Friday, March 13, 2009

Honoring the Saviors

Honoring the Saviors
August 21, 2008

It is difficult to travel the United States and not find a museum or Hall of Fame that honors and pays tribute to great individuals who have made a lasting and memorable contribution to the history of America. Some of those honored are veritable legends, their stories known to every child in school. Others are less known, their glorious achievements, nonetheless, being charted and remembered by caring historians, ensuring that future generations will carry the torch of history.

In some cases, important aspects of history might be totally obliterated from our collective memories, were it not for the efforts of a devoted minority.

Travelers to Memphis, Tennessee make their way to Graceland, the mansion of entertainment legend Elvis Presley. More than half a million visitors make their way to Graceland each year, making it the second most visited "museum-home" in America (the White House is first).

Unknown to many Americans, though, is that Tennessee is also home to a museum that honors an important part of our lives that we often take for granted.

Chattanooga, Tennessee is a city that played an important role in transport history. During the heyday of the railroads, the city was a major transportation hub, being a terminus for many railway lines and river transport systems.

As the age of railroads faded and motor transport became supreme, Chattanooga became the birth place of one aspect of motor transport that cannot be ignored.

More than 10,000 visitors a year visit one of Chattanooga's major tourist sites – the International Towing and Recovery Hall of Fame and Museum. Curator Jim Starry maintains this one of a kind museum. The first tow truck wrecker was designed and used in Chattanooga in the early 1900's. Since then, tow trucks have become an indispensable part of our lives.

The museum is stocked with some of the earliest models of tow trucks, collected from various parts of the world. The Hall of Fame pays tribute to the best and brightest of the tow truck world, many of whom have literally put their lives on the line to save drivers in distress from dangerous situations.

In order to qualify for a spot in the Hall of Fame, one must be in the business for a minimum of 20 years, or invented something pertaining to the towing business, says Curator Starry. Similarly, the Hall of Fame looks for those towing professionals who are active members of their communities, giving of their time and resources to contribute to the benefit of others. Towing professionals from around the world, from America to Australia, have already earned places of honor in the museum's Hall of Fame.

Finally, the Hall of Fame pays tribute to tow truck drivers who have been killed in the line of duty. Rescuing cars in snow storms or at accident sites can often be perilous. These drivers will forever be honored in Chattanooga.

From the first tow truck in the early 1900's, Chattanooga is now the largest manufacturer of tow trucks in the world. The city has certainly earned its place of honor it the world of transport.

Thursday, March 12, 2009

In Trains We Trust

In Trains We Trust
August 20, 2008

With the end of the current business sessions of the 110th U.S. Congress on the horizon, farmers across America and their representatives are doing their utmost to bring pressure on U.S. lawmakers to grant one more vital bill.

The average consumer has surely noticed that prices of food, both domestic and imported, have been on the rise. There are various reasons for the price hikes. However, one factor that has been common to most markets is the effect of high fuel prices.

How does the price of a barrel of crude oil from the Middle East affect the price of hamburger rolls made from U.S. grown wheat?

In factoring the wholesale and eventual retail prices of food items, transportation is a key factor. Local grown tomatoes sold at a farmer's market will have a much lower price than produce that has been shipped halfway across the country. On the other hand, supplying fresh daily produce to all corners of the nation is a luxury not enjoyed by many countries on this globe. Luxury, though, has its price tag.

Truck transport was the most common mode of long haul transportation until recently. The flexibility of routes, combined with the affordability of the transport mode, made trucking the choice of many farmers and suppliers. However, as trucking companies have been re-thinking the economic viability of long haul transport, railroad freight has become a realistic option. In many cases, trucking combined with rail freight has proven to be a successful combination.

Farmers across America have been relying more on rail service to ship their crops to the designated markets. Washington, D.C., though, has been making the economic reality of rail freight difficult for the farmers. In order for food prices to remain reasonable, rail prices must be reasonable. Antitrust exemptions granted to the freight rail industry allow the rail companies to charge farmers exorbitantly high prices. Removal of these exemptions would force the rail companies to become competitive and, thus, would reduce the rates and provide better service, also a complaint of the farmers. The lower rates would be passed on to the consumer. As many farmers rely heavily on the railroads, they feel that they are being held captive with no place to turn, and no other options.

The American Farm Bureau Federation has been pressuring members of the House and Senate to eliminate the Freight Rail Antitrust Exemptions. Senate bill 772 and House bill 1650 are companion bills that would make the antitrust exemptions obsolete. Farmers, growers, and consumers hope that the bills soon find a favorable place in the nation's law books.

Wednesday, March 11, 2009

Community Partners

Community Partners
August 14, 2008

America – the land of opportunity.

America – the land of community.

Every year, communities across America demonstrate that, underneath the hustle and bustle of everyday life, lay the hearts and souls of millions of hard-working people who recognize the need to give back to their communities a little of what they have received.

Statistics show that volunteerism is on the rise in the U.S. As a result of the partial recession that has struck worldwide, many communities are taking up the slack in social programs that would otherwise be understaffed or non-existent. Also, as gas prices remain high, many people are working together to create solutions to help themselves and others deal with the crisis.

But, beyond donating human resources, America is also a leading country for philanthropy, both private and corporate. Despite sluggish economic indicators in 2007, Americans reached a new record for giving, donating $307 billion to charities, up almost 4 percent from the prior year.

Although corporations only accounted for roughly 5 percent of this philanthropy, it is important to note that behind corporations are people. Many companies have instituted unique corporate programs that attempt to attract increased amounts of donations in various ways. Some create challenges; others institute matching programs. Interesting to note is that charitable giving takes places from small mom-and-pop groceries way up to huge mega-corporations.

A prime example of corporate America helping support local communities is the program initiated and sponsored by the Wal-Mart Foundation and the fleet of private truck drivers that serve Wal-Mart stores in Arkansas.

The Wal-Mart Corporation is a strong supporter of education and supports numerous educational endeavors through its corporate foundation, donating millions of dollars annually for a variety of community educational programs across the nation.

During National Truck Driver Appreciation Week (August 24 – 30), private truck drivers for Wal-Mart will be driving extra carefully. The Wal-Mart Foundation has pledged to donate to local schools one cent for every accident-free mile driven by the drivers. Based on last year's program, schools will receive between $1,000 –$5,000. Last year, Wal-Mart transportation offices nationwide contributed more than $150,000 to their community schools.

Wal-Mart is proud of the safety record of their drivers, and is equally proud to be a sponsor of local education programs. Similarly, the truck drivers are equally proud to do their part in supporting education. By working together at a grass roots level, programs like this are a win-win situation for everybody.

Tuesday, March 10, 2009

Tex-Mex Combo Proves Unpopular

Tex-Mex Combo Proves Unpopular
August 13, 2008

The American press has been chock full of articles describing the showdown in Congress regarding the upcoming deadline signaling the end of the first, and perhaps only, year of the Mexican truck pilot program. To refresh the memory for those who have bypassed these articles, the program allows specially registered Mexican trucks to travel anywhere in the United States. Prior to this program, trucks from Mexico were limited to a zone approximately 25 miles north of the border. At this point, cargo destined for points in the U.S. would have to be transferred to American trucks for further transport.

Briefly, the program was originally approved during the Clinton administration as part of the North American Free Trade Agreement (NAFTA). Since the truck program's inception last year, it has faced fierce opposition from a number of sources including the International Brotherhood of Teamsters and various American trucking associations. The opposition argued that American drivers would be at risk due to far lower safety standards of Mexican vehicles. Additionally, cheap Mexican labor would put American trucking jobs at risk.

The Bush administration, strongly in favor of extending the program, has maintained that Mexican trucks participating in the program are inspected with greater scrutiny than American vehicles. Also, according to top officials at the Federal Motor Safety Association, the Mexican companies are thoroughly screened prior to being accepted, and their drivers are held to the same standards as U.S. drivers.

The opposition has filed suit in Federal court and is awaiting judgment. Congressional opponents are trying to force an end the program. The Bush Administration is trying to find loopholes that will allow the program to continue.

The central question, though, is who is actually benefiting or suffering from this program.

One year after its inception, only 27 Mexican companies, with 104 trucks, and 10 U.S. companies, with 52 trucks are participating. The program was intended to have the participation of 100 companies per country.

The impact of the program has been marginal. Recently, a couple of participating Texas companies were interviewed. Both admitted that they haven't truly profited from the program, nor would they lose any major investments, were the program to be terminated.

In other words, although there may be noted political gains or losses surrounding the program's continuation or demise, that's where the benefits and damages will end. On the roads, the impact has been negligible and, apparently, so it will remain.

As the saying goes, "the best-laid plans of mice and men often go awry."

Monday, March 9, 2009

Which Driver is at Fault?

Which Driver is at Fault?
August 12, 2008

According to statistics gathered by the Minnesota Trucking Association, U.S. roadways are the site of more than 40,000 vehicle related deaths each year – more than 110 deaths per day, on average. This horrific statistic is doubly frightening when one reads numerous studies attempting to find who is to blame for these tragedies but few studies that actually attack the root of the problem.

There is no argument that unfit drivers should stay off the roads. Whether a driver is suffering from severe fatigue, or has a medical condition that renders him incapable of driving safely, the best seat to occupy is the passenger seat, not the spot behind the wheel.

When an accident involves trucks and other vehicles, the immediate assumption of passersby is that the truck driver was at fault. One should not always rely on first impressions.

Of all the annual vehicle related deaths, 88 percent do not involve trucks. Moreover, of those accidents that do involve trucks, both public and private studies indicate that the drivers of the private vehicles were at fault in more than 70 percent of the accidents.

Fatigue is a primary cause of traffic fatalities. In 2006, the U.S. Department of Transportation commissioned a study to investigate car-truck crashes. The study showed conclusive evidence that, on average, the driver of the car was twice as fatigued as the professional truck driver.

It should not be concluded that all drivers of private vehicles are less careful than their professional counterparts. However, government safety data indicates that the trucking industry is the safest it has been in the last three decades. Fatality, injury, and property-damage crash rates per 100 million miles are reported at all time lows. In addition, the reports state that medical problems are the cause for only 3 percent of truck accidents.

The trucking industry is in the business of providing quality service. Efficient, productive and safe drivers make good business sense. Therefore, the industry is committed to strong compliance with government regulations. Random drug and alcohol testing are commonplace. Annual physicals are required for drivers. Similarly, regulations govern where a truck may travel, under what conditions, and how much it may haul. A driver driving at peak performance levels gets the job done well and safely, guaranteeing future business. That's the bottom line.

Certainly, the trucking industry is not foolproof. Any human resource manager will tell you that there is no guarantee of 100 percent perfection when hiring personnel. However, the trucking industry continues to strive for extremely high standards. Their employees are trained professionals.

If only a fraction of the trucking industry standards were applied to private vehicles, the roadways would certainly be a far safer place to drive.

Saturday, March 7, 2009

Women in the Ranks

Women in the Ranks
August 12, 2008

As times have progressed, traditional roles in society have changed - some in the name of progress, others for a variety of reasons, both logical and illogical. Throughout the years, though, some professions have remained in the man's realm, considered far from the women's world.

Until the mid '90's, trucking was considered a man's domain, by and large. Certainly, one saw women driving rigs here and there, but it was far from a commonplace sight. The 21st century, though, has brought with it significant changes to this "men's only" profession.

A recent study conducted by the American Trucking Association (ATA) indicates that there is a current shortage of 20,000 drivers in the U.S. If current trends do not change significantly, the study projects a country-wide shortage of 111,000 drivers by the year 2014.

The most severe shortage prevails in the long haul sector. Of the 3.4 million trucks on the road, nearly one third serve long haul travel. Based on present economic indicators, long haul transport will continue to grow and generate a need for 2.2 percent annual growth of long haul drivers. However, current demographic trends project growth of only 1.6 percent. Overall, 320,000 new jobs will be needed. Add to this replacement of drivers over age 55 who will retire over the next decade. The total number of new drivers needed for expansion and replacement over the next decade will reach 539,000, roughly 54,000 new drivers per year. Compounding matters is the demographic composition of the U.S. Men aged 35 to 54, the primary driver demographic group, are currently at a growth plateau and their numbers are projected to decrease over the next decade.

Women currently represent approximately 5 percent of truck drivers in the U.S. While figures are not exact, the ATA estimates that there were over 200,000 female drivers at the end of 2007. This figure continues to grow as women are proving to be among the safest drivers and are as competent and conscientious as their male counterparts.

Driving academies around the country are offering courses for women. Although some professions have discrepancies between salaries for men and women, female drivers are earning the same wages as men, adding to the lure of the profession. With the doors open for women, many more are considering trucking as a viable career option, and a means to bring home a decent wage, especially during these difficult economic times when many households require dual incomes.

Next time you spot a woman behind the wheel of a rig on the interstate, don't stop and stare. Offer a friendly wave to a professional driver who is helping to keep the national economy moving.

Friday, March 6, 2009

Showing Appreciation

Showing Appreciation
August 6, 2008

You can say what you want about America, both good and bad. Whatever you're looking for, you're bound to find in one of the states of the Union. But, there is one aspect of America that is unsurpassed around the world. In fact, the country probably holds an international record. The U.S. is unparalleled in establishing National Days and Weeks for many causes that Americans wish to celebrate or appreciate.

During the week of August 24 -30, Americans around the country will have the opportunity to say thank you for delivering America. That's right! National Truck Driver Appreciation Week is all about saying "thanks" to the nearly 3.5 million men and women who daily move the goods and products that make up the national economy. Without America's truck drivers, the country simply could not function.

The first wave of recognition is from elected officials. In many states, governors have issued official proclamations designating the week as Truck Driver Appreciation Week in their respective states.

Next in line are the national motor carriers, state trucking associations and trucking industry manufacturers and suppliers. In the past, they have honored drivers in various ways including safety awards, cash bonuses, gifts, extra paid holidays, free meals and company picnics. Other companies have arranged special sales on truck parts and accessories at reduced prices. Some companies even had management roll up their sleeves and wash drivers' trucks. And, sometimes, even a simple SMS message of thanks can bring a smile to the driver out on the road.

But what about showing appreciation from outside the industry? After all, everyone benefits from America's truckers.

One promotional company on Long Island (N.Y.) prepared a catalogue of promotional gifts for this special week with everything from posters and banners to travel mugs, t-shirts, and even first aid kits. The gifts of appreciation are plenty but, of course, where there's a cause, there's a buck to be made.

On the other hand, many local businesses around the country are taking the opportunity to say thanks to the people who help keep them supplied. No direct profits to be made from the deal – just good old fashioned "thank you" for a job well done.

A fine example is to be found in Toledo, Ohio. A local insurance agency, that insures a large number of trucks and drivers, is taking the opportunity of this week to give something back. The agency is sponsoring a contest to encourage drivers to send e-mails or short videos describing how they best employ computer technology to stay ahead in a tough economy. The winner with the most creative answer will receive a new Dell laptop computer with gaming capabilities and a built-in web cam. Runners up will receive awards of hundreds of dollars of free fuel.

As National Truck Drivers Appreciation Week approaches, hopefully many other local businesses will take the initiative and find ways to thank those dedicated drivers who help keep America supplied and functioning 24/7.

Thursday, March 5, 2009

Globalization vs. Regionalization

Globalization vs. Regionalization
August 6, 2008

The litmus test of the 21st century global economy is the clothing label inside the garment purchased at the local Wal-Mart. Chances are very good that the t-shirt with the popular television cartoon character emblazoned on the front does not carry a "Made in the U.S.A." tag inside.

Over the past quarter-century, the world economy became extremely integrated caused, in part, by the profits to be made through the lure of cheap oil and cheap foreign wages. However, oil that cost $10 a barrel a decade ago now costs more than $120 a barrel. Moreover, as more Americans are looking for work, the call has gone out to keep jobs at home. Many economists feel that globalization is about to undergo serious change.

There is no escaping the reality that rising prices throughout the economy will force America to re-assess the management of its economy. Transportation costs are now a major factor in pricing, especially of large ticket items. Previously, raw materials, like iron and wood, were shipped abroad for processing and manufacturing in countries where labor costs were a fraction of those in the U.S. Now, more companies are returning to regional manufacturing. Production close to the point of origin is the economic choice today. The higher cost of domestic labor is more than offset by the savings from lower transportation costs.

Some economists worry, though, that reverting to regionalization may not be a smooth transition. A generation of Americans has lost some of its manufacturing base and skills to the more dynamic production centers of Asia. A return to "Made in America" may not occur overnight. Other concerns, though, may outweigh these.

Americans have become far more environmentally conscious. Many American companies are doing their part to protect the environment and the effects of global warming by adopting green policies meant to reduce fuel consumption and carbon emissions. The same cannot be said of many companies in the far-east where emission standards are far less stringent than in the west.

The same worry about lax standards applies to food products. Lack of rigorous inspection at food production plants abroad may cause Americans, concerned about disease and health standards, to re-consider purchasing imported food products and may shift a large percentage of this market to domestic production.

Business executives and economists know that many factors determine the flow of international trade. The decision of where to invest in a new factory or from where to buy a product is determined not only by shipping costs but by exchange rates, labor costs, consumer confidence, government regulations, and availability of skilled management. But, as certain factors begin to outweigh others, the decision making process will change accordingly.

After years of buying products produced abroad, the day may soon be at hand when Americans will once again buy a traditional La-Z-Boy recliner with a tag stating "Made in America".

Wednesday, March 4, 2009

The Best Route to Navigate New York

The Best Route to Navigate New York
July 28, 2008

One of the most important economic resources of New York State is the transport truck. Few New Yorkers are aware of the fact that trucks transport nearly 90 percent of manufactured freight in the state. Approximately 91 percent of communities throughout the state rely exclusively on delivery of goods by truck. Thus, the economic solvency of this industry should be of vital concern to state residents. Moreover, the state government should be concerned with the well-being of the trucking industry. However, all is not in a state of domestic bliss in New York.

On May 12, NY Governor David Paterson announced his intention of instituting a new policy on statewide large-truck movement. The new regulations would, in essence, force trucks to travel only on the state highway system.

In an attempt to reduce fuel consumption and transport costs, many trucks opt to travel across the state via local roads. The routes are shorter, the roads are toll-free, and cheaper fuel can be found off the main roadways.

According to facts and figures released by the New York State Department of Transportation, the excess travel by trucks on secondary or local roads is posing a hazard to the environment, and is disrupting local welfare through increased noise and increased traffic. Furthermore, the smaller local roads were not designed and engineered for large scale, heavy traffic. The roads are narrower, shoulders are narrow or non-existent, and many roads are home to local pedestrians. Also, many local roads have a much lower standard of maintenance than the main roads. As such, the state intends to re-direct large-truck traffic to the regulated interstate highways.

The impact of this proposed regulation is quite apparent. Supporters of re-routing state the inherent environmental and safety benefits of re-directing truck traffic. Opponents, primarily the trucking industry, warn that traveling solely on interstate highways will drastically increase operating costs. (Other opponents of the proposed change include local businesses – fuel stations, restaurants, service garages, motels - that have benefited economically from the increased commercial traffic in recent years). The interstate routes are longer, thus increasing overall fuel consumption. Fuel at roadside truck-stops is generally more expensive, and the highway tolls and taxes for freight trucks are quite high. Ultimately, the additional expenses will be passed on to the consumers in the form of higher prices.

Lobbying efforts by the New York State Motor Truck Association (NYSMTA), a non-profit trade association representing more than 800 trucking companies, are continuing in an attempt to dissuade the state from enacting these new regulations.


Tuesday, March 3, 2009

Unemployment and the New Jersey Trucker

Unemployment and the New Jersey Trucker
July 28, 2008

June 2008 was the sixth month in a row that the United States lost jobs. Across the nation, 62,000 jobs were lost in one month, bringing the total this year to a staggering 438,000. This is the longest losing employment streak in the US since 2002. The unemployment rate, currently holding steady at 5.5 percent, is expected to climb and will likely top 6 percent early next year. Currently, there are approximately 8.5 million unemployed Americans.

June was an exceptionally hard month for the Garden State. Over 4,200 jobs were lost throughout the state, almost 7 percent of the national total. All the jobs were in the private sector. Of all the industries affected by the layoffs, the hardest hit was the trucking industry. Nearly one quarter of the jobs lost in June - 1,000 jobs - were trucking jobs.

In what appears to be a strange irony, the trucking industry throughout the US is showing signs of recovery and even posting profits in many states. On one hand, thousands of jobs are being cut throughout the industry. Due to the excessive rise in fuel prices, maintaining large fleets has become economically hazardous, especially for independent companies. The result has been a sharp increase in company closures and bankruptcies. However, consumer demand for transport has not declined. In fact, the remaining companies, having downsized and consolidated, are having difficulties keeping up with the demand. This has resulted in a seller's market for services, with high prices of fuel being absorbed by the consumer, and profits increasing for the industry. In the middle of this economic see-saw is the trucker. Many independent drivers cannot compete with the large companies, and many large companies have trimmed the number of employees in order to remain profitable.

New Jersey has seen a slump in the housing market which, in turn, has reduced the demand for building products and home furnishings. This reduction, combined with major declines in statewide manufacturing, has contributed heavily to lost trucking jobs as these industries are major customers of the transport market.

The Rutgers Economic Advisory Service, which studies the New Jersey economy, does not see any immediate relief in site for the state. In fact, indicators show that New Jersey will continue losing jobs until 2010. They predict that the state's economy will begin to turn around in the second quarter of 2010 and the state will recover its lost jobs by mid-2011.

Until then, many residents of New Jersey's hardest hit industries, including its truckers, face a worrisome future.

FreightMail.com