__MAIN_TEXT__

Page 1

Summer 2019

The Official Publication of Florida Trucking Association

At the Heart of Trucking ALSO INSIDE: The Disruptors Historic Legislation Florida Leading Autonomous Technology


With expanded service across Florida, your fleet is in good hands.

OUR FLORIDA LOCATIONS

From Jacksonville to Miami, Snider Fleet Solutions has got you covered for tire and mechanical service— including tire management programs. From our 10 locations across the state, including new shops in Cocoa and Bradenton, we also provide emergency roadside service 24/7.

SniderFleet.com

Commercial Tires

Mechanical Services

Industrial and OTR Tires

800-528-2840


TABLE of CONTENTS

4 | The Future of Trucking Stephanie Slivanik, FTA Board Member and Chair of 2.0, is part of the next generation of leaders in trucking. Where will new markets, trends and technologies take us? Slivanik, Jared Dusharm and Ryan Walpole weigh in. By Alix Miller; photos of Slivanik by Norma Molina

16

SUMMER 2019

10

DEPARTMENTS President’s Message

3

FTA 2019 Legislative Update FTA Call on Washington

10

12 26

28

8 10

2019 SuperTech

12

The Rendezvous

18

Moves and News

28

FEATURES 4

The Future of Trucking

16

The Last Mile

The Niche Market: Motor Carrier Services 22

33

Autonomous Florida

23

ATRI Reports: E-Commerce

24

Uber Freight and App-Based Booking

26

INDUSTRY INSIDER

4

20

What Every Carrier Needs to Know about IRP and IFTA

14

TMC Spotlight: Heavy Duty Engine Diagnostics

20

Q + A with Morris Valenzuela

32

FLORIDA TRUCK NEWS

SUMMER 2019 | 1


New & Used Trucks

800.741.7566 6020 Adamo Dr Tampa, FL 33619

8247 15th St. East Sarasota, FL 34243

sunstateintl.com 7105 E 6th Ave Tampa, FL 33619

41609 Hwy 27 Davenport, FL 33837

2100 Palmetto St. Ste C Clearwater, FL 33765


KENNETH S. ARMSTRONG, PH.D. PRESIDENT AND CEO, FLORIDA TRUCKING ASSOCIATION

VOLUME 77, NUMBER 2 • Q2 2019 STAFF: President and CEO, Kenneth S. Armstrong ken@FLTrucking.org Vice President, Alix Miller alix@FLTrucking.org Director of Operations, Brian Nerland brian@FLTrucking.org Executive Assistant, Dot Butler dot@FLTrucking.org

PUBLISHED BY:

President’s Message HEADLINES For the numerous activities in which FTA has been involved over the last few months, consider the “headlines” that could be written. From the Annual Conference… • Governor DeSantis Praises Trucking Industry for Keeping Florida Moving • Werner Enterprises CEO Leathers Shares Candid Perspectives with Members • Congressman Mast Enjoys Quiet Dinner with FTA Leaders • FDOT Secretary Thibault Names Three FTA Representatives to Key Task Forces • The Breakers Hosts Largest FTA Annual Conference Ever • Luncheon Session Focuses on Tort Reform, Includes Major Business Associations • FMCSA Top Man Martinez Attends FTA Conference for Second Consecutive Year • New FTA Board Named, Borglund Takes Chairmanship From the Call on Washington…

350 E. College Ave. Tallahassee, FL  32301 www.FLTrucking.org EDITORIAL Editor: Alix Miller ADVERTISING Sales: Brian Nerland DESIGN & LAYOUT Art Director: Jeremy Ashmore © 2019 Florida Trucking Association. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of FTA. For subscription information, please contact FTA at 850-222-9900. Postmaster: Address changes to Dot Butler, 350 E. College Avenue, Tallahassee FL 32301 Disclaimer: The opinions expressed by the

• Biennial Visit Starts with a Bang as ATA Gives Orientation • Halls of Congress Echo with FTA Members Footsteps • Infrastructure Takes Center Stage in Conversations with Legislators From the Talking Trucking Tour… • FMCSA Florida Director and FHP CVE Chief Join FTA on Annual Tour • Six Cities, 1250 miles, Hundreds of Questions From Teacher Tours #1 and #2… • 18 Teachers from around the state are immersed in the industry in Tallahassee and Palm Beach From Florida Truck Driving Championships… • Where Will They Put All These Drivers? • Becky Nelson Becomes First-Ever Female Florida TDC Grand Champion • 1,200 Attend Closing Banquet, Salute Best Drivers in the State This issue of FTN and then the last one of 2019 will highlight the news you see headlined here. FTA is definitely staying Ahead of the Curve.

authors of the articles contained in Florida Truck News magazine are those of the respective authors and do not necessarily represent the opinion of Florida Trucking Association or its member companies. Printed in Florida. Please recycle where facilities exist.

FLORIDA TRUCK NEWS

SUMMER 2019 | 3


TECHNOLOGY

The Future of Trucking By Alix Miller In 1953, American Trucking Associations celebrated the 50th anniversary of the American trucking industry with a competition in New York City with 11 trucks and wagons out-hauling teams of horses. Before the invention of automobiles, most freight was moved by train or horse. It was only during World War I when trucks began to be used extensively.

Not so long ago. The trucking industry is essentially in the infancy of its second century. Despite how far trucking has come in little more than 100 years, the industry seems to be changing faster than ever. New technology, industry disruptors, second, third and fourth generation family members are taking the helm to run the show.

And the future has never looked brighter. FTA is one of the oldest Associations in the state of Florida, and rightly so: There are few industries in the state that are so vital, so integral to the economy and people. So what does the future hold? For the Association, there’s never been greater visibility or awareness about the import of transportation and logistics. But for the industry to continue moving, we need to embrace change, get ahead of business trends, and prepare the next generation to lead us through the second century. This issue of Florida Truck News looks at where we’re headed as an industry—which trends are at the forefront and are going to grow—will they help or hinder trucking? The future is dependent on

4 | SUMMER 2019

FLORIDA TRUCK NEWS


ROAD < COVER STORY: THE FUTUREON OF THE TRUCKING the people, whether that’s the legislators, federal or state agency leadership, private sector engineers and software developers. And here in Florida, it’s the executives, safety managers, attorneys, financial experts—both carriers and suppliers alike. Because while we are an industry beholden to trucks, there are so many other sectors and subject matter experts that influence trucking. One such influencer is Stephanie Slivanik. She serves on the Board of Directors of FTA as the 2.0 Chair. Slivanik was born and raised in Southern Connecticut and graduated Magna Cum Laude from Siena College in Loudonville, NY, with a BBA in Accounting and Minor in Spanish. She studied abroad in Spain during college and became completely fluent in written and spoken Spanish, prompting her to move to Miami in her early 20’s, where she worked for Telemundo in internal audit. Before we go any further, let’s address the obvious. When you think of the “future faces of trucking,” Slivanik is probably not who you’d think of. Now more than ever, the stereotypes are being dismantled, expectations being confounded—young, new voices are entering the industry and bringing their knowledge, savvy and sophistication to inform (and sometimes challenge) tradition. Slivanik’s three years at Telemundo were spent managing process improvements across the business, after which she realized she wanted to take her knowledge of accounting and finance, and apply it in front-end sales as opposed to behind a desk. Slivanik took a position at GE Transportation Finance, which is how she entered the trucking finance industry. She has since been working at Signature Financial, LLC, a wholly owned subsidiary of Signature Bank (NASDAQ:SBNY), a New York-based full-service commercial bank with 31 private client offices. Signature Financial provides equipment finance and leasing, transportation financing, franchise finance and commercial marine finance. At FTA, Slivanik is tasked with leading the 2.0 committee—a group of young, engaged leaders, established in 2010

and open to both carriers and suppliers, typically age 45 or younger.

go as well as its application in day-to-day operations.

Jared Dusharm served as Chair of 2.0 from 2015-2017. Under Jared’s leadership, the group made, “Promoting the Public Image of Trucking” the priority. The group worked in various community service projects to promote positive public image at a grassroots level. One event in Tampa was featured on the local news.

JD: Artificial intelligence and aerodynamics, in that order.

Slivanik became the Chair in 2017, and under her leadership, the group voted to make networking and professional education their focus. Events have included Lunch & Learns about truck autonomation; the I-4 project; and networking events with Raven Transport and Florida Rock & Tank Lines.

“ Young, new voices are

What do you see for the future of trucking/how do you see it changing? What will be the biggest challenge in the next 5-10 years?

entering the industry and bringing their knowledge, savvy and sophistication to inform (and sometimes challenge) tradition.” Slivanik and Ryan Walpole, the cochair, recently agreed the focus should continue to be professional and personal development via education, and networking. The result is a redraft of 2.0, with only 10 participants each year, emulating the American Trucking Associations’ LEAD program. (More on that later.) Since Dusharm, Walpole and Slivanik were instrumental in the development and progress of 2.0, and are already key players in the industry in their own right, what better way to look at the future of trucking than through their eyes?

What is the most interesting or exciting aspect to trucking right now? SS: It will be interesting to see how truck automation impacts the industry in the coming years. There have already been tremendous advancements in technology pertaining to safety. It will be exciting to see how far the automation process will

RW: I think the most exciting aspect to trucking right now is innovation. From forward collision devices, cameras, blind spot detection, adaptive cruise control and active braking, data collection to roll stability. All of this innovation is making our companies safer and more efficient.

SS: The combination of driver shortage; coupled with automation opportunities, will continue to impact our industry. Demand for trucks and moving product will always be there. How carriers find the balance between keeping satisfied drivers in their trucks, managing through increasing costs of doing business, and being able to meet their customer’s expectations, will remain a challenge. Creating attractive job opportunities for new drivers and technician pools will also prove to be somewhat difficult. Work-life balance is important to drivers, especially those with younger families. Opportunities for regional routes or finding ways to accommodate more nights at home during an average month will be tricky. I like to spend time talking with my customers to gain a keen understanding of their current business environment, and to learn how we can partner to navigate through issues such as cash flow seasonality, and loan versus lease options, among others. JD: Artificial Intelligence will change the way we all move freight. From a capacity side, freight will move more efficiently utilizing future applications. Diversification is critical to any company staying competitive. Adapting to the changes in generational ideologies and utilizing the talent they bring to the company in a positive way is necessary. 

FLORIDA TRUCK NEWS

SUMMER 2019 | 5


COVER STORY: THE FUTURE OF TRUCKING < RW: Trucking will probably change more in the next 5-10 years than we will ever see in our lifetimes. Automation and electrification will dominate the industry for the next several years. We won’t have full automation for a very long time, and I do not see the industry completely without drivers. I see our biggest challenges will be raising awareness about how great our industry is. We will continue to struggle with finding qualified drivers and technicians, but if we don’t start raising awareness about our industry and how vital and important it is to our economy, then we will always continue to struggle with bringing people into our industry. People are what make our industry tick, and without people freight will not get moved and trucks will not repair themselves. People are the backbone that make our industry stand. We need to continue to promote our industry and challenge all companies to take part whenever they can to help talk about the industry and how great it is.

Jared, you seem to be adept at solving challenges with new innovative ideas and technologies. JD: One problem we faced at Armellini was loading our trailers at our loading dock with proper lighting. While loading our trailers, we need light to see the barcode labels and human readable labels to verify shipments during the loading process. Our fleet of 53’ refrigerated trailers is already outfitted with lights inside the trailer, however, the problem is we could only use them if the tractor was hooked up to the trailer and supplying power to the trailer. Working with Thermo King of the Southeast, we were able to wire the trailers so the lights inside the trailer will work just like they normally do without having a tractor supplying power to the trailer. We installed an inexpensive wire so we could utilize the power of the Thermo King to supply the power needed for lights in the trailer. We now have proper lighting inside the trailer while loading our perishable product.  

6 | SUMMER 2019

FLORIDA TRUCK NEWS

JARED DUSHARM Jared is a third generation family member of Armellini Logistics. He attended Saint Thomas University and graduated in 1998 with a degree in Computer Information Systems. Since beginning at Armellini, he has moved throughout the organization, holding positions in various departments over the last 22 years. His current responsibilities are human resources, risk management, recruiting, and safety, with a background in operations. Armellini Logistics is one of the largest family owned companies specializing in temperature controlled shipments of perishable products. Jules and Sarah Armellini started the company in Vineland, New Jersey in 1945 with one truck and a dream. Through hard work and a commitment to customer satisfaction, their small dream soon grew into a fleet of trucks. Jules was always at the forefront of new technology in the floral transportation industry, contributing to the design of the first “flower specific” refrigeration units for trailers, and was also a pioneer in the use of wooden decking to split the trailer to relieve pressure on the flower boxes to promote air circulation, and the use of satellite tracking to pinpoint the position of all trucks. Armellini is comprised of six companies that all integrate together to offer a multitude of customized services consisting of: asset-based LTL and truckload; international and domestic air freight; U.S. Customs brokerage; container station; brokered truckloads; consolidation; dry goods and perishables; warehousing; and storage.

RYAN WALPOLE Ryan was raised in Lake Worth and received his first paycheck from Walpole, Inc., when he was 15 years old, for cleaning the West Palm Beach terminal. After graduating from Florida Atlantic University with his Bachelor of Business Administration, he went to work for the company full-time. Ryan has held various positions within the company from washing trucks; being a technician; managing the Tampa Shop; safety; A/R, accounts payable; and now Director of Purchasing and Procurement. Walpole, Inc., was started in 1952 by Ryan’s great grandfather, E.E Walpole II, and the company remains a family-owned and operated business. The company began with one man and a single truck and has spread over the southeastern United States to four terminals: Okeechobee, Tampa, West Palm Beach and Birmingham. The company’s values and approach to business have remained the same, while realizing the advantage of technology for today’s transportation industry.


COVER STORY: THE FUTURE OF TRUCKING < Another solution Armellini has had a hand in is helping with asset tracking, specifically trailer tracking. We needed a solution to track our temperature-controlled trailers to and from our facilities. TRAKKIT, among other things, is a Global GPS hybrid tracking device that has allowed Armellini to monitor the temperature and location of our perishable shipments from our facilities to our customers, without paying monthly fees.

What is it like working with the trucking industry? SS: I love it! My favorite part of this industry—and what I believe differentiates it—is people. I identify with and admire our industry’s sense of loyalty, work ethic and perseverance. I have tremendous respect for the day-to-day lives of business owners, operational employees and drivers alike. Despite obstacles that inevitably arise every day, the trucking industry really does always keep moving forward and continues to deliver, both literally and figuratively. It is a distinct and special culture.

Do you see a common characteristic among the up-and-coming leaders in trucking? Or, is there a specific characteristic needed to be successful in the industry? SS: I think our up-and-coming leaders demonstrate the qualities of taking ownership and making decisions. It’s a combination of learning from the past and applying it to current demands and expectations. They take best practices from previous generations and apply their approaches across areas, such as utilizing social media and embracing new technology. JD: The industry as a whole is aging. Engaging the younger generation with leadership responsibilities earlier in their career is ideal! Cultivating leadership is the key to being successful. Passion and hard work will go a long way with the tenure of any organization. Identify these traits and hire accordingly.  

RW: I think there is a characteristic that is needed to be successful not only in our industry but in whatever you do. That characteristic is Passion. If you are not passionate about what you are doing, then you need to go find something that you are passionate about. If you are passionate, I believe you will be successful.

Where is 2.0 headed? SS: My co-chair Ryan Walpole and I are very excited about the changes for 2.0. We shifted the program to mirror that of Lead ATA. We will target a specific group of approximately 10 individuals each year who are motivated to become a part of something bigger, which we believe will have an impact on FTA, both now and in the future. We will have approximately six to eight events per year, including professional development seminars, legislative training and outreach to government officials, and networking with previous and current chairs as well as board members. The goal is two-fold: first, to further develop our next generation of leaders from a professional standpoint; and, second, to create a strong “bench” of leaders for FTA. We believe that this program will strengthen relationships while also building a solid commitment to the organization, both present and future. RW: We wanted to create an atmosphere and curriculum where we will produce the leaders of tomorrow. So, we modeled 2.0 after ATA’s LEAD program, of which I was a member this year. LEAD gave me a complete understanding on how ATA is organized, structured and what they do for the industry. The learning experiences were something I could not have received anywhere else. The friendships and bonding that you have with a group of individuals who are just as motivated as you are is beyond comprehension. As I stepped out of my comfort zone and let my guard down with the information and people involved, I grew more as a person and as a leader than I ever would have.

THE NEW 2.0 — APPLY NOW! Applicants will need to submit the following:

A nomination form from their company’s management.

A complete application form filled out directly by the applicant (Now online).

• Annual fee of $400 to cover curriculum expenses; paid at Fall Round-Up by new participant’s employer.

• A participant must represent

a company currently in good standing within FTA.

The inaugural class will spend one year with personal development activities such as: learning more about governmental affairs and public policy, media training, developing professional writing skills, networking events, attending Trucking Day at the Capitol in Tallahassee and Call on Washington (every other year). Visit https://www.FLTrucking. org/councils-and-committees for more information and forms.

FLORIDA TRUCK NEWS

SUMMER 2019 | 7


By Chris Dudley 2019 has already turned out to be a historic year for success in the Florida business and transportation sectors. The inauguration of Governor Ron DeSantis in January has ushered in monumental changes for the trucking industry. In January, Governor DeSantis appointed three new members of the Florida Supreme Court. These new members have already shifted the balance of power on the Court to reflect a more conservative, business-friendly and â&#x20AC;&#x153;letter of the lawâ&#x20AC;? approach to judicial decisions. The impact of their decisions will affect case law for generations. At the same time, Governor DeSantis appointed Kevin Thibault as the new

8 | SUMMER 2019

Secretary for the Florida Department of Transportation. An engineer by profession, Secretary Thibault brings years of experience in the world of transportation. He spent 16 years in various senior-level positions at the Florida Department of Transportation in addition to a decade of private sector engineering experience. Secretary Thibault understands the importance of the trucking industry in Florida and has made being a good partner with FTA a priority. Senate President Bill Galvano has been the first presiding officer in years to make transportation his number one priority. During the 2019 legislative session, President Galvano championed the passage of SB 7068 which will create three new transportation corridors throughout the state. The bill, which was signed into law by Governor DeSantis on May 17th, will facilitate the creation of a new

FLORIDA TRUCK NEWS

corridor from Central Florida to Naples, an extension of the Suncoast Parkway to Interstate 10, and the extension of the Florida Turnpike from Interstate 75 to the Suncoast Parkway. Together, these three new corridors represent over 340 new miles of limited-access roadways to facilitate the movement of freight and serve as vital new options for hurricane evacuations. HB 725, championed for the past two years by State Representative Bobby Payne, was approved by Governor DeSantis on June 26th. The new law incorporates a number of priorities of FTA relating to commercial motor vehicles. Among the key provisions: conforming state law to numerous federal regulations including the requirement for the use of electronic logging devices for intrastate carriers; adopting changes to automobile transporters including an extension of the overhang and the ability to transport


general freight on a return trip; creating a weight variance for the use of electric battery systems; and authorizing a new permit program for the use of trailer combinations specifically to transport farm products in the Everglades Agricultural Area. The 2019 Florida Legislature also advanced the use of autonomous vehicle technology. Already a leader in the country on the use and testing of AV technology, HB 311 was approved by the Legislature this session to clarify and expand the use of this new technology. HB 311 was signed into law by Governor DeSantis at the stateâ&#x20AC;&#x2122;s new SunTrax site in Polk County. When fully operational, the Florida Department of Transportation SunTrax facility will become a largescale, state of the art facility dedicated to the development and testing of emerging transportation technologies such as autonomous vehicles. Another priority for Governor DeSantis and newly appointed Commissioner of Education Richard Corcoran was the expansion of workforce training programs and new avenues for the

completion of a high school diploma. HB 7071 will create the Florida Pathways to Career Opportunities Grant Program to provide grants to high schools, career centers, charter technical career centers, Florida State Colleges, and other entities authorized to sponsor apprenticeship or pre-apprenticeship programs for the purpose of expanding existing programs and establishing new programs. In addition to the promotion of career and technical training in all professions, this new law will have a positive impact on commercial motor vehicle CDL training for new drivers and new technicians for the trucking industry. The Governor and Republican-led Legislature also focused on a number of priorities for the business community. In addition to maintaining the line on no new taxes and no new fees, the Legislature passed one of the first tort reform measures in many years, SB 862 relating to the liability of a lessor under the dangerous instrumentality doctrine. In response to a 2018 Supreme Court decision against Caterpillar Financing, the new law provides that a lease

agreement that incorporates minimum insurance requirements for specialty equipment such as ditchdigging apparatus, well-boring apparatus, road construction and maintenance machinery, draglines, self-propelled cranes and earthmoving equipment is not subject to being liable under the doctrine. It has been many years since we have seen such a comprehensive approach to transportation and business issues of importance at the legislative and executive branch levels. Governor DeSantis has provided invaluable leadership and has been joined by two strong partners in Senate President Bill Galvano and House Speaker Jose Oliva. While we have more to accomplish, I think we can all agree that 2019 has truly been a historic turning point for the transportation and business economies in Florida. And the future continues to look bright. Chris Dudley is a Partner at Southern Strategy Group

SAE and TMC type II tests The only tire and complete wheel assembly balancing product proven to improve fuel economy in independently run SAE and TMC type II tests.

The only tire and complete wheel assembly balancing product proven to improve fuel economy in independently run SAE and TMC type II tests.*

The significant improvements in fuel economy recorded in the SAE J1321/TMC RP-1102 tests were achieved by precision balancing all of the tires with Counteract Balancing Beads. Perfectly balanced wheel ends reduce tire rolling resistance by minimizing sidewall flexing, tire squirm, and road-shock rebound.

www.counteractbalancing.com

1 800 572 8952 www.counteractbalancing.com FLORIDA TRUCK NEWS

SUMMER 2019 | 9


FTA Call on Washington 10 | SUMMER 2019

FLORIDA TRUCK NEWS


Capitol Hill was buzzing when FTA members arrived in Washington, DC in May during Infrastructure Week. If there was a lot of important legislation being considered at the state level, it almost paled in comparison to pending federal laws and regulations. FTA Call on Washington began at American Trucking Associationsâ&#x20AC;&#x2122; Capitol Hill office with a briefing of key issues to discuss with Floridaâ&#x20AC;&#x2122;s congressional delegation. The infrastructure package, driver shortage, traffic congestion and trade agreements were highlighted as talking points for members. With ATA staff to help navigate the hallways of the House and Senate buildings, FTA split up into groups in order to meet with 24 different offices during the visit. Senator Rick Scott stepped out of a committee meeting to spend some time speaking with our members, and Congressman Brian Mast indicated his support for developing new safety standards to allow 18-20 year olds to drive interstate. By the end of the visit, voices were hoarse and feet were swollen, but the message was made clear: in Florida, trucking is serious business.

FLORIDA TRUCK NEWS

SUMMER 2019 | 11


2019

A new stage was set for SuperTech this year. One that would properly reflect the importance of diesel technicians and their integral contribution to the trucking industry. Hosting the competition at the Florida State Fairgrounds in Tampa was a worthy investment to garner more visibility for the field, as well as celebrate the hard-working men and women whose first priority is to keep drivers and their trucks safe on the road. While the site was new, the champion was a veteran. Robert Gonzalez of Ryder System is no stranger to SuperTech—a repeat Grand Champion in Florida, he most recently won the statewide competition in 2017. The media reports on a shortage of drivers almost daily, but often forgets about the shortage of diesel technicians. Trucks won’t run and freight won’t move without people servicing tractors and trailers; troubleshooting engine issues

12 | SUMMER 2019

(L to R) Joey Young, Mac Kennedy, Robert Gonzalez, Jeff Marple and Ken Armstrong

or suspension problems. FTA recognizes how vital technicians are to the health of trucking and the economy of the state. Next year we are hoping the competition will be bigger than ever—renting out

FLORIDA TRUCK NEWS

more space to house more competitors and more stations. Mac Kennedy, Chair of SuperTech in 2019, will be returning to plan the 2020 competition, which will no doubt be even more successful.


Final Results: Station Winners:

Written: Matthew Hall, Florida Power & Light FMCSA Regulations: Marc Place, FedEx Freight Fasteners: John Solero, Publix Super Markets Brakes: Robert Gonzalez, Ryder System Trailer ABS: Kyle Kampourakis, Travel Centers of America FPI: John Solero, Publix Super Markets Electrical: Paul McRoberts, Travel Centers of America

PLATINUM

Suspension Alignment: John Lomastro, Florida Power & Light Engine Diagnostics: Robert Gonzalez, Ryder System Starting and Charging: Marc Place, FedEx Freight Fifth Wheel: Robert Gonzalez, Ryder System Tire/Wheel: Robert Gonzalez, Ryder System ­­­­­­­­——————————————————————————

PLATINUM

Third Place Overall: Kyle Kampourakis, Travel Centers of America Second Place Overall: Marc Place, FedEx Freight Grand Champion: Robert Gonzalez, Ryder System

PLATINUM

Florida SuperTech would not be possible without the generosity of our member companies, providing equipment and volunteers. Thank you to everyone who participated.

PLATINUM

PLATINUM

Many thanks to our 2019 SuperTech Sponsors!

PLATINUM

—————— PLATINUM ——————— PLATINUM

GOLD

————— GOLD GOLD —————

SILVER

SILVER

BRONZE

————— SILVER ————— GOLD

PLATINUM

SILVER

BRONZE ————— ————— BRONZE

GOLD GOLD

GOLD

FLORIDA TRUCK NEWS

SUMMER 2019 | 13


FTA Licenses and Decals â&#x20AC;&#x201C; Facts Every Carrier Should Know 14 | SUMMER 2019

FLORIDA TRUCK NEWS


Fact One: The concept behind IFTA is One License, One Base Jurisdiction. The lower 48 states and the ten Canadian provinces uniformly administer fuel use taxes through the International Fuel Tax Agreement (IFTA). Under IFTA, a heavy commercial motor vehicle engaged in interstate commerce is qualified to operate in all IFTA jurisdictions with just one set of credentials. IFTA credentials consist of the IFTA license and a set of decals for each qualified vehicle. The license and decals are issued by the jurisdiction in which the vehicle is based for registration purposes (base jurisdiction). All required tax reporting is done through the base jurisdiction.

Fact Two: Each qualified vehicle must carry the IFTA license under which it operates. This license may be the paper original, a legible photocopy, or a legible electronic image. Currently, Florida issues IFTA licenses on paper. It is usually recommended that the original copy be maintained with the carrier’s records and that a legible photocopy be made for each vehicle in the fleet. However, effective January 1, 2019, IFTA allows licensees to choose the method by which the license may be carried, regardless of the method by which the base jurisdiction initially issued the license. Therefore, a licensee may make a PDF copy of their license and save this electronic version to a mobile device, such as a smart phone or tablet. As long as the mobile device is with the vehicle’s operator and the electronic copy is legible and not altered, it is considered acceptable proof of licensure. These new provisions are stated on the Florida license.

Fact Three: IFTA decals are not vehicle specific. However, they are account specific. Every decal set displays a unique serial number that identifies the account to which the decals were issued. Therefore,

an IFTA licensee who has been issued decals may only place those decals on the qualified vehicles in that licensee’s account. To obtain decals for qualified vehicles that the licensee controls but which are not part of the licensee’s registered fleet under IRP (International Registration Plan), the decal order must include supporting documentation for these vehicles. Supporting documents are: a copy of each vehicle’s registration and a copy of the lease agreement(s) under which the licensee controls the vehicles.

Fact Four: The deadline for submitting an IFTA renewal order is always December 31. The IFTA license year runs from January through December. All IFTA licensees in Florida receive a renewal notice in the mail several months before the current decals expire. License renewals (and new decal orders) may be submitted by mail, by using the IFTA online system (E-File) or, when necessary, in person at the state’s service center in Tallahassee. However, all requests must be received before December 31, so that the IFTA office can verify that the account is eligible for renewal. This means checking that the license is not currently revoked/ cancelled, all taxes due and other fees have been paid, and there is no missing registration documentation. IFTA gives the jurisdictions a 60-day grace period (following the end of the license year) to process renewals. Licensees are permitted to operate with expired licenses during this grace period. However, a licensee who waits until the license year has expired to submit its renewal request is late. It is not always possible to fill late requests before the end of the grace period. To merit priority handling, renewals need to be submitted by December 31.

FLORIDA TRUCK NEWS

SUMMER 2019 | 15


The Last Mile: Where Brawn Meets Brains

by David Cullen There’s plenty of room to play in the lastmile space — the trick is to learn that the consumer is king of this hill.  Call it last mile or final mile, but customerfriendly delivery to homes, offices, and even small jobsites of big and bulky items is a trend already in full swing. It’s being driven by leveraging technology to meet the demands of the American consumer, who is now comfortable ordering just about anything online or at a retail store for delivery to their front door, or even inside their home or office. It will be a while before an autonomous truck pulls up to your house and robot delivery men clamber out and swiftly cart a new dishwasher, refrigerator, or massive HDTV into your house and even install it for you lickety-split. But in the meantime, providers of last-mile services are doing everything they can to make final delivery to consumers as fast, as simple, and nearly as hassle-free as, well, a robotic dream come true. The last-mile realm is where brawn meets brain like never before. It’s also a segment that’s growing by leaps and bounds in

16 | SUMMER 2019

tandem with the ongoing explosion in e-commerce. Growth expectations run sky high. The full-service residential delivery of big and bulky goods amounts to a whopping $9 billion market, according to a recent Bloomberg report. Backing up that number is a survey conducted last fall by XPO Logistics, one of the largest last-mile providers in North America. The study of e-commerce behavior found that 37% of U.S. consumers plan to make an online purchase of furniture, appliances, or other big and bulky products (defined as more than 150 pounds) in the next 12 months. Big and bulky Last-mile delivery is often thought of as the boxes delivered by the likes of FedEx, UPS, DHL, and the U.S. Postal Service. But the big and bulky stuff that last-mile truckers are delivering is freight that is either too heavy to be handled by the drivers of, or has dimensions that prevent it from moving through the sorting systems of, packagedelivery firms. It may seem, on a national scale anyway, that last-mile freight delivery is pretty much sewn up by the big players already in this arena, such as J.B. Hunt, Ryder System, and XPO. Yet

FLORIDA TRUCK NEWS

there are opportunities for smaller trucking firms to join the party because of how last-mile service offerings typically are built out. Consider last month’s announced acquisition by J.B. Hunt of Secaucus, New Jersey-based Cory 1st Choice Home Delivery for $100 million. Founded in 1934, Cory provides home delivery services of big and bulky products using 14 warehouses and other facilities. The company uses more than 1,000 independent contractors to complete over 2 million annual deliveries. Short of being bought out, getting in the game can be as simple as signing on as a local or regional contract hauler for a nationwide last-mile operation. Or it could mean coming up with a new angle on serving the ever-higher expectations of today’s consumers, who want quick and transparent delivery of goods straight to their doors, if not to an exact spot inside, and will pay extra for installation of many products. The ABCs of last mile Scott Leveridge, U.S. president of Dallasbased TForce Final Mile, points out that the asset-light 3PL operation relies on 500 carrier partners who collectively field 6,000 delivery personnel operating primarily delivery vans and straight trucks.


“How we look at the market is in terms of the B2B and B2C segments,” he says. “B2B — delivery to businesses — is the traditional base for last mile. But the rapidly emerging space is B2C, that is, home delivery. And that runs the gamut in terms of service offerings.” Leveridge further subdivides B2C (businessto-consumer) last mile into smaller packages (chiefly apparel); “non-conveyable” items, that are not so much big and bulky “but everything in between, like furniture flat in a box that needs two people to deliver;” and the heavy stuff, like appliances and patio furniture. The latter may require light assembly and/or installation by the delivery persons as well. “We’re in all those categories,” he says. “The real interesting one is growth in nonconveyable. Amazon created this space. It can be odd-shaped, so it takes up too much space to go through the sorting systems set up by UPS and FedEx.” TForce moves last-mile freight through 60 of its own facilities. “The name of the game is to get freight closer to consumers to deliver it to them faster,” Leveridge explains. “Our carrier partners use our digital supply-chain platform to handle deliveries and installations and provide visibility to customers. We have unique technology to push orders out seamlessly and have visibility through final delivery.” Because last mile is all about customer service, the company has a team of carrier managers, each of whom interacts with 15 to 20 carrier partners on how service levels are being met. TForce also has in place a case management system “to allow a seller to open a case [with us] if a delivery issue arises. And along with push notifications on their deliveries, end consumers can put in a question or comment on their experience.” Fast but smart Whether fleets are running delivery vans for light but bulky items; liftgate-equipped straight trucks for sofas, appliances, and the like; or flatbeds kitted out with forklifts for loads of board lumber and bricks, speedily dealing with deliveries of big and bulky freight and keeping close track of it is critical to last-mile success. While taking part as a contract carrier offers the lowest bar to entering the last-mile realm, an executive with one mega provider cautions that establishing a nationwide, let

alone international, delivery network is no mean feat. “It’s tough to enter,” says Patrick Coughlin, vice president and general manager of Ryder Last Mile. “We have [last mile] capability with e-commerce across the U.S. and Canada. LTL operations that might try to break in will have to develop partners across the country and have the technology in place to process the orders through to delivery. Technology is key to enter this market.” On the other hand, he says Ryder Last Mile is “forging partnerships with operators as ‘authorized carriers’ that are 100% DOTvetted with their own operating authority but specialize in various last-mile delivery services. Appliance delivery, for example, is very specialized vs. furniture.” These carriers typically operate 26-foot straight trucks that they own, or lease or rent on their own. Coughlin says that “where the rubber meets the road [in last mile] is with the service level. While LTL can do a curbside delivery, going ‘over the threshold’ to deliver inside means scheduling the delivery and tracking it, as well as offering take-away and installation services as needed.” He says Ryder can also “manage the linehaul piece for customers, such as outbound from a distribution point to one of our [hub] facilities, as well as bringing back returns for retailers.” In general, he adds, the goal is “to drive miles out of the delivery and get quicker cycle times, especially in metro areas.” In October, Ryder announced it is expanding its last-mile operation to include partnerships in eight strategically located cities. Its e-fulfillment network now includes 136 facilities covering 95% of the U.S. and Canada within a two-day timeframe. Those last-mile hubs are where Ryder preps deliveries, which may involve light assembly and setting up product installations. Coughlin says it’s where the “white glove” service that really sets last mile apart starts. “We would assemble products shipped to us in boxes, such as furniture, and maybe blanket-wrap it before heading out for delivery. Our delivery management system can pull together pieces, such as a living room set, coming from different places into one delivery and give visibility, including any returns.” He says Ryder continues to invest heavily in “visibility technology.” That includes RyderView, which allows scheduling and

tracking orders with photo-capture digital proof-of-delivery, which aids the claims management program. “For the customer, it really comes down to getting visibility into the whole process,” Coughlin adds. Technology of visibility Mario Harik, chief information officer for XPO Logistics, says the company leverages technology to give last-mile customers visibility and self-service options. XPO contracts “100%” with carriers in local markets that send out two-person teams to deliver to the end consumer. The carrier onboarding process includes background checks, “as these drivers are going into someone’s home,” he notes. “We have 85 hub locations where we can ‘stage’ the product and complete any minor customizing before delivery. These hubs put us within 125 miles of 90% of the population.” Driving it all, though, is the technology of visibility. Harik says XPO is the first provider to offer last-mile tracking of heavy goods through Google Search, which can be done on any internet-enabled device. “Google Search interacts with our last-mile technology, XPO Connect marketplace, and XPO Direct shared-space network, for a seamless digital experience.” He adds that once a delivery is under way, XPO offers customers a choice of self-service options, including online order management, text updates, and voice-activated connectivity through Google Home and Amazon Echo, to keep the process as visible as possible. “Consumer expectations are high for last mile,” Harik says. “That’s why our technology has to keep us close to them. We give them full tracking of the product, right on their phone. They can open a web app and ‘see’ the truck moving toward their house. They can specify a phone number or email for us to use, and we offer a 1-5 rating scale for customer feedback on the delivery. That’s to ensure we have the best contract carriers working for us.” After all, the customer is king— especially when your work takes you to or right into their home. This article was used with permission and originally published by Heavy Duty Trucking on February 11, 2019.  www.truckinginfo.com.

FLORIDA TRUCK NEWS

SUMMER 2019 | 17


The Rendezvous: Safety Is Not a Department The Rendezvous 2019: Safety is Not a Department was held at the charming Resort at Little Harbor in Ruskin, and focused on how all our companies, all departments, and all our partners can buy in to safety in a greater way. The event offered up sporting activities, including golf, fishing and skeet shooting. As established, the money raised from sponsorships went to the Florida Teacher Tours. Before the Rendezvous began, the SMC hosted a voluntary vehicle inspection at the Seffner Weigh Station. A record number of members was in attendance— more than 50 safety experts and Florida Highway Patrol troopers volunteered to work with drivers who stopped to learn more about safety and have their trucks inspected. As the official event kicked off, guests gathered in the evening for a steak dinner al fresco with the ocean at their feet, and a stunning pink and orange sunset as the backdrop. Keynoter Don Osterberg (whose attendance was generously sponsored by Instructional Technologies) spoke to the guests about the importance of safety at all levels of the trucking industry. Osterberg serves on the Board of Advisors for SmartDrive and formerly served as senior vice president of safety, security and driver training for Schneider. The inspiring keynote was followed up with ice cream sandwiches and an “All Hands Confabulation”—How Do We Move

18 | SUMMER 2019

Members spent the first afternoon clay shooting (pictured here), fishing and golfing. the Needle? discussion about safety culture and efforts, led by FTA CEO Ken Armstrong. The next morning was met with a full breakfast buffet and breakout sessions geared towards safety, technology and management. Every session was led by industry experts and provided an opportunity for members to ask questions and engage in productive discussion. Sessions included: Safety Needs Support from the Top, with Doc Hyder and Jeff Stamm from Rowland Transportation Safety Needs Support from the Shop, with Joey Young from Publix Super Markets, and Kelly McDowell from Oakley Transport

FLORIDA TRUCK NEWS

Safety Needs Support from the Cops, with Captain Ezra Folsom from Florida Highway Patrol, and Ray Lloyd, from Carroll Fulmer Logistics Corporation What’s the ROI on Specing Safety Truck and Trailer Equipment, with Ed Costello and Denny Ross from Kenworth Jacksonville The Insurer’s Perspective on Safety, with Steven Cardew from USI Insurance What if you landed in court? with J.W. Taylor and Kristen Johnson. Preventing the #1, #2, and #3 accident causes that aren’t the driver: FMCSA reports, with Jeff Sanderson from FMCSA. The generous sponsors of The Rendezvous covered the expenses of the


Members and FHP at the Seffner Weigh Station for a Voluntary Vehicle Inspection

Many Thanks To Our Rendezvious Sponsors!

Don Osterberg two Florida Teacher Tours, in Tallahassee and Palm Beach. Thank you to Breakthru Beverage Florida, CDT, Florida Rock & Tank Lines, Florida Utility Trailers, Infinit-I, Instructional Technologies, Kenworth of Jacksonville, Nextran Truck Centers, Pallet One, PrePass Safety Alliance, Publix Super Markets, Quality Distribution, RE Garrison, Rowland Transportation, Smartdrive Systems, Walmart Transportation, Walpole, Inc., and Wayne T. Fellows, Inc., for your support.

FLORIDA TRUCK NEWS

SUMMER 2019 | 19


FTA FLASHLIGHT

FTA FLASHLIGHT: Heavy Duty Engine Diagnostics

By Barry Yeager, Nextran Director of Service Operations Ask most owners and fleet executives who own late model heavy duty trucks what their main truck down issues are caused by and you’ll hear electronics, emission systems and the dreaded check engine light. We all know today’s trucks are the most technologically advanced trucks ever built. Today you can haul 80k pound loads on the highway achieving record fuel economy; the ability to automatically detect unintended lane departures; automatically apply brakes for collision avoidance; choose the correct gear in the automated transmission for the topography; and communicate wirelessly to the OEM while maintaining emissions near zero. The incredible amount of data traveling on high-speed networks to multiple electronic control units is truly remarkable. Diagnosing these systems, however, can be challenging for the owner as well as the technician. Many owners are frustrated when the repair shop informs them that the cause of their check engine light has been found, the part will be in tomorrow, only to get a call the next day to explain that that was not the issue—the light is still on and they need more time to diagnose. Today’s diagnostic technician has to understand the functions of the different electronic control systems as well as be a high-speed network specialist. The electronic systems evolution has been at breakneck 20 | SUMMER 2019

speed; early systems were basically used to monitor a few sensors for continuity, then the full authority electronics came to be where the throttle pedal no longer connected to the engine mechanically. As new emission levels came about, technology increased from the basic Engine Management Systems, to the integration of ABS/ATC modules, light control modules, video modules, Transmission Electronic Control Units, and myriad of other specialized body control modules to the networks. Then in 2013, heavy-duty On-Board Diagnostics was required on all HD trucks. Now the system has to predict when an emission control is about to go out of compliance before it actually fails. These are called plausibility values. The amount of possible fault codes has grown to the thousands for all the ecu’s ad networks. In fact, total possible fault codes for 2010-2019 trucks have grown to near 4000 individual codes. When the technician starts diagnostics on a truck, he must see which codes are currently active, which are inactive and try to understand if current codes could have been related to previous codes. Several avenues to aid the technician in diagnosing are available. Usually the first step should be experience, repeated-like failures with the same resulting repair. Then the technician typically will turn to their electronic diagnostic program. Some manufacturers have diagnostic software that

FLORIDA TRUCK NEWS

can learn through technicians inputting into the system what fixed the vehicle. These systems can then determine which component or procedure will be the most likely to repair the unit. Along with these, most OEM’s have technical support teams for the technicians to contact to help them in diagnosis. With all these resources, diagnosing the root cause of failure should be a fairly easy process. However, it is anything but easy. Multiple systems interact with one another in today’s high-tech trucks, and those interactions sometimes are hard to comprehend. Take for instance, a newer vehicle where the transmission had fault codes and proper operation was not possible, all due to the front tires not having the same circumference. Or the vehicle that would lose throttle only on right turns being caused by a transmission electronic control unit. On-going training for these technicians to diagnose these complex systems is paramount; rapid changes in these systems require it. There is a trend in more and more repair facilities to have one or two technicians be trained to be the experts in diagnostics. As manufacturers continue to develop vehicles with more and more complex multiple networks and electronic control systems, finding training and retaining qualified technicians to properly diagnose these systems could very well be one of the industry’s biggest challenges.


OCTOBER 15-16

FALL ROUND-UP

LAKE MARY MARRIOTT KEYNOTE BY MELISSA KUIPERS BLAKE

ATTORNEY AND EXPERT ON THE CANNABIS & INDUSTRIAL HEMP INDUSTRY

VEHICLE INSPECTION

TUESDAY, OCTOBER 15 7-11AM: FLAGLER SB WEIGH STATION

TUESDAY, OCTOBER 15 7AM: VEHICLE INSPECTION 1PM: NEW BOARD ORIENTATION 3PM: FTA BOARD MEETING 5:30PM: OPENING RECEPTION

WEDNESDAY, OCTOBER 16 8AM-4:30PM OPENING GENERAL SESSION BREAKOUT SESSIONS INDUCTION OF 2.0 MEMBERS 5:30PM- TOASTING 85 YEARS OF TRUCKING IN FLORIDA: A LOOK BACK WITH TRUCKING LEGENDS

SESSIONS TO INCLUDE:

TOLLING AND BYPASS TECHNOLOGY FL ROADS: FROM CONCEPT TO CONCRETE OUTREACH TO LOCAL LEADERS CO-MARKETING WITH NASCAR

WWW.FLTRUCKING.ORG/FALLROUNDUP FLORIDA TRUCK NEWS

SUMMER 2019 | 21


The Niche Market: Third-Party Motor Carrier Service Providers

Florida Department of Highway Safety and Motor Vehicles has seen a rapid increase in the use of third-party carrier service companies recently. As the niche industry continues to grow, trucking companies need to be aware of the benefits and risks of hiring a motor carrier service provider. The regulation of motor carriers and their vehicles is intended to promote commerce and public safety. However, it can be overwhelming to keep up with all the federal, state, and local requirements that apply. Therefore, it is understandable that many carriers turn to a service provider or thirdparty administrator to help with compliance and credentialing. Carrier services can provide a wide range of services beneficial to the carrier. Neither the U.S. Government nor the State of Florida requires the use of a service provider nor endorses any particular vendor. There are many private businesses to choose from, and they are not regulated uniformly. Therefore, carriers need to be careful about the service provider they hire. The considerations listed below focus on businesses that offer IRP and IFTA services. â&#x20AC;˘ Does the carrier service have subjectmatter expertise in IRP and IFTA? Just because a carrier service can handle IRP and IFTA paperwork does not mean it understands the requirements of these programs or the purpose of the supporting documentation that must be submitted. Every jurisdiction, regardless of the motor vehicle registration laws that set it apart, 22 | SUMMER 2019

follows the same IRP and IFTA provisions. Why is this important? If the carrier service does not understand the standard requirements and their purpose, it is more likely to make mistakes in the paperwork or omit important supporting documents. â&#x20AC;˘ Does the carrier service provide accountability for its actions? In Florida, carrier services are not required to be registered, regulated, or to carry a performance bond or liability insurance. However, a carrier service may do so voluntarily; especially if they are confident in their internal controls and procedures. Why is this important? If the carrier service is responsible for filing tax returns and/or tax payments and does so late, the penalties are incurred by the carrier, not the service. If the carrier service has been entrusted to maintain operational records and the account is audited, any finding of inadequate recordkeeping or other failure to comply with IRP or IFTA will result in an assessment of the carrier, not the carrier service. Also, if the carrier service writes checks to pay registration or decal fees on behalf of the carrier and the payment is rejected for insufficient funds, it is the carrier that may be required to make future payments with certified funds, not the carrier service. â&#x20AC;˘ Does the carrier service have a good business reputation? Like any other business, a carrier service should be able to provide references from other customers. Organizations like the Better Business

FLORIDA TRUCK NEWS

Bureau may be able to provide information if there is a history of complaints or bad practices. Also, the service should be able to explain how its processes work and how they protect your private information and the credentials they receive on your behalf. Why is this important? If you do not know the business you are hiring, you are at a higher risk of being victimized by poor or misleading business practices or, even worse, fraud. How will you know if the money you gave them to pay for registration or license fees was handled properly? Are the fees they charge for services transparent and reasonable for the amount of work they are doing? How do they safeguard your personal identifying information or credit card information? Some carrier services may be very small, while others may be known nationally. The size of the organization is not important; what is important is that the carrier service can demonstrate they are competent and will hold themselves accountable for their performance. The North American Transportation Services Association (NATSA) is an international group of carrier services that work together to promote professionalism and expertise among businesses that provide services to motor carriers. They identify best practices and provide training to their members. The NATSA website has helpful information and links that may be useful in determining how to select a carrier service. Visit https://www.natsa.net/.


Autonomous Florida Florida Law Puts State at Forefront of Autonomous Vehicle Technology

By the Office of Representative Jason Fischer (R-Jacksonville) Technology is advancing at a rapid pace, and Florida has a unique opportunity to be at the forefront of autonomous vehicle policy. State Representative Jason Fischer of Jacksonville, Florida, has been a champion for innovative transportation; he recognizes the benefits autonomous technology would have on the future for all Floridians and the transportation industry as a whole. During the 2019 Florida Legislative Session, Representative Fischer sponsored House Bill 311: Autonomous Vehicles, stating, “we here in Florida are pioneering the most exciting innovations in transportation. This bill on self-driving cars will usher in a new era of smart cities that will not only expand our economy but increase road safety and decrease traffic congestion.”

Florida Governor Ron DeSantis signed the legislation into law, with an effective date of July 1, 2019; the bill signing was held at the SunTrax testing facility – the only state-

Gov. Ron DeSantis signs HB 311 into law. owned autonomous vehicle testing facility in the southeastern United States. Representative Fischer’s bill (and Senator Jeff Brandes’ companion bill, SB 932) updates state laws that did not contemplate a driverless future when they were written.

His bill is a win-win, not only for those in the automotive and transportation industries, but for all Floridians. In 2017, over 37,000 Americans lost their lives in traffic-related incidents, with 94% of those fatalities resulting from human error; autonomous technology has the capability to reduce human error on our roadways, making everyday modes of transportation drastically safer. It will also ensure our transportation modes serve all Floridians, providing opportunities for the elderly and special- needs communities to have an independent and reliable source of transportation. With this legislation, Florida will attract the kind of testing and development that will make our state a pioneer in autonomous vehicle technology, creating safer and accessible transportation modes for all.

FLORIDA TRUCK NEWS

SUMMER 2019 | 23


ATRI Reports: E-Commerce Impacts on the Trucking Industry The American Transportation Research (ATRI) released a study in February looking at the rapid pace of change in retail supply chains caused by the increase in e-commerce. There has been a dramatic shift in consumer spending habits—instead of shopping at brick-and-mortar stores, people are opting for online purchases with an increased demand for next-day delivery. This, ATRI has found, requires retailers to adjust the traditional hub-and-spoke distribution centers, wherein companies manage a large inventory through a central distribution center, to a more regional and nimble combination of air, rail and trucks system to move products more efficiently from distribution site to consumers. As the last mile continues to shrink (research shows the largest 15 metropolitan areas average between six and nine miles), smaller facilities in industrial urban locations are being used to facilitate the growing volume and demand. The study reports in place of “big box” warehouse spaces, with massive inventories to ship from point A to point B, taller distribution buildings are being used due to land

24 | SUMMER 2019

limitations, with a wider array of goods but lower inventory of each, to serve smaller, last mile fulfillment centers. The primary impetus for this shift in supply chain logistics is the need to respond to consumer demand: a study conducted by UPS reports that 63 percent of those polled said that delivery speed was important when selecting and purchasing a product. In order for online retailers to speed up, the “purchase to porch” process has also increased delivery locations. Providing alternative delivery locations, such as Amazon lockers in Whole Foods grocery stores and FedEx delivering to Walgreen’s, benefits company and consumer alike. For companies, brick-andmortar stores with delivery/pickup lockers increase foot traffic of consumers who may not otherwise enter the store. In-store deliveries also increase the efficiency for the transporting of the goods, as drivers can drop off multiple packages at once, rather than spend additional hours going from home to home, delivering one package at a time. Indeed, for the more rural delivery route driver and consumer,

FLORIDA TRUCK NEWS

remote pickup locations allow the customers to receive their purchases faster, usually along a route from work to home, and bring significant time and cost savings to the company. As mentioned earlier, companies have had to adjust their inventory management processes in order to more quickly fulfill an online order. Consumers are demanding an increased availability and variety of products at any given online retailer, and retailers are adopting the just-in-time (JIT) inventory principle. JIT controls costs by stocking the optimal quantity of products while also being able to respond to a sudden change in demand. E-commerce companies are also looking at their supply chain models and deciding whether to use vertical integration within the business or outsource to companies that specialize in order fulfillment. This perhaps is where we are currently seeing the biggest changes. Amazon recently announced building out its own delivery capacity with Amazon Air, tractor-trailers and local delivery vans. Conversely, other businesses are beginning to contract with 3PL providers


for drop-shipping—allowing the retailer to offer a wider product offering without holding inventory itself.

Impact to the Trucking Industry The dramatic uptick in e-commerce has both positive and negative effects on the transportation sectors of companies, and for those trucking companies that serve online retailers. The decentralization of retailers’ supply chains has created a decrease in average length-of-haul, which is being replaced by shorter intra-regional and local hauls. ATRI reports the average length-of-haul for dry van truckloads has declined almost continuously since 2000, falling by 296 miles, or 37 percent. As the industry struggles to replace OTR drivers who are retiring, these shorter hauls are more attractive to the younger generation, as drivers are able to be home every (or most) nights with their families, rather than spending days or weeks at a time on the road. In addition, local delivery drivers are less (or not) impacted by Hours of Service and ELD mandates. However, growing scarcity of truck parking options, particularly in more densely populated areas, is becoming more challenging, as cities’ existing

infrastructure lacks enough loading/ unloading zones as well as a dearth of curb space. Further exacerbating this issue is the near round-the-clock schedule of deliveries demanded by consumers and companies responding to the need with multiple deliveries throughout the day, often within the same small radius. As motor carriers respond to faster turnaround times, external factors such as inclement weather, traffic congestion and warehouse delays impact timely deliveries more acutely. Trucking companies are now adding services, such as “white-glove” deliveries of bulky items. J.B. Hunt, as well as 3PL XPO Logistics, are providing front porch delivery with installation, product assembly and repairs within the home or business.

The effects of e-commerce continue to reverberate within the trucking industry, as companies adjust their business models to handle an increased demand as well as a shift in supply chain logistics. ATRI found that ultimately, if trucking companies are able to adjust their business models to reflect the changing landscape of retail, some positive opportunities will accrue to both the financial strength and overall wellness of company and employees alike. As of now, the industry has benefitted from the growing demand for their services and, as long as companies continue to adapt to the changes, can expand into a growing industry segment—the ‘last mile.’ To read the full report, visit www. TruckingResearch.org

FLORIDA TRUCK NEWS

SUMMER 2019 | 25


The Uberization of Trucking A “disruptor” in business is an innovation that creates a new market and value network and eventually disrupts an existing market. In transportation, the term is now synonymous with Uber, when the company introduced ride-sharing technology, quickly challenging the status-quo. When the mobile app launched, populations in major cities across the world shifted the long-established practice of standing on the corner of the street and trying to hail a taxi. Just a few short years later, Uber is ensconced in nearly every community—a multinational transportation network company estimated at 110 million users, with a 69 percent market share in the United States for passenger transport, with additional services such as food delivery (Uber Eats), bicycle-sharing (Jump) and scooters (Lime). Cue the uberization of trucking. Uber Freight was launched in 2017 and provides a load-matching app for carriers and shippers. Xinfeng Le, Product Manager at Uber Freight, explains the technology, process and how it may change the industry. How does app-based booking in trucking work? The technology is transforming the trucking industry, seamlessly and transparently connecting carriers and shippers. Carriers and drivers can find good loads with upfront prices faster, and book 26 | SUMMER 2019

them with the push of a button instead of wasting time negotiating over the phone. Shippers are empowered to plan routes more effectively and efficiently through instant and reliable access to prices and capacity. You recently released the first Facility Ratings—can you explain the system? What impact will this have (on both shippers and drivers)? In the past, carriers and drivers have relied on hearsay from other drivers and past experiences to gauge what to expect at a certain facility, whether that means a lack of parking and long wait times or quick operations with a friendly staff. At the same time, shippers’ supply chains are big and complex, making it difficult to identify inefficiencies that may pose issues to drivers. Uber Freight is powering industry-wide collaboration through products like facility ratings, a recent addition to the Uber Freight app that empowers carriers and their drivers to rate and review facilities to help fellow carrier app users make informed business decisions. This reliable experience data is then shared with shippers via their online shipper platform in order to help them identify areas of improvement. Through facility ratings, we create an actionable dialogue between carriers and shippers on how facility operations can improve.

FLORIDA TRUCK NEWS

In June, Uber Freight expanded that collaboration and communication to the logistics community at large with the release of its inaugural Facility Insights Report, which draws upon 250,000 ratings and reviews to illustrate key insights and trends about how drivers engage with facilities – on both a national and regional level, as well as across various industries. With this large-scale and actionable experience data, shippers within and outside the Uber Freight network are able to better understand drivers’ needs and improve efficiencies in their supply chains. How do you see this platform and others like it changing the landscape of trucking? Through technology, Uber Freight is creating a more equal and accessible trucking industry. Logistics has historically been rife with inefficiencies, with business conducted on paper, through phone calls and over fax machines. Beyond this, too, opportunities were often limited by your network, so for those starting out, getting the best loads or sourcing the best carriers and their drivers was difficult. Through the power of app-based booking platforms, carriers and shippers are able to share and book loads much faster than before and in a more equitable fashion. Technology-powered logistics is creating opportunity through lowering the bar to entry and making it easier to share and book loads for all.


Familiar Face in Florida: Laura Roan Hays Roan Hays was recently named the Chairwoman of Women in Trucking Association’s (WIT) Board of Directors. Born and raised in the greater Atlanta area, she is the mother of two daughters and three grandchildren. She relocated to the Space Coast of Florida in February 2015 from Atlanta, GA for a career opportunity with Great Dane. She has now been in the transportation industry for more than 30 years, beginning in 1989 at a small regional trailer manufacturer as an administrative assistant. She eventually worked her way over to Great Dane as a Branch Manager, leading the Great Dane Tampa and Miami branches. Roan Hays believes of the most important aspects to her career today is being a mentor.

WELCOME NEW MEMBERS

“I was fortunate enough to have several wonderful mentors early in my career and even still today. Regardless of where you are in your career path, you can always use a mentor. My goal as a mentor is to provide guidance, trust and empowerment. It is so rewarding to see a mentee grow and become empowered by the encouragement you can provide and life’s lessons you share. I am very excited to take on this role and further assist in fulfilling the WIT mission to encourage the employment of women in the trucking industry, promote their accomplishments, and minimize obstacles faced by women working in the industry.”

CARRIERS: BigC Freight Pero Transport Patterson Companies Guaranteed Transport Service Omega Mile Greenbush Logistics, Inc. SUPPLIERS: Jones, Hurley & Hand Work Loss Management Battery USA UMB Capital Finance Ezlogz SkyBitz, an Ametek Company Vacuum Truck Rentals KeepTruckin Dayton Parts, LLC Synergy Recycling Wells Fargo Equipment Finance Transport Capital Partners ParkoTruck RTS Financial FLORIDA TRUCK NEWS

SUMMER 2019 | 27


MOVES AND NEWS

Update on people and places in the FTA membership

Ken Armstrong, Philip Fulmer, CEO of Carroll Fulmer Logistics Corporation and Keith Walpole, CEO of Walpole, Inc., have been named to the Multi-use Corridors of Regional Economic Significance (M-CORES) corridor task forces. Senate Bill 7068 required FDOT Secretary Kevin J. Thibault, P.E. to make the appointments which include state and local officials, environmental stakeholders and members of the community. Each task force will make high-level recommendations for their respective area which include the Southwest-Central Florida Connector, extending from Collier County to Polk County; the Suncoast Connector, extending from Citrus County to Jefferson County; and Northern Turnpike Connector, extending from the northern terminus of the Florida Turnpike northwest to the Suncoast Parkway. When disaster flooding occurred in the Midwest this spring, Werner Enterprises and the Dollar General Corporation teamed up to donate 19 pallets of water to the

28 | SUMMER 2019

Lincoln National Guard. A Werner professional driver also transported a full truckload of water for the Salvation Army from Omaha to Spencer, Nebraska. Another Werner driver transported a load of flood relief supplies from Lillington, North Carolina to Omaha, Nebraska for the Crossing All Borders Ministry. Additionally, Werner’s volunteer group, the Blue Brigade, stood ready to assist with volunteer efforts where needed. Landstar System announced that Robert S. Brasher has been appointed to succeed Patrick J. O’Malley as Landstar’s Vice President and Chief Commercial Officer, effective June 3, 2019. The company also announced that Mr. O’Malley will step down from his current position with the company on May 31, 2019, and will serve as a Special Advisor to the CEO through his anticipated retirement in February 2020.

FLORIDA TRUCK NEWS

Landstar announced the launch of LandstarOne, a new mobile app created to give independent Landstar owner-operators one stop for all of their business needs. “LandstarOne makes it even easier for independent owner-operators to save money on fuel and gives them direct access to the Landstar apps they rely on to run their businesses more efficiently and effectively,” says Rocco Davanzo, Landstar Transportation Logistics executive vice president of capacity development. Designed as a mobile portal to house all of Landstar’s exclusive mobile applications, LandstarOne gives business capacity owners instant access to LCAPP® Fuel Savings; Landstar’s Available Loads & Landstar Maximizer® apps; and important Landstar news and information. Peoples Services, Inc., announced the appointment of CEO Doug Sibila to Northeast Ohio’s 2019 Smart 50 list. The Smart 50 Awards recognize the top executives in the region for their ability to effectively build and lead successful organizations. The company was named to Transport


Ryder System announced the appointment of Scott T. Parker as executive vice president (EVP) and chief financial officer responsible for Ryder’s financial management functions including finance and audit, treasury, tax, accounting, corporate strategy, and investor relations. Mr. Parker succeeds Art A. Garcia who announced his retirement in September 2018. As EVP and CFO, Mr. Parker will also serve as a member of Ryder’s Executive Leadership Team and report to Chairman and Chief Executive Officer Robert E. Sanchez. Ryder Fleet Management Solutions, a unit of Ryder System, appointed Rich Mohr (FTA Board Member) as chief technology officer. Most recently, Mohr led Ryder Truck Rental as global product manager. Mohr will be responsible for leading the development and execution of Ryder’s new products, electric and autonomous vehicle initiatives, connected-fleet strategy, predictive data and analytics for maintenance, as well as COOP By Ryder.

Topics’ Top 50 Sector Lists again in 2019, ranking number 21 in Top Refrigerated and 26 in Top Dry Warehousing Firms. Paccar, parent company of Peterbilt and Kenworth, has named Preston Feight as its new Chief Executive Officer. Feight replaces Ron Armstrong, who retired on June 30 and has served as Paccar CEO since April 2014. Feight was also elected as a member of the Board of Directors. Mark Pigott will remain as executive chairman and will continue to provide strategic counsel to the company. Four Star Freightliner has teamed up with the Gadsden Technical Institute (GTI) in Gadsden County to launch a diesel technician training

program that will commence in August, 2019. The program will be housed inside Four Star Freightliner’s Gadsden County facility in Midway. GTI will offer workforce training in Diesel Systems Technician 2: Medium and Heavy Duty Truck and Bus Technician. This program offers a sequence of courses that provides technical skill proficiency and includes competency-based applied learning. For the fourth consecutive year, Four Star Leasing, the rental and leasing arm of Four Star Freightliner, has received the NationaLease Exceptional Service Award. The announcement was made at the NationaLease Maintenance Mangers meeting held in Chicago.

In January, Ryder System officially announced the expansion of COOP by Ryder, a first-of-its-kind truck sharing platform for commercial vehicles, into South Florida after a successful March 2018 launch in Atlanta. COOP allows fleet owners to safely generate revenue by sharing idle trucks and trailers while providing a new source of rental vehicles from a trusted network of peers. Ryder recently announced a multi-year investment in Goodwill South Florida as part of a collaboration with the non-profit. The newly named Ryder Apparel Manufacturing Division at Goodwill’s 250,000-square-foot Miami headquarters employs more than 1,100 people with disabilities and other entry barriers to employment to create approximately 6,000 U.S. Army, Navy, and Air Force uniforms, daily. Infinit-I Workforce Solutions announces a new administrative

FLORIDA TRUCK NEWS

SUMMER 2019 | 29


MOVES AND NEWS

UPS honoring Steve Chesser

UPS honoring Chris Barker

Dillon Logistics wins 2019 ACT award

interface providing transportation safety directors an easier-to-use cloud-based system navigation, increasing productivity and efficiency. The latest update benefits drivers with a simple and intuitive experience allowing them to easily access training while they are away from the terminal. Infinit-I Workforce Solutions, an assignment-based workforce training, and communications SAAS system has released a significant upgrade that features a reimagined user interface that improves scheduling and training communication delivery. The focus on improved usability increases accessibility and productivity over other transportation SAAS platforms. Improvements to the primary navigation and simplified access to frequently used functions, enhance the user’s awareness of the system’s advanced functionality, as well as delivering quick access to specific content. Jim Parham was a Quest Panelist on the topic of Mergers and Acquisitions at the Annual Trucking Profitability Conference at the University of Georgia Terry College of Business on April 28th. 30 | SUMMER 2019

PrePass MOTION™ bypass app.

The State of Florida recognized Publix Super Markets for excellence in maintaining quality standards in Commercial Driver Licenses Skills Testing. UPS honored Chris Barker and Steve Chesser for 40 years of accident-free driving. PrePass Safety Alliance has rolled out exclusive enhancements to its PrePass MOTION™ bypass app. The addition of PrePass ALERTS™ gives truck drivers roadway safety

FLORIDA TRUCK NEWS

notifications and is an added no-cost benefit for PrePass customers. Dillon Logistics was named the 2019 Leading Carrier at the Advanced Clean Transportation (ACT) conference and trade show. They were chosen from among more than 60 public and private fleets that were nominated for their commitment to using a range of clean fuels.


MOVES AND NEWS

Join 3,000 of truckingâ&#x20AC;&#x2122;s top decision-makers to: Get the Latest Pulse in Trucking Influence Regulatory Policy and Legislative Issues Discover New Innovations in the Exhibit Hall

Network and Exchange Ideas Celebrate Industry Victories and Enjoy Entertainment by Jason Bonham Led Zeppelin Evening at the Annual Reception & Banquet

For more information and to register, visit:

http://mce.trucking.org FLORIDA TRUCK NEWS

Premier sponsor of MCE 2019

SUMMER 2019 | 31


Q + A with Morris Valenzuela Summer marks a lot of changes at FTA: a new Board Chair and new faces serving on the Board and Councils. The Technology and Maintenance Council Chairmanship is a two-year post. This summer, Joey Young turned the reins over to Morris Valenzuela from Thermo King. Job Title: Thermo King Corporation District Service Manager, Southeast.

What is something most people don’t know about you? I’m an automotive enthusiast.

How did you get into the trucking industry?

What’s the best/worst piece of advice you’ve ever received?

I got into trucking through the automotive industry.

The best advice I’ve gotten is to listen 80 percent of the time and only talk 20 percent.

What is the most challenging thing about your business? How to effectively communicate technical information to a nontechnical audience.

32 | SUMMER 2019

The worst advice I’ve gotten is to not get involved. Favorite pizza toppings? ALL OF THEM!! LOL! I love to eat.

FLORIDA TRUCK NEWS

If you could time travel, when would it be? To the future. Best childhood memory? Spending time with all my family and friends. What is your pet peeve? Organization.


Values Drive Performance Shared Values Can Lead to Organizational Excellence

800.228.8602

gwccnet.com

We understand you are in business to make a profit. Our Value-Driven® Company modules can help you reduce losses and increase profits by focusing on influencing employee behavior, changing culture, improving communication, and managing risk successfully. We believe it is everyone’s job to do what they can to prevent losses. We have developed a variety of training tools to help get all employees involved in safety. From seminars and webinars to Self-Service e-Tools and FAQs, we have solutions to fit your operations. We see “Critical Crashes” as a risk to your company. Our Value-Driven® Driving program focuses on helping drivers do what they can to prevent these types of accidents: rear-end, loss of control, lane change, and run under. All of our driver training programs are FREE to our insureds and can be accessed 24/7 on Great West’s Online Learning Library. GREAT WEST CASUALTY COMPANY – No matter where the road takes you, you will discover that at Great West, The Difference is Service®.


IT KEEPS YOUR TRUCKS AND BUSINESS MOVING FORWARD. Visit us at one of our 16 locations or online to find the parts you need at prices youâ&#x20AC;&#x2122;ll love.

PURCHASE A PALLET OF PREMIUM PLUS 15W40 ENGINE OIL AND GET AN ADDITIONAL $50 OFF. L i m i t e d t i m e o n l y.

N E X T R A N U SA .C O M

Profile for Florida Trucking Association

Florida Truck News - Summer 2019  

Florida Truck News - Summer 2019  

Advertisement