Category: Business

BELINDA Thorn is giving up her holiday to help an aid charity, but this is no fund-raising trek in an exotic location.

Belinda, from Elmswell, will be driving a 7.5 tonne truck across Europe to distribute everything from wheelchairs to school books and reading glasses to needy people in Kosovo.

The convoy has been organised by Hope and Aid Direct, which works with the Kosovan charity the Mother Theresa Society which advises on where the aid the convoys bring is most desperately needed.

The truck-driving volunteers then deliver it directly to the homes of those who need it.

Belinda, an administrator’s secretary at the trade union Unite, got into it because a friend she served with in the First Aid Nursing Yeomanry had done it before.

“I’ll have a co-driver but the first time I’ll drive the truck will be when I drive out of the car park when we pick it up,” she said. “I’ve driven everything from tractors to a Ferrari, but I’ve not driven a truck.”

She is asking people who want to support the convoy to make donations at www.justgiving.com/belinda-thorn

She wants money not goods because Hope and Aid Direct keeps track of the constantly changing needs of the people it helps.

Belinda said: “Last week they needed wheelchairs and the week before it was coathangers.”

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U.S. Xpress Enterprises and Canadian freight carrier Maritime-Ontario Freight Lines Ltd. (M-O) have partnered to launch a cross-border North American shipping solution. Through the partnership, each company will leverage its national network to move freight across the border and throughout each country, creating a seamless North American network covering the United States, Canada and Mexico.

The companies say their partnership comes as a response to customer demand for a one-stop direct carrier option with the geographic footprint, ease of access and capacity they need to take their freight safely across the border and to its final destination with no hassles, headaches or the need for third-party vendors.

Under terms of the agreement, M-O will carry the freight across the Canada-U.S. border crossing, and U.S. Xpress will be responsible for Mexico-U.S. Border crossings. The border crossings served through the partnership are Buffalo-Niagara and Detroit-Windsor. To ensure the security of the freight and facilities, M-O has completed the requirements and testing necessary to earn its C-TPAT certification in Canada and PIPS certification in the United States, and U.S. Xpress has been recognized as C-TPAT compliant.

“The bottom line here is that cross-border shipping is not easy, and there are not many good options available to carriers who want one point of contact,” said John White, executive vice president of sales and marketing for Chattanooga, Tenn.-based U.S. Xpress. “This service brings together two like-minded high-performing companies to give shippers the convenience and peace of mind that comes from dealing with one trusted carrier who can get their goods where they need to go safely and on time, effectively erasing the border and the issues associated with crossing it.”

The service has been designed to cover the widest possible range of needs and price points and will employ truckload, refrigerated, dedicated and some limited less-than-truckload options through team and solo arrangements. To take advantage of each company’s rail presence, intermodal services also will be used as appropriate. U.S. Xpress and M-O believe that the retail sector will generate the greatest demand for this service, along with pharmaceuticals, grocery and manufacturing.

“While many companies on both sides of the border claim to have an international presence, the extent of their reach is limited,” said Bill Henderson, Maritime-Ontario chief operating officer. “With our partnership, we will have more than just a few trucks over the border. Both companies offer best-in-class transportation solutions and are recognized premium brands in their respective countries. Needless to say, we believe this is a true game-changer for North American freight hauling.”

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Data recently compiled and analyzed by experts on key segments of economic activity paint a positive picture of a economic recovery now on an upward trend that will benefit trucking as the year progresses.

For starters, the Institute for Supply Management(ISM) stated that its latest Report On Business (Manufacturing) indicates economic activity in the manufacturing sector contracted in July for the second time since July 2009— but the overall economy grew in July for the 38th consecutive month.

Interestingly, according to ISM, in July new manufacturing orders and inventories were contracting while manufacturing production and employment were growing.

“The PMI [Purchasing Managers Index]registered 49.8%, an increase of 0.1 percentage point from June’s reading of 49.7%, indicating contraction in the manufacturing sector for the second consecutive month, following 34 consecutive months of [manufacturing] expansion,” explained Bradley J. Holcomb, chair of the ISMManufacturing Business Survey Committee.

“The New Orders Index registered 48%, an increase of 0.2 percentage point from June and indicating contraction in new orders for the second consecutive month, but at a slightly slower rate,” he continued,

“Both the Production Index and the Employment Index remained in growth territory, registering 51.3%and 52%, respectively,” Holcomb advised. “The Prices Index for raw materials registered 39.5%, an increase of 2.5 percentage points from the June reading of 37%, indicating lower prices on average for the third consecutive month.

Holcomb noted that of the 18 manufacturing industries surveyed, seven reported growth in July in the following order: Plastics & Rubber Products; Electrical Equipment, Appliances & Components; Primary Metals; Petroleum & Coal Products; Fabricated Metal Products; Food, Beverage & Tobacco Products; and Furniture & Related Products.

He said the11 industries reporting contraction in July, listed in order, were: Nonmetallic Mineral Products; Apparel, Leather & Allied Products; Wood Products; Textile Mills; Miscellaneous Manufacturing; Chemical Products; Transportation Equipment; Printing & Related Support Activities; Paper Products; Machinery; and Computer & Electronic Products.

Turning to another pillar of trucking activity, construction spending in June climbed to a 2-1/2 year high as double-digit percentage increases in private residential and nonresidential construction “more than offset” an ongoing downturn in public construction, according to an analysis of new federal data by the Associated General Contractors of America (AGC) trade group.

“The June [construction] spending gains come on top of upward revisions to May and April totals, reinforcing the notion that private construction is now growing consistently,” explained Ken Simon son, AGC’s chief economist. “Even more encouraging, the improvement is showing up in a wide range of residential and nonresidential categories.”

Simon son pointed out that total construction spending gained 0.4% in June and an impressive 7.0% year-over-year. He said private nonresidential spending rose for the fourth consecutive month and was 14% higher than it was in June 2011.

Residential construction increased 1.3% in June and a whopping 12% year-over-year, according to Simon son. He said this growth was driven by “new multifamily construction soaring 3.4% percent and 49%, respectively, and single-family homebuilding going up 3.0% and 19%.”

Simonson noted that “five of the eleven private nonresidential categories in the U.S. Census Bureau’s monthly report registered double-digit percentage gains in spending from June 2011 to June 2012: power and energy construction (including oil and gas-related projects), 26%; hotels, 26%; manufacturing and educational, 19% apiece; and transportation (mainly trucking and rail facilities), 17%. There were also 7% year-over-year increases in health care, commercial (retail, warehouse and farm) and office construction.”

On the other hand, he said public construction spending “appears to have stabilized in recent months but the June 2012 total was 3.7% less than a year earlier. He added that only two of the Census Bureau’s 13 public categories posted year-over-year increases.

“Private nonresidential and multifamily construction should continue to grow in the second half of 2012 and beyond,” Simonson predicted.

“Single-family homebuilding also should top last year’s figures, although progress may not occur every month,” he continued.

“As a result,” Simonson summed up, “total construction spending in 2012 will be positive for the year for the first time since 2007– even though public construction will remain in the doldrums.”

Despite the upswing in construction spending this year, AGC CEO Stephen E. Sandherr did point out that the association remains concerned that “construction growth will remain unbalanced, however, unless lawmakers enact more funding for essential water, wastewater and other infrastructure projects.”

More good news for trucking—and the U.S. economy by extension– comes by way of the Summer Trucking Report just released by Ogden, UT-based TAB Bank. The bank stated that its study of the current state of trucking “shows broad signs of growth according to monthly truck tonnage, fuel costs, perceived business conditions, and invoice size. Historically,” TAB Bank noted, “trends in trucking and transportation serve as good indicators of the greater economy.”

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The Federal Motor Carrier Safety Administration is soliciting applications and nominations for interested persons to serve on the Motor Carrier Safety Advisory Committee. The MCSAC is composed of FMCSA stakeholders from the safety enforcement, industry, labor and safety sectors and is charged with providing advice and recommendations to the FMCSA administrator on federal motor carrier safety programs.

Current members with terms expiring in 2012 also are able to indicate their interest in being reappointed for another term. Applications and nominations for the MCSAC and letters of interest in reappointment must be received electronically.

For more information, contact Shannon Watson, senior adviser to the Associate Administrator for Policy, Federal Motor Carrier Safety Administration, U.S. Department of Transportation, 1200 New Jersey Ave, S.E., Washington, DC 20590; (202) 385–2395; [email protected].

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A bid by owner-operators to cut off funding for the Federal Motor Carrier Safety Administration’s electronic on board recorder rule appears unlikely to pass. Close followers of the issue note that while it is not wise to say “never” in Washington, the cutoff faces stiff opposition in the Senate.
The amendment was attached to the House’s bill appropriating 2013 money to the Department of Transportation.

Introduced by Rep. Jeffery Landry, R-La., it says that DOT cannot spend any money in Fiscal Year 2013 on GPS tracking, recording devices or event data recorders. It was co-sponsored by Reps. Nick Rahall, D-W.Va., Bill Huizenga, R-Mich., and Tom Graves, R-Ga., and it passed the House by a voice vote.
It was sought by the Owner-Operator Independent Drivers Association.

“We’d like to thank the co-sponsors for their bipartisan opposition to the mandate,” said Todd Spencer, OOIDA executive vice-president in a statement.

Tough Sell

But the Senate will prove to be a much tougher sell. That chamber has supported an eobr mandate three times in the past seven months.

Last December the Senate Commerce Committee reported out the safety title of the highway reauthorization bill, which included the mandate. In March the full Senate voted 74 – 22 for the mandate when it passed its version of the highway bill. Last month the Senate supported the mandate again when it approved the highway bill that President Obama signed last Friday.

Moreover, key Senate appropriators are strong supporters of the mandate. Sen. Mark Pryor, D-Ark., who introduced the EOBR mandate back in 2010, and Sen. Frank Lautenberg, D-N.J., who chairs the Commerce subcommittee that drafted the legislation, both are members of the Senate Appropriations Committee.

“The Senate had such strong support for the highway bill and the eobr mandate,” said Dave Kraft, director of industry affairs at Qualcomm Enterprise services. “I think for this year (the funding cut-off) is theater.”

Never Say Never

American Trucking Associations, which supports the mandate and worked against the House amendment, does not expect the measure to survive but nonetheless takes it seriously.

“We will not take it for granted that the Senate will not accept the amendment,” said Dave Osiecki, senior vice president of policy and regulatory affairs at ATA. “We are going to put some focus on it.”
Osiecki believes that while the amendment is not likely to survive, if it does it will disrupt the ongoing EOBR rulemaking at FMCSA.

“We believe it would restrict FMCSA’s ability to move forward on their current rule and any future rule, at least for fiscal year 2013. That’s our understanding of its potential effect,” he said.

The Senate’s appropriations schedule is not clear, although the usual pattern for these bills is later rather than sooner.
An FMCSA spokesman said the agency does not comment on pending legislation.

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By the end of this week new rules take effect in Iowa, Idaho and West Virginia to help protect emergency personnel and reduce distracted driving.

A new law in Iowa covers the state’s requirement that travelers make way for vehicles, typically emergency personnel, during roadside stops.

According to AAA, 49 states have implemented similar safety zone rules. Hawaii lawmakers have sent a bill to the governor’s desk to end the state’s distinction as the lone holdout.

Iowa’s three-year-old law requires drivers to change lanes or slow down when approaching emergency, tow or maintenance vehicles stopped along the roadside with lights flashing. Violators face $100 fines.

Effective Sunday, July 1, violators will face increased penalties if failure to abide by the rule results in property damage or injury to others. Specifically, incidents that result in injury or death would result in fines of $500 or $1,000, respectively.

Mandatory suspension of driving privileges will also be required. Loss of driving privileges for such offenses could last between 90 days and one year.

To avoid potential problems, the Iowa Department of Transportation recommends that travelers change lanes or slow down anytime you are approaching a vehicle that is slow moving, stopped or stranded on the shoulder, if it is safe to do so.

Two new laws in Idaho and West Virginia also address road safety concerns.

The National Safety Council says driver distractions, as well as alcohol and speeding, are leading factors in serious injury crashes. The council estimates that 28 percent of all traffic crashes – or at least 1.6 million crashes – each year are caused by drivers using cellphones. An additional 200,000 crashes annually involve drivers who are texting.

In response to safety concerns, a total of 37 states have acted to outlaw the distracted driving practice in recent years. Idaho and West Virginia are the latest states to prohibit drivers from text messaging while at the wheel.

Effective July 1, law enforcement in both states can enforce the bans as a primary offense, meaning drivers could be cited solely for violating the rule.

The Idaho law specifies that tickets can be handed out to anyone caught reviewing, preparing or sending text messages while driving. Violators would face $85 fines.

Emergency personnel and law enforcement are included.

In West Virginia, offenders would face fines that start at $100. Three points would be added to driver’s licenses after their third citation.

The Mountain State’s new rule includes a restriction on talking while driving. In addition to the texting rule, chatting with a hand-held device is a secondary offense. As a result, officers couldn’t cite offenders without pulling them over for a separate violation.

However, the restriction on enforcement is only temporary. The cellphone rule is slated to become a primary offense in July 2013.

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