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The Roemer Report On-Line, November , 2004

EXPEDITED’S SHIFT TO TRUCKING: During the recent economic downturn, shippers tried to save money by moving domestic, time-sensitive freight on the ground, rather than by air. Now that the economy appears to be picking up, there’s no sign to suggest that shippers are returning to air for their expedited freight. “I don’t see a rush back, even though the economy is improving,” says one trucking analyst. “The shift away from air, for the most part, has been permanent.” Ground networks have expanded, and more operators are offering reliable, expedited trucking service. Consequently, shipments that once moved by air now arrive almost as quickly—and far less expensively—by truck. The average cost savings in moving freight by truck versus air is 30 to 50 percent. Furthermore, when shippers choose air, the freight has to be trucked to the airport, loaded on the plane, flown to another airport, and then unloaded on to another truck. With expedited trucking, freight is handled a lot less. “If you need to fly something overnight from Los Angeles to Atlanta, then obviously you can’t truck it,” says one expedited trucking executive. “But anything in the 600 mile and under range and we’re right there.” When it comes to using trucks instead of planes for expedited services, says the executive, “I think the trend is definitely here to stay.”

ONE-YEAR EXTENSION ON HOS RULES: Congress has declared that the new hours-of-service regulations, which took effect January 4, will remain in place, despite an earlier court ruling that threw out those regulations. The new rules will remain effective until September 30, 2005, or until new rules are in place. During the past two months, there has been much confusion over which hours-of-service rules to follow. A U.S. Court of Appeals for the District of Columbia had called the new rules “arbitrary and capricious because the agency neglected to consider…the impact of the (rules) on the health of drivers.” The court ruled that the Federal Motor Carrier Safety Administration must revert to the old rules while new ones were being written. The trucking industry and law enforcement both appear to be relieved at the Congressional ruling, although trucking is not pleased about having yet another set of HOS rules to comply with in a year.

AN ALTERNATIVE TO IDLING: As diesel fuel prices climb and concerns about fuel emissions escalate, alternatives to idling are drawing more and more interest. IdleAire, a maker of an alternative idling system, has partnered with an international firm to deploy its technology to more than 200,000 truck parking spaces at various travel center locations across the country. The company estimates it will have from 50 to 100 IdleAire spaces at each truck stop and travel center within the next few years. “We were told that fleets wouldn’t accept (this kind of technology) and drivers were too independent to try new things, but, yes, they do,” said an IdleAire co-founder. The independent, external system allows drivers to park, shut off the engine, and turn on appliances, air conditioning, or heat. In the United States, 1.3 million trucks are long-haul trucks with sleeper cabs that rely on diesel engines for the power supply. IdleAire believes by rolling out its system nationwide it is “poised to revolutionize the trucking industry.”

THE PAYOFFS OF TECHNOLOGY: A researcher at the University of Chicago says that the trucking industry has gained “significant increases in productivity” thanks to wireless networking applications. The increased productivity is primarily due to improved decision making and better systems of communication, allowing dispatchers to more effectively match truckers with available freight. Thomas N. Hubbard, associate professor of economics and strategy, says that the on-board computers that have most boosted productivity are the electronic vehicle management systems, which transmit geographic position to dispatchers and allow dispatchers and drivers to communicate with text messaging. Studying figures from 1997, Hubbard estimates that on-board computers increased a truck’s utilization rate by an average of 13 percent. This is roughly equivalent to getting an extra 200-mile haul per week from each truck equipped with the technology. This improved capacity, says Hubbard, translates to a 3.3 percent higher capacity for the industry as a whole, contributing $16 billion to the economy. Achieving these benefits, however, took time, says Hubbard—in fact, he noted, “it took much longer to realize those gains than people expected.” That’s why investing in wireless applications should be considered a long-term investment.

CAR SAFETY LACKING: A recent study finds that 93 percent of U.S. drivers on the road are poorly prepared for driving, thus increasing their chances of a road incident. The study, conducted by the National Safety Council and based on a public opinion survey, revealed that behaviors conducted before starting the car can help reduce two of the leading causes of serious car crashes: seatbelt use and incorrectly inflated or unevenly worn tires. Last year, incorrectly inflated or unevenly worn tires contributed to more than 20,000 serious car accidents. NSC recommends the following basic safety precautions before getting behind the wheel: buckling seatbelts, making sure they’re properly fastened; adjusting mirrors; turning off cell phones; paying attention to any engine warning lights; securing loose objects; checking fuel level; and properly positioning seat and head restraints.

WEIGHTY ISSUES IN THE WORKPLACE: For years, society and employers have viewed obesity as a personal issue, not a health problem. But as the number of Americans suffering from obesity continues to rise, along with its related health problems, some employers are taking a second look. The Centers for Disease Control reports that the number of obese people in the United States rose an alarming 61 percent from 1991 to 2000. The phenomenal medical costs associated with obesity have affected the way some employers are now approaching obesity in the workplace. For example, Type 2 diabetes has an annual medical cost of $2.4 billion, with 61 percent of that cost attributable to obesity. In addition, hypertension has associated medical costs of $1.6 billion, of which 17 percent is attributable to obesity. The Internal Revenue Service (IRS) took one of the first steps in acknowledging, “obesity is medically accepted to be a disease in its own right.” The IRS has determined that Americans diagnosed as obese could deduct the cost of participation in weight-loss programs as a medical expense. Coors Brewing Company offers weekly weight management classes at various worksites to help employees deal with obesity. Coors is also offering pedometers to employees to help them determine if they are meeting the surgeon general’s recommendations for daily exercise. Some workplace experts believe the greatest strides in combating obesity may come when employers begin to pay for obesity-related treatments, such as gastric bypass surgery and drugs used to treat the disease.

IN ALL HONESTY: When’s the last time you attended a meeting and heard statements like these: “I don’t know,” “This makes no sense to me,” “I’m having a tough time with this and need help,” or “I’m stuck.” If you’ve heard any of these statements recently, congratulations. Your organization is one of the few, one that encourages people to freely express themselves. The majority of companies only hear such phrases when the business reaches some kind of crisis point and complete honesty is the only option. But imagine how different things would be if people always voiced their thoughts. Ford Motor Company once hired Peter Senge to elevate the contribution of one of its teams. After attending a few meetings, Senge suggested that, during the following six months, each team member voice a question or concern as soon as it occurred to them. In six months’ time, the team showed dramatic improvements in each of its measures of performance. Here are some other ways to encourage open communication: (1) Ask for frank self-assessments of progress and disappointments, (2) Openly discuss necessary adjustments that involve all team members (i.e., who needs to do what differently; what needs to be stopped or delayed), (3) Make it a habit to ask for feedback and help, and (4) Renew the team’s commitment to doing great work.

You cannot dream yourself into a character; you must hammer and forge yourself one.—James A. Froude