PennTrux October 2012

Volume LXXVIII | Number 10 | October 2012

The Voice of the Trucking Industry in Pennsylvania

PresOrTed sTaNdard

U.s. POsTagePaId

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In a time when driver shortage has become a growing issue, PMTA is looking to add a job posting service for their members. This service would allow members to send job postings that will appear on the PMTA website. Online job postings offer more flexibility and provide space for employers to incorporate more detail and be very specific about the company and position. This posting site would be free of cost to members. The posting would be created by the

companies and PMTA would serve as an advertising outlet for members to expose each open employment opportunity.

To obtain qualified candidates for open positions, it is critical to distribute the message, through as many channels as possible, to those searching for employment. Drivers contact the Pennsylvania Motor Truck Association in hopes that a list of job openings is available through the association. A job posting site would offer a resource for unemployed drivers to search job listings for a variety of locations in Pennsylvania. It would provide a connection between companies and

drivers and help in the transformation of the driver deficit issue.

PMTA would like to know your thoughts on a job posting service. The association would like to know if such a service be a useful resource that members would utilize. Please provide thoughts on this service and suggestions on service

that would enhance your membership to:

Need Drivers?

PMTA considering job posting service...

Heather Clements, membership director, [email protected].

Official Monthly Publication of the PMTA910 Linda Lane, Camp Hill, Pennsylvania 17011-6409

Telephone: 717.761.7122 | FAX: 717.761.8434 Visit our website at www.pmta.org

BOARD OF DIRECTORSJames Germak, Chairman of the Board

Rebecca Summers, First Vice ChairmanStephanie Fleetman, Vice Chairman

Timmy Nelson, Vice ChairmanMatthew Campbell, Vice Chairman

John Keagel, TreasurerGladys Knox, Secretary

Calvin Ewell, ATA Vice PresidentCalvin Ewell, Immediate Past Chairman

Charles BernierJoseph Butzer

Patrick MeehanScott PauchnikRobert Renner

J. Harold SummersRon UriahPaul Yerk

PMTA HEADQUARTERS STAFF

James W. Runk, President and CEOHeather Clements, Membership and Chapter Relations Director

Doris Fee, Accounting ManagerWendy Palermo, Title and Registration Agent

and Member ServicesE. Pinkie Pinkham, Front Desk

Dean Riland, Safety DirectorCarol Smore, Event Coordinator

Nancy Wilkes, Communications DirectorPennTrux editor: Nancy Wilkes

([email protected])Publisher: Niemczyk Hoffmann Group, Inc. Dave Hessen, Director of Creative Operations

PMTA is an affiliate of the American Trucking Associations

Annual PENNTRUX subscription rate for members of PMTA is $8.00; included in dues.

The Voice of the Trucking Industry in Pennsylvania


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Getting ready for winter drivingState of the industry

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DEPARTmENTS: Chairman's Message ...................................................................................5

TruckPaC recognition ................................................................................25

seminar schedule.......................................................................................18

2012 Membership application ..................................................................23

Membership reports

President’s Prize ...................................................................................26

Welcome New Members ....................................................................26

Crossword Puzzle........................................................................................22

Last Month's answers ........................................................................25

PMTa Chapter events ................................................................................28

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PENNTRUX 3

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a Word From The Chairman

Jim Germak, Jagtrux, Inc.

Fall is a time of changes...

To me, fall is the best time of year. The changing leaves, the clear sky, the cool nights, the fruits of the harvest, the planning of next year’s budget. Yes, unfortunately, for most of us, fall means it’s time to create a new budget, and somehow that task doesn’t go well with the niceties of autumn. For trucking companies, the task is made more unpleasant by changing fuel prices, the growing driver shortage, and uncertainty about the economy.

The trucking industry is still unsteady, and quite frankly we are all nervous about what is going to happen. American Trucking Associations’ Chief Economist Bob Costello said the economy’s growth is sluggish but steady. Freight volumes are growing. But until we know who the next president will be, many businesses are not making any major financial decisions, like buying new equipment. The article on page 6 has information on numerous truck dealers and their sales patterns.

ATA recently reported that the annual driver turnover rate surged in the second quarter, breaking the 100% barrier at large truckload fleets for the first time in more than four years. Driver turnover rose 16%, to 106%, at large truckload fleets with more than $30 million in annual revenue. This is the highest level since the fourth quarter of 2007, and the last time the turnover rate was over 100% was in the first quarter of 2008.

Smaller truckload fleets saw the driver turnover rate jump to 86%, 15 points higher than the previous quarter, putting turnover at its highest level since the third quarter of 2007. For less-than-truckload fleets, the turnover rate averaged 9% in the second quarter, up from 8% in the previous quarter. Competition for drivers with clean histories is fierce. An article on page 8 details some ways to keep the good drivers you already have.

The American Transportation Research Institute (ATRI) released the 2012 update to An Analysis of the Operational Costs of Trucking. The research identifies trucking costs from 2008 to 2011 derived directly from fleet operations. The average marginal cost per mile for 2011 was $1.71, the highest of the four years studies. Fuel and driver wages (excluding benefits) continued to be the largest cost centers for carriers, together constituting 62% of the average operating cost in 2011.

In addition to average costs per mile, ATRI’s report documents average costs per hour and includes cost breakouts by industry sector. You can get a copy of this report at ATRI’s website, www.atri-online.org.

Speaking of budgeting, PMTA is creating an integrated approach to its internal systems, with the goal of driving down operational costs and increasing service to members. PMTA staff is looking at each budget item and how it operates, holding each up to the harsh light of competition and alternatives. The staff takes seriously the notion that it is YOUR money, and their time is your time. We will keep you abreast of the changes.

PENNSYLVANIA moToR TRUCK ASSoCIATIoN

MISSION STATEMENTThe Pennsylvania Motor Truck Association was organized to promote the common business interests of persons engaged in the motor transportation industry. It is dedicated to effectively representing the concerns of the trucking industry to members, government and regulatory agencies, and the general public. PMTA has further pledged to assist member companies in managing the impact of change in the trucking industry, and to enhance the professional and economic growth of its members.

The Pennsylvania Motor Truck Association’s primary functions are as follows:

› To work with the Legislature and regulatory agencies to foster, promote and preserve a strong economic climate for trucking in the Commonwealth.

› To partner with the enforcement agencies to develop and support safety initiatives that protect the motoring public.

› To provide a forum for continuing education through seminars, workshops and conferences.

› To disseminate positive industry information to the press promoting the industry.

› To be available to our members for personal assistance whenever the need arises.

PENNTRUX 5

Truck salesslowly

increasefleets in wait and see mode

Trucking companies are between a rock and a hard spot. The rock - prices for new trucks are rising and credit is difficult to obtain. The hard spot - maintenance costs for

older trucks are going through the roof.

“Trucking companies are asking, ‘Do I really want to go out on a limb?’ Companies don’t want to hire or make capital investments,” said Bob Costello, chief economist for American Trucking Associations.

Costello said the industry is nervous about what is going to happen with the economy. There is the impending fiscal cliff economists expect at the end of the year. The Bush tax cuts are set to expire, and the country will hit the debt ceiling. Congress is setting to delay some automatic and draconian reductions in federal spending. Americans will face both a tax increase and deeper spending cuts.

Businesses are also waiting for the election. As unlikely as it is, if one party gets a decisive win, it would fix these issues. Add the debt crisis in Europe, and it’s easy to see why businesses are skittish. That translates to fewer new truck orders.

“The economy is still growing, but it has slowed down,” Costello said. “There is still a lot of demand for new trucks. Truck sales haven’t seen the cancellations but there are no more orders. Replacement (of old trucks) has slowed down. The average age of trucks is still pretty high. We were so underinvested during the recession, there is still a long way to go to replace them,” he said.

A lot of companies sell two trucks to buy one new truck. Leasing for small companies is double what it was a year ago. Costello said small fleets normally lease 15% of the fleet and own 85%. Now, they are leasing 30% and purchasing 70%. He said that fits with truck sales numbers.

Some numbers show growth. According to ACT Research, retail sales of heavy duty trucks increased 27.4% in July, continuing a 17-month trend of double-digit expansion. For the first seven months of 2012, sales volumes were 36.2% higher than the same period in 2011.

Freightliner Trucks sold 5,348 big trucks in July, a 62.5% increase over the same month last year. Seven-month sales have grown 38%, according to ACT. Freightliner Trucks dealers who are

6 PENNTRUX

PMTA members report they have seen growth locally. Sheila Horwith of Horwith Truck Centers said, “For the first six months of 2012, sales were up 10% from last year. We are seeing more activity. People’s opinions of the new emissions standards are shifting, and there is more good news for fuel economy. Companies are holding on to their equipment longer than they had in the past, but as parts and service on those trucks steadily increase, they decide to purchase new. A lot of customers are requesting delivery at the end of the year. We usually see an upswing at the end of the year because people want to save on taxes.”

Horwith was recently selected to be the Pennsylvania Truck Dealer Association’s 2013 Dealer of the Year. The award is given each year to the dealer who excels in achievement and community service. Horwith said she’s been with Horwith Truck Centers for 35 years and has always met the sales quota. The family owned and operated company is involved in community activities and charities.

Paul Myers, sales director for Freightliner of Harrisburg, said business has been very brisk. “We are selling lots of trucks. We have eight locations, from south Jersey to Pittsburgh, so we have different pockets of customers. We’ve met projections and are right on target for 2012,” he said.

Sales of refuse, food hauling and utility trucks did not wane during the recession. Sales to municipalities have increased, and the vocational market is going strong. Myers said sales of Class 8 vehicles softened a bit in 2008-2009, but he expects the pent-up demand to result in increased business. “This will come like a tsunami when it does,” he said.

Freightliner is in such good shape, it is building a new state of the art truck dealership in Hagerstown. “We are very confident and expect significant growth every year,” Myers said.

According to ACT Research, International Trucks sold 3,260 trucks in July, a 10.1% increase over a year ago. Their cumulative tally is up 23%. John Scheler of Five Star International Trucks said they have experienced lower sales this year. “We’re off 20% from last year. I think things are getting better, however. We have experienced competitive pressure, so we have aligned our strategy with the competitions’ and are regaining the lost sales. We now have Cummins engines, and that is helping us already.”

Scheler said they expect a much better sales year in 2013. “Everyone gets sluggish around election time. There is a definite slowdown. But we are optimistic things are rebounding. We think

things will continue to improve, and we’re enthusiastic about going forward.”

Nationwide, Mack Trucks sold 1,803 big rigs in July, up 63.5% from a year ago. Cumulative sales rose 46.8%. Patrick Meehan, vice president of the northeast region for Mack Trucks, confirmed that sales are about 25% higher for the first six months of the year. But he said they have seen a “substantial decline in truck orders in the last 60-90 days.”

“We look at the truck business in segments. Freight, which is truckload and less-than-truckload carriers, got hot. We pay

particular attention to the vocational segment – construction, ready mix and refuse. Those three have not come back yet,” Meehan said,

In Pennsylvania, a lot of activity slowed down because of the natural gas drilling.

Mack anticipates a 10% increase in truck sales in 2013, despite the lack of confidence customers have in the overall economy. “If they had more confidence in the economy, they would buy,” Meehan said.

Peterbilt sold 2,310 trucks in July, a 0.8% gain from a year ago, and cumulative sales are up 40%. Jack Lewis, vice president of new truck sales and marketing, The Hunter Family of Companies, said, “Orders have been steady throughout the year, helped by fleet reorders of the new PACCAR MX engine. Also, our vocational sales have been very strong and we expect that success to continue for the foreseeable future.”

Peterbilt is achieving its sales expectations, as it has for the last two years, Lewis said, “We expect next year to be just a strong as this year, if not better. We feel that there is still a lot of pent-up sleeper demand that should turn into orders as the economy expands and as we get past the elections. A strong truck rental market, as we are experiencing now, is usually a good indicator of pent-up demand.”

He said, “Peterbilts are considered the premium truck in the industry, so drivers feel valued when their company purchases Peterbilts for them to drive.”

Kenworth Trucks saw a 22.2% increase in July from a year ago. Its year-to-date volume is up 51.5%, the most of any brand. A Kenworth representative was unable to be reached for comment.

The Federal Reserve echoed the report that the U.S. economy continued to expand in July and August. In the latest report on U.S. economic conditions, the outlook for the remainder of 2012 remains positive, though growth is not expected to be as strong as had been forecasted at the beginning of the year.

“...small fleets normally lease 15% of the fleet and own 85%. Now, they are leasing 30% and

purchasing 70%.”

PENNTRUX 7

More than 90 percent of truck drivers leave in their first year, according to national economists. With the national shortage of drivers already estimated at

100,000 and rising because of the hydraulic fracturing boom and new regulations limiting driving hours, trucking firms need to be more vigilant than ever to retain employees.

Following are several steps to help you keep employees satisfied and productive.

1 Just as a company strives to find employees who demonstrate commitment to the business, so must an

organization maintain its commitment to employees – first and foremost through respecting your staff at all times.

2 Added to that character, make a point to listen to your drivers, and especially hear them out on their complaints.

Even those who often seem upset will be making statements based in truth and representing how other drivers might be feeling. If the complaints are valid, address their concerns as soon as possible. If you can’t make the change he or she is requesting, inform them and explain why it’s not an option right now.

3 As the generational workforce shifts, the work-life balance wishes of your employees also might begin to change. If

one of your drivers says he or she needs to get home, prioritize that employee to do so and show your commitment to them.

4 Make it a point to maintain your equipment, both to keep your routes on track and for driver safety (and saved

frustration!).

5 Always keep your employees informed of the company’s goals and direction. Transparency builds trust in a business;

the more they know what’s going on and see you sharing information, the more they will understand and support you as an employer. Also be sure they are aware of the customers’ expectations, as well as your own!

6 When an employee goes the extra mile or maintains flexibility in a challenging situation, surprise them with

something special. Recognizing them for solving a difficult customer’s problem or catching an equipment issue before it becomes serious deserves more than a standard thank you.

7 Sometimes, the concern your employee will have can only be solved by a higher paycheck. Discuss the situation

with them – is their concern for a short-term need, or long-term planning? Has something changed in their work recently, such as more mileage? Is there a way to give them longer routes to help adjust their wages?

Solid employees are the backbone of every successful company. Though leadership, strategy and expertise all help to steer a business, it’s the workforce behind those guides that get the organization to its goals.

Are you looking for simple, yet effective, rewards for your employees? Contact us at 717.652.5187 or [email protected] to schedule a conversation and you will receive a FREE report: Rewards That Don’t Cost an Arm and a Leg.

By Karen Young, President, HR Resolutions

Keep turnover from driving your trucking company

8 PENNTRUX

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PENNTRUX 9

The Federal Motor Carrier Safety Administration (FMCSA) has announced they plan to implement several changes to their Compliance, Safety, Accountability

Program (CSA) and the program’s Safety Measurement System (SMS) used to score motor carriers and drivers. The following outline from FMCSA lists the proposed changes which will be implemented later this year.

1 Strengthening the Vehicle maintenance BASIC by incorporating cargo/load securement violations from

today’s Cargo-Related BASIC.

Moving cargo/load securement violations into the Vehicle Maintenance BASIC will provide important benefits. It will identify motor carriers with a higher future crash risk for FMCSA interventions. Also, including the load securement violations in the new Vehicle Maintenance BASIC will remove the bias in the current Cargo-Related BASIC that has resulted in identifying a disproportionately large number of carriers that haul open trailers (e.g., flatbeds) for interventions. The new Vehicle Maintenance BASIC will better identify safety issues across all types of carrier operations.

2 Changing the Cargo-Related BASIC to the hm Compliance BASIC to better identify hm-related safety

and compliance problems.

FMCSA will implement the HM Compliance BASIC to address motor carriers that do not comply with Federal safety regulations related to properly packaging, transporting, accurately identifying, and communicating hazardous cargo in the event of a crash or spill. Hazardous Materials Transportation increases the risk to the public in the event of a crash. Unmarked or poorly marked HM cargo can result in less effective emergency response, as well as injuries and fatalities for emergency responders and others.

The HM Compliance BASIC will identify carriers with higher HM violation rates (33.8% versus 29.1%) and HM out-of-service rates (5.4% vs. 4.0%) than the current Cargo-Related BASIC.

The HM Compliance BASIC will be available only to logged-in motor carriers and enforcement personnel in December 2012. Further examination of this BASIC will take place over the next year before it becomes available to the public.

3 Better aligning the SmS with Intermodal Equipment Provider (IEP) regulations.

SMS will be updated to align with the current regulations to include violations that should be found and addressed during drivers’ pre-trip inspection on intermodal equipment in order to better identify carriers with compliance issues.

4 Aligning violations that are included in the SmS with Commercial Vehicle Safety Alliance inspection levels

by eliminating vehicle violations derived from driver- only inspections and driver violations from vehicle- only inspections.

To support data uniformity and consistency, motor carriers will not be penalized in the SMS for violations cited outside the scope of an inspection. All violations from roadside inspections will continue to be on a carrier’s inspection report; however, only violations that fall within the scope of the specific inspections performed will be used in the SMS.

5 more accurately identifying carriers that transport significant quantities of hm.

The definition of carriers subject to the lower HM Intervention threshold is being revised in December to better ensure the carriers are hauling placardable quantities of HM on a more regular basis before being subject to the more stringent intervention thresholds.

6 more accurately identifying carriers involved in transporting passengers.

Motor carriers subject to the passenger carrier threshold in the SMS are held to a significantly higher standard than non-passenger carriers. To better ensure the safety of passengers, FMCSA will update the definition of passenger carrier within SMS to enable the Agency to better focus resources on motor carriers involved with passenger transportation.

7 modifying the SmS display.

FMCSA is responding to feedback from enforcement and industry to change how fatalities and injuries caused by crashes are presented in SMS, and to stakeholder requests for

SafetyCheck: CSA Update

10 PENNTRUX

In addition, four additional changes have been identified since the beginning of the preview period that will also be implemented in December. These are described in the August 2012 Federal Register Notice and are outlined below:

1 Removing 1 to 5 mph speeding violations.

FMCSA has aligned speeding violations to be consistent with current speedometer regulations (49 CFR 393.82) that require speedometers to be accurate within 5 mph.

Applies to the prior 24 months of data used by SMS and all SMS data moving forward.

2 Lowering the severity weight for speeding violations that do not designate mPh range

above the speed limit.

The severity weight will be lowered to 1 for violations.

3 Aligning paper and electronic logbook violations.

FMCSA will equally weight paper and electronic logbook violations in SMS for consistency purposes.

4 Changing the name of the Fatigued Driving (hours-of-Service (hoS)) BASIC to the hoS

Compliance BASIC.

This BASIC continues to have a strong association with future crash risk. This action is being taken to reflect that the BASIC includes hours of service recordkeeping requirements that, by themselves, do not necessarily indicate fatigued driving or driving in excess of allowable hours.

more specific terminology in the BASICs. In the package of enhancements being previewed, the SMS display has been modified to:

Change current terminology, “inconclusive” and “insufficient data,” to fact-based descriptions. Fact-based descriptions are easier for stakeholders to understand and interpret and will enable them to take more effective and targeted actions to improve safety.

Separate crashes with injuries from crashes with fatalities. This eliminates a potentially misleading interpretation that a carrier has more fatalities than it actually does.

PmTA changing membership management system:Streamlines core business processes, adds value to PmTA membership.By Heather Clements, Membership Director

The Pennsylvania Motor Truck Association is looking toward the future and making changes to enhance membership

experiences. PMTA is integrating a new association management system to promote membership interaction and give PMTA staff the ability to keep track of individual member activity within the organization. The system the association has selected is called Yourmembership.com.

This new system will give members the means to interact with one another on the PMTA website. There will be an online community that will allow members to develop profiles and create discussion boards. Each PMTA member will receive login information to access this online community. Through the log in, members will be able to view a directory of other members and search for specific categories, such as flatbed operators or insurance companies, or search by region or chapter.

PMTA staff will be able to track the participation in different activities for each member. They will also be able to keep a list of supplies members ordered in the past. Often times, people are interested in sending others within their organization to the same classes they attended. Yourmembership.com provides a list of seminars and events members attended in the past. Also, since certain seminars have two parts, this provides the staff with a list of members who have not taken that second part of the seminar. Therefore, with this system, the staff will be able to send reminders for the upcoming seminars to those who must finish their training. If a member would like a duplicate supply order, PMTA staff members will be able to generate the order from the computer using the information from past orders. These functions will allow the staff to better serve the members.

With a new system PMTA hopes to bring a flourishing future for the association. Yourmembership.com will provide a method of stronger communication among members and promote more industry networking. It will help deliver better services and more access for members. These new interactions and advancements will help PMTA continue to promote the motor transportation industry.

PENNTRUX 11

When a service or maintenance agreement is up for renewal, many of us just sign it for another three years, not taking the time to figure out if the service

or equipment is still the best fit for your company. But in reality, analyzing what you currently have and actually use can show you many ways to save money in both the short and long term. This is the first in a series of articles based on PMTA’s recent experience. We have been able to save a lot of your money by analyzing our office and operational needs.

PMTA purchased a copier in 2004 for $14,000. As the copier aged, the annual maintenance contract increased in price. The contract was due to expire, and it was going to cost close to $3,000 for one year. That computes to about $250 a month to keep an old copier going. Plus, PMTA had to purchase the toner cartridges, at about $80 a pop, plus staples, totaling another $520. The maintenance contract was for 300,000 copies a year. The sales people were circling. A sales person’s goal is to sell you up. Your goal is to meet your needs at the lowest cost.

After just a little investigation, the staff discovered PMTA doesn’t make nearly that many copies a year. In fact, we made fewer than 100,000 last year. The next step was to determine exactly what our copying needs are. Do we need copy speed more than 33 copies a minute? How about duplexing? Scanning capabilities? Do we

Meeting needs at lowest costreally need the expense of a color copier? How fancy does the display need to be? Once we clarified our needs versus our wants, we were ready to send out the specification to vendors in the form of a Request for Proposal (RFP).

We discovered that leasing a new copier would be far less costly than purchasing, and we wouldn’t have the eventual problem of an aging copier at the end of the lease. We ended up with a new copier on a 36-month lease that includes a maintenance and supply program for 96,000 copies a year, for $142 a month. That is less than half of what we would have paid for the maintenance contract on the old copier. Plus, we don’t have to purchase toner or staples anymore – they’re included. The only item PMTA will have to purchase is paper, and we have always had to purchase paper. At the end of the three-year contract, we can upgrade to the next generation equipment, purchase it at fair market value, or look for another vendor.

The vendor from whom we are leasing the copier took the old one away to salvage parts, so we didn’t even have to worry about getting rid of the beast. The new copier also scans to email, and staff can send documents to the copier to print from their desktops. If you have ever purchased toner cartridges for printers, you understand the financial pain of doing so. Using a laser printer costs 7 to 10 cents per page. By printing to the copier, PMTA pays less than half a cent per page. The $142/month includes toner.

As we continue to analyze our business processes here, we’ll report our discoveries and the changes we make as we seek to use your money wisely.

12 PENNTRUX

PENNTRUX 13

F leets are still uncertain and somewhat skeptical about the electronic onboard recorders (EOBRs). Since Congress passed the federal highway bill, Moving Ahead for Progress

in the 21st Century (MAP-21), that includes the mandate for EOBRs, carriers have been asking questions about the bill’s scope, implementation and the impact and benefit to carriers and drivers.

Dave Kraft, director, industry affairs, for Qualcomm Enterprise Services, recently hosted a webinar, “Update on Upcoming EOBR Mandate and Its Impact.” MAP-21 requires the Federal Motor Carrier Safety Administration to issue a final rule for the mandate within one year (by Oct. 1, 2013). It also requires that the effective date of the mandate is within two years after issuance of the final rule (by Oct. 2, 2015).

The EOBR mandate affects all drivers who are subject to paper logs. Kraft said this is approximately 3.4 million drivers. While there are exemptions, this is still a large population.

“MAP-21 outlines the high level requirements and insures structure within the regulation isn’t missed,” Kraft said. MAP-21 defines electronic driver log system and outlines some key performance requirements, including:

Kraft said these requirements are consistent with recommendations by EOBR technical requirements that were developed by the Motor Carrier Advisory Committee in 2011 and provided industry expert guidance for future EOBR rulemaking. “They provide much more standardization,” he said.

New specifications of security and certification of EOBRs that MAP-21 outlines include:

Rulemaking to define certification criteria and process to ensure EOBR systems meet the performance and security requirements.

Kraft said MAP-21 also directs FMCSA to consider a few other items. It calls for the elimination or reduction of paper HOS supporting documents and limits the use and retention of EOBR data for HOS compliance review by enforcement. MAP-21 also requires FMCSA to address the mitigation of potential driver harassment using EOBR information.

“While the MAP-21 law with an EOBR mandate requirement is a done deal, getting to full implementation of the mandate may have some challenges,” Kraft said. Potential challenges include litigation challenges, federal funding limitation, rulemaking complexities, and a very short implementation window. “There is a lot to do. We need to fully develop, certify and implement the new systems,” he said.

The goal, of course, is to have everyone using electronic logs. Kraft said this is doable. More than 500,000 compliant systems are already in use, and they work very well. New requirements actually standardize current best practices. Many installed systems will simply need an over-the-air software upgrade.

“To prepare for implementation, carriers should plan and take timely actions for system acquisition, installation and training. You must allow for a practical implementation schedule,” Kraft said.

...from the desk of Dave KraftUpdate on upcoming EOBR mandate

• Accurate recording of hours of service (HOS)

• Location recording

• Tamper resistance

• Integral synchronization with Electronic Control Module or other technology for sensing vehicle movement

• Law enforcement accessibility during roadside inspections

• Standard user interface to aid vehicle operators and law enforcement officials.

• Standard security level per nationally-recognized standards organization

• Security requirements to address

• Data access

• Drivers’ data transfer between motor vehicles

• Motor carrier’s data storage

• Data transfer and transportability for law enforcement officials

14 PENNTRUX

EOBRs have proven to be effective tools for HOS compliance management. Compliance Safety Accountability studies have confirmed that lower HOS violation rates are directly related to lower crash rates. EOBR use has doubled in the past two years, and driver log violations are decreasing at 12% annually for the industry.

A persistent EOBR myth is that dispatchers use EOBR data to find drivers with available hours and force them to drive when they are tired or not ready. Kraft said the reality is that dispatchers use EOBR data to avoid load assignments that could lead to HOS violations. Drivers often point out that EOBRs are fact-based logs that eliminate stress in communications with dispatch, and they do not want to go back to paper logs.

In short, EOBRs are an information management tool for both the driver and the carriers to better manage the driver’s time as well as maintain compliance. With EOBR,s carrier compliance management actions can ensure accurate, compliant logs both on the truck and at the back office.

Dave Kraft currently serves as chairman for the American Trucking Associations’ (ATA) Technology and Maintenance Council electronic on-board recorders (EOBR) task force, aiding in the development of industry guidelines for EOBRs.

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PENNTRUX 15

16 PENNTRUX

Transport Capital Partners recently teamed up with ACT Research to conduct a

national survey to better understand how carriers are thinking about the potential of natural gas fuel for their fleets. Slightly over half (51.4%) of the carriers surveyed are considering natural gas (NG) fueled trucks when new trucks are purchased, but these carriers do see hurdles. “The survey confirms the growing interest in natural gas by carriers encouraged by the large difference in price, but also shows the complexities of choices in terms of type of fuel, fuel supply systems, payload impact, station availability and so forth,” said Richard Mikes, TCP partner and survey leader. Ninety-four percent of respondents cite fuel station availability as an obstacle while almost 90% are concerned about higher vehicle purchase prices. Additional concerns include needed product specs/performance (51.4%) and secondary market value (50%).

While carriers are potentially interested in NG as a fuel alternative, three-fourths of carriers would need a payback in only 1-2 years to facilitate a purchase decision. “The good news about natural gas as a source of energy for transportation is that the diesel gallon equivalent (DGE) compared to diesel is relatively insensitive to major swings in domestic natural gas spot prices. Diesel, in contrast, is highly sensitive to crude oil prices globally with major price swings possible,” said Ken Vieth, senior partner and general manager of ACT Research.

Half of the carriers surveyed reported that they would evaluate the new truck technology in this year and the next, with 28% saying that there will not be any new plans until 2013. A handful of carriers stated that their decisions would depend on the success and performance of the technology as well as the results from other carriers implementing the change. “The carrier’s overall decision can best be viewed through a truck life cycle economic model which considers initial costs of NG engines/systems, possible revenue reductions for payload impact, differential

between diesel and NG prices over time, maintenance cost impacts in carriers shops and over the road, and estimated sales price of used equipment. TCP has experience assisting carriers in such scenarios of equipment life cycle options,” Mikes said.

Almost half of the carriers surveyed would require a commercial NG fueling station to be within 100 miles of their operations, and for those carriers considering NG, LNG was preferred over CNG by 38% to 28%. CNG is more

preferred by the larger carriers, however.

Carriers are still learning about NG as a fuel alternative, though. Slightly over one-third of respondents reported little knowledge about the potential use of natural gas engines as part of their fleet while almost half (45.8%) report their knowledge as “average” or “above average.” TCP Managing Partner Steven Dutro said, “Significant fuel costs savings is motivating carriers to learn more about the natural gas alternative.”

As for predictions about the future, 29% of carriers expect NG fuel will account for under 5% of their fleet five years from now, 27.8% reporting that it will account for 16-25%, and 19% predicting that it will account for 6-15% of their fleet.

Of the carriers surveyed, the majority (44.4%) had an approximate length of haul between 300-600 miles and used their class 8 engines for line haul – short-to-long (90.3%).

For a copy of the full survey results, contact Richard Mikes at [email protected].

Transport Capital Partners, LLC, provides advisory services related to transportation mergers and acquisitions, capital sourcing, and operations and strategy with regional offices in Florida, Iowa, Colorado, Pennsylvania, Tennessee and Virginia. Please visit www.transportcap.com for more information. TCP is a member of PMTA.

New TCP survey shows carriers considering natural gas as fuel alternative...

but they have reservations.

Article used with permission from Transport Capital PartnersPENNTRUX 17

PMTA 2012 SEMINAR SCHEDULE › Recognition of Substance Abuse Training for Supervisors › Presented by PMTA › $95/member › $185/nonmember Seminar will include discussion and videos to help in determining reasonable suspicion of alcohol misuse and/or use of controlled substances by

employees. The training meets the federal requirements of Part 382.603 - 3 HOURS Tuesday, October 30, 2012 - 9:00 am to 12:00 noon

› Hours-of-Service Compliance Seminar › Presented by PMTA › $110/member › $198/nonmember Seminar will include review of 49 CFR, Part 395, related interpretations and exemptions, along with work projects on familiarization and auditing a

driver’s Record of Duty Status (logbook) - 5 HOURS Tuesday, October 23, 2012 - 9:00 am to 3:00 pm

› DOT Compliance Seminars › Presented by PMTA › $145/member › $225/nonmember Attending this class will better prepare you for compliance to CSA. The seminar will include discussion and overview of state and federal laws and

regulations governing the motor carrier industry and commercial motor vehicles e.g. Driver Qualifications Files, Commercial Driver Licenses, hours of service, drug and alcohol tests, etc. Each attendee will also receive the management edition of the current FMCSR handbook.

Tuesday, September 18, 2012 - 9:00 am to 4:00 pm Tuesday, November 6, 2012 - 9:00 am to 4:00 pm

› Motor Fleet Accident Investigation › Presented by PMTA › $205/member › $305/nonmember Control costs through a complete and thorough vehicle accident investigation. Develop skills in loss prevention, data collection and analysis. ADVANCED - also includes accident countermeasures - Tuesday, October 16, 2012 - 9:00 am to 4:30 pm

› HAZMAT Seminar › Presented by PMTA › $205/member › $305/nonmember This hazardous materials training seminar centers on regulatory training. The unique, function specific format provides greater understanding and

better retention. The seminar helps fulfill the 49 CFR Part 172 Subpart H for both the initial and recurrent training requirements. This program will also include CSA information.

ADVANCED - Tuesday, November 20, 2012 - 9:00 am to 4:30 pm

› Motor Fleet Safety Basics/Managing Motor Fleet Safety Programs › Presented by NATMI › $1450 This is a comprehensive course on all aspects of fleet safety. October 2 - October 6, 2012 - 8:30 am to 5:00 pm

› OSHA General Industry Outreach Training Program › Presented by PMTA and Great West Casualty Company › $215/member › $325/nonmember The program is intended to provide instruction on a variety of general industry safety and health standards. This is a 10-hour certificate course.

Course completion cards do not expire. Required 2-day attendance - Wednesday - September 26, 2012 and Thursday - September 27, 2012. 9:00 am to 3:00 pm

All seminars are presented at PMTA Headquarters, 910 Linda Lane, Camp Hill, PA 17011 UNLESS OTHERWISE NOTED For any questions or REGISTRATION FORMS, call PMTA at 717-761-7122 ext. 104, or e-mail Carol at [email protected].

REGISTER ONLINE AT PMTA.ORG/SEMINAR

NEw ADDRESS? If you have a new address, phone number or email address, please let PMTA know. We want to make sure you continue to receive news and information that help you as a trucking industry professional. Use this form to notify us of any changes.

Old Address

Name Company

Phone Email

New Address

Name Company

Phone Email RETURN ThIS FoRm To PmTA, 910 LINDA LANE, CAmP hILL, PA 17011, oR FAX To 717-761-8434

PennTrux Magazine delivers your message to over 5000 carrier, freight and transportation executives.

Contact Terry Meade today to see how you cancapture more business opportunities by advertising in PennTrux Magazine.

[email protected]

what are you waiting for?

selling goods or services to thePA Motor Truck Industry?

910 Linda Lane, Camp Hill, PA 17011-6409 717.761.7122 | www.pmta.org

20 PENNTRUX

Visit www.pmta.org and Fill out Your 2012 membership Application Today!

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PENNTRUX 21

PennTrux october Crossword By Myles Mellor Myles Mellor Theme Crosswords Myles Mellor is one of the top crossword writers in the world, publishing more than 100 crosswords and puzzles each month. He has published over 6,000 crosswords in newspapers, magazines, electronic devices and websites in the U.S. and internationally and has published numerous crossword books in Barnes and Noble and Books a Million stores nationwide.Crossword by Myles Mellor

1 2 3 4 5 6 7 8 9

10 11

12 13 14

15 16

17 18 19 20 21

22 23

24 25 26 27

28 29

30 31 32 33 34 35

36 37

38 39 40 41 42 43 44

45 46

47 48 49

50 51

52 53 54

Across

1. Are you reading me? (6 words)

10. Darling

11. Musical scale note after la

12. Vehicle between two trucks (2 words)

14. Where it's __

15. Billboard feature

17. Uses the seat

19. Sending the traffic another way

22. CHP state

24. Intelligent transportation systems, old name

25. Speeding trucker

28. I'm in!

29. Electric sea creature?

30. Hold

33. _____ wagon: gravel trailer covered with a tarp

36. Stumbling expression

37. 70's rock group, abbr.

38. See 26 down

40. They get the engine fired up (words)

45. Stopped working

46. End of the week

47. Truck tires

48. Speed up (4 words)

51. Down Florida way (compass direction)

52. Steak cooking order

53. Tin ___: CB radio

54. _____ your 20?

Down

1. Mile marker on the road side

2. California University

3. Can't go over 55 mph here

4. Vehicle weight measure

5. _____ management

6. The guy whose fault it was! (2 words)

7. Veggie that goes with gravy and mashed potatoes

8. Negative comment

9. Go to Macdonalds

13. ___ race

16. Lowered your high beams

18. Better than Expedition?

20. "Kill Bill" star, Thurman

21. Young ladies

23. Truck's life so far

26. Safety road often on a hill (goes with 38 across)

27. __ Doc Smith, Sci-fi writer

31. Environment protection agency

32. ____si

34. Canadian antlered animal

35. Pull another vehicle in a way (2 words)

38. Radio acknowledgement

39. "Get the ___ running, head out on the highway" Steppenwolf

40. Relative

41. Include

42. Flying saucer

43. It was all ____ to the mill

44. Locations

45. With no rain

49. Possess

50. Temperature control

assOCIaTe MeMBersHIP . . . . . . . . . . . . $ 75.00 additional members from a company which maintain a Primary Membership in PMTa.

aCTIVe VeTeraN . . . . . . . . . . . . . . . . . . . . . $ 50.00 any member who has been awarded veteran member status and desires to remain active on local chapter boards and/or the state board of directors.

DUES PAYMENTS ARE DEDUCTIBLE AS BUSINESS EXPENSES ONLY. (The deduction of amounts paid to PMTA as an ordinary and necessary business expense is subject to limitations imposed as a result of PMTA’s lobbying activities. PMTA estimates that 10% of your dues and other payments to the Association are non-deductible.)

ANNUAL DUES SChEDULE—EFFECTIVE JANUARY 1, 2012

* Dues for those operating trucks are based on the number of trucks (owned or leased) and operated in, into, out of, or through Pennsylvania.

*CarrIer (For Hire and/or Private)First truck. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 143.00 each add’l to maximum . . . . . . . . . . . . . . . . . . 26.00 Maximum. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,980.00

MaNUFaCTUrers . . . . . . . . . . . . . . . . . . . .$ 600.00 Those manufacturing commodities or equipment (trucks, trailers, tires or other commodities)

Trade MeMBers . . . . . . . . . . . . . . . . . . . $ 385.00

PENNSYLVANIA moToR TRUCK ASSoCIATIoN910 Linda Lane, Camp Hill, PA 17011-6409 › Phone: 717-761-7122 › 800-382-1373 › Fax: 717-761-8434 › www.pmta.org

2012 mEmBERShIP APPLICATIoNapplication is hereby made for membership in the following Chapter of the Pennsylvania Motor Truck association:

Central Lancaster North Central Northeast Phila/delaware Valley south Central southwest York/adams

Firm Name _____________________________________________________ date_______________________

address __________________________________________________________________________________

County ___________ City ____________________________ state _______ Zip ______________________

representative’s Name _______________________________ Title __________________________________

Telephone Number ( _______ ) ____________ e-mail_____________________________________________ (PrINT CLearLY)

Fax Number ( _______ ) ____________ Nature of Business ________________________________________

*Total Number of Trucks and/or Power Units (over 10,000 gVW)

TYPe OF MeMBersHIP PLease INdICaTe TYPe OF eQUIPMeNT OPeraTed Private _______ dry Van For Hire _______ refrigerated Trade _______ Flatbed Manufacturer _______ dump active retired _______ Tank associate Other__________________________________ (PLease sPeCIFY)

How did you hear about our association?

SUBSCRIBER INDUSTRY SEGmENTS

arbor/Landscape Management attorneys/Professional services CdL schools Chemicals, allied gasses, Fuels, Hazmat Communications/Consulting Construction & Building Products & services dump Trucks & Trailers environmental Flat Beds Food & Beverage Insurance & Benefits Intermodal/express Freight/shipping Less than Truckload Logistics Lumber Paving & excavating repair shops, Inspections & Towing specialized Hauling storage & Transfer Transportation equipment & supplies Truck dealerships & Leasing Truck Manufacturing Truckload Truck Parts Manufacturing Waste & recycling Warehouse distribution Other_________________________

PENNTRUX 23

Transportation Safety Day is for drivers, trucking company representatives, company safety coordinators or representatives and any directly involved with the

transportation component of natural gas development. The day includes four education sessions, with the goal of increasing understanding about Pennsylvania’s regulations and improving safe operating practices for drivers. Presenters are from PennDOT, PUC and the Pennsylvania State Police.Transportation Safety Day begins with registration at 7:30 a.m., followed by a welcome and keynote speech from 8 to 9:15 a.m. Each of the four sessions will be offered four times. The sessions are as follows:

PennDOTSpecial hauling permits are required and issued for oversize and overweight loads using Pennsylvania’s interstate highways, U.S. routes and other state highways. During this session, PennDOT will discuss the process by which these permits can be obtained and the penalties for violating their terms and conditions. This session will also address PennDOT’s posted and bonded roads program.

PUCThe PUC will discuss the Commonwealth’s Unified Carrier Registration (UCR) program, along with requirements for certain carriers to obtain PUC operating authority. Pennsylvania’s New Entrant Audit and Compliance Review programs and their impact on carrier operations will also be discussed.

PA State PolicE part iDuring part one of this two-part breakout session, Pennsylvania State Police motor carrier enforcement personnel will discuss

safety regulations with particular emphasis placed upon the most common violations found during roadside inspections of trucks supporting gas drilling operations.

PA State Police part iiDuring part two of this two-part breakout session, attendees will participate in an actual walk-around truck inspection performed by experienced field motor carrier inspectors. Attendees will have the opportunity to ask questions about how to operate in compliance with the applicable state and federal rules and regulations.

Cost for Transportation Safety Day is $100, and that includes all sessions, continental breakfast and lunch.

Flagger training is for supervisory individuals who train others within their organization. Attendees have the option of attending a four-hour morning or afternoon course. The course is a train-the-trainer session for people who can train personnel in their organizations who have flagging responsibilities on any road open to the public. It has been designed to meet the PennDOT Publication 408 flagger training requirements mandated for all flaggers in Pennsylvania. The course covers flagging procedures, work zone set-up requirements and traffic control devices based on information from PennDOT Publication 213 – Temporary Traffic Control Guidelines, the Manual on Uniform Traffic Control Devices. There is an additional module on the basics of adult learning so that trainers will be provided with background useful for setting up a flagger class and training adults.

Flagger training is $150, and that includes one session (morning or afternoon) and lunch. Attendees must pass a 20-question exam. The Marcellus Shale Coalition will provide copies of the presentations, handouts and quizzes for the training course. After course completion, a wallet card will be issued (valid for three years) as well as a CD with all training materials.

To register, email Sarah Smith: [email protected] or phone 724-745-0100, ext. 22.

Marcellus Shale Coalition offers safety training

The marcellus Shale Coalition is offering a Transportation Safety Day and Flagger Training on Tuesday, Oct. 30, at Mansfield University, Mansfield. They are separate events, with attendees from both events having lunch together.

24 PENNTRUX

TRUCKPAC RECoGNITIoNThe trucking industry faces challenges on many levels. In such critical times, we need to maintain a firm and unified voice. Legislators face thousands of bills every year, and PMTA’s Political Action Committee and lobbyists make sure they understand how new laws affect our industry.

You can help maintain and increase our political visibility and strengthen our positive force in forming policy. By donating to TruckPAC, you enable us to maintain our high profile and defeat, support and/or alter laws that have an impact on your businesses. To contribute to TruckPAC, contact PMTA at (717) 761-7122.

Your contributions to TruckPAC allow our association to have a stronger legislative voice. TruckPAC contributions should be sentto PMTA, 910 Linda Lane, Camp Hill, PA 17011.

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A B

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PENNTRUX 25

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JAN Kelley Marketing, its employees and agents (collectively referred to as “JKM”) shall not be held liable for any loss or damage

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ChapterEvents

PMTA

York/Adams & LancasterThe York/Adams and Lancaster chapters of PMTA are hosting a program called “Sleep Apnea and How It Affects Your Drivers.” The program is Wednesday, Oct. 17, from 8 a.m. to noon at John Wright Restaurant, 234 N. Front Street, Wrightsville. Cost is $20 (includes breakfast). George R. Robinson II, MD, of Wellspan will discuss the physical aspects of sleep apnea, testing for sleep apnea, DOT requirements and mandates for physicians. Doug Marcello, Esq., of Marcello and Kivisto, LLC, will discuss the potential legal and HR effects sleep apnea will have on trucking companies. RSVP by Friday, Oct. 12, to Beth Hamilton, [email protected], 717-724-3191.Event sponsors are Utility/Keystone Trailer Sales, Freightliner of Harrisburg, and Ronald Leiphart Trucking.

LehighThe Lehigh Chapter will meet on Thursday, Oct. 25, for a dinner meeting. For information, contact Patrick Meehan at 610-351-8771, [email protected].

Philadelphia-Delaware Valley The Philadelphia/Delaware Valley Chapter’s fall membership meeting is Thursday, Oct. 18, at Plymouth Country Club, Plymouth Meeting. For information, contact Dave Spera, [email protected].

Southwest The Southwest Chapter will meet on Monday, Oct. 15, at 6 p.m. at the Village Tavern and Trattoria, Pittsburgh. For more information, contact Ralph Byroad, [email protected].

South CentralThe Chapter will meet on Tuesday, Oct. 23. For more information, contact Dean Yockey, [email protected].

Sentry Knows Trucking

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Sentry understands trucking is your number one priority. That’s why we constantly review and enhance our coverages to provide you with the insurance protection you need.

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28 PENNTRUX

Sentry Knows Trucking

Property and casualty coverages are underwritten by a member of the Sentry Insurance Group, Stevens Point, WI. For a complete listing of companies, visit sentry.com. Policies, coverages, benefits and discounts are not available in all states. See policy for complete coverage details. * Some coverages available at additional premium. 563085 01/14/11

Sentry understands trucking is your number one priority. That’s why we constantly review and enhance our coverages to provide you with the insurance protection you need.

Some of the important coverages we provide include:• Unlimited towing coverage • Pollution liability• Unladen liability* • Enhanced deductible options• Bobtail coverage* • Blanket additional insured endorsement• Cargo pollution cleanup • Accident travel coverage• Workers’ compensation

Learn more about the products and services Sentry provides. Call today.

Pennsylvania Office 1-877-832-1835

Fax: 1-888-295-6919 [email protected]

PennTrux October 2012

Documents

Transcript of PennTrux October 2012