop for a diagnosis that may be unnecessary. In 2015, Volvo Trucks North America (VTNA) implemented a software platform from SAS to solve its data challenge to filter out false positives, diagnose problems accurately and send meaningful alerts to customers and dealerships to expedite repairs. When a truck comes in, dealers are able to skip hooking up a diagnostics tool. That step is completed remotely, although “when we do that, we take the

risk,” says Mark Curri, senior vice president of uptime and customer support for VTNA. “If we are wrong, we will still make good on it. We are taking the risk away from the customer. Only the OEM can do that.” Certain DTCs, such as from a vehicle’s emissions system, will cause a de-rate condition if the problem is not fixed in

Inside the Uptime Center Data analysis has made it possible for OEMs and dealers to diagnose and address fleet maintenance needs accurately and proactively. Without the necessary technology and support network, information would do little to reduce downtime. On Dec. 6, CCJ had an exclusive

Bobby Weisneck, a supervisor of the remote programming and diagnostics team at Volvo Trucks’ Uptime Center in Greensboro, N.C., proactively schedules service events with fleet customers to update the software on their vehicles, engines and transmissions.

commercial carrier journal

| january 2020 47

TECHNOLOGY: REMOTE DIAGNOSTICS opportunity to interview employees on the front lines of Volvo Trucks’ Uptime Center to find out how they turn information into action. Uptime Center employees are organized by functions that support Volvo Action Service, a customer-facing group with about 45 employees who monitor and manage the end-to-end maintenance needs of fleet and owner-operator customers. The integrated support staff includes specialists in parts ordering, warranties, product reliability, body builders, electronic control unit (ECU) programming, dealer IT support and more. “It’s been quiet today,” says Bobby Weisneck, standing at his desk. He is the supervisor of remote programming and diagnostics in the Uptime Center. Before CCJ started the interview, an employee from the dealer IT support group was at Weisneck’s desk asking to help solve an issue. The interaction on the floor is an example of why VTNA brought all departments together into one building to support its customers and dealers. Everyone in the Uptime Center uses the cloud-based platform, Volvo ASIST, to connect with all parties involved in a service event or “case.” One way a case begins is with an alert sent to a fleet manager via email or directly to a cell phone app when a DTC occurs. “A lot of times, we notify the fleet before the driver knows there is a problem,” says Eric Swaney, manager of Connected Vehicle Uptime Solutions. Weisneck, a former diesel technician, had many cases in his work queue that day. None of the cases involved critical red fault codes, and all were resolved

commercial carrier journal

Bryan Martin, an uptime support business analyst at Volvo Trucks’ Uptime Center, receives inbound calls from customers that use the Volvo Action Service for maintenance needs that aren’t triggered by alerts from remote diagnostics, such as blown tires.

quickly within 30 minutes. Examples of a red code might include trucks that have a low coolant level or high oil temperature, he says. Many noncritical yellow code events can be corrected with a software update, he says, while others need a sensor replaced. For updates, Weisneck uses software to program the ECUs of engines, transmissions and vehicle parameters over the air. Remote programming can be done to more than 250,000 connected trucks on the road, dating back as far as the 2012 model year. Using the Volvo ASIST software, Weisneck sends customers an email or a phone call to set up a date and time to run the programming. “Normally, they will call in, and we’ll do it right then and there,” he says. “At that point, we do not have to follow up.” If a customer is routed to a dealership for a repair, the diagnostics information in the case file is visible to technicians to speed repairs. The connected service has reduced diagnostics time on the shop floor by 70%, says Ash Makki, product

| january 2020

marketing manager of connectivity. Before a case is closed, the technician reports how the problem was fixed within ASIST. The information is used by the SAS platform to improve the accuracy of diagnostics.

Looking under the hood

Reducing diagnostics time is only part of the solution. VTNA has been able to reduce repair times by more than 20% by routing trucks to dealerships and having the right part and information on hand, Makki says. In 90% of the major markets, Volvo Trucks North America has dealerships that are Certified Uptime Centers, meaning they have dedicated lanes to handle basic and advanced repairs. During an interview with CCJ, Bryan Martin, an uptime support business analyst, also says his work queue had been “pretty clear today.” Martin receives inbound calls through Volvo Action Service for any event that isn’t triggered by remote diagnostics. Examples include blown tires, dead batteries and broken air lines. He says he normally Navistar’s OnCommand works multiple cases at a time. Connection has built-in support If a truck with an event uses systems that offer explanations a telematics system from Volvo, for what is wrong with the truck and guide the fleet when Martin has access to its telematmaking decisions regarding the ics data through Volvo ASIST. As maintenance and repairs. an example, Martin showed CCJ

TECHNOLOGY: REMOTE DIAGNOSTICS

Peterbilt has expanded its factoryinstalled fully integrated remote diagnostics to the company’s mediumduty product line. SmartLinq is available for order on Models 348 (shown), 337, 330 and 325 when equipped with a Paccar PX or natural gas engine.

a case that he resolved two days earlier. A driver called in to say his truck had shut down. The driver said the truck was overheating. Martin looked at the telematics data, which showed the truck had plenty of coolant, but the temperature was high. “That means it must have been a fan clutch or a fan belt,” he says. In this and other cases, Martin looks for signifiers to diagnose problems remotely before he sends out technicians for repairs. The customer profiles in ASIST have detailed information about how the fleet wants to handle cases. Some want Volvo Action Service to call for approvals during office hours and give preapprovals to make emergency road calls outside office hours. Martin showed how he uses ASIST to locate dealers and preferred vendors. He also can check parts inventory at dealers. With a service record, if the same part had to be replaced six months down the line, the system keeps track of the warranty details to help the customer. “We manage the case from end to end,” he says. Because fleets typically do not operate only one vehicle brand, some dealerships now offer remote diagnostics and maintenance services that are compatible for all vehicles.

The largest dealership for several OEM brands is Rush Truck Centers. Its remote diagnostics service, RushCare, brings together telematics data from OEM-installed devices as well as from an independent telematics device it uses from Geotab. Rush Truck Centers developed proprietary software to import telematics data from any source to have one platform to proactively manage its customers’ remote diagnostics and breakdown maintenance, says Cindy Hunter, technology sales director. RushCare manages the end-to-end customer experience from diagnostics through repair. A dedicated concierge team monitors fault codes and receives calls from customers to schedule preventive maintenance at one of the company’s facilities. The team keeps the customer updated throughout the entire process, says Chad Wellborne, general manager for RushCare.

Expanding connected trucks OEMs and dealerships are analyzing all the data they can to improve customer service, uptime and their physical products. Daimler Trucks uses its telematics data to inform its design and product development process, says Sanjiv Khurana, general manager of Digital

Most Detroit-powered Freightliner and Western Star trucks built since April 2011 include the connectivity platform that delivers Detroit Connect’s Virtual Technician remote diagnostics service.

Vehicle Solutions. One of the benefits of having constant feedback from connected truck data streams is for engineering to improve vehicles’ safety systems. “Our engineering teams have visibility to specific cases across the country where we have the most critical safety events,” Khurana says. “Using this information and insights, our engineering teams work to constantly improve and refine our trucks’ advanced safety systems and algorithms.” David Pardue, vice president of connected vehicle and contract services for VTNA, may have put it best. Fleets aren’t just buying equipment anymore, they also are buying uptime from data analytics companies. “We are an analytics company that happens to build trucks,” Pardue says.

Mack Trucks’ Over The Air software updates are designed to enable customers to ensure their trucks are operating at an optimal level without disrupting their schedules.

commercial carrier journal

| january 2020 49

Engine oils

Shell’s Rotella T4 NG Plus 15W-40 heavy-duty engine oil is formulated to provide protection under the full range of pressures and temperatures in mobile natural gas engines, as well as in diesel and gasoline engines. Also, the company’s Rotella T6 Full Synthetic 0W-40 heavy-duty diesel engine oil now is licensed for the API CK-4 service category and is designed for advanced engine technologies in both on- and off-road vehicles and equipment. Shell Lubricants, https://rotella.shell.com, 800-237-8645

Long-haul drive tire Roadmaster’s RM852 EM long-haul drive tire is engineered by Cooper and has 30/32nds of tread depth, 3D microgauge siping and a solid shoulder design for added traction in challenging weather conditions. The SmartWay-verified tire’s tread lugs are designed to resist squirm and promote even wear, and its tread compound is formulated to provide longer miles to removal. Roadmaster Tires, www.roadmastertires.com, 800-854-6288

Improved electrical, air assemblies

Cordless ratchet

Snap-on’s 14.4-Volt Hex Drive Long Neck Cordless Ratchet has a low tapered head and a 13¾-inch length designed to provide added reach and accessibility. The tool features 35 ft.-lbs. of torque output, 46 ft.-lbs. of manual torque load and a variable trigger speed to help tackle tough fasteners. Battery life can be monitored with the fuel gauge, and an LED headlight and an overmolded cushion grip both help facilitate comfortable use. Snap-on, www.snapon.com, 877-762-7664

Phillips has redesigned its Premium 3-In-1 and 4-In-1 Electrical and Air Combination Assemblies with QCP Trailer Side Connections to help reduce fatigue and strain on the plug and 7-way electrical cable that can be experienced on some trailer applications where the electrical connection is higher than the air connections. The trailer side lead on the 7-way electrical cable now extends out an additional 6 inches, and the spiral wrap on the same side is reduced by 6 inches, creating more slack on the 7-way cable and relieving strain placed on the cable lead and coupled 7-way electrical connection due to pull from the weight of the combination assembly. The extended length also allows for more rotation in the lines during a jackknife. Phillips Industries, www.phillipsind.com, 800-423-4512

commercial carrier journal

| january 2020

PRODUCTS

Blind spot detection system

ASA Electronics’ Voyager VBSD3 Blind Spot Detection System is designed to increase driver awareness by detecting vehicles and other obstructions in the vehicle’s blind zone as well as rear cross-traffic. When an object is detected in the blind zone, the driver will be alerted by an LED light beacon installed in the cab, and an audible warning will sound if an object is detected in the blind zone while the turn signal is on. The Rear Cross Traffic Alert System will issue these same warnings when the vehicle is in reverse. The radar sensors are protected by a rugged, durable waterproof housing. ASA Electronics, www.asaelectronics.com, 877-305-0445

Monoblock connectors

TE Connectivity’s AMP MCP 18P Monoblock Connectors are designed for harsh environments in commercial transportation. Suited for bulkhead, in-cabin and fuse-and-relay-box applications, the unsealed connectors have a reduced mating force and can be used for new or existing designs. They have a lever design for a more convenient fit into existing bulkhead cutouts, and the required secondary locking feature helps keep contacts aligned. A flameretardant material increases safety, and four available colors help facilitate proper mating and easier assembly. TE Industrial & Commercial Transportation, www.te.com/ict, 800-522-6752

Reefer unit

Thermo King’s T-1090 Series transportation refrigeration unit (TRU) is engineered for reduced engine runtime with a quicker temperature pull-down to set point and a faster recovery time after door openings. The company’s SR Control System controller facilitates accurate temperature control and efficient operation, and its OptiSet Plus is designed to optimize and lock-in operating parameters to maximize fuel efficiency and cargo temperature control. Reciprocating compressors, improved coil designs and optimized engine management help increase cooling capacity. Thermo King’s T-1090 Max models feature larger coils and heat exchangers, optimized compressor and engine speeds and a sound reduction kit. The optional SmartPower Electric Standby system runs the refrigeration unit on electric power to lower fuel usage, reduce engine wear and decrease emissions.

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Thermo King, www.thermoking.com, 952-887-2200 commercial carrier journal

| january 2020 51

PRODUCTS

AWD conversion

Marmon-Herrington’s AWD Conversion option is designed to minimize cab height increase from 10 inches to 5 inches and employs the company’s subframes, stepframes and front suspension configurations. The conversion is available for Class 7 and 8 trucks (14,000-22,000-lb. front-axle weight ratings) and is available across various truck models based on specific engine and transmission configurations. The design supports the latest generation of aerials with the company’s double-reduction planetary front-drive axle that distributes input torque across the entire axle, allowing for a compact ring and pinion gear set that reduces the size of the center section and increases ground clearance and durability.

Lightweight trailer suspension

Meritor’s MTA-Tec6 Lightweight Trailer Suspension is engineered for capacities up to 23,000 pounds for tankers, flatbeds and other demanding vocational applications. Both the standard fully-dressed top and low mounts are designed for weight savings. The suspension is built with the company’s 6-inch-diameter MTec6 axle designed for increased stiffness to deliver better tire-to-road contact. The plug-andplay design is interchangeable with other trailing-arm air-ride suspensions and fits within the narrow hanger footprint of current trailer configurations to facilitate easy installation. The company’s proprietary bolt-on cam bushing design allows for camshaft service without removing the hub.

Marmon-Herrington, www.marmon-herrington.com, 800-227-0727

Meritor Inc., www.meritor.com/driveforce, 866-668-7221

Rectangular LED headlight Commercial vehicle battery system Webasto’s Commercial Vehicle Battery System is designed for total scalability and configuration flexibility. Each battery pack has 35 kWh of energy, and up to 10 packs can be used for a combined 350 kWh. With 400- and 800-volt versions available, the plug-and-play system can be configured via the vehicle interface box, which is the master battery management system and power distribution unit. A separate thermal management system helps keep the battery system at an optimum operating temperature, performance and range. Also available separately is the company’s TurboDX Level-2 charging station, which is compatible with both plug-in hybridelectric vehicles and battery-electric vehicles and features a slim compact design, a durable aluminum rear enclosure and a quick-read charging status indicator. Webasto North America, www.webasto-comfort.com/en-us, 810-593-6000

commercial carrier journal

Truck-Lite’s heated 5-by-7-inch rectangular LED headlight is designed to warm the lens consistently when temperatures drop below 50 degrees Fahrenheit. The headlight is constructed of military-grade die-cast aluminum with a non-yellowing polycarbonate lens to help protect against damage from impact, roadside debris and other hazards. Truck-Lite Co., www.truck-lite.com, 800-562-5012

Medium-duty starter motor

Prestolite Electric’s Leece-Neville PowerPro Extreme 5 12V Starter Motors are available for Detroit Diesel DD5 5.1L and DD8 7.7L 6- to 10-liter engine models and are designed to provide dependable performance and durability for mediumduty vehicles. The 21.5-pound 5kW starter features a planetary gear reduction design for higher torque and speed and less power consumption in a variety of demanding environments, including pickup and delivery, fire and rescue, construction, refuse and school bus. The company’s Soft-Start Relay technology helps prevent ring gear damage, while its Integral Magnetic Switch technology helps eliminate voltage drop. A sealed noseless design helps protect against dust, oil and other contaminants. Prestolite Electric, www.prestolite.com, 866-288-9853

| january 2020

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commercial carrier journal

| january 2020 55

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PREVENTABLE or NOT? Doe backs into big trouble

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commercial carrier journal

| january 2020

n the day of the accident, tractor-trailer driver John Doe had been plagued by subzero temperatures that’d frozen his shotgun-side door latch open, requiring that it be tied shut with a plastic string of McDonald’s bags. Worse yet, Doe’s Gummy Bears had been cold-soaked during a protracted lunch break and were virtually impossible to chew! “Jeez, what’s next?” Doe asked himself. Alas, the answer to that question wasn’t long in coming. Arriving at Big Al Murphy’s Western Wear on Main Street with some cartons of faux-lizard Range Rider cowboy boots, Doe maneuvered his tractor-trailer around a large dumpster, pulled up to the curb within a noparking zone, engaged his four-way flashers, glanced at both mirrors (nothing coming except a Sprinter van) and proceeded to back his rig toward the front of the store. However, the van’s driver, Marty “Tex” Schwartz, saw that Doe’s truck was about to block the entrance to Big Al’s tiny parking lot, so without warning, Schwartz attempted to squeeze past the back end of Doe’s trailer and … Eeek! Tractor-trailer driver John Doe CRUNCHO! Oh no! Since was backing his rig toward the Doe contested the preventfront of a store for a delivery when his trailer struck a van able-accident warning letter whose driver was attempting to from his safety director, the squeeze past behind him. Was this National Safety Council’s a preventable accident? Accident Review Committee was asked to render a final decision. To Doe’s dismay, NSC ruled against him. Despite the van driver’s stupid move and failure to activate his turn signal, Doe should have known he was about to block the parking lot’s entrance and could have averted the incident by continually eyeballing his left-side West Coast mirror while backing.

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