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The Roemer Report On-Line, October, 2002

NEW CDL RULES IN EFFECT: The Federal Motor Carrier Safety Administration (FMCSA) recently issued new rules concerning commercial driver’s license provisions, which go into effect September 30. According to the FMCSA, the new rules could disqualify nearly 26,000 truck drivers each year. The rules are intended to remove drivers from the road who are convicted of serious violations in commercial or personal vehicles. A commercial driver will be disqualified if his noncommercial license is canceled, suspended, or revoked due to traffic violations while operating a passenger vehicle or due to drug- or alcohol-related offenses while driving a passenger vehicle. In addition, “hardship” licenses for truckers will be discontinued. FMCSA said that such licenses, which allow convicted drivers to retain CDLs so they can work, are not appropriate for professional drivers. The tighter rules were mandated by Congress after it learned that drivers with long violation records and license suspensions in one state could get CDLs in another state. The new rules also require state governments to check driving records for a CDL applicant in all states where the driver had a license to drive any type of vehicle. In addition, states must update all convictions by CDL drivers within 10 days. FMCSA expects drivers to inform licensing agencies of states where they previously had licenses and to tell employers if their licenses have been revoked. “The loophole in this rule is that nobody is notifying the employer,” said one American Trucking Associations official. “Because of the job consequences, a driver is not always going to tell the employer of the disqualification.”

TRUCKING SHOWS HINTS OF STRENGTH: Often considered a leading economic indicator, the trucking industry is showing at least some signs of recovery. Freight tonnage grew 3.5 percent in the second quarter and truckers’ bottom lines have improved. “But [that] doesn’t necessarily mean they’ve seen a surge in freight levels,” says one economist. In fact, it appears to be consolidation—not an increase in demand—that is behind the industry’s signs of economic health. Trucking firms are hauling more freight because there are fewer of them around than there were two years ago. One researcher estimates there are 13 percent fewer trucks on the road than two years ago. Consequently, trucking analysts caution against painting an overly optimistic picture of economic recovery. Still, many companies are doing much better than a year ago. Werner Enterprises, one of the largest U.S. trucking companies, experienced a 37 percent increase in earnings for the second quarter compared to a year ago. And other ground-based transportation companies are also enjoying increased earnings. Not only was truck freight up 2.1 percent in the first five months of the year over the previous year, but carload freight shipping on trains was up 3.9 percent and container shipments were up 8.3 percent in mid-July compared to a year ago. Trucking executives say technology is helping them keep costs down so they can squeeze profits out of less revenue. The chairman and CEO of Yellow Corp. said improved logistics software has allowed companies to coordinate truck movements around the country more efficiently. Bill Zollars added that he is encouraged by the second quarter’s improved earnings, but business appears to have leveled off since then. “The economy seems to be getting better,” said Zollars. “But I still think there is fragility in the numbers we’re seeing.”

SAFE DRIVERS ARE CRITICAL: Earlier this year, American Trucking Associations President William Canary called for a crackdown on speeding for both four-wheelers and 18-wheelers. But he’s not the only one to recommend tougher enforcement along U.S. highways. John Van Steenburg, a major in the New York State Police and a former president of the Commercial Vehicle Safety Alliance, says that current data suggest that driver error—not faulty equipment or bad weather—was a contributing factor in the majority of fatal and serious injury crashes. Van Steenburg cites New York data, which show that 35 percent of large truck crashes occur at intersections that have a stop sign or traffic light. He believes that traffic violations reflect overall driving habits and attentiveness. And while he supports the vehicle inspection program, Van Steenburg believes improved traffic enforcement is critical for the Department of Transportation to meet its goal of reducing truck-related fatalities by 50 percent. “I believe we are missing the picture,” says Van Steenburg. “We need to leverage the resources of all law enforcement, not for inspections but to enforce the rules of the road against the commercial vehicle operator who’s violating traffic laws and operators of passenger cars who drive recklessly around trucks.” It appears the Federal Motor Carrier Safety Administration may be on the same track. One official recently said the agency will devote more resources to checking drivers and fewer toward inspecting trucks, pending the results of the agency’s ongoing study to determine whether drivers—not unsafe vehicles—are the main cause of truck crashes. To date, the study has found that most truck crashes are indeed due to driver error.

DIESEL EXHAUST LINKED TO LUNG CANCER: After decades of research, the Environmental Protection Agency recently concluded that long-term exposure to exhaust from diesel engines likely causes lung cancer and other respiratory illnesses. The report found a “persuasive” link between “potential cancer hazard to humans” and chronic inhalation exposure of emissions from heavy-duty diesel engines operating on the nation’s highways, farms, and construction sites. The study focused on diesel engines made before the mid-1990s, when the government began pressing for tougher emissions standards. New fuel and engine technology is expected to produce dramatically cleaner engine exhaust by 2007. Experts anticipate a 90 percent drop in hazardous exhaust particles from on-road vehicles. The Bush administration said it will also step up efforts to regulate emissions from off-road diesel-engine equipment, such as farm machinery. One study found that over 8,500 annual deaths are caused by high levels of air pollution from such equipment.

TRUCKERS WINCE AT FLORIDA PROPOSALS: In Florida, the number of accidents involving heavy trucks climbed from 8,078 in 1997 to 9,380 last year. U.S. Rep. John Mica, who is facing a tough re-election campaign, thinks he has an answer. The Republican member of the House Transportation Committee recently proposed that heavy trucks be banned from Interstates 4 and 95 during rush hours to make roads safer for other motorists. He also is encouraging the state to consider lowering speed limits for big rigs, restricting them to certain lanes on the interstates, and tightening licensing requirements for truck drivers. James Long of the Florida Trucking Association said he had “grave” reservations about a plan that would limit legally licensed trucks from operating on interstates. Long said that he has never heard of any data suggesting that slower trucks would make highways safer. Mica countered that his proposals are not based on data, but on a string of recent accidents. The issue of truck safety is popular with many voters, who say they fear big trucks on highways. But some studies have found that Mica’s proposals don’t hold water. For example, different speed limits for trucks and passenger vehicles may actually create more safety hazards than it solves, according to some researchers. And transportation officials resist the idea of restricting big trucks to certain lanes; forcing truckers into right lanes would make merging tough for other drivers, and it would be dangerous when trucks need to take left-hand exists.

TORT REFORM NEEDED TO CURB INSURANCE COSTS: It’s not just the trucking industry that is facing soaring insurance rates. Builders, manufacturers, and the medical community all have been hit hard by rising insurance costs. They blame the legal system with its flood of lawsuits and excessive jury awards. The American Trucking Associations released a report in January that concluded that increases by as much as 500 percent in auto insurance liability policy pricing corresponded directly to the dramatic increase in lawsuits against motor carriers. According to the Council of Economic Advisers, the U.S. tort system is the most expensive of all industrialized nations, costing Americans $180 billion per year. David M. Golden of the National Association of Independent Insurers says that “meaningful” tort reform is the solution to escalating insurance rates in all industries. Such reform, he believes, should include (1) adopting a collateral source rule, which would take into account whether a plaintiff is already receiving financial support; (2) establishing caps on “pain and suffering” judgments; and (3) permitting periodic payments of future damages to ease the financial strain on insurers with large settlements or judgments. Golden says the “trucking industry can be a powerful force in paving the way for tort reform.” All industries affected by high insurance rates, he says, “should recognize there may never be a better time to effect legislative change and encourage its members to take an active role in the judicial elections that are taking place in many states right now, including Texas, Ohio, California, and Illinois. If state supreme court changes take place in these bellwether regions, it could have a significant impact that will be felt across the country’s judicial system.”

DO YOU KNOW WHAT I MEAN? A little girl was saying her nightly prayers. “Our Father, who does art in Heaven. Howard is his name,” she recited. While we chuckle at her “interpretation,” it’s a reminder of how we often misunderstand what we’ve heard. In the workplace, misinterpretation can have long-lasting negative effects. While some may argue that how we say things is simply a matter of semantics, changing a few words can make a world of difference. For example, when you ask an associate, “Do you understand that?” you inadvertently put him in an awkward position. He may feel reluctant to answer no, since that would imply he’s “stupid.” Instead ask, “Did I explain that clearly?” If he answers no, you can offer more information and you haven’t belittled his intelligence. The same applies to seemingly harmless questions, such as “Why are you doing it that way?” “Are you finished yet?” or “Why don’t I do that for you?” These common phrases automatically put the listener in a defensive mode. Modifying your questions takes practice, but subtle changes can make a tremendous difference in how you relate to others and how others perceive you.

Think like a man of action; act like a man of thought.—Henri-Louis Bergson, Philosopher