Blog | Load Board

New York legislators are fuming over the state thruway authority’s consideration of a 45 percent increase in commercial tolls, while the Maine Turnpike Authority has scheduled meetings this month concerning a relatively smaller toll hike proposal for truckers.

New York Assemblyman Frank Skartados blasted the state thruway authority’s preliminary approval May 30 to raise tolls 45 percent on trucks with three or more axles.

The assemblyman, a Democrat, said the hike would hurt truckers. Howard Milstein, authority board chairman, had described the increase as “modest.” It also would affect consumers and businesses that ultimately would pay higher prices to compensate for greater transportation costs.

Republican Sen. James Seward said this proposal also would increase traffic for small towns along the thruway because more truckers would seek alternatives to the higher tolls. The authority board is required to conduct an environmental review and hold at least three public hearings before a rate change, Seward added.

If approved, the round-trip cash toll for a five-axle truck crossing the Tappan Zee Bridge would increase from $32.75 to $47.49. The authority last raised rates 25 percent in 2010 for all drivers.

Also at the authority board meeting, Milstein summarized an independent review he requested after he began oversight of the state’s 570-mile thruway and 525-mile canal system.

On an annual basis, commercial traffic decreased 4.2 percent while total traffic dropped 1.8 percent between 2005 and 2011. Still, the authority outspent revenue “to an alarming degree” and bridged the gap with what the reviewers called “potentially risky” financial practices.

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Yesterday’s ruling by an Ontario Justice of the Peace who tossed out a ticket under the province’s speed limiter legislation does not change the enforcement of the Highway Traffic Act (HTA) law whatsoever, according to the Ontario Trucking Association, adding that the organization is “not at all concerned” with the decision.

“People challenge traffic tickets every day and sometimes they win,” said OTA president David Bradley. “It means nothing; the law stands.”

According to a statement by the Missouri-based Owner-Operators Independent Drivers Association (OOIDA), the group funded a driver’s challenge of the law in a Welland, Ont. court. The Justice of the Peace sided with the driver and, according to reports, he interpreted the rule to be at odds with the Charter of Rights.

“Contrary to some reports, the lower court ruling isn’t binding and the law hasn’t been struck down; nor does it require any amendments to the HTA legislation,” the OTA said in a release.

Bob Nichols, spokesman for the Ontario Ministry of Transportation, told TruckNews.com that while the group would not comment on the specifics of the case, he noted that, “This case doesn’t change the law, and we’ll continue to enforce the law.”

Nichols said that the positive safety benefits that speed limiters have had since they were first introduced has been considerable.

“When we introduced speed limiters for trucks in 2009, we saw an immediate 24% drop in fatalities involving trucks. We’re committed to road safety. Ontario has the safest roads in North America,” he said, adding that the MTO would continue to work with its partners in the industry, like the OTA.

Over 8 in 10 truck operators are in compliance with the rule, says the OTA, however, those found in violation will remain subject to the speed limiting system requirements under the Act and will continue to be charged with the applicable offence(s).

“It’s ironic that news of the ruling comes days after the latest Ontario Road Safety Annual Report (ORSAR) stated that truck speed limiter legislation has helped make Ontario the safest jurisdiction in North America by reducing the province’s total road fatality rate to its lowest level in nearly 70 years,” says Bradley.

The report found that in 2009, large truck fatalities dropped by 24% year-over-year, despite a 59% increase in the number of large trucks registered in the province.

“This proves that the assertions of the US-based critics who bankrolled this challenge are absolutely baseless,” said Bradley. “In fact, truck safety has never been better since the speed limiter law took effect.”

“Safety is without question the number one priority of the trucking industry and the speed limiter law is certainly having an impact on reducing crash rates of both trucks and cars and helping truck drivers as a class continue to be the safest drivers on the road.”

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The Federal Motor Carrier Safety Administration is giving carriers more time to comment on the proposed changes to its Safety Measurement System.

SMS is the workload prioritization tool that helps FMCSA identify motor carriers for safety intervention under its Compliance, Safety, Accountability system.

The changes, part of an ongoing CSA revision process, touch on several of the BASIC (Behavioral Analysis Safety Improvement Categories) that are at the heart of the enforcement system.

The agency plans to move cargo and load securement violations out of the Cargo-Related BASIC and into the Vehicle Maintenance BASIC.

This is in in response to concern in the industry and enforcement community that flatbed carriers are getting significantly higher Cargo-Related scores than other types of carriers, simply because their load securement issues are more apparent during inspections. The agency said that in its analysis it found that the new approach corrects the bias against flatbeds and still identifies carriers that have cargo securement problems.

In another move, the agency is changing the Cargo-Related BASIC to a new category, the Hazardous Materials BASIC, and is changing the way hazmat carriers are identified.

The rationale is that the system has not done a good enough job of finding carriers with hazmat compliance issues, because they have been undercounted in relation to carriers with load securement issues.

To be identified as a hazmat hauler, a carrier must have at least two inspections on a vehicle carrying placarded hazmats within the past 24 months. One of those inspections has to be within the past year and must make up at least 5% of the carrier’s total inspections.

In other changes, the agency:

* Will start applying carrier violations of intermodal chassis requirements to the Vehicle BASIC.

* Will eliminate vehicle violations from driver-only inspections, and driver violations from vehicle-only inspections.

* Will no longer use the terms “inconclusive” and “insufficient data” to describe a carrier’s CSA performance. Instead, the agency will use specifics, such as “fewer than five inspections,” or “no violations within one year.”

The SMS Preview comment period has been extended to July 30. FMCSA will review comments and make any necessary changes prior to implementation. Carriers can access the SMS Preview through two FMCSA websites:

– Visit the Compliance, Safety, Accountability website and log in with an FMCSA-issued U.S. Department of Transportation number and a personal identification number, or
Log in to the FMCSA Portal and select the “CSA Outreach” link.

On the CSA Website’s Resources page, visitors can access a foundational document that provides additional information about this first set of SMS changes. A Federal Register Notice outlining the changes is also available for review.

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The U.S. Government Accountability Office again has recommended the Federal Highway Administration restructure federal surface transportation programs and address risks posed by partnerships with state transportation offices.

The independent agency, often called the watchdog for Congress, released the report May 29 in response to language in a long-term transportation funding bill approved by the Senate in March.

If the Senate legislation becomes law, it would mandate the Federal Highway Administration establish a more performance-based highway program, demanding significant change in FHWA’s oversight. The agency and state transportation offices would need to develop measurable goals to improve the nation’s highway system and the FHWA would be required take action when these performance measures are not met on federally-funded highway and bridges.

Agency officials would likely use these state partners to implement a performance-based system, as the administration’s state division offices do have some positive oversight practices of state DOTs. However, these partnerships pose risks that can result in poor funding and the loss of independence necessary for effective oversight, the GAO stated.

The federal Highway Trust Fund provides infrastructure funding to states through taxes on motor fuels, tires and trucks.

The GAO has expressed previous concern before about FHWA’s partnerships, and, in 2008, it recommended Congress consider refocusing surface transportation programs. That report cited as an example of weakness the agency’s partnership with Boston’s Central Artery/Tunnel, nicknamed the “Big Dig” and considered the largest public works project in U.S. history.

The GAO had noted significant cost hikes and weakness in FHWA’s efforts to hold its Massachusetts DOT partners accountable. A 2000 project FHWA Task Force Report concluded that “officials failed to adequately perform their duties because they acted more as partners with Big Dig officials than overseers.”

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WOODSTOCK, Ont. — Contrans has announced it has acquired bulk trucking firm Peter Hodge Transport.

The deal is expected to generate annual revenues of about $20 million. Peter Hodge runs 92 highway tractors and 140 trailers and provides bulk hauling using open-top dump trailers and liquid tankers.

“The managers, staff and drivers at Peter Hodge Transport have spent over 40 years building a great company,” said Contrans’ chairman and CEO Stan Dunford. “This is a unique opportunity for us to strengthen our dump and tank hauling presence in Ontario by adding such a well-respected, service-oriented business to our group. For many years, we have operated a similar business in the Great Lakes region, but the shipping lanes and trailer types have differed from those typically handled by Peter Hodge Transport. This is a complementary addition to our service offerings.”

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The cost of ground transportation for Canadian shippers decreased 1.7% in March when compared with February results, according to the latest results from the Canadian General Freight Index (CGFI). The results mark the first decrease the index has seen since February 2011, however, costs are still up 8.1% year-over-year.

The Base Rate Index, which excludes the impact of accessorial charges assessed by carriers, decreased by 1.77% when compared to February 2012.

Average fuel surcharges assessed by carriers have seen an increase from 20.42% of base rates in February to 21.9% in March.

“The results in this month’s index were driven by a downward trend in the domestic truckload and transborder LTL, while domestic LTL saw a marginal increase,” said Doug Payne, president and COO of Nulogx.

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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.

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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.

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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.”

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