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!

 

The Roemer Report On-Line, September 2005

Highway Bill Becomes Law: President Bush signed into law a $286.4 billion highway spending bill, called SAFETEA-LU (Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users). The new law fails to codify hours-of-service regulations, a disappointment to many in the industry, but it does sign into law the following:

1. Exemptions from HOS. Agricultural commodities and farm supplies, operators of ground water well drilling rigs, and utility service vehicles are exempt
   from the HOS rules.
2. Tolls. A program allows tolls on new lanes on the Interstates to
   help ease congestion.
3. Truck parking. The law allots $25 million for a pilot program that gives grants to state and local governments for improving long-term parking
   availability for trucks.
4. Medical program. The law creates a new medical oversight program to advise the Federal Motor Carrier Safety Administration on driver medical
   standards and guidelines.
5. Driver training. To boost the number of people entering the profession, $5 million is earmarked for truck driver training.
6. Pre-employment screening. Motor carriers will be able to access a database containing driver-related safety information, such as accident reports and inspection reports.
7. Background checks for hazmat drivers. The Transportation Security Administration will notify carriers if hazmat drivers do not meet security criteria.

Fuel Costs Prove A Heavy Load: For most motor carriers, fuel is the second largest expense after labor, often accounting for 25 percent of operating costs. For each penny-a-gallon increase, the industry spends $350 million a year. To make matters worse, the new lower-emissions trucks get only six miles to the gallon, compared to seven for the older models. Still, many large trucking firms posted higher net income and revenues for the second quarter. Ironically, that gain may be linked to the failure of big companies, which reduced hauling capacity and allowed surviving firms to boost rates and pass along more fuel surcharges. But because of the volatility of fuel prices, even truckers who collect surcharges can lose out. One long-haul trucker gets paid an extra penny per mile every time fuel prices go up 5 cents a gallon, based on average national prices. With fuel prices fluctuating wildly from state to state, the driver often fuels his 240-gallon tank with only 50 gallons at a time to offset regional differences. But this only helps “keep my head above water,” he says. The financial strains are perhaps most burdensome on owner-operators; a 45 percent increase in truck repossessions occurred in this year’s first quarter. Truckers were hoping the new highway bill would offer relief in the form of mandated fuel surcharges, but that provision was removed from the final bill. Things may get even worse next year when new federal guidelines require refineries to produce lower-sulfur diesel, which could tack on an extra 10 to 15 cents per gallon.

Rethinking Security: Those in transportation are still feeling the shock from this summer’s terrorist attacks on London’s transit system. The bombings, which killed dozens, are pushing U.S. security concerns away from aviation and toward mass transit and rail lines. Soon after the London attacks, the U.S. Department of Homeland Security (DHS) announced a reorganization of the department with a greater focus on cargo transport. “We must enhance and speed inspections that we need to perform so that we minimize freight delays and increase total inspection capacity,” said DHS Secretary Michael Chertoff. These comments, along with calls for the DHS to look beyond airport passenger checkpoints, suggest that cargo transport will face more regulation. To date, the aviation industry has received $18.1 billion in federal security money since 9/11, while public transportation has received $250 million over that time (figures are not available for trucking). Although the DHS has not yet announced what modes of transportation will get what funding, Chertoff did say, “We’re going to support anything that gives us the kind of resources that we need to make a risk-based approach to parceling out our resources and our support for these security measures.” Experts believe that means greater funding for the cargo side of aviation and other
modes of transportation.

Competing For Workers: A new report prepared for the American Trucking Associations by Global Insight offers a glimpse of demographic trends that will affect trucking in the years ahead:

1. The white male population aged 35 to 54 will decline by more than 3 million by 2014. This population currently provides more than half of the workers in
   the industry.
2. During the next decade, the trucking industry will need an extra 320,000 workers due to economic growth.
3. At least another 219,000 workers must be found to replace workers over 55 who will retire and the younger workers who will leave the industry. Since trucking considers itself a competitor with the construction industry for labor, the report recommends that motor carriers raise salaries to above the 10 percent wage discrepancy with construction. The report also expects wage gains in long-haul trucking to average 6 to 7 percent per year during the next three years. Construction has two advantages that motor carriers should be aware of when recruiting workers. First is the quality-of-life issue. Construction workers, for the most part, do not spend time away from home while on the job. Many trucking companies are working on innovative ways to allow truckers to spend more time with family. Secondly, many construction workers enter the field by age 18, whereas truckers must be at least 21 to obtain a CDL. Still, if carriers can offer competitive wages and benefits, the lure of trucking over construction may be more enticing to those who like more autonomy and
   less heavy labor.

Exhaust Fumes Linked To Cancer: A British study has found that children who live close to major transport hubs, such as bus stations and railways, are six times more likely to die of cancer. The main cause for the increased risk of cancer is exhaust fumes—specifically carbon monoxide, which is produced by diesel engines. Living close to hospitals also increased risk, mainly because of the increased vehicle use in the vicinity and the use of incinerators. George Knox of the University of Birmingham ( England) said that unborn infants and newborns were at the biggest risk for exposure to pollutants. Ruth Yates of Cancer Research UK, however, said the study should be interpreted cautiously and that people should not be alarmed by its claims. “Before we can be certain of any link between childhood cancer and exposure to pollution, research needs to include more detailed information on people’s levels of exposure than this study provides.”

Healthy Minds At Work: Few employees would hesitate to mention they’re being treated for high blood pressure, but when the topic turns to depression and other mental and emotional disorders, the result is often silence. Yet emotional disorders are responsible for a large percentage of lost workdays and related health-care costs. A study indicates that the impact of mental illness on employee health and productivity is vastly underestimated. It’s believed that mental disorders result in about $24 billion in lost productivity and workdays every year. About 51 million Americans experience some type of emotional disorder annually. In fact, about 40 percent of disabling conditions for people ages 5 and over are the result of mental disorders. Here are some of the ongoing myths regarding emotional disorders that have stymied progress toward improved mental health care in the workplace:

1. Senior management rarely suffers from depression. On the contrary, one study found that 18 percent of managers said they suffered from depression. They just don’t talk about it.
2. Women are more likely to suffer from depression. Women simply feel more at ease talking about this topic than men. Actually, more men suffer from depression than are reported.
3. Employees suffering from emotional disorders shouldn’t return to work. Not true. With some simple modifications, employees being treated for mental disorders can, and probably should, return to work, say experts. Recovery is often quicker when employees feel productive.
4. Employees with nervous disorders are weaker than others. Like physical ailments, mental disorders are often biologically or chemically based. In fact, two-thirds of people who suffer from nervous disorders can be successfully treated and return to work.

Five Traits Of Great Leaders: In his book What the Best CEOs Know, Jeffrey A. Krames identifies these five characteristics that great leaders share:

1. They have an “evangelical gene.” Great leaders demonstrate tremendous enthusiasm about their jobs, their companies, and their causes—they are secular envangelists. They possess that fire-in-the-belly excitement about a particular idea or product, which in turn motivates and inspires others.
2. They understand the importance of culture. Great leaders know it’s not the type of corporate culture that is important, but that the culture is meaningful, strong, and authentic. An authentic culture takes years to develop, but it is key to enhancing performance and achieving goals.
3. They keep their eye on the future. Great leaders anticipate emerging needs and trends and create products, processes, or solutions to satisfy those needs.
4. They embrace the best ideas. Great leaders don’t try to come up with all the solutions themselves. They encourage everyone to come up with new ideas and solutions and then implement them.
5. They advance the body of leadership knowledge. Great CEOs contribute to the leadership playbook, and sometimes they even rewrite it. Herb Kelleher proved that culture can be a tremendous corporate asset. All great leaders know that leading is about ideas, excitement, and having fun along the way.

 

The ideas that have lighted my way have been kindness, beauty, and truth.
— Albert Einstein