Business Archives

TCA’s Profitability Program helps carriers survive, even thrive, regardless of market conditions

Kris Rutherford - April 30, 2024

There’s no doubt about it: The cost of trucking is on the rise. While increasing prices are pretty much par for the course, recent cost increases have exceeded those recorded in previous years. The American Transportation Research Institute (ATRI) reports that the average cost of operating a truck in 2022 was $2.251 per mile. That was the first time this average crossed the $2 mark since the organization began tracking data in 2008. Year over year, operating costs in 2022 increased 21.3% over 2021. Why? The reasons are many: Freight rates have fallen. Fuel costs have spiked. The cost of maintenance and repair on trucks has risen. In addition, driver wages are on the increase — which is not a bad thing in itself. Like ATRI, the Truckload Carriers Association (TCA) also tracks costs; however, TCA does so on a more frequent basis through its Profitability Program (TPP). The program is designed to share vital information with member carriers on a timely basis so companies can compare in-house results with how the rest of the industry is performing. These comparisons allow carriers to set benchmarks — standards against which companies’ performance is measured. Carriers tend to keep an eye on the successes of the top performers and learn what changes can be made in operations to move themselves into the “Best in Class” competition. As noted by Dave Broering, president of NFI Integrated Logistics, “In a softening market, with costs rising at an unparalleled pace, carrier benchmarking becomes more critical than ever.” In a February TCA webinar, “The Benefits of TCA’s Profitability Program and Benchmarking,” Jack Porter, TCA’s Profitability Program managing director, provided some insight into the association’s program, current trends, and suggestions for cost containment. The foundation of the TPP is for carriers to seek continuous improvement, set benchmarks for comparison, challenge business comfort zones, and navigate trucking cycles and challenges. Carriers that participate in the program share a primary component that is vital to improving a company’s profitability — a set of stated core values. Those core values go beyond simply making a profit; they set strategies and develop action items that stimulate progress. In addition, company management is dedicated to consistency. Everyone in these companies is aware of the core values, and management decisions can be clearly tied back to one or more values. Among the top data sources the TPP looks to is the Cass Freight Index. This index, updated monthly, shows deviation within the trucking business and is a gauge of supply and demand. Looking at the index over the past few years, trends indicate the trucking industry is returning to a historical level in terms of supply and demand. The COVID-19 pandemic created wide swings in the Cass Index, but since mid-2022, indicators have begun to drop. According to TCA’s Porter, the Cass index is all about capacity, and capacity reflects demand. In terms of the number of carriers in operation, the figure has been consistent. But COVID changed that. Many small (1-5 truck) carriers entered the market to handle spot demand, and carrier population skyrocketed. Of late, many of those small carriers have left the market, and the number is slowly coming down. During TCA’s webinar, Porter pointed out several market trends that are currently impacting the trucking industry: Rates are flat. Fleet capacity/brokerage is waning. Truck orders are stable. Equipment-associated costs are rising. Productivity is lagging, as figures such as miles per truck and gross margin per employee fall. Fortunately, signs indicate the industry is leaving a period of oversupply of truck capacity and entering one of balanced recovery. For carriers to remain competitive in a period of balanced recovery, Porter says they must adhere to several priorities: Maintain high-quality customer service. Know their networks — understand where their customers, drivers, and equipment are in the marketplace. Keep trailers full. Watch capacity fallout as small carriers leave the market. Monitor equipment costs. Likewise, in terms of business operations, carriers must be prepared to revamp customer service and sales departments, prepare their businesses for an upcoming recovery, enhance the workforce, align their networks, and reduce expenses. To help TCA member carriers not only survive, but also thrive, the TPP tracks over 400 industry benchmarks, allowing companies to compare performance against the standard in hundreds of ways. Currently, trends in some of the primary benchmark categories indicate the trucking industry is in the midst of change. In terms of operating ratio (a measurement of how well a company can pay off its liabilities with current cash flow), Porter said, “The best (carriers) are still doing pretty damn good. The rest have had a really tough couple of years,” adding that those who have followed the principles of the profitability program have likely “weathered the storm and are pretty well off for a rebound.” As far as revenue per truck is concerned, the current average is $3,800 to $4,900 per month, a reflection of demand and the subdued freight rates. Driver wages as a percentage of revenue are in the 19% to 28% range, although in several sectors the figure exceeds 30%. This benchmark hovered at 25% before the COVID-19 pandemic. Independent contractors rank lowest when considering income. Gross profit as a percentage of revenue is currently in the 12% range. The goal is typically 25%, and the current profit margin is far below the benchmark. Three years ago, profit averaged 20% to 25% but has yet to rebound. According to Porter, the benchmark for gross profit is the greatest challenge the industry currently faces. Likewise, gross profit per employee has experienced a decline. In 2021 and 2022, it hovered around $1,000. Today, the average is $700-$800. Finally, administrative expenses as a percentage of revenue are averaging 30%, although 50% is typical in some sectors. Porter notes that it’s vital that carriers compare themselves with benchmarks frequently — perhaps even on a weekly basis. Operating costs can change quickly, and variable cost factors are fluid. Successful carriers, he said, identify and stick to three primary objectives and ensure these objectives guide management decisions: Identify action items on an ongoing basis. Share results. Reward success. Benchmarking is something any industry should adopt as a primary practice, and the TPP is an example of a well-developed industry benchmarking system that carriers are invited to join. It allows carriers to evaluate the efficiency of previous performance, learn what is possible, identify success factors, and determine how a company compares to its peers. To find out more about the program, click here. This article originally appeared in the May/June 2024 edition of Truckload Authority, the official publication of the Truckload Carriers Association.

DEA will move to reclassify marijuana in a historic shift, sources say

The Associated Press - April 30, 2024

WASHINGTON — The U.S. Drug Enforcement Administration (DEA) will move to reclassify marijuana as a less dangerous drug, The Associated Press has learned. This would be a historic shift to generations of American drug policy that could have wide ripple effects across the country. The decision could also create additional confusion for the trucking industry, muddying the already-murky driver drug testing regulations of the Federal Motor Carrier Safety Administration’s Drug & Alcohol Clearinghouse. The DEA’s proposal, which still must be reviewed by the White House Office of Management and Budget (OMB), would recognize the medical uses of cannabis and acknowledge it has less potential for abuse than some of the nation’s most dangerous drugs. However, it would not legalize marijuana outright for recreational use. The agency’s move, confirmed to the AP on April 30 by five people familiar with the matter who spoke on the condition of anonymity to discuss the sensitive regulatory review, clears the last significant regulatory hurdle before the agency’s biggest policy change in more than 50 years can take effect. Once the OMB signs off, the DEA will take public comment on the plan to move marijuana from its current classification as a Schedule I drug, alongside heroin and LSD. It moves pot to Schedule III, alongside ketamine and some anabolic steroids, following a recommendation from the federal Health and Human Services Department. After the public comment period and a review by an administrative judge, the agency would eventually publish the final rule. This comes after President Joe Biden called for a review of federal marijuana law in October 2022 and moved to pardon thousands of Americans convicted federally of simple possession of the drug. He has also called on governors and local leaders to take similar steps to erase marijuana convictions. “Criminal records for marijuana use and possession have imposed needless barriers to employment, housing, and educational opportunities,” Biden said in December. “Too many lives have been upended because of our failed approach to marijuana. It’s time that we right these wrongs.” The election year announcement could help Biden, a Democrat, boost flagging support, particularly among younger voters. Biden and a growing number of lawmakers from both major political parties have been pushing for the DEA decision as marijuana has become increasingly decriminalized and accepted, particularly by younger people. A Gallup poll last fall found 70% of adults support legalization, the highest level yet recorded by the polling firm and more than double the roughly 30% who backed it in 2000. The DEA did not respond to repeated requests for comment from The Associated Press. Schedule III drugs are still controlled substances and subject to rules and regulations, and people who traffic in them without permission could still face federal criminal prosecution. Some critics argue the DEA shouldn’t change course on marijuana, saying rescheduling isn’t necessary and could lead to harmful side effects. Jack Riley, a former deputy administrator of the DEA, said he had concerns about the proposed change because he thinks marijuana remains a possible “gateway drug,” one that may lead to the use of other drugs. “But in terms of us getting clear to use our resources to combat other major drugs, that’s a positive,” Riley said, noting that fentanyl alone accounts for more than 100,000 deaths in the U.S. a year. On the other end of the spectrum, others argue marijuana should be treated the way alcohol is. Last week, 21 Democrats, led by Senate Majority Leader Sen. Chuck Schumer of New York, sent a letter to DEA Administrator Anne Milgram and Attorney General Merrick Garland arguing that marijuana should be dropped from the controlled-substances list and instead be regulated like alcohol. “It is time for the DEA to act,” the lawmakers wrote. “Right now, the Administration has the opportunity to resolve more than 50 years of failed, racially discriminatory marijuana policy.” Federal drug policy has lagged behind many states in recent years, with 38 having already legalized medical marijuana and 24 legalizing its recreational use. That’s helped fuel fast growth in the marijuana industry, with an estimated worth of nearly $30 billion. Easing federal regulations could reduce the tax burden that can be 70% or more for businesses, according to industry groups. It could also make it easier to research marijuana, since it’s very difficult to conduct authorized clinical studies on Schedule I substances. The immediate effect of rescheduling on the nation’s criminal justice system would likely be more muted, since federal prosecutions for simple possession have been fairly rare in recent years. But loosening restrictions could carry a host of unintended consequences in the drug war and beyond. Critics point out that as a Schedule III drug, marijuana would remain regulated by the DEA. That means the roughly 15,000 cannabis dispensaries in the U.S. would have to register with the DEA like regular pharmacies and fulfill strict reporting requirements, something that they are loath to do, and that the DEA is ill equipped to handle. Then there’s the United States’ international treaty obligations, chief among them the 1961 Single Convention on Narcotic Drugs, which requires the criminalization of cannabis. In 2016, during the Obama administration, the DEA cited the U.S.’ international obligations and the findings of a federal court of appeals in Washington in denying a similar request to reschedule marijuana. By Zeke Miller, Joshua Goodman, Jim Mustian and Lindsay Whitehurst. Goodman reported from Miami and Mustian from New Orleans. AP writer Colleen Long contributed. The Trucker News Staff also contributed to this report.

MCT Companies named Carrier Transicold’s US Dealer of the Year

John Worthen - April 30, 2024

ATHENS, Ga. — Carrier Transicold recently named MCT Companies Dealer of the Year for the United States and Canada at its annual Truck/Trailer/Rail Americas dealer meeting. Carrier Transicold is a part of Carrier Global Corporation. Carrier Transicold’s Dealer of the Year award recognizes organizations that excel in all aspects of dealer operations, including sales, service, market penetration, customer satisfaction, business investment and growth, according to a news release. “This is a transformative time for transport refrigeration with new products, technology and customer needs,” said Alice DeBiasio, vice president and general manager for Truck Trailer Americas and Digital Solutions at Carrier Transicold. “Customers are looking for the expertise, products, services and geographic coverage that a strong dealer network can provide. We’re proud to celebrate Carrier dealers for their achievements.” Based in Omaha, Nebraska, MCT Companies has grown from a single dealership representing Carrier Transicold in 1986 to 19 service locations across six states, the news release notes. “At MCT Companies, we like to say we ‘bleed blue,’ which embodies our dedication to our customers, colleagues and the Carrier Transicold brand,” said Bill Willett, chief executive officer of MCT companies. “We have a set of core values that guides every decision and interaction at every level of the organization. Simply put, our people know what to do, and they produce results that exceed our customers’ expectations.” Carrier Transicold named three recipients of its Extra Mile Award for exemplary customer service: Carrier Transicold of Utah, Salt Lake City; Nordic Refrigeration of Ville St. Laurent, Quebec, Canada; and Refrigeración y Transporte, S.A. de C.V. of San Pedro Sula, Honduras. In all, Carrier Transicold recognized 58 of its more than 200 dealerships throughout the Americas with 98 separate awards for customer satisfaction, growth, business investment and service proficiency in 2023. Seven individuals from five dealerships were recognized for outstanding performance contributions: North America Sales Manager of the Year — Robert Janes, Jr., W&B Service Company, Lowell, Arkansas. North America Parts Manager of the Year — Leonel Siqueiros, CT Power, Phoenix, Arizona. North America Service Manager of the Year — Robert Snyder, W&B Service Company, Converse, Texas. 20 Series Champion of the Year — Michael Clinard, W&B Service Company, Houston, Texas. Latin America Sales Manager of the Year — Manuel Esteves, Soluciones Ultra Frio, Callao, Peru. Latin America Parts Manager of the Year — Azrael Garcia, R.E.T.O S.A. de C.V., Guadalajara, Mexico. Latin America Service Manager of the Year — Juan Manuel Leal, Frio Servicio De Monterrey, Monterrey, Mexico.

Rush Akin joins RoadFlex as CRO

Erica N. Guy - April 30, 2024

NEW YORK — Rush Akin has been named chief revenue officer at fleet expense management firm RoadFlex. With more than two decades of experience in the fleet technology industry, Akin will lead the company’s sales revenue and partnership efforts, according to a news release. He previously served as the senior vice president of sales for Solera, where he was in charge of overseeing fleet sales and business development in North America. Prior to Solera, Akin was chief revenue officer at Rand McNally, where he led their fleet transportation, mileage and logistics sales groups. “We are excited to welcome Rush at a time when we are investing more in our go-to-market strategy and expanding our fleet expense management offerings,” said Dennis Chang, chief executive officer at RoadFlex. “Rush has an extensive track record of driving business growth and building sales organizations, and we know he will make invaluable contributions to our business and make an impact with our fleet customers.” Akin previously spent 10 years at the fleet technology company Lytx, where he was responsible for the sales organization that sold to the largest public-sector entities looking to supercharge their fleets with video telematics solutions. Earlier in his career, Akin worked at Syntech Systems / FuelMaster, a fleet management company that was an early pioneer of electronic fuel management systems. “From my early discussion with Dennis and the RoadFlex team, it was clear that they would deeply disrupt the fuel card and fleet expense management industry. They have built a game-changing product that far surpasses the solutions offered by the incumbents WEX and Fleetcor,” Akin said. “Taking into account the huge amount of demand for comprehensive fleet expense management solutions, RoadFlex has huge potential to redefine the industry. I am thrilled to join the RoadFlex team at such a pivotal time and very much look forward to bringing the company’s industry-leading fleet expense management solutions to a growing roster of commercial fleet customers.”

New TCA award will recognize carriers based on driver satisfaction

Linda Garner-Bunch - April 30, 2024

WASHINGTON — The Truckload Carriers Association (TCA) has begun a new driver satisfaction awards program called TCA Drivers’ Choice Awards – The Elite Fleets. According to a news release, the program “will celebrate and recognize the best carrier workplaces in the North American trucking industry based on professional driver feedback and satisfaction.” Produced by TCA and in partnership with University of Denver’s Transportation & Supply Chain Institute, TCA Drivers’ Choice Awards will highlight carriers that provide exceptional workplace experiences for their company drivers and independent contractors. Only TCA carrier members can participate; nominations will open later this year and the top scoring carriers will be celebrated at TCA’s 2025 convention, which is taking place March 15-18 in Phoenix. After being nominated, carriers and their drivers will be asked to complete surveys which will be administered, overseen and scored by the University of Denver’s Transportation & Supply Chain Institute. In preparing for this new initiative and announcement, TCA surveyed its membership for their feedback and formed four working groups who helped provide input on the program’s structure, the attributes associated with satisfied drivers and many other aspects of the program. “This has truly been a membership led effort in creating TCA Drivers’ Choice Awards,” according to the news release. “TCA is also happy to announce that it has secured three presenting co-sponsors for this program who are EpicVue, TruckRight and Samsara.” TCA President Jim Ward said that recognizing and celebrating the best carrier workplaces in the North American trucking industry not only acknowledges the efforts of these companies but also promotes a culture of excellence and driver satisfaction within the industry. “By partnering with a reputable institution like the University of Denver, the program ensures that the surveys and scoring are conducted impartially and with a high level of professionalism,” he said. David Fisher, executive director at University of Denver’s Transportation & Supply Chain Institute, is equally enthused in the new program. “The Transportation & Supply Chain Institute is thrilled to be able to support this program for the TCA and this industry,” he said. “Trucking is the nation circulatory system. Anything the Institute can do to support the betterment of the industry is part of our charter. Our process will reveal statistically important information that will help the TCA members drive excellence through their organizations. We are honored to have been selected as the partner for this significant initiative.”

Truckstop: Van spot rates mixed, flatbed down in the latest week

John Worthen - April 30, 2024

BLOOMINGTON, Ind. — The total broker-posted rate in the Truckstop system declined by the most in 11 weeks during the week ended April 26 (week 17) as flatbed spot rates dropped and dry van and refrigerated rates moved in oppositive directions. Dry van spot rates fell to their lowest level in nearly a year while refrigerated spot rates posted their sharpest gain since mid-January. Both moves were in keeping with seasonal expectations. Flatbed spot rates fell by the most in a week since early February. Total loads Total load activity declined 2.7% after decreasing 3% during the previous week. Total volume was down 9% from the same 2023 week and was more than 32% below the five-year average for the week. Total truck postings rose 3.8%, and the Market Demand Index — the ratio of load postings to truck postings in the system — declined to its lowest level in nine weeks. Total rates The total broker-posted rate declined about 3 cents to its lowest level in five weeks after ticking up a fraction of a cent during the prior week. Rates during the same 2023 week were essentially the same as the five-year average for the week, and rates last week were 4.6% below both. As we will continue to point out, spot rates are virtually certain to spike in mid-May due to the Commercial Vehicle Safety Alliance’s International Roadcheck inspection event, which will sideline significant driver capacity in the overall truck freight market during the May 14-16 period of roadside inspection scrutiny. Dry van rates Dry van spot rates fell 3 cents, which is slightly less than the decrease in the previous week. After straight two weeks of being slightly higher year-over-year, rates were less than 1% below the same 2023 week and 7.5% below the five-year average. Dry van loads declined 3%, which is about the same as the decline in the previous week. Volume was about 16% below the same 2023 week and about 28% below the five-year average for the week. Refrigerated rates Refrigerated spot rates rose about 5 cents for the strongest increase since the third week of the year when winter weather led to a one-week spike. Rates were 1% above the same 2023 week but nearly 6% below the five-year average for the week. Refrigerated loads increased 2.6% after rising nearly 6% in the previous week. Volume was nearly 8% below the same 2023 week and about 32% below the five-year average for the week. Flatbed rates Flatbed spot rates fell 3.5 cents after rising 2 cents in the previous week. Rates were more than 6% below the same 2023 week and about 4% below the five-year average for the week. Flatbed loads fell 3.6% for the fifth straight decrease. Volume was more than 6% below the same week last year and nearly 38% below the five-year average for the week.

Port of Long Beach conducting Multimodal Transportation Study

Erica N. Guy - April 29, 2024

SANTA ANA, Calif. — The California Port of Long Beach has awarded Iteris Inc. a $900,000 contract for an 18-month multimodal transportation study. The project is designed to identify how best to accommodate cargo movement within the port in order to enhance safety and efficiency for various transportation modes, including trucks, rail, transit, bicyclists and pedestrians, according to a news release. It will also coordinate future port development and infrastructure improvements. The multimodal transportation study also aims to advance the goals identified in the Port’s strategic plan and “will identify strategies and recommendations to optimize the operations of the port’s transportation system for its users and port stakeholders,” the news release notes. The Port of Long Beach is a primary United States gateway for trans-Pacific trade. Voted “Best West Coast Seaport” by industry peers, the port handles trade valued at $200 billion annually and supports 2.6 million jobs across the nation and more than 575,000 in Southern California alone. Most recently, in 2023, Iteris assisted in a successful grant application to the Maritime Administration’s Port Infrastructure Development Program, which awarded $52.6 million to modernize critical on-dock rail capabilities and improve several key roadways aimed at speeding the flow of cargo through the Port of Long Beach. “We’re proud to be a part of this essential project for the Port of Long Beach,” said Steven Bradley, regional vice president of mobility professional services at Iteris. “Their mission to enhance productivity and efficiency in goods movement and improve the environment through sustainable practices aligns perfectly with Iteris’ goals. We’re excited to work on this study to increase efficiency and sustainability.” Iteris has provided consulting services to the Port of Long Beach in various capacities for more than 20 years.

Averitt earns regional ’23 LTL Carrier of the Year Award from Mode Global

Erica N. Guy - April 29, 2024

COOKEVILLE, Tenn. — Mode Transportation has awarded Averitt its 2023 LTL (less than truckload) Carrier of the Year award. Mode Global hosts the awards ceremony annually to honor the carriers in various categories and acknowledge their exceptional contributions and long-standing partnerships, according to a news release. “We are deeply honored to receive the LTL Carrier of the Year award from Mode Transportation,” said Kent Williams, executive vice president of sales and marketing at Averitt. “This recognition is a testament to the dedication of every member of the Averitt team. We remain committed to exceeding expectations, innovating, and providing unparalleled service to our customers.” Chase Smith, vice president of carrier services for Mode Global, expressed his admiration for Averitt’s dedication to delivering superior on-time performance, quality service and overall value. “Averitt’s commitment to service quality, technological enablement, collaboration and customer satisfaction is significant and resonates profoundly within our organization and industry as best in class,” he said.

HDA Truck Pride raises $35,000 for Kids Matter International

John Worthen - April 29, 2024

ST. LOUIS — This year at its annual meeting, HDA Truck Pride announced that the company has raised $35,000 for Kids Matter International, an organization that’s dedicated to brightening the lives of children in Grapevine, Texas. “Founded in 2006, Kids Matter International has been instrumental in providing essential resources and educational opportunities to children in need in the Grapevine area,” a news release stated. “From providing new clothing, shoes, books and backpacks, to offering educational programs, Kids Matter International empowers children and instills hope for a brighter future.” Kicking off their 2024 Annual Meeting, HDA Truck Pride hosted a Cornhole Tournament and Welcome Dinner, where teams competed in a friendly, yet spirited competition with all proceeds being donated to Kids Matter International. Throughout the week there were additional opportunities for attendees to contribute to the charity partner and make an impact. “This donation will enable us to provide clothing to an additional 350 kids in 2024, resulting in a total value of $122,500 in new merchandise,” said Marti Conner, president and CEO of Kids Matter International. “On behalf of the children we serve, we extend our heartfelt gratitude to HDA Truck Pride and the attendees for making a significant difference in the lives of these children.” All future marketing and media inquiries may be directed to Danielle Orlando at [email protected]. HDA Truck Pride President and CEO Tina Hubbard said her company is honored to partner with Kinds Matter International. And “we are incredibly proud of our network for their passionate efforts in being able to raise $35,000 for kids in need. The Kids Matter commitment to the Grapevine community deeply resonates with the values we hold within our HDA Truck Pride network. We’re all about communities coming together to help each other and protect future generations. What better way to do that than through some friendly competition?”

Ryder opens new logistics facility at top US-Mexico port

John Worthen - April 29, 2024

MIAMI — Ryder System Inc. has opened a second multiclient logistics facility at a top U.S.-Mexico port in as many months. The newest site is in El Paso, Texas, near the Ysleta Port of Entry, the largest commercial port in the El Paso district and a critical trade corridor for northbound goods out of Juarez, Mexico. According to a news release, the facility is designed to support the growth in nearshoring activity as trade with Mexico increases. “If you look at the latest numbers, U.S. trade with Mexico is at nearly $800 billion annually, and the Ysleta port processes about nine to 10% of that. It’s second only to the Port of Laredo, Texas, which processes nearly 40% of goods crossing the border — and where we recently opened another new logistics center,” said Frank Bateman, vice president of supply chain operations for Ryder. “The site in El Paso also has the advantage of being strategically located along a popular stopping point for trucks, not only heading north and south across the border but for domestic loads heading east and west along I-10.” Ryder’s newly-built 50,000-square-foot multiclient logistics facility is located less than five miles from the U.S.-Mexico border and less than 15 miles from the airport with easy interstate access in all directions, the news release notes. It provides cross-dock services, including consolidation and de-consolidation, ambient storage for imports and exports, 24/7 yard operations and value-added services. The new facility has 20 dock doors and room for 350 trailers with all-access CCTV throughout. “The new El Paso site is just across the border from Juárez, Mexico, which is the most important industrial market along the border, with more than 300 export-oriented manufacturing plants that produce everything from car components to snack foods,” said Ricardo Alvarez, vice president of supply chain operations for Ryder Mexico. “It’s one reason Mexico is so attractive to companies looking to diversify their supply chains – that, and the proximity to the U.S. Put what you need on a truck, and you can have it at your U.S. distribution center within days, not weeks or months.” In February, Ryder announced the opening of a 228,000-square-foot multiclient warehouse and cross dock in Laredo, center just three miles from the World Trade Bridge and expansion of its drayage yard in Nuevo Laredo, Mexico, which facilitates the transfer of freight across the border to U.S. drivers. “We’ve been building our cross-border capabilities in Mexico for nearly three decades. It takes years to develop relationships in manufacturing and with Mexican carriers, as well as customs and compliance expertise to ensure faster, more secure border crossings,” said Steve Sensing, president of supply chain and dedicated transportation solutions for Ryder. “And, with our fully integrated supply chain and transportation solutions, backed by best-in-class security protocols and our end-to-end visibility technology, we can seamlessly speed our customers products from the manufacturing floor to the end-consumer’s door.” Ryder manages more than 250,000 freight movements annually across the Mexican border, supporting customers in the automotive, industrial, technology and consumer packaged goods industries. The company also operates approximately six million square feet of multiclient and dedicated warehouse space across Mexico.

TA Dedicated to pay $460,000 in EEOC sexual orientation and retaliation suit

The Trucker News Staff - April 29, 2024

CLEVELAND — TA Dedicated (formerly known as Transport America) and Transportation Enterprise Services, trucking companies that operate under the parent TFI International Inc., will pay $460,000 and furnish significant equitable relief to settle a sexual orientation and retaliation lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency has announced. The EEOC said the companies violated federal law by subjecting two gay mechanics to harassment and termination because of their sexual orientation and retaliated against them for complaining about the harassment. According to the EEOC’s lawsuit, beginning in late 2018, workers and supervisors at the TA Dedicated facility in North Jackson, Ohio, harassed two mechanics because they are gay. The harassment included frequent use of gay slurs and other derogatory comments, physical violence and other inappropriate contact, defacement of uniforms, and other hostile behavior. Although human resources and management officials were aware of the harassment, they failed to take effective action to stop it. Instead, after reporting the harassment, the mechanics suffered further harassment and retaliation, including being fired or forced to quit. Such alleged conduct violated Title VII of the Civil Rights Act of 1964, which prohibits discrimination because of sex, including sexual orientation and gender identity, and retaliation for opposing discrimination. The EEOC filed suit (EEOC v. TA Dedicated, Inc. d/b/a Transport America and TForce TL Holdings USA, Inc. d/b/a Transportation Enterprise Services, Case No. 1:23-cv-01802) in U.S. District Court for the Northern District of Ohio, after first attempting to reach a pre-litigation settlement through its administrative conciliation process. The multi-year consent decree resolving the lawsuit requires the trucking companies to provide back pay and more than $300,000 in compensatory and other statutory damages to two discrimination victims. The decree also enjoins the companies from discriminating against employees on the basis of sex in the future, including sexual orientation and gender identity, and from retaliation. The court-ordered injunctive relief applies nationwide, including at TA Dedicated locations in Minnesota, Georgia and Pennsylvania, and the consent decree provides significant measures to protect all employees from harassment and retaliation no matter where they work. According to the decree, the companies must create and maintain a third-party, toll-free hotline for employees to report sex discrimination or retaliation, with an option for anonymous reporting, and TA Dedicated must promptly investigate all complaints. The decree terms also address the need for better quality investigations of such complaints and also provides for EEOC monitoring and review of periodic company reports. “We are pleased this settlement provides meaningful compensation to the mechanics who suffered harassment because of their sexual orientation and retaliation for speaking up,” said Debra Lawrence, regional attorney of the EEOC’s Philadelphia District Office. “And the reporting hotline, training, tracking, posting, and EEOC monitoring required by the consent decree should help ensure that other LGBTQI+ persons don’t have to endure similar abuse.” EEOC Cleveland Field Office Director Dilip Gokhale added, “Employers have a responsibility to protect their employees from harassment because of sex, including sexual orientation and gender identity. That includes enforcing effective anti-harassment policies, conducting proper investigations of complaints, and taking appropriate corrective action. The EEOC remains committed to holding employers accountable in that regard.”

Drug & Alcohol Clearinghouse reports highlight needs but offer few solutions

Cliff Abbott - April 29, 2024

When it comes to Congressional action, movement is often excruciatingly slow. “Unfortunately, it is rather stagnant up there” is a comment that could have come from a variety of sources regarding any number of issues awaiting resolution on Capitol Hill. In this case, the comment comes from David Heller, senior vice president of safety and government affairs for the Truckload Carriers Association (TCA), and the topic is drug and alcohol testing for commercial drivers. The admission of oral fluid and hair follicle testing are two issues that concern Heller. He was involved in the implementation of last year’s oral fluid testing rulemaking by the Federal Motor Carrier Safety Administration (FMCSA) and the addition of hair follicle testing to programs approved by the U.S. Department of Transportation (DOT). “Certainly, oral fluid testing would be a win-win for the industry,” Heller said. “We have a rule that went into place in June, but we still don’t have two laboratories that have been certified to move forward on this testing mechanism. “We as an industry continue to wait on government interaction, and it’s just not happening,” he continued. Through conversations with TCA membership, Heller has found that increasing numbers of motor carriers are using hair follicle testing for controlled substances. “I think you’re starting to see hair follicle testing trickled down to mid-sized carriers because of the success that large carriers have had in implementing this type of program,” he said. Yet another leadership change at the FMCSA hasn’t improved the situation, according to Heller. Acting Administrator Robin Hutcheson left the agency in January and was replaced by Executive Director and Chief Safety Officer Sue Lawless, who addressed TCA members during the association’s annual convention in March. In December 2023, the FMCSA’s Drug & Alcohol Clearinghouse completed its fourth year of operations. Monthly reports show the total number of Clearinghouse queries, both full and limited, has grown each year of the program’s existence. In 2023, a total of 7,134,622 Clearinghouse queries were conducted. Of those queries, 2,701,444 were full inquiries for pre-employment purposes. Pre-employment queries grew by 4.8% from 2022 levels and total queries by 2.7%. Also rising were the number of drug violations reported. In 2023, a total of 68,229 violations were reported, representing a new high. In an interesting twist, however, the number of positive drug screens actually declined by 5.4%, down from 57,597 in 2022 to 54,464 in 2023. This is an indication that increased numbers of specimens were positive for more than one controlled substance. While it may seem strange that positive test results declined while overall violations increased, the difference lies in the number of test refusals. In 2023, 12,804 driver refusals to test were reported. That’s 18% of the year’s total violations. Each year from 2020-2022, the refusal to test rate hovered around 12%. When only random drug tests are considered, the number of refusals in 2023 climbed to 21% of all reported violations. Heller believes the increased refusals may be evidence that the Clearinghouse is having its intended effect. “(Offenders) know that they won’t be allowed to get behind the wheel, and they choose to find other work,” he said. The percentage of positive test results attributable to marijuana (cannabis) has increased each year of the Clearinghouse, reaching 61.3% in 2023. That’s likely a result of the progression of jurisdictions that have legalized marijuana for recreational or medical use or have decriminalized its possession or use. The increase in marijuana use may also help explain the increased number of refusals to test that the Clearinghouse reported in 2023. In his State of the Union address on March 6, President Joe Biden reiterated his October 2022 comments made regarding issuing a pardon proclamation for thousands of Americans convicted in federal court of marijuana possession. “No one should be in jail just for using or possessing marijuana,” Biden said. An administration-prompted review in 2022 resulted in a U.S. Department of Health and Human Services recommendation, issued in August 2023, that cannabis be moved to Schedule III of the Controlled Substances Act. Another drug that captured an increased percentage of positive drug screens in 2023 was cocaine. According to Clearinghouse reports, 16.8% of positives reported were due to the drug. Unlike marijuana, there is not a nationwide effort to decriminalize cocaine; however, another testing trend could be impacting its use. Opioids such as hydrocodone, hydromorphone, oxycodone, and oxymorphone have been in the news in recent years as abuse of these prescription drugs reached epidemic proportions. As of November 2023, 38 states had enacted restrictions on the prescribing of opioids. In 2022, the Centers for Disease Control revamped its previous guidance, issuing new guidelines for the dispensing of opioids, influencing the policymaking of legislatures and health organizations. The four opioids mentioned above were responsible for 8.5% of all positive results reported to the Clearinghouse in 2020. That rate has fallen each year, with 2023 results showing the lowest total number of positives yet with a positive rate of 6.0%. Positive results for other forms of opioids such as morphine, codeine, and 6-acetylmorphine have remained relatively constant. Methamphetamine has also experienced declines in positive testing, dropping to 7.3% of all positive results reported to the Clearinghouse in 2023. One possible cause for the decline in positive results for opioids and methamphetamine is the increased presence of fentanyl, which may soon be added to the DOT testing regimen. In the meantime, it seems many commercial drivers with positive test results recorded in the Clearinghouse prefer to choose a new career rather than comply with federal regulations. Of the 226,598 drivers found with at least one violation since the Clearinghouse became active, 158,330 — that’s 70% — remain in prohibited status. On top of that, 120,676 (53.2%) have not even begun the return-to-duty process. This could be an indication that efforts to solve the issue of substance abuse will impact another problem cited by many motor carriers — a shortage of qualified drivers. In the meantime, it seems, the trucking industry is stuck waiting in line, hoping for a “prescription” that will cure all ills. This article originally appeared in the May/June 2024 edition of Truckload Authority, the official publication of the Truckload Carriers Association.

Laying a foundation for success with John Culp

Linda Garner-Bunch - April 29, 2024

On March 26, 2024, during the closing banquet of the Truckload Carriers Association’s (TCA) annual convention, John Culp, president of Arkansas-based Maverick Transportation, officially stepped into the role of the association’s chairman. As he stepped to the podium, he thanked outgoing chairman Dave Williams for his service, noting that Williams “set the bar high” during his tenure. Culp continued, sharing thoughts about the value TCA brings to its members, including the group’s power as advocates for the truckload industry on Capitol Hill. “It’s an ongoing team effort for our staff, our members, and our lobbyists. Together, we are making a difference,” he noted, urging any members who have not participated in TCA’s annual Call on Washington to add their voices to this year’s efforts. Outlining goals for the coming months, he touched on numerous issues facing the industry. In closing, he noted that industry leaders should invest in their greatest assets. “We all have big investments in rolling stock buildings, computers, and technology, but our most important asset is our people — more importantly, our people working as a team is what makes us successful,” he explained. “In my opinion, investing in our people is more than just time and money well spent; it’s critical for building the foundation for continued success in the future.” Linda: First of all, congratulations on stepping into your new role as TCA chairman! What does this new responsibility mean to you, both personally and professionally? John: Thank you, Linda. It’s an honor to have the opportunity to serve as TCA’s chairman. Dave Williams leaves big shoes to fill, but our association is in great shape, and our officers and staff are aligned and on board with the vision and objectives we’ve been working on for the past several years. We don’t need to change what we’re doing, but we know we can get better and that is what we want to do. Linda: You were formally introduced as this year’s chairman during TCA’s 2024 convention in Nashville just a few weeks ago. How did it feel to step up to that podium, look out at the association’s members, and realize that all those people will be looking to you for advice, opinions, and solutions during your tenure as chairman? John: It felt good to see a full house. Our annual conference attendance has been growing over the past several years, and it was great to see so many people staying for the closing banquet. My position responsibilities are changing, but we have a great staff and officer group and we work together as a team in everything we do. I anticipate business as usual for Team TCA. Linda: For members who haven’t had a chance to get to know you yet, how and when did you first become interested in the trucking industry? John: I had been working in public accounting for a couple of years after graduating college when I decided I wanted to move to the private sector. The first opportunity I had was with Chandler Trailer Convoy, a small carrier in Little Rock, Arkansas. I made a couple of moves for better opportunities with other trucking companies in town before I found my dream job at Maverick. I learned a lot at every company I worked for and am still grateful for the opportunities I had. I guess it is safe to say that trucking has been my career of choice since I was young and green between the ears. Linda: When did you first start working for Maverick, and in what capacity? What roles have you held with the company? John: I joined Maverick in September of 1989 as vice president of finance and became part of the company’s four-person officer group. We had 70 company trucks and 26 owner-operators at the time. The only other position I have held since then before becoming president was executive vice president and CFO. Linda: How long have you been part of TCA, and what roles have you held within the association? John: I don’t remember exactly the first time I attended a TCA conference, but it was sometime in the mid ’90s. Maverick’s founder, Steve Williams, felt it was important for our leaders to become involved in state and national trucking organizations for educational purposes and industry knowledge — but also to be actively involved in the efforts of these organizations to make our industry and our company better. I have served in various positions in other associations, but my first role at TCA began when I became an officer in 2019. Linda: In your opinion, how do industry associations like the TCA benefit their members? The industry as a whole? John: For our members at TCA, we have a value proposition matrix of five key objectives that form the foundation of our efforts to deliver membership value: Improving the driving job; Improving roadway safety; Improving financial sustainability for our member companies; Improving our industry image; and Promoting industry environmental stewardship. In each of these areas, we provide a combination of meetings, events, programs, and educational opportunities designed to provide value for the dues members pay and the time they invest in TCA. For me personally, the most valuable and rewarding benefit of TCA membership is networking and developing relationships with peers and vendors. It’s helped me tremendously in my career and I feel it has made me a better leader. But the icing on the cake has been the incredible friendships I have made, and with that, I have been truly blessed. For our industry, I would say that our advocacy efforts on The Hill to address the important issues that impact our industry would be the biggest value. Our voice is strengthening, and we have plenty of issues to work on. Linda: In your opinion, what is the biggest issue faced by the industry today, and what are some possible solutions? John: I really worry about the ever-increasing cost of liability insurance. Both trucking and insurance companies alike are fighting nuclear verdicts that are unsustainable. As an industry, we must lead the charge for lawsuit reform, state by state, to place reasonable limits on non-economic damages for parties injured in accidents. As an industry, taking responsibility for injuries we cause is the right thing to do. Every trucking company should carry adequate insurance to do so; we are not trying to change that, but today’s out-of-control “jackpot justice” is simply wrong and needs to be addressed. Linda: Emissions regulations calling for the trucking industry to convert to zero-emissions trucks remain a hot topic. Many groups appear to promote battery-electric vehicles across the board, while some suggest other options, such as hydrogen fuel cell batteries or diesel engines powered by renewable natural gas. What are your thoughts on the proposed timeline for zero emissions and the available options? John: Short answer: It is unreasonable and unrealistic to reach the zero-emissions targets that have been laid out for our industry. TCA supports zero-emissions for trucks, but it is going to take a long time. We need commonsense leaders to realize this and set realistic timelines with an affordable path. A recent independent study by Roland Berger, a global consulting company, estimated the cost to build the electric grid needed to charge an all-electric truck fleet in the United States is $1 trillion. For most people, that is “monopoly money,” because it is hard to comprehend exactly how much that is. One trillion is one thousand times a billion. We have approximately 333 million people in the US. That equates to a cost of $3,000 for every person in the country. That’s a lot of money, and it is real. TCA has been a founding partner in the Clean Freight Coalition in its effort to advocate for sound public policies that transition toward a zero-emission future in a manner that strategically assures affordable and reliable freight transportation and protects the nation’s supply chain. If you want to know more, please feel free to visit cleanfreightcoalition.org. Linda: It’s now been nearly four-and-a-half years since the FMCSA launched the Drug and Alcohol Clearinghouse as a national database for the results of commercial drivers’ drug and alcohol screenings. In your eyes, how has having access to this information changed the face of driver recruitment and retention? John: The Clearinghouse has been very effective in removing drivers who have tested positive for drug and alcohol violations from our highways. The change in driver recruitment is a big win for trucking companies in that drivers are no longer able to beat the system when they fail a drug test at one carrier and later fly under the radar with another company. I don’t think any carrier wants to hire a driver who has failed a drug test. The only problem I know of with the Clearinghouse is that the FMCSA still won’t allow companies that utilize hair follicle testing to report their results to the Clearinghouse. Linda: That leads us straight to my next question: Even though proposals to allow alternate forms of testing, such as oral fluids and hair follicles, have been introduced, no clear decision has yet been made. How would allowing the use of such testing impact the driver workforce? John: Maverick is part of a group of carriers that have been utilizing hair testing for years. Out of 460,568 drivers who underwent both hair follicle and urine testing from 2017-2022, we have personal knowledge of positive drug tests for 23,601 drivers who passed urine tests at the same time. That means 23,601 habitual drug users were likely able to immediately go to work for a carrier that does not utilize hair testing. Hair follicle testing identifies drug users nine times more effectively than urine testing. Researchers estimate that if that rate were applied to the entire truck driver population, it is reasonable to estimate that up to 250,000 drivers who passed a urine test would have failed a hair test at the same time. Congress passed the FAST Act in December of 2015, directing the Department of Health and Human Services (HHS) to write the guidelines for hair follicle testing to enable the FMCSA to add it as an approved testing method for DOT compliance. Since then, HHS has delayed the process, blocking the ability for companies that utilize hair testing to submit known positive drug tests to the Clearinghouse. Why, you ask? They claim they have concerns the test may be racially biased — but there is no research to verify it. On the other hand, a study analyzing over 70,000 drivers where ethnicity information from hair testing data was available determined hair follicle testing is not racially biased. It seems to me the powers that be at HHS don’t care when carriers must let someone we know has tested positive for opioids or fentanyl go unreported to the Clearinghouse and be able to go to work for a company that does not hair test. For me personally, it is infuriating when we have to let that happen! It is irresponsible for the government agencies responsible for the safety of our motoring public to sit on their hands for nine years and continue to do nothing. For the record: TCA supports carriers’ ability to submit hair test results into the Clearinghouse. A University of Central Arkansas study came to the following conclusion regarding a person’s race as it pertains to hair follicle testing: “Utilizing independently provided urine and hair pre-employment drug screen data, Researchers were unable to find disparate impacts of hair testing among the ethnic groups analyzed. Results for each test in each sample met the required Four-Fifths Rule threshold. Chi-square tests independently examine urine and hair tests. Chi-square results indicate that the proportion of drug test failures (positives) are higher for hair testing across all ethnic groups, but pass/fail rates are significantly different irrespective of testing method. Given these findings, Researchers find no disparate impact among ethnic groups by testing method.” Linda: Here’s another related question: While the federal government has not changed its policies on the use of cannabis products, many states have legalized the drug for both medicinal and recreational use, creating yet another hotbed issue for the trucking industry. What are your thoughts on this? John: The problem with cannabis is very real. Usage is increasing, and there is no way to test for real-time impairment that law-enforcement officers can use like they can with alcohol. Until there is, the problem will continue to grow. Hair follicle, urine and oral testing can detect THC in a driver’s system but not impairment at the time of the test. At a minimum, until impairment can be measured, cannabis needs to stay a Schedule 1 drug for all drug tests for drivers. Linda: Let’s take a look at another topic the trucking industry is watching closely. In 2021, the Modern, Clean, and Safe Trucks Act reintroduced industry efforts to repeal the federal excise tax (FET) on heavy-duty trucks and trailers. Since then, both House and Senate versions of the bill seem to have stalled out in committee. Do you predict any movement on these measures over the next year? Why or why not? John: Unfortunately, no. The FET is an outdated tax that goes up every year as tractor and trailer prices go up. And, with the cost to purchase new equipment being at an all-time high, it is a very regressive tax that makes it difficult — if not impossible — for many small truckers to purchase new equipment. If the tax were repealed, new equipment prices would immediately decrease by 12%. Emissions for new-generation engines have made incredible gains, and we could make real changes in clean air if we could make newer equipment more affordable for truckers to retire their old trucks and purchase newer technology. It’s a great opportunity, but there is no agreeable solution in Congress to replace the lost dollars coming out of the Highway Trust Fund. Linda: Thank you, Mr. Chairman, for your time. I look forward to our next conversation. This article originally appeared in the May/June 2024 edition of Truckload Authority, the official publication of the Truckload Carriers Association.

United Auto Workers reaches deal with Daimler Truck, averting potential strike in North Carolina

The Associated Press - April 27, 2024

GREENSBORO, N.C. — The United Auto Workers union announced it reached a last-minute tentative agreement with truck and bus manufacturer Daimler Truck, averting a potential strike of more than 7,000 workers. The union struck a four-year agreement with the German company on Friday evening, just before the expiration of the previous contract, which was enacted six years ago. It covers workers at various plants in North Carolina — where Daimler makes Thomas Built Buses, Freightliner and Western Star trucks — as well as distribution centers in Atlanta and Memphis, Tennessee. In an online speech, UAW President Shawn Fain said the new contract includes wage increases of more than 25% over the next four years, including a 10% raise after the deal is ratified. Fain said the deal also includes the end of wage tiers at the company, as well as cost-of-living adjustments and “profit sharing for the first time in Daimler history.” “When that deadline came closer, the company was suddenly ready to talk,” Fain said. “So tonight, we celebrate.” Union members still need to approve the agreement. “The UAW members at these locations will now be asked to vote on the new contracts, and we hope to finalize them soon, for the mutual benefit of all parties,” Daimler said in a statement. The heavy-duty manufacturer was once the same company as Mercedes-Benz before it split off in 2021. The Daimler deal comes amid a broad campaign by the UAW to organize southern auto assembly plants following lucrative new contracts in a confrontation with Detroit’s automakers. Last week, 73% of those voting at a Volkswagen AG plant in Chattanooga, Tennessee, chose to join the UAW. It was the union’s first in a southern assembly plant owned by a foreign automaker. Workers at Mercedes factories in Tuscaloosa, Alabama, will vote on UAW representation in May. However, UAW’s efforts have sparked pushback from Republican governors and business leaders in the South.

ATA Safety Management Council awards industry’s best

John Worthen - April 26, 2024

PHOENIX — The American Trucking Associations’ (ATA) Safety Management Council (SMC) has honored several distinguished fleets and industry leaders for their commitment to safety on the highway and in the workplace. “Safety is at the heart of our industry, and these carriers and professionals embody this principle consistently,” said ATA President and CEO Chris Spear. “I want to congratulate these valued members of our industry for their commitment to safety and professionalism.” The winners were recognized at ATA’s 2024 Safety, Security and Human Resources National Conference and Exhibition in Phoenix. Those receiving awards were: 2023 ATA National Safety Director of the Year: Steven Garrish, vice president of safety and compliance at Old Dominion Freight Line ATA President’s Trophy: Over 100 Million Miles, Pitt Ohio of Pittsburgh; Between 25 and 100 million miles, TCW Inc. of Nashville Under 25 Million Miles: J.W. Didado Electric of Akron, Ohio 2023 ATA National Driver of the Year: David Wolford, Continental Express 2023 Excellence in Safety: Arkansas Trucking Association “SMC is pleased to honor this year’s winners — all of whom play an important role in building our industry’s safety culture,” said SMC Executive Director Jacob Pierce. “Motor carriers, state association executives and our drivers do critical work in promoting and improving safety across our industry, and we thank them all for their commitment.”

Best fleets practice ‘ruthless reflection’ to make their company a place people want to work

Cliff Abbott - April 26, 2024

Running a trucking company is hard work, especially in the current economic climate. While some carriers are struggling — or even shutting their doors — others appear to be thriving, and they have no shortage of qualified drivers. What’s the secret? During the 2024 Best Fleets to Drive For education and awards conference, presented by CarriersEdge and held April 8-9 at the NASCAR Hall of Fame in Charlotte, North Carolina, motor carrier executives and recruiters had a chance to find out. In a session titled “Building Workplace Culture: A Deep Dive into What Best Fleets are Doing,” Jane Jazrawy, CEO of Carriers Edge, began by defining “workplace culture.” “Culture is not a fixed object. Your workplace is an organization — and organizations are like living entities,” she said. “Your company is pushed and pulled by your driving team, your office team, your customers, your management and sometimes investors.” A business could be viewed as a garden, she said. “Things sometimes grow when they’re not supposed to,” she explained. “When that happens, you can do some weeding or replanting in your business. You make small corrections, introduce new programs and make sure that things are moving in the right direction. Jazrawy is something of an expert when it comes to the practices of some of the top fleets in North America. CarriersEdge has hosted the Best Fleets to Drive For competition for 15 years, accumulating information from carriers and their drivers about what makes a carrier one that drivers want to work for. The annual competition is open to carriers that have at least 10 tractors and their own operating authority. The hitch? Carriers must be nominated by their drivers to be eligible. For carriers that want to keep their drivers and other employees satisfied, she said, the key to keeping drivers, or any employees, satisfied, she says, is “ruthless reflection.” What does that mean? It means that every year, a carrier should take a brutally honest look at what is done for the drivers. Carriers that are nominated for recognition in Best Fleets to Drive For complete a 100-question self-evaluation and then participate in an interview, where leaders are sometimes asked unsettling questions, Jazrawy said. “You get a report, and you look at the driver survey responses. And instead of saying, ‘We can’t do that!’ you say, ‘How can we do this better?’ You do this every year,” she said. “You make small, incremental improvements that help your company culture to be more driver-centric. “When you don’t look back and take a hard look at what you’ve done and where you’ve been, you can’t move forward — and you can’t get better,” she said. “This is true for individual companies, and it’s true for the entire industry.” Jazrawy says the Best Fleets questionnaire is a great tool to help carriers take a close look at their practices. “It’s an opportunity to get your people together and talk about what you do,” she said, noting that this process can help leaders identify and break down silos that can prevent drivers from expressing what they do (or don’t) like about a company’s practices. The Best Fleets to Drive For program is available for carriers with at least 10 tractors and their own authority. The process begins with a driver nomination, followed by a questionnaire for carrier management, followed by driver surveys to determine if the perceptions of drivers and management are on the same page. This year, 117 nominations were received for the Best Fleets to Drive For program, leading to 72 carrier interviews and more than 5,000 completed driver surveys. Jazrawy says responses in the driver surveys are key. “Drivers will tell you what they think in any way possible,” Jazrawy said. “If you give them a form to fill out, they will tell you all kinds of stuff that has nothing to do with the questions. They will let you know.” For example, one question asks drivers whether their carrier has a good coaching and mentoring program. Between 2019 to 2024, the number of drivers expressing dissatisfaction with their companies’ coaching and mentoring programs have decreased, indicating that those programs have improved in quality. However, another question, which asks drivers if they believe their company cares about their opinions, didn’t fare as well. “That satisfaction level is going down,” Jazrawy said. “It’s kind of like (the drivers are thinking), ‘We’re not too sure about that.”‘ Making sure employees are engaged and feel like they have a voice is important. Some carriers do a great job of using social media to attract new drivers — but don’t put the same effort into engaging with current drivers and employees, she noted. As expected, pay is always a hot topic among driver survey respondents, and job perks like paid time off, bonuses and retirement benefits are also important to drivers. The driver population continues to get older with many drivers working past retirement age. Surveys have shown that only a small percentage of drivers participate in carrier retirement programs, leaving many to retire solely on Social Security or the Canada Pension Plan for their retirement income. As a result, many drivers continue to work for as long as they are physically able. It’s critical that younger drivers enter the market to fill gaps as older drivers do retire. One demographic that Jazrawy is excited about is owner-operators in the 21-30 age group. “That under-30 group is moving; you are getting contractors under 30 — and I think that’s really exciting,” she said. “There are a lot of young people who want to have their own business, and they think trucking is a good place to do it. “That’s a great way to bring people in,” she continued. “I think it’s good to have young people in trucking period, but I think it’s really interesting that they’re coming into the contractor side of things.” Driver scorecards was another topic, with Jazrawy saying she believes the CSA scorecard has prompted many carriers to create scoring systems of their own. While scorecards can help improve driver performance, unfortunately, some carriers don’t take the time to sit down with drivers to explain them. Some treat them like a report card, simply providing it to the driver, while others work with drivers to provide training and improve scores. Ultimately, she says, the Best Fleets to Drive For process can help carriers work more closely with their drivers and better understand their views. In addition, each company must take an honest look at the way employees, particularly drivers, are treated. “The better companies we have in trucking, the better the industry is going to be,” she concluded.

Vehicles, including big rigs, will soon pay to enter busiest part of Manhattan

The Associated Press - April 26, 2024

NEW YORK — The start date for the $15 toll most drivers will be charged to enter Manhattan’s central business district will be June 30, transit officials said Friday. The fee will be $36 for trucks with trailers. Opponents say the fees are a burden on workers and will increase the prices of staple goods that are driven to the city by truck. Under the so-called congestion pricing plan, the fees will apply to most drivers who enter Manhattan south of 60th Street during daytime hours. Tolls will be higher for larger vehicles and lower for nighttime entries into the city as well as for motorcycles. The program, which was approved by the New York state Legislature in 2019, is supposed to raise $1 billion per year to fund public transportation for the city’s 4 million daily riders. “Ninety percent-plus of the people come to the congestion zone, the central business district, walking, biking and most of all taking mass transit,” Metropolitan Transportation Authority CEO Janno Lieber told WABC. “We are a mass transit city and we are going to make it even better to be in New York.” Supporters say that in addition to raising money for buses and subways, congestion pricing will reduce pollution be disincentivizing driving into Manhattan. Opponents say the fees will be a burden for commuters and will increase the prices of staple goods that are driven to the city by truck. The state of New Jersey has filed a lawsuit over the congestion pricing plan, will be the first such program in the United States. Lieber said he is “pretty optimistic” about how the New Jersey lawsuit will be resolved. Congestion pricing will start at 12:01 a.m. on June 30, Lieber said, so the first drivers will be charged the late-night fee of $3.75. The $15 toll will take effect at 9 a.m. Low-income drivers can apply for a congestion toll discount on the MTA website, and disabled people can apply for exemptions.

Schneider honors nearly 200 drivers with safe driver awards

John Worthen - April 26, 2024

GREEN BAY, Wis. — Through this year’s annual recognition program, Schneider National Inc. is honoring nearly 200 drivers who have achieved exceptional safety-related career milestones. An April 25 statement from Schneider notes, “These responsible professionals exemplify safety excellence, serving thousands of customers across millions of miles without a single preventable accident.” Schneider’s annual recognition program celebrates drivers who have earned Million Mile Driver Awards, Consecutive Safe Driving Awards and earned induction into the company’s Haul of Fame. The Million Mile Driver Award is earned by Schneider drivers who have transported freight over 1 million miles and remained accident free. Safe miles accumulate annually based on shipment miles driven without preventable accidents. In 2023, 92 drivers either joined the ranks or reached a new milestone, including the five who reached the impressive mark of four million safe miles. This year, five drivers achieved a notable milestone: 4 million safe driving miles. To put this achievement into perspective: Together these four drivers have circumnavigated the globe more than 800 times. These accomplished drivers now join an exclusive group of only a dozen others who previously reached this significant milestone in the company’s history. Additionally, 82 drivers earned Schneider’s Consecutive Safe Driving Award by remaining accident-free for a milestone number of years. This award recognizes drivers who have reached at least 10 consecutive years without a preventable accident; the award is given for each five-year increment thereafter. Drivers who have accumulated 3 million safe driving miles or 20 consecutive years of safe driving without a preventable accident earn the exclusive honor of being added to Schneider’s Haul of Fame. To permanently honor the recipients, plaques with their names are installed on the Haul of Fame wall at Schneider’s corporate business center in Green Bay, Wisconsin. This year, 32 drivers met the criteria for the first time or had their plaques updated to reflect a higher-level award. “Whether they’re first-time award recipients or seasoned safe driving award winners, we appreciate each driver’s dedication to our values,” said Mark Rourke, president and CEO of Schneider. “In particular, we commend Jon Shackleford, Michael Barnette, Daniel Dailey, Curt Fields and Wayne Iovinella, who each achieved an astounding 4 million safe driving miles,” he said. “Drivers serve as ambassadors of both Schneider and the customers we represent, and these superstars represent excellence in action.” As of the end of 2023, nearly 1,000 of Schneiders active company drivers have earned either the Million Mile Driver Award or the Consecutive Safe Driving Award. For more information about Schneider’s safety initiatives, click here.

RoadFlex is working to help fleets eliminate fuel theft, fraud

John Worthen - April 25, 2024

NEW YORK — Fleet expense management firm RoadFlex has launched an artificial intelligence-powered program that company officials say delivers comprehensive fuel risk management and fuel tracking capabilities, saving fleet operators an average of 11% in fuel spend annually. It’s called the Proactive Fuel Risk Management Platform. “Fuel theft, fuel fraud and fuel card misuse are common in the transportation industry,” stated a news release from RoadFlex. “According to the Shell Fraud Matters report, over 86% of fleet managers believe there is fraud in their fleets. This often accounts for between 10-15% of a fleet’s fuel costs, which can be in the hundreds of thousands of dollars annually. This challenge is often exacerbated by outdated technology solutions, poor spending controls and lack of visibility into real-time fleet expenses.” Even though large incumbent companies currently serve fleet-operating companies with fuel cards, these do not effectively address fuel risk management. In recent years, fleets have increasingly demanded enhanced card controls and more comprehensive fraud prevention features. RoadFlex’s new technology combines real-time vehicle telematics data with transaction data to eliminate fuel fraud and fuel theft, the news release notes. RoadFlex’s software platform grants fleet managers full visibility into every purchase and customizable spending controls for different employees and job needs. It authorizes purchases by verifying that the card is used by the correct employee and for the correct vehicle and blocks suspicious transactions and flags them for review — all in real time. For example, the fleet director of a commercial utility services company could receive an alert if a driver is trying to purchase $100 more of fuel than he’s allowed to in a day, automatically decline a transaction if the purchase is too far away from the vehicle location, or automatically decline a purchase if the driver added non-fuel items to a transaction at Shell or Exxon gas station. Led by veterans from the fleet telematics industry, RoadFlex works with thousands of businesses that operate fleets and field personnel such as trucking companies, utilities, pest control, HVAC, construction and last-mile delivery. “With the RoadFlex platform, our customers get real time 360-view of their fuel spend per vehicle and driver,” said Rush Akin, chief revenue officer at RoadFlex. “We enable fleets to become more data-connected through seamless integrations with fleet management software, accounting tools, and telematics solutions. This facilitates the streamlining of financial operations through comprehensive fuel risk management, savings automation, and real-time fleet analytics.”

Knight-Swift reports more than $2.5M net loss for Q1

John Worthen - April 25, 2024

PHOENIX — Knight-Swift Transportation Holdings has reported first quarter 2024 net loss of $2.6 million and an adjusted net income attributable to Knight-Swift of $19.8 million. Generally accepted accounting principals (loss) earnings per diluted share for the first quarter of 2024 were $(0.02), compared to $0.64 for the first quarter of 2023, according to a news release. The adjusted earnings per share (EPS) was $0.12 for the first quarter of 2024, compared to $0.73 for the first quarter of 2023. The current quarter results include an operating loss of $19.5 million for the company’s third-party insurance business, which ceased operations at the end of the quarter. The insurance loss negatively impacted the company’s adjusted EPS by $0.08 per share. Excluding the loss on the insurance business, the company’s adjusted EPS would have been $0.20. Key Financial Highlights During the first quarter of 2024, consolidated total revenue was $1.8 billion, which is an 11.3% increase from the first quarter of 2023 largely due to the acquisition of U.S. Xpress Enterprises effective July 1. Consolidated operating income was $20.6 million, reflecting a decrease of 85.8%, as compared to the same quarter last year. Truckload — 97.3% Adjusted Operating Ratio, with a 26.3% year-over-year increase in revenue, excluding fuel surcharge and intersegment transactions, as a result of the inclusion of the truckload business of U.S. Xpress. Adjusted Operating Ratio worsened by 1,070 basis points year-over-year primarily due to the 10.2% decline in revenue per loaded mile, excluding fuel surcharge and intersegment transactions, and the 2.7% increase in cost per mile largely as a result of weather disruptions in the current quarter. Less-than-truckload (LTL) — 90.0% Adjusted Operating Ratio, with a 12.6% year-over-year increase in revenues, excluding fuel surcharge. While shipments per day increased 6.1% and revenue per hundredweight excluding fuel surcharge increased 13.3% year-over-year, the impact of the weather disruptions on volumes and operating costs, and incremental maintenance and labor costs as the company expands, contributed to Adjusted Operating Income declining by 20.6%. The company opened seven new locations during the quarter as the company continues to grow the company’s network. Logistics — 97.1% Adjusted Operating Ratio with a gross margin of 16.8% while revenue, excluding intersegment transactions, declined 7.3%, including the U.S. Xpress logistics business. Load count declined from the weather disruptions as well as the company’s decision to divert loads to the Truckload segment to offset the loss of contractual volumes in recent bids. The Adjusted Operating Ratio and gross margin percent of the U.S. Xpress logistics business performed in line with the legacy logistics business in the quarter. Intermodal — 105.6% operating ratio, as load count declined 1.6% and revenue per load declined 19.1% yearover-year, partly due to less project revenue in the current period. All Other Segments — Operating loss increased to $20.4 million in the current quarter including the $19.5 million operating loss of the company’s third-party insurance business. The insurance loss negatively impacted the company’s adjusted EPS by $0.08 per share. The third-party insurance business ceased all operations at the end of the first quarter. In addition, the operating loss includes $8.2 million of severance, legal accrual, and impairment charges which are excluded from the company’s adjusted EPS. “The full truckload market remains extremely challenging as carriers navigate the oversupply of capacity, reduced load volumes, and continued rate pressure through the early part of the bid season, said Adam Miller, Knight-Swift’s CEO. “This has negatively impacted the results of our Truckload, Logistics and Intermodal segments. The LTL market continues to be healthy, and we remain encouraged with the growth of our LTL segment and plan to open 25 new facilities over the remainder of the year in addition to the seven locations we opened during the quarter. We expect this expansion will open new service territories and allow us to grow our relationships with current customers and open opportunities with new customers.”