To deliver on time, every time I always trust Utility Trailer Sales and Carrier Suki Sanghera Owner - Try-US Transportation
UTILITY TRAILER SALES Fresno
Stockton Area 2
1-800-624-9644 1-209-444-8800 12608 Harlan Road, Lathrop, CA
1-800-537-2600 1-559-237-2001 2680 S East Ave, Fresno, CAMaY / JUNE 2016
TRUCK CENTERS, LLC Family Owned Since 1930
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2727 E. Central Ave. Fresno, CA 93725
8100 Goldenstate Ave. BakersďŹ eld, CA 93380
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10182 S.Harlan Rd. French Camp, CA 95231
100 Opportunity St. Sacramento, CA 95838
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CONTENTS ADVERTISERS BP Lab Services ................................................ 38 California Truck Centers ................................... 3 California Trucking Association ........................ 45 Capitol Truck Lines Inc..................................... 39 Commercial Fleet Satellite Services ............... 47 CVTR Inc ................................................... 27, 49 Delray Tire ...................................................... 54 Express Graphics ............................................. 50 Fresno Truck & Tire Service ........................... 31 Golden Land Trans. Insurance ...................... 37 Great Dane Corporate.................................... 19 Guru Signs ........................................................ 32 Howes Lubricator ............................................. 9 ITM Equipment ................................................. 43 Jagdeep Singh Insurance Agency .................. 38 J & K Truck Parts.............................. .................. 22 Kam-Way Transportation Inc ........................... 21 Kingpin Insurance ........................................... 33 Los Angeles Freightliner .................................. 15 MDF Tire Fresno ................................................ 42 NSC Compliance ............................................... 23 OTRUCK.com ...................................................... 7 Pape Kenworth ............................................... 11 Platinum Home Mortgage............................... 36 Primelink Express ............................................. 39 Prime Truck Driving School ............................... 31 Sacramento Truck Center .............................. 42 S&S Transport Refrigeration ........................... 40 Speedy Truck Wash Inc. ............................ 38 SSD Law Firm.................................................. 55 TEC Stockton ................................................. 17 Thermo King Fresno .......................................... 24 Thermo King Northwest .................................... 30 Tri Counties Bank............................................. 25 TruckertoTrucker.com ..................................... 26 Utility Corporate............................................... 52 Utility Trailer Sales .......................................... 2 Utility Trailer Sales of Utah .............................. 13 Valley Freightliner Inc .................................. 28-29 Valley Transport Refrigeration ........................... 33 Volta Air ............................................................ 51 Volvo Trucks .................................................... 56 Warner Truck Centers ........................................ 5 4
08 14 20 22 34 44 24 25 26 30 38 40 53 55
Trailers: Helping push the economy tRylr: jo idMdy hn AwriQkqw nUM hulwrw
Drug and Alcohol Testing fr`g Aqy Alkohl tYsitMg
As Is... Where Is ij`Qy hY... ijvyN hY
FUEL TAX The Tooth-Friendly Diet dMdW leI shweI Bojn
Trucking It’s a Business tr`ikMg -ieh ie`k ibzns hY
Sale of Natural Gas for Class 8 trucks Slowly improves Mack to invest $70 mn. in Lehigh Valley Plant No Texting Rule Fact Sheet PACCAR to have Allison TC10 fully automatic in Kenworth and Peterbilt models New MICHELIN Pre-Mold Retread Designed for Demanding Urban Applications If HOS doesn’t take care of Driver’s Pay, Maybe Suing is the way to go CNG Viable Fuel Option BTS Statistics Release: February 2016 North American Freight Numbers
42 MaY / JUNE 2016
MaY / JUNE 2016
Editor’s Note / sMpwdkI
Dilbag (Ron) Dhaliwal
“You can copy someone’s work but not his brain”
“qusIN iksy dy kMm dI nkl kr skdy ho, ausdy idmwZ dI nhIN” 6
ur world is full of copycats – these are people who do not use their brains to create new things, but take the easy route and copy others’ ideas and work. These people may make progress in the short term and temporarily harm the originals, but the long run is never lucrative. If you look around you, people who achieve success are those who have created unique concepts and have had the courage to follow them through with planning, hard work, and passion. For example, look at Facebook and MySpace. The individual who tried to copy Facebook’s idea is no-where close to Facebook today. Likewise, there are hundreds of other examples out there as well. The one thing that copycats must keep in mind is that they can steal an idea or work, but not one’s brain. Instead of copying, it is better to get inspired from someone else’s work and try to follow them by adding some original ideas to accomplish a new concept. If we relate this to the trucking industry, there are many people who will work with you for some time, cheat you by taking some of your ideas and accounts, and then go and start their own so-called business. The biggest business tool, and mistake, they make is cutting price. Decent and business-minded people know that cutting prices means providing a lower-level service. These people do not care much for quality and levels of service. In addition, such people do not have business ethics and are destroying the industry. While everyone has right to do business, certain rules, ethics, and principles should be followed so that everyone in the industry has the opportunity to flourish. Our entire Desi Trucking team continues to work hard to make our magazines better in all ways possible. So please keep your suggestions, criticisms, and feedback coming. Good luck on the road, drive safe, and always work on making our roads safer.
dunIAW nkl mwrn vwilAW nwl BrI peI hY- ieh auh lok hn jo AwpxW idmwZ lgw ky koeI nvIN cIz pyS krn dI bjwey, dUijAW dy kMm jW AweIfIey dI nkl krdy hn[ iehnW lokW nMU QoVI bhuq s&lqw iml jWdI hY Aqy ieh QoVy smyN leI AslI kMm krn vwly dw QoVw bhuq nukswn vI krdy hn, pr ieh sB kuJ vkqI huMdw hY, ieh lok lMbI rys dy GoVy nhIN huMdy[jykr qusIN Awpxy Awsy pwsy ingHw mwr ky dyKoN, s&l auhI lok huMdy hn ijnHW kol Awpxy ^ud dy ivcwr Aqy socx SkqI huMdI hY, Awpxy ^ud dy AweIfIey huMdy hn Aqy iehnW AweIfIAW nUM AslIAq iv`c bdlx leI iehnW iv`c ihMmq, plYinMg Aqy s^q imhnq dw mwdw huMdw hY[audwhn dy qOr qy &ysbu`k Aqy mweI spys nUM dy^ lvo, ijs bMdy ny &ysbu`k dy AweIfIey dI nkl krn dI koisS kIqI, auh A`j ik`Qy hY Aqy &ysbu`k ik`Qy hY[iesy qrHW dIAW sYNkVy hor audwrnW vI hn[iehnW nkl mwrn vwilAW nUM ie`k g`l cyqy r`^xI cwhIdI hY ik ieh iksy dy kMm jW AweIfIey dI corI qW kr skdy hn pr ausdw idmwZ nhIN[ iksy dI nkl krn dI bjwey, ausdy kMm qoN syD lY ky ku`J AwpxW idmwZ vrq ky ku`J nvW kIqw jw skdw hY Aqy ieh s&l vI hovygw[ jykr AsIN ies nUM tr`ikMg kwrobwr nwl joV ky dyKIey, bhuq swry lok hn jo quhwfy nwl ku`J smyN leI kMm krdy hn, quhwnUM DoKw idMdy hn, quhwfy kuJ AweIfIey jW gRwhk corI krdy hn Aqy Awpxw kMm SurU kr lYdy hn[ sB qoN pihlW kMm auh kImqW hyTW su`tx dw krdy hn[ jo lok ibznYs nUM smJdy hn, auh iehnW dy Clwvy iv`c nhIN AwauNdy, auh jwxdy hn ik G`t kImq dw mqlb mwVI srivs[ ieh lok cMgI srivs dI pRvwh nhIN krdy, dUjw iehnW lokW iv`c scweI nhIN huMdI Aqy ieh kwrobwr dw siqAwnws mwr idMdy hn[hr iksy nUM kwrobwr krn dw h`k hY, pr scweI Aqy kwrobwr dy kwiedy kwnUMnw dI pwlxw zrUrI hY qW ky hr koeI vDIAw kmweI kr sky[ dysI tr`ikMg dI pUrI tIm mYZzIn nUM hr p`KoN vDIAw bnwaux leI sKq imhnq krdI hY[ swnUM quhwfy suJwvW dI vI aufIk rihMdI hY[ KuS rho, Awbwd rho……..
Publisher DesiMaxx Media Group LLC 1-877-598-3374 (Desi)
Editor-In-Cheif Dilbag (Ron) Dhaliwal
Associate Editor Jagmohan Singh
Advertising & Sales Raman Singh
Art Director Avee J Waseer
Creative Head Ranjit Singh
IT Manager Raj Sidhu
Cover Design www.SpicyCreatives.com
Contributing Writers Anthony Jarantilla Ken Cooke Pash Brar Jag Dhatt Dara Nagra Ray Gompf Ken Davey
Translator Tirath S. Khabra
Raman Singh Managing Director
Ismelda Del Toro Office Manager
Manit Singh Operations Manager
3599 S Golden State Blvd, Fresno, CA 93725 Ph: 855-500-DESI | Fax: 559-991-4296 Mailing Address: PO Box 812, Fowler, CA 93625 All Rights Reserved. No material herein or portions thereof may be printed without the written consent of the publisher. DISCLAIMER: DesiMaxx Media Group LLC assumes all advertisers to be reliable and responsible for any and all liability for their claims. The publisher reserves the right to refuse any advertisement it may find unfit for publication. The opinions expressed in articles and features are of the writers and may not be those of the publisher. THE PUBLISHER ASSUMES NO RESPONSIBILITY OF ANY KIND.
MaY / JUNE 2016
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MaY / JUNE 2016
Helping push the economy
rucking has evolved at lot over the years. With fuel being one of the largest expenses on the operating spread sheet, for the past 60 plus years, truckers have sought out ways and means to make large trucks more aerodynamic to cut through the air in the most efficient manner. Engines have become more powerful and more fuel efficient and trucks themselves have become sleeker. The possibility of improvements in aerodynamics for 8
G. Ray Gompf
power units is barely begun. In the past thirty years, fuel economy for large trucks has gone from the low to mid 6 miles per gallon to approaching the magic double digits; and it will reach those double digits and beyond. In the past decade or so, more and more attention has been placed on the trailer, resulting in a marked improvement in the aerodynamic qualities of these units. Yet most of these improvements are utilizing â€œadd-onsâ€? and aftermarket products that are proving MaY / JUNE 2016
Trailers: Helping with the push for economy
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hn[kwrn ieh ik aunHW nUM trYktr nwl lwauxw vI sOKw hovy Aqy qyl dI ^pq vI G`t hovy[tRylr bxwaux vwiLAW leI ieh ie`k vMgwr qoN G`t nhIN ik auh ie`k v`fy GxPl vwLw eyArofYnwimk bxwaux[ies ‘c mu`K AiV`kw ieh hY ik tr`k Aqy tRylr XUint dI ijMnI izAwdw rPqwr hovygI au`nw hvw nUM pwsy krnw AOKw hovygw Aqy tRylr dy ip`Cy v`fw KlwA vI bx jwvygw ijs nwL vYkUAm ‘c hvw jwxI AOKI ho jwvygI Aqy aus KlwA ‘c iK`c kwrn sVk ‘qy Awsy pwsy ipAw kcrw qy snoA Awid tRylr dy ip`Cy v`l iK`icAw cly Awvygw[ ipCly iqMn dhwikAW qoN bOks tRylrW dy au`prly Aqy duAwly dy hvw dy dbwA nUM rokx leI tRylrW dy ipCly pwsy iqMn Pu`t ‘qy bbl nojz lweIAW jw rhIAW hn[ tRylr dy PlYt Agly pwsy noz kon lweI jw rhI hY qW ik PlYt ih`sy nwL hvw vDyry nw Atk sky[ies bbl tweIp noz kon nwL qyl dI Kpq’c pRqI .2 mIl gYln dI b`cq huMdI hY[ieh b`cq bhuqI nhIN lgdI pr ijMnI vI qyl dI b`cq hovy auh Pwiedy vwLI hI hY[noz konW dIAW kImqW cwr ihMdisAW ‘c hn[ ies leI ienHW dw Pwiedw mhIinAW, jW idnW dw nhIN, sgoN swlW q`k igixAw jWdw hY[kwrn ieh vI ik ku`J ifvweIsW kwrn tRylr iK`cxy sOKy vI ho jWdy hn, siQrqw ‘c vwDw huMdw hY Aqy iK`cy jwx vwly vhIkl leI qyl G`t lgdw hY[ rIPr tRylrW dy A`gy v`fw rIPirjrySn XUint l`gw huMdw hY[keI
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Trailers: Helping with the push for economy to be effective. In this piece, we’ll try to outline some of those aftermarket options that are making a difference. The big thing “in” thing with trailers is aerodynamics and lightweight with adequate strength, but considering that freight is easiest moved inside a cubed device, the inherent limitations of the trailer become obvious. Box trailers and reefer trailers are going through all sorts of modifications to make them easier on the tractor in the interest of fuel efficiency. Trailer manufacturers are challenged to make a big cubed box aerodynamic. The challenge is, the higher the speed of the truck and trailer unit, the more difficult it becomes to push the air out of the way and then there’s the big vacuum at the back of the trailer where a vortex of air going back into that vacuum creates a suction effect that pulls road debris and snow up and around to the back of the trailer. Box trailers, for the past three decades or so, have had bubble noses on about the top three feet of the trailer to deflect airflow up and around. Instead of having air hit the flat front of the trailer, a nose cone is attached to the front of the trailer. These bubble type nose cones claim to reduce drag and fuel economy for the pulling vehicle by some .2 miles per gallon. That doesn’t sound like much but every reduction in fuel used is significant. Nose cones costs are into four figures so the pay back for the nose cone is measured in years, not months or even days as with some devices that make trailers easier to pull, adding stability, and fuel economy to the pulling vehicle. Reefer trailers have this large refrigeration unit attached to the front of the trailer. Over the years, the reefer manufacturers have made the leading edge of the reefer unit more streamlined and rounded to deflect the air to the sides of the trailer, and have reduced the weight of the unit itself. But still, simply because of the weight of the unit itself, it doesn’t lend itself to much saving in the fuel economy of the towing unit. For the past decade or so, trailer skirts have been attached to the underside of the trailer to streamline the air flow under the trailer so the air is directed past the wheel assembly of the trailer past the wheels. These trailer skirts are quite effective in reducing drag, thus improving fuel economy of the vehicle pulling it. Savings of .5 to even .8 miles per gallon are not uncommon. For years, products like “vortex generators” have been around and have been quite successful at reducing fuel usage. These look like wishbones and are glued to the sides of the trailer, along the rear edge, next to the hinges for the barn doors on the trailer. Interfering with the vortex air flow at the back of the trailer improving handling, especially in a cross wind situation, but interestingly enough snow packing on the rear of the trailer is
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MaY / JUNE 2016
Trailers: Helping with the push for economy substantially reduced. These vortex creators are inexpensive (several hundred dollars for a trailer; the same for a truck) and the fuel saving alone starts to pay dividends almost immediately because of the low cost. The vortex generators add one inch to the trailer shadow and the weight added isn’t more than a couple of pounds. A man can carry enough of these wishbone shaped vortex generators in one hand. These vortex generators can also be placed on the fairings of the power units to reduce the drag from the gap between truck and trailer. Also, when installed around the front of the hood, they can replace bug deflectors, providing a lower profile and still provide that reduction of bugs hitting the windshield. Vortex generators were invented to solve some of the aerodynamic issues at NASA during the shuttle program and they proved to be successful meeting those challenges and have been moved into the trucking side of transportation with great deal of success. Lately, there has been a move toward trailer tails that change the rear vortex of a moving trailer. While the fuel saving is approximately equal to the vortex generators, above, there are still questions about the snow packing potential behind the trailer. There has had to be changes to length laws for these tail equipped trailers, which haven’t yet been universally adopted. The weight addition also isn’t insignificant possibly several hundred pounds. The cost associated with trailer tails is more than ten times that of the vortex generators yet the fuel saving alone is almost identical. Trailers themselves continue to shed weight as newer stronger metals are brought into use. That reefer used in the 1980’s and 1990’s was well into the 22 to 23,000 pound range and now is in the 17,000 pound range, allowing payloads to be considerably greater. It’s the same thing with box trailers -- 10,000 to 12,000 pound equipment is the norm now, making payloads much heavier and making the cost per pound of freight lower. Flat decks and step decks have been going through similar changes. Side skirts on flat decks and weight reductions have been the “go to” methods for improvements. But, flat decks and step decks must carry tarps and securement devices to protect their loads from exposure and ensure there is no movement of the freight on board. Tool boxes beneath the deck on flat decks have been utilized for the function of side skirting while providing that space for equipment. One weight reduction rolling resistance item that really hasn’t been taken too seriously at this point, is the advent of the super single. Super single tires weigh much less than two normal sized tires. The footprint of the super single versus the regular tire is almost the same, yet the aerodynamic values are much improved. The disadvantage is that once a super single is flat, it requires a service call to get it repaired, whereas dual tires can be limped into a shop for repair. However, the resistance to super singles for this particular reason seems meaningless when many drivers choose safety first and request a road service call for tire changes. Many subtle changes will appear in trailer manufacturing over the next few years. Changes are just a fact of life. The question is will any of those changes go from aftermarket to OEM? Will these changes be accepted by the entire industry? And finally, how will the various competitive ideas and concepts become resisted or accepted within the industry? These are questions to which answers will come in the near future. 12
hI rih igAw hY[nqIjw ieh hoieAw ik Fox vwLw smwn v`D FoieAw jwx dw Pwiedw ho igAw hY[10- 12,000 pONf dw Bwr hux v`D Fox kwrn Krcw pRqI pONf vI Gtygw[ ieh BwvyN PlYt fY`k hn jW stY`p fY`k qbdIlIAW sB ‘c ie`ko ijhIAW hI hoeIAW hn[PlYt fY`k dIAW sweIf skRtW Aqy G`t Bwr vrgy suDwr dy FMg cwlU hn[ pr Awpxy smwn nUM sur`iKAq r`Kx Aqy Fkx leI PlYt fY`k vwiLAW Aqy stY`p fY`k vwiLAW nUM qrpwlW Aqy hor sur`iKAw vwLw smwn zrUr iljwxw pvygw[aunHW nUM ieh vI pRbMD krnw pvygw ik smwn ie`k QW itikAw rhy[PlYt fY`k dy hyTly tUl bwksW nUM sweIf skRitMg leI vriqAw jwx l`g ipAw hY jdoN ik auh QW smwn r`Kx leI vrqI jWdI hY[ ie`k Bwr Gtwaux vwLI cIz ijs sbMDI Ajy iDAwn nhIN id`qw igAw auh hY supr isMgl dI Koj[supr isMgl twier dw Bwr do Awm twierW nwLoN ikqy G`t huMdw hY[ supr isMgl twier Aqy Awm twier, dovW dy Pu`tipRMt qW ie`ko ijhy hI huMdy hn [ pr ij`QoN q`k eyArofYnwimk guxW dI g`l hY aus ‘c kwPI suDwr hoieAw hY[ Gwt ieh hY ik jy supr isMgl ikDry PlYt ho jwvy qW ies leI Kws pRbMD krnw pvygw jdoN ik duhry twierW nUM iksy vI Awm irpyAr Swp ‘qy jw ky TIk krvwieAw jw skdw hY[ pr kyvl ies kwrn hI isMgl twierW dw ivroD bymwAnw hY[ bhuq swry fRweIvrW dI pihlI cox sur`iKAw Aqy sVk ‘qy twier bdlx leI Pon kwl hY[ tRylrW dI bxqr ‘c vI Awx vwLy swlW ‘c bhuq qbdIlIAW idsx nUM imlxgIAW[ Asl qbdIlI jIvn dw s`c hY[ pr svwl ieh hY ik kI auh qbdIlIAW bxn qoN bwAd hox dI QW OEM (Original Equipment Manufacturer) mu`Fly bxwaux vwLy q`k vI phuMcxgIAW? kI ienHW qbdIlIAW nUM smu`cI ieMfstrI vI svIkwrygI? hor mukwbly vwLy i^AwlW Aqy ivcwrW nUM ies ieMfstrI ‘c iks qrHW svIkwirAw jwvygw jW ivroD kIqw jwvygw? MaY / JUNE 2016
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Drug and Alcohol Testing
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anadian truck drivers have been subjected to drug and alcohol testing in order to operate within the United States for more than twenty years. Currently, the USA DoT is amending the regulations for transportation workers, and these include changes that will have an impact on Canadian truckers whose work takes them into the U.S. Effective New Year’s Day 2016, Federal Motor Carrier Safety Administration (FMCSA) dropped the random drug testing rate from 50% to 25% because of the low failure rates during the years 2011 through 2013. The overall failure rate sits at approximately 0.5%. Breath testing for alcohol was lowered to 10% from 25% several years ago due to similarly low failure rates. However, US legislators have been concerned that drivers who have been terminated or flagged after positive test results have been, until now, able to move undetected from one carrier to another. The proposed Clearing House database would make it very difficult, if not impossible, for them to do so. Under the new rule, employers will be required to consult this database when hiring new drivers, upload names of failed drivers, and query the database once a year regarding the status of their current drivers. Canadian carriers have been waiting for the FMCSA to publish its final rule on implementing a “Clearing House” for commercial driver license-holders who have failed or refused a drug test. The problem for Canadian carriers is that Canadian and and USA privacy laws are not comparable, and in some cases, not compatible. Canada views human rights and disability issues differently than does the U.S. Thus, some privacy concerns represent tremendous challenges for Canadian 14
- G. Ray Gompf
ipCly 20 swl qoN knyfw dy tr`k fRweIvrW nUM AmrIkw ‘c tr`k clwaux leI fr`g Aqy Srwb dw tYst krvwauxw lwzmI hY[pr hux AmrIkw dw fI E tI ivBwg tRWsportySn vrkrW sbMDI kwnUMnW ‘c soD kr irhw hY[ienHW qbdIlIAW dw aunHW knyfw dy tr`kW vwilAW ‘qy Asr pvygw ijhVy AmrIkw jWdy hn[ 2016 qoN AmrIkw dy motr kYrIAr syPtI AYfminstRySn ( AYP AYm sI AYs ey) v`loN auGV dugV kIqy jWdy fr`g tYstW nUM 50% qoN Gtw ky 25% kr id`qw hY[ies dw kwrn ieh hY ik 2011 qoN 2013 q`k ies qrHW dy tYst ‘c PyLH hox vwiLAW dI igxqI GtI hY[rLw imLw ky ies tYst ‘c PylH hox vwiLAW dI igxqI kyvl 0.5% dy l`g B`g hI rhI hY[ij`QoN q`k Srwb dy tYst dI g`l hY keI swlW qoN ieh G`t rihx kwrn 25% qoN Gt ky 10% rih geI hY[ pr AmrIkw dy kwnUMnI mwihrW dI icMqw ieh rhI hY ik ijnHW fRweIvrW nUM tYst ‘c PylH hox kwrn rok lweI jWdI sI, auh iksy nw iksy qrHW dUjI kMpnI ‘c cly jWdy rhy hn[pr hux qjvIzy klIirMg hwaUs fYtwbys kwrn aunHW leI ies qoN bc ky ie`k kYrIAr qoN dUjy kYrIAr ‘c jwxw AsMBv nhIN qW AOKw zrUr ho jwvygw[nvyN inXm Anuswr mwlkW leI ieh zrUrI hovygw ik auh nvyN fRweIvrW nMU kMm ‘qy r`Kx qoN pihlW, PylH hoey fRweIvrW dI irpoRt krn Aqy AwpxI kMpnI dy fRweIvrW dw swl ‘c ie`k vwrI mOjUdw irkwrf ies fYtwbys ‘qy cY`k krn[ ies ‘c ies qrHW dy fRweIvrW dI jwxkwrI id`qI hovygI ijhVy ienHW tYstW ‘c PylH ho gey sn[knyfIAn kYrIAr kMpnIAW, ‘klIAirMg hwaUs’ dI ies inXm nMU lwgu krn dI aufIk kr rhy hn qW jo auh kmRSIAl fRweIvr lweIsMs DwrkW sbMDI ieh jwxkwrI lY skx ik iks ny ieh fr`g tYst krvwaux qoN nWh kIqI hY jW jo ies ‘c PylH hoey hn[ knyfIAn kYrIArW leI sm`isAw hY ik knyfw Aqy AmrIkw dy pRweIvysI kwnUMn ie`ko ijhy nhIN[mnu`KI AiDkwrW Aqy ApMgqw sbMDI AmrIkw Aqy knyfw dy msly v`Kry v`Kry hn[ies qrHW ku`J Byd r`Kx dIAW icMqwvW knyfIAn kYrIArW leI v`fI vMgwr hY ikauN ik koeI tYst dyx qoN pihlW ie`k rzwmMdI Pwrm MaY / JUNE 2016
MaY / JUNE 2016
Drug and Alcohol Testing carriers who must adhere to U.S. rules and must be addressed. For instance, when a driver’s name appears on the list, he or she would be required to sign a consent form before details about test results, substance abuse treatment, and follow-up tests could be released. At least one lawyer, Ronald Henry, opines submitting names of Canadian drivers who test positive to a US database could open up a can of worms. “There are humongous privacy issues here. Expect challenges,” he suggests. Dr. Barry Kurtzer, chief medical review officer for DriverCheck said, “We did pose the question to FMCSA quite some time ago as to whether or not Clearing House rules would apply to Canada, and whether FMCSA had made provisions for Canadian addresses, bilingualism, and privacy rules. Unfortunately, we never received answers to our questions. We’ll know more about the impact on Canada once the FMCSA officially publishes its Clearing House rule.” The US Department of Health and Human Services has recently published two notices of proposed rule-making, which will affect the DoT drug testing regimen in the very near future. One of the rules will see more drugs added to the “panels,” or categories of intoxicants. The current FMCSA rules require drivers to be screened for five types of narcotics, sometimes referred to as the NIDA 5: these include amphetamines, cocaine, marijuana, opiates, and PCP. Prescription painkillers such as oxycodone and hydrocodone will soon be included in the panels. Oxycodone, a synthetic type of opiate popular among the illicit drug-taking fraternity has been added, as have amphetamine variants such as MDA and MDMA (better known as ecstasy). The second initiative concerns the addition of oral fluid collection to the drug-testing menu. Up until now, urine analysis was the only accepted methodology for DoT random, pre-employment, reasonable cause and post-incident testing. This new rule will allow for oral (saliva) testing as well. When the rule is published, employers could use either saliva or urine collection, or both. The saliva test is considered a better procedure for determining the “probability” of impairment. It can show the presence of a drug or a drug’s metabolite in the subject’s system for several hours after ingestion and depending on the amount of that substance, could inductively indicate whether or not the driver was “probably” impaired when reporting for work. Hair follicle testing is gaining in popularity, particularly in the USA, where workplace drug testing is widespread. Strands of hair, an inch-and-a-half long, can provide the lab with a snapshot of drug use over a 90-day period. For that reason, some employers prefer this process for pre-employment testing, as it can provide a wider spectrum of the driver’s drug-using lifestyle and potentially risky behaviour. Some hair follicle testing is being done in Canada, usually in pre-employment situations for truck and bus drivers, but the procedure is expensive and decried by civil libertarians. American Trucking Associations (ATA) president and CEO Bill Graves is a major proponent of the procedure and has been lobbying USA legislators to have it included as part of DoT testing. Hair testing is now undergoing its own detailed review by the US Department of Health and Human Services (HHS). But the HHS’s proposed oral fluid protocols are currently much further along the development curve. “We believe that oral fluid testing will be cleared for use in DoT programs sometime in 2016,” says Kurtzer. Police and regulating authorities both in Canada and the US are concerned with people driving while “high,” particularly under the influence of THC (the psychoactive ingredient in marijuana). Recreational marijuana use is now permitted in some states and the 16
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Drug and Alcohol Testing number of medical marijuana users in Canada is expected to increase dramatically in the coming years, not to mention the legalization of marijuana in Canada expected in April 2017. About 50,000 drunk driving charges are recorded in Canada each year, while only about 1,000 drug impaired charges are laid. Legislation and technology is what is lacking. There is presently no roadside test for drivers to determine the presence of drugs. The best way to determine drug impairment would be by administering a roadside blood test, but this is not practical. Oral fluid collection seems to be the way forward at this time, either by means of a breath sample or a swab of saliva. Medical instrument suppliers are scrambling to fill the need. For example, Cannabix Technologies of Vancouver, B.C., founded by a retired RCMP officer, is developing a handheld breathalyzer-type device that captures mucus particles from the lungs and uses a newly developed type of spectroscopy to determine if there are cannabinoids present. A national forensics panel is also evaluating three other such devices. Canadian regulators will probably look to places like Australia, where various jurisdictions have been using roadside saliva test kits for years. States like Washington, Colorado, and Montana have set an impairment limit of five nanograms of THC per microlitre of blood. Being in the same room with someone smoking marijuana would generate that level without a person having personally used the drug. The problem being testing equipment has been slower to be put in place than the rules permitting use of marijuana. Most likely Canadian authorities will go with the five nanogram plasma baseline for THC, which is also consistent with the 2015 task force guidance of the American College of Occupational and Environmental Medicine. The US DoT has banned the use of medical marijuana by commercial drivers, so a Canadian driver taking prescribed medical cannabis products may not drive on US roadways. Canada must either pass legislation similar to that passed in the United States or be prepared for unnecessary challenges. If the trucker only works within Canada, then of course, only Canadian rules would apply, hypothesizing the Canadian rules would be different. However, workplaces would have to have an iron-clad drug testing policy in effect and no one’s rights or privacy are being violated before determining a THC user is fit or unfit for work. Both the driver and the carrier must be vitally concerned with a positive test result. Termination can be the end result only after warnings and counselling has failed. In Canada, drug dependence is considered a disability, and if a driver fails a test and admits to having a substance abuse problem, he or she has to be accommodated. This is done through a Substance Abuse Professional (SAP) who recommends a course of treatment. Subsequent return-to-work and follow up testing may be required. The U.S. has taken a different approach. Instead of measuring impairment, they predict risky behaviour to create a safe workplace. Termination isn’t the goal of testing for illicit drug use but identifying and treating those who need to be so counselled and rehabilitated. 18
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GREAT DANE AND THE OVAL ARE REGISTERED TRADEMARKS OF GREAT DANE LIMITED PARTNERSHIP
MaY / JUNE 2016
“As is...Where is”
“As Is... Where Is” “ij`Qy hY... ijvyN hY”
hen purchasing used equipment, it’s important to know the history of the item before opening up your wallet. The sale of equipment in North America is not regulated. An equipment dealership has a dealership license, but the sales people are not licensed and the dealership does not answer to any regulatory body. They may answer to the brand name they represent to uphold a certain look and image, but there are no independent or government bodies to protect consumers from any crooked or what is deemed as devious behaviour. Car dealerships do offer consumers protection. In British Columbia where I am located; car dealerships are regulated by The Vehicle Sales Authority of British Columbia or VSA. Because I work with a car dealership, I am a licensed sales person. I had to take a two day course put on by the VSA, and was required to write and pass an exam about the rules for selling cars in B.C. We have standards of safety to uphold and disclosure to the consumer. If a consumer makes a complaint about a dealership, they face penalties such as fines, must adhere to compliance, and face disciplinary action. Recently I had a client looking to purchase a used truck from a local major dealership. I got his deal approved for financing and proceeded to pull a report on the truck. I was shocked to see an accident for over $60,000 on the report. I called the client and asked him if the truck had any accidents that he knew of. He proudly told me he had asked the dealership and was advised there was nothing. I sent the client the report and explained that due to a declaration that large, I was unable to purchase the truck for him. I could not ensure the safety of the client if he was to drive this truck, nor justify the asking sale price. I am liable for any injuries or misrepresentation as I answer to a regulatory body. As I tell all clients with this issue, “I will keep you, but not the truck. Let’s find something better.” The client confronted the dealership and declined the truck. Situations like this occur very frequently and this was a major dealership so the
- Pash Brar B.A. Pash is a mobile leasing representative with Auto One Leasing LP in Vancouver. She has a banking, collections and accounting background. She specializes in importing vehicles and trailers from the USA. 20
- Pash Brar B.A.
jdoN vI qusIN koeI cIz KRIdo ieh zrUrI hY ik qusIN aus sbMDI pUrI jwxkwrI pRwpq kro Aqy bwAd ‘c sOdw krky pYsy dyvo[au`qrI AmrIkw ‘c swz smwn vycx vwLy koL fIlriSp dw lweIsMs qW huMdw hY pr aus dy sylz prsn kol ieh zrUrI nhIN[nw hI fIlriSp iksy kol jvwbdyh hY[ kwr fIlriSp Awm qOr ‘qy knzUmr pRotYkSn dI pySkS krdIAW hn[ibRitS kolMbIAw ij`Qy AsIN rih rhy hW kwr fIlriSp dI vI AYc ey Bwv vhIkl sylz AQwrtI AwP ibRitS kolMbIAw v`loN ingrwnI kIqI jWdI hY[mYN kwr sylz prsn hW ies leI vI AYs ey qoN mYnUM do idn dw kors krnw ipAw sI[ies ‘c kwr vycx leI quhwfIAW zuMmyvwrIAW Aqy gwhk dy h`kW sbMDI d`isAw jWdw hY[swnUM vycx vwLI kwr sbMDI gwhk nUM sB ku`J d`sxw pYNdw hY[jy ikDry gwhk iSkwieq kr dyvy Aqy sylz prsn jW fIlriSp v`loN drswey inXmW dI aulMGxw kIqI swbq ho jwvy qW sbMDq ivAkqI jW fIlriSp nUM hrjwnw vI Brnw pY skdw hY[ hwl ‘c hI myry koL ie`k gwhk sI[auh ie`k lokl fIlriSp qoN purwxw tr`k KRIdxw cwhuMdw sI[ mYN aus dI fIl mnzUr krvw id`qI[PweInYNisMg vI ho geI pr jdoN mYN aus dI rport k`FI qW pqw l`gw ik aus dw 60,000 fwlr dy Krcy vwLw AYksIfYNt hoieAw hoieAw sI[ qW ies qrHW smyN ieh pqw l`g igAw[ mYN qw sdw ieh hI kihMdI hW ik myrw vwh tr`k nwL nhIN sgoN quhwfy nwL hY ies leI gwhk dy ihqW dw iKAwl pihlW bwkI sB ku`J bwAd ‘c[ies leI ieh nhIN smJ lYxw cwhIdw ik ieh koeI v`fI fIlriSp hox krky TIk hI d`s rhy hoxgy[ mYN sdw hI gwhkW nUM slwh idMdI rihMdI hW ik tr`k nUM vyKx prKx leI auh Awpxy nwL iksy mkYink jW mSInrI sbMDI jwnx vwLy ivAkqI nUM lY ky Awaux[syl BwvyN pRweIvyt hovy jW fIlriSp dI ies dw koeI Prk ies sbMDI sB ku`J jwnxw Aqy prKxw zrUr cwhIdw hY[vycx vwLy qW ‘ijvyN hY ij`Qy hY’ ieh kih ky KihVw Cufw lYNdy hn, pr Bugqxw qW pYsy Krcx vwLy nUM pYNdw hY[ jdoN vI qusIN koeI vhIkl KRId rhy ho qW pYsy dyx qoN pihlW kwrprUP jW kwrPYks irport zrUr k`Fo Aqy ies ‘c AYksIfYNt Aqy lIAn sbMDI jwxkwrI pRwpq kro[ pr tRylr sbMDI nw hI kwrprUP Aqy nw hI kwrPYks rwhIN pqw lgdw hY[ies leI tRylr nUM Awp cMgI qrHW vyKo[qusIN lokl motr vhIkl mihkmy koloN ies dI AYksIfYNt ihstrI bwry pqw kr skdy ho[hr sUby Aqy styt ‘c ies dw v`Krw v`Krw FMg hY[ie`k fIlriSp v`loN mYnUM d`isAw ik ie`k gwhk tRylr KRIdxw cwhuMdw sI pr swfy kol nhIN sI Aqy aus ny AwnlweIn jw ky ie`k 48’ lMby tRylr dw sOdw kr ilAw pr pYsy dyx qoN bwAd pqw l`gw ik auh qW isrP 44’ sI pr jdoN aus ny pYsy vwps mMgy MaY / JUNE 2016
“As is...Where is” driver thought he could trust them. Trust no one because nothing is regulated. I caution all of my drivers to bring a mechanic or very experienced driver or their boss with them to look at used equipment. Whether it’s a private sale or from a dealership, you may possibly be lied to about the history of that item. No one is regulating what the person in front of you selling the equipment says. It is being sold “As Is Where Is”. If you have decided on an item, please pull a carproof or carfax report before exchanging any money. Check to see its accident history and also look for any liens. Trailers do not come up on carproof or carfax. It is important to go look at the trailer in person and thoroughly inspect it. You can contact your local Department of Motor Vehicles, or DMV, to request an accident history of a trailer. This procedure differs from each state and province. If a trailer was serviced by the manufacturer, they will have the service records, but may not release the records due to privacy laws. A trailer dealership told me of a client that wanted a 48’ trailer fast. The dealership had nothing in stock so the client found and bought a used trailer online sight unseen. When he picked it up it was 44’ long and not 48’. He called the seller and said he wanted his money back and the seller said, “As is Where Is” and no refunds. So please inspect anything you intend to buy in person in advance. Salvage vehicles are another issue coming up often. Insurance has written off a piece of equipment as salvage, and it is purchased, repaired, inspected and put back on the road. The price is a lot less because it’s not worth as much as a non salvage item, and it will be difficult to finance. Reputable companies will not finance salvage vehicles due to safety concerns and the low value of them. Some manufacturers will honor the warranty on a motor on a truck if it was untouched in the accident, but there is no regard to the driver regarding the rest of the damage to the body of the vehicle. A dealership told me their salvage vehicle was “no big deal” with complete disregard to the driver and his family. Even though there is a thorough inspection done, I find that most drivers prefer a non salvage vehicle without possible safety concerns weighing in their minds and low value concerns. They are difficult to re-sell as usually a cash sale must be done. When purchasing anything used, be aware that there is no one who can protect you from deceptive sellers. Be your own fraud watch. Pull reports and get full service records if you can. If you are unsure of how to proceed, ask someone with experience in the field to help you, such as a long time driver, your boss or finance person. “As is Where Is” will appear on your bill of sale, and that exonerates the seller from wrongdoing, so be careful. MaY / JUNE 2016
qW aunHW ieh kih ik p`lw JwV ilAw ik aus ‘qy iliKAw sI ‘ijvyN hY ij`Qy hY’[ ies leI zrUrI hY ik KRIdx vwly sMd sbyVy nUM cMgI qrHW dyK prK ilAw jwvy[ swlvyj vhIklW dw vI keI vwr mslw swhmxy AwauNdw hY[ieMSUrYNs ny iksy smwn dw ih`sw swlvyj ilK id`qw hY[ies nUM KRId kr ilAw jWdw hY murMmq krvw ky, ienspYkSn qoN bwAd muV sVk ‘qy cwVH id`qw jWdw hY[ swlvyj hox kwrn ies dI kImq vI bhuq G`t huMdI hY[ mShUr kMpnIAW sur`iKAw Awid kwrnW krky ienHW nUM PweInYNs vI nhIN krdIAW[ies kwrn hI bhuq swry gwhk sur`iKAw Awid kwrnW krky ienHW nUM qrjIh nhIN idMdy[ jdoN vI koeI cldw vhIkl KRIdxw hY qW DoKybwz vycx vwiLAW qoN bcx dI loV hY[Awp hI iDAwn dyvo ik quhwfy nwL koeI DoKw qW nhIN kr irhw[aus dIAW irportW kFvwE Aqy swry srivs irkwrf vI iDAwn nwl vyKo[jy ies swrI ivDI sbMDI nhIN pqw qW iksy koloN jwxkwrI lY lE[ikauN ik KRId smyN qW quhwfy ib`l ‘qy” ijvyN hY, ij`Qy hY” dy Sbd hI ilKy imlxgy[
NSC Compliance Services
What is the Heavy Highway Vehicle Use Tax (HVUT)? The Heavy highway Vehicle Use Tax is a fee assessed annually on heavy vehicles operating on public highways in the United States at registered gross e a What is IFTA? IFTA stands for International Fuel Tax Agreement. It is an agreement between 48 states in the United States of America and 10 provinces in Canada. It makes it easier for an Inter-jurisdictional carrier to register, licence, report and remit their taxes for motor fuels. Do you need to register for an IFTA Account? If you have a commercial vehicle which has three or more axles or weighs more than 11,797 kgs/26,000 lbs and you travel out of the province/state you reside in then you need to register for an IFTA Account. Are there any fees for registering or maintaining an IFTA Account? Each jurisdiction has a different amount for registration and decal fees. There are renewal fees that need to be paid annually. What are IFTA decals and where do I put them? IFTA decals are stickers that are issued along with IFTA license. The IFTA decals need to be placed on each side of the exterior of the cab. If you do not display the decals properly or the decal serial numbers do not match the IFTA licence, you may be fined each time your vehicle enters another jurisdiction. Can I get a temporary permit? A carrier can be issued a temporary permit by their base jurisdiction, allowing the carrier to use their vehicle immediately without displaying IFTA decals. Are there any jurisdictions that are not part of the IFTA agreement? Yes, Oregon, New York, New Mexico and Kentucky have their own requirements and require returns to be filed in addition to the IFTA returns.
How often do I have to file Fuel Tax? Once registered, you need to file IFTA Quarterly Tax returns and remit the taxes owing by the filing dates: Quarter Reporting Period Due Date 1st Quarter January, February, March April 30th 2nd Quarter April, May, June July 31st 3rd Quarter July, August, September October 31st 4th Quarter October, November, December January 31st What if I file my IFTA Tax return late? If your return is submitted late and there is an amount owing, you may be charged interest on the overdue tax, and/or issued a warning letter or be assessed a penalty equal to 10% of the net tax due. How long do you need to save your records? IFTA requires you to retain the records for four years from the return due date or filing date, whichever is later. Where can I get more information and assistance with applying or filing for IFTA? Call us at our toll free number at 1-800-965-9839.
MaY / JUNE 2016
MaY / JUNE 2016
Sale of Natural Gas for Class 8 trucks Slowly improves
nited States and Canadian natural gas Class 8 truck retail sales improved modestly in February, after getting off to a slow start in 2016, according to a recent report from ACT Research.
The “Natural Gas Quarterly” attributes this to a high number of natural gas vehicle repeat sales, despite the continuing low cost of diesel prices, which is making the return on investment for adopting of natural gas less lucrative for fleets not yet invested in NG-fuelled vehicles. “With the fuel price differential continuing to narrow, the ROI to convert from diesel to natural gas is moving in the wrong direction:
Payback periods are lengthening,” said Ken Vieth, ACT’s senior partner and general manager. “This doesn’t mean the adoption of NG fuel has stopped or that there are no new developments supporting a future uptick in NG truck orders. “Despite a 3 percent month-over-month uptick in February, year-to-date volumes are 14 percent below 2015’s level, and year-over-year sales are down 25 percent. NG infrastructure continues to be built, albeit at targeted locations, and existing NG equipment users remain committed to its long-term viability and emission benefits.” Additionally, the report provides examples of how equipment research and development efforts are continuing to advance the market. ACT Research sees only modest, single-digit growth for the adoption of natural gas as a transportation fuel in the U.S. the next few years, barring legislative changes. The “Natural Gas Quarterly” provides information on the current and projected status of those factors that impact a decision to adopt natural gas. It includes a “dashboard gauge” that looks at fuel price spread, public heavy duty NG fuelling infrastructure, NG equipment, and actual NG heavy duty truck sales.
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WWW.TKFRESNOTURLOCK.COM MaY / JUNE 2016
Mack to invest $70 mn. in Lehigh Valley Plant
ack Trucks announced a plan to invest some $70 million over three years in its Lehigh Valley truck assembly operations in Pennsylvania.
Plant enhancements will include a 75,000 square-foot expansion to improve material handling and flow; new manufacturing IT systems; equipment and tooling; and a new building for conducting quality audits on completed vehicles. “For more than 40 years, Mack’s Lehigh Valley Operations has built highquality trucks that our customers can
depend on,” said Dennis Slagle, president of Mack Trucks. “This investment strategy will help ensure we continue to deliver Mack’s legendary durability through a more efficient, integrated and modern manufacturing operation.” To streamline the manufacturing process, Mack says its chassis pre-assembly work currently completed by Westport Axle in Breinigsville, PA, will be moved into the Mack plant. Westport will continue several other critical support operations for Mack. The investment plan includes about $12 million in projects that will be completed over the next three years, but were included in the $26 million upgrade announced in 2014. Mack’s Lehigh Valley Operations produced its first trucks in 1975. Today, the 1 million-square foot facility assembles all Mack trucks built for the North American market and export.
Comprehensive Truck Size and Weight Limits Study Report says NO CHANGE
he United States Department of Transportation today released the “Comprehensive Truck Size and Weight Limits Study Report” to Congress. The department was called upon in the Moving Ahead for Progress in the 21st Century Act to study the issues associated with trucks operating within and in excess of current size and weight limits. The report concludes that additional data analysis is necessary to fully understand the impacts of heavier and larger trucks on the transportation system. Importantly, the department finds that the data limitations are so profound that no changes in the relevant laws and regulations should be considered until these limitations are overcome.
Flexible loan and lease options to help you go the distance. At Tri Counties Bank, our breadth of financial services, business knowledge and personalized problem solving provide a unique brand of Service With Solutions. Whether you’re planning to lease or buy your next truck, we are ready to work with you to choose the best financing option for your needs. And with branches conveniently located throughout Northern and Central California, a Tri Counties Bank solution is closer than you think.
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MaY / JUNE 2016 18471-23 TCB16 Desi Trucking Magazine Ad 7.5x4.8-05.indd 1
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No Texting Rule Fact Sheet
MCSA published new rules that restrict texting and the use of hand-held mobile phones by truck and bus drivers while operating a commercial motor vehicle (CMV). Research commissioned by FMCSA shows the odds of being involved in a safety-critical event (e.g., crash, near-crash, unintentional lane deviation) are 23.2 times greater for CMV drivers who text while driving than for those who do not. Texting drivers took their eyes off the forward roadway for an average of 4.6 seconds. At 55 mph, this equates to a driver traveling 371 feet, or the approximate length of a football field (including the end zones)—without looking at the roadway! What exactly is “Texting”? Texting means manually entering text into, or reading text from, an electronic device. Texting includes (but is not limited to), short message services, e-mailing, instant messaging, a command or request to access a Web page, pressing more than a single button to initiate or terminate a call using a mobile telephone, or engaging in any other form of electronic text retrieval or entry, for present or future communication.
What does this rule mean to you? Fines and Penalties - Texting while driving can result in driver disqualification. Penalties can be up to $2,750 for drivers and up to $11,000 for employers who allow or require drivers to use a handheld communications device for texting while driving. Disqualification - Multiple convictions for texting while driving a CMV can result in a driver disqualification by FMCSA. Multiple violations of State law prohibiting texting while driving a CMV that requires a CDL is a serious traffic violation that could result in a CDL driver being disqualified for up to 120 days. What are the risks? - Texting is risky because it causes the driver to take his/her eyes off the roadway. Dispatching devices that are part of a fleet management system can be used for other purposes, but texting on a dispatching device is indistinguishable from texting on another text-capable device, and is therefore prohibited. EPA Celebrates SmartWay Affiliates that Support Cleaner Freight The U.S. Environmental Protection Agency is honouring seven affiliates for raising awareness about the benefits of sustainable goods movement as part of the 2016 SmartWay Affiliate Challenge. SmartWay affiliates participating in this year’s challenge have done outstanding work reaching out to inform and educate businesses, their communities, truck drivers and other stakeholders about steps they can take to reduce freight emissions and their other environmental impacts. “EPA commends the Affiliate Challenge honourees for their commitment, enthusiasm, and creativity in supporting our shared goals for sustainable transportation,” said Christopher Grundler, director of EPA’s Office of Transportation and Air Quality. “Their work is helping advance more sustainable systems for delivering freight, reducing its climate change impacts and improving air quality.” Transportation is the fastest growing source of greenhouse gas emissions in the U.S., accounting for close to 30 percent of greenhouse gas emissions annually. Freight delivery accounts for nearly 40 percent of those emissions. EPA’s SmartWay Transport Partnership empowers businesses to move goods in the cleanest, most energy-efficient way possible to protect public health and reduce the emissions that contribute to climate change. Demonstration of a commitment to corporate sustainability and social responsibility through SmartWay provides for a more competitive and environmentally friendly business environment. Since 2004, SmartWay Partners have avoided emitting more than 72 million metric tons of the carbon pollution that contributes to climate change, while saving more than 170 million barrels of oil and more than $24 billion in fuel costs. SmartWay also contributes to cleaner air and healthier citizens by significantly reducing emissions of the pollution that contributes to smog. MaY / JUNE 2016
Sleep Apnea Listening Sessions Announced
he Federal Motor Carrier Safety Administration and the Federal Railroad Administration will host three public listening sessions to solicit information on the prevalence of moderate-to-severe obstructive sleep apnea among individuals occupying safety sensitive positions in highway and rail transportation. The agencies also want to know the potential consequences of sleep apnea on the safety of rail and highway transportation, and the potential costs and benefits of regulatory actions that address the safety risks associated with motor carrier and rail workers who have the condition. The listening sessions are intended to provide interested
parties with an opportunity to share their views on this topic with representatives of both agencies, along with any data or analysis they may have.
The sessions will take place during May at three different locations across the country: May 12, Washington, D.C. National Association of Home Builders 1201 15th Street NW Washington, DC 20005
May 17, Chicago Marriott Courtyard Downtown/River North 30 E. Hubbard Street Chicago, IL 60611
May 25, Los Angeles Westin Bonaventure Hotel and Suites 404 S. Figueroa Street Los Angeles, CA 90071
All sessions will run from 10 a.m. to 12 p.m. and 1:30 p.m. to 3:30 p.m. local time. If all interested parties have had the opportunity to comment, the sessions may conclude early.
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PACCAR to have Allison TC10 fully automatic in Kenworth and Peterbilt models
ACCAR has started an engineering program with Allison Transmission to release the fully automatic Allison TC10® in the latest PACCAR models. The TC10 transmission will be offered in Kenworth T680 and T880 and Peterbilt Models 567 and 579 with both PACCAR and Cummins engines. “We are looking forward to offering the TC10 to our Peterbilt and Kenworth customers,” said Landon Sproull, PACCAR Assistant Vice President. “Allison’s reputation for quality and technology is well known.” Offered with 10 forward speeds and two reverse, the TC10 uses a patented torque converter and twin counter shaft design. It is designed for tractor configurations to optimize performance and fuel economy with uninterrupted power shifting in all ranges. An industry leading five-year or 750,000 mile transmission system warranty is included. PACCAR has started an engineering program with Allison Transmission to release the fully automatic Allison TC10®
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In-Transit Shipments Through U.S. Restored
t long last, after fifteen years of high level negotiations between the trucking industry and border officials from Canada and the United States, the US Customs & Border Protection (CBP) agency is moving forward on a plan to restore Canadian shipments in-transit through the United States. The Canadian Trucking Alliance (CTA) welcomes the publication of a US Federal Register Notice outlining the details of the long-awaited in-transit pilot program, a key plank in the Canada-US Beyond the Border (BTB) Action Plan. The pilot sets the stage for restoration of the ability for Canadian carriers to conduct in-transit shipments through the United States using a limited set of data when crossing the border. The Alliance, a federation of the provincial trucking associations representing over 4,500 trucking companies from across Canada, has been lobbying for changes to strict data requirements held up by US Customs and Border Protection since 2005. CTA president David Bradley says this is another example of CTA’s persistence paying off. “Ever since 9/11 we have been working to restore in-transit shipments. We stuck with it and today we were rewarded for all the hard work,” he says. He also credits the support received from Canadian BTB officials, the American Trucking Associations and in recent years from US officials in the White House and USCBP for bringing about the change. It was once common for Canadian carriers moving loads across Canada to use U.S. routes
in-transit. Since the goods were not entering the United States for consumption or being offloaded or stored, they were considered domestic Canadian loads and could therefore enter with minimal documentation. However, after 9/11 in-transit shipments were treated as international loads by USCBP, subject to full documentation. Meanwhile, Canada did not mirror the change, which allowed intransit moves through Canada by US carriers to continue, creating an uneven playing field for Canadian carriers wishing to move intransit shipments through the United States. In October 2014, CTA helped bring about an agreement between Canadian and U.S. customs agencies which would have limited the data required for domestic goods transiting through the other country. Specifically, the data element concerning the “value” of the in-transit goods remained the sticking point. CBP accepted a CTA proposal to allow Canadian carriers who are not able to provide a specific value to designate a default value of $95,000.00 to the shipment. Industry has been waiting for the Federal Register Notice since October 2014. A comment period of 30 days follows the published FRN and once closed, USCBP will launch the pilot under the new ‘default value’ allowance. It will involving up to nine carriers to begin moving goods intransit through designated US ports. If successful, the pilot will likely be expanded to include additional carriers at some point.
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The Tooth-Friendly Diet
The Tooth-Friendly Diet dMdW leI shweI Bojn
ral health is related to diet in many ways. There is a need to understand the relationship between nutrition and oral health to prevent many dental diseases. Research has progressed a great deal to ascertain the factors that cause tooth decay. Originally, only sugar was blamed for tooth decay but nowadays, we know that there are a variety of factors that are responsible for decayed teeth in people of all ages. What food we eat, passes through our mouth. Here it meets the germs, or bacteria, that live in our mouth. These bacteria love sugars found in many foods. When we don’t clean our teeth after eating, plaque mixes with sugar to produce acids that can destroy the hard surface of the tooth, called enamel. After a while, tooth decay happens. Choice of foods The food that you eat affects your mouth not only by building healthier teeth and gums, but also by helping prevent tooth decay and gum disease. Hence it is important that you choose the best diet for your teeth, including what foods to eat, what beverages to drink, as also what foods to avoid. A healthy diet rich in fruits and vegetables, whole grains, lean proteins, and unsaturated fats will benefit your overall oral health. Our endeavour in this column is to educate you on how to select the best diet for good dental health. 34
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The Tooth-Friendly Diet • Teeth and Calcium Calcium, the mineral that forms the majority of your teeth’s mass, is an important nutrient for maintaining healthy, strong and resilient teeth. You must include calcium in your diet because your body can’t manufacture it. A diet with adequate calcium will help prevent tooth decay. When a diet is low in calcium, the body draws the mineral from teeth and bones, which can increase your risk of tooth decay and the incidence of cavities. If dietary calcium is insufficient, you are at a greater risk for gum disease. Good calcium sources are found in dairy foods like milk, cheese, and yogurt; fish; and in some vegetables such as broccoli, peas, leafy greens, sesame seeds dried figs and apricots. • Teeth and Vitamin C Deficiency of Vitamin C causes the gums to become red from inflammation, swelling and hence gums bleed easily.
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The Tooth-Friendly Diet All fruits (particularly citrus fruits such as orange and grapefruit, mango, papaya, pineapple, strawberries, watermelon) and vegetables (broccoli, cauliflower, spinach, cabbage, turnip, sweet and white potatoes, tomatoes and other leafy greens) contain some amount of vitamin C. If you suffer from bleeding gums and your dentist rules out poor dental hygiene, include Vitamin C in your diet. • Teeth and Fruits and Vegetables Fruits and vegetables promote good dental health; so include them in your daily diet. The vitamins, minerals and antioxidants in these foods protect teeth and gums. Crunchy fruits and veggies are excellent for your teeth in two ways. The crisp texture acts as a detergent on teeth, wiping away bacteria that can cause plaque. Additionally, these foods require a lot of chewing, which increases the production of saliva neutralizing the acid creation by the bacteria. Foods to Avoid While it’s important to have a varied diet, some food choices are a lot less toothfriendly than others. Foods that are chewy and sticky are more likely to stay on your teeth longer and cause decay. Any food or drink high in acid can raise the level of acid in your mouth. Likewise if your diet consists largely of nutritionally poor foods, i.e., junk food, your oral health is bound to suffer. The strongest teeth are the ones that grow with the help of good wholesome food such as milk, cheese, eggs, fish, meat, vegetables, cereals and fresh fruit. These foods contain calcium and other minerals which are essential for maintaining healthy teeth and gums. Drinking plenty of water keeps mouth moist and protects teeth from cavities. Oral health problems can be prevented by: Eating a healthy balanced diet of fruits, vegetables, lean protein and low-fat dairy products and whole grains that provide essential nutrients for optimum oral health and overall health. Even foods and drinks that are good for your teeth, like milk, contain sugars. No matter what you eat, it’s important to brush and floss afterward — or at least to rinse your mouth with water. Brush twice a day using either a manual or power toothbrush, and remember to visit a dentist at least twice a year for checkups.
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REENVILLE, S.C. — Michelin Americas Truck Tires, a division of Michelin North America, Inc., has introduced the MICHELIN® X ONE® XZU®S+ Pre-MoldTM retread — an industryleading, all-position, next-generation wide-base single — for waste and refuse trucks that operate in demanding urban environments. This retread delivers up to 50 percent greater wear life(1) and is designed with a special winged tread for maximum shoulder protection in high-scrub applications. "With the demanding conditions in urban areas, waste and refuse customers are looking for retreads that can handle these punishing conditions and reduce their cost-per-hour,” said Adam Murphy, vice president of marketing for Michelin Americas Truck Tires. “The new MICHELIN X ONE XZU S+ Pre-Mold retread exceeds those demands with incredible wear life, even when trucks are continuously starting, stopping and turning as they pick up waste in city areas.” The MICHELIN X ONE XZU S+ Pre-Mold retread features a 29/32 inch deep tread depth and an optimized, straight rib design that contribute to outstanding wear. Co-Extrusion technology and a unique two-layer compound minimize the casing temperature for enhanced durability. 38
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n March 23, 2016, the San Diego labor law attorneys at Blumenthal, Nordrehaug & Bhowmik filed a class action lawsuit against Core-Mark International, alleging that the transportation company failed to lawfully compensate their truck drivers for all their time spent working, including time spent while not driving the company’s trucks. The class action lawsuit is currently pending in San Diego County Superior Court. The lawsuit filed alleges that the trucking giant does not have a policy or practice that provides legally required 30-minute uninterrupted meal breaks to their truck drivers in California. The proposed class action asserts that Core-Mark’s failure to provide the legally required meal breaks is evidenced by their business records, which contain no evidence of these meal breaks. Additionally, the lawsuit alleges that the plaintiff and other truck drivers working for the Core-Mark in California are paid on a piece-rate basis. The lawsuit claims the truck drivers are not paid all minimum wages for all their hours worked because of Core-Mark’s alleged failure to record all time worked. Specifically, the complaint claims that the truck drivers should be paid minimum wages for their non-driving tasks, including but not limited to, the work performed during pre-trip and post-trip inspections and time spent allegedly waiting for Core-Mark’s loads to be ready for transport.
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MaY / JUNE 2016
FMCSA to add eighth BASIC
he Federal Motor Carrier Safety Administration is considering a new element to its Compliance, Safety, Accountability (CSA) system by including a voluntary safety compliance program similar to how the SmartWay Transport Partnership is geared to incentivizing environmental technology and practices among carriers. The proposal is part of the so-called “Beyond Compliance” system required by the FAST Act highway bill, which requires the agency to provide some sort of recognition to motor carriers that go above and beyond baseline compliance – either by crediting those efforts in the existing Safety Measurement System of the CSA program or create a new BASIC category of measurement. In a Federal Register notice published last week the agency appeared to be leaning toward adding an eighth BASIC. Like the SmartWay Transport Partnership with the U.S. EPA, in which carriers voluntarily invest in verified fuel-efficient technology in exchange for being named and promoted as a certified ‘SmartWay’ carrier, the new voluntary SMS category would require carriers to apply to be a part of it. FMCSA Associate Administrator for Enforcement Bill Quade told attendees at a Commercial Vehicle Safety Alliance Workshop event in Chicago, that the new BASIC would show that a carrier has put a safety-enhancing technology, practice or program into use in its trucks and/or operations. Some carriers have expressed the opinion that FMCSA should instead “assist carriers in improving their (CSA) scores” rather than creating a new, separate BASIC. Joe Rajkovacz, representing the Western States Trucking Association, said FMCSA’s focus should be on improvements within the existing CSA SMS. Particularly, he said, eligibility requirements for participants, with associated costs, seem to exclude those who might otherwise have benefited. Furthermore, some felt the proposal to lock out ‘Conditionallyrated’ carriers could be problematic. Rob Abbott of the American Trucking Associations, noting the struggle carriers have faced getting even consideration of an upgrade from Conditional to Satisfactory as agency division resources are spread thin. “Would it be wrong to recognize a fleet with a Conditional rating that had made an investment in improving safety?” Swift Transportation’s Nick Malchesky noted he might have a tough time justifying “paying to be a part of something I’m already paying millions of dollars to put in,” referencing his company’s investment in safety technology. “We’re already paying, so to ask us to pay again to fund [the program] seems a little unfair.” The Federal Register notice is open through June 20 for comments. MaY / JUNE 2016
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3912 S Front Avenue Fresno CA 93725 Phone: 559.264.2770 Fax: 559.264.2779 41
Congestion is a $50B Hit to Trucking Industry
NEW and USED TRUCK SALES
raffic congestion on the United States National Highway Systems added more than $49.6 billion in operational costs to the trucking industry in 2014, according to research released by the American Transportation Research Institute. ATRI utilized a variety of data sources as well as a revised methodology, which facilitated the expansion of its pervious cost of congestion research from the Interstate System to the entire NHS network. This resulted in calculated delay totalling more than 728 million hours of lost productivity, which equates to 264,000 commercial truck drivers sitting idle for a working year. ATRI’s analysis also documented the states, metropolitan areas and counties that were most impacted by these delays and subsequent increased costs. More than a dozen states experienced increased costs of more than $1 billion each due to congestion, with Florida and Texas leading at more than $4 billion each. As expected, traffic congestion tended to be most severe in urban areas, with 88 percent of the congestion costs concentrated on only 18 percent of the network mileage, and 95 percent of the total congestion cost occurring in metropolitan areas. This concentration of congestion has been well-documented in ongoing work by ATRI, which annually identifies the worst truck bottlenecks in the U.S. The analysis also demonstrates the impact of congestion costs on a per-truck basis, with an average increased cost of $26,625 for trucks that travel 150,000 miles annually. As part of this analysis, ATRI has created a congestion cost database to provide granular cost information to transportation planning officials on the hours of delay and associated cost by major jurisdiction type and road level. “Unfortunately, we’ve come to expect traffic congestion as part of our daily lives, but ATRI’s latest analysis illustrates what a significant productivity drain that congestion is on our industry and the economy at large,” said David Congdon, CEO of Old Dominion Freight Line.
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Trucking - It’s a Business
Trucking It’s a Business
By - Micheal Howe
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he trucking industry can be a challenging arena to make a living in as a driver and certainly as a fleet owner. All across North America the industry is facing burdensome regulations, escalating fuel costs, day to day operation costs, and challenges keeping the driver’s seat occupied. To truly be successful, regardless of where one might be in North America, there are a multitude of tools necessary to run trucking as a business. Regardless of the tools available though, the relative success of any truck driver or trucking company comes down to the person behind the wheel watching the black top pass by. One of the most important tools any driver or carrier needs is related to financial management. Cash flow can be a real problem at times as a result of delayed payments on invoices, load acquisition challenges, and a variety of other issues. As cash flow tightens, so do opportunities to operate the truck in an efficient and profitable manner. As such, Chett Winchell, owner of C.W. Enterprises out of Denver, Colorado (www.yourcompliancecenter. com) suggests that carriers should operate “each unit as its own profit and loss center.” This will allow you the opportunity to track the relative success of each unit and manage accordingly. As the North American trucking industry continues to grow, even with the driver shortage, there will also continue to be an influx of entrepreneurs wanting to enter the industry. While it does take significant capital to start a trucking business, the most important thing necessary to succeed is consistent cash flow. Finding the loads can be the easy part, but again, receiving payment can be a challenge at times. There are opportunities a company can consider, such as load factoring, though to help ensure some consistent cash flow. One of the best ways to make certain cash flow is not a problem 44
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Trucking - It’s a Business is to have loads in hand. Regardless of where you are in North America, marketing and relationship building are the best ways to find loads and develop a long term supply of loads. Networking can be simple. “Affiliate with your state or provincial trucking association as that is where the other trucking companies are, as well as potential customers,” says Winchell. While there are certainly other ways to develop key relationships, a lot can be said about the benefits of joining your state or provincial trucking association. But, they key point is developing the relationships. “Try your best to tie in with one or two brokerages and commit to certain traffic lanes,” suggests Winchell. This will allow the opportunity for consistent freight and consistent runs overall, which in turn allows for more efficient management of trucks and personnel. “Maybe even try to develop a triangle of lanes to operate in so you can keep freight moving,” says Winchell. Remember though, even when there are loads available, picking the right loads are important. There are also niche opportunities in the North American trucking industry, so perhaps that is where you want to be. “If you do have a specialty niche, advertise and promote this,” says Winchell. “Make yourself unique and valuable to that niche market.” Even if you don’t think you are a niche market company, the chances are you offer some special skill or prefer to haul some specific product that perhaps you could develop into your own niche. Many of the newer small fleets will take any load that is offered under the assumption that some freight is better than no freight. However, if the load going in is to a location with no loads going out, and the deadhead is extra lengthy to get to a new load, then it may not have been profitable to take the first load to begin with. This is not to suggest
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MaY / JUNE 2016
Trucking - It’s a Business that deadheads are bad or that short miles are bad – sometimes they make sense. The key is to plan accordingly, somewhat like a chess match, always thinking a few moves ahead. And sometimes, as Winchell reminds us, “Sometimes, even though it hurts, it is cheaper to leave a truck on the fence.” A great way to help manage the dispatch of freight, which again is directly connected to your cash flow, is to consider an automated dispatch system. In fact, Winchell encourages this. “Get an automated dispatch system in place quickly,” says Winchell. “It may be costly up front, but the right system for your operation will allow smoother operations in the long run.” The size of the fleet might make a difference on just how quickly you get an automated system, but options do exist for fleets of all sizes, so it is worth investigating the idea early on. In addition to a way to manage cash flow, it is incredibly important to understand and manage the regulatory compliance issues. These can be safety related, financial related, personnel related, are other such areas of interest. Regulations are not exactly synced between Canada and the United States either, so if you operate in both it is incumbent upon you to fully understand and comply with the appropriate rules. Keeping up with regulations can be a challenge though, but it is important. Winchell suggests the following tips for any trucking company wanting to operate in North America: - Affiliate with your state or provincial trucking association as they will help to keep you informed about the latest and greatest of the regulations that could impact your business. - Maintain a current copy of US Federal Motor Carrier Safety Regulations as well
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MaY / JUNE 2016
Trucking - It’s a Business as Canadian Safety Regulations. - Fully understand the Federal Motor Carrier Safety Administration’s Compliance, Safety, Accountability (CSA) program and how it might impact your trucking operation. - Because of new and incoming regulations, consider starting out with electronic log books. They will be mandated soon, and having them now allows for a better understanding of how violations occur. Of course, the suggestions made by Winchell are just that, suggestions. They are a good starting point, but far from exhaustive as to how to keep up with new and existing regulations. One thing is certain though, if any trucking company, regardless of size, fails to keep up with rules and regulations something will be missed and that is when things start to go downhill. So, plain and simple, take necessary steps to stay informed and on top of the industry in which you operate. Much of the relative success of any trucking operation comes down to the people. Yes, drivers are key, but so are those who manage the operation. Of all the assets a trucking company needs to be successful, good people are at the top of the list. However, it may be that it is not necessary to hire staff to work on all aspects of the operation – some can be contracted out. Take the time to fully evaluate your needs and what will be most cost effective for your specific company. Depending on the size of the company, it really can make sense to contract out some parts of the business. “Contract out to those who know what to do,” says Winchell. This is especially true if you are a smaller fleet. Mechanics and safety personnel are two prime examples of the type of work that can, and probably should, be contracted out – especially if you are a very small fleet. Winchell, for example, is contracted by several small fleets in the United States to perform safety audits and ensure safety compliance. Most fleet owners also are not familiar with diesel repair, and keeping a diesel mechanic on staff for a small fleet makes little economic sense. For those areas you do not contract out, make certain the employees have the right tools to do the job and are the right fit for your organization. “Have capable people assisting you because you cannot do it all by yourself,” says Winchell. Hiring good people can be a challenge, but retaining them can be even more challenging. As such, it’s really you, the owner that needs to be the real leader of the organization. “Understand that, as an owner, that your actions speak louder than words,” says Winchell. “Others see what you do and how you do it.” Additionally, there are a few tools you need to manage the personnel side of the operation. It’s important to “ensure you have a company policy manual covering everything in the company and how you want specific tasks and jobs done,” says Winchell. Policy manuals should be as inclusive as possible, from how to submit a time sheet to how to track freight; from normal working hours to how you handle overtime for office personnel; from marketing standards to dates and times you review certain reports and how those reports are developed. The point is, it should be all inclusive so there is no question as to how to accomplish something. Of course, these policies may need tweaked as time progresses, but you need a starting place. When it comes to hiring drivers, this is really where the rubber meets the road. Do everything possible to make it as easy, yet as thorough and accurate as possible. Whether you are in Canada or the United States, do your research on the drivers you are considering for hire. “Screen drivers thoroughly and utilize any shared programs (like PSP) for back ground checks,” says Winchell. “Also, set up an account to draw your own motor vehicle records (MVRs), that way you control what you get and see and can make your own decisions.” The most important aspect of managing a successful trucking 48
quhwfI kMpnI leI ikhVI PwiedymMd ho skdI hY[ AwpxI kMpnI dy Akwr Anuswr ibzns dy ku`J kMm nUM kWtRYkt ‘qy dyxw vI cMgI g`l hY[pr ivMcl dI slwh hY ik ieh kWtRYkt aunHW nUM idE ijnHW nUM pqw hY ik kMm iks qrHW krnw hY[jy quhwfw Cotw PlIt hY qW ieh skIm vDIAw rhygI[ies dIAW do audwhrxW hn mkYnIkl Aqy syPtI AiDkwrI dw kMm kWtRYkt ‘qy dyxw [ imswl vjoN ivMcl kMpnI dw keI kMmW dw Tykw AmrIkw ‘c keI kMpnIAW ny ilAw hoieAw hY[ ienHW ‘c syPtI Awift Aqy syPtI kMplwieMs dy kMm vI Swml hn[ bhuq swry PlItW dy mwlkW nUM fIzl irpyAr dI jwxkwrI nhIN Aqy jy auh Coty PlIt leI v`Krw fIzl mkYink r`Kdy hn qW ies ‘c Pwiedw nhIN[ aunHW kMmW ijnHW dw qusIN kWtRYkt nhIN dyxw cwhuMdy ‘c quhwnUM ieh XkInI bxwauxw cwhIdw hY ik quhwfy kol kMm krn leI TIk AOzwr hox[ ivMcl dw kihxw hY ik qusIN hr kMm Awp nhIN kr skdy ies leI quhwfy koL shwieqw leI Xog ivAkqI hoxy cwhIdy hn[ ieh TIk hY ik Xog ivAkqI r`Kxw AOKw kMm hY pr aunHW nUM Awpxy koL itkweI r`Kxw aus qoN vI AOKw hY[ies leI mwlk hI hn ijnHW nUM ies sMsQw dw lIfr hoxw cwhIdw hY[ivMcl dw kihxw hY ik ieh g`l cMgI qrHW smJ lE ik quhwfI kihxI nwloN krnI dw izAwdw Asr pvygw[ikauN ik hor lok ieh vyKdy hn ik qusIN kI krdy ho Aqy ikvyN krdy ho[ Awpxy ibzns dy Amly dw pRbMD krn leI ku`J FMg qrIky vI hn[ ivMcl Anuswr kMpnI dy hr kMm leI quhwfy kol ie`k spSt pwilsI hoxI cwhIdI hY Aqy quhwnUM pqw hoxw cwhIdw hY ik ikhVw kMm iks qrHW krnw hY[ pwilsI vI mYnUAl loV Anuswr hoxI cwhIdI hY[ijs ‘c ieh drj hovy ik tweIm SIt ikvyN ByjxI hY, Pryt nUM ikvyN trYk krnw hY, dPqrI Amly dy Awm kMm dy GMitAW dy nwL Evrtwiem nwL ikvyN nij`Txw hY; mwrkiitMg stYNfrf qoN lY ky imqI Aqy smW, Kws irportW vyKxIAW Aqy ieh pqw lwauxw ik ieh ikvyN ifvYlp krnIAW hn[mu`kdI g`l ieh ik ies ‘c sB ku`J Swml hoxw cwhIdw hY [ ieh nw hovy ik iksy kMm nUM mukMml krn vyly qusIN socx l`g pE ik ieh iks qrHW krIey? ieh TIk hY ik quhwnUM SurU qW krnw hI pYxw hY pr smW bIqx dy nwL nwL ienHW pwilsIAW ‘c loV Anuswr qbdIlI vI krdy rihxw cwhIdw hY[ g`l jdoN frweIvr r`Kx dI AwauNdI hY qW ieh qW aus qrHW dw hoxw cwhIdw hY ijhVw sVk ‘qy TIk kwrguzwrI idKw skdw hovy[pUrw Xqn kro ik ies kMm nUM sOKw bxwE pr Xqn ieh kro ik ij`QoN q`k ho sky, hovy iblku`l Fu`kvW[qusIN AmrIkw ‘c ho jW knyfw ‘c frweIvr r`Kx smyN ijnHW nUM r`Kxw hY aunHW sbMDI pqw zrUr kr lE[ivMcl Anuswr aunHW sbMDI pUrI skrIinMg kro Aqy pI AYs pI vrgy pRogrwm Aqy aunHW dy ipCokV sbMDI jwxkwrI lE[aus sbMDI Awpxy kol vI irkwrf r`Ko Aqy ies ‘c AYm vI Awr rwhIN irkwrf qoN Awpxy PYsly lE[ ie`k sPl tr`ikMg ibzns leI zrUrI hY ik auh ieh iDAwn ‘c r`Ky ik hux sKq mukwblw hY[ies leI mukwbly leI quhwnUM shI swDnW dI loV hY[AmrIkw ‘c 3.5 imlIAn tr`k frweIvr Aqy 1.2 imlIAn tr`k kMpnIAW hn( ijnHW ‘coN 97% ies qrHW dIAW hn ijnHW kol 20 jW ies qoN G`t tr`k hn)[ knyfw ‘c l`g B`g 250,000 tr`k frweIvr hn[ie`k kwmXwb tr`k kMpnI leI Xog hoxw zrUrI hY, ies g`l dw koeI Prk nhIN ik qusIN au`qrI AmrIkw ‘c ik`Qy ieh ibzns krdy ho Aqy ieh vI ik ies mhWdIp ‘c tr`k frweIvrW dI Gwt bxI hoeI hY[ - spSt g`l qW ieh hY ik iksy kYrIAr kMpnI dI kwmXwbI leI vDIAw frweIvrW dI mu`K BUimkw hY[cMgI g`l ieh vI hY au`qrI AmrIkw dI tr`ikMg ieMfstrI ‘c Swml hoxw bhuqw AOKw nhIN[ - cMgI g`l ieh hY ik iksy frweIivMg skUl ‘c jwx qoN pihlW hweI skUl jW ies dy brwbr dI is`iKAw pRwpq kro[kwnUMn Anuswr c`l rhy bhuq swry skUl ieh mMg vI krdy hn Aqy bhuq swrIAW kYrIAr kMpnIAW vI ies sbMDI jwxkwrI lYNdIAw hn[pr ies dI Kws Srq qW nhIN pr lMby smyN ies dw mwiek qOr ‘qy MaY / JUNE 2016
MaY / JUNE 2016
business is understanding that there is steep competition, so you need the right resources to compete. In the United States, there are approximately 3.5 million truck drivers and 1.2 million trucking companies (97% of which operate 20 or fewer trucks). In Canada, there are approximately 250,000 truck drivers. This means regardless of where you operate in North America, and despite the driver shortage across the continent, a successful company really needs to be efficient. Obviously, quality truck drivers are important to the success of any carrier – luckily, entry into the North American trucking industry is not difficult. - Ideally, have a high school education (or equivalent) before going to truck driving school. Most legitimate schools will require this, and most legitimate carriers will want to know you have earned this. There is no definitive requirement to have it, but it certainly will pay off financially over the years. It just makes sense. - Maintain a clean driving record. Driving is your livelihood, so why do anything to jeopardize this? Certainly any driving under the influence (alcohol or drugs) will stop a career, but so do excessive speeding tickets or an excessive number of speeding tickets. Safety is, and should be, a priority for the trucking industry and drivers on the front line of that. - Earn your commercial driver’s license. Check with your state or province for specific requirements and steps to do this, but you must do it to get behind the wheel. - Then, simply make sure you comply with your state or provincial or federal requirements for the types of loads you want to haul and all future renewals. There are undoubtedly a number of other tools and tips available for anyone interested in running a successful trucking operation in North America, but these should provide a good foundation to start with. Focus on the details (the small things) before they become big things. Cash flow is important and there are a variety of ways to make certain that is not an issue. Personnel are certainly important, but there are many things one can do to keep that a positive experience. Technologies, good drivers, and good equipment are all a must. A successful company pays attention to all of these areas – somewhat like an engine does with pistons. If one piston is misfiring the engine will not run smoothly. Eventually, the engine will shut down. We want all engines to fire at the right time so it can run smoothly – just like any successful trucking operation in North America does.
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MaY / JUNE 2016
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MaY / JUNE 2016
CNG Viable Fuel Option
he past two years have been a wild ride of plunging oil prices and, therefore, the plunging of diesel fuel prices for commercial vehicles in North America. The most talked about alternative fuel three years ago, liquefied natural gas, has become uncompetitive on a three-year payback basis at the $70-80/bbl. oil price range and therefore became radically uncompetitive as oil prices eventually bottomed out under $30/ bbl. oil. Now that the price of oil has spent some time bouncing around in the high $20s and low $30s per barrel and is trading at about $40/bbl. recently, the widely held consensus is that the lowest oil and fuel prices are behind us. It is also generally believed that in order for enough oil to be produced to match demand going forward, the price will need to return to the $60-80/bbl. range. The open question is how long or short the time frame will be before the price resettles in that range. Indeed, the longer prices stay below that range, the less new drilling will take place in the interim and the higher prices are likely to go in the future when shortages develop due to insufficient new drilling now. But the unsung opportunity all along has been compressed natural gas. Two of the three means of using CNG have remained competitive the entire time: Self-compressed CNG for any fleet whose operations enable it to do centralized refuelling with their own compressors from their own natural gas utility pipe connection. Bio-gas, for those with their own source for it, such as waste collection landfill sector, municipalities sewage systems and agricultural animal waste operations. Only retail CNG at truck stops become uncompetitive at the lowest oil and diesel prices. And that will also return to competitiveness the soonest, at the lower oil/diesel; prices than for most other alternative fuels. According to in-depth analysis in a just-released report by BCC Research, depending upon a wide range of variables, such as annual driving distances of 50,000-150,000 miles per year, and all the additional initial vehicle costs to outfit for on-board CNG fuel storage and engine use of natural gas, the added cost per diesel gallon equivalent of CNG fuel is $0.36-0.48/DGE for a three-year payback. So conservatively, any time that one can fuel a commercial vehicle with CNG for at least 50 cents per DGE less than with diesel fuel, then one will have at least a threeyear or shorter payback by having equipped for CNG instead of diesel. Currently the price of oil is trading at about $40 per barrel. And the United Statesâ€™ national retail price of diesel fuel according to the Energy Information Administration was $2.12/gallon in the week of March 21, 2016. So if one can refuel oneâ€™s vehicles for $1.62 or less per DGE of CNG, then one will have a payback of three years or better. The most recent U.S. national average natural gas prices from EIA are from December 2015, but they had been flat to declining slightly in recent months before then and are unlikely MaY / JUNE 2016
to be meaningfully higher today since the price of natural gas varies far less than the price of oil. Industrial natural gas pricing in December 2015 was at $3.38/MCF, which converts to $0.45/ DGE, or a savings of $1.17/DGE as a bonus to what is required for a three-year payback. And even the higher-priced commercial natural gas price of $7.21/MCF, which converts to $0.96/DGE, generates a bonus savings of $0.66/gallon. Thus, even at $40/bbl. oil, with diesel at $2.12/gallon, selfcompressed utility pipe natural gas provides a major fuel cost savings versus diesel. But suppose that half of the time, the vehicles need to be refueled at truck stops farm from any of your
central sites. The estimated natural average truck stop price for CNG is about $2.21/DGE. That is a flat-out cost penalty of about $0.09/DGE CNG and a failure to recover any of the conservative 50 cents per DGE to cover the added investment to equip the vehicle for CNG, so the total cost penalty when refueling remotely would be $0.59/DGE of CNG. So, in the self-compressed industrial priced natural gas scenario, even with 50 percent of refuels performed at truck stops, one will save a net average $0.29/DGE of CNG in bonuses in addition to fully recovering all of your additional investment with a three-year payback. In fact, you could purchase about two-thirds of the total CNG fuel at truck stops and still achieve the three-year payback. At commercially priced natural gas price for 50 percent of the fuel and 50 percent at truck stop prices, you would incur a $0.04 average savings more than required for a three-year payback. In other words, you still achieve your three-year payback completely. In summary, even at the current low oil and diesel prices: Self-compressed CNG provides significant savings for commercial fleets. Even if one must purchase half of the annual CNG usage remotely at truck stop prices for CNG, one will still achieve a three-year payback. Biogas is probably always a favourable proposition, no matter how cheap diesel prices are. 53
BTS Statistics Release: February 2016 North American Freight Numbers
wo transportation modes – rail and truck – carried more U.S. freight by value with North American Free Trade Agreement (NAFTA) partners Canada and Mexico in February 2016 than in February 2015. However, the total value of cross-border freight carried on all modes fell 2.0 percent from February 2015 to $84.0 billion in February 2016 in current dollars, according to the TransBorder Freight Data released today by the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS). Freight by Mode The value of commodities moving by rail increased 6.0 percent, the largest increase from 2015 to 2016 of any mode. The 6.0 percent year-over-year growth in the value of rail freight is largely due to an increase in imports of vehicles and parts, the largest commodity carried by rail. The value of commodities moved on trucks increased by 4.7 percent from 2015 to 2016. The value of freight on other modes declined: air 1.7 percent; pipeline 35.6 percent; and
vessel 41.0 percent. A drop in the price of crude oil in 20152016 played a key role in the large declines in the dollar value of goods shipped by vessel and pipeline. Crude oil (a component of mineral fuels) comprises a large share of the commodities carried
by these modes. Average monthly prices for crude petroleum and refined fuel are available from the U.S. Energy Information Administration. Trucks carried 67.4 percent of U.S.-NAFTA freight and continued to be the most heavily utilized mode for moving goods to and from both U.S.-NAFTA partners. Trucks accounted for $29.3 billion of the $45.0 billion of imports (65.1 percent) and $27.3 billion of the $39.0 billion of exports (70.0 percent). Rail remained the second largest mode by value, moving 15.6 percent of all U.S.-NAFTA freight, followed by vessel, 4.3 percent; pipeline, 4.0 percent; and air, 3.8 percent. The surface transportation modes of truck, rail and pipeline carried 87.0 percent of the total value of U.S.-NAFTA freight flows. U.S.-Canada Freight From February 2015 to February 2016, the value of U.S.-Canada freight flows fell 5.5 percent to $42.6 billion even as two modes of transportation – rail and truck – carried a higher value of U.S.-Canada freight than a year earlier. Lower crude oil prices contributed to a year-over-year decrease in the value of freight moved between the U.S. and Canada. Crude oil is a large share of freight carried by pipeline and vessel, which were down 36.9 percent and 47.2 percent respectively year-over-year. U.S-Canada air freight value declined 3.2 percent because of a 31.3 percent decline in the value of shipments of aircraft and aircraft parts. Trucks carried 61.5 percent of the value of the freight to and from Canada. Rail carried 16.6 percent followed by pipeline, 7.4 percent; air, 4.8 percent; and vessel, 2.7 percent. The surface transportation modes of truck, rail and pipeline carried 85.4 percent of the value of total U.S.-Canada freight flows. U.S.-Mexico Freight From February 2015 to February 2016, the value of U.S.Mexico freight grew 2.0 percent to $41.4 billion as three out of the five transportation modes – truck, rail, and air – carried more U.S.-Mexico freight value than in February 2015. Freight carried by truck increased 7.7 percent. Rail freight value rose 4.7 percent while air freight value increased 1.2 percent. Vessel freight value decreased by 37.4 percent, while pipeline freight value dropped by 11.9 percent, both due mainly to lower crude oil prices. Trucks carried 73.5 percent of the value of freight to and from Mexico. Rail, carried 14.6 percent followed by vessel, 5.8 percent; air, 2.8 percent; and pipeline, 0.6 percent. The surface transportation modes of truck, rail and pipeline carried 88.7 percent of the value of total U.S.-Mexico freight flows. See BTS Transborder Statistics Release for summary tables and additional data. See North American Transborder Freight Data on the BTS website for additional data for surface modes since 1995 and all modes since 2004. MaY / JUNE 2016
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the 2016 vnl series :
All roads lead to fuel efficiency.
MaY / JUNE 2016
Published on May 4, 2016