Doubt Cast Over Mexican Truckers' English Proficiency

Doubt Cast over Mexican Truckers’ English Proficiency
Friday, April 04, 2008

Mexican truck drivers, traveling throughout the United States under the patronage of a pilot program created to test how safe Mexican trucks are on U.S. roads, are required by law to demonstrate their English-language proficiency. However, according to a testimony on March 11th at a Senate hearing, U.S. Department of Transportation regulations allow those drivers to answer questions in any language other than English when proving they recognize U.S. highway signs.

Senator Bryan Dorgan, who has always been an opponent of the program, has expressed his concern over such a clear disparity between the legal requirement and that particular regulation, arguing that the Mexican truckers’ English proficiency is an integral component of the safety issue. In addition, he has accused the Bush administration of not requiring Mexican truck drivers to meet the same level of safety standards that U.S. truck drivers meet. Chairing the Senate Commerce, Science and Transportation Committee hearing, which was called to examine the six-month-old pilot program, Dorgan demanded an explanation from Transportation Secretary Mary Peters.

Peters admitted that during border inspections Mexican truck drivers are allowed to use any language that a U.S. inspector understands when answering questions to prove they recognize U.S. signs. However, she proceeded that inspectors determine the drivers’ English proficiency through other questions, such as asking them their names, what their trucks are carrying, and where they are going.

The Transportation Department's inspector general Calvin L. Scovel III told the panel that the road-sign test is only one factor that inspectors take into account while determining the Mexican truck drivers’ English-language proficiency. However, he acknowledged in an issued assessment report that the pilot program still suffers from some serious defects.

William Quade, associate administrator at the Federal Motor Carrier Safety Administration, said after the hearing that inspectors normally wait until Mexican truck drivers have demonstrated their English-language proficiency before they begin to ask them to identify signs. He adds that once the Mexican drivers’ English proficiency has been proven, the inspection needs to be carried on in any language that inspectors and drivers understand.

While opponents of the program have sought to shut it down through legislation and litigation, U.S. transportation officials state that a comprehensive inspection process confirms that Mexican trucks allowed in the program are just as safe as American trucks.

The Bush administration regards the program as a step forward toward more north-south trade between the U.S. and Mexico, a trade which would benefit the economies of both countries.

Saskatchewan Budget Focuses on Highways and Transportation Infrastructure

Saskatchewan Budget Focuses on Highways and Transportation Infrastructure
Friday, April 4, 2008

Finance Minister Rod Gantefoer handed down the first budget of the Government of Saskatchewan, which included record-high spending on highways. Gantefoer says that the $1 billion Ready for Growth Initiative is the first budget of the Saskatchewan Party and the largest infrastructure investment in the history of Saskatchewan; it focuses on ensuring that Saskatchewan enjoys safe roads in order to efficiently deliver goods to various markets worldwide, boost the provincial economy, and achieve sustainable growth.

The $1 billion Ready for Growth Initiative will increase transportation spending to $513 million, the largest Saskatchewan's transportation budget on record. Currently, the Highways and Infrastructure budget is up 15% from last year. Highways and Infrastructure Minister Wayne Elhard acknowledges that Saskatchewan is suffering from an infrastructure deficiency, a problem which has been addressed as a matter of urgency so that Saskatchewan people and goods move freely and safely throughout the province. As such, numerous, important plans, concerning building and repairing roads and highways, are currently underway.

The budget is inclusive of $137.5 million in funding allocated for upgrading thin membrane surface (TMS) highways, increasing access to Primary Weights on rural highways, twinning of Highway 11 between Saskatoon and Prince Albert, and linking Highways 1 and 16. In addition, the budget allocates $202.6 million for maintaining and repairing provincial highways. The budget further allocates $19.4 million for replacing and restoring aging bridges and culverts and another $5 million for helping rural municipalities improve municipal roads affected by truck traffic.

Thanks to Saskatchewan’s flourishing economy, $9.37 billion in revenue has been forecasted for 2008/2009, in turn prompting the government to invest in $8.57 billion in expenditures. Gantefoer concludes that the set budget is well-balanced and includes a $250 million debt reduction to help Saskatchewan be in a better position for many years to come.

Con-way Freight Awarded Top Safety Honors

Con-way Freight Awarded Top Safety Honors
Sunday, March 30, 2008

Con-way Freight was honored at the Michigan Trucking Association (MTA) Annual Safety Awards, which was held in Lansing in late February. For the second year in a row, the MTA awarded Con-way a fleet safety plaque for Outstanding Achievement in Highway Safety in the General Commodities division in recognition of its exemplary safety record and practices.

Based in Ann Arbor, Michigan, Con-way Freight is one of the leading less-than-truckload (LTL) carriers. It offers LTL freight delivery across North America as well as international less-than-container (LCL) ocean Freight delivery from Asia to the United States. Con-way Freight is a subsidiary of Con-way Inc., a $4.7 billion freight transportation and logistics services company.

Walter G. Heinritzi, executive director of the Michigan Trucking Association, said that Con-way Freight has clearly shown an on-going commitment to safety, and the MTA is glad to have the opportunity to honor the company again for its outstanding achievement. On the other hand, John G. Labrie, president of Con-way Freight, said that winning this award for two consecutive years is a living proof that Con-way regards safety as a top priority, and its drivers share this view by adhering strictly to safe driving practices.

Sponsored by the Great West Casualty Company, one of the largest insurers of trucking companies in the United States, the Annual Safety Awards are presented to their respective winners based on certain safety criteria that include covered miles, types of driving, and number of accidents, if any.

The Lansing-Based MTA has been serving Michigan's trucking industry since 1934. It aims at enhancing the trucking industry's image, promoting highway safety, and collecting, maintaining, and distributing information on the trucking industry.

Talk of Renegotiating NAFTA Worries Truckers

Talk of Renegotiating NAFTA Worries Truckers
Sunday, March 30, 2008

Both Hilary Clinton and Barack Obama have made campaign promises to renegotiate the 14-year-old North American Free Trade Agreement (NAFTA). Adopted back in 1994, NAFTA has sparked interest in the U.S. trucking and developed duty and tariff-free open trade among the U.S., Mexico, and Canada. The Democratic candidates are to renegotiate NAFTA in an attempt to make it more favorable on labor and environmental basis. However, for truckers, any talk of renegotiating NAFTA is deeply troubling and may pose a threat to its existence.

ATA President and CEO Bill Graves spoke in favor of NAFTA and other free trade agreements, stating that free trade acts benefit American consumers. Likewise, free trade has been of help to the U.S. trucking industry. Indianapolis-based Celadon attributes 51% of its total revenue to cross-border movements in and out of Canada and Mexico. With the growth of NAFTA trade, Caledon’s growth rate in revenues from its north-south trade in and out of Mexico increased significantly from $399 million in 2005 and $414 million in 2006 to $502.7 million in 2007.

According to the Department of Transportation’s Bureau of Transportation Statistics, surface transportation trade between the United States and its NAFTA partners, Canada and Mexico, saw an increase of 4.9% in 2007 over that of 2006, tallying an annual record of $797 billion. Total truck trade between the U.S. and its NAFTA partners grew significantly from $265 billion in 1994 to $554 billion in 2007, $280 billion of which came from electronics, machinery, nuclear reactors, and motor vehicles. The NAFTA trade is also balanced between imports and exports. This is important to the U.S., which as of 2006, ran a trade imbalance of $763.6 billion, up from the $716.7 billion recorded in 2005.

NAFTA continues to face further challenges. Congress has criticized the Mexico-U.S. cross-border trucking provisions and has voted to stop all funding for a pilot program that has allowed a small number of Mexican truckers to operate in America. Senator Byron Dorgan described the pilot program as being unpopular with safety advocates, the Teamsters Union, and carriers from either country.

The pilot program was supposed to open the door for U.S. and Mexican carriers to operate freely on both sides of the border. Although the pilot program allows up to 100 carriers from Mexico to apply for operating authority in the U.S., only 16 Mexican carriers with 55 trucks have sought such operating authority. Likewise, out of the 1.1 million interstate and intrastate trucking companies registered to operate in the U.S., only five U.S. carriers have applied for and received authority to operate throughout Mexico, and, out of the 8 million trucks registered in the U.S., only 45 trucks are currently operating in Mexico. Such small numbers are attributed to the fact that carriers are well aware that Congress could eliminate this limited one-year demonstration project at any time.

Although the U.S. and Mexican governments have established two supervisory groups to monitor the demonstration project, resolve its problems, and evaluate its results, safety advocates, environmentalists, and labor groups are still nervous over the potentially unsafe Mexican trucks. On the other hand, Mexican carriers feel discriminated against as they recognize that their fleets have to meet a much higher level of safety requirements than those of U.S. carriers.

Any changes to NAFTA now would probably hurt the north-south trade among the three NAFTA nations, as some on-going business in Mexico could move to either Asia or Latin America. Trucking executives, however, prefer not to worry too much about NAFTA’s future; the matter is out of their hands, and, in fact, it remains to be seen whether any talk of renegotiating NAFTA is merely campaign rhetoric or an actual threat to its existence.

Plow Truck Drivers Benefit from Snow Season

Plow Truck Drivers Benefit from Snow Season
Sunday, March 30, 2008

Snowing relentlessly, this winter has been one of the snowiest on record. While most people are fed up with the snow, independent plow drivers have another say; they really enjoy the snowy winter.

For plow truck drivers, the more the snow comes down the more money they make. Although snow plow drivers and plow business owners do acknowledge that the snow damages and wears their trucks down, they say that it is very financially rewarding, and its benefits far outweigh its risks.

City snow plow drivers keep streets clear and traffic flowing; independent snow plow drivers keep parking lots and driveways safe.

Will the Tax Stimulus Package Uplift the Trucking Industry?

Will the Tax Stimulus Package Uplift the Trucking Industry?
Monday, March 24, 2008

Starting in May, U.S. taxpayers will begin receiving stimulus checks from the U.S. government worth $100 billion in total. Congressionally mandated, the tax stimulus package aims at pushing the economy forward by encouraging consumers to indulge themselves in shopping sprees for clothes, travel, home appliances, and other luxuries. Trucking executives hope that the $100 billion economic stimulus package will improve the overall economy and break the deadlock of the supply chain caused by the increased cost of fuel.

Bob Costello, an economist for the American Trucking Associations, believes that the stimulus package will boost the overall economy, and consequently the trucking industry will see modest growth by the second half of the year. Based on Costello’s calculations, freight tonnage will see an increase of over 2 percent in the second quarter, 1.5 percent in the third, and nearly 3 percent in the fourth. Costello believes that this tax stimulus package is different from the $38 billion tax rebate enacted in 2001 in part due to its obviously much larger number and its built-in income caps, which ensure that it will go to those who are most likely to spend it.

On the other hand, Chaz Jones, Morgan Keegan & Company Inc. analyst, questions whether the stimulus package will ever boost the U.S. economy, believing that, in a $12 trillion economy, it will not have any noticeable effect. With more than half of the freight hauled by U.S. trucking companies coming from the construction, automotive, and retail industries, Jones believes that by next summer these sectors will not see any upturn in business. Jones states that inventories run short out there, and retailers are well aware of the prospects of the consumer and overall economy; a tax stimulus will simply not give much of a boost to sales.

While air freight may get some boost as consumers spend their tax rebate on line, the truckload and less-than-truckload sectors are expected to see big gains that could last up to three or four months at least.

Fuel prices, which as of March 10th saw an increase of 42% over last year, along with concurrent freight slowdown, which is hitting the trucking industry, are putting truck drivers out of work and at a near risk of losing their jobs. Mike Bruns, a Comtrak Logistics president, says what is likely to happen in the days ahead is that freight levels will increase, and drivers will continue to go out of business, resulting in a condition in which drivers are less than freight, and eventually an excess of goods will be out there with no one to haul it.

Facing increased fuel prices, shippers try to use fuel-efficient modes whenever they can. Truckloads are being diverted to the railroads, which are three times more fuel-efficient. Last week, Con-Way Inc. limited its trucks speed from 65 mph to 62 mph in an attempt to save both fuel and the environment. In this sense, the fuel savings will add up, and the trucking industry will be more sustainable and environmentally conscious.

Press Focuses on the Downside of Trucking

Press Focuses on the Downside of Trucking
March 24, 2008

The trucking industry is often surrounded by negative perceptions. Recently circulating news headlines about bald tires, faulty brakes, and out-of-service trucks draw a tainted image of the trucking industry. Only accentuating the negative, these headlines fail to capture the positives of the industry.

Between 1999 and 2005, the injury and fatal crash rate of large trucks in British Columbia has decreased by more than 16%. In addition, mechanical problems nowadays account for less than 5% of injury and fatal truck crashes.

The trucking industry is filled with efficient people, who do not make headlines. They quietly and safely push the economy forward by delivering bread and milk and hauling hospital supplies, consumer goods, and building products.

As in every other industry, the trucking industry is plagued with some people who run after easily earned money. Some negligent owners and drivers employ substandard trucks, which can endanger others as well as themselves. Such people should be duly denounced and punished. Moreover, they damage the reputations of efficient and conscientious men and women in the trucking industry who, having a strong sense of personal responsibility, choose to invest in maintenance and state-of-the-art equipment to grow their business.

Negligent and irresponsible companies opt to cut prices to increase business, a decision which leaves them with nothing to spend on maintenance. Consequently, the state of trucks is deeply compromised along with the quality of service. Shippers need to understand that not only does pricing cover a driver's time and fuel costs, but it is also indicative of the quality of service. As such, shippers should demand quality service and be willing to pay for it. When shippers care to compare the quality of service with its corresponding cost, both trucking companies and the public will benefit.

O&S Trucking Inc. to Open in Ohio

O&S Trucking Inc. to Open in Ohio
March 24, 2008

O&S Trucking Inc., a worker-owned firm based in Springfield, Missouri, said that plans of opening its first branch hub in Springfield, Ohio are afoot, and the company is expected to be fully operational in Ohio by the 1st April.

Brian Underhill, vice president of Ohio operations for O&S Trucking Inc., spoke in a release of the company’s initial plan of opening a branch in Columbus. The company said that such a plan was later ruled out due to the 11-hour dispatch time from headquarters, which, if the law limiting 11 hours of driving in a 14-hour time period changes, could prevent a driver from reaching Columbus in one shift.

Underhill and a fleet manager will take charge of Ohio operations. By the end of the year, a third employee will possibly be hired along with 50 drivers.

O&S Trucking Inc., which currently has 100 employees in Missouri and 300 company drivers, owner-operators and lease-purchase drivers, hauls refrigerated trailers. Its business extends from Oklahoma City in the west to Maine in the east and from North Carolina in the south to the Great Lakes states in the north. Its clients include Dole Food Company Inc., Kraft Foods Inc., Tyson Foods Inc., and Reckitt Benckiser PLC.

Driver Competence Essential to Safe Driving

Driver Competence Essential to Safe Driving
March 24, 2008

The most important safety feature a car or truck can have is the presence of a safe and attentive driver behind its wheel. Most traffic accidents happen due to a lack of attention on the driver’s part. Driving under the influence, drowsy driving, phone use and other electronic distractions, and emotional strife contribute to most accidents on the road.

Although a safe car or truck is vital to safe driving, it is inherently not to blame for accidents on the road. While most new vehicles are safe, within the parameters of engineering and design intent, too many drivers behind the wheel are not; their lethargy and less than perfect commitment to the act of driving are the cause of much trouble.

Safety technology only serves a competent driver well; an incompetent driver can never put the design intent of any safety device to use.

Owner-operators Struggle to Keep Business Afloat

Owner-operators Struggle to Keep Business Afloat
Wednesday, March 19, 2008

Trucking’s owner-operators have been hit with high diesel prices, cut loads, and lower shipping rates. The self-employed drivers are almost going bankrupt and seem to be at the risk of losing their jobs.

The housing decline and less consumer spending have cut into loads, and the extra trucking capacity at hand is causing freight rates to spiral downward. In addition, diesel prices, which are always higher in winter, have experienced an astronomical spike, doubling over the past four years.

According to the Department of Labor, nearly 9% of the nation’s 3.4 million truck drivers are independent owner-operators. John Saldanha, who teaches logistics at Ohio State University, said that trucking will be deeply affected if owner-operators ever lose their jobs; the trucking scene will turn into a group of regional and national oligopolies that, once the economy revives, would send shipping prices higher.

On the other hand, business looks far more promising for the large public trucking companies as they have had their stocks climb since January. Big trucking companies, like J.B. Hunt Transport Services Inc. and YRC Worldwide Inc., tend to buy everything from fuel to tractors in bulk; as such, thousands of gallons of diesel are bought at a time on the commodities market to be stored later on.

In the end, owner-operators are left feeling neglected and on the fringe more than ever. In order to survive in the business, truckers call for caps on diesel prices, or tax credits for them and further constraint for intermediaries who broker truck loads.

Annually, rumors of a nationwide truck strike circulate. In January, some truckers kept their trucks off the road for a week in the hope that a week’s strike might be what they need to not ultimately lose their jobs.

Harbor Trucking Capacity in Southern California to be Cut in Half

Harbor Trucking Capacity in Southern California to be Cut in Half
March 19, 2008

The harbor trucking capacity in Southern California could experience a shortage of around 8,350 trucks and owner-operators by October due to conflicting Clean Trucks programs and the federal Transportation Worker Identification Credential program.

Addressing the 8th Annual Trans-Pacific Maritime Conference, John Husing, a Southern California economist who studied the harbor trucking scene in 2007, said that at present nearly 16,800 trucks arrive regularly at the ports, but this capacity is expected to be cut in half by this fall for three reasons: many drivers will fail to qualify for the TWIC biometric identification card, Clean Trucks programs of the ports of Long Beach and Los Angeles are conflicting with one another over the use or non-use of the employee-driver model in the harbor, and all trucks built before 1989 will be banned from the harbor by this fall as they no longer meet the ports’ new emission standards.

Qualifying for the TWIC certification requires drivers to demonstrate proof of legal residency in the United States, a requirement which, according to recent surveys conducted by Husing on behalf on the ports, may drive 15% to 22% of the drivers to not even apply for a TWIC card at all.

Confusion further surrounds the harbor trucking scene. In February, a Clean Trucks program that does not require the use of employee-drivers was approved by the Port of Long Beach. Having paired up with the Teamsters Union and pushing for the unionization of harbor trucking, the Natural Resources Defense Council has threatened to seek legal ramifications against the port over such an issue.

On the other hand, the Port of Los Angeles is expected to release, in the next few weeks, its own version of Clean Trucks program, which is expected to require the use of employee-drivers. Curtis Whalen, executive director of the American Trucking Associations’ Intermodal Motor Carriers Conference, said that thousands of owner-operators will lose their jobs if Los Angeles adopts such an employee-driver model. If the Port of Los Angeles ever releases a Clean Trucks program that requires licensed motor carriers to use only employee-drivers, the trucking industry will take legal action against the port. Whalen stated that ATA could sue the Port of Los Angeles under the federal preemption clause that asserts the federal government’s authority to regulate rates, routes, and services in interstate transportation. ATA could also resort, in its dispute with the Port of Los Angeles, to the Federal Maritime Commission, which holds the responsibility of preventing discrimination in port transportation.

To cope with such an expected shortage, Husing said that more than 1,000 trucks will be added to the harbor later this year. Husing, who previously thought that compromise was within reach, is now no longer optimistic that the ports can work out their differences and agree on a joint Clean Trucks program by the Oct 1st deadline.

Clean Truck Program Requested Agreement Opposed by the IMCC

Clean Truck Program Requested Agreement Opposed by the IMCC
Sunday, March 16, 2008

An agreement being sought after by the ports of Los Angeles and Long Beach and their terminal operators, aiming at implementing the ports' Clean Truck Programs, has been opposed by the American Trucking Associations' Intermodal Motor Carriers Conference (IMCC), which has filed written comments before the Federal Maritime Commission (FMC) calling for the rejection of such an agreement. The agreement would grant anti-trust immunities to both parties, which would enable them to discuss and settle on the criteria and procedures upon which they determine whether trucks, cargos, and equipment are to be admitted or not to any terminal at the port.

The IMCC has opposed the agreement on the basis that it would be unreasonable under the Shipping Act to let port tenants abuse such a “blockade provision”, which would leave the door open for them to enforce an unlawful concession on passers-by. The IMCC has further stated that such an agreement between the ports and their terminal operators should also be rejected on the foundation that it fails to include or mention motor carriers with a lawful right to access the port by authorizing terminal operators to unlawfully block port drayage operators.

On February 19th, the Port of Long Beach approved its own version of the Clean Truck Program, which does not require port trucking companies to use only employee-drivers. On the other hand, the Port of Los Angeles has been on behalf of the idea that port trucking companies should use only employee-drivers, and the IMCC says that including such a requirement in the Clean Truck Program of the Port of Los Angeles is not out of the question. With its own Clean Trucks plan, the California Air Resources Board is already taking certain measures to ban high-polluting trucks.

The IMCC believes that the ports may claim their role as sole proprietors in an attempt to be exempted from preemption by federal law. The IMCC has argued against such a claim stating that the goals of the ports' Clean Truck Programs are not proprietary in nature as they do not take into account the ports’ obtainment of goods, but instead seek to affect broader social regulation such as the income, health, and well-being of truck drivers.

The above comments filed by the IMCC only seek to convince the FMC to reject the requested agreement between the ports and terminal operators. However, they also provide a further insight into the kind of argument to which IMCC can resort in case of any future litigation.

Truck Driving No Longer Canadian Males’ Top Drawing Job

Truck Driving No Longer Canadian Males’ Top Drawing Job
Sunday, March 16, 2008

Over the five-year period between 2001 and 2006, a number of changes in Canada’s labor force took place. According to Statistics Canada's 2006 census report on Canada's labor force, trucking, for the first time in decades, is no longer Canada’s largest employer for Canadian males. Replacing truck driving as the most common occupation among males was being a retail sales clerk with reportedly 285,800 men working as retail salesmen. Truck driving came in second with 276,200 men working as truck drivers.

In terms of absolute numbers, the retail sector was the fastest-growing occupation as it saw its numbers increase by 132,300, the largest increase of all occupations. The second fastest-growing occupation belonged to construction and health care industries. Coming in second place, construction trades helpers and laborers saw an increase of 52,300 in their number, with much of the growth coming from British Columbia and Alberta, the former of which is experiencing a hot real estate market due to the preparation for the upcoming 2010 Olympic Winter Games. Cashiers increased by 43,300, a number which, according to Statistics Canada, reflects the growth in consumer spending in retail stores.

In terms of percentage, the oil and gas industry in Alberta, though still relatively small in numbers compared to other sectors, saw an increase of 78% in its numbers of oil and gas well drillers, testers, and related workers to 11,500, the largest percentage increase of all occupations.

On the other hand, a number of occupations showed depreciation. For instance, textile manufacturing saw sewing machine operators decline by 18,300 or 32.7%. Declining as well, over the past five years, was the number of metal fabricators and steel workers.

Data on labor mobility showed that 563,000 people, or 3.4% of the total labor force, moved to a different province between 2001 and 2006, with the highest mobility rates coming from the territories and Alberta.

Due to the increased tendency for older workers to continue working, data showed that, in 2006, those aged 55 and older constituted 15.3% of the total labor force as opposed to the 11.7% they represented back in 2001. Additionally, for the very first time, the median age - the middle value in a sequence of numbers - of the labor force surpassed 40 years, rising from 39.5 years in 2001 to 41.2 years in 2006.

Truck’s Loose Wheel Paralyzes Local Hockey Coach

Truck’s Loose Wheel Paralyzes Local Hockey Coach
March 16, 2008

Best Transfer, a trucking company based in Puslinch Township, south of Guelph, Ontario, has been charged with “wheel separation from a commercial motor vehicle” under the Highway Traffic Act after a tire from one of their trucks came loose and crashed into a vehicle, paralyzing 47-year-old Marshall Hogan, a long-time minor hockey coach and a former sportsman of the year in Smiths Falls.

On February 1st, two rear wheels came free from one of the company’s tractor-trailers, striking a pair of vehicles on Highway 15 north of Smiths Falls. While the first tire just bounced off some woman’s Ford Focus, causing her no injury, the second tire smashed Marshall Hogan’s Kia, paralyzing him in the process.

If convicted, Best Transfer could face a fine of up to $50,000. The driver of the truck, 40-year-old Michael Vanier of Carleton Place, has already been charged with operating an unsafe commercial vehicle and, if found guilty, could be fined between $400 and $20,000.

Rising Fuel Costs Suspend General Delivery’s Trucking Service

Rising Fuel Costs Suspend General Delivery’s Trucking Service
March 16, 2008

Trucking business across the country is being hit hard by high diesel fuel prices, and Fairmount-based General Delivery Inc. is no exception. GD president, Chip Thompson, says that with last week’s diesel prices of $3.67 a gallon, the company was paying between $8,000 and $10,000 a day just on fuel for 40 trucks, keeping in mind that a gallon allows trucks to travel 6 miles only.

As a result, the company had to shut off its over the road trucking service, which has been a part of its business since 1950, and the 29th February witnessed the company’s last trucks on the road. Thompson has expressed his sorrow over how the company’s trucking service has come to a halt after 58 years, but the high fuel prices forced the company to come to such a decision.

Although the company is currently working on some restructuring, it is still in the business of repairing trucks and trailers.

Auburn Repairs Roads to Ease Traffic Pressure

Auburn Repairs Roads to Ease Traffic Pressure
Thursday, March 13, 2008

Big trucks as well as school buses, fire trucks, and growing commuter traffic are the cause of severe stress on the roads according to a report released by the Auburn Citizen's Arterial Task Force, which was commissioned by City Council in 2007. In order to face this overgrowing concern, Auburn has passed on several regulations to reduce truck traffic in the city, one of which is that tractor-trailers are banned from A Street Southeast and residential roads in the city.

Transportation issues are of extreme importance in the city nowadays, and Auburn officials are racing to repair damaged roads in order to reduce the stresses the city streets are facing. Through its Save Our Streets program, created in 2004 to maintain and repair local streets and costs an average of $2 million a year, the city has upgraded and repaired, since 2005, an average of eight miles of local roads a year. Later this year, streets with minor damage, including 22nd Street Northeast and 25th Street Southeast, will be maintained and updated. Next year, streets with the worst damage will be repaired when the city’s plans to set up new sewage and utility lines in areas that are also in need of repaving are realized.

With their manufacturing base growing rapidly over the past few decades, cities like Auburn, Kent, and Renton have been deeply affected by the increased traffic. Many of the roads in these cities were never designed for this kind of traffic in the first place. Most of Auburn’s roads were designed for passenger cars, not for heavily loaded big trucks. City leaders believe that identifying the problem areas in Auburn's streets is not the issue, but having the necessary funding to act on and fix all of them always proves to be an obstacle.

In their report, the Auburn Citizen's Arterial Task Force estimated that a budget of $85 million is required to repair and upgrade the city’s roads. Even though trucking companies are expected to pay state fees and taxes, Auburn officials say the money has not been passed on to the city level.

On the other hand, Auburn’s truck drivers are handling traffic pressure as best as they can. Bart Lutton, terminal manager for Peninsula Truck Lines operations in Auburn, Bellingham, and Bremerton, stated that the 81 drivers working in the Auburn warehouse always leave early in order to make timely deliveries in the area. Alternatively, if allowed to use city streets to make deliveries, drivers with Peninsula Truck Lines believe they could save several hours a week. However, having been banned from taking shortcuts through residential neighborhoods, drivers have to contend with getting stuck in the traffic for as long as it takes.

Challenger Motor Freight Adds Top Awards to its Arsenal

Challenger Motor Freight Adds Top Awards to its Arsenal
March 13, 2008

Challenger Motor Freight has been winning plenty of top awards as of late. The company has been awarded Platinum status in Canada’s 50 Best Managed Companies competition, an achievement which means that Challenger Motor Freight is regarded as one of Canada’s best companies for the seventh consecutive year. The award is based on an accurate and independent analysis of management skills and practices.

Challenger has also won the prestigious Johnnie Walker Blue Award for the second year in a row. The award is presented to the overall Carrier of the Year, based on four performance criteria: timely pickup, timely delivery, load tender acceptance percentage, and EDI compliance. Adding a third award to its arsenal, Challenger has just recently won General Motors award for Best FAST Carrier Performance in 2007 with more than 98% fast shipments out of last year’s 18,288.

Dan Einwechter, chairman and CEO of Challenger Motor Freight, refuses to let the company’s business taper off now after winning those awards. Instead, he is expanding his Montreal terminal to ease the increasingly overwhelming east-west traffic and is planning a remarkable development in intermodal transportation.

Launched back in 1975 as a one-truck operation, Challenger has grown now into a company which is ranked fifth on the Today’s Trucking Top 100 list, for the second consecutive year, with 1500 tractors and 3500 trailers.

With an efficient logistics division, warehousing services, and 650,000 square feet of warehouse space, Challenger has excelled in air and sea freight-forwarding as well as third-party freight management. Challenger has been relying on the truckload, LTL, and special trucking operations as its stock in trade for so many years. Additionally, the company sells used trucks in good condition to customers all over the world.

The company is still specializing in the north-south traffic. Choosing to grow the business somewhere else, Einwechter says that he has reduced the company’s cross-border work as well as transportation of automotive parts in recent years. On the other hand, Challenger has almost tripled east-west traffic between central Canada and Alberta and British Columbia in the last 2 years. In Vancouver, the company has been doing a lot of drayage work and de-stuffing containers.

Having had to adapt to a changing market, Einwechter admits that the business environment, nowadays, does not look so promising. The company managed to replace $60 million worth of business over a 24-month period up to last year. Behind this success is a talented and hard-working staff.

Business has abated these days, and it seems like 2008 will see smaller business than usual for Challenger. However, Einwechter is still hiring drivers and is planning to buy 150 new Volvo tractors with I-Shift automated transmissions.

Challenger has always been known for its passion for new technologies. In this sense, Einwechter happily announces that the company is about to receive five new Peterbilt tractors equipped with new gadgets, including the new Paccar MX engine.

There is no doubt that the top awards Challenger has recently won is a living proof of its success as a trucking company with an entrepreneurial edge in a very wide-ranging enterprise.

Trucking Companies Hit by Elevated Diesel Fuel Prices

Trucking Companies Hit by Elevated Diesel Fuel Prices
March 13, 2008

Local trucking companies are faced with the ordeal of having to adapt to the constantly fast-climbing fuel prices across the nation.

Rich Ferguson, terminal manager of Brilliant-based Fraley & Schilling Inc., conceded that, with elevated diesel fuel prices, the company’s ability to profit has been deeply affected. However, he said that his company has not resorted to cutting down the number of available trucks like other companies in the tri-state area have. Actually, the company is enjoying a very strong run in business in the area and is actively seeking more drivers.

Still, with diesel prices rising, it has become increasingly difficult for his company to recover those costs. Ferguson added that recent economic conditions are to blame for the decreased demand for trucking services in the Midwest. He expressed his concern over how the weak dollar makes imported goods more expensive and consequently how it is getting in the way of importing more goods from other countries.

Ferguson pointed out that Fraley & Schilling Inc. is indeed facing two problems when it comes to demand. The first of which is owing to the fact that the trucking service is not in high demand as it was before, and this subsequently affects the company’s ability to fix the prices of its services. The second is that the demand for trucking service is usually Truckingsubstandard in some areas around this time of year. The demand for transporting building products, for instance, has waned off at this time of year.

Facing a battle of his own is Joe Stenger, chief executive officer of Barnesville-based J.W. Stenger Trucking, who mentioned that the elevated price of diesel fuel has hit his company. A key component of the company’s variable cost of operation, diesel fuel’s increased cost can be passed along as fuel surcharges. However, erratically fluctuating fuel prices are causing this once stable system to spin out of control. He added that with the fuel surcharge often being lower than it should be, the company’s profits have diminished. Still, the company does not make any fewer deliveries as it transports a wide variety of goods.

Besides passing along fuel surcharges, Stenger is actively conserving fuel. New ways of preserving fuel are being examined, and with no-idle systems and satellites having been set up in each of the company’s trucks, drivers will not have to run their trucks while resting overnight and their performance will be closely monitored as well.

Stenger and Ferguson share the same point of view regarding the fact that elevated diesel costs will not cause shortage of goods, and consumers, they believe, should not be concerned about rationing products. There are still many trucks available to transport goods, and the supply will always be there. Stenger also acknowledged the fact that consumers will have to pay considerably higher prices for living necessities and goods delivered by his company, and these higher prices may prove to be a hurdle for them. Consumers will resort to rationing only when they are unable to pay the goods’ higher prices, and rationing will eventually be common for most families once credit card companies do not step in for help.

New Transportation Infrastructure Improvement Plan Proposed

New Transportation Infrastructure Improvement Plan Proposed
March 13, 2008

New York State’s Department of Transportation is offering $175 Billion improvement plan for updating and repairing its transportation infrastructure. With the deterioration of New York’s roads, bridges, railroads, and ports threatening many businesses that rely on them, this much-needed transportation infrastructure improvement plan is deemed essential for the state’s long-term economic prosperity and well-being.

Tioga Hardwoods Inc., operating in Owego and Berkshire, uses trucks to transport wood from and to sawmills, averaging 250 truck loads per month. After drying and separating wood, the company eventually sells it. President and co-owner of Tioga Hardwoods Inc., Kevin Gillette, said that reliable transportation is crucial for his business to survive. Transportation is also a hot topic among companies that are planning a move to the region.

Addressing this issue, Kendra L. Adams, Deputy Director of the New York State Motor Truck Association, confirmed that updating and repairing the state’s transportation is of high priority. Trucking is a big business in New York - more than 37,134 trucking companies are operating from New York - and transported goods need to arrive on a timely manner or else the jobs of 516,500 employees of the trucking industry will be jeopardized. With roads becoming more and more congested, timely deliveries have been unduly hindered and this has cost the trucking industry a lot of money. As nearly 2,950 bridges will become deficient in the 10 years to come, highway funding is now of key importance to the industry.

Kevin Gillette stated that faster rail service can be a feasible option for his company if only train speed improves. Bruce Lieberman, president of Railroads of New York and chairman of New York and Atlantic Railway, said that about 1.2 billion tons of goods, including agricultural grains, wood, paper, steel, stone, and chemicals, were transported via New York railroad services in 2006. Many tracks within the state are old and congested, and with the number of goods in need of transporting expected to increase by 70% in the next 15 to 20 years, the rail option has emerged as a necessity. Lieberman said that a five-year plan has been laid out by his organization demanding railroad yard expansions to allow more goods to be hauled in addition to repairing and upgrading already existing tracks.

Air travel is also a sought-after aspect of transportation and option for hauling goods. According to Douglas Barton, Tioga County Department of Economic Development and Planning Director, although the Greater Binghamton Airport has undergone some improvements, it hasn’t been the focus of attention as of late. Nowadays, having access to air travel is as important to business as was having access to highways in the past.

Repairing and upgrading New York’s transportation items need both time and funding. The Department of Transportation is estimating that the transportation infrastructure improvement plan will take 20 years and $175.2 billion dollars to be completed. The Department of Transportation commissioner Astrid C. Glynn said that the federal government will need to provide a major amount of the funding. Once Congress renews its Federal Surface Transportation Act in 2009, the State of New York needs to seek the authorized funds in the legislation to provide the adequate funding needed for this plan. The Department of Transportation also scheduled public conferences throughout the state in order to enlighten the public about freight transportation.

The Department of Transportation’s plan needs to be carried out as soon as possible. Glynn said with an annual inflation rate of 9.2% on construction costs, a prolonged duration between planning and implementation can cause severe loss of value for the dollar and catastrophic consequences on the plan’s finances. Glynn added that any federal funding New York’s Department of Transportation receives will have to be distributed geographically. Subsequently, with a range of proposed projects all over the state, projects must be prioritized in terms of importance.