The trucking industry has been carrying a significant portion of blame for supply-chain issues that continue to affect stock on American shelves, but industry experts say a truck driver shortage isn’t one of the underlying causes. Priyesh Ranjan, CEO of Vorto, which recently launched an app called 5F that aims to minimize driver downtime, among other things, said there is no driver shortage, just poor driver utilization that has resulted in low pay and inconsistent work, causing drivers to flee the industry. “When we looked at our data, we realized there is no driver shortage in America; there are only inefficiencies. The reason trucking is not a lucrative industry for drivers, especially the next generation, is there's so much idle time,” Ranjan said. “So our AI is only focused … on how to increase the loads per day per driver.” The company is banking on artificial intelligence to revolutionize the shipping industry and make commercial driving a more attractive career option. “It's driving efficiency by solving something that is too complex for human beings to solve,” Ranjan said. “AI will be part of the fabric in every part of the supply chain … It's that level of dynamic and speed of decision making that is needed in order to drive the efficiencies and not have the driver shortage.” The 5F platform serves five areas, but Ranjan said it is focused on one “North Star,” and that is maximizing the utilization rate and earnings for drivers. 5F automates the overhead costs of a trucking company, which means it can pay drivers 92.5% to 95% of the load price versus the industry standard of 75% to 80%. The app increases drive time and decreases idle time by connecting drivers with shippers and handling billing and payments through the platform. Ranjan said drivers can go from driving only about six hours a day – the rest of their time is spent idling, doing paperwork or driving empty – to working 10 or 11 hours, boosting their revenue. They can also use the app to select loads based on geography. With 5F, deadhead and idle time is reduced from 50% to 10%, the company said. “By maximizing the driver’s utilization rate and income with AI, we are able to reduce driver churn and provide stable and lower cost freight to shippers,” Ranjan said. “We have been able to move the same amount of freight with up to 60% less trucks by reducing deadhead and idle time for drivers.” The 5F app isn’t used by drivers alone. It includes five different platforms for five different users. “We sat down and we kind of deconstructed the trucking industry into those five pieces,” Ranjan said. “We oftentimes struggle to explain it because people think it's maybe a digital load board like Uber Freight or … it could just be like a matchmaking thing. It's basically an end-to-end ecosystem of trucking.” With the app, shippers and brokers can automatically dispatch loads, make payments, view the live status of shipments and view their acceptance rate. It gives owner-operators access to drivers and equipment, dispatching and an invoice and billing system that provides payments the next day. Asset owners can join the 5F network and lease their assets, like trailers, through the app. Yard and maintenance owners can also join the network – an Airbnb concept that allows drivers to drop trailers at any 5F yard and pick up another trailer and keep moving. The transaction is done entirely through the app. Ranjan said it also serves like a LinkedIn for drivers, matching them with owner-operators. The app launched last year and already has around 40,000 users. Denver-based supply chain and distribution center management company UChain Group Inc., also recently launched an app to help improve driver downtimes. Though not based on AI, its FreightSmith software also connects drivers and shippers, offering time-saving features like mobile check-ins and mobile payments for freight deliveries. “There's this big black hole between when a driver arrives at a receiver and when they depart,” said Tim Wells, senior director of strategy for FreightSmith. “So the idea around the FreightSmith digital solution was how do you create visibility and communication through the whole gate-to-gate arrival to departure process. How do you make it so there's clear communication and the ability for a driver to operate within their workplace or within the cab versus getting in and out of their cab, not understanding what's happening, being able to pay for the unloading component, as well as being communicated to so that they know exactly where they're at in the process? The solution is designed to take out all that waste and speed up the entire receiving process.” He said FreightSmith provides visibility into the milestones of the process. The free app sees the driver through check in, door assignment, payment and departure. It allows drivers to verify who they are upon arrival and fill out any paperwork through the portal. They are then notified when a door is available to drop their load. The app provides alerts that a payment is due, and payments can be processed through the app. If a driver doesn’t have the authority to make payments, their dispatcher can access the web portal and pay on behalf of the driver. Wells said the goal of the app is to reduce driver downtimes and resolve supply chain issues, but it was originally developed with driver safety in mind as they often walk in high-traffic areas. “I would say first and foremost, the solution is focused on personal safety,” he said. “Secondly, is to reduce the time it takes on activities through the gate-to-gate process, so driver uptime, keeping drivers on the road, and (provide) a better driver experience so the drivers actually enjoy the unloading process.” Next up for FreightSmith, Wells said, is developing a pre-check process away from the delivery site to reduce inbound congestion and allow drivers to park safely in an alternate location and receive a notification on the app when the receiver is ready. For Vorto, Ranjan said 5F’s next focus is on creating “tours” in which a driver can provide their current location, specify where they want to go next, and the app automatically builds a sequence of loads to get them where they want to go. https://ift.tt/k3uwohT
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Trucking news and briefs for Wednesday, Feb. 23, 2022: Trucking groups call on DOT for more truck parkingDemonstrating the importance of issue to the trucking industry, the American Trucking Associations and the Owner-Operator Independent Drivers Association penned a joint letter to U.S. Transportation Secretary Pete Buttigieg asking the U.S. DOT for assistance in addressing the nationwide shortage of truck parking. The groups said the lack of parking “decreases safety for all highway users, exacerbates the industry’s longstanding workforce challenges, contributes negatively to driver health and well-being, diminishes trucking productivity, and results in unnecessary greenhouse gas emissions.” The letter cites DOT’s most recent Jason’s Law Report, which demonstrated that the parking issue is continually getting worse. The 2019 report, the groups said, found that 98% of truck drivers regularly experience problems finding safe parking – an increase from 75% in the 2015 report. The full report has not yet been fully released, and the groups asked that Buttigieg expedite that process. “Ultimately, the pervasive truck parking shortage can be explained with simple math – there are about 3.5 million truck drivers in the United States and approximately 313,000 truck parking spaces nationally; for every 11 drivers, there is one truck parking space,” the groups said. The letter outlines several issues the lack of parking causes, including hours of service limits forcing drivers to park in unsafe or illegal areas or to violate HOS regulations to find safe, legal parking; drivers not having access to restrooms, food and well-lit facilities; a decrease in driver productivity, causing reduced driver pay and higher operating costs; and more. ATA and OOIDA asked Buttigieg to educate state and local governments about grants available to them through the Infrastructure Investment and Jobs Act that would increase funding for truck parking expansion. “If the USDOT prioritizes the expansion of truck parking capacity and makes significant progress toward that effort, drivers will be safer and healthier, fleets will be more productive, the trucking workforce will be more resilient, and trucks will reduce their fuel needs and emit fewer emissions into the environment,” the letter concludes. “All of these benefits would be passed on to the average American in the form of lower prices, greater availability of goods, and a cleaner planet.” Volvo expanding U.S. Uptime CenterThe Volvo Group announced this week a $41 million investment in North Carolina’s Piedmont Triad to purchase and expand the building housing its U.S. Uptime Center, which will now also serve as the new global headquarters for Volvo Financial Services (VFS). The expansion of the building, which is about two miles from VFS’ currently leased location, will bring about 360 VFS colleagues onto Volvo Group North America’s campus. The announcements were made during a groundbreaking ceremony by Martin Weissburg, Volvo Group North America (VGNA) chairman and Mack Trucks president, and Marcio Pedroso, Volvo Financial Services (VFS) president at VGNA’s Uptime Center. “The Uptime Center is a strategic site for Volvo Group North America, playing a critical role in keeping our customers and their vehicles on the road, delivering goods, transporting people and servicing communities throughout the year,” Weissburg said. “Our purchase and expansion of this facility reinforces our commitment to the great communities and residents of the Piedmont Triad, and we look forward to welcoming Volvo Financial Services to our campus.” Volvo Group’s investment includes the acquisition of the Uptime Center building, which opened in 2014 and was previously leased by the company, as well as a 62,000 square-foot (5,800 square meters) expansion of the Uptime Center to house Volvo Financial Services’ global headquarters. At project completion, the facility’s new three-story footprint will be about 185,000 square feet (17,150 square meters), connected by a glass atrium and two upper-level walkways. Cargo Transporters raises OTR driver payCargo Transporters (CCJ Top 250, No. 170) announced Tuesday the largest driver pay increase in its 40-year history. The increase is effective Feb. 27. The pay increase will touch all over-the-road drivers, solo and team. The company will increase solo driver pay by 6 cents per Rand McNally practical mile on all dispatched miles, increasing starting base pay to 60 cents per mile. Team driver pay will increase 3 cents per mile on all dispatched miles. A solo driver choosing the "All-In" pay option will start at 67 cents per mile. In January, the company increased its Paid Time Off (PTO) package, and new employees start with the opportunity to earn three weeks of PTO. "This is the largest, single increase in OTR driver pay the company has made since its start in 1982," said John Pope, Chairman. "We ask these drivers to sacrifice time at home with their family, uphold a high level of safety, fuel and maintain equipment, care for freight and dozens of other tasks. We are proud to offer this level of compensation for those that are the best in class in their profession.” Reefer carrier boosts driver payAlbertville, Alabama-based B&G Supply Co. is implementing the largest comprehensive pay and compensation increase in its history, the company announced Feb. 21. The carrier said every over-the-road and regional company driver will receive a cents-per-mile-bump beginning March 1. After announcing a substantial increase in 2021, the company is raising pay once again and will now be compensating drivers 50 cents per mile paid weekly with a quarterly bonus program giving them the potential to earn 55 cents per mile and four extra pay checks a year. "B&G drivers have been nothing short of remarkable over the last few years through some challenging times in the transportation industry," B&G Operations Manager Jimmy Floyd said. "They've stepped up to the plate every time they've been asked to help keep stores stocked and food on the shelves across the country." https://ift.tt/Sk82sFB The trucking industry, like so many others, has been battered by the effects of COVID-19. And, because trucking is considered an essential service, drivers have been hit especially hard, working around-the-clock to meet the growing demand of delivering urgently needed goods throughout the country. Today’s truck drivers must find a way to satisfy their increasing workloads while also preserving their health, as they man the front lines to handle supply chain disruptions and emergency delivery needs. It’s a delicate balancing act that needs to be addressed now and in the post-pandemic era. Pressed to the limitsSo, what’s changed for the trucking industry since the pandemic struck in early 2020? In short, a lot. Prior to COVID-19, commercial truckers had to observe stringent regulations enforced by the Federal Motor Carrier Safety Administration (FMCSA). However, to deliver relief to businesses desperately in need of essential supplies during the outbreak, it became clear that certain trucking regulations needed to be modified, even if just temporarily. With the economy taking a huge hit, emergency declarations were enacted by government officials, including the President of the United States, to ensure the timely transport of vital supplies like food, medical equipment and basic consumer provisions. One such declaration was the easing of Hours of Service (HOS) rules. Originally established to improve working conditions for America’s commercial truckers, these rules and regulations helped pave the way for greater safety on the nation’s roadways. According to the FMCSA, Hours of Service refers to the maximum amount of time drivers are permitted to be on-duty including driving time. It also specifies the number and length of rest periods to help ensure that drivers stay awake and alert. In general, all carriers and drivers operating commercial motor vehicles must comply with HOS regulations. However, the onset of COVID gave FMCSA little choice but to add some leeway to these long-held rules. Back in June of 2020, the FMCSA revised four provisions of HOS regulations to allow for greater flexibility for drivers without negatively affecting public safety. These changes officially went into action Sept. 29, 2020 and are still being implemented today. So, what exactly has changed? To address the supply chain issues brought on by the pandemic, certain exceptions/modifications have been made to the following provisions: • Short-haul Exception: Expands the short-haul exception to 150 air-miles and allows a 14-hour work shift to take place as part of the exception. • Adverse Driving Conditions Exception: Expands the driving window during unfavorable driving conditions up to an additional two hours. • 30-Minute Break Requirement: Requires a break of no less than 30 consecutive minutes after 8 amassed hours of driving time (instead of on-duty time) and allows an on-duty/not driving period to qualify as the mandatory break. • Sleeper Berth Provision: This provision modifies the sleeper berth exception to allow a driver to meet the 10-hour minimum off-duty requirement by spending at least 7 hours of that period in the berth. This is combined with a minimum off-duty period of at least 2 hours spent inside or outside the berth, provided the two periods total at least 10 hours. FMCSA's COVID-19 emergency declaration, which waives Part 395.3 (maximum driving time) of the Federal Motor Carrier Safety Regulations for carriers providing emergency relief related to the pandemic, expires at the end of this month. HOS regulations have served a critical safety purpose for decades. They lessen the number of fatigued commercial truckers on the country’s roadways. However, some of the regulations may have led to slower transportation times during the pandemic. By allowing for these few exceptions and modifications to HOS rules, a balanced approach was achieved — one that addressed the need for timely delivery, and one that continued to promote safety on the nation’s roads. Time will tell whether these exceptions to HOS regulations will have any impact on trucking accident statistics. It should be noted that in the year prior to COVID-19, commercial truck-related accidents were on the rise. According to the National Highway Traffic Safety Administration (NHTSA), in 2019 just over 118,000 large trucks were involved in crashes across the United States resulting in an injury — a 5% jump from the previous year. In the state of New York alone there were a total of 21,135 accidents involving large trucks in 2019 according to the New York DMV. Of those accidents, 4,275 involved personal injuries while 80 were fatal. Looking aheadAs the pandemic continues to affect the transportation of goods throughout the world, the trucking industry must find ways to adapt – not only keep up with growing consumer demands, but also ensure the health and safety of its drivers and the public. Despite the many hurdles commercial truckers have encountered over the past two years, the future of this vital transportation industry should be bright as things continue to gradually improve. If nothing else, the COVID-19 pandemic has helped to shed more light on the essential role that trucking has in ensuring as many people as possible have access to the most critical supplies they need to survive.
https://ift.tt/HVWGxzy Mega telecommunications company AT&T began the sunset of its 3G network Feb. 22 at which point modules and devices that request 3G voice and data-only services from the AT&T network will no longer work – a wind down that will affect more than 350,000 Class 8 vehicles. AT&T and Verizon began the rollout of 5G wireless services Jan. 19. The deployment of the 5G network offers faster speeds and broader range, but according to global technology intelligence firm ABI Research, the sunset of 3G will further affect the already strained supply chain. "It is entirely likely that many fleets that have not yet transitioned will be unable to purchase, remove and replace devices prior to February 22,” said Susan Beardslee, supply chain and logistics principal analyst at ABI Research. “This will result in serious compliance, safety, vehicle health and operational capability challenges to an industry that moves roughly 72.5% of the nation's freight by weight and during a time of rolling, crucial shortages of consumer and business products." ABI said in a news release that options for carriers late to update to 4G-compliant equipment include a temporary ELD exemption from the Federal Motor Carrier Safety Administration (FMCSA) as they did for pandemic-related needs. Longer-term, as connectivity and ADAS advance, more telematics will come factory/line-fit/OEM-grade with the unit pre-installed. Future scenarios to consider are modular hardware designs and hardware upgradeability, eSIM software and greater inventory planning in advance. For now, telematics and other IoT connected devices will no longer function as needed unless they have 4G and higher capability. "Essentially, when the devices no longer function, drivers cannot digitally track their hours of service. Considering that driver fatigue tops the list of road dangers, this sunset severely impacts ELD compliance and road safety," Beardslee said. Telematics companies have been working toward the shift in recent years as Verizon stopped accepting new 3G-CDMA subscriptions to its network after June 30, 2018, and AT&T blocked new 3G-GSM activations in 2019. While some providers have the resources to redesign products to align with available product, many have allocation challenges and six-month lead times from their suppliers, Beardslee said. And that leaves thousands of vehicles in the dark after sunset. As companies transition, any long-haul truck that relies on 3G technology, which is mandated to record and monitor driver’s hours of service, will become non-compliant with FMCSA rules. It will also impact cross-border trade with Canada and Mexico as both countries have delayed their 3G sunsets to mid-decade. Mexican and Canadian fleets using current AT&T 3G devices will no longer be able to transmit or receive data between drivers and dispatch if they enter the U.S. after Feb. 22. "Let's hope that when an inevitable 4G shutdown occurs in the future, telematics companies and fleets will be better prepared," Beardslee said. 3G was first introduced in the U.S. two decades ago and its shutdown unlocks space on the broadband spectrum for 4G and 5G. https://ift.tt/HVWGxzy Cummins on Tuesday morning announced it plans to acquire Meritor – a Troy, Michigan-based supplier of drivetrain, mobility, braking, aftermarket and electric powertrain solutions for commercial vehicles. The two companies have entered into a definitive agreement under which Cummins will pay $36.50 in cash per Meritor share – a total of approximately $3.7 billion. Meritor CEO and President Chris Villavarayan called the acquisition “transformational," adding "we could not be more excited.” Cummins Chairman and CEO Tom Linebarger called the acquisition of Meritor "an important milestone for Cummins," adding "the addition of their complementary strengths will help us address one of the most critical technology challenges of our age: developing economically viable zero carbon solutions for commercial and industrial applications."Cummins Cummins recently has been on the hunt for acquisitions in the emission-friendly space, having in 2019 closed a deal to acquire fuel cell systems provider Hydrogenics and earlier this year picked up a 50% interest in Momentum Fuel Technologies, a natural gas (CNG) fuel system solution for Class 6-8 vehicles co-owned by Rush Enterprises. Cummins this month also acquired Jacobs Vehicle Systems – the grandfather of the Jake Brake – bringing onboard its engine braking and cylinder deactivation technologies. “We think we can be at the table now for pretty much every negotiation for who’s going to supply what,” Linebarger said as it relates to emission reduction strategies and components. Cummins and Linebarger are proponents of eAxles like Meritor's 12Xe, 14Xe and 17Xe ePowertrain, seeing them as a critical integration point within hybrid and electric drivetrains, and by accelerating Meritor’s investment in electrification and integrating development within its New Power business, Cummins expects to deliver market-leading solutions to global customers. "That allows Cummins to think about whole systems and components much the way we’ve been thinking about it from an engine point of view,” Linebarger said. "The eAxle becomes the new engine block where you start to hook all the components to." In the meantime, Meritor's product suite will allow Cummins to offer a fully integrated powertrain – from the engine, to the transmission to the axles. Meritor, an industry leader in axle and brake technology, also adds products to Cummins' components business that are independent of powertrain technology, "and by leveraging our global footprint we expect to accelerate the growth in Meritor’s core axle and brake businesses," said Linebarger. The transaction, already unanimously approved by Meritor's Board of Directors, is expected to close by the end of this year. https://ift.tt/HVWGxzy Cummins on Tuesday morning announced it plans to acquire Meritor – a Troy, Michigan-based supplier of drivetrain, mobility, braking, aftermarket and electric powertrain solutions for commercial vehicles. The two companies have entered into a definitive agreement under which Cummins will pay $36.50 in cash per Meritor share – a total of approximately $3.7 billion. Cummins Chairman and CEO Tom Linebarger called the acquisition of Meritor "an important milestone for Cummins," adding "the addition of their complementary strengths will help us address one of the most critical technology challenges of our age: developing economically viable zero carbon solutions for commercial and industrial applications."Cummins Cummins recently has been on the hunt for acquisitions in the emission-friendly space, having in 2019 closed a deal to acquire fuel cell systems provider Hydrogenics and earlier this year picked up a 50% interest in Momentum Fuel Technologies, a natural gas (CNG) fuel system solution for Class 6-8 vehicles co-owned by Rush Enterprises. Cummins this month also acquired Jacobs Vehicle Systems – the grandfather of the Jake Brake – bringing onboard its engine braking and cylinder deactivation technologies. Cummins is a proponent of eAxles like Meritor's 12Xe, 14Xe and 17Xs ePowertrain, seeing them as a critical integration point within hybrid and electric drivetrains, and by accelerating Meritor’s investment in electrification and integrating development within its New Power business Cummins expects to deliver market-leading solutions to global customers. In the meantime, Meritor's product suite will allow Cummins to offer a fully integrated powertrain – from the engine, to the transmission to the axles. Meritor, an industry leader in axle and brake technology, also adds products to Cummins' components business that are independent of powertrain technology, "and by leveraging our global footprint we expect to accelerate the growth in Meritor’s core axle and brake businesses," said Linebarger. The transaction, already unanimously approved by Meritor's Board of Directors, is expected to close by the end of this year. https://ift.tt/HVWGxzy Brown Bear Transportation, the transportation division of Roberts Energy, has acquired Abenaqui Carriers, a North Hampton, New Hampshire-based petrochemical hauler. Roberts Energy, is one of the largest direct fuel suppliers and petroleum common carriers in the Northeast and the acquisition further expands its reach. Brown Bear Transportation – a division of Roberts Energy – is a common carrier that delivers petroleum products across the northeast lifting out of Springfield, Boston, New Haven, Providence, Albany, Portland and Montreal, Canada. “Our goal is to provide Abenaqui customers with the latest conveniences and technology while maintaining the personal relationships and high level of service.” said Roberts Energy President Frank Roberts. “We look forward to incorporating the specialized carrier services Abenaqui has to offer into our other markets across New England.” Abenaqui Carriers has 100 employees and has served the northeast region since 1973. The family-run company will maintain its name and will continue business with existing processes in place. Spencer Tenney, CEO of Tenney Group, who advised the seller on the transaction, noted the petroleum market in the Northeast is challenging dur to the weather, metropolitan complexities and other variables, adding “This is a win for all parties and a great example of how family-owned carriers can both exit and protect their company legacy and employees." https://ift.tt/ycqh6eO Figuring out how to balance online, classroom, yard practice and on-road coaching can be tricky, but getting it right can have a huge impact on safety and driver efficiency. That said, before we dive into how different training tools work best together or separately, it’s important to take a step back and highlight scenarios we often see where fleets try to resolve a safety issue through training, when the issue at hand requires another form of action. While training can help improve a driver's particular set of driving skills, best practices for doing their job, or general education, certain issues – like driver behavior or problems in operations they may encounter – require another approach. If there’s an issue with driver behavior – for example, a driver that is repeatedly involved in speeding events – you need to ask yourself, "Why does that person continue to speed?" Is it a bad habit or an awareness issue? Does the driver feel compelled to make up for lost time after sitting in traffic or catch up due to delays with a shipper? If you don't figure out the "why" behind the action, you might not be able to identify the best approach to resolve the issue. In the case of re-occurring speeding, assigning remedial training alone likely won’t solve the issue. Repetitive behavior may indicate other underlying issues in the business that need to be improved to reward best safety practices. If there are issues that relate to drivers following a specific policy, investigate why. Have you communicated the policy and can people understand it? Is it a widespread issue? Policy documents are not training, they are a list of rules to abide by. But people mix the two often. Such questions can pinpoint your potential problems, which can help you decide if training is necessary. People are less likely to follow policies if it’s unclear as to why they need to follow them in the first place. If those expected to follow a specific policy don’t understand the reasoning behind it, and if there is no good reason or answer for its mandate, should the policy in question even exist? Or does it need to be revised? By determining the issues you’re trying to solve, and whether it requires a change in training practices (or other forms of communications or operational practices) you’re in a better position to resolve the problems at hand. When it comes to driver training, it’s better to not rely on just one course of action. A multimodal approach to solving the issue is more effective to gain traction and buy-in. Let's look at what each tool does well to get a sense of how best to use them in combination. Classroom trainingClassroom training works best when your content requires interaction, or when introducing something new. Group discussion in a classroom setting offers different points of view and perspectives. Trainers can easily figure out how people feel in a way that online questions or surveys cannot. Online trainingOnline training is good for figuring out the “why” part of the job, and for things that can't be touched or practiced in the yard. Additionally, it is an ideal solution for covering introductory topics, rolling out new technology, or a new concept for classroom training that might be planned for another time. It’s also useful to cover the human resources or regulatory side of trucking; like why a particular rule is being put into place, and what certain terms mean. It is a great option to outline the various steps and processes drivers need to go through. Practical trainingMuch of what is taught in the classroom that concerns equipment is better suited for the yard. Even with visual aids, understanding the mechanical functions of equipment can prove to be difficult, especially in a large group setting. The solution is to convert classroom lectures into online training and reassign experts to the yard for providing more personalized demonstrations. Some people don't truly learn until they go through the practical aspect, regardless of how well they do on a test or how attentive they are in class. Best practices for combining different methodsHolistic multimodal training is about integrating as many modes of training into your overall training plan. The more involvement across a company, the better the learning experience for everyone. A best practice is to provide the same training to office staff and the drivers so that if an employee doesn't understand something, any staff member can remind them. Create a “living” training program – one that is continually being developed, changed and improved. Tailoring your classroom, online and practical training modalities in accordance with the honest feedback you receive is key to buy-in and training longevity. Mark Murrell is co-founder of CarriersEdge, a leading provider of online driver training for the trucking industry, and co-creator of Best Fleets to Drive For, an annual evaluation of the best workplaces in the North American trucking industry produced in partnership with the Truckload Carriers Association. He can be reached at www.carriersedge.com https://ift.tt/ycqh6eO Trucking news and briefs for Monday, Feb. 21, 2022: U.S. governors, Canadian provincial leaders want truck drivers’ cross-border vax exemption reinstatedA group of 16 governors from the United States and two Canadian premiers penned a letter to President Joe Biden and Canadian Prime Minister Justin Trudeau requesting the leaders reinstate the exemption for truck drivers from cross-border COVID vaccine mandates. “We understand the vital importance of vaccines in the fight against COVID-19 and continue to encourage eligible individuals to get vaccinated,” the group said in the letter. “However, we are deeply concerned that terminating these exemptions has had demonstrably negative impacts on the North American supply chain, the cost of living, and access to essential products for people in both of our countries.” The letter noted that the timing of the mandates – with Canada’s going into effect Jan. 15 and the U.S.’ on Jan. 22 – “could not have been worse” due to supply chain challenges caused by the pandemic. “These constraints, combined with increasing inflation, place significant burdens on the residents of Canada and the United States,” the group added. “Furthermore, transportation associations have informed us that the lack of exemptions will force thousands of drivers out of the trucking industry, which is already facing a significant workforce shortage. The removal of these exemptions is ultimately unnecessary, and we cannot afford to lose any more truck drivers who transport food and other vital supplies across the border.” Six states testing e-inspections with DrivewyzeElectronic inspections (e-inspections) at weigh stations are now being conducted in a pilot program enabled in part by the Drivewyze company in Kansas, Maryland, Maine, New Hampshire, Virginia and Utah, at select weigh stations. According to Brian Heath, President and CEO of Drivewyze, the program is currently operating in a phase one deployment that expedites CSA-crediting Level III driver-credentials inspections. Drivewyze will deliver more information on phase two of the program that builds toward a vision of an in-motion Level VIII inspection in the coming months, the company said. Phase one, the company believes, is already delivering material benefits to participating agencies and fleets and marks a step forward in Drivewyze’s goal to change roadside inspections. "Traditionally, officers need to screen carrier and driver data against multiple back-office systems, each requiring a different login and manual data entry,” said Heath. "The process is time-consuming for officers as they juggle access and data entry into multiple federal and state systems. Credentials are often entered multiple times into unintegrated systems, which wastes time; and officers are only human, so it’s natural that errors occur in the process." With e-inspection, carrier and driver credentials, as well as hours of service data, are transferred wirelessly from the Drivewyze platform, which is embedded in the vehicle’s onboard electronic logging device (ELD). Officers don't need to collect this information manually, nor do they need to manually enter the information into multiple screening and inspection systems. "This dramatically reduces the time and errors that can happen with traditional roadside inspections,” said Heath. “We’ve seen e-inspections reduce the time for a ‘clean’ Level III inspection from close to 30 minutes, sometimes more, to only a few minutes.” Any fleets subscribed to Drivewyze PreClear weigh station bypass service can request to participate in the e-inspection pilot project. Drivewyze’s ELD partners are continuing with software updates so fleets can opt-in to this option. Currently, fleets using Platform Science and Geotab platforms can access and utilize e-inspections, and Trimble support is currently in development. Pennsylvania Kenworth parts, service dealership relocates to larger facilityKenworth of Pennsylvania – Muncy has relocated to a larger parts and service dealership to accommodate the growing needs of local truck fleets, owner-operators and truck operators traveling through the area. The 24,600 square-foot facility is nearly four times the size of its previous Muncy location. Kenworth of Pennsylvania – Muncy is situated on a 9-acre lot and features 15 service bays and a 6,000 square-foot parts department. “Our new parts and service location in Muncy will help us support our customers with improved uptime and parts availability,” said Tim Mitchell, Kenworth of Pennsylvania president. “We look forward to providing an enhanced customer experience to our customers who rely on our Muncy location for their parts and service.” Kenworth of Pennsylvania – Muncy is located at 80 Fitness Drive in Muncy, approximately 5 miles from its previous facility. Hours of operation are 7 a.m. to 5 p.m. Monday through Friday. The phone number is (570) 308-3590. https://ift.tt/ycqh6eO Managing pricing in an inflationary environment is a tough job. As HDMA confirmed during its Pulse webinar last week, raw materials, production labor and logistics/freights costs all continue to rise across trucking’s supply chain, and the rate at which these costs are rising are forcing suppliers to update their pricing biannually or even quarterly. For an industry long accustomed to annual pricing adjustments, the new normal is taking some getting used to. “This is new to all of us,” says John Ferry, executive vice president, Turbo Solutions. “We are not living in normal times in the truck parts industry right now.” “We’ve had four increases since the beginning of last year. I don’t think that’s ever happened before,” says Walt Sherbourne, vice president of marketing, Dayton Parts. “Now, not every product group got hit every time, but for us to send out four new pricing sheets in that time is unheard of.” With so much of the parts market already in upheaval, suppliers say they are doing their best to provide ample warning and explanations before implementing these additional but necessary price increases to reduce their burden on their distributor partners. Just because everyone knows price increases are coming doesn’t excuse sudden, unexplained hikes, suppliers say. In the same way customers value transparency in component availability, suppliers recognize their distribution partnerships are stronger when they can communicate why, as well as when, a price needs to change. “I think everybody understands we are absorbing higher costs all the time and sometimes we have to adjust our prices accordingly,” says Sherbourne. “That’s happening to [our distributors] too. What has made this situation unique is rate [of increases].” [RELATED: Fulfillment rates rising despite 'structural issues' in supply chain] “I don’t think there’s any type of product that hasn’t been affected by what’s happened over the last year and half,” adds Steve Plomin, director of sales and marketing, Battery Systems. Customers understand prices are going up faster today than they have in the past, he says. Yet, suppliers are still trying to aggressively withstand rising prices as much as possible. Sherbourne says as initial cracks in the supply chain appeared in 2020, Dayton Parts was proactive in its ordering, increasing purchasing levels of high-volume, essential lines to avoid early price increases. When the supply chain further fractured last year, the company enhanced its price assessment analysis to avoid being blindsided by major pricing fluctuations. Sherbourne says that was helpful when it became clear Dayton Parts would require multiple pricing updates in 2021. “We were reaching out to our suppliers asking them when they anticipated they would have another change so we could include that in our costs,” he says. “We wanted to be able to give our customers notice well in advance.” And suppliers, to their credit, are giving notice. One month has become the industry minimum for notice during the current crisis but many suppliers are still trying for the more historically common 60-day notice whenever possible, adding they recognize customers need time to absorb new costs as well before updating their prices accordingly. “You can’t come out with a price increase every week,” Ferry says. “Even if your costs are rising all the time, you want to be accommodating to the customers.” Suppliers also acknowledge waiting a year wouldn’t help anyone either. Prices are changing too often. [RELATED: Industry panel give 'real world' view of supply chain at HD Aftermarket Dialogue] “A big lesson learned from all of this is our customers appreciate an early and mid-year adjustment, rather than waiting until year end,” says Elena Donahue, head of Commercial Vehicle Aftermarket and Fleet Business, Commercial Vehicle Solutions, ZF Group. “This gives us all the opportunity to plan ways to react and adapt.” For many suppliers, monthly and quarterly pricing evaluations have become vital. Ferry says additional pricing discussions last year at Turbo Solutions only required one supplementary price update in July. He’s not sure what to expect for 2022. “All costs are rising. It’s not just the parts; it’s everything,” he says. “Boxes that used to cost $2 are now $2.50. Packing tape is more expensive. The foam we used to pack the parts, we used to go through four or five of those 55 gallon drums each month. Now they only send us two and they’re both more expensive … You can’t hold up production because of costs, you have to absorb them and adjust.” The latter is a key point. Strong market demand enabled many suppliers and their distributor partners to endure 2021’s substantial pricing bumps. And while early market predictions are strong for the year ahead, suppliers acknowledge there’s no guarantee pricing updates required this year will be as easily digested. “Inflation is on the rise globally and in our region as the world continues to grapple with multiple economic and geo-political challenges, many of which are direct or indirect outcomes of the COVID-19 pandemic,” says Donahue. “Our customers partnered with us last year and we were able to mitigate a portion of these inflation effects. Nevertheless, it is already clear through current price trends that inflation effects in 2022 will continue. Raw material remains elevated for longer than anticipated, while freight costs continue to rise.” And increasing purchasing levels at current rates to avoid future pricing hikes only works so long as the market can support the higher volumes. No one, supplier or distributor, wants to get stuck carrying excess inventory at the next market downturn — even if it was purchased for a reasonable price. At Battery Systems, which has more than 120 locations nationwide, Plomin says the company’s purchasing has become “more surgical” since COVID-19 hit. “We’ve tried to load up where we can, but we realize we can’t just buy to buy,” he says. “We have to make sure we’re adding the right inventory and the right products that we’ll continue to be able to move.” https://ift.tt/ycqh6eO |
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April 2023
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