Thursday, June 30, 2016
Tuesday, June 28, 2016
Agile and Quick-Like a Mountain Lion
As you can see, Bodie is catching Rodney doing it right. That is the 3 points of contact method of entering and exiting the cab. This saves many an injury to our Professional Drivers. Rodney actually has 4 points of contact in this picture.
Two Men In A Truck
To promote shared space and equal terms, Bodie and Rodney agreed to use a motel when it made sense. This seems like a logical arrangement. Parking a truck in a motel is never easy. It is one of the logistical problems with the ride-along process that takes more than one day. Great to see these two guys got a good nights sleep and made a smart decision by using a Fairfield Inn, a practical room for the night that saved J.B. Hunt some folding money.
Keeping the Cab Clean Rule #1
Rodney introduced Bodie to the wonders of Lysol. This is his secret to keeping a fresh cab. Since he considers his International Prostar his home, it was the first of many lessons that Rodney will be sharing as they share the highway together.
Rodney and Bodie Go A-Riding!
Driver Tip of The Week #2
With temperatures rising daily it is time we talk about our idle shutdown system on our trucks.
Do you understand how the idle shutdown works?
What does this mean for you?
Our drivers safety is important to us, we as an enterprise take pride in the high safety standard we have established and continue to maintain.
With a safety culture of this calibar we also understand you have to get the 10 hour break you need but it also needs to be good rest. If you are going to operate and driver at your very best, we have to provide you the comforts you need to be rested.
The truck will idle for you, we do not want you to be uncomfortable when you are on your down time. We do however want you to understand the truck is designed to shut down after a period of time to allow the engine to rest. It can be turned back on if the cab fails to maintain a comfortable temperature.
Keys to Remember:
- Sleeper: After 10 minutes of idle when outside temperatures are between 32-35 degrees the engine will shut down.
- Your trucks inverter has been programmed to power a heat generating device for a minimum of 10 minutes after idle shutdown.
- The dash inverter has LED light indicators for you to know what phase your truck is in.
- Green LED on: Power switch is in the ON position and the inverter can be used.
- Red LED on: Power switch is in the ON position and the inverter is OFF due to the 10 minute timer. The inverter can be reset by using the ON/OFF switch.
- Red LED flashing quickly: Power switch is in the ON position but the inverter is locked out and can not be used for 10 minutes due to low voltage.
Saturday, June 25, 2016
Trucking Alliance Supports ELD's
The Trucking Alliance for Driver Safety and Security (Trucking Alliance) and Advocates for Highway and Auto Safety (Advocates) have filed a joint amicus brief in the Seventh Circuit U.S. Court of Appeals, in support of the Federal Motor Carrier Safety Administration’s effort to fend off a legal challenge by the Owner-Operator Independent Drivers Assn. to stop the agency’s electronic logging device rule for truck drivers.
The federal rule requires ELDs in most commercial trucks by December 2017. FMCSA issued the rule on Dec. 16, 2015, and implements Congress’s 2012 mandate to require ELDs for interstate commercial trucks. OOIDA, which filed suit the following day, maintains that ELDs are no better than handwritten paper logs when it comes to hours of service compliance or highway safety.
“Operating a large commercial truck is not an entitlement, but a privilege, and we have a moral responsibility to make sure our truck drivers are properly trained, drug and alcohol free and properly rested,” said Steve Williams, president of the Trucking Alliance and chairman and CEO of Maverick USA. “When ELDs are installed in every commercial truck late next year, they can be the technological platform upon which our industry can build a safe and efficient supply chain for the future.”
Advocates, in a statement, noted that paper log books are frequently referred to as “comic books” throughout the industry, because of the ease in falsifying actual driving and work time in violation of the federal requirements. The group also characterized OOIDA’s challenge as “frivolous,” and said that, among other “scurrilous claims,” opponents of ELDs assert that the devices will not improve HOS compliance.
“Advocates has fought for decades to have ELDs installed on large trucks,” said Jackie Gillan, president of Advocates for Highway and Auto Safety. “These devices will finally bring trucking and enforcement of commonsense rules into the 21st Century. It is time to rid the industry of the outdated and unreliable use of phony comic books that allow truck drivers to flout HOS limits and jeopardize safety for everyone. Driving too many hours is a recognized safety problem in the trucking industry and ELDs are a proven safety solution.”
Both safety groups and segments of the trucking industry have long fought for the implementation of the technology.
“The Trucking Alliance and Advocates for Highway and Auto Safety represent a broad, united spectrum of highway users and transportation companies that know these ELDs can make the highways safer for truck drivers and motorists alike,” said Lane Kidd, managing director of the Trucking Alliance. “We’re committed to making sure this congressional mandate becomes a reality.”
The federal rule requires ELDs in most commercial trucks by December 2017. FMCSA issued the rule on Dec. 16, 2015, and implements Congress’s 2012 mandate to require ELDs for interstate commercial trucks. OOIDA, which filed suit the following day, maintains that ELDs are no better than handwritten paper logs when it comes to hours of service compliance or highway safety.
“Operating a large commercial truck is not an entitlement, but a privilege, and we have a moral responsibility to make sure our truck drivers are properly trained, drug and alcohol free and properly rested,” said Steve Williams, president of the Trucking Alliance and chairman and CEO of Maverick USA. “When ELDs are installed in every commercial truck late next year, they can be the technological platform upon which our industry can build a safe and efficient supply chain for the future.”
Advocates, in a statement, noted that paper log books are frequently referred to as “comic books” throughout the industry, because of the ease in falsifying actual driving and work time in violation of the federal requirements. The group also characterized OOIDA’s challenge as “frivolous,” and said that, among other “scurrilous claims,” opponents of ELDs assert that the devices will not improve HOS compliance.
“Advocates has fought for decades to have ELDs installed on large trucks,” said Jackie Gillan, president of Advocates for Highway and Auto Safety. “These devices will finally bring trucking and enforcement of commonsense rules into the 21st Century. It is time to rid the industry of the outdated and unreliable use of phony comic books that allow truck drivers to flout HOS limits and jeopardize safety for everyone. Driving too many hours is a recognized safety problem in the trucking industry and ELDs are a proven safety solution.”
Both safety groups and segments of the trucking industry have long fought for the implementation of the technology.
“The Trucking Alliance and Advocates for Highway and Auto Safety represent a broad, united spectrum of highway users and transportation companies that know these ELDs can make the highways safer for truck drivers and motorists alike,” said Lane Kidd, managing director of the Trucking Alliance. “We’re committed to making sure this congressional mandate becomes a reality.”
Monday, June 20, 2016
Government Regulations A Boon To Truckers?
Here is a interesting article from Fleet Owner:
Could the wide sweep of current and proposed regulatory initiatives now blanketing trucking actually help the industry achieve better long-term positioning on freight rates? That seemed to be the conclusion of more than a few of the speakers at the ALK 2016 Technology Summit held in Philadelphia this week.
“All these regulations are a godsend, for they are another supply-side restrictor keeping the supply of drivers down. We have to take advantage of that,” stressed Mike Krohn, vice president of operations for PGT Trucking.
Take electronic logging devices (ELDs) for starters: the mandate that imposes them on trucking takes effect December 2017, albeit with some caveats, but to the mind of Travis Rhyan, CEO and president of 10-4 Systems, they will affect overall capacity availability throughout the trucking network.
“This is only starting to unfold; it won’t really happen until the mandate is imposed,” he stressed. “But over the next five years, shippers will need to get more progressive; they’ll need to work together more [with their motor carriers] and optimize their operations to a certain point. That should improve margins.”
Dave Osiecki, executive vice president and chief of national advocacy for the American Trucking Associations (ATA), noted that many shippers are “ramping up” the requirement that their “core carriers” install ELDs now so they are compliant well ahead of the regulatory implementation date.
However, the big challenge yet to come is when shippers demand certain time periods for service and those demands push up against a driver’s hours of service (HOS) limit, explained John Spiros, vice president of safety and claims management for Roehl Transport.
“Customers really need to understand the 14 hour rule now,” he said. “They are putting the onus on us [to be HOS compliant] but they need to be more driver-friendly.”
And it’s for those reasons that PGT’s Krohn thinks that motor carriers are “missing the boat” when it comes to pricing their services.
“We are too sedate when it comes to the supply/demand curve,” he stressed. “On the supply side, capacity is flat to down. So most carriers have pricing power; they are just not exercising it.”
Could the wide sweep of current and proposed regulatory initiatives now blanketing trucking actually help the industry achieve better long-term positioning on freight rates? That seemed to be the conclusion of more than a few of the speakers at the ALK 2016 Technology Summit held in Philadelphia this week.
“All these regulations are a godsend, for they are another supply-side restrictor keeping the supply of drivers down. We have to take advantage of that,” stressed Mike Krohn, vice president of operations for PGT Trucking.
Take electronic logging devices (ELDs) for starters: the mandate that imposes them on trucking takes effect December 2017, albeit with some caveats, but to the mind of Travis Rhyan, CEO and president of 10-4 Systems, they will affect overall capacity availability throughout the trucking network.
“This is only starting to unfold; it won’t really happen until the mandate is imposed,” he stressed. “But over the next five years, shippers will need to get more progressive; they’ll need to work together more [with their motor carriers] and optimize their operations to a certain point. That should improve margins.”
Dave Osiecki, executive vice president and chief of national advocacy for the American Trucking Associations (ATA), noted that many shippers are “ramping up” the requirement that their “core carriers” install ELDs now so they are compliant well ahead of the regulatory implementation date.
However, the big challenge yet to come is when shippers demand certain time periods for service and those demands push up against a driver’s hours of service (HOS) limit, explained John Spiros, vice president of safety and claims management for Roehl Transport.
“Customers really need to understand the 14 hour rule now,” he said. “They are putting the onus on us [to be HOS compliant] but they need to be more driver-friendly.”
And it’s for those reasons that PGT’s Krohn thinks that motor carriers are “missing the boat” when it comes to pricing their services.
“We are too sedate when it comes to the supply/demand curve,” he stressed. “On the supply side, capacity is flat to down. So most carriers have pricing power; they are just not exercising it.”
Driver Tip Of The Week
We want to help you make more money and ensure you are paid for the acitivites you are performing. Each week for the next 4 weeks we will be sharing tips with you on how to properly follow the steps necessary when putting in accessorials and any non driving pay.
Follow us as we post these tips each week. Let us know if our tips are helpful?
Sunday, June 19, 2016
The Western Network
We are also updating content for Truckload with the help of one of our Professional Drivers from the Western Network. Alec did a great job for the marketing team in Colorado. We can't wait to start seeing the content from the Centennial State.
The Great 28 Advertising Campaign
We've attached a sample of the photos from Darreus Chamblee's photoshoot on Wednesday. He was awesome and so easy to work with according to our marketing team. They even remarked that he is an excellent brand ambassador! We expect a great video, blog content, and advertising content from the time that the marketing team spent with Darreus.
Thursday, June 16, 2016
Rating Shippers/Receivers
We officially have 6 drivers testing the new rate shippers/receivers functionality on the DRIVE app. This pilot started June 15th. We believe we will our Professional Drivers utilize this tool to help rate the experience at each location they visit. It has already been communicated by several customers that this data is valuable.
Roadcheck 2016 Feedback in the Natural State
Here is exert from an article in the Arkansas Democrat Gazette today:
The Arkansas Highway and Transportation Department this week reported the results of a coordinated series of inspections on the state's highways last week. Between Tuesday and Friday, law enforcement officers randomly pulled over 637 trucks to see how the large vehicles were performing.
The numbers are daunting.
Out of that group, 149 were in such bad shape, were such a danger to other travelers, they were immediately taken off the road. The most common reason was brake problems.
"That's huge," said agency spokesman Danny Straessle. "These vehicles don't stop on a dime."
No, a fully loaded semi going 55 mph, and how many go that slow, will take about 5,100 dimes to come to a stop once the brakes are applied. That's about the length of a football field. The Highway Department also reported 67 drivers pulled from service. One on suspicion of drinking and driving, others for not documenting logbooks showing their driving time or for driving longer than regulations allow. Tired drivers are bad drivers.
Advocates for the trucking industry point to improvements, such as a drop in fatalities involving semis in recent years. That is good news indeed. But it should be a serious concern for trucking companies, independent contractors and state law enforcement, as well as other motorists, that 20 percent of these spot-checked trucks were so seriously impaired officers prevented them from continuing on their journeys.
We value the trucking industry, because so much of what they carry eventually makes its way into our homes and lives in positive ways. The industry provides livelihoods for millions of drivers and, beyond them, the industry supports even larger numbers in support of their mission. Northwest Arkansas has its fair share of trucking giants and they have histories as top-notch ventures.
Those trucks are a critical component of our North American economic strength. But, through lackadaisical maintenance or poor driver behaviors, they can also become dangers to those millions of other Americans on the road.
No cargo is so important, no route is so critical, that someone's life is worth trading.
The Arkansas Highway and Transportation Department this week reported the results of a coordinated series of inspections on the state's highways last week. Between Tuesday and Friday, law enforcement officers randomly pulled over 637 trucks to see how the large vehicles were performing.
The numbers are daunting.
Out of that group, 149 were in such bad shape, were such a danger to other travelers, they were immediately taken off the road. The most common reason was brake problems.
"That's huge," said agency spokesman Danny Straessle. "These vehicles don't stop on a dime."
No, a fully loaded semi going 55 mph, and how many go that slow, will take about 5,100 dimes to come to a stop once the brakes are applied. That's about the length of a football field. The Highway Department also reported 67 drivers pulled from service. One on suspicion of drinking and driving, others for not documenting logbooks showing their driving time or for driving longer than regulations allow. Tired drivers are bad drivers.
Advocates for the trucking industry point to improvements, such as a drop in fatalities involving semis in recent years. That is good news indeed. But it should be a serious concern for trucking companies, independent contractors and state law enforcement, as well as other motorists, that 20 percent of these spot-checked trucks were so seriously impaired officers prevented them from continuing on their journeys.
We value the trucking industry, because so much of what they carry eventually makes its way into our homes and lives in positive ways. The industry provides livelihoods for millions of drivers and, beyond them, the industry supports even larger numbers in support of their mission. Northwest Arkansas has its fair share of trucking giants and they have histories as top-notch ventures.
Those trucks are a critical component of our North American economic strength. But, through lackadaisical maintenance or poor driver behaviors, they can also become dangers to those millions of other Americans on the road.
No cargo is so important, no route is so critical, that someone's life is worth trading.
Industry leading Safety and Maintenance Cultures are alive and breathing at J.B. Hunt. Aren't you thankful that these two areas are not negotiable when you are driving by our vehicles on the highways every day?
IME Enterprises - Newton, Texas
Check out this great look from IME Enterprise. This is a PCS Carrier out of Newton, Texas. IME is co-owned by Mark and Marcus Bean. Our relationship includes 6 tractors with the plan to grow to 10+. This trucking company used to focus on construction and flatbed only. They were looking at diversification and partnered with J.B. Hunt Truckload. We really love how they send new drivers out on a current running truck for 2 weeks before giving them their own truck. It is known as a driver mentor program that aids in service and retention.
Monday, June 13, 2016
New Driver/Contractor/Carrier of the Month Swag!
In April Carlos was selected as our Truckload Driver of the Month for our Western Network. Truckload typically recognizes 3 asset drivers, 1 IC/LP, and a PCS Carrier each month. We have modernized the items that we send to our 5 winners each month. So, Carlos will be receiving 5 polo shirts designating him as a Truckload Driver of the Month, a framed certificate, and a handwritten note from our the support team here in Lowell. As an extra, we mailed Carlos a poster from the recent Western Network promotion of our driving job to internal employees.
Sunday, June 12, 2016
Large Truckload Fleets: Churn Rates Rise
This article was published in the May edition of Inbound Logistics:
The annualized turnover rate for large truckload fleets rose two percentage points in the fourth quarter of 2015 to 102 percent, the second straight quarter it was at least 100 percent and the first such streak since 2012, according to the American Trucking Association (ATA).
"This elevated turnover rate shows that the driver market remains a challenge for truckload fleets, " says Bob Costello. ATA's chief economist. "Obviously, attracting and retaining drivers remains a top concern for the industry. The rising turnover rate, coupled with anecdotal reports from carriers, shows what a premium there is on experienced, safe drivers," Costello says.
The annualized turnover rate for large truckload fleets rose two percentage points in the fourth quarter of 2015 to 102 percent, the second straight quarter it was at least 100 percent and the first such streak since 2012, according to the American Trucking Association (ATA).
"This elevated turnover rate shows that the driver market remains a challenge for truckload fleets, " says Bob Costello. ATA's chief economist. "Obviously, attracting and retaining drivers remains a top concern for the industry. The rising turnover rate, coupled with anecdotal reports from carriers, shows what a premium there is on experienced, safe drivers," Costello says.
Friday, June 10, 2016
I Shook Up The World
"Folks ask me what I'll do if I beat Liston and what I'll do if I don't, but I don't have the answer yet. I'm not too worried. I think I can make it in something else the same way I've made it in boxing. If things go the wrong way in the fight, I'll just wait a while. Summertime comes, flowers start blooming, little birds start flying and you wake up, get up and get out. You change with the times."
Great insight from someone so young. Little did he know how impactful his life would be across the world. He inspired a generation and became the most well-known human being on the planet.
The young fighter won the championship belt in a shocking 7th round TKO. They would meet again in 1965 and Ali would defeat him again in the first round with a controversial knockout punch.
Tuesday, June 7, 2016
Monday, June 6, 2016
The Fortune 500
J.B. Hunt Transport Services, Inc. announced today it has been named to the Fortune 500 list for the fourth consecutive year, moving up 18 positions to land the #416 spot in Fortune magazine’s annual ranking of America’s largest companies by revenue.
“J.B. Hunt is honored to be part of this year’s Fortune 500 list,” commented John Roberts, president and CEO. “Our employees focus on serving customers to build relationships and partnerships that strengthen and grow our business every day. Securing a spot on this list for the fourth consecutive year is a reflection of how successful their efforts have been and continue to be.”
J.B. Hunt has been recognized by Fortune magazine a number of times over the past decade. Some of their involvement with the publication includes:
- Named to the Fortune 500 in 2013
- Debuted on the list at #485 before moving up to #454 in 2014 and #434 in 2015
- Recognized as one of America’s Most Admired Companies seven times in the last decade
- Named one of World’s 12 Most Admired Trucking and Delivery Companies
Truckload Training
What is all that ruckus behind the curtains? It is Truckload training, that is what it is! Kayla Hubbell just finished training with three new members of our team. These new teammates include Whitney Wagner, Austin Plew, and Brady Suttles. They are new Dispatchers for our night team
Productivity Bonus Trending Up
Truckload numbers are improving related to our Productivity Bonus. We are seeing an increase in the number of drivers qualifying for our four week productivity bonus. As we continue to utilize new technology and smart phone apps, we are seeing a more efficient use of driving hours by our professional drivers. With added focus on accurate ETA's and providing on time service we will continue to see driver miles increase.
Our average weekly miles were down last week. This is to be expected when we face a holiday weekend. Our open truck count will immediately trend downward due to our transfer of 50 units to DCS in June/July. The newest productivity bonus is included on this scorecard. It was paid out to 200 drivers, the highest number since the March 12th bonus.
Sunday, June 5, 2016
State of the Trucking Union
With more large trucks on U.S. roads, traveling more miles and transporting more, the Federal Motor Carrier Safety Administration is working to measure the size of the industry.
Last week, the agency issued its 2016 Pocket Guide to Large Truck and Bus Statistics, which provides a snapshot on the state of the trucking and transport industries. The FMSCA believe the data can be used to devise policies that might help reduce crashes, injuries, and fatalities involving large trucks and buses.
Here are the highlights:
Registered Large Trucks:
The number of large trucks registered in the U.S. increased 3 percent in 2014 to nearly 11 million from the previous year.
Millions of vehicle miles traveled:
Commercial drivers operating in the U.S. in 2015:
In 2015, half of all commercial truck drivers operating in the U.S. were interstate drivers with a commercial driver’s licence, and 15 percent were intrastate CDL drivers.
Trucks continue to be the main mode of transportation for freight in the U.S., responsible for moving 14,547 million tons worth of cargo in 2013 — equivalent to 73 percent of all cargo weight moved that year. In 2012, trucks moved 13,812 million tons of cargo.
Most frequent driver violations in roadside inspections:
Truckers who failed to log, update, or provide accurate information regarding their record of duty status led to 326,818 driver violations during 2015 roadside inspections. It was one of the most frequent type of driver violations that year, according to a list of the top 20 in the report. There were also 136,585 hours-of-service violations, where drivers violated their time limits.
Crashes:
Of the 6 million vehicle crashes that occurred in the U.S. in 2014, 476,000 involved large trucks and buses — a 22% increase from the previous year. However, the number of fatal crashes involving larger trucks and buses decreased almost 5 percent to 3,649 in 2014. The estimated cost of large truck and bus crashes, including death, injury and property damage, in 2014 rose about 7% to $112 billion.
Industry Suffers More Job Losses
Transportation jobs experienced its fourth monthly loss in May, including the third decrease in trucking jobs. The overall transportation sector lost 500 jobs in May, according to the U.S. Department of Labor’s Bureau of Labor Statistics.
Since the beginning of the year, the transportation and warehousing sector has a net loss of 20,000 jobs. The truck transportation subsector experienced a decrease of approximately 2,400 jobs in May after the industry gained 700 in April and lost another 2,400 in March. Year-to-date, the trucking subsector has a net loss of more than 3,000 jobs.
For the second straight month, warehousing and storage subsector experienced the largest increase with 3,000 more jobs, followed by air transportation with an increase of 1,200. “Support activities for transportation” experienced the largest loss with 2,700 jobs eliminated from the economy.
Last year, the trucking industry suffered a loss in only two out of 12 months. Nearly 7,000 trucking jobs were eliminated last March and 4,000 eliminated in September. December’s increase of more than 23,000 jobs was the largest in 2015. Average hourly earnings for the transportation and warehousing sector were $23.03 for May – a 6-cent increase from April. Hourly earnings for production and nonsupervisory employees decreased 9 cents to $20.83. Average hourly earnings for private, nonfarm payrolls across all industries were $25.59, 5 cents higher from the previous month.
Compared with a year ago, average earnings have gone up by 2.5 percent. According to the report, the unemployment rate for transportation and material moving occupations is down to 6 percent from 7 percent last May. The overall unemployment rate for the country was down 0.3 percentage points to 4.7 percent. The number of long-term unemployed was down by 178,000 compared with the previous month, to around 1.9 million
Since the beginning of the year, the transportation and warehousing sector has a net loss of 20,000 jobs. The truck transportation subsector experienced a decrease of approximately 2,400 jobs in May after the industry gained 700 in April and lost another 2,400 in March. Year-to-date, the trucking subsector has a net loss of more than 3,000 jobs.
For the second straight month, warehousing and storage subsector experienced the largest increase with 3,000 more jobs, followed by air transportation with an increase of 1,200. “Support activities for transportation” experienced the largest loss with 2,700 jobs eliminated from the economy.
Last year, the trucking industry suffered a loss in only two out of 12 months. Nearly 7,000 trucking jobs were eliminated last March and 4,000 eliminated in September. December’s increase of more than 23,000 jobs was the largest in 2015. Average hourly earnings for the transportation and warehousing sector were $23.03 for May – a 6-cent increase from April. Hourly earnings for production and nonsupervisory employees decreased 9 cents to $20.83. Average hourly earnings for private, nonfarm payrolls across all industries were $25.59, 5 cents higher from the previous month.
Compared with a year ago, average earnings have gone up by 2.5 percent. According to the report, the unemployment rate for transportation and material moving occupations is down to 6 percent from 7 percent last May. The overall unemployment rate for the country was down 0.3 percentage points to 4.7 percent. The number of long-term unemployed was down by 178,000 compared with the previous month, to around 1.9 million
The Big Rig
In his new book “The Big Rig: Trucking and the Decline of the American Dream,” Steve Viscelli, a lecturer in the Department of Sociology at Penn, explains the decline of the trucking industry, which used to be one of the best working-class jobs in the United States.
More than 3 million people drive trucks in the United States. In fact, according to Steve Viscelli, it’s the No. 1 occupation in 37 of 50 states.
“Within that, the biggest employer is what’s called truckload general freight,” he says. “That’s long haul, meaning you’re driving more than 150 miles.”
Viscelli, who will be a Robert and Penny Fox Family Pavilion Scholar and a senior fellow at the Kleinman Center for Energy Policy this fall, knows a thing or two about trucking beyond penning a book about it. In 2005, he spent six months working for a for-hire carrier. For an average of 90 hours a week, his truck’s 53-foot trailer hauled a mishmash of material: pillows, steel coils—anything a pallet could hold.
“I usually started out in New York. I’d take beer to Michigan. In Michigan, I would pick up auto glass and drive it to Green Bay, and in Green Bay I’d pick up paper products and bring them to Mobile, Alabama. In Mobile, I’d pick up tires and bring them to Florida,” Viscelli explains. “You just do that for weeks. You don’t know if you’re going to get home on Thursday or Sunday.”
Through this on-the-job experience—what began as doctoral dissertation research—he learned that the Great Recession hit this industry, which acts as an economic barometer, in an interesting way. Unlike with product-based trades, trucking’s services can’t be stored. It’s what is known as derived-demand.
“As soon as there’s less demand, you have unutilized assets, which means everybody is going to start cutting rates to keep their trucks moving,” he says. “When rates start to go south in trucking, they go really south. Historically, that’s meant you always have big firms going into bankruptcy.”
This time around, though, that didn’t happen.
The industry now uses employees and independent contractors to drive trucks, and the latter group must cover all expenses, including truck payments, insurance, and fuel. For these owner-operators, for-hire carriers negotiate customer contracts, which typically comprise a per-mile pay rate and fuel pricing. Most carriers also include a surcharge—an extra per-gallon cost to the independent contractor—to account for dips and spikes. In 2008, per-gallon costs rose above $4, and the fuel surcharge couldn’t keep pace.
When they didn’t collect enough from customers, carriers shifted the burden onto contractors.
“In 2008, into 2009, you had thousands of drivers basically working for free,” Viscelli says. “I met drivers taking money from their wife’s income to buy fuel because as they saw it, they had equity in the truck.”
Almost no major trucking companies failed, he adds, and some started making money again within two years. Around a decade later, these businesses are recruiting again, reopening schools that at their peak trained 200,000 people. Turnover in this male-dominated field remains high—100 percent annually in some places—but according to Viscelli, trucking right now is generally profitable. He’s keeping his finger on its pulse, working on a policy proposal that could change the movement of freight around cities and maximize the efficiency of each truck.
His time studying the industry taught him it’s ever-changing.
“There is definitely a novelty of the job, so drivers coming in are very excited about the possibilities,” he says. “The problem is that [their] expectations are virtually never met.”
Friday, June 3, 2016
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