Insurance For All Your Commercial Trucking Needs. www.InsureMyRig.com. Please contact us today for a no pressure and speedy quote. Contact Us Or call today
888-931-1934 Our decades worth of experience will make your purchase of commercial insurance easier on you!

 

Roemer Report – February 2006

Fatal Truck Crashes At All-Time Low: New figures from the Federal Highway Administration (FHWA) find that the fatal crash rate for large trucks in 2004 fell to its lowest level in 30 years. According to the FHWA, the 2004 rate for large trucks was 1.96 fatal crashes per 100 million vehicle miles traveled. This is the lowest rate since 1975, when the agency began keeping statistics on large truck safety. The previous low was 1.97 fatal crashes per million vehicle miles traveled in 2002. What makes this improvement especially notable is that it comes at a time when U.S. highways handle a record number of cars and trucks. There were almost 6.3 million more registered vehicles in 2004 than in the previous year. The improved safety record is directly linked to the trucking industry’s efforts to increase safety on the roads, according to the American Trucking Associations (ATA). Those efforts include educating four-wheelers about sharing the road with large trucks and increased traffic enforcement for car drivers who operate unsafely around big trucks. Bill Graves, President of the ATA, says, “Motor carrier commitment to safety is making a difference for everyone.” The ATA, however, continues to push for further safety measures, including the adoption of primary safety belt laws in the states that do not have them (see article below) and required use of electronic onboard recorders to document driver compliance with work and rest rules.

Trucking Revenues Up: Trucking companies’ revenues jumped 10.4 percent in 2004, the highest increase in six years, according to a new report by the U.S. Census Bureau. Trucks hauling general freight generated $125 billion in revenue in 2004, amounting to about two-thirds of the trucking total. Specialized freight haulers—requiring flatbed, tanker, or refrigerated trailers—totaled $61 billion in revenue, putting total trucking revenues for 2004 at $186 billion. The previous year’s revenues amounted to $168.5 billion. Here’s what else the report found:

1. In 2004, there were 895,000 company-owned truck tractors on the road, a 3.1 percent increase from the previous year. Smaller trucks and vans accounted for another 212,000 vehicles, up 1 percent from 2003.
2. During 2004, company-owned trucks drove a combined 87.8 billion highway miles—the equivalent of more than a dozen trips to and from Pluto. Total mileage was up 3.6 percent from the previous year.
3. Trucking expenses for 2004 totaled $164.9 billion, $18.9 billion of which was for fuel alone.

Ata Wants Tougher Seat Belt Laws: In an effort to improve safety for truckers and other drivers, the American Trucking Associations (ATA) has launched a campaign urging governors in 28 states to toughen seat belt laws. Twenty-two states, the District of Columbia, and Puerto Rico have “primary” seat belt laws, meaning police can stop drivers for not wearing seat belts. The ATA is targeting the remaining 27 states that have “secondary” laws and New Hampshire, which does not require adult motorists to buckle up. Secondary laws require police to spot another violation before ticketing drivers for seat belt violations. States with primary laws averaged 85 percent seat belt usage last year, while secondary-law states averaged 75 percent usage. If more states passed primary safety belt laws, says a researcher at the Texas Transportation Institute, it “would definitely have an impact.” Each year seat belts prevent 15,700 deaths and 350,000 serious injuries; they save $67 billion in costs associated with injuries and deaths, according to Transportation Secretary Norman Mineta. In 2004, 634 truck drivers were killed in accidents, and 303 of them were not wearing seat belts. ATA President Bill Graves says some truckers don’t use seat belts mainly because they “involve a lack of comfort or flexibility, both of which truck manufacturers are working to improve.”

Training Made Easier: Training simulators, hailed as some as “the way of the future,” allow drivers in training to feel like they are driving the real thing, yet without the risks of collision, the wear and tear on company vehicles, and the burning of diesel. State-of-the-art simulators have been used by the military, commercial airlines, and public safety agencies for years. And now that the price is coming down, motor carriers are joining in. Schneider National, for example, uses high-end simulators that give student drivers a realistic experience of what it’s like to be on the road, to maneuver in a crowded parking lot, or to drive on icy roads or steep grades. The simulator is equipped with a steering wheel, a horn, and a clutch that puts up a lifelike resistance. Three widescreen monitors give a 180-degree field of vision, images appear in the side-view mirrors, and an electronic dashboard tracks the truck’s statistics. Simulators can sell for as low as $60,000, a fraction of the price just five years ago, and of course higher-end units are available for much more. While the cost has dropped significantly in recent years, the cost is still prohibitive for smaller companies. Companies that can afford to invest in the technology save money not only in fuel and vehicle wear and tear, but also in recruiting. Trucking companies believe simulators boost the confidence of young drivers and reduce the percentage of those who quit due to stress. Schneider says that the number of people dropping out of its training program since it bought simulators has fallen, as has the number of people quitting their jobs within 90 days. Likewise, the number of new drivers who have an accident within the first 90 days has fallen by 25 percent.

Technology Aids State Troopers: Faced with tightening resources and a greater workload, state police are turning to technology to help them get their jobs done. Maryland State Police, for example, says it has fewer personnel than it did a decade ago, yet technology has allowed state troopers to reduce fatalities by 2.7 percent in the last three years and conduct 350,000 homeland security patrol checks. “We have to work smarter, not harder,” said Lt. Col. Michael J. Fischer, chief of the Maryland State Police field operations bureau. “We have to come up with innovative ways to maintain public safety and highway safety and most importantly, public trust.” Fischer said well-equipped patrol cars, digital scales, and “virtual scale houses” are helping police screen trucks. The Maryland department uses “enhanced patrol vehicles” with voice-activated radio, radar, and other controls that allow officers to follow vehicles and run checks. Maryland troopers also have Smart-card-enabled laptops that generate reports on truck inspections and more. Digital scales with infrared transmitters project weight reports. Virtual scale houses (pads in the road) transmit truck dimensions, speed, identification numbers, and other data to on-the-road police.

Per Diem Up For Truckers: The IRS has increased the per diem for this year, meaning truckers can deduct more from their federal income taxes for each day’s expenses, including meals, tips, and showers. The per diem for 2006 is up $11 over last year and now stands at $52 per day; the percentage that a trucker can claim as a deduction is up 5 percent from last year at 75 percent. In 2008, the claim allowance increases to 80 percent. Logbooks are the only documentation required to claim the per diem; truckers do not need to keep receipts for meals and showers. However, if a trucker routinely spends more than $52 a day in meals and showers, he may want to save receipts and forgo the per diem. Most drivers, though, find that claiming the per diem is easier and more profitable than saving receipts. Although laundry used to be considered a per diem expense, it no longer is—truckers should document their laundry spending and deduct it separately from the per diem.

People First: Cal Darden worked his way up at UPS, from part-timer on the loading dock to senior manager serving on the board of directors. He says UPS invests in training and development because it believes in putting employees first. That attitude has helped turn UPS into the world’s largest package delivery company and one of the most recognized brands in the world. How did this company grow into a $36 billion corporation that has endured for nearly a century? Darden says there are four
main reasons:

1. Commitment to employees. UPS invests in its people for a life-long career. The company demonstrates its commitment by offering equitable pay and benefits, tuition assistance, and learning opportunities.
2. Commitment to customers. UPS’s goal is to serve the customer and accept responsibility. If a vehicle breaks down or a driver calls in sick, it is not uncommon for a manager to don a brown uniform and deliver the
   package himself.
3. Process. UPS doesn’t just ask, “How can we do the same things better?” It asks, “How can we change the way we do things so we can operate better?”
4. Accountability. UPS makes good on promises, or it pays the price. To that end, UPS pays close attention to meeting targets. It measures things like customer satisfaction so the company will know where it stands and what necessary adjustments need to be made. “Complacency is our enemy,” writes Darden.

 

That which the fool does in the end, the wise man does in the beginning.
—R. C. Tench