Timely transportation news and information from acuity FALL 2012 Top 10 Trucker Concerns page 6 www.acuity.com
FMCSA Sharpens Focus on Safety With CSA Changes Recently, the Federal Motor Carrier Safety Administration (FMCSA) announced changes to the Compliance, Safety, Accountability (CSA) enforcement program. Changing the Fatigued Driving (Hours-of-Service (HOS)) BASIC to the HOS Compliance BASIC. This change will more accurately reflect fatigued driving or driving in excess of allowable hours. According to the FMCSA, the changes were designed to make existing safety programs more effective. They will also allow easier and faster identification of unsafe, highrisk trucking companies by providing the FMCSA with more precise information when assessing a company s overthe-road safety performance. Aligning paper and electronic logbook violations. FMCSA will equally weight paper and electronic logbook violations in the Safety Measurement System (SMS) for consistency purposes. Good data plays a key role in keeping our nation s roads safe, explained Transportation Secretary Ray LaHood. Including intermodal equipment violations. SMS will be updated to include violations that should be found and addressed during drivers pre-trip inspection on intermodal equipment. CSA updates affect a wide array of activities, from hazardous materials carrier compliance requirements and hours of service logging to vehicle maintenance and pre-trip inspections. Key changes include: Changing the Cargo-Related BASIC (Behavior Analysis and Safety Improvement Category) to the Hazardous Materials (HM) Compliance BASIC to better identify HM safety and compliance problems. Changing the Vehicle Maintenance BASIC to include cargo/load securement violations, which had previously been a Cargo-Related BASIC. Ensuring all recorded violations accurately reflect the inspection type. All violations from roadside inspections will continue to be on a carrier s inspection report; however, only violations that fall within the scope of the specific inspections performed will be used in the SMS (i.e., only driver violations will be recorded under driver inspections). These changes are scheduled to take effect in December 2012.
Advances in Efficiency, Safety Technology Set to Impact Trailer Design The classic trailer design of a long box on wheels hasn t changed in years. However, research from global consulting firm Frost & Sullivan indicates that trailers are on the verge of getting a significant design upgrade as the industry addresses fuel efficiency and safety issues. Trailer add-ons such as side and rear fairings and trailer tails are already on the road today, helping reduce aerodynamic drag and improve fuel economy by up to five percent. These devices will gradually become more common on new trailers, and other aerodynamic features will be built into standard trailer designs. Frost & Sullivan predicts that OEMinstalled systems will comprise 20 percent of the trailer market within five years. There are many factors driving this change. First, the increase in diesel prices has truckers looking to reduce fuel consumption and cost. The savings generated can produce a quick return on investment for add-on equipment. Government regulation is also prompting new design thinking. Compliance, Safety, Accountability (CSA) rules have carriers looking closely at all areas of safety, productivity, and fuel efficiency. Finally, state-level regulation is also a factor. For instance, the California Air Resources Board (CARB) fuel efficiency mandate is requiring that tractor-trailers operating within California have approved trailer aerodynamic technology installed. Although ACUITY doesn t insure truckers in California, the state s actions often have an impact on regulations in other states across the nation. Long an afterthought in the quest to improve efficiency, trailers may move to the forefront as truckers look for every edge in an increasingly competitive and regulated marketplace. Fall 2012 Page 3
Express 2000 Finds Ways Say Yes to to Customers The customer service philosophy of Express 2000, Inc. can be summed up in just three words. Never say no, explains Mark Basler, President. Dig into every situation and find a way to solve the customer s problem. Basler and business partner Chuck Quigle, Vice President, formed Express 2000 in 1997 after working at Next Day Motor Freight for 15 years. They started the company with one cargo van running hot shot loads between St. Louis and Marysville, Ohio. A few weeks later, the partners obtained a line of credit and bought their first International straight truck. In its early days, Express 2000 focused on LTL runs within a 100-mile radius of St. Louis. From those humble beginnings, the company grew steadily. With its headquarters in the St. Louis suburb of Bridgeton, Missouri, Express 2000 built a strong base of retail clothing clients in the state, and then picked up a major air freight account out of Cincinnati. We just kept adding equipment as needed and took enough business away from other companies to grow, Basler recalls, adding that the experience at Next Day helped the partners get the new business off the ground quickly. We had worked to build up that company and learned a lot over our years there, Basler says. We put in a lot of windshield time after we started Express 2000, traveling the territory and talking to contacts to land new accounts. Within a few years, Express 2000 had opened additional terminals in Kansas City and Springfield and created a partnership to establish a base of operations in Chicago as well. Today, the company has three terminal locations in Missouri and three in Illinois. Express 2000 employs over 50 and runs 40 pieces of power equipment and 55 trailers for its LTL operations. It also provides logistics solutions that range from full truckload shipments to warehousing and distribution through its Mid-X Corp brokerage subsidiary. Customer Focused Over the years, Express 2000 has been careful to put the resources in place to serve a growing customer base. We understand the importance of fulfilling promises, Basler says. You need to be careful not to overstretch yourself and you need to always be in a position to personally serve customers. That philosophy extends not just to deliveries, but to any customer-facing task. It goes from being on the road to answering the telephone, Basler says. Our battle cry is the phone never rings a third time. Express 2000 also takes care to hire and retain employees who share its customer commitment. We have people who are experienced, trained, and truly care about what they do, Basler says, adding that the company s service staff average 10 years of experience with the company. They know our customers by name, and our customers ask for them by name when they call. Diversification of services is also important to Express 2000 s customer focus. Having the combination of LTL using our own assets and truckload brokerage through Mid-X complement each other well, says Basler. Our selling point is we have equipment to cover any need you might have.
Mark Basler Challenges and Changes One of the biggest challenges Express 2000 faces in today s market is the emergence of third-party logistics firms. It s a lot harder to carve out niches of business today with customers because they are using logistics firms more and more, and those firms like to deal with national transportation companies, Basler says. It makes it difficult for us to bid because we don t cover the whole U.S. like FedEx or Yellow do. The economy has also impacted the retail sector that had comprised much of Express 2000 s business in the early years. There has been a real change in commodities. People aren t buying the way they used to, and national chains have really eaten into the mom-and-pop retailers, Basler says. Commodities themselves have changed, he adds. Early on, we had a huge business hauling envelopes. That business is essentially gone today. To compensate, the company has focused on commodities that are trending upward in today s economy. We re trying to focus on goods such as HVAC equipment and medical supplies, Basler says. Our fastest growing and biggest commodity is alcohol. We started with that 10 years ago at a very small scale, but that business has grown tremendously. Like every carrier, Express 2000 is also struggling with high fuel costs. I don t think that is ever going to go away. We re stuck with $4 diesel fuel, says Basler. Express 2000 is adding trucks with better fuel economy to its fleet, recently acquiring several Volvo power units with automatic transmissions. Before, a driver who knew the optimal RPMs on a 12-speed manual might eke out a half mile per gallon better than other drivers. With automatics, any driver can now get two miles per gallon better than a manual transmission. Unfortunately, the price of new trucks has skyrocketed over the past six years because of all the new emission regulations, Basler says. Future Focus The future of Express 2000 remains rooted in commodities hauling, with a heavy focus on LTL business. However, the carrier would like to add more dedicated truckload business, and recently picked up a significant dedicated account in the flooring industry. We have a lot of irons in the fire, Basler says. Regardless of their tactical direction, they will stay focused on the strategy of finding ways to solve customers problems. We have one goal with every customer call, Basler says. Find a way to say Yes. Fall 2012 Page 5
The American Transportation Research Institute (ATRI), the trucking industry s not-for-profit research organization, has released its 2012 list of the top 10 critical issues facing the North American trucking industry. 1. C SA (Compliance, Safety, Accountability). Despite the fact that CSA was first implemented nationally by the Federal Motor Carrier Safety Administration (FMCSA) in late 2010, uncertainty and dissatisfaction with the impacts of CSA remain a significant challenge for many in the trucking industry. 2. H ours of Service (HOS). The trucking industry has made significant operational modifications to comply with the multiple changes to the HOS rules, yet anticipates additional costly impacts from the latest changes. 3. Economy. Although the economy has dropped from the top spot on the list, the unsteady nature of the economic recovery clearly continues to weigh heavily on the minds of many in the industry, with growth expected to remain relatively slow at 1.5 percent for the remainder of 2012. 4. Driver Shortage. Some industry analysts estimate there will be a shortage of 100,000 to 200,000 drivers over the next two years. 5. Fuel Prices. Fuel and oil is the second highest motor carrier cost center after driver wages and benefits. 6. Electronic Onboard Recorders (EOBRs). The FMCSA s work concerning EOBRs was preempted by the inclusion of an EOBR mandate for HOS tracking in the MAP-21 transportation bill passed by Congress in 2012, adding to overall concern about EOBR compliance. 7. Driver Retention. During the 2nd quarter of 2012, annualized driver turnover was 106 percent among large truckload fleets, the highest value since the end of 2007. 8. Truck Parking. With the new requirement for 30-minute breaks before continuing to drive beyond eight hours, there will be additional need for safe, available parking for drivers. 9. D river Health and Wellness. With driver turnover increasing and carriers having difficulty finding qualified new drivers, a focus on improving driver health and overall wellness could help preserve the industry s most valuable asset. 10. Congestion/Bottlenecks. Roadway usage will increase as the economy improves and, given that driver wages and fuel/oil costs represent 61.5 percent of motor carrier operational costs, congestion can have serious negative consequences on carrier financial health. Falling out of the top 10 from 2011 were transportation funding, tort reform, and truck size/weight. For a copy of the survey, visit http://atri-online.org/2012/10/08/critical-issues -in-the-trucking-industry-2012-report-request/.
Reduce CSA Violations With Consistent Trip Inspection Practices Did you know that 70 percent of Compliance, Safety, Accountability (CSA) violations can be prevented with a vehicle inspection? Seven in ten CSA violations are truck equipment-related. Pre-trip and post-trip inspections are the two most important things that drivers can do to reduce violations. 2. Roles and Responsibilities. Identify the roles of drivers, mechanics, and other employees in the inspection process. 3. Hiring and Qualifications. Ensure that hired mechanics and repair shops are qualified to fix problems identified in trip inspections. Everybody understands the importance of vehicle inspections, says Chad Krueger, ACUITY Senior Loss Control Representative. However, in the hustle and bustle of daily activity, it can get overlooked. 4. Training and Communications. Provide training to drivers on trip inspection procedures. Be sure everyone is aware of their responsibilities. To ensure that drivers are consistently performing pre- and post-trip inspections, carriers should follow the six steps recommended by the FMCSA in its Safety Management Cycle: 5. Monitoring and Tracking. Monitor and track inspection results in order to ensure that vehicle defects are repaired promptly. 1. Policies and Procedures. Create clear policies and procedures for vehicle inspections that specify training, recordkeeping, and consequences for violating those policies. Sudoku 6. Meaningful Action. Take action based on what is learned from monitoring and tracking by providing more training or other corrective measures. Regular pre- and post-trip inspections benefit roadside inspection results and, more important, allow carriers to discover and fix problems that can cause major safety or performance issues on the road. The Rules of Sudoku The rules of the game are simple: each of the nine blocks has to contain all the numbers 1-9 within its squares. Each number can only appear once in a row, column, or box. The difficulty lies in that each vertical nine-square column, or horizontal nine-square line across, within the larger square, must also contain the numbers 1-9, without repetition or omission. Every puzzle has just one correct solution. Fall 2012 Page 7
ACUITY 2800 South Taylor Drive Sheboygan WI 53081 T: 800.242.7666 F: 920.458.1618 www.acuity.com InGear for Truckers - Acuity facebook.com/acuityingear