Posted on Tue, Aug 17, 2010 @ 09:57 AM
The Department of Transportation (DOT) sent its proposed Hours of Service (HOS) changes to the Office of Management and Budget (OMB) Monday (7/26) to settle yet another challenge to the rules drivers and trucking companies must follow.
Meanwhile, Transport Topics reported this week that 20% of truckload fleets increased driver pay in the second quarter of 2010 citing Gordon Klemp, principal of the National Transportation Institute in Kansas City, MO.
Continuing difficulties in attracting new drivers, a situation that will only be exacerbated by expected reductions in work and driving hours contained in the proposed HOS regulations, are contributing to this perfect storm.
Any reduction in driver working and/or driving hours will further reduce already strained capacity and require more drivers and trucks to move the same amount of freight.
Flatbed carriers led trucking with more than 30% of such companies raising driver pay, while 20% of refrigerated carriers and 11% of dry van operators did so in the second quarter according to Klemp. He also predicted significant increases in the third quarter.
With carrier margins already depressed as a result of market pressures during the recession, shippers can expect sizeable rate increases to fund these long overdue pay increases.
In a related story, transportation and logistics professionals predicted major changes and increased costs associated with any reductions in driver HOS. Shippers claim they’ve already adjusted their operations as much as possible and any HOS changes would require them to reevaluate their supply chain.
Reduced HOS = reduced capacity = increased need for drivers = increased pay rates = increased freight rates = increased end user costs.
As the economy rebounds and freight levels increase the pressures on the supply chain will increase as well. Shippers would be well advised to truly partner with shippers to tweak their operations and maximize driver/truck utilization. The alternatives are even more expensive than rate increases.
The perfect storm is churning on the horizon.
Written by Kevin Mullen, Directory: Safety
Posted on Tue, Jul 20, 2010 @ 02:12 PM
Perception as defined by Merriam-Webster:
1a: a result of perceiving; observation 1b: a mental image; concept
2: obsolete; consciousness
3a: awareness of the elements of environment through physical sensation <color perception> 3b: physical sensation interpreted in the light of experience
4a: quick, acute, and intuitive cognition; appreciation 4b: a capacity for comprehension
Recently I received an anonymous email that, though very well written, contained perceptions of the author. In this email, specific drivers were named along with the author's allegations of unfair favoritism. As with any information-claiming issues of safety, fairness, or favoritism, the facts are being pursued. The author’s perception that some drivers are performing their duties and “are not getting anything from the Company in return” is blatantly incorrect.
First off, our drivers are compensated for the loads that they move. Secondly, every driver that is a part of our organization is an individual who has different abilities, needs, priorities, and goals. Historically, Area Transportation has been much more compassionate to accommodating our driver’s needs than most carriers, whether it is to care for family, maintain a stable home life, or to allow drivers to participate in activities not related to work.
It seems that the perception of what is good and what is bad, as part of human nature, is often only applied to the advantage of the individual. As in most cases when light is shed on the facts, the perceptions change from alarming concern to minor inconvenience. I like to quote the Paul Harvey catchphrase, “Now for the rest of the story.”
Perceptions can make or break an individual, group, organization, company, or corporation. Take the time to get the facts for yourself. Don’t get caught up in rumor mill, the “Yeah, whatever it was he said” misperceptions that always seem to be more appealing than the facts.
I have been with Area Transportation for over 15 years, I have been in the transportation industry for 30 years. I have been directly involved with start-up operations that have started with negative perceptions that ultimately became very successful once those perceptions were overcome. We are not in a perfect world and fairness is a goal that everyone at Area Transportation strives for. Life is not fair. No matter how the rules are written, or how they are applied, there will always be someone who feels slighted. When anonymous individuals or groups make accusations about things not being fair it makes me wonder if it is because they are not willing to give up accommodations for their individual needs in the interest of “fairness”.
Article written by Mark Andersen, Area Transportation.
Posted on Wed, Jun 23, 2010 @ 02:31 PM
A recent study has found that B2B Companies, which comprise many of ADS Logistics Customers, will likely face 5 key supply chain challenges as they seek to take advantage of the economic recovery, according to a new study by PRTM Management Consultants.
The study, Lessons Learned from the Global Recession, (you have to fill out a form to read the full report so we did it for you) found that most of the 350 manufacturing and service companies surveyed now believe there will be a significant upturn in demand from their customer base over the next few years.
However, the study also warns that many companies lack the supply chain infrastructure critical for meeting the emerging demands of managing an increasingly complex global market.
The 5 emerging demands identified by the study are:
1. Supply chain volatility and uncertainty have permanently increased
: Market transparency and greater price sensitivity have led to lower customer loyalty. Product commoditization reduces true differentiation in the B2B environments, and companies need to respect this reality.
2. Securing growth requires truly global customer and supplier networks
: Future market growth depends on international customers and customized products. Expanding supply chain globalization and complexity need to be managed effectively. Thus, finding supply chain management companies with integrated services such as ADS Logistics will play an increasingly important role.
3. Market dynamics demand specialized, cost-optimized supply chain configurations:
Customer requirements and competitors necessitate custom-tailored supply chains and product offerings.
4: Risk management involves the end-to-end supply chain:
Risk and opportunity management should span the entire supply chain—from demand planning to expansion of manufacturing capacity—and should include the supply chains of key partners.
5. Existing supply chain organization are not truly integrated and empowered
: The supply chain organization needs to be treated as a single integrated process. To be effective, significant improvements require support across all supply chain functions.
More than 85 percent of companies expect the complexity of their supply chains to grow significantly by 2012, yet many did not strengthen critical capabilities during the Recession. Additionally, more than two-thirds expect a higher number of product variations will be required to fulfill local customer expectations. Having an integrated and reliable supply chain process will be critical.
The study concludes with a 5-Point Agenda for Chief Operating Officers over the next 2 years to help them strengthen their supply chain process:
1. Improve customer access to supply chain data
2. Increase upstream and downstream supply chain flexibility
3. Focus on total supply chain cost engineering
4. Implement end-to-end supply chain risk management
5. Integrate and empower the supply chain organization
Ultimately, the main challenge for many companies is not to redefine their organization models, but to transition and manage the organizational change. When it comes to the metals industry, a company like ADS Logistics is ahead of the curve by providing integrated services such as their online inventory management system. The next 20 years will be particularly insightful as winners and losers emerge across all industries in this new economy.
Posted on Tue, Jun 01, 2010 @ 11:36 AM
As promised, Independent Contractors with ADS Logistics are now eligible to enroll in the new ComData Fuel Card Program. So far the new system has been a big hit with company drivers and we are confident that the results with the Independent Contractor Truckers will be the same. The program is open to all Independent Contractors working with ADS Logistics, either in our Area Transportation or Western Intermodal division.
Independent Contractors who would like to participate can register for the program by going to any Area Transportation terminal and signing the lease addendum. Truckers who register at the ADS Logistics headquarters in Chesterton Indiana will receive their ComData cards on site. For all other Truckers who register at the other terminals, the ComData card will be mailed to them.
Details of the ComData Fuel Card Program
- The ComData card is valid at any Pilot Truck Stop, as well as ADS Headquarters
- The ComData card is intended to be used only for fuel and oil purchases.
- All purchases on the ComData card will be deducted from the next settlement
- ComData card limits will be established on an individual basis
- IC Truckers who are off for more than 2 days will have their card suspended until they return to work
PLEASE NOTE: This Fuel Program involves using a new ComData card. The ComData card that is issued to Independent Contractors when they first lease on is for Direct Deposit only, and will not work with this Program.
Our hope is that the ComData Fuel Card Program saves our drivers time and money. We encourage all Independent Contractors to take advantage of this great program.
Posted by Mark Andersen: On-Site Manager- ADS Logistics
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Posted on Mon, May 10, 2010 @ 10:47 AM
There may have been no more challenging a period in trucking than what we face in 2010 and beyond. As previously discussed, a great deal of capacity has been eliminated over the past 18 months. Much of it is not coming back. The regulatory pressures of CSA 2010 promise to further exacerbate this problem by contributing to an already burgeoning driver shortage.
Rates (and along with them driver wages) have been driven down by seemingly savvy shippers during the economic downturn which will only serve to stoke the perfect storm forming on the horizon.
Self-serving carriers have undercut their competition in the misguided assumption that any rate is better than no freight at all. Carriers need to get a moderate return on their investment. Those who under-priced their services are not long for this world.
Shippers now face the reality of steep rate increases in order to ensure sufficient capacity to move their product. The second-tier carriers who were willing to cut their rates in order to obtain their freight will be unable to supply trucks. Worse still, the trucks and drivers they do supply will be substandard. Carriers who accept less-than-market rates have to cut somewhere… maintenance and safety are usually the first casualties.
Regulations restrict the hours a truck can operate. Shippers will need to stop “talking” about being carrier-friendly and become carrier-friendly. No more can trucks afford to sit for hours at the shippers’ dock or their vendors’ dock. Trucks will be diverted to shippers who can get them loaded in a timely manner and ensure the carrier (and driver) can maximize their available hours thus providing a return on investment.
Carriers who cut rates to ensure cash flow (or for whatever reason) will now need to pay the piper. We’ve “trained” West Coast shippers by taking $1.00/mile freight for years. Why would the rates ever go up if we continue to haul their freight for less than it costs to run a truck? Is any rate really better than no freight (deadheading) in the short or long term? We’ve hurt ourselves in the past. It’s time to stop this self-destructive behavior.
The FMCSA is tasked with getting unsafe carriers off the roads. CSA 2010 is their latest and greatest tool to do so. So why are all these fly-by-night and renegade carriers still out there undercutting rates? I suspect the number of carriers who have gone out of business (failed) in the past eighteen months is a hundred times the number the FMCSA has put out of business. Is market economics the real regulator of our industry? If so the market it poised to act.
In order to ensure our industry is running safe, compliant trucks driven by safe, compliant drivers, it must get reasonable rates and be able to maximize the utilization of both. Anything that does not support that premise (second-tier carriers, shippers or enforcement) does the entire supply chain a disservice.
Written by Kevin Mullen: Director- Safety, ADS Logistics
Posted on Tue, Mar 30, 2010 @ 11:38 AM
Great News! We have finally made a breakthrough working with our two main database systems, ComData and Innovative, to bring all our flatbed truck drivers, (both Company and Independent Contractors) ComData fuel cards. We will be converting from driver assignment to the unit assignment in order to accomplish this task.
Effective April 12, 2010, Company truck drivers will need to enter a PIN number in place of their Employee ID when they get fuel. The PIN numbers have already been established with ComData. The last four (4) numbers of their Driver's License are their PIN. We will be sending out more information to our Company truck drivers of this upcoming change. Once the PIN number change is implemented, we will begin converting the fuel cards from the driver assignment to the unit assignment. New cards have been received in the Chesterton office and will be issued to Company drivers in the very near future.
Once the PIN change is implemented we will test the process with the Independent Contractor Cards to ensure a smooth operation. We anticipate May 3, 2010 as a start date for our Independent Contractors to be able to sign up for a ComData card and begin using them to reap the benefit of a discount on their fuel purchases.
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Posted on Tue, Mar 23, 2010 @ 09:17 AM
As detailed in prior articles the first part of CSA 2010 that will affect drivers, Pre-Employment Screening (PSP) is here.
The Federal Motor Carrier Safety Administration (FMSCA) awarded the contract to administer the database of crash and compliance history to National Information Consortium Technologies, LLC (NIC Technologies) who recently began enrolling carriers wishing to take advantage of the FMCSA data when making hiring decisions. ADS LOGISTICS CO, LLC (Area Transportation) was one of the first carriers to enroll in keeping with our policy of obtaining as much information as possible in order to make the best qualification decisions we can. Area Transportation feels that by utilizing this available data we can continue to ensure our status as the premier provider of flatbed trucking to the industries we serve.
The enrollment e-mail from NIC Technologies indicated a launch date of early to mid April.
The program FAQ’s indicate five (5) years of crash data and three (3) years of roadside inspection data will be available when the program goes live. As we’ve been telling everyone since we began our CSA 2010 education blitz “CSA isn’t coming… it’s here!” The data has already been collected. Five years of it!
Drivers who inspect, maintain, and repair their vehicles and who drive safely, sanely, and professionally will likely not need to worry. Drivers with a history of crashes and violations on roadside inspections however may have a problem, especially if they apply to a new carrier. [Driver scores affect the carriers score so carriers may be hesitant to hire drivers with a checkered compliance history.] Those drivers would likely be well-served by staying with their current carrier until their scores improve.
Drivers who work for reputable carriers like Area Transportation, who operate safe equipment and demand compliance with regulations stand to fare better.
The American Trucking Associations (ATA) President, Bill Graves recently called CSA 2010 a “game changer. For unsafe carriers and unsafe drivers CSA 2010 definitely has the potential to be just that.
Stand by for Phase 2… FMCSA fully intends to “intervene” with unsafe drivers in future incarnations of CSA 2010. Unsafe drivers, like unsafe carriers, can expect varying levels of intervention from warning letters to possible disqualifications.
Article submitted by Kevin Mullen- Director: Safety, ADS Logistics Co, LLC
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Posted on Tue, Mar 16, 2010 @ 03:13 PM
It’s hard to believe that a year ago we were practically begging for shipments and moving freight at a rate that barely covered our costs. We were not alone, as evidenced by the lack of trucks available for freight right now. As rates and freight decreased more and more truck owners found they could not make a decent living so had to give up their life on the road. Now, just one year later (albeit a very long year) we have seen an increase in freight, but not in available trucks to haul the freight. The laws of supply and demand will tell you this type of market will see rising prices.
How does a customer hold down costs? If that customer has ongoing business and volume either inbound or outbound they can contract with a carrier. At Area Transportation, our contract customers can count on our services all the time, regardless of the market and at a set price. When using a carrier that has their own tractor and trailers, a contracted customer can have peace of mind knowing that their loads will be covered regardless of rates or truck shortages. As a carrier, this is the benefit to having company-owned trucks. As a customer, this is the benefit of using a carrier that owns their own equipment!
Pricing for customers that need one truck for one move can be a bit more difficult and the rate will be reflective of the current market conditions. Whenever possible any buyer of a transportation services should look into contract transportation purchasing and select a carrier with company-owned equipment. This will ensure their loads will be covered and their costs will always be the same no matter what the market.
Article submitted by Marie Studniarz.
Posted on Mon, Mar 08, 2010 @ 02:21 PM
As a former motor carrier safety investigator, I’m going to come clean and reveal the secrets that need to know to avoid enforcement problems. This code of slience breach will forever ban me from enforcement industry activities, but my loss can be your gain.
- Control your speed. The #1 reason for getting stopped and inspected is speeding. (Not surprisingly the #1 cause of accidents is also speeding- thus the focus.) Lane violations, tailgating, and other aggressive behaviors are also guaranteed to get the attention of law enforcement. CMV enforcement personnel don’t need a reason (probable cause) to stop and inspect a truck, but you don’t need to give them one. Simply put, drive safely and professionally and you’ll virtually eliminate your odds of being targeted for inspection. [By the way, there is no law requiring law enforcement to “give 10 MPH” or even 1 MPH over a posted speed limit. Even driving the speed limit when road, weather, or traffic conditions dictate a slower speed is a violation (speed too fast for conditions) in many jurisdictions.]
- Inspect and maintain your equipment. A light out, tire with cord/belt exposed, or other easily-spotted equipment defect will get you pulled over (or pulled behind a scale) every time. Do your pre-trip inspection. Report defects and/or get them repaired before hitting the road. A truck with a headlight out pulling into a scale is almost certain to get a red light. Don’t make yourself an easy target.
- Work for a reputable company. Who you drive for will greatly affect how often you get selected for random inspections. All motor carriers in the United States have an ISS-2 score. The score is based on previous inspections of that motor carrier's trucks. Companies with a history of poor performance on previous inspections will be rated “Inspect” or “Optional,” which increases the likelihood that more of its trucks will be selected for inspection. You’re only as good as the last driver or truck from your company who was inspected. Work for a reputable trucking company like Area Transportation and you’ll get more respect from law enforcement. It’s not a free pass but it will make your life easier. Additionally, most trucking companies travel the same routes or lanes and become known to law enforcement in the areas they run. Companies known for maintaining their equipment and running compliant operations receive far less scrutiny from law enforcement. CMV enforcement personnel concentrate their efforts on those carriers who don’t comply. After all, that’s the purpose of enforcement… to get the “bad guys” to comply.
- If you’re hauling a permit load… stay on the permit route. CMV enforcement personnel are very familiar with permit routes. A multi-axle truck running off a permit route is just asking to be stopped and inspected.
- HazMat haulers and flatbed carriers take extra caution! HazMat haulers and flatbed carriers can expect extra attention from law enforcement due to the extra hazards these types of loads represent to the motoring public. Proper transport of HazMat and proper securement of flatbed loads is a high priority for law enforcement. If you fall into either of these categories you need to be on your game. You need to be sure your HazMat paperwork, load, placarding, etc. and your chains, straps, binders and winches are in order. [Any violation (including logs, equipment, etc.) while hauling placarded HazMat becomes a “HazMat violation” subject to increased fines and penalties.]
Follow these five tips and you can virtually eliminate your chances of being inspected. If however, you are inspected, you can rest assured knowing you’ll pass with flying colors. How important is that to you? How important is it for you to maintain your driving privileges? With CSA 2010 here [see other blogs on this site] violations on roadside inspections result in points assessed to drivers. Clear inspections ensure your continued employability.
Article submitted by Kevin Mullen, Director-Safety
Posted on Wed, Feb 17, 2010 @ 08:52 PM
written by Kevin Mullen, Director-Safety
It is becoming increasingly clear, under strong pressure from Congress, and to some extent from so-called “highway safety advocates” like Citizens for Reliable and Safe Highways (CRASH), that the Federal Motor Carrier Safety Administration (FMCSA) is ratcheting up motor carrier regulation. CSA 2010 is just their latest initiative to identify and address unsafe carriers and now, drivers.
In just the past few years the FMCSA has:
- repealed its longstanding policy against requiring carriers to provide GPS data for use in compliance reviews
- twice revised the Hours of Service regulations
- banned texting by drivers
- tweaked and tightened various other regulations on a regular basis
The goal is both clear and simple: the FMCSA intends to make non-compliance more expensive and less desirable than compliance and ultimately remove unsafe carriers and drivers from the nations’ roads.
CSA 2010 was designed to better identify and increase interventions with unsafe carriers and-- for the first time in FMCSA history-- unsafe drivers. While there have been wildly disparate numbers tossed around, it is clear that some carriers and drivers who don’t embrace safety and compliance will be forced out of the industry by CSA 2010. CSA 2010 is widely believed to be a game changer for the trucking industry.
Unlike the current SafeStat system, CSA 2010 will include all violations discovered on roadside inspections. Carriers and drivers must now address even minor compliance issues.
Carriers would do well to put policies and procedures into effect now, as today’s inspections will impact their CSA 2010 scores later this year. Keep in mind too, that violations incurred by independent contractors (owner operators) leased to carriers will also impact the carrier's score. CSA 2010 scores, like SafeStat, will be public information. Current and prospective insurance companies, customers, the media and yes, plaintiff attorneys will be able to access your scores. Also, as with SafeStat, carriers with poor scores can expect to be inspected more. There is and will be a price to pay for non-compliance.
Aside from the regulatory and compliance issues associated with roadside inspections, there are also the purely economic ones. Cash-strapped states are looking for every revenue dollar they can find, and violations that might have resulted in a warning just a year ago now routinely result in a citation and accompanying fine. Again, there will be a steep price to pay for non-compliance.
Lastly (and arguably most importantly) because violations are in fact defects, they have the potential to impact safety; the safety of our drivers as well as the public with whom we share the roads. Our industry has a moral obligation to provide our drivers with safe equipment and a safe working environment. We must also be able to operate profitably without endangering the public. They have a right to safe passage on our roadways too. There is a human price to be paid for non-compliance.
ADS LOGISTICS CO, LLC Area Transportation is committed to the highest level of safety and compliance. Our motto is “Safety, Service, Professionalism”. Safety is first because without safety there is no service.