September 2017 Volume 37, Issue 8
TRUCK NEWS Eastern Canada’s Trucking Newspaper Since 1981
Delivering daily news at trucknews.com
Pages 10-13
Page 20
Page 34
Page 48
Private matters
Show business
Coping with PTSD
Keeping up with the times
Coverage of the Private Motor Truck Council of Canada’s annual conference.
What can you expect from the first ever North American Commercial Vehicle Show? We offer a sneak peek.
A trucker draws from his own struggles with post-traumatic stress disorder to help others.
Powertrain technologies have evolved, but have your spec’ing decisions kept pace?
Back to basics
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55
The Fergus Truck Show is history, but the first ever Great Canadian Truck Show proved the show can go on By James Menzies DURHAM, ONTARIO Rising from the ashes of the once mighty, now defunct, Fergus Truck Show, was the first ever Great Canadian Truck Show hosted at the Full Throttle Speedway in Durham, Ont., July 21-23. The event, organized by volunteers committed to keeping a truck show in the region, drew more than 60 trucks. One of those volunteers, Jennifer Hatch, told Truck News that many friendships were formed among show volunteers and the truckers who enjoyed the Fergus Truck Show in years past. It was important to them to offer a simpler, more grassroots show, where truckers could continue to gather and share their passion for trucks and trucking. For those who didn’t make it out to the Great Canadian Truck Show, but are familiar with Fergus, expect Continued on page 18
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Careers: 24-46 Ad Index: 57
Volvo takes wraps off new VNL ‘The most innovative, exciting new trucks from Volvo in 20 years’ By James Menzies DUBLIN, VIRGINIA Volvo has continued to revamp its North American product line, with the unveiling of a new VNL model at its new customer center here in mid-July. The first VN was launched in 1996, but was due for an update, Goran Nyberg, president of Volvo Trucks North America acknowledged during remarks before the unveiling. “Twenty years ago, we turned the industry upside down,” said Nyberg, moments before the truck was revealed for the first time. “We created a new commercial truck standard for aerodynamics, driver comfort, and safety. Since then, our competitors have been happy to benchmark everything we have been doing and they have slowly chipped away at our leadership position. In a few cases, I have to admit, we have lost the edge in areas where we stood head and shoulders above the competition. Well, that ends tonight. You’re about to see the most innovative, exciting new trucks from Volvo in 20 years.” The completely redesigned VNL is an upgrade in every imaginable way, particularly as it relates to driver comfort and amenities. As with the design of the VNR regional haul tractor Volvo introduced earlier this year, designers relied heavily on feedback from drivers. Rikard Orell, director, product design, said the new VNL was designed to be: bold, edgy, innovative, modern, and human. Its design was inspired by everything from sleek speedboats, race cars, and even the human
body. For example, the front and grille are wider at the top, and taper in towards the bottom, like the human body does from the shoulders down to the waist. Orell said Volvo aimed to capture a timeless design. It’s a sleeker looking truck, with a curvier front end and strong stance. Its lines give it a sense of motion, even when parked. But beauty runs only skin deep and this truck boasts more substance than just a prettier face. Jason Spence, product marketing manager, longhaul, said, “From the inside out, the driver was the informant, the person we asked. We went through surveys, we did clinics, we sat in the truck as drivers drove them, to get feedback, and we did this over and over and we refined these products so the driver is the focal point of this vehicle.” Volvo is predicting the VNL 760 with a new, larger, 70-inch sleeper will be the high-volume seller, replacing the VNL 670 with 61-inch sleeper that previously held that distinction. “We have confidence in this because our customers and their drivers have told us this is the truck they want,” said Spence. The new sleeper is nine inches longer and six inches wider than that found on the previous VNL 670. Improved aerodynamics deliver about a 1% improvement in fuel economy over the previous model, while engine enhancements this year add another 5.5% when taking advantage of the D13 engine with turbocompounding. The front bumper was moved 1.5 inches forward for improved aero, the bumper to back of cab (BBC) extended from 122.5 to 124 inches. Continued on page 44
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TRUCK NEWS
Contents
ISSN 0712-2683 (Print) ISSN 1923-3523 (Online)
Lou Smyrlis Director Business Development 416-510-6881 lou@newcom.ca Kathy Koras Associate Publisher 416-510-6892 kathy@newcom.ca A. (Tony) Hohenadel Publisher - truckandtrailer.ca 416-614-5800 tony@newcom.ca Dan Robinson Director Digital Marketing 416-510-5123 dan@newcom.ca EDITORIAL James Menzies Editor 416-510-6896 james@newcom.ca Sonia Straface Associate Editor 416-510-6890 sonia@newcom.ca
In Every Issue
Derek Clouthier Truck West Editor 403-969-1506 derek@newcom.ca
Marketplace ........... 49-55 Announcements .......... 57
DESIGN AND PRODUCTION Carolyn Brimer, Beverley Richards, Michael Chimienti, Tim Norton
Ad Index ....................... 57
ACCOUNT MANAGERS Anthony Buttino National Accounts Manager 416-458-0103 anthonyb@newcom.ca
Newland Transport ...... 60
Mark Dalton ................. 58 New Products .............. 61
36-37
Nickisha Rashid National Accounts Manager 416-614-5824 nickisha@newcom.ca
Fleet News
Delon Rashid Western Accounts Manager 403-713-1054 delon@newcom.ca
Feature Stories
Denis Arsenault Quebec Accounts Manager 514-938-0639 ext. 2 denis@newcom.ca
Rising from the ashes
Tony Jelicic Regional Accounts Manager 416-614-5813 tonyj@newcom.ca Doug Copeland Regional Accounts Manager 905-715-9511 doug@newcom.ca Paul Beelien Regional Accounts Manager 416-614-5806 paul@newcom.ca Truck News is published monthly by
Newcom Business Media Inc.
VICE-PRESIDENT Melissa Summerfield Director of Circulation Pat Glionna Subscription Inquiries Lilianna Kantor Phone: 416-614-5815 Fax: 416-614-8861 Email: lily@newcom.ca RETURN UNDELIVERABLE CANADIAN ADDRESSES TO: CIRCULATION DEPARTMENT, TRUCK NEWS 451 ATTWELL DR., TORONTO, ON M9W 5C4 PUBLICATIONS MAIL AGREEMENT NO. 40063170 CUSTOMER NO. 4006214
38-44
Equipment
The Fergus Truck Show is dead, but the new Great Canadian Truck Show was held in Durham, Ont., to carry on its legacy and return to its grassroots origin. 18-19
A new VNL Volvo has updated its VNL, completely redesigning it, inside and out. We cover all the highlights from the truck’s Dublin, Va., launch. 44
Detroit talks connectivity, Kenworth offers a vocational truck market update, and NACFE revisits its findings on 6x2 axles.
45
Scott Taylor – Tax Talk Revisiting the topic that never goes away: the driver service, employee or independent contractor?
46
Joanne Ritchie – Opinion
7
32
Why does the industry continue to accept outrageous driver turnover numbers?
The key OEM battleground has shifted from fuel economy to connectivity.
Let’s put the collective minds of truck engineers to work improving reliability and fuel economy, instead of focusing on emissions.
47
Editorial
9-25
Business CHAIRMAN & FOUNDER: Jim Glionna PRESIDENT Joe Glionna
A Quebec fleet gets a new look, and Jardine and Transport Guilbault expand through acquisition.
Coverage of the Private Motor Truck Council of Canada’s annual convention, five takeaways from Mullen Group’s Q2 earnings, and Canadian freight volumes reach new highs.
27
Mike Millian – Opinion Let’s get on with the electronic logging device mandate already, writes PMTC head Mike Millian.
Bill Cameron – Opinion
33
Karen Bowen – Health How clean is the air in your cab? You may be surprised. Here are some tips to keep it as clean as possible.
Technology PIT Group continues testing truck platooning technology.
48
Powertrains Powertrain technology has evolved. Has your spec’ing kept pace?
34-35
62
A Quebec driver is bringing awareness to the issue of post-traumatic stress disorder and truckers.
A look at Villeneuve Tank Lines and the Goldilocks concept that has proven successful.
Feature
The Last Word
29
Al Goodhall – Opinion Corporate values have changed over time, and not necessarily in the best interests of workers.
31
Mark Lee – Opinion For all the griping about electronic logging devices, well organized drivers and owner-operators are about to make a killing.
September 2017 • Truck News 3
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Inside the Numbers with Lou Smyrlis
Ramping up for renewal Eastern Canada’s carriers ready to renew their fleets Eastern Canada’s motor carriers have slowed down their new truck purchases the last couple of years due to concerns about a slow growth economy and overcapacity. However, optimism is building for greater economic growth in 2018 and the results from our just completed annual Equipment Buying Trends Survey indicate that fleet owners from the Maritimes to Ontario are once again ramping up their fleet renewal plans. Almost 7 in 10 respondents reported plans to replace at least 10% of their heavy duty fleet by the end of the year. Close to 4 in 10 are planning to renew their medium duty fleet. Next issue we report on their fleet renewal plans for 2018. Percentage of heavy duty fleet anticipate replacing by end of 2017
Trucking industry sector For-hire fleet
0%
51% of respondents 30% or more
Lease/rental fleet
Follow Lou on Twitter @LouSmyrlis.
Percentage of medium duty fleet anticipate replacing by end of 2017 0%
32% of respondents
63% of respondents
11%
2% 10%
Government fleet
17%
37% Private fleet
Geographic distribution
10%
9% 13%
23% 10%
20%
Size of medium duty fleet
3%
0 vehicles
1-9 vehicles
27%
1-9 vehicles
50%
10-24 vehicles
21%
10-24 vehicles
13%
25-99 vehicles
28%
25-99 vehicles
8%
100-499 vehicles
13%
100-499 vehicles
7%
500 or more vehicles
8%
500 or more vehicles
3%
0 vehicles
78% of respondents
8%
30% or more
20%
Size of heavy duty fleet
Ontario
Maritimes
6%
39%
of respondents
Quebec
20%
of respondents
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4 Truck News • September 2017
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Editorial
The truck as a member of the team I recently spent a couple days in sunny California, talking connectivity with members of Daimler Trucks North America and its Detroit Connect team. It’s no secret that today’s trucks are generating reams of data. But just how fleets of all sizes can use that data to improve their operations seems to be the crucial detail that still needs answering. Many fleet managers and their maintenance supervisors admit to being overwhelmed by the data that’s being produced by their vehicles. And OEMs and thirdparty software providers, to date, have not always done a good job at helping fleets easily drill down into that data to make it actionable and practical, or even understandable. This could be on the cusp of changing, as all OEMs invest more heavily into connectivity, the industry’s latest buzzword, and for good reason. It was during our discussions in California that I heard, for the first time, the truck referred to as an active member of the team. It is constantly generating data related to fault codes, safety system interventions, and driver and vehicle performance. Once this data becomes digestible, actionable, and practical
for fleet decision-makers, that truck does, in a sense, become an active member of the maintenance, safety, or operations department. This point was reinforced by Dan Deppeler, vice-president of maintenance for Wisconsin-based Paper Transport, who spoke at the event as a Daimler guest. He noted trucks
themselves have become commoditized, and that the real opportunity for differentiation between OEMs is in how they manage the data generated by their machines, and present it to fleet decision-makers. Deppeler went so far as to predict that whichever OEM manages this
the best will sell the most trucks. “This becomes a much more important piece of the purchase decision,” Deppeler said of telematics and connectivity. “Because the truck is beginning to become more commoditized and these are some nice differentiators.” What do fleets expect of their trucks’ connected services? At Paper Transport, it must remain open architecture, so the fleet can integrate its own apps, such as a customer-facing estimated time of arrival app currently in development, and another that provides a real-time window into the fleet’s available capacity. It must also contribute to greater, more consistent performance. Deppeler noted at Paper Transport, there’s currently a 1.2 mpg gap between the drivers with the best and worst fuel efficiency, when driving identically spec’d trucks on similar routes with the same payloads. Deppeler expects to narrow this gap to a more palatable 0.3-0.4 mpg, by using telematics to identify the root causes of the variances and by intervening with drivers who may require additional training. That’s
a great example of how truck-generated data can be used to drive realworld improvements within a fleet’s operations. But it’s really only possible if the trucks produce reliable data that is then presented to the fleet in an actionable format. All the OEMs today are building well designed, fuel-efficient trucks. The market simply would not accept anything less. Fleets have benefited greatly from the fuel economy battle waged between OEMs in recent years. Now the battle is shifting to a new frontier: connectivity. It will be really interesting to observe in the coming months and years, which OEMs will excel on this new battleground by best making truck-generated data digestible, practical, and actionable for fleets. TN
James Menzies can be reached by phone at (416) 510-6896 or by e-mail at james@newcom.ca. You can also follow him on Twitter @JamesMenzies.
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Business
Healthy Fleet Challenge participants lose nearly 500 lbs LONDON, ONTARIO The Healthy Fleet Challenge is over and in total all participants lost a combined total of close to 500 lbs. According to organizers, participants lost 479 pounds over the competition, an incredible feat considering weight loss wasn’t even the focus of many users. Other results include increased energy, stamina, strength, and confidence. Andrea Morley, nutritionist and health coach at Healthy Fleet, said, “Our participants exceeded our expectations once again. From a coaching standpoint, I gave them free reign on what areas of their health they would like to work on, and focused on educating them and motivating them towards reaching their goals. They each took responsibility, made a plan, and put it into action, feeding off of each other’s energy and ideas within the app.” Here are the final results of the June challenge: Winning individuals were: Donna Benjatschek, Wowtrucks; Fred Culver, Brian Kurtz Trucking; Jackie Mozil, Arnold Bros. Transport; David Benjatschek, Wowtrucks; and Marisa Lima, Brian Kurtz Trucking. The top teams were: Eassons Transport; Veriha Trucking; Arnold Bros. Transport; VersaCold Logistics; and Brian Kurtz Trucking. The new Healthy Team app was well-received by users who like the ease of use and community support it provided during the challenge, organizers said. Culver, the runner-up on the individual side of the challenge said, “I really love the app. I’ve already made friends on it that aren’t in my company. It’s really a supporting community and I’m not one for social media but it’s been a lot of fun and there’s a lot of encouragement there. I really like the tips from the coaches.” Roch Joly, a participant who has been driving for 31 years also loved the competition. He said the new app helped him shave off pounds by getting healthier meal ideas and encouraging him to be more active. “Myself being a diabetic, I have to watch my carb intake and my sugar and this (app) has really encouraged me to avoid those foods, because you normally have to post your meals,” he said. “I’m trying to be more creative with my meals because you can see what other people are eating and read the recipes. Before, I used to eat a lot of pastas and that has a lot of sugar and flour and I have to watch that. So now I’ve switched to vegetable spiraling as a substitute.” The app is available for Android and iPhone under the app store, and is called Healthy Team. TN
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Business
The ELD mandate and its impact on pricing
Lytx opens new Canadian office, R&D lab
Spot market prices could surge 20% as ELD rule takes full effect: FTR By James Menzies BLOOMINGTON, INDIANA When the U.S. electronic logging device (ELD) mandate is fully implemented, trucking productivity could take a 2.5% hit, requiring the hiring of 60,000 additional drivers. Such a scenario, outlined by industry forecaster FTR, would push truck utilization to about 100%, potentially driving up trucking rates. In a State of Freight Webinar called Preparing for the ELD future, FTR transportation economist Noel Perry expressed doubts that the industry, already struggling to find drivers, would be able to find 60,000 more in addition to the 300,000 it already needs to hire per quarter just to keep pace, especially since additional regulations in the works could further hit productivity and require the hiring of another 20,000 additional drivers. “Can we hire 80,000 extra people in a single quarter? Normal sources of hiring demand about 300,000, and it will climb to about 375,000 in the first quarter of 2018. That’s a
26% increase. We believe we can’t, so there’s going to be pressure on capacity until they catch up, some time late in the year,” Perry said. Such hiring spikes have been required before, most notably in 2004 and 2014, when capacity utilization reached nearly 100%. What happened then? Trucking prices spiked. In 2004, spot market prices rose 15% and contract prices climbed 10%, thanks to a productivity hit incurred by new hours-of-service rules coupled with strong freight demand. In 2014, spot market prices rose 11% and contract rates 4%. One week in 2014 saw spot market prices rise 20% as capacity utilization was at its max. Already, trucking capacity on the spot market is “scary tight,” Perry said, citing data from Truckstop.com and its loads-to-trucks ratio. “A 20% increase in spot rates is not outside the realms of possibility,” Perry said, looking ahead to the impact the ELD mandate will have on pricing. “Our conservative numbers are, if anything, underreporting what’s beginning to show in the marketplace.”
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But, predicting the impact of the ELD mandate on trucking productivity is an inexact science. Perry said an over-the-road truck that’s maximizing its hours could see a 5-8% productivity hit, while other trucks that don’t run a full 70 hours a week may not be affected. Perry also noted about 40% of U.S. fleets are currently already using ELDs and will have worked through any hit to their productivity. And of course, there’s no chart that shows how many fleets are running paper logs and egregiously violating hours-of-service regulations, and how many of them will be unable to continue operating in an ELD environment. But all those factors taken into account, Perry said the maximum effect of the regulation will occur sometime in late 2018, “assuming reasonable enforcement” of the law. “The effect at the peak, we think will be 2.5-2.7%, which doesn’t seem like much, but when you consider 3-3.5 million trucks and you take 2.5% of that, it equals somewhere around 60,000-70,000 trucks, using crude math.” TN
MARKHAM, ONTARIO Dr iveCa m ma ker Ly t x ha s announced its move into a new facility in Markham, Ont. The company is moving its local hardware and software development teams into a 13,000 sq.-ft. facility equipped with a research and development lab space, in an effort to “facilitate innovation and collaboration.” The new facility will host research, development and client/sales operations. Lytx says nearly 650,000 drivers use its DriveCam video safety program worldwide. The new facility is on Commerce Valley Drive West in Markham, the region’s technology hub. Up to 40 employees will work there. “Toronto is a magnet for technology talent, giving us a rich recruiting pool for expansion of our hardware and software development team,” said Lytx senior vice-president, human capital, Tonya Cross. “Innovation is a hallmark of Lytx’s market solutions, and the work of our Lytx Canada team will have a positive global impact for the company.” TN
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September 2017 • Truck News 9
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TRUCKING INSURANCE • Competitive Pricing • Fleet & Owner-operator Programs
Business
A peek across the border Private fleet benchmarking study offers insights By James Menzies
CARDINAL | 888 657-3329 HAMILTON | 888 690-0010
NIAGARA FALLS, ONTARIO Canadian private fleets are more likely to lease equipment, outsource maintenance, and suffer breakdowns than their U.S. counterparts, according to a benchmarking survey completed by private fleet organizations in the two countries. Results of the benchmarking survey were presented by the U.S.-based National Private Truck Council (NPTC) at the Private Motor Truck Council of Canada’s (PMTC) annual meeting and conference in midJune. The idea of the survey, according to Gary Petty, president and CEO of the NPTC, is to highlight for private fleet managers where they can find opportunities for improvement, relative to other private fleets. “The wolf is always at the door, ready to take over your private fleet,” he noted, citing as an example Kraft, which had a very well run private fleet until it was acquired by Heinz and transportation was outsourced. “More and more in corporate America, the people who make
“The wolf is always at the door, ready to take over your private fleet.” – Gary Petty, NPTC the financial decisions call the shots on whether this part of the operation is a go or a no go. This is why benchmarking is so important, to keep that value statement.” The survey, which was completed by more than 90 fleets, revealed some key differences in how private fleets in the U.S. and Canada are operated. Among those was the finding that nearly half of Canadian fleets lease all their equipment, with more than 75% leasing at least part of the fleet. This is much higher than in the U.S., where fleets are twice as likely to buy their assets. In Canada, 71% of those leases are full-service, including maintenance, so it’s no surprise that the vast majority (nearly 90%) of Canadian private fleets outsource maintenance, higher than the half that do so in the U.S. Canadian fleets also suffer more frequent breakdowns, at a rate of 5.91 per 100,000 miles of travel compared to just 2.84 breakdowns in the U.S. Leading causes of breakdowns are: emissions (by a wide margin), electrical, then engine. Canadian f leet managers, it seems, also have more to worry
10 Truck News • September 2017
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about than their American counterparts. Forty-five per cent of U.S. respondents cite the driver shortage as their main concern, well ahead of any other issue. In Canada, only 20% of fleet managers listed the driver shortage as their main concern, behind equipment/maintenance; and only slightly ahead of customer service concerns, with weather also figuring prominently. Trade cycles in the two countries are almost identical, at 6.5 years, however Americans put on about 624,214 miles in this period compared to the 379,700 miles Canadian fleets are racking up over the same time period. American private fleets run about 99,000 miles a year compared to the 57,000 miles Canadian fleets average, explained Tom Moore, senior vice-president, NPTC, who presented the findings. “You operate a lot fewer miles per unit than we do in the states,” he said. The private fleet average heavyduty fuel mileage is 6.01 mpg. When it comes to drivers, 95% of Canadian fleets employ company drivers, similar to in the U.S., however more American fleets use a combination of company drivers and lease-operators. Seventeen per cent of Canadian private fleets that responded to the survey have a unionized driving force, compared to 14% in the U.S. But 59% of Canadian private fleets have a combination of union and non-union drivers. The average driver age at responding Canadian private fleets is 47.3 years, about three years younger than in the U.S. “It presents a great area of opportunity and a great concern going forward,” Moore said. “These drivers are getting older; where are we turning to get new drivers?” Canadian drivers typically work 10 hours less per week compared to those in the U.S., and 85% are home every night compared to just over 60% in the U.S. Canadian private fleet drivers spend about 25 hours a week driving, and another 21 hours performing non-driving tasks. Driver turnover among private fleets in Canada is just 8%, roughly half the 15% turnover rate in the U.S. Canadian drivers tend to leave their fleet for another driving job (55%), retirement (39%), or another job entirely (31%). New hires in Canada are on average 36 years old, younger than the 42-year U.S. average. The starting salary for a Canadian driver at a private fleet is just over $50,000, similar to the U.S., and by the third year they’re making more than $60,000. But the maximum salary tends to be higher in the U.S. “The average in the U.S. is just shy of $70,000, and some companies are paying more than $120,000 per year,” Moore said. “That’s where it’s going. The typical driver is going to be like a free agent in sports. They’re going to be able to demand the salary they want from the carrier they
want, because they can walk up and say ‘Here’s my safety performance, if you want me, this is what you’re going to have to pay’.” Drivers in both countries receive excellent benefits, but Canadian drivers tend to enjoy better pensions while U.S. fleets are better at profit-sharing, Moore noted. American private fleets are more likely to pay incentives – 79% compared to two-thirds in Canada. And 88% of American fleets offer a driver wellness program, compared to just 70%
in Canada. American private f leets are employing on-board technologies to a greater extent than in Canada, the survey showed, and 88% of U.S. private fleets have an environmental sustainability program compared to just 64% in Canada. Further to that, 48% of responding American fleets are EPA SmartWay members, compared to only 17% in Canada. Private fleets on both sides of the border have low crash rates, but Moore warned overall heavy-duty
truck crash rates are trending up. “The last 15-20 years, we’ve seen the fatality rate drop. Over the last two years in the states, it has climbed back up,” he warned, noting 40,000 people were killed on U.S. roadways in 2016, a 6% increase from 2015 and up 14% from 2014. That’s the largest two-year jump in highway fatalities in more than 50 years. “There is no way we can achieve our legislative regulatory goals when we have safety like that on the roadways.” TN
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Business
The top 10 legal issues facing Canadian private fleets By James Menzies
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NIAGARA FALLS, ONTARIO The fast-tracking of a Canadian electronic logging device (ELD) mandate, and the inability to terminate employees in federally regulated companies are two of the main legal issues affecting the trucking industry in 2017. Heather Devine, partner with law firm Isaacs & Co., gave her popular legal update at the Private Motor Truck Council of Canada’s (PMTC) annual meeting and conference in mid-June, citing the top 10 legal concerns private fleet managers should keep in mind.
ELDs In December, the U.S. will require carriers to use ELDs to monitor driver hours-ofservice, and a Canadian mandate may not be far behind, Devine warned. She said while there’s still no firm deadline for an ELD mandate in Canada, she thinks there could be pressure as NAFTA is under discussion to adopt a mandate sooner than later. This could be a boon to U.S.-based ELD suppliers and could be an easy concession for Canadian regulators to make when wading into delicate NAFTA discussions with the U.S. “My advice to you is, it’s coming,” she said. “Since it’s coming, put it in your budgets, take a look at how you can implement ELDs.”
A job for life?!?! Federally regulated trucking companies may find it difficult, or even impossible, to terminate employees without just cause. This is thanks to a Supreme Court of Canada ruling that the Canada Labour Code prevents termination of non-managerial employees with more than 12 months of service without reason, effectively giving them a “job for life.” The ruling also states companies cannot offer termination pay in lieu of notice of termination, Devine warned. “Non-fixed term employees can literally be awarded a job for life unless the employer can prove that the employee was terminated with just cause,” she noted, adding it’s extremely difficult to prove just cause for termination. Interestingly, the case heard by the Supreme Court involved a truck driver. To terminate with just cause, the employer has to prove the employee “repudiated the contract of employment and disrupted the employment relationship to the point where it can no longer continue.” This can involve: serious misconduct; habitual neglect of duty; incompetence; and conduct incompatible with the employee’s duties. It does not include: missing work; poor performance; some acts of violence; and drug/alcohol abuse, if addicted. Devine advises putting new hires on a one-year contract with a probation period. Review their performance before the year is up and document everything, she suggested. Set up a progressive discipline policy and document every breach. If
there are warning signs, terminate the employee before the first year is over, which is when the Canada Labour Code protections take effect.
Deregulation of marijuana Canadian fleets should start preparing for the legalization of marijuana, scheduled for next summer, Devine warned. “Do anticipate people are going to use recreational marijuana,” she said, noting elements of the drug remain in a user’s bloodstream for a period of time and no tests are currently available to prove impairment. Devine said the best approach is to have an updated drug policy. Termination for marijuana use will be difficult, especially if the user claims to be addicted. “If you’re federally regulated, it’s very difficult to terminate unless you have just cause, and just cause doesn’t apply to someone who’s addicted,” she explained. “Addiction is a disability according to human rights legislation.” An employee who claims addiction must be accommodated. This means the company will have to offer an assistance program and will have to allow the employee to return to work upon completion of the program. The employer will also have to pay for the program and after care programs, even any transportation costs (ie. bus or Uber fares) to attend the program.
The driver shortage The impending ELD mandate could lead to more drivers leaving the industry, Devine pointed out. She said a June 2016 study indicated a Canadian driver shortage of 34,000 could hit by 2024, potentially increasing to a 48,000-driver shortage. Devine said the driving workforce is 97% male, presenting an opportunity to recruit more women. A professional driver earned an average wage of $23 per hour in 2014, which is above average, “but we all know about what longhaul drivers go through.”
Driver distraction Devine warned the federal government could introduce tougher legislation to fight distracted driving. Fleets need to have firm and clear policies against distracted driving, she suggested. They should include progressive discipline and educational components. Also, she warned, ensure any policies (ie. post-accident) don’t require drivers to use their devices when still driving. “I can’t say anything other than, protect yourself against what could be an expensive and horrendous result,” she warned.
Employees vs dependent contractors vs independent contractors How drivers are categorized by employers, themselves, and by Canada Revenue Agency (CRA) is an ongoing source of confusion. In Canada, there are two different tests used by CRA to determine if an individual is an employee or an independent
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contractor. They may also be considered a dependent contractor. Fleets that monopolize or control the driver’s business in any way could be considered to be employers. For example, if the operator isn’t allowed to haul loads for another company, then they could be considered a dependent contractor, in which case they are treated by CRA more like an employee and the fleet should be deducting and paying certain employment-related costs. Fleets that use drivers deemed dependent contractors can be held responsible for any unpaid remittances. Devine advised fleet managers to consult with a labor employment lawyer. They can also ask the feds for a ruling before the end of the year, to ensure they’re managing drivers properly. “Not enough people do that,” said Devine. “Why not, if you think you’ve done it right, go get a ruling that (CRA) agrees? It’s less expensive to get a ruling ahead of time than to find out after the fact that they don’t agree with you.”
Cross-border issues When trucking into the U.S., Devine said fleets must be aware that legal judgments against carriers are skyrocketing, sometimes amounting to more than US$100 million. “You have to prepare for those horrendous judgments that can come down in the U.S.,” she warned. Since most carriers don’t carry $100-million insurance policies, she suggested ensuring the company’s assets are separated from the main business. That way, if the fleet suffers a crash in the U.S., the plaintiff attorneys can’t target the other assets of the main company. She also said fleets operating in the U.S. should have legal contacts there before an accident – or even an immigration issue involving a driver – even occurs. “When you need a lawyer, that’s when they’re hard to find,” Devine quipped.
Cargo crime Devine noted Ontario has climbed the ranks of where cargo crime most frequently occurs, landing in the second spot behind only Texas, accord-
ing to monitoring service CargoNet. Fifty-eight per cent of reported thefts involved a stolen vehicle, and 54% involved the theft of cargo.
Brokering backhauls As private fleets seek out freight to fill empty trailers on backhauls, Devine said it’s important to keep in mind this changes the status of the private fleet to that of broker. “If someone says ‘I delivered my load of goods out of Nova Scotia, the truck is empty and I want to offset some of the cost of that truck coming back,’ and they start calling around to get a load, you are brokering that space. That’s important to remember,” Devine explained. “Whoever it is that’s giving you the load becomes your customer. You need agreements you may be unfamiliar with because you didn’t consider yourself a broker.” It may also require the fleet to carry additional insurance, if the load is worth more than $2 per pound. Devine said to arrange through the contract of carriage that the customer bears the cost of the extra insurance, and to clearly state the company’s limitation of liability to $2/lb unless willing to add more insurance coverage. The contract should also be approved by the fleet’s insurer, she added.
New technologies Autonomously driven trucks and other safety technologies are rapidly arriving in the industry, but can they make trucking less safe? Devine said lawyers are looking to see how new safety technologies can potentially take a driver’s focus off the task at hand. But the potential of technology to reduce crashes and expensive judgments should be considered, she added. A property damage payout in the U.S. ranges from $100,000 to $200,000, an accident with injury from $135,000-$455,000, and if there’s a fatality, then it will cost from $885,000 to $1.3 million or more. Those are some large payouts compared to the cost of a lane departure warning system (US$700-$800), or a collision mitigation system that can reduce rear-end fatalities and injuries by 20-25%. TN
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Special Olympics convoys set to roll NIAGARA FALLS, ONTARIO The Private Motor Truck Council (PMTC) this year donated $1,000 to Canadian convoys to support Special Olympics. The money was presented on behalf of speakers at the PMTC conference in June. “This is a great cause, and one the PMTC is proud to help support,” said PMTC president Mike Millian. World’s Largest Truck Convoy for Special Olympics events are held throughout Canada this year, beginning Aug. 28 in P.E.I. and culminating Sept. 23 in Nova Scotia. In between, there are stops in Manitoba on Sept. 9, Saskatchewan on Sept. 10, two in Ontario on Sept. 16, as well as one in Alberta on that same day. For more info on the Ontario convoys, visit www.TruckConvoy.ca. Visit www.specialolympics.ca for a calendar of events, including additional convoys. TN
Top fleet graphics win PMTC awards NIAGARA FALLS, ONTARIO In what has become known as the most colorful awards ceremony in the industry, the Private Motor Truck Council of Canada (PMTC) once again recognized some of the splashiest fleet graphics found on the road. It’s the 32nd year of the PMTC Vehicle Graphics Design competition. Awards were presented in six categories, including: Tractor-trailer; straight truck; special events/promotion; light-duty commercial truck; human interest; and identity fleet graphics. “This national event brings entries from across the country and is a clear indication of how much pride companies take in promoting their products and services through engaging vehicle graphics,” said PMTC president Mike Millian. “We congratulate all the award winners and thank all those that participated.” Winners were: Tractor-trailer, Warren Gibson; straight truck, Leis Pet; special events/promotion, Hammond Transportation; light-duty commercial truck, Lifescape Construction; identity fleet graphics, Burnbrae Farms; and human interest, West Coast Transportation. TN
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September 2017 • Truck News 13
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Traffic at the Port of Halifax is booming By Sonia Straface HALIFAX, NOVA SCOTIA Container traffic at the Port of Halfax is flourishing, jumping 19% yearover-year. According to the latest numbers released by the port, container traffic was up 17% in the first half of 2017, compared to the same time last year. And that was after a milestone-reaching 2016 when container traffic at the Port of Halifax spiked 14.9% from 2015. In addition, the port is making headlines as it has been welcoming massive container ships it wouldn’t have been able to service in the past. All of this success can be credited to a number of factors, said Lane Farguson, communications advisor for the Halifax Port Authority. “We have been in a positive growth cycle here at the Port of Halifax for the last two years now and certainly our last quarterly numbers reflect that,” he said. “There’s a number of factors that are coming together that are favorable for us at
sel over 10,000 TEU, Farguson noted. “We were very excited to see that vessel,” he said. “It speaks to the deployment of vessels into the eastern trade lanes that we’re a part of.” Farguson said that the port is gearing up and preparing to accept vessels of a similar size in the near future. “We’d been preparing for the arrival of larger vessels for years now,” he said. “And now that we’re seeing them, we’re looking ahead to make the necessary infrastructure changes to be able to berth and service those vessels.” TN
the Port of Halifax right now. We’ve got excellent partnerships with our terminal operators, ocean carriers, our rail provider, CN, our labor group in Halifax, the ILA (union) and the Atlantic Pilotage Authority and local tug operators.” He added the second piece of the puzzle to help create this boom at the port was the additional lane of the Suez Canal that opened up in 2015, and more recently the expansion of the Panama Canal. “As a result of those two pieces, we are seeing larger vessels deployed along the East Coast of North America,” Farguson said. “And with the raising of the Bayonne Bridge in N.Y. recently, that’s accelerating these larger vessels being deployed along the eastern North American trade lanes.” Normally, the port had been accepting vessels measured in the 4,000-6,000 TEU (20-foot equivalent) range. However, on June 29, it welcomed the gigantic Zim Antwerp, a vessel the measured 349 meters in length and had a TEU capacity of 10,062. It marked the port’s first ever ves-
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Business
Chrysler’s plan to outsource trucking back on the table By Ron Stang WINDSOR, ONTARIO Talks continue between Fiat Chrysler Canada (FCA) and its unionized transport drivers after the company rescinded a letter indicating it planned to outsource the almost 300 jobs of those who drive parts trucks between FCA facilities mainly in the Windsor-Detroit area. The discussions are aimed at finding ways to avert closing the transport department, which is decades old, is based in Windsor, and is the only such transport division among the traditional Big Three Detroit automakers. General Motors and Ford have no such departments.
The company is refusing to comment on the talks and why it sent the outsourcing letter, though earlier this year it indicated it wanted to outsource the work by the end of 2017. “It’s not something we’re commenting on,” FCA’s Windsor-based spokeswoman Lou Ann Gosselin said in early August. The company had earlier said no job losses were anticipated, and retirement incentives would be offered or jobs found elsewhere within FCA facilities. The transport division is based at the sprawling Windsor Assembly Plant, which
An FCA yard used by the company’s own trucks to transport automotive parts. makes the Chrysler Pacifica and Dodge Grand Caravan minivans. Its trucks are ubiquitous on major city streets but are separate from another transport division, which carries FCA’s fully assembled vehicles.
Ironically, FCA created that division from scratch in 2014 after a rate dispute with a company it had long contracted the work to, Allied Systems. At the time, it balked at Allied’s demands for a rate increase, quickly walked away, invested $15 million, and purchased 33 tractor-trailers. “That’s totally separate,” Unifor national auto representative Dino Chiodo said of the car hauling division. Meanwhile, the parts trucking division that is under threat, known as FCA Transport, has been operating as many as 90 tractors and 284 trailers. The union has until Aug. 18 to provide alternatives to the company to keep the operation internal. “I think what it does is it gives us an opportunity to sit down and look at what possibilities are there to make us or keep us competitive well into the future,” Chiodo said. The union last month declared the outsourcing letter’s withdrawal as a “clear victory,” because had it not done so, the transport division would have automatically closed Sept. 24. Chiodo said the union understands the company’s cost pressures. He said the company told the union “we understand what our competition is charging to pull a truck as compared to what our guys are making pulling a truck, how can we put efficiencies or is there a way to do it?” Drivers carry loads as far north as the FCA’s Brampton Assembly Plant or as far south as Toledo’s Lynch Road Assembly. Chiodo said the company had never brought the outsourcing issue up in the last round of negotiations, which took place last year. “Nothing was presented to us in bargaining with reference to outsourcing the department,” he said. Should an agreement not be reached, the union said it will take the issue to immediate arbitration. Asked about the mood of the drivers, Chiodo said, “I think there’s a cloud over their heads, I think that they’re nervous, I think that they’re angry, I think that they’re frustrated, I think that they want to know answers. We’ve had a couple of meetings with them to make sure they understood what was going on and where we were at. But obviously, it can’t be easy going to work every day thinking the company wants to take your job away from you.” TN
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Northern Ontario rest areas need improvements: study SAULT STE. MARIE, ONTARIO The Ontario Ministry of Transportation (MTO) and the Ministry of Northern Development and Mines (MNDM) recently released a draft strategy to help guide transportation policies and infrastructure in northern Ontario for the next 25 years. The draft, called 2041 Northern Ontario Multimodal Transportation Strategy, outlines a vision, goals and directions to address challenges that are unique to northern Ontario. As it concerns the trucking industry, the draft specifically outlines proposed rest areas in need of improvement. According to the draft, “A well-planned rest area can serve both as a stop for commercial vehicles and passenger buses complying with federal hours-of-service regulations, and as information centers about natural and cultural points of interest. Given the diverse range of highway users in northern Ontario, rest areas that provide basic amenities are needed at strategic locations. Currently, there are long stretches along the Trans-Canada Highway in northern Ontario with no year-round rest areas that provide basic amenities to travelers.” The MTO and MNDM named three rest areas as priority areas for improvement: Hwy. 17, 1.3 kms east of the Ontario-Manitoba Border; Hwy. 11, eight kilometers east of Hwy. 663 (west of Hearst); and Hwy. 144, at the junction with Hwy. 560 (Watershed). According to the action plan, these rest areas will be improved upon by the MTO and MNDM with help from municipal and private sector partners. TN
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Phillips Industries raises money for SickKids Phillips Industries has made an annual donation to SickKids Foundation, in conjunction with Heavy Duty Aftermarket Canada (HDAC). The company says it raised $18,427 in support of the conference’s primary charity. The money was raised through live auction events held each year. This marks the 17th year that HDAC has organized an event to raise money for the SickKids Foundation, which raises money on behalf of The Hospital for Sick Children. TN
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a laid-back, scaled-down show experience, Hatch advised. “We had a way more relaxed atmosphere,” she said. “Sometimes you have to take it back to grassroots, and I think Full Throttle Speedway, in a lot of people’s minds, is grassroots. It’s a place to come and enjoy family and friends, no pressure. I think that’s what this show brought. There wasn’t any stress, people just had fun, nobody got out of hand – it was an absolutely great, respectful time.” The Fergus Truck Show, once the largest in Ontario, if not Canada, became a victim of its own success. The show regularly drew more than 400 trucks, but once it got about as big as a truck show in that area could get, well meaning organizers looked to expand other aspects of the event. They brought in bigger-name bands, which in turn attracted a larger audience, including some rowdies and their shenanigans. Many of those folks had no interest in the trucks that were on display, and the truckers had little interest in the bands. The truckers – who formed the nucleus the show was built around – turned cranky when entry fees were steadily increased to pay for those big bands. Many felt The Fergus Truck Show had become less of a truck show, and more of a music festival. Greed wasn’t driving ambitions to grow the show; monies raised were plowed into worthwhile local causes. The intentions of the organizers were laudable – the more people they could draw, the more money they could raise for local initiatives. But for truck show purists, the Fergus Truck Show had lost its way. Organizers announced in February the Fergus Truck Show was to cease operations. “The Board of Directors would like to sincerely thank all of our volunteers, attendees and drivers that have come through the gates for the past 30-plus years. It is with the utmost of gratitude and appreciation that we thank you for your
18 Truck News • September 2017
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support over these past years,� organizers posted on the show’s Facebook page in February. But a handful of volunteers didn’t want to see the area go without a truck show, and decided to host a new one that would mark a return to the Fergus show’s grassroots origin. A site was selected about 70 kilometers to the northwest of Fergus, at the Full Throttle Speedway in Durham, Ont. The speedway provides expansive grounds for truck and RV parking and some side entertainment in the form of motorsports, including a truck pull. The pairing went over well, according to Hatch. “We had a great turnout for the truck pulls on Friday night,� Hatch said, noting even some of the highway tractors participated. More than 2,000 spectators attended the races and truck show on the evening of Saturday, July 22, despite some unpleasant weather. The committee will meet in the coming days to decide on the future of the Great Canadian Truck Show, but Hatch was optimistic it will return to the same venue next year. “The grounds worked well for us,� she said. “There were lots of hiccups, obviously. When it’s your first time at the grounds, you’re not sure how it’s going to work, and Mother Nature made some wet areas we weren’t expecting. We will have a meeting of the minds and see if it worked for everybody. I do believe it will be here next year, but we have to talk to everybody and make sure they’re on-board.� Several truck owners received awards as part of the show’n’shine, but there was one award organizers were unable give out. The President’s Award was to go to a participant who went above and beyond to promote the event. There were too many candidates to choose from, Hatch said. “We had truckers who came in here on Tuesday to help set up for the show, volunteering, no questions asked,� she said. “We had people who worked everywhere, getting it out on social media, telling people about the show. We couldn’t choose somebody, so this year it went to all the people who made the show happen.�
Show’n’shine awards went to: Earl MacDonald & Sons Transport, Best 2017 Working Truck; Schlueters, Best Vintage Working Tractor; Earl Hardy Transport, Best Restored Tractor; Steve Constantine, Best Paint Tractor; Boyd’s, Best Mural; Premier Bulk Systems, Best Commercial Logo; and Gervais Towing, Best Heavy Recovery. Hatch said Royal Engraving sponsored the plaques, and she thanked everyone who chipped in to make the inaugural event a success. For more on the event, visit its Facebook page at Facebook.com/greatcanadiantruckshow. TN
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What to expect at the first NACV show New show will focus on technology, and facilitating business between fleet decision-makers and suppliers ATLANTA, GEORGIA This September, Atlanta will host the first-ever North American Commercial Vehicle (NACV) show, a joint initiative between Newcom U.S.A. and Deutsche Messe. Nearly 400 suppliers will be exhibiting at the show, which will be focused on the needs of fleet executives and decision-makers. It will be unlike any existing North American trucking trade show,
with a clear focus on technology, and facilitating business between truck fleets and their suppliers. The show will take place in odd-numbered years, alternating with the global IAA Commercial Vehicles Show in Hannover, Germany. We caught up with Joe Glionna, president of Newcom (publisher of Truck News), to discuss the new show and what exhibitors and visitors can expect to see.
TN: Why was a new show for the trucking industry needed, and how did it get started? Glionna: The basic reason for a new show is that, when you looked at the existing shows in the U.S., there was a hole in the form of a large-scale event that brought in significant numbers of fleet executives. You had shows specific to the aftermarket, you had shows specific to various niches, and more broad-based trucking indus-
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try events with a lot of drivers, owner-operators and families – a lot of truck enthusiasts. What was missing was a bare bones trade show for fleet executives. We partnered with Deutsche Messe/ Hannover Fairs USA, who help manage the IAA show in Hannover, Germany, and are bringing that model over here to North America. TN: It sounds like they were a natural partner for this initiative? Glionna: Yes, when the opportunity came up in the U.S., it was clear to me that being a Canadian show operator – as well-respected as we are in Canada – wouldn’t be enough to win a contract in the U.S. So, bringing Hannover in as our partner for Atlanta didn’t seal the deal on its own, but was definitely the right step and a good choice, because together we are a formidable duo. TN: What will visitors to the NACV show notice the most? How will it be different from shows that visitors may have attended in the past? Glionna: They’ll notice a couple of things. One, the style of the booths and basically the investment being spent on these booths, specifically by the truck manufacturers. It’s just incredible. We’ve had to rent the show floor for an extra day and a half just so the Navistars, Daimlers, Volvos, and Macks can have enough time to set up their rigs. They’re spending millions of dollars on these booths. It’s the kind of display that, the industry hasn’t seen anything like it. The other big difference is, the reinvigorated attitude towards trade shows. The truck manufacturers had lost some interest in these shows, but with this renewed attitude and big investment, they’re spending a lot of effort on inviting their customers and working with the show organizers on the attendance marketing campaign to really let the industry know that trade shows aren’t new, but this is a new concept. So, simply walking around the show f loor, I expect to see a lot of buyers, a lot of presidents and vice-presidents and f leet maintenance managers. What you won’t see are families, strollers, drivers. We certainly respect truck drivers and the family aspect of the trucking industry, but our position is, there are great shows for truck enthusiasts and for drivers and owner-operators. We really want to separate that part of the industry from the executive business side. TN: How involved have the OEMs been in shaping this show? Glionna: We sometimes joke that it’s their show. From day one, we’ve had an advisory committee made up of the truck manufacturers who are in the show. They’ve been heav-
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ily involved with the shaping of the show schedule, the style of the show, right down to the days they wanted to have the show. TN: Truck shows in North America have always been a great place to see new equipment, but there haven’t always been a lot of deals closed on the show floor. Are you looking to change that with this new concept and if so, how do you create a culture where sales are closed at the show itself? Glionna: It’s a good question. The short answer is, we won’t change it in one show. This is going to be a long process. The truck manufacturers have agreed to a threeshow commitment with the understanding that you’re not going to reinvent the wheel in one show. We typically don’t view shows in North America as buying shows the way they are in Europe. It’s not just a trucking industry mentality change – it’s really the North American business mentality in respect to many shows. We will have business offices overlooking the booths so the truck manufacturers have offices off the show floor where they can have meetings, give presentations, and show their customers a bird’s eye view of their booths. There are hundreds of meeting rooms available for exhibitors to use for off-floor meetings. Even a 10x10 exhibitor will have the opportunity to have meetings in the Georgia World Congress Center. The truck OEMs have even discussed changing their sales cycles and processes to make the show a part of that sale. They may have their customers fly in to the show, and have specific time slots for the OEM executives to meet with the fleet executives, show them their equipment, then take them up to the private office and get a deal done.
“If you want to have an opportunity to see the latest equipment in one location, in a truncated time frame, NACV is absolutely the show for you to attend.” – Joe Glionna, Newcom utives simply don’t feel they have the time to go to trade shows. Well, when the trade show floor is less full, but full of the right people, you have more time to talk to supplier representatives. You have more time to walk around and focus on the types of equipment you’re looking to spec’ or the types of trucks you’re looking to buy. And it’s also one of the reasons
we picked Atlanta. You can fly to Atlanta from any city, just about, in North America. We have 36 hotels currently booked. So, in a sense, we’ve done our best to eliminate the travel excuse. TN: How can fleet decision-makers ensure they get the most out of the show? Glionna: I would say, talk to your
suppliers who are going to be at the show, because there are a lot of exciting events going on, that the suppliers are putting on. We have partnered with the exhibitors and relied on them to take control of their events and their customer appreciation evenings. So, I would say to any interested attendee, talk to your suppliers, ask what they’re doing, and get a free invitation code from them. TN The NACV show runs Sept. 25-28 in Atlanta, Ga. General admission for fleet decision-makers is on Sept. 26-28, with invite-only guests attending on Sept. 25. Press conferences begin on Sept. 24. For full details and a list of exhibitors, visit www.NACVshow.com.
TN: We have talked a lot about the OEMs’ role in the new show, but there are a lot of smaller exhibitors as well. What do they bring to the event? Glionna: You can’t have a truck show without the trucks, but you’re absolutely right, we have 367 exhibitors. Every Tier 1 manufacturer is going to be there. The majority of the trailer manufacturers are going to be there, and the service suppliers as well. We have some insurance companies, your parts suppliers. So, it’s going to be a show that has all the equipment. TN: Why should fleet decision-makers attend the first ever NACV show? Glionna: It’s simple: if you want to have an opportunity to see the latest equipment in one location, in a truncated time frame, NACV is absolutely the show for you to attend. We’re sensitive to people’s time and the reality is, a lot of exec-
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Business
Five takeaways from Mullen Group’s Q2 earnings OKOTOKS, ALBERTA A slowly recovering oil and gas industry, and a growing economy, helped Mullen Group achieve improved earnings in the second quarter. The company grew revenue by 10.8%, to $273.6 million. This included a $13.9 million increase in trucking logistics revenue and an $11.3 million improvement in the oilfield services segment. Net income increased 43.1%, to $19.6 million. “This was the first quarter in sev-
eral years that we began to witness a broad-based recovery across most of our business lines, with the only exception being the development of major capital projects in Alberta related to the oilsands and some of the large diameter pipeline undertakings,” said Murray Mullen, chairman and CEO of Mullen Group. “Revenue expanded in both segments with our trucking/logistics segment achieving a record for any quarter.”
In an earnings call with analysts, Mullen gave more insight into how the company is faring, and its future vision.
On acquisition targets Mullen Group has $250 million in cash earmarked for acquisitions, but Mullen said if an appropriate match doesn’t come along, it will use the money to instead pay down debt. It won’t make an acquisition just for the sake of growth, Mullen insisted. “Our primary objective still right now is to look and get really great acquisitions,” Mullen said. “But
“It’s easy to get an acquisition, but it’s tough to get out of an acquisition, so I’m pretty cautious on that front.” Murray Mullen, Mullen Group great acquisitions, they come along once in a while. And if we force it too much, we’re paying too much. So, we’re pretty cautious. But boy, the deal flow we see on acquisitions – there’s a lot of them. But most of them, we don’t like…It’s easy to get an acquisition, but it’s tough to get out of an acquisition, so I’m pretty cautious on that front.” Mullen said if the right fit isn’t found, the company can use its cash to pay down debt or increase its dividends. On the ‘Amazon-ation’ of trucking Mullen Group is focused on capitalizing on the trend towards e-commerce, through the management of its LTL trucking operations and also the development of an online marketplace called Moveitonline. The online freight-matching service is still in the works and will be rolled out across the industry when it’s ready, Mullen noted, making the company a more significant thirdparty logistics player. “We’re not going to invest in trucks,” he said. “Look, we want to own the customers. We don’t necessarily want to own the trucks. We’ll own the truck if we make
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enough money and get an appropriate return. But if the marketplace is extremely competitive, Moveitonline becomes an enabler for our logistics business to grow. And only a few companies are going to be able to get their own marketplace. We think we’ll be one of them.� On capacity and rates While economic growth in Canada has been slow, trucking margins have remained depressed, so not much capacity has been added. Mullen said slowly increasing freight demand without the addition of trucking capacity has now created a
scenario where supply and demand are better aligned and predatory pricing has subsided. “In the spot market, the pricing pressures are not anywhere near as intense (as they’ve been),� Mullen said. “We’ll see how that plays out and if it continues when you get into the contract basis. But we’re seeing some positive signs.� On demand in the oilfield Mullen’s oilfield services segment has improved, but Mullen pointed out it’s coming off the devastating lows of 2015-2016, and not building on previous highs. While drilling
activity has improved, he said the large-scale capital projects have not been revived. “Today, the industry is in a recovery mode, not a growth mode,â€? he said. “We do not see a recovery in the big capital projects, like oilsands development, new upgraders or pipelines to tidewater. These projects were big economic drivers, creating a multitude of high-paying jobs and requiring a tremendous amount of transportation and logistics coordination‌The era of the big capital oilsands projects, while perhaps not extinct yet, is certainly on the endangered list.â€?
On the overall Canadian economy Mullen’s outlook on the Canadian economy as a whole was more upbeat, thanks in part to the fact Alberta is now contributing to economic growth and isn’t weighing it down. “Job growth is healthy. Consumer spending is robust. Trade is doing a little bit better,� Mullen said. However, he noted Eastern Canada is now the motor that’s driving the economy. “We see the economic growth engine for Canada is now in the east, where the vast majority of consumers are, not the west, where the oil and gas is,� Mullen said. TN
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Business
Canadian spot market freight volumes hit new record In the U.S., tonnage slides TORONTO, ONTARIO Canadian spot market load volumes continued their impressive performance, as total truckload spot market freight volumes rose 9% in June compared to May 2017. Compared to last year, volumes in June rose 45% year-over-year, according to TransCore Link Logistics, easily surpassing all previously recorded load volumes for the month. Also noteworthy, when compared to any month in any given year, June 2017 volumes were the second highest ever recorded in history. The highest record was set in March 2014. To date, load activity has been up and down in the first half of the year. After an April decline, volumes underwent a late spring rally turning higher in May and then again in June, topping at an all-time high to end the first half of 2017. The second quarter of 2017 improved 7% compared to the previous quarter, and improved by 38% year-over-year, compared to the second quarter of 2016.
Equipment capacity June 2017’s truck-to-load ratio decreased further, reaching 1.75
trucks for every load, the lowest ratio since January 2015 and a 42% improvement from the same time last year. Meanwhile, equipment postings decreased 6% month-over-month and 16% yearover-year. U.S. tonnage declines But for-hire truck tonnage in the U.S. slid 4.3% in June, according to the latest data from the American Trucking Associations (ATA). The loss comes on the heels of a 6.9% gain in May, and is 1.3% stronger than last June. Year-to-date, tonnage is up 1% compared to the first half of 2016. “After such a large spike in May, it was not surprising to see the index give back some of those gains in June,” said ATA chief economist Bob Costello. “However, looking back at the second quarter as a whole, tonnage was up 0.8% over the first quarter and 1.9% over the same quarter last year, so it was a solid threemonth period. June’s slide does not change my belief that we will continue to see moderate, albeit at times choppy, growth in truck tonnage as the year continues.” TN
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Insights Private Matters
Let’s get on with ELD implementation The impending electronic logging device (ELD) mandate is a story that just seems to keep going on and on. On the Canadian side of the border, the original technical standard that was produced by the Canadian Council of Motor Transport Administrators (CCMTA) was finalized in 2013, after several years of discussions and consultations. The rule was largely based on the Federal Motor Carrier Safety Administration (FMCSA) ELD technical standard produced south of the border, with changes made to ensure that Canadian regulations and challenges were addressed. The original FMCSA mandate was to take effect in 2012, however was withdrawn and held in abeyance as a result of a court challenge. The FMCSA was ordered to go back to work on the standard before reintroducing it. The U.S. final rule was again published in December 2015, with the compliance date being effective Dec. 18, 2017. Back in Canada, the CCMTA revised its technical standard and reissued it in late 2016. Indications at the time were that the standard and proposed regulation would be posted in Canada Gazette Part 1 by the spring of 2017 (after it was originally indicated this would occur in late fall/early winter of 2016). This would be followed by a 60-day comment period, then published in Canada Gazette Part 2, once comments were addressed, with a two-year grandfather period before it became law. Here we are, in the summer of 2017, and the proposed regulation has yet to be published. Considering how slowly things can move up the ladder in government, I guess I should not be surprised. However, it is becoming slightly frustrating. It is time to get the standard published in Canada Gazette Part 1 so all in the industry can view the standard, comment on it, express their concerns, and then move to the next phase of the process. On the U.S. side of the border, a recent Senate bill was introduced by Texas Rep. Brian Babin. It looks to delay the implementation of the U.S. rule by two years, to December 2019. Most in the inner circle do not expect this bill to pass, however there are no guarantees in politics, which is especially true south of the border these days. It is interesting that the latest attempt to delay the legislation in the U.S. is just that, a delay. It is not looking to get the mandate thrown out, however if this delay tactic works, I assume the challenge portion will follow. I, for one, hope the tactics south of the border do not influence Transport Canada’s plans. It is well past the
time to get the proposed legislation posted in Canada Gazette Part 1 and get things moving to the next level. Another round of delays is not needed, nor warranted. We have been sitting in limbo with ELDs for long enough. One thing appears clear for all in the industry to see: it is not a matter of if the ELD mandate comes into effect on either side of the border, but a matter of when. This being the case, let’s move forward. On that front, one word of advice for carriers out there. If you are a Canadian carrier who operates into the U.S., the law currently states you must have an FMCSA-compli-
ant ELD in use by December 2017. If you are waiting and hoping for a delay, and one does not occur, you will find yourself in a mad dash to make your fleet compliant. This is not a simple flip of the switch. You need to research suppliers, schedule installations, train your operations, IT department, and drivers. You will also need to check and verify that your current routes can be completed legally. If you are a Canada-only fleet, you may have a bit more time, with finalized dates not yet known, but it is coming, and likely within the next couple of years. If you are not already doing this, start researching and start
Mike Millian is president of the Private Motor Truck Council of Canada, the only national association that represents the views and interests of the private fleet industry. He can be reached at trucks@pmtc.ca.
planning for implementation. The government will get this published eventually, and when they do, the lead time may not be what we envisioned. TN
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September 2017 • Truck News 27
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Insights Over the Road
Corporate cultures have evolved The fall fanfare of annual general meetings, roundtables, panel discussions, and training seminars is about to kick off for all the movers and shakers. Most of the topics will focus on profitability as the goal. There was a time when profit was the result of good management and not the reason for it. It wasn’t that long ago, but if you’re under the age of 45 you may not have a clear memory of it. A 37.5-hour workweek, health and dental coverage, 20% of pre-tax profits shared with employees, mentorship, regular training, job postings promoting growth from within. This was the culture of retailing I was introduced to in the ’70s. Yes, I said retailing. Those perks of the job were not the result of a negotiated contract between workers and management. It was the founders’ values that determined the quality of the workplace. Those values extended beyond the workplace and into the social network of employees’ lives. There was an annual children’s Christmas party, wide-ranging support for community events and fundraisers, company hockey and baseball teams, and generous financial support for an employee association headed by long-term employees that organized these events. Best of all, the company was profitable and grew steadily from year to year, adding jobs as it went. There was no lack of financial reward for the founders. It’s definitely not rocket science. Any truck driver on the road today who brings a passion for driving to the job will tell you that their enjoyment is enhanced when they are treated well and compensated fairly. The sweet sauce is how you are treated by the people you depend on – supervisors and co-workers – from day to day. The workplace has changed across all industries in the past 30 years. The sense of social responsibility employers held towards their employees was not limited to smaller family-owned businesses as it seems to be today. Large public companies invested heavily in their workforce. There was a social contract between employers and employees that didn’t exist on paper. It filled employees with a sense of security for themselves and their families. That doesn’t exist anymore. That’s not a trucking issue, it’s a societal one. I think when we talk about old school values within the trucking industry, this is what we are talking about. When I left the retail sec-
tor it was five to six years after the founding family sold the business. It ended up in the hands of a large multinational company and the “unprofitable” parts that did not fit into the master plan were dismantled or sold off. Employees were “downsized.” Any sense of responsibility to the individual employee was not part of the corporate agenda. We see this scenario playing out regularly across the trucking industry these days. Some of you may feel I’m simply filled with sour grapes, pining for a time that no longer exists and unable to adapt to a changing world. On the contrary, I’m
simply questioning the path we have chosen to take, or perhaps, the path we are being led down. I encourage anyone reading this to do the same. In my youth, I saw capitalism as a catalyst that enabled growth and financial security up and down the social ladder. Today, capitalism is an ideology. A contentious statement on my part? Sure. But what’s the good of holding an opinion if you don’t voice it. The values of the corporations we are dependent upon should be questioned. The job of a truck driver is all about independence and initiative. I don’t want or need anyone to hold my hand or reward me for some-
Al Goodhall has been a professional longhaul driver since 1998. He shares his experiences via his blog at www.truckingacross canada.blogspot.com. You can follow him on Twitter at @Al_Goodhall.
thing that is not my due. I believe we all need to be accountable for our individual performance. At the same time we are all better off when we are valued for that performance. That’s why I’ve been 14 years with my employer. Respect. TN
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Insights You say tomato, I say tomahto
ELDs will bring prosperity to well organized truckers A recent post on social media from my local service shop caught my attention, as they were announcing they are now offering to collect people’s trucks from local carriers, work on them, and deliver them back to the yard. A nice idea, but what caught my attention was the reason behind it: electronic logging devices (ELDs). My carrier recently sent a satellite message informing drivers that to operate within the law, they must log journeys to the shop as on-duty time, which has always been the case under current hours-of-service. All of a sudden, drivers felt it was impossible to take their truck in for service or repair, leading to this shop offering to pick up and drop off trucks. I use this shop myself, and when my truck needs service or repair, the process is simple. I complete my trip, drop my trailer, hand in my paperwork, drive the five minutes to the shop, do my post-trip, log off and get the wife to pick me up to take me back to the yard to collect my vehicle. And then I go home. The process is reversed when I collect the truck. All in all, it adds 15 minutes to my logged hours at most, which is spread over two shifts. So, what’s the big deal? Why are people finding it so difficult to perform such a simple task? The truth is that these arguments are just fueled by their hatred towards the e-log. I know for a fact that none of the drivers having such a difficult time finding an extra 15 minutes are hitting their 70 hours as they drive through the yard gates. We are not dispatched like that. There is always plenty of time to do the job without coming close to the limits of hours-of-service, so there is no genuine reason why anybody cannot take their own truck to the shop. There is no good argument against e-logs. There is no flexibility in the hours-of-service rules. Once you start your pre-trip, you have 14 hours to get 11 hours or less of driving done, that’s it. Now, we all know you can tear up a log sheet and start a new one in order to make up for a delay, but why should we? If our journey takes us through a busy city and we lose an hour or two in traffic, the rate should reflect that. But if that delay never happened on paper, that will never be the case. The same applies to delays at the loading dock. They can make it impossible to make the delivery appointment without rewriting a log sheet. Yet, that isn’t anything we can control, so why are we compensating for the inefficiency or incompetence of others? We should be charging for the lost time and corresponding revenue. Then there are the drivers who have to fudge their logs because of
poor time management. They want to sit at the lunch counter telling stories, or spend a couple of hours in the sleeper in the afternoon. Well, quite frankly that is ridiculous. First of all, they probably wouldn’t need a nap in the afternoon had they not worked an 18-hour day the day before and secondly, try behaving like that in any other job. If you’re working construction, or in an office or factory and you want to take a break when you feel like it, or you want to take a two-hour nap in the afternoon, you would be lucky if you were not fired on the first day. Why
should trucking be any different? There is a major upside to all of this. At first, only a minority will be able to take advantage of it. In December, when anybody hauling to the U.S. and at most Canada-only carriers are running on e-logs, it is going to be a gong show of epic proportions. There will be trucks marooned all over the place and anybody that can manage their time properly will be able to make a killing. If you’re running on a mileage rate, there will be as many miles as you can handle. If you’re running for a percentage of revenue or have
A fourth generation trucker and trucking journalist, Mark Lee uses his 25 years of transcontinental trucking in Europe, Asia, North Africa and now North America to provide an alternative view of life on the road.
your own authority, you will be able to earn enough in 2018 to take the whole of 2019 off work. Trucking is a supply and demand business. As soon as there are more loads than available trucks, rates go up. It’s as simple as that, and if you’re in a position to take advantage of that, you will reap the rewards. TN
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Insights Independent with Attitude
A win-win for carriers large and small Let’s shift engineering focus from emissions, to reliability and fuel economy Brace yourself. I’m going to extend an olive branch to the large carriers and their associations. You were warned. When I started in business, I never imagined the level of animosity that exists between large and small trucking companies. I naively figured we all had a job to do – jobs that rarely intersected – so we’d just get along. But this animosity between carriers big and small has only intensified; there is anger and bitterness, and often mistruths. Small operators have been labeled: lawbreakers, poor businesspeople, and destroyers of the environment, on the topics of speed limiters, electronic logging devices (ELDs), and emission controls. I’m done talking about speed limiters, and ELDs with one exception. For those insisting that ELDs will bankrupt most small carriers, I need to burst your bubble. I don’t deny hours-of-service abuse exists, but in talking with drivers from fleets of all sizes, I’m convinced there is no higher per-
centage of small fleets abusing the system than large ones. Also, blatant law-breaking is clearly not part of any responsible company’s business plan, so knock it off. I want to address the current troublesome emissions systems. The avoidance of – and tampering with – these emissions aftertreatment systems has been mostly blamed on small carriers. A substantial number of pre-emissions gliders have been assembled for large, respected companies, so again, knock it off and stop blaming the little guys. Allow me to state, for the record, the reasons many small companies run older equipment. We’re not uneducated, or unaware, of the newer emissions system requirements. We aren’t so financially strapped as to be unable to afford the new equipment. We usually have limited truck and trailer numbers. Reliability is critical, because we rarely have spare tractors available, and the level of service we offer to keep good cus-
tomers relies on our predictability. We’ve calculated our costs of operation and ownership, and with equipment that’s home frequently for regular maintenance, we do much better with older iron. Our operations simply won’t support power units that experience excessive downtime. I heard of one large fleet, with several different truck brands, that has a fleet average of five days between shop visits. How does anyone do business like that? The large carriers want us all in newer equipment, to “level the playing field.” You mean dragging us all down equally, right? I’d like to offer a solution, but it means we have to work together. While some of us are reluctant, I believe many small carriers are eager to use newer equipment, if only reliability and fuel mileage matched that we achieved in the early 2000s. U.S. President Donald Trump has shown strong resistance to any Environmental Protection Agency (EPA) actions that affect employment and the economy, so the timing of my proposal is perfect. The brightest engineering minds on the planet have achieved emissions levels unimagined 20 years ago. I propose hitting the pause button on further emissions restric-
Bill Cameron and his wife Nancy own and operate Parks Transportation. Bill can be reached at williamcameron.bc@gmail.com.
tions, even if only for five years. All previous emissions standards established maximum emission levels, but didn’t legislate fuel economy or reliability. Let’s give those same engineering geniuses a few years to work on mileage and reliability, without the burden of achieving even lower exhaust levels. Start building reliable, fuel-efficient trucks like 15 years ago, and more of us would buy them. If we banded together, in a mature, cooperative, non-partisan manner, maybe this could be achieved. Smaller fleets would buy newer equipment, and the lobby groups could get off our backs. Large fleets using new equipment would see downtime decrease dramatically, with greater fuel efficiency as a bonus. Other than a few disgruntled tree-huggers, who would lose? Can we at least agree on that? TN
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Health Preventive Maintenance
Clearing the air Over the summer, it’s great to take advantage of air-conditioning to maintain a reasonable temperature in your rig. However, driving long hours with your windows closed may seriously reduce your cab’s air quality and affect your health. Although your unit’s heating, ventilation and air-conditioning (HVAC) system keeps you cool, it also allows a variety of pollutants into your cab. Independent studies show that concentrations of toxic gases, such as carbon monoxide, hydrocarbons, volatile organic compounds (VOCs), and oxides of nitrogen are often higher in vehicles than allowed by the World Health Organization (WHO) and the Occupational Safety and Health Administration (OSHA). These gases come from many sources. One is vehicle exhaust. Your truck’s HVAC system takes air from the outside environment, including emissions from nearby vehicles to recirculate as “fresh air” in your cab. As a result, your cab’s pollutant level may be 10 times higher than outside, depending on traffic density, flow and speed, the age of your truck, the type of vehicles ahead of you, and weather conditions. Studies have found that half of the pollutants inside your vehicle may come from the gasoline and diesel exhaust of vehicles immediately ahead of you. Traffic exhaust pollution, consisting of volatile organic compounds like benzene, toluene, formaldehyde, and carbon monoxide, can trigger headaches, drowsiness, dizziness, and nausea. Another component of traffic pollution – particulate matter (coarse and fine particles) – is particularly harmful to people with heart disease or respiratory issues. According to studies, fine particulate matter from heavy traffic can cause heart attacks and strokes for susceptible people, often within hours of exposure. Even for healthy people, particulate may affect their heart rate/rhythm, clotting, and other cardiovascular functions. Particulates also impact respiration, causing lung congestion, sinus and throat irritation, chest discomfort, and aggravating asthma. Your exposure to pollution noticeably increases when driving in urban areas with traffic lights because the deceleration, idling and acceleration associated with red lights create concentrated points of harmful particulate matter – 29% higher than the open road. Even though passing through intersections only accounts for 2% of driving time, intersections are responsible for 25% of inhaled pollutants and driving in heavy traffic may reduce your cab’s air quality to 40% lower than in light traffic. Your own breathing also lowers air quality. Inhaling oxygen and
exhaling carbon dioxide in a closed environment depletes your oxygen supply, particularly if your HVAC system is operating in the “closed/ recycle” mode to avoid outdoor-polluted air. Low oxygen levels impair your judgment and muscle coordination, and increase your heart rate. Even the common materials contained in your cab impact air quality. Vinyl, plastic, leather, carpeting, fabrics, foam cushions, and adhesives, may all leak VOCs, especially for new vehicles in hot weather, as high heat breaks down these compounds. Chemical deodorizers and cleaning products can also emit toxic fumes. Low air quality in your cab can have serious consequences – driver
fatigue, with drowsiness, low alertness, low concentration, slowed reactions, and poor hand-eye coordination, is a primary cause of road fatalities. Be safe and avoid these issues. Maintain the air quality in your cab while driving by doing the following: retain a distance between your vehicle and the one ahead to allow its exhaust to dissipate. In congested traffic, tunnels, and at red lights, close your windows and set your ventilation to recirculate and allow your air-conditioner to filter out most particulate matter. Select less-congested routes. In light traffic, keep your windows partially open. In a new vehicle, drive with open windows as much as possible for a few months when the VOCs are highest. Maintain your vehicle mechanically. Keep the cab clean,
Karen Bowen is a professional health and nutrition consultant, and she can be reached at karen_bowen@yahoo.com.
since pollutants attach to dust particles, which are easily inhaled. Clean using micro-fiber cloths, not chemical cleaners. Avoid chemical air fresheners or deodorizers – use baking soda or natural products to absorb odors instead. Take a breath of fresh air and regularly schedule time away from your rig. TN
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September 2017 • Truck News 33
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Health
Treating trucker trauma A trucker and his wife are bringing help to truckers afflicted with post-traumatic stress disorder By Carroll McCormick MONTREAL, QUEBEC A man threw himself in front of Patrick Forgues’ truck in a case of “suicide by truck,” in 2013. While fighting his own demons, he and his partner Kareen Lapointe have been working to make help available for other truckers suffering psychological injury after severe accidents or suicides by truck. Mainstream awareness of post-traumatic stress disorder (PTSD) in soldiers has increased in recent years, but who would have thought that truckers might suffer PTSD as well? Yet in the after-
math of his incident, Forgues suffered classic PTSD symptoms. But accepting that fact was simply not part of trucker culture. “I was told that I had PTSD, but in my head, that only happened to soldiers, and I hadn’t fought in a war,” Forgues says. He says he had no idea that the incident could have repercussions in his work and personal life. He did spend the night of the accident in the hospital, in psychiatric emergency, and began seeing a psychologist after a month, but it wasn’t enough. “The help wasn’t useful for going back to work, and it should have been adapted with my girlfriend in order to have a teamwork dynamic
SSPT chez les camionneurs founders Kareen Lapointe (far left) and Patrick Forgues (far right), flanking volunteers Nathalie Labrecque and Patrice McMullen. with the person who was by my side each day while I was in denial,” Forgues says. Instead, he remained in denial of his emotions for the first year, said that he was fine and that he could
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soon resume trucking. “I didn’t want to look reality in the face. I began drinking and self-medicating, thinking that I was getting better,” Forgues adds. Typical symptoms of PTSD include repeated nightmares, flashbacks, fatigue, emotional emptiness, dark thoughts, and anxiety. For truckers, they can also include the inability to resume work, substance abuse, compulsive behavior, social isolation, and frequent hospitalization. Adding insult to injury, family members may be unable to comprehend what is happening, and marriages may break up. “I suffered a lot of disassociation, that is, I drove my truck on auto-pilot. There were whole work days I could not remember. I had a lot of panic attacks when I found myself with pedestrians around my truck. I lost 50 pounds in three months,” Forgues says. Forgues did get help from the Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST). (Unofficially, this means roughly “Commission of norms, equality, health and work safety”). Even today his file is still followed by a specialized educator, clinical psychologist and a psychiatrist. However, he notes, “This is not the case for the majority of truckers.” The mentality in the industry is that the trucker must get back on the road as soon as possible, to avoid remaining traumatized. Forgues and Lapointe have a different point of view. For example, Forgues says, “We want it made obligatory to have three follow-up meetings with a psychologist in the first month after an accident, to ensure that the trucker is ready to resume driving.” In February 2016 Forgues and Lapointe created a website called SSPT chez les camionneurs (unofficially translated as “PTSD Among Truckers”). Among other things, the website invites truckers and their spouses to share their experiences. “A lot of truckers have told us their stories,” Forgues says. A year later the couple founded a non-profit organization, with the goal of coming to the aid of truckers with PTSD following a suicide by truck or other traumatic events.
34 Truck News • September 2017
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The couple have made much progress in having PTSD recognized as the psychological injury that it is for truckers, and in improving the care they receive. For example, SSPT chez les camionneurs, with the help of a mental health professional, created a special protocol adapted for highway professionals – an established procedure or process that afflicted truckers should follow in the aftermath of a serious incident. “We want to standardize the help so the follow-up is identical for everyone,” Forgues explains. The protocol includes a first meeting with a mental health professional 24 to 48 hours after an accident so the trucker can ventilate and express his or her emotions. A second meeting, one week later, is to give the driver information and other help. A third meeting a month after the accident is intended to establish whether the driver needs more help. “You can’t give a diagnosis of PTSD until a month has passed,” Forgues says. “We have more than 15 educators specialized in PTSD in contact with us for truckers asking for help, but the protocol is applied only if the employer decides. Nothing is obligatory for them; however, it is enormously beneficial to help one’s employee at the beginning of the process,” Forgues says. Forgues and Lapointe also want to set up a buddy system, where truckers are there to listen to other truckers. “We know from experience that truckers find it easier to ask for help from a colleague. This is why we would like to train drivers in order to help us recognize truckers who are not doing so well, and so guide them toward good resources,” Forgues says. The couple also followed the progress of Bill C-211, an Act respecting a federal framework on post-traumatic stress disorder, and requested that truckers be included with first responders, firemen, military personnel, correctional officers and members of the RCMP, who were specifically mentioned in the bill. That didn’t happen, but the couple do want to participate in the fleshing out of the bill, which was adopted June 16. In the meantime, they are spreading the word, and support is growing for the mission. “PTSD is not a sickness that you develop. It is a psychological injury caused by a traumatic occurrence,” Forgues emphasizes. “The benefit of making contact with us is to have a good path to follow, good interveners, in order to have optimal treatment at the beginning of the process, and so, hopefully a rapid return to work. We have a mission to educate employers and the family as well, because PTSD is a team affair.” For more on the work of Patrick Forgues and Kareen Lapointe, visit www.ssptchezlescamionneurs. wordpress.com. TN
C A R RIE R
1.800.462.4766 | drive@bisontransport.com | bisondriving.com September 2017 • Truck News 35
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RIDEWAY Transport Inc.
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Montreal’s Fuel Transport rebrands, wins awards
MONTREAL, QUEBEC Fuel Transport has won four awards for its corporate rebranding, the company announced. According to Fuel Transport, at the Festival of Creativity in June, Fuel won four Lions (which represents the highest award in design in the world) for its new design. It received a Silver Lion for creation of a new brand identity and three Bronze Lions for logo design, brand collateral and video/ Contact Steve Dixon: 1 800 387-1478 x 23 moving images. or email: sdixon@rideway.com The new corporate identity not only introduced a new logo, website and blogging platform, but it also saw the transformation of Fuel’s office space, communication tools, and the launch of a new ad spot. “Building a strong, clear and distinctive brand-led culture is a key priority for us,” said Robert Piccioni, president and CEO of Fuel Transport. “We believe that aligning our corporate values with our brand identity in a simple and powerful branding will help us grow. We believe that if Fuel’s culture LOOKING FOR QUALITY and brand are driven by the same purpose and values and if we weave them together into a single guiding force for our company, we will win To fill positions in our growing company the competitive battle for customers and employees, future-proof our business from failures and downturns, and produce an organization that operates with integrity and authenticity.” TN
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QUEBEC CITY, QUEBEC Transport Guilbault announced July 18 that it has acquired Ideal Logistics Solutions. With the purchase, Transport Guilbault is adding close to half a million square feet in warehousing capacity, with facilities now in Quebec City and Montreal. The company said the acquisition will allow it to increase its presence elsewhere in Canada and in the U.S. thanks to new flexibility and possibilities. “Today, a Quebec head office is expanding by building on a strategic alliance that will allow it to conquer new markets. We found in Ideal Logistics Solutions a partner who shares our first ambition: to simplify the mobility of goods for our clients by helping them to better control their supply chain and improve their efficiency and performance,” said Eric Gignac, president of Groupe Guilbault. Ideal Logistics Solutions will keep its name and will remain an independent business unit of Transport Guilbault. TN
36 Truck News • September 2017
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&
Jardine Transport buys R.E.M. SAINT STEPHEN, NEW BRUNSWICK Jardine Transport has announced its acquisition of R.E.M. Transport, an international longhaul trucking company based in Saint Stephen, N.B. The company operates more than 50 power units and 60 trailers, serving Canada and the U.S. “This is a strategically important transaction for Jardine. The acquisition adds scale to our existing operations and increases network density, which will result in improved overall efficiency,” said Dean Cull, chairman of Jardine Transport. Dion Cull, president of Jardine Transport, added “I have a lot of respect for Graydon Murphy and Mike Bishop, and I am impressed by what they have been able to accomplish at R.E.M. Transport. The company has established a loyal base of customers by delivering reliable, efficient service across a network of key lanes. We look forward to working with Graydon, Mike and the entire R.E.M. Transport team.” TN
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Highlight opens L.A.-area terminal LA MIRADA, CALIFORNIA Highlight Motor Group recently announced that its U.S. division has opened a terminal in La Mirada, Calif. The new terminal was opened to help consolidate less-than-truckload and full truckload service between Canada, the eastern U.S. and the Los Angeles area, the company said. “Our La Mirada terminal is a direct response to customers telling us they want more options, better service, and faster transit times to and from this region,” said Kirk Kalinitchenko, president of Highlight Motor Group. “Having a physical location here with a staff who truly understands the market is a distinct advantage for us and for our customers.” Kalinitchenko added that David Kilkenny has been named general manager, Steven Ralls has been named business development manager, and Roman Molina, dispatch supervisor. “We’re positioned to deliver the solutions our customers expect, including daily service to Los Angeles,” Kalinitchenko said. “It’s another example of our commitment to delivering efficient, cost-effective transportation wherever our clients need us.” The new terminal is located at 15501 Heron Ave. in La Mirada. TN
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Claes Nilsson, head of Volvo Trucks globally (left), and Goran Nyberg, president of Volvo Trucks North America, celebrate the unveiling of the new VNL.
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Volvo eyes top spot in global truck market By James Menzies DUBLIN, VIRGINIA A strong European truck market has offset weakness in North America, providing favorable industry conditions for Volvo Trucks globally. Claes Nilsson, Volvo Truck’s global president, gave an overview of the
market when visiting Volvo’s new customer center in Dublin, Va., for the launch of the new VNL. Nilsson emphasized Volvo’s global presence, noting the brand has more than 2,000 dealers in 190 countries and assembly plants in 15. Its goal is to be the top truck maker in the world. “We have a very ambitious target to
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38 Truck News • September 2017
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We are a cross border LTL trucking company that currently has opportunities for OWNER OPERATORS be number one,” Nilsson said. “That doesn’t mean we necessarily want to be the biggest, but we want to be the best in the eyes of our customers. We want our customers to make more money and be more successful than customers of our competitors.” Last year, Volvo Trucks sold more than 103,000 trucks around the world. The U.S. is its largest market, but industry conditions there have been soft the last two years. That seems to be improving, Nilsson said, though the company is sticking to its forecast of a North American Class 8 market totaling 215,000 trucks this year. “We believe the market has bottomed out, and if anything, we see upward pressure on this number moving forward,” Nilsson said. The North American market was struggling last year with excess inventories, which have since normalized, Nilsson explained. “North America, today, for us is a much healthier business than it used to be 10-15 years ago, even with the lower markets we see now and last year,” said Nilsson. “It’s still a very healthy performance in terms of profitability and North America is contributing very well to our overall profitability.” Goran Nyberg, president, Volvo Trucks North America, agreed that
the truck market here is improving. He anticipates improving conditions for truckload carriers in the second half of this year, and into 2018, which should drive higher truck sales. Breaking the truck market down by segment, Nyberg said: longhaul is growing, but impacted by lingering used truck inventories and low values; regional is improving thanks to a stronger manufacturing sector and changes in retail dynamics (ie. increased e-commerce); construction is strong and growing; but natural gas has fizzled, due to low diesel prices. Volvo continues to make progress in growing the market penetration of its own powertrain offerings; 93% of Volvo trucks sold this year were spec’d with Volvo engines, and 91% with the I-Shift automated manual transmission. It’s also growing its fleet of connected vehicles, with 120,000 trucks now using remote diagnostics. Nyberg said he’s also encouraged by investments made by its dealer network. It now boasts 420 locations, up by 65, with a 51% increase in bay capacity, a 116% increase in technicians, 312% more master technicians, and an 80% increase in service capacity. “This is a true statement that our dealers truly believe in the future of Volvo Trucks,” Nyberg said. TN
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September 2017 • Truck News 39
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Equipment
Kenworth forges ahead in vocational market with the T880 and T880S By Derek Clouthier KIRKLAND, WASHINGTON Kenworth Trucks is hyping its vocational T880 series, believing the U.S. and Canadian economies are poised to continue an upward trajectory. “Whether you’re talking vocational or just the market in general in North America,” said Mike Dozier, general manager of Kenworth Trucks and vice-president of Paccar, “the underlying fundamentals all remain very positive and I think we’re certainly seeing that in vocational segments.” Inviting members of the media to its head office just outside Seattle, Kenworth offered up three dump models and two mixers for a test drive on the track at nearby DirtFish Rally School. Two dump models were the T880 day cab with Eaton UltraShift transmissions; one fitted with the 2017 MX-11 engine with 430 hp, the other the MX-13 with 485 hp. The third dump truck was the beefier T880S model, flaunting the MX-13 engine with 510 hp and 1,850 lb.-ft. of torque and an 18-speed Eaton automated transmission. The two mixers were quite diverse, one a traditional diesel engine (the T880S bridge mixer),
while the other ran on compressed natural gas (T880S nat-gas mixer). Each featured an Allison transmission; the bridge mixer the 4700RDS seven-speed and the nat-gas variety the 4500 six-speed automatic. Kevin Baney, Kenworth assistant general manager for sales and marketing, highlighted the Cummins-Westport ISL G near-zero engine in the nat-gas mixer, which emits 90% lower NOx than current U.S. requirements. Since 2010, Class 8 truck sales peaked in 2015, with sales reaching approximately 275,000 units. In 2016 they were just over 200,000, and 2017 is projected to be somewhere around 200,000. “There’s pretty good alignment with what we’re seeing with sentiment within the industry and certainly in the vocational segment,” said Dozier, “so we expect our expectations to continue.” Kenworth unveiled its new flagship T880 model four years ago, with the T880S being the latest addition to the lineup. The T880S is available with a set-forward front axle, which Baney said helps increase the truck’s maneuverability. “The T880S is well suited for truck operators in ready-mix, dump and
mobile crane applications where every incremental pound of payload delivered contributes directly to the bottom line,” Baney said. “The T880S enters into the market in the midst of an excellent vocational market, and we’re receiving strong T880S orders from customers.” The T880S set-forward front axle ranges from 14,600 lbs to 22,800 lbs and comes standard with the Paccar MX-13 engine. The MX-11 engine provides a more lightweight offering at 400 lbs less compared to the MX-13. Stepping into the spotlight for its former flagship truck – the T800 – the T880 model now makes up approximately 75% of sales compared to the former model. But as Baney pointed out, there is no plan to phase out the T800, but the company will rather let the market decide on the level of its continued
production. Baney also touted Kenworth’s upcoming bright-trimmed air intake, which he said customers have been requesting for some time. The chrome spec’ will be available this month and through the aftermarket. Already available on the T680, variable speed fan drives will soon be offered on the MX-13 engine and will provide a bump in horsepower, better fuel economy, decreased noise and vibration, and a reduction in dust. In addition, Baney underscored the fact that over 50,000 Kenworth trucks are now connected through the company’s mobile diagnostics technology TruckTech+. “These numbers just continue to amaze us since the launch of this program with the Paccar engines in 2015 and now last year with Cummins,” Baney said. TN
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40 Truck News • September 2017
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New Cascadia driving higher penetration of proprietary components
With an increase in business we are looking for
Owner Operators and Drivers O Immediately with clean abstracts To Come and Join Our Team!!
By James Menzies YOUNTVILLE, CALIFORNIA Orders for the new Cascadia have now surpassed those for its predecessor, and buyers of the new truck are increasingly adopting proprietary powertrain components and safety systems. “Within the next couple weeks, we will crest 10,000 builds with the new Cascadia already,” Mike McHorse, Freightliner product marketing segment manager, on-highway, said during a business update here July 27. Production of the new Cascadia began in January and was slowly ramped up through March. McHorse said customer are confirming Freightliner’s claims of an 8% fuel economy improvement over the classic Cascadia. Interestingly, the new Cascadia, despite coming at a price premium, is being spec’d with more Daimler-made parts. The take rate for the DT12 automated transmission is at 94% with the new Cascadia, compared to 68% in classic Cascadias. The Detroit Assurance suite of active safety systems is being ordered in 59% of new Cascadias, compared to 25% of legacy models. And the new Cascadia is rolling off the line with more Detroit front (91%) and rear (74%) axles, compared to the legacy models with 65% and 42%, respectively. Freightliner continues to expand offerings on the new model, most recently adding a 116-inch BBC day cab, a 72-inch raised roof sleeper, the Cummins X15 engine, and Eaton automated manual transmissions. A new driver loft is also now in production. More options will be announced this fall at the North American Commercial Vehicle Show, McHorse added. Freightliner has also updated its Team Run Smart website, and will be bringing in its 50,000th member within a month or two. The new, simplified website, now features three sections: Live Smart; Business Smart; and Truck Smart. Live Smart focuses on living a healthy lifestyle on the road, and includes nutritional and exercise advice. Business Smart provides tools for owner-operators to be more successful in running their businesses. And Truck Smart shares insights and tips on how to drive efficiently. A group of Run Smart pros share tips on how to maximize fuel economy, spec’ trucks, and live a healthy life on the road. Truckers can sign up for free and receive a weekly newsletter and participate in an online forum. You don’t have to be a Freightliner customer to join. TN
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Integrity in Every Load
September 2017 • Truck News 41
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Equipment
Disrupting the disruptors
He said Detroit has two goals. One is to create an “exceptional user experience.” This means better integration of telematics with the fleet’s operations. Its second goal is to be the “trusted source of data” among its customers. “A lot of information comes off the vehicle. If you don’t understand the origin, why it’s available, how it’s calculated, what is going on in the engineer’s mind at the time, you may be acting on bad information,” Pfaffenbach explained. “We see it as our role as an OEM to provide that translation.” Lauren Attinasi, product strategy manager, connectivity, with Detroit, announced new ways the company plans to make data accessible and manageable for customers. One is a new Detroit Connect portal, which allows fleets to view data generated
Detroit looks to differentiate itself through greater, more practical connectivity By James Menzies YOUNTVILLE, CALIFORNIA The trucking industry of late has attracted the attention of many so-called disrupters, looking to completely change how freight is delivered or the types of vehicles used to deliver it. But such stories are usually short on details, claims Matt Pfaffenbach, director of connectivity with Detroit, who was speaking July 27 at a Detroit Connect Showcase press event. “I would like to disrupt the disruptive headlines,” he said. “What I often see, is high-level discussions
happening. Rarely do I see where someone out there has explained in detail what it is they are doing or how their product can help the market. I hope we can accomplish that today.” Today’s trucks generate copious amounts of data, but Detroit is now taking steps to make that data more manageable and actionable for fleets. It is developing more tools to streamline and analyze data so that fleet managers are given only what they need to see to improve their operations. “Our customers need something which is of use to them,” said Pfaffenbach.
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by their vehicles in easy-to-understand formats. It can also be used to remotely produce Detroit Diesel Electronic Control (DDEC) reports on vehicle performance. The new Detroit Connect portal also allows for the management of Virtual Technician remote diagnostics. It allows fleet managers to monitor vehicle health, to take deeper dives into fault codes generated by their trucks, and to measure driver and vehicle performance. Detroit has also created a new mobile app, which puts the same information into the fleet manager’s hands via a smartphone or tablet. An iOS version has already been built and an Android app is in development. Both will be released this fall. “The truck is now an active member of the team,” explained Attinasi, noting it interacts through the portal and apps with the fleet manager, maintenance manager, fuel manager, and safety officer. Jason Krajewski, manager, connectivity insight team with Detroit, said today telematics is generally event-based. It takes a snapshot of a value and provides some historical context, which may not paint the entire picture. Some hands-on data retrieval is still required. But soon, he said, data will be streamed overthe-air from the truck to the customer’s back office. It will be aggregated, cleaned and sorted in the cloud and distributed quickly on-demand, accessible to end users through webbased portals and apps. “The world is about to become much more interesting,” he said. “There’s a lot of talk about data. Data is the new oil. We want to show it’s true we can bring that actionable information to our customers.” The vision, Krajewski added, is to take data off the truck and turn it into something useful for the company’s customers. “Our customers dedicate a lot of time to sifting through data,” he said. “We think we can help them by pre-analyzing that data and offering analytics services using the expertise we have in-house.” TN
42 Truck News • September 2017
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NACFE revisits 6x2 axle discussion Challenges to widespread adoption remain, new report finds WASHINGTON, D.C. Despite a 2.5% fuel efficiency improvement, an update to a Trucking Efficiency Confidence Report shows that challenges remain for the 6x2 axle configuration. Highlighting the report’s findings during a conference call July 11, Mike Roeth, executive director of the North American Council for Freight Efficiency (NACFE) and operational lead for trucking efficiency, said there were aspects of 6x2s that the organization did not fully grasp when it first tackled the issue in 2013. “The solutions to the challenges of traction, tire wear and driver engagement were more complex than we understood at the time,” Roeth said. Tire wear in particular is a major consideration for f leets looking to employ the use of 6x2s, but some carriers are finding ways to lessen wear, such as by selecting a retreaded trailer tire for the free-rolling axle. “For some fleets that are dedicated to 6x2s, they are making them work and improving their tire wear and traction pretty significantly,” Roeth said, adding that there is still a tire wear penalty with the use of 6x2 axles. At a 50% wear penalty, the estimated increased tire cost per year for a 6x2 configuration versus the 6x4 is US$1,552, assuming 100,000 annual miles. Despite a 2.5% improvement in fuel eff iciency, the report indicates that to overcome the increased tire wear with 6x2s compared to 6x4s, f leets would need to see a 4% or hig her improvement in fuel efficiency. “While we found that the fuel savings benefits as well as the challenges from the original report are largely still true, new product refinements are coming to the market that are aimed at addressing some of the concerns fleets had about 6x2 axles,” added Yunsu Park, NACFE study team manager. “For instance, fleets dedicated to 6x2s are improving tire wear by changing the tire models they use and limiting the torque when launching the truck. Also, driver training is a significant part of a successful 6x2 implementation.” The report categorizes the various 6x2 axle configuration offerings as generation one, two and three, with the first putting in place the first 6x2 tag axle, transferring loads with the manual dump out; the second including torque at launch and better selection of tires; and the third providing further refinement, liftable axles and more efforts around load shifting, traction control, and engine
parameters. Roeth said liftable 6x2s help with tire wear and traction compared to traditional offerings, but noted that
6x2s is not a simple one. “It takes a systems approach, it takes some effort from an engineering and spec’ing standpoint, as well
“It takes a systems approach, it takes some effort from an engineering and spec’ing standpoint, as well as driver recruiting.” –Mike Roeth, NACFE challenges remain around cost and weight, as the function of lifting the axle comes at a cost. Roeth added that the adoption of
as driver recruiting,” he said. Overall, the updated report revealed seven findings: Tire wear on 6x2s will not achieve parity
with 6x4s, but can be improved with refinements; f leets should take a system-wide approach to the implementation of a full generation two package; driver communication and training is critical with 6x2 technology; 6x4 systems are also improving, which reduces the potential gain of moving to 6x2s; residual values for 6x2s remain a problem (though mostly with the first generation 6x2s and could be diminished with more recent offerings); fleets should gain knowledge of 6x2 tag axle systems; and fleets that haul under 60,000 lbs 30% of the time should be thinking of using a 6x2 because of the ability to raise the axle. TN
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Call 416-677-2636 for further details. September 2017 • Truck News 43
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Equipment
Inside the new VNL Continued from page 1
Airflow across the front and sides of the truck have been improved, for greater fuel economy. Even the hood-mounted mirrors are now more aerodynamic. They’re also heated. Customers can spec’ an optional skylight, which wasn’t possible with the previous design. New cab side windows open to provide additional light and ventilation. The air intakes have been moved forward and redesigned; gone is the distinctive inverted hockey stick design. But Spence said the new design provides better airflow along the side of the vehicle and gets cleaner air into the engine. The redesigned grille features a satin finish, with a larger Volvo logo planted in the center. The LED headlights are the most “innovative in the trucking industry,” Spence claimed. “These are not just LED headlamps, they’re intelligent.” The lamps can produce heat when needed to keep the lights free of ice and snow. They’ve also been designed for better nighttime visibility. In a nod to its European heritage, Volvo has brought the Globetrotter moniker to the North American market. The Globetrotter distinction means the truck has been equipped with all the most luxurious options. The seat selection has been expanded, and customers can now choose any seat they wish with any level of interior. Drivers will also appreciate the additional storage. A hoarder would be happy in this truck. Redesigned door panels feature deeper pockets, the dash has been cleaned up, blank switches removed, and more storage put in their place. A clever rail design allows for the installation of removable cupholders or storage bins, creating an aftermarket parts opportunity for Volvo and seemingly endless customization possibilities for drivers. “Everywhere we can put storage, we did,” Spence explained. Volvo also provides more power outlets – both USB and 12-volt – in
traditional places and also atop the dash, where it found many drivers store their devices. The new steering wheel is home to 21 buttons for frequently used controls. It’s also more adjustable, adding 20 degrees of neck tilt to the 30-degree column adjustment and 4.5 inches of telescoping available. The five-inch driver display uses vibrant colors to communicate important information to the driver, with as little distraction as possible. It can be customized to display whatever info is most important to the driver. In 2018, a new infotainment system will also be available. Maintenance managers will appreciate easier access to components located under the cab floor. The engine cover can now be removed without taking out the seats, thanks to removable floor inserts that fit around the bases of the seats. These floor mats also provide additional insulation and soundproofing. The living area of the VNL has been completely revamped for improved comfort. The control panel has been moved to the rear wall, where it’s more accessible to drivers while laying down – they no longer have to reach behind their head to adjust the temperature. The fridge is larger, thanks to the extra space available in the new sleeper. And drivers can spec’ a passenger seat with an integrated fridge,
placing drinks and cold snacks within reach of the driver’s seat. Visibility out the windshield and in front of the truck is better, thanks to the curvier hood design. And to further improve safety, Volvo announced it’s making the Volvo Active Driver Assist collision mitigation system standard on the new model. To help simplify the spec’ing process, Volvo has identified several fuel efficiency packages, consisting of bundles of aerodynamic and powertrain options that contribute to greater fuel economy. How much fuel will owners of the new VNL save? It depends, of course, on how the truck is spec’d, but Spence said improved aerodynamics improve fuel economy by 1%, the new engines with turbocompounding add another 5.5%, and I-See – a feature of the I-Shift transmis-
sion that memorizes hills along a route and adjusts the truck’s speed accordingly – can add another 1%. “The D13 with turbocompounding gives massive amounts of torque with low rpm. In combination with a low rear axle ratio, you’re going to see drastic improvements in fuel efficiency in these trucks,” Spence said. A 7.5% improvement equates to about 0.6 mpg. Initial drives of the new VNL were limited to 40 mph laps of a new onemile track at the customer center. More extensive evaluations have been promised for later this summer. But first, Volvo will be cycling some 3,000 customers and dealers through the new 36,000 sq.-ft. customer center to introduce them to the new truck. The new VNL will enter production in mid-September (day cabs) and mid-November (sleepers). TN
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44 Truck News • September 2017
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Insights Tax Talk
Driver services: The gig is up Although I’ve covered this topic before, I was asked about it twice last month, first by a driver who was told to incorporate as a condition of being hired, then by a for-hire carrier wondering what the competition across the street was doing. It must be time to revisit our old friend, the self-employed driver. The self-employed driver or “driver service,” seems tailor-made for today’s gig economy. By contracting a driver, a fleet can add or subtract capacity without the obligations or costs of having a full-time permanent employee. What’s not to like? How about the fact that the carrier is not paying into employment insurance (EI), the Canada Pension Plan (CPP), workers’ comp, or possibly any other benefit coverage for you? Or that there are no labor laws covering how the carrier treats you? Or that Canada Revenue Agency hates the idea? CRA is going to ask a lot of questions in order to determine if you are self-employed, or an employee. Who provides the tools and equipment you use? Who chooses and controls the method and amount of pay? What is your opportunity for profit or loss? Do you need permission from the payer to work for others? Rarely does a driver-service relationship stand up to a CRA review. The driver service issue goes beyond who pays taxes. Employment status affects how a worker is treated under the CPP, the Employment Insurance Act, Income Tax Act, Workers’ Compensation, and other labor rules. Many carriers will “sell” you on the fact that you will pay less tax as a contract driver. But how much are you really saving? If you make $80,000 a year and have a spouse with no income, and then become a contract driver and pay your spouse $15,000 as part of an income-splitting strategy, you will save approximately $1,200. If you come up with another $10,000 of other expenses (you’re already entitled to your meals, so really what else is there?) you can save another $3,500. All told that’s $4,800 – real money. But now you have to pay for your corporation, pay fees on a corporate bank account, and pay a bookkeeper/accountant to file GST/HST returns, T4/T5 slips, and file the corporate tax return. You have to send CRA monthly payments to pay the tax for your wages. You still have no WSIB or EI coverage, so maybe you’re going to pay for other disability benefit coverage on your own. All of these will put a serious dent in your $4,800 of savings. Then there’s GST/HST. A self-em-
ployed driver must charge GST/HST for his or her services if it exceeds the annual $30,000 gross limitation. CRA has deemed that the delivery of the “service” is considered delivered to the carrier’s office and does not fall under the zero-rated interlining provisions that generally govern trucking and brokers. Assuming the carrier is Canadian, GST/HST applies to driving a truck to the U.S. and back, or anywhere else. The real crime here is that the driver is responsible for charging GST/HST on his services. If you’re a self-employed driver working for a carrier that refuses to pay GST/ HST, in an audit CRA is going to
hand you the bill. On the other hand, I had a client using driver services that was burned by some of his drivers. They all had GST/HST numbers but a few of them closed their accounts. Not knowing this, my client continued to pay them HST on their earnings, and when he was audited, he had to repay CRA all the HST he had paid these guys and had received as refunds. The drivers? They didn’t get in trouble for receiving HST on canceled accounts. It can be confusing, so do your homework. CRA has a guidebook called Employee or Self-employed (RC4110) that explains how the
Scott Taylor is vice-president of TFS Group, providing accounting, bookkeeping, tax return preparation, and other business services for owner-operators. Learn more at www.tfsgroup.com or call 800-461-5970.
agency evaluates whether a relationship is business-to-business or employer-employee. You can also request a ruling from CRA (use Form CPT1). If you’re unclear about your status, getting expert help should be your next gig. TN
September 2017 • Truck News 45
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Insights Voice of the owner-operator
Overturning turnover: Better recruiting = Better retention I don’t get it. Does the industry breathe a collective sigh of relief and think the driver turnover problem is under control when the American Trucking Associations (ATA) reports that driver turnover rates, many times the rate of other business sectors, remain at historically low levels? As long as the numbers are below what the estimated average is at the time, do we think we’re doing a good job? With turnover for large U.S. truckload fleets down from well over 100% a decade ago to somewhere in the 70s, perhaps a bit of celebration is not unwarranted. But still. I’m not the only one who is alarmed at the seemingly blasé atti-
tude by a large part of the industry about elevated turnover rates. The subject generates enough anxiety that articles are written and discussions are held on understanding driver turnover, and there are countless ideas, guides, strategies, tips, and programs put forth on how to manage it. Happily, there is a growing realization that paying more attention to integrating new drivers into the company has a significant positive impact on turnover, and many fleets are developing onboarding processes, or what I call orientation on steroids, much to the chagrin of my HR guru friend who tried to explain
the process of turning a good hire into a great employee. But, she cautioned, the best onboarding programs start in the recruitment process. Sad to say, many fleets do a terrible job at recruiting, not quite “getting it” that one way to avoid high turnover rates is to have an effective recruitment program, which is really where a good driver retention program begins. I like to spend time in the recruiting pavilion at truck shows, asking recruiters if theirs is a good company to work for. Assuming I’m a driver looking for work, they give me the pitch: my favorite most appalling answers this year? When I asked
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about pay, I was told that within a few months, I could be making as much as a driver who had been on the job for 25 years. And with a wink, I was assured that the company doesn’t use electronic logs. I told another company I was a newbie and had nightmares about getting out on the road and finding out I didn’t like the job. “But that’s the great thing about trucking,” the recruiter enthused. “If you don’t like driving, we can move you into training or dispatch.” Believe it or not, there are still companies out there that think sugarcoating the job is the way to attract drivers. Fostering unrealistic expectations among new hires is a surefire way to guarantee they aren’t going to stick around long. Giving drivers a realistic view of what they’re going to experience should go hand-in-hand with promoting the benefits of the job. Per s on a l it y a s s e s sment s , long-st a nd i ng tools i n t he white-collar recruiting arsenal, are increasingly being used in trucking as fleets smarten up their hiring processes to find the best candidates for the job. Predictive analysis, as we call it these days, is an area of statistics that deals with mining data from a variety of sources and using it to predict trends and behavior patterns. Since such assessments measure personality factors linked to unsafe behaviors, which can lead to incidents and injuries on the road, the safety benefits and training opportunities are obvious. But research has shown that certain personality traits can also foretell a person’s likelihood of staying on the job or leaving, so predictive analytics has the potential to become a useful tool in combating high turnover rates. There are hundreds of companies out there that specialize in collecting and analyzing the data that we provide as we go about our business in this wired world. They’ve reached the brilliant conclusion that employees who are genuinely happy with the work they are doing are much more productive and less likely to look for another job. Far be it from me to dump on big data, but if asked, most drivers would tell you the same thing. Engaging drivers in the process might give some insight into how they feel about their careers, surely a significant factor in lowering turnover rates. I’m just saying. TN
46 Truck News • September 2017
TN_September_2017.indd 46
2017-08-15 10:09 AM
Technology
PIT Group conducting more platooning testing MONTREAL, QUEBEC PIT Group announced it is participating in Transport Canada’s Cooperative Truck Platooning Systems (CTPS) testing program. The test began July 24 and ends Aug. 18 at the Motor Vehicle Test Centre in Blainville, Que. The testing program is led by a joint effort by Transport Canada, National Research Council, Partners for Advanced Transportation Technology (University of California at Berkeley); the U.S. Department of Energy; the U.S. Federal Highway Administration; the California Department of Transportation, and Volvo Trucks. PIT Group is managing track operations and providing trailers, drivers, test engineers and scientific equipment, in addition to conducting fuel consumption measurements using the TMC Fuel Consumption Test Procedure in an ISO 17 025 context. “Platooning is an important step towards autonomous vehicles and to realizing the potential to reduce fuel consumption, eliminate highway congestion and improve safety,” said Yves Provencher, director, market and business development of PIT Group. “This year’s testing program will provide a valuable understanding of the real savings potential of platooning. We are pleased to contribute our ten years of testing expertise to assist in this valuable industry research effort.” TN
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TN_September_2017.indd 47
2017-08-15 10:09 AM
Powertrain
The evolution of the powertrain Choosing the correct powertrain for the right application is vital By Derek Clouthier Powertrains have come a long way over the past few decades, with ever-improving technology fueling the internal combustion engine as well as driving several more carbon-friendly alternatives into the marketplace. For now, and the foreseeable future, the diesel engine reigns king, but that does not mean there have not been significant improvements made to the traditional powertrain over the years, many of which have helped reduce fuel consumption and made the jobs of technicians and fleet maintenance managers easier. We spoke to a few industry professionals about what the current world of powertrains looks like, popular trends they are seeing today, common mistakes people make when it comes to spec’ing a powertrain, and how the engine and transmission have evolved over time. One key difference Ron Duda, corporate sales manager of the truck and trailer division for Redhead Equipment in Saskatchewan, underscored is the change from the traditional 15-liter engine down to a 13-liter. “Certainly, there’s a continuing exodus from the belief that 15-liter power is needed for every application to an understanding that technology has developed to a point where 13-liter technology will not just suffice, but perform really well,” said Duda. Primarily focusing on Mack Trucks powertrains, Duda said today’s 13-liter engine can produce 505 hp and 1,850 lb.-ft. of torque, something that was traditionally only seen with a 15-liter offering. Duda said trucking companies hauling over the road across Canada would not normally even consider looking at 13-liter power, only 15, such as the ISX, DD15, and Volvo D16, a 16-liter engine. But thanks to new technology, that attitude has changed. “Many of them are right-sizing down to 13-liter power,” said Duda. Jason Wheeler, vice-president of operations for Inland Kenworth in B.C., noted one trend he is seeing with today’s powertrains is downspeeding – getting the engine to rev as low as it possibly can – again in an effort to reduce fuel consumption. “The idea is that every time a cylinder fires, it uses fuel,” Wheeler said, “so the fewer times the engine turns over in a given distance, less fuel will be used.” Wheeler advises his customers to ask a lot of questions when enquiring into a new powertrain so they attain a full understanding of what they are getting, including how it will be spec’d to suit their intended application. “Just because you have always
spec’d a ratio, transmission, and engine horsepower doesn’t mean you will get the same results,” he said. “Engines are always changing as improvements are made and it is important to adapt everything else to the engine’s sweet spot.” One of those questions should be an honest assessment of what you
mostly for fuel mileage, so typically a fleet would run 455 hp, 10/13-speed auto, lightweight 40,000-lb axles and high ratio gearing,” Downton said. “The electronics of the engine/transmission take over for the most fuel efficient management of the powertrain.” Due to the smaller size of the mar-
Mack Trucks Hagerstown, Pa. engine assembly plant, 1970s.
Mack Trucks Hagerstown, Pa. engine assembly plant, today. want to do with your truck. “When asked what speed you travel at, 65 or 70 mph is not real,” said Wheeler. “You might have dreams of cruising the I-I5 to California at the speed limit, but this is rarely the case due to congestion and terrain. The speed you spend the most number of hours cruising at might be 55 mph, and if this is the case, spec’ to that mark.” Wheeler said when powertrains are spec’d for higher speeds when a lower speed would be more suitable, the revs will be incorrect, and the driver will constantly be going down a gear and not staying within the engine’s sweet spot. Bert Downton, regional used truck and trailer sales manager for Custom Truck Sales in Saskatchewan, said he is seeing a trend toward heavy spec’d trucks in Western Canada, typically 550 hp, 18-speed manual or automated manuals, and super 40/46,000-lb rear axles. “For fleet customers, we work very closely with the manufacturer,
ketplace in Saskatchewan, Duda said at Redhead Equipment they do not focus on any one particular application when it comes to powertrains, but rather attempt to offer service to a wide range. Duda said one of the main differences in North American powertrains over the past decade is a move toward integration, something he said has been heavily influenced by the global market. “We do look very heavily on the integrated powertrain and then we have an option for numerous different rear axles and suspensions depending on application,” Duda explained, saying the option he works with today for powertrains is mostly being handled with the Mack mDrive (automated manual transmission), which is available in 13 and 14 speeds with creeper gears. Duda said the North American market used to be unique in that it would have multiple engine manufacturers available to various truck builders – such as Mack, Cummins,
Detroit, and Cat engines. “Everybody is now going toward an integrated design, which really follows the rest of the world,” he said, pointing out that Cummins is the sole independent engine manufacturer left. (Cummins, too, is now taking an integrated approach to powertrain design, by recently forming a joint venture with transmission maker Eaton). Another reason Duda believes this move toward integration is occurring is cost, as it was difficult and expensive for engine manufacturers to meet emissions standards with their engines and at the same time be able to integrate them with various truck manufacturers. Downton said when it comes to choosing a new powertrain, some customers make the mistake of focusing primarily on the dollar factor and not on any change of application or potential resale value. He also said there are more electronic assistance programs available today than there were 10 years ago, and there has been a demand for lighter, more efficient trucks. In Canada, especially in the west where volatile oil prices often have an effect on the industry, Duda said many of his customers have become more diversified. “They need a truck that is going to haul a flatdeck one day, pull an oil tanker the next day, pull a cattle pot the next, and so on,” Duda said of his western clients. “It’s just the way business and industry is out here, so sometimes the truck is not necessarily 100% efficient and spec’d for the exact application that it’s in at that point in time, but it can perform a bunch of different types of tasks.” Duda said several owner-operators in Western Canada who worked the oil patch have spec’d their trucks with a small sleeper to enable them to haul other types of freight, like grain or fertilizer, when the energy industry takes a hit. “They’re willing to give up that 800 lbs and $10,000 that they paid for the sleeper and the new truck to have that diversity,” he said. “It’s necessary for their survival and keeps as much diversity as possible.” Wheeler cannot stress enough the importance of being as honest and accurate as possible when it comes to selecting the right powertrain and spec’s. “Powertrains are now very complicated puzzle pieces, but as long as you provide all the correct data for your application then all manufacturers have computer models that will advise you on what you should have,” said Wheeler. “The key is giving the computer model the true facts.” And don’t be afraid to ask questions if you’re not sure what you need. TN
48 Truck News • September 2017
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September 17 TN Pages 2017-08-11 2:33 PM Page 55
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Announcements Polaris promotes two executives; Trucking HR Canada names new chairman; and Vision Truck Group adds an industry veteran Polaris Transportation Group has named David Dickson its new vice-president of operations. He formerly served as the company’s director of operations. He will report directly to president Dave Cox, and will be responsible for strengthening the processes and infrastructure needed to execute the company’s future growth plans. Dickson has been with Polaris for two years, and has managed the company’s LTL operations. Polaris also announced it has promoted Jon Saunders to the newly created position of CEO, Polaris Supply Chain. In his new role, Saunders will continue to report directly to Cox with the mandate to lead Polaris’ four emerging business divisions, namely: Polaris Global Logistics, Polaris Motor Freight USA, J.G. Drapeau, and Commercial Warehousing. Saunders will continue to lead the group’s ongoing international acquisition agenda, the company announced. Mike McCarron, CEO of Left Lane Associates, has taken on the role of chairman of the board for Trucking HR Canada (THRC). David Bradley, CEO of the Canadian Trucking Alliance and the Ontario Trucking Association, has stepped down as chairman and member of the THRC Board and will temporarily add acting CEO of Trucking HR Canada to his roles while Angela Splinter, CEO of the organization, takes a temporary medical leave of absence. Isabelle Hétu has also been promoted from program manager to director, programs and services, and will be responsible for the dayto-day operations of the organization, and the staff. “We have the team and the board in place to ensure that Trucking HR Canada continues to meet its mandate and the high standards industry employers and stakeholders expect of the organization,” said McCarron. Greig Howlett has joined Vision Truck Group in the role of customer relationship and brand manager.
“In this role, Greig will be working in conjunction with our sales staff to strengthen and grow our position in the marketplace,” Vision Truck Group president John Slotegraaf said in an announcement. “Greig will be assisting in the hiring and development of new sales representatives for both Mack and Volvo brands. We look forward to Greig engaging in his past customer relationships and the development of new relationships within the industry.” Howlett has an extensive background in the trucking industry, beginning in 1985 when he joined Mack Trucks Canada as a sales trainee. Most recently, he was regional vice-president for Volvo Trucks Canada. TMW Systems has appointed Jay Delaney its new senior director of product management. Delaney, who has close to 30 years of experience in the transportation industry, will be responsible for the company’s new transportation management software platform. He will direct product strategy and lead the company’s Product Advisory Council (PAC), the company announced. Delaney comes to TMW from Hub Group, Oak Brook., Ill., where as director of application development he assisted in the selection, integration, and development of trucking management software, mobile applications and other solutions. The Canadian Institute of Traffic and Transportation (CITT) has named Pina Melchionna its new chief executive officer. She will officially begin her role as CEO on Sept. 5. “I’m very pleased to welcome Pina into CITT,” said Ginnie Venslovaitis, chairwoman of the CITT board of directors, “and I’m confident that her expertise and experience will help the organization continue as a thought leader serving industry and our membership.” Before CITT, Melchionna was executive vice-president at Concentra Bank, where she led the operations of Concentra Trust. TN
Action Trailer Sales............................. 55
Morgan’s Diesel Truck Parts ................. 53
Atlantis Radiator ................................ 54
Ocean Trailer .................................... 56
BHM Financial (Trufco) ........................ 51
Onroute Towing & Heavy Recovery.......... 50
Capacity of Ontario (Div. of Altruck Group) 54
Prestige Peterbilt ............................... 49
Dependable Truck & Tank ..................... 51
Texis Truck Exhaust ............................ 50
Eastway Tank & Emergency Vehicles ....... 53
The Truck Exhaust Place ...................... 52
Kingpin Specialists ............................. 50
Truck Convoy for Special Olympics ......... 53
King Radiator Inc. .............................. 52
XL Radiators ..................................... 50
ALPHABETICAL LIST Accutrac Capital Solutions .................... 15 April Superflo .................................... 21 BF Goodrich – The Last Word .................62 Bison Transport ................................. 35 Blue Line Transport ............................. 40 Blue Water Bridge............................... 10 Briway Transport ................................ 43 BTC Transport ................................... 42 Burrowes Insurance Brokers .................. 10 Career Opportunities ...................... 24-46 Carmen Transportation ........................ 38 Castrol/Wakefield Canada ..................... 15 Challenger Motor Freight ...................... 26 Chevron – Inside the Numbers................. 4 Child Find-Missing Kids ........................ 47 Chriscott.......................................... 43 Cimtran Transportation ........................ 38 (CITT) LBC Capital ............................... 7 Connected Vehicles .............................. 5 Contrans Flatbed Group........................46 Country Transport............................... 32 Crossword Puzzle/Solution ................. 9,57 C.U.T.C. Inc ....................................... 17 Cummins Inc ..................................... 14 Davis Fuels ....................................... 23 Detroit Diesel ..................................... 2 Doyle Transportation ........................... 38 Eberspaecher .................................... 22 Fleetway.......................................... 25 Fleet Safety Council ............................23 Forbes-Hewlett Transport .....................34 Global Sensor Systems ........................ 17 Globetrotter Logistics ............................ 43 Healthy Trucker (A Division of NAL Insurance).. 16 Howes ............................................ 18 Husky Energy ................................ 12,13 Hyndman/A Celadon Company............ 24,45 Icon Transportation Logistics ................. 42 International Truckload Services ............. 35 J-Line Transport ................................ 37 Johnston Equipment............................ 19 Kelsey Trail Trucking............................ 37
Kriska ............................................. 31 Kris Kay Truck Lines ............................ 41 Laidlaw Carriers - (Dumps-Bulk) .............30 Laidlaw Tank..................................... 36 Liquid Capital Classified ....................... 47 Magic Transportation........................... 32 Mack Trucks ...................................... 6 Michelin ......................................58,64 NACVS ............................................ 47 Newcom Events ................................. 61 Ontario Drivers Medical ........................ 47 Paul’s Transport ................................. 43 Penske ............................................. 8 Purolator.......................................... 27 Rideway Tranport ............................... 36 Ritchie Bros. ..................................... 20 Schneider ........................................ 44 SLH Transport ................................... 43 Snowbirds Autol Connection .................. 41 Stateside Consultants ..........................61 Surface Transportation Summit .............. 59 Tankmart International ......................... 17 Texis Crossword Puzzle/Solution .......... 9,57 The Erb Group ...................................28 The Rosedale Group ............................ 33 Thorsons ......................................... 41 Trailer Wizards.................................... 7 Trailwood ......................................... 29 Transcourt Tank Leasing....................... 11 Transport Financial Services .................. 57 Trison Tarps ...................................... 19 TruckandTrailer.ca .............................. 56 Uniroyal – Newland Transport ................ 60 Villeneuve Tank .................................. 41 Volvo Trucks .....................................63 WestTransAuto .................................. 37 Wiersma Trucking............................... 25 XAN Systems .................................... 25 Wilson Truck Lines ............................. 42 Young Transportation...........................42 Z Source .......................................... 23
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September 2017 • Truck News 57
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Fiction Mark Dalton:Owner-Operator By Edo van Belkom The story so far… Mark is transporting a load of highend farm tractors to P.E.I. and has a major breakdown at the junction of Hwys. 400 and 401. He gets off the highway and pulls onto a side street, only to have Mother Load unable to move. A mobile mechanic can’t get him going and a tow’s not available until the next morning. He’s forced to spend the night in a rough part of the city. In the evening Mark is contacted by a Toronto Police officer wanting him to move. The convenience store owner comes to Mark’s rescue, telling the officer Mark was making a delivery to his store. Later that night, a bunch of thugs try to steal what’s in Mark’s trailer, but go away when they realize they can’t get rid of his cargo in the city… It was almost an hour before Mark was calm enough to get a few hours sleep. It was obvious he was in a bad neighborhood and a loaded truck was a prime target, but as the night moved along it seemed the worst had passed. But as sunlight broke through his windshield, there was another knock at the door. Mark hoped it was the tow truck driver but instead it was the owner of the variety store...and he had a cup of coffee in his hand. “Morning,” Mark said, rolling down his window. “Good morning. How was your night?” “Interesting,” was all Mark could say. “Did you get robbed?” “Almost. But they didn’t want my cargo.” “I knew that. Too hard to get rid of. If you had groceries on board you would be guarding an empty truck right now.” A pause. “Here!” He handed over the coffee. “Is someone coming to get you?” “Sometime this morning. Yes.” “Good! Because you’re blocking my store and I want you gone.” Mark took a sip of his coffee and nodded. “I want to be gone.” It wasn’t until nine that morning that the tow truck arrived. The tow driver looked haggard, as if he’d been up for days. “I’m glad you’re here,” Mark said. “I don’t know how long it would be
Dalton has a breakdown – Part 3 before the cops came back.” “Sorry man, but there was a huge pile-up on the 401. It took all of our trucks to clear it up..” “That bad?” “Worst I’ve seen.” “Anyway,” Mark said. “You’re here now.” He went on to explain what was wrong with his truck so the driver could come up with a plan. Basically, Mother Load and the trailer needed to be towed to a nearby truck yard with a shop so the trailer could sit for a day or two while Mother Load underwent repairs. Once they agreed on a destination, and a fee, the driver hooked up Mother Load and freed her from the trailer. He’d first take Mother Load to a yard that was just a few kilometers away, then come back for the trailer. Mark hopped in and was driven to the truck yard. Mark was happy to see the place had a well-established repair shop with a well-kept lot and a decent waiting area for customers. The driver towed Mother Load directly into a service bay and unhooked her, then pointed out to Mark the corner of the yard he would set down the trailer. After that, Mark was talking to a mechanic who already seemed to have an idea what Mother Load’s trouble was. “Give us a day,” he said. “We’ve got a clutch on order. Once it’s delivered it shouldn’t be more than a few hours.” “Great,” Mark said. “Is there a place
nearby where I can get some breakfast?” “No, but you can take our shop truck for a while. As long as you’re back by noon and the tank’s full of fuel when you get here.” “Deal.” Mark drove around for a while before finding an all-day breakfast place. “Two number twos to go,” he said to the young girl behind the counter. He took the breakfasts out to the shop truck, then drove to where his truck had been broken down overnight to share his morning meal with the variety store owner who had helped him out the night before. “My friend,” the man said, truly appreciating the gesture. Later, feeling good about things, Mark arrived back at the truck yard. Things were just as they were when he’d left, but he still felt like there was something wrong. The trailer wasn’t there. He went to the garage and inquired. “Where’s the trailer?” “Wrecker dropped it off an hour ago,” the mechanic said, not looking up from his work. “Then another driver showed up, said he was taking the load over.” “Did you get his name?” “No.” “Company?” “No.” “You let it get stolen from your yard in broad daylight?” “How do I know it’s stolen? The guy looked legit.”
Mark turned away, angry that after all he’d been through the previous night the load was just driven off the lot as if it was somebody’s load. But he really had no time to be angry, there was work to be done. He began by making a phone call to the police who took his information, then seemed to lose interest about everything else. Undeterred, Mark then called the dealer who had sold the tractors, and then the farmer who had purchased the tractors, but neither of them seemed too concerned about the theft, as long as the police had been notified. All they really wanted was to be notified when the load was recovered. Not if, but when. Mark thought that interesting and figured that there must be a diamond-studded insurance policy covering these tractors. Back at the truck yard, Mark spoke to the mechanic working on his truck, just to see if there was any information he’d missed. “So, you didn’t see anything?” “I told you, I was working. The guy seemed like he knew what he was doing so we let him take the trailer.” “Just like that?” “Look, when tractors break down, other trucks are supposed to come by and get the trailer. That’s how our business works. “ “Fair enough, but what about the driver? Was it a man?” “Yeah.” “Long hair? Short hair? Tall? Short?” The mechanic paused a moment and thought about it. “Man in his 40s, average height, maybe a little taller than you. Short dark hair.” “Anything else?” “No, but instead of asking more questions why don’t you just look at the video?” “There’s video?” Mark said. “I don’t know. Maybe.” Mark hurried into the security office and spoke to the security guard. “You have videos here?” “Finally, someone wants to see them. Give me some time and I’ll key them all up for you.” “I’ll be back in an hour,” Mark said. TN Mark Dalton returns next month in the conclusion of Dalton has a breakdown.
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Fiction
V
ic has agreed to take a load from a new trucking company that was recommended to him by his cousin. Although Vic wondered if they were on the level, the money they were offering was too good to ignore. What it really was... was too good to be true.
And now, after agreeing to take a load for them, Vic was in the Dragon’s Den. He wanted to get out of it but unlike the television show he couldn’t end it just by saying “I’m Out!”
F
irst, he needs to make sure everyone is safe, so he drops his children off at his sister’s house and accepts a long-haul trip to Vancouver from his regular company, taking his wife along for the ride, just to be safe. Basically, he needs to disappear for a while until he comes up with a plan.
“Don’t answer it!
He needs time to think about what he’s going to do. Illustration by Glenn McEvoy
By Edo Van Belkom
These people were criminals who smuggled cocaine on a regular basis. They knew where Vic lived, knew his family... he has even heard of people’s family in the old country being in danger. They weren’t going to just let him forget about what he’d agreed to do. He “It will just be for a little while.” couldn’t just say, “No.”
It’s probably them.” After a week, Vic realizes he needs help, so he calls someone he knows who will probably know what he should do. He calls his friend, Mark Dalton
“You could go to the police,” Mark suggests. “But I haven’t done anything for them yet,” Vic says. “And let’s face it... I’m not you. I have a wife and family. I don’t want to put myself in any kind of danger. I need to get out of this deal before anything bad happens.” Mark thinks about it, then says, “I know.” “What?”
“Where you been? We’ve been calling you for a week.”
Mark tells Vic what he needs to tell them when they call, and he writes down everything he needs to say so he’ll have a script to follow when the time comes.
“I was in jail,” Vic reads off the paper Mark Dalton gave him. “What happened?” “I got into some trouble with the wife,” Vic lied. He and his wife were closer now than they’d ever been, but Mark Dalton said he needed to say these things to get them to leave him alone. “It’s stupid, really. I barely touched her, but one of my bail conditions is that I have to stay in the Province of Ontario.” There’s a pause on the line. Then “Okay, then. Call us when the charges are dropped.” And just like that, Vic is no longer expected to smuggle drugs over the border. Vic is relieved, but all he can think about is getting home to his wife and children.
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uniroyaltrucktires.com 60 Truck News • September 2017 TN_September_2017.indd 60
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New Products Michelin has a new drive tire for the growing regional haul segment, which it says offers 65% better removal mileage compared to its predecessor. The new X Multi D is a regional drive tire for LTL, pickup-and-delivery, and food and beverage applications, and can even perform light off-road duty in energy and construction applications that are off the highway 5-10% of the time. The tire uses advanced rubber compounding to provide more even wear and longer tread life. A co-extruded rubber compound is actually comprised of multiple compounds: a top compound promotes scrub resistance, while a bottom layer compound keeps the casing cool. Teardrop grooves at the bottom of the siping prevent torque cracking while decreasing heel-toe wear. Michelin is backing the new tire with its Confidence Guarantee. If
the tire doesn’t meet the customer’s expectations for mileage, traction, or driver satisfaction, Michelin will reimburse the cost premium the tire carried relative to a competitive drive tire. The new tire is being launched in sizes: 11R22.5 (load ranges G and H), and 11R24.5 (load range H). Additional sizes will be introduced in the coming months, Michelin says.
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Trail King Industries announced it is rolling out a new trailer. The Commercial MG-HG detachable gooseneck trailer features interchangeable gooseneck styles and is engineered to offer exceptional
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September 2017 • Truck News 61
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The Last Word
The Goldilocks of trucking How Villeneuve found success by being not too big, and not too small CORNWALL, ONTARIO According to its general manager, Villeneuve Tank Lines found much of its success by what is known as the Goldilocks principle. A lot of it has to do with its size, Kevin Ceaser said, it’s not too big, not too small – it’s just right. Villeneuve was founded in 1986 by George Villeneuve. Back then, the company was a simple milk hauler for local farms. Eventually George brought on Blaine Filion as a co-owner to help run the business. Today the business, located in Cornwall, Ont., hauls food products across Canada and into the U.S. and is part of the Contrans Group, which purchased it in 2017. “We are still big into dairy,” general manager Ceaser said. “And we are strictly food grade and we are strictly kosher. We travel to Western Canada, but mostly we are cross-border. We go to New Jersey, New York, Pennsylvania, the eastern seaboard. We venture as far south as North Carolina.” According to Ceaser, the company’s biggest strength is its size. Today it boasts 70 trucks, which Ceaser said is the perfect size for a trucking company. “Our size is such a big part of why we are successful,” he said. “I’ve been here for 12 years and we always say we’re big enough to do the job and keep our drivers busy, but at the same time we’re small enough to have a personal touch with our drivers and customers. I really think we’re that ideal intermediate size, where we’re not so big we get lost in the shuffle and not too small that we get steamrolled. We’re just the right size.” Being that ideal size has also helped contribute to Villeneuve’s low driver turnover rate. “Being this size has helped us to have a personal relationship with our drivers,” Ceaser said. “They’re not just a number here. We know
them. We really know them. And their wives and families. And I think that means a lot to our drivers. Being the general manager, I’m here every day and I make sure I go down to the floor every day and talk to all the drivers I pass by. It’s the same with our former part-owner. He’s here every day.” Ceaser also thinks his drivers are sticking around because of the competitive rates it pays and the stability of what it hauls.
rack, Ceaser added. “But all that being said, it’s not like we don’t want to grow,” Ceaser said. “We want to grow, of course.” The company is struggling like a lot of trucking companies in Canada and the U.S. with the driver shortage. What Ceaser is finding the most troubling is how few resumes are passing across his desk on a daily basis. “We’re finally seeing the effects of the driver shortage now,” he said. “I
General manager Kevin Ceaser (left) is pictured with veteran owner-operator Roger Coffey.
“I think being a food hauler is reassuring for our drivers,” he said. “Sure, they could be making more if they hauled chemicals, but because it’s food, it’s not as risky. There’s not that same pressure as hauling chemical products, you know? If milk starts to leak, you’re not going to panic as much as you would if chemicals did. Not to mention, hauling food, people have to eat, so you know there’s always going to be work here.” Drivers also appreciate having modern trucks and clean food grade tankers thanks to the in-house wash
Go the distance with the
think our challenge right now is the same as every other transportation company, our great commodity is our drivers and there’s not the influx of drivers trying to get in like there used to be. We’ve always said this is going to be a problem, and we’re seeing it now. The driving force is getting older, they’re retiring, and we’re not getting younger people in to replace them.” What’s most concerning is the age of the drivers that do apply at Villeneuve. “It’s funny because now with the aging workforce we’re saying, ‘Oh
wow, this guy is only in his early 50s’” he said. “You’re not getting the 30- to 40-year-olds coming in who could potentially work for you for 20 years.” To help combat this, Villeneuve reaches out to local driving schools to attract new graduates. “But that being said, the generation is the generation,” he said. “We’re finding that once they get a sense of the driving industry, they tend not to embrace it as the older generation did, so we try to reach those older drivers.” It runs print advertisements in trade magazines to help its recruitment, and uses its location to its advantage to draw in both Ontario and Quebec residents to work for it. For now, the company is moving forward and has recently rolled out electronic logging devices across the fleet. So far, Ceaser said it’s going well despite a little pushback from drivers who are nervous about the new technology. And despite the Goldilocks principle that is working for the company, the goal for the next five years for Villenueve is to grow, Ceaser said. “We are always in growth mode. We always want to be bigger and we’re getting there. We’ve been doing more out in Western Canada and since we haul food, the potential is there. The next step is just finding the new and upcoming product can be hauled in a liquid tank.” TN
Sonia Straface is the associate editor of Truck News. She has been covering the Canadian trucking industry since 2014.
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The shape of trucks to come
You recognize big change when you see it. The new Volvo VNL looks fast even before it starts rolling. On the road, turbo compounding and streamlined aerodynamics help to save up to 7.5 % more fuel. Inside, drivers will notice remarkably enhanced work and living spaces. A new 70-inch sleeper featuring a reclining bunk and telescopic ladder. A game-changing, one-of-a-kind steering wheel, a high-end infotainment system and the most ergonomic seats on the road—just a few of the innovations deďŹ ning the shape of trucks to come. For a more complete picture, check out the Top 10 Stories at volvotrucks.ca
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BECAUSE EVERY DELIVERY COUNTS, RELY ON MICHELIN.
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Arriving on time and meeting delivery deadlines, whatever the weather conditions, is a daily challenge for professional drivers. You can trust the MICHELIN® XDS®2 to get you where you need to go, when you need to get there.
© 2017 MNA(C)I. All rights reserved. The “Michelin Man” is a registered trademark licensed by Michelin North America, Inc. (C14959)
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