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SMA2005 Looks Good For Trucking: Freight traffic just keeps growing, according to the latest data from the U.S. Department of Transportation. The Transportation Services Index, which tracks cargo and passenger traffic in various modes, increased in October to its highest number yet, 126.7—a figure that’s 6.6 percent higher than it was for that month in 2003. The freight component of the index increased to 5.9 percent higher than the previous October. “Today’s record high Transportation Services Index shows just how important transportation is to the American economy,” said Norman Mineta, secretary of transportation. “The fact that we have seen three straight years of growth in passenger and cargo traffic is a clear indication that our economy is strong and getting stronger every day.” Meanwhile, the nation’s top economists predicted that this year’s economic conditions would be just as good, or slightly better, than last year’s. The economists, surveyed by BusinessWeek magazine, predicted that real growth domestic product would grow by 3.5 percent this year and corporate profits would grow by 6.7 percent. Inflation was predicted to remain in check at 2.2 percent. Speaking at the National Truck Equipment Association, one analyst predicted medium-duty truck sales would increase nearly 20 percent this year, and Class 8 trucks would continue to increase for the next two years. However, there are some potential dark clouds on the horizon, including rising oil prices, the declining U.S. dollar, fears of inflation, and consumer debt.
Carriers Offering Better Benefits, Pay: Barr-Nunn, based in Grainger, Iowa, is making an offer that many drivers can’t refuse. It’s guaranteeing owner-operators who fuel within its fleet network a diesel price of 99 cents per gallon. With more than 99 percent of its contractors taking advantage of the offer, Barr-Nunn was in a better position to negotiate fleet discounts. Even better news for the carrier is that driver turnover has dropped from 90 percent to 60 percent and owner-operators are signing on as new drivers. “At first it cost us a pretty penny,” said Barr-Nunn’s director of recruiting, “but now our fuel surcharges have caught up with it….We’ve gone from losing 14 to 15 owner-operators per month to losing four to six per month.” Other motor carriers are also finding ways to hang on to drivers. Here are some examples:
- Schneider National recently announced a pay hike for its owner-operators from 86 cents to 90 cents. That amounts to an extra $4,000 for a driver running 100,000 miles per year. The average pay increase for company drivers will be $4,000 per year.
- Dart Transit announced a second round of pay increases for owner-operators. Between the two increases, contractors will get an additional $7,500 per year.
- Heartland Express announced a pay increase of 3 cents per mile. When combined with another recent pay increase, Heartland drivers will earn 15 percent more this year than in 2003.
- At Parrett and U.S. Xpress, sign-on bonuses for owner-operators are $5,000. Paschall Truck Lines offers a $7,000 sign-on bonus to owner-operators and a $3,000 sign-on bonus to company drivers.
Hybrid Engines Look Promising: With the operating benefits and more manageable upfront costs, hybrid engine systems are poised to start competing more seriously with traditional diesel engines, says one proponent of alternatively powered vehicles. Bill Van Amburg of WestStart-Calstart says that hybrid engines may be best suited to urban areas, where vehicles typically do a lot of stopping and starting. “I do believe, based on our market assessment to date, that medium- and heavy-duty hybrids will start to emerge over the next two to three years in certain key markets: refuse, utility/specialty, regional/beverage delivery, and parcel delivery,” said Van Amburg. “The reason is simple—there is a business case for [fleet] users in urban environments based on fuel reductions plus reduced engine, brake, and other vehicle maintenance, coupled with increased utility productivity.” The main driver behind hybrid engines, says Van Amburg, will be fuel cost reduction. Once fleets realize just how much they can save they will be more interested in making that initial investment. A hybrid utility service truck, for example, is being purchased by a Florida electric utility. That vehicle will see fuel economy improvements of 40 to 60 percent, said Van Amburg. In addition to fuel savings, hybrid systems will extend maintenance intervals and will perhaps have longer lives since the engines don’t run as hard or as long as diesel engines.
A Busy Year For FMCSA: With 20 rules on its agenda and several more in the works, the Federal Motor Carrier Safety Administration (FMCSA) has its hands full this year. But its number one priority is the Hours of Service rule, with its September deadline. “Setting regulatory standards are the underpinnings of our mission since they lay out the rules and requirements for companies and drivers,” said James Lewis, FMCSA spokesman. “Ensuring that effective and enforceable HOS rules are in place by September 30 is FMCSA’s number one rulemaking priority.” The agency has assembled an HOS team, which consists of internal experts from the field, program, and legal offices. Their goal is to complete the rulemaking process as effectively as possible so that other FMCSA proposals will not be stalled. Other rules on the agenda this year include a unified registration system, intermodal container chassis, cargo securement, acute and critical violations, a new entrant assurance process, biometric identifier, commercial learner permits, electronic onboard records for HOS compliance, and medical qualification requirements as part of the CDL process.
Sticking Up For Truckers’ Rights: The Owner-Operator Independent Drivers Association (OOIDA) is urging the government to protect the privacy rights of hazmat drivers who undergo background checks. In comments issued to the Transportation Security Administration (TSA), a branch of Homeland Security, the association said that “privacy is the most important issue for truck drivers concerned about the impending background checks.” The organization went on to say that truckers’ “biggest worry is that private information will be misused or that incorrect or ambiguous information will become attached to their professional reputation and work history. Either scenario could put an end to a trucking career.” OOIDA said it is concerned about what can happen when many people have access to sensitive, private information. Under the Patriot Act, all CDL holders seeking a hazmat endorsement must submit their fingerprints and obtain security clearance from the TSA. OOIDA submitted its opinion after the TSA requested public comments about proposed changes in the background check rules. Changes include the removal of simple drug possession from the list of crimes that can disqualify a hazmat driver. Arson is now listed as an “interim” disqualifier, instead of permanently disqualifying a driver as before. Murder, previously on the “interim” list, can now permanently disqualify a driver.
Grief Takes Its Toll: No matter what the product or service, every employer, at some point, must deal with employee grief. Parents, friends, spouses, and siblings die, and families often must deal with strife such as divorce. All of these situations take their toll not only on workers, but on businesses as well. The Grief Recovery Institute recently began measuring the financial effect of grief on U.S. businesses. The research was no small task, considering that Americans mourn 2.4 million loved ones annually. The Institute found that grief takes a considerable monetary toll on businesses, to the tune of $75 billion a year. Of the over 25,000 grieving employees interviewed, all said their sorrow had an impact on their job performance. The Institute studied the associated costs of a number of types of grief, from the loss of a loved one, to divorce and marital problems, to the death of a pet. The Institute found that the annual cost to U.S. businesses from workers grieving over a pet is $2.4 billion. The death of a loved one accounts for $37.6 billion in losses, due to decreased productivity and increases in errors and accidents. Grief experts say grieving workers should ask for “grief breaks” during the workday to help them be more productive. Grieving workers should try to take a walk, talk with a co-worker, or simply get away from the tasks at hand.
Change Begins With You: The best kind of change occurs when people are able to adapt and grow along with the organization. When employees see their leaders adapting to change, they are more likely to take it on willingly. Here are four ways to cultivate personal change:
- Learn as you go. There’s nothing more stagnating than thoughts like, “That’s the way we’ve always done it.” Open yourself up to new viewpoints, listen to others’ opinions, and consider all feedback.
- Be frank. Lay all the information on the table so people can make the right decisions. When people know the truth, they feel empowered and can work smarter and better.
- Awaken your sleeping genius. Get “good enough” at basic skills you need, and then optimize your main talents and strengths. Recognize areas in which you don’t need to be a genius and let others take over. Awakening your true talents increases productivity, satisfaction, and joy.
- Drop the roles that bind you. Some people cling to certain roles, like Victim (complaining), Villain (blaming), or Hero (sacrificing). If you feel a flattening of energy or a sluggishness, you may be succumbing to one of these roles. Try stepping back and observing your words and actions. You may decide a more positive outlook is in order.
A prudent person avoids unpleasant things; but a wise one overcomes them.
