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Roemer Report – August 2007

SPEED LIMITERS LIKELY IN ONTARIO: Ontario legislators have proposed a law that would require mandatory speed limiters on heavy trucks operating in the province, regardless of where they are based. That means all trucks—including U.S. trucks—that do business in Ontario would be required- to have speed limiters that limt them to 105 kilometers per hour (km/h), or about 65 mph. The law would take effect sometime in early to mid-2008. Two years ago, the Ontario trucking industry began pushing the government for speed limiters in order to improve road safety and save money on fuel. The Ontario Trucking Association estimates that speed limiters would save a tractor-trailer about 10,500 liters (2,774 gallons) of diesel fuel each year and cut greenhouse-gas emissions. Some long-time Canadian truckers, however, aren’t convinced the plan will work. One veteran driver predicts, “It’s going to be a rolling road block all the time. We’re not going to be able to pass another truck or car that’s going up a hill. It’s going to cause more havoc on the highway.” Other truckers voice concern about doing business in the United States. Some states have a posted speed limit of 75 mph, but truckers from Ontario would be limited to traveling at about 65 mph. The concern for U.S. truckers is how the new law would apply to them. This unfolding story and its ramifications should be of great interest to U.S. motor carriers, since speed limiters could very well be required in this country.

WEALTHIER DRIVERS TAKE MORE RISKS: A new poll of Washington state drivers finds that drivers with a household income of more than $75,000 are more likely to speed and talk on the cell phone. In other words, there is a direct correlation between income and driver behavior, according to the poll. The survey also finds that drivers with higher incomes believe that talking on a cell phone should be legal while driving. The most likely drivers to speed are males under 55 with at least one child and a household income of at least $75,000 or more. Those least likely to speed, according to the poll, are females over 55 who have no children and earn less than $75,000. The governor of Washington recently signed a bill into law that will make talking on a cell phone without a hands-free device illegal, starting next year. Critics say the law doesn’t go far enough, but the survey of Washington drivers finds that wealthier drivers oppose any kind of regulation on cell phone use.

PREVENTING CARGO THEFT: Of all the transportation sectors, trucking is by far the biggest victim of cargo theft. About 85 percent of freight losses occur in trucking; the remaining 15 percent of freight theft occurs in warehouses, air, and rail. Estimates of cargo theft vary greatly. The FBI puts the figure at $12 billion annually, but it concedes the figure could be four times that number. Most cargo crime in the United States is nonviolent theft of trailers parked in unsecured yards or left unattended. Glenn Nilsson, chairman of Transported Asset Protection Association (TAPA), says the biggest cause of theft is due to driver error. The driver pulls off the highway, leaves the tractor-trailer unattended, and in a matter of minutes a thief who’s been following the vehicle jumps into the cab, bypasses the ignition to start it, and the trailer is gone. Ed Petow of FreightWatch says thieves are becoming increasingly sophisticated. Cargo bandits will get an “order” for a product, such as digital cameras or infant formula, and will then conduct surveillance at the manufacturer’s distribution center to determine which trucks are moving which products. They then will follow a truck that leaves late in the afternoon and wait for the driver to stop for dinner. Most thefts occur within 200 miles of the point of origin. One solution, according to Petow, is for drivers not to stop for the first 200 miles “no matter what.” Other precautions include using GPS, security devices, team drivers, escorts and security audits by organizations such as TAPA.

ROADCHECK TARGETS DRIVERS: During Roadcheck 2007, the Commercial Vehicle Safety Alliance
(CVSA) and the Federal Motor Carrier Safety Administration (FMCSA) inspected more trucks than they ever have in the 20 years of the campaign. Over 62,000 trucks were inspected at nearly 1,500 locations across North America. The results found that more drivers were wearing safety belts and complying with hazmat regulations. Figures also showed slight increases in the number of drivers and vehicles taken out of service, but that doesn’t mean that trucking is less safe, according to CVSA—it simply means that inspectors have improved their skills at targeting trucks that may have problems. This year’s inspections were not performed on random trucks, but were primarily based on previous records of the motor carrier or the driver. Inspectors used a computerized system into which they entered identifying information for the vehicle, company, and driver. The system then analyzed the data and responded with one of three recommendations: “inspect,” “inspection optional,” or “don’t inspect.” Because of the targeted inspections, more drivers (6.2 percent) were placed out of service this year than last (5.6 percent), with the main reason being HOS violations. The percentage of vehicles placed out of service this year (21.5 percent) is comparable to last year’s figure (21.7 percent). Brakes accounted for 54 percent of total vehicle defects. Other problems were with lighting (14.1 percent), load securement (10.4 percent), and tires/wheels (9.1 percent). The CVSA executive director says that during the last several years, inspectors have received extra training in the areas of driver interviews, HOS, cargo securement, and safety belt enforcement, and that is why “we are seeing these results.”

‘MOVE OVER’ CAMPAIGN LAUNCHED: During the last decade, more than 150 U.S. law enforcement officers have been killed by vehicles along the nation’s highways. To protect officers along the nation’s roadsides, a new coalition of law enforcement and traffic safety groups is launching a campaign to educate the public about highway safety. “Move Over, America” is a campaign intended to inform drivers about the country’s “Move Over” laws and how they are meant to protect law enforcement officers. According to a national survey, 71 percent of Americans have never heard of Move Over laws. Move Over laws require motorists to “move over” or change lanes in order to give safe clearance to officers who are on the side of the road. This includes police cruisers, Sheriff’s or Highway Patrol vehicles, fire trucks, and ambulances. If the road is a two-lane highway, then the law requires drivers to slow down to at least 20 mph under the posted speed limit. Forty states have Move Over laws, but 86 percent of respondents said they support enacting Move Over laws in all 50 states. “Our nation’s law enforcement professionals put their lives on the line to protect our citizens,” said Bill Johnson of the National Association of Police Organizations. “Slowing down and changing lanes to give our first responders the space they need to stay safe is the least we can do in return.”

TERRORISM INSURANCE POPULAR: Despite its rising costs, terrorism insurance remains popular among the majority of large U.S. companies, according to a new report. Fifty-nine percent of U.S. companies purchased or renewed their property terrorism insurance coverage last year, compared to 58 percent the previous year and 27 percent in 2003, New York’s Marsh Inc. reported. The biggest purchasers of terrorism insurance were financial institutions, real-estate firms, utilities, and educational institutions. New York City had the highest number of purchasers, followed by Washington, D.C., and Dallas. Meanwhile, legislators are trying to write a draft for a bill to renew the federal backstop for terrorism insurance. The backstop, created after 9/11, was renewed twice, but is facing fierce debate about what exactly should be covered. Legislators and policyholders want to add nuclear, biological, chemical, and radiological attacks to the list of conventional terrorism risks. But groups like the Property Casualty Insurers Association of America are hesitant, saying that nuclear bombs and other unconventional terrorist attacks are like acts of war and should be covered by the federal government.

ONE SMALL ACT OF KINDNESS: Back in 1972, researchers set out to see what it would take to motivate people to reach out and give to others. They placed a dime in the coin return slot of payphones in a shopping mall. Moments after a shopper discovered the dime, a man nearby dropped a folder full of papers. Those who found the dime were 84 percent likely to stop and help collect the papers. Of those who didn’t find a dime, fewer than 5 percent stopped to help. The researchers concluded that even the simplest positive act (like finding a dime) can cause a chain reaction of goodwill. In today’s society, many of us feel too rushed or busy to reach out to help others. But researchers Craig and Marc Kielburger say that helping others is actually a way to help yourself. “By giving back to your community through simple good deeds, you create a sense of abundance in which you feel grateful not only for what you have, but also for what you give,” write the researchers. As South African Archbishop Desmond Tutu says, “One small act of kindness can make a world of difference.”

Energy and persistence conquer all things.—Benjamin Franklin