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The Roemer Report On-Line, April 2000
PRICE SHOCK AT THE PUMP: Independent truckers say that high diesel prices are threatening many truckers' livelihoods. So for the second time in less than a month, a convoy of owner-operators converged on Washington, D.C., to protest the soaring prices. Hundreds of members of the National Owner Operators Trucking Association parked their trailers at various areas around the National Mall. The cause has gained support from some Congressional members. One senator wants the current federal budget to include $100 million in emergency relief for owner-operators. Another senator has introduced a bill that would repeal the diesel tax at the refinery level. Meanwhile, a study found that the high fuel prices have increased operating costs by 6.64 cents per mile for truckload carriers who average more than 500 miles per haul. For truckload carriers who average less than 500 miles per haul, the extra cost is 6.77 cents per mile. Refrigerated carriers face the biggest jump in operating costsan additional 7.45 cents per mile, according to Martin Labbe and Associates. To calculate the precise impact of high fuel prices on your own operation, follow this formula from Martin Labbe and Associates: Step 1: Determine your 1998 cost per mile by dividing your 1998 total fuel cost by the total miles driven that year. Step 2: Calculate your current cost factor by dividing your cost per gallon now by your cost per gallon in 1998. Step 3: Multiply your cost factor (from step 2) by your 1998 cost per mile (from step 1) to get your new cost per mile. Step 4: Subtract the 1998 cost per mile (from step 1) from your new cost per mile (from step 3) to determine how much your cost per mile has increased due to escalating fuel prices.
MEDICINE CAN BE RISKY BUSINESS FOR DRIVERS: Two
years ago, a Greyhound bus ran off a Pennsylvania highway, hitting a parked
tractor-trailer, which in turn crashed into another tractor-trailer. Seven
people were killed, including the driver, and 18 were injured. The National
Transportation Safety Board (NTSB) later discovered that the bus driver had
taken an over-the-counter cold-and-allergy medicine either while driving or
just prior to getting behind the wheel. The antihistamine, a sedative in the
medication, caused the driver to feel sleepy and reduced his alertness, according
to the NTSB. Other factors in the fatal accident included driver fatigue caused
by Greyhound's scheduling system and the Pennsylvania Turnpike Commission's
practice of allowing nonemergency parking in designated areas along the highway.
In the hopes of preventing similar accidents, the NTSB is recommending that
the Department of Transportation (DOT) develop a list of approved medications
that can be used safely while driving. DOT should prohibit drivers from taking
large doses of drugs not on the list before and during vehicle operation,
contends NTSB. In addition, the Federal Motor Carrier Safety Administration
(FMCSA) should establish guidelines for drivers who use medically required
substances not on the approved list, says the board. Finally, FMCSA should
devise a program to educate drivers on the hazards of using certain medications
while driving, according to the NTSB.
WHAT'S NEW IN ONLINE BUSINESS: Trucking companies
are using new online technologies just as fast as high-tech companies introduce
them. What are some of the latest online innovations? Here's a look: (1) Real-time
exchanges with customers. One carrier uses a new software to monitor the activity
of potential customers visiting the website. The software alerts the company's
customer service representative that a customer is at a decision point. The
customer service rep then clicks on an icon, which places this message on
the visitor's screen: "Hello, this is Steven Smith at the customer service
center in Dallas, Texas. May I help you?" If the customer replies noand
about 30 percent dothen the customer rep withdraws. The remaining 70 percent
of visitors engage in an online exchange, which may or may not result in an
actual shipment. Not only can the carrier execute shipments through the Internet,
but it can generate a list of potential sales leads. (2) Load tracking and
booking. This technology allows a customer to track a shipment through the
entire transit process. And as for load booking, "The major cost-saving
opportunity of this type of Internet service is external," says the company's
vice president of applications development. "We can drive waste out of
the supply chain because customers can give us more accurate, more timely
information." Another capability allows customers to electronically request
and receive proof of delivery documents. (3) Extranet services. Viking Freight
plans to introduce an extranetan area on the website that customers can customize
to meet their own needs. Customers will control how the extranet looks and
what kind of information appears. The system then automatically sorts the
data and only presents the information the customer wants.
PRE-EMPLOYMENT SCREENING MADE EASIER: Fleet managers
are racing to hire new drivers these days. And processing employment applications
quickly can make all the difference in whether they get the candidates they
want. That's why more fleets are turning to pre-employment screening services
like DAC Services in Tulsa, Oklahoma. DAC's computerized system can check
employment histories, criminal records, workers' compensation claims, and
commercial drivers license and motor vehicle records. Eighty-five percent
of the top 200 U.S. motor carriers use the system, which is endorsed by the
American Trucking Associations. Users claim it can save them time and money
and reduce the usual workload associated with verifying job applications.
Carriers begin their search with DAC's Employment History Database, which
contains work histories of millions of commercial drivers. The information,
supplied by other motor carriers, is usually neutral or positive, but an occasional
problem, like the omission of a previous employer, is sometimes exposed. Says
one carrier's director of safety: "It prevents you from hiring somebody
that writes down 'no accidents in three years' and you pull up their previous
employer history and(find) they've had accidents with three" of their
last four employers. Because the Fair Credit Reporting Act regulates DAC's
operating procedures, a driver denied employment based on a DAC report is
entitled to a copy of the report and a Summary of Rights from the company.
Drivers may contact DAC to review their file, and they may dispute any information
they deem inaccurate. DAC must then contact the company that supplied the
questionable information to verify its accuracy. If the information cannot
be verified, it is deleted from the database; if the information is confirmed,
it remains in the file, the driver is notified, and his rebuttal becomes part
of the file.
SLEEP FOUNDATION CONSIDERS HOURS-OF-SERVICE RULES:
The National Sleep Foundation, a nonprofit organization that studies sleep,
sleep disorders, and fatigue, issued a position statement on the hours-of-service
rules. The foundation calls for a "12/12 rule," which limits commercial
drivers to 12 hours on duty followed by 12 hours off duty with 9 uninterrupted
hours for sleep. The group says the proposal should be combined with onboard
monitoring and enforcement by compliance officers. The foundation's research
shows that the more hours on duty, the greater the risk of accidents, and
that noisy, well-lit environments are not conducive to adequate sleep. The
foundation noted that hours-of-service rules alone cannot ensure that drivers
are well rested and alert. "Drivers, carriers, shippers, receivers, and
the government" should share responsibility for driver alertness, said
the foundation. That involves "establishing scientifically based rules
to set maximum limits on driving time and consistently enforcing them."
NEW SAFETY VIDEO FOCUSES ON RAIL CROSSINGS: About
one-fourth of all highway-rail grade crossing collisions involve trucks, according
to the Federal Railroad Administration. Now there's a new safety video, Your
License or Your Life, developed to help prevent such catastrophes. The video
includes advice on avoiding five critical driving situations at railroad crossings
and information on the new 60-day suspension rule for drivers convicted of
disobeying highway-railroad crossing laws. Produced by Operation Lifesaver
(OL), a nonprofit public information group, and its partner the American Trucking
Associations, the video "stresses prevention by providing drivers with
a step-by-step plan for safety before, during, and after they cross the tracks,"
notes OL's president. Says one trucker who participated in making the video:
"As a truck driver, it is of utmost importance to me that our roads are
as safe as they can be. If we can get even a few drivers to improve their
habits after watching this video, all motorists will benefit." Copies
of the video are available by calling (800) 323-0423.
DECISIONS, DECISIONS: One of the most formidable
tasks managers face is decision making. While many managers believe they are
objectively determining the best solution for a problem, many times, their
decision making is flawed by some common errors. Here's a look at those mistakes
and how to avoid them: (1) Consider the anchor. Decisions are commonly based
on prior information. The problem with this "anchor information"
is that it can adversely affect a person's judgment. Managers should use a
number of perspectives to address a problem. And rather than immediately seeking
ideas from others, they should think through the problem on their own to avoid
adopting the biases of others. (2) Forget the status quo. One of the most
common decision making errors is making choices that perpetuate the status
quo. Managers should diligently research alternatives and their influence
on the status quo before making decisions. To help themselves make more objective
decisions, they should consider what they would do if the status quo alternative
weren't, in fact, the status quo. Finally, they shouldn't place too much emphasis
on the cost and effort involved in going against the status quo. (3) Throw
caution to the wind sometimes. When making decisions, there is always a tendency
to adjust estimates or choices to "be on the safe side." This type
of rationale seldom offers practical benefits and can actually be more detrimental
to an organization's success than overambitious decision making.
The greatest tragedy in life is people who have sight
but no vision.
Helen Keller, Writer and lecturer