Issuu

MOTORTRUCK

JANUARY FEBRUARY 2015

CANADA’S BUSINESS MAGAZINE FOR FLEET OWNERS

Driver Turnover:

How to measure and quantify its cost

The Bottom Line:

Branding that works. What’s the secret?

Paper Be Gone:

A case study in automating manual processes

TOP

TIER Brisk M&A activity is changing the face of trucking. Does the entrepreneurial spirit of our industry guarantee the survival of smaller carriers?

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Volume 84, No. 01

January/February 2015

contents 19

Cover Story 19 CAN DAVID STILL TAKE ON GOLIATH?

Photo: Thinkstock

Brisk M&A activity is changing the face of trucking. Does the entrepreneurial spirit of the trucking sector guarantee the survival of smaller carriers?

26 TOP TIER CARRIERS Our annual listing of the country’s 100 largest carriers, and the next 25, as measured by equipment assets. See who is growing the fastest during the economic recovery. PLUS our annual breakout on which fleets are part of the nation’s largest conglomerates.

Photo: Thinkstock

Features

Departments 4 WHAT’S ON 6 THE VIEW WITH LOU 8 THE BOTTOM LINE 10 THE HUMAN EDGE 12 TAKING CARE OF BUSINESS 14 RISKY BUSINESS 38 INSIDE THE NUMBERS

The end is finally in sight for Day & Ross Transportation Group as a four-year-long information technology implantation nears completion. Find out how the industry giant is moving away from manual reporting and paper-based processes to automated, computer-based route planning, exception reporting, and driver communications.

Photo: Thinkstock

16 DATA DRIVEN

36 DOES SIZE MATTER? When it comes to shipper-carrier collaboration that is. Read what our Surface Transportation Summit panelists have to say about the cooperation, communication and commitment necessary for effective collaboration when either the shipper or the carrier is small or a start-up.

January/February 2015 ❙ FLEET EXECUTIVE 3

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

BLOGS

FEATURES

>W eathering winter

An insider’s look at logistics challenges and solutions for Western supply chain stakeholders.

ROGER MCKNIGHT

Where is the price of crude going? Why McKnight is certain you can take his forecast to the bank

CAROLINA BILLINGS

When the last thread breaks Spotting employee disengagement at work

TIBOR SHANTO

How to lose a sale with your first response When first approaching an unsuspecting prospect, how you present what you sell can determine the outcome

> I nside the IFTA/IRP audit process

To a trucker, IFTA and IRP are a decal and a cab card needed to get through a scale or a roadside inspection. To a fleet administrator, they’re a set of rules to follow in order to file fuel tax.

> A ero delivery: calm, cool, collected

One fleet that makes moving perishables and frozen goods look effortless.

Web TV:

Transportation Matters TOP FLEET EMPLOYERS Trucking HR Canada’s CEO Angela Splinter talks about the Top Fleet Employers Project which recognizes fleets across the country that improve the image of the industry though HR best practices BEING HEALTHY ON THE HIGHWAY Owner/operator of the Year, George Sutherland, tells us how he dropped 170lbs while on the road EXERCISING THE RIGHT TO SILENCE Paralegal Jodi Burness explains what drivers should and shouldn’t say to police after an accident THE GLAM OF ENTERTAINMENT TRUCKING Owner/operator and Truck News columnist, Mark Lee talks about the time he hauled equipment for Paul Brandt’s North American concert tour

SOCIAL MEDIA FIND US ON FACEBOOK facebook.com/trucknews

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THE VIEW WITH LOU

MOTORTRUCK

Think ahead

is written and published for owners, managers and maintenance supervisors of those companies that operate, sell and service trucks, truck trailers and transit buses. JANUARY/FEBRUARY 2015

VOL. 84 NO. 01 PUBLISHER & EDITORIAL DIRECTOR

The current respite from high fuel pricing is the perfect time to educate shippers about fuel surcharges Lou Smyrlis

MCILT, Publisher and Editorial Director • lou@transportationmedia.ca

he energy crisis is over for a long while. How long would that be? At least 30 years, according to the bold prediction made by Noel Perry of FTR Associates at a recent State of Freight webinar. Perry cited increases in energy supply in the US coupled with decreasing demand (guess all the fuel saving technology and driver training does eventually add up) for the expected long-term reprieve. With so much supply forecasted to be flooding the market for the next three decades, does this mean fleet owners can stop worrying about the volatility in fuel pricing they’ve had to deal with for much of the past 15 years? To answer that, let’s first take a look at what is causing the current drop in crude oil prices. Our own trucknews.com blogger, Roger McKnight, chief petroleum analyst with En-Pro International, likened the current situation in crude production to “a game of chicken with two trains heading directly toward each other.” One train is operated by OPEC (which really means the Saudis) and the other train is operated by all the other oil producers in general and North American oil sources in particular. McKnight explains the Saudis are bent on maintaining production at high levels as a play for market share. And when they’re accused of flooding the market and bringing prices down to dangerous levels (for the oil producers that is – transportation company owners couldn’t be happier with the new pricing levels) the Saudis point the finger at North American producers. And, as McKnight points out, there is reason to point the finger right back at North America. US crude inventories are at the highest levels in 80 years for this time of year, thanks to strong shale and oil sands production. In fact, the US is sitting on over 1.2 billion barrels of crude if you count the Strategic Petroleum Reserve along with the commercial inventories. And there is more crude finding its way into the market from the Canadian oil sands, even

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

James Menzies (416) 510-6896 jmenzies@trucknews.com FEATURES EDITOR

Julia Kuzeljevich (416) 510-6880 julia@TransportationMedia.ca CONTRIBUTING EDITOR

without approval of the Keystone pipeline. How? Expansions to existing pipelines have increased delivery capabilities by 2,030,000 bpd. Crude moving by rail on its own is projected to increase from the 200,000 bpd in 2013 to 700,000 bpd by 2016. Canadian exports of crude to the US are at record levels – 3,260,000 bpd. The Saudis are betting that North America will blink first in this game of “low price” chicken but, according to McKnight, existing oil sands facilities are enjoying operating costs in the $30 to $33/barrel range, which means their operations are still viable at today’s crude price levels of about $47 per barrel. So fleet owners can enjoy the next while; prices look to continue staying low, despite the cold winter, which would normally push diesel pricing upwards aggressively because there is market demand to turn crude into heating oil thus lowering diesel production. McKnight figures the floor price for crude will settle around $40/bbl. And he expects the market to get there around late March, pointing out that drilling rig counts are already starting to drop off and crude is being left in the ground due to the low pricing. But can crude oil pricing stay around the $40/ bbl long term? While that sure would be nice, if I’ve learned anything about fuel pricing over the past two decades I’ve been writing this column it’s that the only thing predictable about it is it’s unpredictability. Which brings me to another certainty I’ve learned over the years: shippers place a priority on controlling costs. And, as our research shows, they’ve been increasingly distrusting of the reasons behind the increases to their fuel surcharges in recent years. So perhaps now that we have a reprieve from high fuel pricing, this the ideal time for the industry to make an earnest effort to educate shippers on the need for fuel surcharges and how they’re implemented. It may save a lot of headaches the next time fuel pricing starts to spike…whenever that will be. FE

Sonia Straface (416) 510-6890 sstraface@TransportationMedia.ca CREATIVE DIRECTOR

Roy Gaiot rgaiot@bizinfogroup.ca ADVERTISING CREATIVE DIRECTORS

Carolyn Brimer Beverley Richards CONTRIBUTING EDITORS

Ken Mark Ian Putzger John G. Smith Carroll McCormick Harry Rudolfs ASSOCIATE PUBLISHER

Kathy Penner (416) 510-6892 kpenner@trucknews.com 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

VICE PRESIDENT

Joe Glionna PRESIDENT

Jim Glionna Head Office: 80 Valleybrook Drive Toronto, ON M3B 2S9 Motortruck Fleet Executive is published by Newcom Business Media Inc. 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, 80 Valleybrook Dr., Toronto, ON M3B 2S9 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)

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BOTTOM LINE

Golden branding If you lost your job today would you hire yourself based on your Google search results?

Photo: Thinkstock

By Mike McCarron

arrying the gold medals onto the ice during the final game of the recent World Junior Hockey Championship was one of the greatest experiences of my life. It was also the scariest! As I stepped onto the ice looking like a waiter from Denny’s it struck me that millions were watching on TV. That’s when the trembling started. It got worse when I saw that the slippery path to where the medals are presented was 30 feet long and choked with dejected Russian teenagers. Hours earlier, visions of a tickertape parade in Red Square danced in their heads. Now, after a 5-4 loss to Canada, the Russian players were in no mood to make way for the guy with the medals they didn’t win (one threw his stick into the stands). The good news is that even if I fell and embarrassed myself in front of millions it would be OK. Other than a bruised ego (and keister), the experience of having a pivotal role in such a high-profile event was great for my personal brand. Like a lot of Canadians I have a tremendous passion for hockey. I’ve been involved in the game all my life. When developing my personal brand strategy I recognized that junior hockey was part of my expertise. Working with Hockey Canada at the 2015 World Junior Championship was an

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opportunity to share that passion, build my personal brand, and even do a little business. If you’re thinking of growing and managing what people think of you, here are some things to consider:

Self audit You already have a personal brand. What is it? What do people think of you? How do you present yourself to the world? These are a few of the critical questions you must answer before you think about growing your brand. Start with the three C’s: coworkers, customers, and colleagues. You might be surprised by what they say about you! Then do a self-audit to see how you look to people who don’t know you. Google your name and take a critical look at the results. For most people the only things that show up are links to their LinkedIn and Facebook pages. That’s fine provided they reflect the image you want to portray. What if they don’t? Incomplete, picture-less profiles will damage your personal brand. So will the fact that you look hammered in every Facebook photo. If you lost your job today would you hire yourself based on your Google search results? Too many people have gaping trucknews.com

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BOTTOM LINE holes in their current personal brand that must be filled before they begin the process of building a new one.

Think like a brand You’re always being watched and every action contributes to your personal brand. In today’s ultra-competitive business environment one dumb move can have serious consequences. Before you scream at the referee over a penalty your daughter probably deserved, think of the implications. Letting your guard down for a second can be a lot more costly than a two-minute hooking penalty. It’s too bad you didn’t notice that the president of your largest customer is the coach of the other team. My rule of thumb: everyone is watching, even people you can’t see. There’s no recovery from the unknown!

The nicher, the richer Everyone is good at something outside of work. If you don’t have any outside passions I suggest you reflect on what you really enjoy doing. Being perceived as an expert in something other than transportation is essential for a strong personal brand. The more specific you can be, the better. Guess who ended up moving the truckloads of freight required to run the World Junior Championship? The organizers were happy when they discovered they had a transportation “expert” in their midst. Eventually the dots do connect.

End game counts Sounds obvious, but if you’re not sure what you want to accomplish by growing your brand then don’t waste time worrying about it. Letting nature take its course isn’t the worst thing you can do, but it’s better to take the initiative. The goals you choose will have a direct impact on how you approach developing your brand. Don’t be wishy-washy. Be specific and introspective so everyone is clear what your end game is. In my case, the goal was simple: use junior hockey to fill my trucks and my passion. After the ceremony I was amazed at how many people reached out to me. Turns out almost 8 million households were tuning in. Ironically, I can’t help but wonder how much more my brand would have grown if I had fallen on my butt. Maybe next time! In my next column I’ll discuss how to create and distribute your brand. 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.

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January/February 2015 ❙ FLEET EXECUTIVE 9

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THE HUMAN EDGE

LOOKING AHEAD, AND PREPARING FOR THE FUTURE By Angela Splinter

Trucking HR Canada

ith a New Year upon us, it is time to consider what the coming months may have in store. Here are a few issues and trends that Trucking HR Canada believes will influence the trucking industry in 2015:

1. Enhanced retention strategies The competition for new employees continues to intensify, and it is unlikely to ease. The Conference Board of Canada reinforced this by predicting we will be short 25,000 to 33,000 for-hire truck drivers as early as 2020. In selected regions, fleets are already struggling to find the workers they need. It is why employers are refining compensation packages to include more flexible rewards and innovative incentive programs. The fleets recognized through our annual Top Fleet Employers program demonstrate that the best practices are not stopping there. Expect to see more fleets embrace proven retention strategies such as employee recognition programs, and take further steps to build the positive and respectful workplace environments which attract and keep the best job candidates.

2. A growing focus on succession planning Even the most dedicated employees will not stay on the job forever. A typical driver is now over 44. One-in-five drivers is 10 FLEET EXECUTIVE ❙ January/February 2015

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Human resources issues and trends to watch in 2015

over the age of 54. And the number of retirements among every key occupation continues to rise. Statistics Canada reports that freight transportation supervisors are now retiring at a higher rate than any other transportation-related occupation. This reality is convincing more fleets to find ways to identify and prepare future leaders. Work like this does not happen overnight. The knowledge and skills of an operations manager, for example, is often developed over a span of many years. Expect more fleets to establish formal strategies to transfer the know-how of existing experts to the next generation of people who will fill different roles.

3. #SocialEngagement Even if you are not personally active in social media, existing and future employees are already there. Tools such as Facebook, Twitter and LinkedIn are actively being used as recruiting and communication tools. Properly managed, they offer effective venues to build a company’s brand, communicate with employees, and engage job candidates. The biggest challenge, however, is how easy it is for anyone to post information about your company—the good and the bad. Expect more fleets to adopt formal social media policies in the coming year, defining how the tools can be used, and perhaps more important, identifying exactly who can speak on behalf of the organization. trucknews.com

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4. Managing workplace diversity The numbers don’t lie. Young people, women, and many cultural groups are under-represented in the trucking industry, particularly when compared to other industries. Each demographic group needs to be expanded as fleets look to address the looming shortage of workers. Some employers have already embraced strategies to make a difference. Steps to manage generational differences are opening the lines of communications between younger and older employees alike. The focus on recruiting and retaining more women is gaining more prominence, as evidenced by Trucking HR Canada’s inaugural Women with Drive conference, which is happening on March 5 in Toronto. An increasingly diverse Canadian workforce, growing Aboriginal communities, and the large number of underemployed workers with disabilities will all have roles to play in recruiting and retention initiatives. To be successful, fleets will need to prepare for greater diversity in the workplace.

5. Enhanced driver training Ontario has openly committed to mandatory entry-level driver training, and provincial trucking associations across

Canada are actively pursuing steps to enhance training and certification models in their respective jurisdictions. The national Driving the Future project, which is clearly defining what a driver is expected to know and do, will play an important role in such work. Collectively, they are changes that will influence everything from fleet recruiting efforts to the onboarding programs which prepare new employees.

6. The growing recognition of HR in strategic business plans Whether fleets expand into new markets, introduce new processes, or adopt sustainability initiatives, human resources experts have a role to play. They are a natural part of every refined business practice. With plenty of changes expected in the year to come, those who continue to look ahead will be better prepared to meet HR challenges and opportunities. FE To learn more about human resources tips and techniques adopted by Canada’s Top Fleet Employers, download a free copy of the Drive to Excellence report at www.truckingHR.com.

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TAKING CARE OF BUSINESS

Accessing capital Financing rewards risk taking companies By Mark Borkowski

ow, in the midst of the cold mid-winter season, is usually when transportation companies warm up the hunt for capital. Although it’s common to hear that looking for money may be a futile quest, that’s far from the case. There is money, believe it or not, for individuals and companies with well thought-out business plans. That money is looking for those who have a good understanding of their business and market. Money is attracted to people who put their own net worth on the line. Smart people risking some of their own capital tend to make businesses into successes. But just as not everybody is willing to risk their own investments, not everyone is cut out to own or run a business. Whether you’ve been in business one week or five years, an infusion of funds is always welcome. But what type of financing is best for your business? There are so many factors to consider— from the stage of your business to how much it’ll cost to get the money—that just choosing a path to follow can be overwhelming. To help you get your head around the different ways you can finance the growth of your business, here is a mini-guide that covers the basic information on many different financing sources. There are three primary sources of capital and a fourth that is becoming an ever-growing source of equity and importance to small- to mid-market private companies. The first source, internal equity capital, is a direct result of personal capital of the shareholders and the profits of the business: owners putting their money on the line. Lenders are a second common source. They offer a number of different options including operating loans (secured by accounts receivable and inventory), and term loans (for equipment, buildings, land, etc.) sourced from a variety of financial institutions. Business loans are another option depending, of course, on the state of the company’s balance sheet and income statement. A third, more common, source of capital is arranged with suppliers. A majority of businesses find it indispensable to have trade credit as a part of financial structure. The fourth and least publicized method of obtaining capital comes from the use of investment angels. Angel money is a non-traditional source of equity that originates from a private individual with the funds to inject into a business. Angel investments can be more flexible than the more traditional routes—internal, lenders, and suppliers—which are fairly rigid in terms of financing, but they often are extended in exchange for a piece of the company. Beyond the four sources of capital listed above, there is one more that has helped launch countless businesses: FFF money. 12 FLEET EXECUTIVE ❙ January/February 2015

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If you haven’t heard of FFF money, the “FFF” stands for family, friends and fools. Many new entrepreneurs receive the initial funding for their businesses from people close to them, causing these relationships to start sliding toward disaster. While it may be easier to obtain FFF money, a good business owner will ensure that it is treated like any other capital investment and the generous family and friends are given the same respect (and payback terms) as any other financial institution.

Debt financing The deciding factor of whether companies can find capital becomes the willingness of the owner(s) to further “share ownership” of the business. Where control is a priority, debt leveraging becomes the single outlet for financing company objectives. It should be noted, however, that in today’s economy, highly leveraged companies are often doomed from the beginning and carry a heavy burden of risk. This burden of risk appears in two principle categories of debt: senior debt and subordinate debt. Senior debt, generally the least restrictive of the debt categories, depends on a strong asset-based value of the company. Subordinate debt is a type of capital that is usually unsecured or ranks behind the security position of the senior debt lenders

Equity investment The non-traditional routes, which include equity partners, are a more conservative and risk-averse method of raising capital. There is, however, a trade-off in terms of control. The decision in the search for capital hinges on the fight between control and leverage. Equity partners may not require the leveraging of assets but in return require a sharing of control. More often than not, those injecting significant capital from their pools of resources want a say in management decisions. But just remember, the basic rule to getting money is that you must be willing to put yourself at risk, at least to some degree. Individuals who ramble on about great ideas are not heard over the roar of those willing to live or die by their own abilities and putting their own money on the line. No one is suggesting that it is an all-or-nothing society we live in; however, when you yourself are at risk, people stand up and take notice. FE Mark Borkowski, is president of Mercantile Mergers & Acquisitions Corp. Mercantile is a midmarket M&A brokerage firm. He can be contacted at www.mercantilemergersacquisitions.com

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RISKY BUSINESS

SOLUTIONS TO HELP CARRIERS TURN SAFETY INTO A PROFIT CENTRE

Driver turnover How to measure the problem in your fleet and quantify the cost By Rick Geller

recent article in the Wall Street Journal, “The Jobs Companies Struggle to Fill”, caught my eye. It got my full attention when I read that truck drivers have now become the most difficult job for companies to fill; only 54% of the 242,000 jobs posted monthly between January, 2013 and August, 2014! It also got me thinking, given the current driver shortage problem, why trucking companies pay so little attention to their driver turnover rate. Too busy fighting fires ... Just a cost of doing business ... It’s an industry problem that I can’t fix ... I don’t know how to deal with it ... These are some of the responses I hear when speaking with carriers about their driver turnover rate. It is a rare exception, especially amongst smaller carriers, when the company monitors driver turnover numbers. Even rarer, when someone can tell me, with precision, the exact numbers and the associated costs. Too many companies deal with the issue of filling unseated trucks by lowering the bar on their driver selection criteria. “We have to take whatever we can get.” Driver turnover, like driver shortage, is only an issue if you let it be an issue. Praying for a higher power to fix it or waiting for government to legislate trucking into a more popular employer amount to hoping the problem will go away. And hope is not a strategy! Managing driver turnover involves measuring the problem; quantifying the cost; leveraging predictive models; and a commitment to keeping the good drivers that you have, rather than focusing on new and unknown ones. This month let’s look at how to measure the problem and quantify the cost. We can talk about leveraging predictive models and your commitment to your existing good drivers at a future date. Measuring the problem simply involves creating a spreadsheet to track when the driver began employment with your company; how they became aware of the opportunity at your company; when that employment ended, and; their reason for leaving. Driver turnover can be related to recruiting issues or retention issues. For this reason, it is important not only to track your turnover rate but also to track your new hire retention rate. Calculating your driver turnover rate is done by dividing the total number of drivers that quit or were terminated by the number of drivers employed at any given moment. Do not count seasonal or part-time drivers in the number that quit or were terminated. If your company employs 10 drivers, for

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example, and 2 left the company, then your driver turnover rate is calculated by dividing 2/10 or 20%. The new hire retention rate is determined by dividing the total number of newly hired drivers that remain with your company after 12 months by the total number of drivers hired in the last 12 months. For example, if you hired a total of 4 drivers but only 2 remain with your company after 12 months, then your new hire retention rate is calculated by dividing 2/4 or 50%. The importance of factoring in the new hire retention rate can be seen in the examples provided. While it is true that only 2 drivers left (out of 10), you must remember that, with a new hire retention rate of 50%, you will likely have to cycle through 4 drivers to find 2 keepers to replace the drivers that left. This means that your actual adjusted driver turnover rate is actually 4/10 or 40%. As mentioned, driver turnover can be related to recruiting or retention issues. The difference being in how long the exiting driver was employed with your company. If your new hire retention rate is low, then you likely have a recruiting issue. Are you hiring the right driver in the first place? Is there an alignment between the driver’s expectations and the company’s? If longer term drivers are leaving your company, then you likely have a retention issue. You are probably hiring the right driver but something is happening as their employment continues to make them consider other opportunities. And what are the costs associated with driver turnover. Estimates range from $5,000 to $12,500 for every new driver hired. Let’s take a middle of the road number, $7,500, and multiply that by the number of drivers you hired in the last 12 months. If your company had to hire 4 drivers in the last 12 months, the cost associated with that is about $30,000. Remember that even though you hired 4 drivers, you only ended up retaining 2 of them, essentially doubling your cost! Everything rides on your drivers. Carriers can no longer afford to have marginal, disinterested or disengaged drivers. Next issue we will talk about available counter-measures to manage your driver turnover. 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 both the Truck Training Schools Association of Ontario (TTSAO) and the Professional Truck Driving Institute (PTDI). He is also the incoming chair of the Toronto Chapter of the Fleet Safety Council, as well as an executive committee member for both the Ontario and Toronto Regional Truck Driving Championships. trucknews.com

15-02-12 10:07 AM

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Your annual in-depth report on the capacity, capabilities and insights of the nation’s largest carriers

elcome to our 10th annual Top Tier report offering a comprehensive look at the nation’s largest for-hire carriers. In the following pages you will find detailed and up-to-date information about the capacity and capabilities of the 100 largest for-hire motor carriers in Canada, as well as the next 25. This exclusive data is from annual research conducted on behalf of our research arm, Transportation Media Research. The past decade has seen significant changes in the equipment acquisition strategies of the nation’s top carriers – from the easy spending on new equipment days prior to the recession, to the extreme belt tightening of the recessionary years and the uncharacteristically cautious approach to fleet growth during the current recovery. Looking at the freight market on both sides of the border, there is good reason for optimism. Freight volumes remain steady with 58% of shippers responding to our annual Transportation Buying Trends Survey indicating plans to increase their freight volumes in 2015 compared to the previous year. The news is particularly good for trucking in comparison to competing modes. One third of shippers surveyed indicated they will be increasing their use of TL services while 43% indicated they would increase their use of LTL services in 2015. South of the border, US truck tonnage was up 3.5% last year and volumes look good into 2015.

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Canadian Class 8 truck sales rebounded in 2014 after dropping in 2013 but the 29,495 Class 8 trucks purchased in 2014 was still considerably below the fast capacity growth years of 2005 and 2006 and also about 1,000 trucks fewer than the sales for 2012. Top carriers are remaining careful about adding capacity too quickly in response to a slowly growing Canadian economy but well aware of the fact there is also a financial penalty associated with hanging on to their older vehicles. (While maintenance costs average out to about 5 cents per mile for trucks with under 550,000 miles on them, maintenance costs rise to about 15 cents per mile once that 550,000 mile threshold is reached, according to research from the American Trucking Associations.) Since the start of the economic recovery, Canada’s 100 largest carriers have been acting considerably more aggressively in upgrading and growing their fleet in comparison to small- and medium-sized carriers but the growth is still moderate: up a bit more than 3% in 2014 from the previous year. Heightened mergers and acquisitions activity is also certain to have an impact in keeping the lid on capacity growing too quickly. (Read our feature story on that issue and also be sure to check our tables showing the fleets owned by three of the largest and most aggressive acquirers in recent years, Transforce, Contrans, and Day & Ross.) The disciplined approach to capacity additions is paying off. Canadian shippers are becoming concerned about tightening capacity and that is having an impact on their views towards rates. One fifth of shippers expect LTL to have the highest pricing power in 2015 amongst all modes of commercial transportation and 31% expect TL to hold the highest pricing power in 2015. This comprehensive guide is not intended as a mere tally of vehicle counts. In fact, we have chosen not to list the top 100 carriers by size. The top 100 carriers are listed in alphabetical order because we believe that after a certain threshold, optimum fleet size is a reflection of the different markets these fleets are meant to serve. I would also like to thank the sponsors of our Top Tier report, Peoplenet Communications and Castrol who continue with their support. Their involvement is instrumental in helping us deliver such a comprehensive report. We hope our report serves as a tool not only for the largest carriers to keep tabs on their competitors but also as a tool for the smaller and medium-sized fleets to contrast their buying strategies with the industry’s largest and gain a fuller understanding of industry issues as they begin to rebuild their companies. FE January February 2015 ❙ FLEET EXECUTIVE 21

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Can DAVID still take on

GOLIATH? Brisk M&A activity is changing the face of trucking. Does the entrepreneurial spirit of the trucking sector guarantee the survival of smaller carriers? By Harry Rudolfs

22 FLEET EXECUTIVE â?™ January February 2015

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TOP TIER

Photo: Thinkstock

2015 TOP 100.indd 23

ergers and acquisitions continued at a brisk pace in 2014, and there’s no reason to believe they will abate in 2015. But the deal that rocked the Canadian trucking industry was that of sprawling giant TransForce buying up Contrans, a big trucking entity in its own right, based in Woodstock, Ont. The acquisition has most certainly raised eyebrows in the shipping community. “TransForce would rationalize their deal with Contrans on the basis that they are stronger in Quebec and Contrans is stronger in Ontario,” says transportation analyst Dan Goodwill, of Dan Goodwill and Associates. “It’s a market concentration strategy, but is it really good for the shipper? You could argue that there are still thousands of smaller truckload carriers out there, but this gives one company a lot of leverage.” The acquisition will no doubt provide TransForce with opportunities to find efficiencies, but the concern is that it will make it harder to find competitive pricing from a company that is not under TransForce’s umbrella. But Dean Mackie, president of Mackie Transportation Ltd., thinks that the entrepreneurial spirit of the trucking sector guarantees the survival of smaller carriers. “There will always be room for smaller players like ourselves versus the TransForces of the world. Contrans is one of our competitors and they’re a good competitor and I expect they will remain so. But the deal has placed a lot of capacity into the hands of one company,” he says. Ron Tepper, president and CEO of Ron Tepper Holdings which includes Canada Drayage Inc., Bruce R. Smith Transport and Consolidated FastFrate, is seeing steady growth in all divisions and adding trucks across the board. He agrees that there is a role for carriers who aren’t mega-players. “We consider ourselves under the radar, big enough to compete, small enough to be able to make adjustments and offer our customers a leverage point, rather than having to deal with only one company, owned by one guy.” Shortly after the Contrans/TransForce acquisition, Mullen Holdings Ltd., of Okotoks,, Alberta and mid-sized carrier Kriska Transport of Prescott, Ont., announced an interesting eastwest merger of some of their operations. In a unique arrangement, Mullen offered up its Mill Creek Transport division, combining it with Kriska Holdings Ltd., thereby creating Kriska Transportation Group, a new entity which will oversee the operations of both companies. In an interview with Fleet Executive, Kriska COO Jonathan Wahba acknowledged that the TransForce/Contrans deal proJanuary February 2015 ❙ FLEET EXECUTIVE 23

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TOP TIER

“

I truly believe capacity is shrinking, mainly driven by lack of drivers and the high cost of operation.

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O/O’s moved on to other carriers or hung up the keys at that time. The owner-operator strata of drivers is approaching retirement at a quicker pace than the pool of company drivers. Carriers are looking to hold off any crisis by recruiting more aggressively and increasing the pay packets for their brokers. “We are doing a lot of recruiting and we have people working on a total package that will include insurance, repairs and financing if necessary’,” says Tepper. “We continue to add things like repairs -- they can pay so much per month if they need to -- and things like fuel and tires we can buy en masse and offer at a discount.” An optimistic note seems to be spreading across the industry in adjacent sectors. 3PLs are doing well and gaining market share, acArmour cording to Goodwill. “3PLs are showing continued growth. Shippers like them because it gives them a full menu of shipping options. In the end, the freight still has to move by truck, whether it’s a freight broker or a 3PL organizing the movement.” Intermodal is also looking rosy. The consensus is that service is much improved, and one indicator is that a courier like Purolator is now using CP Rail to ship express trailers piggyback between Toronto and Montreal on weekends, something that would have once been absurd because of service constraints. “We’ll be continuing to use intermodal more as it is a more efficient way to move our loads,” says Armour. “We find the railways to be very responsible and have improved over the past few years by cooperating with carriers and creating partnerships. Intermodal has worked very well in our system and has provided our organization with a lot of opportunities.” LTL and TL carriers are seeing growth and increased demand. TL customers are locking in for longer contracts and there seems to be a new-found spirit of cooperation between some shippers and carriers, according to Mackie. “Freight rates are definitely edging up and will continue to do so. We’re seeing more opportunities, more people putting their work out to tender. In some cases, but not all, there seems to be more of a willingness to work with the carrier. They invite you down and show you their projections for the next year and ask how we can work together.” However, so much depends upon the weather, as Canadian carriers well know. Last year’s tough winter impacted every fleet’s bottom line. “It’s hard to plan against a winter storm when you have an operation with fixed costs,” says Tepper. “Last winter was horrendous and there are predictions there will be more of the same this year. We try to create as much variability in our costs as possible, but we have no control over the weather or how it affects our customers.” FE

“

vided impetus for the amalgamation with Mill Creek. “Our concern is if we don’t participate in that trend, at some point everybody will get bigger around us. Down the road we know we will compete with the big guys for customers, for drivers, for suppliers, and economies of scale make sense in the asset-based transportation business. So the driver shortage and consolidation are the two big triggers for us.” The deal is exceptional because it’s rare to have a publicly traded company (Mullen) combining with a private carrier rather than buying them outright. But on another note, Kriska CEO Mark Seymour suggests that the new Kriska has something to offer retiring fleet owners. “The Contrans/TransForce deal is eliminating a major player,” he says. “We’re offering another place to park your company. A lot of guys are in —Wes love with their companies and don’t want to sell it to someone who will change the nature of the company. We’re offering an alternative that will be respectful and sensitive to the culture.” As far as freight rates go, Goodwill thinks they are moving in one direction-and that’s up! “A lot of carriers that got burned in the last recession are being very careful about adding capacity. And it’s really hard to get drivers. I don’t see large numbers of people suddenly wanting to take up trucking.” Wes Armour, president and CEO of Armour Transportation Systems adds: “I truly believe capacity is shrinking, mainly driven by lack of drivers and the high cost of operation. We’ve seen it in US truckload and also in Canada, and I see truckload capacity continuing to become very tight within a very short amount of time. This summer there was not a lot of surplus of equipment or drivers to be found and a lot of shippers were quite concerned. In our case, we found that even the rental companies, both trailers and tractors, were sold out this summer which made it extremely hard to handle extra volumes,” he added. Armour also thinks that the strength of the US dollar will have an upward effect on freight rates. “Freight rates are going to increase partially due to the strength of the US dollar. With a strong US dollar, carriers will be paying more for drivers, fuel, parts and new trucks, just to name a few,” he says. “The volatility of our dollar is going to increase costs for Canadian carriers, but will also drive business for our customers so I believe it will affect us both positively and negatively.” The “driver shortage” is on everyone’s mind and not just for company drivers. Owner-operators are even scarcer and much in demand. They supply a truck and driver and work as independent contractors. But their paucity is partially due to the fact that many carriers had to let many of their owneroperators go during the recession of 2008. Some of these

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The Top 100

LEGEND:THE TOP 100

Customer Line 800-895-2739 506-857-0205 800-665-8085 604-324-1333 780-826-3889 800-665-0415 800-462-4766 888-277-6484

Website www.apexltl.com www.armour.ca www.arnoldbros.com www.arrowtransportation.com www.breckels.com www.bigfreight.com www.bisontransport.com www.brsmith.com

Operating Area Multi-Regional Multi-Regional, North America, International Multi-Regional, North America North America Multi-Regional North America Multi-Regional, North America, International Multi-Regional, North America

Ser LTL D,E, D,E, D,D D,D D,F, D,E, D,F,

Brampton, ON

800-563-2223

www.calyxinc.com

North America

E,I,T

Brampton, ON Mississauga, ON Calgary, AB Concord, ON Brampton, ON Oakville, ON Sherwood Park, AB Kingsley Falls, QC Coteau du Lac, QC Kitchener, ON Cambridge, ON Halifax, NS Brampton, ON Woodbridge, ON Hagersville, ON Woodstock, ON Belleville, ON Mississauga, ON Mississauga, ON Hartland, NB Hartland, NB Vernon, BC London, ON Calgary, AB New Hamburg, ON Calgary, AB Plessisville, QC Quebec City, QC Rougemont, QC Lethbridge, AB New Westminster, BC Markham, ON Brampton, ON Belleville, ON Trois-Rivières, QC Saskatoon, SK Montreal, QC Winnipeg, MB Prescott, ON Woodstock, ON Puslinch, ON Edmonton, AB Brampton, ON Oshawa, ON Gore Bay, ON Brampton, ON Thunder Bay, ON Belleville, ON Dieppe, NB Brampton, ON Aldersyde, AB Mississauga, ON Bracebridge, ON Napierville, QC Edmonton, AB

905-494-4747 800-268-2228 888-868-7923 888-668-4626 800-387-9335 888-828-1727 780-449-6688 819-363-5800 800-363-5313 800-265-6467 800-265-6358 888-425-2753 888-425-2753 800-268-1564 800-263-8383 800-819-5259 613-962-6666 866-426-6929 800-332-6841 866-329-7677 866-329-7677 250-549-2157 800-308-2574 403-777-1644 800-665-2653 403-206-4000 800-267-4509 800-361-2093 800-361-8281 403-328-2345 800-822-4512 800-268-1729 416-644-2700 800-267-1888 819-370-3422 800-667-8557 800-856-5559 888-488-5550 800-461-8000 800-465-8265 800-263-8267 780-468-4300 855-256-6647 800-565-4646 800-265-1485 888-748-4388 807-623-0054 800-565-3708 888-643-5263 800-646-2013 800-661-1469 905-823-7800 800-461-5808 800-667-8780 780-465-0341

www.calyxinc.com www.canadacartage.com www.canadianfreightways.com www.cn.ca www.canpar.com www.caravanlogistics.ca www.carontransport.ca www.cascades.com www.cat.ca www.celadoncanada.com www.challenger.com www.clarkelink.com www.clarkelink.com www.fastfrate.com www.contransflatbedgroup.com www.contrans.ca www.cooney.ca www.con-way.com/en/freight www.dayrossgroup.com www.dayross.ca www.dayrossgroup.com www.dctchambers.com www.dougcolemantrucking.com www.entrectransport.com www.erbgroup.com www.gibsons.com www.boutinexpress.com www.groupeguilbault.com www.robert.ca www.hrtrans.com www.herculesfreight.com www.highlandtransport.com www.hbc.com www.itstruck.ca www.transforcecompany.com www.siemenstransport.com www.kingswaytransport.com www.kleysen.com www.kriska.com www.contrans.ca www.contrans.ca www.landtran.com www.loomis-express.com www.mackiegroup.com www.manitoulintransport.com www.m-o.com www.mckevitt-trucking.com www.shipmts.com www.midlandtransport.com www.muirscartage.com www.mullentrucking.com www.musket.ca www.muskoka-transport.com www.normandintransit.com www.nictrucking.com

North America Multi-Regional, North America Multi-Regional North America Multi-Regional, North America, International North America Multi-Regional, North America North America Multi-Regional, International Multi-Regional, North America, International Multi-Regional, North America, International Multi-Regional, North America Multi-Regional North America North America

D,E, D,D LTL D,E, P D,D D,D L,LT D,D D,E, D,D LTL F,TL D,E, FB,T

Multi-Regional, North America North America North America North America North America Multi-Regional, North America Multi-Regional Multi-Regional Multi-Regional, North America Multi-Regional, North America Multi-Regional, North America Multi-Regional, North America Multi-Regional, North America, International International North America Multi-Regional, North America Multi-Regional Multi-Regional, North America, International Multi-Regional, North America North America Multi-Regional North America Multi-Regional, North America North America North America International Multi-Regional, North America, International North America International Multi-Regional, North America North America Multi-Regional, North America Multi-Regional, North America Multi-Regional, North America North America Multi-Regional, North America Multi-Regional, North America North America North America

D,D I,LTL D,L, DB,F

THE TOP 100 were chosen according to vehicle counts which included straight trucks, tractors, trailers and intermodal containers domiciled in or controlled from Canada. Top 100 carriers are listed in alphabetical order. Both parent company and holdings shown if large enough. Companies not reporting new capacity figures for more than 2 years are removed from the list.

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Headquarters Concord, ON Moncton, NB Winnipeg, MB Vancouver, BC Bonnyville, AB Steinbach, MB Winnipeg, MB Simcoe, ON

PM#40069240

Fleet Name Apex Motor Express/Western Canada Express Armour Transportation Systems Arnold Bros. Transport Arrow Transportation Systems B&R Eckel’s Transport Big Freight Systems Inc. Bison Transport Inc. Bruce R. Smith Ltd. Calyx Ground Transportation Solutions (National Fast Freight, Totalline) Calyx Transportation Group Canada Cartage Canadian Freightways (TransForce) Canadian National Transportation Ltd. Canpar Courier (TransForce) Caravan Logistics Caron Transportation Systems Cascades Logistique et Transport CAT Inc. Celadon Canada (including Hyndman Transport) Challenger Clarke Road Transport (TransForce) Clarke Transport (TransForce) Consolidated Fastfrate Inc. Contrans Flatbed Group LP (Contrans) Contrans Group Inc. Cooney Group of Companies Con-Way Freight Canada Day & Ross Dedicated Logistics (Day & Ross) Day & Ross Freight (Day & Ross) Day & Ross Transportation Group DCT Chambers Trucking Doug Coleman Trucking Entrec Transportation Services Ltd. Erb Group of Companies Gibson Energy Inc. Groupe Boutin Groupe Guilbault Ltee. Groupe Robert H & R Transport Ltd. Hercules Forwarding Inc. Highland (TransForce) Hudson’s Bay Company International Truckload Services (ITS) JC Germain (TransForce) Kindersley - Siemens Transportation Group Kingsway (TransForce) Kleysen Group LP Kriska Laidlaw Carriers Tank LP (Contrans) Laidlaw Carriers Van LP (Contrans) Landtran Systems Inc. Loomis Express (TransForce) Mackie Group Manitoulin Transport Group Maritime-Ontario Freight Lines McKevitt Trucking Meyers Transportation Services Midland Transport Ltd. Muir’s Cartage (Calyx) Mullen Trucking LP Musket/Melburn Transportation Ltd. Muskoka Transport Normandin Transit Northern Industrial Carriers

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D,D E,LT DB,L LTL, DB,L D,E, D,I,L D,D I,L,T LTL, E,L, D,I,L D,E, D,D E,F,H LTL DB,F L,TC DB,L TL D,E, P D,E, D,E, D,D D,F, D,E, D,E, D,TL TL I,F,L F,L,T E,L, D,E, CODES

nternational

nternational nternational

nternational

A capacity and capability guide for the country’s largest motor carriers Service LTL D,E,F,I,L,LB,LTL,P,TC,TL,W D,E,F,L,P,TC,TL D,DB,F,I,L,LB,TL,W D,DB,E,F,I,L,LB,LTL,TC,TL,W D,F,I,L,TL,W D,E,I,L,TC,TL,W D,F,L,LTL,TC,TL

Straight Trucks 140 150 3

E,I,TC D,E,I,L,LTL,TL,TC,W D,DB,E,F,HG,L,LB,LTL,TL LTL D,E,F,I,L,TC,TL,VC P D,DB,E,LTL,W,TL,TC D,DB,F,L,LB,TL L,LTL,TL D,DB,E,L,TL D,E,I,L,LTL,TL D,DB,E,F,I,L,LTL,TC,TL,W LTL F,TL D,E,I,LTL,P,TC,TL FB,TL D,DB,F,I,L,TL I,LTL,TL D,L,S,TL,W DB,F,I,L,LTL,TC,TL D,DB,F,LB,TL E,LTL,TL DB,L,LB,LTL LTL,TC DB,LB D,E,F,I,L,LTL,TC,TL D,I,L,LTL,TC,TL D,DB,E,F,I,L,LB,LTL,TC,TL,W I,L,TC,TL,W LTL,TL E,L,TC,TL D,I,L,TL D,E,F,I,L,TC,TL D,DB,F,HG,LTL,TC,TL E,F,HG,I,L,LTL,P,TC,TL LTL DB,F,I,L,TC,TL L,TC,TL,W DB,LB,TL TL D,E,F,L,LTL,TL,W P D,E,HG,I,L,LTL,TL,VC,W D,E,F,I,L,LB,LTL,P,TC,TL,W D,DB,E,F,I,L,LB,LTL,TC,TL D,F,L,LTL,TC,TL D,E,L,LTL,TC,TL D,E,I,L,LTL,P,TC,TL,W D,TL TL I,F,L,LTL,W F,L,TL E,L,LTL,TC,TL,VC D,E,I,TL CODES

By WordSmith Media Inc.

Tractors 260 950 225 400 251 190 1700 250

Trailers 580 3100 485 1050 1300 375 4000 770

Containers 110 400

733

14 371 14

154 1717 311 1050 76 250 320 160 325 450 1500 176

1723 2227 1013 7000 353 750 700 700 1100 1899 3300 261 426 598 424 2,679 600 309 1140 2162 3471 680 400 600 1275 1818 650 785 4000 1200 398 410 604 1250 508 1760 642 800 1300 355 616 725 349 420 2230 952 500 582 1817 405 7500 350 420 900 500

150

696 5 1

3 3 18 1 5 140 191 507 44 160 75 5 4 15 53

41 12

15 149 30 109 146 6 5 209 7 500 3 1

165 218 1,436 225 220 420 1177 1657 246 200 300 740 675 270 275 1200 550 202 159 45 380 153 637 265 225 400 248 237 300 10 225 716 438 180 175 730 230 3800 210 160 328 100

Terminals 21 26 5 33 16 6 6 7

Web V,R,C V,R V,R,C R V,R V,R,C V,R,C V

171

V,R,C

171

9 23 15 16 47 3 6 5 8 14 5 3 14 17 4 5 7 12 15 35 82 5 9 13 10 15 7 9 24 8 24 4 5 7 2 19 12 9 3 6 3 14 73 4 75 22 4 7 29 3 140 3 3 1 4

V,R,C V,R,C V,R,C V,R V,R,C V,R,C V V,R,C V,C V,R,C V,R,C V V V,R,C V,R,C

20 200

7000 50

190 114 264 201

7 53 400 550

20 450

12 424 33 173 450

V,R,C V,R,C V,R,C V,R,C V,R,C V,R V,R,C V V,R R V,R,C V,R,C V,R,C V,R,C V,R,C V,R C V,R,C C V V,R,C V,C V,R,C V,R,C V,C V,R,C V,R,C V,R,C V,R,C V,R V,R,C V,R,C V,R,C V,R,C C V,R,C C V,R,C V,R,C

O perating Area: Regional – One province/state; Multi-Regional – Selected provinces/states; North America – Canada, U.S.; International – Canada, U.S., Mexico/Other. Types of Service: D – Dedicated Contract; DB – Dry Bulk; E – Expedited; F – Flatbed; HG – Household Goods; I – Intermodal; L – Logistics; LB – Liquid Bulk; LTL – Less than Truckload; P – Package; TC – Temperature Controlled; TL – Truckload; VC – Vehicle Carrier; W – Warehousing. Web Services: Web Visibility – Tracking & tracing (V); Web Reports – Downloadable reports (R); Web Custom – Customizable reports (C).

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Top 100

continued

Fleet Name Paul’s Hauling Ltd Penner International Purolator Courier Quik X Transportation & Quiktrax Intermodal (TransForce) Rosedale Group Rosenau Transport Ltd. Schneider National Inc. SGT 2000 Inc./ SGT Group Shadow Lines Transportation Group Simard Transport SLH Transport Sokil Transportation Group Speedy Transport Inc. Thomson Terminals Ltd. Total Logistics Trucking TransForce Inc. Transfreight Transport Bourassa Transport Herve Lemieux Transport Morneau Trans-West Inc. TransX Group of Companies Travelers Transportation Services Trimac Transportation Ltd. TST Overland Express (TransForce) UPS Freight VA Inc. — Transport-Logistix Van Kam Freightways Ltd. Verspeeten Cartage Ltd. Vitran (TransForce) Warren Gibson Ltd. Williams Moving and Storage Wilson’s Truck Lines Ltd. Wolverine Freight System XTL Transport Inc. YRC Reimer Express Lines Ltd.

Headquarters Winnipeg, MB Steinbach, MB Mississauga, ON

Customer Line 204-633-4330 866-729-7134 888-744-7123

Website www.paulshauling.com www.penner.ca www.purolator.ca

Operating Area Multi-Regional, North America North America International

Ser D,D D,E, D,E,

Mississauga, ON

800-461-8023

www.quikx.com

North America

LTL

Mississauga, ON Edmonton, AB Guelph, ON St-Germain-de-Grantham, QC Langley, BC Lachine, QC Kingston, ON Edmonton, AB Brampton, ON Rexdale, ON Toronto, ON Montreal, QC Kitchener, ON St-Jean-sur-Richelieu, QC St-Laurent, QC Ste-Arsene, QC Lachine, QC Winnipeg, MB Brampton, ON Calgary, AB Mississauga, ON Mississauga, ON Laurier Station, QC Surrey, BC Ingersoll, ON Concord ON Alliston, ON Coquitlam, BC Etobicoke, ON Windsor, ON Toronto, ON Mississauga, ON

877-588-0057 800-371-6895 800-461-3168 800-363-4216 800-663-1421 888-282-9321 800-661-2146 800-661-9923 800-265-5351 800-771-7487 888-827-8521 514-331-4000 888-890-0400 800-363-9254 800-561-2923 514-325-2727 905-602-5427 800-665-7392 800-265-8789 403-298-5100 888-878-9229 800-742-5877 800-363-8175 888-229-9889 800-265-6701 416-798-4965 800-461-4374 866-967-6683 416-621-9020 800-265-5051 800-361-5576 877-330-3321

www.rosedalegroup.com www.rosenau.org www.schneider.com www.sgt.ca www.shadowlines.com www.simard.ca www.slh.ca www.sokil.com www.speedy.ca www.thomsongroup.com www.totallogistics.com www.transforcecompany.com www.transfreight.com www.bourassa.ca www.transportlemieux.com www.groupemorneau.com www.groupetranswest.com/en/ www.transx.com www.travelers.ca www.trimac.com www.tstoverland.com www.ups.com www.vatransport.com www.vankam.com www.verspeeten.com www.vitran.com www.warrengibson.com www.williamsmoving.com www.wilsonstrucklines.com www.wolverinefreight.ca www.xtl.com www.reimerexpress.com

Multi-regional, North America Multi-Regional Multi-Regional, International International North America Multi-Regional Multi-Regional, North America North America Multi-Regional, North America Multi-Regional, North America Multi-Regional, North America

D,E, LTL, F,I,L D,TL D,E, D,E, D,E, D,E, E,LT D,E, D,E,

International North America Regional Multi-Regional North America Multi-Regional, North America, International North America, International North America North America International North America Multi-Regional, North America Multi-Regional, North America North America Multi-Regional, North America North America Regional Regional, North America North America Multi-Regional, North America, International

D,E, D,E, D,F, D,E, I,TC D,E, D,E, D,D LTL E,I,L D,L, D,E, D,I,T LTL F,I,T D,E, D

Customer Line 800-463-4460 800-265-2743 866-426-6929 800-463-1671 800-993-3259 800-263-0240 800-263-4843 800-463-3138 800-387-0346 902-468-3100 888-209-3867 800-363-3666 800-265-9370 877-726-3329 800-786-2879 303-770-6511 800-265-6085 905-212-9001 418-684-2420 877-271-7108 800-363-9254 800-567-1470

Website www.besner.com www.blm.com www.con-way.com/en/freight www.tcfl.com www.deckx.com www.empiretrans.com www.fluke.ca www.gosselinexpress.com www.groupegoyette.com www.gtltransportation.com www.contrans.ca www.transforcecompany.com www.pronorth.com www.sameday.ca www.sunbury.ca www.Tforceenergy.com www.tforce-solutions.com www.trans4.com www.bernieres.ca www.b-b.ca www.bourassa.ca www.bourret.ca

Operating Area North America North America North America North America Multi-Regional, North America Multi-Regional, North America, International North America North America Multi-Regional North America North America Multi-Regional, North America Multi-Regional North America North America North America North America North America North America Multi-Regional, North America North America International

Ser D,HG D,E, I,LTL TL D,E, D,E, D,DB F,L,T LTL, D,I,L TL HG, F,LTL HG, DB,E F E,I,L D,L, D,L, DB,L D,E, E,HG

D,TL LTL

The next 25 Fleet Name Besner (TransForce) BLM Group Con-Way Freight Canada Couture (TransForce) DeckX (TransX Group of Companies) Empire Transportation Fluke Transportation Group Gosselin Express Groupe Goyette GTL Transportation Inc. Laidlaw Carriers Bulk LP (Contrans) Papineau International (TransForce) ProNorth Transportation Inc. Sameday Worldwide (Day & Ross) Sunbury Transport Ltd. TForce Energy Services (TransForce) TForce Integrated Solutions (TransForce) Trans4 Dedicated (TransForce) Transport Bernieres Transport Bessette et Boudreau Transport Bourassa Transport Bourret Inc.

Headquarters St-Romuald, QC Kitchener, ON Mississauga, ON St-Ephrem de Beauce, QC Winnipeg, MB Grimsby, ON Hamilton, ON Thetford Mines, QC Saint-Hyacinthe, QC Dartmouth, NS Woodstock, ON Saint-Jerome, QC North Bay, ON Mississauga, ON Fredericton, NB Denver, CO Etobicoke, ON Mississauga ON Quebec City, QC Saint-Hyacinthe, QC St-Jean-sur-Richelieu, QC Drummondville, QC

CODES

28 FLEET EXECUTIVE ❙ January February 2015

2015 TOP 100.indd 28

trucknews.com

15-02-12 1:23 PM

nternational

International

Service D,DB,E,L,LB,TL,W D,E,L,TL,W D,E,LTL,TL

Straight Trucks 10

Trailers 575 825 1285

Containers

174

Tractors 251 375 579

Terminals 6 7 123

Web V,R,C V,R V,R

LTL

143

502

294

V,C

D,E,I,L,LTL,TC,TL,W LTL,TL F,I,L,LTL,TC,TL D,TL D,E,I,LTL,TL,W D,E,I,L,LTL,TL D,E,I,L,LTL,TL,W D,E,F,I,L,LTL,P,TC,TL E,LTL D,E,F,L,TC,TL,W D,E,F,I,L,LTL,TC,TL

55 60

250 330 390 315 289 353 700 175 209 300 200 4741 222 168 300 381 150 1565 275 1112 305 169 250 380 280 9 295 94 190 187 425 627

650 1200 1100 1126 962 350 3000 600 650 800 375 15777 2065 382 250 941 400 3755 800 2619 1002 361 795 800 518 777 1250 225 690 462 1200 1281

14 24 3 8 6 7 12 5 5 12 6 417 12 1 3 21 3 13 5 51 27 48 5 12 1 11 2 9 2 2 5 21

V,R R,C V,R,C V R,C V,R,C V,R V,R,C V,R,C V,R,C V,R V, R V,R,C C V,R,C V,R,C V,R,C V,R V,C V,R,C V,R,C V,R,C V,R,C V,C

Tractors 90 125 220 77 150 68 110 60 60 85 165 97 125 60 150 220 33 130 98 150 168 110

Trailers 260 400 309 312 200 311 300 300 283 250 369 254 350 169 350 268 195 280 255 250 382 300

Terminals 4 2 12 2 4 1 1 2 8 2 2 2 5 32 4 8 15

Web

5 65 5 100 85 2 2828

D,E,I,L,LTL,TL D,E,F,HG,L,LTL,TC,TL,VC,W D,F,I,TC,TL D,E,L,LTL,TC,TL I,TC D,E,F,I,L,LTL,TC,TL D,E,F,L,LTL,TC,TL D,DB,F,I,L,LB,W LTL E,I,L,LTL,P,TC,TL D,L,LTL,P,TL,W D,E,F,HG,I,L,LTL,P,TC,TL D,I,TL LTL F,I,TL,W D,E,F,HG,I,L,LTL,TL,W D D,TL,W LTL

Service D,HG,L,TC,TL D,E,F,LTL,TC,TL I,LTL,TL TL D,E,F,I,L,TL D,E,F,TL D,DB,E,F,L,LTL,TC,TL F,L,TL,W LTL,TL D,I,LTL,TC,TL TL HG,L,LTL,TC,TL F,LTL,TL,W HG,I,LTL,P DB,E,F,L,TC,TL F E,I,L,LTL,P,TL D,L,LTL,TL D,L, LTL,TC, TL DB,LB, LTL,TL D,E,F,HG,L,LTL,TC,TL,VC,W E,HG,I,L,LTL,TL,W

CODES

1 39 25 83 6 14 2584 25 10

113

Straight Trucks

1 1 10

3 176 135

1 10

435 242 120 560

1469

880 110

442 100 250

Containers

112 65 24 17

3 4 1 2

V,R,C V R,C C V,R,C V,R,C V,R,C

V V,R,C V V,R,C V,R,C V V V,R,C V,R,C V,R V,R,C V,R,C V V,R,C C C C V,R,C

January February 2015 ❙ FLEET EXECUTIVE 29

2015 TOP 100.indd 29

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The next 25 Fleet Name Transport LFL Transport St-Michel Tri-Line Carriers LP (Contrans) TVM Ltd. TYT Group

continued

Headquarters Vallee Jonction, QC St-Michel, QC Rocky View, AB Cottam, ON Drummondville, QC

Customer Line 800-463-8881 866-554-9903 800-661-9191 800-667-1904 855-898-4768

Website www.transportlfl.com/en/ www.transportmichel.com www.contrans.ca www.tvmltd.ca www.groupetyt.ca

Operating Area Multi-Regional, North America North America Multi-Regional, North America Multi-Regional, North America North America

Serv TL L,LTL FB,T D,L,T D,E,

TransForce owned companies Fleet Name TransForce Inc. A&M International (TransForce) Bergeron (TransForce) Besner (TransForce) Canadian Freightways (TransForce) Canpar Courier (TransForce) CF Dedicated Services (TransForce) CF Truckload & Logistics (TransForce) CK Logistics (TransForce) Clarke North America (TransForce) Clarke Road Transport (TransForce) Clarke Transport (TransForce) Concord (TransForce) Couture (TransForce) Durocher International (TransForce) Dynamex (TransForce) EL Farmer (TransForce) Ganeca (TransForce) GHL Transport (TransForce) Golden International (TransForce) Grégoire (TransForce) Highland (TransForce) Highland Intermodal (TransForce) ICS Courier (TransForce) JC Germain (TransForce) Kingsway (TransForce) Kingsway Bulk (TransForce) La Crete Transport (TransForce) Loomis Express (TransForce) McArthur Express (TransForce) Mcmurray Serv-u Expediting (TransForce) Mirabel Logistic (TransForce) Nordique (TransForce) P&W Intermodal & MTMX (TransForce) Papineau International (TransForce) Patriot Freight Services (TransForce) Quik X Logistics & Axiom Warehousing (TransForce) Quik X Transportation & Quiktrax Intermodal (TransForce) Rebel Transport (TransForce) Roadfast (TransForce) St-Lambert (TransForce) Stream Logistics (TransForce) TForce Energy Services (TransForce) TForce Integrated Solutions (TransForce) TLS Trailer Leasing Services (TransForce) Trans4 Dedicated (TransForce) Transport America (TransForce) TST Expedited Services (TransForce)

Headquarters Montreal, QC East Angus, QC Amos, QC St-Romuald, QC Calgary, AB Brampton, ON Edmonton, AB Edmonton, AB St Laurent, QC Brampton, ON Halifax, NS Brampton, ON Toronto, ON St-Ephrem de Beauce, QC St-Felix-de-Kingsey, QC Dallas, TX Odessa, TX Carignan, QC Anjou, QC Bois-DesFilion,QC Plessisville, QC Markham, ON Markham, ON Toronto, ON Trois-Rivières, QC Montreal, QC Pintendre, QC La Crete, AB Brampton, ON Cambridge, ON Fort McMurray, AB Anjou Saint-Jerome, QC Oakville, ON Saint-Jerome, QC St-Laurent, QC

Customer Line 514-331-4000 800-832-3865 819-727-9404 800-463-4460 888-868-7923 800-387-9335 800-663-8477 800-663-8477 877-856-7580 888-425-2753 888-425-2753 888-425-2753 416-679-7400 800-463-1671 800-267-2042 214-560-9515 806-669-0913 800-561-7444 514-351-4501 450-628-0787 800-461-8813 800-268-1729 800-268-6794 888-427-8729 819-370-3422 800-856-5559 800-263-3642 800-422-9203 855-256-6647 800-668-9691 780-791-3530 514-231-0444 800-361-7958 905-815-9412 800-363-3666 514-631-2900

Website www.transforcecompany.com www.transforce.ca www.bergeronmaybois.com www.besner.com www.canadianfreightways.com www.canpar.com www.tfenergysolutions.com www.tfenergysolutions.com www.cklogistics.ca www.clarkelink.com www.clarkelink.com www.clarkelink.com www.concordtransportation.com www.tcfl.com www.durocherinternational.com www.dynamex.com www.elfarmer.com www.ganeca.ca www.ghltransport.com www.goldenintl.ca www.transportgregoire.com www.highlandtransport.com www.highlandtransport.com www.icscourier.ca www.transforcecompany.com www.kingswaytransport.com www.kingswayvrac.com www.latrans.ca www.loomis-express.com www.mcarthurexpress.com www.mcmurrayservu.com www.logistiquemirabel.ca www.transforcecompany.com www.mtmx.ca www.transforcecompany.com www.patriotfreight.com

Operating Area

Ser

Multi-Regional, North America Multi-Regional North America Multi-Regional Multi-Regional, North America, International Regional North America International North America Multi-Regional, North America Multi-Regional North America North America North America North America Multi-Regional Multi-Regional, North America Multi-Regional North America North America Multi-Regional, North America Multi-Regional, North America Multi-Regional, North America Multi-Regional, North America Multi-Regional North America Regional Multi-Regional, North America, International Regional, North America Regional Regional Multi-Regional, North America Multi-Regional, North America Multi-Regional, North America Multi-Regional

TL D,F, D,H LTL P D,L E,F, E,F, L LTL F,TL E,L, TL F D,E E,F, TL LB D,F, TL E,L, I,L P D,D LTL DB, LTL P LTL, D,E TL E,TL F,I HG, L

Mississauga, ON

800-461-8023

www.quikx.com

North America

Mississauga, ON

800-461-8023

www.quikx.com

North America

LTL

Edmonton, AB Mississauga, ON St-Romuald, QC Mississauga, ON Denver, CO Etobicoke, ON Saint-Laurent, QC Mississauga ON Eagan, MN Windsor, ON

780-464-5171 800-461-8023 888-338-3381 905-625-1770 303-770-6511 800-265-6085 514-351-7575 905-212-9001 651.686.2500 877-487-8911

www.rebeltransport.ca www.quikx.com www.st-lambert-transport.com

Multi-Regional Multi-Regional North America Multi-Regional North America North America Multi-Regional North America International International

F TL F,L L F E,I, L D,L TL E

TST Load Brokerage Services (TransForce)

Mississauga, ON

877-667-7703

North America

TST Overland Express (TransForce) TST Truckload Express (TransForce) Vitran (TransForce) Westfreight Systems (TransForce) Winalta (TransForce)

Mississauga, ON Mississauga, ON Concord ON Calgary, AB Spruce Grove, AB

888-878-9229 877-667-7703 416-798-4965 403-279-8388 888-447-3521

North America North America North America North America Regional

LTL TL LTL F F

CODES

www.Tforceenergy.com www.tforce-solutions.com www.tlslocation.ca www.trans4.com www.transportamerica.com www.tst911.com www.tst911.com/solutions/ brokerage.html www.tstoverland.com www.earnwithtst.com www.vitran.com www.westfreight.com www.winaltatransport.com

O perating Area: Regional – One province/state; Multi-Regional – Selected provinces/states; North America – Canada, U.S.; International – Canada, U.S., Mexico/Other. Types of Service: TL – Truckload; VC – Vehicle Carrier; W – Warehousing. Web Services: Web Visibility – Tracking & tracing (V); Web Reports – Downloadable reports (R); Web Custom –

30 FLEET EXECUTIVE ❙ January February 2015

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D – De Custom

International

ervice: m –

Service TL L,LTL,TL,W FB,TL D,L,TL D,E,F,HG,I,L,LTL,P,S,TC,TL,VC,W

Straight Trucks 37

Service

Straight Trucks 2828

TL D,F,TL D,HG,L,TC,TL LTL P D,L,W E,F,L,TL,W E,F,I,L,LTL,TL,W L LTL F,TL E,L,LTL,TL TL F D,E,F,LTL,P,TL,W E,F,TL,W TL LB D,F,L,LTL,TL TL E,L,TC,TL I,L P D,DB,F,HG,LTL,TC,TL LTL DB,LB LTL P LTL,TL D,E,LTL,P,W TL E,TL F,I HG,L,LTL,TC,TL L

14 696

Tractors 125 85 148 124 70

1302 61 2

289 12 7 149 22 3

Trailers 15777 109 99 260 1013 353 10 103 98

Containers 1469

176

261 426

114 264

77 60 101

312 125 94 150 92 47 175 220 410

28 29 100 76 159 67 1 153 265 75 27 10 45 5 19 40 109 97 16

L LTL F TL F,L L F E,I,L,LTL,P,TL L D,L,LTL,TL TL E

Containers

Tractors 4741 28 49 90 311 76

3 1

Trailers 200 350 231 285 370

136 3 508 642 180 70 349 150 5 48 112 254 265

11 167 24

1 2

143

502

19 16 15

57 312 29

135

220 33

115

130 1515 8

268 195 1138 280 4500 12

305 65 9 9 9

1002 133 777 78 22

Terminals 417 1 2 4 15 47 1 1 2 3 14 6 2 1 46 30 1 1 1 2 4 1 30 2 12 3 4 73 1 1 1 1 1 2 1

Web V,R,C V,R,C V V,R,C

Web

V V,R,C V,R,C V,R,C V V V V,C V V V,R,C V,R V,R V,R V,R V,R V, V,R,C C V V,R,C V V,R V,R V V, C

1 294

12 2 1 1 4 8 15 1 12 2

TL LTL TL LTL F F

Terminals 3 4 3 2 6

V,C V,C V,R,C V,R,C V V,R,C V V

1 14

442

27 1 11 4 1

V,R,C V,R,C R

D – Dedicated Contract; DB – Dry Bulk; E – Expedited; F – Flatbed; HG – Household Goods; I – Intermodal; L – Logistics; LB – Liquid Bulk; LTL – Less than Truckload; P – Package; TC – Temperature Controlled; Customizable reports (C).

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Contrans owned companies Company Name Contrans Group Inc. Brookville Carriers Flatbed Limited Partnership (Contrans) Contrans Flatbed Group LP (Contrans) Cornerstone Logistics LP (Contrans) ECL Carriers LP (Contrans) Glen Tay Transportation LP (Contrans) Laidlaw Carriers Bulk LP (Contrans) Laidlaw Carriers Tank LP (Contrans) Laidlaw Carriers Van LP (Contrans) Peter Hodge Transport Limited (Contrans) Tri-Line Carriers LP (Contrans) Tripar Transportation LP (Contrans) Wilburn Archer Trucking (Contrans)

Headquarters Woodstock, ON

Customer Line 800-819-5259

Web Address www.contrans.ca

Operating Area

Ser

Truro, NS

800-565-7554

www.brookville.ca

North America

FB,T

Hagersville, ON Oakville, ON London, ON Perth, ON Woodstock, ON Woodstock, ON Puslinch, ON Milton, ON Rocky View, AB Oakville, ON Norwood, ON

800-263-8383 877-388-2888 800-265-0934 800-450-9483 888-209-3867 800-465-8265 800-263-8267 800-387-6933 800-661-9191 800-387-7210 800-463-8136

www.contransflatbedgroup.com www.cornerstonelogistics.com www.contrans.ca www.contrans.ca www.contrans.ca www.contrans.ca www.contrans.ca www.peterhodgetransport.com www.contrans.ca www.contrans.ca www.contrans.ca

North America North America North America North America North America North America North America North America Multi-Regional, North America North America North America

FB,T L TL DB, TL DB, TL DB, FB,T LTL, DB,

Day & Ross owned companies Company Name Day & Ross Transportation Group Day & Ross Dedicated Logistics (Day & Ross) Day & Ross Freight (Day & Ross) Sameday Worldwide (Day & Ross)

Headquarters Hartland, NB Mississauga, ON Hartland, NB Mississauga, ON

Customer Line 866-329-7677 800-332-6841 866-329-7677 877-726-3329

Web Address www.dayrossgroup.com www.dayrossgroup.com www.dayross.ca www.sameday.ca

Operating Area North America North America North America North America

Ser

D,L, DB, HG,

CODES

9:00 PM

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11 12:00 PM

Service

Straight Trucks 5

FB,TL FB,TL L TL DB,LB,TL TL DB,LB,TL TL DB,LB,TL FB,TL LTL,TL DB,LB,TL

Service

Straight Trucks 507 140 191 176

D,L,S,TL,W DB,F,I,L,LTL,TC,TL HG,I,LTL,P

CODES

Tractors 1,436

Trailers 2,679

Containers

218

424

127 64 165 248 237 81 148 48 46

182 113 369 355 616 132 231 111 69

4 1 3 2 2 6 3 1 3 2 1

Tractors 1657 420 1177 60

Trailers 3471 1140 2162 169

Containers 17 17

Terminals 30

Terminals 82 15 35 32

Web

Web V,R,C V,R,C V,R,C

TMTV

New online episode every Thursday

500,000+ views

www.trucknews.com/videos/ January February 2015 ❙ FLEET EXECUTIVE 33

TMTV 1-2H.indd 1

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DATA DRIVEN

p 17

practices before automating. In particular the company needed to harmonize its procedures while taking into account regional differences and expectations. “We have a consistent process at a certain level all across the country. There is a degree of difference in the way different markets operate and different customers’ expectations as well as market practices. It took a while, but we chose to not rush, even though that was a little more expensive because we were very cognizant of how this has an impact on our service levels because it’s pretty easy for this to have an enormous impact on our service levels. We knew we would learn as we went across the country.” As an example of how operations work differently in different parts of the country, Rea compared Atlantic Canada with larger urban areas. Outside of Halifax or Moncton, he said the density isn’t there to support multiple routes. “Ninety-nine percent of the drivers that we have are owner/ operators with their own trucks and they have assigned areas or routes that they follow. When you get to a city like Toronto or Montreal or Edmonton or Calgary it’s a little bit different because there’s density issues that you have to deal with.” Additionally he said the way freight moves across and in various regions affects how the business operates. “There are slightly different payment practices across the country and the flow of freight tends to be a little bit different. In Ontario and Atlantic Canada there’s a certain amount of freight that kind of just flows into those particular markets and in between those markets whereas out West there’s a lot flowing in and so the effect on linehaul is a little bit up and down in the volume of work. All of those things affect your activity on the dock and how busy you are. The processes tend to be subtly different, and it’s enough to make a difference when you’re rolling out technology like this. You just have to be cognizant of it.” Having updated processes and procedures in place meant that Day & Ross could implement the Descartes solutions. Now, as soon as a customer places an order (either by phone or by self-service website), it is handled without human intervention by Route Planner. “That request is recorded and sent automatically through the data networks to a device the driver has, which says, ‘Please go here and pick this up.’ From soup to nuts we’ve automated the process.” Drivers receive routing and pickup or delivery information on Intermec CN70 ruggedized handheld devices, which can also be used to capture signatures at loading docks. Communications with the devices is handled by Descartes’s GPSbased Mobile application. Both Descartes applications rely 34 FLEET EXECUTIVE ❙ January/February 2015

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upon information stored in a Microsoft SQL Server database. According to Rea, the process of rolling out the software went relatively smoothly. “I wouldn’t say that there were no technology problems because there were some tweaks that had to be made to support functionality.” One of the technical issues that needed to be addressed was ensuring that drivers would always have a way to be in touch with dispatch, even in areas where coverage is limited, such as in warehouses that may interfere with signal reception. Rea said. “I hadn’t really thought about what a challenge that would be, to have to be in 100% communication with the drivers and have the system be a 100% available so they can do their job,” he said, explaining that Day & Ross has made it a point to brief drivers about what steps they can take (waiting for a better signal, going outside to eliminate building interference and resorting to paper forms if necessary) if they are cut off from their terminals while on the job. Along with giving drivers instructions about what to do if the technology doesn’t co-operate, Rea said as part of its change management approach, Day & Ross invested a lot of time introducing nearly 1,000 drivers to the new system and explaining how it works and why it’s an improvement over the old ways of doing things. “Owner/operators are independent business people and so they want to know, ‘is this going to make my life easier? Is it going to make it harder? Is it going to speed things up? Is it going to slow it down?’ ‘What’s going to happen to my pay?’ You get all of the pretty typical reactions. That was why we wanted to focus on the change management issues because we just don’t tell them, ‘Do this.’ It doesn’t work that way.” Even with the costs associated with revising old procedures, buying new servers, deploying software, hiring an extra IT person, Rea said the company is seeing results that make the investment worthwhile. Day & Ross has created efficiencies in the system, relocated personnel from terminals to a centralized call centre location, and moved a number of customers to the self-service, Web-based options. The one area where the company hasn’t seen much of an effect yet is in route optimization. Rea said the size, density and geography of Canadian cities don’t create a lot of opportunities for improving routing. The software, however, made some changes to the time drivers spend behind the wheel. “What you can do is you can plan your day a little better because the drivers tend to know this is the work list for the day. It makes it possible for the drivers and for the dispatchers to plan the day a little more,” he said. The one catch, with automating such core aspects of Day & trucknews.com

15-02-11 3:57 PM

Ross’ business, however, is that if something happens to the system, there is a major disruption to the business. “In the past we depended on cellphones and scanners, but if the paper didn’t go through and was interrupted for four or five hours, it wasn’t the end of the day, but today that’s not so. If this technology doesn’t work, for any reason, then we grind to a halt pretty quickly so it’s a mission-critical system. I have the master backup for the systems and a support structure with people where if I can’t figure out what the problem is then I get in touch with Descartes or some other experts that are available to me to sort this thing through.” Rea is philosophical about the prospect of downtime. His attitude is that everything can break down, including trucks. He said that the system has gone down before—he estimates it happens about once per year—but there are procedures in place that dictate what steps to take to keep operations running. One of the most essential ones is communicating with the terminals to let them know what is going on. “If it’s going to get fixed in five minutes then they’re not going to do very much, but if it’s going to be an hour then they will switch over to their disaster fallback procedure, which is using cellphones.” After the main part of the Descartes deployment is finally completed Rea expects to have his hands full with new IT projects. He said he’s considering adding on the Appointment Scheduling module and then branching out to some bigger infrastructure projects, including replacing the old backend technology and updating the company’s enterprise resource planning (ERP) system. Rea has also purchased a model tool set that will allow him to build a transportation management system for the dedicated division. He would also like to make some improvements to the call centre functionality, greatly expand Day & Ross’ ability to offer its customers self-service options and increase the company’s online e-commerce presence. Large IT projects, like the ones Rea is contemplating require a major commitment of time, resources, funds and personnel, but they are necessary investments for companies like Day & Ross. “I think that the big national and regional players take technology very seriously, and I say that because I meet them at various industry events and we talk. I think you need to use technology not just for the sake of technology, but because it really can add productivity to your processes. Also, I think the customers are demanding better awareness and visibility of what’s going on,” said Rea. “I would also add that many of the things the transportation companies can do to make themselves more productive and provide better service is not rocket science. There’s a lot of technology available that’s not complicated and not necessarily expensive.” He noted, however, that there is a divide between how easily large trucking companies adopt technology versus smalland medium-sized carriers. “I think actually it’s tough for small companies, not because technology is expensive. It’s because it can be a bit of a challenge to implement it and adapt your processes.” FE

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DECISIONS 2015

WHEN IT COMES TO SHIPPER-CARRIER COLLABORATION, DOES SIZE MATTER? The Panellists

JACQUIE MEYERS president, Meyers Transportation Services.

ELIAS DEMANGOS president and CEO of Fortigo Transportation Management Group.

SUSAN PROMANE director, supply chain, Whirlpool Canada.

LOU SMYRLIS publisher, editorial director Trucking Group, Transportation Media.

ANNA PETROVA associate director, supply chain, Ferrero Canada Ltd.

he Shipper-Carrier track at our recent Surface Transportation Summit focused on collaboration. Last issue we presented what the four panelists thought about cooperation, communication and commitment in making collaboration between shippers and carriers a working reality rather than just another buzzword. Much of the discussion centred on the collaborative approach deployed by well established companies. The last question, however, focused on how collaboration can be framed when either the shipper or carrier is new or small. Here’s what the panelists had to say: Q. When you are dealing with a start-up operation or a much smaller shipper that doesn’t

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time again that their customer-focused approach, along with their dedicated support team, strives to work hand in hand with their customers to unearth ways that they can help improve how they service and add value to their customers. Coupled with over 24 years experience and dedicated support to the Transportation and Logistics Industry, Shaw Tracking is committed to working with their customers to perform at unprecedented levels. Shaw Tracking continues to act as founding sponsor of the “Shipper-Carrier Issues Roundtable” for the eighth consecutive year. Shaw Tracking is pleased to continue to support the important insight and dialogue brought forward by prominent industry stakeholders. To learn more about Shaw Tracking, visit www.shawtracking.ca. trucknews.com

15-02-11 3:56 PM

have significant freight volumes, how do you work on collaborating? How do you look past the fact that you have really small volumes but you’re going to grow and you’ll eventually be shipping a lot more? PETROVA: It’s an interesting question because I think the small business needs to decide if transportation management is its core competency and so something you’re going to mind yourself or if you want to outsource it. That’s the way I would approach this question. Both approaches have advantages and disadvantages so it’s really very individualized to the smaller business. I would say it’s quite common for smaller companies to outsource transportation management, at the beginning at least. Or to work with a very, very limited number of reputable quality transportation companies. As you get bigger and reach critical mass, you can start getting more creative. MEYERS: If I can jump in for a second from the carrier side, just because you’re a small shipper, don’t assume you’re insignificant and we don’t want your business. I love nothing more than seeing a small start-up, especially if it has a big idea and I can buy into the idea and believe there’s growth. We love growing with our customers. Just because you’re small now, doesn’t mean you shouldn’t get the attention you need. But Anna is right, outsourcing or doing it in-house -you certainly have to consider the options. PROMANE: I would add one more thing. I think when you’re small -- and I’ve worked for very small companies -- the outsource decision is certainly important. But I think you’ve got to find the right one or two partners to work with. There are a lot of carriers out there who are very flexible, who will work with you. I think if you find the right carrier, it won’t matter how large you are or how large they are. We have some carriers who we deal with who are very large and multi-national. But we also deal with some carriers that, quite frankly, when I came into my role I wasn’t sure whether they would be a fit for our organization because they were small and family operated. But you know what, they fit just fine. I don’t think there is a one size fits all. DEMANGOS: I started my company seven years ago at the ripe old age of 23. There was family history in the business, so I knew a couple things about the trucking industry. Being small has its challenges but being small also has its advantages. You can do things a lot quicker. You can impact the customer a lot quicker. A lot of business folks will say, be big but act like you are small. It’s very tough to do though the bigger that you get. The key is to keep that culture that made you successful as you continue to grow. That incubation, that beginning, is very, very important to doing that. Just for me, it was focusing on the details, focusing on what the customer really wanted. What do you need? Let me work with you here. Here’s what I’m good at, how do we work together? Do that and you’ll find that you will grow. FE

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INSIDE THE NUMBERS

Pricing power Canadian shippers see 2015 being a fairly similar year to 2014 in terms of freight volumes, our latest Transportation Buying Trends Survey indicates. However, the survey also found shippers are becoming increasingly concerned about available capacity for all modes but particularly for Truckload services. As a result, almost a third of shippers expect Truckload is the mode that will wield the greatest pricing power this year.

TRUCK LOAD

31%

TL Freight Shippers

PROJECTED CORE TRANSPORTATION PRICING

ANTICIPATED CHANGES IN USE OF MODE

(excluding fuel surcharge)

Not sure

Increase

33%

Stay the same

Decrease

55%

13%

CAPACITY CONCERN

Border Security

11%

Flat

18%

Border Delay

17%

Up 0-2%

39%

Detention

31%

Up 2-5%

18%

Currency

Up 5% +

Fuel

97%

Not sure

13%

Other

Balanced

19%

LTL Freight Shippers

PROJECTED CORE TRANSPORTATION PRICING (excluding fuel surcharge)

Not sure Increase

42%

Stay the same Decrease

CAPACITY CONCERN

SURCHARGE PENETRATION

Down 0-5%

Border Security

21%

Flat

26%

Border Delay

14%

Up 0-2%

37%

Detention

14%

Up 2-5%

24%

Currency

11%

Up 5% +

Fuel

100%

Not sure

Other

14%

4.77

LTL Loose capacity

38 FLEET EXECUTIVE â?™ January/February 2015

Very tight capacity

LTL

ANTICIPATED CHANGES IN USE OF MODE

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6.06

TRUCKLOAD

% expect this mode to have highest pricing power in 2015

56%

SURCHARGE PENETRATION

Down 0-5%

Loose capacity

% expect this mode to have highest pricing power in 2015

Balanced

Very tight capacity

trucknews.com

15-02-11 3:59 PM

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