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Hendrickson understands the medium- and heavy-duty trucking industry and the challenges it faces every day. We are poised to supply Solutions through InnovationTM by drawing on our 100 year legacy of superior design, quality manufacturing and superb customer service. We deliver lightweight, durable, innovative suspension systems and components required to carry freight around the globe.Hendrickson looks forward to serving the medium- and heavy-duty commercial vehicle industry today and for the next 100 years.

www.hendrickson-intl.com

SOLUTIONS throughINNOvaTION™

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sePteMBer / OCtOBer 2014 3

Hendrickson understands the medium- and heavy-duty trucking industry and the challenges it faces every day. We are poised to supply Solutions through InnovationTM by drawing on our 100 year legacy of superior design, quality manufacturing and superb customer service. We deliver lightweight, durable, innovative suspension systems and components required to carry freight around the globe.Hendrickson looks forward to serving the medium- and heavy-duty commercial vehicle industry today and for the next 100 years.

www.hendrickson-intl.com

SOLUTIONS throughINNOvaTION™

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September / october 20144

11 Roadcheck 2014: Total inspections increase, OOS rates decrease.13 Vehicle-to-Vehicle Communications Technology17 Trucking Invests $7.5 billion a Year in Safety22 Class Preliminary 8 Net Orders Strong in a Historically Weak Month26 TransForce Owned Carrier Raises Driver Pay27 CASE accreditation For Mack and Volvo Training Programs28 Solid Growth for “entire freight economy” out to 202531 Basic Skills Driver Training Debate Opens – Again.

ADVERTISERS

CONTENTS

A One Financial .................................. 27Benson Tire .......................................... 19Bloomfield Truck Stop .......................... 21Castrol Heavy Duty Lubricants ............. 7Espar Heaters ....................................... 11G & G Trucking Solutions .................... 31Glasvan Great Dane ......................... 13Hendrickso......................................2,3Howes Lubricants ................................ 9J D Factors ........................................... 17Kriska Transportation ............................ 5Mercado Capital Corporation ......... 15, 41Michelin...............................................47National Safety Code Complaince ....... 33Neetu Dhaliwal - Remax ................... 39Peterbilt ............................................... 48Quick Truck Lube ................................. 35RD Truck & Trailer Repair ............... 29Sarnia Service Centre .......................... 21Tiger Tool ........................................... 45Volvo..................................................23 42 Home Work Life BaLance

40 are you HauLing generaL freigHt ?kI qusIN jnrl Bwr FoNdy ho?

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1418243032

saLes – taking a tecHnicaL approacHsylz Bwv iv`krI nUM vI qknIk dI loV hY

unDercutting in truckingtr`ikMg ‘c Gtw-Gtw ky kImq dyxI

unDerstanDing torsionaL ViBrations

managing your financiaL affairs in DifficuLt economic times.

WHat is e manifest / aci ?eI mYnI PYst/ ey sI AweI

3836

is my Bank reaLLy tHe rigHt cHoice for me?

cargo cLaims

tecH tiD-Bits by JAG DHATT

12

there areBetter Ways.

Advertise in:www.desitrucking.com

tr`kW vwly vIrW dw mYgzIn

Daimler Future Truck 2025

DaimlerFuturetruck2025 driverless Truck

34

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September / october 2014 5

Transportation / Logistics / WarehousingKRISKA: ON THE ROAD, ON-LINE!

For additional information E-mail or Call Kriska Toll Free:

[email protected] / 800.461.8000 Ex 5252 kriskajobs.com

“The Difference Is In Our People”

Kriska is a premier provider of asset-based transportation services

NATIONALTRUCKING WEEKSeptember 7-13

Sincere Thanks to allour hard-working

Drivers!

A PROUDCANADIANCARRIERSINCE 1978

ATTENTION Owner Operators, Kriska Offers:• Fuel cap $.47 per litre • Paid: plates, decals, satellite, tolls andbridges • Insurance paid through Safety and Performance Program• Earn $1.25/mile on our Regional Board

“Kriska supports my family life – the management isunderstanding and they know their business. Kriskahas an excellent safety rating which makes it easier when dealing with scales and the MTO.

–– Sukhwinder Sodhi, 15yr Owner Operator

KRISKA_DESI SEP14_Sukhinder_8.25x10.875_8.25x10.875 14-08-07 3:10 PM Page 1

Daimler Future Truck 2025

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sePteMBer / OCtOBer 20146

eastern Canada

Cell: 416-875-3820e: [email protected]

Address:160-2, County Court Blvd. #128 Brampton, On L6W 4v1

F: 604-598-9264

national & Western Canada

Cell: 604-767-4433e: [email protected]

Address:#235 - 8138, 128 street, surrey BC v3W 1r1

F: 604-598-9264

All rights reserved. no material herein or portions thereof may be printed without the written consent of the publisher.

disCLAiMer: JGK Media inc. assumes all advertisers to be reliable and responsible for any and all liability for their claims. the publisher reserves the right to refuse any advertisement it may fi nd unfi t for publication.

the opinions expressed in articles and features are of the writers and may not be those of the publisher.tHe PUBLisHer AssUMes nO resPOnsiBiLitY OF AnY Kind.

PUBLiCAtiOns MAiL AGreeMent #42226512Postmaster if undeliverable Canadian Address to #235-8138 128 st., surrey BC v3W 1r1

PublisherJGK Media inc. | 1-877-598-3374 (desi)

editor-in-Cheifdilbag (ron) dhaliwal

Associate editorJagmohan singh

Advertising & salesJag dhatt

Art directorAvee J Waseer

it Managerraj sidhu

Cover designwww.spicyCreatives.com

Contributing WritersKen Cooke, Pash Brar,

Jag dhatt, Mike Howe, dara nagra, ray Gompf, Ken davey, sonia nanda,

dr. Jagdeep Kaur

translatorOnkar singh saini

JAG dHAttCorporate VP

Editor’s Note / sMpwdkI

When I was a teen, my mom said the above lines to me and initially, the words were diffi cult to completely understand; until, she explained them to me in simple terms. She said that our brain controls our body and our actions, and this is the only part of our body that thinks. During a diffi cult time, we invest even more concentration to get out of the situation, and if you get upset, your brain can’t think properly and can’t give you the right decision. Rather, with an upset mind, most people make a wrong decision, which usually only makes the situation worse. Since the day my mom explained this to me, I’ve kept that prin-ciple in mind and whenever I get into such a situation, the fi rst

thing I say to myself is, “Keep yourself calm and don’t lose your head;” so far, have been able to successfully get out of these situations.

In our industry, we spend most of the time on the road, usually under pressure to reach our destinations on time. At the same time, we have to deal many ignorant moves by other drivers that drive us crazy. We may also have issues with our dispatchers, shippers, or receivers. But remember that if there is a problem, there is also a solution and our priority should be to keep our head calm and fi nd the right solution to solve the problem.

We are here with the September/October issue of Desi Trucking Magazine and in this issue we have included articles on various subjects. One of our articles deals with the prob-lem of undercutting of prices and although this is an issue in almost every industry, it is very prevalent in trucking. Let’s do the math? You can work 8 hours for $20/hr or work 20 hours for $8/hr. You need money to pay the bills but at the same time, you need quality time for yourself and your family. The choice is yours. As always, I wish you good luck and say,“God always bless Truckers.”

dilbag (ron) dhaliwal

Don’t Lose Your Head in a Difficult Situation…

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sePteMBer / OCtOBer 20148

Forest Fire Season

Forest fi re season is upon us. As I write this the wild fi res in British Columbia are burning areas about the same size as many countries in the world and the smoke from these fi res is contaminating breathing air right across Canada. While other provinc-es have yet to have too many critical fi res burning, there certainly will be huge tracts of land the will succumb to fi re over the next few months.

These fi res are a natural occurrence that leads to a regeneration of plant and animal life in the affected area and while we see the fi res as a disaster, especially when people’s homes and businesses are destroyed. But in reality, the fi res are just nature reclaiming it’s rightful place.

While we as a society fi ght these fi res and justly so, to protect our investments, there is always a huge amount of smoke and ash that can also have devastating results in far fl ung places from the fi re source.

so, why is this even relevant for trucking and truckers? Many of the routes, in Canada, on which we must travel and spend hours, even days, constantly breathing the smoke and ash from these fi res is critical to our health. Many of us will have to subject ourselves to the results of these huge fi res and for many of us breathing problems, even death, could

be a result. By constantly breathing the smoke and

ash, especially in the most polluted areas, our carbon monoxide levels increase. We can get to the point where we become overly tired and simply go to sleep and not wake up and they fi nd us after the fi re and bury us. We need to be able to protect ourselves from the effects of the smoke inhalation.

When you fi nd yourself in such a situa-tion, as they will arise faster than you can imagine, stop and get a towel; soak the towel in water to the point where the towel isn’t dripping but is very wet. Wrap this wet towel around your face from just below your eyes and wrapped well around your neck. Breathe through the towel. It will help re-move the ash from the air and take much of the smell of smoke away. It will ease the awful taste in your mouth and down your throat. The get yourself through and out of the smoke affected area as quickly and safely as you can. Once out of the smoke, depending on your ability to breathe and recover, take a few hours to breathe clean air and rest. This should clear your lungs and you should be able to continue. Do not accept another load that is going to put you back into a smoke and ash affected area un-til you are certain your lungs can handle to situation. If you have any breathing diffi -culties as part of your everyday life, such as

asthma, then you may actually have to seek medical care before continuing anywhere and possibly for a prolonged period of time.

In my driving history, I have sufferedthrough two major forest fi res. Back a few decades ago, there was a forest fi re that went through Northern Ontario and burned thousands of hectares of bush on Highway 17 from Raith to Kenora. While the fi re was dangerous, it was the smoke that did the most destruction. I made it safely into Winnipeg through the fi re on one day and then had to make the return trip back east the next. Being young and foolish, I as-sumed I’d have no problem. If I could make it through once, I could make it through again. Not so. The second day of breath-ing constantly, the smoke and ash from this fi re almost killed me. I had to seek medical attention on the return trip and was hospital-ized in Thunder Bay for two days basically on oxygen to help me recover. My carbon monoxide levels were at such a level, they wondered why I was alive.

The second one was in Virginia and West Virginia. I was on a trip from Burlington, North Carolina to Edmonton, Alberta. I was aware there was a problem in Virginia and West Virginia before I left, but this was one of those hot loads that just had to be there as quickly as I could get it there, no ex-cuses. So, I was prepared but still shocked

Forest Fire Season G. Ray Gompf

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sePteMBer / OCtOBer 2014 9

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September / october 201410

Forest Fire Season

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at what lay ahead. Not an hour along the highway I started to smell the smoke, but it was not heavy or even visible and I was just barely aware of the smell. But having remembered that other experience in a for-est fire, I was determined to make it through and not just survive but thrive. As soon as I became aware of the smell of the smoke, I did the towel thing. It helped a lot. As I progressed along the road, I started to see the flames in the bush on either side of the road. After about an hour and a half of driv-ing through the fire, then I reached the heavy smoke. It was thick and yellow and heavy. Even with the wet towel, I gagged. I could feel my headache progress from a mild pounding to a feeling as if I was being hit with a sledgehammer from inside my skull. I knew I couldn’t last much longer but I also knew if I stopped it would get me so I forced myself to go on. After another hour or so, I was finally out of the thick smoke and into clean air again. Again, I had to seek medical attention but this time I wouldn’t let them admit me to hospital. I got treated with some oxygen and after about two hours of treatment, I left and kept going. I shouldn’t have left North Carolina until the forest fire was over, or I should have taken a much lon-ger route to the destination. I did make it to Edmonton on that trip but it had taken quite a toll on my well-being.

The whole point to this story is that forest fires are part of nature. We have to be able to get the job done no matter what. We make it through blizzards and just complain. The blizzard doesn’t stop us from breathing but fire and smoke can take that ability away. Recovering from smoke inhalation takes considerable time. Even when we feel bet-ter, we haven’t recovered fully. Our lungs are weak after such exposure and that makes us much more susceptible to infections and serious problems.

The thing is you will be exposed to such disasters just because of what we do for a living. Make sure when you are exposed you mitigate the damage done you yourself and make sure you take the time to recover properly. And don’t go back into the fire zone anytime soon. Dispatchers. Make sure you consider the drivers under your control and don’t allow them to make a return to a fire zone for a considerable time. Even when the fire is out, there is that smell that will last for months. Just that smell can be devastating to some-one whose lungs have been challenged and compromised by forest fire smoke.

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September / october 2014 11

Roadcheck 2014: Total inspections increase, OOS rates decrease.The total number of commercial vehicles inspected in Roadcheck 2014 rose to near-record levels, while the number of vehicles or-dered out of service for major safety violations dropped for the third consecutive year, according to the latest figures from the Commercial Vehicle Safety Alliance.

CVSA’s annual Roadcheck campaign occurred June 3-5 this year, as certified inspectors across North America completed 73,475 truck and bus inspections during the 72-hour enforcement campaign, as stated in a press release issued Wednesday afternoon.The campaign saw a total of 49,656 North American Standard Level I inspections, in which vehicles and drivers are assessed for violations of federal, state or Canadian provincial safety regula-tions.

Of the Level I inspections conducted in Canada and the U.S., 23 percent were found with out-of-service violations, com-pared with 24.1 percent of the 47,771 vehicles given Level I inspections in 2013.

The overall percentage of drivers who were ordered out of service rose slightly to 4.8 percent, up from 4.3 percent in 2013. There were a total of 72,415 driver in-spections. This could be a result of the adjustment to HOS rules. In addition to those violations, CVSA in-spectors issued 825 seatbelt violations.An added area of emphasis in this year’s campaign

was hazardous materials/dangerous goods regulatory compliance. A total of 5,738 inspections included HM/TDG during this year’s event, with 919 (16.0 percent) found with vehicle OOS violations and 172 (3.0 per-cent) with driver OOS violations.

Brake adjustments and brake systems once again were the most common violation resulting in a vehicle being placed out of service, and account for 46.2 per-cent of all OOS violations issued. Hours-of-service vio-lations were the most common violation resulting in a driver being placed out of service, accounting for 46.5 percent of all driver violations.CVSA estimates that for this year’s International

Roadcheck, more than 10,000 CVSA and FMCSA in-spectors participated at approximately 2,500 locations across Canada and the United States.

Facts at a glance:2014 driver inspection results (per CVSA):• All inspections that included drivers: 95.2 percent

of drivers had no OOS violations, and 4.8 percent were placed out of service (4.3 percent were out of service in 2013).

• Level I inspections: 96.0 percent of drivers had no OOS violations, and 4.0 percent were placed out of service (4.3 percent were out of service in 2013).

• Hazmat: 97.0 percent of drivers carrying hazmat had no OOS violations, and 3.0 percent were

placed out of service (2.4 percent were out of service in 2013).

• Passenger-carrying vehicles: 96.1 percent of drivers had no OOS violations, and 3.9 percent were placed out of service (3.1 percent were placed out of service in 2013).

vehicle results for 2014 were as follows:• All inspections that included vehicles: 81.3 percent of ve-

hicles had no OOS violations, and 18.7 percent were placed out of service (20.6 percent were out of service in 2013).

• Level I inspections: 77.0 percent of vehicles had no OOS violations, and 23.0 percent were placed out of service (24.1 percent were out of service in 2013).

• Hazmat inspections: 84.0 percent of vehicles carrying hazmat had no OOS violations, and 16.0 percent were placed out of service (16.5 percent were out of service in 2013).

• Passenger-carrying vehicles: 90.7 percent of vehicles had no OOS violations, and 9.3 percent were placed out of service (7.1 percent were out of service in 2013).

Desi News

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September / october 201412

TECH TID-BITS by JAG DHATT

According to Volvo, the new 2016 VN series highway tractor will deliver even better

fuel efficiency, and thus savings, as compared to earlier models. Changes to the bumper, chassis, and roof fairing designs will reduce air turbu-lence around the vehicle exterior and will improve air flow under the truck, around the tires, and in

the trailer gap. In addition, Volvo is building upon its XE – eXceptional Efficiency – packages with

improved gearing modi-fications to further boos fuel economy. Finally, de-pending on the rear-axle load, the new overdrive system can sense and lock out the 12th gear and provide performance and fuel-efficiency of direct drives.

FleetCor Technologies, Inc. will acquire Com-data from Ceridian LLC for $3.45 billion by

December of 2014. This merger is a natural one and FleetCor.’s CEO, Ron Clarke, is very excited about bringing the two companies together. FleetCor is a global provider of fuel cards and

workforce payment products to businesses while Comdata provides fleet, virtual card, and gift card payment systems to over 20,000 customers. Comdata has about 1,300 employees and does over $54 billion in payments annually. The acquisition of Comdata by FleeCor follows a trend of companies investing heavily in the fuel card business.

Three new UPS centres will be opening in BC in order to expand its operations

in Canada and support new jobs. The three centres are slated for Kamloops, Nanaimo, and Comox; in addition, the Kelowna office will also be expanded and upgraded. UPS Canada

president Michael Tierney said, “Expanding our service in BC and across Canada is fueled by market opportunity and customer demand. UPS continues to invest in new capabilities and network capacity to secure customers’ confidence and enable their long term growth.” The expansion and opening of the four centres will represent a multi-million dollar investment and will provide about 80 jobs. The planned expansions are expected to be completed by November of this year.

Building on its already existing MP8 platform, Mack has announced a new 505-hp Mack

MP8, called the 505C+. This new engine will be churning out a whopping 1,860 ft-lb of torque and should increase fuel efficiency.

Mack says the engine, “is ideal for long-haul applications, especially those in mountainous terrain,” where extra power and torque is necessary. Now available for order and delivery, the new engine is available in the Mack Pin-nacle Axle Forward and Axle Back models.

Carrier Transicold, a company built on helping improve transport and shipping of temper-

ature-controlled cargoes, says its new APX remote panels add convenience and efficiency for refrigerated transport. These remote panels, now placed in locations more easily accessible to operators, are available in two configurations: “flush-mount,” designed for mounting inside the trailer near the doors and, “surface-mounts,” for

use on trailer exteriors. Both configurations of panels include the same dashboard display – a large, backlit screen, lined by labeled controlled buttons and menu keys – which makes operation easy and intuitive. These new panels incorporate the same plug-and-play control setup of Carrier Transicold’s latest units by using CAN bus com-munication protocols.

Do you want to design and build your own Model 579? It’s pretty straight forward,

according to Peterbilt. Simply use the new configurator tool at www.peterbilt.com and from there, pick a colour, select sleeper or cab, and fine tune your PACCAR MX-13 engine. Accord-ing to those who have used it, the new online configurator tool is fun, immersive way to build your custom Model 579. From the comfort of your own home, customize your truck virtually

and then save and email an image of it to your nearest Peterbilt dealership. Just like online

automobile configu-rators, each time a selection is made, the screen shows an updated image based on the user’s choices. Options for configuration include sleeper or day cab, interior trim

packages, exterior colour, axles, aerodynamic fairings, bright options, and performance levels for the MX-13 engine.

For 2015, Freightliner Trucks has announced that the Cummins

Westport ISX12 G heavy-duty natural gas engine will be available as a factory-installed option for the 114SD severe-duty truck in 2015. This natural gas engine coupled with the severe-duty truck will be ideal for jobs such as mixer, crane, and sewer vac. Ratings of up to 400 hp and 1450 ft-lbs of torque will come from this

12-liter natural gas engine, which can operate on compressed natural gas (CNG) or liquefied natural gas (LNG). The 114SD was available with a CNG option with the 9-liter Cummins Westport, but a larger displacement engine was needed for severe jobs. Freightliner has sold more than 3500

natural gas-powered trucks since 2008 and this is another addition to an already successful fleet.

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sePteMBer / OCtOBer 2014 13

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U.S. Department of Transportation Annouces Advance Notice of Proposed Rulemaking to Begin Implementation of Vehicle-to-Vehicle Communications Technology WASHINGTON – The U.S. Department of Transportation’s (DOT) National Highway Traffi c Safety Administration (NHTSA) August 20, 2014 released an advance no-tice of proposed rulemaking (ANPRM) on vehicle-to-vehicle (V2V) communica-tions technology.

“Safety is our top priority, and V2V technology represents the next great ad-vance in saving lives,” said U.S. Trans-portation Secretary Anthony Foxx. “This technology could move us from helping people survive crashes to helping them avoid crashes altogether – saving lives, saving money and even saving fuel thanks to the widespread benefi ts it offers.”

The report includes preliminary esti-mates of safety benefi ts that show two safety applications - Left Turn Assist (LTA)

and Intersection Movement Assist (IMA) – could prevent up to 592,000 crashes and save 1,083 lives saved per year. Put another way, V2V technology could help drivers avoid more than half of these types

of crashes that would otherwise occur by providing advance warning. Additional ap-plications could also help drivers avoid im-minent danger through forward collision,

blind spot, do not pass, and stop light/stop sign warnings.

“By warning drivers of imminent dan-ger, V2V technology has the potential to dramatically improve highway safety,” said NHTSA Deputy Administrator David Friedman. “V2V technology is ready to move toward implementation and this re-port highlights the work NHTSA and DOT are doing to bring this technology and its great safety benefi ts into the nation’s light vehicle fl eet.”

The information sent between vehiclesdoes not identify those vehicles, but mere-ly contains basic safety data. In fact, the system as contemplated contains several layers of security and privacy protection to ensure that vehicles can rely on messages sent from other vehicles.

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in today’s competitive world the trucking industry needs to un-derstand and apply formal sales strategies to monitor the profi t-ability of their freight orders. Selling-Chain Management is an application framework that helps sell better, more effectively and across all channels by establishing linkages between previously disconnected sales functions within a company. The focus of sales processes is to secure a customer relationship for the longer term and earn their trust for more customer referral business opportuni-ties. Every company needs to re-evaluate their selling strategies based on the economic environment and changes in customer de-mands. There are tremendous changes which are affecting the way traditional selling used to work. Now, the focus is on the buyer, what they want, when they want it, and how they want it.

Software suites need to support these requirements by provid-ing such functionalities as sales lead management, confi guration, dynamic pricing, order entry, order management, product catalog, available to promise, proposal & quote and commission. SCM is an integrated order acquisition strategy set in a multi channel envi-ronment. The complete integrated selling chain application archi-tecture breaks the departmental walls and supports complete order life cycle that involves Inquiry/Prospect, Customization, Commit and Order processes. The goals of SCM business strategy are to:

• Make the ordering process easier for the customers• Add value for the customers• Make it easy to order customized products• Increase sales force effectiveness• Coordinate team selling

There are a number of business forces driving the need for implementing scM. some of these forces are:

• The rise of the Self-Service Order• The excessive cost of Presales technical support

sales – Taking a Technical aPProachsylz Bwv iv`krI nUM vI qknIk dI loV hY

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sePteMBer / OCtOBer 2014 15

There is no such thing as a stupid question

tRylr au~pr isr& pihlI Aqy Aw^rI ikSq hI idE (O.A.C)

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September / october 201416

Sales – Taking a Technical Approach

• The increasing cost of order errors• The proliferation of channels• The increasing complexity of products• The rise of deregulation and mergers and acquisitions• The increasing of online sales through IRM (Internet Relation-ship Management)The elements of an scM infrastructure include:• Sales Configurator: For complex order processes involving build-to-order products, configuration is a basic prerequisite for doing business. Modern system configurators are designed to go beyond checking to see whether a product is configured correctly. They embrace the needs of the customer and enable a sales force to generate requirement-based configurations and quotes.• Pricing: Selling complex products requires effective pricing con-figuration support. Pricing configuration and update management tools assist companies with developing, managing, and deploying complex pricing and discounting structures to their selling channels.• Proposal and Quote Generation: This includes opportunity creating and tracking, interactive needs assessment, automatic quote generation and proposal wizards.• Commission and Contract Management: There are three core modules: incentive design, incentive processing, and incentive analysis. Compensation design, planning, contract management and processing are the most complex, error-prone and time con-suming areas.• Order Entry and Management: The order entry and acquisi-tion process goes through a series of steps like:

1. Identify potential customer2. Understand customer needs3. Validate needs with customer4. Develop alternative scenarios5. Translate into production terms6. Determine configuration, cost and price7. Determent terms, availability and delivery8. Present Bid/Proposal to customer9. Evaluate and revise bid10. Prepare Order

• Internet Relationship Management (IRM): It helps deliver tar-geted, dynamically generated content to a company’s customers. It is used to manage customer interaction and for deriving revenues.

scM applications are attempting to solve problems in:

1. Standardizing best selling practices2. Closing more sales3. Increasing average order size4. Multi channel selling

A multi channel selling infrastructure is necessary for a company to manage all facets of the order process. Following this process, companies attract new prospects by providing them with easy ac-cess to product and service information before they buy. After the sale, the same level of service builds the type of loyalty that turns customers into company advocates, resulting in up-selling and cross-selling opportunities, as well as new customer referrals. This way, CRM and SCM really helps the company to attract custom-ers, make sales, and then retain them as lifetime customers.

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The American Trucking Associations (ATA) told Congress today that the trucking industry invests more than $7.5 billion every year in preventing crashes on US highways.“The trucking industry places safety at the top of its priority list,” ATA executive vice-president Dave Osiecki told the Senate Com-merce Committee’s subcommittee on surface transportation and merchant marine infrastructure, safety and security. “Our industry spends more than $7.5 billion each year on safety, and that invest-ment is making a difference.”He pointed out that over the past decade the number of large trucks involved in fatal crashes has dropped 17% – even with the indus-try operating an additional 2.7 million trucks and driving an ad-ditional 54 billion miles. “More trucks, billions more miles, fewer

crashes.”The $7.5 billion in investments goes towards things like safety training, safety-related bonuses and safety technologies. Osiecki said the investments are only part of the solution and called on the federal government to do more to address the causes of crashes.“Driver error causes most crashes. More specifi cally, driver mis-takes and driver misbehaviours – by both professional drivers and passenger vehicle drivers,” he said, pointing out that behaviour and actions of car drivers contribute signifi cantly to truck crash numbers.“If the regulatory, enforcement and safety program lens is focused properly on the most common mistakes and misbehaviours by all involved in the safety equation, big safety gains are possible.”

Canada and the U.S. have named the members of the international authority that will oversee the construction of the new publicly owned bridge connecting Windsor, Ont., and Detroit.Canadian Transport Minister Lisa Raitt and Michigan Gov. Rick Snyder made the announcement in Windsor last month.The Windsor-Detroit Bridge Authority (WDBA) will consist of:Kristine Burr (Chair) and Geneviève Gagnon of Canada and Mi-chael D. Hayes, Birgit M. Klohs, and Matt Rizik of the US. A third Canadian member will be named later.The group of six will oversee and approve key steps in the pro-curement process for the new crossing. It will also monitor com-pliance of the Windsor-Detroit Authority with the crossing agree-ment, signed by Canada and Michigan in 2012.Raitt also announced appointments to the board of the authority: Michele (Michael) Cautillo, president and CEO. Cautillo is a civil engineer who has worked as a transportation specialist and partner in Deloitte’s Ontario Infrastructure Advisory and Project Finance group; Mark McQueen, chair of the board of directors; William Graham, and Caroline Mulroney Lapham, daughter of former prime minister Brian Mulroney, as directors.The Windsor Detroit Bridge Authority will be the manager of “all

parts of the project” in Canada and the U.S. once it’s built, Raitt said. It will also set and collect tolls.Canada has agreed to pay for construction of the bridge and will recoup its costs through tolls.Last month, the long-awaited binational border crossing obtained its fi nal approval via permit from the U.S. Coast Guard after a U.S. court rejected a request for an injunction fi led by the owners of the existing private Ambassador Bridge.The next step involves securing funding for a U.S. customs facil-ity, along with acquiring land on the American side.A proposal to transfer 301 Detroit-owned properties to the Michi-gan Land Bank in exchange for $1.4 million from the Canadian government as part of plans for the crossing was delayed Monday, CBC reports.Sources tell The Canadian Press the panel is expected to try to move the project forward, but the proposed New International Trade Crossing will still need $250 million in U.S. funding to build a new U.S. Customs and Border Protection plaza in Detroit.If everything goes smoothly, the bridge is expected to open in 2020.

Trucking invests $7.5 billion a year in safety

new publicly owned bridge connecting Windsor, ont., and detroit.

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withTrucking Trucking

with

By: PAsH BrAr

- Pash Brar B.A. Pash is a mobile leasing representative with Auto One Leasing LP in Vancouver. She has a banking, collections and accounting background. She specializes in

importing vehicles and trailers from the USA.

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jdoN AsIN iksy lof qy bolI idMdy hW qW swnUM pYsy kmwaux leI bhuq swrIAW glW dw iDAwn rKxw cwhIdw hY[ ienHW ivc kIqw jwx vwlw sPr, qyl dw Krcw, bImy dI koeI vwDU lwgq, vwDU primtW dI lwgq, ldx Aqy lwhux nUM lgw smW, vwpsI qy lof, fRweIvr dI qnKwh Aqy trk Aqy trylr dI sWB-sMBwl ieq Awid[ ijs lof qy vI bolI dyxI hY aus smyN ienHW glW nUM zrUr iDAwn ivc rKxw cwhIdw hY[ jy kImq ieMnI Gt hY ik koeI Pwiedw hI nhIN qW nukswn Kwiqr Bwr Fox dI kI loV hY[ ies qrHW dIAW kMpnIAW vI hn ijhVIAW Gwty qy lof FoA rhIAW hn[ aunHW sbMDI ieMfstrI dy lokW dw kihxw hY ik ieho ijhy hI lok hn ijhVy Aj trikMg ieMfstrI nUM qbwh kr rhy hn[

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Gt kImq qy Bwr Fox dw kuhwVw trk fRweIvr dy isr qy hI cldw

trikMg ‘c Gtw-Gtw ky kImq dyxI

there is competition in every industry, including trucking. A very common way of overcoming competition in trucking is to undercut when bidding for the load. By undercutting, I mean to offer a lower price than your competition for a load. This es-sentially takes that load away from the competition. Now that the load has been obtained by offering the lower price, has it neces-sarily made that company any money? Often the end result may not be all it seems.When bidding on a load, there are obvious factors that must be taken in to account to earn money. The distance being travelled, fuel being consumed, any extra insurance costs, extra permit costs, time to load and unload, is there a backhaul, pay to the driver, truck and trailer maintenance etc. These factors must be taken in to account for each load bid on. If the price is too low to make money, why would anyone take a load for a loss? There are companies which are taking loads for a loss, and many in the industry are saying it is these companies which are destroying the current trucking industry today.In BC there was a strike in March of 2014 at Port Metro Van-couver due mostly to pay issues. Rates, unpaid time spent wait-ing and undercutting were the big issues. Hundreds of millions of dollars worth of cargo was left stranded at the docks during the 28 day dispute. In June 2014 there was a strike threatened again because the pay increases promised from the previous dis-

UNDERCUTTING IN TRUCKING

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smW bIqx nwl tr`k ieMfstrI iv`c vI ihaUmn rI-sorsz iv`c qbdIlI Aw geI hY[ie`k smW sI jd tr`kW vwilAW dy p`uqr hI tr`k vwly huMdy sn Aqy ie`k jutqw mwdw aunW dy KUn iv`

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pute settlement were not being honored which should have taken place on April 3. They were accusing companies of not paying the agreed pay increases all to make a profi t. When loads are undercut, there are very few ways to now earn a profi t, and often it is at the expense of the truck driver. Pay the driver less so the company can earn a profi t.

The truck driver is who often suffers the wrath of undercutting. Recently in BC a few trucking companies banded together to un-dercut each of their loads by $400. I have a few drivers working for one of the companies. They immediately left to go work else-where and so did most of their colleagues. Other trucking com-panies were lining up to hire the disgruntled truckers. The drivers I know personally who left are hardworking, honest men trying to support their families. As they told me, they cannot provide for their families by staying with a company who agreed to undercut loads and make them pay for it. Running at a loss was not an op-tion for the drivers.

I see the pay statements for all of my drivers. I see pay discrep-ancies on most of them. The rate does not match what the driver has written on their pay envelope. Drivers tell me that they ask for the rate and are sometimes not even told and have to take a load not knowing if they can cover even their fuel costs. Or they ask one day and its one rate, and the next day the same load is a different rate, and their friend at the same company is quoted another rate entirely for the exact same load. I had to deal with a wife of one of my drivers who was crying her eyes out. She was asking why the company couldn’t just pay her husband who risked his life every day driving to feed their family, honestly. He left that company I’m happy to say along with 14 others. Without drivers, you have no business.

With competition everywhere, undercutting is not the only way to get a load and to earn a profi t. Whether it’s in trucking or in any business, we all have competition. It’s how we deal with that competition that sets us apart. Prompt courteous service and cus-tomer service is an excellent tool. Competition helps businesses to build loyalty to your good service. When others offer the same services you do, you must distinguish yourself. Education and innovation are invaluable. See what competitors are doing right and wrong and learn what you can do to make your business that much better. In trucking it’s your drivers who are your service tools. Educate them and work as a team. Learn your core market with the drivers. They’re the one’s seeing everything on a daily basis. Get their feedback and have them participate in the com-pany. When the drivers are happy and involved, and earning a profi t, the whole industry earns a profi t.

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mYN swry fRweIvrW dIAW qnKwh dIAW stytmYNtW dyKdw hW[ bhuiqAW ivc mYnUM pYisAW dw Prk nzr Aw irhw hY[ jo aunHW dy pyA vwly il-PwPy qy iliKAw hoieAw hY aus dw ryt auh nhIN hY[fRweIvr mYnMU dsdy hn ik auh ryt bwry nhIN puCdy Aqy keI vwr aunHW nUM pqw vI nhIN huMdw ik ies lof dw ryt kI hY[ ieh vI Sk rihMdI hY ik kI auh ies lof nwl Awpxy qyl dw Krcw vI pUrw kr skxgy[ iek idn qW aunHW nUM iek ryt idqw jWdw hY qy Agly idn aus qrHW dy lof leI vKrw ryt idqw jWdw hY[ ieh hI nhIN ausy kMpnI ivc kMm krdy aunHW dy dosqW nUM aus qrHW dy lof leI vKrw ryt idqw jWdw hY[ mYnMU iek fRweIvr dI pqnI nUM imlx dw mOkw imilAw ijhVI Awpxy duKVy ibAwn kr ky ro rhI sI[ aus dw ieko iek svwl sI ik kMpnI, aus dy pqI ijhVw AwpxI jwn zoKm ivc pw ky Awpxy pirvwr dI rotI pwxI dw jugwV krn leI iemwndwrI nwl kMm krdw hY, nUM TIk BwVw ikauN nhIN idMdI[ mYnUM audoN KuSI hoeI jdoN auh Awpxy 14 swQIAW nwl aus kMpnI nUM Piqh bulw igAw[fRweIvrW qoN ibnw koeI kMm nhIN ho skdw[

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September / october 2014 21

What is Your Credit Score?

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Desi News

Safety Advisory: Students and Motorists Reminded to Be Safety Conscious In and Around School Zones and Bus StopsWASHINGTON – As a brand new school year begins, the U.S. Department of Transportation’s National Highway Traffi c Safety Admin-istration (NHTSA) reminds parents, students and motorists to be alert and to put safety fi rst in school zones and near school bus stops.

According to NHTSA data, over the past 10 years, 44 school-aged children and teens between the ages of 5-19 were killed in school zones traveling to or from school.* Out of that number 77 percent (34) were pedestrians either struck by a school bus or another vehicle.

NHTSA’s August edition of Safety in Numbers provides the following safety tips:

Teach children how to stay safe around a school bus:

• Stand at least six feet (three giant steps) from the approaching school bus while waiting at the bus stop.• Wait to board the bus until the driver says it is safe.• When getting off of the bus, cross the street in front of the bus and make sure the bus driver sees you.• Always watch for oncoming traffi c when approaching or leaving the bus.

How motorists can keep kids safe around the school bus:

• When driving in neighborhoods with bus stops, schools and school zones, watch out for children walking or bicycling to school.• Slow down. Look for children walking in the street, especially if there are no sidewalks in the neighborhood.• Remember, children do not easily estimate vehicle speeds and often misjudge when it is safe to cross the street when a vehicle

is approaching.• Learn and obey the school bus laws in your state. Obey the “fl ashing signal light system” that school bus drivers use to alert

motorists of pending actions:• Yellow fl ashing lights indicate that the bus is preparing to stop to load or unload children. Motorists should slow down and pre-

pare to stop their vehicles.• Red fl ashing lights and extended stop arms indicate that the bus has stopped, and children are getting on or off. Motorists must

stop their cars and wait until the red lights stop fl ashing, the extended stop sign is withdrawn, and the bus begins moving before they can start driving again.

Volvo Trucks. Driving Progress

When you demand power and performance, count on the VNX to help your operation run better

and more profitably every day. It is a heavy-haul tractor featuring a Volvo D16 engine delivering up to

600 hp and 2050 lb-ft of torque. Increased vocational ride height provides greater ground clearance

and accommodates more articulation and improved front ramp angle. With its 16,000-lb front axle,

46,000-lb rear axle, and up to 60,000-lb centre tow pin capacity, the VNX is engineered for long

combination vehicles, heavy equipment hauling, aggregate, low-boy, logging, oil and gas – any

on-highway application that requires maximum strength, reliability, and efficiency.

Learn more at volvotruckscanada.com.

VNX Heavy Haul

ExtremePowerPlus

Class Preliminary 8 Net Orders Strong in a Historically Weak MonthCOLUMBUS, IN – Demand for commercial vehicles remained at healthy levels in July as 45,400 total NA Classes 5-8 orders were booked. In the ten months since the start of stronger orders last Oc-tober, NA Classes 5-8 net orders have been booked at an average of 45,200 units per month. Annualized, that represents a total Classes 5-8 order volume of 542,400 units.“In July, historically the weakest month for order volumes, NA Class 8 net orders again rose above expectations to a six-month high 29,900 units,” said Kenny Vieth, ACT’s President and Senior Analyst. “That volume marked an improvement of 12% from June and 70% compared to year-ago July,” said Vieth. “In addition to a continuation of the ongoing strong order trend, some of the non-seasonal strength in July might be related to the rapidly dwindling supply of available build slots in 2014.”

Concerning medium duty net orders, Vieth said, “July’s preliminary 15,500 NA Classes 5-7 net orders fell almost perfectly between the May and June volumes. The preliminary result is also middle of the road in terms of comparisons: up 3% m/m, but down 4% compared to year ago levels, making a third consecutive below year-ago read-ing. Part of the recent occurrence of modest negative y/y compari-sons can be chalked up to tough comps: the MD market began to strengthen appreciably starting in April of last year.”

Vehicle-to-vehicle (V2V)communications technologyThe National Highway Traffi c Safety Administration says it will study vehicle-to-vehicle (V2V) communications technology.According to trade media reports, the NHTSA issued an advanced notice of proposed rulemaking that could eventually lead to a man-date for certain V2V technologies in light vehicles.It is thought that V2V technology could be part of future systems aimed at improving passenger car and truck safety via telematics and on-board short-range communications between vehicles on the road.NHTSA said V2V communications technologies that help motorists avoid accidents at intersections could save 1,083 lives per year and prevent up to 592,000 crashes.“This technology could move us from helping people survive crash-es to helping them avoid crashes altogether,” said U.S. Transporta-tion Secretary Anthony Foxx in a statement.NHTSA plans to work on a proposed rule on V2V communications for release sometime in 2016, the agency said.Developers are already experimenting and testing V2V technology in the trucking world. California based Peloton Technologies, for example, is developing a system that uses radar-based collision mit-igation equipment and V2V communication technology to enable the close-in platooning of two tractor-trailers.

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sePteMBer / OCtOBer 2014 23

Volvo Trucks. Driving Progress

When you demand power and performance, count on the VNX to help your operation run better

and more profitably every day. It is a heavy-haul tractor featuring a Volvo D16 engine delivering up to

600 hp and 2050 lb-ft of torque. Increased vocational ride height provides greater ground clearance

and accommodates more articulation and improved front ramp angle. With its 16,000-lb front axle,

46,000-lb rear axle, and up to 60,000-lb centre tow pin capacity, the VNX is engineered for long

combination vehicles, heavy equipment hauling, aggregate, low-boy, logging, oil and gas – any

on-highway application that requires maximum strength, reliability, and efficiency.

Learn more at volvotruckscanada.com.

VNX Heavy Haul

ExtremePowerPlus

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September / october 201424

Understanding Torsional Vibrations

KEN COOKEOwner - COASTLIne TrAnSMISSIOn

A POwerTrAIn SPeCIALIST wITh

MOre ThAn 35 yeArS Of exPerIenCe

Understandingtorsional Vibrations…

The basic function of the clutch on modern heavy-duty diesel engines is to stop torsional vibrations from reaching the transmission and other drivetrain components. In fact 90% of the clutches work cycle is dampening vibrations from the engine to the driveline. This is accomplished with spring dampers in the clutch disc. These coil springs compress with the application of torque and transmit force to the spring covers which are at-tached to the disc hub, thus transferring vibration free torque to the transmission input shaft.

There are three basic categories of torsional rates for clutch dampers: rigid, standard and soft damper.

Rigid Dampers have no springs and act as a direct link from the engine to the transmission providing no protection against tor-sional vibration. Rigid clutch discs are never used in new OEM applications.

Standard Dampers include all 10-spring and most 8-spring types. The springs used in these dampers are approximately 1.5” long and do not offer a large amount of protection. While these dampers were completely adequate for most heavy-duty applica-tions several years ago, they are generally incapable of reduc-ing the engine flywheel vibrations developed with modern slow speed electronically fueled engines. The use of standard dampers in heavy duty applications has virtually ceased in modern OEM applications. The trend is to use more capable soft-rate dampers.

Soft-Rate Dampers such as those found on Eaton’s new 7-spring Advantage Series® heavy-duty clutches, offer much

better protection against engine flywheel induced torsional vi-brations. Their springs are generally longer than springs used in standard rate dampers and offer more deflection before coil lock occurs. This larger spring deflection is equated to lower torsional spring rate. With lower torsional rate, the resonant frequency of the complete drivetrain is lowered.

Advantage Series® clutches offer the performance, reliability and protection you need to stay productive and profitable. These new industry leading clutches offer advanced features like a new bearing housing design, longer lube intervals, a protected inter-nal adjustment mechanism with a full-round contamination baffle and square adjusting ring threads that reduce the risk of sticking and seizure. Advantage clutches also come with a 2 year warranty backed by the Roadranger® support network.

Conclusion - Older style 10-spring clutches are not capable of dampening the damaging torsional vibrations on modern elec-tronic engines. When peak engine torque exceeds the damper ca-pacity, the driveline will be abused. This abuse will cause faster wear and potentially damage your transmission, driveline and differentials. Since damper capacity is a product of the springs, changing the number and type of springs changes the stiffness of the entire system. Maximum drivetrain component life can be achieved by using a clutch that was designed and engineered for your engine.

When you need to replace your clutch, phone Coastline Trans-mission and Differentials at 604-533-4651 and ask us for a quote to install a new Advantage Series genuine Eaton 7-spring clutch.

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September / october 201426

Desi News

Changes to Temp Foreign Worker Program Devastates Atlantic Carriers

EAGAN, MN —Canadian trucking giant TransForce has one of their US Companies, Transport America, increasing driver pay for all current and potential drivers.

Class of operator Pay increase

Owner Operators +2 cents per mileTeam Drivers +1 cent per mileHazmat pay +4 cents per mileNewly hired drivers up to 40 cents per mileFour years experienced drivers 43 cents per mile

Could this trend be coming to Canada anytime soon?Or will the bean counters at TransForce figure out that being paid by the mile is inherently unfair?TransForce is big enough to effect a major upheaval in the way drivers and owner operators are paid, and make it a fairer playing field, however, will they do so?

Two or three cents a mile isn’t going to have TransForce recruiters living the easy life, in fact, it won’t change much at all. Discovering a methodology to pay drivers paying them for all they do, not just the “wheels turning” portion, will.

DIEPPE, NB — Truck Carriers in Atlantic Canada are devas-tated by how quickly the negative effects of the changes made to the Temporary Foreign Worker Program (TFWP) last month has been.

“We are in disbelief,” says Jean-

Marc Picard of the Atlantic

Provinces Trucking Association (APTA). “The changes imple-mented to the Temporary Foreign Workers program by Minister Ken-ney a month ago are already having an impact on carriers in Atlantic Canada. Applications are being denied or delayed with poor re-sponses from the Department of Immigration on any questions about the program”.

“A long-haul truck driver in Atlantic Canada is a high wage oc-cupation because they are paid more than the provincial average

for truck drivers,” Picard says. “Carriers are now faced with a di-lemma; they need to fill empty truck seats and there are no drivers to recruit! Parking trucks is now a reality for some carriers, which mean loss of jobs, less tax money coming in and freight contracts being trucked by out of province carriers.”

“Now truck carriers are all competing

for the same drivers and there aren’t that many of them available,” Picard says. “The Government needs to realize how important the trucking industry is to our economy. Without it, goods don’t move and without drivers, trucks don’t move.”

Minister Kenney has called for a phase

out “low skill stream” jobs. Obviously, Minister Kenney has no idea of the skill involved in truck driving, or the responsibility placed upon the driver.

CHICAGO, IL—The number of trucks in use around the world will double between 2014 and 2035, according to Navigant Re-search, a provider of global clean technology analysis.

Not only will there be more trucks on the road, but the worldwide sales of alternative fuel vehicles will climb to 14 percent of trucks by 2035, Navigant predicted in its newest report.

“Low fuel costs and advances in infrastructure for both liquefied natural gas and fast-fill compressed natural gas make the fuel com-petitive in all market segments, including heavy duty long-haul trucking,” said Scott Shepard, Navigant research analyst. “Attrac-tive business cases for medium and heavy duty alternative fuel vehicles are emerging across varying segments of the market.”

Medium and heavy-duty vehicles currently represent less than five percent of the total vehicle market, but that’s changing as less expensive alternatives to petroleum-based fuels, such as natural gas, liquefied petroleum gas and electricity make inroads in the market.

“Natural gas has a significant advantage over most alternative fu-els,” Shepard said.

Still, diesel will remain the primary fuel choice for trucks, the report claims, but the percentage of trucks powered by diesel is expected to fall from more than 79 percent in 2014 to 76 percent in 2035.

14% of Trucks Sold by 2035 Will Run On Alternative Fuel

TransForce Owned Carrier Raises Driver Pay

Page 27: Eastern DT_SO_2014

September / october 2014 27

Desi News

CASE accreditation For Mack and Volvo Training ProgramsGREENSBORO, N.C. – The National

Institute for Automotive Service Excel-lence has bestowed Continuing Automotive Service Education (CASE) accreditation upon Mack Trucks Academy and the Volvo Trucks Academy as announced today.

The accreditation program stringently re-

views the training programs of providers against the industry standard to ensure best practices are being met.

Both Mack and Volvo were proud to receive

the accreditation.

“Receiving CASE accreditation spotlights

the high-quality training programs offered through Mack Trucks Academy,” said Ste-phen Roy, president of Mack Trucks North American Sales and Marketing. “Meeting CASE standards shows Mack’s commit-ment to developing exceptional training programs to help increase the service and support for our customers while continuing to support our dealers.”

The Mack Trucks Academy provides train-ing for 14 different dealership job roles, like parts and service and technician, as well as training for drivers across the US and Canada.

Volvo Trucks Academy also provides deal-ership sales, parts, service, technician and driver training programs both online or at six of their locations in Canada and the US.

“CASE accreditation drives continuous

improvement of our instructional program and differentiates us within the heavy-duty truck industry,” said Göran Nyberg, presi-dent, Volvo Trucks North American Sales & Marketing. “Exceptional training is vitally important for the success of our dealer net-work and drives a greater value of owner-ship for our customers. Accreditation also validates the quality of training we provide to customers who operate their own service networks.”

Lubrication Basics Seminars from FLO ComponentsMISSISSAUGA, Ont. – FLO Components has announced its upcoming 2014-2015 Lube Basics seminars schedule.

The seminar will cover the basic principles of friction -- wear and tear, grease proper-

ties and lubrication. The seminars to be held in cities across Ontario are designed to help people avoid common lubrication failures by making them lubrication specialists.

“Each 1-day seminar will have a balance

of theory and practical – 50% of the time will be your traditional in-class training, 50% will be more ‘hands on’ training,” said Gabriel Lopez, FLO’s marketing specialist. “These seminars are designed and present-ed as an unbiased, 3rd party, vendor neutral lubrication training program – we don’t bring people there to sell them on our prod-ucts, we teach them what they need to know about dealing with everyday lubrication is-sues, so when they apply what they learn, their payoff is immediate and permanent.”

The dates and locations of the semi-nars are as follows:

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Page 28: Eastern DT_SO_2014

September / october 201428

Desi News

Overall U.S. freight tonnage will rise nearly 25% and revenues from that freight will surge above 70% over the next decade, per the latest long-term freight forecast released by the American Trucking Assns. (ATA).

The ATA U.S. Freight Transportation Forecast to 2025 predicts further growth not just for trucking industry, but for the entire freight economy, according to ATA chief economist Bob Costello.“We continue to see growth for the entire freight economy– but we also see that trucking will maintain its position as the nation’s dominant mode of freight transportation,” Costello commented.Forecast was produced by ATA in collaboration with IHS Global Insight.

Findings of the long-range freight outlook include:• Overall freight tonnage will grow 23.5% from 2013 to 2025 and freight revenues increase by 72%• Growth in overall freight volume is pegged at 2.8% per year from 2014 to 2019, then it tapers off to 1.0% during the next six years, through 2025• Trucking’s share of freight tonnage will increase from 69.1% in 2013 to 71.4% in 2025• Rail intermodal tonnage will grow 5.5% annually through 2019 and 5.1% a year through 2025— yet rail market share will shrink from 14.5% of all tonnage in 2013 to 13.8% in 2025Forecast also breaks down freight movements regionally, by both percentage of inbound and outbound tonnage.“Truck freight generated nearly $682 billion in revenue last year, which is a new record,” stated Costello in introductory remarks to Forecast.

“According to IHS Global Insight,” he continued, “total truck ton-nage, including for-hire and private carrier operations, hit 9.68 bil-lion tons in 2013, the highest level since 2008. As of last year, total tonnage was up 13.6% from the low in 2009.”

Costello remarked that “despite the slow [economic] recovery so far, the long-run [freight] outlook still remains bright for nearly all modes.”

He added that key contributors to the projected “robust growth” will involve “many factors,” including trends in manufacturing, consumer spending and international trade.

Trucking trends the report highlights:• Trucking will increase its share of the freight pool because trucks dominate the transportation of general commodities— and those will continue to grow at a faster rate than bulk commodities. Trucking will also gain from rising U.S. crude oil and natural gas production• As demand/production of key truck-oriented commodities im-proves, trucking’s market share of tonnage should expand to 70.9% in 2019 and to 71.4% by 2025• Trucking’s share of total revenue is estimated to reach 81.5% in 2025, vs 81.2% in 2013• Truckload volume will expand 3.5% per year from 2014 to 2019 and then by 1.2% per year from 2020 to 2025. This projection reflects the anticipated performance of key commodities and freight-market segments• Truckload carriers are seen as increasing their use of railroads to handle intermediate and long-distance trailer hauls through the forecast period• Less-than-truckload (LTL) volume is forecast to rise from 145.0-million tons in 2013 to 177.7-million tons in 2019 and then to 204.6-million tons in 2025— which would translate into an av-erage annual growth of 3.8% from 2014 to 2019 and of 2.5% dur-ing 2020 to 2025• Private-carrier volume is expected to expand by 3.0% per year in 2014 to 2019 and then by 1.0% per year in 2020 to 2025• The private-carrier share of total transportation volume is forecast

2025

Solid Growthfor “entire freight economy” out to 2025

American Trucking Assns.

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sePteMBer / OCtOBer 2014 29

Desi News

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to “hold steady at 34.9% throughout the forecast period-- com-pared with 34.4% in 2013

the 75-pg report sums up the basis for its rosy forecast by point-ing to numerous positive factors that are expected to play out over the next eleven years.

For starters, Forecast expects U.S GDP to improve in the years ahead, with growth of 2.9% realized in 2014 to 2019 and of 2.4% in 2020 to 2025.

“The domestic economy remains the driving force behind the per-formance of the nation’s freight pool, with foreign trade playing a secondary, but signifi cant and growing role,” the report’s authors assert.

What’s more, they contend that “if we are right about the future path of the U.S. and global economy, the nation’s freight pool could grow by 23.5% over the 12 years from 2014 through 2025.”

More specifi cally, per the report, a “cyclical snapback” in hous-ing and construction from 2014 to 2016 will help support freight tonnage growth of 16.6% from 2014 to 2019. In addition, it not-ed that general commodities will continue to expand at a “faster pace” than bulk commodities.

As for the negative side of things, the authors of Forecast point out that, “Healthy long-term growth in the United States cannot be maintained without healthy spending on the transportation in-frastructure, state-of-the art equipment, and technology.”

They conclude by stating that their forecast “remains vulnerable to ‘shocks to the system,’ such as a territorial dispute with China involving its neighbors or the United States; a worsening of the already dicey situation in the Middle East; an oil supply crisis that would send crude-oil prices spiraling higher, or [the occurrence of] major natural disasters.”

The Speed Limiter debate goes into high gear.

WASHINGTON -- Initiated in March 2011, the federal notice of proposed rulemaking by NHTSA responds to a petition by the American Trucking Associations and Roadsafe America to cap the top speed of newly manufactured trucks at 68 mph.

FMCSA joined the process in May 2013 by adding a retrofi t provi-sion for existing trucks.

The NHTSA and FMCSA notices are technically separate, but their dates are synched up to advance simultaneously. Both agencies sub-mitted their proposals to the Offi ce of the Secretary of Transporta-tion on Aug. 8, and both target a publication date of Dec. 12, 2014.

Once an NPRM is published, the federal agencies are required to open a public comment period – in this case for 90 days.

Page 30: Eastern DT_SO_2014

sePteMBer / OCtOBer 201430

Managing Your Financial Affairs

The trucking industry is unique in a lot of ways, but the economic impact on everyone is very similar. According to Stats Canada’s 3rd quarter report, Canada’s household debt has reached a record high, in part to stagnant income and individuals taking on more debt. The head of the Bank of Canada, Mark Carney, fi nds this to be worrisome and he has issued a warning. The question is how to deal with uncertain economic times, especially when the USA situation and European crises is at a level never seen before.

There are simple solutions to keep in mind. Start with your personal budget, there’s your monthly income and your monthly expenses. There are easy-to-use budget sheets available on a number of websites. If you need one just e-mail me with your e-mail address and I will send you one.

Due to the low interest rates and holiday sea-son, people attempt to use credit cards. It’s OK to use credit cards if you know you will be able to pay the full amount when you re-ceive your bill. Otherwise, you will be facing hefty interest rate charges and it takes longer to pay off. So try to use cash, debit card in-stead of cards.

It’s the best time to look at your mortgage rates and if your renewal time is within 6 months, try to re-negotiate with your fi nan-cial institution for lower rates.

Pay yourself fi rst, at least try to save 10% of your earned income for rainy days and to cre-ate a nest egg.

Take full advantage of tax effi cient invest-ing such as Registered Retired Savings Plan (RSP), Spousal RSP, and TFSA accounts.

Make sure you are protecting the most valu-able assets – that’s your ability to earn in-come and that’s you. Make sure that you have protection in case of disability, critical illness, and/or death.

If you happen to have a group benefi t plan from your employer, try to understand what you’re covered for. Many drivers travel outside of Canada. It’s vital that you have travel insurance in case of an emergency such as an accident and/or sickness. If you are unsure of any of the plans and coverage’s make sure to consult with a qualifi ed fi nancial advisor.

Drivers sit for long durations while driving. Ensure your truck seats and your postures are correct and adjusted to your comfort. This will enable you to drive your routes without any back discomforts. Whenever you have a coffee or lunch breaks during your driving hours be sure to do some simple stretches and short walks.

Taking care of simple things provide you with piece of mind and quality of life. Positive thoughts and a good attitude go a long way.

Managing Your Financial Affairs in Difficult Economic Times.

For more details, please visit:

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sePteMBer / OCtOBer 2014 31

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Desi News

Basic Skills Driver Training Debate Opens – Again.

Federal Motor Carrier Safety Administra-tion has taken its fi rst step forward in years on the issue of entry-level driver training. The administration announced Tuesday, Aug. 19, that it will seek input from stake-holders on what a possible training rule should look like, but will gather that input a little differently than it typically does.

FMCSA published a notice in the Fed-eral Register to announce that the adminis-tration is exploring the feasibility of using a “negotiated rulemaking,” which involves hiring a “convener,” which is a type of

moderator, who will meet with stakeholder groups and report their talking points back to the administration.

FMCSA would then use the convener’s report to develop a fi nal rule.

This process differs from the standard “notice of proposed rulemaking” and re-quest for public comments that typically precedes a fi nal rule.The history of driver training for truckers – and the lack of a specifi c behind-the-wheel standard for new drivers – goes back de-cades.

FMCSA came close with a 2007 pro-posed rule to set classroom and behind-the-wheel standards for entry-level truckers, but the proposal never made the transition to fi nal rule.

Congress approved a highway bill in 2012 that included a provision to require the administration to issue a fi nal rule on driver training. FMCSA offi cially scrapped its 2007 proposal in 2013 and started over in the process.

Brake Safety Week scheduled for Sept. 7-13

It’s that time of year again. The Com-mercial Vehicle Safety Alliance’s Brake Safety Week will run Sept. 7-13.

During the week of Sept. 7, CMV in-spectors will be checking brake systems on trucks and buses across the country. From the CVSA press release, inspectors will be looking for loose or missing parts, air or hydraulic fl uid leaks, worn linings, pads, drums or rotors, and other faulty brake-system components. In addition, inspectors will check the antilock braking system in-dicator lights. As needed, measurements of the pushrod stroke will be taken.

Any trucks found to have defective or out-of-adjustment brakes will be placed out of service.

Ten undisclosed jurisdictions will also be testing overall braking effi ciency using per-formance-based brake testing equipment. All brake checks during the campaign will be Level IV inspections. In some cases, Level I inspections may be conducted.

Back in May of this year, the spring brake check took 9.5 percent out of service for brakes out of adjustment; 8.5 percent out of service for brake component viola-tions; and 15.2 percent out of service for any type of brake violation, according to the CVSA website.

Page 32: Eastern DT_SO_2014

September / october 201432

regardless of how often carriers cross the Canadian or Us border with com-mercial goods, they require an electronic entry to the CBsA and CBP with a bar code, which is called e-Manifest.

What is E-Manifest?the Canadian Border services Agency

(CBsA) and Us Customs and Border Pro-tection (CBP) are committed to delivering a reliable and efficient commercial border process to provide tangible benefits to the trade community.

e-Manifest is a virtually paperless process that starts before shipments reach the border. the collection and risk assess-ment of advance commercial information, sent electronically to the CBsA and CBP, allow low-risk shipments to be identi-fied prior to arrival and be processed in a more efficient manner upon arrival at the border.

What will happen if a carrier does not submit an E-Manifest?

if a carrier is non-compliant to the man-datory e-manifest services, CBsA and CBP will issue monetary penalties. drivers may also be turned back from the border.

When does the carrier have to submit the shipment information with CBSA and CBP?

Carriers have to submit the shipment information with CBsA or CBP before the arrive at the border. it should be done at least one hour before the driver reaches the border.

What are the requirements for border crossing?

coming into canada: in order to set up an e-Manifest portal

user account with CBsA, carriers require a Carrier Code. A carrier also has to get printed bar-coded labels called PArs. these

bar-coded labels include the carrier code with a unique shipment number to create a cargo control number. An administrative penalty of $1,000 will be imposed on car-riers if bar-coded labels are not presented with their shipments upon arrival at the Canadian border.

coming into the united states: in order to register with the CBP, carri-

ers are required to have a standard Carrier Alpha Code (sCAC). this is a unique two-to-four-letter code used to identify transporta-tion companies. A carrier also has to get printed bar-coded labels with the sCAC code and unique shipment numbers to cre-ate a shipment control number. these are also called PAPs Labels.

Where can I get more information and applications for an E-manifest portal log in?

Call us at our toll free number 1-800-965-9839.

What is e Manifest / aCi ?

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Page 33: Eastern DT_SO_2014

sePteMBer / OCtOBer 2014 33

Desi News

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Page 34: Eastern DT_SO_2014

sePteMBer / OCtOBer 201434

Daimler Future Truck 2025

in the ‘70s classic movie, “Duel,” a seemingly driverless tanker truck terrorizes an innocent salesperson driving to his next call along a remote stretch of highway. Could a driverless big rig – mi-nus the stalkerish behavior – be part of our future?

Daimler Trucks thinks so. In fact, it’s betting big on it and showed its ante with the introduction of its Future Truck 2025 in Germany. Using the truckmaker’s Highway Pilot system, the prototype semi-truck is capable of driving itself while hauling a full load at speeds exceeding 50 mph, according to the company.

“The truck of the future is a Mercedes-Benz that drives itself.” Dr. Wolfgang Bernhard, the member of Daimler’s Board of Manage-ment responsible for Daimler Trucks and Buses, at the debut of the truck earlier today.

Much of the focus on driverless vehicles spotlighted smaller,passenger cars. However, there is nothing to suggest similar tech-nologies couldn’t be applied to commercial trucks.

“Autonomous driving will revolutionize road freight transport and create major benefi ts for everyone involved. With the Future Truck 2025, Daimler Trucks is once again highlighting its pioneer-ing role in innovative technologies and opening up a new era in truck transport. We aim to be the number one manufacturer in this market of the future, which we believe will offer solid revenue and earnings potential.”

Dr. Wolfgang Bernhard suggested that autonomous trucks will change the role of drivers in the future and eliminate the shortage of drivers in Europe.

There are plenty of potential benefi ts to be gleaned from a driver-less semi-truck. Truck makers and suppliers have been developing new safety systems aimed at helping drivers be safer and offset issues, such as drowsy driving, that impact road safety.

For example, the Lytx DriveCam system could reduce the number of fatal bus and truck crashes by at least 20%, saving more than 800 lives a year, by allowing companies to retrain drivers to avoid risky behaviors while behind the wheel.

In fact, Bernhard noted that an autonomous vehicle could allow truckers to take on new roles while still in the cab of a truck.

“It will not only free them from having to perform monotonous

tasks; it will also give them more time for tasks that were previ-ously handled by offi ce workers at shipping companies,” he said. “In other words, it will be possible for truckers to advance to new positions as transport managers, making truck driving a more at-tractive profession. Autonomous driving could thus help to resolve the shortage of truck drivers.”

Google and several other U.S. manufacturers are in various levels of testing autonomous vehicles. Some expect these vehicles to be on U.S. roads within the next fi ve to seven years and state and lo-cal governments are in the process of establishing the “rules of the road” for these vehicles.

However, the Future Truck represents a new movement in the seg-ment. Right now, Mercedes seems to be focusing its energy on developing the truck for use in European Union countries. In fact, the truck has already taken an initial trip on a highway near Mag-deburg, Germany.

The purpose of the introduction today was “establish an ongoing dialogue with all stakeholders about the conditions for transport in the future, in which self-driving trucks will play a major role,” the company said.

Bernhard suggested that legislative issues regarding the use of au-tonomous trucks need to be at the forefront of trade and commerce discussions because the technology is developing so quickly.

Also “developing” is the growth of truck traffi c in the EU. A recent study conducted by ProgTrans AG predicts that freight transport volumes in the EU will increase by approximately 20% by 2025 with trucks accounting for about 75% of all freight transported by road in the EU.

The volume of road transport in Germany alone will increase from 3.7 billion tons today to nearly 5.5 billion tons by 2050, according to the country’s Ministry of Transport and Digital Infrastructure.

DaimlerFuturetruck2025 Daimler demonstrates its driverless Truck

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sePteMBer / OCtOBer 2014 35

fymlr iPaUcr trk 2025

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pr fymlr tr`k kMpnI dI soc hY ik ies qrHW ho skdw hY[ soc hI nhIN ies qrHW dw kMm ies kMpnI v`loN ipCly idnIN jrmnI ‘c kr ivKwieAw Aqy Awpxy iPaUcr tr`k 2025 dI pCwx krweI[ kMpnI Anuswr aunHW dw ieh prototweIp sYmI tr`k ‘c ieMnI smr`Qw hY ik ieh pUrw Bwr l`d ky ibnw frweIvr qoN hweIvyA ‘qy vDIAw FMg nwL 50 mIl pRqI GMtw dI spIf qoN vI v`D ‘qy jw skdw hY[

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ibnw frweIvr qoN c`lx vwLy ijnHW vhIklW v`l vDyry iDAwn id`qw jw irhw hY aunHW ‘c CotIAW pYsMjr kwrW Swml hn[pr ies g`l qoN byiDAwnw nhIN hoieAw jw skdw ik ies qrHW dI qknIk kmRSl tr`kW ‘c nhIN Apx-weI jw skdI[

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aunHW A`gy ikhw ik ibnw frweIvr qoN c`lx vwLy tr`kW nwL Biv`K ‘c fRweIvrW dI BUimkw hI bdl jwvygI Aqy XUrp ‘c tr`k fRweIvrW dI Gwt dw tMtw mu`k jwvygw[

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imswl vjoN iltks fRweIvkYm isstm nwL b`sW Aqy tr`kW dy iBAwnk hwdisAW dI igxqI 20% q`k Gt skdI hY[ies qrHW swlwnw 800 dy krIb lokW dI jwn bcweI jw skdI hY [

brnwrf dw kihxw hY ik Awpxy Awp c`lx vwly vhIklW ‘c jdoN tr`kr kYb ‘c hoxgy auh hor kMm kr skxgy[

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As a driver, you are expected to not damage, and even protect your cargo. Most carriers have trained their drivers to secure cargo properly, operate special equipment, like reefers and heaters and how to properly sign bills of lading. However, if you haul enough freight enough miles, something is going to get broken. Either you or you and your company may be held responsible. Over the years a large body of legal prece-dence and statute law has been established around the carriage of goods. Legal presi-dents are laws that are created when judges decide cases. Statute law is Law created by legislators. When companies want to be very specific they enter into a contract and agree to what law is to be enforced . claims involve a 3 types of law. Here is some in-teresting background for drivers on how li-ability for claims is determined.

In both Canada and the USA, the claim-ant is not required to prove the carrier was negligent- that is- actually did something wrong. The fact the goods are damaged is all the evidence needed to make the trucker

responsible. The rules are slightly different in Can-ada and the USA with the main difference that in Canada, a truck-ers’ liability is a little more lim-ited. If the ship-ment crosses the border, it may

take a team of lawyers to determine if do-mestic Canadian law can apply. Typically USA law applies regardless of the direc-tion of the goods or where the owner of the goods resides.

In Canada, most provinces regulate “conditions of carriage” based on a na-tional standard approved in the 70’s. You can come across them, usually printed on the back of a Bill of Lading. They set out how claims are handled when more that one carrier is involved. They also hold the car-rier liable for damages to the goods it trans-ported, without proof of negligence, unless it can prove it was not negligent. There are few exceptions.

Uniquely in Canada, liability is limited. The value of any lost or damaged goods is limited to the lesser of $2.00 per pound (4.41 per kg) computed on the weight of the shipment or the commercial value at the time and place of shipping. Of course, the shipper can declare a value that exceed the 2.00 per pound limit, and the carrier can make additional charges for assuming this additional risk. Still no carrier is bound to carry articles of extraordinary value, and if the value is not disclosed, the applied valu-ation is at 2.00 per pound.

In Canada used or uncrated cargo can move at the “owner’s risk of damage”. A driver should make sure to make this nota-tion on the bill of lading that used or un-crated goods are moving When goods are moving at owners risk, the risk only cov-ers risks incidental to the transport, like for example if a knob or handle broke off of

a small machine. The carrier is still liable for any losses caused by negligence, for ex-ample a roll over or fire that destroys the small machine.

In the USA Cargo claims are adminis-tered as per the Carmack Amendment to the interstate commerce act. It is found in Title 49 of the United States Code. The Carmack Amendment holds the carrier liable for damages to the goods it transported, with-out proof of negligence, unless it can prove it was not negligent and/or that one of the basic exceptions applies. Unlike Canada, there is no statutory limit to the value of cargo under the Carmack amendment so any limit on the trucker’s liability would have to be specifically stated in a contract. Further, instead of valuing product at time and place of shipping like in Canada, the Carmack amendment does not specifically say how value is determined. From my ex-perience and from what I have read about court cases the value of the goods is usually interpreted to be the difference between the market value of the property in which it should have arrived at the destination, less the market value of the goods in the actual condition in which it arrives.

The 5 basic exceptions to trucker’s li-ability are:

1. An act of God 2. An inherent nature or vice of the

goods 3. An act of the shipper 4. An act of the public enemy 5. The authority of law These same basic protections, with

- Ken Davey

Cargo Claims

Drivers must be very diligent when they sign for cargo at both the pickup

and the delivery points.

cargoclaiMs

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Cargo Claims

kwrgo klymzie`k frweIvr vjoN quhwfy qoN Aws kIqI jWdI hY ik qusIN kwrgo nUM fYimj nhIN sgo pro-

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knyfw Aqy XU.AYs. ey dono dySw iv`c klymYNt nUM kYrIAr dI lw-prvwhI dI swbq krn dI loV nhIN hY[ tr`kr nUM ijmyvwr Tihrwax leI iehI sbUq kwPI hY ik vsqUAw fYmyj hoeIAw hn[XU.AYs.ey nwloN knyfw iv`c ieh ijMmyvwrI kuJ sImq hY[knyfw dIAw bhuqIAw proivMsz 1970 iv`c lwgU kIqIAw hoeIAw “kMfISnz AwP kYryj” nUM AwDwr mMn ky cldIAW hn[ieh Awm qOr qy lYifMg ib`l dI bYNk qy CpIAw huMdIAw hn[ieh ieh vI dsdIAw hn ik ie`k qoN v`D kYrIArz dI sUrq iv`c klymz ikvyN hYfl krny hn[

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XU.AYs.ey iv`c kwrgo klymz “Carmach Amendment” Anuswr inrDwrq kIqy jwdy hn[ kwrmYk AmYNfmYNt krIAr nUM gufz dy fYmj leI doSI mMndI hY[ eyQy krIAr nUM swbq krnw pYNdw hY ik nukswn ayusdI AxgihlI kwrn nhIN hoieAw[ knyfw dy ault kwrmYk AmYfmYNt ADIn kwrgo dI vYlXU dI koeI sImw nhIN hY[ies leI tr`krj dI lwieiblytI bwry kwtrYkt iv`c sw& sw& vrnx hoxw cwhIdw hY[kwrmYk AmYfmYt ieh vI sp`St nhIN krdI ik ieh vYlXU ikvyN inrDwrq hovygI jd ik knyfw iv`c iSpmYNt smy Aqy kort kysW bwry pVHn auprMq ikhw jw skdw hY ieh phuMc sQwn qy vsqU dI vYlXU Aqy iesdI auQy mwrikt vYlXU dy Prk Anuswr imQI jwdI hY[

tr`krz lwieiblytI leI pMj Cotw hn:1. kudrqI kropI2. iS`pr dI glqI kwrn 3. vsqU dI iksm kwrn 4. duSmx dI kwrvweI kwrn5. knUMnI AQwrtI

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frweIvrW nUM kwrgo dy ip`k-A`p sQwn Aqy phuMc sQwn qy Awpxy dsqKq sucyq rih ky krny cwhIdy hn ikauNik iksy vI kwrgo dy nukswn dw klymLYt leI kMpnI nUM ieh swbq krnw pvygw ik krIAr nUM dyx smy vsqUAw dI kMfISn TIk sI pr pRwpq krqw nUM dyx l`igAw ieh Krwb hwlq iv`c sn[ ies leI qusI ip`k Ap jw filvrI smyN lYifMg ib`l qy ilKdy ho auh inrnwiek huMdw hY[

kwrgo klym leI quhwfy kol kyvl iqMn qrIky huMdy hn[pUrI kImq py kIqI jw skdI hY, jw auprokq pMj Cotw kwrx klym TukrwieAw jw skdw hY jw knyfw Anuswr do fwlr pRqI pONf Bwr Aqy AmrIkw dy inXmw Anuswr Asl kWtrYkt dI vYlXU py kIqI jw skdI hY[vyvr ilKqI hoxw cwhIdw hY Aqy donoN iDrw kwnUMnI dI ibjwey kWtrYkt dIAw pwbMd huMdIAw hn[

slightly different wording, are present in the Canadian, Conditions of Carriage. With small differences the rest of what follows applies to both countries.

Drivers must be very diligent when they sign for cargo at both the pickup and the de-livery because liability for the for cargo is assumed to be the carrier. In order to claim for cargo damages, all a company has to do is show the good were in good condi-tion when given to the carrier and that they were is a bad condition when given to the consignee. Then, they have to document the amount of loss. In the event of non-delivery, the loss is total. Therefore, what you write on a bill of lading at pick-up or delivery is crucial.

Let’s say you have a shipment of boxed carbon. Some of the boxes contain dia-monds, some of them contain coal. If you make a delivery, and the consignee marks 2 boxes damaged without noting, a model number or a description of exactly which 2 boxes were damaged, your company could pay for damaged diamonds when coal was actually damaged. For the same reasons notations like “Shippers load and count”, “sealed load “ and “said to contain” are very important. Exact piece counts and cargo temperature records are also very important.

Your company only has 3 choices when dealing with a cargo claim. They can pay the full value of the cargo claim or deny li-ability based on one of the five exceptions or pay a limited amount based on, in Canada 2.oo per lb or in the USA a contracted limit.

Lastly, it is hard to think of this kind of legislation as protecting truckers, but that is what it does. A contract can overrule any provisions of the Carmack Amendment or the conditions of carriage. Contract lan-guage, for example, can be used to incorpo-rate conditions or to waive any rights or re-sponsibilities outlined under Carmack. The waiver must be in writing, and if waived, parties are left to the terms of the contract rather than established law.

Consequently, whenever something is added by a shipper to a bill of lading or a separate contract is necessary to govern the relationship between the shipper and carrier, like for example a brokerage agreement, it typically removes a protection of the carrier. For example, by Statue law, a trucker is not required to deliver a shipment in any specific time frame other than Due Dispatch. How-ever as soon as someone puts on a bill of lading, “must deliver by” then the “deliver by time” becomes a term of the contract and the trucker may have to pay a claim because they deliver late.

w w w.desit ruck ing.com

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The Right Choice

A very good client of mine had recently sold his two dump trucks and asked me to help the new buyers secure financing for the units. We managed to get the buyers approved for the lease and had everything ready to go – but then an unfortunate in-cident occurred. Our office did a full search on the 2 dump trucks and noticed that there was a general security agreement registered on the two units. My client, the seller, was shocked to find this out as he never financed the units with the bank and was confused as to what had happened. Upon further digging, we found out that the seller took a loan for a truck a few years back and the bank put a GSA on all assets under the company. Because of this, the sale got delayed as the bank took a very long time removing the liens and interest in the trucks. This delay almost caused the death of the deal. Luckily, we were able to keep the buyer from going somewhere else and eventually got the bank to release the security and got the seller paid for the sale.

What exactly happened here? As I go out and meet clients of all sizes, the same ques-tion keeps coming up – should I lease or go to my bank and get a loan. Well, if you read the story about my client and his frustrating ex-perience with the bank, you hopefully figured out that the bank isn’t always the best choice, especially if you want to sell the equipment in the future. Let’s understand the differ-ence of lease vs loan in more detail.

Banks prefer to classify a loan as a “Re-volving” loan. This gives them the ability to extend or cancel the loan on a yearly basis. This means annual submission of Fi-nancial Statements for review and approv-al, often with sizable review fees payable by you. Additionally, this loan is now a cur-rent liability, which can really distort your financial ratios. Leasing is fixed long term financing, with no yearly review fees. In addition, like the situation with my client in the story above, banks take a security inter-est in all of your company’s assets (pres-ently owned and acquired in the future) by publicly filing a GSA or General Security Agreement. This ties up all of your assets, including inventory and receivables. Leas-ing files a PPSA or personal property se-curity agreement only on the leased equip-

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ieh sB iks qrHW vw-pirAw? jdoN mYN v`K v`K gwhkW nUM imldw hW iehI svwl au`Tdw rihMdw hY- kI mYN lIz krW jW bYNk qoN krzw lvW? pr jy myry klwieMt dI au`pr d`sI khwxI mn ‘c hY qW ies qrHW lgdw hY ik bhuqI vwr bYNk qoN krzw lYxw vI TIk nhIN ri-

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bYNkW vwly lon nUM rIvOlivMg lon kihxw TIk smJdy hn[ ies nwl aunHW nUM ieh h`k iml jWdw hY ik swl ip`CoN auh ies nUM kYNsl jW smyN ‘c vwDw kr skdy hn[ iesdw Bwv ieh hY ik swlwnw PweInYNSnl stytmYNtW dI nzr-swnI kIqI jWdI hY Aqy ies dI PIs lon lYx vwly isr pweI jWdI hY[ ies qoN ibnw ieh ie`k dyxdwrI hY ijhVI quhwfy ivqI Anupwq nUM ivgwV skdI hY[ ies dy ault lIizMg ie`k lMby smyN leI c`lx vwlI hY Aqy ies ‘qy koeI swlwnw irivaU PIs nhIN pYNdI[ ies qoN ibnw Awpxy klwieMt dI au`pr d`sI khwxI vWg bYNk quhwfIkMpnIqoNswrIjwiedwd(johuxhYjWbwAd‘cpRwpqkIqIjwvygI)dwsikaurtIirsk lYx leI jI AYs ey Bwv jnrl si-kaurtI AYgrImYNt ilKvwauNdy hn[ ies qrHW auh quhwfy swry AswisAW nUM bMnH lYNdy hn[ ijs ‘c mOjUdw Aqy Biv`K ‘c pRwpq hox vwly

kI myrI bYNk dI cox shI hY?

is My Bank really

The righT choice For Me ?

Anil Bissa

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The Right Choice

ment. Finally, banks establish a maximum borrowing limit for the company, and gen-erally the principals also. This restricts fu-ture borrowing. Leasing offers a multitude of alternative lending options in addition to your company’s bank lending options.

It’s a common dilemma: lease or buy, buy or lease, which is better? Everyone who has ever considered leasing has had this question cross their mind. So what is the answer?

Leases and loans are simply two differ-ent methods of equipment financing. One finances the use of the equipment; the other finances the purchase of the equipment. Each has its own benefits and drawbacks. It’s not possible to simply say that one is always better than the other because, well, it depends on your own particular situation and preferences.

You should always do your research and get professional and solid advice from an Equipment Leasing Specialist. If you are looking for more information or have ques-tions that need to be answered, please do not hesitate to contact me anytime – I am always here to help !

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ies qrHW dy hwlwq ‘c pihlW qW quhwnUM Awp Koj krnI cwhIdI hY Aqy bwAd ‘c iksy iekuiepmYNt lIizMg spYSilst qoN slwh lYxI cwhIdI hY[ jy quhwnUM hor jwxkwrI jW slwh dI loV hY qW qusIN myry nwl vI sMprk kr skdy ho[ iJjkxw nw qusIN myry nwl jd mrzI g`lbwq kr skdy ho[ quhwfI mdd krn leI mYN hmySw hwzr hW[

hd and Md orders continue strong in July; 2014 shaping up to Be Best of cycleCOLUMBUS, IN – For the second month in a row, Class 8 orders surprised on the high side in July, with net orders of 30,103. Classes 5-7 net orders also posted a gain in July, coming in at 15,834 units. These results were published in the latest State of the Industry report, recently released by ACT Research Co. (ACT). The report covers Classes 5 through 8 vehicles for the North American market.Concerning Class 8, Jim Meil, ACT’s Principal, Industry Analysis, said, “While one strong month may be statistical noise or an outlier, the July orders fit into a robust pattern that has held up since the start of the year. With year-to-date orders up 33% from the comparable 2013 span, 2014 is almost certain to be the best year of this cycle.” Meil said that Class 8 backlogs were the highest since January 2012, but “we believe we are not yet at the point where an overheated market triggers duplicate ordering and raises anxieties about backlog integrity.”Meil added that Classes 5-7 year-to-date orders are running about 10.5% higher than the prior year at this time. “While the numbers may not be as stellar as what we see in Class 8, the year is shaping up to be the best thus far of the post 2009 expansion for medium duty.”

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There are thousands of loads in transit every day within Can-ada and the U.S. While many carriers specialize in the transport of certain commodities such as steal, chemicals, etc, the most fre-quent load type continues to be general freight. This particular type of commodity has no universal shape or form, and therefore requires expert knowledge in freight handling as well as provincial and interstate regulatory procedures. This week’s article will take an in-depth look into the multi-dimensional rules and regulations governing the transfer of general freight, and the precautions one must take when hauling this form of cargo.

What is General Freight

General Freight is best described as “a wide variety of commodities in standard trailers”. This particular type of freight can be both Truckload and Less-Than-Truck Load. In most cases, carriers who handle general freight will pick up multiple shipments and consolidate the freight to form a truckload. This can often be a tedious process, and carriers must factor in extra weight, and fuel consumption when shipping this type of cargo as it requires multiple pick-ups and deliveries. Carriers must also take into consideration the additional paperwork that must be completed to haul multiple shipments, even if they are to be consolidated into a single trailer-load. Each individual shipment must have a separate bill of lading, and cus-toms identification number if crossing the border. In essence each partial load must be treated as individual freight, with its own sup-porting documentation.

General Freight Classification System

There are several different forms of general freight, and each type is accompanied by an individual identification code. This uni-versal code is used by motor freight regulatory agencies to moni-tor shipments and identify the thousands of different commodities that are in transit on a daily basis. The organization responsible

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- Dara NagraMBA PMP ®

kI qusIN jnrl Bwr FoNdy ho?

ARE YOU HAULINGgeneral FreighT ?

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for administering the codes used for classifying freight is known as the National Motor Freight Traffi c Association. Each form of general freight falls into a specifi c class, which is uniquely identifi ed by a “NMFC” code.

Why do Carriers Consolidate Freight?

Freight Consolidation is utilized as a powerful tool in maxi-mizing profi tability when shipping freight. With increasing fuel prices, and a continuous shortage of drivers, Carriers must en-sure the most effi cient procedures are in place to minimize op-erational costs, and capitalize on freight contracts. For most car-riers this goal can only be achieved through the transportation of Full Loads, whereby the trailer is fi lled to its maximum capac-ity. Freight consolidation helps attain this goal because various general freight shipments from different shippers are combined into a single trailer. This strategy saves the shipper a signifi cant amount of money, as the company does not have to reserve a full trailer for only a partial load. The carrier also benefi ts from this practice, as effi ciency and fl exibility are signifi cantly increased.

What is the difference Between General Freight and Spe-cialized Freight?

The difference between general freight and specialized freight is essentially quite simple. Specialized freight refers to commodities, which require specialized equipment to transport. General freight is mostly transported in regular trailers, such as vans, high cubes, & straight body trailers. Examples of special-ized freight would include, lumber, steel, industrial machinery, pipe lines, and air craft components. These particular goods re-quire much more attention then general cargo, to ensure road safety. Lumber and Steel for example are extremely heavy com-

General Freight

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there are several iterations of the trucking business. First, there is the local operation, where the driver doesn’t exceed 100

kilometers from his or her home base. Secondly, there is medium haul, where the driver doesn’t exceed 800 kilometers from home base. In both of these situations, establishing some semblance of home life isn’t all that difficult with proper plan-ning. For the most part, a driver isn’t going to miss important familial occasions – with proper planning and co-operation with dispatchers/employers, necessary home time can, and is often, achieved. Often, a driver can even count on weekends off.

It is the third type of operation that makes a good home & work life balance al-most impossible; yet, proper planning and co-operation can change the words from almost impossible to almost possible. This third type of trucking is, of course, the long haul.

There are several types of long haul: the first is the dedicated route where the driver leaves one city and is bound for a distant city on a regular basis along the same route over and over. Often times, this type of operation involves taking a load from close to home base, reaching a destination, unload, and returning back to home base. These types of dedicated routes often lend themselves to the team type operation where two drivers work together so they can achieve 22 hours of travel in each 24-hour window. The other type of long haul is where the driver follows the load and reloads as close to the original deliver point as possible, bound for another location not necessarily in the direction of home base. These long haul situations are generally over the 800-kilometer mark and sometimes, well beyond. Often, this type of operation involves coast-to-coast travel and it’s a situation where the driver could be away from home for months at a time. In this type of work, there has to be clear planning so that there is quality in the home life of any description.

With your employer, establish the important dates for your family well in ad-vance: birthdays, graduations, religious holidays, statutory holidays, anniversaries, personal vacation times and the like should be planned so that they don’t just sur-prise you or your employer. They are usually known years ahead of time so it should be fairly easy to reach some sort of compromise with your employer to achieve these. It’s the parent teacher interviews that are next to impossible so if these kinds of issues are important to you, then instead of working out the compromise with your employer, then perhaps it would be easier to work out a compromise with the school. Often times, the school will work out specific arrangements because of the lifestyle of trucking.

Just because somebody may want you to do something at a specific time, which may not be convenient, doesn’t mean you have to just be accepting. You need to learn how to negotiate properly so you are able to achieve those things that need to be accomplished. For the most part, people understand that you have an impor-tant job that doesn’t fit the mold of the majority. So, learn to negotiate effectively. Life is about compromise and negotiation. Learn both of these skills. Employers that dictate every detail of your life and never allow you to negotiate to meet your personal and familial needs are those with whom you do not want to be associated. If your employer doesn’t work with you to achieve your goals and objectives, then find one that will. There is a shortage of good and qualified drivers in this country. Therefore, drivers of quality and qualification need to exercise some backbone and ask for what they want.

The government rules and regulations over the past several years have made the quality of a personal life much more difficult to achieve. Many of these rules and regulations have been sold as assisting in making the highways safer. The reality

- G. Ray Gompf

HomeWork lifeBalance

Home Work Life Balance

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isn’t a safer highway, but merely it’s the lawmakers exercising more control over the driver pool, effectively putting the driver into virtual subservience.

Many of our homegrown drivers have just given up on trucking because of these new draconian rules and regulations and as a result, the governmental changes exacerbated an al-ready fairly serious driver shortage. The answer to the driver shortage has been to import drivers from overseas. Our newly imported drivers from outside North America, in the minds of the employers, are just happy to be employed even at less mon-ey than would be acceptable to homegrown drivers.

Recently, I noticed a sign on the back of a trailer, while I was on an intercity drive, that bragged this particular company was paying drivers 34 cents a mile and that one should call their special 800 number to become employed. I was paid 34 cents a mile too, but that was 25 years ago. How can today’s wages be the same as they were two or three decades ago?

The lifestyle of trucking covers many factors for indi-vidual’s lives, both family and work related. There is a definite requirement for companies to work with drivers to achieve a reasonable home & work balance, but more so, companies have to find a better way to compensate drivers.

The new government regulations, that have been industry driven, have eaten away close to 20% of the driver’s potential income over the past several years. There is no sign that this downward slide in potential income of drivers is abating.

If being paid by the mile is the one and only way to en-courage productivity, then there must be some recognition for the driver’s non-productive hours, which he or she must work and earn zero. Being paid by the mile means that if the wheels aren’t turning the driver doesn’t make a nickel even though they are being forced to perform other labor-intense duties. Also, with the new government rules and regulations, down-time isn’t always done at home. When a driver is forced to take down time away from home, there must be some compensa-tion. The entire pay structure of the industry is definitely in need of review and revision, especially in light of these new draconian rules and regulations that have had a negative ef-fect on a driver’s income. Some of these necessary modifica-tions may be negotiated with progressive employers. It’s not just about negotiating adequate, necessary home time; it’s also about negotiating adequate, necessary pay for all work per-formed, not just that time when the drivers is actually moving. If an employer isn’t willing to negotiate terms and conditions, then move on to one that will.

About thirty years ago, the industry broke the union hold on the work force, reducing the unionized portion of the work-force down from virtually one hundred per cent to about ten per cent. Because there is almost no ability to collectively bar-gain within the industry, drivers must learn how to effectively negotiate their own employment contract. Do not just accept the employment contract set up by the employer. The employer needs your services and you need the employer. In the absence of collective bargaining, it is your responsibility to negotiate with your employer. If the employment contract doesn’t meet your needs, then negotiate a deal that will. Never just sign the employment contract without reading it and at the very least, take that employment contract to a qualified lawyer to ensure it meets your needs. Employment is a two way street, especially when the driver has to sacrifice so much of his/her personal life.

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Home Work Life Balance

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New Entrant Program

The New Entrant Program is a program which educates new motor carriers about the federal safety standards and regulations. Who does the new entrant Program apply to?The Program applies to all new U.S. and Canadian domiciled mo-tor carrier owners and operators that want to conduct business within the United States. is there an audit in this program and is there a time frame in which the audit is conducted?There will be a safety entrant audit conducted by a certified U.S. federal safety investigator, state or provincial enforcement office. The audit will be conducted within 18 months of the authority be-ing granted to the motor carrier. Where is this audit conducted?The audit is generally conducted at the principal place of busi-ness but can sometimes be conducted at the State Patrol’s office or other federal offices. What can cause a motor carrier to fail the audit? There are several key reasons that can cause the motor carrier to fail the audit, listed below are some of the main issues.Alcohol and Drug Violations: • Not having an alcohol and/or drug testing program and a random alcohol and drug testing program. • Using a driver without having them take the alcohol or drug test. • Using a driver the company knows had a blood alcohol content of 0.04 or greater.• Using a driver who does not complete the required follow-up procedures if tested positive for drugs.

driver related issues:• Using a driver without a valid Commercial Driver’s license (CDL) or a driver who’s CDL has been revoked, suspended or cancelled. • Using a medically unqualified driver.Operations related issues: • Not having the required level of insurance on file. • Not having adequate hours of service records.

vehicle related issues:• Operating a vehicle without repairing any safety related defects mentioned in an Out-of-Service inspection or in the driver’s ve-hicle inspection report. • Operating a commercial vehicle that has not been periodically inspected.What happens if the motor carrier fails the audit?If the motor carrier fails the audit the Federal Motor Carrier Safety Administration (FMCSA) will provide the motor carrier a written notice within 45 days after the completion of the audit to take ac-tion to fix the issues found in the audit. If the motor carrier fails to provide a corrective action plan and to implement the safety mea-sures to ensure the matters have been taken care of within the time

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What is a new entrant Program?

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By NSC Compliance Services

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sePteMBer / OCtOBer 2014 45

Strut Compressor

Safely and efficiently removes and installs the spring-over steering stabilizer found on most self-steering axles.

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Removes and installs both rubber-isolated and threaded pins and bushings without removing the spring packs from the axle.

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sePteMBer / OCtOBer 201446

New Entrant Program

frame given by the FMCSA then the motor carrier will be put out of service. What happens if the motor carrier fails to reply in the time frame given by the FMcsa?If the motor carrier does not provide a corrective action plan then the carrier will be put out of service. The carrier will have to wait 30 days after the date of revocation to reapply and submit documenta-tion that the defi ciencies have been corrected. The 18 month moni-toring period will start again as of the date that the re-application is approved. What happens if the motor carrier passes the audit? The FMCSA sends a letter to the motor carrier stating the results of the audit. The carrier’s performance will still be closely monitored for the balance of the 18 month period. Who can I contact if I need help with registering for a US DOT or MC number or if I have a safety entrants audit coming up?You can call us at our toll free number at 1-800-965-9839 if you need assistance in registering for a US DOT or MC number or if you have a safety entrants audit coming up.

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CTHRC working on entry-level training criteria for truckersDéjà vu, all over again?Canadian task force is working to establish criteria that could one day lead to truck driving being designated by the government as a skilled profession that requires entry-level training.CTHRC, with fi nancial help from the Federal Government, the Canadian Trucking Alliance and provincial trucking associations, is hosting stakeholder meetings to determine what knowledge, skills and abilities should be part of an eventual training standard.“We are hoping to have a fi nal document, a fi nal profi le if you will, outlining what those knowledge, skills and abilities of to-day’s drivers are sometime in early in 2015,” said CTHRC CEO Angela Splinter.Splinter added the fi rst meeting recently took place in Ontario. Ad-ditional meetings are planned for Halifax, Nova Scotia, in the east and a location to be named in western Canada.A spring 2012 report published by the Canadian Trucking Alliance owned up to the “root causes” of driver recruitment and retention issues in trucking – namely driver compensation, quality of life, qualifi cations and demographics.“The industry will always be captive to market forces, but it can also take action to help itself and ensure its continued dominance in the freight market. It just cannot do it without drivers,” the re-port’s authors stated.With all due respect, this type of study has been done over and over for at least the past three decades. The Friesen Kaye report in 1990 brought the problems and solutions to the fore but was shelved virtually without being read let alone considered. Unless and until commercial driving is recognized as a skilled trade, with basic entry level requirements, added advanced skill level training, a career path, and a full apprenticeship program, with commensurate pay and perks as tradesmen work through from raw recruit to master driver, nothing will ever change. May-

be this is a start, again, but the stakeholders will never include a mere 30 year experienced driver.

Why There’s a Driver Shortage?Again, HR professionals are trying to fi gure out why there’s a driver shortage, the extent of the shortage, and what they can do to improve the situation for their carrier.It’s not rocket science people. When drivers are paid the same today as they were three decades ago, there is a problem. In those three decades, the fuel prices have risen by at least 600%; Insur-ance premiums have risen similarly but drivers wages have re-mained virtually stagnant. The other insult to the driver is that those with thirty years of expe-rience, earn the same as that raw recruit fresh out of truck driving school. There is no career path, no advancement. It used to be that an experienced hand could earn signifi cantly more because he had fi gured out how to make the rules work for him instead of against him. Now, the way the rules are, there is no such thing as making the system work for you, you work for the system, there-fore, your ability to earn is marginalized.With fewer and fewer souls coming into the industry, the choices for drivers is more and more restricted. Unless and until there is a methodology to bring in fresh blood into the industry, then all recruiters can hope to attract are the churners. Immigration is bringing in fresh blood but little else is on the horizon.What would help domestic fulfi llment of driving positions would be for truck driving to become a skilled trade with attendant skills training at basic and advanced levels and pay and perks to be asso-ciated with skill levels attained and longevity within the industry, not within a carriers employment.

w w w.desit ruck ing.com

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sePteMBer / OCtOBer 2014 47

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