Issuu

Motortruck

Fleet Executive

C A N A D A ’ S

B U S I N E S S

M A G A Z I N E

SEPTEMBER/OCTOBER 2013

F O R

F L E E T

O W N E R S

SPECIAL INSIDE: Our 7th annual Green to Gold Supplement The latest on fuel efficiency programs and practices

THE TH THE E R RAC RACIA ACI ACIA AC CIA IA AL L PRO ROFILE OF OFILE FIL F Canada’s trucking industry is still whiter than most. Is there a racial barrier to overcome? Cover Sep FIN.indd 2

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City traffic, mountain passes and desert highways — they all put stress on a truck’s engine. Mobil Delvac™ heavy-duty diesel engine oil is formulated for longer life and helps protect against sludge and deposit buildup. To learn more, visit us online at mobildelvac.ca

Out here it’s survival of the fittest engine

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September/October 2013

Volume 82, No. 05

contents

COVER STORY 30 The Racial Profile

It’s something we don’t talk about. But we should. Canada’s trucking industry is still whiter than most. Is there a racial barrier to overcome?

Features 16 FEELING THE HEAT The slow North American economic recovery, quite unlike past recoveries, is not providing that rising tide of business which lifts all ships. What’s hurting smaller carriers in the Truckload market?

17-29 GREEN TO GOLD SUSTAINABILITY SUPPLEMENT 20 THE ” SMARTWAY” TO FUEL SAVINGS The SmartWay program is expanding across Canada and the benchmarking program is offering carriers a golden opportunity to improve fuel efficiency and reduce operating costs. It is here, it is free, and if you have not checked it out, you should!

24 INFORMATION YOU NEED, WHEN YOU NEED IT Reducing your fleet’s fuel consumption requires training and a lot of calculations to select the right solutions. The online Fleet Efficiency Tool places a library of information at your fingertips.

26 GET THE MOST OUT OF EVERY DROP How Natural Resources Canada is embracing e-learning in its revamp of the SmartDriver for Highway Trucking Program.

28 READY FOR THE THREE-QUEL? FleetSmart’s third Mark Dalton novel is now On Ice.

34 DELIVERING HEALTHY RETURNS – PART II Rising healthcare costs and a genuine concern for our aging workforce is making health and wellness programs a hot topic. In the second part of our series, industry leaders talk about the challenge of finding healthy eating options on the road.

Departments 6 THE VIEW WITH LOU

14 TAKING CARE OF BUSINESS

9 THE BOTTOM LINE

38 GEARED UP

10 THE HUMAN EDGE

45 DASHBOARD

12 RISKY BUSINESS

46 INSIDE THE NUMBERS

trucknews.com

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WHAT’S ON TRUCKNEWS.COM Brought to you by the editors of Truck News, Truck West and Fleet Executive

BLOGS

Dan Goodwill Career advice you can use straight from the president of Microsoft Canada

You said it... “As a small fleet owner (a dozen trucks) if I had 100% turnover I would be toast. My turnover is about 10%, and even that is too much. Our drivers don’t make huge money, about 55k a year, for about 10k long haul miles a month. However, we have almost all new Peterbilts, and trailers, and I try to do most of the deliveries and reloads. I treat my guys with respect, and keep them in the loop about issues regarding loads, dispatch, and most things relevant to their work. For their part, they work hard, take care of their trucks, and keep the BS to a minimum. This has worked for me for 30 years. Why can’t some people get this? On the other hand, if a driver is a serial quitter, I will not hire him (or her) only to be dumped later. I am very grateful for our drivers, who are a great group of people.” – DAVE ABBY IN RESPONSE TO RAY HAIGHT’S BLOG “100% TURNOVER SAME O SAME O”

Harry Rudolfs Why you better start the next driver revolution without him

Ray Haight Truth and time go hand in hand; reaping the results of our indifference to driver turnover

Web TV:

Transportation Matters FUEL FOR THOUGHT: Is there a better way forward on fuel surcharges? Lou Smyrlis reports on what you can find out at CITT’s Reposition 2013. TIME RIGHT FOR E-LOGS? An interview with Shaw Tracking’s Mike Ham reveals why adoption is on the upswing. CELEBRATING CANADA’S HARD WORKING TRUCKERS: Mackie Moving Systems reflects back on how Canada’s Just-in-Time sector has evolved.

SOCIAL MEDIA FIND US ON FACEBOOK facebook.com/trucknews

Fleet Executive editors are now on the radio! For a list of stations and on-air times go to truckerradio.com. 4 FLEET EXECUTIVE ❙ September/October 2013

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Motortruck

Fleet Executive THE VIEW WITH LOU

is written and published for owners, managers and maintenance supervisors of those companies that operate, sell and service trucks, truck trailers and transit buses. SEPTEMBER/OCTOBER 2013

VOL. 82 NO. 05 PUBLISHER & EDITORIAL DIRECTOR

Lou Smyrlis (416) 510-6881 lou@TransportationMedia.ca

Expect more, again Keep an eye on us. We will surprise you. We will inform you. We will impress you.

en years ago, when I was appointed editorial director of Transportation Media, I wrote that “in a business climate as turbulent and as quickly changing as today’s, to stand still is to fall behind.” The reason I was appointed editorial director back then was to emphasize an important evolution in our own change strategy: the bringing of all our transportation products under one umbrella. We were confident this strategy would place us in the best position to address the changing needs of our readers and advertisers and summed up what you should expect from us going forward in one word: MORE Today, I’m writing to announce another appointment and a further evolution of our change strategy. As of this issue I have the honor of replacing my mentor and friend Rob Wilkins as publisher of the Trucking Group within Transportation Media. After more than 30 years in the publishing industry, Rob has decided to retire. I wish him well in this next chapter of his life and owe him a great debt of gratitude. Rob led our group through great change and steered us through the turbulence of the worst recession since the Great Depression. It’s a testament to his leadership and the wisdom of our change strategy that while other industry publishers were forced to shut down magazines and some media outlets disappeared all together, we not only survived but thrived. We are larger today than a decade ago. On that day 10 years ago Fleet Executive became part of an expanded family of editorial products which included, Truck News and Truck West, the industry’s best read newspapers, Canadian Transportation & Logistics, which addressed the needs of shippers; a research arm to gather objective, fact-based information on key industry trends, two Websites and two weekly newsletters. For the first time our five editors and our army of professional writers and industry experts across the country began working together towards our mandate to provide our readers and advertisers with

FEATURES EDITOR

Julia Kuzeljevich (416) 510-6880 julia@TransportationMedia.ca CREATIVE DIRECTOR

Roy Gaiot rgaiot@bizinfogroup.ca

the industry’s best source of information on the issues that drove their decision making. By working together we felt there was no other news source in the Canadian transportation market which could match our reach and access to resources. By leveraging our strength in numbers we were able to pioneer new ways to reach out to you. Our award-winning WebTV show, TMTV, is not only a favorite on our website but is approaching half a million views on our YouTube channel. We moved up to a daily e-newsletter to keep you up to date on the latest news happenings and added several other newsletters for those with specific interests. By working closely with our shipper publication we were able to provide valuable insights into what is driving your clients’ decision making. It’s safe to say we have conducted more research on the transportation industry over the past 10 years than any other industry organization by a long stretch and I’ve been asked to share that information with shippers and carriers across Canada and the US (BCTA’s Managing for Profitability conference in Surrey, BC, is next). Our own Surface Transportation Summit is becoming recognized as one of the best educational and networking opportunities in transportation today. And our social media presence – Twitter, Facebook, LinkedIn – is second to none in the industry. My mandate as publisher and editorial director (hey, I love my old job too much to give it up, although a new editor, who will take over the dayto-day running of Fleet Executive, will be named soon) is to take the next steps towards becoming a true multi-media provider of industry information. And I plan on being very busy in the years to come. I’m going to end this column by repeating what I said 10 years ago. We made it happen then, we’ll do so again. Keep an eye on us. We will surprise you. We will inform you. We will impress you. What you can and should expect from Fleet Executive and our group of transportation magazines can be summed up in a single word: MORE. FE

ADVERTISING CREATIVE DIRECTORS

Carolyn Brimer Beverley Richards

CONTRIBUTING EDITORS

Ken Mark James Menzies Ian Putzger John G. Smith Carroll McCormick Harry Rudolfs 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 80 Valleybrook Drive Toronto, ON M3B 2S9 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. PUBLICATIONS MAIL AGREEMENT 40069240 Return Undeliverable Canadian Addresses to: Circulation Dept. – Motortruck Magazine, Suite 800 – 12 Concorde Place, Toronto, ON M3C 4J2 USPS 016-317. US office of publication, 2424 Niagara Falls Blvd., Niagara Falls, NY. 14304-0357. Periodical Postage Paid at Niagara Falls NY USA. Postmaster send address corrections to: Motortruck, PO Box 1118, Niagara Falls NY 14304. Member Canadian Business Press. Subscription Inquiries – (416) 442–5600. We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the Department of Canadian Heritage. ISSN Number 0027-2108 (print) ISSN Number 1923-3507 (digital)

Lou Smyrlis, MCILT, Editor • lou@transportationmedia.ca

6 FLEET EXECUTIVE ❙ September/October 2013 Member/Canadian Business Press

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MAIL BAG

Clean up forced dispatching In his blog “US law, Canadian law” blogger Kevin Snobel wrote about a Massachusetts carrier being ordered to pay a driver $131,533 after firing him for refusing to drive after reaching the federal limit on hours. Snobel commented “I hope this can also be applied in Canada. It would clean up some of the forced dispatching going on and the mistreatment of drivers.” Here is what one reader had to say in reply: Who the heck would want to work for an irresponsible carrier? I interview an average of 6-10 drivers every week and I’ll tell you, the good professional drivers with experience and a clean driving record are asking me many questions. The questions range from: ”Will I be forced to work over the legal hours of service?” to “Will I be forced to drive a truck or pull a trailer that is not fit for the road? If I refuse to drive the unsafe truck, will I be reprimanded?” and “Will I be able to spend time with my family on the weekend?”,”What type of schedule will I be working?, “Am I home most nights?” etc, etc. I’ve had 3 drivers in the last 6 months get up and shake my hand and say “thanks but no thanks” because of our schedule. Good drivers have the right to ask all of these questions and shop around for the “best deal” because EVERY carrier out there needs drivers. If you don’t,give it a few weeks! Let’s start treating our drivers like human beings and not like monkeys! They just want to work an honest day for an honest day’s pay without being forced to break the law. Drivers need to put their foot down and say NO to breaking the law!! End of story. Mike

An argument for uniformed drivers Harry Rudolf’s blog “A slipshod argument for uniformed drivers”, making the case for uniformed drivers, received a mixed bag of comments. My thoughts on uniforms? If an employer wants to play dress-up, go play Barbie! As long as drivers look reasonably presentable (which I do), then there’s no reason for a uniform. Uniforms only serve to stroke the ego of the employer. Put it another way: the day my employer introduces a uniform is the day I find another employer. If your people are smelly and dirty, then maybe a uniform isn’t the solution: maybe you should re-examine your hiring practices. Maybe your company is so desperate for people that you’ll hire anyone. I mean really, you can’t trust your 8 FLEET EXECUTIVE ❙ September/October 2013

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employees to dress themselves, yet you hand them over the keys to a $150,000 truck loaded with your customer’s merchandise? What’s wrong with this picture? The overall problem in trucking is that companies do not pay enough, or treat their people well enough to retain good, motivated employees. A uniform is just another in a long line of authoritarian measures to deal with this. Have a problem with poor work ethics, get a Qualcomm system to record your drivers’ every move; have a problem with drugs? Make your employees pee into a cup. How about filming your drivers? just in case… I have a better idea: treat your drivers well, pay your drivers well, provide a good service, and you’ll have a happy company that won’t need uniforms. But I’m afraid that idea went out decades ago. Andrew

I only sell my time and skills. The company does not own me at any time. If I wish to sell my time and they wish to buy some, I work. I dress in a clean and decent manner because that is how I wish to present myself.When the company president and executive cadre start running around like Mike Malone clones, I’ll take a second look at the matter. Rick Gregoire

I guess I am old fashion, but a driver or a dock man in uniform is to me more professional and provides the satisfaction that my freight will be handled professionally. It is just like having a nice clean trailer back up to my dock Anything less I made a remark to my sales rep. or I changed companies. Douglas Macfie

To your health James Menzies’ blog “My commitment to a healthy lifestyle” about his renewed commitment to eating healthy, exercising and participating in NAL Insurance’s Healthy Trucker program earned immediate industry support. Here is one of the comments: Good for you to commit to this program. If you need motivation, just look at your three year old and set your sights on future goals, like walking her down the aisle at her wedding. It’s a very strong motivator that works for me. All the Best! Tat Wong

To read and comment on our industry blogs, visit blog.trucknews.com. trucknews.com

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BOTTOM LINE

Establish your pricing power Even one percentage point can be as valuable as a nugget By Mike McCarron

he need to fill the widening social media pipeline with “content” has everyone writing studies. As a regular columnist, my inbox is inundated with white papers, surveys, and reports from consultants that almost never get read. However, during a recent email purge I came across two studies written almost 10 years apart that reveal a lot about transportation pricing. The first, done in 2003 by McKinsey & Co., revealed that a 1% increase in price will generate a whopping 8% increase in operating profit. Yep—one stinking percentage point is as valuable as a gold nugget! Nine years later, a Simon-Kucher study showed that pricing pressure is higher in logistics than in other sectors, and that three quarters of us don’t get the prices we want for our services. Apparently, protecting us from ourselves is a problem. Not all is bad. This same Simon-Kucher report also revealed that several logistics companies possess “pricing power”: the ability to increase prices without losing any business to direct competitors. These companies average 17% higher margins than their competitors. Another whopping number! How do you establish pricing power in your business? Here are some things to consider:

It’s not about price I can almost guarantee that your sales team won’t agree with the findings of a recent Nulogx report that surveyed close to 2,000 shippers. It shows that price is not their No. 1 priority. It’s still on-time pickup and delivery. For decades, customers have told me that our industry puts numbers on the table long before they do. Sales reps who think it’s all about price tend to lead with price, giving away their pricing power. Keep the cut-rate proposals in the briefcase and build systems that get freight delivered on time. Those 1% increases will follow.

It’s about service What do people say when you leave the room? As long as rotten service batters your brand, you have zero chance of achieving pricing power. In fact, bad service leaves you with just two options: commit to fixing your problems or ride the “Cheapie Express.” A low rate may attract business but it won’t help you keep it. There will be no pricing power without great service. trucknews.com

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90% rule There’s a rule of thumb in this business that the customer will take a rate increase over switching to another carrier 90% of the time. Customers know the cost of change is always greater than any anticipated savings. Seriously, finding another carrier to haul freight is a massive, expensive pain in the ass. The fact that customers don’t really want to change is an important source of pricing power. If you think your customer might actually switch, lay out why you’re worth the increase—and remind him of the expense and hassle of moving to another carrier. Surprisingly, the odds are in your favour.

Don’t be a doormat Pricing complexity is a fact of life in any business, not just ours. You’re not the only one getting pounded daily for lower prices. Your customers prey on every weak supplier they have. They’re smart and know from experience who will cave. Threatening to take their business elsewhere is simply a ploy to cut back their costs and your gold. If you can’t hold your ground with your customer, you’ll be a doormat in his eyes. Once a doormat, always a doormat! Stand up for yourself. Yes, a customer will gripe about even the most well-reasoned price increase, and yes, you risk losing the deal. But don’t be afraid to lose. There’s a great chance (90%!) that you’ll win. If you can earn the customer’s respect in the process, you’ll establish pricing power and seed the type of long-term business relationship everyone wants.

C-suite commitment When the three-piece suits are active in pricing, companies have a 29% higher EBIDTA margin, according to SimonKucher. Yet only 28% of logistics companies say C-level involvement is common. When it’s your job to produce gold, you need to go upstairs to the mine. I’ll talk about how your C-suite can help boost pricing power in my next column. FE

Mike McCarron was one of the founding “M”s in MSM Transportation before the company was purchased by the Wheels Group. Based in Toronto, he currently works for Wheels in mergers and acquisitions and can be reached at mmccarron@wheelsgroup.com. Follow Mike on Twitter @AceMcC. September/October 2013 ❙ FLEET EXECUTIVE 9

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THE HUMAN EDGE

DEAL WITH THE “PERFECT STORM” 4 tools to tackle your fleet’s HR challenges By Angela Splinter, CEO, Trucking HR Canada

he impending exodus of baby boomers from Canada’s workforce, combined with a limited number of workers to replace them, is forcing every industry to re-focus Human Resources strategies. But the impact on the trucking industry is particularly acute. “The magnitude of the demand for goods movement, the resulting demand for truck drivers, and the particularly unfavourable demographic profile of truck drivers means that the trucking industry will be the first to feel the effects of this demographic tsunami,” Conference Board of Canada researchers conclude in Understanding the Truck Driver Supply and Demand Gap and its Implications for the Canadian Economy. Other people have gone so far as to call the situation a “perfect storm”. Let me offer a popular quote to complete the metaphor: “The only safe ship in a storm is leadership.” This is where Trucking HR Canada comes in. As a national partnership-based organization that develops, shares and promotes the trucking industry’s best practices in Human Resources (HR) and training, we deliver practical tools and strategies to address underlying HR challenges. And, as the above-mentioned research demonstrates, the business case for this support has never been stronger.

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Consider these four tools recently unveiled by Trucking HR Canada to help employers address several issues: 1. ANNUAL FLEET AWARDS

The Canadian Trucking Alliance’s Blue Ribbon Task Force report highlighted the need to promote positive HR practices such as priorities around driver wellness, security, and competitive compensation packages. The recently unveiled program will recognize Canadian fleets which take extra steps to support their employees and operators, and draw attention to these efforts. Programs like this will be particularly important as employers compete for the next generation of workers. Trucking HR Canada’s recent research report, Today’s Youth, Tomorrow’s Drivers: Attracting Canada’s Youth to Opportunities in Trucking, identified several misconceptions about the trucking industry’s safety and working conditions. By recognizing fleets with excellent safety records and good working environments for drivers, we help future employees appreciate the professionalism that exists. And, the program also offers a valuable tool to support immediate recruiting efforts.

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RISKY BUSINESS

A new column offering common sense, cost-effective (or just plain simple) solutions to help carriers turn safety into a profit centre.

WHAT IS A LOSS PREVENTION/ SAFETY SURVEY? And what you’re missing out on if you consider it as just a compliance audit By Rick Geller

ecent discussion surrounding insurability and how insurance rates are determined provided an interesting insight into the world of insurance. Better than that, they offer an opportunity for progressive carriers to leverage the knowledge to bring additional control over their insurance costs. But there is an additional aspect, not mentioned in any of the discussions, which can provide carriers with another opportunity to influence their relationship with their insurer and potentially lower their premiums. Loss prevention, or safety, surveys are an integral and important part of the insurance process. They heavily influence both the decision to provide insurance coverage and the rate charged. Most commercial fleet insurers employ Loss Prevention/ Safety Advisors whose primary function is to meet with the carrier’s representatives, evaluate operational and safety management practices, grade the risk (measured against both peer companies and industry best practices), and provide safety management support in the form of suggestions and recommendations for improvement. More progressive insurers will also ensure that they have solutions available for most, if not all, of the safety management gaps identified. So, what is the purpose of the Loss Prevention/Safety survey and how can you influence the outcome? Many carriers mistake the purpose of safety surveys for compliance audits, focusing attention where the benefit is minimal. Compliance should be considered table stakes … it’s the price of admission to the trucking industry! While the advisor will evaluate carrier profile scores and how the carrier manages compliance issues, it is only one element that is examined. Often, the carrier profile scores act as a barometer … indicative of the effectiveness of the carrier’s safety management practices for other key management profiles, such as driver management, equipment management, freight management, and operations/safety management. For example, if the carrier profile shows driver violations for offences related to inappropriate behavior (speeding, seat belts, etc) and equipment violations for conditions that could have been corrected during a pre-trip inspection … it could alert the Advisor to examine how drivers are monitored over-road when they are away from the terminal. Regardless of which management profiles the Advisor is evaluating, the process is as follows:

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• Assess current management practices • Identify safety management gaps between industry best practices and the carrier’s safety management practices • Determine the receptiveness of the carrier to risk improvement suggestions and/or recommendations • Evaluate the likelihood of risk improvement Ultimately, the Loss Prevention/Safety Advisor is responsible to provide the Underwriter with their opinion on two key issues: 1. Is this a carrier that is acceptable to the insurer and should be provided with insurance, and; 2. How does this carrier rate when compared to carriers of similar size and operations? The former impacts the insurer’s decision whether or not to offer coverage. The latter impacts the premium charged. In the past, carriers were expected to manage safety by identifying drivers who were involved in preventable crashes, or accumulated violations, and providing them with refresher training and/ or discipline. This is a somewhat myopic approach in that it makes the assumption that the driver was the only player in the offence. Expectations from both the regulatory and legal communities are evolving and moving away from this simplistic “blame the driver” approach. This forms the basis for the new expectation … when there is a preventable crash or a violation accumulated, does the carrier re-evaluate their safety management processes to determine whether or not there are contributing factors, as well as, are improvements in safety management needed to prevent this type of thing from happening in the future? Few carriers realize the importance of fully engaging the Loss Prevention/Safety Advisor to leverage their ideas and expertise to shape your safety management program. Is there a better way to demonstrate to your insurer that you want to build a “win-win” partnership and to signal your intention that you expect them to be an active participant in your risk improvement efforts! FE

Rick Geller, CRM has been providing innovative and cost-effective risk management solutions to the trucking industry for more than 30 years. He serves on the board of directors for the Canadian Trucking Human Resources Council, is the vice-chair of the Toronto Chapter of the Fleet Safety Council and vice-chair of the Fleet Safety Council Conference Committee, as well as an Executive Committee member for both the Ontario and Toronto Regional Truck Driving Championships. trucknews.com

13-10-10 1:22 PM

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FLEET SAFETY COUNCIL 22nd Annual Educational Conference October 24-25-26, 2013 Kitchener, ON

PREDICTIVE BEHAVIOUR ANALYSIS

Driver behaviour is a causal factor in 93% of all crashes and 96% of the triggers for roadside inspections Do you want to: • Lower your CSA Basic Scores • Reduce crashes and violations • Improve driver retention Bonus Session - Exploring Transportation Careers Showcasing drivers, mechanics and logistics... discover how to attract young people to consider transportation as a career.

Learn: • How driver behaviour links to crashes/violations • How to recognize and manage driver behaviour before the crash happens • How to transform driver performance management into an effective and sustainable behaviour change program

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13-10-10 1:22 PM 13-06-04 11:02 AM

TAKING CARE OF BUSINESS

You want no part of this “big business” Think fraudsters only affect a small number of people- think again! By Mark Borkowski

e all heard the horror stories where a fraudster has put a mortgage on a house without the homeowner’s knowledge. Only when the loan goes into arrears does the homeowner suddenly find out that the lender is ready to take action. The homeowner is left with a major problem trying to convince the lender not to take foreclosure action. Similarly, the commercial section has seen its fair share of fraud and scam artists. This includes phony leases, security pledged for loans not owned by the company, same security pledged for loans in different companies, false financial statements and purposefully inaccurate descriptions of assets. There are many more of these types but it gives you the idea of how creative the fraudsters are. Especially in the commercial sector, these scams are sometimes thought of as a “victim less crime” — after all, the only one hurt is a big bank or lender who has to deal with the ramifications and more than likely, a significant loss! Well the ramifications are wide and unfortunately it tars everyone. If a business person wonders why it takes so long to get an answer from a bank or lending institution, we outline all the steps now in place to help guard against this menace. The banks have a “Know your Client” policy which impacts every client in the bank. If you have dealt with the bank, you know now that identification has to be presented including copies of your passport, driver’s license or other recognizable approved sources of identification. The identification maybe requested again for follow-up to ensure there has been no change especially if additional loans are requested. An interesting side note: Banks no longer treat Bank Drafts or Certified Cheques as cash. They now will wait 5 business days before crediting the account with the funds. You will see signs posted in the branches. When I asked why, the response was tersely worded — fraud. Banks and lenders are now contacting Accountants to verify financial information outlined in the financial statements provided in the loan application. This not only includes verification of selected information including revenues, profit and balance sheet items but also includes information on notes. Fraudsters have been very creative in preparing real looking financial statements which bear no relation to the actual re-

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sults. In addition, critical notes have been omitted or significantly changed especially “going concern notes”. In addition to completing a signed personal net worth statement, Credit checks, corporate and personal, are made with close attention to what is outstanding and corresponds with the statement of personal net worth. There are also criminal background checks completed, as well, on all shareholders. Visits to sites and pictures of the assets with dates have to be made and checks with the serial numbers to verify that the equipment being pledged for security matches the bill of sale. Checks are also made with the landlord and leases reviewed to ensure there is a valid lease. Without getting too deep, there have been store fronts set up with equipment in wrapped condition in industrial parks. When the account officer follows up with a visit after disbursement, a big surprise awaits as he finds the premises vacant and equipment gone! Real estate agents, lawyers, accountants and others in the chain now have responsibility to carry out the same type of due diligence. This, of course, lengthens the time that it takes for a deal to complete. And of course, time is money, so the costs increase! All these procedures are over and above the standard due diligence required including evaluating financial capability, performance, environmental compliance and source deduction verification checks. It is frustrating for all especially the good clients, the bank account managers and all trying to get a deal or financing completed. The pendulum never swings back to the center and as such, there will remain significant checks to be completed as part of the financing process due to the amount of fraud that has been attempted! As can be seen, fraud has deeply impacted the way transactions are completed and we are all now paying for the actions of a few! FE

Mark Borkowski is president of Mercantile Mergers & Acquisitions Corporation. Mercantile is a mid market mergers & acquisitions brokerage firm. You can contact Mark at: mercantilemergersacquisitions.com trucknews.com

13-10-11 8:42 AM

Spend more time on the road and less time worrying about the bottom line. Castrol’s full line-up of Heavy Duty lubricants are field-tested and fleet approved. Beyond providing your equipment with extreme protection and extended drain intervals, you’re decreasing maintenance costs and looking out for your bottom line. Less fuel, fewer top-ups and more time on the road all add up to lower operational costs and a more efficient fleet. For more information on Castrol’s Heavy Duty line-up call 1-888-CASTROL or visit www.castrol.ca

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PROFITABILITY

FEELING THE What’s hurting smaller carriers in the Truckload market? By Dan Goodwill

he slow North American economic recovery, quite unlike past recoveries, is not providing that rising tide of business which lifts all ships. An FTR survey conducted this year illustrates this trend. Dr. Richard Mikes, managing partner of Transport Capital Partners, spoke about the survey findings, looking specifically at the impact on the Truckload market, during a recent webinar hosted by Stifel Nicolaus & Company. The freight rate market as a whole started switching directions about a year ago, according to Mikes. The share of carriers reporting that their freight rates are increasing dropped from a high of about 80% to a low of about 10% during the summer.

16 FLEET EXECUTIVE ❙ September/October 2013

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“We would classify rates as being stuck in neutral. Three quarters of the firms are now reporting that rates have remained the same, certainly a massive change from a year ago,” Mikes said. The survey segmented carriers into two groups, those under $25 million and those over $25 million in revenue and the data reveals “a real divergence in rate changes.” Though both large and small carriers are largely keeping rates the same, there is a spattering of smaller carriers reporting rate decreases of 5%, 10%, or even 15%. “Those numbers total only 18%, but they still tell the story. The pressure is on the smaller carriers,” Mikes said.

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GREEN to GOLD

Sustainable Transportation Practices: New Programs Delivering New Opportunities

18 FLEET EXECUTIVE â?™ September/October 2013

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s a country, our cities and resources are so geographically dispersed and we so dependent on trade that we demand a great deal from transportation. In fact, much of our country’s success as a trading nation, and many of the advances in supply chain management that have driven that wealth over the past two decades, have a lot to do with improvements in how we manage transportation. Yet the very success of our transportation system is what’s leading to its greatest challenge: its sizeable greenhouse gas footprint. But in every challenge there is opportunity. That’s something we’ve strongly believed since publishing our fi first rst annual Green to Gold supplement seven years ago. Back then sustainable transportation practices or “green transportation” as most called it, was just beginning to become a topic of discussion in the boardrooms of most major shippers and carriers. When large players such as Wal-Mart, IKEA, Mountain Equipment Co-op, Home Depot and Unilever began to move towards more sustainable supply chain practices, carriers began to take notice. For our part, we believed that with the transportation sector being the second largest source of greenhouse gas emissions in Canada, it was prudent for the industry to become actively involved in devising the new way forward rather than to be left reacting to eventual shipper and government edicts. Seven years later we are seeing sustainable transportation practices evolve beyond the boardrooms of pioneers such as Bison Transport and Robert Transport to carriers of all sizes. Carriers are coming to understand that investment in fuel effi efficient cient products, practices and training for their people pays off for the environment and the bottom line. Our goal then, and now, is to inform fl fleet eet managers and executives about the latest technologies, programs and strategies being used to reduce the carbon footprint. We hope you enjoy our latest Green to Gold supplement on sustainable transportation practices. As we’ve mentioned many times before, if you take the time to do it right, you can turn green into gold. Lou Smyrlis | Editorial Director

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GREEN to GOLD

SmartWay Program Expands into Canada

Benchmarking offers opportunity to reduce operating costs, gain fuel effi efficiencies ciencies

By Julia Kuzeljevich

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housands of trucking companies across Canada and the United States are partners of the SmartWay Transport Partnership. This partnership is a public/private collaboration between Natural Resources Canada, the U.S. Environmental Protection Agency and the freight transportation industry that helps freight shippers, carriers, and logistics companies improve fuel-efficiency and save money. It is here, it is free, and if you have not checked it out, you should! “In terms of the trucking sector, SmartWay gives fleet managers a sense of how their fleets compare to their competitors and how they can improve their fuel efficiency,” said Manjit Kerr-Upal, Chief, SmartWay, Natural Resources Canada. Benefits to Canadian truck carriers registering with SmartWay are many: Ø they will be able to reduce operating costs and emissions; Ø attract business from SmartWay shippers; Ø benchmark themselves against trucking companies with similar fleets; Ø track and improve fuel efficiency; Ø and make a positive contribution to corporate culture. To register, carriers can download the SmartWay Truck Tool, complete it with data on their fleet activities and operations, and submit it to Natural Resources Canada. SmartWay Canada is currently focusing on motor carriers, logistics providers, and shippers. However, SmartWay will eventually include the freight transportation sector as a whole. Tools for the marine, rail and aviation sectors are planned for the future. The SmartWay Transport Partnership was developed with industry for industry. This long standing tradition will continue as SmartWay expands into these new sectors, said Natural Resources Canada. The Canadian program is the same as the U.S.’s. The only differences are that in Canada, the measurement units are metric and all material is available in English and French. The Partner List includes companies from both Canada and the U.S. regardless of which country they register in. This list is posted on both the EPA and NRCan websites. Describing his experience with the SmartWay program, trucknews.com

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Gaétan Aubin, IT Manager and Compliance Officer with L’Express du Midi Inc., said it allows the company to make comparisons and to have a sense of their fuel consumption, and where the highs and lows occur. It’s also become a metric that more and more clients are asking for, he said. He wouldn’t make any modifications to the tools and makes good use of the guide in which he has underlined a lot of the information. “After a while we got a handle on how the program was set up and it’s pretty straightforward now,” said Aubin. Chad MacKay is in charge of fuel management at Seafood Express, which came to the SmartWay program via the company’s involvement with the EcoEnergy for Fleets program. “Registering took a little longer the first time because I was still fairly green. This year it took an hour at the most. I sat in on a call with their (SmartWay’s) tech team. They were asking me similar questions regarding changes. I didn’t find the system that hard to navigate through but the only thing that threw us off was the metric system as our measurements were in feet,” he said. Benefits of the program, he said, are increased knowledge around fuel efficiency and performance monitoring. “SmartWay opened up a few more areas of where to look for improvements. We’re trying to implement a rewards program for idling-we started slow with gift cards and small items of clothing. Once we get it all pieced together we’re looking at the possibility of some monetary options,” said MacKay. Having the SmartWay tools in place offers an easier way of keeping track of things, he said. “We did have quite a few career truckers who had never been monitored before. Now we post a weekly report of miles per gallon and idle time — this has created a little bit of a culture. We’re getting a lot of feedback from drivers on things they’d like to see implemented. I’d like to see everyone get on board with it,” he said. “Everyone seems to be talking SmartWay, fuel efficiency, idling, so it’s kind of created a culture.” Lew Davis, Safety & Compliance, and Mike MacDonald, Operations Analyst, with Skelton Truck Lines Ltd., said that the benefit of a program like SmartWay is it’s like the ISO standard: it’s a symbol that shows what you do as a fleet and it’s recognizable to customers. September/October 2013 ❙ FLEET EXECUTIVE 21

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IN THEIR WORDS Industry stakeholders weigh in on Smart Driver for Highway Trucking program “We spent some time reviewing the material and making sure it fits the industry of today when it comes to learning perspectives, objectives, and technology,” said Bison Transport’s Garth Pitzel, Director, Safety and Driver Development. As an industry stakeholder involved in the consultation process, Pitzel noted that Bison Transport has already built a lot of its own inhouse training but wanted to be part of redeveloping Smart Driver for Highway because “we believe we have a responsibility to make the industry better and that issues are being addressed in an effective matter. Programs like these are important to the long-term success of our industry,” he said. “For the smaller carriers without training resources having a good program they can obtain raises the benchmark from a safety, image, environmental perspective. That’s why we got involved with the program. It’s important to give back to the industry and create benchmarks and resources not only in Canada but in the wider North American market,” said Pitzel. He noted that an e-learning environment would be a huge win for the trucking industry where drivers who are absent from their home terminals for Garth Pitzel significant periods can learn on their own time. For the e-learning materials to be relevant and to stick, however, Pitzel stressed that modules that touch on fuel efficiency and reduced idling must also be part of everyday company culture. “If you as a business are not talking about idle time and fuel efficiency, that training is useless. You have to continue to talk about those processes. You need to keep following up and continually support the training in the culture of your business,” he said. E-learning materials must also have a built in feedback process so that there is access to information and to answers whenever any questions come up. The best trainers, he said, are the people who have a passion for what they’re talking about, and an ability to articulate how to be a safe driver. “When that comes through and when they can transmit the importance of that issue, that is going to be what’s effective,” said Pitzel. John Bortoluss, Driver Trainer, Truck Training Schools of Ontario Inc., said he would like to see the program monitored “and see if the program is getting the results we want. Saving fuel was never a consideration in the past by anybody. We have to make new drivers understand that saving fuel saves the environment and if fuel costs are down, wages will go up,” he said. He said he would also like to make the course part of the licensing program for new commercial drivers.

22 FLEET EXECUTIVE ❙ September/October 2013

Truck Lines Ltd. has long been actively involved in environmental initiatives in order to be as efficient as possible. “Nowadays it has also become a common question in the bidding process, whether or not the fleet is involved with SmartWay,” they said. With a lot of long-term customer relationships already established at the company, Davis and MacDonald said that it’s important for the Skelton customer base to know when they are deciding what carrier to use who is really putting the effort into it, and “SmartWay distinguishes that you are making this effort. When you first see the info it doesn’t make a lot of sense, but the webinar walks you through the tool, and the partner account managers are very helpful, and you can contact them either by phone or e-mail,” they added. Once Skelton has implemented its new dispatch software system it will be easier to complete the tool, MacDonald added. The company is also in the process of adding aerodynamic devices to trailers so improvements will be ongoing. “It took about a week of gathering info and calculating it. This was perhaps a little longer because we didn’t have that info electronically available in terms of revenue/km and empty miles. If there was also a way to focus on and reward people for better maintenance of the trucks as well as cleanliness and appearance it would be good for industry as well,” he said of the SmartWay program. Each year’s submission of Skelton will demonstrate, in real numbers, the actual improvements in fuel efficiency as a result of their initiatives and investments. “From a Canadian standpoint, SmartWay is doing a great job - it takes a bit of time to get a handle on things and roll things out correctly,” he said. “In 2008 environmental issues took a back seat to the economic crisis, but now the concentration is back again and SmartWay is definitely something worth doing. Like with the Canada’s Best Managed Companies criteria, there’s a point where you want to drive everyone to do this. You want to make sure the standard is high in the industry,” added Davis. Supply Chain & Logistics Association Canada (now part of The Supply Chain Management Association or SCMA), has been working with Natural Resources Canada for almost a year to generate visibility for the SmartWay program in Canada, said executive director Alison Toscano. “Through a series of case studies and events, we have connected with many companies in transportation and 3PL. There is a high level of adoption of technologies and focus on driver training shown by industry leaders. These companies have not only realized substantial fuel savings, but have also reduced their GHG emissions,” she said. If you are interested in fuel efficiency, setting your company apart from your competitors and understanding how your fleets compare, check out SmartWay. FE To register or to learn more, contact the SmartWay team at: smartway.nrcan.gc.ca 1-855-322-1564 smartway.canada@nrcan-rncan.gc.ca trucknews.com

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GREEN to GOLD

By Carroll McCormick

A Smart Way to Reduce You The online Fleet Efficiency Tool places a library of information at your fingertips

hose tasked with reducing their fleet’s fuel consumption face many technology and training choices and a lot of calculations before they can select solutions that will be cost-effective for them. Recognizing this challenge, Natural Resources Canada developed the Fleet Efficiency Tool (FET), an on-line decision-making tool and resources centre to determine energy savings, create action plans and measure their impact. Available free, it is designed to help freight and municipal fleets analyse the relative merits of adopting various fuel-reduction strategies. Fleets supply their actual fleet data and the FET calculator uses average fuel savings obtained from research trials. Possible strategies include fuel-saving technologies such as aerodynamic devices, low rolling resistance tires, driver training and anti-idling programs. “You will see a lot of calculators on the market but they give estimated values. We wanted actual values. We gathered everything there is in North America on vehicles to see what we could do with that. We examined all the information available on the market for trailer skirts, etc. Our engineers and economists studied all the research projects and tests results. This is what the calculations are based on,” explains France Pelletier, senior manager, ecoENERGY Effiency for Vehicles, NRCan. NRCan also assembled a library of information on fleet efficiency topics to complement the FET calculator. They are divided among three vehicle classes: light-duty, medium-duty and heavy-duty vehicles. The many topics include aerodynamics, driver training and behaviour, idling, oils and lubricants, freight logistics and vehicle selection. There are many subtopics and very useful explanations to help readers understand what solutions might be relevant to their situation, because there are few one-size-fits-all solutions. 24 FLEET EXECUTIVE ❙ September/October 2013

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There is also a small glossary with definitions for some of the terms found in the FET library. Those who want to access the FET website, fleetefficiencytool.ca, must first email Bronson Consulting Group, the company that built the calculator and website and populated them for NRCan. Bronson will supply a site user name and password, and for those who want to use the tool, an individual account user name and password. To briefly illustrate how the FET works, imagine a fictitious carrier with some incity delivery trucks and a few long-haul trucks. The carrier wants to reduce his fuel consumption. Using a quick reference guide called the “Place Mat” that takes users through all the steps in the correct sequence, this is roughly what the carrier would do: Armed with his user names and passwords, he first enters some truck information into the FET calculator, or he might simply upload the information from his trucknews.com

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company spreadsheets; e.g., truck model, engine size, fuel type, city and highway kilometres driven and the amount of minutes spent idling per day. The FET calls this step Calculate Baseline. After reading up on some of the possible solutions, a good assortment of which is available in the FET’s Resources

data, our fictitious carrier has it easy. Using the FET on a fleet without neat and tidy data is quite another matter, however, as Allison Ashcroft, senior planner Environmental Issues, Department of Sustainability, City of Victoria, discovered. But even though the FET required input that she couldn’t provide right

to talk about fuel management, fuel efficiency and more,” Ashcroft explains. “Right now what the FET shows me is that I don’t have enough good data to put into the FET for it to deliver good information to me. But the FET and the training did highlight that our best strategy is to reduce idling and enhance our fleet

our Fuel Costs & Tools section, the carrier uses the calculator to test drive different potential solutions to see what savings each offers. The FET will calculate the energy savings and greenhouse gas reduction based on the truck use data supplied and the relevant research result data stored in the FET. This step is called Calculate Energy Savings. Having figured out the best solution for his fleet, say, trailer side skirts for the long-haul trucks to reduce aerodynamic drag, and a battery-powered system to

away, such as accurate and complete odometer data, she found that the FET helped focus the city’s attention on ways to begin reducing fuel consumption. About three years ago Ashcroft began taking steps to report the city’s carbon footprint to the provincial government. Looking at the city’s vehicle fleet, she recalls, “It became apparent that there wasn’t a focus on fuel management. We lacked the systems and tools to gather and analyse our fuel usage.”

The carrier can see totals for his trucks, in terms of overall projected annual savings and GHG reductions. power the city trucks’ on-board systems as a way to reduce the need for idling, the carrier proceeds to the next step, which the FET calls Create Action Plan. It can include timelines, budgets and other information. The carrier can see totals for his trucks, in terms of overall projected annual savings and GHG reductions - the sum effects of his plan, in other words, should he execute it. The last phase is called Measure Actual Impact. Here, after the carrier has taken the plunge and purchased and installed the hardware, the FET tracks current fuel consumption and determines the impact of the fleet efficiency actions the carrier has taken. With his well-maintained operations trucknews.com

Ashcroft approached NRCan to find out what tools it offered fleet managers to help them reduce fuel consumption. The city began by giving most of its drivers the half-day to attend NRCan’s SmartDriver training program. From this Ashcroft learned that a fleet replacement plan and reducing idling time were the city’s best options. Then a dozen city staff received training on the FET during NRCan’s one-day Fuel Management 101 workshop. “We had mechanics, parks people, a financial analyst and end users in the room – people who normally never get together. We dived into what the FET could do. The FET training and the Fuel Management 101 was, for me, a way to get people together

replacement plan by incorporating better fuel efficiency analyses into our decision-making,” Ashcroft says. “The FET will give us greater impetus to ensure our mileage and fuel consumption data is detailed, complete and accurate, and better analyse the impact of different savings strategies.” Although NRCan began developing the FET about five years ago, it is only just coming out of its pilot program phase. It has yet to gain much traction. In an effort to improve the tool, in late July this year NRCan awarded a contract to Project Innovation Transport (PIT), a group of FPInnovations, to find out what potential users think of the tool in its English and French versions. “NRCan has asked us to find out what could be done to make the FET more useful to general freight companies and municipal fleets. For example, is anything missing or is it a lack of promotion that explains its lack of acceptance,” says Yves Provencher, director, PIT. PIT’s mandate is to contact 200 fleets across Canada and hold workshops to discuss the FET. PIT will hit the road this September and tour the country until September 2014. Anyone who wants to attend one of these workshops is welcome to contact PIT by sending a note to Frederic.Faulconnier@fpinnovations.ca. FE FleetSmart training programs are offered across Canada. Call 613-253-1086, or email FuelManagement-101@bronson.ca. September/October 2013 ❙ FLEET EXECUTIVE 25

LPROFILE he executive who oversees a fleet based in Peel Region, just west of Toronto, is clearly proud of what he has accomplished. He shares the story of an impoverished childhood in India; his harrowing journey to Canada; the long hours at the wheel which financed his first truck and established the foundation for today’s fleet. It is all presented as proof that there are no racial barriers to success in Canada’s trucking industry. “Have you ever had any problem with racism?” he asks one manager during a tour of the fleet offices. “Because of your turban,” he continues, “When buying parts or anything?” No, he is told. Similar answers are repeated from one department to the next. One member of the dispatching team admits she has sometimes transferred calls from customers who ask for “someone who speaks English,” but discounts the requests as nothing more than legitimate struggles with an accented voice. Everyone in the visibly multicultural workplace speaks English. Despite the positive experiences, the executive asks to be removed from this article. “It will affect my business,” he says in a follow-up email. All of the identifying information needs to be stripped away. Race, it appears, continues to be a sensitive topic in the trucking industry, even when the observations tell a positive story. It is not the only time he has been concerned about such issues. When first branding the fleet, he knew the trucks would not be labelled with his family name. He didn’t want any potential customers to avoid the operation because of an Indian identity. “Today, it would not matter,” he says. As welcoming as this executive believes fleets and their customers have become, there is no question that visible minorities are still under-represented in the trucking industry. While 18% of Canada’s workforce identifies as a visible minority, National Household Survey data compiled for Motortruck Fleet Executive found that a mere 13% of the nation’s 283,000 truck drivers identify themselves in those terms. Put another way, the trucking industry is whiter than most. Retrucknews.com

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By John G. Smith

cent immigration does not seem to be closing the gap, either. While 3% of Canada’s workforce landed between 2006 and 2011, only 2% of Canada’s truck drivers arrived during the same period. The fleets that do embrace more multicultural drivers also tend to be clustered around major population centres like Vancouver, Montreal and Toronto. It is hardly a comforting observation. Groups including Trucking HR Canada and the Conference Board of Canada continue to project labour shortages, and any potential solutions will involve newcomers. Every year, Canada opens its doors to about 250,000 immigrants and refugees who account for growth in the national labour pool. More than one-third of the immigrants granted permanent residence in 2011 was from the Philippines, China or India. And nearly one in five residents — 6.26 million people, including new and established Canadians alike — already identify themselves as a visible minority. “Immigration is a huge part of labour growth in Canada,” says Angela Splinter, chief executive officer of Trucking HR Canada, which is dedicated to promoting the industry’s best practices in human resources. “We know what the driver shortage is. People in this country are already experiencing it. We have to ensure there are systems in place that can support their [newcomers’] integration into the workforce.” Not every fleet offers a welcoming environment to newcomers or visible minorities. Cheryl Khan endured a long list of racial slurs during her time as a dispatcher at Lynx Trucking, Transport and Leasing in Toronto. A 2010 Ontario Human Rights Tribunal heard how her employer, Lynn Tompkins, called her stupid or used racial epithets such as a shortened version of “Pakistani”. Khan’s children, who had a black father, were called “half-ni---r” babies. One former employee reported that Tompkins used the dreaded N-word every day. When the tribunal concluded, Tompkins and the fleet were forced to pay $31,750 for the injustices. Yellow Transportation and YRC recently faced steeper penSeptember/October 2012 ❙ FLEET EXECUTIVE 31

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LEADERS

A department highlighting the insights of industry leaders on key industry issues.

DELIVERING HEALTHY RETURNS By Lou Smyrlis

(From left to right) Trevor Kurtz, general manager at Brian Kurtz Trucking, Dave Dietrich, vice president of human resources at ERB Group of Companies, Siphiwe Baleka, driver fitness coach at Prime Inc and Lou Smyrlis.

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Part ll

Rising healthcare costs and a genuine concern for our aging workforce is making health and wellness programs a hot topic. What can you do to help your drivers lead longer, healthier, more productive lives? How can you get buy in when youâ€™re looking to change years of unhealthy eating and exercise habits? Editorial director Lou Smyrlis discussed the issue at the recent Driving for Profit seminar with three industry leaders who are walking the talk by implementing such programs at their own companies: Siphiwe Baleka, driver fitness coach at Prime Inc., Dave Dietrich, vice president of human resources at ERB Group of Companies, and Trevor Kurtz, general manager at Brian Kurtz Trucking

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FE: THE PERCEPTION IS THAT IF YOU WORK A LOT ON THE ROAD THERE MAY NOT BE A LOT OF GOOD FOOD OPTIONS AVAILABLE. ARE THERE ALTERNATIVES OUT THERE IF YOU KNOW WHAT TO LOOK FOR. SO, WORK WITH ME HERE, TELL ME HOW DO YOU GET AROUND ALL THE BAD FOOD OPTIONS? HOW DO YOU GET YOURSELF EATING THE RIGHT THINGS? AND IS THERE A WAY TO DO IT THAT’S EASY ENOUGH FOR THE AVERAGE PERSON OUT THERE TO BE ABLE TO DO IT WITHOUT HAVING TO WORK THROUGH ALL THESE CALORIE TABLES AND ALL THAT DIFFICULT STUFF THAT JUST MAKES PEOPLE SAY AH FORGET IT, IT’S TOO DIFFICULT.

Baleka: What we do at Prime is have our drivers come in for an orientation to start our program and we really educate them about metabolism — what it is, what it does, how they’re faced with this metabolic syndrome. We’re not going to stop drivers from eating at fast food places, that’s what they do. So you have to have strategies that incorporate where they’re already eating at. And you make small changes every week once you understand what the problem is. In most cases they’re over consuming calories; a lot of it has to do with their carbohydrate intake. Here is one of my favourite examples: We have a lot of drivers who like going to Subway. They like getting the foot-long sub and they’ll eat the whole foot-long sandwich at one time. So we instruct them to get the six-inch sub with double meat. It’s the

same sandwich, same flavour, same routine. The only thing that has changed is, you cut the bread in half and it’s half the carbs. Those kinds of changes are easy for our drivers to do because it’s already integrated in what they’re doing. That’s how you get the drivers to do better with their eating choices. It’s about making the best choice available to you wherever you’re at. FE: SIPHIWE, YOU COME AT THIS FROM A PRETTY HONEST PLACE. WHEN YOU WERE YOUNGER YOU WERE A NATIONALLY RANKED SWIMMER. BUT WHEN YOU STARTED DRIVING TRUCK, YOU EXPERIENCED LIFE ON THE ROAD AND ACTUALLY STARTED PUTTING ON WEIGHT. YOU’VE LIVED THROUGH WHAT YOU ARE TALKING ABOUT.

Baleka: That’s correct, I drove at Prime for four years, and went through their student training program. Most young drivers are going to adapt to what your trainers do. So whatever your trainer does when he eats, where he eats, that’s pretty much what you do. And a lot of folks when they get into trucking, they might not have a lot of money in their pockets so if you’re going to spend ten dollars on a meal you want to get all you can eat so you’re eating at all-you-can-eat buffets. In my case, I was a world class swimmer in college. I had never been overweight or out of shape. I put on 15 pounds in the first two months on the job and I got scared. And I realized

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that if I didn’t take responsibility for my health then I was going to end up like the statistics on obesity. The program that I created for Prime was born out of that experience. I had to figure out for myself what’s the most effective, least time consuming way to stay in shape on the road? So I experimented with all kinds of training philosophies, eating strategies, fitness products, fitness apps and in the process of doing that, a lot of other drivers would see me working out on the side of my truck and they would come over and they would talk to me and then I realized there was a real need for it and I also realized that there’s a fitness program out there for everyone except specifically truck drivers. So I spent the next three years of my lease developing that program with these kind of examples that any truck driver can use. We’re not asking them to grill asparagus in their truck and we’re not asking them to somehow run 20 miles to the Gold’s Gym; it’s all based on

“

truck stop and they order their meal and they say don’t deep fry that chicken breast just grill it or hold the sauce. They’re little steps but before they know it they start to see the pounds fall off. Parking in the back row and walking to the front of the building is another example. Twenty years ago they didn’t park in the back row, now they park in the back row and they walk to the truck stop. It’s a little exercise. FE: DAVE AT ERB YOU GUYS HAVE ACTUALLY PUT TOGETHER A COOKBOOK. WHAT CAN YOU TELL ME ABOUT THAT?

Dietrich: It’s part of our health and wellness initiative and every year we have a different theme. Last year was nutritious eating so we wanted to do something that was kind of fun. So we asked for employee recipes and initially we said give us a healthy recipe and unfortunately we didn’t get a lot of re-

In my case, I was a world class swimmer in college. I had never been overweight or out of shape. I put on 15 pounds in the first two months on the job and I got scared. And I realized that if I didn’t take responsibility for my health then I was going to end up like the statistics on obesity. exercise right in your cab or right by the side of your truck and how you eat when you’re out on the road. We break it down into simple steps that they follow each week to get them to where they need to be. FE: TREVOR I IMAGINE YOU MUST HEAR THE SAME CONCERNS AND EXCUSES FROM DRIVERS SAYING THEY WOULD LIKE TO EAT RIGHT BUT THEY’RE ON THE ROAD, IN ON A HURRY, ETC. WHAT’S THE RESPONSE, HOW DO YOU DEAL WITH IT?

Kurtz: You’ve got to lose the word “diet.” That was a big thing at our place. The word is scary to anybody and we spun off of that with a lifestyle change. And really that’s what it is, it’s a lifestyle change. It’s picking the healthy choice at the restaurant when you’re there. There’s always something on the menu that’s going to be good for you and they’ll prepare it, like if you ask them not to deep fry the chicken breast. Our guys fill their fridges before they leave. It takes a little bit of time management. You have to leave a little earlier so you can stop at the grocery store. With the price of food on the road versus the price of food at the grocery store, we spun that off as a cost savings. My wife and I have done it and it becomes such a lifestyle change. Knowing what to order, knowing how to order - if you educate these guys and work with them, they want to learn, they want to know better. They want to feel good when they go into that 36 FLEET EXECUTIVE ❙ September/October 2013

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sponse. So we opened it up and we got quite a response, probably 100-150 recipes. Everything from hors d’oeurvres and main courses to desserts and different ethnic recipes and so on. But then we took that a step further and we did something unique, partnering with University of Guelph applied nutrition students. The students analysed these recipes, looking at carbs and proteins and sodium and calories and so on and actually applied a nutrition label to each recipe. And then from there our employees can decide if they want low carbs, they better stay clear of a particular recipe. So it provides them with some options. The goal is to have that out to all of our employees this year and then they can use those recipes to make things to take on the road. Baleka: Most drivers have been told their whole life to eat your vegetables and they don’t. What we found was the way to get them to make changes was for them to keep a food log of everything that they ate and when they ate it during the first week of our program. Once they have a week’s food log you can show them the culprits in their diet, what they’re eating that is sabotaging their weight loss. Now you’ve put it into context for them and they see things such as that 70% of their carbohydrate consumption was coming from soda. Now they’re motivated to make the substitution. But you have to actually see it in your own nutrition profile first. FE trucknews.com

13-10-10 1:51 PM

THE HUMAN EDGE p10 2. SELF-GUIDED HR CIRCLE CHECKS

4. NATIONAL SKILLS PROFILES

Trucking HR Canada has developed a suite of popular guides to offer HR support for managers in small and mid-sized fleets. In many cases, these are the employers who lack the clearly defined HR personnel who can help recruit and retain employees, manage different generations of workers, or create a welcoming workplace for an increasingly multicultural workforce. But sometimes the biggest challenge involves knowing where to start. A free online assessment tool known as the HR Circle Check (available at www.truckingHR.com) helps to identify exactly where a fleet’s HR efforts are falling short, and points to the specific learning resources, guides and checklists that can help.

National Skills Profiles, known officially as National Occupational Standards (NOS), support various HR functions, from appraising and recruiting job candidates to training and reviewing the employees who are ultimately hired. Each voluntary standard defines the main roles and responsibilities within an area of work, offering a clear understanding of what successful job performance looks like, a detailed breakdown of tasks, and the skills and knowledge needed for a particular position. It is information that can help any fleet manager communicate what an employee needs to accomplish, while also providing a clear benchmark for good performance. Today’s Skills Profiles already analyze the roles of entrylevel drivers, professional drivers, driver specialties, coach/ mentor/assessors, dispatchers, freight claims/safety and loss prevention specialists, cargo workers, shunt drivers (licensed), and manager/supervisors. And each can be downloaded free of charge from www.truckingHR.com.

3. CUSTOMIZED HR SUPPORT

A Human Resources professional on the Trucking HR Canada team can help fleet managers develop a customized plan that includes recruiting and retention strategies which reflect unique operating realities; policies and procedures to guide HR-related activities; and competitive compensation packages. The managers and fleet owners looking to the future can also find support in developing succession plans that will identify leaders within the business.

Leader Sep.indd 37

There is more support to come, and you can be sure that every initiative from Trucking HR Canada will be designed to address the trucking industry’s unique needs. FE

13-10-10 1:51 PM

Hamburg Technology Centre

Introducing a new engine oil category And why fleets may have reason to get excited about it

By James Menzies

s work continues towards the development of a new heavy-duty engine oil category, presently known as PC-11, early indications are that fuel savings could be in store for fleets. The API PC-11 engine oil category is slated to be rolled out to industry in 2016. While engine oil categories can be a difficult thing to get excited about, early test results from Shell suggest fleet owners may have much to look forward to in this particular changeover. Typically, emissions mandates have driven new engine oil categories roughly every four years. By the time PC-11 hits the market in 2016, the current CJ-4 category will have been on the market for a decade, which Shell’s global OEM technical manager Dan Arcy said is a testament to the effectiveness of the CJ-4 specification. 38 FLEET EXECUTIVE ❙ September/October 2013

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All good things must come to an end, however, and CJ-4 will eventually be phased out by the new category, which was designed to handle the increased engine temperatures — to the tune of +10 C — expected of the next-generation engines, as well as other challenges. Arcy has been actively involved in developing the PC-11 test requirements. Among the areas to be tested and improved upon are: oxidation stability; aeration benefits; scuffing/adhesive wear; shear stability; and compatibility with biofuels. Noticeably absent among those requirements is a fuel economy test. The industry is now wholly convinced that lower viscosity engine oils do, in fact, provide better fuel economy, and so it was agreed that no further testing of this theory was required. Low-viscosity engine oils — generally those Day of aCab grade of ProStar+ trucknews.com

13-10-10 2:04 PM

10W-30 and lighter — have figured prominently in discussions around the new standard; not surprising, since it’s expected low-vis oils will be required, or strongly recommended, to comply with impending greenhouse gas emissions rules in the US and Canada. In fact, PC-11 will have two sub-categories: one validating the performance of conventional 15W-40 and heavier oils, and another category for lighter-weight products. While it’s now widely accepted that low-viscosity oils provide fuel savings of about 1.6% (for a 10W-30 oil, compared to a 15W-40), concerns remain about the lighter-weight oil’s ability to provide protection equal to that of a conventional 15W-40. Those concerns seem to have been mostly put to rest, based on extensive testing conducted by Shell. “The concern in the industry is there will be more valve train wear, more wear in the piston ring liner area and more bearing wear,” Shell’s Keith Selby said at a global press event on heavy-duty engine lubricants, held today at the company’s sprawling Technical Center in Hamburg, Germany. “The industry is currently working to enable the use of low-viscosity oils and maintain current levels of engine durability. The good news is, the data shows future engine oils can match current wear protection with conventional engine oil grades.” Arcy pointed out tests conducted by Shell showed that after 829,000 miles using Shell Rotella T5 10W-30, rocker arms, oil pans and cylinder liners were as clean and in as good of condition as those in similar trucks running 15W-40 oil. The lighter-weight oil also demonstrated excellent iron wear protection, strong TBN retention and acid neutralization capabilities, Arcy said. “10W-30 oils can provide the wear protection you need, even in extended drain conditions,” he said. As the PC-11 category is further developed, one term you’ll want to add to your trucking vocabulary is: High Temperature High Shear (HTHS). This has become an industry-accepted method of measuring viscosity and is expressed in centipoise (cP). Industry wanted a more precise way to define viscosity, since not all 40-weights are created equal. Rotella global brand manager Chris Guerrero compared those engine oils to a high school football team, where all the players may be in the same grade, but some players are much bulkier than others. Likewise, some thick 40-weights are over-engineered while others more closely resemble a 30-weight. Adopting HTHS allows the industry to better understand the true specifications of a low-viscosity engine oil. To give an example, a current 15W-40 oil typically weighs in at about 4.2 cP. “That’s towards the upper end of a 40-grade, where most 15W-40s are blended,” Arcy explained. Thirtyweight CJ-4 oils are typically around 3.5 cP. “The current proposal is for a range of 2.9 cP to 3.3 cP and it may even go lower than that,” Arcy said. This is good news for fleets looking to save fuel. Arcy said Shell has found that

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Gear Sept.indd 39

13-10-15 2:45 PM

Tour and presentaion at the Hamburg Technology Centre

The engine OEMs will determine whether or not they trust ultra low-viscosity oils in their older engines. Even so, fleets may want to transition to the lighter-weight engine oils as soon as they’re able. Testing Shell has conducted in controlled environments and on the highway, makes a compelling case for low-vis oils. Arcy said Shell has gone to great lengths to ensure its test results reflect realworld conditions. “You can structure a test to make your fuel economy look extremely good, but it may not be relevant,” he said of some testing methods employed today. In one test conducted by Shell, five Class 7 straight trucks were run in a closed track environment. Trucks running 15W-40 were compared to those using Rotella T5 10W-30 oil. More than 400 sample points were taken, with the lighter-weight oil coming out on top to the tune of 1.6% in improved fuel economy. 40 FLEET EXECUTIVE ❙ September/October 2013

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Beware of dog By James Menzies

ack Trucks has announced the launch of GuardDog Connect, a new telematics program the company says will reduce downtime and streamline the repair process. The system remotely monitors fault codes generated by the engine and emissions systems, then advises the fleet manager on the best course of action. In some cases, the truck will be able to continue on its route and have the issue repaired at its next scheduled service interval. When immediate repairs are necessary, GuardDog Connect advises the driver of the nearest service location that has the required parts on-hand. Fleets will also benefit from not having to undergo a diagnostics inspection at the dealer, since OnGuard Connect will have already notified the dealer of what needs to be done.

Another test of Class 7 trucks in real-world conditions making local deliveries in Houston, Texas found the trucks achieved 3.3% greater fuel economy when running 10W-30 oil, compared to 15W-40. (All 10 trucks in this study alternated between 15W-40 and 10W-30 oils, to achieve credible results). And a test Schneider National conducted using on-highway Class 8 tractors yielded a 1.57% improvement in real-world driving conditions when running 10W-30 oil. This test was conducted using the highly respected SAE J1321 testing protocol. With the PC-11 category on the horizon, the opportunity exists to provide even greater fuel savings, Arcy said. Shell started testing the new category even before it was completed, developing an experimental 10W-30 oil with an HTHS of 3.0 cP (compared to the currently available 10W-30, which has an HTHS of 3.5 cP). The initial tests of the experimental PC-11 oil revealed no compromise in protection. But perhaps even more promising were the fuel economy results. Five trucks were placed into team operations with a US fleet and four of the five showed fuel economy improvements when running the experimental PC-11 10W-30 oil, Arcy said. The best result was an improvement from 6.52 mpg using the currently available 10W-30, to 6.97 mpg running the PC-11 spec’ oil. However, Arcy admitted the test was set up to evaluate durability, not fuel economy, and therefore he’s reticent to make any promises based on those early findings. Still, “When you look at this data, there’s definitely a fuel economy benefit there,” Arcy said. FE

Images copyright Eric Shambroom / Polaris. Source: Photographic Services/Shell International Ltd

moving from a 4.2 cP oil to a 3.5 cP product has demonstrated in on-highway field trials, fuel savings of 1.6%. Moving from 3.5 cP to 2.9 cP will bring further fuel savings. Fleet managers and owner/operators, however, will have to be savvy buyers, as this number won’t likely be prominently displayed on packaging. It will behoove the buyer to seek out the HTHS rating, which will be included on data sheets. The fly in the ointment of this improved fuel economy could be backwards compatibility, which Arcy said may not be possible with oils that boast the lower cP measurements. “They may not be able to be used in older equipment, and that could be a challenge for some of our customers,” he acknowledged. “They have equipment that spans multiple years, so there are going to be some challenges.”

trucknews.com

13-10-10 3:09 PM

Mack introduces GuardDog Connect telematics program to help reduce downtime, streamline repair process “We at Mack are committed to having our customers’ backs,” said John Walsh, Mack vice-president of marketing. “Our new telematics-based solution, GuardDog Connect, clearly demonstrates our determination to ensure that our customers keep their trucks on the road where they should be.” Messages are sent to the driver via the Mack Co-Pilot display on the dash. Fleet managers can be notified of the most appropriate course of action by e-mail or phone. The GuardDog Connect system is built upon the Mack Asist service platform, so all communications and the vehicle’s service history are consolidated in a single online file. Fault codes are monitored by a team at Mack’s 24/7 OneCall customer support centre. Mack chose to monitor about 30 fault codes, but has the ability to include additional fault codes as necessary. “Customers have enough on their minds today without having to worry about the time it takes to diagnose a problem

with their vehicle, and get the situation addressed,” Walsh said. “GuardDog Connect simplifies the repair process for drivers and fleet managers, combining purposeful telematics technology with the know-how of the Mack support network to keep customers rolling.” David Pardue, vice-president, aftermarket business development with Mack, said GuardDog Connect brings a more proactive approach to truck repairs. “It’s about being proactive, enhancing the decision process and it’s about driver peace of mind,” Pardue said. “In the past, the driver sees the code and doesn’t know what it represents, so they take the vehicle out of service and that may not have been necessary.” GuardDog Connect will be offered standard on 2015 model year Mack trucks with Mack power (available beginning in January). It will be free of charge for the first two years and then offered as a subscription afterwards. FE

More Drive time. Less Downtime. Images copyright Eric Shambroom / Polaris. Source: Photographic Services/Shell International Ltd

On the road, in your yard, or at our location, OK Tire has what it takes to get the job done. We have the experience to help lower your overall cost per kilometer by recommending the best tire for your needs, like Smartway Tires or special application tires. Our broad selection of brands, Emergency Road Services, Certified Technicians, and up to date equipment means we have everything you’ll need to keep rolling. There are OK Tire locations from coast to coast visit oktire.com to find one near you.

trucknews.com

Gear Sept.indd 41

Month/Month 2013 ❙ FLEET EXECUTIVE 41

13-10-10 2:04 PM

Zonar tablet running the Visibility Fleet Software diagnostics program

Connected Detroit expands telematics offerings with launch of Detroit Connect, integrated tablet By James Menzies

Detroit Diesel Corp. has taken a huge leap forward with its telematics capabilities, launching Detroit Connect, bundling its existing telematics programs and bringing to market a fullyintegrated tablet. Detroit Connect combines the company’s Virtual Technician remote diagnostics program, Visibility Fleet Software and a new rugged tablet with seven-inch display. The tablet is manufactured by Zonar and sits in a custom-made cradle on the dash. It will be offered beginning in January in the Freightliner Cascadia, with other Daimler truck models to follow. Detroit Connect’s Joe Saccio said the on-board tablet will come loaded with apps that provide: two-way messaging; truckspecific navigation; electronic hours-of-service logging; and 42 FLEET EXECUTIVE ❙ September/October 2013

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inspection reports. With the exception of the navigation app and incoming text-to-vice messaging, all other functions are disabled while the truck is in motion, to reduce the potential for distraction. Because it’s integrated into the truck, voice messages and GPS directions can be played through the truck’s audio system. There are other benefits to being fully integrated as well, Saccio said. “Our engineers have worked on the installation side of this,” he said. “You’re not cutting up wiring harnesses, there’s no splicing involved. This thing is plug-and-play.” The tablet is an Android-based device, and eventually Detroit Connect will offer third-party apps that will be available from an app store powered by Zonar. The touch screen can be navigated when wearing gloves or while wet. It features a fivemegapixel camera, a built-in flashlight and RFID readers. An inspection app allows the fleet owner or maintenance manager to ensure proper pre-trip inspections are being done, by placing RFID tags at strategic locations on the vehicle. The driver must then scan each of the tags with the tablet to reveal a checklist of items to inspect on that area of the truck. This allows fleet managers to determine how long the pre-trip inspection took to complete. If a defect is found, the driver can snap a photo and send it to dispatch or to the shop. Saccio said it’s the hours-of-service app that will “really drive this into the market.” It’s currently configured for the US rules, but the Canadian hours-of-service will be added before the tablet goes to market in January, Saccio said. Drivers can easily remove the tablet from its cradle to show inspection officers their logs. If a printout is required, they can be uploaded to a memory stick using the USB drive and then exported to an Excel spreadsheet or other format. The GPS app allows a driver to input his load and equipment type and receive the best directions to his destination. Detroit Connect will be bundling Virtual Technician, Visibility Fleet Software and the tablet and offering the service for a yet-to-be-determined subscription fee. David Hames, general manager, marketing and strategy with Daimler Trucks North America, said pricing will be competitive with existing offerings that provide similar services. “This is going to be the platform that enables us to move into a new space,” said Hames. Detroit has an exclusive deal with Zonar, and will be the only OEM offering the tablet via factory installation. However, Zonar’s expected to sell the tablet as an all-makes retrofit at some point in the future. FE trucknews.com

13-10-10 2:04 PM

DASHBOARD

iron ores and concentrates (down 293,000 tonnes), canola (down 192,000 tonnes), gasoline and aviation turbine fuel (down 114,000 tonnes), and coal (down 107,000 tonnes). Overall, 29 out of 64 commodities carried by Canadian railways declined during the month. Despite the drop in loadings, a number of commodities saw strong growth in July. These included fuel oils and crude petroleum (up 164,000 tonnes), other chemical products and preparations (up 156,000 tonnes) and lumber (up 97,000 tonnes). Intermodal loadings rose 4.1% to 2.6 million tonnes. The gain was the result of increased containerized cargo shipments and trailers loaded onto flat cars. From a geographic perspective, the Western and Eastern railway divisions in Canada saw mixed results in July. The Western Division, which accounted for 60.5% of the domestic loadings, saw its freight rise 0.5% to 14.1 million tonnes. By contrast, the Eastern Division, which accounted for the remainder of the loadings, saw its freight decline 6.7% to 9.2 million tonnes. For statistical purposes, cargo loadings from Thunder Bay, Ontario, to the Pacific Coast are classified to the Western Division while loadings from Armstrong, Ontario, to the Atlantic Coast are classified to the Eastern Division. Rail freight traffic received from the United States rose 2.9% to reach 3.7 million tonnes. The increase marks the highest amount of received traffic for the month of July and occurred on the strength of intermodal loadings, particularly containerized cargo shipments.

US truck tonnage robust, but load volumes stay flat US for-hire truck tonnage spiked 1.4% in August, on the heels of a 0.6% decline in July. However, the American Trucking Associations’ cautioned the impressive tonnage is attributed to the type of freight being hauled, and not necessarily increasing demand. The ATA index posted its highest monthover-month gain since May. It was 6.9% higher than August 2012, which is the largest year-over-year gain since December 2011. Year-to-date, tonnage is up 5% compared to the same period in 2012. “The strength in tonnage continued again in August, with the index increasing in three of the last four months,” ATA chief economist Bob Costello said. “The improvement corresponds with a solid gain in manufacturing output during August reported by the Federal Reserve. However, tonnage’s strength in retrucknews.com

cent months, and really through 2013, is probably overstating the robustness of the economy and trucking generally.” Costello explained: “It just so happens that the sectors of the economy that are growing the fastest - in housing starts, auto production, and energy output, primarily through hydraulic fracturing - produce heavier than average freight, leading to accelerated growth in tonnage. FE