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 Thu, Jul 22, 2010 @ 09:37 AM
In what can only be heralded as a historic address, FMCSA Administrator Anne S. Ferro spoke to the National Industrial Transportation League at their Washington Freight Transportation Policy Forum in Arlington VA June 10th.
In her remarks, Administrator Ferro told attendees that wasted “down time” at loading docks was a constant complaint that drivers said negatively impacted safety at numerous public listening sessions this past winter and spring.
Ferro went on to say, “I ask you to increase your stake in motor carrier safety. Practices that leave truckers waiting at the port or terminal for hours at a time do not take account of how long drivers may drive. I ask each of you today to take responsibility in your businesses to increase your stake in motor carrier safety. Between now and the end of the year, take the time to re-examine practices that short change the driver's ability to drive safely.” (The full text of her remarks can be found here.)
Clearly, time spent waiting at shippers and consignees to get loaded or unloaded is putting severe pressure on carriers' and drivers' ability to meet customer expectations while complying with federal hours of service regulations.
Shippers who do not respect drivers' regulated hours will likely find it more difficult to attract carriers to haul their product. (Drivers are limited to 14 hours of on-duty time once they start their day. Hours spent waiting to get loaded or unloaded reduce drivers' remaining work and driving time.)
Shippers and consignees must examine their operations and procedures and work with their trucking partners to find ways to expedite loading and unloading. Failure to do so may very well result in carriers diverting their trucks to more carrier-friendly customers leaving less carrier-friendly shippers with product on their dock or in their warehouse and no trucks to haul it.
Carriers must be able to get their trucks loaded and underway in reasonable time if they are to get maximum use of the equipment and driver. This is just good business practice and necessary for any kind of reasonable return on investment (ROI) on the $100,000+ they have tied up in a tractor and trailer.
Article posted by Kevin Mullen: Director, Safety- ADS Logistics
Posted on Thu, Jul 15, 2010 @ 03:51 PM
How can a city generate income when low on funds...target commercial truck drivers of course! Everyone knows that traffic tickets, whether written for commercial drivers or regular drivers generate income for the county the ticket is written in. Commercial drivers, in particular, are the easiest to write multiple tickets on for various reasons. Here are just some of the reasons that truck drivers can get pulled over and fined:
Serious Trucker Traffic Violations:
- Speeding 15 miles or more over speed limit
- Reckless driving
- Improper or erratic lane changes
- Following the vehicle ahead too closely
- Offenses tied to a fatal accident
- Driving a CMV without a CDL or wrong type of endorsement
- Driving a CMV without a CDL in your possession (producing it at a later date will nullify the offense)
- Violating a Driver or Vehicle out-of-service order
NON-CMV violations can also affect your Commercial Driving Status:
- 2 convictions within 3 years is a 60-day suspension
- A 3rd conviction is a 120-day suspension
- Non-CMV convictions will count towards suspension of your CDL if it results in suspension of your Non-CMV License
Penalties for Violating Out-of-service orders:
- 1st conviction starts with a minimum 90-day suspension
- A 2nd conviction within 10 years brings a minimum 1-year suspension
- 3rd and subsequent convictions increase suspension to a minimum of 3 years
All violations of railroad/highway grade crossing laws carry mandatory suspensions:
- 1st conviction minimum 60-day suspension
- 2nd conviction minimum 120-day suspension
- 3rd and subsequent convictions minimum 1-year suspension
If a CDL holder is convicted of a "law related to motor vehicle traffic control" other than parking violations, including violations that occur outside of work when driving a personal vehicle, you must notify your employer! Additionally, you must report a loss of driving privileges or suspension of CDL to your employer by the end of the next business day. It is important that you drive safely and professionally as your CDL is literally your meal ticket. You should fight every erroneous violation and keep your record (MVR & CSA 2010) free of negative Safety Rating statistics which follow a driver from company to company.
Posted by Kevin Mullen, Director: Safety
Posted on Wed, Jun 16, 2010 @ 12:58 PM
Tom Madigan of the Transportation National Journal recently published a report on Transportation Secretary Ray LaHood and his comments concerning the White House's regard for the trucking industry. The comments have created quite a skirmish among the major players in commercial transportation and recently ADS Logistics was asked to weigh in on the issue. Our own Kevin Mullen will be publishing a response shortly, but to catch you up to speed here is Mr. Madigan's article:
Transportation Secretary Ray LaHood this month sought to calm a dust-up with trucking advocates, responding to their concerns that the department didn't value the role of trucks in the nation's freight system. "Truck transportation... will continue to play an essential role in ensuring the economic health of the country and maintaining the United States' position as a leader in international trade," LaHood wrote in a letter to Bill Graves, president and CEO of the American Trucking Associations.
Graves had written LaHood in April taking exception to public comments the secretary had made indicating trucks should take a lesser role in moving freight. One example Graves cited was the secretary's remark at a March meeting of the International Bridge, Tunnel and Turnpike Association that the "lion's share" of the department's $1.5 billion in TIGER funding "went into our freight system because it takes trucks off the road -- it takes gas-guzzling trucks off the road." Graves responded that it's not simply a matter of shifting the load to rail and waterways, and suggesting so "is not only factually incorrect, it can breed irresponsible policy."
The dust seems to have settled now. But what do you think about freight transportation and the future of trucking? Since trucks will make up a large portion of our freight mix for the foreseeable future -- Graves writes that trucks are projected to carry 71 percent of the nation's load in 2020 -- what's needed to make sure they're as efficient and clean as possible? Does this become a larger question about infrastructure? Are we using the best freight mix now, or is there a better one? What untapped possibilities do you see for rail and water transport?
Click here to read the full report, complete with opinions from leaders in the trucking industry.
Stay tuned for the official reaction from ADS Logistics!
Posted on Wed, Jun 09, 2010 @ 08:55 AM
National Highway Traffic Safety Administration research shows nearly 6,000 people died in 2008 in crashes involving a distracted or inattentive driver, and more than 500,000 were injured. This is a national crisis and a growing concern for transportation safety officials.
To put this into perspective… on any given day in 2008 nearly 1 million vehicles (800,000 to be precise) were being operated by someone using a hand-held cell phone.
A recent study by the Federal Motor Carrier Safety Administration found drivers who send and receive text messages take their eyes off the road an average of 4.6 seconds out of every 6 seconds while texting. At 55 MPH, a vehicle travels more than the length of a football field (371 feet to be precise) in 4.6 seconds.
The high number of fatalities and injuries are small wonder when considering these factors. In fact, it’s hard to believe the numbers aren’t worse. It is, in no uncertain terms, a national disaster but one which we all have the capacity to correct.
No text message, no telephone call is so important as to justify putting another human being at risk of injury or death.
Drive time is not the time to catch up with family or friends.
Drive time is not the time to catch up on voice mails or e-mails.
Drive time is not the time to touch base with a customer or make a sales call.
Drive time is definitely not the time to be texting or reading texts.
None of these tasks will seem even remotely sufficient to justify or rationalize a crash and injuries or deaths. Certainly none of them will sway a jury should you face criminal charges as a result of a crash.
None of the excuses for performing these distracting behaviors behind the wheel will ever heel the pain if it is your loved one who is hurt or killed.
Stop! Think! Resolve not to drive distracted. The reasons to drive distracted are hollow and the consequences are devastating and life changing.
Safety is no accident. Safety is personal. Safety is in your hands.
Posted by Kevin Mullen: Director- Saftey, ADS Logistics
Posted on Thu, May 27, 2010 @ 09:38 AM
Two very interesting reports came out in the past few days...
Wednesday, The American Transportation Research Institute (ATRI) released an analysis of commercial vehicle crashes that found the majority (87%) occurred within the first eight (8) hours of driving. This is important in that it further discredits supposed highway safety groups such as CRASH, which have repeatedly sued the FMCSA over 2007 changes to the hours-of-service regulations permitting drivers one additional hour of driving time. Only 12% of crashes occurred in the 9th to 11th driving hours. Prior to 2007 drivers were permitted to drive only 10 hours.
Coupled with measurable and historic decreases in truck-involved fatalities during the same period, it would behoove CRASH to focus on other behaviors (such as distracted driving) by passenger car drivers who, incidentally, cause anywhere from 50-70% of truck-involved crashes, according to studies by the FMCSA and AAA.
Lawsuits by CRASH and associated groups have cost millions of dollars that could well be better spent on other initiatives more likely to reduce crashes.
Additionally, in a recent Commercial Carrier Journal webinar, FTR Associates President Eric Starks released their Driver Supply Update for May. FTR forecasts a 200,000 driver shortage by the end of 2011. FTR cites a lack of hiring and training personnel due to carrier cut backs during the recession. Anecdotally, we have sufficient hiring and training staff but are finding a shortage of qualified drivers.
The impact of CSA 2010 was not figured into FTR’s dire forecast, however it will only exacerbate the problem. Starks’ assessment that “we could be 400,000 drivers short of what we need” with CSA 2010 driver defections spells trouble for already tightening capacity should signal shippers that rate decreases squeezed from carriers during the recession will be erased and reversed in the not-too-distant future.
Posted by Kevin Mullen, Director- Safety: ADS Logistics
Posted on Wed, May 26, 2010 @ 10:22 AM
Consider for a moment you have $150,000 sitting around and want to invest it. You can put it into a CD and get a 5% guaranteed return or you can buy a tractor and trailer.
With the CD you get compounded daily interest of $25 with no risk and no effort.
With a tractor-trailer you get:
- A shipper requesting your truck at 8:00 AM for a 500 mile run for $750. If all goes well, after equipment payments, driver wages, insurance premiums, fuel, repairs and maintenance you should clear $75. The customer expects the load to be delivered today. (They request Just-in-Time service to keep their costs down.)
- A call from your driver at 8:30 AM that the load will not be ready for 2 hours.
- A call from your driver at 12:00 that he’s finally loaded and on the way.
- Keep in mind the DOT says your driver can not work more than 14 hours and he came on duty at 6:00 AM to pre-trip the vehicle and drive to the shipper.
- A call from your driver at 8:00 PM that his 14 hours are up and he’s still an hour from his destination. He must take a 10-hour break before he can continue. [His truck will now consume 10 gallons of additional fuel at $4.00/gallon to heat his sleeper while he gets his DOT-mandated rest without moving a mile.]
- Did I mention your customer expects the load today?
- A call from your driver at 6:00 AM that he’s on his way and will be at the customer at 7:00 AM.
- A call from your driver at 9:00 AM that he’s empty and available for another dispatch.
Your $150,000 truck has been tied up for 27 hours for $35 profit. The load should have been off the same day had it been ready. You didn’t quote the rate based on 27 hours. The driver now has only 11 hours left that he can work before his next mandated rest break. He will need to drive to his next shipper and wait to get loaded thereby further reducing the hours he’ll be able to drive.
During the 27 hours you’ve been exposed to potential Physical Damage (Comprehensive), Liability, Cargo and Workers Compensation claims any one of which (with current deductible levels) would wipe out the profit from a hundred loads.
What are you going to do with your money?
Rate increases and, perhaps more importantly, more trucker-friendly policies and procedures must occur in order to ensure an adequate supply (capacity) of safe, qualified trucks and drivers to keep freight moving and the fragile economic recovery on course.
Posted by Kevin Mullen- Director: Safety, ADS Logistics
Posted on Fri, May 21, 2010 @ 08:49 AM
The National Highway Traffic Safety Administration (NHTSA) recently released the results of a study which indicated nearly 80% of crashes are caused by driver inattention or distraction within three seconds of the crash- 80%!
We are a nation of doers. We get it done. We work longer hours than most other industrial nations and we pride ourselves on being able to multi-task. All admirable qualities… except when we’re behind the wheel.
The most common distraction cited was reaching for something. A recent AA Foundation for Traffic Safety study showed that 100% of participants were distracted at some point, 97% reaching for something. A study by the Virginia Tech Transportation Institute (VTTI) found that reaching for a moving object (dropped phone, spilled drink, etc.) was twice as dangerous as any other non-driving task. The other items (in order):
- reading and writing (behind the wheel?)
- grooming and applying makeup
- dialing a phone
- eating and drinking
- texting
- talking and listening on a phone
- adjusting the radio or changing a CD
- interacting with passengers
- daydreaming
The average driver is faced with approximately 200 driving decisions per mile. We can ill-afford to be distracted faced with such responsibility.
Imagine how hollow the following statements would sound… to a police officer investigating a crash… or on the stand in front of a jury.
"I was putting on my makeup when traffic stopped suddenly and I struck the victim."
"I was talking to my girlfriend and didn’t realize how fast I was going until I ran into the victim."
"I was in a hurry to get to [fill in the blank] when I lost control and crashed, killing my [child/spouse/friend]."
We are in too much of a hurry today. We are trying to do too much. We are trying to be all and have all.
We need to resolve to slow down. Leave home earlier so we don’t need to speed to get where we’re going. We need to hang up or turn off our phones while driving. We need to focus on driving safely. It will be too late after the crash and all the excuses will ring hollow.
Posted by Kevin Mullen- Director: Safety
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 Fri, May 07, 2010 @ 10:02 AM
Safety and compliance are becoming increasingly more important to carriers and drivers every day for a multitude of reasons.
For instance, carriers have long-known that good safety and compliance numbers (insurance losses and SafeStat for example) translate into better insurance rates, a better competitive position and increased profits.
Drivers know that a bad safety record can cost them their job and make finding another more difficult.
With the onset of CSA 2010 the stakes are even greater.
Carriers can now find themselves the subject of targeted enforcement both on the road (increased inspections) and on-site (Compliance Review) if their scores in any of the seven (7) CSA 2010 BASICS exceed FMCSA-designated thresholds.
Drivers will now have three (3) years of their compliance history with the DOT available to current and prospective carriers. Non-compliant drivers will find their continued employment with their current carrier in jeopardy and prospective carriers reluctant to bring them and their points on board. Future incarnations of CSA 2010 are reported to include direct intervention with drivers whose safety performance scores exceed as yet undetermined thresholds.
The true reward for safe and compliant operations however is even more important and much more personal. Carriers need to ensure their #1 customer, their internal customer, the driver, completes his/her duties every day without being injured or worse, killed. We all owe this basic right to our employees.
Likewise, everyone with whom we share the roads, even those drivers who unknowingly and even intentionally put themselves in harm's way by cutting in front of a truck or riding in a “No Zone”- everyone, has a basic right to return to their families without being injured or killed.
Safety and compliance, in the final analysis, are personal. We can’t put profits (or pay checks) above human suffering and lives.
Safety… is no accident.
Posted by Kevin Mullen- Director: Safety, ADS Logistics Co, LLC
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