Archive for May, 2015

By Allen Smith

Low wages, driver shortage, high driver turnover, low retention, poor recruiting practices, cheap freight, working without pay, low hiring standards and unskilled labor are just a few of the phrases you will hear included in any discussion regarding professional CDL driver wages.

You will find many articles describing the facts regarding the problems encompassing the causes of stagnant truck driver pay, whether it be the fact that wages have not increased in decades, the unfair pay structure, the classification of drivers, or even the fact drivers work many hours without pay.

There are also those who write and offer suggestions about ways to address and resolve the dormant driver wage situation. Unfortunately, most who feel compelled to write or share their thoughts and ideas about wage solutions, or even mention that there is an unfair balance between drivers wages and industry profits, comes from the driver population itself.

That is not to say that there has not been a recent voice made by carriers claiming they are addressing the wage issue by raising driver pay which in most cases means increasing the cents per mile rate (CPM). Of course this most recent announcement by carriers was actually initiated by the anticipation of a driver shortage as many of the younger generation needed to fill the seats of veterans retiring, do not find the trucking industry an “appealing career” as discussed in a previous post: Truck Driver Retention and the Generation Gap.

But just how significant are these current driver wage increases? Keep in mind, even if a motor carrier claims they are raising their driver pay .03 CPM, that is only an increase of $60.00 per week, based on a 2,000 mile weekly scale.

TruckersUnited.org

Veteran truck driver Pat Hockaday introduces an interesting and well-calculated new thought to the ongoing CDL wage discussion. Mr. Hockaday is the founder of TruckersUnited.org and has spent a great deal of time contemplating the best solution for a fair increase of drivers wages, including the most practical method in which they should be designed. The details of his observations and methods can all be found in his writings known as “JoJo’s Paper.”

Below is a post that Pat posted on his FaceBook wall and has allowed us to share it here as well. I believe that this reading, along with JoJo’s paper, should motivate and inspire dialogue between all drivers, not arguing or criticizing one another, but rather sparking thoughts and ideas for real driver solutions:

“It’s been a Long Day. Before I go to bed I am very happy to announce that TruckersUnited.org in it’s new and improved format is up and running! Thank’s Danny, I know that You have worked very hard to make it happen!”

“As an individual with an opinion and a possible solution that I believe will solve many problems within this industry, I hope to meet more like minded individuals that are willing to work towards common goals to turn this industry around from the small guys perspective.”

“I believe this can be done only if we are willing to work towards common goals.
SAFETY; Why are we having regulations shoved down our throats in an attempt to force us into compliance? Hasn’t anyone figured out that Drivers are only trying to earn a living and to do so they must bend or twist the law?”

“Safety comes at a price! Drivers are paying that price in lower earnings due to their time needed to earn being regulated. Drivers are paid piece work wages and when their time need to produce pieces is regulated away they earn less and must become creative in order to sustain themselves and their families!”

“Are these regulations creating safer or more dangerous roadways for the public? Is it possible that if the Drivers were paid to be safe instead of being forced to earn less they would have no need to act in ways deemed unsafe?”

CHEAP FREIGHT RELIES ON CHEAP LABOR

“We O/O’s and small carriers have to compete against mega carriers that have, due to their size, set the labor rates for this industry. Intentionally or not, they have influenced freight rates to remain low and to stagnate. One can not raise their rate to pay better because that would give the others a competitive edge! Is it possible that if they all had to pay a salary based on a minimum wage standard they would all save money and maintain their competitive edge and their bottom line?”

“The megas and the FMCSA have been working on their agenda to have it their way without considering Us small Guys! Isn’t it up to us to let it be known what we need?”

“In it’s simplest form it all boils down to money. You and I can do whatever is required, we can break the law in order to earn. Why can’t we influence laws that enable Us to Earn without breaking the law?”

“In JoJo’s Paper I have laid out a concept that accomplishes the Goal of Safety by paying the Co OTR Drivers a living wage. I put this concept out for all to consider and discuss. Maybe a better idea will come out of it or maybe it can be improved upon. I only know that We little guys have been fussing and fighting among ourselves while they are deciding how it is going to be. It’s time to start working together like a team so that we can win or lose as a team.”

“It’s up to you what your future will bring, WHY are YOU letting THEM decide for YOU?
Let’s start talking so that we may find solutions where they can’t, right under their noses!”

Recently Mr. Hockaday was a guest on AskTheTrucker “LIVE” and oddly enough, it was a health show about the relationship and affects between CDL wages and truck driver health. You can catch the full broadcast below:

As professional drivers, I believe it is important to be able to open dialogue by sharing all of our experience, knowledge, thoughts, ideas, opinions and so-forth, which can ultimately lead to an agreed upon and in many cases, a final solution to an industry problem.

© 2015, Allen Smith. All rights reserved.

Technorati Tags: ask the trucker live, cdl, cents per mile, cheap freight, cpm, driver pay, driver retention, FMCSA, freight, Pat Hockaday, rates, truck driver wages, truck drivers, Truckers United, Trucking, trucking safety

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DocOnCall24/7 for Truckers

For many, the trucking lifestyle is difficult enough, but when a driver is faced with an illness or sickness on the road, the difficulties can become much more serious.

I remember years back when I became extremely ill while miles away from home and my primary doctor’s care. As we often do while living life on the road, I continued to ignore my symptoms, believing that I would just “ride it out” and get well on my own.

As the illness worsened, I was finally forced to pull into a hospital parking lot in Cleveland, Tennessee where I was immediately wheeled into the ER. I would remain there for nearly two weeks as I overcame blood poisoning and discover that I had only been three hours away from becoming a fatality.

Back then, there were no Smartphones, WiFi, laptops or video communications of any kind and when a driver faced unknown medical symptoms while thousands of miles away from home, life on the road could become very unpleasant and dangerous to say the least.

In today’s technological advances, the ability for professional truck drivers to have access to a doctor’s care is available 365 days and 24/7. DocOnCall24/7 is specifically designed with the truckers’ lifestyle in mind, offering immediate access to licensed physicians at anytime via phone, email or video conference.

For only $19.99 per month, truck drivers and their families will receive medical services offering Telehealth, Vision, Dental, Diabetic, Pharmacy, Counseling, Lab Testing, MRI and CT Scans, Medical Health Advisory and more. Services are available to members as often as needed and there are no health restrictions.

Everyone is encouraged to sign up for their Free Prescription card on the website, membership is not required.

DocOnCall24/7 Prescription Discount Cards

There are also FREE Prescription Discount Cards for the iPhone and Android
smartphones. Use the Group NBRx9848A

With this app you can receive discounts at all major pharmacies, check for the lowest
cost for the medication, and find  the nearest pharmacy.

 Android App  Download

iPhone App     Download

In her continuing Truck Driver Health series, Donna will discuss the services and benefits further with DocOnCall24/7 on Ask The Trucker “Live”. The broadcast: DocOnCall24/7 offers truckers remote access to certified doctors, will air Thursday, May 28^th, 2015 at 6:00 PM Eastern Time.

© 2015, Allen Smith. All rights reserved.

Technorati Tags: DocOnCall24/7, doctors, health care, medical, medical access, telehealth, telemedicine, truck driver health, truck drivers, Truckers, Trucking

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TruckingSocialMedia
Trucking Hub for Information and Resources

We are at an age of information overload, we’ve been there for awhile, and it’s getting even greater.  With that said, is it really overload or is it information disorder, leading to confusion? Let’s face it, we can pretty much ask Google ( or other search engine) ANYTHING we want and find an answer. With the click of a mouse, you can search a word or phrase on the internet, and then within seconds, a list of 100+ results and options pop up! Now what?
It’s still up to us to determine the authenticity and credibility of that information, similar to sifting through the sand for the golden nuggets.

Resources on the web include: newspapers, magazines, journals, blogs, organizations, websites, government sites, forum sites and more. Another popular source for information are social media platforms such as FaceBook, Twitter, LinkedIn, Google + , Pinterest, and so many others.

The trucking industry is no different, the information available to us is a tremendous asset.  Along with journals and informational websites, including the option to have up to date news sent directly to your email, there are the increasingly popular Social Media websites sprouting.

Because of the internet and technology, no longer are professional truck drivers isolated as they drive, the only communication being their CB radio.
Facebook, Twitter, Google+ and other social media sites and interactive information site have created a window of opportunity to share information and become interactive to people they would have never been heard from before.

To sum it up, the ability to obtain information and communicate has reached new levels.  Along with that, there is the ability to share information to thousands in an instant “Click”.
To put it simply, the once isolated and voiceless now have  the ability to locate many informative destinations as well as be heard and to share their own vital messages.

But now the question is, ” how do you keep up with it all?”

To aid with that dilemma, Trucking Social Media (TSM) has created a central Hub in attempts to help organize many of the resources available today.

Since the launch of the Trucking Social Media Convention in 2011, it has been our goal to unite with like minded people, sharing our info along with that of others throughout the industry, sharing all knowledge, experiences, and finally our voices.

The Trucking Social Media website is an extension of that original vision and goal.  As we combine the technology,  the internet, and mobile communication, our latest goal is to create a trusted Hub of quality resources and information.

The Resource Page: Informative websites, Social Media Groups, Government Agencies, Blogs, Charities, Advocacy, Health, Cooking, Associations, Directories, etc…  is collected and updated on the website by TSM as well as submitted by those within the industry who would like to offer their resource suggestions and be a part of a trusted community. This vital info can then be shared via Social Media, reaching multitudes of others.

Videos are also a large part of the website as the trucking community shares their voice by sending in their Video URL, such as from YouTube.

Partners Page Our partners are an essential part of the Trucking Social Media Hub.
Our Partners continue to display their commitment toward honesty and integrity by offering the highest quality info, products and services.

SlideShare VIDEO for Truth About Trucking, LLC network

To Learn more about Trucking Social Media and how you can be a part of a trusted community of information, products, and resources, please watch the VIDEO below.
http://truckingsocialmedia.com/620/
contact info- info@truthabouttrucking.com
352-465-7476

VIDEO LINK Allen Smith shares the purpose and goals for Trucking Social Media

© 2015, Allen Smith. All rights reserved.

Technorati Tags: allen smith, Resource Hub, truck drivers, trucking industry, trucking social media, video sharing

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The Federal Motor Carrier Safety Administration (“FMCSA”) recently issued a decision in the matter of an application (Docket Number: FMCSA-2013-0513) for a categorical exemption from the minimum property broker and surface freight forwarder financial security requirements imposed by the Moving Ahead for Progress in the 21st Century Act (“MAP-21”) passed by congress and signed into law by the president in 2012 (P.L. 112-141), which was filed by the Association of Independent Property Brokers & Agents (“AIPBA”), a trade group founded and operated by the author since 2010.

In that decision, in which FMCSA denied AIPBA’s requested blanket exemption, the agency acknowledged that more than 9,000 intermediary businesses spontaneously shut down in December of 2013 when the new $75,000 minimum property broker bond requirement went into effect under amended 49 U.S.C. §13906(b) and was enforced by the agency after a two month grace period.

While some of these brokers gave up their brokerage businesses to join bigger brokerages as agents as part of a concerted effort by some larger brokerages to “consolidate” the freight brokerage industry,
(http://www.dcvelocity.com/articles/20110109thebigbetofbradjacobs/), others have continued to operate without any license or bond with impunity as third-party intermediaries arranging for motor carrier transportation, calling themselves “dispatchers” and “dispatch services” instead of brokers and holding themselves out to the public through social media.

“Property brokers” that operate in interstate commerce are required to be registered under 49 U.S.C. § 13904. Proper registration results in in the issuance of a “license” by FMCSA upon compliance with the financial security requirements prescribed by regulation (49 CFR 387).

“Property broker” is defined by Federal regulation in 49 CFR 371.2(a): “Broker means a person who, for compensation, arranges, or offers to arrange, the transportation of property by an authorized motor carrier.”

However, under said rule, there is an exception: “Motor carriers, or persons who are employees or bona fide agents of carriers, are not brokers within the meaning of this section when they arrange or offer to arrange the transportation of shipments which they are authorized to transport and which they have accepted and legally bound themselves to transport.” That is, an entity is not a broker if it is a “bona fide agent” of a carrier as defined under 49 CFR 371.2(b) as: “…persons who are part of the normal organization of a motor carrier and perform duties under the carrier’s directions pursuant to a preexisting agreement which provides for a continuing relationship, precluding the exercise of discretion on the part of the agent in allocating traffic between the carrier and others.”

Regardless of whether an intermediary works for a shipper or carrier and regardless of whether it touches the shipper’s money, an intermediary is a broker if it is paid by any party in the equation to arrange transportation as per 49 CFR 371.2(c): “Brokerage or brokerage service is the arranging of transportation or the physical movement of a motor vehicle or of property. It can be performed on behalf of a motor carrier, consignor, or consignee.” The term “dispatching” is covered within the official FMCSA definition of “motor carrier” at 49 CFR 390.5:

“Motor carrier means a for-hire motor carrier or a private motor carrier. The term includes a motor carrier’s agents, officers and representatives as well as employees responsible for hiring, supervising, training, assigning, or dispatching of drivers…” Most of these entities operating as dispatch services “dispatch” for more than one carrier under a power of attorney, which declares the dispatcher an agent of the carrier.

Therein lies the problem… Under the theory of “agency”*, it would appear an intermediary cannot be a nonexclusive agent of multiple competing carriers because this violates its “fiduciary duty of agent to principal;” that is, it would appear that an intermediary can’t lawfully help two competing carriers and call itself an agent of both of them as this problem of performing its fiduciary duty comes up when it chooses to load one of its carriers over the other. Contracted brokers don’t have this level of fiduciary responsibility.

In order to be a “bona fide agent,” then, the “agent” must be an exclusive agent for just one carrier. An intermediary calling itself a “dispatch service” when it services multiple carriers instead of a “broker” is like a legal professional saying he is not an “attorney” but a “lawyer” as he then attempts to practice law without being duly admitted to the bar. Shakespeare would say: “A rose by any other name would smell as sweet.

” This matter was settled by the Interstate Commerce Commission (ICC) years ago… In “Practices of Property Brokers” (49 M.C.C. 277, 295-303 (1949)) the ICC considered the distinction between agents of carriers and brokers and concluded that one who is in a position to allocate shipments between competing principals is a broker, who requires a license; an agent who devotes his service exclusively to a single carrier is part of that carrier’s organization and does not require a license.

Many third-party “dispatchers” charge motor carriers a 6% minimum fee but get the loads from brokers who are taking at least 12%. From a business standpoint, inserting a second middle man into the equation can therefore be said to adversely affect carriers’ bottom line. However, from a legal standpoint, these motor carriers need to recognize that “dispatchers” are not licensed under 49 U.S.C. § 13904 and are therefore not bonded by law for carriers’ protection; only licensed property brokers and freight forwarders are.

So, letting a “dispatcher” handle their money in place of a duly licensed broker clearly creates significant risk exposure for carriers. Legal practitioners should therefore warn their motor carrier clients of this pitfall and determine if the mere use of an unlicensed dispatcher by their motor carrier clients could in and of itself entail liability for aiding and abetting unlicensed operations under 49 CFR 390.13.

When it comes to “dispatch services,” the law is clear: it is not what an intermediary calls itself that defines whether it is a broker or not, it is what the intermediary does. Therefore, notwithstanding being a “bona fide agent” of one motor carrier, if an intermediary is an entity that receives compensation in exchange for arranging motor carrier transportation of regulated commodities across state lines, then it is an interstate property broker no matter what its chooses to call itself.

Unlawful brokers that call themselves “dispatchers” unfairly compete with duly-licensed brokers by circumventing the broker licensing and bond requirements. They can operate at less of a cost than law-abiding brokers who pay up to $10,000/year for a $75,000 surety bond or trust fund instrument.

Perhaps it is time for the relevant trade groups to crack down on these unlicensed players through the private cause of action provision established by MAP-21 to challenge the unlicensed dispatcher model in Federal court.

* According to Black’s Law Dictionary, “Agency” is “a relation, created either by express or implied contract or by law, whereby one party (called the principal or constituent) delegates the transaction of some lawful business or the authority to do certain acts for him or in relation to his rights or property, with more or less discretionary power, to another person (called the agent, attorney, proxy, or delegate) who undertakes to manage the affair and render him an account thereof.”

James P. Lamb is a non-attorney transportation practitioner duly admitted to practice before the U.S. Surface Transportation Board and Federal Maritime Commission. He is president of the Association of Independent Property Brokers & Agents (AIPBA) and chairman of the broader Small Business in Transportation Coalition (SBTC). He is based in Fort Lauderdale, Florida.

© 2015, James Lamb. All rights reserved.

Technorati Tags: 75K property Broker Bond, agent, AIPBA, Association of Independent Property Brokers & Agents, brokers, dispatch services, FMCSA, MAP 21, motor carriers, Moving Ahead for Progress in the 21st Century Act

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