It’s very hard to put a wrench on an electron. Spend a few minutes web searching the term “embracing change” and you can find an endless list of platitudes from famous people to put on wall art in your office to remind you that nothing stays the same — as if you didn’t know that already. Change is hard. Change can make your business and your skills redundant or obsolete. In 2021, I had the fortune of mentoring a mid-20s son of a neighbor about a major career change to become a diesel mechanic. He had enrolled at one of the many excellent diesel technical schools in the Dallas/Fort Worth region and was about to start classes. He had an agricultural background and had been keeping farm vehicles working. His energy, optimism and commitment were refreshing. In talking to him, you could tell he really liked the mechanical side of trucks. The challenge for him was going to be embracing the software and electronics that are increasingly supplanting mechanical systems on trucks. He really had no interest yet in the future battery electric or hydrogen fuel cell technologies. Realistically, he didn’t need to worry about those yet as there are millions of diesels on the road today and they will be around for years to come. He can get his feet in the door at a fleet or OEM dealership and then route his career forward as the technology matures. In 2021, I felt he had time to deal with the inevitable technology changes I know he will encounter. The trucking industry has been changing since horse drawn wagons started being replaced by the first Mack Brothers motorized vehicles in Manhattan in 1904. All along the way, jobs continually changed. When I started at an OEM, it was very common that mechanical engineers were employed and often managing the electrical groups. I was one of those for a significant new truck model, but had the fortune to have excellent electrical engineering assets available to me at our technical center and supporting suppliers. Before the introduction of electronic control modules (ECMs) and software-controlled engines that became mandatory in the mid-1990s, diesel trucks were largely analog in nature. The role of the electrical groups in those days was largely focused on developing electrical harnesses, making sure they were routed in robust ways on the vehicle, and dealing with never ending electrical connector reliability challenges in the field. The digital world has dramatically changed the skill sets needed to design, build and maintain today’s trucks. The most important tool in the shop now is most likely the laptop computer. Yes, you still need wrenches, but knowing what is going wrong, deciphering the symptoms and finding the root cause of issues largely starts with plugging the laptop into the data port. The complexity of the software has been growing at exponential rates as more computers are added to the vehicles each year. The looming world of battery electric, hydrogen fuel cell and autonomous vehicles promises even more. I interviewed a Volvo executive working in Sweden for my first NACFE report on battery electric vehicles in 2018 and he pointed out that their EV engineering lab had wood floors and the “mechanics” wore white lab coats. The nature of maintenance and repair is migrating from “fix it” to “replace it,” as trucks become more plug-and-play collections of digital systems. I recall our engineering groups spending months designing truck models in the 1990s to make sure the valve cover could be removed and the engine serviced without removing the cab. There is a remarkable amount of design space tradeoffs around the cab firewall and what is called the doghouse, that piece that covers the intrusion of the engine into the cab space. The evolving zero emission new trucks will be much more like a collection of electronic components in a personal computer than like a mechanical system in an engine. Diagnostics will highlight that either a software update is needed, or a component needs to be replaced. The term mechanic will be replaced with technician. Servicing will be plug and play, with the faulty components shipped off to be repaired or responsibly scrapped along with old computers, monitors, cell phones and televisions. Fleets will be offered the opportunity for factory refurbished or new components in repair centers. The electronic components will have high prices and everyone will be looking for ways to mitigate costs. Right to repair laws may help diversify the sources of these costly components, but someone will have to carry inventory to facilitate uptime for fleets. Those parts warehouses will need to have efficient supply chains. The recent experience with the international computer chip shortages that hamstrung OEM production lines also hampered repairs of trucks in the field. Fleets, dealers and OEMs were scavenging parts off of parked trucks to keep others moving. Embracing change defines the freight industries’ typical Monday. It always has. The ramifications of that change can lead to companies and skills becoming obsolete. It’s the harsh reality of the business. The worst thing that can be done is to be in denial about new technologies. In 2019, I interviewed for SAE a senior engineer developing future adaptive cruise control systems. There were aspects of the systems that would be impacted by battery electric trucks. The engineer stated that he did not believe in electric trucks. I hope, for his sake, he has revised that position. I expect my neighbor’s son will have an excellent career maintaining freight trucks. I also expect that over the course of a 30- or 40-year career, that his job title will change from “diesel mechanic” to “freight technician” or, my personal favorite, “trucksmith.” There will still be wrenches in the shop when he retires, but the job then will largely be on a computer. https://ift.tt/RyESlAW
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Buyers who purchase Kenworth and Peterbilt trucks manufactured beginning in 2024 will enjoy the benefits of a new ecosystem of connected products from fleet management functionality and ELD capabilities to truck-specific navigation and third-party applications directly from their vehicles. Paccar, parent company of Kenworth and Peterbilt, recently developed a new collaboration agreement with telematics and fleet management software company Platform Science to deploy its Virtual Vehicle open OEM platform, giving customers access to a customizable platform for digital applications. Jack Kennedy, co-founder and CEO of Platform Science, said the platform offers a broad suite of solutions that eliminate barriers to innovation, production and safety while allowing fleets to customize in-cab experiences. “Virtual Vehicle unlocks new ways for fleets to innovate with a platform that offers real-time insights and combines accessibility, flexibility and compatibility to ensure a driver-first experience,” Kennedy said. The Virtual Vehicle platform can benefit fleets with productivity, flexibility, accessibility and cost effectiveness. It increases productivity with factory-installed telematics hardware that allows fleets to maximize uptime by avoiding installation delays and costs for complementary hardware. The platform is flexible, allowing fleets to create a software experience catered to individual business needs through a growing pipeline of developer-created innovations. It's accessible with its edge, cloud and in-dash data that optimizes networks, keeping data available 24/7/365, even when fleets are offline. And users of participating applications on Virtual Vehicle benefit from usage-based billing, making it cost effective. The Platform Science ecosystem will eventually allow for third-party apps to be downloaded and managed remotely or directly on the truck interface, eliminating the need for costly and time-consuming after-market hardware wiring and installation. "The new services powered by Virtual Vehicle will leverage the existing connectivity capabilities of our heavy- and medium-duty truck platforms," said Bart Lore, senior director of PACCAR Global Connected Services. "Thanks to the new app ecosystem, Peterbilt vehicles will take a quantum leap in terms of uptime and integration to existing fleet management solutions." Via this collaboration with Virtual Vehicle, Peterbilt will build upon its SmartLINQ remote diagnostics system portal, and Kenworth will build upon its service management truck maintenance web portal TruckTech+. The new suite of services will launch in 2024 for Kenworth’s Class 8 T680, T880 and W990 models and medium-duty T180, T280, T380 and T480 models and for Peterbilt’s Class 8 models 579 and 567 and the medium-duty models 548, 537, 536 and 535. Multiple service packages will be available depending on the truck model and intended application. https://ift.tt/kpBY3Zj Trucking news and briefs for Friday, Jan. 27, 2023: Fleet seeks waiver to install pulsating brake lightsEncore Building Products, which operates a fleet of 24 trucks out of Springdale, Arkansas, is petitioning the Federal Motor Carrier Safety Administration for an exemption from the requirement that lighting devices be steady burning. The company wants to install a module manufactured by Intellistop that pulses the rear clearance, identification, and brake lamps from low-level lighting intensity to high-level lighting intensity four times in two seconds when the brakes are applied. FMCSA in October denied an exemption request from Intellistop itself for an industry-wide exemption that would allow the module on all trucks. The agency noted, however, that individual carriers could still seek an exemption for using the system. In Encore’s request, the company said the pulsating lights would “enhance rear signal systems” and “may significantly increase visibility and reduce the frequency of rear-end crashes.” Encore cited previous research from the National Highway Traffic Safety Administration that has shown pulsating brake lights appear “to significantly increase visibility of motor vehicles when decelerating and stopping, which should lead to significant reductions in rear impact crashes.” FMCSA is accepting public comments on Encore’s request for 30 days at www.regulations.gov by searching Docket No. FMCSA-2022-0242 beginning Friday, Jan. 27. FMCSA in 2020 granted a waiver to the National Tank Truck Carriers to allow fleets to install a red or amber brake-activated pulsating lamp in the upper center position or in an upper dual outboard position on the back of tanker trailers, in addition to the steady-burning brake lamps required by federal regulations. The waiver granted to NTTC allows any carrier using tankers to install the lights. The waiver is effective immediately and is good through Oct. 8, 2025. Electric terminal truck company expands into CanadaOrange EV, a manufacturer of battery-electric yard trucks, announced Wednesday it is expanding into the Canadian market, marking an international growth milestone driven by the strong financial and operational benefits of electric yard truck fleets. Demand continues to increase as the global trucking industry has come to understand that Orange EV’s trucks are better for operations as well as the environment, the company said. To head Canadian operations, Orange EV has hired global business leader Roberto Bragagnolo as its Country General Manager. He arrives at Orange EV after serving as GM of Finning, the world’s largest Caterpillar dealer, and previously spent two years with Export Development Canada involved in global trade across clean energy and advanced manufacturing. The company’s Canadian division, Toronto-based OEV Canada Inc., recently became operational, and in addition to providing vehicles for purchase, will be providing in-country service and parts support. “Orange EV has long anticipated this expansion in Canada, and with the company’s proven presence in cold-weather markets such as Minnesota, western New York, and already in Ontario, it’s a natural move that will benefit North American customers and the environment alike,” Bragagnolo said. [Related: Trucking goes electric without hitting the open road] Tallgrass Freight names new presidentFreight brokerage Tallgrass Freight Co. (TGF) has introduced the company’s new president, Sean Richardson, who brings more than 10 years of experience as a manager, freight broker and agency owner in the logistics industry. Richardson’s appointment as the company’s leader represents a new chapter for the Shawnee, Kansas-based freight agent network. “When Sean started as an agent, he was brought in just like every other agent,” said Founder and CEO, Damon Anderson. “But it was quickly evident that Sean was going to succeed and grow. He embodies the Tallgrass values so well.” Richardson worked his way up from freight agent to the Tallgrass VP of Growth and Development. “In my previous role as the Tallgrass VP, I worked with agents to establish development and growth strategies,” Richardson said. “Now moving to this new role, I will have a broader perspective with a focus on all departments, including, information technology, billing, collections, finance, claims and customer service.” His responsibilities as president will include oversight and leadership of all departments at Tallgrass, from freight agent recruitment through operations. https://ift.tt/YOrbmCw Net U.S. trailer orders reached 57,300 units last month – nearly 46% higher than November, 115% above December 2021 and the second highest month in 27 years, according to ACT Research. "From this standpoint, 2022 went out like a lion," said Jennifer McNealy, director of commercial vehicle market research and publications at ACT Research. “The year closed with 361,500 net orders placed, exceeding the previous year’s 249,400 level. Approximately 306,000 trailers were built in 2022, and our projections point to a continuation of that upward trend into 2023.” Discussions with OEMs over the last 30 days indicate the 2023 order book is still not yet fully open, despite OEMs expanding availability, McNealy said. "Supply-chain concerns still linger, with some manufacturers sharing that the situation for some parts has actually deteriorated and they see no short-term improvement in sight,” she said. "Regarding demand, most trailer makers continue to see demand exceeding capacity through the end of 2023; although, some have mentioned an erosion in confidence, but are also quick to note that this hasn’t appeared in the form of cancellations.” Trailer backlog levels are back above 200,000 units, increasing by another 17% last month, according to FTR, due to the surge in orders. December build was down another 8% month-over-month (attributable to downtime) but was up 17% year-over-year. Lower build and a jump in end-of-year factory shipments caused the inventory levels to drop by 18% month-over-month, according to FTR. Citing an ongoing moderation of Class 8 orders, FTR's Chief Executive Officer and Chief Intelligence Officer Jonathan Starks said the surge in orders is unlikely to be sustained going forward. "However, we have now seen more than 347,000 orders placed over the last 12 months, and backlogs are at their highest level in nearly two years," he added. "2023 is starting on solid footing even as the macro uncertainty remains extremely elevated.” https://ift.tt/YOrbmCw Covid, emissions regulations, new engine technologies, diversity in the workplace and the list goes on. Amy Boerger, Cummins vice president and general manager of on-highway for North America, has seen a lot of changes through her nearly 40 years at Cummins. As she prepares for retirement at the end of March, Boerger talked with Commercial Carrier Journal this week about some of the more memorable moments in her eventful career, which includes the distinction of becoming Cummins' first female engineer in product engineering and the first woman in her current role as an executive vice president at the 104-year-old company. Boerger, an EV owner, also talked of industry challenges amid a historic transition to zero-emission commercial vehicles. Boerger’s replacement, Jose Samperio, who will assume the role of executive director and general manager of on-highway for North America, also joined the conversation. When asked to recall some of the more impactful memories from her past 39 years at Cummins, Boerger didn’t toot her own horn as a historic ceiling breaker in an industry traditionally captained by men. Instead, the first thing she pointed to was a major challenge that will undoubtedly impact the industry for years to come. “I hate to say Covid, but talk about turning the industry on its ear,” Boerger said. “I talk supply chain and regulations about as much as I talk anything anymore. Some of that is actually because of Covid, especially the supply chain, but it's interesting how much has changed. It's almost easier to say what has stayed the same. And you could say what has stayed the same is that it's an industry focused on relationships.” And of course bolstering those relationships is Cummins’ long lineup of engines, some of which were in service before Boerger joined the company and remain hard at work four decades later. Boerger explained how Cummins’ assembly line in the early 1980s looked a lot different than it does today. “In our heavy-duty plant, we were making 400 N14s a day. We weren't really making L10s at that point. We weren't really making medium-duty engines, and we were manufacturing primarily for North America," she said. "So if I think about what's happened over the past 38, almost 39 years, good gosh, we've become so much more global. We've got an amazing product lineup.” Her favorite engine after nearly 40 years? The X15. “Having a product that's completely reliable, durable and functioning well for fleets, man is that fun," she said. "It's a tough time to leave Jose with all the fun of working with customers when all of that is running so well.” Boerger said while Cummins’ latest emissions-compliant engines can work just as hard and with less fuel than their counterparts from years past, there are still some challenges ahead for fleets as pressure grows to more closely analyze data for better fleet efficiency amid growing Environmental, Social and Governance (ESG) goals. “It's gotten more complicated when you think about managing the data they need in order to run their business that comes off the vehicles, but honestly, that's becoming easier as well,” Boerger said. “Their needs are maybe changing, but the product is evolving along with it.” What’s also evolving is the workplace where Boerger has seen diversity expand through the years. “If I look at the industry space over the last 25 years, diversity – whether it's female, Latino, Black – has changed tremendously,” she said. “It’s still not quite representative of the entire population, but I think obviously there are a lot of women now in the industry as well.” Boerger’s replacement, Jose Samperio, will assume the role of executive director and general manager for North America on-highway. Samperio has worked at Cummins for the past 20 years and currently serves as sales director for on-highway business in North and South America. “It’s quite an honor to be following in Amy's footsteps, that's for sure,” Samperio said. Looking aheadWith fleets facing growing pressure to cut emissions, both Boerger and Samperio talked of advancements the company has made in internal combustion technologies that have improved fuel economy and slashed emissions without compromising power.Like other OEMs, Cummins will continue to improve the nation’s ICE workhorses and sometimes in a bigger way than anticipated. Just this past September, Werner Enterprises announced its intent to buy 500 of Cummins’ X15H hydrogen engines when they become available. Both the X15H and a smaller 6.7-liter hydrogen engine are part of Cummins’ new fuel agnostic platform where each fuel type’s engine has largely similar components below the head gasket. The components above the head gasket will dictate fuel use during Cummins’ roughly 30-year journey to zero emissions, which will also include propane and gasoline variants. Samperio said interest in their hydrogen engines has been “very strong” and that demos are expected to roll out in the next two or three years. Cummins is also pursuing zero-emission all-electric and fuel-cell powertrains, though, as Boerger explained the road getting there has some fleets feeling uneasy about the transition. “I think a number of them are still concerned over infrastructure,” Boerger said. “I've got the same concerns from driving a fully electric car for the last two years. It’s a nice commuter car, but I'm glad I don't have to do work with it, and I'm glad I don't have to drive it for my business.” Boerger said Samperio’s ongoing work at Cummins’ New Power division and at the North American Council for Freight Efficiency (NACFE) where he serves on the board of directors continues to provide him with helpful insights into fleet perceptions of zero-emission vehicles. “When we go to customers and they ask us ‘Hey, is electric for me?’ or ‘Is hydrogen for me?’ we try to steer them away from those questions,” said Samperio, who serves . “Instead, why don't we start with the question on what are you trying to achieve. What are your goals? How do you operate? And then after we understand that, then we'll be in a better position to say (whether) this technology fits your operation a little better or ... that technology fits your operation a little better. That way, I think it allows us to just have a conversation more about what they’re trying to achieve rather than picking winners and losers.” Samperio' began working at Cummins as a product engineer at the Jamestown Engine Plant. He later became a service engineer and worked in distribution service shop operations. Samperio spent time in Beijing, China, as a leader launching new products followed by a role as general manager for Cummins Power Systems business in Latin America located in Sao Paulo, Brazil. He also served as the engine business strategy leader where his work has been vital in helping craft the long-term vision for the Cummins powertrain business with a heavy focus on technology roadmaps. In addition to his work with NACFE, Samperio also serves on the board of governors for the National Private Truck Council (NPTC) Institute, the American Transportation Research Institute’s (ATRI) Research Advisory Committee and the American Trucking Associations’ (ATA) Technology and Engineering Policy Committee. https://ift.tt/YOrbmCw Cullman, Alabama-based R.E. Garrison Trucking (CCJ Top 250, No. 124) announced this week it completed the acquisition of certain assets of Boaty’s Transport, located in Jackson, Georgia. Terms of the deal were not disclosed. Boaty’s Transport was founded in 1991 by Michael Boatwright and hauls produce throughout the southeastern U.S. The acquisition of Boaty’s will bring with it more than 50 tractors and 80 refrigerated trailers. “Boaty’s stood out to our Board of Directors because of their longstanding position within the produce industry and we are incredibly enthusiastic about Boaty’s joining the team,” said R.E. Garrison Trucking President and co-owner Wyles Griffith Within the upcoming months, Michael Boatwright will retire, while his son, Shaun, will lead Boaty’s daily business from its headquarters. "One of the things that excites me the most about this transition to Garrison is the fact that we will still maintain our small company feel while adding many additional benefits for our employees and clients," Michael Boatwright said. Boaty’s will continue to operate using its respective name and image under the R.E. Garrison family umbrella. https://ift.tt/YOrbmCw Trucking news and briefs for Thursday, Jan. 26, 2023: ATA truck tonnage up slightly in DecemberAmerican Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index rose 0.4% in December after decreasing 2.5% in November. In December, the index equaled 115.2 (2015=100) versus 114.8 in November. “Despite the small gain in December, for-hire truck tonnage clearly decelerated during the final quarter in 2022,” said ATA Chief Economist Bob Costello. “In fact, tonnage outperformed some other key metrics that drive truck freight, like housing starts and factory output during the final month of the year. This is probably because contract truckload freight is still outperforming the spot market and less-than-truckload freight after underperforming both of those sectors in 2021.” For all of 2022, tonnage was up 3.4%, which was the best annual gain since 2018. “Despite weakening in the second half, 2022 overall was a solid year for truck freight tonnage,” Costello said. “The index’s yearly gains were primarily driven by strength in the first half of 2022, so despite a marked slowdown as the year ended, for the year as a whole, tonnage posted a very solid year overall.” Compared with December 2021, the SA index increased 0.3%, which was the sixteenth straight year-over-year gain, but the smallest over that period. In November, the index was up 0.8% from a year earlier. The not seasonally adjusted index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment, equaled 112.6 in December, 1.8% below the November level (114.6). Shippers’ conditions jumped into positive territory in NovemberFTR’s Shippers Conditions Index (SCI) improved in November to 3.0 from the previous -0.3 reading. A more favorable freight environment and lower fuel costs boosted the index into positive territory after two months in the negative range. The fuel cost component remained slightly negative but improved sharply month-over-month while rates were the most favorable for shippers since June 2020. The outlook is solidly positive for shippers into 2024, FTR noted. “The outlook has improved overall for shippers, but it will depend on exactly what mode and lane they operate in, as to how much improvement they will feel in their business,” Todd Tranausky, vice president of rail and intermodal at FTR. “Truck-focused shippers are likely to experience the largest improvements relative to rail and intermodal shippers.” The Shippers Conditions Index tracks the changes representing four major conditions in the U.S. full-load freight market, including demand, freight rates, fleet capacity and fuel prices. The individual metrics are combined into a single index that tracks the market conditions that influence the shippers’ freight transport environment. Xcell Logistics opens new Texas warehouseXcell Logistics Services announced this week the opening of an additional warehouse in Laredo, Texas. Recently acquired by Dallas-based B.I.G. Logistics, the new facility located at 502 Nafta Blvd. will meet the growing demand for the company's logistics services in the region and further solidify B.I.G. Logistics' presence on both sides of the border offering critical north and southbound customs brokerage, transportation and warehousing services. B.I.G. Logistics, a SecurCapital Corp portfolio company, is a leading third-party logistics provider deploying a technology-enabled warehouse management IT platform in warehouses throughout Texas and Mexico with plans to open a Santa Teresa, New Mexico, facility later this year. "We are delighted to immediately expand our 3PL warehouse footprint in Laredo's crucial cross-border, high-demand market after our merger with B.I.G. Logistics,” said Cedric Sosa, Xcell Logistics Companies CEO. "We are in the right place at the right time. Year to date, Laredo represents 37% of trade by value between the U.S. and Mexico with a figure of $243.8 billion. For importers and exporters on both sides of the border, Xcell Logistic Corporation in Mexico offers wide coverage of existing offices in all major ports of entry enabling cross-border, single turnkey solutions for our USA and global customers." Jointly, the companies offer pharmaceutical-licensed, 3PL cross dock and temperature-controlled warehouses, fulfillment, transload, customs brokerage, and operate Foreign Trade Zone (FTZ) facilities, light manufacturing, and e-commerce services. The new combined companies offer complete lifecycle management of international and domestic air, ocean, ground, custom brokerage, and project cargo. Nikola receives order for 15 hydrogen fuel-cell trucksNikola Corporation announced that full-service logistics company Biagi Bros. plans to take delivery in the fourth quarter of 2023 of 15 Nikola Tre hydrogen fuel-cell electric vehicles (FCEVs) in Ontario, California. The FCEV trucks are expected to put in more than 100,000 miles per year to support round-the-clock operations. "These initial 15 Nikola Tre FCEVs are part of Biagi Bros. commitment to transition their fleet to zero-emissions," said Michael Lohscheller, Nikola's President and CEO. "In addition, the trucks will be fueled at the previously announced hydrogen station in Ontario, California." "Biagi Bros. has been successfully testing Nikola's Class 8 FCEV beginning in January of 2022," said Andrea Biagi, President of Biagi Bros. "After logging more than 12,000 miles, we are extremely pleased with the performance and specification of the trucks, and we are ready to move forward to officially build our zero-emission fleet later this year." Nikola recently announced that it has received a California Air Resources Board (CARB) Zero-Emission Powertrain Executive Order that is a requirement for the Nikola Tre FCEV to be eligible for CARB's Hybrid and Zero Emission Truck and Bus Voucher Incentive Project (HVIP) program. Upon final HVIP approval, purchasers of the Nikola Tre FCEV in 2023 may be able to qualify for California's state-based incentive valued at $240,000 per truck; $270,000 per truck for drayage fleets; or up to $288,000 per truck for fleets with 10 trucks or less, performing drayage operations, and located within a disadvantaged community area. Eligible non-drayage fleets may secure up to 30 HVIP vouchers and drayage fleets may secure up to 50 vouchers. In addition to the funding provided by HVIP, purchasers of Nikola's Tre FCEVs will also qualify for an additional $40,000 clean commercial vehicle tax credit in 2023 from the federal government due to the passage of the Inflation Reduction Act. With a range of up to 500 miles and an estimated fueling time of less than 20 minutes based on technology improvements, the Nikola Tre FCEV is expected to have among the longest ranges of all commercially available zero tailpipe emission Class 8 tractors while realizing weight savings when compared to BEV Class 8 trucks with similar range. The Tre FCEV is well-suited for a variety of applications ranging from drayage and intermodal to metro-regional truckload and less than truckload to certain specialized hauling use cases. https://ift.tt/YOrbmCw Inflationary challenges bundled with carriers running fewer miles due to reduced demand create conditions where drivers become fixated on pay and are more susceptible to be persuaded by the recruitment efforts of other carriers that promise better wages. Nearly a quarter of all respondents (23%) to CCJ's most recent What Drivers Want survey of company drivers and leased owner-operators said they would raise pay if they were in charge of a fleet and could do one thing to attract and retain drivers. Another 18% said they would guarantee pay, loads or mileage to make take home pay more predictable. However, only a combined 10% listed not making enough money (9%) and a lack of loads and miles (1%) as the one thing they dislike most about their job, and that could be because just more than half (52%) of respondents said their carrier had raised pay at least twice since 2020. Another 10% said pay had gone up three times or more. Compensation landed at the No. 3 spot on the American Transportation Research Institute's (ATRI) 18th annual Top Industry Issues report among commercial drivers and No. 4 overall, dropping one spot from the year before, ATRI President Rebecca Brewster said, thanks mostly to the cost of fuel getting so many votes. While pay itself wasn't necessarily high among drivers' current problems, respondents to CCJ's What Drivers Want survey did – by a wide margin – cite pay as the top reason fleets have a hard time finding drivers: 62% said fleets don't pay enough. Second, at 56%, was a lack of respect for drivers and the job they do, or failure to treat them as part of the team. Lack of home time (50%) was third. Pay is understandably a large theme in when and why drivers leave a carrier, but more broadly it is often just a straw – one of many – teetering on the proverbial camel's back. Through September 2022, of the 3,447 comments categorized as “urgent,” pay was once again the top critical theme, accounting for 20.2% of all critical feedback received through the WorkHound platform. There were four months (April, June, July, and August) where pay accounted for more than 25% of all critical comments, according to WorkHounds most recent Trends and Pay Report. Of all critical pay comments, only 26.6% of drivers cited pay as their sole reason for leaving, suggesting that pay is not the ultimate dealbreaker in a job change, rather it tends to be a factor that can be exacerbated when other issues arise. "It's not always an amount issue," WorkHound CEO Max Ferrell said, noting that issues like truck parking, detention and speed limiters, for example – three of drivers' top 5 concerns per ATRI – all directly influence driver pay. Data compiled by PDA from thousands of phone calls with professional truck drivers during the fourth quarter of 2022 showed that to close the year, compensation issues were drivers' top driver concern – the first time since PDA began collecting driver feedback data nearly 5 years ago that an issue other than equipment has been the top driver complaint. However, drivers complaining about their rate of pay dropped for the second consecutive quarter, decreasing nearly 10% from Q3 to Q4, and are down nearly 13% since Q1 of 2022 – a clear indication that pay rates are not the problem, rather its the lack of miles causing driver frustration with pay. Indeed, complaints of mileage were up almost 14% from the beginning of last year to the end. There are a number of factors that influence driver frustration and pay over which fleets have little control, namely equipment and logistics. Equipment issues aren't solely related to downtime and include issues in trailer availability and tractor speed. Logistics reflects the variable nature of loaded miles and includes problems at shipper/receiver facilities. To offset the things carriers have difficulty controlling, Ferrell suggests going all-in on the things within grasp, like communicating of how a pay plan works and respect as many drivers across WorkHound's platform cite issues like favoritism, attitude or other adverse treatment as a reason they want to leave. "The collective sentiment that we get that drivers want to have their voice heard is overwhelming," Brewster said. https://ift.tt/YOrbmCw Trucking news and briefs for Wednesday, Jan. 25, 2023: Three states issue hours waivers over propane shortagesGovernors in Nevada, South Dakota and Wyoming each recently issued emergency declarations related to propane shortages, waiving hours of service regulations for drivers hauling propane. Nevada Gov. Joe Lombardo issued a proclamation Jan. 23 waiving Part 395.3 (maximum driving time) of the hours of service regulations through Feb. 1 due to Nevada continuing “to suffer from a propane shortage which impacts the ability for people and businesses to heat homes and power essential government and business equipment.” The proclamation added that “extreme weather conditions are anticipated to continue, and Nevada’s propane shortage remains critically low.” South Dakota Gov. Kristi Noem’s declaration waived Part 390-399 of the federal regulations through Feb. 18. “Drivers of propane transport vehicles are required to deliver propane necessary to maintain the supply of this product in order to enable the people of South Dakota to continue normal heating functions,” the declaration stated. Finally, Wyoming Gov. Mark Gordon issued a declaration Jan. 20, effective through Feb. 19, that waives Part 395.3 of the regs. Gordon said Wyoming citizens “are faced with low supplies of propane with which to heat their homes and businesses.” Iowa overweight waiver extendedIowa Gov. Kim Reynolds on Jan. 20 signed a proclamation that extends a waiver allowing truck drivers hauling grain, fertilizer and manure to haul up to 90,000 pounds. The overweight waiver extension is effective through Feb. 19 and allows vehicles transporting corn, soybeans, hay, straw, silage, stover, fertilizer (dry, liquid, and gas), and manure (dry and liquid) to be overweight (not exceeding 90,000 pounds gross weight) without a permit for the duration of the proclamation. General Truck Sales earns Certified EV Dealer designation from Volvo, MackMack Trucks and Volvo Trucks dealer General Truck Sales recently completed the stringent requirements to become a Mack Certified Electric Vehicle (EV) Dealer at its Toledo, Ohio location and a Volvo Certified EV Dealer at its Toledo and Pendleton, Indiana, locations. The designation means General Truck Sales will now be able to service and support the Mack LR Electric refuse vehicle and the Volvo VNR Electric. General Truck Sales is Mack’s first Ohio location to be a certified EV Dealer and Volvo’s second, while the Pendleton, Indiana, location is Volvo’s first certified EV dealer in Indiana. General Truck Sales is a four-time Volvo Trucks Dealer of the Year award recipient and is continuing that tradition of excellence by ensuring its sales teams are fully trained to consult with customers that are considering investing in any of the Volvo VNR Electric model and Mack LR Electric configurations. Additionally, the dealer’s service team has two technicians at each location that have been fully trained and equipped to safely perform battery-electric truck maintenance and repairs for trucks in operation. General Truck Sales also has a 50kW electric vehicle charger at each location with multiple outlets to provide flexibility in charging locations. Midwest Carriers increases driver payTruck drivers at Midwest Carriers will see bigger paychecks in 2023 with a 5% pay increase. The average over-the-road driver at Midwest will earn $95,539 this year, with the top 50% of drivers to earn an average of $101,388. The increase took effect Jan. 1. The local fleet drivers will see an hourly wage increase of 5% as well, bringing the starting wage as high as $26 per hour. Local fleet drivers are also paid overtime wages for hours worked over 40 in the work week, bringing the overtime wage as high as $39 per hour. Midwest Carriers also increased the cents per mile paid from 65 cents to 70 cents for miles driven over 2,400 in a work week. That is in addition to the weekly flat rate minimum wage that Midwest drivers earn each week. "Truck drivers deserve to be adequately compensated and valued for their hard work,” said Eric Van Handel, President at Midwest. “At Midwest Carriers, we believe in recognizing our drivers with a competitive salary and full benefits. That’s a large reason why our turnover rate is much lower than our competitors – we’ve got a driver-focused culture and our compensation reflects that.” The pay increase pairs with an 18% decrease in healthcare premiums for drivers in the new year, costing just $49 per week for employee-only coverage. The coverage is offered alongside other benefits provided to Midwest Carriers employees, including dental and vision insurance, company paid short-term disability and life insurance, matching 401(k), paid vacation and regularly scheduled home time. https://ift.tt/ZCwFks3 In the last two years, trucking companies have had to answer a wide range of questions about how they operate — from mask mandates and driver protections to information about zero contact delivery and creative solutions to in-home installations. These questions are now essentially answered, with best practices established. However, they have been replaced by a new wave of queries having to do with location, sustainability and labor. Carriers must be aware of these new questions and have solutions to remain desirable to the modern shipper. Where’s my stuff?The global pandemic created a reset moment for companies operating sophisticated supply chains. Getting through the most challenging moments of COVID-19 required tremendous ingenuity, and new approaches were established across the board. One of the most significant shifts came from how warehouses utilize their staff. As leaders, were forced to do more with less. This emphasizes the value of location data, which allows warehouse and distribution center leaders to prepare for the exact moment a shipment arrives. Instead of requiring a driver to idle at a particular gate, the idea is to have receiving teams available when goods become available to unload. Taking it a step further, many warehousing facilities even schedule employee lunch times around ETA to maximize productivity. To meet these needs, trucking companies must offer real-time track and trace options, whether that’s provided through a transportation management system (TMS), a geo-fencing solution, or even simple SMS solutions that can ping a driver’s phone to identify location. The value of location data isn’t limited to warehouse leaders. Today’s top shippers want to offer real-time updates to their customers on when a load will arrive. How can we make it greener?It’s not news that trucking and transportation are ultimately bad for the environment. What is more relevant, however, is a coming set of regulations that will require companies to disclose their carbon emissions. The Securities & Exchange Commission (SEC) will soon ask public companies to put their carbon emissions in their earnings statements, which are legal documents. CFOs at major organizations will be required to provide accurate information in these reports or risk jail time for presenting to their investors. This line of questions will trickle down to trucking companies, and carriers must prepare to offer this information in detail. It will likely start with how much fuel was utilized but will ultimately focus on several factors, including idling time, miles per gallon and more. How are you handling labor?The trucking landscape is changing dramatically. A prominent example of this is Assembly Bill 5 (AB 5) in California, which is altering traditional trucking models, especially the tri-lease model in which a driver leases their vehicle to a carrier and operates under the carrier’s authority. In addition, several other states are looking at adopting some version of this statute. But shippers aren’t just questioning worker classification. A separate legal decision by the Supreme Court has opened the door for freight brokers and companies who are outsourcing some capacity to establish prudent hiring practices that limit the risk of an accident. The prevalence of nuclear verdicts and newfound liability that can be passed across stakeholders is pushing today’s biggest shippers to insulate themselves from risk, meaning transportation companies must prepare to address and alleviate these concerns. What’s next?When it comes to the logistics world, the one constant is change. The most progressive shippers will continue to iterate their supply chains, striking the right balance of safety inventory and increasing productivity while maintaining a consistent headcount. This means there will always be new demands placed on trucking companies. Carriers that can confidently answer questions about labor, sustainability and location will be the most desirable for shippers moving forward. Mike Bush is the Head of Comms & Brand at NEXT Trucking, a FreightTech pioneer and drayage leader connecting some of the world’s largest shippers with carriers. He has nearly 20 years of experience in supply chain, logistics and transportation. Connect with Mike on Twitter: twitter.com/mikebush. https://ift.tt/ZCwFks3 |
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April 2023
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