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The Roemer Report On-Line, May, 2002
TIGHTENING SECURITY: In the days and weeks after September 11, one of the foremost concerns among motor carriers was that a terrorist might hijack a truck carrying hazardous materials and use it to cause mass destruction. Unfortunately, the passage of time has only broadened those fears. Carriers now worry that terrorists may tamper with food products or other cargo that could affect a large number of Americans. Transport Security, which makes high-security locking devices, says many more food and fertilizer carriers are requesting high-security trailer locks since the terrorist attacks. Carriers want to have their trailers locked "100 percent of the time to make sure nothing happens with that load," says one company representative. Yellow Transportation, which already had in place a policy requiring locks on all trucks, now is focusing on its weight and research department. Employees in this department make sure the cargo being loaded matches precisely the size, weight, and height recorded on the accompanying documents. American Freightways has put special emphasis on facility and equipment access and protecting freight. It also upgraded the lighting and security cameras at all its facilities. Meanwhile, other industries are devising new ways to determine what is on a truck. At least three companies have developed X-ray technology that can scan a truck to identify its contents. Such technology can penetrate complex environments and detect details like bomb components, wires, and timing devices. It can also determine whether an attempt was made to camouflage an item. The trucking industry has shied away from discussing security measures in the past for fear of lowering consumer confidence. But in recent months, say experts, the discussion has been open and positive, and cooperation between shippers and carriers has helped enhance cargo security.
BIODIESEL GETS MIXED REVIEWS: While automakers are putting their bets on fuel cells as the way of the future, state and local governments are putting their money on biodiesel. Approximately 80 government fleets across the country now operate on biodiesel, a diesel substitute derived from vegetable or animal fats. Minnesota became the first state to require biodiesel use, despite opposition from trucking groups. The new law, which goes into effect in June 2005, calls for the addition of 2 percent of biodiesel fuel to all petroleum diesel fuel sold in the state. Governor Jesse Ventura, who some believed would veto the bill, gave several reasons for not blocking the legislation. Ventura said the new law will support agriculture, which is critical to the state's economy, reduce dependence on foreign oil, and benefit the environment. Citing higher fuel prices and other concerns, the American Trucking Associations said it will fight the mandate. Only a few companies now make biodiesel fuel, which can be burned in any diesel engine with little or no modification to the engine. According to one estimate, renewable fuels like biodiesel could create 300,000 jobs and inject the U.S. economy with $300 billion through increased jobs and reduced oil imports by 2016. In fact, the federal government recently signed its first-ever long-term contract for biodiesel; World Energy will provide biodiesel to the U.S. Postal Service, Marine Corps, Air Force, and other government branches.
DAMAGED GOODS: In an ideal world, shippers and receivers would be responsible for how freight is loaded and unloaded. But this is not an ideal world, and when there's a problem-crushed cartons, wet product, shortages-the carrier usually gets stuck with the blame. That can mean an adjustment to the freight rate, costing anywhere from a few dollars to the limit of your deductible on insurance coverage. In some situations, though, these claims could have been avoided. "Prevention begins with the education and participation of the driver, your link to protecting yourself from an avoidable expense," says Doug Clark, president of a third-party logistics company. Clark recommends the driver take these actions to prevent problems: (1) Inspect the trailer before loading. Check for problems like torn sidewalls that could damage the product while it is loaded. Look for areas not sealed properly where moisture could enter. For refrigerated loads, check for torn or improperly attached chutes, which could prevent airflow. (2) Check the product's internal temperature before transit. Drivers should verify that the product's temperature matches the temperature written on the bill of lading. If it does not match, have the shipper write the actual temperature on the BOL and notify the customer immediately. (3) Inspect the product. If the driver is responsible for counting the product, he should do so as the load is placed inside the trailer. This is also a good time to look for damaged cartons and other irregularities. If the driver is responsible for the count but is not allowed access to either the loading or unloading, then the shipper or receiver should assume responsibility. (4) Know who to contact in case of problems. Before picking up the load, the driver should know who to contact if a problem with the load occurs.
SMALL BUT DEDICATED: Smaller carriers can compete just as successfully for dedicated contract carriage as bigger carriers. Just consider Landair Corp. of Greeneville, Tennessee. Last year, the company made an impressive financial comeback after several shaky years. The turnaround occurred when the company returned to its roots as a dedicated contract carrier, says the president. Founded in 1981, Landair provided pickup-and-delivery and line-haul transportation for an air freight carrier later acquired by FedEx Corp. Landair's revenue grew quickly, but profits were swallowed up by increased driver turnover, poor equipment utilization, management's struggle to integrate assets acquired from another business, and simply lack of focus. The company lost money for several years, but President John A. Tweed turned the company around by refocusing on the contract carriage business. Last year, when many truckload carriers were struggling, Landair posted a net income of $3.9 million for the first nine months, compared to $755,000 in the same period the year before. Tweed estimates that 50 percent of last year's revenue came from dedicated operations. That compares to 25 percent the previous year, when Landair lost money. "A lot of truckload carriers view dedicated as just a good segment of their business," says Tweed. "We use truckload as a way to increase utilization of dedicated assets."
TOO MUCH RUST: The use of chemicals on winter roads does much more than melt ice and snow. Those well-intended de-icers also promote rust and accelerate the deterioration of vehicles. The president of one Youngstown, Ohio, motor carrier says that he first saw evidence of chloride-related corrosion three years ago and believes the damage stems from chlorides sprayed on the Ohio turnpike and other roads. A manager at a truck parts manufacturer believes road chemicals "shorten the life of parts" and create "an imminent safety hazard." So problematic are the chemicals that the Technology and Maintenance Council, affiliated with the American Trucking Associations, has formed a task force to study the issue. One goal is to get states involved in testing the effects of road chemicals, since their trucks-not to mention power poles, transformers, and anything else along roadways-are just as vulnerable to de-icing chemicals as commercial trucks. Past studies have focused on the effects of salt, not chlorides or other chemicals, on roads. The task force hopes to bring together all parties affected by the road chemicals-trucking, rural electrical cooperatives, and railroads-to work toward understanding the problem and devising a solution.
LESSENING THE IMPACT OF CHRONIC DISEASE: Every workforce faces some type of chronic disease, whether it's asthma, depression, heart disease, or diabetes. Companies that implement disease management programs have discovered that the programs not only reduce the costs of treating these diseases, they also improve their employees' quality of life. These dual benefits, say industry experts, are well worth the implementation and analysis required for disease management programs. For example, the City of Asheville, North Carolina, set up a disease management program for diabetes, because a number of its employees suffer from this chronic disease. After one year of an aggressive disease management program, the city saw medical claims for diabetics drop from $221,056 to $185,074. The following year, diabetes-related claims dropped another $35,000. Before creating a disease management program, experts say organizations must determine who is costing you what. For example, truckers might benefit from a focus on heart disease. Whatever the focus, a comprehensive disease management program should support the physician/patient relationship and the related plans of care. It should focus on ways to prevent complications by implementing effective practice guidelines. It should also educate patients on their own medical self-management.
THINK TANKS: Brainpower is one of the most valuable commodities in businesses today. Yet few organizations are structured to help employees fully develop their intelligence. Some organizations are gaining a competitive advantage by helping employees "get smart": (1) Same old, same old. "Thinking" organizations avoid doing everything the same way for long periods of time. Instead, they encourage employees to rethink the framework in which they complete projects. (2) Make the connection. Employees must think of themselves as the internal link with the external world and use that as their motivation. Organizations focused on intelligence encourage employees to measure their success by the success of the whole, and particularly, the customer's happiness. (3) Reward thyself. Rather than external reward systems, thinking organizations help employees focus on self-reflection and appraisal. Personal reflection is a more powerful and demanding form of motivation, but its rewards exceed the traditional appraisal method. (4) Talk, talk, talk. In the intelligent organization, employees across all levels are encouraged to share ideas, thereby making smarter connections. (5) Change the framework. Ideas and symbols-and relationships between the two-should be displayed throughout the workplace so that everyone can see how ideas feed on one another.
Be kind, for everyone you meet is fighting a hard battle.
-Plato, Greek philosopher and teacher