MOTORTRUCK MARCH/APRIL 2011

Motortruck

Fleet Executive C A N A D A ’ S

B U S I N E S S

MARCH/APRIL 2011

M A G A Z I N E

F O R

F L E E T

O W N E R S

Big change,

bigger brakes

Manufacturers prepared for shorter stopping distances, but other changes are coming

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contents March/April 2011

Volume 80, No. 2

COVER STORY

Big change, bigger brakes ������������� 28 New North American trucks will soon be required to stop more quickly than ever before, and while manufacturers seem ready to meet the revised rules with the help of larger brake components, even more changes are in store.

Page 28

FEATURES

20

PROFITABILITY

Carriers and shippers share concerns about capacity and pricing at State of Freight 2011.

21

LEGAL CORNER

The phrase “hit a truck, get a cheque” has become all too common, with plaintiffs’ attorneys viewing the trucking industry as a profit centre. We offer some legal advice on what you can do about it.

24

FIGHTING THE POWER

The use of electric pedestals to power various in-cab gadgets has the potential to greatly reduce the need for engine idling – but truck stops are reluctant to build the infrastructure until they identify a demand. Will a new program prompt drivers to plug and stay?

26

HYBRID HYPE

Hino’s new Classes 4 and 5 hybrid cabovers made a big splash at Work Truck Show – and are ready to hit the North American market.

30

POWER TO THE PINS

Trailer power demands are on the rise, but is your wiring ready to carry the load?

31

BEYOND THE REGS

An inside look at the tire wear and positioning considerations for U-Haul’s truck fleet.

DEPARTMENTS THE VIEW WITH LOU. . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Quebec’s e-log fiasco is just the latest example of provincial pettiness getting in way of national transportation strategy.

COMPETITION WATCH . . . . . . . . . . . . . . . . . . . . . . . . . 9 Bison Transport, Brian Kurtz Trucking win grand prizes at Truckload Carriers Association’s highly coveted National Fleet Safety Awards; Manitoulin Transport expands western presence by acquiring Exalta Transport; Transforce completes acquisition of same-day delivery and logistics provider Dynamex; and more.

MY HR SPACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Body language is an important part of every conversation, but it only tells part of the story. It’s time to talk – and listen – to the hand.

TAKING CARE OF BUSINESS . . . . . . . . . . . . . . . . . . . 12 No one likes to be rejected. However, the most successful people in business are the ones who know how to deal with it.

EQUIPMENT WATCH. . . . . . . . . . . . . . . . . . . . . . . . . . 14 New Fuso Canter triples service intervals (and looks sharp too!); Navistar expands NG offerings, introduces 4x4 TerraStar; Western Star taps new market with vocational ‘bad-ass’; Cat unveils much anticipated vocational truck; and more.

DASHBOARD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Nulogx’s Canadian General Freight Index shows continued softening rates in December, while TransCore’s Canadian Freight Index records a 30% rise in spot market freight volume in January. Plus: US truck tonnage starts off 2011 on a high note.

INSIDE THE NUMBERS. . . . . . . . . . . . . . . . . . . . . . . . 38 How much did spot market load volumes increase in January?

Plus: a look at how the business of transportation is becoming increasingly complex.

MARCH/APRIL 2011

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what’s on trucknews.com?

Blogs • Many motorists – truckers included – have gotten a bit lazy since the ban on handheld devices while driving was installed in Ontario more than a year ago, says managing editor Adam Ledlow. Is it time for enforcement to arrange a blitz?

• IT expert Gagan Goraya outlines considerations for fleets looking to implement the right mobile technology for their business.

• The trucking industry would benefit by accepting coming changes to Hours-of-Service and electronic on-board recorders rather than dwelling in the past, says ATBS Canada CEO Ray Haight.

• Small Scarborough, Ont.-based carrier L. Ritchie Cartage outlines its surprisingly sophisticated method of spec’ing equipment – including a big focus on ergonomics and driver comfort – in contributing editor James Menzies’ latest blog.

Web TV: Transportation Matters • COOKING WITH GAS: Taking a spin in Freightliner’s CNG-powered Business Class M2 112.

• BADASS: A badass new Western Star and other new trucks from the Work Truck Show.

• COOL SOLUTION: Erb Group has built a snow removal system to keep trailer roofs free of snow and ice.

• READY FOR THE FUTURE?: How we can take transportation to the next level and what role technology can play in this.

You Said It . . .

“When I was running Canada-US, I carried a pistol with me in the US, left it at a friend’s at the border before coming north, and picked it up on my way south. I live in Canada, but have dual US/Canadian citizenship and have lived in the US for many years... also a US Army veteran. I would not drive interstate without a firearm. Not only is it protection, but also a deterrent. I have spoken with shady people in the past, and have been told that the reason there are not more attacks on truckers and trucks is because of the belief that most drivers are armed. While certain states are more restrictive than others, I have had law enforcement officers recommend I carry even in those states. A lock box in the sleeper or in the side compartment meets carry requirements in, I daresay, all states. Out of reach is, I believe, one standard. When you are in your sleeper and bedded down for a period, it is your home, and as such you may have a weapon there for protection. Would rather be judged by twelve than carried by six.”

– Art responding to Harry Rudolfs’ blog:

Truckers packing heat 4

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Motortruck

Fleet Executive

The View with Lou Quebec’s e-log fiasco just latest example of provincial pettiness getting in way of national transportation strategy

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very successful trading society throughout history – from the Persian and Roman empires of ancient times to the European Union and United States of today – has understood the importance of an effective, harmonized, transportation system.

I wonder when Canada will learn that lesson?

From the ridiculously long time it took to get anywhere close to harmonized weights and measures and the mess we have endured at our Lou Smyrlis, busiest border crossing for decades, MCILT it would seem that narrow-minded Editor lou@transportationmedia.ca and shortsighted provincial thinking too often places the greater good in jeopardy. What has been happening in Quebec over electronic on-board recorders is just the latest example.

Forward-thinking motor carriers have begun investing in electronic on-board recorders to improve their Hours-of-Service compliance and respond much more quickly to discrepancies and violations than is possible through the outdated paper log method.

These carriers should be commended for their initiative – and also for having the patience and determination to deal with all the driver fears surrounding e-logs. I have had candid conversations with several early adopters of e-logs so far and they all say the same: they are a much more efficient way to deal with Hours-of-Service than the paper logs currently being used by the majority in our industry. And they are much less likely to be falsified.

Yet, for some reason beyond understanding, enforcement officers in Quebec recently took to fining carriers for failing to provide paper logs during roadside inspections. And they weren’t holding back on the fines either. For example, Total Logistics Group received a fine of $956 for failing to provide paper logbooks. The company reported that one of its drivers was pulled in for inspection by an enforcement officer who was not familiar with e-logs. The driver first offered to provide a paper copy of the records by faxing the documents to the inspector’s office, however, after some consideration, the officer reportedly said a fax wouldn’t suffice. The driver, who had a paper logbook with him, then offered to update it to match what was displayed by the EOBR. But the officer told him he had to update his logbook before

leaving the terminal, according to Total Logistics, adding that the officer said he’d never seen an e-log before and it was not accepted in Quebec.

The Canadian Council of Motor Transport Administrators (CCMTA) EOBR working group laboured for some time to come up with an EOBR protocol for enforcement agencies across the country.

This way, how inspectors from various regions accepted, viewed and interpreted electronic logs would be harmonized. That’s what countries that are serious about having a national transportation system do.

They ensure that carriers and the supply chains they serve are not handicapped by conflicting regulations and practices as they cross each provincial boundary.

The CCMTA’s policy recommends that inspection officers first try to interpret the logs via the device’s display screen, which is usually attached by cord to the dash so it can be handed out the window to an officer. Failing that, the CCMTA’s policy suggests inspection officers allow the driver to fax the records to the scale house, where they can be viewed in printed form.

Sounds pretty reasonable, but I guess it wasn’t good enough for some of the enforcement folks in Quebec. We even heard of one instance where the driver informed the enforcement officer that e-logs are legal in Canada, only to be told, “You’re not in Canada, you’re in Quebec.”

Since our contributing editor James Menzies brought this issue to the industry’s attention on trucknews.com and with a front-page story in our sister publication, Truck News, a meeting involving several stakeholders has been held. By the end of the threehour meeting, SAAQ policy makers promised to remind their front-line enforcement officers that e-logs are to be accepted in the province, provided they meet all the regulatory requirements.

Now the whole fiasco is being chalked up to a simple lack of communication between policy makers and enforcement officials and confusion over whether the enforcement folks should be accepting CCTMA policy.

Isn’t it funny though how enforcement officials are always quick to point out that ignorance of the law is no excuse? Perhaps Quebec’s enforcement officials should follow their own advice and understand the law before enforcing it. It would be one small step towards removing the small-minded actions that routinely interfere with Canada having a truly national and harmonized transportation system. mt

is written and published for owners, managers and maintenance supervisors of those companies that operate, sell and service trucks, truck trailers and transit buses.

MARCH/APRIL 2011

VOL. 80

NO. 2

Editorial Director Lou Smyrlis (416) 510-6881 lou@TransportationMedia.ca Managing Editor Adam Ledlow (416) 510-6890 adam@TransportationMedia.ca Features Editor Julia Kuzeljevich (416) 510-6880 julia@TransportationMedia.ca Creative Director Mary Peligra mpeligra@bizinfogroup.ca Advertising Creative Directors Carolyn Brimer Beverley Richards Contributing Editors Ken Mark James Menzies Ian Putzger John G. Smith Carroll McCormick Harry Rudolfs Publisher Rob Wilkins (416) 510-5123 National Sales Manager Don Besler (416) 699-6966 Account Manager Brenda Grant (416) 494-3333 Production Manager Kim Collins (416) 510-6779 Circulation Manager Mary Garufi Video Production Manager Brad Ling Research Manager Laura Moffatt Vice President Publishing Alex Papanou President Bruce Creighton Head Office 12 Concorde Place, Suite 800 Toronto, Ont. M3C 4J2

Motortruck Fleet Executive is published by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd., a leading Canadian information company with interests in daily and community newspapers and businessto-business information services.

The contents of this publication may not be reproduced or transmitted in any form, either in part or full, including photocopying and recording, without the written consent of the copyright owner. Nor may any part of this publication be stored in a retrieval system of any nature without prior written consent. Motortruck Fleet Executive is indexed by Micromedia Limited.

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Page 19

in a location and needs to get from, say, 123 Main, Connecticut to In late 2006 or early 2007 PSDC will introduce street routing 456 Renè Lèvesque, Montreal, the dispatcher simply keys in the with the release of ProMiles XF V.13.“We have always had truck two addresses.The system returns the narrative driving directions, routing at higher levels and routing to major streets in Canada and miles between the two points, estimated driving time and the digthe US. But when you get down to side streets, turn by turn, this ital map,” Ashburn explains. “The goal is to provide, not only the is something we haven’t done yet,” Bowie says.“Currently you can estimated miles and driving times from A-B,a common use for paylook up a street address, but when you get to the corner of Yonge ing a driver or setting a rate, but also to deliver safe, accurate, easyand Lawrence, say, V.12 does not give you routing directions to to-follow commercial routing instructions.”

Wanless, two blocks away but the street is visible in our map.”

Information of interest to commercial drivers is included; e.g., A truck’s current location will be displayed on the map as an avoiding dangerous intersections, low-traffic roads and low weighticon: as the truck moves along, the icon will move along too; the out of any of its future plans. It cannot limit Gateway initiative must navigate the Lachine map Rapids to transport limit bridges. EastStreet tends to avoid oddly-named streets, favour refresh rate is user-selected. access to this resourceproject or use several of this corconsider People people and materials PortV.12, of Montreal left turns andMohawk provide routes that are easy to follow.

It also has data to the Like V.13 will beour able to simultaneously intend to continue to material use the river from the rapids.

In 1899, Queen forridor. for 53-foot trailers, height and weight restrictions andabove more than routes; e.g., optimised truckWe size, number of stops, 16,000 toll roads. full-color maps clearly show landmarks like 40 being the shortest will also the our coursesroute. on ourV.13 homeland andanswer to increase Victoria requested of ourhauled men toand travel To whom it mayItsconcern, schools, hospitals, railroadsthat and the bodies of water.to Egypt to navigate through obligatory routing keepgo truckers of no trouactivities that as years by. Weout will longer thetruck rapids of questions I am greatly concerned OntarioIn November 2005 the ProMiles Software want to get the truck restrictions, time-of-day restrictions, watch the world pass through our watertheDevelopment Nile River to bringble.“We troops to Khartoum.

Quebec Continental Gateway and Trade Corporation (PSDC) released ProMiles XF V.12Today, of its heavytruck through cities, oneand waynot streets, nous right turn, no left ways benefit in any way. we still use theroutes St. Lawrence Corridor initiative has not taken into account truck mileage and routing software which, among other updated turn, etc.,” Bowie says.

This initiative must take our rights into the historic and present use of the corridor River to travel and trade between our comfeatures, included updates to zip and postal codes, the road dataAlthough ProMiles XF V.12 cannot currently be used on a munities and to the non-Native communi- account in any of its future endeavours and by the First Peoples on this continent. base, road restrictions, HAZMAT restrictions, toll road fees, and palm pilot, users can e-mail trips; e.g., pictures of a map, text, state begin computers, constructive dialoguepalm with, at least, ties as as Maddocks, well. This activity has neverbreakout, stopped to other European contact, Iroquoian theBefore interface to ProMiles dispatch partners such or province including pilots. the Mohawk People, who are a key element over centuries and we will continue to do so.

Peoples plied the St. Lawrence and the lower Tailwind, FreightLogix, and Axon.V.12 and the Owner/Operator The company’s first venture into street routing will inin the Lawrence Lawrence Basin our homeland Great as theirrouting major and transportation versionLakes TruckMiles mapping programThe alsoSt.boasted cludeismajor Canadian and USSt. cities; PSDCcorridor. will add more in I am willing to suggest ways and MT means up builds. ownership to route.

After European contact, we played a and we have never given GPS-compatibility. future @ARTICLECATEGORY:865; anythe other great role in the fur trade,and sending goods west Although ProMiles TruckMiles reside on userssovereign. com- We have fundamental to begin this dialogue. @COMPANYINARTICLE:024637996; 024644511; 024664030; puter; i.e.,furs the back databases are frozen between an which we will continue rights tothere theseis areas and bring east. We used the tribu- updates, Carroll McCormick is an awardexception for north fuel pricing, explains ProMiles president In peace andwho friendship, to exercise. taries to trade and south as well, trad- Canada winning writer has been covering MarkforBowie.

“When you Orange, build a route the fuel transportation industry issues and Kenneth Deer Theall Ontario-Quebec Continental ing, instance, in Fort whichweis consider prices at N.Y., stops along technologies Mohawk for more than a decade.

Gatewayand andstartTrade Corridor initiative canAlbany, today.that route, your MPG, fuel capacity ing fuel level in your tanks, and suggest the best places to buy fuel.

He is based in Quebec.

Deer Communications Our rivermen were in great demand to not leave the rights of the Indigenous Peoples Daily price updates via the Internet keep fuel prices current.”

MailBag

The Shippers’ Magazine www.ctl.ca Distributed to over 18,000 Shippers across Canada.

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SEPTEMBER/OCTOBER 2006

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CompetitionWatch

Two Canadian carriers have claimed the top grand prizes at the Truckload Carriers Association’s highly coveted National Fleet Safety Awards. BRIAN KURTZ TRUCKING of Breslau, Ont. won the award for truckload companies in the small carrier division (total annual mileage of less than 25 million miles), while BISON TRANSPORT of Winnipeg, Man. won in the category for truckload companies in the large carrier division (total annual mileage of 25 million or more miles). TCA presented the awards to Brian Kurtz, president of Brian Kurtz Trucking, and Rob Penner, vice-president of operations for Bison Transport, at the association’s Annual Awards Banquet held March 15 at the San Diego Convention Center. This year marked the fourth time Bison Transport has won the grand prize at the awards ceremony. The fleets earned top honours in their respective categories while competing against Canadian and American trucking firms. Also receiving recognition were MACKINNON TRANSPORT of Guelph, Ont., which topped its division for carriers with total annual mileage of 15-24.99 million miles, and GROUPE ROBERT of Boucherville, Que. which came in second place in the 50-99.99 million miles division.

MANITOULIN TRANSPORT has expanded its western presence by acquiring Exalta Transport. Based in Medicine Hat, Alta., Exalta is a regional carrier serving western Canada, operating 300 pieces of company-owned equipment out of seven terminals. Exalta provides scheduled general freight service between Regina and Saskatoon and among terminals in Brooks, Calgary, Edmonton, Lethbridge and Medicine Hat, Alta. It also offers a through service between points in Alberta and Saskatchewan and a truckload division serving points in B.C., Alberta, Saskatchewan and Manitoba. Manitoulin officials said the transition will be seamless to Exalta Transport customers. John Finn, former owner of Exalta, will stay on as a consultant to ensure a smooth handover, the company announced. All Exalta employees will be retained by Manitoulin, the company said.

TRANSFORCE has completed its acquisition of same-day delivery and logistics provider Dynamex. The deal, for US$248 million, was approved by shareholders Feb. 18. Dynamex brings 1,500 workers and 3,700 independent contractors as well as a network of more than 60 business centres across the US and Canada into the TransForce fold.

ARMOUR TRANSPORTATION has acquired Hillman’s Transfer, a 40-truck fleet that hauls general freight and perishables out of Sydney. The family business was founded in the early 1900s by E.J. Hillman and is operated today by Eddie Hillman.

The fleet is comprised of 40 tractors and 70 trailers, offering temperature-controlled, refrigerated trucking for perishable goods as well as air-ride trailers for general freight. However, Armour said the company’s niche is its ability to haul perishables such as fish, meat and fruit long-distance. More than 60 people are employed by the company, which will continue to operate out of its existing location in Sydney.

INTERNATIONAL TRUCKLOAD SERVICES has has acquired Cornwall-based CSI Logistics. CSI provides truckload and LTL service between Ontario, Quebec and the Maritimes as well as warehousing and distribution services. It operates more than 70 power units as well as a fleet of dry van, heated and temperature-controlled tandem and tridem trailers. CSI also has facilities in Mississauga, Caledon and Montreal.

WALMART CANADA awarded its top carriers recently during the company’s second annual carrier awards dinner. Carrier of the Year was INTERSTATE FREIGHT SYSTEMS (IFS) out of Brampton, Ont., which also took top honours as Inbound Carrier of the Year. Store Delivery Carrier of the Year was ERB TRANSPORT. H&R TRANSPORT won the Strive for Excellence Award and BISON TRANSPORT took Innovative Carrier of the Year honours.

For daily COMPETITION WATCH news go to www.trucknews.com or subscribe to our bi-weekly e-newsletter.

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march/april 2011

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the human edge

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Talk (and listen) to the hand Body language is an important part of every conversation, but it only tells part of the story

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xperienced poker players know how important it is to identify an opponent’s “tells.” These physical habits, unique to every person who displays them, can be triggered whenever someone is excited or worried. None will last for long, and they do not reveal much information if they happen once or twice, but a subtle twitch, scratch or look in the eyes will become important when repeated over the course of a game.

Secrets about the cards are revealed along the way.

It is just one way that body language can communicate an idea.

“We all display non-verbal cues,” says Suzette Lewis, a professional conflict mediator. “These are the things that humanize us.” But even though these cues can hold hidden meanings, they are merely part of a story, much like the punctuation in a sentence.

The urban myth that the majority of a conversation is conveyed through body language is largely linked to research by Albert Mehrabian. Exposing test subjects to a woman saying “maybe” in three tones of voice and pictures of facial expression to convey liking, neutrality and disliking, he established a formula to suggest that “Total Liking” was 7% verbal, 38% vocal and 55% facial. Over time, people began to generalize the information to suggest that all communication was 7% spoken word, 38% tone of voice, and 55% body language.

Of course if that was true, a written e-mail would rarely convey a thought. Phone calls would be relatively useless. Language differences would be meaningless.

“This and other equations regarding relative importance of verbal and nonverbal messages were derived from experiments dealing with communications of feelings and attitudes,” Mehrabian actually stressed. “Unless a communicator is talking about their feelings or attitudes, these equations are not applicable.”

But people can use general ideas about the importance of body language when trying to determine the true feelings behind spoken words. “It is a package,” Lewis explains. “You have to be aware [that] communication is not the same for everyone.”

Traditional thoughts about body language can actually lead to some wrong ideas if interpreted in isolation. Consider a fleet manager who is in the middle of explaining a new policy when an employee leans back in a chair and crosses their arms. It can be a sign of a virtual wall, especially if the person begins to physically shrink away, grit their teeth and suddenly become silent. If they continue to smile and talk, however, the crossed arms may simply be a sign

To find a HR Essentials workshop in your region contact:

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of a cold room.

It is not the only way that body language can be misinterpreted.

A yawn can be a sign that someone is bored, but it can also mean they are tired. Someone who pulls away from an outgoing salesperson may simply be an introvert who is trying to maintain a sense of personal space.

Some of the misunderstandings can even relate to cultural differences. Many people consider direct eye contact as a sign that someone is respectful and listening carefully. “Yet there are cultures where it is not suitable for a woman to look at her husband or to look at another man,” Lewis says, referring to Muslim and selected Asian cultures as an example.

There is another group that tends to be very good at making direct eye contact: pathological liars.

Still, these physical signs are an important part of any conversation. “People use body expressions when it is mentally challenging to get through a conversation,” Lewis explains. “There is a physiological response to consider. If you are speaking with your boss and there is a performance issue on the line, your heart will race a little, your breath will become shorter. Our anatomy has to express that feeling in some way.”

So what do you do when confronted with potential signals like these? “The best thing to do is simply to ask the person, ‘Are you okay? You seem a little bit uneasy.’ Then you start getting a truer picture of what is going on,” Lewis says.

Managers, salespeople, or any other fleet employee can also consider how body language might be perceived when attempting to stress a point. The simple act of leaning forward across a table, for example, can help to stress that you are engaged. “It will say, ‘I am present, I am concerned about this issue,’” she adds. “People cannot hear what you are saying until they see what you are saying.”

The physical signs will simply need to be matched with the right words and a related tone. It is part of the language in any conversation. mt Funded by the Government of Canada’s Sector Council Program, the Canadian Trucking HR Council (CTHRC) is an incorporated not-for-profit organization that helps attract, train and retain workers for Canada’s trucking industry. For more information, visit www.cthrc.com.

AMTA www.amta.ca

PEI Trucking Sector Council www.peitsc.ca

Ontario Trucking Association www.ontruck.org

Trucking Human Resources Sector Council, Atlantic info@thrsc.com

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inside the numbers

Top 10 Previous Occupation of Truck Drivers by Top 5 Industries National Occupational Classification

Specialized Freight

Forestry & Construction Manufacturing Logging

Other Services

Total All Industries

Heavy Equipment Operators (except crane)

19.1%

29.7%

29.8%

13.9%

8.1%

17.2%

Construction Trades Helpers & Labourers

9.0%

4.8%

24.9%

12.5%

9.5%

13.2%

Delivery & Courier Service Drivers

12.3%

0.7%

3.3%

7.5%

5.4%

7.0%

Public Works Maintenance Equipment Operators

7.0%

2.2%

6.0%

2.7%

2.3%

4.6%

Material Handlers

6.8%

1.6%

2.0%

5.9%

2.9%

3.8%

Bus Drivers, Subway Operators and Other Transit Operators

2.8%

0.3%

1.1%

0.9%

4.4%

3.0%

Taxi & Limousine Drivers & Chauffeurs

6.1%

1.6%

2.2%

2.1%

1.4%

2.5%

General Farm Workers

0.7%

0.7%

0.2%

0.5%

0.8%

2.0%

Railway & Motor Transport Labourers

7.4%

1.2%

1.3%

1.2%

1.0%

1.8%

Logging Machinery Operators

2.4%

15.6%

0.6%

1.1%

0.5%

1.6%

TOTAL – All Occupations

5.7%

5.4%

23.3%

15.6%

13.6%

100.0%

Percent of firms reporting Class 1/A Driver Shortage During Previous Economic Growth Cycle by Fleet Size

Percent of firms reporting Unseated Trucks During Previous Economic Growth Cycle by Fleet Size

< 10 Trucks

42.9%

< 10 Trucks

89.9%

10 - 49 Trucks

49.3%

10 - 49 Trucks

83.6%

50 - 99 Trucks

61.8%

50 - 99 Trucks

81.0%

100 + Trucks

58.5%

100 + Trucks

78.3%

PREPARNG FOR THE NEXT DRIVER SHORTAGE:

Many industry executives anticipate that as the economy starts to strengthen, the trucking industry is about to face the worst driver shortage it has ever encountered. Since driving a truck is not a profession that attracts many young people, drawing talent from other industry sectors becomes a critical strategy.

Research conducted on behalf of the Canadian Trucking Human Resources Council during the last economic upsurge shows that in general, truck drivers had been previously employed in occupations where they operated or were exposed to heavy equipment/machinery or had driven professionally in other industries, such as taxi, delivery and courier services. As shown above, the most common applications previously held by truck drivers in Canada include heavy equipment operators, construction trades helpers and labourers and delivery and courier service drivers. However, as these industries experience their own labour shortfalls over the next decade, they are likely to beef up their efforts to retain their employees, making it even more difficult for trucking companies to fill driver jobs.

Further research conducted on behalf of the CTHRC shows the impact the driver shortage had on motor carriers of various sizes during the previous economic expansion. Fleets with more than 50 trucks were the most likely to report a driver shortage for their operations with about six in 10 doing so. But it was the smaller fleets which paid the heaviest price for this. A shocking nine in 10 small fleets (fewer than 10 vehicles) reported that the driver shortage resulted in unseated trucks.

Saskatchewan Trucking Association www.sasktrucking.com

British Columbia Trucking Association www.bctrucking.com

Manitoba Trucking Association www.trucking.mb.ca

Camo-route www.camo-route.com

Or Contact the Canadian Trucking Human Resources Council, info@cthrc.com or 613 244 4800 MARCH/APRIL 2011

11

Taking Care of Business

How to deal with rejection: a transportation sales professional’s biggest challenge

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ne of the biggest hurdles to successful selling is the fear of rejection. So why are so many transportation sales professionals, charged with deal origination or sales, afraid or unable to deal with rejection?

No one likes to be rejected. However, the most successful people in business are the ones who know how to deal with it.

They intuitively understand that when you are calling on companies or individuals to solicit new business, not everyone is going to want to see you or do business with you.

Rejection is part of the process. The key to moving forward is all about how you deal with being turned down.

Rejection hits hardest when you are taken by surprise. For example, a flat-out remark such as “I’m not interested” can throw anyone for a loop. But what would happen if you were not taken by surprise?

My experience shows that when you anticipate you may not score 100% of the time, you won’t be surprised by the fact that someone, somewhere at some time will turn you down. On the contrary, anticipating objections allows you to prepare effective responses to deal with them. After all, a “no” is often nothing more than a slow yes.

Having effective responses will increase the 12

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likelihood of changing the prospect’s mind.

Just the fact that you were prepared puts you in control of the situation and control is essential. Combining a lack of control with a fear of rejection is like throwing lighter fluid on a flaming barbecue.

Some people have questions or objections, which may add to this fear. However, an objection or question is a normal part of the buying process. How often have you yourself asked questions in order to make an intelligent buying decision? Questions are a sign of interest, and should be embraced as an opportunity to promote your product and service knowledge. Objections give you valuable insights, too. An objection such as “it’s too much money” often means that you have not made the value of what you are offering clear. Anything is expensive when there is little perceived value.

If you are clear on the value, and still get comments on price, you might be targeting the wrong audience. Finding out why someone is not interested allows you to respond to their real concern.

An effective response to a question or objection also escalates the trust factor, and the faster you earn someone’s trust, the shorter your sales cycle. In your own experience, the last time a salesperson didn’t

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Ca M Mark Borkowski is president of Mercantile Mergers & Acquisitions Corporation. Mercantile specializes in the sale of mid-market companies.

Mark can be contacted at www.mercantilemergers­acquisitions.com.

have an answer to one of your questions, weren’t you likely to take a pass? But when someone gave you a terrific answer, and delivered it passionately, weren’t you more likely to make that purchase, or at the very least take less time to make that decision?

It may sound simple, but who said sales has to be complicated? Perception is everything. Even in a worse-case scenario, where your objection or question handling does not result in a sale, perception is the key.

You can look at the situation as a failure, or as a learning experience. If you apply what you learned before your next sales call, you will have instantly reduced the likelihood of being turned down a second time. mt

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May 9, 10, 11, 2011 Hilton Suites Toronto/Markham

Seminar HigHligHtS

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Visit www.cfmsonline.com or call 877-454-4076

terrY eVanSHen The Man Who Lost Himself

Welcome Reception Monday, May 9

He was one of the greats. Member of the Canadian Football Hall of Fame, twice voted outstanding Canadian in the CFL, Grey Cup champion, and then, on July 4, 1988, in a single second Terry Evanshen nearly lost it all. Terry will inspire you to look at your own life in a way you have never done before. He shows you the never-ending power of the human mind to overcome obstacles. He shows you the incredible perseverance of the human spirit.

Hosted by Mack Trucks Canada

Trade Show/Outside Display Tuesday Speaker - Allison Graham Manufacturer Information Suites

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Hosted by Volvo Trucks Canada

Seminar Banquet Wednesday, May 11 Wednesday Speaker - Terry Evanshen Sponsored by Truck News /Motor Truck

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2011 SPONSORS

EquipmentWatch New Fuso Canter triples service intervals and looks sharp too Mitsubishi Fuso has brought its popular Canter cabover to North America, where it will serve the Classes 3-5 markets.

The truck, shown for the first time at the Work Truck Show, features Fuso’s Duonic six-speed automatic transmission, Daimler’s BlueTec SCR emissions aftertreatment system, a 4P10 turbo diesel engine and payload that’s as much as 2,200 lbs greater than competitive models, Fuso officials announced at the launch.

Perhaps most impressively, the Canter extends service intervals from 6,000 miles to a whopping 18,000.

Five models of Mitsubishi Fuso Canters will be offered, addressing applications ranging from dry freight, refrigerated delivery, landscape, snowplow and municipal roadwork.

A seven-passenger crew cab is among the offerings, as is a FG4X4 model, which Fuso says is the only four-wheel-drive medium-duty cabover in the industry.

“This is the most extensive redesign we’ve undertaken in seven years,” said Todd Bloom, president and CEO of Mitsubishi Fuso Truck of America. “We had to develop new drivetrains to meet EPA2010 regulations, of course. But we asked our designers and engineers to go beyond that, and to put everything they’ve learned about powertrain technology and efficiency into the new Canter FE/FG series of commercial trucks.

The resulting trucks don’t just represent an incremental improvement over our previous models. The 2012 models represent a new approach to the technology of transporting goods by truck, and they are specifically designed to deliver lower cost of ownership.”

The new Canter is available only with the company’s own 4P10 dual-overheadcam, dual-balance-shaft, turbo, intercooled four-cylinder engine as well as its own Duonic automated transmission.

14

motortruck

“Our goal has been to maximize efficiency and lower the cost of ownership for our trucks as much as practical,” said Leighton Good, manager, product and applications with Mitsubishi Fuso. “With the combination of the 4P10 engine, Duonic transmission and BlueTec emissions control, these new Fusos are the smoothestrunning, easiest-to-drive cabovers we’ve ever offered, and they boast the highest operating efficiency, as well. A 300% increase in the length of the service interval also contributes significantly to lower cost of ownership.”

Bloom said the new Canters will be priced more competitively than ever before. The company also claims to have improved turning radius. A Canter FE model with 110.2-inch wheelbase has a 34.1-ft. turning radius, which is tighter than that of a Mini Cooper.

The new Canters come with a threeyear, unlimited mileage bumper-to-bumper warranty and a five-year, 175,000-mile powertrain warranty.

Navistar expands NG offerings, introduces 4x4 TerraStar Navistar International introduced a 4x4 TerraStar and showcased a full range of alternative fuel vehicles at the Work Truck Show.

The 4x4 TerraStar broadens the applicability of International’s most recent truck offering, first introduced at last year’s Work Truck Show in a 4x2 configuration. Since launching the TerraStar last year, Navistar says it has received more than 2,000 orders for the Class 4/5 truck.

Navistar also highlighted its range of alternative fuel vehicles, including the allelectric Class 2-3c eStar. The eStar has a range of 100 miles per charge and takes six to eight hours to recharge. It can carry payloads of up to two tonnes and produces no tailpipe emissions.

On the heavier side, Navistar offers the

International DuraStar Hybrid, which it says can save fuel to the tune of 60% in utility-type applications.

Navistar also said it would be expanding its line of natural gas-powered trucks and at the show it featured an NG-fuelled International WorkStar. The truck was powered by a DT-466 natural gas engine that can be configured to run off either liquefied or compressed natural gas.

International will soon offer natural gas across its entire product line. Natural gas is already available in International WorkStar and DuraStar trucks powered by the DT engine, Hebe noted, and later in the year MaxxForce 9s and 10s will also be available in NG configurations.

Western Star taps new market with vocational ‘bad-ass’

By James Menzies

Western Star has come out with its first new truck in more than a decade, aimed at six core vocational segments including dump, mixer, crane, roll-off, snow plow, and sewer vac applications.

The new, self-described “bad-ass” model 4700 is aimed at value-minded construction and municipal customers, said Mike Jackson, general manager of Western Star, before unveiling the new truck at the Work Truck Show. Available in either a set-forward or set-back configuration, the 4700 boasts a short 110-inch BBC, which Western Star officials claimed to be the tightest in its class.

Western Star will begin taking orders for the 4700 in the third quarter of 2011 with deliveries beginning in early 2012, Jackson said.

“While we kept our customers’ wallets in mind, make no mistake, this is every bit a Western Star, hand-built with every attention to detail,” Jackson said. “Durable, rugged and stylish and with one of the widest ranges of power ratings in its class.”

The new offering will come with the

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MT Seminar

T r a n s p o r TaT i o n C o m pa n y W o r k s h o p Wednesday, may 25, 2011 - 8:30 am – 3:00 pm

Capitol Centre Banquet hall, mississauga, ontario 6435 Dixie rd., mississauga, on., L5T 1X4

Revitalizing your Transportation Business in an Era of Economic Uncertainty and Technological Change Agenda

The new year is showing signs of economic improvement but the turmoil in the Middle East and Japan threatens to derail the recovery. Driver shortages and tighter capacity make it very important for carriers to be disciplined and focused in the management of their companies. We are currently living in an era of remarkable technological and cultural change. Blogs, tweets, iPads, Kobos, smartphones, Facebook, LinkedIn, webinars, e tenders and reverse auctions are transforming the way we live and work. They are changing the way we communicate with our stakeholders, how we market our services and how we respond to customer needs. Those of us in the Transportation industry are all trying to learn, adapt and take advantage of these new tools to move our businesses to positions of leadership and improved profitability. Join us for an exciting day where we take a “deep dive” into how to successfully navigate your company into this “brave new world.”

Cost: $399.00 includes CD with conference material Early Bird Special Rate: $299.00 (Must book attendance by May 1)

8:30 am – 9:00 am

2011 Economic overview – Carlos Gomes, Senior Economist, Scotiabank

9:00 am – 9:30 am

Creating an integrated Communications strategy in 2011 – Link your Brand, Website and Blog into a coherent and effective Business plan – Lee Palmer, President and Creative Director, Palmer Advertising

9:30 am – 10:00 am Best Fleets to Work For: how to become one of the industry’s most sought after employers – Mark Murrell, President, Carriers Edge 10:00 am – 10:15 am networking Break 10:15 am – 10:45 am improving the profitability of your Transportation Business through successful information management – Benchmarking your Truckload Business to Improve Financial Performance, Ray Haight, CEO, ATBS Canada. Managing your Company’s Business Information to Increase Profits, Brooke Martin, Senior Solutions Consultant, Process Fusion Inc. 10:45 am – 11:15 am shipper roundtable – What do retailers expect from Carriers in 2011? – Robert Wiebe, Senior Vice President, Transportation & Logistics, Loblaw Companies Inc., Heather Felbel, Vice President, Supply Chain, Indigo Books & Music Inc., Ginnie Venslovaitis, Director, Transportation Operations, Hudson’s Bay Company 11:15 am – 11:45 am shipper roundtable – What do manufacturers expect from Carriers in 2011? – Mike Owens, Vice President of Physical Logistics, Nestle Canada Inc., Chris West, Director, US Transportation Operations, McCormick & Company Inc., Todd Kostal, Director, Purchasing/Logistics, Atlantic Packaging Products Inc. 11:45 am – 1:00 pm

Lunch and networking

1:00 pm – 1:30 pm

Carrier roundtable – successful Business Development strategies – Christopher Raynor, Branch Manager, CH Robinson, Michelle Arseneau, President, GX Transportation, Mike McCarron, Managing Partner, MSM Transportation

1:30 pm – 2:00 pm

recruiting Top Talent for your Transportation organization – Pamela Ruebusch, President, TSI Group

2:00 pm – 2:30 pm

achieving success with e tenders and rFp’s – Dan Goodwill, President, Dan Goodwill & Associates

2:30 pm – 3:00 pm

2011 Update on Customs Clearance processes

3:00 pm

networking

Please go to www.trucknews.com to register!

For more information please contact Dan Goodwill at 416-932-9701

MT Seminar 2011.indd 1

Motortruck

Fleet Executive 29/03/11 2:51 PM

EquipmentWatch Detroit Diesel DD13 under the hood, or the Cummins ISC and ISL if a 13-litre is not required.

It has been a good year for Western Star, and the truck maker seems to have rediscovered its swagger. The overall Class 8 truck market’s order intake grew 16% last year while Western Star outpaced the overall market and saw its own order board surge 45%.

“Despite the continuation of one of the worst trucking markets last year, Western Star saw dramatic improvements in volume and order intake,” Jackson said. “We are building on the momentum achieved in 2010 by expanding our vocational presence with lighter applications and new engine offerings and the continued product enhancement for our current segments.”

Western Star engineers involved dealers, customers and body builders in the design of the new truck, soliciting advice and designing a truck that’s body builder friendly.

MERCANTILE MERGERS & ACQUISITIONS Mercantile Mergers & Acquisitions Corp­ oration are a mid-market m&a brokerage firm. The company specializes in the purchase and sale of mid-market companies, including the transportation industry. In ad­­dition, the company advises on business valuations, mezzanine, and equity financing, management buyouts, restructuring of debt, family business re-capitalization and workouts.

Contact (in confidence): Mark Borkowski, President at: (416) 368-8466 ext. 232 or mark@mercantilema.com Mercantile Mergers & Acquisitions Corporation 16

motortruck

Not only does the 4700 have a clean back of cab, but Daimler’s tightly packaged onebox exhaust aftertreatment system occupies minimal frame rail space.

The SCR system comes with either a six- or 13-gallon diesel exhaust fluid (DEF) tank and in-cab batteries free up an additional 17 to 34 inches of frame rail space for equipment installation.

The DEF and air tanks can be placed under the cab to free up additional frame rail space, the company says.

The body builder interface and transmission control unit are located in the cab – away from road debris and contaminants – which should reduce wiring issues.

The 4700 also boasts a bolt-in, pass-through plate in the cab floor that eliminates unnecessary drilling as well as a dedicated body builder wiring raceway, an easily accessible routing path through the cab floor.

“We’ve already received praise from those who have seen the new raceway,” Jackson said.

A full range of transmissions will be available on the 4700, including all the usual manual options as well as Allison automatics and the Eaton UltraShift Plus automated transmission.

Drivers too, should like the 4700. The truck comes with a sloped hood for improved visibility and a 55-degree wheel cut that provides good manoeuvrability in tight spaces.

“We understand the unique needs of the vocational job sites, so we designed the truck to shine in tight urban spaces or busy construction sites,” Jackson said. “Drivers will feel at ease operating the 4700.”

Isuzu re-launches gas-powered N-Series, unveils commercial van Isuzu has announced it is bringing back its N-Series gasoline-powered delivery truck, with production set to begin Apr. 18 at Spartan Motors’ Michigan production facility.

Gas-powered NPR (12,000-lb. GVWR) and NPR-HD (14,500-lb. GVWR) trucks will be offered in single cab and crew cab configurations. They should begin arriving at Isuzu dealers in early May, the company announced at the Work Truck Show.

The trucks will be powered by a GM Vortec six-litre V8 engine that produces up to 297 hp and generates 372 lb.-ft. torque at 4,000 rpm. The engine will be mated with a GM Powertrain six-speed automatic transmission.

“We are very excited to reintroduce our line of gasoline-powered N-Series trucks to the marketplace, with a new six-speed transmission that improves fuel economy and performance,”said Shaun Skinner, executive vice-president and general manager of Isuzu Commercial Truck of America.

Also at the Work Truck Show, Isuzu revealed a new commercial van produced in partnership with Utilimaster Corporation, a subsidiary of Spartan Motors. Full production of the Reach commercial van is slated to begin in the second half of 2011.

The Reach rides on an Isuzu NPR EcoMax chassis and is powered by the Isuzu three-litre diesel engine.

“The Reach is the ideal walk-in van for today’s market because its Isuzu powertrain offers incredible fuel efficiency and proven durability, and its frame, suspension, steering and braking systems are true commercial grade, not just beefed passenger van components,” said Isuzu’s Skinner. “Today’s fleet and vocational buyers are looking for low cost of ownership, and the Reach lives up to its name – it reaches a new standard in low cost of ownership that no other commercial van can match.”

Applications for the Reach include: package and delivery fleets; contractors; cleaning services; heating and air-conditioning technicians; plumbers; electricians; florists; moving and storage companies; cleaning services; and appliance repair and delivery firms.

EquipmentWatch Cat unveils much anticipated vocational truck

By James Menzies

Caterpillar has taken the wraps off a stunning new vocational truck that will be suitable for a full range of vocations.

The set-back axle (SBA) Caterpillar CT660 was unveiled to industry journalists prior to Conexpo-Con/Agg and, surprisingly, it was painted viper red, a departure from Caterpillar's trademark yellow and black. The new truck was also significantly different in appearance than the International PayStar it was based on, or as Caterpillar officials referred to it as, the "donor truck."

"To say everything above the frame rail is new is a fair statement," said Gary Blood, product manager, vocational trucks. "There is very little carryover inside the interior. We even did things like, we didn't like how the window lift worked so there are now two window lifts per door."

Attention to detail was the theme during the CT660's design process, which included heavy consultation with customers. Cat wasn't afraid to deviate from industry norms with its debut model.

The tired wood grain panelling so often found on truck dashes has been replaced with brushed aluminum, giving the interior a modern look. Cat also integrated the speedometer and the tach into a single gauge to better utilize dash space.

The glove box has been replaced with a removable storage bin.

And drivers of all sizes will find a comfortable place to rest their left elbow: a folding armrest, the door handle or for taller drivers, the window sill.

The CT660's exterior is equally unique. It has a three-piece stainless steel bumper that's easy to repair. The end pieces will bend back 180-degrees before causing damage to the centre section. Composite plastic fender sections are damage-resistant and easy to replace.

The honeycomb grille is framed by a stylish three-piece stainless grille surround. The cab is aluminum, saving about 250 lbs compared to steel, Blood noted, and the sloped hood affords excellent visibility.

Visibility is further enhanced with optional convex mirrors over the doors, which were favoured over a Fresnel lens inside the door since they can fill with water or become obstructed by items inside the cab.

Cat officials also said the CT660 offers a best in class turning radius.

"We have touched every panel on this cab. It is not the same cab the parent donor started out with," Blood said. Cat even changed how the mirrors were mounted onto the A-pillars and improved accessibility to the doghouse panel as it Caterpillarized the CT660.

Improved door seals and a standard enhanced insulation package make the cab super quiet, Cat officials insisted, although the truck hasn't yet been made available for road tests.

Under the hood is a yellow-painted International MaxxForce 11 or 13, rebadged the Cat CT11 and CT13 with a CT15 to come later.

CAT ATTACK: Cat’s new CT660 relied heavily on customer feedback – and the International PayStar as its muse – to create a sleek, unique work truck for the vocational market.

Subtle enhancements have been made to make the engines a true Caterpillar, but Blood admitted the engine is not much of a departure from the International base engine. The engines will use advanced EGR and will come in power ratings ranging from 330 to 550 hp (once the CT15 is brought on-line) and torque ratings from 1,450 to 1,850 lb.-ft. The truck will be available with a wide range of manual and automated transmissions, but Cat's own CX31 will be a notable option. The fully automatic transmission has six forward speeds and one reverse gear.

Caterpillar will begin taking orders for the CT660 in April and commence production in May with initial deliveries to begin in July.

The CT15 will be available in the first quarter of 2012, and Cat has already announced a set-forward axle CT680 will be the next member of the family, available in the first quarter of 2013. Pricing for the CT660 is not yet available – and will depend largely on the specifications – but it will be priced like a premium product.

march/april 2011

17

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EquipmentWatch The Granite also comes with a new headliner console, optional one-piece windshield and updated Champion Level trim package with button-tuck vinyl and ultraleather seats, the company announced. The new Champion Level trim package and one-piece windshield have also been made available on the ultra heav-haul Titan.

Mack Granite customers can also now spec' the 3000-series Allison automatic transmission.

Mack offering Granite sleeper, other upgrades

Navistar introduces MaxxForce 15, expands its mixer line

Mack Trucks was at the recent ConexpoCon/Agg construction equipment show with some new offerings, including a sleeper option for its Granite and other interior upgrades for the Granite and Titan.

Among the new offerings from Mack is a medium-heavy duty version of its popular Granite. The Granite MHD is designed for applications, including municipal, which don't always require the heavy-duty spec's the Granite is typically designed for.

"In the current economic environment, companies are taking an even harder look at how much truck they truly need," said Curtis Dorwart, Mack vocational products marketing manager. "Our new Granite Medium Heavy-Duty delivers just the right amount of Mack's legendary strength, durability and reliability, along with valuable weight and cost savings."

The Granite MHD comes in an axleforward or axle-back configuration and is powered by a Cummins ISL9 engine.

Also new from Mack is a 36-inch sleeper for its Granite, complete with a 30x80-inch mattress, curtain, bunk restraint and underbunk storage.

"We've seen a considerable increase in the number of vocational customers expanding their operations beyond regional sites," Dorwart said. "The new Mack Granite sleeper is ideal for customers in any market working to meet the federal Hours-ofService requirements."

Navistar International announced at the Conexpo/Con-Agg construction show that its International PayStar is now available with the 15-litre MaxxForce engine.

The MaxxForce 15 rounds out an engine line-up that already included the MaxxForce 11 and 13.

"With the introduction of our MaxxForce 15, our line-up of fully-integrated trucks and engines is complete," said Jim Hebe, Navistar senior vice-president, North American sales operations. "The introduction of PayStar and MaxxForce 15 now gives us a proprietary truck and engine combination with the durability and power that heavy-duty construction customers demand."

The MaxxForce 15 is available with up to 550 hp and 1,850 lb.-ft. of torque, Navistar announced. It is engineered for severe-service applications and uses Advanced EGR. Peak torque is achieved at 1,000 rpm and holds steady to 1,600 rpm, Navistar claims.

Navistar also introduced an expanded line of mixer products as part of its Continental Mixers business unit.

"It's been a busy first year for our Continental Mixers business as we worked to build the industry's largest, most comprehensive dealer network and bring a new level of after-sales and service support for ready-mix customers," said Steve Guillaume, general manager, Continental Mixers.

"Building on that momentum, we're fo-

cused on growing the business with a number of new products for a wide range of customer needs in the construction industry."

New to the Continental Mixers line is a front discharge mixer, developed in partnership with Indiana Phoenix. It will be available this fall and complements Continental's line of rear discharge mixers.

"Our entry into the front discharge mixer business is yet another step for Continental Mixers to provide a complete portfolio of product solutions for our customers," said Guillaume. "By integrating the chassis and powertrain from our commercial vehicles, we're able to offer a machine with unparalleled performance, reliability, and durability backed by an expansive network that understands how to support both mixers and vocational chassis."Â The company is also introducing an allnew lightweight integrated mixer, made of a proprietary high-strength steel specifically formulated for concrete mixers, saving about 2,000 lbs over traditional steel mixers, the company claims.

"With this lightweight mixer, we are changing the weight game in the mixer business," explaned Guillaume. "We've developed a product that provides our customers with significant weight savings in a 10.5 yard mixer, while maintaining all the benefits of a conventional steel mixer."

Continental Mixers also introduced SuperSlurry, a new soil stabilization technology aimed at transforming cement stabilization into a "clean and precise" liquid application as an alternative to historical applications of dry cement and line, the company announced. It is aimed at reducing fuel consumption and equipment emissions, eliminating airborne particles during application and reducing material clean-up.

"Our SuperSlurry is an exciting new technology that offers customers an environmentally superior alternative to conventional soil stabilization methods while providing customers with significant cost savings," Guillaume said. march/april 2011

19

Profitability

Carriers and shippers share concerns about capacity and pricing at State of Freight 2011

BY LOU SMYRLIS

W

hile the number of trucks and trailers on the road may be what shippers focus on when discussing available capacity for land transportation, it’s the shortage of available drivers that will prove to be the real issue in the future, according to motor carrier executives speaking at the recent State of Freight 2011 event, hosted by Cormark Securities.

“Depending on the level of economic improvement, it’s going to be a horrendous issue,” warned Stan Dunford, chairman and CEO of Contrans Group. “We are already saying no to some customers. My advice to shippers today is to start signing long-term contracts with carriers they trust and settle in as quickly as possible with them.”

Murray Mullen, chairman and CEO of Mullen Group, echoed those comments. He said that while capacity and freight volumes in the TL sector are in relative balance after about 10-15% of capacity being removed from the market over the past couple of years, the long-term trend is for capacity to be an issue.

“I give away too many 25-year pins these days in our company,” he said, referring to the aging population of Canada’s driver force.

Mullen and Dunford were part of a panel of shipper and carrier executives which also included Gary Fast, associate vice-president of domestic transportation for Canadian Tire; Warren Sarafinchan, supply chain director for Mars Canada; Doug Payne, president and COO of Nulogx; and Tom Schmitt, president and CEO of Purolator.

The discussion, on a variety of topics ranging from economic conditions and the impact of global trade patterns to pricing and outsourcing trends, was moderated by David Newman, director, institutional equity research, transportation and industrial products, Cormark Securities and Lou Smyrlis, editorial director of Transportation Media.

Carriers believe that the largest culprit for the growing shortage of drivers is the quality of life and working conditions in the longhaul truck driving job, instead of wages. However, new legislation affecting carriers operating in the US – Comprehensive Safety Analysis 2010, revised Hours-of-Service rules and border security issues – could potentially remove 2-5% of drivers, according to panel members.

Payne pointed out this confluence of factors placing such pressure on the driver pool will force shippers to reconsider how their own 20

MOTORTRUCK

practices affect the efficient use of drivers.

“It’s not just the carrier’s duty; it’s the shipper’s duty too,” he said, referring to the need for an intelligent approach to the driver shortage and adding that carriers will likely get tougher on the misusers of their equipment.

That was music to the ears of Dunford who advised shippers to adopt practices that turn their shipping and receiving facilities into “Indy pit stops.”

“At the end of the day, guess who pays for the cost of a driver running out of hours? We have an investment in that driver asset and that investment has to make ‘X’ amount of dollars a day…Shippers want cheaper rates instead of talking about what they can do more efficiently,” he said.

Dunford said that, for example, if a shipper agreed to stay open an hour longer so a carrier could get an extra load delivered during the day, the efficiencies gained by the carrier would be significant enough that they would even be willing to pay the shipper for the cost of staying open the extra hour.

“The shipper’s freight costs would go down too, yet they won’t do it,” Dunford lamented.

Carriers are expecting further fleet reductions across the industry, especially in LTL, where overcapacity is still an issue, but not as bad as it was in 2009. The LTL business has not recovered as quickly as TL (it usually lags by upwards of a year). Further, as Purolator’s Schmitt pointed out, LTL has been aggressively targeted by TL and parcel players encroaching on the space to gain market share.

The issue of pricing caused the most sparks on the panel. Payne from Nulogx pointed out that his company’s monthly Canadian General Freight Index (published in all Transportation Media publications) saw price increases in domestic truck transport during 2010, but those increases have recently tailed off. But the motor carrier executives saw rate increases in the future, arguing there could be no other alternative to rising labour and fuel costs. Further, carriers are witnessing more pricing leverage in markets where new investment is required.

Shippers noted that although they want carriers to be profitable, large pricing increases would be hard to accept at this point given economic uncertainty and their need to stay competitive by keeping pricing in check.

“The important thing is a partnership that takes costs out of the

Profitability system. If the carrier can’t substantiate why they need a rate increase, I won’t accept it, ” said Mars Canada’s Sarafinchan.

Fast from Canadian Tire also argued that a partnership between the carrier and shipper that focuses on removing inefficiencies and reducing costs is key. For example, he said Canadian Tire has invested a great deal in its forecasting capabilities and providing seasonal and annual forecasts so that carriers have a better handle on how much equipment will be required to handle Canadian Tire business.

Trucking rates dropped dramatically from their peak in 2008 and motor carrier executives across Canada complain that increasing use of the spot market by shippers is part of the reason why. They add that placing such emphasis on the lowest freight rate is jeopardizing shipper-carrier relationships.

Both Sarafinchan and Fast, however, said they prefer not to use load brokers.

“We will not use load brokers. Having that direct relationship with the carrier is important…You need to stand for something in this industry. And we look at the CVOR (commercial vehicle operating record) of all the carriers we use. If any carriers do not have a good CVOR, they do not do business with us,” said Sarafinchan.

Dunford praised Sarafinchan for being so selective in his carrier selection, but said that is rare in the shipping community.

“If the entire shipping community felt the same, there would be better relationships in transportation, Dunford said. “You wouldn’t believe how many shippers are using carriers with bad CVORs.” All panellists agreed the trend towards increased use of intermodal transportation (long-haul on rail and short-haul on trucks) will

continue. Customers’ demands for faster service, rising fuel costs and the looming driver shortage in the trucking industry are all aiding intermodal growth. Given the long-term growth potential of the intermodal segment, several carriers are increasingly looking to build their intermodal business, following in the footsteps of some US carriers such as J.B. Hunt, which significantly increased its profitability following its efforts on this front. Interestingly, given the intermodal business for trucking companies is short-haul in nature, intermodal/TL carriers do not usually face as many driver shortage issues, which could also drive more carriers toward the intermodal business.

In the meantime, both shippers and carriers are expecting an increase in freight volumes in 2011, but not at levels worth getting excited about, unless you are looking at specific regions in the country which are experiencing double-digit growth.

“The economy is really in two parts right now. If you are a net beneficiary of high energy pricing, you are doing well. We are seeing that in our businesses in Western Canada where the dynamics are driven by the amount of capital going into big projects. Saskatchewan is on absolute fire…Eastern Canada will lag,” Mullen said.

Schmitt said his company is also experiencing heavy growth rates in Western Canada and wondered how long it would be before e-tailing would take off in Canada to the degree it has in the US. He said Canadian e-tailing levels are one third of that experienced in the US. He also said with labour costs rising in China, environmental stewardship rising in importance and energy pricing concerns returning, manufacturing in Mexico and transporting products from there into the US and Canadian markets is looking increasingly attractive. mt

LEGAL CORNER

‘Hit a truck, get a cheque’ The trucking industry is under attack with plaintiffs’ attorneys seeing our industry as a profit centre.

At the latest Driving for Profit seminar, editorial director Lou Smyrlis spoke with Douglas Marcello of Marcello & Kivisto LLC to find out what you can do about it.

BY LOU SMYRLIS

MT: The interesting thing about accidents is that it’s one of those things that we all hope will never happen, but when you’re running up miles, sooner or later, something is going to happen. Then the company’s reputation and financial viability is at stake. Reading your

comments on your Web site, you believe the trucking industry is under attack, particularly in the US, as far as litigation is concerned.

What is happening right now that is making you believe that?

Marcello: As I go around the country and

represent companies in different venues around the United States and other jurisdictions, I see ads on television, in television books and in print media all advertising attorneys who are specializing or seeking cases involving tractor-trailers. What we have is a MARCH/APRIL 2011

21

Profitability system that has developed where plaintiffs’ attorneys see our industry as a profit centre; hit a truck, get a cheque. They look at your folks as driving 18-wheel ATM machines, and it has developed because they know you have insurance. The legislatures have tightened up the recoveries on medical malpractice, so that dried up that profit centre. They feel that jurors are already prejudiced against trucks; it is like when you have a bad meal in a restaurant. Everyone has been cut off at one time or another, and that is what they remember. They do not remember the 45 truckers who let them in. They also can paint the pictures of the David versus Goliath scenario of some poor four-wheeler against some 18-wheeler. That is the scenario and that is where that comes from.

MT: Do I assume correctly that it’s Canadian fleets running into the US that are most at risk; the ones that have the target on their back?

Marcello: I think everyone is at risk and everywhere. I am involved in assisting on a case in Kingston, Ont., now. It is not just endemic to Canadian carriers in the United States or even carriers in the United States; it is something that is developing all over right now.

MT: How should motor carriers respond?

Marcello: We need to respond surely and swiftly to any accident. Emergency providers talk about the “golden hour” in terms of medical response. We need to immediately respond to any accident, to begin to take action to respond to the defence of that case, and to act surely and swiftly in what we do.

We need to prepare for what is a sad reality of our business: that there will be accidents, and accidents lead to litigation. We need to, when the accident happens, employ that preparation and act rapidly. We have an advantage no one else has: we have the advantage of immediacy. No one knows about that accident before we do; none of those advertising attorneys. If we do not act immediately to preserve the evidence, identify 22

what we need to do and prepare that case immediately, then we have squandered the biggest advantage we have. After that, rather than follow the same old path that I see too often where, once the debris has settled, we sit back and wait for something to happen and hope that it doesn’t (which is becoming less and less of a reality these days), we need to act aggressively, take charge of the situation and dictate the pace at that time. I think it is something that we need to do and be proactive. We need to look for new means of repelling the attack that we are overcoming. The fields of history are littered with the carcasses of armies that were perfectly prepared to fight the last war. We need to prepare to fight the next battle.

MT: Let’s position ourselves right at the scene of an accident. What are the most critical things you should and should not do?

Marcello: Tradition is to take a statement either written or oral from a driver. There are a number of reasons I do not think that is the best advice: 1) We serve on a platter information to the plaintiff that they can’t already get. How many times do we get to take a recorded written statement from the person who sues us? We don’t. 2) Immediately after the accident, there is a lot going on in those middle seconds when the accident happens that the driver may not be real clear themselves as to what happened or be accurate on it. 3) There are a number of statements taken from the driver for us to take; more only create the potential for conflict. There is nothing so powerful in a case than credibility. Where there is conflict, even inadvertent, between statements of the driver, what will happen is that those will be used as questions of credibility. 4) Sometimes those very statements or what the driver says contradicts what the physical evidence actually shows, or what we have from an accident reconstructionist, so that the driver will give a certain speed based upon their best perception in those split seconds, yet the skid marks, the crush and the other factors

we look at (even the ECM download) will show a different speed. 5) Finally, I am always concerned that taking a statement from the driver could ultimately be subpoenaed by the police and end up in criminal charges he wouldn’t already have except for us subjecting him to that statement.

MT: What about drug tests? Unless you are legally required to do so, should you be taking drug tests?

Marcello: In today’s world, the sad reality is that you never know about anybody. I have had more companies say, “I have known this guy for 30 years and I’m amazed at this.” My suggestion is this: unless we are legally required to or company policy is such, do not take a drug test from the individual. First of all, an accident of that severity is going to be investigated by the police; they are trained professionals to recognize people who are under the influence of drug and alcohol conditions. There were trained professionals in close proximity with that driver who did not suspect it and did not have a reasonable belief to do so. Why should we question them or why should we run the chance of taking a drug and alcohol test just to prove the contrary?

MT: What about the ECM download after the accident? Should you be doing it yourself or no?

Marcello: My recommendation is to have a third party, usually a dealer, do it. The reason is that with electronic data, particularly subject to an accident, there is a great chance for some failure or flaw in the download of the data. If you do it, there is potential exposure for spoliation – loss of the evidence which could be held against you in a subsequent suit. There are very few jurisdictions in the United States – maybe two – that will hold a third party responsible for losing the data. This gives you both insulation and also gives validity. The third party is not under our control, so if there is no data there, it is not us saying that, it is an independent party saying that. mt

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GreentoGold

plug and stay Program looks to boost interest in electrified parking spaces

By John G. Smith

Equipment eligible for the rebates includes devices such as Auxiliary Power Units or battery-powered HVAC systems, as long as they can plug into the shore power supplies. In the meantime, some truckers are already using early installations by running simple extension cords through openings in their cab doors or sleeper windows.

Access to the Shorepower Technologies network used in this program tends to cost about $11 per night – far less than the cost of an idling engine, notes Jon Gustafson of Cascade Sierra Solutions, which is administering the Department of Energy FIGHTING THE POWER?: The use of electric pedestals to power various in-cab gadgets program. This may be an underhas the potential to greatly reduce the need for engine idling – but truck stops are reluctant to statement. Long-haul truckers build the infrastructure until they identify a demand. typically idle their engines between 1,400 and 3,000 hours a ruckers have traditionally relied ing $20.2 million into the Shorepower year in a bid to power everything from on the power of diesel when run- Truck Electrification Project (STEP), which HVAC systems to refrigerators and televining many of the creature com- will install electric pedestals in 50 truck sions, burning between $4,900 and $10,500 forts in today’s sleepers, but one stops along selected interstate corridors. of diesel in the process. If not properly manUS program hopes that a growing network Each site will be equipped with 25 of the aged, idling costs can actually add up to 10.5 of electrical outlets can silence the sounds electrified parking spots, while funds will cents per mile, with issues like premature also offset up to 20% of the cost to install engine wear and rebuilds contributing anof idling engines.

The US Department of Energy is invest- 120-volt devices in 5,000 American trucks. other two cents per mile to that, he adds.

T

SPONSORED BY:

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To compound matters, the cost of fuel has been on a steady rise. The prices at US pumps have increased about 25% per year over the past two years. “That cost is what needs to be in mind when deciding whether electrification should be part of your equipment strategy,” Gustafson said during a presentation to the annual general meeting of the Technology and Maintenance Council.

The price of fuel is not the only factor to consider. An increasing number of US jurisdictions are tightening the restrictions on idling trucks. Thirty-one states and 47 local jurisdictions are already limiting idling in one way or another, introducing fines along the way. A focus on Truck Stop Electrification (TSE) also aligns with other federal initiatives in the US, such as those designed to reduce greenhouse gases and the US dependence on foreign oil.

Of course, the concept of “shore power” is nothing new. Anyone who has ever docked in a marina, or pulled into an RV park will recognize the systems that typically deliver 120-volt, 60-cycle, 20-amp service. Millions of trucks are already equipped with 120-volt block heaters, observed Skip Yeakel, principal engineer with Volvo Group North America.

But trucks generally have limited access to electrical connections. Truck stops are reluctant to build the infrastructure until they identify a demand, while most truckers rely on inverters for power supplies because of a lack of infrastructure. IdleAire Technologies – which had promoted its own network of connections – reported just 131 locations before it ceased operations earlier

this year.

“We know we have to build the sites in order for it to make sense,” says Jeff Kim of Shorepower Technologies, which is installing STEP’s power pedestals and offering the related payment system. “If you don’t have a place to plug in, it doesn’t work.”

Electrified parking spots involve more than a series of extension cords across a parking lot. Truck stops can sacrifice 30% of their parking spaces to make room for the necessary electrical connections, said Vince Mangano of Integrated Marketing Services, referring to one reason that the technology has been slow to arrive. “The larger and more cumbersome the technology, the greater the impact,” he added.

“Somehow the packaging has to be small.”

There also needs to be a way to track the way the individual tools are being used. “It’s a lot of investment to pave a lot and see a lack of efficiency.”

STEP’s supporters simply hope they will see the returns on these investments.

Participating truck stops can share the revenue from electricity sales, and could sell the appliances that truckers could fit into their sleepers. Truckers will enjoy access to electricity, the Internet and cable TV fed through each pedestal. And while regulators focus on the way anti-idling tools can prevent smog, the truck stops might be able to appease common complaints from their neighbours. “The emission side of it is important from a regulatory perspective, but the average John Doe is complaining

more about the noise,” Mangano said.

Future electrified sites may not be limited to traditional truck stops that are equipped with service centres, convenience stores and fuel islands. “Non-traditional” options could include fleet terminals, rest areas, distribution centres, ports of entry and manufacturing facilities, he said. While truck stops would want to see additional sales, fleets could equip their own yards in a bid to use less fuel. Shippers could equip loading areas to comply with health and safety rules that are designed to limit the impact of exhaust fumes.

Those who watch over the different sites would just be influenced by different things.

Fleet managers and drivers will be able to use the promise of added business to influence a traditional truck stop. Decisions about other locations are often governed by community politics and regulators, complete with the funding that comes from taxes and road fees.

The needs might also change in the years to come. Future connections could be equipped to deliver 208 or 480 volts to support reefers and specialty equipment, Gustafson said.

The results of the STEP initiative itself will be graded pretty quickly. A related report needs to be sent to the Department of Energy as early as February 2014, and those results will need to be published the following May. By then, regulators will have a better idea of whether truckers are willing to plug and stay. mt

SPONSORED BY:

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GreentoGold

Hino’s new Classes 4 and 5 hybrid cabovers make big splash at Work Truck Show

By James Menzies & Lou Smyrlis

HYBRID HYPE: Hino’s new cabovers are designed specifically for the North American market. A hybrid-electric version offers further fuel economy gains.

H

ino’s new cabover Classes 4-5 models 155 and 195 – and hybrid-electric versions of the same – were introduced amid much fanfare at the recent Work Truck Show.

For Hino, it marked the first time the truck maker has launched a new model outside of the Japanese market first. Hino unveiled the new models in grandiose fashion to dealers, customers and media during a special unveiling March 8.

The new models were designed specifically for the North American market and will be well-suited for urban deliveries, Hino officials said. Sumio Fukaya, president and CEO of Hino Motor Sales USA, said the new offerings will provide affordable and

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efficient solutions for companies operating in urban environments.

“We have seen the price of new vehicles soar as much as 22-25% over the past four years,” Fukaya said. “As such, we are seeing a trend where companies are moving towards less expensive, smaller trucks.”

He also noted the US is the only developed nation with a growing population, which will drive the shift towards more manoeuvrable cabovers.

“By 2020, according to the US Census Bureau, the US population is expected to reach 320 million people with 90% living in urban areas,” he said. “With more people living in urban areas, the need for more products to be delivered to those areas is a major contribution to the need for smaller,

more manoeuvrable trucks.”

The 155 and 195 cabovers were built for North American drivers and can comfortably fit a driver who’s 6-ft.-6-in. with a size 13 boot, noted Glenn Ellis, vice-president of marketing and dealer operations for Hino.

The new cab also offers “more storage and cup holder space than you’ll know what to do with,” he promised. Also key to North American customers is a standard 33-inch frame rail width with a 56,900-PSI frame.

Fuel tanks are tucked out of the way between the frame rails and an angled windshield and narrow pillars provide excellent visibility for drivers. The new cab is aerodynamic too, offering about 29% less drag than some competitive models, Ellis claimed.

The new models are powered by the Hino JO5E Series engine rated at 210 hp and 440 lb.-ft. of torque and will utilize selective catalytic reduction (SCR) exhaust aftertreatment. This allows the vehicle to meet stringent EPA2010 emissions standards without the use of EPA credits, Ellis noted.

The hybrid-electric versions – the Models 155h and 195h – share much of the same componentry that has made the Toyota Prius popular, officials said. Eric Smith, vicepresident of sales with Hino Motors Canada, said that at this time, only the Class 5 195h is planned for release in Canada.

The 155h and 195h feature Hino’s sixth generation hybrid system, Ellis said, adding, “For the first time, the engine control unit and the hybrid control unit work in harmony to maximize the effect of the hybrid system.”

GreentoGold

It may come as a surprise that Hino says it has built more hybrid trucks around the world – 10,000-plus – than any other manufacturer. One month prior to the launch, editorial director Lou Smyrlis was invited to Hamura, Japan to tour Hino’s facilities and meet with its executive and clients. One of those clients was ITO-EN, the third largest manufacturer of soft drinks in Japan. ITOEN – which is starting to become established in North American, as well, with its teabased drinks – has been using earlier versions of Hino hybrids for five years to deliver its products to supermarkets and the more than 150,000 vending machines it services across Japan. The company was working towards a corporate policy to reduce CO2 emissions by 10% from 2004 levels by 2010 and since its manufacturing process is outsourced, the CO2 reduction was heavily reliant on the performance of its trucks. The company drivers of the city-bound trucks are expected to improve their fuel performance by 1% a year.

However, ITO-EN officials were open about the fact that the previous manual transmission hybrids were not up to their expectations. The manual transmission required strong driving techniques to achieve the best fuel efficiency, but the congested streets in major cities such as Tokyo combined with the fact that ITO-EN drivers were in fact salespeople who drove a truck to deliver the product to their customers rather than professional drivers, was making that problematic.

ITO-EN officials were much happier with a test truck of Hino’s new generation hybrid and were experiencing 34% better fuel mileage over their straight diesel models. The automatic transmission was also something that they appreciated.

During the launch in the US, Hino said the hybrid is expected to lower emissions by as much as 25% with the corresponding gains in fuel efficiency. The system features an electric motor that assists during start-up and

acceleration by providing 258 lb.-ft. of torque.

As is the case with the Prius, the engine shuts off when the driver steps on the brake to conserve fuel. The dash display turns green when the driver is operating the engine in its optimum range, providing visual confirmation the hybrid system is being operated efficiently.

Ellis said the new hybrids offer a five-year payback based on today’s fuel costs, without any government incentives to offset the higher purchase price. The non-hybrid 155 and 195 will also be “competitively priced” with other cabovers in the Classes 4 and 5 markets, Fukaya said.

The Models 155 and 195 will be available in Canada by early September, Hino Motors Canada predicts. The hybrid Model 195h will be available in December.

For more on editorial director Lou Smyrlis’ trip to Japan to see the new models prior to the launch, visit his blog at www.trucknews.com.

From the top One month prior to the launch of Hino’s new cabover hybrid models, editorial director Lou Smyrlis was among a handful of North American journalists invited to Hamura, Japan, to tour Hino’s facilities and meet with its executive. Included below are the highlights from the interview with Hino’s executive team, which included president Yoshio Shirai; president and CEO of Hino US Sumio Fukaya; executive vice-president Toshiki Inoue; and president of Hino Canada, Shin Nakamura.

Q: The North American trucking market has undergone considerable change over the past couple of recessionary years. How will Hino position itself over the next decade to take advantage of these changes and the opportunities presented in the North American market?

Sumio Fukaya: We realize that the North American market has gone through big change. Customers are seeking not just cost-effective solutions, but also true value in the vehicle, customer satisfaction and a

contribution to a societal mandate (green trucking). As the market shifts its focus from cost to value, we are in a very good position to capture market share.

Yoshio Shirai: The North American car market used to be dominated by large cars until Japanese cars were made available in the market and North America moved to more medium-sized vehicles with better fuel performance. If we apply that example to the truck segment in North America, we

see a market still dominated by heavy, fuel guzzling vehicles. We need to see the same kind of change in the North American truck market. Moving goods with greater efficiency is the value proposition we want to achieve with our hybrid truck introduction.

Q: What needs to happen for the North American market to accept hybrids?

Continued on page 37 MARCH/APRIL 2011

27

Big change, bigger brakes

Manufacturers prepared for shorter stopping distances, but other changes

By John G. Smith are coming

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ew North American trucks will soon be required to stop more quickly than ever before, but manufacturers seem ready to meet the revised rules with the help of larger brake components.

In general, updated Federal Motor Vehicle Safety Standards are reducing a 6x4 tractor’s allowable stopping distance by 30%, requiring most loaded tractors to drop from 60 miles per hour to a complete stop within 250 feet. Three-axle tractors with a Gross Vehicle Weight Rating of 59,600 lbs or less must meet the new rules by Aug. 1, while two-axle designs and those with a GVWR above 59,600 lbs will face the shorter distances by Aug. 1, 2013.

The reduction in stopping distances is even more dramatic than it might appear, said Bulkmatic’s Dennis Talentowski, during a recent panel discussion with the Technology and Maintenance Council (TMC). “Most OEMs give you that 10% margin of error,” said the fleet maintenance director. That means the real stopping distances for a loaded tractor is closer to 225 feet. Passenger cars need to stop within 214 feet.

“That’s a lot of mass trying to stop very quickly,” he adds.

“Our tractors will be stopping almost as well as the cars do.”

From an equipment standpoint, standard brake packages used to meet the pending rules seem to include larger brake linings, long-stroke brake chambers, and enhanced brake cams and bushings.

It should be little surprise that bigger components can translate into heavier weights. Each package will vary, but Navistar engineering manager Bernie LaBastide referred to one setup with 16.5-inch friction material, Type 24 brake chambers and 5.5-inch slack adjusters that would add about 95 lbs to a vehicle.

“There is no one solution out there for every customer,” he said. Every trucker will have unique needs to be met, whether they focus on the initial cost of the components, brake life, maintenance needs or the ultimate weight.

While regulators are focusing on tractors in this ruling, many sources at TMC questioned whether the aggressive stopping power will lead to an imbalance in some braking systems, making it harder to keep a more lightly braked trailer in a straight line during a panic stop. At the very least, tractor brakes are expected to face some added stress because of their added work in every stop.

Computer modelling shows that there will be added torsional stress on the front suspension, noted LaBastide.

And Mark Green, Peterbilt’s senior project engineer, referred to the way that vehicles with a shorter wheelbase could expect more of the brake-related load to be transferred to the front axle.

Some of the added stress and weights appears to be addressed with upgraded fasteners. Most ¾-inch bolts have been replaced with 5/8-inch designs, and in selected cases there are even more fasteners being used.

“In the future, if you try to move brakes across the truck or put an old brake on a new truck, you may have an issue with different fastener sizes,” noted Anthony Moore, Daimler Trucks North America’s director of engineering responsible for brakes and pneumatics. “Don’t put 5/8-inch fasteners into ¾-inch holes. That’s not going to work well for you.”

Linings are being upgraded as well. “You’re going to get

brand new lining material – nothing you’ve ever seen before,” Moore says. “There will be some combination of organic and semi-met linings we haven’t used in the past.”

And there will be no time to rest. The latest reduction in stopping distances is likely a sign of tighter restrictions to come.

The National Highway Traffic Safety Administration (NHTSA) is actively researching a long list of technology that could play a role in stopping vehicles. “The best way to know what’s coming up in NHTSA rulemaking is to see what we’re doing in NHTSA research,” said the organization’s Alrik Svenson. In terms of avoiding crashes or reducing their impact, that research has meant a closer look at different stability controls, forward collision warning devices, and lane departure systems designed to keep trucks from straying out of their lane.

A focus on rear-end collisions includes research into equipment that warns about a pending forward crash, adaptive cruise control, “crash mitigation braking” that would automatically apply brakes, and other enhancements to the brakes. A uniquely Canadian rule has also caught the attention of US regulators who are studying our enhanced standards for stronger under-ride guards.

All of that may pale in comparison to the US Department of Transportation’s research into the possibility of a “connected vehicle environment,” where vehicles speak to each other with 5.9 GHz wireless signals. “The system can give a driver advisory, a driver warning, or, in the next generation, actually take control of the vehicle, similar to stability systems,” Svenson says. That has the potential of addressing eight in every 10 crashes among motorists who are not impaired. “There’s been a considerable amount of work being done on the light vehicle side,” he adds.

In the midst of it all, there will be a need to offset the changes that are introduced to reduce greenhouse gas emissions – creating brake-related challenges on their own. As rolling resistance is reduced in the name of fuel economy, for example, stopping power will need to be adjusted.

“Anything that lowers the rolling resistance will increase the effort that has to be generated somewhere,” Moore explains. “We’re going to have to, correspondingly, somehow, improve the braking capabilities of the vehicle.”

The design of a tire’s tread, the related material, carcass design, inflation pressures and profile all have a role to play in stopping distance.

Harder, high-mileage tires may present a problem when trying to build systems that meet the new rules.

“Heavy-duty truck tires are currently a bit of a wild card,” explained Vince Lindley, director of warranty, quality and reliability for Volvo Trucks North America. “There is currently no industry standard traction rating.”

Yet another factor could add to the strain on brake components. The growing interest in stability control systems could also require brakes to be applied for a larger percentage of their time on the road. “That will increase the work we put into the brakes,” Moore says.

Think that’s the end of it? Don’t forget other environmental regulations. Pushes to eliminate the copper in brake linings will likely lead to further changes in the lining materials used in the next five to 10 years, Moore adds.

It appears that regulators show no sign of slowing down. mt John G. Smith is an award-winning writer based in Ajax, Ont., and has been covering the trucking industry for more than 15 years.

He is the former editorial director of Motortruck’s sister publication Truck News, and now president of WordSmith Media Inc. march/april 2011

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power to the pins Trailer power demands are on the rise, but is your wiring ready to carry the load?

By John G. Smith

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oday’s trailers are more power hungry than ever. The pigtails that establish an electrified link between tractors and trailers are being called on to support everything from reefer batteries to communication systems.

The demand on the J560 connector’s auxiliary pin even continues to grow. “Everybody acts like it’s a public domain,” notes Bruce Purkey of Purkey’s Electrical Consulting, referring to the way that those who install auxiliary equipment are tapping into the pin’s power.

But the demands don’t end with auxiliary equipment. That connector also needs to deliver 12.5 volts and 10 amps of power to support the trailer’s Antilock Braking System (ABS).

“The tractor supply voltage has a significant influence on the voltage available to the ABS,” notes Bob Rudolph of Haldex Commercial Vehicle Systems. If the voltage falls short, the system will not work as designed, leading to flat-spotting trailer tires, failed roadside inspections or even collisions. And one in four roll stability systems are not functioning because of a lack of voltage at the blue auxiliary pin, Rudolph adds. “There is no redundant backup in these cases.”

It makes the ongoing inspections of the wired connections particularly important – especially since the maintenance efforts often fall short.

“Rarely do you ever see anybody check the seven-way cord on the tractor side. Everybody assumes the tractor is in good shape,” Purkey notes.

Even though TransAm Trucking was inspecting the connections for damage, it ran into challenges of its own.

A simple LED tester had been the tool of choice, notes shop manager Jim Ohlmeier. If the bulbs lit up, the connections were considered to be sound. But the fleet was still baffled by failing starter batteries on its reefers.

“The issue was not with the charging system, but with the voltage we were supplying, or in some cases, not supplying,” he explains. “The problem with these types of tests is they take minimum voltage and amperage.”

“The simple LED trailer cable tester may show ‘all systems are go’ on the trailer connector, but until you add sufficient load to the tester, you will never find the hidden voltage drop, or the

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corroded or damaged terminal,” he adds.

A more sophisticated tester has since shown that voltage drops on the fleet’s equipment ranged from 0.9 volts to 3.9 volts.

As important as the auxiliary pin may be, Brad Van Riper of Truck-Lite also suggests that the remaining wiring can’t be ignored. Even LED bulbs require a specific amount of voltage before they will deliver an expected brightness. If the power supply drops below 11 volts, the lighting may actually be less visible. “Twelve-and-a-half volts will make everybody happy and your vehicle a lot safer,” he says.

In many cases, power issues can be traced to something as basic as the gauge of wiring since the amount of copper will affect the draw of the current. Even though most truck manufacturers supply new vehicles with green pigtails (equipped with an eight-gauge, two 10-gauge and four 12-gauge wires), 60% of the cords sold in the aftermarket only have a single 10-gauge wire and six 12-gauge wires. It raises an important question: will the black replacement cord and its thinner wires provide sufficient voltage? “The chain of the electrical system is only as strong as the weakest link,” Van Riper says. “You need to start with enough copper and a good harness design to supply the loads you need.”

The challenge extends to the trailer’s own wiring harnesses.

While 14% of trailers are equipped with a main wiring harness that has a single eight-gauge wire, a pair of 10-gauge wires, and four 12-gauge wires, 76% are equipped with a single 10-gauge wire and six 12-gauge wires, Van Riper says. (The remaining trailers included split mains or another type of wiring harness).

“And as the cost of copper increases, there is an attempt to lighten the gauge even more.”

Other voltage-related challenges come down to issues such as poor connections, overheating wires, the build-up of moisture or corrosion. Then there are the worn and distorted terminals, corroded terminals, corroded wires, open fuses and circuit breakers, or challenges with the tractor ground circuit.

“A significant amount of damage can occur in the wiring before they ever become hard faults,” Rudolph observes.

It’s why maintenance teams need to be aware that every connection counts. mt

g

going beyond the regs An inside look at the tire wear and positioning considerations for the U-Haul truck fleet Bob de Kruyff

T

ires are one of the most critical components that need to be managed by modern and diverse vehicle fleet operators today. Not only can tires represent one of the largest maintenance issues for fleets, they also can have a significant effect on vehicle performance.

Many existing recommendations and procedures are rooted in decades-old experiences and technologies. Additionally, it is important to review all procedures from the standpoint of individual fleet makeup, duty cycle and operator/driver experience. What may be good for one fleet may not be optimal for another.

Sifting through federal and state (or provincial) regulatory requirements will provide only minimal performance standards. Although those standards need to be met, they donâ&#x20AC;&#x2122;t paint an adequate picture of the numerous considerations that need to be managed in order to provide the best balance of performance objectives. A quick survey of large fleet operators illustrates different recommendations which may or may not be supported by sound engineering reasoning. When it comes to tires, anecdotal â&#x20AC;&#x153;evidenceâ&#x20AC;? is abundant.

One of the major considerations a truck fleet faces on a day-to-day basis is where to position replacement tires when the time or need presents itself. Unlike passenger vehicles, it is not unusual to replace one or two tires at a time, rather than the entire set. Compounding the issue is the complexity introduced by single- and dual-wheel configurations utilized in many truck-based fleets.

U-Haul operates the largest truck fleet in North America, with a total at any one time of close to 100,000 trucks. Of those, approximately 25% are four-wheel light-duty trucks with gross vehicle weight ratings (GVWR) of less than 10,000 lbs, while the remaining 75% are six-wheel medium-duty trucks with a GVWR of up to 20,000 lbs. march/april 2011

31

These trucks are rented to individuals with diverse demographic backgrounds, not only from an experience level, but also from physical-operating environments. Above all, it is critical to consider driver safety as the most important factor in tire maintenance and replacement policies. It is not unusual for a truck to experience level road and desert-heat conditions on the same day as mountainous terrain with freezing temperatures and icy road surfaces.

U-Haul utilizes one of the most comprehensive and dynamic maintenance systems of any fleet operator today. Procedures and policies are updated on virtually a daily basis. Tire monitoring and replacement procedures are just one of the issues included in the overall process and they are continually reviewed for optimal performance and safety. Considerations such as mixing of brands and constructions, while very important, are not discussed in this article.

A key question is whether to place the newest tire(s) on the front or on the rear of a vehicle. A survey of other US fleet operators failed to indicate a clear and consistent policy. In many cases, this is attributable to diverse fleet composition, duty cycle, driver experience and personal preference. U-Haul felt it needed to analyze the issue based on its own specific criteria, not just general opinion.

Figure 1 details some of the considerations which need to be

managed in a comprehensive tire-maintenance program. It quickly becomes apparent that some of these factors are in tension with each other and need to be carefully weighed in the context of not only what is possible within the daily operating environment, but also what is most important for our customers.

Although it is a given that federal and local laws must be met, other internal considerations can be managed and balanced for best performance. Additionally, these individual considerations need to be reviewed based on specific truck equipment within the fleet. A review of the considerations indicates that, from a vehicledynamics standpoint, different policies were required for fourwheel and six-wheel trucks.

Vehicle braking, cornering and traction are directly affected by tire condition. However, there appears to be no difference in requirements for four- or six-wheel trucks. Additionally, it is felt that drivers can quickly adapt to individual vehicle capabilities within this category. Once drivers have familiarized themselves to a specific vehicle, they are able to use good judgment and safely operate the truck during the rental period.

Before proceeding to hydroplaning and rapid air loss (RAL) considerations, it is important to discuss some basic dynamic handling characteristics and terminology.

Figure 1

TIRE WEAR AND POSITIONING CONSIDERATIONS FEDERAL AND TREAD STATE (PROVINCIAL) WEAR REQUIREMENTS

ODOMETER ACCURACY

Minimum 4/32” steer axle, 2/32” non-steer

Rotate in order to balance uneven wear

Enforced by commercial vehicle agencies predominantly for 18-wheel types

Generally, steer axle tires receive cornering and alignmentrelated wear

Reduced tread on driver axle can cause “overclocking” of odometer

Rotation patterns vary by type of vehicle, tire and manufacturer

VEHICLE DYNAMICS Braking, Cornering, Traction

Hydroplaning

Rapid Air Loss (RAL)

Minimal effect of tread depth on dry roads

Usually not an issue with heavily loaded highprofile tires running at high tire pressures

Most significant driver-related issue

Significant effect for wet and icy roads with dynamics similar to rapid air loss (RAL) effects ABS mitigates front-torear braking differences Rear tires provide directional stabilizing effect Drivers adapt to a particular vehicle’s characteristics

Steer axle tires tend to serve as “wipe” tires for rears Rear tires provide directional stabilizing effect Hydroplaning can surprise a driver

Reduced tread depth and aging contribute to increased propensity for punctures and RAL Four- and sixwheel vehicles have different sensitives when RAL occurs Rear tires provide a directional stabilizing effect RAL can surprise a driver

32

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exacerbate the inability of the tire to manage this water flow. As indicated in Figure 2, loss of lateral stability by the rear tires can cause an undesirable oversteer condition.

Additionally, the front tires do offer some “wiping” effect, which tends to reduce the amount of water that rear tires must contend with. Although all types of vehicle and tire combinations can experience hydroplaning, high-profile and high-pressure truck tires tend to be less susceptible to hydroplaning than tires used on passenger cars.

RAL presents one of the most significant conditions which must be considered when replacing tires on a vehicle. It is commonly understood that tires with reduced tread depth are more susceptible to punctures and major damage-inflicting road hazards which can cause rapid air loss including, but not limited to, what is commonly referred to as “blowouts.”

Figure 2 illustrates one of the most important vehicle-handling characteristics as it pertains to the ability of an average driver to safely control a vehicle. Understeer can best be described as the tendency of a car or truck to steer less than the driver’s input would suggest. Although levels of understeer vary from vehicle to vehicle, it tends to introduce a stabilizing effect on the vehicle’s dynamic performance. Many times this characteristic is referred to as “pushing” or “plowing.” Within moderation, most drivers can overcome or adjust to this phenomenon by introducing more steer input toward the desired direction of travel. All modern cars and trucks are designed with a natural amount of understeer built in through suspension configuration and basic weight distribution. Oversteer describes a condition where a vehicle will tend to turn more than expected in the desired path. This condition can be very unstabilizing for the average driver and can catch a person by surprise. Most drivers are not trained to correct for this condition and in extreme cases can overcorrect and subsequently lose control of the vehicle.

Because of these basic handling traits, oversteer must be avoided if at all possible. This leads to the further discussion of hydroplaning and RAL, as described in Figure 1.

Hydroplaning occurs when a tire rides above or on top of a thin film of water. This can result in a dramatic loss of traction, with subsequent loss of ability to control the vehicle. Tire tread design and depth have a significant effect on a tire’s ability to manage the flow of water away or around the tread surface, thereby allowing tread contact with the road surface itself. Reduced tread depth can 34

motortruck

Figure 3 illustrates what forces a RAL situation can exert on a vehicle. When a tire experiences a RAL, not only can the vehicle “kneel down” at the corner which suffered the RAL, but the tire/ wheel combination itself also experiences increased resistance to rolling. Both of these factors cause a force vector which, combined with the forward-momentum vector, will cause the vehicle to deviate from its desired path. The effect of this deviation can differ significantly if the RAL occurs on the steer axle (front) or the

drive axle (rear).

In the case of both four- and six-wheel vehicles, a RAL on the steer axle can cause a moderate to high level of understeer. Although undesirable, most situations can be managed by the average driver by increasing the amount of steer input required to maintain a forward direction of the vehicle.

When a RAL occurs on the rear of both four- and six-wheel vehicles, the lateral vector induces an oversteering effect. The degree of this effect may be significantly different in four- and sixwheel vehicles. In the case of a fourwheel vehicle, the tendency of the vehicle to kneel in the rear is significantly higher than that experienced with a six-wheel vehicle. This kneeling effect results in a higher tendency to cause an oversteer situation. Additionally, the lateral stabilizing capability at the rear of a fourwheel vehicle is effectively reduced by 50%, while a six-wheel vehicle will experience a loss of only 25%.

Again, as shown in Figure 1, numerous conditions need to be balanced or managed based on which factors are deemed most important for the individual needs of a fleet operator. For U-Haul, customer safety is the number one priority and tire placement is predicated by the need to maintain vehicle control under diverse conditions.

For this reason, it is much more important to mitigate a RAL situation on the rear of a four-wheel vehicle than it is to mitigate it on the rear of a six-wheel vehicle.

This condition reinforces the need to maintain the “best” tires on the rear of a four-wheel vehicle if at all possible. As mentioned previously, six-wheel vehicles do experience a similar situation, but to a much lesser degree.

Additionally, since modern vehicles are designed with a certain amount of overall understeer, a slight amount of oversteer caused by RAL on the rear of a six-wheel vehicle will result in minimal disruption of controllability.

For this reason, it is more important to mitigate a RAL situation on the front of a six-wheel vehicle. Therefore, it is desirable to place the “best” tires on the front or steer axle of six-wheel vehicles. mt

Bob de Kruyff is currently director of design and development controls at the U-Haul Technical Center in Tempe, Ariz. In this capacity, de Kruyff is responsible for the product development process and also serves as the primary interface between product engineering and the U-Haul legal group. He graduated from the General Motors Institute (now Kettering University).

After a long career with General Motors, de Kruyff brings his automotive experience with chassis systems and vehicledevelopment processes to the U-Haul organization.

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DashBoard

TransCore Canadian Spot Market Freight Index 2007-2011

2007

2008

2009

2010

2011

Percent Change Y-O-Y

Jan

173

214

140

171

222

30%

Feb

174

217

117

182

On the accompanying chart, the first five columns include monthly index values for years 2007 through 2011. The last column indicates the percentage change from 2010 to 2011. For the purpose of establishing a baseline for the index, January 2002 (index value of 100) has been used.

Canadian ground transportation rates continue to soften: CGFI

The latest Canadian General Freight Index (CGFI) shows a continued softening in ground transportation rates.

Apr 212 296 142 261

The index indicated the cost of ground transportation for Canadian shippers dropped for the third consecutive month in May 280 316 164 283

December, in contrast to fuel surcharges, which continue to rise.

Jun 288 307 185 294

The CGFI Total Freight Cost Index dropped 1.6% in December compared to November while the Base Rate Index, which exJul 219 264 156 238

cludes fuel surcharges, declined 2.5%. The index remains 2.9% Aug 235 219 160 240

above its April low point and 1.5% higher than last year’s results Sep 206 203 180 234

for the same period.

Fuel surcharges reached 15.7% in December, up from a Oct 238 186 168 211

September low of 13%.

Nov 227 143 157 215

“In December, we continued to see the cooling off of the domestic truckload sector,” said Doug Payne, president and COO Dec 214 139 168 225

% of Nulogx. “However, this was offset somewhat by a sustained TransCore Canadian Spot Market Freight Index 2007-2011 increase in fuel surcharges and a surprisingly strong domestic LTL result.”

Alan Saipe, president of Supply Chain Surveys, added: “While Year starts off strong for the price increases seen in the domestic truckload sector earlier in spot market load levels the year did not take, we are expecting that carriers will try again TransCore’s Canadian Freight Index recorded a 30% increase in spot market load levels in January compared to January 2010. January reached the for rate increases in early 2011.”

For more on the index, visit www.cgfi.ca. highest-ever recorded load volumes for the month when compared to the past five years, maintaining the trend from last month.

The month’s volumes were down barely more than a percentage point US truck tonnage begins 2011 from December 2010. on high note with strong numbers Equipment postings were at the lowest level for the month in more than Truck tonnage in the US jumped 3.8% in January, following a five years, which raises concerns about a shortage of capacity should the revised gain of 2.5% in December 2010. economy heat up.

The seasonally adjusted index reached its highest level since This is a continuation of the growth trend in spot market freight shown January 2008 during the month, according to the American in 2010. Last year, the Canadian Freight Index recorded an annual average Trucking Associations (ATA). of 233 points, exceeding the annual average volumes from each of the Compared to January 2010, the ATA reported seasonally adprevious five years. Load volumes for 2010 delivered exceptional year- justed tonnage was up 8%, the largest year-over-year increase since over-year increases and were 50% higher for seven consecutive months April 2010. Tonnage closed out 2010 up 5.7% compared to 2009 when compared to those posted during the downturn of 2009. Capacity for the full year. postings for 2010 were also down 13% from 2009.

Bob Costello, chief economist with the ATA, said the January TransCore’s Loadlink freight matching database constitutes the largest gains were impressive, especially in light of winter storms that Canadian network of carriers, owner/operators, freight brokers and inter- hammered much of the country. mediaries and has been available to Canadian subscribers since its inception “Many fleets told us that freight was solid in January, although in 1990. More than 13 million full loads, LTL (less-than-truckload) ship- operations were a challenge due to the winter storms that hit large ments and trucks are posted to the Loadlink network annually. As a result parts of the country,” Costello said. He added that the latest tonof this high volume, TransCore believes its Canadian Freight Index is rep- nage numbers indicate that the economy is growing at a good clip resentative of the ups and downs in spot market freight movement and early in 2011 and he expects a solid first half of the year. provides a historical account of the domestic and crossborder spot market “At this point, the biggest threat is the recent run-up in oil freight movement. prices, which could dampen consumer spending,” he said.

Mar

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Former editor and publisher Barry M. Holmes passes away Motortruck Fleet Executive is saddened to report that long-time editor and publisher Barry M. Holmes has passed away at the age of 73.

Holmes was a fixture in the 80-year history of this magazine, serving with the publication from 1973 to 1986. During this time, he raised the publication to prominence while reporting on the issues and technologies that shaped our industry such as INDUSTRY ICON: deregulation, drug and alcohol screening, the failure Barry M. Holmes of large unionization drives, cross-country owner/ was a fixture in the operator protests, the rise of intermodalism and the 80-year history of introduction of satellite tracking, electronic engines Motortruck, serving and 53-foot trailers. with the publication Holmes, an avid news reporter, dove into these from 1973 to 1986. issues with a striking passion, becoming famous for his exclusive cover features and his hard-hitting column. In his last year with the magazine, his column was awarded the gold prize at the prestigious Kenneth R. Wilson Awards, the Pulitzer Prize of business journalism.

“Barry had a real love for and deep fascination with this industry and all the issues and challenges it faced as it grew into maturity. Both his love and fascination were evident in his writing from issue to issue and with the sheer excitement he felt every time he reported on a new issue or scored another exclusive,” said editorial director Lou Smyrlis, who started as managing editor with the publication in the latter years of Holmes’

tenure. “But beyond that, Barry was a complex man who was informed on a variety of topics from economics to gardening and always cared for the little guy.”

Don Besler, former publisher of Motortruck, remembers many meetings where Barry stood his ground on all matters editorial. “He took on some absolutely unwinnable causes and you have to love him for it. He was a very unique character and a good man,” Besler said.

Ted Light, former publisher of Truck News, fondly remembers entering the industry some 25 years ago and meeting Holmes for the first time. At the time, Truck News was a competitor publication to Motortruck.

“At this time, Barry was the man, he was in top form, the dean of our industry, a widely respected writer whose opinions carried much weight.

Frankly, I was a little intimidated by him. Much to my surprise and delight, Barry was the first to welcome me aboard, a kind and all too rare gesture from a competitor. Through the years, Barry and I shared many beers and many conversations, his editorial integrity was unrivalled and often fierce yet as a man he was generous and thoughtful. He will be missed,” Light said.

Upon his retirement from Motortruck, Holmes became the owner of Apple Route Bed & Breakfast in Smithfield, Ont. with his wife of 47 years, Jane Marion (nee Cook).

He is survived by his wife and two children, Pamela Buttery (Brian) of Castleton, and Marcus Holmes of Toronto and his grandchildren, Claire and Anna Buttery.

Continued from page 27

Yoshio Shirai: For hybrids to become more widespread, customer awareness must become more important. Also, price and performance of the vehicle must satisfy customer requirements.

That is key.

Q: Will the new Hino truck have a variety of components available from manufacturers such as ArvinMeritor or Dana or will it be an allJapanese product?

Toshiki Inoue: We are aiming at significant cost reductions with this vehicle. We will not be using North American parts for the vehicle. We will be exporting parts from here. But as the volumes grow, we will likely start sourcing North American-built parts.

Q: Hino builds Class 8 trucks for the Asian market. Can we expect a Class 8 vehicle for the North American market from Hino?

Sumio Fukaya: The traditional strength of Hino relies on heavyduty vehicles and our engineers are keen to produce a Class 8 vehicle for the North American market. But we realize the current manufacturers in the North American heavy-duty market are very strong and so we prefer to establish our position in the mediumduty market. Only then can we consider the Class 8 market. At the moment, we have no specific plans for the North American Class 8 market.

Q: Have you been pursuing former GM dealers as a result of the demise of General Motors in the medium-duty market?

Sumio Fukaya: The fact that General Motors has exited the medium-duty market offers a real opportunity for Hino. An increasing number of dealers who used to handle the GM brand in the US are showing interest in taking on a Hino franchise. General Motors had a strong presence in certain parts of the market, such as ambulances, in which Hino wants to increase its strength.

Shin Nakamura: The situation in Canada is different. Hino deal-

ers are captive and handle only the Hino brand. By focusing on parts and service we hope to differentiate ourselves in the Canadian market.

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37

Transportation Complexity – (% of replies)

30%

Becoming less complex (6.3%)

Remaining about the same (12.5%)

InsidetheNumbers Customer Requirements – (% of replies)

30% That’s the percentage increase in spot market load postings

Becoming much more complex (25.0%)

Remaining about the same (18.8%)

this January compared to January 2010, according to TransCore’s Canadian Freight Index. It was the

Becoming much more demanding (18.8%)

Becoming more demanding (62.5%)

highest load volumes ever for the month of January, with volumes exceeding the previous record set

Becoming more complex (56.3%)

in 2008 by 4%.

Top Business Priority – (% of replies)

40%

38 33

30 32

25.9%

30%

20%

25

25

24 21

19 14

21

6

22.2%

10

0% Reducing Costs 2010

Maximizing Profitability

14.8%

15 6

2009

25.9%

20

10 11

2008

25

16

10%

Growth

Annual Transportation Spend – (’08 - ‘10 % of replies)

Maximizing Asset Utilization

Increasing Customer Satisfaction

7.4%

5 0

WHY TRANSPORTATION IS BECOMING MORE COMPLEX

3.7%

< $10 million

$10 - $25 million

$25 - $50 million

$50 - $100 $100- $250 million million

> $250 million

Shippers were more focused on cost reduction and profit growth in 2010 than in recent years, according to the findings of the sixth annual benchmarking survey undertaken by Dr. Alan Saipe of Supply Chain Surveys Inc. for CITA, with the sponsorship of RBC Capital Markets and the support of Transport Canada and Nulogx Inc. Almost 40% of shippers responding to the survey said they were focusing on maximizing profitability, which is double the number of respondents who said likewise just two years ago. For the first time since 2006, maximizing profitability had a higher business priority than increasing customer satisfaction. In addition, a quarter of respondents said they were focused on reducing costs. Combined, getting costs down and maximizing profits dominated the agenda for 63% of the group. At the same time, however, customers continue to become more demanding. Eight in 10 respondents to the survey felt customer requirements were becoming more demanding.

The survey found that the combination of needing to reduce costs while servicing more demanding customers produced growth in transportation complexity again this year. Only 6% of respondents thought their transportation function was becoming less complex while more than 80% found it was becoming more complex. On a positive note, shippers found that service quality in most modes improved in both 2009 and again in 2010. CITA members include many of the largest shippers in the country. About three quarters of the survey group spends more than $10 million on purchased transportation each year – 11% spend more than $100 million and 4% spend more than $250 million. The survey report is available for sale for $99 and can be ordered through Bob Ballantyne at ballantyne@bellnet.ca.

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