Archive for January, 2013

The 2013 edition of the North American Standard Out-of-Service Criteria Handbook and Pictorial is now available for order from CVSA.

Blue Tree’s R:Com in-cab terminal can now be temporarily mounted on the dash of rental vehicles or leased trucks.

New reports circulated on Wednesday suggesting Daimler Trucks is preparing to cut more than 1,000 jobs at its Portland manufacturing facilities.

Additional reports suggest the company is also preparing to offer voluntary severance to about 800 non-production staff at facilities in Germany.

Meritor celebrated its 10 millionth trailer axle made in North America yesterday at its Frankfort, Ky. manufacturing facility.

Epes Transport System will increase mileage-based independent contractor rates by 2 cents to $0.92 per mile. The company’s Northeast premium pay will increase by 10 cents per mile.

Brush fires caused by sparks from its diesel particulate filters and expensive recalls have apparently caused Cleaire Inc., a California specialty manufacturer, to suddenly shut down.

Without a public announcement, the company, based in San Leandro with a manufacturing operation in San Diego, ceased operations and pulled down its website last Friday.

ATD will celebrate its 50th convention in Orlando Feb 8-11. The first convention was held in 1963, seven years before the ATD division of the National Automobile Dealers Association was even established.

For the first quarter of fiscal year 2013, Meritor posted sales of $891 million, down 23% from the same period last year. Meritor says the decrease was primarily due to lower sales in global markets.

For the period ended Dec. 31, Meritor lost $21 million. That compares with a loss of $22 million a year earlier. Excluding restructuring charges, Meritor’s loss from continuing operations was 11 cents per share.

Utility Trailer Manufacturing Company recently celebrated a production milestone, producing its 200,000th refrigerated trailer at the Clearfield, Utah manufacturing facility.

Former Meritor exec, Timothy E Bowes, has joined Transtar Industries Inc. as its Chief Executive Officer.

Dupre Logistics LLC Energy Distribution Services will become the first PacLease customer to lease the Peterbilt Model 579.

GRD Logistics Training

The trucking industry is seeing more veteran drivers leaving the profession largely due to the over-regulation of the business. Coupled with 100,000 baby boomers approaching retirement age, along with a younger generation that sees the trucking lifestyle as unacceptable, many will find themselves out of the business, unemployed or refusing to grasp onto a vocation that offers long hours, low pay and a great lack of respect from their peers.

Many will leave the industry due to the hardships placed on them by the regulations and even those retiring from years of driving, may still look for a way to remain in the business in some fashion due to having spent their entire lives in what was a tough job, but nevertheless, one that they loved: transportation.

What has proven to be one of the best work-at-home opportunities for many is that of a freight broker/logistics agent, but it does not come easy. It takes work, dedication and commitment to make your new business work. One will need to be licensed by the Office of Motor Carriers and to carry a $10,000 surety bond or trust, and along with a computer, high-speed internet access, a fax and copy machine, a telephone and broker software, you will be in business.

Although a government exam or official training is not required, training is highly recommended for fully understanding how the freight broker industry works and having the assistance from veteran brokers or agents. Learning the system is vital in success such as:

• Freight Broker Authority
• Freight Broker Business and Finances
• Cost of operating a freight brokerage
• Federal broker requirements
• Necessary documents
• Setting up a customer base
• Customer negotiation
• Establishing a customer base
• Sales techniques
• Using dispatch software

Establishing any business takes time and effort and the work does not come to you, you have to go get it; but successful freight brokers can easily average $40,000 annually and many see yearly revenue in the six figures.  Discussing this work-at-home opportunity with several brokers, they have all mentioned one thing in common for their success: they worked for it.

Speaking with a recent “school graduate” out of Texas, he told me:

“One has to be willing to see this business as a real and viable business; they have to see it as their business. You have to be willing to jump on the phone on the first day after training is complete and keep on the phone day after day. It takes a lot of work, but it can be done.  I got my first load two weeks after training and got back my return from training within six weeks.  I may be the exception, I don’t know, but I do know that anyone who is willing to put in the effort can see it happen.”

Freight Broker Over-saturation

The best candidate for their own freight broker business is one who has experience within the transportation industry, such as a former truck driver. With an understanding of how the system operates and former contacts with shippers, it can only make sense, but is the market already over-saturated with brokers?  Not by a long shot . . .

With over 500,000 trucking companies in the United States pulling in an annual revenue of $255.5 billion, shipping $671 billion in mer­chan­dise every year and driving 432.9 billion miles annually, there is only about 8,000 freight brokers at one given time that is handling this massive movement of freight. Each one of these brokers holds no more than 4% of the market share individually, leaving a large room for future freight broker entrepreneurs.

Those understanding transportation such as drivers, have potential product customers everywhere within an industry that employs 8.9 million people:

• Manufacturers
• Wholesalers
• Distributors

Within these customer models, the products needing transported are limitless:

• Food:  annual revenue, over $285,000,000
• Motor Vehicles:  annual revenue, over $151,000,000
• Phar­ma­ceu­ti­cals:  annual revenue, over $258,000,000
• Beverages:  annual revenue, over $134,000,000
• Fuel: over 54 billion gallons consumed yearly

The transportation industry is so huge, customers can be found by those willing to do the work. I have not even touched on other aspects such as conventions, trade shows and even export and import sites on the web. Building a successful freight broker business will not happen overnight, but it can be done if you want it bad enough. It is a very real opportunity for retiring truck drivers or those who have had enough with the regulations or having to call it quits for other reasons such as medical, etc.

Freight Broker Training

Now the question is, where can you find an honest and reputable freight broker training school?

AskTheTrucker recommends GRD Logistics Training, based out of Baker, Florida.  With an earning potential of $40,000 to $200,000 per year, they clearly point out that this is “dependent on time, effort and dedication of yourself”, exactly what I have tried to make clear through this post.  Their  integrity further comes through by way of their statement:

“Your success depends upon your dedication and effort put forth by you. We can only provide the tools. The rest is up to you.”

As in any business, the “rest is up to you.”  Are you out of or will be getting out of truck driving but would still like to work in the industry with your own freight broker business? I can help in providing you with the information but . . . the rest is up to you.

© 2013, Allen Smith. All rights reserved.

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Technorati Tags: broker, business, dispatch software, freight, freight broker, freight broker authority, freight broker training, GRD Logistics Training, transportation, trucking, work at home

Roadside safety inspectors are being encouraged to check for compliance with the Unified Carrier Registration program starting Feb. 1.

The Commercial Vehicle Safety Alliance said in a recent bulletin that the UCR Board is recommending the compliance checks.

The Timken Co. simplified interchanges to Timken driveline center support truck bearings by converting its parts nomenclature to align with familiar industry part numbers.

Brake Safety Week in North America was held Sept. 9-15 and is an annual enforcement campaign on commercial vehicle, truck and bus brake system maintenance.

Zonar, a provider of fleet telematics, remote diagnostics and mobile onboard computing, is holding its inaugural annual conference on May 14-16 at the Grand Hyatt Riverwalk in San Antonio, Texas.

The 7th Annual Heavy Duty Remanufacturing Group Summit was held on Jan. 21 at the Mirage Hotel prior to Heavy Duty Aftermarket Week.

Transportation Secretary Ray LaHood, who yesterday announced that he will leave the Obama administration once a successor is confirmed, will look back at a legacy of achievement, particularly in safety.

LaHood’s signature effort during the past four years has been to raise public awareness of the dangers of distracted driving.

Chevrolet is supporting a project to help long-haul truckers avoid idling during rest breaks at truck stops through a technology that maintains a comfortable cabin temperature and powers a TV, laptop or microwave without emitting the carbon dioxide emissions that come from engine idling.

Every two years a new group of professional drivers are chosen to represent the best of the best on the American Trucking Associations’ America’s Road Team.

I was pleased this year to see a couple of less-typical members on the Road Team:

A congressional hearing held last September concluded with the Federal Motor Carrier Safety Administration assuring stakeholders that refinements to the Compliance, Safety, Accountability program were under way and that more were scheduled in the near future.

States are loosening restrictions on marijuana but that does not mean truck drivers can kick back and light up a joint.

In last November’s election, voters in Washington and Colorado made it legal to possess an ounce of pot and use it for recreation. And Massachusetts joined the 17 other states (and the District of Columbia) that allow medical marijuana.

The wholesale used market was the only segment to grow from 2011 to 2012, up 3%. The auction and retail markets both fell 11%.

Following a modest pullback in November, the trailer industry closed 2012 on a strong note: December saw new orders rise to a multi-year high, while cancellation activity remained at modest levels.

American Trucking Associations is asking the Federal Motor Carrier Safety Administration to push back the start date of the new hours of service rule.

The rule, which ATA and others are contesting in court, is scheduled to take effect July 1.

Prices for both diesel and gasoline saw a jump this week at the pump.

Diesel prices rose this week at an average of 2.5 cents across the nation to rest at $3.93.

A new advance report from the U.S. Commerce Department show shipments of manufactured durable goods in December moved higher for the fifth of the last six months in December, while durable goods orders posted its seventh gain in the last eight months, exceeding many analysts’ expectations.

Continental Tire the Americas announces plans to invest $129 million in its Mt. Vernon, Illinois tire facility and create more than 100 new full-time jobs over the next three years.

Two thousand transportation officials and high-tech leaders from across the country will gather in Nashville, Tenn., from April 22-24 to explore solutions for easing traffic congestion, financing the nation’s transportation system, and advancing life-saving vehicle technologies.

Last month I spent some time in Michigan, the land of highway “trains.” And I was reminded that in spite of what safety extremists claim in Washington, D.C., high-capacity long combination vehicles, or LCVs, can be operated safely.

The Equipment Leasing and Finance Association’s Monthly Leasing and Finance Index, which reports economic activity from 25 companies representing a cross section of the $725 billion equipment finance sector, showed their overall new business volume for December was $11.5 billion

A federal appeals court ruling Friday casts doubt on the legality of actions taken by the National Labor Relations Board since President Obama recess-appointed Sharon Block, Terence Flynn and Richard Griffin to the board in January 2012.

CSX Corp. and its transportation and intermodal terminals subsidiaries announced an expansion of the company’s intermodal presence in the greater Montreal region and Quebec.

Interstate Van Lines of Springfield, Va., has again been named the winner of an annual Fleet Safety award by the American Moving & Storage Association.

Wabash National Corp. announced that it has entered into an agreement to acquire certain assets of the tank and trailer business of Beall Corp.

TravelCenters of America LLC, operator of the TA and Petro Stopping Centers travel center brands, has announced the acquisition and rebranding of a travel center in Holbrook, Arizona, to the TA brand.

Professional Truck Driving

With millions of people out of work and no future signs for economic growth, many are looking toward truck driving as a possible career. Truck driving schools and trucking companies continually advertise for the need in drivers and the promise of a new, exciting and high paying job.

The commercial CDL driver will average 100,000 miles per year, transporting a variety of goods across the country as they continue to be the backbone of the American economy. Should all the drivers in the U.S. come together for a major, long-term strike, the way of life for Americans would see a drastic change within a matter of weeks.

A strike of this nature could never take place and we should all be thankful, but for those who are considering truck driving as a new vocation, they should first understand that trucking is a lifestyle, not simply a job.

Truck driver wages have remained the same for decades with no adjustment for inflation or other such economic factors. In fact, drivers were actually earning more money in 1980 than they are today in 2013.

One factor that determines the wage for a particular group of workers is the classification of the employee per the United States Department of Labor. Although organizations such as the American Trucking Association (ATA), the Owner-Operator Independent Drivers Association (OOIDA), truck driver training schools and countless motor carriers refer to the trucker as a “professional”, the DOL classifies them as “unskilled.”

It is this unskilled classification that results in the continual low pay for CMV operators. Newcomers to the “profession” will be lured in by cleverly designed recruiting ads, along with the promise of big money. However, a new company driver can expect to earn an annual average gross income of $27,000 with the experienced driver earning an average gross of $34,000 per year.

With the constant implementation of federal regulations being placed on drivers, many truck owner operators are abandoning the vocation due to the financial burden being placed on them via government policies. Many owner operators and independent contractors, once considered the Knights of the Road, are now earning as much as or less, than the company driver.

Truck drivers are true professionals who account for the safe transportation of nearly 70% of all the freight in the United States, generating over $255 billion in yearly revenue. Commercial motor carriers collects over $97 billion and private fleets earn well over $121 billion.

Yet, the nation’s truckers average an unskilled wage of.34 cents per mile and they have seen their earnings fall by 40% during the past 33 years.

© 2013, Allen Smith. All rights reserved.

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Technorati Tags: ata, cdl, ooida, truck driver wages, truck drivers, truck driving, trucking jobs, unskilled labor

Treadle Valve Corrosion

An important aspect of professional truck driving is the pre-trip inspection. Regulated by federal law, truck drivers are required under FMCSA Regulation §383.113 (2) (ii) to be able to “determine the motor vehicle’s brake system condition for proper adjustments and that air system connections between motor vehicles have been properly made and secured.”

Veteran drivers understand all to well, the seriousness of an air brake failure while operating a Commercial Motor Vehicle. Many truck accidents have occurred due to the loss of brakes which have led to the driver being cited for failure to properly inspect the brake system. When law enforcement is unable to determine the actual cause of such accidents, many times it is reported as due to driver fatigue.

A serious safety issue that continues to be overlooked and under-reported is the problem of Treadle Valve corrosion, specifically with the E6 and E10 Foot Brake Valve. As a majority of accidents have been reported as being caused by truck driver fatigue, the true underlying culprit could actually be the unseen corrosion that is blocking the plunger and the valve, preventing the Treadle Valve from operating properly, thus leading to the brake failure accident.

The Commercial Vehicle Safety Alliance (CVSA) released the 2012-2 Inspection Bulletin detailing the procedures for inspecting the brake pedal (valve and treadle) assembly.

According to Allan Powell, a 30 year trucking veteran and consumer advocate for the prevention of truck accidents, “If the treadle valve sticks in the up position, the plunger in the valve housing will not go down and any accident will not be the fault of the driver.”

If the plunger sticks in the center, the air pressure supplied to the brake chamber will result in an amount that will only lead to brake drag. This “drag” is what can lead to the brakes heating and resulting in a fire. Again, with the plunger stuck in the middle, the driver would have no way of knowing that anything is wrong since this would not cause the brake warning light to come on.

Finally, should the Treadle Valve become stuck in the down position, the brakes will most likely lock up and be unable to release, causing the 18-wheeler to go into a skid. Again, no fault by the driver.

The National Highway Traffic Safety Administration (NHTSA) first began recalling Treadle Valves in the 1970′s and most recently, in August of 2012. Due to the fact that there are more semi tractor trailers on the road today, along with many more various types of chemicals being used on the highways, the safety issue with Treadle Valves is becoming more prevalent.

Yet, even today, there is no serious industry study being performed in order to investigate the air brake valve problem. There is no doubt that truck drivers are being faulted for improper vehicle inspection or driver fatigue when in fact, it is due to defective brake valves that can be virtually undetectable by the driver and law enforcement officials.

Catch our interview with Allan Powell and Rickey Gooch on Truth About Trucking “LIVE” : Trucking Safety: Investigating the E6 and E10 Brake Valves.

© 2013, Allen Smith. All rights reserved.

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Technorati Tags: air brake foot control valve, Allan Powell, driver fatigue, E10 Air Brake Valve, E6 Air Brake Valve, Rickey Gooch, Treadle Valve

Seems like an easy decision. Choose a trailer and go. But before adding just one or several hundred trailers, a fleet manager needs to determine what’s right for the application. Considerations include space and weight capacities, laws and regulations, trailer age and regional-specific specifications.

The San Bernardino County Superior Court has fined Foster Enterprises, an Ontario-based refrigerated transportation and cold storage business, $300,000 after a California Air Resources Board investigation revealed that the company failed to upgrade older diesel engines in its refrigerated trailer fleet as required to meet current emissions standards.