Trucking Industry Shrinking, Nearshoring on the Rise

Trucking Industry Shrinking, Nearshoring on the Rise
October 3, 2008

As over 3000 trucking firms are expected to shut down in the next year and others scaling down operations, capacity may be strained. And as extra shipping fees are being added on, wholesale prices will probably inflate and retailers will not be able to pass too many costs onto the consumer. Small businesses in the same region are advised to pool their resources to have better standing with the trucking companies.


Local manufacturing looks like it will be on the increase though since the prices of cargo transport from China has tripled in the last 5 years; not counting the ocean freight costs from other nations as well. And since oil prices are not likely to dip to pre-2007 levels either, many companies seek to avoid outsourcing, thus cutting their delivery times. Volkswagen, Ikea and others have already begun increasing output at their plants and building new ones in the US. At the same time, food retailers are focusing more on pushing local produce, and imports of out-of-season items may be more costly and less commonly found.

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.

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.

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.

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.

Economy Down; Profits Up

Economy Down; Profits Up
July 28, 2008

If you're involved in the trucking industry today, it's a fact that everyone has a story to tell, especially if it relates to the economy. The rising price of fuel is a growing global concern, especially for those whose livelihood depends on daily consumption of this expensive commodity.

As America's economy continues its downward slide, due, in part, to the fuel crisis, the trucking industry has taken a beating. Many independent drivers, and small trucking companies, have been put out of business due to their inability to cope with the economic burden imposed by high fuel costs. However, all is not bleak for the industry. When the going gets tough, the tough get going. For some of America's leaders in the trucking industry, profits have never been better.

USA Truck Inc. is a dry van truckload carrier transporting general commodities throughout the continental United States and portions of Canada and Mexico. The Van Buren, Arkansas-based business, with a fleet in excess of 2,500 trucks, is traded on the NASDAQ and recently posted strong second quarter results.

As operating costs have skyrocketed over the last eighteen months, large fleet operators, like USA Truck, have learned the secrets to survival and success. Companies have adopted a different, far more economical, approach to managing their fleet.

Wall Street analysts predicted serious second quarter losses for the trucking industry. To their amazement, USA Truck's profits increased by 32 percent, compared with the same period last year. Their share prices have increased by a stunning 25.5 percent.

Their secret? The company became far more disciplined about its truck network. They placed trucks where they should be. Trucks logged shorter lengths of haul and improved the average miles per tractor per week. Careful planning shaved roughly 70 miles per trip from each truck. The company has begun to focus on serving the more lucrative shorter-haul market. They have slightly trimmed the number of trucks in use, thus maximizing the use of each vehicle. Optimum utilization has paid off, allowing the company to earn the greatest amount of revenue per hour of the driver's hours of service.

By achieving an acceptable balance between fleet capacity and freight demand, large operators, like USA Truck, are managing to keep ahead of expenses and show profits, despite the continual rise in expenses. Also, better freight selection is expected to help the carrier's improve their revenue per mile.

By going back to basics, and managing their businesses in a far more accountable manner, the larger operators will continue to keep America supplied, and their shareholders happy.

Changing With The Times

Changing With the Times
July 28, 2008

"Necessity is the mother of invention," wrote the Greek philosopher, Plato. Long before our "modern" world was even a glimmer of a thought in someone's imagination, Plato coined this phrase that still has much meaning. Centuries later, another writer, Mark Twain, penned a variation of Plato's words, when he wrote, "Necessity is the mother of taking chances." In retrospect, both Plato and Mark Twain seemed to envision the 21st century.

The global fuel situation has affected virtually every one of us in one way or another. For those whose livelihood depends directly on fuel, the impact has been ever more severe. The trucking industry in America is a prime of example of both making changes and taking chances.

Clyde M. Fuller (1926 – 2002) will long be remembered as a prolific entrepreneur and innovator in the trucking industry. In the 1970's, Mr. Fuller revolutionized long haul trucking through the introduction of cross-country driving teams, enabling freight to cross the country in 48 hours. Employing their father's long haul techniques, Fuller's sons built their own fortunes and competing companies, U.S. Xpress and Covenant Transport, both based in Chattanooga, Tennessee. While both companies contributed greatly to establishing their hometown as one of the leading trucking hubs in the U.S., events of recent years have forced the owners to re-examine their father's business strategy.

U.S. Xpress is one of several long-haul companies that are seriously examining their target market. They believe that the future of cross country drives is limited. They have begun to cut the drivers' length of haul, and are greatly increasing their regional fleets for shorter routes. Additionally, U.S. Xpress has shifted a large percentage of its long haul business to shipping via railroads. Some trucking executives believe that railroads will eventually come to own the long-haul marketplace.

Other companies, like Covenant, are not rushing to abandon a market that has proven to be quite lucrative. They hope that better control of expenses will enable the companies to remain competitive and profitable. Covenant has introduced new policies that cut down on truck idling time, reduced empty miles, decreased its number of long distance teams, and limited the traveling speed of trucks to 65 m.p.h. for better fuel efficiency. Covenant has also concentrated some of its business in regional trucking. Rather than abandon the long haul routes, they have added short haul routes through a regional company that they recently purchased.

The question, of course, is which of Clyde Fuller's legacy is correct? The answer is still unclear. Only time will tell if it is possible to retain and modify the past, or if change will be the way of the future.

Safe Trucking Companies to be Awarded Fleet Safety Certification

Safe Trucking Companies to be Awarded Fleet Safety Certification
Sunday, April 6, 2008

Aon Risk Services, the retail brokering and risk management services unit of Aon Corporation, has developed the first nationwide fleet safety certification for trucking companies.

SafeFleet Certification, developed by the company's trucking practice, is a performance-based safety certification. The safety performance of trucking companies is measured by comparing a fleet's safety performance to national averages for the trucking industry based on several safety performance criteria, including out-of-service violation percentage, DOT-crash rate per million miles, crash-related injury and fatality rate per 100 million miles, and injury rate that results in lost workplace time per 100 workers.

SafeFleet Gold Certification is awarded to fleets whose safety performance is at least 35% better than the trucking industry average, whereas SafeFleet Silver and Bronze Certifications are awarded to fleets whose safety performance is 25% and 15% respectively better than the national average.

David Mitchell, director of risk control and safety for Aon's trucking practice, said that only about 15% of trucking companies would be able to meet such rigorous certification standards. Trucking companies that do meet those standards, however, are expected to experience improved claims defense and reduced claims costs, better treatment from insurance and reinsurance underwriters, higher driver retention, and increased sales to shippers.

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.

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.

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.

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.

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.

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.