June 2011 Volume 31, Issue 6 Delivering daily news to Canada’s trucking industry at www.trucknews.com
WSIB wars
Rock solid
Taking on the WSIB isn’t hopeless. But you’re best to avoid conflict in the first place. Here’s how.
CBM’s Les Wakeling named Maintenance Manager of the Year By Adam Ledlow NORTH YORK, Ont. – Les Wakeling has cemented his place in the Canadian Fleet Maintenance Seminar history books with his selection as the 2011 Canadian Fleet Maintenance Manager of the Year. Wakeling, who ser ves as Canadian Building Materials’ director of operations, ready-mix, was honoured during a special luncheon at the annual Canadian Fleet Maitnenance Seminar in Markham May 10. The award, sponsored by Volvo Trucks Canada, goes to a Canadian fleet maintenance manager who stands out based on their scheduled maintenance program, quality and frequency of training programs, major accomplishments or innovations and contributions to their industry or community. Wa kel i ng wa s genu i nely touched and surprised when named this year’s recipient of the prestigious award. “Those of you who know me Continued on page 23
By James Menzies MISSISSAUGA, Ont. – Taking on the Workplace Safety and Insurance Board (WSIB) of Ontario is the classic David and Goliath scenario. However, they do make mistakes and when they do, they are beatable. That was the message from lawyers Cezanne Charlebois and Paul Harris of Charlebois Associates during a recent Driving for Profit seminar. “Many employers are not aware they have a great deal of power to deal with incorrectly adjudicated decisions at WSIB,” Charlebois, whose firm is an employer advocate of sorts when dealing with unfair WSIB decisions. “There’s always much more that can be done than you could imagine.” Harris echoed that point, noting “There’s often a sense in the employer community that you’re helpless; that you can’t fight City Hall.
king of concrete: Canadian Building Materials’ Les Wakeling has been named tops in the shop as the 2011 Volvo Canadian Fleet Maintenance Manager of the Year award winner. Wakeling oversees 20 maintenance facilities in southern Ontario and Quebec, maintaining 416 pieces of equipment for CBM, a division of St. Mary’s that produces ready-mix concrete. Photo by Adam Ledlow
Continued on page 17
The Rosedale Transport story See pg. 38
Inside This Issue...
• Insurance matters: How do truck insurers determine your
rate? We tracked down the answer and it’s not as simple as it may seem. Page 46
• CFMS Report: Caring for DPFs, handling DEF, greening your
fleet and getting the most out of your tires are subjects covered at the Canadian Fleet Maintenance Seminar. Pages 48-54
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Page 4 TRUCK NEWS
June 2011
Monthly Class 8 Sales - Apr 11 There were 1,942 Class 8 trucks sold in the Canadian market this April, starting the quarter on a positive note. The total was an improvement over not only the severely depressed 2009 totals for the month but also April 2010. More significantly April continued the recent trend of surpassing the April sales totals set back in 2001, 2002 and 2003. The month came in about 300 trucks short of the five-year average for truck sales.
OEM
Historical Comparison - Apr 11 Sales
This Month
Last Year
Freightliner
513
299
International
411
535
Kenworth
342
359
Mack
164
93
Peterbilt
219
209
Sterling
0
16
Volvo
191
169
Western Star
102
121
1942
1801
TOTALS
Historical Comparison - YTD Apr 11
Class 8 Sales (YTD Apr 11) by Province and OEM OEM
BC
ALTA
Freightliner
100
181
Kenworth
103
364
75
13
65
31
102
261
23
96
Peterbilt
57
213
50
35
171
107
47
Volvo
43
64
23
105
250
150
28
Mack International
SASK 51
MAN
ONT
QUE
NB
143
1,029
270
88
NS
69
165
291
32
0
38
187
69
9
3
400
339
87
39
PEI
24
NF
0
CDA
10
1,896
0
0
1,099
0
4
419
8
15
1,370
9
0
0
689
28
0
2
693
Western Star
101
129
23
14
57
48
9
14
1
6
402
TOTALS
519
1,277
276
500
2,259
1,274
300
117
9
37
6,568
First quarter Class 8 sales totals finished strong thanks mostly to the numbers posted in March and now a strong April has started the second quarter on a sound footing. The YTD sales totals are significantly better than the sales figures posted in both 2009 and 2010 but also better than the results after the first four months of 2001, 2002 and 2003. And while this year’s first quarter sales reached to only about half the first quarter sales during the record year of 2006, it was less than 1,500 units off the five-year average.
12 - Month Sales Trends
Market Share Class 8 – Apr 11 YTD
2,000 1,900 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Sales
May
June
July
August
September
October
1,574
1,545
1,531
1,536
1,712
1,981
November December
1,887
1,832
January
February
March
April
1,154
1,470
2,002
1,942
March proved to be the strongest month of the past 12-month period, climbing above 2,000 Class 8 trucks sold, but April is right behind with sales of 1,942 Class 8 trucks. After an improving close to 2010 with three straight months of truck sales coming in above 1,800 units, January was a disappointment with sales slipping below 1,200 again in January. February showed improvement with a climb to 1,470 before the sizeable jump in sales made in March and then April.
Freightliner, a market leader in the Canadian market for many years before International took over the top spot a few years ago, jumped out to an early lead at the start of the year with 28% market share and has since grown that lead. It now stands with a commanding 29% lead with International, whose market share has been on the decline over the past year, in second with 21%. Kenworth’s numbers are also a drop from its 19% market at the end of 2010.
Source: Canadian Motor Vehicle Manufacturers Association
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June 2011, Volume 31, Issue 6
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Page 6 TRUCK NEWS
June 2011
Reflecting on 10 years in the industry and the events that shape us Ten years. Wow. Where does the time go? My 10-year anniversary at Truck News would have come and gone unnoticed had I not received the unexpected certificate and the bonus week of vacation. When the reward crossed my desk March 1, I took some time to reflect on my first decade covering the Canadian trucking industry. My first assignment, as a freelancer living in Calgary, concerned the humane transport of livestock, an issue that’s become significant to me in subsequent years. As a keener, I decided the best way to get a captivating photo was to crawl up into the hog trailer and take photos from within as it was being loaded. As the driver opened the gates, I was suddenly rushed by not one or two, but an entire herd of toothy porkers and I found myself in a rather precarious position as I madly clicked photos (on my camera that used real film, if you can believe that). ‘This,’ I thought at the time, ‘could be a rather unceremonious end to my truck writing career before it even begins, not to mention an incredibly ridiculous way to die.’ Pigs look more menacing when they’re charging at you and you are crouched at their eye level with no means of escape. But fortunately, no harm came of me, and I’m still writing about the diverse world of truck transportation today. Really,
Editorial Comment James Menzies
I can’t imagine doing anything else. This industry is constantly evolving and is never boring. Les Wakeling, this year’s Canadian Fleet Maintenance Manager of the Year, says in this month’s cover story that ‘When you like equipment, it’s not a job.’ I feel the same holds true for those of us writing about the profession as for those who are turning the wrenches. The other thing that makes this industry so compelling to be a part of are the people; people like Les, whose forward thinking and philosophical approach to truck maintenance flies in the face of public perception that this is an industry that is slow to evolve and technologically retarded. Of course, my own 10 years in the truck reporting biz is barely noteworthy in an industry that is comprised mostly of veterans who have diesel running through their veins, some since before I was born. The Canadian Fleet Maintenance Seminar itself celebrated its 48th year in May and many of the folks who attended the first of those seminars were there once again this
Is biodiesel really the best option? Many times I have used this column to promote green transportation practices. Not only are sustainable transportation practices the right thing to do, they are the smart thing to do. A quick look at diesel pump prices over the past few months is testament to the impact of our reliance on fossil fuels even for those who don’t want to consider the additional toll on the environment created by greenhouse gas emissions. But we don’t need to remain slaves to fossil fuels or their high prices and environmental toll. One of the major advantages of the diesel engine is that it does not have to rely on diesel fuel or other fossil-based fuels. The diesel engine can be adapted to run on a wide range of renewable fuels that emit no excess carbon dioxide when used to power the truck. Using such renewable fuels, the engine’s combustion process would generate exactly the same amount of carbon dioxide as that absorbed by the source material during its growth. As Leif Johansson,
Did you know? The slice of rail business open to trucking The recent Rail Freight Service Review has revealed some of the frustrations Canadian shippers have in dealing with the railways and may present opportunities for motor carriers in segments where they compete for freight business. Service issues make up the main reason shippers decide to switch from rail to truck, according to our annual Transportation Buying Trends Survey, which exam-
The view with Lou Lou Smyrlis
CEO of the Volvo Group, pointed out a few years ago, “C02-neutral transport is not just a utopian dream.” The options are many and range from hydrogen and biogas to methanol, ethanol and biodiesel. The challenge is for government, energy producers and affected industries, such as trucking, to work together to choose the best alternative fuel options not just the politically expedient ones. The Volvo Group spent many years comparing the different options and published some very helpful data on the subject, which I always keep nearby. When I look at those comparisons, however, and consider our own federal government’s biodiesel mandate, which kicks into effect this July, I wonines the shipping preferences of shippers across the country, and is conducted in partnership with the Canadian Industrial Transportation Association and CITT. The total number of rail cars and locomotives in service is down significantly from the numbers posted prior to the recession, which may lead to capacity issues if rail does not move quickly enough to address the growth in the Canadian economy. It’s important to keep in mind, however, that trucking and rail tend to appeal to different types of shippers. Agricultural products, fuel
year. The CFMS is a Canadian institution that struggles to stay relevant, as information has become so readily available in the Google age. What Google can’t replace, however, is the face-to-face interaction that takes place at events such as CFMS. Some get it. Others don’t. Former Fleet Maintenance Manager of the Year Jim Riddle passed the mic around the Open Forum session at CFMS so attendees could share what keeps them coming back. Everyone who was there gets it. The challenge is reaching out to those who don’t. As an industry, we need to embrace the events that have played such a crucial role in the evolution of the trucking industry throughout the years. Maybe Les said it best when he accepted his award: “I think even though the Internet has brought a lot of good tools, we’ve lost the ability to network with people,” he lamented. “This is a tremendous place to come. Even though technology is good, I hope we don’t forget to come to functions like this and meet face to face.” I do too. And I say der if we have truly chosen the best option. Biodiesel, which is produced from vegetable oils such as rapeseed, sunflower and soybean oil, does score well against other alternative fuel options when it comes to the technical complexity required to adapt vehicles for its use. It also scores well when considering how quickly and easily it can be introduced and integrated with existing systems. Infrastructure can be the greatest challenge to the introduction of a new fuel and biodiesel requires minor changes. Based on these two factors I can understand the initial attraction to biodiesel. But biodiesel doesn’t score so well compared to other alternative fuels when considering several other important factors. The total “well to wheel” energy efficiency of biodiesel is middle of the road at about 17-19%. (The well to wheel impact includes cultivation and harvesting of the raw material, its transport to the fuel production plant, production and distribution of the fuel to the refueling stations and its use in vehicles. The percentage given is the proportion of energy reaching the vehicle’s driven wheels.)
Carloads originated by commodity grouping
that as one who makes a living providing information in print and electronic formats. One final note on CFMS. Thanks to our good friend Bruce Outridge for providing the cartoon images of Kathy Penner, Doug Copeland and myself that we’ve incorporated into this month’s issue. I can only speak for myself when I say, I think it’s an improvement! n – James Menzies can be reached by phone at (416) 510-6896 or by e-mail at jmenzies@trucknews.com. You can also follow him on Twitter at Twitter.com/JamesMenzies.
Its impact on reducing greenhouse gas emissions is also rated as middle of the road because fossil fuels are currently used in its cultivation and production. Biodiesel also scores very low for its land use efficiency due to low average harvest yields and high fossil energy used to turn it into a fuel. It ranks lowest for its availability due to the need for crop rotation and relatively low yield per land area. And in the rating that truck owners will likely care the most about, “well to tank fuel cost”, biodiesel does not score well against other alternatives – at best it’s about 30% more expensive in comparison to conventional diesel. In the US, biodiesel prices are running one to eight cents per litre above the price of regular diesel fuel. That we need to reduce our reliance on fossil fuels is a no-brainer. But is biodiesel really the best option that Ottawa could have chosen? n – Lou Smyrlis can be reached by phone at (416) 510-6881 or by email at lou@TransportationMedia.ca. You can also follow him on Twitter at Twitter.com/LouSmyrlis. and chemicals and minerals make up almost 40% of the freight hauled by rail. And 28% of rail shippers consider themselves “captive” in their rail options because they have access to only one rail provider and either limited or no other shipping alternatives, according to a shipper survey prepared for the Rail Freight Service Review. Commodities more routinely chased by trucking companies such as machinery and automotive, food, paper, forest products and manufactured goods make up just one fifth of carload volumes. n
June 2011
contents
?
Question of the month How do you feel about Canada’s biodiesel requirement? page 86 Mark Dalton in...
Till Theft Do Us Part
Part 1
page 84
departments
oem/dealer news: Glasvan named top Great Dane dealer. Pages 73-75
Truck Sales 4 Opinions 6 In Brief 7 Border 8-10 East 11 Quebec 12-13 Ontario 14-17 23-24 Canada Mark Lee, Tomato,Tomahto 26 Scott Taylor, Tax Talk 29 David Bradley, Industry 30 Bruce Richards, Industry 30 Al Goodhall, Over the Road 33 Ask the Expert, Safety 35 Chris Singh, Health 36 Fleet Profiles 38-40, 80-81 Rob Wilkins 41 Karen Bowen, Health 42 Insurance 46-47 CFMS 48-54 Executive View 66-71 Fleet News 76 New Products 77-78 Advertiser’s Index 79 People 82 Mail 83 Profitability Dashboard 85
TRUCK NEWS Page 7
in brief
Industry seeking fuel price answers from parliamentary committee OTTAWA, Ont. – The Canadian Trucking Alliance (CTA) has applauded a recent government decision that will see refiners, distributors and retailers to come to Ottawa to appear before a parliamentary committee and explain their pricing methods to Canadians. “As the main user of diesel fuel in Canada, my members have a particular interest in hearing the statements made by the oil industry on the matter of pricing,” said CTA CEO David Bradley. Diesel prices in Canada have been on the rise for the past two years, nearly reaching the all-time high set in 2008 in early May. Retail prices for diesel have escalated by more than 27% over the past year. At the wholesale level (as measured by the average rack price) prices are up by over 30%
during the same period. Of particular interest to the trucking industry will be the answers by the oil and gas sector to the questions regarding the impact of the federal governments’ biodiesel mandate on pricing beginning this July, Bradley said. “With limited access to domestic biodiesel feedstock, lack of blending facilities and the introduction of transportation challenges, the trucking industry has been kept in the dark regarding price impact on diesel fuel,” added Bradley. “Hopefully this process will shine the light on the true pricing impact of the July 1 mandate, and force members of parliament to come to grips that they will be exasperating an already difficult situation as it relates to diesel prices.” n
fore: The Truck News/Chevron charity golf tourney is June 7.
Early bird prizes awarded for Truck News golf tourney
TORONTO, Ont. – Kim Richardson from KRTS and Ken Olsen from TKO Transportation have won the early bird draws for cabins at Wooden Sticks during the sixth annual Truck News/Chevron Charity Golf Tournament. The sold-out tournament, to be held June 7, will raise funds for Trucking for Wishes. For more information, visit www.golfingforwishes.com. n
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Page 8 TRUCK NEWS
June 2011
border
ATA skeptical as FMCSA re-opens HoS docket WASHINGTON, D.C. – The American Trucking Associations (ATA) has voiced concern and skepticism after the Federal Motor Carrier Safety Administration (FMCSA) took the unusual step of re-opening the comment period on its hours-of-service review to include four new studies. The US DoT announced on May 6 that it would be re-opening the official rulemaking docket on the hours-of-service issue as four new studies have come to light. They’re entitled: The Impact of Driving, Non-Driving Work, and Rest Breaks on Driving Performance in Commercial Motor Vehicle Operations; Hours of Service and Driver Fatigue-Driver Characteristics Research; Analysis of the Relationship Between Operator Cumulative Driving Hours and Involvement in Preventable Collisions; and Potential Causes Of Driver Fatigue:
A Study On Transit Bus Operators In Florida. The ATA found the re-opening of the docket to be curious and issued the following statement: “We are intrigued by today’s unusual announcement that the Department of Transportation is reopening its hours-of-service docket in order to insert into the record and seek comment on a number of DoTselected studies. ATA believes decisions about the future of this important regulation should be made based on sound science and research and not political pressure, but we’re clearly skeptical of new research that has been discovered or generated by DoT at the ‘11th hour.’ Given that DoT, according to a key sleep and health researcher, may have misused scientific data as part of this process; ATA will carefully review this new information. We hope and trust that FMCSA will give stakeholders adequate time to evaluate it.” n
Seatbelt usage on the rise among truck drivers WASHINGTON, D.C. – The American Trucking Associations is tipping its hat to industry and law enforcement groups, as well as the federal government, for their efforts to improve seatbelt usage among commercial truck drivers, after a reported 4% increase in the last year. “Today’s news is yet another reflection of the trucking industry’s commitment to safety,” said Bill Graves, ATA president and CEO. “However, while these numbers are encouraging we acknowledge that there is still much more to do.” According to the Federal Motor Carrier Safety Administration, 78% of truck drivers are buckling up – up 4% in the last year and up 13% since 2007. The agency’s survey found that 80% of truckers reported wearing their belts in states with primary seat belt laws – 8% higher than in states with only secondary laws. “Two years ago, as part of ATA’s progressive safety agenda, our industry’s leading trucking companies called for states to pass primary seatbelt laws,” said Barbara Windsor, ATA chairman and president and CEO of Hahn Transportation. “FMCSA’s statistics show that these laws boost the rate of seat belt usage among truck drivers.” “Overall, truck crash and fatality rates, including the fatality rate for truck drivers, have plummeted in recent years,” Graves said. “While there are many factors contributing to these record-setting safety performance accomplishments, increasing seatbelt usage by drivers is certainly among them.” n
Jason’s Law back on track in US WASHINGTON, D.C. – Members of the US trucking industry are applauding the proposed reintroduction of Jason’s Law, which looks to address truck parking shortages and improve conditions at current truck parking facilities. US Congressmen Paul Tonko (NYD) and Erik Paulsen (R-MN) are cosponsors of the reintroduction of Jason’s Law, which would create a grant program to help alleviate the parking shortages and pay for safety improvements at existing rest areas. Tonko and Paulsen had previously introduced Jason’s Law in the US House to address the truck parking shortage and improve conditions at current truck parking facilities. The new bill was announced in May at a press conference in Washington, D.C. Jason’s Law is named for New York truck driver Jason Rivenburg who was murdered for $7 while parked in an abandoned South Carolina gas station where he was to deliver a load of milk. Due to a lack of adequate truck parking, the gas station was the only place to stop and comply with hoursof-service requirements. “We would like to thank Mr. Tonko and Mr. Paulsen for their leadership and Hope for her tenacious dedication and courage,” said Todd Spencer, executive vice-president of the Owner-Operator Independent Drivers Association (OOIDA). “The trucking industry faces a litany of issues, and the least we can do is to make sure drivers have a safe place to rest while delivering the nation’s goods.” The American Trucking Associations also affirmed its support for Jason’s Law. “America’s professional truck drivers need access to safe and legal parking in order to get the rest they need to safely transport the nation’s essential goods and comply with federal hours-of-service rules,” Mary Phillips, ATA senior vice-president of legislative affairs said at the press conference. Jason’s Law would provide $20 million annually for a number of initiatives to improve access to truck parking across the country. n
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June 2011
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spring flooding: Spring flooding in the midwest and the south and tornadoes through Alabama, Virginia and other states have created delays and jeopardized safety for truck drivers. This photo was taken (safely with a secure, tripod-mounted camera controled by remote) by Al Goodhall on a stretch of I-29 southbound just below the Emerson/Pembina border crossing. The picture inset shows the devastation left by a tornado that ripped through a Utility Trailer manufacturing plant in Glade Springs, Va. Of course, Canada had its own flooding issues as well. Hwy. 75 linking Winnipeg to the US finally opened May 17 after being closed for 29 days. Some estimates pegged the closure of that route as costing the trucking industry $120,000 a day. n
Excessive, costly background checks driving truckers out of industry: ATA WASH INGTON, D.C. – The American Trucking Associations (ATA) is appealing to Congress to eliminate duplicative background checks for commercial drivers. The association noted multiple background checks are onerous and costly for drivers and some veteran drivers are giving up their HazMat endorsements as a result. Martin Rojas, vice-president of safety and operations, made the case to the House Homeland Security Committee’s Subcommittee on Transportation Security. “The screening of individuals involved in the transportation of goods is important to the trucking industry,” Rojas told the subcommittee. “Our industry has long supported a national, uniform process to check a commercial driver’s criminal history. However, the present multiplicity of background checks for commercial drivers, and their associated costs, creates a significant challenge for the recruitment and retention of qualified drivers.”
enough: Getting HazMat-endorsed drivers is proving difficult because drivers are fed up with costly, redundant background check requirements, the ATA contends.
Rojas pointed out a background check for a HazMat endorsement can cost as much as US$150 and he estimated as many as 1.2 million drivers have given up their endorsement since 2004, in part because of the cost. HazMat drivers who also require a Transportation Worker Identification Credential must shell out another US$132.50 for yet another background check, Rojas pointed out. n
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TRUCK NEWS Page 11
east
Deadline extended for B-pass refunds, credits can now be donated SAINT JOHN, N.B. – Having removed tolls from the Saint John Harbour Bridge effective Apr. 1, the province has now extended the refund period for carriers with Bpass devices. The deadline for returning the transponders was initially May 14, but extended to June 30 to give motorists and truck fleets more time to send them in. “Now that the tolls have been removed from the Saint John Harbour Bridge, the devices used for automatic payment are no longer required,” said Transport Minister, Claude Williams. “By extending this deadline from May 14 to June 30, we are ensuring New Brunswickers have ample time to receive any refunds that may remain on their accounts.” Meanwhile, carriers or owner/ operators have a new option for
returning the devices. They can now turn them in at the St. Joseph’s Hospital in Saint John. Any remaining account balances will then be used by the St. Joseph’s Hospital Foundation for its fundraising activities. “The foundation staff came up with this interesting idea, and the Department of Transportation certainly supports their efforts,” Williams said. “I am pleased to recognize that the St. Joseph’s Hospital Foundation in Saint John have a campaign to collect donated Bpass devices. Individuals can turn in their passes at the hospital, and if there are remaining dollars on the account, that money will go toward fundraising initiatives through the foundation.” The foundation said the creative fundraiser has gotten off to a good start.
“We have already received some donated B-passes, and the response from the Greater Saint John residents is very positive,” said Laurie Flood, executive director, St. Joseph’s Hospital Foundation. “I would like to thank those who donated, as well as the provincial government for supporting our idea.” In addition to dropping them off at the hospital, you can also turn them over to the Saint John Dragon Boat Teams or at other locations identified by a ‘Pass it on Campaign’ poster. For a full list of drop-off locations, call the foundation at 506632-5596. Companies or individuals who wish to receive a personal refund on their account may submit a request by e-mail to SJHB@gnb.ca, or by mail to: Department of Transportation, P.O. Box 6000, Freder-
Truck stop to host driver BBQs HARTLAND, N.B. – Murray’s Irving Truck Stop has announced the dates of its Driver Appreciation Days and Charity Golf Tournament this fall. The truck stop will be offering Truck Driver Appreciation Barbecues on Sept. 7-8. Also on Sept. 8, the truck stop and its sponsors the Atlantic Provinces Trucking Association and Palmer Atlantic, will host their second annual charity golf tournament. Registration for the golf tournament costs $500 per foursome or $125 per individual. Hole sponsorship is also available and door prizes are being collected. All funds raised through the golf tourney will be donated to Hayward House and Kids Help Phone, organizers have announced. Door prizes are also being accepted for the two-day driver barbecue, which will take place at the truck stop. For more information on the events, call Ginelle Martin at 506-375-1966 or Shelley Palmer at 506-375-7698. n
icton, N.B., E3B 5H1. Applicants should include their name, complete mailing address and phone number, along with the transponder number or account number. The province of New Brunswick carried through on a promise to eliminate bridge tolls Apr. 1, having taken over the maintenance and operation of the bridge from the Saint John Harbour Bridge Authority. “I wish to thank the authority and, particularly, the staff for their professionalism and dedication during this transition process,” Williams announced upon removing the tolls. “Removing these tolls will ensure drivers in Saint John and throughout our province are treated fairly, and this important component of the Atlantic Gateway and Trade Corridor can function more efficiently.” n
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APTA gearing up for Atlantic Truck Show in Moncton MONCTON, N.B. – Organizers are gearing up for the Atlantic Truck Show, to be held at the Moncton Coliseum June 10-11. Highlights will include a ‘Blast from the Past’ truck show breakfast on June 10 as well as a lobster dinner that evening. Jean-Marc Picard, executive director of the Atlantic Provinces Trucking Association describes the event as: “A comprehensive forum of industry products, the truck show attracts stakeholders from all over Atlantic Canada and puts them face to face with exhibitors, displaying all their latest products at this onestop marketplace event. “The truck show is a great event for networking, meeting those industry specialists, and learning about supplier’s new products that are just right for your company.” For info, visit www.apta.ca. n
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June 2011
quebec
The public really does like us Survey finds Quebecers are quite satisfied with truckers and the industry commercial relations,” says Benoit Cayouette. He is the interim president of the Forum on General Trucking and the directeur, direction du transport routier des marchandises (director, management of the road transportation of merchandise) with Transports Quebec. Leger contacted 2,002 Frenchspeaking Quebec men and women over the age of 16, who held Class 5 licences; the majority of the respondents fell in the 23-65 years of age range. The idea to conduct the survey came out of Forum discussions about the bad image that the trucking industry appeared to have in the public eye. Forum members thought
Fe Com r gu e v s isit Tr u uC s a k tt sh he ow
By Carroll McCormick MONTREAL, Que. – It’s a pleasure to learn that 83% of Quebecers contacted in a Leger Marketing survey last year have a good or very good perception of truck drivers, and that 82% of them feel that way about trucking companies. The results of the survey, carried out for Transports Quebec and the Forum on General Trucking, which was created after the province-wide owner/operator demonstrations in 1999, were announced this March. “The main objective of the Forum is to provide a place for Quebec’s owner/operators to talk with their employers about their general conditions and, especially, about their
that this bad image could be causing some owner/operators to leave the business, and that public pressure could lead to legislative changes, such as restricting the number of trucks on the road during rush hours. “It was agreed at the Forum that the image of the industry had an effect on the general conditions of operation for carriers. Members of the Forum were convinced that the public, in general, were not supportive of the trucking industry and that the lack of support had consequences for the trucking business. Looking at the data from the Quebec Transport Commission (CTQ), we observed that a significant number of new owner/operators, about 400, registered with the CTQ each year, but that approximately the same number of people quit the business during the next one to eight years,” Cayouette explains. Forum members wanted to produce a media campaign to improve the trucking industry image, but de-
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cided to first obtain some objective evidence of the bad perception that was thought to exist. This would better equip them to improve the image of the trucking industry. The most frequently mentioned positive point about the industry that survey respondents offered was its necessary role for our society to function well. On the other hand, respondents thought that the weakest point about the industry was an insufficient respect for speed limits. Seventy-five per cent of respondents thought that the security of the transportation of dangerous goods was satisfactory. Sixty-one per cent though that the condition of trucks and maintenance was satisfactory. Only 48% of the respondents thought that the industry was on the cutting edge of technology, and 37% thought it was not. Only 40% of respondents thought that the trucking industry was doing a satisfactory job with respect to the environment. On the topic of drivers, 78% of respondents thought that trucker behaviour was satisfactory. Seventy-one per cent thought they drove carefully and 61% thought they were courteous to other users of the road. However, 60% of respondents would like to see truckers go more slowly and 58% would like to see drivers leave more space between them and the cars in front of them. Sixty per cent of respondents thought there were too many trucks on the road during rush hours. Forty-four per cent thought there was sufficient monitoring of trucks on the road by control officers, and 50% thought there was not enough monitoring by control officers. Among other findings, male respondents held a slightly more favourable view of the industry and truckers than did women, and urban dwellers had a somewhat less favourable view of them than did rural dwellers. Now that the Forum has a more clear and objective portrait of how the public views the trucking industry, it has a better idea where to focus its attention. “The Forum is now working to provide better information and facts to the public about trucking and truckers, in order to improve the negative perceptions,” Cayouette explains. “We are looking for partners associated with the trucking industry to send these messages.” As an example, the Forum wants the public to know that the new generation of engines significantly reduce pollution, and that other technologies provide significant reductions in greenhouse gas emissions. The Forum also wants the public to understand that trucks are less responsible for congestion than cars, and to teach them how to interact more safely with trucks. Of particular interest was Cayouette’s concern that truckers might see themselves as the public sees them. “Carriers and truckers must carry a positive message if they want to be well perceived. We will check if it is possible that truckers might be their own worst enemy for their image.” The survey results can be read at: www.forum-cam.qc.ca. n
June 2011
TRUCK NEWS Page 13
ExpoCam boasts record turnout for April show MONTREAL, Que. – This year’s ExpoCam was attended by record crowds, show organizers have announced. Attendance was up more than 10% compared to the 2009 show, breaking the previous attendance record set in 2007.
“It seems like people wanted to celebrate the beginning of the economic recovery,” show manager Joan Wilson said. “We were swamped on Saturday with all the drivers and owner/operators coming in but were pleasantly sur-
prised with the stronger than usual turnouts on Thursday and Friday as well.” Attendance for ExpoCam, held April 7-9 in Montreal, totaled 10,956 visitors over three days, capped by a turnout of 6,133 on
Saturday, April 9. “Visitors are what count at the end of the day and we delivered more than ever. This is not only good for the exhibitors but I think shows a real improvement in our industry overall and bodes well for the future,” said Joe Glionna, general manager of Newcom Media Quebec. n
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June 2011
ontario
Quick Truck Lube to hold customer BBQ AYR, Ont. – Quick Truck Lube will be holding its sixth annual customer appreciation barbecue July 8. The event will take place at the company’s Ayr location from 10 a.m. to 5 p.m. Officials say attendees can enjoy “excep-
tional discounts and (a) social atmosphere as well as the opportunity to speak directly to top vendors regarding their products,” in addition to a free barbecue lunch. Industry representatives from Chev-
ron, Shell, Mobil, Castrol, Mack, Peterbilt, Fleetguard, and Cummins Eastern Canada will be attending the event, while Peterbilt, Mack and Kenworth will have new trucks on site for viewing. Organizers have promised giveaways form both Quick Truck Lube and the vendors during the event. “We feel proud of our leadership
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New group aims to find trucks for good deeds TORONTO, Ont. – The Ontario Trucking Association (OTA) has become the first trade association to become a charter member of the newly-formed Trucks For Change Network, a not-forprofit organization dedicated to helping the trucking industry to develop and promote positive social change in communities. Officials say the mission of Trucks For Change Network is to help its membership of for-hire and private truck carriers to assist community charities in an efficient way. Using real-time freight matching and donation management technology, Network members can identify charities’ needs and offer their transportation and logistics services on a donated or preferred cost basis. “It’s a matter of being in the right place at the right time with the right capacity,” says Pete Dalmazzi, a former trucking industry executive and founder and president of Trucks For Change Network. “Every time our system matches available capacity from a member trucking firm with the needs of a charity client, we improve the charity’s bottom line, and contribute to the great work they do in our communities. Filling extra truck space with charitable freight reduces the trucking industry’s carbon footprint associated with empty miles. What’s more, by providing affordable transportation, we often make possible the delivery of donated items to charities that would otherwise end up in landfill sites, further contributing to a sustainable environment. We’re thrilled to have the OTA supporting our efforts.” The OTA officials says the group’s participation was given the green light by its board of directors after the program was piloted by several of its carrier members in the fall. “The goals of Trucks For Change Network align with those of OTA,” said David Bradley, the association’s president and CEO. “We see this as an opportunity to positively impact our communities. It’s a classic win-win situation, and the OTA is pleased to help bring it to life. OTA recognizes that many trucking companies already support charities, and that will continue. Trucks For Change Network creates a unique opportunity to co-ordinate these efforts, benefit charities, and generate incremental revenue for our members from capacity that would otherwise be wasted.” Serving as directors of the new company will be Scott Smith, CEO of J.D. Smith and Sons, and Evan Mackinnon, CEO of Mackinnon Transport, both executive board members of the OTA. Membership to Trucks For Change Network is currently available to all Ontario Trucking Association carrier members. OTA members and registered charities wishing to learn more about Trucks For Change Network membership and services are asked to visit www.trucksforchange.org. n
TRUCK NEWS Page 15
Ontario carriers remain cautiously optimistic TORONTO, Ont. – Ontario carriers remain optimistic, but they do have concerns weighing on their minds, according to the latest Ontario Trucking Association (OTA) Business e-Pulse Survey. The Q2 survey found that 72% of the 65 carriers that responded were ‘optimistic’ about the trucking industry’s overall prospects over the next three months, down from 75% in the Q1 survey. The OTA said rising fuel prices and concerns about the impact of the earthquake and tsunami in Japan may have caused the slight decline. Only 7% of carriers said they were ‘pessimistic’ about where the industry is headed and 21% said they were unsure. Fifty-eight per cent of respondents said freight volumes have increased compared to a year ago. Intra-Ontario freight seems to be picking up, with 53% reporting an increase, up 20% compared to the last survey. Inter-provincial freight has improved for 60% of responding carriers, a 24% improvement over the last survey. Northbound US freight has increased for 61% of respondents while southbound US freight volumes continue to lag, with just 39% reporting an increase in southbound volumes. Loaded miles are increasing for 44% of responding carriers, up 5% from last survey. Most carri-
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ers reported the average length of haul is staying about the same while 15% said it is increasing. Twenty-two per cent of carriers said the rate environment for intra-Ontario freight is improving, up from 16% last quarter. However, most carriers characterized the rate environment as “about the same.” Thirty-nine per cent of carriers said the freight rate environment for inter-provincial freight is improving, up 14% from last quarter and setting a new high since the OTA began conducting the survey in 2008. Northbound US freight rates are also improving, according to 59% of responding carriers, which is a 20% improvement from last quarter. Southbound US freight rates remain weak, the survey found, but 25% indicated an improving rate environment. Twenty-seven per cent reported decreased rates for southbound loads while 28% reported no change. More carriers are reporting a decrease in capacity. Thirty-eight per cent said capacity decreased over the past quarter, up 15% from the previous survey. Thirty per cent expect capacity to continue decreasing over the next six month. However, 34% of respondents said they felt capacity actually increased over the past
1
southbound down: US-bound loads are getting hard to find.
quarter. About half of responding carriers said they plan to hire more company drivers (48%) and owner/operators (46%) over the next few months. Similarly, 40% of carriers plan to add new tractors to their fleets while 46% are planning trailer purchases. Carriers, it seems, are beginning to face shipper resistance to fuel surcharges. Seventy-eight per cent said their customers are paying a ‘reasonable surcharge,’ however that is down 10% from last quarter and the lowest number reported in the history of the survey. The survey also found more shippers are looking to lock in capacity, with 33% of respondents indicating customers are lengthening timeframes in contracts, up 9% from last quarter. n
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June 2011
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TORONTO, Ont. – With a little more than a month to go in its ambitious 100 Donations in 100 Days fundraising campaign, the OTA Education Foundation is looking for more support to fund its 2011 university and college scholarships. The Foundation is hoping to raise at least $40,000 from 100 donors before July 6. Despite a somewhat slow start, chairman Scott Smith remains optimistic that the Foundation will reach its target by the hundredth day. “We are certainly pleased with the uptake so far which has essentially relied on limited publicity such as the initial announcement and information on the Foundation’s Web page,” Smith said. As a follow-up, a targeted campaign to carrier and allied trade mem-
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bers was sent out by mail. “We’re hoping that more companies will be prompted to donate as a result of the direct mail efforts.” Donors will receive a Scholarship Promotion Kit to assist them with promoting the Foundation’s scholarship opportunities to their employees. The scholarships are available exclusively to students whose parents work in the trucking industry. Donors will also receive a charitable tax receipt from the Foundation, which is a registered charity. The first eight donors from the campaign are Empire Transportation, Drumbo Transport, Manitoulin Transport, SLH Transport, HSBI Benefits, Kriska Holdings, Einwechter Limited, and Markel Insurance Company of Canada. n
Ontario ponders pushing back Drive Clean for newer vehicles TORONTO, Ont. – The Ontario Ministry of the Environment has posted a proposed regulatory change to the Drive Clean program on the province’s Environmental Registry for comments over the next 30 days. Under the proposed new regulations, the requirement for the first emissions test would be extended from five to seven years for all vehicles, including heavy-duty trucks, effective Sept 1. The Ontario Trucking Association (OTA) applauded the move by the province to extend the testing period by two years, saying that the fact that heavyduty vehicles were included in the changes is recognition of the greening of technology present in today’s modern heavy trucks. “With the evolution of the near-zero emission engine through Environment Canada regulations the need for programs like Drive Clean become less and less relevant,” the OTA said in a release. “For some years now, the OTA has been arguing that with the significant changes to truck engines over the last 10 years the industry has reached a point where trucks should not be seen as gross polluters. This policy move by the Province of Ontario is part of this growing recognition by governments at all levels.” n
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Do you have an opinion or comment you’d like to share with our readers? E-mail your letter to jmenzies@trucknews.com or mail it to Truck News, 12 Concorde Place, Ste. 800, Toronto, Ont., M3C 4J2. n
June 2011
TRUCK NEWS Page 17
Taking on the WSIB may require the skills of a specialist Continued from page 1
The reality is, this group can be fought. When WSIB tells you no, it’s not necessarily no.” Of course, the best way to take on WSIB is to avoid conflict with the massive, debt-laden government bureaucracy to begin with. A nd Charlebois and Harris showed up at Driving for Profit with several tips on how to do that. O/Os: Know your coverage One way independent owner/operators and employers can run afoul of WSIB is to be unclear or not proactive about their insurance coverage in the event of injury. Ontario owner/operators can opt-out of WSIB coverage in favour of private insurance from a provider such as Driving for Profit sponsor NAL Insurance. Doing so has its advantages, including coverage for injuries that occur off the job. However too often, Harris said drivers who get injured and seek medical attention will have a workers comp claim opened on their behalf because the assumption in the medical community is that anyone injured on the job is covered by their home province’s workers’ compensation board. “The problem is where an independent driver, who everyone agrees is an independent driver, purchased his own insurance coverage and is injured in another province. So he seeks out medical care and for whatever reason, the physicians that treat him send it off to a local compensation board and that compensation board sets up a claim,” Harris explained. “All hell breaks loose.” When it’s discovered the owner/ operator’s employer hasn’t been paying insurance premiums on his behalf, the employer is likely to receive a hefty bill. Because it comes on scary looking workers’ comp letterhead, Charlebois said the natural reaction for fleets is to pay the bill so as to not ruffle any feathers. “That’s not always the smartest thing to do,” Charlebois said, noting her firm is currently representing a company that paid the fees and is now in the process of trying to recover them from WSIB. “Nev-
er pay premiums for an independent owner/operator who has their own private disability coverage.” Drivers, Harris warned, should be advised to tell any attending physician in the event of an injury that they have their own private insurance coverage. Doctors may not ask. “Make sure they’re educated to know that if they’re hurt and have to go see a doctor, that they tell these people ‘I don’t have WSIB, I have my own coverage’,” Harris suggested. Company drivers who do fall under the WSIB umbrella may also be surprised to learn they can file a workers’ comp claim in either their home province or in the province where the injury occurred. Most injured drivers will file the claim with their home province’s compensation board, but some savvy victims have learned to file in the province with the more generous compensation payouts. (For the record, Newfoundland provides the most generous compensation, Harris noted). Joint Health and Safety Committees Another employer law issue that’s simmering is whether or not employers must have a Joint Health and Safety Committee when they employ mostly independent owner/operators. A recent court decision found that a Woodbridge, Ont.-based load broker with a small office staff of 11 and anywhere from 30-140 independent owner/operators at any given time was in the wrong because it didn’t have a Joint Health and Safety Committee. The OHSA threshold is 20 employees, but Charlebois warned the recent case suggests independent operators must be included in that tally. As a result, trucking companies with a small office staff and a roster of independent O/Os numbering more than 20 in total must have a Joint Health and Safety Committee, conduct quarterly meetings and have at least one manager and one employee certified. For companies that currently don’t comply with this require-
ment, the time to act is now, Charlebois warned. Currently, about three days of certification training is required by a manager and employee. However, that training is being transferred from the WSIB to the Ministry of Labour in July, and the Ministry of Labour is expected to make the training requirements more onerous. “By July, there are going to be new standards for Joint Health and Safety certification training,” Charlebois warned, adding the training will be extended to five days. “Three to five days of training for most employers is absurd. Get your training done by July so you’re not dealing with the new standards. Get your Joint Health and Safety Committee in place and get the training done before July.” For larger employers, this may mean taking a fresh look at the benefits of creating an in-house training program, Charlebois added. “It’s an interesting way for you to save money and not have to pay the exorbitant costs of having an outside provider do the training for you,” she suggested. She said her firm is in the process of helping a large retailer set up an in-house training certification program that will save it $1$2 million a year in training costs. “Having your own internal trainers will save you buckets of money. The process of getting approved is a long process, but it should be a long-term goal (for large companies).” WSIAT appeals Charlebois also had some helpful advice for employers who are in the unenviable position of losing a Workplace Safety and Insurance Appeals Tribunal (WSIAT) Section 31 hearing decision. The WSIAT represents the highest level of appeals under WSIB’s umbrella, Charlebois noted, however according to an often overlooked line of fine print, employers have just 40 days to appeal any decisions rendered by the tribunal. Past experience shows the Tribunal will not budge on that
deadline, she added. “Usually, companies are in a state of shock for at least that amount of time,” upon receiving an unfavourable judgment, Charlebois said. “Nobody knows about this 40-day deadline. It’s a brutal deadline. You usually have six months to a year to file an appeal with other Boards.” Dealing with faulty WSIB decisions is a complicated and onerous process that in many cases requires the assistance of a specialist in employer law. Harris said mistakes do happen and employers should not accept them without a fight. “WSIB is based on legislation with clear rules but also an awful lot of gray,” he said. “WSIB and every other compensation board writes policies to interpret what that gray is supposed to mean and how well they apply those policies depends on the skill level of the handler of that claim.” Skill level can be inconsistent when you consider WSIB employs about 5,000 people, Harris pointed out. Worse, the agency has little interest in the implications some of its rulings can have on an employer, he added. “Each and every one of those Boards is a sleeping tiger. They don’t mean to be difficult. They believe they’re there to provide a benefit and mostly they do, but having said that, they’re a bureaucracy and because of that they don’t always do the things you think are sensible and they don’t care about your bottom line – that’s the last thing on their mind,” Harris said. “All they care about is ensuring this (injured employee) is taken care of medically and financially and if that is going to put your company in financial distress, they don’t care. They don’t care if it’s going to put your company out of business.” If you need help in fighting your WSIB battles, you can contact Charlebois Associates. Their Web site can be found at www.charleboislaw.com. For more information on Driving for Profit, visit www.drivingforprofit.com. n
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June 2011
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Top petroleum haulers awarded by CPPI By Jim Bray CALGARY, Alta. – If you’re in the petroleum products hauling business, it pays dividends to be a bit of a scamp. Not just any scamp, however. Webster’s Unabridged Dictionary defines “scamp” as: “A playful, mischievous, or naughty young person.” But when it comes to the Canadian Petroleum Products Institute (CPPI), the word – as applied to the winner of its Best Overall Carrier award – actually refers to a trucking company based out of Langley, B.C., with branches in Kamloops and Sherwood Park, Alta. Scamp Transport may have been the CPPI’s ‘best of breed’ for the year 2010, but it was only one of four companies honoured by the Institute at the group’s seventh annual awards luncheon, held in Calgary on Apr. 27. Speaking to the approximately 30 guests and dignitaries in atten-
dance, John Skowronski, CPPI’s director of environmental affairs for the western division, noted that since the organization started tracking carrier performance some 15 years ago, there has been almost continuous improvement, with incidents down from a high of 0.63 per 1,000 deliveries to 2010’s low of 0.27. “We established a benchmark, a target to achieve and try to improve on,” Skowronski told attendees, “and of many factors, the most critical is the safe handling of petroleum products.” Four of the five honours are awarded strictly statistically, but the Best Overall award, goes beyond that to include “Qualitative aspects based on the nomination by the member companies who use the carrier.” In effect, Skowronski said it’s “A vote of confidence from the custom-
er, based on aspects such as customer service, paper processing time, and the like.” Nominees not only have to show improved performance; they must also exceed the Institute’s benchmark, which for 2010 was set at 0.40 incidents per 1,000 deliveries. Only contract carriers are eligible – no branded carriers are considered – and the carrier must have been contracted with a member company for a minimum of two years. To be eligible for the best overall award, a carrier must not only be nominated by member companies, but must have made a minimum of 4,000 contracted deliveries in each of the previous two years. The four carriers honoured made over 98,495 deliveries collectively in 2010 on behalf of CPPI member companies in western Canada.
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best overall: Jay Campbell (left) of Scamp Transport receives the top award from CPPI’s John Skowronski.
The envelope, please… The Improvement Award for Reduced Product Mixes went to Trimac Transportation (accepted by Alan Potts) and was one of two awards the company earned. Trimac was also handed the Improvement Award for Reduced Vehicle Accidents. The Improvement Award for Reduced Product Spills was accepted by general manager Jeff Salmon on behalf of Vancouver Island-based Bridgeway Transport. Petrohaul’s Ron Wiebe accepted the Improvement Award for Reduced Personal Injuries. And Jay Campbell, Scamp’s general manager/CFO, accepted the Best Overall Carrier award, which consisted of a trophy, a plaque for each of Scamp’s three offices, and decals for Scamp’s drivers to wear on their hard hats. “I’m honoured to get a trophy like this,” Campbell said, and paraphrased the first president of the US to illustrate what motivates him: “George Washington encouraged his people,” he said, “when he said ‘Let us push our standards to a level which only the wise and the honest can repair’.” In other words, Campbell continued, “Don’t compromise your integrity, don’t compromise your moral code, do not compromise any of your ethics, and it will be the guaranteed formula to find you success and happiness in life.” Campbell said it’s a philosophy to which he’s subscribed on both a personal and a business level, and noted that the CPPI subscribes to it as well. “The CPPI was founded so that we could enhance the safety, enhance the efficiencies that this industry sorely needed,” Campbell said. “There’s a saying with Scamp: ‘You never forget where you came from, you never forget what got you there’ and I’m forever indebted to the CPPI for what you’ve done, through thick and thin. You’ve helped us beyond what you know.” Campbell dedicated the award to Scamp’s entire fleet. “We all know our success is determined at the end of the hose,” he said. “I couldn’t have done it without anyone in the organization; they’ve all been an integral part of getting us to where we are and I thank them for that.” “You need a values system that’s going to drive you forward,” Campbell continued, “and at Scamp, I can tell you without a shadow of a doubt, it is built around safety. It is the core value of our organization, the catalyst that drives us and the fuel in the tank that drives us toward that flawless execution we want to deliver to our customers each and every day.” n
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June 2011
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AMTA awards its finest By Jim Bray BANFF, Alta. – A half-dozen longtime industry veterans were honoured for their body of work at the Alberta Motor Transport Association’s annual Management Conference in Banff over the May 1 weekend. Safety Person of the Year The first award – the 2011 Safety Person Award, sponsored by Milestone Insurance Services – was given to Trimac’s Ken Arthur, who said “You can’t conduct yourself like an idiot when you are driving your private vehicle, then come into work, flick a switch and adhere to all the rules of the road. It doesn’t work like that. Professionalism is a lifestyle.” Arthur should know. He started as a driver in 1973, later becoming an owner/operator, flatdecking throughout Western Canada for Tri-Line. He sold
his truck in 1978 and went with Consolidated Concrete but by 1986, frustrated with working long hours that kept him away from his young family, he signed on with Trimac and the rest, you might say, is history. In 1988, Arthur found himself training a friend who was looking for a new career as a driver. It was the beginning of a process that took him from operations to bulk systems safety, and eventually taking up residence as central training instructor, Canada at the new, Calgary-based Trimac Learning Centre (TLC). Upon hearing he was to receive the Safety Person of the Year Award, he said “Winning the same award that (the late Alberta truck safety legend) John Tessier has won takes my breath away.” Driver of the Year Orlick Transport’s Allen Doell
drove away with the 2011 Driver of the Year award, sponsored by Volvo Trucks Canada. Doell’s professional odometer has tallied some three million kilometres during a 37-year career, with nary a collision. Doell had always wanted to be a professional truck driver, and he came by the dream honestly, thanks to a father who was also in the profession. In fact, as soon as he turned 18, Doell got his professional driver’s licence and went to work with Alberta Steel, one of only three companies for whom he’s driven long-term in his career. Now, Doell is happy to do P&D in and around Edmonton, relishing the contact he gets to have with his customers, which is one of the things he likes best about driving. He also helps train new drivers, through test drives and by sharing his years of experience – and he claims to learn as much from those he is teaching. “From these new drivers I learn about new cultures, the different histories and even driving tips,” he said.
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“I’m proof that old dogs can still learn new tricks.” Doell credits his clean driving record as the result of three things: caution (as in always being aware of his surroundings), his experience (by now, he knows what he is doing) and good luck. Associate Trades Award Meanwhile, the 2011 Associate Trades Award went to Darrel Shire, of Kal Tire in Edmonton. Shire started with Crown Tire (which was purchased by Kal Tire in 1993) in 1973. His interest in the industry goes beyond his gig as outside sales rep for the West Edmonton Region, including involvement in the AMTA’s Associate Trades division, Truxpo, the Edmonton Draw Down Dinner and the Edmonton Golf Tournament. Historical awards Historical awards are also given to a trio of longtime movers and shakers. The American Truck Historical Society gave two standalone Golden Achievement Awards, one to Standen’s Limited and one to Al Kits of Porter Trucking, while a third Golden Achievement Award and AMTA Historical Award went to Darshan Kailly. The Golden Achievement awards recognize people or companies – and those associated with the industry – who have been in the business for at least 50 years. Mel Svendson, president and CEO of Standen’s, accepted the award for the Calgary-based business whose founders – Cyril Standen and his father, William – began the venture in 1924 with a $600 investment in a blacksmith shop they housed in a barn on the family farm. Standen’s now employs more than 500 people. Porter Trucking’s Kits immigrated to Red Deer in 1952 from his native Holland, where he had spent two years learning to be a machinist and welder. He found work at Stewart Brothers machine shop in Red Deer then, after two years, an opportunity came along to get involved in trucking. Kits became a mover and shaker, owning many fleets throughout his career. Kailly, recipient of the ATHS Golden Achievement and AMTA Historical Awards, needs little introduction. His career began as a part-time billing clerk for Canadian and Consolidated Freightways in Vancouver, where he put his formidable typing skills (learned, attendees were told, in high school because the class was nearly all girls) to good use. Kailly’s rise through the corporate ranks included being chief rate clerk at the Vancouver terminal. His goal, as he apparently told a visiting terminal operations manager who asked him what his aspirations were at the time, was to be president of the company. It took a while, but he did it. Upon the retirement in 1981 of company president Len Huyser, Kailly finally achieved his dream of becoming president. In 2002, Consolidated Freightways went broke and was picked up by TransForce. Kailly stayed on as CEO but in 2010 he decided to retire. Service to the Industry The final honour bestowed at the AMTA’s conference was the 2011 Service to the Industry award, given to outgoing AMTA president Dean Paisley, owner of Lethbridge Truck Terminals. n
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If you know an Owner/Operator who exemplifies professionalism while also demonstrating a clean driving record, a commitment to safety and a track record of community involvement, nominate them for this prestigious award by completing the application form below. We know Owner/Operators are at the heart of the trucking industry, investing both personally and financially in their businesses. We’re proud to take this opportunity to recognize the best among them.
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The Owner/Operator of the Year should be… Name: Address: Town/City:
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Home phone:
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Email: Number of years in trucking/commodity hauled: Primary truck and engine: Number of vehicles: Contracted to (if applicable): How do you maximize fuel efficiency?: My choice is based on: Safe driving record ❍ Industry/community involvement ❍
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Mail completed forms to “AWARD” Truck News/Truck West, Attn: Kathy Penner 12 Concorde Place, Suite 800, Toronto, Ontario M3C 4J2 FORM MUST BE FILLED IN COMPLETELY AND NOMINEE MUST HAVE CLEAN DRIVER'S ABSTRACT
June 2011
TRUCK NEWS Page 23
canada
Meticulous tracking helps CBM run an efficient shop garages were operating. Among the stats now being tracked is mechanic availability – which has always been loosely tracked, according to Wakeling, but its current daily tracking allows for much more accurate results. “We track the percentage of time a mechanic is available (for scheduled) work,” Wakeling says. “We would like to see 100% – but you’ve got service calls, you’ve got door calls, you’ve got other items that take away from that scheduled time. Every time a truck rolls up to the garage, if it wasn’t a scheduled maintenance item or it wasn’t documented on a pre-trip, we track that. And from that, we also look at how successful our pre-trip program is with our drivers. If we’ve got a lot of drivers running up every day, in the middle of the day
engraved in history: Volvo’s John Montgomery (left) presented Les Wakeling with the Canadian Fleet Maintenance Manager of the Year award at CFMS. Photo by Adam Ledlow Continued from page 1
know I’m not at a loss for words very often, but I am now,” he said upon receiving the trophy. “This is a surprise. It’s not an individual award, it’s definitely a team award. You can’t do it without a good supporting team behind you.” Truck News later visited Wakeling in his shop to find out more about Canada’s top maintenance manager. “I always thought that it was a great achievement, particularly when it’s your peers and others in the industry that actually choose the winner of the award,” Wakeling told Truck News. “A lot of people that aren’t involved in maintenance on a day-to-day basis don’t understand what it takes to maintain equipment…so that is probably nicest, to know that other people that you work with in the industry recognize it.” With a career in maintenance spanning about 35 years, Wakeling got his start as a mechanic, before being offered a supervisory role at a young age. Today, he
oversees 20 maintenance facilities in southern Ontario and Quebec, maintaining 416 pieces of equipment consisting of Class 8 trucks, straight trucks and trailers. But despite more than three decades in the industry, including 32 years at CBM alone, Wakeling is still always seeking out better ways to do things. In fact, just recently, Wakeling invited a consulting firm to suggest ways for the company to improve its processes. “I think when you have confidence in your ability…you’re more open-minded,” Wakeling said of the decision to bring in outside help. “We’ve been trying to drive efficiencies for a number of years. It’s a very competitive business. To get better and to be more efficient, you need to find out where your gaps are, and that’s what they helped us do.” Despite having “no idea how to fix a truck,” the consulting firm was able to look at CBM’s workflow and help introduce some Key Performance Indicators to measure how efficiently the company’s
during production hours to get repairs done that should have been documented, then that tells us we need more training.” The frequency of the company’s on-road service calls is one stat that CBM did not track in the past. “And we were quite surprised to find out that we spent minimal time on the road repairing trucks that had broken down, which also tells you how successful your preventative maintenance program is,” Wakeling said. Tracking overtime helped decrease the company’s extra work hours by 50%, “just by having it visible,” Wakeling says. CBM also recently started tracking write-ups at each of the company’s locations, “so when we take a look at the network of our locations and start looking at this data, Continued on page 24
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Page 24 TRUCK NEWS
June 2011
canada
Wakeling draws on experience from coaching pro lacrosse to motivate technicians Continued from page 23
it allows us, because we have so many locations, if we see a shop getting busier, we can move some resources there to get over the hump. So you end up with a nice line instead of those peaks and valleys.” A common frustration heard at CFMS, and in general, concerns the reliability of emissions-related components. But while some have opted to take action to avoid such technologies as diesel particulate filters, Wakeling and his crew chose to meet the challenge head-on. “Our lifecycle is already 15-20 years in this business. I know there were a lot of pre-buys to try and avoid emissions. We didn’t do that. I would much rather get involved in the beginning, try and understand the system, knowing that as the system gets older, there’s more improvements made, the technology gets better,” he says. “We’ve got DPFs. We’re going to be putting SCR (trucks) into the system. But I can’t honestly say it’s been a bad experience. I think we probably went through more growing pains initially with the first tier, second tier, with some of the electronics that were dealing with emissions. But I’ve never worried about that. Sooner or later, you don’t have a choice, so I would much rather be at the front end so that I can understand it better. We’ve had a lot of great support from the manufacturers too.” But being a great maintenance manager isn’t just about the equipment. Wakeling is also meeting the challenges of today’s new generation of technicians and their desire for a career-life balance. “It’s something that we’ve recognized as a company. Whether it be good or bad, I think the younger generation probably is more in tune with life balance than we are,” he says. “And I don’t begrudge that and I think we need that. I think we have to adapt as
a business, to make sure that we can give that to those people. Do you work to live or do you live to work?”
that if people understand what you expect, they can deliver.” “People don’t come to work saying, ‘Hey, I’m going to do a bad
‘I think the younger generation probably is more in tune with life balance than we are. And I don’t begrudge that and I think we need that,’ Les Wakeling, Maintenange Mgr. of the Year In terms of fostering passion for the industry that has shaped his own career, Wakeling believes firmly in the power of apprenticeship, which CBM has used successfully for the last 10-15 years. “Even though there’s a little bit of a growing pain to begin with, we have all (our past apprentices) still working for us. They understand your business. They grow into the culture,” he says. “But I think it’s how your develop them. You develop that culture and you develop the expectations. So once again, as much as they learn how to repair a piece of equipment, you also give them the values that you need for them to be successful.” Wakeling’s ability to encourage new talent extends to his personal life, where he has served as a lacrosse coach at both the amateur and professional levels for many years. In the end, Wakeling says it’s people that make both a manager and a coach successful. “Whether you’re coaching a team or managing people or leading people, you have to know your people, you have to know what makes them tick. You can have the best technology in the world, but it’s still a hands-on business,” he says. “Being decentralized, because we don’t have the luxury of having one shop and a foreman, we rely on our mechanics to self-manage so it’s really, really important that we communicate clearly what our expectations are. You’ll find
job’,” he continues. “So you’ve got to give them the tools to help them do a good job, and a lot of times it’s information. They need to know the bigger picture and what our expectations are. And it’s no different than a (sports) team. You have 25 different personalities, every one of them reacts differently, and it’s your job as a coach to get the best out of that person and it’s the exactly the
‘Best Fleets’ kick off Canada-wide tour REGINA, Sask. – The Best Fleets to Drive For seminar series kicked off its 12-date tour in Regina with an exploration of the trends and best practices of the top 20 fleets in Canada and the US. Best Fleets to Drive For is an annual survey and contest conducted by the Truckload Carriers Association and CarriersEdge. It identifies the North American for-hire trucking companies that provide the best workplace experiences for company drivers and owner/ operators. The two-and-a-half hour session got underway with a look at the program’s evolution, as well as some highlights from the past year, including a “substantial” increase in nominations and fleet participation and a public endorsement by administrator Anne Ferro of the Federal Motor Carrier Safety Administration at the TCA convention. The discussion then moved to two of the biggest trends to emerge over the
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same at work.” One way for newcomers to the industry to help build and maintain personal relationships with others is to attend events like CFMS, Wakeling says. “I think even though the Internet has brought a lot of good tools, we’ve lost the ability to network with people,” Wakeling lamented during his acceptance speech. “This is a tremendous place to come. Even though technology is good, I hope we don’t forget to come to functions like this and meet face to face.” And Wakeling looks forward to maintaining those relationships for many years to come. “You never see people leave this business,” he told Truck News. “They float around within the business, whether it be a salesperson, whether it be a fleet guy. I think there’s a general underlying passion for equipment. When you like equipment, it’s not a job.” n
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past year – Google Street View and social media – and how fleets are using those to improve both operations and safety. Also covered during the event were some of the best practices that are common to the largest and smallest best fleets, which included a detailed look at this year’s best overall fleet for company drivers to see what separates them from the pack. In a new section, the program also offered some “myth busting,” by comparing commonly held beliefs in the trucking industry against data from the Best Fleets program to see whether those beliefs are valid. In another new section, the program dug into some “minefields” – the problem spots that most commonly derail fleets vying for the title, and explained why they can be so dangerous. The half-day seminar also explored driver comments and requests, says CarriersEdge’s Mark Murrell. “(Our) ever-popular review of driver comments and requests shows that, once again, many of the things drivers commonly request – such as ATMs in the driver room, and walking paths at the terminal – aren’t that difficult to provide,” he said. The session wrapped up with a series of steps to help companies work towards becoming a “Best Fleet.” “This is my second presentation that I have attended for the Best Fleets to Drive For series and every time I have attended I gather new innovative ideas to introduce to DJ Knoll’s drivers,” said Dan Knoll of White City, Sask.based D.J. Knoll Transport. “One day soon DJ Knoll will be the Best Fleet to Drive For.” The remaining dates for the series as of press time are as follows: May 26 - Montreal, Que.; May 31 - Calgary, Alta.; June 1 - Edmonton, Alta.; June 2 - Vancouver, B.C.; June 7 - London, Ont.; June 8 - Mississauga, Ont.; June 9 – Moncton, N.B.; June 14 - Kitchener, Ont.; and June 16 - Ottawa, Ont. All seminars will run from 9 a.m. to 12 p.m., with refreshments provided. Admission is free, but advance registration is required. To register, contact Judi at 905-530-2430. n
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June 2011
industry
It’s not the EOBRs we should be concerned about Dispatch and load planning software is a bigger threat to our independence and working conditions It’s time for me to throw my two cents worth into the EOBR debate. As someone who has many years’ experience of a ‘spy in the cab,’ I’ve got a good idea of what the EOBR will do to trucking. I’m a driver, through choice. The most enjoyable part of my job is the freedom I have at work, freedom that the EOBR will take away from me – or will it? The simple answer is no. In the long-term, it will not affect me one bit. Sure, it will track my every movement, but that’s already being done by a multitude of other stuff. Cell phones send out a signal to the cell towers, it’s a simple process for the phone company to track every move I make. Law enforcement can subpoena these records if they need to – it’s unlikely the DoT will, but the facility is there. Electronic toll tags also record times, dates and vehicle details. Scalehouses and Pre-Pass transponders record the same details, but add axle spacing, speed and weight to the recorded details. Gate logs at shippers/receivers have time and date stamps on them. Most now log you into a computer and everything is timed. Then we have fuel receipts. Even swiping a loyalty card for a coffee or a shower puts you in a specific location at a specific time, as do credit card receipts and so on. In short, most things drivers fear about the EOBR are already being done. The only way to avoid any of the above is to run through the bush, don’t buy fuel, don’t shower and don’t buy any food or drink. There’s not a lot of point doing that, as it’s a very short-term solution to a problem that, if you plan
You say tomato, I say tomahto mark lee
your trip properly, doesn’t exist. Unless you’re an outlaw trucker, in which case you don’t belong in the industry in the first place. So what do we have to look forward to when the EOBR is mandated? (Notice I say ‘when’ not ‘if.’ They’re coming our way. I’ve just fired up my crystal ball, so trust me on this)! I happen to think that for both drivers and carriers alike it will be a good thing overall. Short-term, it will be a nightmare. Appoint-
er screens know no better, the job gets done as the computer says it will, but it’s the driver that makes it happen – not some fancy program that works out distances and average speeds, speeds which are often the maximum in the province or state. Far from being the Holy Grail, these programs are among the worst things ever to happen to trucking. Properly run companies will say they improve efficiency, they can, if used correctly, but far too many use it as an absolute: the computer says it takes X-hours, so it better not take any longer. Dispatch can say to drivers ‘Well the computer says it can be done in X-hours, why did it take you an extra hour?’ The driver then feels pressured not to have that conversation again and the next time, he skips lunch or a shower and gets creative to avoid it. The EOBR will switch the onus back to the office. We have a re-
‘The EOBR will switch the onus back to the office.’ ments will be missed and drivers will be running out of time left, right and centre. That will soon get sorted out. Under normal circumstances the driver is expected to overcome all the obstacles that get in the way. A Winnipeg-Calgary or a Toronto-Montreal turn can be done within a 13-hour driving day…on paper. But throw in some weather or a back-up, or frozen brakes, or a lineup at a fuel stop, etc., and then the only way to do it is to be ‘creative.’ There’s an old saying: ‘Today’s favour is tomorrow’s job.’ In far too many operations it’s expected now. The planners and their comput-
sponsibility to do our best for our companies/customers, but it has a limit. The EOBR will draw the lines that we all have to work to and planners and dispatchers will have to change their game too. The programs also keep rates down. In the winter or in the big cities, what used to be possible simply isn’t anymore. Yet the rates haven’t risen to take into account the extra time, which can be as much as an extra day per week when it’s all added up. So carriers are actually responsible for the thing they all moan about the most: low rates. It’s way past the time that the industry stood up for itself. We have a real problem with
saying ‘no.’ Now we don’t have to anymore, the little black box in the cab will do that for all of us. Drivers will have to be paid more. There’s already talk of a shortage. More drivers will be needed, how will that happen? Simple, more money. So that’s a good thing for us, but what about our employers/customers? The same applies: more trucks will be needed, they’ll be able to name their price and so they should. Okay, all this money will come from somewhere, the extra charge to shippers will be passed on to the consumer, but so what? We’ll be earning more money than we are now, we won’t even notice the increase! For far too long, transport costs have been artificially low. We’re not a commodity, we’re the most important industry in the economy. Yet we all, for the most part, compete on price first and foremost, with the lowest being the best to everyone but ourselves. The EOBR will, if we do it right, change all that. Personally I like things as they are right now. I’m a professional. I work alongside professionals – we all know how to do the job properly – but we live in the age of machines and technology. As sure as night follows day, they’re coming down the pike. We need to work out the benefits they can bring rather than concentrate all our time and energy on moaning about them. We’ve got to adapt or we become dinosaurs. We all know what happened to those guys. n – 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.
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Private Motor Truck Council of Canada Association Canadienne du Camionnage d’Entreprise
It’s All go for the
PMTC CONFERENCE JUNE 23-24, 2011
CONFERENCE FEATURES: n Educational seminars on current industry issues n Networking sessions n PMTC - Huron Services Driver Hall of Fame n PMTC - 3M Vehicle Graphics Design Awards n PMTC - Zurich Private Fleet Safety Awards
Thursday, JUNE 23
PMTC 2011 ANNUAL CONFERENCE REGISTRATION FORM
9:00 a.m. Registration & Continental Breakfast
3 WAYS TO REGISTER:
10:00 a.m. Seminar I: The Regulatory Update
REGISTRANT INFORMATION
We kick off the 2011 educational conference with an informative review of current regulatory issues that affect the trucking community. This wide-ranging discussion will address trucking and labour related issues, cross-border security, and proposed changes to U.S. & Canadian regulations.
11:30 a.m. PMTC – Huron Services Driver Hall of Fame Luncheon During this luncheon we will induct some special drivers, each of whom has accumulated a truly exceptional safety record over many years. This annual event is a key opportunity to recognize and appreciate the best of the best.
1:30 p.m. Seminar II: The Fleet Security Seminar If your fleet hasn’t dealt with theft, hi-jacking, or similar crimes you may simply be one of the few lucky ones. But that kind of luck can’t last forever. This seminar will examine current levels of criminal activity affecting trucking and describe some best practices to keep your drivers and trucks safe.
1. EMAIL TO INFO@PMTC.CA
2. ONLINE AT PMTC.CA
3. FAX TO 905-827-8212
Name: _ __________________________________________________________________________________________ Title: ___________________________________________________________________________________________ Company: _______________________________________________________________________________________ Address: _________________________________________________________________________________________ City:_______________________________ Province:___________________________ PC: ______________________ Phone: ___________________________________ Email: _________________________________________________ Additional registrants: 1. ____________________________________________ 3. ____________________________________________ 2. ____________________________________________ 4. ___________________________________________
2:45 p.m. Seminar III: The Vehicle Safety Systems Review
INDICATE HOW MANY WILL ATTEND EACH EVENT
State of the art safety equipment is available to today’s truck fleet, but do you know what will work for your fleet? Our experts will describe the current products and the science that designed it, and (hopefully) even give us a peek at what is coming next.
Thursday
Friday
_______ Seminar I: The Regulatory Update
_______ Seminar IV: The Human Resources Factor
_______ PMTC – Huron Services Driver Hall of Fame Luncheon
_______ Seminar V: The Value Proposition in Driver Training
Come and meet our exhibitors and conference supporters in a relaxed, enhanced display area. Talk with your colleagues and look at new ideas over a drink and some snacks.
_______ Seminar II: The Fleet Security Seminar
_______ Seminar VI: Attacking Driver Fatigue
_______ Seminar III: The Vehicle Safety Systems Review
_______ Reception with our Exhibitors
5:30 p.m. The Chairman’s Dinner & Entertainment Evening
_______ Refreshments with our Exhibitors
_______ 3M Vehicle Graphics Award Luncheon
3:30 p.m. Refreshments with our Exhibitors
We’ll close out the first day over dinner, during which we will present the PMTC – Zurich Private Fleet Safety Awards to some of our best in class fleet operators. Following dinner, loosen your belt and get ready for some laugh out loud stand-up comedy.
FRIDAY, JUNE 24 8:00 a.m. Registration and Coffee 8:45 a.m. Seminar IV: The Human Resources Factor Who wouldn’t agree that human resources are the most important single factor in fleet operations? It’s our people that make us successful. In this seminar we will learn from Canada’s leaders in human resources research and strategy development specifically for the trucking community.
9:30 a.m. Seminar V: The Value Proposition in Driver Training Think your drivers already know everything? Think further training is nothing more than a cash drain? Then you need to hear from the experts who will explain how a well thought out driver training strategy can put money in your pocket.
10:30 a.m. Seminar VI: Attacking Driver Fatigue Driver fatigue is the cause of many more accidents and collisions than we know, simply because it is seldom reported as such. One progressive PMTC member will explain the Fatigue Monitoring Program they are conducting with the co-operation of their drivers, the results to date, and why those results may drive them to change their business model.
11:30 a.m. Reception with our Exhibitors One more opportunity to meet with our exhibitors and conference supporters, and collect the contact information you will need to follow-up with them after the conference.
12:30 p.m. Closing Luncheon & Vehicle Graphics Awards The annual PMTC – 3M Canada Vehicle Graphics Design Awards are the feature of this closing luncheon. Join us as we celebrate creativity and imagination in vehicle graphics – it’s always the best show in town!
2:30 p.m. Conference Adjourns
_______ Chairman’s Dinner/Entertainment & Zurich Private Fleet Safety Awards CONFERENCE FEES PMTC Member Full Registration $445 + HST = $502.85 Fee includes all events and meals
Hall of Fame Luncheon Only $150 + HST = $169.50
PAYMENT INSTRUCTIONS ❏ Visa ❏ MasterCard
Non-PMTC Member Full Registration $495 + HST = $559.35 Fee includes all events and meals
Spousal Plan $150 + HST = $157.50
Chairman’s Awards Dinner Only $150 + HST = $169.50
Vehicle Graphics Luncheon Only $150 + HST = $169.50
Card #: __________________________________ Expiry: _________________
Or make cheque payable to: Private Motor Truck Council of Canada 1160 North Service Road East, Suite 115 Oakville, ON L6H 7G3
Note: Those cancelling prior to June 1, 2011, will be entitled to a refund less a $50.00 processing fee. No refunds will be offered after June 1, 2011.
Questions? Call 905-827-0587 or email info@pmtc.ca
ROOM RESERVATIONS Kingbridge Conference Centre & Institute – King City, Ontario Reservations can be made by calling the Kingbridge Centre directly at 1-800-827-7221.
The room rate is $180.00 per night plus tax. Be sure to mention you are with the Private Motor Truck Council Conference. Rooms are allocated on a first-call, first-served basis, so reserve your room as soon as possible. If you have any questions regarding room reservations, please contact Kingbridge directly.
SHEEHAN’S TRUCK CENTRE INC.
June 2011
tax talk
Two items for your financial planning agenda After tax season, I get calls from our self-employed clients wanting to review their past year in terms of both the business operation and their personal income tax. Some people just have to see the final result on the dreaded tax return before all the talk about planning and preparation finally hits home. These financial reviews can cover a wide range of topics – no individual is exactly the same. But two topics come up year after year: CPP contributions One thing I emphasize is just how much money from the tax bill goes to the Canada Pension Plan. For 2011, the contribution rate for CPP is 4.95% of a salaried worker’s gross employment income between $ 3, 50 0 and $48,300. If you’re an employee and make $48,300, the most you’ll pay is $2,217.60, as your employer will match this amount and send it to CRA. When you’re self-employed, you’re responsible for both portions of the contribution. On net business income of $48,300, you’ll owe $4,435.20 as part of your tax bill. For curiosity’s sake, I researched some old numbers. In 1998, the maximum CPP contribution was $1,068.80. Using the Bank of Canada’s inflation calculator, that amount would be $1,400.82 in today’s dollars. As I said above, an indiv idua l’s ma ximum CPP contr ibution i s $ 2 , 217. 6 0 . That’s $ 816.78 above inflation. We’ve all read articles about our aging population and how the government is struggling to ensure that CPP stays viable. Well, you and I are paying more and more to try and make this happen. Because CPP involves significant payments and is a factor in your retirement planning, talk to your accountant or financial advisor about how to make sure your contributions are accurate and paid on time. Service Canada keeps a record for each person who pays into the CPP. You can ask for a statement at 800206-7218 or www.servicecanada.gc.ca.
Scott Taylor
tering the workforce at a later date, or certainly reduce opportunities for career advancement. Of course, there’s the biggest issue of all: change. Who really likes it anyway? Still, let’s look at the financial implications. You need to consider the net income generated by a working spouse – the paycheque minus expenses for daycare, transportation, work wardrobe, etc. – in order to gauge the true impact of another income. Now consider the taxes. Let’s go back to that $48,300 in income I talked about. A full spousal deduction in 2010 was $10,382 and would save taxes of $1,941 using Ontario-based rates. If your spouse got a part-time job making $10,000 a year, the CPP and EI deductions would be approximately $1,600. No tax would be deducted and you’d lose your $1,941 savings. So your family would have $ 6,459 more money, but would that cover the new expenses that would result? M a y b e some of them wouldn’t even be a factor. If your spouse got a full-time job making $30,000 a year, the CPP, EI, and tax deductions would be approximately $5,700, plus you lose the deduction. Now your family has $22,359 more money in its hands. The question is how much of it is really going to stay there? Is it worth all the changes you had to make? These are questions only a family can answer. Maybe your spouse can work with you, earning fair compensation for his or her contribution to the success of the business. Please read that last sentence again – I can’t stress its importance enough. Spouses working together can provide more money to the family through tax savings and also may ease some of those quality of life issues. Talk to your accountant about crunching the numbers. From a financial and tax perspective, hiring your spouse may be the best thing you can do. From a personal standpoint? I’ll leave that up to you. n
This question comes more often from clients with young children and daycare costs, but I also hear it from those with kids who are mostly independent. It’s a complicated issue that goes beyond just taxes. There are “quality of life” issues for the entire family, along with the very personal feelings of your spouse in regards to his or her stay-at-home role. A spouse who stays home may have a more difficult time re-en-
– Scott Taylor is vice-president of TFS Group, a Waterloo, Ont., company that provides accounting, fuel tax reporting, and other business services for truck fleets and owner /operators. For information, visit www.tfsgroup.com or call 800- 461-5970.
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June 2011
industry
Please, not the same old railway half-truths and misinformation on the environment Recently, Claude Mongeau, the relatively new CEO at Canadian National Railway was speaking in the media about his company’s enviable financial results and outlook. Mr. Mongeau is clearly a very capable man. He has also signaled that he intends and will continue to inject a new way of thinking into the business. That is all good; especially for shareholders of CN, including Bill Gates, who we now know is the company’s largest single stockholder. Unfortunately, it seems that rail CEOs like Mongeau, as much as they talk about a more progressive change in approach, just can’t seem to help but resort to some of the same old anti-truck half-truths and misinformation that has been spun by railroaders for decades. According to a recent story arising out of CN’s annual meeting that appeared in the Globe and Mail, Mongeau suggests that shipping by rail is more environmentally friendly than by truck and credits this in part for his firm’s solid financial performance and for a growing competitive advantage over trucking. In reality, it is more likely that any market advantages CN may have reflect its oligopolistic status in the marketplace and the ongoing benefit it continues to derive from having had its massive debts forgiven by the federal government (ie., Canadian taxpayers) at
Industry Issues David Bradley
the time of its privatization, than anything to do with environmental considerations. In terms of which mode is the ‘greenest,’ obviously in comparing rail linehaul and long-haul trucking, rail will be more fuel efficient on a per load basis. It’s no surprise then that rail dominates in the long distance delivery of bulky loads. Trucks, on the other hand, dominate in the shipment of smaller, time-sensitive loads, over shorter distances. The overlap between the two is small. But, this is just part of the energy equation. One must look at the entire supply chain, including the shorter haul and pick-up and delivery function (railways cannot provide door-to-door service) for which trucks are far more efficient. When all factors are considered, most freight currently moving by truck consumes less energy than if it was moved by rail. No doubt that is part of the reason why CN has gotten into trucking in a very big way over the past few years. Its trucking fleet is now one of the largest in the country, so trucking must have some advantages.
Moreover, truckers in this country face far more stringent regulation of fuel and engine emissions than the railways do. For example, the emission of nitrogen oxide (NOx) – a precursor to smog and a major contributor to global warming – has been virtually eliminated from new truck engines since the inception of the 2010 model year engine. That’s the law. (In fact, the progressive tightening of emissions standards has been occurring over at least the last decade). Currently, there are no regulations governing NOx emissions from locomotives. Governments have indicated we should expect regulation of locomotive emissions later this decade; but we’ll see. And even then, the new locomotives will still emit over six times more NOx per horsepower hour than the current generation of heavy trucks. In addition, both the US and Canadian governments are currently developing fuel economy/GHG reduction standards for heavy truck engines – and only heavy truck engines. The trucking industry welcomes these initiatives and in fact wishes to complement them with other measures aimed at reducing its carbon footprint. The truth is, it makes business sense for all modes to improve their environmental performance. Escalating fuel prices are a concern in all modes. They all need to do more to reduce their con-
tribution to air pollution and climate change. No one mode is better than the other in that regard, although I defy anyone to find a sector subject to more stringent emission controls than trucking. When it comes to competitive advantages between one mode and another, the hallmark of the trucking industry’s success – why it is the dominant mode of freight transportation in North America and why all forecasts point to its continued growth – eventually boils down to service. Rail is already cheaper than trucking in the long-haul market, but many shippers still rely on trucks for their superior service. As indicated above, that is not to say that escalating fuel prices are not a concern to truckers; they are. (For that matter, so are rising equipment and labour costs, too). But, there is no shipper coalition forced to seek government intervention to improve truck service. If the railways really want more truck freight (and I am not convinced they really do), then they should concentrate more on enhancing their service standards than trying to paint themselves as being better for the environment. n – David Bradley is president of the Ontario Trucking Association and chief executive officer of the Canadian Trucking Alliance.
Continuous learning is always time and money well spent Many of the signs are pointing to an economy that is in recovery mode, and I’m sure we are all relieved about that. It has been a long, hard road for the past several years and we decidedly deserve some respite. Even though the January 2011 numbers for Class 8 truck sales in Canada were still below the rolling five-year average for that month, the trend is moving in the right direction. That is even more the case in the United States, which is yet another leading indicator that recovery is underway. PMTC members report renewed interest in equipment acquisition, an interest that has basically been dormant for quite a while. It is anyone’s guess as to how much of the demand is the result of new or returning business as opposed to the absolute need to retire equipment that was extended beyond its useful life during the recession, but we can’t deny the benefit of new equipment orders. We have also noticed a slight loosening of the financial restrictions implemented by many companies during the recession. At that time some companies went in to full stop mode when it came to employee education, training or other so-called “non-revenue producing” activities, and while fiscally understandable as a shortterm model for survival, that approach won’t stand the test of time. With that in mind I’d like to revisit a topic I addressed a few months ago: the ongoing need for employee education and training. Many PMTC members have rec-
Private Links Bruce Richards
ognized that one proven path to better performance and continuous improvement is that of providing employees with the skills, training, education, and business exposure they need to perform well in their jobs. That’s why many of those companies maintained a policy of employee development throughout the difficult financial times from which we’re just now escaping; long ago they recognized that their future is dependent on having well trained and knowledgeable employees in key roles. I had that thought in mind a few weeks ago when I was invited to address a group of senior managers from one of our PMTC member companies, and I was quite impressed with that company’s approach to its team’s ongoing development. This company has made it a point to bring together its distribution team on an annual basis for a two-day leadership conference. The group has grown so large, and the daily operational and service needs are so demanding, that they now need to run back-to-back sessions over a two-week period to accommodate everyone. With that type of commitment it is obvious that this company recognizes the value of staying close to its employees and providing them with the tools they need to be successful. So, taking that as
a given I tentatively ventured to inquire about the cost implications of such a commitment. The short answer was that the returns were so great that cost, while not ignored by any means, was not a primary driver in the decision to host the conferences or their other employee-related initiatives. This approach could almost be considered avant-garde when compared to the attitude of companies that eschew training as an expense or luxury. But I don’t think progressive companies do this simply to be seen as being on the leading edge – they invest in their employees because they understand that the investment is a necessary part of the continuum of operating and sustaining a successful business. And that approach has been proven to work. The type of employee training and education available today takes many forms, and a little research will help any manager determine what would work best for his or her group. In the world of trucking, there are myriad opportunities for specific job-related training as well as opportunities for broader exposure to the industry. Some examples of specific training/education would include the Canadian Trucking Human Resources Council’s refresher course for experienced drivers, as well as its superlative Guide to Human Resources that is specifically designed for trucking firms; through its FleetSmart/Smart Driver programs Natural Resources Canada
will help everyone involved with the fleet understand the principles behind fuel conservation; Transcom Fleet Services offers an acclaimed program for dispatchers and front line supervisors that will put them on the road to successful human resource management; and PMTC engages government ministries to meet directly with our members to address specific issues and questions. More broadly, there are opportunities such as those provided through the upcoming PMTC annual conference. Conferences like this one offer information on a variety of topics that address important issues or that will raise awareness among participants about subjects that could factor in to making their operations a little more effective. This particular conference is also the best forum for meeting other private fleet operators and exchanging information, ideas and experiences; making contacts that will help over both the short term and in the future. Again, it is exposure to the industry, its people, and the products, concepts and ideas that others are talking about. I encou rage you to v isit www.pmtc.ca and review the conference agenda – then come out and visit with us. It will be time and money well spent. n – The Private Motor Truck Council is the only national association dedicated to the private trucking community. Direct comments and questions to trucks@pmtc.ca.
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TRUCK NEWS Page 33
over the road
Getting healthy
making it a priority in your life no matter what else is going on. Three to four hours a week is all that you need. That’s only a half-hour per day or one hour three to four times per week. This is not about intense exercise workouts. This is as simple as going for a brisk walk on a regular basis. It’s not about gain from pain. It’s more of a tortoise versus hare approach and it works. Second, I believe you have to educate yourself in regards to what you are putting into your body on a daily basis. This includes quality and quantity. You don’t have to become a foodie or find a new religion in the guise of healthy eating. But you do have to understand clearly how what you eat affects you. You can only do this by counting calories – at least for a period of a few months – and reading food labels. The bottom line is if you need to lose weight you will never do it until you burn off more energy than what you take in. Forget fad diets and supplements that promise results without having to change what you eat and in what quantity. You know the old saying: ‘If it sounds too good to be true it probably is.’ Third, I believe you have to make this lifestyle change a priority in your life that takes precedent over everything else. That includes taking precedence over other things that are
It starts with a commitment Alright, enough about burning out and everything that’s wrong with the world. At the beginning of May, I decided it was time to stop procrastinating and get rid of those extra winter pounds. That’s no easy task for all of us that spend so much time in the wheelhouse. I think the biggest challenge is overcoming your own mental inertia. Finding the motivation can be difficult when you are experiencing mental fatigue at the end of a long day or facing the demands of your delivery schedule if you are just starting your day. With so many pressures on our available time, it’s easy to make excuses not to take the time to look after ourselves. ‘I don’t have time,’ is a common excuse we give ourselves for not caring for our own health and wellbeing. Of course, we know in the long run that everything we do, everything we set our sights on, is dependent on our good health in order to reach our goals and obje c t ive s – p er s on a l a nd professional. I always feel like a bit of a hypocrite when I start writing about this topic. Yes, I have had some
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Over the Road Al Goodhall
great success at losing weight and improving my overall health over the past decade and I have been able to meet my professional obligations at the same time, but there is always a tension between the two. That often becomes an area of added stress in my day. Consequently I often fall off the healthy living bandwagon and that’s where the feelings of hypocrisy come in. I’m a big believer in walking the walk if you’re going to talk the talk. Eating properly, getting the right amount of exercise and maintaining appropriate sleep habits can seem to be an impossible challenge in this line of work and I struggle with it every day. I try to take a three-pronged approach to living healthy on the road: First, I believe you have to commit some time to exercise, getting your heart rate up, at least three or four times per week and
important to you personally. This is a difficult thing to do. I think it’s important to recall at this point that truck drivers suffer a much shorter average lifespan than the general population. Accepted estimates are 10 to 15 years shorter. Along with that shorter lifespan comes the onset of disease and suffering at a much earlier age than what would be considered normal. I have no fear of death or dying but I certainly want to reap the benefits of a life of hard work in my golden years. That, to me, is what a good dose of healthy lifestyle habits is all about. So I thought for my next few columns I would share some of the things that have worked for me and some of the things that have not. I don’t believe there is a cookie cutter method of living a healthy lifestyle out here on the road. But I do believe that exercise, a healthy diet, rest, and a personal commitment to ensure that you receive the right dosage of each will put you on the path to a happier, longer, and more productive life. n – Al Goodhall has been a professional long-haul driver since 1998. He shares his experiences via his 'Over the Road' blog at http://truckingacrosscanada.blogspot.com. You can also follow him on Twitter at Twitter.com/Al_Goodhall.
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June 2011
TRUCK NEWS Page 35
safety
Looming driver shortage threatens the bottom line As challenging as the recent economic downturn has been, it may be masking a bigger threat that’s still to come – in the form of a looming driver shortage. While there seemed to be plenty of drivers when carriers were forced to park equipment because of a lack of business, much of the nation’s excess freight capacity has disappeared. As the economy recovers and more cargo begins to move, fleets may find it harder to attract the workers to address new opportunities. Some of the former employees who lost their jobs may even have left the industry forever. Every loss of a qualified driver can have a direct impact on the bottom line at the best of times. Think of a company that has 10 drivers, loses two of the employees, and also tends to retain only half of its newly hired drivers. The fleet’s recruiter will actually need to hire four candidates to find the two who will remain. If it costs a conservative $7,500 to find and train a new employee, that search will cost $30,000. The potential costs of retention and recruiting do not end there. Well-trained and qualified drivers may be more valuable to a fleet than ever before. Programs like the CSA safety measurement system in the US, for example, are placing a greater emphasis on driver behaviour. Those who want to ship freight south of the border will need to have access to employees who comply with the rules, and will keep the ratings clean. The industry’s aging pool of workers is merely adding to the challenge. As recently as 2004, the average age of men in the trucking industry was 42, which is four years older than men working in other occupations. As the oldest workers among them retire, they will need to be replaced by a new generation of candidates, and these younger workers also tend to emphasize a work-life balance, meaning that fleets might even need to explore different trip planning strategies to keep them on the job. In fact, there are a number of factors that can play a role in retaining employees of every age. If a large number of drivers leave a job shortly after being hired, the losses can usually be traced to recruiting practices. Maybe they were not given an accurate idea of the job that will exist. If the drivers are quitting after six months or a year, however, the challenge is likely linked to factors such as pay and working conditions. There is also no question that wages can play a role in a driver’s decision about where to work, and a steady decline in driver wages does not bode well for the industry as a whole. While today’s average long-haul trucker makes around $65,000 a year, those who turned the wheels about 25 years ago were annually making close to $85,000 once inflation is factored into the equation. The fact that freight rates have actually declined over the past four months will undoubtedly
Ask the Expert Rick Geller
make it more difficult for some carriers to increase compensation. If the trend continues, that will make it difficult to keep candidates from moving to other industries entirely. Still, while many drivers will look for other jobs in the search for more money, there are other factors that cause them to look in the first place. Research by the Canadian Trucking Human Resources Council proves that drivers also emphasize the importance of things like respect and support. Proactive fleets can take the
steps that will keep these drivers on the job. The ongoing support of dispatchers and mentors will show drivers that they work for a company that cares. Retention efforts can even be influenced by the steps that fleet managers take in the aftermath of a crash. According to one survey of safety managers, a commitment to remedial training ranked seventh out of 12 ongoing safetyrelated issues. Yet an investment in this type of training that should be available through your insurance provider has proven that it can correct problem behaviours and protect valuable employees. The training that can help to retain drivers is not limited to shifting gears and turning corners, either. Drivers will feel more comfortable in their roles, and will be better equipped to meet ongo-
ing challenges, when they receive refresher courses about evolving regulations and fleet policies. Investments into programs like these can help fleets to prepare for many of the challenges to come. And make no mistake about it, the challenge of a driver shortage is on its way. n – This month’s expert is Rick Geller. Rick is the director of safety and signature services for Markel Insurance Company of Canada and has more than 25 years experience providing loss control and risk management services to the trucking industry. Markel Safety and Training Services, a division of Markel Insurance Company of Canada, offers specialized courses, seminars and consulting to fleet owners, safety managers, trainers and drivers. Markel is the country’s largest trucking insurer providing more than 50 years of continuous service to the transportation industry.
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Page 36 TRUCK NEWS
June 2011
health
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Understanding headaches I think it is safe to say that most of us have had a headache at some time in our life. However for an unlucky few, these headaches can become debilitating and affect their ability to function on a day-to-day basis. Fortunately, for the majority of us, a headache is temporary problem, which often disappears relatively quickly. There are many different types of headaches, with various causes, but the two most common types are tension and migraine headaches. Tension headaches are by far the most common and are often associated with temporary stress, anxiety, fatigue or anger. The cause of tension headaches is increased muscle tonicity of the neck and head muscles. As a result, the joints in your neck become restricted, causing pain. If this continues, the nerves at the base of the skull can become irritated. This leads to the classic tension headache with pain originating at the base of the skull
Back behind the wheel Dr. Chris Singh
and radiating up the back of the head. Fortunately, this type of headache usually disappears with rest. In order to eliminate or decrease the severity of this type of headache, you must identify the cause of the muscle tension in your head and neck. Stress, spinal joint dysfunction and poor posture can all contribute to increased muscle tonicity. If stress is the problem, try to eliminate it as much as possible. If you have spinal joint restrictions in your neck, get adjusted by your chiropractor. If you have poor posture, see your physiotherapist and/or a chiropractor. If you have tight muscles, see a registered massage therapist. Another common type of headache is a migraine. Migraines can be debilitating and literally put your life on hold for a few hours or several days. This type of headache is responsible for more job absenteeism and disrupted family life than any other type of headache. Although the exact cause of migraines is not known, scientists believe it is due to a vascular change within the brain. Blood vessels dilate and the nerves surrounding the blood vessels release chemicals, which causes inflammation resulting in pain. Migraines are three times more common in women than in men and are most common in young adults in their twenties and thirties. Most migraine sufferers will have two to four headaches per month. In extreme cases, people may experience a couple of headaches per week. A typical headache will last for approximately four hours. Scientists have been trying to determine if there is a genetic predisposition for migraine headaches, but there still is no conclusive evidence suggesting so. There are different types of migraines, but in general they are very similar in symptomotology. A person who is suffering from a migraine will usually report a hypersensitivity to light and sound. The headache begins as a dull ache and progresses to a constant throbbing or pulsating type of pain that is located on one side of your head. Some people experience an aura or warning signs that precipitate a migraine headache. Usually five to 35 minutes before a headache you may experience visual disturbances such as blind spots, flashing lights or jagged lines which will alert you that a migraine is coming on or is about to occur. This will give you time to prepare yourself for it. There are certain physical triggers that can cause a migraine headache. Common triggers include stress, caffeine, chocolate, alcohol, lack of sleep, nitrates, red wines, cheese and citrus fruits. It has been suggested that 30% of all migraines are due to a reaction to a certain type of food. There are many treatments for migraines however, it is important to consult with your physician before beginning any of them. n – Dr. Christopher H. Singh runs Trans Canada Chiropractic at the 230 Truck Stop in Woodstock, Ont. He can be reached at 519-421-2024.
June 2011
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HOW DO YOU SPELL TIRES WITH HIGH VALUE? H-A-N-K-O-O-K In the age of unlimited competition, we can agree that having the right parts is the first step in providing quality services. Therefore, many owner-operators and fleet managers turn to well-recognized brands that provide high quality products with high price tags. In the tire industry, it is no different. Many companies purchase tires manufactured by the top three companies despite high prices without considering purchasing other brands, simply because of the perception that the other brands are manufactured by overseas companies with low technology to make them cheap. Certainly, the perception is justifiable to some brands, but not to Hankook. Here is why: Fact : Hankook Tire is a global company, not an overseas company. Maybe you did not know this, but Hankook Tire is one of the largest tire manufacturers in the world. In fact, Hankook Tire is the 7th largest tire manufacturer in the world with one of the fastest growth rates in the industry*. With great success and satisfied customers all around the world, the company has grown and transformed itself over the years. Hankook Tire now has more than 20 offices globally, multiple state-of-theart manufacturing facilities and several technical centres on every major continent including in the U.S., Germany, Korea, Japan and China. With a global network that stretches from Seoul to Toronto to Moscow, it is true that Hankook is a global company, not an off-shore tire company. Hankook products are premium imports developed to exceed the expectations of consumers. * Modern Tire Dealer, 2008 Fact : Hankook Tires are produced with innovative technology. Grouped with energetic, smart and consumer-oriented engineers, Hankook Tire continuously re-invests approximately 5% of its revenue into Research and Development. At the Akron Technical Center of Ohio, energetic and dedicated engineers develop tires that reflect the weather, road and drivers of North America. The dedication and effort in advancing tires has been noticed from several highly respected organizations. First, Hankook Tire is the original equipment tire supplier to International Trucks and I.C. School Buses on drive and steer positions. The tires meet and exceed the requirements of the highly respected company and continue to satisfy drivers and fleets in North America. Secondly, Hankook Tire has been recognized by the U.S. Environmental Protection Agency and received EPA SmartWay certification on three truck and bus tires for reduced rolling resistance that creates a smaller carbon footprint. The recently launched AL07+ steer tire, top-seller Z35a drive tire and advanced TL01 trailer tire provide reduced rolling resistance of 3% or more to meet SmartWay standards. The certified Hankook tires provide improved fuel economy and reduced costs to drivers and fleet managers.
Fact : Hankook medium truck tires are available at your local dealer.
In addition, Hankook focuses on improving fuel efficiency and lowering the rolling resistance of current and future products with an annual investment of $19 million on R&D to make more environmentally-friendly products that reduce the operating costs of O-Os and fleets. Certainly, you will hear about additional Hankook products being certified for the SmartWay Program. Fact : Hankook Tires provide tremendous value to the consumer.
You now know the Hankook products are made by a global company that
focuses on providing innovative products that are high in quality. And the company’s effort has been recognized and certified. But did you know the tires provide excellent value to consumers? Hankook tires are very cost effective in comparison with comparable quality products and have been well-recognized for their value. Call your local dealer today to find out how much you can save with Hankook products and how they can deliver better value. The news you hear about the price, quality and value of Hankook Tires will be some of the best news you will hear in 2009.
With thousands of dealers across Canada, Hankook truck and bus tires are available at your local dealer to help you earn more value for your purchase. From the ports of Vancouver to the lumber mills in the Maritimes, the dealers are proud to sell Hankook products and they are widely available. In addition, the new large distribution centre in Ontario can service Ontario fleets directly and help you to reduce costs, which will help your fleet in For further information, please contact Hankook Tire Canada Corp., at 1 800 843 7709. So, how do you spell tires with high value? H-A-N-K-O-O-K
Page 38 TRUCK NEWS
June 2011
fleet profile
Every rose has its thorns Why founding Rosedale Transport in a regulated environment was at times a prickly business By James Menzies MISSISSAUGA, Ont. – If you thought Rosedale Transport was named after the affluent Toronto neighbourhood of the same name, think again. In reality, the trucking company was named after an apartment building in the gritty city of Hamilton – an apartment building Rosedale Transport founder Rolly Uloth managed in the 1960s, in part so he and his wife Mary would have a free place to live. “If you looked after an apartment building, you’d get an apartment for free,” Ultoh recalled during the popular How They Did It session of a recent Driving for Profit seminar. “That saved us about $100 a month, but $100 a month 40 years ago was a fair bit of money.” Uloth had recently emigrated from Nova Scotia, where he had been working since the age of 10 when he became janitor of the one-room schoolhouse he attended for a buck a week. New to Ontario, Uloth was working at Stelco Steel and managing Rosedale Apartments, which were owned by Uloth’s future business partner, Barry Smith. In 1969, Uloth’s wife gave birth to their first son. But two weeks later, with the promise of a management position at Stelco on the horizon, a labour strike ground the plant to a halt and left Uloth at a crossroads. Smith had been kicking around the idea of getting into the trucking business for some time, and now Uloth was faced with a decision. “It was a true fork in the road,” he recounted at Driving for Profit. Uloth joined Smith in purchasing a single truck and they were in business the day after Labour Day, 1969. “I never drove a truck till I owned one,” Uloth said, admitting there was some risk involved in giving up the prospect of a management job at Stelco for the uncertainty of a trucking job. “When you’re 22 years old, you can’t spell risk. You don’t see it. All you see is the opportunity to do something. That first year, I saw more payFlyingM_ad_F_PRINT_r.pdf
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days than pays. Our first year, sales were $27,000, so there wasn’t much left for anybody.” Rosedale Transport began with two accounts in a regulated environment in which getting an authority to operate was as difficult, if not more so, than finding customers. Uloth recalled the intimidation tactics employed by the big carriers as new entrants would go through the process of obtaining an operating licence. Those operating authorities were very restrictive. Uloth recalled obtaining one that allowed his company to haul within an 11-mile radius of a specific customer’s location. “You can almost throw a stone that far,” he quipped. However, there were benefits to regulation as well. Uloth said rates were in some instances better then than they are today. “The pricing was there, but it supported an inefficient trucking system as well,” he recalled. With two flooring materials companies as clients, Rosedale was officially in business. But those early years were not easy. Uloth recalled fueling up and having his credit card rejected, even though he’d made a payment. Uloth had to surrender his wristwatch to pay for the fuel. He still begrudges that oil company today. Over time, Uloth noticed an opportunity while on his delivery runs. “Other manufacturers and wholesalers ran their own trucks,” Uloth said. “Every one of them had five trucks and if there were 10 of them, you would have 50 trucks that would follow each other around making deliveries to the same places.” Rosedale began approaching those suppliers and convincing them one by one to get rid of their own trucks and consolidate their loads on 3:58:26 PM
Rosedale’s trucks. “That was the start of our growth,” he recalled. Those first few years in business, as challenging as they were, provided many lessons for the fledgling businessman. “I learned very quickly that you have to pay yourself. It’s fine to work for all these guys and make them happy, but I made the determination that I had to get a paycheque every week, so being fair to me was one of the first things (I learned),” Uloth said. “Then, with the shipping public and receivers, we had to do what we said we were going to do. If we said one-day service, give them one-day service.” Operating with honesty and integrity and paying bills on time were other building blocks for Rosedale. “In the early years, we had times where we couldn’t pay some of our leasing guys as quickly as we should’ve, but we didn’t hide from them,” Uloth said. Rosedale Transport was initially run out of the Uloth household, with Rolly using customers’ phones to call home to see where his next delivery would be. As the family grew (Mary and Rolly gave birth to a daughter and
another son), so too did the company. It moved beyond the family home and soon a warehouse was built in Hamilton. Ron Uloth, the oldest of Rolly’s children, remembers playing in the warehouse and “licking stamps” as early as seven or eight years of age. “We would get to play in the warehouse because there was nothing going on there during the day,” Ron remembered. “We didn’t get many snacks while at home, but the coffee truck came around the warehouse and you’d get a donut or a pop.” Hanging around the warehouse was also one of the surest ways to spend some time with their hardworking father, who usually wouldn’t arrive home till late after putting in a full day of work. Rosedale Transport has always been very much a family company. Ron began working at the warehouse in earnest as a teenager, while both his younger siblings also worked at the company for a time (his sister is still involved today). Today, Rob serves as vice-president and general manager. The elder Uloth said there are definitely advantages to being a family-run company. “They truly have skin in the game,” he said of family businesses like Rosedale. “Some of the companies that are owned by the multi-nationals – they have good people at those companies, but their day is guided by what senior management wants done. I think family-owned companies, for the most part, are closer to what’s really happening rather than waiting for the statistics to come by their desks. They have a gut feel for things. That gut feel, you don’t learn that at school and you’re not always right with it, but if you don’t make (those decisions), you don’t make good ones either.” Ron adds that as a family-run business, decisions can be made quickly. Even on a Sunday night over a roast beef dinner. However, Rolly quickly adds that the company’s management team is involved in almost every decision. “They can have their say,” he said. “They don’t have to be fearful of coming in and telling us what they think.” Rosedale Transport has seen steady growth, including the launch of a major warehousing Continued on page 40
May 2011
TRUCK NEWS Page 65
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June 2011
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how they did it: Transportation Media editorial director Lou Smyrlis (right) interviews Ron (left) and Rolly Uloth of Rosedale Transport during a recent Driving for Profit seminar.
A ‘slow ship’ growth strategy Continued from page 38
division, the purchase of a USbased trucking company in Dalton, Georgia, and the opening of new facilities in Vancouver, Calgary, Edmonton, Winnipeg, Ottawa, Montreal, Quebec City, Granby and London. While flooring materials still comprise about 50% of the company’s business, it has diversified to haul pretty much anything that goes into a van trailer. Over time, the company saw an opportunity to begin storing product for its customers. The warehousing division has since taken on a life of its own, which was never meant to be the case, Rolly said. “It started of as complimentary to the trucking side. People would buy a truckload of product but could only take half of it, so they needed a place to keep half a load. That’s the root of where it started,” he recalled. As word of mouth spread, Rosedale found itself leasing more warehouse space and offering complete transportation solutions more efficiently than customers were able to on their own. In one instance, a large customer closed its own distribution centre and began relying on Rosedale for all its warehousing needs. “The first one we did, the president of the company told me plainly that there’d be two heads in the rope if it failed,” Uloth chuckled. While Rosedale Transport’s story is one of success, it wasn’t immune to the challenges of the past few years. Still, the company continued investing even as the recession reached its darkest days. “During the last two years, we continued adding equipment to the fleet and continued to grow our markets that we serve,” Uloth said. “We just didn’t take our eyes of the ball. We gave our people increases last year, which not too many people did. We continued being a profitable company through these past few years and now all of a sudden tractors are hard to get, trailers are stretched out. We already bought them and we’re buying more as we sit here.” Still, Ron points out most of the new equipment will replace older equipment. The company is not looking to expand aggressively through acquisitions or by adding capacity. Rolly says most of the companies that are available for acquisition do not excite him. “Unfortunately, I feel a lot of
the companies that are out there that might be available are right at the end of the line,” he said. “They’ve struggled. They’re good people who’ve worked hard, but in my opinion the most you could pay for them is the value of the assets because how do you pay for a business in today’s market where shippers are not loyal and may be gone tomorrow?” Instead, the Uloths both agree the company will be best served by growing its business with its best existing customers. “We looked at our existing customer base and that is where we grew a lot of our business,” Rolly said, noting three quarters of the business the company picked up through its expansion into Vancouver came from existing customers. At the same time, he said Rosedale is wary of relying too much on any one customer or industry. And Rolly said he’s not afraid to walk away from customers who won’t contribute to the company’s fiscal health. “We’ll eliminate some customers maybe,” he said. “We’ve been known to do that sometimes. The last one I threw out was $4 million a year in business. We’re not averse to throwing some away. Gross sales are not something that’s paramount in our lives. Margins are paramount, gross sales are not.” When asked what was the biggest mistake trucking companies made through the recession, Uloth indicated relaxing fuel surcharges. “We don’t give much on fuel,” he said. “Shippers have their own fuel surcharge charts and I don’t know what Ouija board they use to get to these numbers, but they all have their own Ouija boards.” In fact, Uloth said Rosedale managed to keep its rates in tact even through the recession. “Our key accounts have not had any rate reductions,” he said. As business picks back up and freight volumes increase, Rolly said Rosedale will not depart from its traditional model of slow, steady growth. “Over the years, we’ve just driven a slow ship through the ocean,” he said. And while some things haven’t changed, others certainly have. Rolly hasn’t had to worry about using his watch as collateral for fuel purchases any time recently. n
June 2011
TRUCK NEWS Page 41
opinion
CFMS is a Canadian institution Publisher’s Comment Rob Wilkins
The 2011 edition of the Canadian Fleet Maintenance Seminar has just wrapped up. From all accounts, it was another successful event. Our sister publication, Motortruck Fleet Executive, has been a sponsor of the CFMS since its inception. I remember the first CFMS I attended. It was 1980 at the old Inn on the Park and it was a great introduction to the industry. I can’t recall exactly the number of registered delegates but it had to be over 600. The first night, I “worked” the hospitality suites with my boss until the wee hours of the morning. The next day, I was front and centre at the first seminar, pen and paper in hand, listening to the latest marvel in braking technology. To be honest, 99% of what was being said went over my head but I took notes regardless. The first time I saw my boss that day was during lunch. I remember giving him the benefit of the doubt, thinking he must have been sitting towards the back during those early morning seminars. Little did I know, the man was great at soaring with the eagles at night but he tended to miss a few bells the next morning. The sunglasses always gave him away. Times have certainly changed. The industry still enjoys a few “pops” but that’s where it usually ends, after a few. The days of pounding back a dozen or more are long gone, at least for most of us. Hospitality suites are now referred to as “information” suites and although the numbers have dwindled a bit, they still represent a great opportunity to meet new people and learn about industry trends and developments. A few years ago we made the decision to sponsor the wrap-up dinner speaker. This year, it was Michael ‘Pinball’ Clemons, former CFL all-star and coach. I only wish I had half his energy and passion for life. I think everyone enjoyed his wit and wisdom. If you have responsibility over a fleet maintenance facility, do yourself a favour and make a note to attend next year’s seminar. The event is being held for your benefit and needs your participation. Technology isn’t going to stop changing anytime soon and the CFMS allows you the opportunity to learn about these changes and network with your peers. I believe it’s an investment that’s well worth the money and your time. n – Rob Wilkins is the publisher of Truck News and can be reached at 416-510-5123.
JUNE 18 – 19, 2011 (JUNE 17 SETUP DAY)
Page 42 TRUCK NEWS
June 2011
health
Take a load off your shoulders It’s no surprise to you – driving a truck can be physically demanding. During a long haul, the cab’s limited space and restrictive seating create stress for your neck, back and shoulders while bouncing over bumps and potholes for hours. Shoulders, in particular, carry a lot of the stress. Although the shoulder’s ball and socket design is great for mobility, unfortunately it is also at a great risk for injury. Because the ball of the upper arm is larger than the shoulder socket that holds it, to stay in a normal position the shoulder must be anchored by muscles, tendons and ligaments, making it prone to repetitive motion disorders, as well as pulled or torn muscles, ligaments and tendons. Certainly, when the socket gets slightly out of alignment, pain and
Preventive Maintenance Karen Bowen
injury can occur. Long-term misalignment can cause cartilage tears, rotator cuff pinching and tears, tendonitis, bursitis, unstable shoulders, joint degeneration and scar tissue build-up, which could seriously affect your ability to work. As a trucker, shoulder misalignment could occur when you pull the fifth wheel pin; hand-crank the landing gear; lower and raise the truck hood; slip and grab the hand bar while getting out of the truck; sleep on your side in a bouncing vehicle (if you’re a team driver); unload your truck; drive
with your elbow resting on the window frame; or leave your hand resting on the vibrating gearshift lever. Although these activities will always be a part of trucking, you can still make some changes to help keep your shoulders in shape. First of all, check your posture while you’re driving – no slouching! Even if you’re tired, keep your back and shoulders aligned. Adjust your seat so your knees are at hip level. Keep your hips and buttocks in the middle of the seat and as far back as possible. Be sure that your backrest supports the top and bottom of your back. Use a lumbar support. If possible, put your armrest at a height that allows your back to relax. Adjust your steering wheel so your hands rest easily. Change your hand position frequently. Additionally, get out and stretch as often as possible.
Fergus:OTR_OTR 5/10/11 10:42 PM Page 1
July 22 - 24, 2011 • Fergus, Ont
Before unloading, warm up your shoulders. Protect your shoulders by keeping them supple and flexible with these simple stretching exercises: Do shoulder rolls by raising your shoulders, and then rotating them back and down, making small circles and gradually working up to larger circles. Do between 10 and 12 circles in one direction and then reverse direction. You can do these before you even get out of the truck. Do a sideways shoulder stretch. Sit straight, then breathe in as you reach your hands over your head (if there’s enough room in your cab). Grab your left wrist with your right hand and breathe out as you bend your body gently to the right. (You’ll feel a slight pull along your left side). Be sure to keep your head aligned with your spine. Don’t twist your neck. Hold the position for 30 seconds and then repeat with the other side. Next, try a shoulder crunch by raising your shoulders as high as you can. After holding them there for 15 seconds, let them drop while breathing out. Repeat this three or four times. Practice an ear-to-shoulder pull. To do this, inhale while keeping your shoulders relaxed. Then, exhale as you lower your right ear to your right shoulder. If you’d like a deeper stretch, use your right hand to increase the pressure on your head. You should feel a gentle stretch along the top of your left shoulder and into your neck. Hold this position for 20 seconds while breathing deeply. Repeat for your other side. If your shoulders are bothering you now, consider the following options before you do permanent damage: Try massage therapy. Deep tissue massage stretches muscles, improves range of motion, relieves pain, helps increases blood flow to the area, and promotes healing. Massage therapy also reduces production of stress hormones. As a bonus, many health plans cover a percentage of the cost of massage therapy. Or, apply heat or cold to relieve the pain, but not if you have circulatory or nerve problems. Choose cold to numb pain and reduce inflammation. This is especially effective if you’ve just done something that has caused the pain. Only apply an ice pack (covered with a cloth) for 20 minutes at a time because longer than that can cause frostbite. Choose heat to increase the blood flow to relax tense muscles. Again, only use heat for 20 minutes at a time so you don’t overheat the tissue. A hot water bottle or heating pad works well. Even better, have a warm bath or shower before stretching. Do not use heat if your muscles are inf lamed. Following this advice could take a weight off your shoulders. n – Karen Bowen is a professional health and nutrition consultant , and she can be reached at karen_ bowen @ yahoo.com .
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June 2011
TRUCK NEWS Page 45
Page 46 TRUCK NEWS
June 2011
insurance
Insurance matters
Taking the risk out of trucking insurance TORONTO, Ont. – Truck insurance is as highly specialized and finely nuanced as the industry it serves. But once the slip gets tucked into the ownership pouch, it usually doesn’t get much attention until renewal time comes around – or something bad happens. The sector is cyclical in nature. Stalwart brands like Markel, Old Republic and Zurich seem to be in it for the long haul, but other players get attracted to the market when times are good, and are as quick to abandon the field when they start to lose money. “The business seems to go in five- or six-year cycles and I’ve seen about four of these,” says Allan Burnet, director of Burrowes Insurance Brokers, a major truck insurance broker with offices in Quebec and Ontario. Apparently, the last contraction came a few years ago with the exit of Kingsway Financial Group, which folded its Canada-wide business when it became untenable. “When a major firm withdraws, it sends everyone scrambling for insurance and the other companies are waiting for them with open arms and, in certain cases, higher rates,” says Burnet. “Kingsway’s collapse has stabilized rates; the downward spiral is over. While the remaining players would like to see substantial increases it has not yet translated itself to our clients’ renewal conditions. In certain cases there are small increases but for the majority of carriers premiums are stable.” The lowest premiums are available to Canada-only carriers and Quebec is the cheapest of all the provinces in which to operate. A truck running within a 100-kilometre radius around Montreal would qualify for the lowest rate, while the same truck doing the same work out of Toronto will probably pay double. When it comes to running State-side, premiums can increase exponentially. Karen Gibbon, a broker with CK Insurance Brokers Ltd., in Ancaster, Ont., scrutinizes the fuel tax reports of applicants to see what state
On-Road Editor harry rudolfs
and provincial borders they cross. “Sometimes I ask them, ‘Do you really want to go there?’ Some states are places where you don’t want to have an accident,” she says. The litigious nature of US society is to blame for the sky-high US rates. Some American jurisdictions seem to have trucks in their crosshairs, and victims of truck incidents have gotten very generous settlements from sympathetic judges and juries. An actuarial map of North America shows a patchwork of liability risk across the continent. Quebec with its true “no fault” system sits at the bottom, while New York, Texas and California are among the top. As well, the size of payments to US claimants has rocketed over the last decade. “An accident that formerly cost $500,000 could now be awarded $3.5 million,” says Burnet. “We see carriers running around with $2 million liability but I don’t think it’s enough.” How do I find the right broker? Insurance in this country has to be bought through a broker or agent. And just like you can’t go to an assembly plant and buy a car, you can’t go directly to the big guys and ask for a policy. With all the intricacies involved in trucking, it’s important to find a broker who is knowledgeable about the business. “Trucking insurance is a good deal more complicated than insuring an automobile or house,” says Burnet. “A specialized truck insurance broker should be able to provide you with access to three or four markets. They can sit down with you and analyze your requirements to find the best policy to serve you. What’s more important, they should be able to talk
know your risks: Where you run will have an impact on your insurance costs. Graphic supplied by Markel Insurance
the same language as you.” How do I find a policy that ‘fits’? Truck insurance basically consists of three aspects: automobile, general liability and cargo. Some larger carriers may also carry an “umbrella” policy which covers anything over and above the prescribed liability limits. Insurance companies are primarily interested in where you are going and what you are hauling. These two factors are usually given the most weight when determining the premium. Other considerations like driver records, CVOR and company accident stats can also be taken into consideration. Having a clean driving record is becoming increasingly important. Drivers with one at-fault accident and up to two moving violations within three years are still insurable – but not very attractive. However, each insurer uses its own rating system and the results and premiums can vary greatly. State Farm Canada insures a variety of vehicles including commercial trucks. Qualification for commercial vehicles is based on the type of truck, any attached equipment, the type of cargo, what the truck is used for, and the distance travelled. The individual driving records of all drivers operating a commercial vehicle are looked at as well as the company’s overall safety rating in determining premiums. “Drivers with good records and
companies with better safety histories can be afforded lower rates,” says Rose Monachino, a State Farm agent in Burlington, Ont. But CK’s Gibbon thinks there are times when blending company driving records can work to the advantage of a trucking firm. “A fleet owner with eight or so trucks might have one bad actor with several convictions and a zero star rating. But when averaged with the other drivers, the fleet rating might come up to three or four stars overall,” she says. What about deductibles? Generally speaking, the higher the deductible, the lower the premium. Some large carriers with very intense safety programs opt for higher deductibles of $25,000 or even $50,000. But most independent owner/operators are not interested in deductibles over $5,000. Even so, deductible “Buy Down” insurance is available for those squeamish about carrying a high deductible. Insurance brokers I talked to are of two minds when it comes to Buy Downs. On the one hand, it’s a good thing to have when a catastrophe strikes, but there is also some feeling that this type of coverage may lead to frivolous claims by policy-holders who want to get “their money’s worth.” Thinking beyond the premium Fleets with more than 10 trucks (as defined by the insurer) are given an assessment based on company per-
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formance and safety practices instead of a questionnaire. These carriers can expect a visit from a loss prevention expert sent by the insurance company. The LP specialist will want to look at all aspects of the company including drivers’ logs, CVORs and maintenance records, as well as carrier operations and policies. Yard security and best practices factor highly in reducing the premium, as does a pro-active safety program. This allows the carrier to benefit from their good business initiatives. “Our focus in the trucking industry is helping carriers help themselves to manage the cost of their insurance,” says Silvy Wright, president of Markel Insurance. “We believe the focus on reducing incidents helps achieve favourable insurance premiums and reduce overall costs. A big part of our philosophy is to look at the total cost of insurance.” One way to reduce insurance costs, she suggests, is that carriers can take basic steps at their terminals to reduce the possibility of cargo theft. “In the last recession we saw a rise in fraud and cargo theft and we’re seeing that more than ever. Cargo theft and fraud are costing the industry and there are usually huge opportunities to improve security,” she explains. Furthermore, according to Wright, it’s important for carriers to look “beyond the premium” to the value-added services insurers can offer. “By being transparent about how we make pricing decisions and sharing knowledge we’ve learned from working in this industry for 60 years, we will help them succeed and build loyalty,” she says. Insuring your health Typically, owner/operators will work under the flag of a carrier and enrol in the company insurance plan. But contingencies may arise where broader coverage would be advantageous to both the contractor and the carrier. That’s where a company like National Truck League Insurance Solutions or NAL Insurance can be of help. “We protect the trucker in a lot of different ways,” says NTL president Rod Stiller. “One of the first things an owner/operator might do is opt out of WSIB. It’s expensive, it only covers on-the-job accidents, and it only pays a percentage of net income. For some owner/ops that’s very small because of all their tax write-offs.” Stiller adds that most of his clients run the States and want coverage there as well. “We understand truck insurance, employee health benefits and workers’ compensation. So we’ve designed policies that are good for the owner/operator and taken them to the insurance companies.” The result, according to Stiller, is effective coverage that protects the carrier and the owner from loss of income on either side of the border. Stiller also works as a liaison between owner/operators and companies to provide drivers with prescription drug and dental benefits. “We continue to design programs for owner/operators and companies that help retain the driver. After all, good owner/operators are getting to be a scarce commodity,” he says. n
TRUCK NEWS Page 47
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Page 48 TRUCK NEWS
June 2011
cfms
Dealing with DPFs and DEF Both relatively new requirements are designed to eliminate emissions, but the similarities end there By James Menzies MARKHAM, Ont. – Their acronyms may sound alike, but the care and attention required of DPFs and DEF are very much different. Diesel particulate filters (DPFs), of course, have been on all new trucks since 2007. Their job is to trap and then burn off particulate matter at high temperatures. Diesel exhaust fluid (DEF) is a new requirement on 2011 model year trucks using selective catalytic reduction (SCR) to eliminate NOx emissions. The new fluid is housed in a separate tank on the frame rail and is injected in small doses into the SCR catalyst, where it sparks a chemical reaction that converts NOx into harmless water and nitrogen. Both DPFs and DEF are pollution-busting tools, but the similarities end there. The recent Canadian Fleet Maintenance Seminar included a working session on the care requirements of both items, detailing how drivers and maintenance managers can ensure they get the most out of their costly aftertreatment systems. Dealing with DEF Unless you’re buying an International, any new truck you purchase from here on out will come with SCR and require DEF to function properly. Contrary to early rumours, DEF isn’t a toxic substance. You don’t need rubber gloves, HazMat suits or gas masks to handle the fluid. It’s a mixture of urea and demineralized water that must be injected in small doses into the exhaust stream to trigger the chemical reaction that breaks
NOx into harmless vapour. soap if you spill it on yourself, it’s While the fluid is not hazardnot going to hurt you. If you spill ous, Mack Trucks Canada’s Steit on paint, don’t scrub it off. Dab ven de Sousa, said there are things it off lightly and rinse with water drivers and maintenance managand soap. It will damage the paint if you leave it on there.” ers must be aware of. They say cleanliness is next to If left to dry on its own, DEF godliness, and the same holds true will turn into a white, powdery for the SCR system. The biggest substance, which is a good indimistake a driver or maintenance cator of a DEF leak and somemanager can make is to put something drivers should watch for thing other than DEF into the when conducting their pre-trip DEF tank. OEMs have gone to inspections. great lengths “Drivers, on t o p r eve nt their pre-trip this, includs hou ld ju s t ing putting a have a look for leaks,” de u n iversa l lycoloured blue Sousa suggestcap on the ined. “Look at let, maki ng the pump, the pump connecthe inlet too Steven de Sousa, Mack Trucks tions, the innarrow into which to fit a jector, the exdiesel pump and in Mack’s case, haust connection from the DPF magnetizing the opening so it will to the SCR catalyst and look for only accept the appropriate fluid leaks around the band clamps. Look for a wet stain around those from dispensing equipment. areas or for the white stuff.” “Make sure you don’t put anything other than DEF into the The only maintenance item on an SCR system is a filter undertank,” de Sousa warned. “No straight water, oil, gas and don’t neath the inlet cap, which needs use unapproved containers. That’s to be replaced every 3,000 hours what’s going to kill us here in the or 100,000 miles. The filter costs industry, if you use an old funnel about $30 so de Sousa recommends erring on the side of cauyou used for coolant or oil, that’s tion and replacing it early until going to cause issues.” there is more experience with the Most DEF is currently sold via plastic tote jug that comes comfilter in real-world operating conplete with its own single-use funditions. nel. There’s also a rock screen in the fill neck, which should be moniAnother thing to keep in mind is that DEF is corrosive, which tored and cleaned as required. is why all truck makers provide DEF dilution should not be an plastic DEF tanks. issue, but if for some reason old If dripped, “it will stain aluDEF that’s past its best before date is added to the tank throwing minum fuel tanks,” de Sousa the dilution off and triggering the warned. “Just wash it off with
‘If you use an old funnel you used for coolant or oil, that’s going to cause issues.’
scr: New trucks are cleaner than ever but operators must know how to care for exhaust aftertreatment components.
trouble light, customers should take their truck in for service and have the dealer measure the concentration. They’re equipped with special tools for just this purpose and in most cases, the problem can be solved by topping the tank up with fresh DEF. In a worst case scenario if something other than DEF is put into the DEF tank, de Sousa said there’s a drain plug underneath the tank. “Drain it on your lawn and you’ll have a nice new patch of grass there next summer,” he said. “If nothing else, it’s a very expensive fertilizer.” After draining the tank, it should be washed with non-sudsing detergent and rinsed until the water is completely clear. Drivers may notice a pump running for about four minutes after they shut down an SCR-equipped truck. Upon shutdown, the system reverses the flow of the fluid, drawing it back into the tank to prevent it from freezing in the lines. DEF freezes at -11 C, but as long as it’s in the DEF tank it won’t cause any damage and it will quickly thaw when the engine is restarted. The other potential mistake – which seems unthinkable but actually became problematic in Europe where SCR has been used for years – is the use of home brew DEF. “In Europe, some guys thought they could make their own stuff,” de Sousa said. “They got a buildup of residue with non-API certified DEF. You get deposits and the catalyst is useless and you’re basically looking at a replacement cost of about $6,200 each.” It should go without saying that API-certified DEF is a must and you can identify it by the black seal of approval on the jug. If you come across DEF that isn’t labeled with the API seal, de Sousa suggests asking some questions of the supplier. Inside the cab, drivers will notice a new gauge indicating DEF fluid levels. On Mack trucks, it’s directly across from the main fuel gauge. “Make sure drivers know that,” de Sousa said. “We’ve had drivers think it was the left hand (fuel) tank and right hand (fuel) tank and they didn’t get too far with it.” If DEF levels reach less than 12% of the tank’s capacity, a dash light will appear along with an audible alert and a warning will appear on the in-dash message centre. Numerous other warnings will occur before DEF levels reach 0.1%, at which time the engine will be derated by 25%, which should get the driver’s attention. When DEF runs out completely, a new set of warnings will appear to let the driver know the engine speed will soon be limited to 5 mph. If the driver, for whatever reason, fills up with fuel but doesn’t add DEF, the truck will be limited to 5 mph, just enough speed to limp to a DEF supply. While some driver awareness is required, de Sousa said there’s nothing to worry about as long as the SCR system is kept clean and the filter is replaced periodically.
June 2011
TRUCK NEWS Page 49
blue means def: A universally blue-coloured inlet cap should reduce the risk of misfueling.
“It’s nothing to be afraid of,” he said. “Keep it clean and stay on top of the maintenance of the filter and this thing is going to save you fuel like you wouldn’t believe.” Dealing with DPFs Truckers already have several years’ experience with DPFs, so by now they should be comfortable with the filters, which are responsible for the elimination of particulate matter or soot. However, even after three years in the field, Norm West of DPF Cleaning Specialists warn many DPFs are being grossly neglected. Engine OEMs have promised cleaning intervals as long as 320,000 kilometres, however West says they should be cleaned once a year in over-the-road applications and every nine months in vocational applications that involve lots of low speeds and stops and starts. “We recommend (cleaning) from what we see from the end user’s point of view once a year, that’s minimum,” he warned. “If running vocational, maybe every nine months because they are being abused.” As a third-party cleaner of particulate filters, West has seen all types of damage. Much of it was avoidable. For starters, he advises customers to get on top of DPF issues early. He says customers should keep an eye on the condition of connections to ensure they’re in good shape. Using a Krown T-40 on connections will help eliminate corrosion and other damage, he noted. West also said owner/ops or maintenance managers should take resistance readings across the temperature sensors and look for consistency. If the readings vary, “there’s something wrong with the temperature sensors.” Drivers may be able to detect potential DPF problems from behind the wheel. “The first indication they’ll give you is ‘I’ve gotta drop a gear’,” West said. “That’s the first complaint you will get from a driver. If they have to drop a gear going up a long hill, they’re going to complain. By the time he does that, the DPF and the oxidation catalyst are already failing.” Other symptoms of DPF problems may include poor fuel mileage and black smoke being emitted from the smokestack. If there’s an underlying cause of DPF damage, it should be fixed before the filter is cleaned and replaced. “It’s not advantageous just to take the filter out, fix it and put it back in and have the same thing happen again,” West pointed out. n
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Page 50 TRUCK NEWS
June 2011
cfms
Getting a charge out of hybrids, electric vehicles By James Menzies MARKHAM, Ont. – With each passing year, it’s becoming more economically viable to introduce low-emission hybrids or no-emission electric vehicles into an urban truck fleet. A Canadian Fleet Maintenance Seminar session on ‘Green Alternatives for your Fleet,’ examined recent developments in diesel-electric hybrids and all-electric delivery vehicles. Josh Lepage, senior sales specialist, big bore engines with Navistar, said the advancements in mild parallel hybrid technology – the technology developed by Eaton and offered by all mediumduty truck OEMs – are significant. For instance, when the technology was first being developed, lead acid batteries were the only battery technology available and the system would require three to four tonnes of batteries, making it impractical to operate in real-world duty cycles. Today, thanks to the advent of new technology, just
two lithium-ion batteries can generate the same power without all the weight, Lepage pointed out. Today’s medium-duty diesel-electric hybrid requires just 175 lbs of batteries and the entire hybrid system adds just 450 lbs to the vehicle, Lepage pointed out. Because the electric motor assists with propulsion, operators can spec’ a smaller diesel engine to recover some of that weight. Still, hybrids are slow to catch on because their purchase price has yet to come in line with that of diesel-only trucks – especially in Canada. “There’s not a whole lot of funding up here for hybrid technology yet,” Lepage lamented. “But the government here in Canada is starting to push for fuel-efficient, green technologies.” Hybrid trucks are performing well in the field and proving their worth, especially in applications where auxiliary equipment can be operated in electric mode, eliminating the need to idle while working at a job site. All
four medium-duty truck OEMs offering hybrid vehicles have already sold more than 1,000 units, Lepage noted. Operators and maintenance personnel need to be cognizant that the orange-coloured high-voltage wires should not be cut – or touched in the event of an accident. In fact, Lepage suggested fleets using hybrid vehicles bring local first responders like police, ambulance and fire crews in for some training to ensure they know to stay clear of the high-voltage wires in the event of an accident. “These orange cables are off limits,” Lepage warned. “If you cut one of those and there’s amperage going through there, that’s the last thing you’ll see on this earth.” When performing maintenance, truck techs can either: shut down the vehicle, which maintains power in the system but relegates it to the PEC; disconnect the low-voltage 12-volt batteries; or flip the service switch to shut
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down power altogether. Note that it takes five minutes for all the power to vacate the system when you flip the power off. Before getting to work, Lepage suggested flipping the switch, driving the truck into the shop and chocking its wheels before working on it. “By the time you get all that done, you’ve exhausted your five minutes of time and the vehicle is safe to get underneath and perform regular maintenance on,” he said. Drivers and owners should also know that hybrids must be towed a certain way. Lepage recommends disconnecting the driveline or removing the driveshaft before towing and then towing the vehicle from the rear. Otherwise, the electric motor will generate power while being towed that it won’t have an outlet for and the power buildup could cause problems. All-electric delivery vehicles were also discussed at CFMS, specifically Navistar’s eStar Class 3 with a GVW of 12,100 lbs. The eStar generates no emissions whatsoever and several are in use today by Canada Post. The vehicles provide 4,500 lbs of payload and have a 100-mile range between charges. They take six to eight hours to recharge using a J-1772 Level II charger – the same system used by the Volt and Leaf electric passenger cars. “We’re very excited about the market here in Canada,” said Mark McGrew, east region sales director with Navistar’s eStar electric truck group. “We feel there’s a large amount of applications that can use this vehicle here.” The eStar is powered by a lithiumion battery pack that sits between the frame rails and has a life expectancy of 10 years. (The batteries, McGrew noted, account for about 60% of the cost of the vehicle). The eStar’s 70 kW motor provides 102 hp and 212 lb.-ft. of torque and is governed at 50 mph. “You can go on the freeway, but I would suggest you hang out in the right-hand lane because you’re going to have a lot of people passing you,” McGrew advised. The eStar has been tested at ambient temperatures ranging from -20 C to 32 C. Canada Post operates one vehicle in Toronto and three in Vancouver, and as further testing is done at colder temperatures, the trucks will likely find a home in Ottawa and Montreal as well, said Canada Post’s director of fleet management Steve Clark. The eStar is a basic truck with a standard heater, roll-up rear door and curbside door as well as some creature comforts such as power windows and doors. Air-conditioning will be offered beginning this summer. Other options include a CD player, rearview camera and spare tire. Canada Post’s Clark said prospective customers should work with their supplier to determine the total cost of ownership over the life of the vehicle to ensure it’s viable for their application. He also said users should ensure they purchase a proven charging station that’s approved by the truck manufacturer. As clean as hybrids and electric vehicles are, the elephant in the room is what will become of all the batteries required by these systems once they’ve reached the end of their initial lifespan? “We’re looking at secondary markets,” Lepage said, hinting Navistar is in talks with power utilities that may be interested in using the batteries as power storage cells in their second life. n
June 2011
TRUCK NEWS Page 51
Getting SmartWay Before long, a SmartWay spec’ may be the only spec’ By James Menzies MARKHAM, Ont. – Canadian regulators are planning to mirror the impending fuel economy regulations for heavy-duty trucks in the US, presenting it as a greenhouse gas emissions-reducing program here at home. That nugget came from Steven Laskowski, senior v.p. of the Canadian Trucking Alliance, who was speaking at the Canadian Fleet Maintenance Seminar. The US fuel economy regulation is expected to be finalized this summer, at which time Environment Canada will post a duplicate regulation in the Canada Gazette, Laskowski revealed. While Canada’s version will focus on emissions rather than fuel consumption, both sets of regulations will call for the use of SmartWayapproved technologies to meet the new standards. “The SmartWay program is your regulation,” Laskowski said. However, unlike previous engine emissions regulations in 2002, 2007 and 2010, this time the burden of compliance will fall partially on the end user. “This whole regulation is based on consumer behaviour,” Laskowski said. “Unlike in 2002, 2007 and 2010 where you didn’t have a choice, with regards to greenhouse gas regulations, you will have choices on what you buy. It will be up to you to choose and up to the manufacturers to manage.” Also, unlike most previous emissions mandates, there will be an obvious payback in complying with the new fuel economy regs. While Laskowski said the US EPA has estimated tractor costs may go up as much as 6% as a result of the new requirements when all is said and done, fuel economy is projected to improve as much as 20% by 2018. The regulations will be phased in between 2014 and 2018 model year tractors. Trailers are so far exempted from the regs, despite the obvious fuel saving opportunities they present. “In 2014-2015, we won’t see a
heckuva lot different the way the rule is written, because at the end of the day it’s up to you what you decide to buy,” Laskowski said. “By 2017 and 2018, if consumer behaviour hasn’t changed, what are the manufacturers going to do? They may need to limit sales of certain models of tractors. It’s an interesting dilemma if that’s what happens.” Josh Lepage, senior sales specialist, big bore engines with Navistar, said that’s precisely what OEMs may be forced to do under the impending rules. “You may not be able to get Model A anymore, you’re going to have to buy Model B which is a SmartWay model,” Lepage warned. The 2014 standard should be achievable using existing SmartWay technologies, chiefly low rolling resistance tires and aerodynamic fairings coupled with SmartWay-approved aerodynamic tractor models. Other options that may be on the table include: speed control, idle control and driver training. Laskowski says challenges will be encountered in Canada, where weight limits are still placed on wide-base tires in some jurisdictions, full-sized boat tails are not allowed and many types of low rolling resistance tires aren’t winter-rated. So, what exactly does a SmartWay truck look like? Lepage said an onhighway SmartWay tractor would typically have: a high roof fairing, side fairing, gap reducers, fuel tank fairings, an aerodynamic bumper and mirrors, a no-idle solution and low rolling resistance tires on aluminum wheels. A SmartWay trailer has side skirts, a front gap reducer, low rolling resistance tires and eventually, maybe a rear fairing or boat tail (increasingly popular in the US but not yet approved for use here in Canada). Failing to include trailers in the impending regulation seems like a major oversight, since fuel savings of 5-6% have been proven in linehaul applications using trailer side skirts alone. However, Laskowski
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noted the trailer industry is highly fragmented – comprised of many small manufacturers – and it would be difficult to regulate them. Brent Larson, president of Wabash Canada, said fleets and owner/ operators can still achieve significant fuel savings on the trailer even if it isn’t government-driven. When spending a majority of time travelling at highway speeds, Larson said side skirts can provide fuel savings of 5-6%. Coupled with low rolling resistance tires that can provide another 1-1.5% fuel savings, a trailer can be made SmartWay-compliant relatively easily. “If you’re travelling at highway speeds for certain distances, generally we’re seeing a payback in about 12 months (on side skirts),” Larson said. Navistar’s Lepage, however, pointed out skirts can obstruct access to certain components and may increase servicing time. This is particularly important for reefer operators who may find the reefer fuel tank obstructed by some skirt designs. Larson said when choosing a side skirt supplier, “make sure the product you’re buying is intuitive to use.” For instance, he pointed out some side skirt designs don’t work well on declining dock ramps. “Some side skirts are less favourable as you get into docks that are declining,” he warned. “The side skirts can rub on concrete and cause damage and wear to the side skirt, so you want to be aware of those issues. We’ve had situations where customers were less than happy with the way the product performed when they went down into those dock configurations.” He also suggested asking side skirt suppliers for data that indicates how well their products flex
when contacting snow and ice and other objects. Besides the obvious benefits of consuming less fuel, there’s another reason fleets should be interested in improving fuel economy and reducing emissions, Laskowski noted. While not much has been made lately of carbon credit cap-and-trade systems, he said the issue has not gone away and will eventually present an opportunity for truck fleets to benefit. Laskowski said while the trucking industry itself will be impossible to regulate under a carbon cap-and-trade model, carriers should be allowed to collect credits and sell them to industries that exceed their carbon output limits. Under SmartWay, Laskowski contended, it’s relatively easily to identify fleets that have taken steps to improve their fuel efficiency and GHG output, which should entitle them to carbon credits they can then sell on the open market to big polluters such as coal plants. “If you’re going to have to buy these trucks and reduce your greenhouse gas emissions whether you like it or not, why not capture credits for it and bank them? And as the years go by, you may find they are worth something on the open marketplace,” he pointed out. Lepage agreed, noting the movement is already underway in the US. “In the States, a lot of industries’ and companies’ carbon footprints are going to be looked at they’re going to be given a score that will determine if they have to purchase carbon credits or if they have a surplus of carbon credits, and then those credits will be offered on the open market,” he said. Getting green for going green? Now that’s something fleets could buy into. n
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Page 52 TRUCK NEWS
June 2011
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With the cost of fuel and tires skyrocketing, maybe it’s time proper tire maintenance gets the attention it deserves.
By James Menzies MARKHAM, Ont. – The good news is, there’s an easy way to improve your fleet fuel mileage. The bad news is, very few are doing it. Proper attention to tires, and specifically tire inflation pressures and vehicle alignment, can enhance a fleet or owner/opera-
tor’s bottom line by improving fuel economy and extending tire life. It’s no small matter, since tires now account for the third largest expense in running a truck after drive wages and fuel. And tire prices aren’t going anywhere but up as the cost of raw materials continues to surge.
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A recent Canadian Fleet Maintenance Seminar panel ‘Tire Maintenance: Keeping the Rubber on the Road,’ highlighted some of the simplest, yet most overlooked ways to get the most of a set of truck tires. It begins with meticulously maintaining proper tire inflation pressures, which makes perfect sense when you consider the air in a properly inflated tire carries 95% of the load with the casing shouldering just 5% of the weight. “As the pressure goes down, the load is transferred to the casing,” noted John Overing, commercial business unit director with Yokohama Tire Canada. Not only does that negatively impact the retreadability of the casing, it also hinders fuel economy and performance. Francois Beauchamp, field engineer with Michelin, said there are six critical factors that can kill your tires – and not surprisingly, most have to do with inflation pressures. He listed the six critical factors as: low air pressure; high air pressure; missing valve caps; irregular wear; dual mismatch air pressure; and dual mismatch tire height. Of those, low air pressure is the most common concern, Beauchamp noted. Yokohama’s Overing added underinflated tires can cause: shoulder tread wear; reduced braking performance; reduced casing life; poor fuel consumption; and in the worst case scenario, a blow-out. “The reason inflation is important is that as the tire travels down the road, each section rolls through the contact patch and compresses,” he explained. “What you’re trying to do is match the deflection of the tire to the load, so it is not above or below the designed vertical deflection of the tire.” An over- or underinflated tire will shift the flex point to the shoulder and closer to the bead, which are typically thicker parts
of the tire than the intended flex point, causing heat to build up and increasing the risk of a tire failure. “A properly inflated tire will flex through the thinnest part of the sidewall, generating the least amount of heat and the least amount of fatigue,” Overing explained. An overinflated tire is nearly as dangerous. Beauchamp said overinflated tires run harder and are more vulnerable to impacts, increasing the risk of a blow-out. Overing pointed out an overinflated tire reduces the contact patch and increases the torqueper-square-inch of that contact patch, causing the tire to want to spin. “You want to maximize the contact patch and reduce the torqueper-square-inch so you don’t spin and that’ll give you better traction,” he said. Panelists agreed maintaining proper tire inflation pressures is the easiest way for a fleet or owner/operator to improve their fuel efficiency and extend tire life. Ti re pressu res shou ld be checked regularly using a tire gauge and Beachamp said missing valve tem caps should be replaced immediately since valve stems are “your main source of low air pressure.” “It is your seal for dirt and salt and everything that can get in there and affect the valve core,” Beauchamp said. He endorsed the use of alligator-style valve stem caps that provide double seal protection and allow operators to add air without removing the cap. When inf lating drive tires, Overing warned against adding the maximum pressure indicated on the tire sidewall, unless you’re doing off-road heavy hauling. “The maximum pressure is designed for the maximum load and the laws in Canada in terms of load-per-axle will never require you to put the maximum pressure in your drive tires,” he said. Beauchamp estimated 95% of irregular wear can also be attributed to improper tire inflation pressures. That’s a big deal when you consider the costs that come with irregular wear. Understanding how costly irregular wear - and in turn improper tire inflation pressures - can be is not easy if you’re mathematically challenged. Tire professionals, however, can rattle off measurements as though they’re ordering their morning coffee. Take this real-world example from Yokohama’s Overing: A tire removed after 400,000 kms shows signs of irregular wear with a shoulder tread depth of 10/32nds and a centre tread depth of 4/32nds, indicating a loss of 6/32nds of tread. That $400 tire provided 15,385 kms per 32nd. However, if the tread on that same tire wore evenly down to 4/32nds, the tire would have run 525,000 kms before it needed to be pulled, providing its owner with roughly 20,000 kms per 32nd or an extra 125,000 kms. You don’t have to be a mathematician to understand the potential savings. Improper tire inflation pressures aren’t the only cause of ir-
June 2011
regular wear. A truck or trailer that’s out of alignment can also be a culprit, pointed out Leighton Watkins, regional fleet sales manager with Bridgestone Bandag Tire Solutions. He referred to a major Hunter Engineering Company study that performed random inspections on trucks parked at truck stops and found 70-80% were out of alignment. “That’s a big problem,” Watkins understated. “Fuel is a huge cost and between air pressure and alignment, those are the two biggest causes of loss of fuel that can be easily addressed in a fleet.” Just as tire experts can rhyme off air pressures and tread depths in their sleep, they’re also good at detecting alignment issues by simply running their hands over the tires and feeling for the telltale defects. “When our sales guys come to see you, you’ll see them feeling the tires with their hands,” Watkins said. “We don’t have rubber fetishes. We’re just trying to figure out what’s going on with the truck.” Slight vehicle misalignments can have major implications on tire wear. For example, a 1/8” toe error creates 7.5 feet of tire scrub for every kilometre the truck travels, Watkins said. If you drive 150,000 kms in a year, a truck with a seemingly subtle 1/8” toe error will have caused the tire to drag sideways for 343 kms. “If you drag that tire sideways for 340 kms, what’s it going to look like? And that’s just 1/8”,”
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Watkins said. A vehicle that’s out of alignment can cause the following issues: toein or toe-out (toe-in is characterized by tires that are closer together at the front while toe-out will
monly found to be out of alignment, followed by trailer axles and finally steer axles, “because we actually pay attention to them,” Watkins noted. So how often should a truck and
‘We don’t have rubber fetishes. We’re just trying to figure out what’s going on with the truck.’ Leighton Watkins
involve tires being closer together at the rear); camber (positive camber will be evidenced by the top of the tires leaning outwards while negative camber will cause the top of the tires to lean in); and caster (a forward or rearward tilt of the steering axis, which can cause shimmying). The drive axles are most com-
trailer be aligned? As a general guide, Watkins suggested having a vehicle aligned: any time there has been suspension work done; when steer tires have been replaced; whenever the truck is in for a safety inspection; and when the driver is complaining of poor handling. “The majority of OEMs also
recommend alignments be rechecked after a new vehicle travels 1,000 kms and the TMC recommends after the first 90 days of service,” he added. Each of the tire pros on the CFMS panel suggested maintenance managers and truck owners learn how to identify issues by the feel of the tire. “The best thing to do is feel the tire,” said Overing. “Your hand is your best friend after your pressure gauge in terms of tire maintenance. Any bump in the sidewall could be an impact break. Smaller bumps could be an inner liner splice. If you feel a significant bulge, take that tire out of service; the casing cords may have broken and it compromises the integrity of the casing.” “The tire is the messenger that is going to tell you what is wrong with your truck,” Watkins added. “If you don’t know how to feel tires, get your reps to tell you.” n
Page 54 TRUCK NEWS
June 2011
cfms
CFMS speakers contemplate benefits of disc brakes as stopping distance regs loom By James Menzies MARKHAM, Ont. – New stopping distance requirements being introduced in the US in August may be the catalyst for the widespread shift towards air disc brakes, according to speakers at this year’s Canadian Fleet Maintenance Seminar. However, Scott Deslippe, national sales manager with Express Brake International, pointed out they will cost a premium. Deslippe did some cost comparisons prior to his presentation at CFMS and concluded the initial cost of equipping a tractor with air disc brakes could be as much as $3,000. Then there is technician training required and fleets that operate in remote areas may not yet be convinced that mechanics in those areas are well equipped to work with disc brakes, he pointed out. A drum and shoe replacement can be done for as little as $125-$175 with a complete system rebuild costing about $340 to $400, Desplippe noted. Replacement costs on air disc brakes on the other hand can run as high as: $200-$325 for pads; $550$600 for rotors; $750-$850 for calipers with a complete rebuild costing up to $1,700. “So there’s obviously more cost involved with disc brakes but you’re getting better performance and longevity from them as well,” Deslippe added, not wanting to slam the brakes on the adoption of discs. Paul Reitz, general sales manag-
er of Peterbilt Ontario Truck Centres, was also at CFMS, singing the praise of today’s air disc brakes, which Peterbilt recently announced is now standard on the front axle of all its Class 8 models. Reitz said Peterbilt’s decision to be the first to transition to disc brakes as standard equipment was made to comply with the new stopping standard coming this summer. “Peterbilt decided a while ago when producing the Model 587 that it didn’t want to just meet that goal but surpass it,” Reitz said of the new stopping requirements. In addition to surpassing legislative requirements, Reitz said Peterbilt is confident there’s good value in disc brakes for end users. “We think there’s value in it,” he said. “There’s a lower cost of maintenance, they’re safer, easier to maintain and lighter in weight.” Reitz pointed out they’re resistant to brake fade which is important for Canadian operators who routinely traverse the Rocky Mountains. He also noted new aerodynamic tractors require greater stopping force as they have less wind resistance slowing them down while braking than classic-styled trucks did in the past. Other benefits Reitz discussed included: Simplification (the same caliper, rotor and pads can be used on all wheel-ends of a tractor-trailer equipped with disc brakes); maintenance (no lube is required
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ambitious target: This graphic, supplied by Bendix, highlights the greater stopping power available with disc brakes.
and the caliper is sealed for life); service times (it takes 25% longer to replace shoes than pads); reduced air demand (disc brakes require 33% less air to function, he noted); and reduced warranty claims (disc brakes have a warranty claim rate of less than 200 parts per million – far less than drum brakes, he noted). Reitz said a 6x4 tractor can weigh 260 lbs less when fitted with disc brakes and service intervals are 20100% greater than drums. He also said some customers are
doubling brake life when switching to discs and braking accuracy is improved. The left-to-right braking variance can be as much as 30% on S-cam brakes and about 10% on discs, he pointed out, giving the vehicle a passenger car feel under braking and providing better straight line stopping. “We think this is the solution that best suits where we needed to go,” Reitz said of Peterbilt’s decision to offer disc brakes as standard equipment. n
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TRUCK NEWS Page 55
safety
TAMPA, Fla. – Joan Spencer admits it can be difficult to convince some managers that safety should be seen as an investment rather than an expense. “They don’t understand the cost that comes with an injury or illness,” says the compliance assistance specialist with the Occupational Safety and Health Administration (OSHA), which carries the hammer of health and safety regulations in the US. But every dollar invested into health and safety tends to generate a $4 return for the business, she told maintenance managers during a meeting of the Technology and Maintenance Council (TMC). One business roundtable even suggested that the returns can be as high as $10. Consider the costs that can emerge in the wake of a workplace injury. Related news reports can tarnish the company’s reputation, damaged property needs to be repaired, and shops need to deal with the loss of a trained worker. Every time someone needs to be retrained to fill the role of an injured co-worker, the business is actually paying
steps to protect your employees from hazards in the service bay Maintenance Report john g. smith
two people to do the same job. But many of these injuries could be avoided with a careful look around the service bay. Here are 10 tips that could make a difference: Choose the best plan for each hazard: Many hazards could be addressed a number of different ways. The first question should be whether or not the hazard can be eliminated altogether. If that isn’t possible, it is time to turn to an engineered control such as a guardrail that will offer protection without any added thought by the worker. The next option is to change the work practices around a specific task. Personal Protective Equipment (PPE) is actually the last resort because there is always a chance that it will not be used. Develop a complete inventory
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of all hazardous chemicals in the shop: In each case, these fluids will require properly labelled containers, Material Safety Data Sheets (MSDS), and the related training. It is also an ongoing process. “Who is reviewing the Material Safety Data Sheets to make sure you’re not bringing a more hazardous substance into your workplace?” Spencer asks. Parts washing machines can present their own fluid-related mysteries since solvents can come in the form of mineral spirits or something that is more caustic. But the contents could be identified by simply placing the MSDS data in a plastic sleeve and attaching it to the machine, said Ronald Vaughn, a senior loss consultant with Gallagher Bassett Services. When reviewing the safety practices in a shop, Vaughn also asks mechanics to get the MSDS sheet for a specific chemical, and then asks them to identify the first aid practices or Personal Protective Equipment that are required. “Make sure they know how to read it,” he says.
Guard against injuries: “If it shakes, rattles or rolls, you’re going to guard it,” Spencer says. Something like an unguarded grinding wheel can also be low-hanging fruit for a compliance officer during a workplace inspection. The restraining devices used to hold single or multi-piece wheel rims in place offer a perfect example of why the protection is so important. “Do we have fatalities? You bet. And they’re gruesome fatalities,” Spencer says. “If they’re not using (the devices), it could be your employee that gets hit…don’t let them get away with the idea that they can step back from that tire.” Limit the Coke bottles to Coke: “Never put a chemical in a container that once held a consumable,” Spencer says. Fluids should be stored in the bottles they came in, complete with the appropriate labels. A mechanic may know exactly what was poured in a generic container, but they may not be around when a thirsty co-worker decides to take a drink. Keep up with the housekeeping: Spilled fluids or tripping hazards such as cords can all play a role in workplace injuries. “The main thing we cite in mechanic shops are housekeeping. Simple as that,” Spencer admits. “If you don’t keep up with it every day, it can get out of hand very quickly.” Vaughn, for example, regularly finds shop exits blocked by everyContinued on page 56
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Page 56 TRUCK NEWS
June 2011
safety
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thing from parts to fans. Employees may argue that the door will still open, but the path needs to be clear. “When stuff happens and people start bumping into each other, they need to know where to go,” he says. The simple addition of some painted lines on the floor can identify which areas should always be free of obstructions. While oily rags should be stored in a metal container, Vaughn has also seen them tossed into everything from plastic buckets to canvas bags. And a pile of items in the basin of a parts cleaner may also keep the lid from closing in the event of a fire. Set lockout and tagout procedures for every piece of powered equipment: In each case, the locks should only be removed by people who put them in place. The only exceptions are emergencies. Avoid temporary electrical repairs: Someone could stick their finger through a strip of duct tape that covers the blank space in an electrical panel, and a missing faceplate can present a challenge of its own. “Any time you have a wet area, we need to have Ground Fault Circuit Interrupters,” Vaughn adds.
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Limit extension cords to temporary uses : Extension cords are no substitute for permanent wiring. Vaughn wants to see outlets close to every piece of machinery. For that matter, every extension cord that is used should also be designed for a shop environment. Those designed for home use, or even lacking a ground prong, have no place in a service bay. Power strips that are meant to protect data equipment are not designed for a heavy-duty environment, either, he adds, noting how the amperage draw of five tools plugged into a single receptacle can lead to a fire hazard. Even if a surge strip is built into a tool box, users will need to be aware of the related ratings. Its outlets may be fine for something like a laptop or radio, but could fall far short of the need for different power tools. Keep the household appliances at home: Many ungrounded household appliances such as box fans can be housed in metal, creating a potential shock hazard. Maintain the safety: Every professional tool has been designed to meet a variety of safety standards. But as soon as a tool is modified or bent, the engineered safety disappears. The same can be said for those that are missing guards, or machines that don’t have any bolts running through their anchor holes. n
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Additional sensors and databases could lead to the next generation of maintenance programs By John G. Smith TAMPA, Fla. – Maintenance programs often seem to involve compromises. A focus on corrective maintenance may fix out-of-service components, but it also leads to the added costs of roadside repairs, excessive downtime and fines. And Preventive Maintenance (PM) programs can involve replacing parts that have yet to reach the end of their useful service life. An approach known as “condition-based maintenance” may offer the perfect balance – measuring the health of equipment at a specific point in time, and scheduling maintenance only when it is
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absolutely necessary. “Wouldn’t it be great if a truck could send you (data to announce) there was fuel in the oil, or the alternator was putting out 12 volts?” Glen McDonald, director of maintenance for Ozark Motor Lines in Memphis, Tenn., mused during this year’s Technology and Maintenance Council meetings. “Wouldn’t it be nice to get a notification when the starter circuit is failing, before it’s dead in the parking lot?” Real-time data from a sensor could even be used to schedule different maintenance resources, directing the truck to a shop that is equipped with the right tools, parts and experts to conduct a specific task. “Frankly, this sounds too good to be true,” admitted Guy Rini of GTR Development. But everything from additional vehicle sensors to communications technology and databases may be on the verge of transforming the way the trucking industry could approach maintenance. McDonald’s wife even owns an SUV that will already generate an e-mail if the oil begins to degrade. Couldn’t trucks offer the same feedback? “It’s maintenance evolution,” Rini said. “Condition-based maintenance is the next major advancement in maintenance, and we have the technology to do that. These vehicles are very sophisticated.” That may be an understatement. A 2010 Cummins engine includes no fewer than 28 sensors and 15 actuators, watching over everything from pressure to temperature and positions, and the number of sensors is bound to rise. Yet most of the data is largely ignored by a fleet until it generates a fault code. “Maybe you don’t have to wait until it breaks. Maybe it’s possible to use condition-based maintenance technology to reduce maintenance costs,” Rini said, noting how it is possible to combine an engine ECU’s data with the readings on everything from anti-lock brakes to transmissions, instrument clusters and other computers that have emerged on a truck. “You’ve already bought everything. It’s there,” he told a crowd of maintenance supervisors. While it would never replace corrective or Preventive Maintenance efforts altogether (there is no substitute for visual inspections when looking for a leak, crack or frayed wire), condition-based maintenance could add a new dimension to every decision in the shop. The concept has certainly interested NASA and various branches of the US military, who are looking to the approach as a way to ensure that “mission critical” components do not fail. The Society of Automotive Engineers has also established a subcommittee that is looking at tools such as statistics, histograms, probability and distribution functions, and trend analysis, measuring the time to failures and the time between them.
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June 2011
TRUCK NEWS Page 59
“Condition-based maintenance is basically a superset of what we already have. It pulls it all together,” says Ken DeGrant of DG Technologies. The challenge is that most of today’s technologies focus on components rather than the overall vehicle. “It’s a shotgun approach…we don’t have the data to pinpoint that bulls-eye.” Transforming the streams of data into information that predicts maintenance needs is no small task. A condition-based maintenance model would likely involve added sensors and real-time data, crunching all of that information with the computer algorithms that can translate the details into the condition of a component. One of the first steps in preparing for the shift will be to clean up the data that is being loaded into a shop’s database. Rini suggests that this begins with accurate Vehicle Maintenance Reporting Standards, which offer codes to classify equipment, labour tasks, parts and brands. Fleets will also need to decide where the additional sensors and information can make the biggest impact. “Identify and prioritize the right components or systems for CBM adaptation,” Rini says, referring to work in the early days of the transition. The leading items on his list includes more data about the condition of oil, Group batteries, air filter sys-PM Transportation 5/16/11 12:00 tems, charge air cooling systems, crankcase pressure, fuel filters, wheel bearings and corrosion.
In each case, the benefits will need to outweigh the costs. There will also need to be the right combination of data that will lead to a specific component, rather than generating the multiple fault codes that leave mechanics “chasing ghosts.” “The future of vehicle support requires more and more data. In fact, it requires the data more often,” suggests Mark Zachos of the Dearborn Group. That can mean reporting the data back to a central location, expanding onboard computing systems, and offering the continuous connection that can be used for inspections and maintenance. “Somehow we transfer it to a server someplace, and we mine it and process it.” This will also require faster connections and networks, which could make it possible for vehicles to communicate in real-time. “If you have lots of data and can’t move it around, it’s not that useful,” he adds. McDonald stresses another challenge: Individual solutions are emerging, but they are coming from too many different vendors, making it difficult to tie everything together. “I need a total truck solution,” he says. “I need a smart truck.” It may not be there yet, but it’s coming. The emerging maintenance trend could even lead to options that have yet to be conceived. Besides maintenance, says ZaPage 1 chos, “some smart people, someplace, will also use that data for other purposes.” n
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Page 60 TRUCK NEWS
June 2011
Our People are Our Success. we hire the best to be the best.
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maintenance briefs
TMC tidbits By John G. Smith TAMPA, Fla. – The following snippets of information were collected during this year’s Technology & Maintenance Council meetings… A hard life behind the wheel It appears that driving a truck can be dangerous to your health. “The life expectancy of an American truck driver is about 16 years less than the general US population,” notes Dr. Josef Loczi, manager of human factors for Daimler Trucks North America. That means truckers are more likely to die at 61 rather than 77; 2.5 times more likely to die on the job; and seven times more likely to suffer an injury or illness.
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With the price of copper on the rise, and potential supplies running short, some engineers are musing about the potential uses of aluminum wiring in future vehicles. Jerry Thrift, the senior manager of new product development at Ryder System looks at the issue only one way. “I’m interested in performance. I don’t care if it’s copper or some kind of ceramic that carries electrons,” he said. Fighting fires
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The Technology and Maintenance Council is developing a new Recommended Practice to address the threat of vehicle fires. “The increase in vehicle fires has really come up over the last five years,” insists Ron Szapacs, Air Products and Chemicals’ maintenance specialist – power vehicles. Fleets are reporting causes as diverse as loose connectors and leaking water that shorts out starters. The standards themselves will focus on issues such as connections and the routing of wires. Remote inspections
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Is the physical roadside inspection a thing of the past? Probably not. But the US Department of Transportation, Technology and Maintenance Council (TMC), and American Transportation Research Institute (ATRI) are working on research into the wireless technology that could connect trucks to government agencies, roadside inspectors, and virtual scales. Lazy robots? Darry Stuart of DWS Fleet Management was curious to find lubricant dripping onto brake shoes. Was it a leaking oil seal? Nope. It seems that the robot-controlled welds on a series of new axle spindles were stopping before the job was done, leaving behind a pinhole-sized opening. The affected trailers were all purchased in the last six to eight months. The rubber hits the wallet It looks like the price of tires may be on the rise. Manufacturers are informing some of their largest fleet customers about double-digit jumps in the price of natural rubber. In fact, the demand could make it difficult to source tires in the next couple of years. n
June 2011
TRUCK NEWS Page 61
logistics
Our people make the difference Nos gens font la différence
Canadian firms rethinking logistics business models, new report shows By Lou Smyrlis TORONTO, Ont. – Despite the economic downturn, investment in distribution facilities in Canada has increased dramatically over the past five years with total annual investment growing from $674 million in 2005 to $1.39 billion, an increase of 106%. That’s one of the many findings of the just-released research report Global Business Strategy and Innovation: A Canadian Logistics Perspective. “This is huge and it doesn’t follow the economic cycle. It shows Canadian firms trying to become more agile even if they are sourcing from China,” said Philippe Richer deputy director, service industries and consumer product branch, Industry Canada. The report is an ambitious research project undertaken by Industry Canada, Canadian Manufacturers & Exporters and Supply Chain & Logistics Association Canada. In addition to its findings about investment in distribution facilities, the report provides insights on four other logistics aspects: logistics business models; global sourcing; innovation trends and strategies; and a best-inclass analysis. Its findings are being presented at special meetings across the country. “As competition becomes more global and intensive, logistics innovation is expanding from the firm level to a supply chain perspective,” said Bob Armstrong, head of SCL. “To remain competitive in the global market, Canadian firms are rethinking their logistics business models while investing in logistics and implementing innovative tools and practices.” Canadian manufactures and retailers in recent years have faced the challenge of integrating increasingly complex global sourcing processes Continued on page 62
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Page 62 TRUCK NEWS
June 2011
logistics
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Manufacturers look to become more agile Continued from page 61
while responding to heightened service level requirements. They’ve responded by trying to improve their agility and reduce inventory levels while simultaneously focusing on minimizing total landed costs. Yet with energy costs expected to increase, the control of transportation costs remains a key focus in the supply chain. “These new realities are leading firms to develop new distribution centre strategies,” the report states. Ontario may have been one of the hardest hit provinces by the recession, yet in 2010 32% of total distribution centre investments were made in Ontario, followed closely by Alberta (25%) and British Columbia (10%). And while recessions (not to mention the impact of the high Canadian dollar) tend to cause American firms to want to service the Canadian market from the US rather than maintaining operations here, distribution centre investment in Alberta points to a different dynamic taking place: Distribution facility investment in Alberta grew by 187% between 2005 and 2010 to serve both Western Canada and Northern US markets on a daily replenishment schedule, the report states. Growth in Ontario (123%) and Quebec (83%) was driven by investments in continental and East Coast distribution hubs, while growth in British Columbia (79%) was due to major investments in deconsolidation facilities. Distribution facility investment in Manitoba, Saskatchewan and the Atlantic provinces grew by close to 40% over the same period. As would be expected, the report found that a greater proportion of large manufacturers have opened new facilities and obtained capacity through mergers and acquisitions within Canada and abroad compared to their small and medium-sized counterparts. Large manufacturers have also proven more likely to close existing facilities or contract logistics capacity to consolidate their distribution facilities. Small and medium-sized firms are also investing in distribution facilities, however, and are doing so to better respond to customer supply chain compliance mandates and to integrate further into global value chains. Other manufacturing sectors including pharmaceutical, and food and beverage, are investing in distribution facilities in order to meet retailers’ daily replenishment rotation systems. CPG manufacturers are also transitioning towards facilities with business-to-consumer e-commerce capabilities, the report states. Firms in the retail sector are investing in deconsolidation facilities and distribution platforms to support their collaborative planning, forecasting and replenishment efforts. The report found that global logistics strategies are becoming more sophisticated in order to better manage globalization and outsourcing Continued on page 64
You Can
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Page 64 TRUCK NEWS
June 2011
logistics
Join one of North America’s ‘Best Fleets to Drive For’ Yanke is looking for 10 1A singles for the AB-BC-WA Triangle Team Schedules* are available immediately Proven Industry Leading Pay Package
Taking a holistic approach to logistics Continued from page 62
Apply Today & We Will Expedite Your File Contact Us Now 1-800-373-6678 ext. 2 www.yanke.ca *On average, Yanke teams last year earned $62,704 per operator
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challenges. At the same time, uncertainty about economic growth has pushed firms to run as lean operations by re-evaluating the efficiency and effectiveness of every activity of their enterprise. The report states: “As logistics management is central to several core activities, a common strategy among leading firms is to create an executive-level position to manage the overall logistics component of the business. Managing the entire logistics network means streamlining operations and driving innovation to improve supply chain performance across business functions and with value chain partners. It includes developing a common vision in forecasting demand capabilities with marketing, distribution, transportation, global trade management, strategic sourcing and after-sales service groups.” The new supply chain strategies, according to the report, include adopting a continental vision to logistics and centralizing decision making processes to take advantages of scale, and leverage negotiating power with logistics and transportation providers. By focusing on logistics activities many firms have either improved their internal operations efficiency or decided to outsource these services. The report also found there is a growing trend in logistics outsourcing activities with the use of longterm initiatives using dedicated facilities, personnel, processes and technologies. The growing importance of global trade since the early 1990s for the Canadian economy is nothing short of spectacular. For example, Canada’s West Coast container port traffic increased by 592% from 1990 to 2010 while East Coast port traffic grew by 83%. Rather than continuing with the initial “me too” strategy of basing manufacturing and sourcing in low cost China, firms are now leveraging a mix of strategies with a four-tier global sourcing framework to estimate the trade-offs between opportunities in Canada/US, Europe, Mexico and China. They are paying attention to lead-time variability, logistics costs and on-time shipments when making their global sourcing decisions. “Where velocity and agility are a priority, products that were once profitably sourced in low production cost areas, such as China, might be moved to nearer shoring zones, such as Mexico and in some instances to Canada/US,” the report states. The report also includes a Best-inClass analysis, comparing the top 20% with the bottom 30% as defined by their performance in logistics (on time shipments, picking and inventory accuracy, transportation spending and shipment integrity). The report found bestin-class firms are more likely to invest in the ability to collaborate electronically with networks of key suppliers (65%) and key customers (56%). Also, more best-in-class firms invest in software, training and advanced technologies to achieve inventory accuracy. n
Page 66 TRUCK NEWS
June 2011
executive view
Cargo theft: A $5 billion problem? A new study places a price tag on the cost of cargo theft. The cost is debatable. The problem is not. We speak to a cargo theft expert about what it will take to control the trucking industry’s pilfering pandemic. TORONTO, Ont. – Cargo crime is getting a lot of attention lately, thanks in part to a new study commissioned by the Canadian Trucking Alliance that indicates cargo crime is a $5 billion a year problem in Canada. The study, aimed at raising awareness of the issue and helping convince lawmakers to provide the resources law enforcement requires to address the problem, also found there’s an increasing prevalence of violence during cargo theft incidences. The study also uncovered a strong presence of organized crime in cargo theft rings, which
provides them with the financial resources to carry out other types of criminal activity. An executive summary of the study can be downloaded from www.cantruck.ca. Truck News executive editor James Menzies recently caught up with Will Mandau, vice-president of claims with Markel Insurance for some industry reaction to the findings. • TN: It seems the issue of cargo theft is getting a lot of attention these days, thanks in part to this CTA study. Is it safe to say the industry is finally getting orga-
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nized when it comes to addressing cargo crime? Mandau: There has been organization over the years in various forms, but now there is a higher profile because of the study. The CTA has done a good job of elevating that and taking a different approach than in the past to lobby government and provide some statistics that will hopefully give them better support for getting funding and attention on this subject. TN: I know you can’t discuss the details of the study beyond what was in the executive sum-
will mandau
mary, but was there anything that came out of it that surprised you? Mandau: Was I surprised? No. There aren’t a lot of reliable, credible statistics out there and even this study talks about it being a $5 billion problem. I don’t necessarily personally agree with that statement, but that was the value that came out from amongst the participants on the panel. But we do not have credible statistics in Canada to support a specific dollar amount of what the problem represents. TN: Do you think the $5 billion figure is too high or too low?
June 2011
TRUCK NEWS Page 67
Mandau: Far too high. TN: The study found that organized crime is very much to blame for a lot of the cargo theft that is happening today. How sophisticated are these criminals? Do they have their own infrastructure such as warehouses and equipment? Mandau : They’re very advanced and they’re getting more advanced as we go forward. It’s as if this was an untapped opportunity that organized crime has now taken advantage of and is leveraging. Yes, they do have warehouses. Yes, they do have a means to acquire equipment to move product quickly and there have been a number of new venues and opportunities for the fencing of stolen property, whether it be flea markets or things like Kijiji and Craigslist and so forth, there are a lot of distribution opportunities available to the criminal element. TN : If a cargo theft occurs, what should the victim do to improve the risk of recovering their load? Mandau: Our mantra has always been ‘immediate and direct’ reporting, to get people activated and doing all they can to identify where this could be going. Getting police forces involved. A trucking company should notify police as the first wave of information and we supply more indepth information to the police forces to equip them with the information they need to do a concerted investigation. But there are some other underlying issues. There are far better solutions to reducing the amount of crime and theft the trucking industry faces and that is taking basic safety precautions to protect their loads. I think we would all be appalled if we went up to a local Walmart and found the doors were open or closed with a twist tie with all the product that’s in that large facility unprotected with no security alarms, no guards and no lighting. Yet, day in and day out, we have hundreds if not thousands of trailers sitting unprotected in low-security yards or on the side of the road with nothing but a seal on them, which is basically an invitation that there’s something of value in that truck. And people just walk up to it and take what they want from that truck – and that is ridiculous. It’s really ridiculous in this day and age, knowing full well there are people who are actively organized looking for opportunities (to steal a load). Even opportunistic crime can take place with very little deterrent and that is the number one form of cargo theft we are experiencing all across the region – readily-available product with no security attached to it. That is the root cause of the crime that I’m seeing. Larger trucking firms are more sophisticated. They don’t escape crime either, but those are typically the highly-organized criminals. We all admit, if a crime Continued on page 69
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June 2011
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June 2011
TRUCK NEWS Page 69
executive view
Low-tech carriers more at risk
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Continued from page 67
ring wants property, they will get it through force. They’ll hijack loads or put the driver in peril and take what they want. However, we can really reduce the overall crime impact and let police concentrate on those types of losses by eliminating this noise in the background where these people are not true victims, they’re allowing it to happen by knowingly leaving high-value product unprotected. TN: How much of this criminal activity is perpetrated by insiders? Mandau : There has to be a good number of them, but it’s very difficult to prove. We have determined through our investigations that there is definitely an element, but that can come from so many different sources. It’s not necessarily a driver giving up a load for $1,000 or $5,000, walking away from the load for a few hours and coming back and finding it stolen. It can be somebody inside the trucking company, a dispatcher or what have you. And then you have the whole issue of load boards and other Web-based sources of loads, where people can steal identities so easily. People need to use common sense. TN : Are these load boards crawling with thieves or can they be safely used with some due diligence? Mandau: I think they’re safe with some proper due diligence, but people don’t take the time. You have to make sure you qualify the information and qualify the individual you are dealing with. In the technological age, we have gone away from face-to-face transactions and shaking hands and qualifying people to make sure they are who they say they are. Right now, it’s e-mail back and forth and faxes back and forth and it’s so easy for a criminal to hide behind some false information or acquire information on the Web and create their own Web page so that it looks very similar to the trucking company they are trying to portray. When brokering a load, there’s an obligation to qualify who you are dealing with. There should be a relationship and there are best practices to follow. It’s pretty easy to do but people are pressed for time so they take shortcuts. TN: What can drivers do to reduce the risk of a cargo theft happening en-route if they’re transporting a high-value load? Mandau : If it’s a high-value load, it begins with: do you have two drivers? Are you stopping at appropriate locations with secure facilities or driving direct? We know for a fact that organized criminals will tail vehicles, stake Continued on page 70
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Page 70 TRUCK NEWS
June 2011
executive view
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out premises and watch them for weeks or months looking for that opportunity to catch a load that’s not protected. Drivers should be aware of their surroundings, not take chances. Don’t go in for a shower and leave a load unattended in the parking lot with no other driver there. TN: We always think of loads of electronics, alcohol and tobacco as being the most vulnerable, but you also hear of loads of diapers, chicken and other items being stolen. Is any load safe? Mandau: The thieves are highly organized. Organized criminals have markets for their loads before it’s stolen. They’re not opening doors, taking something and then trying to figure out what to do with it. It’s sold before it’s stolen and they plan for this well in advance. Other products where you’re dealing with opportunistic crime, they could go the flea market route or they could be going to a plant somewhere and waiting for workers to go off shift and then calling them over and saying ‘Look what I’ve got, are you interested?’ It’s very lucrative. Organized criminals are looking for a higher payback. They’re not looking for low-value loads because it’s not worth their while. As legitimate businesses are looking for operational efficiencies, organized criminals are looking for operational efficiencies as well. TN: It seems odd there is no really effective central database where information on cargo theft incidences can be shared. Mandau: Quite honestly, I’m surprised this hasn’t been mandated by the regulators. We’ve been attempting to do this now for, well for me personally since I joined Markel 14 years ago. We really need to get a shared database. We were very happy when IBC opened up a cargo reporting database but it’s not where we want it to be yet. We want it to be North America-wide. Product does not stay in our backyard, it travels. It crosses borders internationally and overseas and we really need that intelligence. Hopefully with this crime study, government will realize this is not a victimless crime. These dollars are spent on various activities – it could be terrorist activities. These large dollars are put to use for all kinds of undesirable activities we as a society don’t want to support. It even goes down to the municipal level. Mississauga grandfathered allowing truckers to park their rigs on the sides of industri-
June 2011
TRUCK NEWS Page 71
al roads, because they don’t have the opportunity to take them to a secure yard or the facilities aren’t readily available. That practice has to stop. There’s no need to grandfather things. If there’s a practice that is inherently improper and adding to the problem, we have to stop it, not grandfather it. TN: What else needs to be done to control this epidemic of cargo theft? Mandau: We have to educate customers and ensure all losses are reported. That $5 billion figure, people are reading into all the unreported thefts. Some people have estimated up to 90% of theft is not reported. I find that astonishing and can’t believe for a minute that that’s the case, but the naysayers say it is because they don’t see police action. The police don’t have the resources so we have to put the focus on the fact these funds are being used for more sinister purposes, which is leading to a lot of other crime. Right now in Ontario, we don’t have a system in place for the MTO to share information with the police on the insurance of each vehicle in the province. The police officer pulls over a vehicle and can call the insurance company to see if the policy is in force, but that should already be there in the cruiser so they have the information readily available to them. We’re really backwards when it comes to a lot of systems and there seems to be a reluctance to
JAC TRANSPORTATION
share information and we’re perplexed by that. TN: The trucking industry is comprised mostly of small carriers with limited resources. If they can’t afford yard security, satellite tracking and other deterrents, what can they do to reduce their risk of being victimized by cargo theft? Mandau: I think they have to exercise extreme caution. Trucking is a profession, it’s not something you go out and do because you have a few bucks so you buy a truck and go on Loadlink and start hauling things. You have to act with extreme caution and have some best practices and take measures to qualify who you’re dealing with. If you’re running such tight margins that you can’t exercise proper precautions, you shouldn’t be in the business – that’s the reality. You have to have a certain level of professionalism. The other option is, don’t go longhaul, don’t go into the US and don’t haul commodities that could be a target. Maybe start with short-haul, door-to-door with no stops in between so you’re not doing any overnight warehousing on the street somewhere until you gain experience and have the funding to put in place proper security. You don’t have to have a massive satellite tracking system in place, just the ability to plan out a route, stop in secure yards and that will really reduce the risk. n
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We offer:
• 2 years minimum cross border experience • Valid AZ license • Clean abstract/CVOR • Criminal search required • Passport a must • FAST card an asset
• We offer a great compensation package • % of gross or mileage paid to O/O (your option) • .40 cents per mile to start for company drivers • Benefits are available
If you are the one we are looking for: Please call Joe @
905-579-5959 x224 www.truck-it.ca
OWNER/OPERATORS - TEAMS/SINGLES To run West Coast Husbands and Wives Welcome
We pay: • PERCENTAGE
90% with trailer • COMPANY DRIVERS .42¢/mile • TEAMS $1.25/Mile plus f/s • SINGLES $1.15/Mile plus f/s • additional pickups and drops ($50.00)
1-877-928-2998 • 519-928-2997 (Fax) • juice@teamadvantage.ca
REQUIRED IMMEDIATELY!
5 Single and Teams FLATBEDS, CURTAIN SIDES, DOUBLE DROPS, OVER-DIMENSIONAL EQUIPMENT, MULTI-AXLE Growing to Support Maximum Family Time
1-800-265-2743
Be Proud of Your Ride
CONTACT: Fiona x.2411 or Debbie x.2408 EMAIL: employment@blm.com
NO SLIP SEATING
.50
PER MILE
WE PAY EXTRA FOR PICKS/DROPS/ TARPS/LAYOVERS
Steady Miles, Home Time and Stability
Page 72 TRUCK NEWS
AZ O/O’s WAnted ImmedIAtely must have minimum 2 years experience and clean abstract. equipment must be 2004 or newer.
June 2011
Immediate Openings:
for the following locations: _ Based out of montreal Area
for highway runs (must have sleeper)
_ Based out of Southern Ontario for runs into Quebec and the maritimes
Competitive Rates and Fuel Subsidy Available
Stouffville Operations Manager Mechanical Engineer P. Eng. Dispatcher Billing Clerk AZ Truck Drivers Heavy Haul Licensed 310T Mechanic Parts Person
Resumes: employment@andersonhaulage.com P.O. Box 130, 36 Gordon Collins Drive Gormley, Ontario L0H 1G0
Contact Jean at 905-677-0111 ext. 248
Looking for 1 Owner Operator H New percentage based pay options! H Our trailer or yours H Steady work H We will help yor business succeed
And 1 Driver H 44 cents per mile to start + loading fees H Waiting time paid
We Require Call Jennifer
1-800-565-5598 ext. 25
H People who are ready to roll!!!
Brockville Operations Manager Dispatcher AZ Truck Drivers Licensed 310T Mechanic Fork Truck Operator
Tel: (416) 798-7737 Fax: (905) 927-2701 www.andersonhaulage.com
Owner Operators & Company Drivers
WANTED HEALTH BENEFITS START IMMEDIATELY NO WAITING TIME PAY IS DIRECT DEPOSIT WITHIN 3 BUSINESS DAYS For more information call Curtis 1-800-265-3071 ext. 237 Email: cnichol@hyndman.ca Fax: 519-335-4133 www.hyndman.ca
Ask about our Lease to Purchase Program and New Team Rates
H Must have flatbed experience H Ability to speak fluent English H US Compliant
Ask about our Sign On Bonus Now Hiring Owner OperatOrs
COmpany drivers
• Paid weekly • Home weekends • 500 mile radius of the GTA • Dryvan work, 50% pre-loaded, pin-to-pin
• Based in Mississauga • Paid weekly • Home weekends • 500 mile radius of the GTA • Dryvan work, 50% pre-loaded, pin-to-pin
Up to $1.42/mile
is currently looking for
Highway Owner Operators • Ontario runs • Minimum of 3 yrs experience as a Highway O/O • Late model bunk tractor • Red or white in colour • Based out of the GTA and surrounding area If interested please fax your resume to the Safety Department along with: A current abstract, CVOR &
criminal search and Tractor information to:
Fax:
416-621-2416
$0.42/mile
Contact Charlie or Bryan at: 1-800-881-2103 FLATBED AND VAN DIVISIONS
AZ OWNER OPERATORS & DRIVERS REQUIRED
Needed immediately owner operators for our flat and van divisions
or email us @
recruiting@wilsonstrucklines.com Visit our website at:
www.wilsonstrucklines.com
Call or email for details 1-800-756-3238 • jlibby@xpressgroup.ca Fax: 519-737-1598 “Southwestern Ontario’s best kept secret”
we offer: Competitive rates & fuel Surcharge Tolls paid fuel Cards Picks & Drops Pre Pass we require: 2 years cross border exp. u.S. Compliant Clean Abstract & CVor well Maintained Vehicle Ability to speak fluent english
www.xpressgroup.ca
June 2011
TRUCK NEWS Page 73
oem/dealer News
Trailer market remains red hot
Polar ramps up tanker production
COLUMBUS, Ind. – The trailer market shows no signs of cooling off, with net orders surging 21% from February levels in March, according to the most recent State of the Industry: US Trailers report published by ACT Research. Shipments were up 33% in March, with shipments for the first quarter up 109% compared to Q1 2010. All trailer segments tracked by ACT were up over last year, but the dry van segment continues to lead the charge, with shipments up 198% year-to-date. “Net orders have now grown for 18 consecutive months, as well as 19 of the past 20. Total trailer net orders are now 98% above the level at this time last year,” said Frank Maly, director CV transportation analysis and research with ACT Research. “Shipments, up 109% year-to-date, are growing at an even stronger pace. Additionally, backlogs continue to grow. The stage is set for solid industry performance for the remainder of 2011 and throughout 2012.” n
ST. CLOUD, Minn. – Polar, a tanktrailer manufacturing, parts, and service organization, has announced initiatives to reduce production lead times and expand after-sale support for tanker customers. “Tank fleets are challenging their suppliers to help them be more competitive and efficient,” said Ted Fick, CEO at Polar. “Polar recognizes these challenges and has introduced manufacturing and service programs to give our customers a distinct advantage.” On the manufacturing side, a second production shift has been added at Polar’s Opole, Minn., factory and a third production shift at its Holdingford, Minn., and Springfield, Mo., plants. All told, the company has hired 500 employees in the past nine months to respond to increasing demand for its products. Fick says the company has also expanded its manufacturing capabilities so each plant can produce a wider va-
Class 8 orders surge in April: ACT Research COLUMBUS, Ind. – Preliminary results from ACT Research indicate Class 8 commercial vehicle net orders climbed to 38,200 units in North America in April. That’s a 158% increase from a year ago and the largest monthly order intake since March 2006, the company announced. “Every cycle has one or two of those months when the breadth of participation rises and a confluence of events leads to these types of results. April happened to be that month this cycle,” said Kenny Vieth, president and senior analyst. “The list of positive drivers leading to the April order spike is long: healthy freight, increasing trucker profits, pent-up replacement demand, rising used equipment prices, improving credit worthiness, rising prices for new vehicles, and lead times for new equipment that have pushed out to the end of the year.
Mack celebrates 50 years at Hagerstown
HAGERSTOWN, Md. – Mack Trucks’ powertrain components plant in Hagerstown recently celebrated 50 years in operation. In 1959, after looking for a modern alternative to its existing engine, transmission and carrier facility in Plainfield, N.J., Mack decided to invest $45 million in a new one million sq.-ft. plant on 280 acres in Hagerstown. With construction complete, the first Mack engine rolled off the assembly line in 1961. Today, the facility is approximately 1.5 million sq.-ft. – the area of more than 30 football fields. More than $300 million has been invested in upgrades since 2001, including its engine development lab, according to officials. “For half a century, the heart of every Mack truck has originated in Hagerstown,” said Kevin Flaherty, Mack senior vice-president, US and Canada. “We’ve always been an integrated manufacturer, with engines, transmissions and axles specifically designed to work together. Delivering on the Mack brand promise of reliability, durability and application excellence starts with the powertrain – and our hats are off to everyone in Hagerstown as they celebrate this milestone.” n
If that was not enough, there is the accelerated depreciation schedule for 2011 to consider. The challenge now is for the industry to translate all of this demand into trucks.” n
riety of trailer models and configurations. “This increases production flexibility and minimizes transportation costs associated with delivering the final vehicle,” he said. With regards to sales and aftermarket support, Polar has recently added nine service centre locations, with the intention to add another 15-25 within the next 24 months. “Our sales, manufacturing, and aftermarket networks are tightly connected to help us and our customers make better strategic decisions related to parts availability, pricing, delivery status, and fleet cost-tracking,” Fick said. In addition to capital investments, Polar has also secured new labour agreements with its manufacturing employees. “Instead of rationalizing capacity or manpower, Polar has been investing and implementing new programs to help our customers prepare and grow their business,” Fick said. n
ruck
Page 74 TRUCK NEWS
June 2011
oem/dealer news
Glasvan Great Dane takes top Great Dane dealer honours MISSISSAUGA, Ont. – Canadian trailer dealer Glasvan Great Dane has been named Great Dane Dealer of the Year. It’s the fourth time the dealership has been named tops in North America by Great Dane. The award was presented at Great Dane’s recent Sales and Management Conference in Savannah, Ga. “This group has maintained the brand for both their dealership and for Great Dane from the top of the market in 1999 to the worst trailer economy in most of our careers,” said Chris Hammond, Great Dane’s
vice-president of dealer sales, upon presenting the award. Glasvan also won three sales achievement awards for its strength in: dry freight trailer sales; refrigerated trailers sales; and parts sales. Also, two of its salesmen, Tom Pepper and Adam Stevens, received Great Dane King Pin Awards – the company’s highest honour for excellence among its sales force. Pepper became the first Great Dane salesperson to win the King Pin Award six consecutive years, Glasvan reported. n
Mack names Canadian Distributor of the Year great job, glasvan: From left to right: Great Dane’s v.p. of dealer sales, ChrisSubscripton Hammond, TN presents Dealer2:26 of the Award to Glasvan Great Dane’s News P185 the 6/7/10 PM Year Page 1 Paul Cobham, George Cobham Jr., and George Cobham Sr., along with Great Dane regional sales director John Schmidt and Mike Wright, Great Dane’s director of dealer sales and development.
REGINA, Sask. – Mack Trucks has named Redhead Equipment of Regina, Sask. as its distributor of the year for Canada for 2010. Each year, Mack acknowledges
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the efforts and contributions of its dealer network by honouring highperforming North American and international distributors. Selection criteria include sales, facilities, personnel, service, parts, general management, customer satisfaction and community service. Redhead Equipment was among six winners from each of Mack’s six regional sales divisions. Winning the 2010 North American Distributor of the Year was Tri-State Truck Center, Memphis, Tenn. “These businesses are on the front lines, serving our customers every day, and exemplify Mack’s longstanding commitment to excellence in support and service,” said Kevin Flaherty, Mack senior vice-president, US and Canada. “The entire network did a phenomenal job in a difficult economy, and we’re very pleased to have such a dedicated, passionate distributor organization.” n
Wajax buys Harper Power Products TORONTO, Ont. – Wajax Corp. has bought Ontario-based truck engine and generator distributor Harper Power Products for $21.6 million. Harper is an authorized distributor for Detroit Diesel, MercedesBenz, MTU engines and MTU generators and Allison transmissions in Canada, and for Deutz engines in Ontario. The deal does not include on-highway truck dealer Harper Truck Centers in the Greater Toronto Area nor Harper’s Thomas Built Bus business. “Through Harper’s established business, we are gaining a significant presence in the Ontario market where we previously had limited coverage,” Wajax president and CEO Neil Manning said in a statement. “It also represents a major step towards attainment of the division’s strategic objective to become a national total power systems solution provider.” Privately-held Harper Power had adjusted annual sales of about $71 million, Wajax said in a statement. Wajax, which sells and services industrial components and power systems, said the business will be rebranded as Wajax Power Systems. n
June 2011
TRUCK NEWS Page 75
MHT to focus on complete wheel end systems
riding high: Dennis Baehnk (seated on motorcycle), Dan Teleglow (centre) and Chris Dunn will be representing Beaver Truck Centre at the Volvo Vista world championship in Sweden in June. Each team member was presented with a motorcycle for reaching the competition’s finals.
CULLMAN, Ala. – The newly formed Brake and Wheel Ends (BWE) group of Marmon Highway Technologies is looking to develop systems solutions to optimize the performance of its brake and wheel end components for heavy truck and trailers, the company announced. BWE currently consists of: Webb Wheel Products (OE, aftermarket and severe-duty business units) and TSE Brakes. The group will expand to include other complimentary brake and wheel end components engineered to work together to provide improved performance, safety and life-cycle costs, the company announced. BWE will also be acquiring new companies and entering into joint ventures to, as the company says, “further build on the idea that components developed with the total system in mind will bring better benefits to the end user.” The company has an R&D facility in Cullman, Ala., which will support product design and development as well as prototyping and testing capabilities. “With the current make-up of the Brake and Wheel Ends group along with acquisitions and joint ventures, we can provide the commercial vehicle market complimentary products designed to work with each other offering the end user better performance and cost profiles,” explained J.T. Weis, president of the group. “For instance, when brake drums and linings are engineered together there can be significant improvements in performance and life benefitting fleets…however, in the commercial vehicle industry, brake drums and linings are still developed separately and may or may not compliment each other. We want to change that. There are significant other opportunities we are pursuing to marry products to give the end user system solutions.” n
Beaver Truck Centre techs heading to Volvo Vista world championship WINNIPEG, Man. – Beaver Truck Centre of Winnipeg has won the North American championship of the Volvo Vista competition, earning the right to participate in the world finals in Sweden in June. The 2011 installment of the worldwide competition and training program for mechanics and service personnel started in September with a record 13,704 participants from 75 countries. The field was pared down to 153 teams from 3,740 original team entrants through three rounds of theoretical questions. Those 153 teams then participated in one of the 16 semi-finals, which were held in nine locations worldwide, between late-
March and mid-April, where practical skills were tested in workshops. Now Beaver’s team is among the 30 finalists to compete in the world finals in Gothenburg. “High competence in the service organization is an important component in Volvo Trucks’ total offer. The Volvo Vista competition contributes, in an excellent way, to achieving high quality standards and constantly develop our customer care,” says Staffan Jufors, president and CEO for Volvo Trucks. “We at Beaver Truck Centre are very proud to congratulate the team and wish them the best in Sweden,” said John Oades of Beaver Truck Centre. n
Ontario dealership named tops by Volvo WATERLOO, Ont. – Expressway Trucks of Waterloo and Windsor, Ont. has been named the top dealership in Canada for 2010 by Volvo Trucks North America. The annual award honours the dealership’s entire organization and its employees for overall accomplishment and performance. Selection criteria for the annual award includes outstanding performance in new truck and parts sales, growth in market share, penetration of Volvo engines, customer satisfaction index, and investment in facilities. Since acquiring the Waterloo dealership in 1999, dealer principal Scott Lawson has grown Expressway Trucks into two new and used sales and service locations with a total of 36 mechanical bays and 70 full- and part-time employees. General Truck Sales of Muncie, Ind. was named the US Dealer of the Year for 2010. “There’s no question that General Truck Sales and Expressway Trucks have done an outstanding job in achieving excellence while representing the values of the Volvo brand,” said Ron Huibers, senior vice-president of sales and marketing with Volvo Trucks. “Through a strong focus on providing support to help maximize uptime, both dealerships have truly exemplified the excellent quality and service that customers have come to expect from Volvo Trucks.” n
Canadian to chair Kenworth Parts Council EDMONTON, Alta. – Kenworth has named its 2011 Kenworth Parts Council members, including a Canadian woman that will serve as chair. Jo Frost of Edmonton Kenworth in Edmonton, Alta. will serve as chairperson of the council, which consists of leading parts managers from Kenworth dealerships in the US and Canada. Rounding out the Kenworth Parts Council members for 2011
are: Ken Ables, Performance Kenworth, Cleveland, Texas; Paul Baker, Wallwork Kenworth, Fargo, N.D.; Mike Carwile, Truck Enterprises-Richmond, Richmond, Va.; Vic Stiller, Inland Kenworth, Phoenix, Ariz.; Jeff Weaver, Kenworth of Birmingham, Birmingham, Ala. ; and Kenworth Dealer Council representative Jim Moeller, Wisconsin Kenworth, Madison, Wis. n
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www.kingpinspecialists.com • rkingpin69@aol.com
Page 76 TRUCK NEWS
June 2011
fleet news
Mullen Group to acquire Hi-Way 9 Group OKOTOKS, Alta. – Mullen Group has announced it has entered into an agreement to acquire Drumheller, Alta.-based LTL carrier Hi-Way 9 and its subsidiaries. The deal includes Hi-Way 9 Express, Load-Way, Streamline Logistics and 1006213 Alberta Ltd. Hi-Way 9 is a privately held, family-owned LTL carrier that’s been in business since 1969 and is a fixture on the Alberta trucking landscape. “We are extremely pleased to add Hi-Way 9 to our growing business and are very confident that they will work closely with our Grimshaw Trucking group to significantly enhance our LTL business and service to customers in Alberta,” said Stephen Lockwood, president and co-CEO of Mullen Group. “Having been in business for over 40 years, Hi-Way 9 has built an exceptional reputation for providing outstanding service to their customers. We
look forward to working with HiWay 9’s management team on enhancing the service offerings to Mullen Group’s existing customers and realizing on the potential synergies resulting from this acquisition.” The Hi-Way 9 operation will continue to be managed by current president Dean Kohut, while Darrell Kohut will remain as vice-president, operations and Heather Colberg as vice-president, administration. Mullen expects the acquisition to add about $50 million to its consolidated revenue with margins consistent with its other trucking companies. The cash and share transaction is expected to close June 1. “This is a quality, best in class company with an established history, a strong management team and strong systems and as such we anticipated a quick and smooth transition,” Lockwood added. n
CPX named one of best workplaces in country SURREY, B.C. – Coastal Pacific Xpress (CPX) has been selected as one of the best workplaces in Canada for 2011 by Great Place to Work Institute Canada. CPX was selected for inclusion on the Best Workplaces in Canada list, published in a special national report of The Globe and Mail. This is its third appearance on the Best Workplace in Canada list, having been listed in 2007 and 2008 as well. The company was the only long-haul trucking firm on the list this year. CPX co-owners Jim Mickey and Scott McIntosh say the company’s inclusion on the list reflects the efforts of the company to encourage greater health and wellness among its employees. “While this is not the first time that CPX has been recognized as a Best Workplace in Canada, given the many challenges faced by our industry in recent years, being singled out this year is particularly significant for the company and its employees,” Mickey said. McIntosh said he was honoured by the recognition of the company’s commitment to the health and well-being of its employees through such programs as its “Flex Benefits” program. As part of the program, employees receive – along with health, dental, life and other benefits – an annual allotment of money at the start of each fiscal year for use as a “flexible benefits” account. Employees can choose how to use these funds based on their own needs and circumstances. Options include putting the funds towards health-oriented items such as gym memberships, health spending and wellness days along with Registered Retirement Savings Plan and Tax-Free Savings Account contributions. “We felt it was important to focus on the health of our employees in an industry in which research indicates the average life span of a driver is 61 years of age,” added McIntosh. “The stressful times this industry has gone through in recent years make health and wellness an even more significant priority for us.” n
Manitoulin buys Penner International’s LTL biz WINNIPEG, Man. – Manitoulin Transport has acquired the less-thantruckload (LTL) business of Penner International. Representatives of Steinbach, Man.-based Penner say the carrier has made the decision to focus on its truckload business and has concluded an agreement with Manitoulin to purchase its LTL business. The LTL business segment operates through seven terminals: Toronto, Winnipeg, Edmonton, Calgary, and Surrey in Canada, and Minneapolis, Minn. and Fargo, N.D. in the US. The primary consolidation points are Winnipeg and Minneapolis. Manitoulin says the additional freight to and from the US will allow the company to provide direct service coverage between Minneapolis and Winnipeg, improving service times to all of Western Canada. n
Titanium Trucking Services buys Flex-Mor Industries WOODBRIDGE, Ont. – Spara Capital Partners, an Oakville-based investment and merchant banking firm, has announced the acquisition of carrier Flex-Mor Industries by Woodbridge-based trucking company Titanium Trucking Services. Acting on behalf of Titanium, an asset-based trucking company with a freight brokering division, Spara was charged with finding a suitable acquisition to complement Titanium’s growth strategy. The Flex-Mor transaction will expand Titanium’s fleet to more than 90 trucks and more than 400 trailers. “When we started investigating possible acquisition targets, we not
TransForce takes over domestic operations of DHL Express Canada MONTREAL , Que. – TransForce and DHL Express Canada have announced a 10-year strategic alliance that will see the two companies integrate their domestic and international shipping and logistics offerings. TransForce will purchase the assets of DHL Express Canada’s domestic business and will take over its domestic operations through Loomis Express, a newly formed subsidiary of TransForce, the companies announced. DHL Express Canada will focus exclusively on the Canadian international shipping segment. Under
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only focused on the financial performance, the assets and the focus of their business, but we also analyzed their corporate culture and the expertise that this acquisition could bring to Titanium,” said David Firman, managing director of Spara’s transportation and logistics group. “Good human capital, route compatibility and an overall harmonious service offering were major drivers in this transaction that contributed to its success.” “Acquiring another trucking company was a major part of our strategy for continued growth and success,” said Ted Daniel, president of Titanium. “We’re very excited about the Flex-Mor acquisition.” n
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the agreement, the companies claim Loomis Express and DHL Express Canada will offer Canadian businesses a fully integrated international and domestic suite of shipping and logistics services. “This transaction is strategic to TransForce for several important reasons,” said Alain Bedard, chairman, president and CEO of TransForce. “This asset purchase will solidify our position as a leading Canadian provider of package and courier services in Canada, plus the DHL partnership opens the door to international transport coverage for our existing customers.” He added the combination of the two customer bases will add greater scale in the market and provide increased efficiencies. “With our recent Dynamex acquisition, we are significantly increasing our density in the Canadian package and courier sector. We are confident of our ability to successfully integrate these businesses as we have done in the past within the TransForce family of companies and firmly believe that this latest purchase will benefit our shareholders,” Bedard said. “This transaction will not create any changes in our other package and courier businesses as Loomis Express will be a standalone operation.” “Today’s announcement is a further execution of our global strategy to focus on our core competency, the growing international express business,” added Ken Allen, CEO of DHL Express. “By entering into a strategic alliance with the marketleading domestic provider, we can even better meet the dynamic and growing needs of our Canadian customers by offering highest quality, seamless integrated shipping solutions that are second-to-none.” n
June 2011
TRUCK NEWS Page 77
new products
Freightliner has introduced a natural gas-powered version of its new 114 Severe-Duty (SD) set-back axle vocational truck. The new 114SD SBA is a lightweight truck aimed at a range of vocational applications, including: dump; refuse; and sewer vac. The natural gas version of the truck will be powered by the Cummins ISL G engine and it will be matched with an Allison 3000RDS transmission, the company announced. The 114SD SBA was introduced earlier this year. Production of the natural gas version will commence in December, Freightliner announced. •
Fontaine Modification, Fyda Freightliner and GSP Marketing have teamed to produce a refuse truck they say can improve productivity for cash-strapped municipalities. The MP8000/M2-106 Dual Stand-Up Drive Combo was showcased at the recent WasteExpo trade show. The truck combines a maneuverable Freightliner M2-106 conventional cab truck with a semi-automated dual side loader body from GSP Marketing and Fontaine’s dual low-entry stand-up drive cab. The truck allows two operators to collect and load material from both sides of the truck, with easy access to the cab from both sides, the companies announced, allowing two operators to get in and out of the truck quickly. For more information on the truck, call GSP Marketing at 877-445-4499 or visit www.fontainemod.com.
Peterson has announced its Model 354 Series LED mid-turn lights
meet Title 13 compliance for use on long trailers in the state of California. The company says few manufacturers offer mid-turn lights that meet the stringent California requirements. California is the only state requiring J2039 compliance. The M354 features hardwired leads terminated with AMP hardshell connectors. For more info, visit www.petersonmfg.com.
Accuride has come out with a new line of Accu-Lite lightweight aluminum wheels that weighs 12 lbs less than the company’s Duplex wheel design. The new offering weighs just 45 lbs in 22.5”x8.25” configuration while a super-single version weighs 59 lbs. For more info, visit www.accuridecorp.com. •
Goodyear has come out with a new super-single tire for severeduty applications. The G278 MD replaces Goodyear’s G178, providing better mileage thanks to a one-inch larger footprint, deeper tread depth and special compounding, the company announced. The new offering is available in 385, 425 and 445/65R sizes in 22.5”. It’s an all-position tire ideal for on- and off-highway applications including construction, concrete, oil service and logging, according to the
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Titan Trailers is now offering the ParaMax high-lift steering axle suspension system, providing a more comfortable ride and longer tire and trailer life for haulers operating on rough roads or offroad, the company announced. The ParaMax, designed by Titan, is rated to 25,000 lbs with steer Continued on page 78
June 24-25-26, 2011 Agricultural Fairgrounds Dryden, Ontario
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TRP Aftermarket Parts has introduced a new line of alternators for medium- and heavy-duty trucks. The new line is designed to meet or exceed OEM specifications, the company says, and are rated to meet the higher temperatures found in newer EPA07 and EPA2010 engines. An RE022 brush series is available with 150 amps of power and an RE555 brush series offers 160 amps. There are also RE035 and RE036 brushless designs with 140 and 170 amps of power respectively. For more info, see a Kenworth or Peterbilt dealer or visit www.TRPParts.com. •
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SAF-Holland has expanded the application breadth of its CBX Series suspension system for the North American trailer market. The company has incorporated its Fusion Beam technology into the suspension system, allowing it to meet a wider range of systems dimensions requirements and application demands. The new beam technology also reduces trailing arm beam weight without sacrificing durability, the company announced. More weight has been
trimmed from the suspension thanks to the integration of an SAF X-Series 5 3/4” round axle. •
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company. The new tire’s criss-cross tread design provides excellent offroad traction while pumping water away from the tread for improved grip. The tire will also have a retread available beginning in June. For more, see a Goodyear dealer or visit www.goodyear.com/truck. • Toyo Tires has come out with a new model M657 on-highway drive tire that is EPA SmartWay-certified. The tire is suited for long-haul, highway applications and features Toyo’s e-balance technology including a stiffer belt package, stiffer bead construction and optimization through simulation technology, the company claims. Benefits include improved tire life, greater endurance, improved regular wear resistance and better fuel economy. The tire comes with a 28/32” tread depth and a multi-pitch groove design for improved traction. For more info, see a Toyo Tire dealer or visit www.toyotires.com. • Bridgestone Commercial Solutions Group has come out with a new Firestone brand FD695 Plus drive tire, promising excellent fuel efficiency without sacrificing removal mileage, the company announced. The new tire is SmartWay-certified and ideal for use on tandem axle drive tractors in long-haul and regional applications. The original tread depth is 26/32” and continuous shoulder ribs distribute weight and torque evenly to fight irregular wear, the company claims. The tire’s casing was designed with retreadability in mind and it can be placed on either the drive axle or trailer positions during its second life, the company announced. For more info, see a Firestone dealer.
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Page 78 TRUCK NEWS
June 2011
new products Continued from page 77
angles of 30-degrees. The additional lift means Titan trailers can go where others cannot, the company announced, while ensuring lift plates remain parallel for increased air bag life and reduced tire wear. For more info, see a Titan Trailers dealer or visit www.titantrailers.com.
Isuzu has announced its trucks are now available with a telematics system from Teletrac. The system is available on all 2011 and 2012
model year N-Series Isuzu trucks, the company announced. Teltrac’s Fleet Director is a fully-integrated Web solution that allows fleet managers and dispatchers to track vehicle usage in real-time by sending detailed vehicle and driver performance reports that are accessible from any Internet-connected computer. The new system is available as a dealer-installed or port-installed option. Fleets using the system have reported fuel savings of up to 30%, Isuzu claims, while labour savings can be achieved as productivity is improved. The company also says it can reduce traffic tickets through improved compliance. For info, see an Isuzu dealer.
A long-time fan of big rigs has noticed many drivers don’t enjoy the benefits of fitted truck cab bedding and has come up with a solution to the problem. Jake Crudo, owner of Jake’s Cab Solutions has designed a sheet that fits over a truck cab mattress and pro-
vides four pockets for items such as cell phones, magazines or reading glasses. The bedding is available in three colours and four sizes to meet most truckers’ needs. Sizes include 35”x79”, 39”x80”, 42”x80” and 54”x80” and each size is available for $30 per set, including shipping. For more info, visit www.jakescabsolutions.com or call 514-456-6710. • A new company has come out with an environmentally-friendly cleaner for the shop. RSC Bio Solutions has a new line of Gunk powered by SafeCar and Liquid Wrench powered by EnviroLogic industrial cleaners, degreasers and lubes. The line is biodegradable, yet effective, the company says. For info, visit www.rscbio.com. n
Wakefield Canada introduces new DEF
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TORONTO, Ont. – Wakefield Canada has launched a new diesel exhaust fluid (DEF) product for trucks using selective catalytic reduction (SCR). H2Blu was on display for the first time at this year’s ExpoCam trade show. Company officials say the new DEF is formulated with an emphasis on purity and performance, providing Canadian carriers with consistent reliability. Wakefield says its role as a respected blender and distributor of premium fluids ensures consistent attention to quality control. Wakefield Canada will distribute H2Blu through its existing heavy-duty distribution network, with availability throughout Canada. It will be offered in: 9.46-litre jugs; 208-litre drums; 1,040-litre totes; and in bulk. The larger packages have closed ‘micro matic’ systems to ensure purity and quality standards are met, the company announced. Wakefield officials say the DEF is tested at several stages throughout the manufacturing and delivery processes to ensure every batch is pure. It will also test bulk quantities at customer facilities to ensure purity. The new DEF meets ISO 22241 standards and is API-certified. n
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FALCONER, N.Y. – With US inspection agencies stepping up enforcement of CSA (Compliance, Safety and Accountability), Truck-Lite has developed a training program aimed at keeping its customers’ lighting products in compliance. The ‘For CSA, Choose Wisely – Choose Truck-Lite’ training program consists of resources and tools, including a Roadside Repair Kit that will include the tools required to do an emergency repair. “Vehicle lighting is a prominent area of emphasis in the CSA vehicle maintenance category acting as a flag to enforcement and potentially leading to a vehicle review. The importance in specifying and using reliable and trustworthy products should be given significant attention,” said Truck-Lite’s vice-president of marketing, Bob Ives. The tool kits will be available at trade shows throughout the year, in-
cluding some that will be raffled off. The new training program also includes a CSA lighting brochure which outlines the FMCSA regulations as well as a dedicated Web site that answers frequently asked CSA lighting questions. Meanwhile, Truck-Lite urges customers to consider the following three recommendations: upgrade to a lifetime LED lighting and wiring system for improved reliability; make a pretrip inspection mandatory, including the inspection of all lighting, and consider taking a cloth to rear lighting to ensure it’s as visible as possible; and carry a roadside repair kit in every truck so repairs can be conducted on the spot. Truck-Lite’s Roadside Repair Kit includes three LED lights and the tools required to replace them in a vinyl zippered 12”x8.5” bag. For more info, go to www.truck-lite.com/csa. n
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TRUCK NEWS Page 79
advertisers’ product/service index AIR CONDITIONING INSURANCE (Cont’d.) Manwin Enterprises............... 41 CK Insurance....................... 24 XTCC.. ................................ 52 Hargraft Schofield LP............. 16 Innovative Insurance............. 76 NAL Insurance.. .................... 12 ANNOUNCEMENTS Beaver Truck Centre.............. 25 National Truck League.. ..........36 Truck News On-line Award.. ....... 82 State Farm – C. Maugeri.......... 51 State Farm – Rose Monachino....40 Stateside Transportation ANTIFREEZE Consultants.. ..................... 43 Ultraclear Bulk Fluids............. 18
TRAILER PARTS & SERVICE Action Trailer Sales................. 9 Glasvan Great Dane.........5,35,50 Trailers Canada.....................86 Kingpin Specialists................ 75 West Van Rental.................... 17
LUBRICANTS BORDER CROSSING SERVICES Avaal Technologies................ 47 Castrol/Wakefield Canada.......44 Centerline Truck Lube.. .......... 49 Chevron Global Lubricants... 4,31 BUSINESS CONSULTANTS Avaal Technologies................ 47 Quick Truck Lube.. ................ 45 C.U.T.C. .............................. 79 Shell Canada Products Ltd....... 21 Truck Boyz.......................... 39 Stateside Transportation Consultants.. ..................... 43 MEDICAL SERVICES Transport Financial Services.... 40 Ontario Drivers Medical.. ........ 82
TRAILER SALES (USED) Action Trailer Sales................. 9 Glasvan Great Dane......... 5,35.50 Trailers Canada.....................86 West Van Rental.................... 17
TRAILER SALES (NEW) Action Trailer Sales................. 9 Glasvan Great Dane.........5,35,50 Great Dane Trailers.. ..............87 LOANS/FINANCING AUXILIARY POWER UNIT EZ Repair Loan.....................40 Manac................................. 16 XTCC.. ................................ 52 Riviera Finance.....................26 Trailers Canada.....................86
TRUCK LEASING Sheehan’s Truck Centre.......... 29
TRUCK PARTS, SERVICE & ACCESSORIES Canadian Industrial & Truck PARDONS Radiators...................... 10,79 Just pardons......................... 10 Manwin Enterprises............... 41 Morgan’s Diesel Truck Parts.. ... 11 RADIATORS Sheehan’s Truck Centre.......... 29 Atlantis Radiator Truck CHILD FIND.. .......................... 26 Auto Service.. .................... 23 Truckpro............................. 23 Canadian Industrial & Truck XL Radiators.. .......................40 CLASSIFIED........................... 33 Radiators...................... 10,79 Greater Niagara Radiators.......77 TRUCK SALES (NEW) CLIMATE CONTROL King Radiator....................... 51 Arrow Truck Sales................. 33 Manwin Enterprises............... 41 XL Radiators.. .......................40 Freightliner Trucks............... 2,3 XTCC.. ................................ 52 Mack Canada........................88 RADIO SERVICES Sheehan’s Truck Centre.......... 29 Sirius Canada.. ......................34 CROSSWORD CAREERS..................53,54,55,56, ......... 57,58,59,60,61,62,63,64, 65, ............... 66,67,68,69,70,71,72,73 Truck News/Driverlink.. ............ 83 Truck ops............................. 20
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June 11 Crossword Puzzle......... 10 ROLLOVER STABILITY TRUCK SALES (SHUNTS, YARD June 11 Crossword Solution....... 79 Haldex................................ 24 TRACTORS) Glasvan Great Dane........ 5,35,50 DIESEL EXHAUST FLUID SAFETY AND COMPLIANCE West Van Inc........................ 17 Anco Chemicals.................... 78 Stateside Transportation Consultants.. ..................... 43 Ultraclear Bulk Fluids............. 18 TRUCK SALES (USED) Arrow Truck Sales................. 33 SEMINARS DRIVER EDUCATION/TRAINING Private Motor Truck Council.. ..28 Morgan’s Diesel Truck Parts.. ... 11 Avaal Technologies................ 47 Sheehan’s Truck Centre.......... 29 Stateside Transportation SUBSCRIPTION TO TRUCK NEWS.. .. 74 Consultants.. ..................... 43 TRUCK SERVICE & REPAIR TANKER SALES (NEW & USED) Canadian Industrial & Truck Dependable Tank.................. 14 EXHAUST Radiators...................... 10,79 A & A Exhaust......................46 Hutchinson Industries............ 47 Centerline Truck Lube.. .......... 49 Texis Truck Exhaust.............. 78 Tankmart International.. ......... 85 Sheehan’s Truck Centre.......... 29 The Truck Exhaust Place.. ....... 15 XL Radiators.. .......................40 TARPS Verduyn Tarps...................... 13 FINANCING State Farm – Carolyn Maugeri..... 51 TIRES & TIRE SERVICE State Farm – Rose Monachino.....40 Goodyear.. ....................... 19,32 Hankook Tire....................... 37 HEATERS Michelin.............................. 27 Espar................................... 8 XTCC.. ................................ 52 TRAILER LEASING & RENTAL Action Trailer Sales................. 9 INSURANCE Glasvan Great Dane.........5,35,50 Aaxel Insurance.................... 10 Trailers Canada.....................86 Burrowes Insurance Brokers.. ... 7 West Van Rental.................... 17
TRUCK SHOWS Atlantic Truck Show..............36 Dryden Truck Show...............77 Fergus Truck Show................ 42 Stirling Truck Show............... 41 TRUCK STOPS Flying M .............................38 WASHER FLUID Ultraclear Bulk Fluids............. 18
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AlphaBETICAL LIST OF ADVERTISERS A-Z Technical Bldg... ................... 33 A&A Exhaust............................ 46 Aaxel Insurance Brokers...............10 Action Trailer Sales.. ..................... 9 Anco Chemicals.. ....................... 78 Arctic Traveler (Canada) Service.. ... 52 Arnold Bros. Transport.. ............... 62 Arrow Truck Sales...................... 33 Atlantic Truck Show.................... 36 Atlantis Radiator Truck Auto Service.. ........................ 23 Avaal Technologies..................... 47 Beaver Truck Centre................... 25 Bestway Transport..................... 68 Bison Transport..................... 53,73 BLM Group.. ......................... 59.71 Burrowes Insurance Brokers........... 7 C.A.T...................................... 61 Canadian Industrial & Truck Radiators.. .........................10,79 Caravan Logistics.. ..................... 66 Career Opportunities.. .. 53,54,55,56, .......... 57,58,59,60,61,62,63,64, 65, ................ 66,67,68,69,70,71,72,73 Castrol/Wakefield Canada............ 44 Celadon.................................. 63 Centerline Truck Lube................. 49 Challenger Motor Freight.............. 57 Chevron Global Lubricants.......... 4,31 Child Find............................... 26 CK Insurance............................ 24 Classified............................... 33 Crossword Puzzle & Solution...10,79 C.U.T.C.................................... 79 Dependable Tank........................14 Don Anderson Haulage................ 72 Driverlink.com.. ......................... 49 Dryden Truck Show.................... 77 Emprize Transport...................... 55 Espar Heater Systems................... 8 E Z Repair................................ 40 Fastrax Transportation................ 56 Fergus Truck Show.. ................... 42 Flying M.................................. 38 FLI.. ....................................... 54 Freightliner.. .............................2,3 FTI.. ....................................... 66 Glasvan Great Dane.............. 5,35,50 Goodyear.. ............................19,32 Great Dane Trailers.. ................... 87 Greater Niagara Radiators............ 77 H2Blu/Wakefield Canada.. ............ 45 Haldex.................................... 24 Hankook Tire............................ 37 Hargraft Schofield LP...................16 Highland Transport..................... 60 Holmes Freight Lines.................. 68 Hutchinson Industries.. ................ 47 Hyndman Transport.................... 72 Innovative Insurance................... 76 International Truckload Services.. ... 58 JAC Transportation.. ................... 71 Just Pardons.............................10 Keypoint Carriers....................... 62 King Radiator............................ 51
Kingpin Specialists..................... 75 Laidlaw Carriers (Bulk/Dumps)...... 70 Laidlaw Carriers (Tanks).............. 64 Laidlaw Carriers (Vans).. .............. 58 Liquid Capital Midwest................ 33 Liquid Cargo............................. 67 Mack Canada.. .......................... 88 Manac.....................................16 Manwin Enterprises.....................41 Michelin.................................. 27 Morgan’s Diesel Truck Parts.. .........11 Morrice Transportation................ 70 NAL Insurance...........................12 National Truck League................. 36 Nine North Logistics................... 72 Nolan Transport.. ....................... 68 Ontario Drivers Medical............... 82 Owner Operator Award.............. 22 Parks Transportation.. ................. 61 PMTC..................................... 28 Precision Specialized . ................ 67 Quick Truck Lube....................... 45 Revolution Staffing..................... 53 Ridewell Corp... ..........................17 Riviera Finance.. ........................ 26 Scotlynn Commodities.. ............... 65 Sheehan’s Truck Centre............... 29 Shell Canada Products Ltd............ 21 Sirius Canada........................... 34 SLH Transport.. ......................... 56 State Farm Insurance.. ............ 40,51 Stateside Transportation Consultants.. ......................... 43 Stirling Truck Show.....................41 T.D. Smith Transport................... 68 Tankmart International................ 85 Team Advantage........................ 71 Texis Truck Exhaust.................... 78 The Erb Group Of Companies.. ....... 69 The Rosedale Group.. ...............61,69 The Truck Exhaust Place...............15 Trafalgar.. ................................ 72 Trailers Canada......................... 86 Transfreight.. ............................ 54 Transport Financial Services......... 40 Trimac.................................... 55 Truck Boyz............................... 39 Truck News/DriverLink.. ............ 83 Truck News – Online Award.......... 82 Truck News – Subscription.. ........74 Truck News – TruckOps............. 20 TruckPro................................. 23 UltraClear Bulk Fluids...................18 Verduyn Tarps............................13 W.J. Deans Transportation.. .......... 68 West Van Inc... ...........................17 White Oak Transport................... 59 Wilson’s Truck Lines.................. 72 Woodcock Brothers.................... 60 XL Radiators.. ........................... 40 Xpress Group.. ...................... 54,72 XTCC.. .................................... 52 Yanke Group Of Companies.. ......... 64 Young Transportation – American Division................... 68 Young Transportation System........ 72
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Page 80 TRUCK NEWS
June 2011
fleet profile
It’s a Guys thing
How being there for a single customer has helped a small Alberta trucking company achieve success By Jim Bray RED DEER, Alta. – To succeed in business, sometimes you don’t need to build a better mousetrap. Sometimes you just have to find a niche and serve it faithfully and professionally. That’s the lesson one can take from Red Deer, Alta.’s Guys Freightways, a small company that has been serving its niche successfully since 1975. Not that the “Guys guys” haven’t dabbled in other things but, according to Todd Schwartz, co-owner and son of Guys’ founder Bernie Schwartz, they’ve stayed true to their roots for the most part and it has worked out well. “We’re super busy – spring and fall are our busiest times,” says Schwartz during an early April interview with Truck News. Most of Guys’ business comes from a long-term marriage of convenience: they have delivering product for Peavey Mart (“Hardware and a whole lot more”), a gig Schwartz says began before there even was a Guys Freightways. “We do a little bit of other work here and there on the side,” Schwartz says, “but mostly we work just for them now. Dad started there with one truck and they just kept growing – and so did we. You don’t get many relationships like that.” As for Guys Freightways itself, Schwartz says, “Dad drove for Duckering’s Transport back in the day and they hauled for Peavey Mart.” The chain had fewer links back
then, though, a mere seven small stores. “And so you’d be feeding three, four stores on one trailer and you make one loop and you almost deliver to them all,” Schwartz recalls. The elder Scwhartz eventually took over the account and bought his own truck with which to service it as an owner/operator for Duckering’s, Todd Schwartz says. “And then Duckering’s said basically that since he was doing it all anyways, why didn’t he just take it over? So he did and it kind of grew from there.” Today, Guys has about 15 trucks and delivers to 30 Peavey Mart stores in the four western provinces. “They keep growing and we’ve kept growing,” Schwartz reports with satisfaction. Guys moved to its current location near the western edge of Red Deer in 1980, a handy spot just off the Queen Elizabeth II highway. It may or may not be a coincidence that it’s also a stone’s throw away from the local dealership of his preferred truck marque. “I’m a Peterbilt fan,” Schwartz admits. “We’ve tried others throughout the years; Dad started with White Western Star in 1975, then went into Macks and we stayed with them for quite a while. Then we went into having all Peterbilts and then Freightliner and Kenworth and now we’re back to Peterbilt.” And while it definitely doesn’t hurt
that the dealership is “just across the street now – it’s really quick to get parts,” Schwartz admits it’s really more a matter of personal preference. “It’s the style – kind of that old school style, classic look. We’ve tried the Aerodynes, sloped hoods, and sure, there are benefits in fuel and that kind of stuff – but we’ve found that with Peterbilts the best thing is their resale value; it almost makes up for the fuel costs, so you might as well drive something that you like.” Schwartz says his favourite is the Peterbilt 389, though “when it comes down to it, a truck’s a truck so it’s more just a personal preference with what you’re comfortable with. And of course the dealer has a lot to do with it and Peterbilt’s been excellent to us.” Guys flips the trucks about every three years, to keep the fleet fresh and to help give the people to whom they sell the Peterbilts a break. “We take them up to 650,000750,000 kilometres for the three years,” Schwartz says, “then sell them privately. It gives the next buyer a little bit of warranty and we can pay cash for the new trucks. I usually have my trucks almost pre-sold before the new ones show up.” Guys hasn’t tried Paccar’s MX engine yet, and probably won’t. “I have two new trucks coming and I’ve debated it,” Schwartz says. “But I mostly pull tandem weights so I really don’t need high horsepower or heavy spec’s.”
He spec’s his trucks higher than he needs to, though, “because as soon as you put them up for sale the first thing they want is 18 speeds and all that kind of stuff. We don’t need that but it’s what everybody wants, so that’s how we spec’ them.” Guys doesn’t really do a lot to minimize fuel costs or increase aerodynamics, either. “It doesn’t seem to make much difference for what we do,” Schwartz says. “Sometimes I wonder how much of it’s for show – you know, you put all these big fairings or skirts underneath the trailer. Maybe if you’re one of the big guys – like a Bison – if you can save 2%, that would be huge. But 2% on 10 trucks, really by the time you buy all that stuff the savings probably aren’t there.” They do try to keep their idling down, however, and “I’ve got engine and bunk heaters in all of the trucks” Schwartz says. “And we watch where we fuel up to keep an eye on pricing because that’s a huge expense right now, a real killer.” Schwartz, the younger, came into the industry right out of high school. “I started in the shop and kind of worked my way up,” he says. “I got my heavy-duty ticket right away and then I drove for three or four years straight and gradually got more into dispatching and helping to keep everything rolling.” And while one might expect some interesting times when working with
June 2011
nice iron: While Todd Schwartz calls himself a Pete guy, he’s added a couple International LoneStars to the fleet, which don’t look out of place among the Pete 389s.
your father, Schwartz says there have actually been very few conflicts. “We’ve been really good, actually, and probably over the last 10 years or so, (Bernie)’s gotten more and more out of it and I’ve been doing more of everything. It’s actually worked well.” He puts it down to the fact that he didn’t try to reinvent the wheel. “I think a lot like him and I didn’t try to come in and try to change a whole bunch,” he says. It seems to have worked: the company has flourished even in these difficult times. “We’ve been pretty lucky,” Todd Schwartz says. “I think over the last 30plus years we’ve only had to put an ad out for drivers once. For a lot of years we had stacks of resumes and guys pretty well lining up to work here.” Times were a little tougher during the oilfield boom of the mid 2000s, though, and it was during those years that they had to place the ad. “The oilfield would just scoop them up,” Schwartz remembers. “We’re just freight haulers. We can’t compete against the oil patch.” They’ve also had to look at their standards in order to ensure a steady flow of new blood. “We used to have fairly high criteria,” he says. “We wanted guys with at least five years’ driving experience, and since we used to haul pork from Red Deer to Vancouver we always wanted guys with mountain experience. With the driver shortage now,
TRUCK NEWS Page 81
though, it’s tough to ask for five years plus the extra. But drivers seem to always want to come here. It’s kind of a nice feeling when someone wants to come and work for you.” And while drivers still heed the call of the wild goose, moving on for whatever reasons, Schwartz says they don’t have a lot of turnover – and it’s even rarer that Guys has to show someone the door. “I’ve only had to fire two guys personally, and over the company’s 30 years I think we’ve only had to let go maybe 10 or 12. We’ve always had a good group. It’s tougher to find guys now, but the group I’ve got has been really good.” This stability means he hasn’t had to mentor a lot of young drivers, either, though he admits that may be in part because there just aren’t that many of them in the first place. “It doesn’t seem like there’s a big group of young guys coming into trucking as there was once was. It’s easier to find guys that are 35 to 45 years old, especially here in central Alberta.” Schwartz says the people who approach Guys generally have already been out there for a while, “and maybe the oil field isn’t as fun as they’d hoped. Sure, there’s some big money, but you really have to work for it. It’s not the cleanest work out there, either, whereas here it’s relatively clean, there’s no chaining up or anything like that.” The Guys guy has some damning words for today’s trucks – or perhaps it’s for the bureaucrats who’ve forced changes on today’s trucks. “Ever since 2008, the new emission trucks have given us the biggest challenge we’ve had in a long time,” he says. “They just don’t run like they used to.” Schwartz says he’s had more breakdowns and has probably towed more trucks in the last three years than over the history of the company. “A lot of it’s related to the emissions stuff,” he notes. “The motors are fine. If you could take off the stuff that’s causing the grief and just have the motor there, the thing’ll run.” Schwartz tells of an associate who hauls fuel: “He’s bought a couple of my used trucks,” he says, “and is looking for another spare because, it’s sad to say, we have to keep one or two spare trucks around just for breakdowns. And he has noticed the same thing, he’s actually bought an old winch truck and a flatbed just for hauling his own trucks because there’s so much breaking down. It’s the same problems we’re having. It’s stupid when you have to buy your own tow truck.” It isn’t only the breakdowns, of course; it’s the time lost. “In years past, some trucks would be out of service for maybe a day, but I’ve had trucks over at Peterbilt for three weeks, and it’s all to do with this emissions stuff. It’s an ongoing issue. I probably have a truck in there at least once a week on average with some kind of sensor gone or something with the electronics.” This unfortunate fact of business life today makes him glad he hung onto a couple of pre-emission models to use as spares, and he’s not letting them go. “I know they’ll run,” he says, adding with a laugh “I should’ve quit buying trucks in 2007!” He also bemoans a kind of “just in
time” philosophy with dealers today that he says leads to parts not being stocked locally. “There’s a main warehouse in Edmonton,” he says, “so why would (the dealer here) carry a part when he can have it the next day? But I wish the dealers would recognize that we make money only if the trucks roll and the quicker you get back on the road, the better.” Schwartz thinks the situation will only get worse, with new regulations coming. “I think it’s going to be quite interesting in the next five or 10 years,” he says. “I have a feeling that they’ll quit making the trucks I like, that if they ever get those regulations in where you have to get a certain fuel mileage and all that kind of stuff, I don’t think you’ll get it from the trucks with the classic look.” To hear him tell it, the whole regulatory exercise has been going after the wrong villain in the first place. “I think instead of doing all this emissions stuff, right off the bat we should have gone for fuel mileage. I could never quite figure that out.” Schwartz says his new trucks actually get worse fuel mileage than the old ones, as well as having shorter intervals between oil changes, “So we’re burning more fuel, using more oil – it doesn’t make sense. Why don’t they get technology going so the truck makes 15 miles per gallon instead of seven? To me, that’s saving. But there’s a big oil company somewhere that doesn’t want to see that.” Schwartz is also not a fan of Electronic On-Board Recorders (EOBRs) and other technologies that are meant to monitor drivers. “It’s getting a little bit much,” he says, noting that the establishment always seems to pick on the big trucks. “I don’t know what their theory is. Maybe we’re just easier to pick on. You have a snowstorm and there’s an accident on the highway – they sure like to say that a semi ran over the car, but nothing about the fact the car may have swerved into the semi in the first place. It goes both ways.” He also doesn’t look forward to the extra expense EOBRs and the like will add to his operating costs – unnecessarily, in his opinion. “Right now, I’ve got a $20 cell phone in each truck and I can run my 15 trucks like that.” He admits that his smaller fleet has it easier than some companies, however, because “We’re only dealing with a few customers, where some of these guys have 15 different customers on one trailer and are doing drops and pickups and that kind of stuff.” Challenges aside, it appears that Schwartz wouldn’t have it any other way. “Sure we’re not the Bison-type of company, but we have 15 trucks, which is still a few – and there are some days you wish you only had one – but it’s nice to see them all lined up and clean, to have a good little company that runs well and is well thought of.” When asked if he has any advice for a young up and comer who
wants to get into the business, Todd Schwartz laughs and says: “I’ve got one for sale!” Trucking is still a good industry, he notes, but it’s also a tough one. “I get guys that look at us and think it must be very lucrative, but we got where we are because the business is 30 years old and we’ve just built it gradually. Dad wasn’t buying chromed up Peterbilts back in ’75, he was driving a truck himself and trying to make ends meet just like everyone else.” In other words, he says, “Go in slow, keep your overhead down.” Schwartz intends to continue going slowly, expanding as his market dictates while enjoying life as he does it. That doesn’t mean they haven’t branched out in the past, however. At one time, the company had lease operators and 30 reefer trailers, but Schwartz likes it better now. “Sometimes bigger isn’t always better,” he says. “Sure, we had 30 trucks and 60 trailers, but we had three more mechanics, more people in the office, and I’m not sure we were further ahead. It depends on what you want from life.” Besides, as long as Peavey Mart keeps growing, Guys Freightways will keep growing with it. “It seems like we add a truck every three years or so as they grow,” Schwartz says. “In the meantime, everything just keeps rolling, and keeps us steady and busy and trying to enjoy what we have.” Schwartz says the secret to Guys Freightways’ success – besides keeping its expectations manageable – is a reputation for honesty and punctuality. “Customers like dealing with us because if I say we’ll pick up a load on Thursday morning that’s when I’m going to pick it up. I think a lot of
companies out there say they’ll take the load on Thursday not knowing if they’ll even have a truck available then, because they don’t want to turn stuff down. We’ve always just gone on the honesty and just hard work, to do the job.” Schwartz notes proudly that the company has never missed a load in 30 years. “We’ve even had the odd wreck and still never missed a load – it got delivered that day.” So they promote themselves on punctuality and giving good service and good hard work, “Which today is sometimes in short supply.” It may sound like an old-fashioned way to work, but for Guys Freightways it’s a formula that works. “We have a good relationship with the people we haul for,” Schwartz says. “They’re still that old-school, handshake kind of deal and that’s how we’ve always been too.” n
Page 82 TRUCK NEWS
June 2011
people
Steve Young
Maxim Truck and Trailer has announced the appointment of Steve Young to the position of vice-president of parts. Young has been with Maxim for seven years, most recently as parts manager for the company’s Winnipeg operations. He has more than 20 years experience in the parts industry, including prior roles at Canadian Tire, Traction and Fort Garry Industries. Young takes over the position from Kurt Voth, who recently retired after nearly 30 years leading the Maxim parts division.
“We are delighted to be able to promote from within for such a critical role as v.p. of parts. Steve has a fabulous parts pedigree and has proven himself a leader within the Maxim organization over the past seven years,” said Maxim president Doug Harvey. • Phil Carrick has been named national sales and key account manager for Groeneveld’s Canadian operations. Groeneveld Group manufactures automatic greasing systems, oil management devices and safety systems. Carrick brings more than 30 years of truck and trailer market experience and has held senior roles, including working as a dealer for one of North America’s largest trailer manufacturers, the company announced. “Phil has tremendous knowledge of our industry and will play a key part in our growth in the Canadian market,” said Wim Zieleman, managing director for Groeneveld Canada.
• Durabody Industries has announced Jason Cuddy has joined its team as regional sales manager. Cuddy will oversee sales of all Durabody products for the western Greater Toronto Area. He joins Durabody from the trailer leasing industry, most recently serving as district account manager with Train Trailer Rentals, the company announced. He has more than 10 years of experience in the transport industry, including previous roles with GE Trailer Fleet Services. “We are thrilled to welcome Jason to the Durabody Team,” the company said in a release. “We believe he brings the right mix of skills, commitment and passion to the position.” • Sgt. Rob Ruiters, the highly respected and affable RCMP officer who led Operation Pipeline/Convoy, has stepped down from his longtime position as coordinator
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of the national program. The RCMP is moving the program manager’s position to Ottawa, and the Saskatchewan native was not prepared to relocate, Ruiters told contacts in an e-mail. “As a result I will be leaving the program,” Ruiters announced. “I will remain in Regina and embark on other opportunities within the RCMP and look ahead to my retirement options in the future.” Ruiters spent the last 18 years spearheading the Pipeline/Convoy program, which aims to eliminate the use of commercial vehicles and other modes of transportation for the purposes of trafficking drugs and contraband. Ruiters was a popular speaker at industry events, frequently offering practical advice on what fleet managers should be on the lookout for to ensure their vehicles aren’t being used for illegal purposes. “I leave with many fond memories and take pride in what we, collectively, had achieved from nothing,” Ruiters said in his parting e-mail. “The most treasured memories I will take with me are the great people I have met – all of you – during my time in this role…I leave the program with few regrets and with much pride in our efforts.” • Windsor, Ont.-based Genesis Express & Logistics has announced it has hired David Brown as its new recruiting manager. “David comes to us as a leading expert in today’s recruiting, using good solid techniques for finding professional drivers,” announced Mike Flattery, vice-president of Genesis Express & Logistics. “His ability to seek out quality and safe drivers is paramount to our industry and the driving public.” Brown, who has conducted seminars for CEOs, safety directors and recruiters, added “I am glad to be a part of the Genesis Express & Logistics team and look forward to working with them to help build their carrier to the next level.” Brown can be reached at 905 252-7585 or by e-mail at dbrown@genesiscarriers.com. n
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TRUCK NEWS Page 83
It’s the pay, stupid Dear Editor:
From the lips of an angel
served as a wake-up call to the industry that there was a problem. There is no driver shortage, and no shortage of qualified drivers. There is, however, a shortage of drivers willing to make the sacrifices and burden the responsibility required of a professional driver for the wages being offered. Though I have nearly 14 years behind the wheel, amongst many in the industry I am a relative newbie. Speak to professional drivers of 20, 30, or 40 years experience as I have. Many of these drivers have told me they were making more money in 1977. Why would any driver of any level of experience suggest a career in trucking to anyone? It used to be the norm. Nowadays it is a rarity at best. And yes, with my experience and a good 20 years ahead of me that could be spent behind the wheel, I am as so many others actively seeking out options for a new career. Unless there is a drastic change, and soon, I will be leaving not only the driver’s seat but also the industry. n
Re: State of Freight, pg 20, April Truck News “Carriers believe the largest culprit for the growing shortage of drivers is the quality of life and working conditions in the longhaul truck driving job instead of wages.” Honestly, who are they trying to kid? As a driver with just shy of 14 years experience, a spotless abstract and CVOR, a FAST card, the type of driver I’m told carriers want in their employ, why is it that I am making less money than I was 13 years ago as a brand new driver? It is quite true the working conditions and quality of life are horrible as a truck driver of any sort, particularly a long-haul driver, but at one time the sacrifices made by professional drivers in the way of lifestyle and working conditions were at least somewhat compensated for by an industry that paid a decent wage such that drivers could provide a decent life for their families and, when they did manage to get home, themselves. If I recall correctly back around 2007, a CTHRC study showed 700,000 Canadians held an A/Z or Class 1 licence, while less than 300,000 worked as truck drivers. This should certainly have
Robert Talbot Kitchener, Ont. Professional Commercial Vehicle Operator
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While surfing the Internet, I came across an interesting conversation on Facebook. It was concerning the lifestyles of some people and the sacrifices they have to make in order to provide for their families. This conversation was praising professional truck drivers for their dedication to their job as well as applauding the people they leave at home to hold down the fort. Ray, a professional truck driver that works over the road on long-haul, quoted his eight-year-old daughter Patricia Lynn, who is now 12 years old: “My father is a truck driver, (he delivers freight) so everyone has what they need when they go to the store!” The smallest of moments can have a life-sized impact and this is one of them. Like many truckers, Ray has children of school age and is barely around for school functions, which does not go unnoticed by school faculty. Trucking is a lifestyle – not just a job – that forces a person to become an absentee parent in order to be the provider. The only connection they have is the cell phone they carry and maybe a laptop they can use to message back home once they are parked. This cannot be helped because this is what they do; this is what makes them happy, or as Ray would say “this is what makes me tick!” It is when the child understands and is proud of what their parent does, that it truly touches the heart. Ray boasts “Patricia Lynn is my biggest fan!” Nothing can warm someone’s heart like a child whom appreciates what their parent does for a living. Nobody knows what each person goes through each day, what can happen in the course of 24 hours. The main thing is, in the end, they go home to become a visible part of the family. It is such a comfort to know that the younger generation can appreciate what truckers do, and accept the activities in life that they forego just for the sake of being able to provide. It is the quality of time you spend with your family, not necessarily the quantity. We can all be inspired by the words of a little girl who sees her father as a hero “so everyone has what they need when they go to the store!” Patricia Lynn, the world is a better place for having you in it. n Jody Lynn Insley Garson, Ont. Via e-mail
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Part 2
FICTION FICTION
Part 1
Mark Dalton: Owner/Operator
Illustration by Glenn McEvoy
Licence renewed Till Theft Do Us Part Mark Dalton: Owner/Operator By Edo Edo van van Belkom Belkom By
Mark hadsomade The story far… the trip east back across country was parked Mark isthe looking for aand load. Bud has a sweet one to that won’t overnight in California a large truck yard be in ready forOntario a few days. In the meantime, Barrie, waiting for the Bud asks Mark helpinanthe older driver, warehouse to to open morning Charlie Knowles, get load his licence reso he could get his heading newed. Charlie’s a real character and north. Mark agrees It was justto help afterout. 11 p.m. and Mark was about•to bed down for the night when he heard a noise Mark had agreed to help prepare outside. Charlie Knowles forofalllong-haulers the tests he The yard was full needed to complete in order to get his with overnight cabs so it wasn’t uncommercial driver’s licence renewed, usual for someone to be out and but what that meant, Mark didn’t have about at this time of night. Still, it a clue. Other than a physical every was late and there were only a few years, Mark hadn’t been tested on few overhead his driving abilitylights sinceilluminating he’d first rethe yard, so anyone outceived his licence and working that had been side now was either in trouble or some 15 years ago. How could he preup to no good. Mark decided to pare someone for something he didn’t check it out. know anything about? Four theInternet line there So hetrucks loggeddown onto the and was an old Chevy van parked checked out the Ontario Ministry in of front of a late model Western Star. Transportation’s Web site, but was unThe of anything the van was wide open ableback to find about driver liand of tools. were cables cencefull renewals forThere commercial drivers 65 and over.running Although Mark wasn’t and hoses from inside thea computer genius, he’d the Internet van to underneath theused Western Star before find what he and a and faintcould light usually was aglow under wastruck. looking for, so his results were the puzzling. There was aservice?” section forMark driv“Midnight repair ers renewing their licences 80, said under his breath asover he apand all kinds of help with renewing exproached. pired licences and booking appointThe closer he got, the clearer ments for new but nothing about he could heartests, the sounds of somewhat Mark wanted to know. Mark one at work. There was the familwondered if he’d missed something on iar sound of a hammer battering the site, but to the best of his abilities a wrench and then the grunt of he couldn’t find anything about the someone struggling to get someMTO’s licensing policy regarding oldthing loose. er commercial drivers. Mark down that andthe peered Mark knelt had hoped Web unsite der the truck. “Hello,” he said. would help him understand the reason“Ugh,” ing behindthe themechanic policy, butresponded. the fact that Mark sympathized with the man. he couldn’t find anything – even using Itthewas the middle of the night, he site’s own search engine – made was lying flat on his back on the him think that perhaps the program cold hardnew, ground and there was a was too or the ministry wasn’t nut or bolt that just didn’t want to let very proud of it, or it was just another go. Therekind wereofprobably hundred tax-grab programalike Drive places the man rather be. Clean. There had would to be some real reasons driversa were to Mark jump “Making houserequired call, eh?” through all sorts of hoops just because said. their recentgrunted, birthday obviously was their Themost mechanic 65th?his Mark wanted to know what they into work. were, he decided to call them up Marksotook a long look at the man, and ask.it hard to make out much definding while before he working got contailItintook the afaint light he was nected to a human being who by. He was dressed in a dirtycould pair answer his questions, when‘Joe’ the of coveralls that had abut name, right woman finally came on the line over the left breast pocket. His face she was both pleasant and professionwas just as dirty as his clothes with al. a pair of light blue vinyl gloves on “How can I help you?” his hands. Mark decided to start slowly. “Yeah, “I’ve got a rechargeable flashmy dad is a truck driver and he’s 64
light in mybuttruck,” Mark said. “It’s right now, his birthday’s coming up pretty bright. help to you.” in a month, andMight he’s scared death of losing his licence. That isn’t going to “I’ll manage.” happen it?” to chat, but this guy Mark is wanted “Notseem if he renews his to licence.” didn’t to want have any “This year?” part of it…which was strange since every year after 65.” he “And obviously wasn’t going any“Thatanytime doesn’t soon. seem fair. hasn’t where MarkHegave it had a problem in years…in fact he’s another shot. “Starter motor, huh?” never had an accident in his life.” “Yeah.” “That’s sir,no?” but research “They’readmirable expensive, has shown that older drivers are more “Uh-huh.” likely to develop medical conditions “Few hundred buck at least.” that affect their ability to drive. After “At least.” 65, drivers are one-and-a-half times “You’d think at that price they’d more likely to have an accident than last a bit longer. This truck couldn’t drivers between 45 and 64.” beShe more than three four knew her what, stuff, that was or for sure. years old?” And Mark could concede the fact that grunt. got older they had more asAdrivers “You got a replacement, cana health issues. So an eye testorand you fix that one?” physical were probably a good idea, know till I the getrest it back to but“Don’t that didn’t explain of it. “So the shop.” why do they have to be road-tested Mark said nothing for a while, too?” watching the man work. He was She paused, as if thinking. “The lifast, fewprocess wastedhas movements. cencewith renewal been developed withjust the a help and consultation of He had few tools with him the people the industry enhance under the in truck but theytowere all truck safety. That includes re-assesshe needed. ment of a person’s driving ability.” he That made sense, because Mark sighed, he probably couldn’t affordknowing to be crawling in wasn’tout going to get anywhere with this and from under the truck all woman. “You know,for a lot of drivers night long looking tools. have to rent trucks and trailers to take Mark liked the way the mechanic their tests, costing them money worked and if he had his own and shop,a day off work just to keep their licence.” maybe Mark could take Mother “That’s unfortunate.” Load there if she ever broke down “And if a driver has been on the in this part of the country. road 40 years without a problem, why “Where’s your shop?” he asked. should he have to prove he can still “Maybe I come to you the next time drive? That seems like age discriminaItion need service.” to me.” “It’s near here.” “The ministry regularly reviews the Mark waited for theIf man to elabrenewal requirements. you have conorate, but he didn’t. Instead justI cerns – as you obviously do –hethen kept on working and never once suggest writing to the Ontario looked in Mark’s Transportback Minister, or your direction. member of Mark wondered if the man was inprovincial parliament.” tent“Write on his work, or avoiding looka letter?” ing“Yes, Mark in the eye. sir.” “If youhung gave a card,‘So I could Mark up me the phone. be it,’ thought call you,Mark. then.”If there’s a test, then it was his need job toany make sure Charlie “Don’t more work. Got passed it.as it is.” enough “Maybe, but times • change. Everyone can always use more work.” He Mark met Charlie in beat the parking of looked at the man’s up old lot van. a truck yard out by the airport. Charlie “More work and you could buy a was sitting hison pick-up at the far end new truck, in hire another mechanof the yard and when Mark pulled in, ic...maybe take on an apprentice.” heThe wasted no time getting out of his man stopped working for the truck and hopping into Mother Load. first time since Mark had arrived. He scaled the cab so easily and “Listen mister, if I give you a numslipped in the open passenger side ber will you leave me alone and let door so effortlessly, Mark would have me do my work?” never have guessed the man was a
“Yeah, sure,” Mark said, thinking that maybe he was being a bit pushy. “I didn’t realize I was bothsenior citizen. ering you. I always think everybody “You Mark Dalton?” Charlie asked is just like me, you know... in his thick Scottish accent. happy to have someone to talk me?” to.” “You don’t remember “You thought wrong. I got anothCharlie looked at him strangely. er truck I?” to do before I go home to“Should Mark He smiled and related the story of night.” stopped working, and the early days ofstill histo truck driving cawith his back Mark, scribreer when he’d been divorced bled something ontorecently a piece of paand he’d personal out appearance per. Thenlethehisstretched his arm get out of He’d looked likeofa behind himhand. to pass Mark a slip bum, but Charlie had called him lospaper tucked between two ofa his er. “Do you remember that?” fingers. Charlie’s narrowed as he Mark took eyes it. “Thanks.” looked Mark over. “Aye, I remember. A grunt. You were a loser then. You still could Mark got up off the pavement be. I don’t know that much about you.” and headed back to Mother Load. Mark had considered thanking the He knew that big-rig mechanics man for shaking him up enough to get were a special breed – a breed his life back on track, but it didn’t seem apart – but this guy was odd…and the right time for it now. just“How a littlemuch unfriendly. The more he you gonna charge thought about it, the more he conme?” cluded that Mark maybesaid. this He mechanic “What?” hadn’t wasn’t the type of guy he wanted thought to charge anything. As far as wrenching Load. he knew he Mother was doing Bud a favour. • “Did Bud tell you you’d have to pay?” Mark early next morn“He awoke didn’t, but I’ve the called around to ing to the sounds of people the schools and some of themoutside charge $3,000... that’s just several for a refresher his truck. and There were voiccourse.” es, including ones that were comof money.” ing“That’s over aa lot radio. “You bet the it’s asleep lot of money, especialWiping from his eyes, ly when I’veout been truck twice Mark got of driving bed and looked as long as the snot-nosed boy who’ll out the window. Just down the lot, be teaching me has beenthe onWestern the planabout the spot where et.” Star was parked, were a pair of Markcars. was aware of the insult, he police One officer wasbut talkcouldn’t help but smile. Charlie was ing with a man, maybe the owner such a character. Who else could insult of the truck, while another officer someone who was doing something was crouched down close to the nice for them? “Bud asked me to do ground, looking under it. this. I wasn’t going to charge you any“Wonder what that’s all about?” thing.” Mark said under breath. What passed forhis a smile appeared
He got dressed and quickly exited Mother Load. happened?” Mark on“What Charlie’s face. “Then the said priceas is he neared the police. right,” he said, continuing to stare at “Where did narrowed you just come Mark through eyes.from?” “And one the officers said.truck for the whatofabout using your test? You’llmy be truck charging for that, “That’s rightmethere,” heI suppose?” said, pointing to Mother Load. Again, Mark hadn’t thought about “You were here all night?” what Charlie wouldWhat use. Marktruck nodded. “Why? Obviously the man had no truck of his happened?” own andstarter wouldmotor have towas rentstolen one to off do “The the test. Renting a truck was a costly that truck.” endeavour, especially when Mark shook his head. “No,it itwould was be for just a few hours. “I guess taken to be repaired. I talked Itocould the let you use my mechanic lasttruck.” night.” “For free?” “No,” the officer said. “This Mark didn’t like the word free. He truck’s practically brand new. The was doing a favour for Bud and that starter was stolen.” implied that Bud would return the “I thought he was legit,” Mark favour some day. But as far as Charlie said. “He even gave mewould his was concerned, the use of truck number.” indeed be free. “Yes,” he said at last. The cop’s face brightened. “Free.” Mark fished the “Good. numberBut outyou of bethis Charlie nodded. pocket and handed it over. ter get a trailer. I can’t exactly drop a The on policeman trailer the day ofsmiled. the test if there isn’t “What is it?” one attached to the truck now, can I?” “This number,” heMark said.had “It’sbeen for Speaking of tests, one of the with radioCharlie stations interacting forinalltown.” of five “Oh,”and Mark said, likeone a minutes he felt like feeling he was the who wasrear-end being tested most of his horse’s for –being soall easpatience. makeI sure,” sighedbe at ily duped.“I’ll “Then guesshe I won’t last. calling it for service.” n “Right then! Let’s get started.” ■ – Mark Dalton returns next month in – Mark Dalton returns Part 2 of Till Theft Do Us Part.next month in Part 3 of Licence Renewed. Did you know that there are two full-length novels featuring Mark Dalton?: Mark Dalton Did you know that there are two full-length “SmartDriver” and Mark Dalton “Troubleload.” novels featuring Mark Dalton?: Mark Dalton For your free copy register with ecoENERGY for “SmartDriver” and Mark Dalton “Troubleload.” Fleets (Fleet Smart) at fleetsmart.gc.ca. Both For your free copy register with ecoENERGY for are also available in audio book format. Fleets (Fleet Smart) at fleetsmart.gc.ca
The continuing adventures of Mark Dalton: Owner/Operator brought to you by
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June 2011
TRUCK NEWS Page 85
profitability dashboard
Modest drop in base rates offset by significant increase in fuel surcharges, CGFI shows
TransCore Canadian Spot Market Freight Index 2007-2011
2007
2008
2009
2010
2011
Percent Change Y-O-Y
Jan
173
214
140
171
222
30%
Feb
174
217
117
182
248
36%
Mar
228
264
131
249
337
35%
Apr
212
296
142
261
300
15%
May
280
316
164
283
Jun
288
307
185
294
Jul
219
264
156
238
Aug
235
219
160
240
Sep
206
203
180
234
Oct
238
186
168
211
Nov
227
143
157
215
Dec
214
139
168
225
The cost of ground transportation for Canadian shippers remained essentially the same in February when compared to January, while fuel surcharges assessed by carriers rose significantly during the same period, results published by the Canadian General Freight Index (CGFI) indicate. The CGFI Total Freight Cost Index decreased by a nominal 0.1% in February when compared to January, while the Base Rate Index, which excludes the impact of fuel surcharges assessed by carriers, decreased 1.1% during the same period. The CGFI is still 2.3% above the April low point and 1.9% above last year’s result for the same period. In February, fuel surcharges reached their highest point in more than two years and averaged 17.4% of base rates, compared with 16.4% in January. “In February, overall freight costs remained flat after successive months of decline,” said Doug Payne, president and COO of Nulogx. “The reduction in base rates was offset by increases in fuel surcharges, and with rising fuel prices we expect total freight costs to increase in the near future.” The CGFI is sponsored by Nulogx, a leading Transportation Management Solutions provider, and is used by shippers and carriers to benchmark performance, develop business plans, and secure competitive agreements. It was developed with the assistance of Dr. Alan Saipe. The most recent results are available at the CGFI Web site: www.cgfi.ca. n
US truck tonnage posts 1.7% gain in March
TransCore Canadian Spot Market Freight Index 2007-2011
Spot market softens in April, TransCore index shows TransCore’s Canadian Freight Index saw load volumes for April 2011 register a 15% increase yearover-year, surpassing the previous record set in April 2008. However, load postings were down 12% from last month’s alltime high, the company reported. Equipment postings were at the lowest recorded level since 2005, descending even further than the
previous reduction set during the short month of February 2011. Available capacity was also down almost 20% from April 2010. While capacity and loads both decreased from the prior month, surprisingly the ratio of available equipment to loads remained at the exact same level on a month-to-month basis, TransCore noted. n
US truck tonnage rose 1.7% in March, after falling a revised 2.7% in February, according to the latest data from the American Trucking Associations (ATA). March tonnage reached the highest level since January of this year. Compared to March 2010, seasonally adjusted US truck tonnage was up 6.3%, better than February’s 4.4% year-over-year gain but below the 7.6% y-o-y jump in January, the ATA reports. For the first quarter of 2011, tonnage was up 3.8% from the previ-
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ous quarter and 6.1% compared to Q1 2010. “Despite my concern that higher energy costs are going to begin cutting into consumer spending, tonnage levels were pretty good in March and the first quarter of the year,” said ATA chief economist and vice-president, Bob Costello. “While I still think the industry will continue to grow and recover from the weak freight environment we’ve seen in recent years, the rapid spike in fuel prices will slow that growth.” n
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Feature unit oF the Month
Page 86 TRUCK NEWS
June 2011
TSQ MILTON, Ont. – The Canadian Trucking Alliance and the Canadian Renewable Fuels Association are at odds over an impending biodiesel mandate that would require all on-road diesel fuel sold in Canada to contain an average of 2% biofuel content. The CRFA argues that the mandate, set to come into force July 1, would help reduce greenhouse gas emissions and other pollutants through the use of biofuels. The CTA, however, cites a recent federal government review when claiming that any GHG reductions as a result of the would be negligible, while fuel and consumer goods prices would almost certainly increase. Some estimates claim the increase in diesel fuel prices could be as high as eight cents per litre under the mandate. Will truckers be willing to bite the extra cost at the pump in order to offset emissions? Truck News went to the Fifth Wheel Truck Stop in Milton, Ont. to find out. •
?
Truck Stop Question
What do you think of the proposed biodiesel mandate?
adam ledlow
“The way it is, customers don’t want to pay more money for the transport of the goods to get to the store,” he said. “I think that our rates should go a lot higher, at least $1.70 per mile to cover our fuel and everything else. I’m just one guy; there are a lot more people out there that might like it, who knows?” • Bjorn Nelissen, an owner/operator with FS Trucks out of Florenceville, N.B., says that since his company has a fixed price on diesel, it wouldn’t affect him as much. “FS trucks have a fixed price (on diesel) and we get a very nice fuel surcharge, so it doesn’t really matter
Tony Romano
Tony Romano, a driver with Trailwood Transport out of Alliston, Ont., says that considering how fuel prices are already spiralling out of control, another increase would be harmful to the industry.
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to me. My co-workers use a lot more diesel than me and they cannot make any profits, especially in the winter.” Nelissen also says the potential benefit to the environment shouldn’t be discounted. “Everything we can do to improve the environment is a good thing, especially with newer engines like mine,” he said. “It is very cheap on fuel and low on fumes…If it increases the fuel mileage and if it is good for the environment then I am fine with it, even if it’s a little more expensive.” •
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Brian McLean, a driver with Hillman’s Transfer out of Sydney N.S., says he thinks the potential increase in fuel prices is nothing more than a money grab. “What they are telling everyone about what it is going to improve on is just a money grab. It’s all crap in my opinion,” he says. “What it is going to affect is the consumer. That is who has to pay in the end, and we’re all consumers. They’ll pass on the price to the consumer.” •
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Robert Rice, a driver with Werner Enterprises out of Omaha, Neb., says he’s sitting firmly on the fence on whether he’s in favour of biodiesel usage in general. “The jury is still out on what biodiesel will do to the mechanical parts of the truck. Until that is in, I really cannot give you an opinion,” he told Truck News. “It sounds good, but like all things that sound good, you have to do a lot of digging to find out whether or not it really is good, especially with a large company like I look for. We have 7,000-8,000 trucks. If you affect a truck by as much as 50 cents a day then it’s a lot of money.” – Have an idea in mind for a future Truck Stop Question topic? Send a message via Twitter to @adamledlow or e-mail adam@ transportationmedia.ca.
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