Kris Rutherford

About Kris Rutherford: Since retiring from a career as an outdoor recreation professional from the State of Arkansas, Kris Rutherford has worked as a freelance writer and, with his wife, owns and publishes a small Northeast Texas newspaper, The Roxton Progress. Kris has worked as a ghostwriter and editor and has authored seven books of his own. He became interested in the trucking industry as a child in the 1970s when his family traveled the interstates twice a year between their home in Maine and their native Texas. He has been a classic country music enthusiast since the age of nine when he developed a special interest in trucking songs.

Posts by Kris Rutherford

Not to be wordy…

By Kris Rutherford - December 19, 2019

With the arrival of 2020, new people are also arriving at The Trucker, and new ideas are being tossed around. One feature returning by popular demand in the January 1 issue will be the once popular item from days gone by – The Trucker Crossword. We cast aside the original crossword several years ago, and according to retiring editor Lyndon Finney, the decision caused about the loudest uproar among readers of anything in his 15 years with The Trucker. Thanks to technology, it’s no longer necessary to subscribe to a syndicated puzzle provided. Today, sitting right here in The Trucker offices and using virtually free software, I or someone else on staff can build crossword puzzles in a matter of minutes. Not only can we build the puzzles online and use the files to print them in The Trucker, we have total control over the content of each puzzle. While some “filler” clues and words may be used now and then, the intent of the new crossword puzzle is to focus on trucking industry words and news. Answers to clues may be names of people, companies or others in the news, or trucker “lingo,” equipment, regulations and whatever else comes to mind while building the puzzles. And many of the clues will be found in the text of the very articles and advertisements of the issue you pick up at your favorite truck stop. Yep, it’s true – to figure out some of the answers, you may have to read the newspaper! Now I don’t have the intention of making the solution to the puzzle so hard that only I can solve it, but it will likely have at least a few clues that may stump some folks for a while. In full disclosure, when I practiced with a puzzle that I built one day, a day later I couldn’t remember one of the answers! We’ll also have themed puzzles from time to time, and if you have any ideas or want to send a list of clues and answers you come up with yourself, you can pass them along to me via email. We may use them in a future puzzle with your name at the top! We love reader participation at The Trucker, and this is a fun, easy way to get involved! So come January 1, find the new issue of The Trucker fast before they scooped up from racks across the country. You’ll not only read interesting and important news about your industry, you’ll also have some fun filling out the crossword after you read the articles. Find out how much you retained! Oh, and if you’re wondering, you won’t have to wait two weeks for your score. The answer key will be published somewhere in the same issue. If you have any comments or thoughts, feel free to pass them along. We want to make this crossword puzzle something you’ll look forward to seeing every issue!

Celadon declares bankruptcy, shuts down operations, and leaves 4,000 employees without jobs

By Kris Rutherford - December 9, 2019

Updated Dec. 9, 2019; 12:15 pm CT INDIANAPOLIS – Celadon Group, Inc., among the nation’s top carriers and based in Indianapolis, declared bankruptcy December 9, leaving thousands without jobs and stranded across the U.S. as fuel cards were apparently cut off without notice. The shutdown ended a tumultuous week for the carrier that saw two previous executives charged with federal fraud, leading to over $60 million in losses to company shareholders. The bankruptcy filing is expected to be the largest in the trucking industry’s history. Announcement came without warning; trucking industry responds The announcement of the immediate closure of Celadon was largely unexpected by the company’s employees, many of whom found themselves stranded over the weekend as drivers reported fuel cards being cut off, repossession of equipment at the Celadon Indianapolis terminal, and mobile fleet maintenance contractors refusing to respond to requests for assistance from Celadon drivers. Drivers also reported phone calls to the corporate office going unanswered. The shock of the immediate shutdown wasn’t only a surprise to Celadon employees but to the entire trucking industry. As an industry made up of like-minded professionals, the trucking industry “family” responded in kind. Various drivers, industry advocates, and carriers posted messages on social media sites offering help to stranded drivers. As news of the inevitable spread over the weekend, drivers and carriers shifted focus to helping fellow industry employees. Many drivers offered rides to Celadon drivers in order to get them closer to home, and others offered meals, showers, and overnight lodging at no cost. Even competing carriers and logistics companies stepped up in support of the drivers. MVG Logistics posted, “Celadon has shut down and filed bankruptcy, leaving some of its drivers stranded after shutting down fuel cards with no warning …. We just fueled up two Celadon drivers so they can make it home. No, they [Celadon] don’t dispatch or use mvglogistics.com services but we believe in no driver left behind …. A driver is a driver; we don’t care whose team they’re on!” Several carriers responded to the shutdown with offers of jobs beginning immediately. Hirschbach posted, “If you are a driver looking for a new company to call home, we have recruiters working this weekend to answer questions. If you are not interested in a job with Hirschbach but are in need of a way home, we are offering free bus tickets to Celadon drivers who are stranded.” Other carriers including Southland Transportation Company, ShipEX, and CRST Expedited offered similar assistance. One Celadon driver stated that recruiters from other carriers were at the company’s Indianapolis terminal making job offers despite the chaos surrounding them. The company Celadon Group, Inc., formed in 1985, had grown into one of the largest carriers in the United States, its central location of Indianapolis providing a hub for north- and south-bound routes to and from Mexico and Canada. Based on 2017 data, Celadon operated 3,200 company-owned trucks, along with 400 lease-to-own rigs and 250 owner-operators. The company owned 10,000 trailers. In 2015, the Journal of Commerce ranked Celadon as the second fastest-growing carrier in the U.S. Three years later, Logistics Management ranked the carrier as the 16th largest in terms of revenue, but the data did show cracks forming. Among the top 25 revenue-generating carriers, Celadon was one of two that saw revenues decrease (-11%) from 2017. In 2019, Transport Topics listed Celadon as No. 38 in its top 100 for-hire carriers. Timeline of events The announcement of the Celadon Chapter 11 bankruptcy filing and cease of operations came just days after two former executives were charged with defrauding stockholders by providing intentionally misleading information related to the financial status of the company. Josh Minkler, U.S. Attorney for the Southern District of Indiana announced on December 5 that William Eric Meek, former chief operating officer of Celadon, and Bobby Lee Peaver, former chief financial officer, conspired to make Celadon more attractive to investors by providing false statements to company accountants and falsifying records. The charges also include conspiracy to commit wire and securities fraud. Minkler stated that both individuals will face “decades” in prison following an investigation by the FBI, U.S. Department of Justice, Postal Inspection Service, and the Securities and Exchange Commission. The following is a timeline of events as known this morning: 2016: Meek, Peavler, and other Celadon executives knew a substantial portion of its fleet had declined in value due to an industry slowdown, increased maintenance costs, and age. Meek and Peavler devised a scheme to conceal the millions of dollars in losses from shareholders and banks. May 2017: Celadon announced financial statements for fiscal year 2016 and the first two quarters of 2017 were unreliable, as were independent auditor reports. The announcement sent Celadon stock value into a tailspin, creating a one-day loss to investors of $62.3 million. Celadon was delisted by the New York Stock Exchange. Meek and Peavler immediately left the company. Early 2019: Celadon agreed to pay $42.2 million in restitution to settle securities fraud charges. December 5, 2019: Meek and Peavler were arrested on federal fraud charges based on their effort to defraud Celadon stockholders. Prosecutors said their scheme involved the following: Inflating invoices old older used trucks that they traded for new trucks; Selling trucks to a dealer near the end of a fiscal quarter without disclosing that a company division, Quality Companies, agreed to pay the dealer back after the quarter ended; Making false and misleading statements to auditors about the transactions; Peavler directing a senior executive to delete certain emails after auditors requested relevant documents. Following the announcement of charges, lenders began repossessing Celadon equipment. December 6, 2019: Internal Celadon sources began leaking information on the intent to file for bankruptcy as well as notifying its largest customers to find other carriers. It provided no such information to employees, many learning from customers and drivers who had been in contact with customers late in the evening. Shippers began cancelling loads late that evening as well. December 7, 2019: Comdata, provider of fuel cards for Celadon, shut off cards as drivers reported trucks being repossessed and towed from truck stops. December 8, 2019: Drivers were provided conflicting data from the carrier’s headquarters, some being told to complete their deliveries and others told to stop and leave their trucks. Reports indicate that employees were instructed to meet at the company’s Indianapolis headquarters this morning December 9, 2019: Apparently just after midnight, Celadon sent the following message to employees over its electronic messaging system: **FLEETWIDE MESSAGE: WE REGRET TO INFORM EVERYONE THAT CELADON GROUPT, INC. HAS FILED FOR CHAPTER 11 BANKRUPTCY. WE WILL CONTINUE TO HAUL AND DELIVER ALL LOADS THAT WE NOW HAVE IN TRANSIT. WE WILL HAVE MORE INFORMATION IN THE MORNING AS TO WHERE EQUIPMENT NEEDS TO BE DELIVERED TO. WE HAVE BEEN ASSURED THAT EVERYONE WHO FOLLOWS INSTRUCTIONS WILL BE PAID FOR THE WORK AND THE MILES ASSIGNED AND COMPLETED, AND CELADON WILL NOT LEAVE ANYONE STRANDED AWAY FROM HOME. FINALLY, WE TRULY APPRECIATE YOUR COMMITMENT AND DEDICATION TO THIS COMPANY, AND WISH YOU ALL LUCK MOVING FORWARD. CELADON MANAGEMENT In his Monday morning announcement of the Chapter 11 filing, Paul Svindland, Celadon’s CEO, stated, “We have diligently explored all possible options to restructure Celadon and keep business operations ongoing; however, a number of legacy and market headwinds made this impossible to achieve.” Reports late this morning indicated Celadon will pay $5.44 million in unpaid wages and termination bonuses. The bonuses amount to approximately $267 per employee. The company’s stock, which sold for over $20 in 2015, was being sold for $.041 per share on Friday, December 6. This morning, December 9, a share could be purchased for $0.03. The timing of the announcement could not have been worse for most Celadon employees. If there is a silver lining around this cloud, it’s the reinforcement of the fact that the trucking industry, despite competition, comes together as a family and helps its own when turmoil strikes. EARLIER STORY INDIANAPOLIS – Celadon Group, Inc. today announced that it, along with its 25 affiliate entities, have filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. Celadon also announced that it will shut down all of its business operations effective as of today, Monday, December 9, 2019. This shut down does not include the Taylor Express business headquartered in Hope Mills, North Carolina, which will continue to operate in the ordinary course while the Company’s explores a going concern sale of its operations. Celadon intends to use its Chapter 11 proceedings to wind down its global operations. Paul Svindland, Chief Executive Officer of Celadon, said, “We have diligently explored all possible options to restructure Celadon and keep business operations ongoing, however, a number of legacy and market headwinds made this impossible to achieve.” Svindland noted that, “Celadon has faced significant costs associated with a multi-year investigation into the actions of former management, including the restatement of financial statements. 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. Therefore, in conjunction with our lenders, we concluded that Celadon had no choice but to cease all operations and proceed with the orderly and safe wind down of our operations through the Chapter 11 process.” To support the wind down of operations, Celadon’s lenders have agreed to provide incremental debtor-in-possession financing. Svindland further stated, “I would like to thank our vendors, customers, and lenders, and most importantly, I would like to thank our dedicated administrative employees and drivers whose efforts should not be seen as a reflection of this Chapter 11 filing. They have sacrificed so much of their time and effort for Celadon, and for that, the Company is eternally grateful.”

I-40 Challenge to put holiday drivers, law enforcement to the test

By Kris Rutherford - July 8, 2020

Interstate 40 is among the primary east-west trucking routes across the U.S. Beginning in North Carolina and passing through Tennessee, Arkansas, Oklahoma, Texas, New Mexico and Arizona on its way to California, the interstate covers over 2,500 miles of the southern swath of states and travels through some of the largest and most traffic congested cities in each. But congestion isn’t limited to urban areas. Before Interstate 40, the legendary Route 66 followed the same path through Oklahoma westward and was considered the road to prosperity for many Oklahoma and Arkansas farmers during the 1930s Dust Bowl. Today, even the most rural miles of Interstate 40 are congested, largely with commercial truck traffic. With congestion comes danger, and the route is plagued with fatal accidents on an all-to-routine basis. This week, often described as the busiest travel week of the year, law enforcement agencies from all eight states are committing to enforcing traffic laws, increasing safety, and generally making a stressful week of travel more pleasurable for everyone on the highway as part of the “Interstate 40 Challenge”initiative. The challenge is an effort to encourage state highway police or state troopers to be positioned at 20-mile intervals along I-40 with the intent of increasing safety and decreasing accidents, especially those ending in fatalities. Over 125 law enforcement officers will be patrolling and/or keeping close tabs on passing vehicles through the I-40 states. The times for the challenge are for 12-hour periods on Wednesday and Sunday of this week. Likewise, the states are encouraged to publicize heightened enforcement in order to increase safety. In previous years, the challenge has been met with success. California Highway Patrol (CHP) Commissioner Joe Farrow said, “California did not experience a single fatality on I-40 during past challenges. With the public’s cooperation, the CHP will continue to promote a safe traveling season during the Thanksgiving holiday.” Other states have not been so lucky. On the opposite side of the country, North Carolina reported 22 fatalities during last year’s Thanksgiving holiday period. The American Automobile Association (AAA) recommends travelers try to avoid peak traffic periods if possible. Thanksgiving Day is actually the best day to be on the roads, with the fewest fellow travelers, AAA representatives noted. Also according to AAA, Thanksgiving eve has become a big night for binge drinking, as family and friends return home to reconnect for the holiday. “Blackout Wednesday, also known as Drinksgiving, can end with deadly consequences, so if you plan on drinking, have a plan,” said Tiffany Wright, AAA Carolinas Traffic Safety Foundation President. “If you don’t have a designated driver, call a friend or family member, taxi or car share service such as Uber or Lyft, to get you home safely.” Of course, the Thanksgiving holiday can be a lonely time for OTR truck drivers. Loneliness can lead to depression which can rapidly lead to sleepiness behind the wheel. Be sure to help everyone have a safe holiday by not only adhering to federal standards for drive time but also being aware of your personal level of alertness. If necessary, take extra breaks. And remember, many towns have a community-wide Thanksgiving dinner planned for Thursday. Stop in at one, meet some people, and make new friends. You can be guaranteed you’ll leave a happier, alert driver set to overcome any challenges on I-40 or whatever route you travel. Happy Thanksgiving!

“Coincidence” may create substantial traffic snarl just days after Pennsylvania roadway deemed safe

By Kris Rutherford - November 27, 2019

“I would call this an unlucky coincidence,” said Pennsylvania Department of Transportation (PDOT) spokesman Dave Thompson as reported in a November 24 article in Lancaster Online. Thompson was referring to last week’s collision of a truck hauling a load described as a “long shed” westbound on U.S. Route 30 under the Hill Street bridge in the Mountville Township, located about 15 miles west of Lancaster, Penn. While the clearance of the bridge is officially 14-feet 4-inches above Route 30 and the notification sign indicates 14-feet 0-inches, vehicles exceeding 13-feet 6-inches are not allowed through the underpass. Whether the height of the load being hauled originally exceeded the threshold is unclear; however, based on the citation for failure to properly secure a load, it may be a case in which the shed shifted during transport and resulted in the collision. The coincidence Thompson notes is a product of a June 3, 2019, collision of another load hauled by truck with the same bridge. The driver of this truck, carrying a lift that apparently raised enough during transport to strike the bridge, was also cited for failure to secure a load. Initially, PDOT inspectors noted the damage from the June incident was cosmetic. But by the time repairs finished and traffic permanently reopened under the bridge, the total repair bill came to $500,000. The repair was officially completed November 14, just six days before the second incident. Central-Penn Transportation (CPT) noted that truckers are aware that posted bridge clearances do not always reflect actual conditions. Matt Rhodes, president of CPT told Lancaster Online, “A bridge can be marked something when it’s built, and then they’ll pave the road.” The Hill Street bridge was constructed in 1965, and PDOT’s Dave Thompson confirms the posted clearance of 14-feet 0-inches is accurate. Thompson noted that while GPS is a great tool, all roads are not necessarily “GPS-friendly.” He added that in Pennsylvania, oversized loads normally are steered clear of questionable routes during the permitting process. Likewise, carriers of any load exceeding 14-feet 6-inches in height are required to look to a traffic consultant to verify a route is acceptable for both the truck and its cargo. The sad part of both incidents is that Route 30 may have been acceptable when both loads departed their origination points, but the drivers failed to ensure their cargo was adequately secured. The result will be another round of repairs for the bridge. PDOT inspectors have yet to reveal the estimated extent, cost or timeline of repairs. The first round created enough congestion to substantially impact traffic patterns in the area. If the extent of damage from the second incident equals or exceeds that in June, travelers could be in for another extended round of traffic headaches. According to PDOT traffic volume statistics, over 58,000 vehicles travel through Mountville along U.S Route 30 daily, making it the second most heavily-traveled route to and from Lancaster for points west of the city. With over 2,000 vehicles crossing the state-maintained Hill Street bridge, the overpass is one of two in the township crossing above U.S. 30, a route essentially bisecting Mountville east to west. For information on traffic volume statistics along all Pennsylvania roadways, see https://www.penndot.gov/ProjectAndPrograms/Planning/Maps/Pages/Traffic-Volume.aspx

Report considers impact of vehicle miles traveled tax on highway revenues

By Kris Rutherford - October 29, 2019

A Congressional Budget Office (CBO) report released in October is an initial step in considering revenue options to stabilize the Highway Trust Fund (HTF), the nation’s primary source of funding for roadway maintenance and construction. Based on current projections, without changes in laws to provide additional revenue for the HTF, the fund will be drained by 2022. Likewise, the annual HTF deficit of $13 billion in 2017 will continue to increase as it has almost every year since 2001. The focus of the CBO report is a federal tax on commercial shipping via roadways based on vehicle miles traveled (VMT). The report looks at how a VMT program would alter CBO projections during the upcoming decade using 2017 baseline data. In 2017, expenditures exceeded revenues by 31.7%. Analyzing these figures and data including the types of trucks using the highways and projected inflation rates, the CBO estimates the HTF will be insolvent within three years. The report considers how a VMT tax on commercial vehicles might improve this outlook. The VMT tax is not a new concept. Four states—Kentucky, New Mexico, New York, and Oregon—all use a VMT tax as a revenue stream. However, the tax rates, structure of the various programs and compliance rates among truck owners vary. For instance, Kentucky levies the tax on vehicles rated greater than 60,000 pounds. New Mexico, New York, and Oregon base tax rates on registered weights. The Kentucky tax is a flat 3 cents per mile for all trucks above the weight threshold, while the remaining states’ tax rates vary from 1-29 cents per mile depending on weight. Tax evasion rates vary between states, ranging from 3-7% in Kentucky to 30-50% in New York. Finally, incentives for payment of VMT taxes are provided. Oregon, for instance, has the nation’s highest VMT tax rates but use the revenue source as an alternative to fuel taxes for some trucks. The CBO report focuses on three aspects of a VMT tax—the tax base; tax rate structure; and implementation methods. Tax Base The CBO report specifies truck type and weight ratings as considerations in which vehicles would be subject to the VMT tax. Taxing all commercial vehicles with six or more wheels and/or weights over 10,000 pounds are one option, while taxing only combination trucks, defined in the report as trucks hauling one or more trailers, is also considered. The truck types were separated based on 2017 statistics indicating that combination trucks represent 28% of those on the highway but account for 60% of total miles driven. Tax Rate Structure The CBO report considered each approach the four states levying VMT taxes use in terms of tax rates. A flat rate per mile for all commercial trucks and a weight-based variable rate are options. Location and time of mileage accrual were also studied as both factors impact costs of VMT monitoring. For example, if a VMT tax is charged only on interstate miles or is increased during hours of traffic congestion, some drivers will use alternate routes, decreasing projected revenues. Implementation Method of implementation impacts costs of a VMT tax system. CBO studied three implementation strategies including self-reported odometer readings, Radio Frequency Identification (RFID) readers, and on-board electronic monitoring devices (EMD). Self-reported odometer reading is the simplest monitoring method to implement and requires no special equipment. But odometer readings are only useful if the VMT tax is uniform. Reporting mileage driven on types of roads and locations would be difficult. RFID systems are not novel; many states use them in assessing tolls. A vehicle’s tag number is recorded where it enters and exits the toll road, and the registered owner receives an invoice. Costs of equipment, however, would be substantial, estimated in the “tens of billions” of dollars. CBO also considered electronic monitoring devices (EMD) as an implementation tool, estimating that 25% of trucks will soon carry EMDs to regulate driver hours behind the wheel. EMD monitoring costs will vary by the number of trucks subject to the VMT tax, and trucking firms will likely balk at the mandated expense. Driver concerns may also arise with an EMD system as many will consider government monitoring an infringement on privacy. Report Conclusions The CBO report suggested a VMT tax could be effective depending on the tax rate per mile. Assuming 90% compliance, a uniform rate of 9.5 cents would match 2017 HTF revenue collected and cover the $13 billion shortfall. In terms of consumers, the report states that a VMT tax would be regressive. Most people purchasing goods delivered by trucks are in lower income brackets, and economic reality suggests the cost of increased taxes will be absorbed by consumers. Those who pay a greater percentage of household income to cover the tax will suffer financially. Ultimately, the report’s most important finding may be included in its introduction: “The costs to the government of implementing a VMT tax on trucks are uncertain but would be higher than the costs of the existing tax on diesel fuel.” In other words, adjusting existing revenue-generating laws would be more cost-effective than implementing a VMT tax system. Overall, the CBO report does not provide detailed analysis of any aspect of a VMT tax. Any federal government report consisting of 43 pages can offer little more than an overview of the subject at hand. The report does, however, provide insight into the measures the government might consider keep the HTF sustainable. A VMT tax is just one of several options at lawmakers’ disposal.