Month: May 2012

Trucking companies that made it through the last recession are well-positioned to make money, analysts with Avondale Partners said in a recent state-of-the-industry report.

Research analysts for Avondale said fewer trucking companies failed in the first quarter of 2012 than at other times in recent years. They also say that driver retention and compensation will help shape the future of the industry.

The Avondale Partners analysts, led by Managing Director Donald Broughton, say in their latest “failures report” that 160 companies with an average fleet size of 13 trucks went under in the first quarter of this year. That is well below the 295 companies that failed in the first quarter of 2011. The first quarter of 2012 saw 2,110 trucks leave the industry compared with 3,955 that left in the first quarter of 2011.

“Almost by definition, if a trucking company made it through the last couple of years of turmoil in the macro economy, industry marketplace and regulatory environment, it is a result of being fairly well capitalized and fairly well operated,” the analysts said.

“Or put another way, if they made it this far through the tough times, then they can make it through easier times.”

The firm also notes that today’s fleets are better positioned to handle $4 diesel than when fuel prices hit the mark and beyond in 2008.

The latest Avondale report indicates that driver retention and pay will continue to shape the future of the truckload industry.

“The ability to attract, train and retain qualified drivers will separate the winners from the losers in the trucking industry,” the analysts stated.

Capacity in the trucking industry continues to tighten, boosting rates. Capacity is the relationship between the number of available loads and the number of available trucks to haul them.

Bankruptcies are not the only factors for capacity changes. Other factors include consolidation, changes in operations, and the age of trucks in a fleet. For example, a trucking fleet that acquires another fleet of 100 trucks might retire the oldest 20. For smaller companies, perhaps an owner trades in two older models to get one truck.

Driver retention and compensation also have an effect on capacity. Avondale pointed out in 2010 that driver retention and compensation had surpassed fleet failures as a factor in the “continued tightening of truckload capacity.”

The firm also notes that regulations such as CSA and an uneven adoption of electronic on-board recorders in the industry have reduced the pool of qualified drivers for many fleets, affecting capacity.

In conclusion, Avondale Partners says investors are seeing a bull market for truckload stocks at the present time. That’s because truck rates are up and a shortage of qualified drivers for truckload carriers and other factors are keeping the supply of available trucks tight compared to the number of available loads.

http://rightnowloads.com/

OTTAWA, Ont. — The feds have announced the continuation of a program that will assess the performance of clean vehicle technologies on light- and heavy-duty vehicles.

The next phase of ecoTechnology was announced today by federal Transport Minister Denis Lebel.

“Our government is pleased to launch the next phase of the ecoTechnology for Vehicles Program,” said Lebel. “This program will assess the safety and environmental performance of new vehicle technologies to ensure that innovations can be introduced in Canada in a safe and timely manner.”

The ecoTechnology for Vehicles Program will run five years and cost the feds $38 million. They’ll proactively test vehicle technologies with test results helping to align vehicle regulations in North America and to reduce barriers to cross-border trade, Lebel announced.

The first phase of the program focused on fuel-saving technologies for passenger vehicles. The new program will expand to include heavy-duty trucks and a broader range of technologies, the feds announced.

http://rightnowloads.com/

TORONTO, Ont. — TruckNews.com’s weekly WebTV show Transportation Matters (TMTV) has garnered more than 200,000 views on its YouTube channel.

The award-winning show is North America’s premiere online WebTV show with a focus on the trucking industry. The weekly show combines humour, information and insightfulness to provide a thought-provoking and entertaining addition to our print product.

Since it’s launch in 2008, Transportation Matters has earned a slew of industry awards, including:

Best Video (Gold) at the 2009 Canadian Online Publishing Awards

Multi-Media – Series (Best of Division) at the 2010 TWNA Communication Awards

Multi-Media – Series (Gold) at the 2010 TWNA Communication Awards

Best Video (Gold) at the 2010 Canadian Online Publishing Awards

Best Video or Mulimedia Feature (Silver) at the 2011 Canadian Online Publishing Awards

Transportation Matters also helped TruckNews.com be named among the Top 5 business Web sites in Canada at the Kenneth R. Wilson Awards in 2008 and 2009.

“This YouTube milestone is yet another notch in our belt for both Truck News and Transportation Matters,” said Truck News publisher Rob Wilkins. “Our editorial team has been producing high-quality video content for more than four years now, and the attention we receive via both our own Web site and YouTube is a testament to the show’s widespread popularity and appeal.”

http://rightnowloads.com/

OTTAWA, Ont. — The Canadian Trucking Alliance has raised concerns over the US Customs and Border Protection’s (CBP) decision to forge ahead with a requirement for mandatory reporting of residue in tanker trailers entering the US.

Earlier last week, CBP said that soft enforcement will begin on Sept. 29 followed by full enforcement on Dec. 28. CTA has voices concerns over the lack of explanation as to what either hard or soft enforcement will mean, or how the trading community is expected to comply.

The rule, originally published on July 17, 2009, will require all empty tanker trucks, ISO 20-foot tanks, rail tanks and large bulk carriers to provide a manifest and file a customs entry for all cargo residues entering the US. Prior to this change, cargo residue was treated as part of the Instrument of International Traffic, exempting it from manifest and entry requirements. Under the ruling, residue left in a tank truck after unloading will have to be measured and valued – basically treated like any other commodity for CBP purposes. CTA says that CBP’s rationale for the rule is to safeguard the health and safety of its front-line officers. However, the ruling extends beyond chemicals and hazardous materials to include all liquid or dry bulk commodities, including such things as corn syrup.

“CBP has not provided clear answers on a number of practical questions from industry, including how to assign value to a residual quantity which in essence has no value, or how to determine the weight of residue when it can’t be seen inside a tanker,” CTA officials said in a release. “CBP’s response has been to warn carriers that simply reporting a ‘zero or near zero’ value could raise a red flag with CBP officers and may lead to increased inspections at the border.”

CTA says there are “significant” questions about the ownership of the residue that CBP has left unanswered, except to say that where there is no clear owner or importer of record, the residual cargo can be deemed abandoned by the consignee, thus making the carrier by default the owner. CTA says this could expose carriers to new penalties and fines and force them to begin obtaining importer bonds or securing the services of a customs broker to comply with entry filing requirements.

CTA is concerned that if the burden of compliance rests with carriers, it could also impact negatively on a trucker’s ability to use the border FAST lanes.

“None of this makes much sense in the context of the new Perimeter Vision Action Plan and the agreement on better borders and reduced red tape, recently agreed to by the Canadian and US governments,” says CTA CEO David Bradley. “Despite repeated requests from industry on both sides of the border, CBP has failed to provide any meaningful guidance about how it will enforce the new rules or what will reasonably be expected from carriers in order to comply. It looks like CBP doesn’t know itself but for some reason is pushing ahead anyway.”

The CTA is advising carriers whose trucks enter the US with residual quantities of any commodity still left in the tanker to engage their customers in discussions to ensure the importer or owner of the residual commodities is clearly indicated.

http://rightnowloads.com/

MIAMI, Fla. – Telematics will continue to evolve until no truck is ever offline, according to Ron Huibers, president of North American sales and marketing for Volvo Trucks. And judging by what Volvo launches this Monday, the future may well be here.

Volvo Trucks, during a special media conference held in Miami in conjunction with the Volvo Ocean Race Friday, announced the launch of its Remote Diagnostics aftermarket service for North America. The service is designed to provide “a seamless, dynamically connected system of vehicle management tools to help maximize vehicle uptime.” Remote Diagnostics will be standard on all Volvo-powered VN model highway trucks as of Monday.

Huibers said Volvo was the first North American truck manufacturer to deliver a telematics solution, offering fleet management tools in 2002. Today, Volvo’s Remote Diagnostics provides proactive diagnostic and repair planning assistance with detailed analysis of critical diagnostic trouble codes. The remote communication platform facilitates live dealer and customer communication through Volvo Action Service, Volvo’s 24/7 support team. Proactive diagnostics streamline service procedures with confirmation of parts on-hand before a truck arrives at a service location, increasing uptime.

Remote Diagnostics also provides service case communication and documentation among Volvo Action Service, dealers and customers through ASIST, Volvo’s web-based service management tool, which comes free of charge for two years with the purchase of all new Volvo trucks.

“Remote Diagnostics maximizes vehicle uptime by reaching far beyond proactive diagnostics to deliver total connectivity among the vehicle, Volvo and the decision-makers responsible for maintenance,” said Stephen Roy, Volvo Trucks senior vice president, aftermarket and soft products. “As part of our integrated business solution, Volvo Trucks Support Services, and bundled under Connected Vehicle services, Remote Diagnostics leverages Volvo’s support network and service management tools to rapidly address service issues before they occur.”

For nearly a year, Volvo field-tested Remote Diagnostics with motor carriers in the U.S. and Canada, drawing on the feedback from 15 customers operating more than 1,300 Volvo VNs with the service.. Volvo officials said the test trials found that by using Remote Diagnostics downtime could be reduced by about one day per event.

Challenger Motor Freight was one of the Canadian participants in the test trials and Bryan Burningham, director of maintenance at Challenger Motor Freight, was on hand at the launch to talk about his experience with the system.

“The Remote Diagnostics service has really helped with vehicle uptime,” Burningham concurred. “It’s much easier to manage events with the service communication tool because it provides a very good data trail so we know what we’re working on, what we’ve done and when we expect it will be done….Communication has really sped up and internally we are able to have more intelligent discussions.”

Ron Huibers said Remote Diagnostics raises the bar to a whole new level in terms of what a truck maker can deliver to help keep customers on the road moving freight. He believes it will help “leap frog” Volvo over competitors.

“If we can help keep trucks on the road, everybody wins,” Huibers said.

Remote Diagnostics is the first service being offered under the new Connected Vehicle Services category of the Volvo Trucks Support Services bundled aftermarket offering. Previously launched categories include:

Service Management Beginning Jan. 1, 2012, Volvo Trucks offers ASIST at no charge with all new truck purchases. ASIST lets customers receive electronic estimates, approve repairs and issue a purchase order, regardless of the vehicle’s location. The online tool allows the customer to monitor vehicle status online, communicate directly with the dealer and maintain an electronic “file cabinet” of service activities. Consolidating all maintenance events and communication in one web-based tool also eliminates invoice and repair surprises, according to Volvo.

Parts Purchasing Volvo customers can order parts online through their local dealer. The online portal provides 24/7 access to parts availability and pricing from the local Volvo dealer. Customers can also receive nationwide credit access at all Volvo Trucks dealer locations in the U.S. and Canada through a charge card program.

Fleet Services Volvo Trucks Support Services offers 24/7 roadside assistance through Volvo Action Services and full contract maintenance services and a variety of leasing and rental program options.

http://rightnowloads.com/

John Palazzolo has dreamed for years of moving to Florida and working as an over-the-road truck driver.

Palazzolo, an OOIDA member from Huntington Station, NY, has worked as a Long Island school bus driver for nearly seven years.

Since last fall, Palazzolo has posted his resume on several job websites hoping to land a job farther south on the East Coast. Such a gig could facilitate his moving from New York to Florida.

That hope, however, apparently made him an easy target for a likely scam.

In April, Palazzolo said he was contacted by a woman named Michelle who said she recruited drivers for a company called “Arrowhead Logistics.” The company supposedly had a job waiting for him when his semester with the school district finished up in mid-May.

To get the job, Palazzolo needed only to wire Michelle $159 for his background check.

After Palazzolo left several messages in late April, Michelle called him back and said the job was his. She told Palazzolo the company was waiting on his truck to arrive, and that he’d be refunded for the background check at orientation.

Palazzolo was told the company would be in touch during the first week of May.

“Here we are and I still haven’t heard from them,” he said Monday, adding that the company also pulled down its website.

According to the Federal Motor Carrier Safety Administration’s SAFER website, one company by the name “Arrowhead Logistics LLC” exists in Gainesville, GA. That Arrowhead Logistics, however, has authority only as a broker. That company is listed on a Gainesville business website as a warehouse located on White Sulphur Road. The phone number listed is no longer a working number.

Searching online, Palazzolo said a friend came across a message board full of posts from other CDL-holders who had spent $200 to $350 on background checks after being contacted by a recruiter from Arrowhead Logistics. According to the message board, the drivers never heard from the company again.

“I should have known,” Palazzolo said. “Now that I’m thinking about it, it was too good to be true.”

Palazzolo is examining all his legal options, he said. He’s hoping to work the case together with other potential victims.

“I at least want them to pay us all back,” Palazzolo said. “I’m going to get some justice for all the fellow drivers who are looking for jobs. This is ridiculous.”

He does feel fortunate for one reason: He never quit his old job.

“Thank goodness,” he said.

http://rightnowloads.com/