RSI’s Transportation Insights

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Online social community sites are worth billions of dollars. From a user standpoint, they serve as a forum for friends to communicate, share pictures, songs, opinions, you name it, online and all the time.  They’re also an environment for social networking, meeting new ‘friends’ or acquaintances from what is generally perceived as a safe distance.  And as with any hit, niche web site, social sites have become even more in tune with specific audiences.  One of the audiences - truck drivers.

Online career community sites are becoming more popular as they provide free and highly specific information to a targeted group of people. 

Several sites cater to truck drivers and cover topics ranging from career opportunities, safety, entertainment, industry outlook and whatever the next hot blog topic entails.  Etrucker.com and Drivertrak.com are two sites created to support the truck driving community.  Resources are abundant on these sites and much more. 

One of the key components of these sites is their focus on support.  Truck drivers can communicate with other drivers in their same position, learn the trade, and gain a broader perspective on the ins and outs of the position.  From driving tips, better route alternatives, truck drivers can talk online or share their experiences to thousands of others.  

If there’s one problem though, it’s that truck drivers by occupation - are on the road.  Laptops are not always standard equipment in a big rig.  It’s reported only 2 in 100 truck drivers have access to a computer and even though many cell phones are connected to the Internet, it is a rare occasion for a truck driver to be online while on the job. 

Regardless, career specific community sites, including sites dedicated to the truck driving profession, are an asset.  Content featured on these sites shows up elsewhere – in newsletters, magazines, and in conversation.

Diesel is the lifeblood of the trucking industry.  It runs through the arteries of trucking businesses big and small. Whether you own a fleet of two or two hundred, diesel fuel costs affect the bottom line bar none. 
If you’ve watched diesel prices in the past decade, you would have noticed that prices ten years ago were far less than non-diesel fuels.  This trend has shifted though in the past four years as diesel prices have been the first amongst transportation fuels to hit the four-dollar mark. 

The Energy Information Administration offers several reasons to explain the rising costs of diesel fuel:
1. High worldwide demand for diesel fuel and other distillate fuel oils, especially in Europe, China, India and the United States, and a tight global refining capacity available to meet demand.
2. The transition to lower-sulfur diesel fuels in the United States is affecting diesel fuel production and distribution costs.
3. The Federal excise tax on on-highway diesel fuel is 6 cents per gallon higher (at 24.4 cents/gallon) than the tax on gasoline.
Although diesel fuel was created more than hundred years ago, its composition has gone through some significant transformations.  Most recently, diesel has become known as ‘clean burning’.  An oxymoron?  Not quite.  Clean burning diesel is a combination of diesel fuel, advanced engines, and effective exhaust-control technology (dieselforum.org).  In its original form, diesel, which is petroleum based, goes further per gallon than other fuels. 
While using diesel fuel means you have to fill up less, it also means more sulfur emissions are released into the environment.  Although 50% of diesel trucks currently operate with Ultra-Low-Sulfur-Fuel (ULSF) – by 2010 all trucks will be required by law to use this cleaner burning fuel.
Environmental concerns only push diesel fuel producers to refine their processes that will generate even cleaner burning fuel than we see now.  Considering semi-trucks travel hundreds of thousands of miles in their lifetimes, more efficient fuel will be welcome in an industry where fuel’s been dealing fiscal blows.   
 

“Click It or Ticket.”  The transportation catchphrase heard in radio ads, witnessed on freeway signage, read on web sites, and echoing inside the heads of those who don’t automatically, well, click it.  Who’s not clicking you ask?  According to transportation statistics, truckers are notorious for forgoing the safety belt all together.  Perhaps the catchy message is getting through though.  According to Transport Topics Online, the Department of Transportation reported a record 65% of professional truck drivers used seatbelts.

Seatbelt laws differ from state to state.  Even though it is common knowledge at this point that seatbelts save lives, there are serious gaps in safety laws from state to state.  As of 2005, as many as 28 states did not enforce primary seat belt laws that enable police officers to ticket if a driver or passenger is not wearing a seatbelt.  Click it or Ticket  doe not apply to all – after all. 

Despite the recent improvement in the percentage of truck drivers who buckle up, it was only three years ago that less than half of truckers used a seatbelt.  Lobbyists and advocates alike urged governors in states with only secondary seatbelt laws (where one can only be ticketed for not wearing a seatbelt if stopped for committing another traffic violation) to adopt more stringent laws.  Even the American Trucking Association pushed to allow police officers to ticket those drivers not wearing a seatbelt.
 

In the same report, USA Today interviewed Transportation Secretary Norman Mineta, who stated, “Safety belts each year prevent 15,700 fatalities, 350,000 serious injuries and $67 billion in costs associated with traffic injuries and deaths.” 

The ATA have been vocal supporters of primary seatbelt laws, asking the Federal government to use more money towards truck driver safety programs that back the use of seatbelts.  Department of Transportation statistics show hundreds of truck drivers are killed each year in crashes – with an overwhelming majority not wearing seatbelts. The answer in many peoples’ minds is simple – Click it.  

While the personal freedom argument is still thrown out when contesting seat belt laws – especially the primary ones – there’s no denying the sheer life-saving effectiveness seatbelts offer.  Still not wearing a seatbelt? You’re lucky if all you get is a ticket.

Workers compensation is a must for employers in all fifty states. It not only protects employees, providing wages and medical treatment for those injured on the job, but it protect employers from potential lawsuits that could easily derail a small business.  For employers though, workers comp insurance doesn’t come cheap.

Although each state determines its own workers comp rates, the process by which the rates are calculated is similar across the board.  According to AllBusiness.com, the online media company that caters to professional industries, “The cost of workers’ compensation insurance is determined by the workers’ compensation board in your state. Although base rates vary slightly from state to state, the basic process each state uses to calculate base rates is similar.  Each type of occupation is assigned a risk classification. Risk is determined by two factors: the frequency of on-the-job injury and the severity of injury. Severity is measured by both medical payments and indemnity benefits (payments made directly to the injured employee to compensate for losses suffered as a result of an accident).” As an employer, whether you provide workers comp insurance for a roofer or administrative assistant, there are ways to cut costs without cutting policy corners.

Is green really the way to go? That’s what we’re told nowadays - from the detergent we use to wash our clothes to the food we use to feed our dogs.  Locally grown, reduced emissions, recycled twice over - these are all good things.  The automotive market is even blushing green hues.  Not only do several manufactures offer hybrid passenger vehicles, but SUVs as well.  One the last frontiers on the green front is the mighty big rig: the long-hauling, diesel-burning, oft-viewed eco-hazard.  And it’s gone green.

On several levels, changes have been made to improve the ways big rigs burn fuel, navigate routes, and much, much more.  One of the most significant ways a fleet owner can improve his or her fleet’s green factor is to purchase a hybrid semi.  Yes - they exist - but they don’t come cheap!

According to Treehugger.com, “ Kenworth Truck Company recently introduced a hybrid-electric truck, called the Kenworth T270 Class 6. In a press release, Mike Dozier, Kenworth chief engineer, said: “During steady driving conditions above 30 mph, the T270 hybrid operates like a standard diesel vehicle with all power coming from the engine. Below 30 mph, it uses a combination of diesel and electricity.” 

The T270 is designed to reduce fuel consumption by 30% and improve the start-and-stop applications, such as utility trucks and pick-up and delivery. 

Whether it’s a new pair of jeans, or a brand new big rig, what’s new and improved is evident on the pricetag.  A fleet owner can expect to shell out an additional $40,000 for a hybrid big rig.
Hybrid big rigs may not be status quo, but they’re definitely not going to be a flash in a green marketing campaign.  The Environmental Protection Agency (EPA) mandated that starting in 2007, all new heavy-duty U.S. sold diesel engines must operate on nitrogen-oxide free engines.
 

And then there’s the gas…
Considering it can now cost up to a grand to fill a big rig’s tank, going green may not only improve the environment, but the bottom line as well. 

Whether or not it’s the right time to purchase a hybrid big rig, the fact that they’re available is a stride for the industry and a testament to its focus on making positive changes towards a congruous relationship with the environment.

Air pollution – stratospheric depletion of the ozone. The cause? Anything and everything it seems. Fireplaces, cars, cigarettes, lawnmowers, and even cows! While livestock won’t be going away anytime soon, massive measures are being taken to reduce the amount of emission released into the air.

The Long Beach and Los Angeles Ports are two emission-reducing leaders on a local, national, and international level. On March 24th, both Harbor Commissioners will hold a vote that will determine whether or not ships within 40 miles of either port must operate on less pollutant fuel.

The ports’ main objective is to offer incentives that would encourage vessel operators to switch to a cleaner-burning fuel that can potentially cut eleven percent of engine-related pollutants including sulfur oxides.

Even Los Angeles Mayor, Antonio Villaraigosa is onboard and supports the mission to make both the Long Beach and Los Angeles Harbors two of the most environmentally friendly in the world.

Both harbors aim to lower emissions by both land and sea, proposing full blown efforts to improve fuel efficiency and in turn, the air for all to breathe.

Air pollution – stratospheric depletion of the ozone. The cause? Anything and everything it seems. Fireplaces, cars, cigarettes, lawnmowers, and even cows! While livestock won’t be going away anytime soon, massive measures are being taken to reduce the amount of emission released into the air.

The Long Beach and Los Angeles Ports are two emission-reducing leaders on a local, national, and international level. On March 24th, both Harbor Commissioners will hold a vote that will determine whether or not ships within 40 miles of either port must operate on less pollutant fuel.

The ports’ main objective is to offer incentives that would encourage vessel operators to switch to a cleaner-burning fuel that can potentially cut eleven percent of engine-related pollutants including sulfur oxides.

Even Los Angeles Mayor, Antonio Villaraigosa is onboard and supports the mission to make both the Long Beach and Los Angeles Harbors two of the most environmentally friendly in the world.

Both harbors aim to lower emissions by both land and sea, proposing full blown efforts to improve fuel efficiency and in turn, the air for all to breathe.

According to the Bureau of Labor Statistics, back injuries are the most common injury to occur at the workplace and most frequently reported workers compensation claim.  The BLS reports as many as one million people each year incur a back injury while on the job.  In addition, two hundred and fifty thousand of these injuries becomes an indemnity claim.  Is there a way employers and employees can work together to prevent back and other injuries from occurring in the workplace?  To the insurance industry – that’s a billion dollar question.  
 

Workers compensation was introduced as the industrial revolution hit full swing.  As jobs flourished, injuries became more commonplace at work.  Before workers compensation was instituted, common law was an employee’s only recourse.  The process allowed employees to sue employers, but often to no avail.  The American Association of State Compensation Insurance Funds, America adopted a workers compensation model in the 1800s that originated in Europe.  The AASCIF states “Injured workers received medical care and disability income irrespective of fault. Employers, in turn, were protected from potentially catastrophic loss by a stated amount of specific benefits for the injuries suffered by the employee.” 
 
Since then, workers compensation has grown to touch several areas of the American workplace. According to the Department of Labor, workers compensation exists in the following categories:
Wages & Hours Worked
Benefits: Health, Retirement, Leave
Hiring Issues
Termination Issues
Equal Opportunity
Safety and Health In the Workplace
Whistleblower and Non-Retaliation Protections
Plant Closings and Layoffs
Unions and Union Members
Posters
Recordkeeping

Occupational health and safety companies can assess potential workplace risks and make recommendations that will create a safe working environment.  There are several organizations that cater to employers and provide workplace appraisal from ergonomic analysis to compliance control.  The reality is however, that workers compensation differs state to state, and the risk for injury differs from job to job, and really person to person. 

Awareness is critical and employers who make workplace safety a priority will help create a more protective and efficient environment for all.

According to some, the North America Free Trade Agreement (NAFTA) planned Superhighway already exists in the form of Interstate 35 that starts on the Texas/Mexico border and runs through the middle of the country eventually to Canada.   To others, it’s a transportation vision that has yet to become a reality.

Firesociety.com reported that, “According to the North American Super Corridor Coalition (NASCO) “NASCO and the cities, counties, states and provinces along our existing Interstate Highways 35/29/94 (the NASCO Corridor) have been referring to I-35 as the ‘NAFTA Superhighway’ for many years…. There are no plans to build a new, “NAFTA Superhighway” - it exists today as I-35.”  (http://www.firesociety.com/article/10103).

A nonprofit organization, NASCO focuses on not only improving intermodal transportation, but providing economic developments, environmental improvements while creating best practices that reach throughout the industry. Despite the organizations support for multimodal development, it maintains the only Superhighway exists in the form of highway I-35.

And NAFTA’s response?  Conservative sites state the Bush administration is moving to create a Superhighway that runs along I-35 and spans four football fields wide. The plan is to extend the highway from the Mexican border to the Canadian border north of Minn.

As of yet, no ground has been broken. Fact or fiction, the Superhighway – the new one -has gained political attention in recent months. Pieces of the plan are in place, yet it remains to be seen if this mega road is really more than a bird or a plane or really, a pre-existing stretch of road.

It’s Gonna’ Hurt…
 

Price increases are never a happy occurrence.  Whether concert tickets or clothes, a hike in asking price is generally greeted with scorn.  The oil industry is no different and scorn would be putting it kindly for how word of raised gas prices is received.  Unfortunately, that’s been the case as of late. 

As of Friday, crude oil barrels hit $106.54, according to the New York Mercantile Exchange.  To make matters worse, diesel fuel hit a record price of $.658 per gallon – heating tempers and freezing budgets. 
Small trucking companies have been hit hard.  It’s difficult, if not impossible, to turn a profit when fuel prices are this high.  In some cases, truck drivers are going unpaid.  Many are left wondering if there’s relief in sight. 

According to TheTrucker.com, “Many analysts believe speculative investing attracted by the weak dollar is the primary reason oil has risen so far so fast in recent months. Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the dollar is falling,” (http://www.thetrucker.com/News/Stories/2008/).
Whether it’s restructuring routes or adding energy efficient vehicles to the fleet, acclimation is vital to an enduring trucking business.  Surcharges may provide temporary relief, but hit local economies  considerably. 

As Spring nears and temperatures rise, inventive ways of handling these rising fuel prices will be front and center  and with any luck, provide an easy to adopt model for struggling companies.