Bee-Line Delivery Service and Bee-Line Logistics announced today joining the U.S. Environmental Protection Agency (EPA) as a SmartWay℠ Transport Partner.  The SmartWay℠ Transport Partnership program helps transportation companies calculate their environmental performance and set improvement goals designed to significantly reduce greenhouse gases and air pollution.

By joining the Partnership, Bee-Line demonstrates its strong environmental leadership and corporate responsibility.  With initiatives to promote energy efficiency and air quality within the freight transportation sector, Bee-Line will contribute to the Partnership’s savings of 1.5 billion gallons of fuel, $3.6 billion in fuel costs, 16.5 MMT of CO2, 235,000 tons of oxides of nitrogen (NOx) and 9,000 tons of particulate matter to help protect the health and well-being of citizens, especially in low-income communities near ports, truck stops, and borders.

“For the past 47 years we’ve helped our fleet and Bee-Line Logistics’ carrier base reduce fuel inefficiency through optimizing driving schedules and routing, energy efficient equipment purchases, fuel purchase programs, and a number of other successful initiatives” said Pat McMillan, President of Bee-Line Delivery Service.”  Our latest equipment initiative has come in the form of aerodynamic trailers with the addition of side skirts being integratrated into our fleet.  These are the types of things that allow Bee-Line to grow and serve our customers and communities.”

As an expanding transportation service provider, Bee-Line’s broad reach of highly qualified drivers/trucks and new partnership with SmartWay℠ will help achieve great amounts of fuel efficiency and waste reduction within the industry for decades to come. 

http://www.epa.gov/smartway/partnerlists/partner-list.htm

By: Joel Lopez (Bee-Line Logistics, Inc.)

During Roadcheck 2011 (Sponsored together with CVSA and the Federal Motor Carrier Safety Administration) approximately 16 trucks or buses were inspected, on average, every minute for the 72 hour campaign, from June 7-9. This totaled 70,712 inspections from 8,000 CVSA and FMCSA inspectors. Drivers were pulled over or directed into weigh stations or other inspection locations and asked to show their commercial driver’s license, medical examiner’s certificate and record of duty status. Brakes, tires, lights and every major safety component of the truck or bus, plus proper load securement were also examined during the campaign.

Results from Roadcheck 2011 show that overall vehicle/trailer compaliance to current safety standards was at 80.7 percent. (an increase from 80.0 percent in 2010). Driver compliance (hours of service, etc.) was at a rate of 95.8 percent (an increase from 95.6 percent in 2010). There were also 296 fewer safety belt violations for in 2011 compared to 2010.

According to the data, the safety programs at trucking companies are continuing to strengthen and play a more prominent role within the industry. This is not only a huge plus for the industry, but also a must to ensure the safety of fellow motorists.

What are your thoughts on the Campaign? Do you think it should be altered or changed in any way? How do you feel the safety aspect of the industry is performing?

Fleets have already started to feel the capacity crunch, leaving carriers scrambling to find drivers to fill vacant jobs with owner operators.  In an industry dominated by the independent contractor, those contractors have disappeared into the darkness and trucking companies are caught searching for them without a flashlight or a clue as to where they are all hiding.

As the economy continues to improve and freight volumes accelerate, the driver shortage will inevitably return at higher numbers than in years past.  This will only mean that companies are going to have the double edge sword facing them with driver shortages and the CSA 2010 challenging them.

Truckload carriers have been aggressive in reducing driver pay during this economic down slide, so much so that demographic and regulatory changes could exacerbate an upcoming driver shortage in the next few years.  This could limit any growth in truckload capacity and support pricing gains in 2011 and beyond.

A few private carriers have had problems with driver recruitment, most likely because the low pay has caused drivers to stay on unemployment.  With CSA 2010 looming, it poses a very difficult road to hoe. 

As the economy recovers, truckload carriers will likely be forced to bring wages back up to support driver recruitment, but should also cause a spike in freight rates due to a simple supply and demand.  This freight rate spike has already begun and it should continue to climb in the coming years.

The Effects of CSA 2010

Fleets will also be hard-pressed to find drivers once CSA 2010 kicks in. Under CSA 2010, drivers will be responsible for their safety violations, which will stay with them as they go from carrier to carrier.  Much like a personal credit score, these drivers with violations will find it hard to find good jobs, and it will make the crop of drivers seem quite watered down for companies.

Under the new safety system, while there is no intervention threshold for drivers, FMCSA will list 11 “red flag” violations that could trigger regulatory actions against the driver.  This, in turn, will affect how we look at an owner operator in the future.  In years past companies looked upon an owner operator as a revenue generator, now with CSA 2010, the owner operator will be looked on as a safety risk first before the thought of revenue comes into play.

I believe that many carriers will refuse to employ drivers with poor safety rankings; not only will poorly ranked drivers be more likely to cause accidents, but having the poorly ranked driver on staff would cause a carrier’s overall safety rating to deteriorate.  One of the most crucial attributes of a trucking company is its safety score.  If you have a poor safety score, the end result is no customers, no freight, no money, and bankruptcy. 

Carriers are also likely ramping up their safety training, personnel and information technology resources in order to cover their bases under CSA 2010. Fleets will want to do everything they can to avoid a safety investigation.

This preparation includes thoroughly screening new drivers and a heightened focus on training existing drivers. I believe that increased driver training is necessary in many cases because, under CSA 2010, drivers will become increasingly responsible for managing their own safety record.  A well trained driver is a safe driver and a safe driver makes for a profitable company.

New legislation has been introduced that would significantly increase regulatory oversight of freight brokers and freight forwarders.

Introduced in Washington, DC, the Motor Carrier Protection Act of 2010 would make several critical changes to the operating requirements of brokers and freight forwarders.

For starters, the bill would increase the required broker bond from $10,000 to $100,000 and expand that bond requirement to freight forwarders. Next, it would establish significant penalties for violations of  broker regulations, including unlimited liabilty for freight charges for conducting brokerage without a license or a bond.

The bill would clarify that trucking companies must have a broker or freight forwarder license and an appropriate bond in addition to their motor carrier operating authority to arrange freight for another carrier for compensation.

Check back for the update to this bill, it could change the industry just a wee bit.

Shortages of trucks and drivers are delaying some deliveries of products and raw materials across the USA and raising freight costs.

The crunch is defying a tepid recovery and near-10% jobless rate that should supply a vast pool of unemployed construction and manufacturing workers. Shortages are likely to worsen when the economy heats up and new rules kick in later this year that will make it tougher to hire drivers with poor safety records and could limit the number of hours drivers can work, experts say.

“What’s going to happen in six, 12, 18 months?” says Jon Langenfeld of research firm R.W. Baird.

Since June, PPG Industries (PPG), a top glass and coatings maker, occasionally hasn’t been able to find trucks to transport glass from its factories to window fabricators, delaying deliveries a day or two. “If nothing arrives … it can shut a plant down,” says PPG supply chain manager Jeffrey Smith.

After plunging in the recession, contract rates are up about 4% in 2010, and spot rates are up as much as 40%, Langenfeld says. About 70% of shippers surveyed reported tight capacity for full truckload service this quarter, up from 27% the first quarter, according to research firm Wolfe Trahan.

Operators slashed their fleets and workforces in the downturn as demand fell 24%, says Bob Costello, chief economist for the American Trucking Associations. Thousands of small firms closed, while survivors trimmed fleets an average 14%.

Demand is up 10% this year, Costello says, as manufacturing and retail sales have rebounded moderately. But many firms are struggling to beef up fleets and staff. New truck prices have risen $25,000 since 2002 because of stricter emission standards, and many smaller carriers can’t get loans amid tight credit requirements, Langenfeld says.

Meanwhile, thousands of older drivers retired when they were laid off or saw their workloads cut. Yet it’s tough to attract younger workers to a lifestyle that typically means being away from home for weeks at a time for salaries that start at about $38,000, Costello says. Many of the unemployed prefer to collect jobless benefits, he says.

Combined Transport of Central Point, Ore., has been trying to add 50 drivers to its staff of 370 for months. “We have trucks and trailers sitting around doing nothing,” says President Mike Card. He says he turns away two or three jobs a day.

Truck lines are going to have to start screening drivers based on the anticipated safety standards. The criteria could shrink the driver pool 5% to 12%, says Rosalyn Wilson of a consulting firm. She projects a 400,000-driver shortage by 2012.

Like the movie with the same name, is the “Perfect Storm” brewing for the U. S. trucking industry?  With the possibility of more than a quarter of a million truck drivers facing termination from their driving careers from the CSA 2010 initiative, coupled with the talk of changing the current HOS rules, is there a a catastrophic event heading straight toward professional drivers and trucking companies alike?

The hours of service rule for truck drivers could be looking at losing two hours of driving time, along with doing away with the 34 hour restart rule.  The ATA and company CEO’s fear that these two aspects combined will reduce productivity among drivers.  The CSA 2010 will be a free agency for drivers.  A driver that knows he’s got a good record, he knows how to abide by the rules, and he knows and understands his value to a company, is  going to come in and say, ‘look at my score, you’re going to pay me .xx cents a mile or I’m going to go to XYZ,’ and he will. Productivity loss could be high if the changes are indeed made.

No doubt that losing two hours of driving time and the 34 hour restart will change the way trucking companies operate, but could not adding additional time for rest also increase productivity by eliminating much of the “pushing of drivers” to run further and harder?  The industry sees the loss of revenue coming by not being able to push their drivers beyond their physical and mental limits in order to get the freight delivered and move on to the next load.  Are the industry leaders more concerned with the loss of dollars than the safety of their drivers? I know that at Bee-Line, we make safety a number 1 priority and if operations doesn’t think a load will arrive on time in a safe manner, for everyone involved, then they make the appropriate decisions that are best for the driver, company, and customer.

Truck drivers operated under the former set of HOS rules for years and did just fine. The new HOS rules, if they occur, will basically return nearly as they were before. Is the industry fearful of losing their ability to push their drivers’ workloads, or more afraid of the good, safe and professional drivers gaining more control over their own careers? We shall see how everything plays out, but until then, all of the drivers will have the luxury of controlling their off and on duty times as they safely see fit.

For those of you who have not had a customer plant closure or customer bankruptcy over the past 18 months; consider yourself extremely fortunate. The economic slowdown created ripples that are still being felt and I have no idea how the true asset-based carriers have been able to survive over the past 12 months, especially after last year’s spike in diesel prices.

Every company continues to battle for business, and truck capacity seems to have tightened a little over the past few weeks. Shippers have been inundated by 3PL companies who saw the perfect environment for their services by being able to offer lower truckload rates. Bid packages have slowed down a little bit, but I predict they will be back in full force towards the end of the year.

Bee-Line Delivery has endured the rough trucking years without missing a beat.  Although most carriers have struggled to keep business and increase sales, Bee-Line has actually found a way to increase both.  With an ever-changing market, Bee-Line has been changing right along with the industry to keep up with the market swings.  Bee-Line has seen an increase in profits in each of its last five years of doing business.

As a participant in the industry I would like to make a general observation. As things have evolved post-deregulation I have heard some people say it was the best thing to ever happen in the transportation industry and I have heard others say it was the worst thing. I must agree with both of these statements.

The positives that have come from deregulation have been: better freight rates; the ability for small companies to compete; and just a general openness in the transportation environment.

The negatives I have seen are: Commoditization of services; the ability for crooks to scam shippers/brokers/trucking companies without any punishment; and a general erosion of professionalism.

In theory a down economy is supposed to weed out the weak companies, but I am not sure I have noticed many brokers or 3PLs close their doors. However there have been asset-based companies that shut down. The remaining asset-based companies still in business will get their reckoning on the brokers, shippers and 3PLs when the economy finally turns the corner…..make no doubt about it and that time is coming soon.