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Trucking Forges Ahead: Trucking will continue to dominate domestic freight movement into the next decade and increase its share of freight, according to the American Trucking Associations (ATA). The forecast, produced for ATA by Global Insight, predicts the industry’s total tonnage share will increase from 68.9 percent to 69.5 percent by 2017. Despite recent warning signs of a possible slowdown in the economy, some trucking companies continue to push ahead and expand business. J.B. Hunt, for example, recently bought several thousand new containers for its intermodal segment and gained $100 million in new business for its dedicated contract services. In addition, USA Truck opened a new regional operations center in Spartanburg, South Carolina, and ABF Freight System is expanding its short-haul regional transportation network to include the central and southern United States. Expanding when the economy is quiet might be advisable, according to Lane Kidd, president of the Arkansas Trucking Association. “You’re positioning for the next uptrend. If the economy takes off and you don’t have a location, then you’re too late. You missed it.”
Hot Fuel Gets Cool Reception: A string of federal lawsuits have been filed against fuel retailers over the issue of “hot fuel” in California, New Jersey, Missouri, and Kansas. The plaintiffs are trying to put an end to retailers’ practice of selling fuel warmer than 60 degrees, the temperature that the industry set as the standard for liquid fuel. When fuel is warmer than 60 degrees, it expands, so consumers, in effect, are overcharged for diesel and gasoline. In Kansas, four plaintiffs, including a trucking company, are seeking class-action status for a federal case against 20 fuel retailers and oil companies, including BP Corp., Citgo, and Wal-Mart Stores (where consumers can buy fuel at Sam’s Club). The Missouri and Kansas suits seek claims of at least $5 million and court injunctions requiring companies to “retrofit and install temperature-correction devices to avoid future damages.” More lawsuits in other states are expected. Retailers have said that retrofitting fuel pumps with equipment to regulate temperature would cost billions of dollars and would offset any consumer savings since consumers would ultimately be stuck with the bill. However, fuel retailers have already retrofitted pumps in Canada, because fuel temperatures there average less than 60 degrees; fuel colder than 60 degrees ends up costing retailers and benefiting consumers.
Who's Behind The Wheel? In the last five years, the federal government has uncovered commercial licensing fraud in 24 states, according to the Chicago Tribune, and it is currently investigating 21 cases in 13 states. At one point, the government believed 15,000 CDL holders obtained their licenses under suspicious circumstances. Less than half of those drivers, however, could be accounted for, because states are lax at testing and tracking license holders. States have a long to-do list, and “going after suspect fraudulent licenses may not be No. 1,” said a spokesman for the American Association of Motor Vehicle Administrators. A federal report recently declared that “unskilled drivers could be operating commercial vehicles on the nation’s highways, creating significant risks for death, injury, and property insurance.” Also of major concern is the fact that potential terrorists could easily obtain their CDLs. Officials recently arrested an Indian national, who was seeking a hazmat endorsement at a school in Rhode Island. The suspect was not interested in learning how to back up or maneuver a rig, but showed an eager interest in obtaining a hazmat endorsement. A Highway Watch participant reported the man and that led to his arrest. In this case, the system worked. But in Macon, Georgia, the owner of a truck driving school falsified tests for 623 students over several years. When state officials located and retested drivers, only 142 were qualified to keep their licenses. At other schools, students have passed tests without being present, while some students were given answers to tests, and others had somebody else take the test for them.
Have Gray Hair, Will Drive: Some trucking companies are actively recruiting older workers, whom they see as reliable and trustworthy, with good driving records and valuable life experience. Laid-off workers, forced retirees, and second-career workers tend to stay longer in their jobs and are typically excited about their new career. The driver shortage, now around 20,000, is expected to increase fivefold by 2014, according to the American Trucking Associations. Schneider National believes driving a truck for a living has become less desirable among today’s younger workforce, so two years ago it decided to actively recruit older workers. Last year, the company’s workforce of drivers aged 50 and older was up 85 percent. Today, more than 30 percent of Schneider’s workforce consists of workers 50 and older. Todd Jadin, senior vice president of operations, says Schneider has been pleased with its older workers. “What we found is that this is a demographic we are having good retention experiences with,” said Jadin. “They bring a life experience and business maturity that is very attractive to us in a service-oriented environment.” Truck driving schools, such as Best Way Truck Training in Chicago, are seeing an increase in older students. The school’s owner said trucking companies are attracting older workers by marketing driving jobs as expense-paid vacations. Some companies allow drivers to bring their spouse along. Because older drivers are viewed as more responsible, they are more easily placed in driving jobs. “Older drivers know the value of a dollar, so [trucking companies] see them as more trustworthy with a truck with $1 million of merchandise on it,” said the owner of another driving school.
Ohio Truckers Breathe A Sigh: Last month, the Roemer Report noted that Ohio truckers could no longer smoke legally in their cabs, due to a new law banishing smoking in most Ohio workplaces. A month after the law went into effect, however, the state Department of Health exempted commercial trucks from the smoking ban. Under pressure from critics in the trucking industry, the Health Department says solo drivers can legally smoke behind the wheel; truck drivers with one or more passengers, however, are still prohibited from smoking. Under the former law, trucking companies would have had to remove all ashtrays from their rigs, costing as much as $1,000 for some trucks. “We’re not supposed to be regulating smoking—we’re supposed to be regulating secondhand smoke,” said Larry Davis of the Ohio Trucking Association. Health officials “made a good stab at responding to our concerns.”
A Model For The Nation? California Governor Arnold Schwarzenegger has proposed a $12 billion universal health insurance plan for all state residents, which he described as a model that could be used by the rest of the nation. Under the plan, every Californian would be required to have a minimal amount of health insurance, whether it’s purchased individually, through an employer, or through a state program. Very low-income, uninsured residents would receive coverage through the state’s Medicaid program, and their premiums would be completely paid by the state. Companies with 10 or more employees that do not offer health insurance would be required to pay 4 percent of their payroll into a state fund earmarked for insurance coverage. Hospitals and doctors would also pay into this fund. In addition, insurance companies would be required to spend 85 percent of their premium revenues on patient care, not administration, and they would be prohibited from rejecting applicants because of existing illness. The plan would also cover illegal immigrants. “I know this is controversial,” said Schwarzenegger, “but federal law requires us to treat anyone who shows up at an emergency room in need of care.” Other states are expected to propose similar reform packages. Last year, Massachusetts and Vermont passed
similar measures.
Boosting Your Company IQ: How can you increase your company’s ability to learn? Here are some ideas:
- Get involved. Don’t leave learning solely up to HR or training. Leaders are the ones who set the tone in the company, and if they want the tone to focus on learning, they must be involved.
- Conduct an audit. A simple questionnaire can help you gauge your organization’s current attitude about learning. Which initiatives encourage learning and what impedes learning? Taking this step shows that you want to ask tough questions and hear honest answers.
- Don’t wait. There is no perfect time to begin. Learning is messy and intermittent. Even if you don’t have a plan in place, do something—even if it only involves examining your own learning habits and trying new approaches.
- Learn in public. Your behavior is more powerful than your words. If you want employees to take more control of their learning, set a good example—let them see you learn. That means sharing stories about successes and failures, asking questions, and even being unsure.
- Foster relationships. Some of the best learning occurs face to face. When you automate learning with technology, you lose the connections that allow people to learn from each other. Knowing which person to turn to for special expertise is critical for promoting a strong learning culture.
The greatest discovery of my generation is that a human being can alter his life by altering his attitudes of mind.
—William James (1842-1910)
