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CAPITOL RECAP | SAFETY AND SECURITY MEETING | CHAT WITH THE CHAIRMAN<br />
OFFICIAL PUBLICATION o f t h e Truckload Carriers Association<br />
Road to Nowhere<br />
Political bickering weakens chances for infrastructure plan | 6<br />
JULY/AUGUST 2019<br />
IN<br />
THIS<br />
ISSUE<br />
Inside Information: Challenge your mind, trust your gut, says CNBC’s Guy Adami | 14<br />
Cooling Off: For freight carriers, good times not over, but tougher times hover | 16<br />
Hot Topics: FMCSA’s Ray Martinez stops by for a Fireside Chat | 32
JULY/AUGUST | TCA 2019<br />
President’s Purview<br />
Safety Meeting Shows<br />
There’s Strength in Numbers<br />
One of the most significant benefits of membership in an association is access<br />
to a network of its members. Never in my tenure as Truckload Carriers<br />
Association president has that been more apparent than at June’s 38th Annual<br />
Safety & Security Division Meeting in Memphis.<br />
During the three-day, jam-packed event, I watched as 200 of the industry’s leading<br />
safety professionals congregated to make connections and learn with the goal<br />
of improving their company’s safety record as well as our nation’s highways. The<br />
genuine willingness of our members to offer suggestions in the Safety in the Round<br />
Sessions and the participation in the open question and answer format of the panel<br />
discussions ensured that attendees who brought questions left with answers.<br />
Additionally, the industry received answers from Federal Motor Carrier Safety<br />
Administration’s Ray Martinez as he was joined by TCA’s Vice President of Government<br />
Affairs, David Heller, during an inaugural “FMCSA Fireside Chat.” The two<br />
discussed an update on the Hours of Service rulemaking timeline, the Drug and<br />
Alcohol Clearinghouse, the Our Roads, Our Safety program, and more. Martinez<br />
also stressed the FMCSA’s current focus on partnering with TCA and noted that<br />
they are hearing truckload loud and clear on the issues. Special thanks to SiriusXM<br />
Radio host Mark Willis for moderating the chat.<br />
Participation from high-profile regulators in such meetings would have been<br />
unheard of just a few short years ago. The fact that we have established a great<br />
mutual relationship with the administration in such a short amount of time is a tribute<br />
to our dedication to becoming “The Voice of Truckload” and to the efforts made<br />
by our members in getting our industry’s voice heard on Capitol Hill.<br />
Perhaps TCA Chairman Josh Kaburick summed it up best in his remarks at<br />
the safety meeting when he said the future of the association is to be stronger in<br />
membership, sustainable in its advocacy efforts, and to put forth true data analytics<br />
that are the envy of the industry.<br />
With all this being said, if you aren’t sending a representative to this meeting,<br />
you are missing out on a great wealth of knowledge that could significantly impact<br />
your operations. Mark your calendars for June 7-9, 2020, in Louisville for the next<br />
iteration of the safety meeting.<br />
In closing, make plans to attend our upcoming fall events — TCA’s Board of<br />
Directors and Committee Meetings and our Third Annual Call on Washington —<br />
both taking place in Washington September 24-25. I hope that you’ll join us as your<br />
continued participation in these events forms the basis for our growing influence<br />
on Capitol Hill.<br />
John Lyboldt<br />
President<br />
Truckload Carriers Association<br />
jlyboldt@truckload.org<br />
John Lyboldt<br />
PRESIDENT’S PICKS<br />
Inside Out with Adrian Vigneault<br />
TCA’s associate director of education treats<br />
life as one long learning experience<br />
Page 28<br />
Cultural Change<br />
Driver retention programs must<br />
be driven by C-level leaders<br />
Page 36<br />
Those who Deliver<br />
At Veriha Trucking, four siblings<br />
make it truly a family affair<br />
Page 38<br />
TCA 2019 www.Truckload.org | Truckload Authority 3
leads the way<br />
Great isn’t simply a promise, it’s our purpose. It’s why we’re<br />
looking to the future, developing new technologies and<br />
focusing on our customers’ growing needs. It’s what makes<br />
us ready for the road ahead and why<br />
Great Doesn’t Stop.<br />
GreatDane.com<br />
Great Dane and The Oval are registered trademarks of Great Dane LLC. 741 DMD 0319.
Phone: (703) 838-1950<br />
Fax: (703) 836-6610<br />
CHAIRMAN OF THE BOARD<br />
Josh Kaburick, CEO<br />
Earl L. Henderson Trucking Company, Inc.<br />
JULY/AUGUST 2019<br />
PRESIDENT<br />
John Lyboldt<br />
jlyboldt@truckload.org<br />
VICE PRESIDENT - GOV’T AFFAIRS<br />
Dave Heller<br />
dheller@truckload.org<br />
FIRST VICE CHAIR<br />
Dennis Dellinger, President and CEO<br />
Cargo Transporters, Inc.<br />
TREASURER<br />
John Elliott, CEO<br />
Load One, LLC<br />
ASSISTANT EDITOR<br />
Dorothy Cox<br />
dlcox@thetrucker.com<br />
PRODUCTION MGR. + ART DIRECTOR<br />
Rob Nelson<br />
robn@thetrucker.com<br />
EXECUTIVE VICE PRESIDENT<br />
William (Bill) Giroux<br />
wgiroux@truckload.org<br />
VP - OPERATIONS AND EDUCATION<br />
James J. Schoonover<br />
jschoonover@truckload.org<br />
SECRETARY<br />
Pete Hill, Vice President<br />
VICE CHAIR TO ATA<br />
David Williams, Executive Vice President<br />
Hill Brothers Transportation, Inc. Knight Transportation<br />
AT-LARGE OFFICER<br />
John Culp, President<br />
Maverick USA<br />
publication are not necessarily those of TCA.<br />
In exclusive partnership with:<br />
Phone: (800) 666-2770 • Fax: (501) 666-0700<br />
MARKETING MANAGER<br />
Meg Larcinese<br />
megl@targetmediapartners.com<br />
AT-LARGE OFFICER<br />
Karen Smerchek, President<br />
Veriha Trucking, Inc.<br />
TRUCKING DIVISION SVP<br />
David Compton<br />
davidc@targetmediapartners.com<br />
GENERAL MGR. T RUCKING DIV.<br />
Megan Cullingford-Hicks<br />
meganh@targetmediapartners.com<br />
SECOND VICE CHAIR<br />
Jim Ward, President and CEO<br />
D.M. Bowman, Inc.<br />
IMMEDIATE PAST CHAIR<br />
Dan Doran, President<br />
Searcy Specialized<br />
AT-LARGE OFFICER<br />
Joey Hogan, President<br />
Covenant Transport<br />
VICE PRESIDENT + PUBLISHER<br />
Ed Leader<br />
edl@thetrucker.com<br />
EDITOR<br />
Lyndon Finney<br />
editor@thetrucker.com<br />
ASSOCIATE EDITOR<br />
Klint Lowry<br />
klint.lowry@thetrucker.com<br />
PRODUCTION + ART ASSISTANT<br />
Christie McCluer<br />
christie.mccluer@thetrucker.com<br />
NATIONAL MARKETING CONSULTANT<br />
Dennis Bell<br />
dennisb@targetmediapartners.com<br />
PRESIDENT’S PURVIEW<br />
There’s Strength in Numbers by John Lyboldt | 3<br />
LEGISLATIVE UPDATE<br />
Road to Nowhere | 6<br />
Capitol Recap | 9<br />
TRACKING THE TRENDS<br />
Prime Interest | 14<br />
Settling at Zero | 18<br />
A CHAT WITH THE CHAIRMAN<br />
Well Positioned with Josh Kaburick | 20<br />
SPONSORED BY MCLEOD SOFTWARE<br />
TALKING TCA<br />
Member Mailroom: Call on Washington | 27<br />
Inside Out with Adrian Vigneault | 28<br />
Talking the Talk with Ray Martinez and David Heller | 32<br />
Cultural Changes Needed | 36<br />
Carrier Profile with Veriha Trucking | 38<br />
Pictorial Review of Safety and Security Meeting | 40<br />
Clare C. Casey Award | 42<br />
Small Talk | 43<br />
New Members| 46<br />
Important Dates to Remember | 46<br />
REACHING TRUCKING’S<br />
TOP EXECUTIVES<br />
T H E R O A D M A P<br />
© 2019 Trucker Publications Inc., all rights reserved. Reproduction without written permission<br />
prohibited.<br />
All advertisements<br />
and editorial materials are accepted and published by Truckload Authority and its exclusive partner,<br />
Trucker Publications, on the representation that the advertiser, its advertising company and/<br />
or the supplier of editorial materials are authorized to publish the entire contents and subject<br />
matter thereof.<br />
Such entities<br />
and/or their agents will defend, indemnify and hold Truckload Authority, Truckload Carriers<br />
Association, Target Media Partners, and its subsidiaries included, by not limited to, Trucker<br />
Publications Inc., harmless from and against any loss, expense, or other liability resulting from<br />
any claims or suits for libel, violations of privacy, plagiarism, copyright or trademark infringement<br />
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editorial materials.<br />
Cover Courtesy:<br />
Rob Nelson, The Trucker News Org.<br />
Additional magazine photography:<br />
Adrian Vigneault: P. 3, 30, 31<br />
Anheuser-Busch: P. 10<br />
Fotosearch: P. 9, 12, 13, 27, 36<br />
FTR Intel: P. 19<br />
Pilot Flying J: P. 12<br />
Richard Dalton Photography: P. 20, 21, 22, 24, 25, 26<br />
TCA: P. 3, 15, 16, 29, 37, 40, 41, 42, 43, 44, 45<br />
The Trucker News Org.: P. 6, 13, 14, 17, 32<br />
Veriha Trucking: P. 3, 38, 39<br />
“We have been proud members of the TCA for<br />
OVER 50 yEARS and have developed<br />
many lifetime friends by networking at<br />
events with other carriers, suppliers, and TCA<br />
associates. I look to Truckload Authority as it’s<br />
AN INVALUABLE RESOURCE – one<br />
that helps to keep me informed of upcoming<br />
opportunities and the GREAT THINGS<br />
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TRUCKING’S MOST ENTERTAINING<br />
EXECUTIVE PUBLICATION<br />
TCA 2019 www.Truckload.org | TRUCKLOAD AUTHORITY 5
JULY/AUGUST | TCA 2019<br />
Legislative Update<br />
6 Truckload Authority | www.Truckload.org TCA 2019
Road to Nowhere<br />
Political bickering weakens chances for infrastructure plan<br />
The likelihood of the U.S. seeing an infrastructure plan<br />
anytime soon (maybe even before the 2020 elections) is<br />
slipping away faster than a glass of cold water on a hot,<br />
sweltering summer day.<br />
Less than a month after President Donald Trump and<br />
Democratic congressional leaders — spearheaded by<br />
Speaker of the House Nancy Pelosi, D-Calif. and Senate<br />
Minority Leader Chuck Schumer, D-N.Y. — agreed to work<br />
together on a $2 trillion infrastructure package, a second<br />
round of negotiations went bust on May 22 when Trump<br />
left the meeting, saying he won’t work with Democratic<br />
lawmakers while they continue to investigate him.<br />
Reportedly on the agenda for the second meeting was<br />
to have been a discussion about where to come up with $2<br />
trillion.<br />
Trump took umbrage at Pelosi’s accusation earlier in the<br />
day of him being “engaged in a coverup.”<br />
Trump met briefly with Pelosi, Shumer and other<br />
Democrats that day before exiting to address reporters in<br />
the Rose Garden.<br />
Speaking at the Capitol, Pelosi and Schumer suggested<br />
that Trump was looking for excuses not to take up<br />
infrastructure.<br />
“He just took a pass,” Pelosi said. “And it just makes<br />
me wonder why he did that. In any event, I pray for the<br />
president of the United States and I pray for the United<br />
States of America.”<br />
And so, says Truckload Carrier Association Vice President<br />
of Government Affairs David Heller, progress on an<br />
infrastructure bill is at a standstill.<br />
“They were supposed to have a hard conversation about<br />
paying for the plan,” Heller said, “but obviously no one came<br />
up with an answer.”<br />
The problem now, he added, is the closer the nation<br />
comes to the August Congressional recess and next year the<br />
2020 elections, the harder it’s going to be to pass a funded<br />
infrastructure bill.<br />
“Going into May, I would have said there’s a 50-50 chance<br />
of getting an infrastructure bill passed,” Heller said. “I’d say<br />
the odds are much less now.”<br />
The spat between Trump and the Democrats is nothing<br />
but partisan politics, Heller said, and that’s a problem. He<br />
suspects “politics are going to interrupt” any action on<br />
working toward an infrastructure bill, especially as the 2020<br />
elections draw closer.<br />
The lack of an infrastructure plan is not good for the<br />
trucking industry, Heller said.<br />
“When you have projects that aren’t done, it leads to more<br />
congestion, which impacts safe driving practices,” he said.<br />
“Some of these needed projects have a tremendous impact<br />
on delivering freight. You need new roads, you need extra<br />
lanes of traffic. You need all these things to accommodate<br />
how the demographics of the nation have developed. If you<br />
By Lyndon Finney<br />
don’t have an infrastructure plan, you can’t address these<br />
needs.”<br />
Peter DeFazio, D-Ore., chairman of the House<br />
Transportation and Infrastructure Committee, criticized<br />
Trump’s decision to walk out of the meeting.<br />
“We have an infrastructure crisis in this country that<br />
will only be resolved when President Trump agrees to put<br />
partisan politics aside and get serious about investing in<br />
our nation’s crumbling roads, bridges, transit systems,<br />
harbors, airports, wastewater systems and more,” DeFazio<br />
said. “After our initial meeting at the White House several<br />
weeks back, I was hopeful we were seeing the first signs of<br />
political courage that is so badly needed to make progress<br />
and turn a campaign trail talking point into real action. It’s<br />
disappointing that today the president and his team walked<br />
back from both the $2 trillion proposal and from showing<br />
leadership on how to pay for the package.”<br />
There were obvious signs of trouble going into the May<br />
22 meeting, with both sides being guarded about how they<br />
would pay for such an investment. The White House released<br />
a letter in which Trump let Pelosi and Schumer know his<br />
preference for Congress taking up the proposed U.S. trade<br />
deal with Mexico and Canada first.<br />
“Once Congress has passed USMCA, we should turn our<br />
attention to a bipartisan infrastructure package,” Trump said.<br />
Pelosi and congressional Democrats had asked for<br />
the May 22 meeting with Trump to discuss launching an<br />
ambitious building program that’s a top priority for the party<br />
and has been a rare area of potential bipartisan accord<br />
with Republicans. Trump, too, has long promised a big<br />
infrastructure plan.<br />
The dozen Democratic lawmakers in the meeting with the<br />
president had called it a constructive start. They said Trump<br />
agreed that infrastructure investments should go beyond<br />
roads and bridges and include broadband, water systems<br />
and enhancements to the electrical grid.<br />
In that meeting, Democrats also put the onus on Trump<br />
to come up with a funding source.<br />
There probably wasn’t much of a chance of the May<br />
22 meeting yielding anything concrete because it played<br />
out against the backdrop of high tensions over escalating<br />
Democratic investigations following the release of Special<br />
Counsel Robert Mueller’s report into Russian meddling.<br />
Lawmakers and the Republican president also have an<br />
eye on the 2020 elections, meaning every provision of an<br />
infrastructure package — including how to pay for it — will<br />
be made with that in mind.<br />
At least one advocate for an infrastructure package boost<br />
sees a narrow window for action.<br />
“I think a deal can be had if everybody is willing to put<br />
their battle-axes away for a period,” said former Rep. Bill<br />
Shuster of Pennsylvania, R-Penn., who served as chairman<br />
of the House’s transportation committee for six years.<br />
TCA 2019 www.Truckload.org | Truckload Authority 7
Shuster released an infrastructure plan late in the<br />
last Congress, but like almost every meaningful piece of<br />
legislation recently, his plan was run over by a bickering<br />
Congress.<br />
Finding a bipartisan solution to funding surface<br />
transportation and other infrastructure needs remains<br />
a major challenge in Congress, according to the chair<br />
and ranking member of the House of Representatives<br />
Subcommittee on Highways and Transit.<br />
Speaking during a recent roundtable in Washington,<br />
Rep. Eleanor Holmes Norton, a Democrat and the atlarge<br />
representative for the District of Columbia, didn’t<br />
hold out much hope for coming up with an infrastructure<br />
bill and how to pay for it.<br />
“Money is the long and short of it,” she said. “I would<br />
say that while our committee is the most bipartisan in<br />
Congress, the big divide is how we pay for transportation.”<br />
She added that “we are no further along on the<br />
discussion over money than we were four years ago”<br />
when Congress passed the Fixing America’s Surface<br />
Transportation Act, according to a published report.<br />
“The world of transportation has changed and the way<br />
we are supposed to pay for it is changing,” Holmes added.<br />
Rep. Rodney Davis, R-Ill., the subcommittee’s ranking<br />
member, agreed with Norton’s view, saying it is “difficult<br />
to raise the gas tax,” especially as more fuel-efficient<br />
cars and trucks along with wider use of electric vehicles<br />
is “decimating” the revenue stream feeding into the<br />
Highway Trust Fund.<br />
Davis said during the event that he believes<br />
transportation funding needs to be viewed like a 401(k)<br />
retirement account.<br />
“We need multiple sources of revenues feeding into<br />
the Highway Trust Fund, not just the gas tax,” he said.<br />
“Relying on just the gas tax is like relying on just one<br />
stock to fund your entire 401(k).”<br />
Norton noted, however, that many states are boosting<br />
transportation funding on their own, including raising fuel<br />
taxes.<br />
“That says to me [raising fuel taxes] is not a<br />
controversial issue,” she said. “Congress must have<br />
guts to do what it has to do or come up with a different<br />
system” to fund transportation needs.<br />
Norton added that alternative funding methods such<br />
as a vehicle miles traveled tax, or VMT, are being adopted<br />
slowly.<br />
“Even that [the VMT fee] is controversial in terms<br />
of how we measure it and whether it is an invasion of<br />
privacy,” she said. “There are states in the West trying it<br />
out, but that’s the closest we’ve come to a new vision.”<br />
Norton stressed that in the end, improving<br />
transportation, “is going to cost us one way or another.<br />
We either pay for it or be stuck in the Eisenhower era of<br />
transportation and infrastructure.”<br />
Other industry stakeholders have weighed in on the<br />
infrastructure issue recently.<br />
Trucking Moves America Forward (TMAF), the trucking<br />
industrywide education and image movement, took<br />
advantage of Infrastructure Week in May to encourage<br />
lawmakers to invest in better and safer roads and bridges.<br />
“With 3.5 million truck drivers on our highways every<br />
day working to deliver America’s goods, it’s imperative<br />
that we have safe and modern roads,” said Kevin<br />
Burch, co-chairman of TMAF, president of Jet Express<br />
and a past Truckload Carriers Association chairman. “A<br />
strong infrastructure network is critical to the success<br />
of the trucking industry and all of America. Our lives,<br />
businesses and economy depend on it. Our leaders must<br />
address the nation’s infrastructure gap and provide the<br />
proper funding because, as the industry’s latest television<br />
commercial shows, life won’t wait.”<br />
To help promote Infrastructure Week and its message,<br />
TMAF published an op-ed article in the publication<br />
Morning Consult titled, “The Time to #BuildForTomorrow<br />
is Now,” speaking to the importance of excellent roads<br />
and bridges.<br />
Morning Consult is a global news and technology<br />
company revolutionizing ways to collect, organize, and<br />
share survey research data to transform how decisions<br />
are made, according to its website.<br />
“Despite poor road conditions and the traffic that<br />
results from it, 3.5 million professional truck drivers<br />
travel America’s roads every day,” Burch wrote. “Trucking<br />
professionals travel over 462 billion miles each year to<br />
make on-time deliveries to every corner of America. That’s<br />
because more than 80 percent of American communities<br />
rely solely on trucking for the delivery of their goods,<br />
including the gas in our car, food in our fridge, supplies in<br />
our office and medicine in our cabinet.”<br />
But, Burch noted, faulty infrastructure is threatening<br />
to slow down the trucking industry as well as America as<br />
a whole, adding that according to the American Society<br />
of Civil Engineers, one of every 5 miles on the nation’s<br />
highways are in poor condition and one in eight bridges<br />
are functionally obsolete.<br />
Meanwhile, a panel discussion recently during a<br />
legislative summit sponsored by the American Road &<br />
Transportation Builders Association focused on the major<br />
infrastructure issues facing the United States, especially<br />
in terms of generating more funding for transportation<br />
projects.<br />
“The message we’re trying to get out there is that<br />
[transportation] is not just about building roads like it<br />
was 30 years ago. It’s about maintaining what we have,<br />
operating it as efficiently as possible, and using all modes<br />
as part of a larger mobility network,” said Jim Tymon,<br />
executive director of the American Association of State<br />
Highway and Transportation Officials.<br />
“Transportation really has an impact on quality of<br />
life and it is one of the few areas where we can come<br />
together in a bipartisan fashion,” he said.<br />
Tymon said he is “cautiously optimistic” that some sort<br />
of infrastructure package will be agreed upon and passed<br />
by Congress and President Donald Trump. “Will it be $2<br />
trillion? $1 trillion? We will take what we can get,” he<br />
said. “But any kind of [infrastructure] package will have<br />
to address the Highway Trust Fund shortfall and the time<br />
window is getting tight to do it. Because, come January<br />
1 next year, everything will be locked down for the 2020<br />
presidential election.”<br />
How all the rancor will play out is anybody’s guess.<br />
And by the way, infrastructure extends far beyond<br />
roads and bridges.<br />
It includes a sound water distribution system.<br />
Let’s just hope the president and Congress come up<br />
with a solution before we run out of glasses of cold, clean<br />
water.<br />
Portions of this report were made possible by<br />
Associated Press sources and the American Association<br />
of State Highway and Transportation Officials.<br />
8 Truckload Authority | www.Truckload.org TCA 2019
CAPITOL RECAP<br />
A review of important news coming out of our nation’s capital.<br />
By Lyndon Finney<br />
“Clearing the way” seems to be the theme in Washington these days. FMCSA is taking applications for a pilot<br />
program for qualified veterans as young as 18 to operate CMVs in interstate commerce, while it is seeking comments<br />
on the possibility of an interstate driving pilot program for all CDL holders 18 and over. FMCSA has also made it<br />
easier for Class B CDL holders to upgrade to Class A. First steps are being taken to remove regulatory roadblocks<br />
for automated truck technology, and a fuel-tax bill to help pay for infrastructure repairs has been introduced. But<br />
wait, there’s also talk of setting a national 65-mph speed limit for 18-wheelers.<br />
FMCSA MULLS YOUNG DRIVER PILOT PROGRAM<br />
The Federal Motor Carrier Safety Administration (FMCSA) was less<br />
than one year into its existence when it was faced with making one of its<br />
first major decisions — whether to conduct a pilot program to determine<br />
if 18- to 20-year-old truck drivers could operate safely in an interstate<br />
commerce environment.<br />
The trucking industry environment in 2000 mirrors the environment<br />
of today.<br />
“The trucking industry has suffered from a longstanding and chronic<br />
shortage of drivers, which in turn has led to significant competition<br />
among trucking employers and ‘job hopping’ between companies,” a<br />
petition filed by the Truckload Carriers Association on October 2, 2000,<br />
said. “This is the reason why driver turnover is so high.”<br />
The petition laid out extensive restrictions about who could<br />
participate and how much training would be required.<br />
On February 20, 2001, FMCSA published a notice asking six questions<br />
about the proposed pilot program and requesting public comment on the<br />
TCA petition. The agency received<br />
more than 1,600 comments. Very few<br />
presented data either for or against the<br />
program, and more than 90 percent<br />
were opposed, most on the basis that<br />
individuals under the age of 21 lacked<br />
the maturity and judgment to operate<br />
a CMV. The submitted comments<br />
largely lacked an explanation of how<br />
interstate drivers under 21 would<br />
diminish safety when most states have<br />
concluded that intrastate drivers under<br />
21 do not.<br />
So, on June 9, 2003, FMCSA<br />
denied the TCA petition stating that<br />
“the agency does not have sufficient<br />
information at this time to make a<br />
determination that the safety measures<br />
in the pilot program are designed to<br />
achieve a level of safety equivalent<br />
to, or greater than, the level of safety<br />
provided by complying with the<br />
minimum 21-year age requirement to<br />
operate a CMV.”<br />
Fast forward almost 16 years since<br />
the denial of the petition, and the<br />
FMCSA on May 14 issued a request for comments on a pilot program<br />
very similar to that sought by TCA.<br />
“We need to once and for all generate the data out there that decides<br />
whether or not younger drivers are as safe or safer as their more seasoned<br />
counterparts,” said TCA Vice President of Government Affairs David<br />
Heller. “While intrastate driving for younger drivers has been around<br />
for years, nobody’s ever really taken the time to collect some of this data<br />
in a public fashion, and by public fashion meaning it is not available to<br />
the general public.”<br />
Currently, drivers ages 18-20 can only operate CMVs in intrastate<br />
commerce.<br />
The pilot program, if eventually initiated, would be similar to the<br />
current Commercial Driver Pilot Program required under the Fixing<br />
America’s Surface Transportation (FAST) Act, which allows certain<br />
18- to 20-year-olds with military training to operate CMVs in interstate<br />
commerce.<br />
Currently, drivers ages 18-20 can only operate CMVs in intrastate commerce.<br />
TCA 2019 www.Truckload.org | TRUCKLOAD AUTHORITY 9
CAPITOL RECAP<br />
The FMCSA’s May 14 notice requests comments on a second pilot<br />
program to allow nonmilitary drivers ages 18-20 to operate CMVs in<br />
interstate commerce.<br />
When it requested comments on the pilot involving military drivers,<br />
the FMCSA received 67 comments to the docket, 18 of which asked<br />
the agency to expand the current pilot program or initiate a new one<br />
specifically for younger drivers to operate in the agricultural sector.<br />
The request for comments comes just over two months after<br />
companion bills were introduced in the House of Representatives and<br />
the Senate called the “Developing Responsible Individuals for a Vibrant<br />
Economy Act” (DRIVE-Safe Act), which proposes to lower the age<br />
requirement for interstate drivers to 18 as long as the younger drivers<br />
participate in an apprenticeship program that includes separate 120-<br />
hour and 280-hour probationary periods, during which younger drivers<br />
would operate CMVs under the supervision of an experienced driver<br />
and must achieve specific performance benchmarks before advancing.<br />
Younger drivers would also drive vehicles equipped with active braking<br />
collision mitigation systems, forward-facing video event capture and<br />
speed limiters set to 65 miles per hour.<br />
Similar legislation was introduced in the last Congress, but never<br />
made it out of committee.<br />
FMCSA requests comments on the training, qualifications,<br />
driving limitations, and vehicle safety systems that FMCSA should<br />
consider in developing options or approaches for the possible<br />
second pilot program for younger drivers.<br />
The request from comments on the all-encompassing pilot program<br />
suggests the need for answers to several questions:<br />
• What data are currently available on the safety performance of 18-<br />
to 20-year-old drivers operating CMVs in intrastate commerce?<br />
• Are there concerns about obtaining insurance coverage for drivers<br />
under 21 who operate CMVs in intrastate commerce, and would these<br />
challenges be greater for interstate operations?<br />
• What is the minimum driving experience that should be required for<br />
a driver to be admitted to a pilot?<br />
• Should there be a requirement for experience driving noncommercial<br />
vehicles (e.g., to hold a regular driver’s license for some minimum<br />
period of time)?<br />
• Should there be a requirement for experience driving a CMV in<br />
intrastate commerce for some minimum amount of time? If so, what<br />
should that amount be and how should it be measured (e.g., time with a<br />
CDL, hours driven, vehicle miles traveled) and why?<br />
• Is there a minimum amount of time a younger driver should be<br />
required to hold a CLP or CDL? If so, how long and why? Are there<br />
driver training topics that should be required for younger drivers beyond<br />
those covered in the ELDT final rule? If so, what are they and why?<br />
• Should younger drivers have more limited hours of service, such as<br />
a maximum of eight hours of driving each day? If so, what limits should<br />
be applied and why?<br />
BREAKING DOWN AUTOMATED BARRIERS<br />
The National Highway Traffic Safety Administration and<br />
FMCSA have issued advance notices of proposed rulemaking on the<br />
removal of unnecessary regulatory barriers to the safe introduction<br />
of automated driving system (ADS) vehicles in the United States.<br />
NHTSA and FMCSA are seeking comments at this stage to<br />
ensure that all potential approaches are fully considered as the<br />
agencies move forward with these regulatory actions.<br />
The ANPRM released by the Federal Motor Carrier Safety Administration seeks public<br />
comment on questions regarding several key regulatory areas to better understand how<br />
changes to its rules can account for significant differences between human operators and<br />
automated vehicles.<br />
“This is the coming technology, and if science backs it and the<br />
data supports it, obviously it becomes an avenue we have to go<br />
down,” said David Heller, TCA’s vice president of government<br />
affairs.<br />
But it’s important to remember that automated technology is not<br />
going to replace drivers, he quickly added.<br />
Heller believes automated technology is so far down the road<br />
that the request for comments is just the<br />
beginning for the questions that must<br />
be asked or answered, including where,<br />
what, when and how.<br />
“And in order to get those answers,<br />
automated technology has to be tested,”<br />
he added. “And right now, there are not<br />
very many areas when they can be tested,<br />
and that’s holding up this playing field a<br />
little bit.<br />
“Everyone wants to be part of the<br />
talk about automated technology,”<br />
Heller said. “Everyone wants to be in<br />
the front of new technology that can<br />
basically revolutionize the delivery of<br />
freight across this country, and that’s the<br />
endgame,” he said. “It’s getting to the<br />
endgame that really muddies the water,<br />
things such as safety, costs, insurance,<br />
liability and cybersecurity.<br />
“All these things come into play and<br />
have to be ironed out, and we’re not even<br />
close to getting any of those answers. So,<br />
10 TRUCKLOAD AUTHORITY | www.Truckload.org TCA 2019
seeing a contingent of automated trucks on our highways, I think<br />
we are a ways off.”<br />
NHTSA seeks comment on identifying and addressing<br />
regulatory barriers to the deployment of ADS vehicles posed by<br />
certain existing Federal Motor Vehicle Safety Standards (FMVSS).<br />
The agency said it is also interested in hearing from the public on<br />
various approaches that could be used to measure compliance with<br />
the FMVSS for vehicles without conventional controls, including<br />
steering wheels and brake pedals. Public comments received during<br />
this stage will help inform NHTSA’s path forward, the agency said.<br />
The ANPRM released by FMCSA seeks public comment<br />
on questions regarding several key regulatory areas to better<br />
understand how changes to its rules can account for significant<br />
differences between human operators and ADS.<br />
These questions focus on topics such as requirements of human<br />
drivers; CDL endorsements; Hours of Service rules; medical<br />
qualifications; distracted driving; safe driving, inspection, repair,<br />
and maintenance; roadside inspections; and cybersecurity.<br />
“Our mission is to protect Americans on our roads,” said NHTSA<br />
Deputy Administrator Heidi King. “As automated driving systems<br />
develop, NHTSA will continue to adapt to make sure the agency is<br />
equipped to ensure public safety while encouraging innovation.”<br />
“FMCSA is hoping to receive feedback from commercial motor<br />
vehicle stakeholders and the motoring public on how the agency<br />
should adapt its regulations for the development of increased<br />
automated driving systems in large trucks and buses. We know<br />
that while many of these technologies are still in development, it is<br />
critical that we carefully examine how to make federal rules keep<br />
up with this advancing technology,” said FMCSA Administrator<br />
Raymond Martinez.<br />
Deadline for comments on the NTHSA proposal is July 29.<br />
Deadline for comments on the FMCSA proposal is August 26.<br />
GAS-DIESEL FUEL TAX HIKE BILL<br />
Rep. Earl Blumenauer, D-Ore., has introduced the Rebuild America<br />
Act of 2019, which would incrementally increase the federal gasoline<br />
and diesel fuel taxes to invest in America’s infrastructure.<br />
The legislation would raise the federal fuels tax by five cents a year<br />
over five years, index it to inflation, and establish Congress’ intention<br />
to replace it with a more equitable, stable source of funding within<br />
10 years.<br />
“The gas tax was last raised more than 25 years ago, which means<br />
we are paying for our 2019 infrastructure needs with 1993 dollars.<br />
That is unacceptable,” Blumenauer said. “Our nation’s infrastructure<br />
is falling apart as we fall behind our global competitors. The cost of<br />
underinvestment falls especially hard on working families and lowincome<br />
individuals who can’t afford the cost of a blown tire or lost<br />
wages due to congestion. It is past time that we get real about funding<br />
our infrastructure needs. We can’t afford inaction any longer.”<br />
The Truckload Carriers Association is supportive of Blumenauer’s<br />
efforts.<br />
“We’d love to see it happen,” said TCA’s Vice President of<br />
Government Affairs, David Heller. “The disruptors, like the<br />
infrastructure struggle between President Donald Trump and<br />
the Democrats, are becoming more frequent and that just delays<br />
conversation about the need to raise the gas and diesel tax. A gas and<br />
diesel tax hike is the best way to sustain the Highway Trust Fund.”<br />
Making the tax self-adjusting is the right approach to take, he added.<br />
“Then you don’t have to go down this road again and have more<br />
conversations. It’s a hard conversation to have in the first place.”<br />
Where the bill goes from here is anybody’s guess.<br />
To have any chance of passage, it will have to be attached to a larger<br />
bill, such as an infrastructure bill.<br />
Once more, the Trump administration might stand in the way.<br />
Introduction of Blumenauer’s legislation followed just days after a<br />
report was published stating that the White House had been reassuring<br />
conservative leaders that it has no plans to hike the gas and diesel tax<br />
to help fund the massive infrastructure package that Trump hopes to<br />
negotiate with Congress.<br />
The report said that both acting White House Chief of Staff<br />
Mick Mulvaney and Trump’s budget director, Russ Vought, have<br />
repeatedly downplayed the possibility in private meetings with fiscal<br />
conservatives who are expressing alarm that Trump might embrace<br />
a massive tax increase. Concerns have specifically centered on a<br />
potential gas tax boost, an idea that Trump has flirted with during his<br />
presidency.<br />
“It is my understanding that they are not going to be agreeing to<br />
any tax increases,” said Americans for Tax Reform President Grover<br />
Norquist.<br />
Norquist said he has discussed the matter with White House<br />
officials, but he did not disclose specifics. He was spotted at the White<br />
House, attending a meeting with Vought in which conservative leaders<br />
discussed upcoming spending battles, according to two attendees.<br />
Blumenauer, a senior member of the House Ways and Means<br />
Committee and a longtime advocate for infrastructure investment,<br />
said the U.S. faces the largest infrastructure funding gap in the world.<br />
He said the sector with the greatest shortfall is surface transportation,<br />
which the American Society of Civil Engineers estimates needs more<br />
than $1.1 trillion of investment by 2025. Since 2010, 35 states with<br />
legislatures controlled by both parties have voted to raise their gas<br />
taxes. Inaction will cost families $3,400 in annual disposable income<br />
by 2025, whereas a 25-cent gas tax increase costs the average driver<br />
less than $3 a week and contributes nearly $400 billion toward<br />
upgrading roads, bridges and transit systems. Every $1.3 billion in<br />
infrastructure investment adds 29,000 construction jobs, yields $2<br />
billion in economic growth, and reduces the federal deficit by $200<br />
million.<br />
The Truckload Carriers Association is supportive of any legislation<br />
that would increase the gas and diesel fuel tax to support<br />
the Highway Trust Fund.<br />
TCA 2019 www.Truckload.org | TRUCKLOAD AUTHORITY 11
CAPITOL RECAP<br />
DANGERS OF SPEEDING<br />
A bill was recently introduced in Congress to set a nationwide<br />
speed limit of 65 mile per hour for 18-wheelers.<br />
This bill comes on the heels of a new report by the Governors<br />
Highway Safety Association (GHSA) that highlights excessive<br />
vehicle speed as a persistent factor in nearly one-third of all motor<br />
vehicle-related fatalities.<br />
Despite this, speeding is not given enough attention as a traffic<br />
safety issue and is widely deemed culturally acceptable by the<br />
motoring public, the report said.<br />
Implementation of a comprehensive strategy to reduce speedrelated<br />
crashed is on the National Transportation Safety Board’s<br />
Most Wanted List of Transportation Safety Improvements.<br />
Also, Road Safe America, citing an increase in large-truck<br />
crashes, has repeatedly called for speed limiters on heavy trucks.<br />
FMSCA data show that speed-related fatal accidents among<br />
large trucks declined from 7.6% in 2015 to 7.1% in 2016 and to<br />
6.5% in 2017, the latest year for which data is available.<br />
“Most Truckload Carriers Association members have already<br />
limited their trucks somewhere in the 58 to 68 mph range,” said<br />
TCA Vice President of Government Affairs David Heller. “Our<br />
policy supports 65 miles per hour.<br />
“The reality is that as carriers have rolled out their ELD<br />
systems that recoupled with telematic kinds of things, they are<br />
doing more with speed control programs than they ever did with<br />
speed limiters,” Heller said. “Speed limiters only give you a<br />
limit. They don’t address driving 45 miles an hour in a 25-milean-hour<br />
zone. If a bill does get introduced, what are the chances<br />
of it going anywhere? Well, nothing gets done standalone.<br />
Most Truckload Carriers Association members have already limited their trucks somewhere in<br />
the 58-68 mph range.<br />
It has to be attached to something else. Clearly, it won’t get in<br />
appropriations because a lot of that work has already been done.<br />
Then you have to look at surface transportation reauthorization or<br />
infrastructure. If infrastructure doesn’t get done, they are talking<br />
about reauthorization.”<br />
The GHSA’s “Speeding Away from Zero: Rethinking a Forgotten<br />
Traffic Safety Challenge” takes a fresh look at this challenging<br />
topic, outlining the latest available data and research, federal<br />
and state policies, existing programs to reduce speeding-related<br />
crashes, and promising future approaches, according to GHSA<br />
Executive Director Jonathan Adkins.<br />
“If we want to get to zero deaths on our roads, we need to<br />
address speeding on a much deeper and more comprehensive level<br />
than we have been,” Adkins said. “This clear and present danger on<br />
our roadways makes it imperative to devote additional resources<br />
toward getting drivers to slow down in order to save lives.”<br />
Speeding by motorists particularly threatens the safety of<br />
pedestrians and bicyclists by not only increasing the chances of a<br />
crash, but also increasing the risk of serious injury or death when<br />
crashes occur, the report said.<br />
A 2017 national survey of drivers conducted by AAA Foundation<br />
for Traffic Safety found that half of motorists (50.3%) reported<br />
exceeding the speed limit by 15 mph on a freeway, and 47.6%<br />
reported driving 10 mph over the speed limit on a residential<br />
street in the past month. In addition, this study found that there is<br />
a greater disapproval by drivers for speeding on residential streets<br />
than on freeways.<br />
Of those respondents, 79.3% feel that speeding on freeways<br />
is a serious or somewhat serious<br />
threat to their safety, and 88.2%<br />
view drivers speeding on<br />
residential streets as a very serious<br />
or somewhat serious threat to their<br />
personal safety. However, 23.9% of<br />
respondents believed that speeding<br />
15 mph above the posted speed limit<br />
on the freeway is “completely” or<br />
“somewhat” acceptable.<br />
These self-reported behaviors<br />
and attitudes have varied only<br />
slightly in the previous 10 years,<br />
the report said.<br />
On the other hand, even small<br />
decreases in travel speed can<br />
reduce crash and injury severity<br />
and save lives.<br />
While some urban areas have<br />
had success in reducing vehicle<br />
speeds (for example, by lowering<br />
the speed limits in New York City<br />
and Boston), a greater proportion<br />
of speeding-related fatalities<br />
actually occur on rural roadways,<br />
claiming more than 5,000 lives in<br />
2016 alone.<br />
To download the GSA report,<br />
visit www.ghsa.org.<br />
12 TRUCKLOAD AUTHORITY | www.Truckload.org TCA 2019
CDL UPGRADE PROCESS<br />
The FMCSA said it recognized that because Class B CDL holders<br />
have prior training or experience, they should not be required<br />
to receive the same level of theory training as individuals<br />
who have never held a CDL.<br />
The FMCSA has issued a final rule streamlining the process and<br />
reducing costs to upgrade from a Class B to a Class A commercial driver’s<br />
license (CDL).<br />
By adopting a new Class A CDL theory instruction upgrade curriculum,<br />
the final rule will save eligible driver trainees and motor carriers $18<br />
million annually.<br />
“This action demonstrates the department’s commitment to reducing<br />
regulatory burdens and addressing our nation’s shortage of commercial<br />
drivers,” said Department of Transportation Secretary Elaine Chao.<br />
The FMCSA is also amending the entry-level driver training (ELDT)<br />
regulations published on December 8, 2016. The ELDT rule requires the<br />
same level of theory training for individuals who already hold a Class B<br />
CDL and are upgrading to a Class A CDL as for those who are obtaining<br />
a CDL for the first time.<br />
The FMCSA said it recognized that because Class B CDL holders have<br />
prior training or experience, they should not be required to receive the<br />
same level of theory training as individuals who have never held a CDL.<br />
The FMCSA has concluded this change will maintain the same level of<br />
safety established by the 2016 ELDT rule.<br />
“This effort is a commonsense way of reducing the regulatory<br />
burdens placed on CDL applicants and their employers,” said FMCSA<br />
Administrator Raymond Martinez. “FMCSA continues to strategically<br />
reform burdensome regulations to improve the lives of ordinary<br />
Americans by saving them valuable time and money, while simultaneously<br />
maintaining the highest level of safety.”<br />
The FMCSA estimates that over 11,000 driver trainees will benefit<br />
annually by this rule and see an average reduction of 27 hours spent<br />
completing their theory instruction. This will result in substantial time and<br />
cost savings to these driver-trainees, as well as to the motor carriers that<br />
employ these drivers.<br />
The final rule applies only to Class B CDL holders and does not change<br />
the behind-the-wheel (BTW) range and public road training requirements<br />
set forth in the 2016 ELDT rule. All driver trainees, including those who<br />
hold a Class B CDL, must demonstrate proficiency in all elements of the<br />
BTW curriculum in a Group A vehicle.<br />
To learn more about FMCSA’s entry-level driver training regulations,<br />
visit fmcsa.dot.gov/registration/commercial-drivers-license/eldt.<br />
MILITARY PILOT PROGRAM DRIVERS SOUGHT<br />
The FMCSA is accepting applications for a pilot program to<br />
permit 18- to 20-year-olds who possess the U.S. military equivalent<br />
of a commercial driver’s license to operate large trucks in interstate<br />
commerce.<br />
“This program will help our country’s veterans and reservists<br />
transition into good-paying jobs while addressing the shortage of truck<br />
drivers in our country,” said Department of Transportation Secretary<br />
Elaine Chao.<br />
As directed by Section 5404 of the Fixing America’s Surface<br />
Transportation (FAST) Act, the pilot program will allow a limited<br />
number of individuals between the ages of 18 and 20 to operate large<br />
trucks in interstate commerce, provided they possess the military<br />
equivalent of a CDL and are sponsored by a participating trucking<br />
company. During the pilot program, which is slated to run for up to<br />
three years, the safety records of these drivers will be compared to the<br />
records of a control group of drivers.<br />
“We are excited to launch this program to help the brave men and<br />
women who serve our country explore employment opportunities in<br />
the commercial motor vehicle industry,” said FMCSA Administrator<br />
Raymond Martinez. “With the nation’s economy reaching new<br />
heights, the trucking industry continues to need drivers and have job<br />
openings. We encourage veterans and reservists to apply and to learn<br />
more about this exciting new program.”<br />
The program was revealed by Chao in July 2018 during a news<br />
conference in Omaha, Nebraska, which was attended by Sen. Deb<br />
Fischer, R-Neb.; and Rep. Don Bacon, R-Neb., himself a military<br />
veteran who served in the United States Air Force from 1985 to 2014,<br />
reaching the rank of brigadier general.<br />
“This innovative program offers a way for our younger veterans<br />
and reservists to transition to the civilian workforce,” Bacon said.<br />
“I personally thank Secretary Chao and officials with the DOT who<br />
continue to find ways to utilize the training and talent of the men and<br />
women who served in uniform for our country.”<br />
During the military pilot program, the safety records of the participants<br />
will be compared to the records of a control group of drivers.<br />
TCA 2019 www.Truckload.org | TRUCKLOAD AUTHORITY 13
JULY/AUGUST | TCA 2019<br />
Tracking The Trends<br />
By Klint Lowry<br />
Back in the late ’70s, the brokerage firm EF<br />
Hutton launched a very popular ad campaign<br />
built around the slogan, “When EF Hutton speaks,<br />
people listen.”<br />
Guy Adami knows the feeling. And after 12 years<br />
offering his insights into the world of finance on<br />
CNBC’s “Fast Money,” he’s as comfortable in the role<br />
of high-profile media influencer as he is with himself<br />
personally, and that’s pretty darn comfortable.<br />
His body language is as relaxed as his voice,<br />
which resonates from the diaphragm with just<br />
enough of a New York accent to add character<br />
without crossing over into caricature. He doesn’t<br />
think twice about slipping in an expletive now and<br />
then, but just often enough that it emphasizes his<br />
conviction in what he’s saying.<br />
It’s no wonder he made it on television, and<br />
why he is frequently asked to speak at events, as<br />
he was for the general session on the third day<br />
of the Truckload Carriers Association’s 81st Annual<br />
Convention. Adami had arrived early and was<br />
hanging out in the meeting room before the start<br />
of that morning’s general session. His game plan<br />
for his presentation was similar to the way he approaches<br />
his TV show.<br />
“TV is an entertainment medium,” he said. “So,<br />
you have to entertain, but it doesn’t mean you<br />
can’t be smart. We’re not splitting the atom up<br />
there, we’re trying to help people navigate markets<br />
and sort of learn what’s going on in the world.<br />
And you can make that fun.”<br />
People ask him how he prepares for the show,<br />
he said. “Just existing prepares you for the show,<br />
just paying attention to what’s going on.”<br />
Adami said his morning routine is to start reading<br />
an article, “and it’ll take you down the rabbit<br />
hole of another article, and 45 minutes to an hour<br />
later, you’re into some deep stuff.”<br />
People don’t do enough of that nowadays, Adami<br />
said as he started in on one of the themes he<br />
would cover in his speech.<br />
“We live in a society where people want to do a<br />
pushup and look like Charles Atlas,” he said. “They<br />
want to take a pill and lose 50 pounds. Very few<br />
people are willing to put in the time necessary to<br />
look good, to lose weight, to ramp your game up<br />
on the information front.”<br />
People also tend to cherry-pick their information<br />
and filter it to their liking, he said.<br />
14 Truckload Authority | www.Truckload.org TCA 2019
“The truth is out there, but more often than<br />
not, people don’t really want the truth,” he said. “They’ll<br />
ask for it, but they don’t really want it. That’s unfortunate,<br />
because what you wind up doing, in my opinion,<br />
you’re looking for the answer that will back up your own<br />
belief system, and that’s a problem.”<br />
And with today’s media, he added, it’s easy to do.<br />
“You tune into FOX for 10 minutes, then you tune<br />
into MSNBC, and you’ll think you’re living on two different<br />
planets,” he said.<br />
One of the things they try to do on “Fast Money,”<br />
he said, is to help people ask the right questions, dig<br />
deeper, explore all of what he calls the “tentacles” of a<br />
story — when something happens in business, consider<br />
all the possible cause-and-effect repercussions.<br />
“Natural curiosity takes you a long way in life,” he<br />
said.<br />
Adami said he did a little homework about trucking,<br />
“but I’m not going to get up there and pretend I know<br />
this industry better than they do, because I don’t,” he<br />
added. “I don’t want to insult anybody and pretend<br />
that I was parachuted in and I’m an expert in trucking.<br />
“When I am in the audience, I want to learn a little<br />
bit about the speaker,” he said. Sometimes it helps to<br />
know where someone came from to understand where<br />
they’re coming from. Besides, people are always curious<br />
about how he wound up on TV, and there are some<br />
important points woven into his backstory.<br />
Be bullish about yourself<br />
Adami started at the beginning — before the beginning,<br />
actually, to 1960, three years before he was<br />
born.<br />
“My mother was in her first day of law school at<br />
Fordham University,” Adami said. “She was one of five<br />
women in her class. The professor looked at them and<br />
said, ‘Why are you here? Are you here to meet your<br />
husband?’ What he was saying was, you may find a<br />
husband here, but you gals aren’t going to get a law<br />
degree.<br />
“Well, he was half right,” Adami said. In fact, his<br />
parents met later that same day. But his mother also<br />
earned her law degree, passed the bar and set an example<br />
for her newborn son: “Don’t let people define<br />
who you are. You are in charge of your own destiny.”<br />
Years later, Adami said, when he told his high school<br />
counselor he wanted to go to Georgetown University<br />
the counselor told him don’t even bother applying,<br />
he’d never get in.<br />
“I said to myself, who’s this guy to tell me what I can<br />
and cannot do?” That spring he went to his counselor’s<br />
office again, laid a copy of his acceptance letter from<br />
Georgetown on his desk, and walked out.<br />
Wall Street provided its own kind of education, Adami<br />
said, and that education began immediately.<br />
In 1985, as he was nearing graduation from<br />
Georgetown, Adami’s parents were representing a client<br />
from the investment bank Drexel Burnham Lambert,<br />
who agreed to let Guy spend some time at their<br />
trading desk. When he got there the first morning,<br />
they had a seat set up for him at the end of the desk,<br />
so he sat down.<br />
“And I sat there, and I sat there. Day one, nobody<br />
said a word. Next day, same thing.”<br />
Finally, around lunchtime Friday, Adami said, “some<br />
guy with suspenders walks over and says, ‘Listen,<br />
junior, you been coming all week, you been sitting in<br />
that seat. You haven’t said a word. What exactly do<br />
you want to do?’ And I said I was hoping to get a job.<br />
And he said, ‘Well, maybe you should have said something<br />
on Monday.’”<br />
He got the message: “If you want something in life,<br />
you have to advocate for yourself. You have to put<br />
yourself out there,” Adami said.<br />
“So I said to him, ‘I want a job when I graduate this<br />
spring.’ He said, ‘Great, come the Monday after graduation.’<br />
And that’s how I got my start on Wall Street.”<br />
A lifelong sports fan, Adami likes to say he only<br />
went into finance after he accepted he was never going<br />
to play shortstop for the Yankees or tight end for the<br />
Giants.<br />
TCA 2019 www.Truckload.org | Truckload Authority 15
“Wall Street to me was professional sports<br />
without the contact,” he said. As a commodities<br />
trader, “each day there was a final score. You knew<br />
if you’d won or lost. And I loved that mentality. I<br />
loved that competition every day. That, to me, was<br />
the hook of Wall Street.”<br />
He quickly worked his way up to be head gold<br />
trader at Drexel Burnham Lambert. Then in 1996,<br />
he got a call from Goldman Sachs. He met with<br />
two of the company’s executives, who explained<br />
their head gold trader was leaving and they wanted<br />
to offer him the position.<br />
“And I remember sitting there thinking, wow,<br />
this is pretty amazing.” Adami said when he asked<br />
if he could have a little time to talk to his wife and<br />
think about it, they looked him in the eye and said,<br />
“You can have all the time you want, but we need<br />
a decision before you leave this room.”<br />
They were testing him, he said.<br />
“You have to trust your instincts in life,” he<br />
said. “We make thousands of decisions each day,<br />
most of them mundane — ‘What shirt am I going<br />
to wear?’ ‘What am I going to have for breakfast?’<br />
But every once in a while, you have to make a decision<br />
that’s going to change the outcome of your<br />
life.<br />
“I think we’re all born with great instincts. I<br />
think we get ourselves in trouble when we fight<br />
against our instincts.<br />
“So I said: ‘You know what? You’re right. I don’t<br />
need any time at all. When do I start?’ I trusted<br />
my instincts and they proved to be right.”<br />
A few years later, he faced another big decision.<br />
Adami could see he wasn’t on track to make partner.<br />
He’d have to decide if he should stand pat or<br />
take his Goldman Sachs pedigree and parlay that<br />
into an opportunity somewhere else.<br />
In 2003 he got a job as an executive director<br />
with CIBC World Markets. It proved to be a serendipitous<br />
move.<br />
Barely a week into his new job, CNBC came in<br />
to do a segment on CIBC’s annual Charity Day.<br />
When several colleagues balked at going on-camera,<br />
it fell to Adami to do the segment.<br />
“So, I went on air with Bertha Coombs, and we<br />
talked about aluminum prices and steel companies,”<br />
Adami said. “It was probably about 45 seconds<br />
to a minute, and it went really well.”<br />
In fact, it went so well that about a week later<br />
Liz Claman called and asked if he’d like to come on<br />
her show once or twice a week and give a report<br />
from the trading desk.<br />
He did this for about six months. Meanwhile,<br />
CNBC was developing a new show, an “ESPN for<br />
trading.” After a long audition process, Adami was<br />
picked to be one of the “Fast Money Five.”<br />
“Fast Money” began as an 8-minute segment<br />
on another show. Then after a one-week run filling<br />
in for another show, the network decided to give<br />
“Fast Money” its own one-hour time slot.<br />
“Now, I still had this day job at CIBC World<br />
Markets,” Adami said. They’d been OK with him<br />
doing his short segments, but they felt an hourlong<br />
show was too much of a commitment. Adami<br />
countered that it would be great publicity for the<br />
company.<br />
“The guys at CIBC didn’t see it that way,” he<br />
said. “Once again, I had to make a choice.”<br />
He was 42 years old, had three kids and was<br />
making a good living. But how often does an opportunity<br />
like this come along? Never again, he<br />
figured, not if he turned down this one.<br />
16 Truckload Authority | www.Truckload.org TCA 2019
He trusted his instincts, made his choice, and here<br />
it is, 12 years later.<br />
As good as it looks<br />
Adami’s high school football coach once told him<br />
that the best time to coach a team is after a win.<br />
The Great Recession is a decade behind us, Adami<br />
said, and the country has been riding a long winning<br />
streak. “Right now, when things are going right in the<br />
markets, that’s the best time to talk about what could<br />
go wrong,” he said.<br />
Adami said he has concerns, and a lot of them<br />
have to do with the Federal Reserve. Back in 2008 and<br />
2009, the Fed “did what they had to do” to prop up<br />
banks that were overleveraged “because people were<br />
making bets they shouldn’t have made.”<br />
“I’m not going to question what [the Fed] did in<br />
2008 and 2009,” Adami said. His problem is that<br />
they’ve kept doing it.<br />
It’s a popular notion that the economy is strong and<br />
high consumer confidence is one of the indicators of<br />
that, Adami said. “I take a little bit of umbrage with<br />
that. You have to ask, ‘What is consumer confidence?’”<br />
It’s mostly a matter of perception, he said. When<br />
the Dow and the S&P go up, so does consumer confidence.<br />
“Not because they’re any richer,” he said.<br />
“They may not even own stocks.” But people see those<br />
numbers go up and they think, “If the stock market<br />
is doing well, the economy must be doing well. If the<br />
economy is doing well, I should be able to spend.”<br />
By the same token, Adami said, look what happened<br />
last October. The stock market plunged and<br />
consumer purchasing collapsed.<br />
“People have been whispering lately, ‘Are we due<br />
for a recession?’” Adami said. “The question is, does a<br />
recession cause a stock market selloff, or does a selloff<br />
cause a recession?<br />
“I think it’s the latter. I think the stock market sells<br />
off, the evening news runs with it, and if they lead<br />
with ‘the stock market is down 500 points,’ people take<br />
notice of that. If it happens enough, people start to<br />
wonder if they should buy that cup of coffee or go on<br />
that trip.”<br />
Adami said he believes Fed policy over the last 10<br />
years has the economy on a “sugar high,” and it’s part<br />
of a problem that goes back even further than that.<br />
In 1871, Adami said, there was a fire in Peshtigo,<br />
Wisconsin. It was the deadliest fire in American history.<br />
Afterward, the National Forestry Service was created<br />
with fire sequestration as its main duty. And they<br />
were good at it, too good.<br />
“What they failed to recognize is that fires are an<br />
essential part of the cycle,” Adami said. “Old trees burn<br />
down, new growth comes up. What wound up happening<br />
was when fires did happen they were 10 times<br />
worse because they prolonged the inevitable.”<br />
In the 1980s, something similar happened with the<br />
Federal Reserve, Adami said. “Alan Greenspan said, ‘I<br />
can take out the recession portion of the cycle.’”<br />
But what Greenspan didn’t or wouldn’t recognize,<br />
Adami said, “is that recession is essential; companies<br />
that aren’t viable go away, new companies come up<br />
and the economy is stronger for it.”<br />
Ever since then, Adami said, “the downturns that<br />
would have been bad have been worse.”<br />
Now, we’re on this prolonged sugar high, Adami<br />
said, but at the same time “the chasm between the<br />
haves and the have-nots continues to grow, and why is<br />
that? In my opinion because of Fed policy.”<br />
The markets are inflated, he said, “and the wealthiest<br />
5%, the ones who own all the stocks, are making<br />
all the money.”<br />
Meanwhile, corporations have gotten lazy, Adami<br />
said. They borrow money cheap, pay out dividends or<br />
buy back their stocks. The stock goes up, and the investors<br />
are happy. All the while they neglect the business<br />
itself. Look what’s happened to General Electric,<br />
Adami said.<br />
People argue about which is better, a strong dollar<br />
or a weak dollar, Adami said. A weaker dollar can<br />
increase exports, he added, but it also diminishes consumers’<br />
buying power. If there’s one thing the trucking<br />
industry doesn’t need to be told, it’s the importance of<br />
consumer spending.<br />
“I try to live a healthy life,” Adami said, “and one<br />
thing I know, processed sugar is one of the worst<br />
things for you. We also know if you get off it, you’re<br />
going to feel great. The problem is that painful period<br />
in between.<br />
“If the economy is so strong, how come we can’t<br />
raise rates without causing a panic? If I was the Fed<br />
chair, I’d say, you know what, we’ve been on this processed<br />
sugar for 10 years, we’re going to get off it.”<br />
Raising rates may hurt the multinational corporations<br />
for a while, he said, but it will help the consumer,<br />
and in the long run that’s healthier for everyone.<br />
Throughout his presentation, Adami kept reiterating<br />
that what he was saying was strictly his opinion,<br />
an implied invitation to the audience to do their own<br />
homework, to dig below the surface.<br />
“Ask yourself the hard question, ‘Is the economy as<br />
strong as I’d like to think it is, or are there underlying<br />
things going on that I don’t want to acknowledge?’”<br />
When he started his presentation, Adami casually<br />
mentioned he’d been at the convention the evening<br />
before, when TCA held its Truckload Strong fundraising<br />
event, and he saw people were walking around in<br />
these cool bowling shirts. He commented that if there<br />
was an extra one lying around, he’d like to have one.<br />
Adami swore later that it was a totally off-the-cuff<br />
comment. But by the time his speech was over, then-<br />
Chairman Dan Doran came on stage to present him<br />
with a Team TCA bowling shirt.<br />
It just goes to show what happens when you advocate<br />
for yourself.<br />
TCA 2019 www.Truckload.org | Truckload Authority 17
Settling at<br />
Forecast for trucking: Remaining steady with slow growth or decline<br />
By Cliff Abbott<br />
“We think we’re going to settle somewhere around<br />
zero. That’s not a bad thing, it just means we won’t<br />
see rapid growth or decline, and carriers can plan accordingly.”<br />
That’s according to Avery Vise, vice president of<br />
trucking for FTR, a Columbus, Indiana-based provider<br />
of freight transportation analysis and forecasting. Vise<br />
was discussing the climate for freight haulers in the<br />
coming months, using FTR’s Trucking Conditions Index<br />
(TCI), a proprietary tool that incorporates available<br />
data on freight volumes, rates, industry capacity, fuel<br />
pricing and costs of financing to calculate a monthly<br />
score.<br />
A TCI indicator of “zero” means that conditions for<br />
operating a trucking business remained steady in that<br />
month, neither improving nor declining.<br />
As with many such measurements, trends are<br />
more predictive than individual monthly scores. For<br />
the past few years, the TCI has been climbing steadily<br />
as freight availability and hauling rates increased with<br />
the growing economy while fuel prices and interest<br />
rates remained relatively stable. By dipping into negative<br />
territory for the first time in years, the March TCI<br />
seems to confirm what industry analysts have been<br />
predicting for months: The good times aren’t over yet,<br />
but tougher times, including a potential recession,<br />
hover on the horizon.<br />
“We’ve just had an extraordinary market that has<br />
lasted since quarter three of 2017, so when you look at<br />
the graph, things look pretty tough,” Vise said, referring<br />
to the downward turn of the data on the graphic<br />
that accompanied the TCI report.<br />
“We predict freight will continue to grow at a rate of<br />
about 2% through 2019,” he added.<br />
In a follow-up conversation held after the April TCI<br />
came in at -0.64, Vise revised the FTR prediction. “Our<br />
current outlook is growth of about 1.6%,” he said.<br />
18 Truckload Authority | www.Truckload.org TCA 2019
While it may be difficult to find the<br />
bad news in predicted growth, the<br />
growth in another area is contributing<br />
to the problem. Sales of new<br />
Class 8 trucks are growing at a rate<br />
25.1% higher than last year, which<br />
was a very good year for truck sales.<br />
America’s capacity to haul freight is<br />
increasing by about 10,000 trucks<br />
per month. There are enough orders<br />
already on the books to keep the<br />
build going for another seven to eight<br />
months.<br />
The law of supply and demand<br />
applies to trucking. For the past few<br />
years, there haven’t been enough<br />
trucks to haul all the freight made<br />
available through the growing economy,<br />
sending freight rates skyward<br />
and providing record profits for<br />
many carriers. Today, as more trucks<br />
hit the road, the balance is shifting.<br />
Spot rates are already stagnant and headed downward<br />
in some regions, with longer-term contract rates soon to<br />
follow. “If you are operating in the spot market, things<br />
will be softer,” Vise stated. “Those that keep costs down<br />
will be ok, while those that spent the extra earnings realized<br />
during the rate spikes will have a more difficult<br />
time.”<br />
Contract rates are far less volatile. “We’re expecting<br />
this year to be almost flat,” Vise said. “For the remainder<br />
of this year, we’re expecting softer contract rates to offset<br />
higher rates from earlier in the year.”<br />
While freight rates are expected to decline gradually,<br />
there are a few factors that could accelerate the process,<br />
the proverbial monkey wrench in the economic system.<br />
One factor that looms large is the prospect of tariffs, those<br />
imposed by the Trump administration and even those that<br />
are threatened.<br />
“We’ve seen a sharp decline in imports in quarter one,<br />
partly due to the threat of tariffs,” Vise said. “That pushes<br />
the GDP (Gross Domestic Product) upward. But remember<br />
that imports create business for the trucking industry,<br />
too.”<br />
Vise said threatened tariffs on goods from Mexico<br />
would have had far greater impact on the U.S. market and<br />
on transportation than tariff issues with China.<br />
“The risk of upsetting the economic apple cart is much<br />
greater with Mexico than with China,” he said. “Mexico is<br />
the world’s second-largest exporter of goods, more than<br />
twice the size of China.”<br />
Still, carriers that haul a lot of imported freight from<br />
West Coast ports will see a reduction in Chinese trade.<br />
Some of that reduction will be picked up by other Asian<br />
countries, such as Taiwan and South Korea.<br />
“Asian trade, excluding China, is growing well,” Vise<br />
said. “But what does happen is there will be winners and<br />
losers.” He pointed out that imports from Europe are growing,<br />
particularly from France and Italy. Overall, he said,<br />
carriers hauling imports from ports west of the Mississippi<br />
will see a reduction of import freight while carriers hauling<br />
from eastern ports will see an increase.<br />
Recent demonstrations in Hong Kong, if they have an<br />
impact at all, will have a greater impact on financial and<br />
service industries than on goods produced, which take up<br />
a much smaller share of the market.<br />
Fuel price fluctuations can have a devastating impact.<br />
“We’re looking at fuel being moderately higher,” Vise said,<br />
FTR Trucking Conditions Index<br />
“but nothing drastic, unless the market is impacted by<br />
something unexpected, like a refinery shutdown due to a<br />
hurricane.”<br />
Vise noted that May prices for crude oil remained subdued,<br />
helping salve any volatility in the market.<br />
Interest rates are another factor. When the cost of borrowing<br />
rises, carriers pay more for investments in new<br />
equipment, terminals and other capital.<br />
“We don’t expect any sudden increases, but financing<br />
could be impacted by the tariff situation.” Vise said.<br />
While all of this may seem to be of more interest to<br />
carrier ownership than to drivers, the conditions could<br />
impact drivers, as well. Driver pay, for example, can be<br />
influenced.<br />
“We’re not seeing upward pressure on driver pay, so<br />
that incentive to switch carriers might be curtailed,” Vise<br />
said, adding that the implementation of the Federal Motor<br />
Carriers Safety Administration’s new Drug and Alcohol<br />
Clearinghouse, set to go into operation January 6, 2020,<br />
could also have an impact on hiring.<br />
As driver turnover decreases, carriers can be more selective<br />
in their hiring, making it more difficult for drivers<br />
with less-than-perfect records to qualify.<br />
Those who are considering buying a truck and becoming<br />
an owner-operator will want to carefully consider the<br />
conditions before jumping. Vise pointed out two factors<br />
that could impact the decision: “Financing is not great<br />
right now, and spot rates are down, impacting owner-operators<br />
who depend on brokered freight.”<br />
He also pointed to the trend of carriers moving away<br />
from the leased operator model and instead dealing with<br />
owner-operators through a brokerage model.<br />
“There may be more opportunity for a new trucking<br />
business owner in that area,” Vise said, citing ongoing litigation<br />
in which courts are ruling that lease operators are<br />
employees as one of the potential reasons for the shift.<br />
While change is the one constant in the trucking industry,<br />
Vise notes that predictions of recession have eased<br />
somewhat.<br />
“Carriers can consider themselves lucky for this year,”<br />
he said. “There were some fears it would be much worse.<br />
We’re looking at some very small negatives, following a<br />
year of huge positives. So far, the lows aren’t as low as the<br />
highs were high. It’s still a good environment for trucking.”<br />
Carriers may not repeat the record profits from last<br />
year, but there are still profits to be made.<br />
TCA 2019 www.Truckload.org | Truckload Authority 19
JULY/AUGUST | TCA 2019<br />
A Chat With The Chairman<br />
20 Truckload Authority | www.Truckload.org TCA 2019
Sponsored by<br />
Well Positioned<br />
Foreword and Interview by Lyndon Finney<br />
Josh Kaburick is no stranger to the truckload environment. First of all, his heritage is strong, as Josh has followed<br />
in the footsteps of his late father, John Kaburick, a past Truckload Carriers Association chairman. In his own words,<br />
Josh says as a teenager, he worked in the shop, cleaned out trucks, washed trailers and emptied wastebaskets. No job<br />
was too small for him, and that allowed Josh to build a work ethic that educated him in trucking from the bottom up.<br />
Today, his company, Earl L. Henderson Trucking, operates as a full truckload dry van and refrigerated carrier with<br />
350 power units and 700 trailers. Nor is Josh a stranger to the association itself, with his TCA life experience mirroring<br />
his truckload life. Those life experiences have prepared Josh to lead TCA as chairman of a growing association.<br />
In his second Chat With the Chairman, among other topics, he talks about what the association has accomplished<br />
during his first two months in office and looks ahead to the coming months, addresses the increase in truck crashes,<br />
speaks to trucking’s frustration with Washington’s inability to find a way to bolster the Highway Trust Fund and urges<br />
members to make plans for September’s Call on Washington.<br />
TCA 2019 www.Truckload.org | Truckload Authority 21
Sponsored by Mcleod software<br />
McLeodSoftware.com | 877.362.5363<br />
As we conduct this interview, you’ve just<br />
completed your second month as chairman.<br />
Share with our readers what the experience<br />
has been like and some of the things you’ve<br />
accomplished during that short timeframe.<br />
And share with us what you will be working<br />
on in the next couple of months.<br />
We continue to move the ball forward on<br />
our initiatives that provide sustainable growth<br />
and strength for TCA. With FreightWaves buying<br />
StakUp, which is the data platform behind<br />
the TPP program, this will only strengthen TCA’s<br />
ability to provide the most real-time data in the<br />
industry. It will also provide TPP members with<br />
the expertise to glean better data analytics. The<br />
TPP program, as well as our advocacy efforts,<br />
continues to grow. TCA is seeing more members<br />
come to DC for scheduled successful Hill visits.<br />
TCA is becoming a well-known and respected<br />
voice of the truckload segment on Capitol Hill.<br />
These efforts are vital for truckload’s voice to<br />
be heard on the Hill. Truckload Academy will be<br />
releasing its rebuilt and revamped educational<br />
program in the third quarter. More to come on<br />
this, but the wait is well worth it. Membership<br />
is growing at TCA. Membership currently sits at<br />
nearly 700 members. In March, we launched<br />
Truckload Strong to strengthen TCA’s efforts to<br />
be recognized as the association of choice for<br />
the truckload industry.<br />
When this issue reaches the membership, the TCA Safety<br />
and Security Division will have held its annual meeting.<br />
Every carrier calls safety its No. 1 priority, yet the largetruck<br />
fatality rate increased 9 percent in 2017 over 2016.<br />
The number of fatalities in 2017 was the most since 2007. In<br />
fact, in the last two years for which data is available,<br />
large-truck fatalities have increased 16.3 percent. What<br />
does the industry need to do to reverse the upward<br />
trend?<br />
Yes, the data certainly isn’t favorable. In fact, if you look at<br />
the data, speeding and distracted driving remain the top two<br />
issues that that are cited in regard to our accident numbers,<br />
symptoms that can certainly be remedied by our industry, and<br />
should be. Today’s trucks are aligned with technology that<br />
has the potential to improve the safety performance of our<br />
industry. Speed management practices are being utilized more<br />
than ever before and it doesn’t just stop with speed limiters,<br />
but rather practical speed management programs employed<br />
by fleets that have incorporated telematics systems with their<br />
ELDs. Distracted driving, as it relates to cellphone usage, has<br />
become an epidemic of sorts and carriers need to do a better<br />
job of policing their driving force. While over 90% of drivers<br />
say reading a text while driving should be considered distracted<br />
driving, that hasn’t yet translated into accident reduction,<br />
as nearly 50% have stated they read a text while operating a<br />
CMV. That message must continue to resonate within our fleets<br />
so that we can reverse these trends. The secrets in safety displayed<br />
at our recent meeting have shown that carrier interest<br />
in operating safely continues to climb and the efforts to reduce<br />
the trends in accidents have been placed front and center.<br />
It’s been almost two and a half years since President Donald Trump first mentioned the need for an<br />
infrastructure plan. Recently, what appeared to be progress toward an actual plan fell victim to partisan<br />
politics when Mr. Trump walked out of a meeting with Democrats after they mentioned the possibility<br />
of a coverup on a matter completely unrelated to the infrastructure. Is there anything the trucking<br />
industry can do to encourage the administration and congressional leadership to finally produce a plan?<br />
If only our infrastructure problem was two and a half years old. The progress made during the Trump/Democratic<br />
meeting on infrastructure should only have been viewed as the easy conversation to have. The much more difficult<br />
part of this whole discussion has been the pay-fors, which will continue to plague these conversations until many of<br />
the congressional distractions are eliminated and our elected officials commit themselves to an infrastructure plan<br />
that works. The most economically feasible plan should include an increase to the federal fuel taxes to support the<br />
Highway Trust Fund so that our roads and bridges can be upgraded to an acceptable level. I believe that TCA staff<br />
and its members should continue to ring that bell so that our representatives continue to be faced with the fact that<br />
our infrastructure problems are not going to cure themselves.<br />
22 Truckload Authority | www.Truckload.org TCA 2019
TCA 2019 www.Truckload.org | Truckload Authority 23
Sponsored by Mcleod software<br />
McLeodSoftware.com | 877.362.5363<br />
By all accounts, the transition to electronic<br />
onboard recorders has gone extremely well.<br />
But now we are nearing another deadline that<br />
was part of the electronic logging device (ELD)<br />
mandate, whereby carriers operating with<br />
automatic onboard recorders must convert to<br />
ELDs by December 16 of this year. Based on your<br />
experience, what would you say to carrier members<br />
who are still using AOBRDs and have yet to begin<br />
the conversion process?<br />
If members have not yet begun the transition from<br />
AOBRD technology to ELDs, then they may already be<br />
behind the eight ball when making the switch. Reports<br />
from industry have ranged the entire gamut, with some<br />
saying the change had been easy and for others, not so<br />
much. My advice would be to start this practice as soon<br />
as you can in order to avoid some of the pitfalls that<br />
have already happened and find an ELD solution that<br />
best fits the makeup of your fleet. The very last thing<br />
any fleet needs are problems with implementation two<br />
days before the grandfather clause expires.<br />
Coming up with a plan is one thing. Funding a plan is<br />
another. Democratic Rep. Earl Blumenauer of Oregon<br />
has introduced the Rebuild America Act of 2019,<br />
which would incrementally increase the federal<br />
gasoline and diesel taxes to invest in America’s<br />
infrastructure. On the other side of the fence, the<br />
Trump administration has reportedly been assuring<br />
Republicans that the White House does not favor<br />
an increase in the gas and diesel tax. The Truckload<br />
Carriers Association has long favored a fuel tax<br />
increase as the best way to bolster the Highway<br />
Trust Fund, but if the two sides can’t agree on an<br />
increase, what then?<br />
Great question, and one that has created the largest<br />
problem. Many have perceived a fuel tax increase as<br />
a four-letter word, while others have said it represents<br />
the biggest bang for the buck. Clearly, the timeline has<br />
traversed well past the 2016 presidential election, which<br />
gives the industry concern that an infrastructure plan to<br />
create a fully sustainable Highway Trust Fund has fallen<br />
by the wayside. Over half of the U.S. states have increased<br />
their fuel tax to raise funds to pay for road projects,<br />
yet we cannot get the ball rolling on a campaign issue<br />
that was front and center during the last presidential<br />
election.<br />
Recently, the Federal Motor Carrier Safety<br />
Administration (FMCSA) issued a request for<br />
comments on a potential pilot program that would<br />
allow drivers ages 18-20 to operate commercial<br />
motor vehicles (CMVs) in interstate commerce. TCA,<br />
by the way, petitioned for such a pilot program back<br />
in 2000, but the petition was denied. Of course, TCA<br />
supports the current proposal. If the pilot program<br />
is conducted and FMcsA changes the rule to allow<br />
18- to 20-year-old CDL holders to drive interstate<br />
commerce, what would be the biggest benefit to<br />
the trucking industry?<br />
Eighteen- to 20-year-old CDL holders represent a demographic<br />
that has largely gone untapped in the trucking<br />
market when it comes to potential new drivers. We<br />
recognize that other industries take advantage of this<br />
demographic to allow for them to develop a long career<br />
in that particular profession. It is also fair to note<br />
that TCA is always a safety-first organization and that<br />
very little public data exists which can demonstrate the<br />
safety performance of this younger generation. That being<br />
said, the pilot program, if the agency proceeds with<br />
it, should be able to generate significant data regarding<br />
the safety performance of this group that can determine<br />
whether or not this demographic is a viable one moving<br />
forward. Our industry must continue to improve upon<br />
the outlook of this profession and ensure those who enter<br />
the industry view it as a long-term proposition with<br />
reason to stay in it.<br />
24 Truckload Authority | www.Truckload.org TCA 2019
The road to<br />
protecting<br />
The FMCSA and the National Highway Traffic Safety<br />
Administration (NHTSA) have issued an Advance Notice<br />
of Proposed Rulemaking on the removal of unnecessary<br />
regulatory barriers to the safe introduction of<br />
automated driving systems vehicles in the United<br />
States. FMcsA and NHTSA are seeking comments at this<br />
stage to ensure that all potential approaches are fully<br />
considered as the agencies move forward with these<br />
regulatory actions. Additionally, Daimler Trucks has<br />
established its own Autonomous Technology Group as<br />
a global organization for automated driving, bringing<br />
together its worldwide expertise and activities.<br />
Everyone knows automated trucks will become a<br />
reality, the only question is when? Where does TCA<br />
stand on the issue of automated trucks and how<br />
should its members be preparing for this eventuality?<br />
your fleet<br />
The “when” is the most important part of this question. Autonomous<br />
vehicle technology is an issue that does need to be<br />
planned for. In accordance with that, we need to focus on the<br />
development of “driver assist” technology over “driver replace”<br />
technology. Ninety-two percent of all vehicle crashes are the<br />
fault of human interaction, and driver assist technology will aid<br />
in reducing that number. However, federal policy, which had<br />
only previously addressed automobiles and not trucks, needed<br />
to be changed so that the testing of advanced technology could<br />
move forward while the industry continues to examine the issues<br />
that we face on this forward-thinking technology. Questions<br />
including cybersecurity, liability and even infrastructure<br />
still remain at the top of an already long list of issues and our<br />
industry must continue to iron them out well before the idea of<br />
highly autonomous vehicles becomes mainstream.<br />
Any day now, possibly by the time readers see this, FMcsA<br />
will issue its Notice of Proposed Rulemaking (NPRM)<br />
on changes to Hours of Service. In your Chat With the<br />
Chairman in the previous issue, you listed sleeper berth<br />
flexibility and detention time/productivity as two<br />
key regulatory issues. Should the NPRM not adequately<br />
address these two issues, what can TCA members do to<br />
ensure they are appropriately addressed in the final<br />
rule?<br />
First and foremost, TCA members must comment on the<br />
proposed rule. Tell your story. Make no mistake about it, our<br />
government affairs staff has hammered home the ideas of<br />
flexibility and detention time, yet it is truly important that<br />
FMCSA hears from those who deal with these problems on a<br />
daily basis. Decisions are made by those who show up, and<br />
filing comments is a lot like voting in an election — always<br />
take advantage of opportunities that are presented to you and<br />
provide real-life data to an issue that has plagued our industry<br />
for years.<br />
www.Truckload.org | Truckload Authority 25<br />
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J. J. KELLER’S ELD INSIGHTS<br />
AOBRDs vs. ELDs:<br />
5 Key Differences<br />
Updating to an ELD mandate-compliant device by the December 16, 2019<br />
deadline may require a mere software conversion for most AOBRDs, but<br />
don’t count on it being this simple. Your drivers will need to understand the<br />
significant differences between AOBRDs and ELDs, making training<br />
imperative. Here are 5 critical requirements your drivers will need to be aware<br />
of as you prepare for the transition:<br />
1. In-Vehicle Documentation<br />
Before allowing drivers to log into an ELD, the carrier must swap out<br />
AOBRD documentation for ELD documentation, including:<br />
• The ELD user manual,<br />
• Instructions for how to transfer data,<br />
• Instructions for handling ELD malfunctions, and<br />
• Enough blank paper logs to last at least eight days<br />
2. Unassigned Driving Events & Automatically Recorded Drive Time<br />
When a driver logs in, they must accept or deny any unassigned driving<br />
time on the ELD. If the driver has unassigned driving events at the time<br />
the officer is reviewing the ELD data, the logs are considered not<br />
accurate, and can result in a citation for falsifying logs.<br />
Additionally, ELDs switch to driving status when the vehicle reaches five<br />
miles per hour, unless the driver has selected one of the special driving<br />
categories. Conversely, with an AOBRD, the driving threshold can be<br />
determined by the carrier and vendor, as long as it is reasonable.<br />
3. Form and Manner Requirements<br />
Drivers must manually input information when prompted by the ELD<br />
and required by the motor carrier or FMCSA, including notes, and a<br />
location description if needed. Drivers must also input or verify the<br />
power unit number, trailer number(s), and shipping document number if<br />
the information is not automatically loaded into the header information.<br />
4. Edits, Annotations, and Submissions<br />
Unlike AOBRDs, drivers must be provided full editing rights in an ELD<br />
system. To adjust to this change, they will need to be trained on:<br />
• What constitutes an acceptable and unacceptable edit,<br />
• How to make edits,<br />
• How to accept edits done by back-office personnel, and<br />
• Making an annotation when limit violations or something out of<br />
the ordinary occurs<br />
5. Data Transfers<br />
When using an ELD, the driver will be asked during a roadside inspection<br />
to transfer the log data directly to the officer via the FMCSA email or<br />
wireless web service, and must know whether<br />
his/her device uses the telematics or local<br />
transfer method.<br />
Not sure which type of electronic logging device you’re using?<br />
Find out by requesting your FREE ELD Compliance Check at<br />
JJKeller.com/Verify.<br />
Fleet Management System<br />
with ELogs<br />
In this issue of Truckload Authority, there is an in-depth<br />
article on the TCA Profitability Program and the successes<br />
its participants have enjoyed. Share with TCA members the<br />
importance to their company of availing themselves of this<br />
benefit.<br />
There is no other program like it. It’s the ONLY program in<br />
which a carrier can have their operational performance dissected<br />
in so many different ways. For example, carriers can review costs<br />
and revenue by mile or percentage of revenue or look at their<br />
gross margin. TPP also allows carriers to benchmark against their<br />
peers. That’s very powerful from an owner’s standpoint to then<br />
help hold your team accountable. Numbers and facts are the only<br />
way to manage a successful business.<br />
The Call on Washington, which this year will be held<br />
September 25, is one of TCA’s most important efforts to<br />
increase truckload’s visibility with our legislators and<br />
regulators in Washington. Even though it’s still almost<br />
three months away, it’s not too early to begin planning to<br />
attend, as TCA wants to increase the number of participants.<br />
Why should TCA members consider attending Call on<br />
Washington?<br />
There is a lot going on in trucking and D.C. these days and<br />
judging by the growth and positive effect our government affairs<br />
team has had in spreading our message, our members should be<br />
leading the charge. Issues like infrastructure, drug and alcohol<br />
testing, and even truck size and weight will continue to be spoken<br />
about and we must be sure that we are part of the conversation.<br />
Our first Call on Washington generated 32 attendees with over<br />
75 meetings. Last year, there were 50 attendees and over 275<br />
meetings. We, as an association, should expect positive growth<br />
from our membership that reflects the message we delivered in<br />
Las Vegas that our association should be viewed as “Truckload<br />
Strong” and continue to spread the message on Capitol Hill.<br />
Thank you, Mr. Chairman.<br />
26 Truckload Authority | www.Truckload.org TCA 2019
JULY/AUGUST | TCA 2019<br />
Member Mailroom<br />
How can I show my<br />
support for TCA’s<br />
government affairs<br />
department?<br />
It’s easy! There are two main ways<br />
to get involved: First, attend TCA’s Third Annual Call on<br />
Washington. Second, make a voluntary donation to the<br />
TCA’s government affairs fund.<br />
This year’s Call on Washington, set for September 25,<br />
will once again be held in conjunction with TCA’s Fall Business<br />
Meetings at the Capital Hilton in the nation’s capital.<br />
This event is one of TCA’s most important efforts to increase<br />
truckload’s visibility with our legislators and regulators.<br />
There is no better way to advance these efforts<br />
than to attend the 2019 event, which will provide members<br />
with the opportunity to meet face-to-face with policymakers<br />
and their staffs and tell truckload’s unique story.<br />
Building on the success of last year’s event, which<br />
boasted a combined 230 Hill visits, TCA members will<br />
have the opportunity to talk with their elected officials<br />
about industry-specific issues such as Hours of Service,<br />
sleeper berth flexibility, infrastructure and more.<br />
Attendees can expect the day to begin with an education<br />
session, where members will be briefed on the state<br />
of the 116th Congress and TCA’s policy positions. Next,<br />
armed with their industry know-how and passion, as well<br />
as new strategies gained from the briefing, participants<br />
will arrive on Capitol Hill prepared to promote the truckload<br />
industry and to ask the tough questions that need to<br />
be asked of legislators and their staffs.<br />
Thanks to the sponsorship of DriverFacts, attendees will<br />
receive a bag and an informative congressional booklet.<br />
TCA members received a government affairs invoice<br />
in late May or early June. And while TCA encourages all<br />
members to contribute, the decision is voluntary and will<br />
not affect your membership status or access to the benefits<br />
provided by the TCA government affairs department.<br />
It is TCA’s hope that members recognize and support<br />
the substantial benefits they receive by having TCA provide<br />
the sole truckload-focused lobbying presence for the<br />
industry.<br />
For more information about the Third Annual Call on<br />
Washington, to view a program, or to register, visit www.<br />
truckload.org.<br />
To view photos from TCA’s inaugural and Second Annual<br />
Call on Washington, visit truckload.org/Flickr.<br />
TCA 2019 www.Truckload.org | TRUCKLOAD AUTHORITY 27
JULY/AUGUST | TCA 2019<br />
Talking TCA<br />
Adrian Vigneault | Associate Director of Education<br />
BY klint lowry<br />
We have a tendency in today’s society to try to label<br />
people, to categorize them based on just one aspect of their life —<br />
a characteristic, an opinion, or a matter of taste — and assume we<br />
can extrapolate everything there is to know about them.<br />
It’s easy, it’s quick, and it’s always a mistake. No one is onedimensional.<br />
For some people the whole definition of a life welllived<br />
is to keep adding dimensions to who they are.<br />
Take Adrian Vigneault, for example. If he was presented as TCA’s<br />
new associate director of education, and it was explained he has a<br />
background in designing and implementing educational programs.<br />
Add that he’s an avid history buff and you might figure him to be<br />
the academic sort.<br />
But suppose the first thing you were told about Vigneault was<br />
that he started his working life as an auto technician, and that even<br />
today one of his favorite ways of relaxing is to work on cars at his<br />
home garage. You might conclude, “Oh, he’s a nuts-and-bolts kind<br />
of guy, the hands-on type.”<br />
Then again, if your introduction included the fact that Vigneault<br />
had been a defense contractor in Iraq and that he used to teach<br />
U.S. military personnel how to detect and avoid hidden explosives,<br />
that would skew your first impression in a different direction.<br />
All three of those impressions are accurate in their own narrow<br />
context, but even put together they don’t complete the picture. A<br />
person’s character is more than a sum of its parts, especially when<br />
the dominant moving part is the desire to constantly learn and<br />
grow and expand.<br />
Considering that Vigneault has both a mechanical streak and a<br />
penchant for history, it’s not surprising that he’s had a fascination<br />
with and has closely studied the life of Henry Ford. On one of<br />
Vigneault’s social media pages, there is a quote from Ford:<br />
“Anyone who stops learning is old, whether at 20 or 80. Anyone<br />
who keeps learning stays young. The greatest thing in life is to keep<br />
your mind young.”<br />
Vigneault may not have adopted the American industrialist’s<br />
words as the official mission statement for his life, but they sync up<br />
perfectly to the way Vigneault has conducted the business of living.<br />
“I consider myself a lifetime learner,” he said. “If it’s not reading<br />
books, it’s taking new classes. I like to be a person of many trades,<br />
of many skills, and try to be great at whatever I’m tasked to do.”<br />
Sometimes it’s just life that offers the learning opportunities,<br />
and the fact that Vigneault is always willing to expand his comfort<br />
zone has played a large part in how he came to be the right man<br />
at the right time as TCA has made the expansion of its educational<br />
offerings a priority.<br />
“My background is in instruction and learning design, so I was<br />
a good fit for their goals with TCA’s Truckload Academy and also<br />
helping to revamp their current online certificate program,” he said.<br />
His mechanical, automotive background helps, too, as it translates<br />
easily while he acclimates himself to the language and culture of<br />
trucking. There’s a lot to learn, a lot of terms and acronyms and<br />
abbreviations. It’s a challenge, but that’s part of what makes it<br />
enjoyable, and it’s a way to get acquainted with people in the<br />
industry.<br />
If there’s one thing all lifetime learners know, it’s not to be shy<br />
about asking questions.<br />
In one way, Vigneault has an advantage over many of his TCA<br />
colleagues when it comes to feeling at home. He was born and<br />
raised in Fairfax County, Virginia, just a modest commute to TCA’s<br />
office in Alexandria.<br />
That’s if you take the direct route.<br />
After graduating from Annandale High School in Fairfax County,<br />
Vigneault went to Universal Technical Institute in Orlando, Florida,<br />
where he studied automotive technology, then he went on to the<br />
Ford Accelerated Credential Training Program, where he earned<br />
specialized certification in Ford, Lincoln and Mercury vehicles.<br />
After graduating, Vigneault got himself a job as a technician<br />
at a Ford dealership back in Fairfax County, where he worked for<br />
about four years. About a year in, he started going to night school<br />
at a community college, earning an associate degree in 2010. By the<br />
end of 2010, Vigneault was working as an instructor for a military<br />
contractor in Iraq.<br />
Wait, it feels like we may have skipped a chapter.<br />
It didn’t happen quite that fast, Vigneault explained, but was a<br />
surprisingly simple turn of events that sent his life in an unexpected,<br />
dramatically different direction. It began one lazy afternoon on an<br />
island in the Potomac River.<br />
One of Vigneault’s friends had taken him out on his boat, and<br />
they decided to drop anchor at the island and hang out on the<br />
beach. After a while, a couple pulled up in another boat. They all<br />
introduced themselves and started casually chatting.<br />
“He asked what I did, and I told him I just finished my two-year<br />
degree and I’m working for Ford right now,” Vigneault said. “He<br />
said, ‘listen, a good friend of mine is looking for people with your<br />
background to teach overseas, and if you’re interested, here’s my<br />
card, let me know.’”<br />
Vigneault didn’t think much about it until a couple days later. He<br />
went home for lunch that day, “and it dawned on me that guy gave<br />
me his business card. It was still in my swimsuit. I called him up, and<br />
he said, ‘Yeah, shoot me your resumé.’”<br />
Vigneault didn’t even have a resumé at that stage of his young<br />
career, but the one he threw together had one essential element.<br />
The contractor was working with the Department of Defense. All<br />
the nontactical vehicles supplied to the Iraqi Ministry of Defense<br />
28 Truckload Authority | www.Truckload.org TCA 2019
TCA 2019 www.Truckload.org | Truckload Authority 29
Vigneault spends a leisurely moment with a member of<br />
his personal security detail, as well as his interpreter,<br />
Bashar, at Abu Ghraib in Iraq.<br />
Spring is in the air as Vigneault and his wife Melissa trek<br />
across Matanuska Glacier during a trip to Alaska in May.<br />
police were Fords, and they needed someone who was<br />
Ford-certified to go over and teach the Iraqis how to<br />
diagnose and perform maintenance on the vehicles.<br />
The economy was still staggering back to its feet<br />
following the recession, and Vigneault’s immediate<br />
career prospects felt stagnant. Besides, the offer<br />
appealed to his sense of adventure, and on a more<br />
personal level. Vigneault’s father had been in the Air<br />
Force. His uncles had been in the Navy and the Marine<br />
Corps, and his brother currently serves in the Army<br />
National Guard. This felt like a way to do his bit for his<br />
country.<br />
He accepted the offer, filled out a bunch of<br />
paperwork — then he didn’t hear anything for four<br />
months. Finally, he got a phone call — it was on a<br />
Wednesday, he recalled. By that Sunday he was on<br />
a plane for Camp Atterbury, in southern Indiana, for<br />
training, and from there he was off to Iraq.<br />
Vigneault spent about 10 months teaching the Iraqis.<br />
It was also a continuous learning experience for him. For<br />
starters, it set him on a whole new career path.<br />
“I got my feet wet in instructing, I got my feet wet in<br />
curriculum design,” Vigneault said.<br />
It was also a great opportunity to put his character<br />
and ingenuity to the test. He didn’t always have the<br />
equipment or the tools he needed to teach the skills he<br />
was there to teach. In that kind of situation, Vigneault<br />
said, you can throw your hands up and say, “It can’t be<br />
done,” or you commit yourself to finding a way to get<br />
it done. “Sometimes you have to find what you need or<br />
make what you need,” he said. “I don’t have any military<br />
background, but I’m very mechanically inclined.”<br />
Vigneault made enough of an impression that when<br />
the U.S. withdrawal from Iraq was complete, he was<br />
offered another contract traveling the country and<br />
abroad as an instructor and field representative with the<br />
Joint Improvised Explosive Device Defeat Organization.<br />
“I was training American soldiers in bomb detection<br />
using handheld equipment and truck-mounted<br />
equipment,” Vigneault said. Of course, that meant<br />
he had to learn about the equipment himself, and<br />
he became licensed to drive Mine Resistant Ambush<br />
Protected vehicles, or MRAPs.<br />
The job wasn’t nearly as dangerous as it sounds,<br />
Vigneault explained. They don’t use real explosives in<br />
training. But it was important work; I.E.D.s pose the<br />
greatest danger soldiers face overseas, he said. When<br />
he was in Iraq, nothing made him more nervous than the<br />
drive between Camp Victory and Abu Ghraib.<br />
In 2013, that contract ran out, and Vigneault came<br />
home. He worked as a substitute teacher at first,<br />
before getting a job as a technical skills instructor with<br />
the Washington Metropolitan Area Transit Authority,<br />
teaching high school students skills working with<br />
electrical and electronic systems.<br />
“It was an alternate program for students who were<br />
more interested in skilled trades as opposed to going<br />
the college route,” Vigneault said. During the summer,<br />
he also got the chance to pay forward one of the great<br />
influences from his own youth.<br />
“I grew up with the Boy Scouts, and I’ve always<br />
wanted to give back because Scouting always taught<br />
me hard work and being able to think on my feet<br />
and the leadership skills that I need and gave me the<br />
opportunity to learn and be prepared for life,” he said.<br />
“So I reached out to some old friends and one of their<br />
fathers was still active in scouting.”<br />
He became certified as a shotgun instructor, and<br />
he qualified scouts for their Shotgun Merit Badge. But<br />
it was a lot more than a summer of shooting things<br />
up with the kids, he said. “I got involved with the kids,<br />
teaching them skills, the buddy system, helping each<br />
other out.<br />
“In a school environment, a lot of kids or young<br />
adults might not listen to their instructors very well.<br />
I knew that from substitute teaching. But when you’re<br />
at a camp, as a staff member, they look at you like you<br />
Q & A With Adrian Vigneault<br />
DATE AND PLACE OF BIRTH: February 9, Fairfax, Virginia<br />
MY TRADEMARK EXPRESSION IS: If you ain’t first, you’re last.<br />
MOST HUMBLING EXPERIENCE: Working at Camp<br />
Olmsted<br />
PEOPLE SAY I REMIND THEM OF: Andy Dwyer, from<br />
“Parks and Rec”<br />
I HAVE A PHOBIA OF: Discussing my phobia<br />
MY GUILTY PLEASURE: Mowing the lawn<br />
THE PEOPLE I’D INVITE TO MY FANTASY DINNER<br />
PARTY: Teddy Roosevelt, Abe Lincoln, Alexander the Great,<br />
John McCain, Dave Grohl, Dakota Meyer, Keanu Reeves,<br />
George Washington, Bill Watterson, Deborah Sampson, Henry<br />
Ford, Clara Barton, Mark Wahlberg, Steve Irwin, Nikola Tesla,<br />
Ron Swanson, Tony Stark and Ryan Reynolds<br />
I WOULD NEVER WEAR: Skinny jeans<br />
A GOAL I HAVE YET TO ACHIEVE: Run a full marathon<br />
THE LAST BOOK I READ: For professional development, “15<br />
Invaluable Laws of Growth,” by John Maxwell. For fun, “Grunt:<br />
The Curious Science of Humans at War,” by Mary Roach<br />
LAST MOVIE I SAW: “Captain Marvel”<br />
MY FAVORITE SONG: “Jack Daniel’s” by Eric Church<br />
IF I’VE LEARNED ONE THING IN LIFE, IT WOULD BE:<br />
What you reap is what you sow<br />
THE THING ABOUT MY OFFICE IS: If you burn popcorn in<br />
the microwave, you may want to bring a gas mask to work for<br />
the next few days<br />
ONE WORD TO SUM ME UP: Motivated<br />
30 Truckload Authority | www.Truckload.org TCA 2019
are the end-all, be-all, everything that’s cool, and they<br />
want to be just like you. So that’s an opportunity to try<br />
to help young adults and teens to be future leaders.”<br />
As he was giving back, Vigneault was also moving<br />
forward. He had gone back to school and was earning<br />
a bachelor’s degree in military conflict analysis at<br />
George Mason University. Meanwhile, he found<br />
himself expanding his range of experience designing<br />
and implementing educational programs for a variety<br />
of industries: automotive, cancer cell research and<br />
Veterans Affairs benefits advisors.<br />
“My end goal was to have full-time, noncontract<br />
employment, just to give myself a little stability,”<br />
Vigneault said. His priorities had changed in that way.<br />
About a year ago, Vigneault embarked on his greatest<br />
adventure, one in which the learning curve is neverending.<br />
He got married. He met Melissa while he was<br />
finishing up at George Mason. And as with everything<br />
else, he wants to do marriage right. “Things in my life<br />
have changed as far as work/life balance,” he said.<br />
“You can’t spend all your time on the job and expect<br />
your family life to just take care of itself.”<br />
It was cool back when he traveled 100% of the<br />
time, teaching I.E.D. defense. Now when he travels, he<br />
wants it to be with Melissa. In fact, they just got back<br />
from a trip to Alaska. It was great, Vigneault said. No<br />
packaged tours for them, they set their own agenda,<br />
hiking glaciers, going to Denali. They even saw some<br />
grizzly bears.<br />
It’s an exciting time. At work, he’s figuring out<br />
how to apply his educational skills to a new industry.<br />
“Especially with the development of Truckload<br />
Academy, it all has to do with adult learning theory<br />
and style and knowing how people learn,” Vigneault<br />
said. At the same time, he thinks it helps that he can<br />
relate to students as someone new coming into the<br />
business, “being able to start them down the right<br />
path and explaining things step by step in a logical<br />
manner instead of just being kicked into the deep end<br />
and hoping they retain some knowledge without being<br />
overwhelmed.”<br />
At the same time, he’s still adjusting to being<br />
a family man, to coming home, having dinner and<br />
spending time with Melissa. And he can still get back to<br />
his roots whenever he wants.<br />
“Mechanics is always going to be a hobby of mine. I<br />
enjoy working with my hands and being on my feet and<br />
building things, fixing things,” he said. I have a garage<br />
and cars I like to work on about every other day.”<br />
He has a group of old friends, technician buddies,<br />
he said, with whom he shares his pastime and engages<br />
in a little friendly competition. He appreciates the<br />
challenge. It’s a great way to unwind and let inspiration<br />
come to him.<br />
“I can’t tell you how many times I’ve been working<br />
under a hood or under a car and just thinking and it<br />
suddenly he has an epiphany about something totally<br />
unrelated, something he’s been studying, an issue at<br />
work,” he said. “I think I’ve solved or understood or<br />
found myself coming up with many solutions while<br />
working in the garage.”<br />
When all the pieces to fit together, work together,<br />
there’s no better feeling.<br />
As a contracted instructor to the military in improvised<br />
explosive detection, Vigneault was trained to drive Mine<br />
Resistant Ambush Protected vehicles, or MRAPs.<br />
The transition to family man wouldn’t be complete<br />
without Vigneault’s dog, Nitro.<br />
Knowledge is Power<br />
Not All Trucking Companies Are Alike<br />
Trucking is all we do. When you choose Great West to insure your trucking business, you are<br />
getting over 60 years of experience in the trucking industry.<br />
Our agents work with you. Not every insurance agent can represent Great West. With a keen<br />
focus on the trucking industry, our agents are knowledgeable, dependable, and responsive. They<br />
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Do one thing, and do it right. Our agents can guide you through the process and customize a<br />
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Great West Casualty Company – No matter where the road takes you, you will discover that at<br />
Great West, The Difference is Service ® .<br />
800.228.8602<br />
gwccnet.com<br />
TCA 2019 www.Truckload.org | Truckload Authority 31
Talking the<br />
Talk …<br />
FMCSA’s Martinez, TCA’s Heller extol the value of communication to<br />
get things done for the trucking industry<br />
By Klint Lowry<br />
Truckload Carriers Association Vice President<br />
of Government Affairs David Heller (left) listens<br />
as Federal Motor Carrier Safety Administration<br />
Administrator Raymond Martinez responds to a<br />
question from SiriusXM Radio host Mark Willis during<br />
TCA’s inaugural “FMCSA Fireside Chat” at TCA’s 38th<br />
Annual Safety and Security Division Meeting.<br />
On June 2, the first day of the Truckload<br />
Carriers Association’s 38th Annual Safety & Security<br />
Division Meeting, attendees arrived at the Guest<br />
Theater inside the Guest House at Graceland in<br />
Memphis, Tennessee, with an almost playful sense of<br />
anticipation.<br />
Federal Motor Carrier Safety Administration<br />
Administrator Raymond Martinez was scheduled to<br />
be at the opening day’s general session for what had<br />
been billed a “fireside chat.” In the hours leading up to<br />
the session, speculation — most of it tongue-in-cheek<br />
— was running rampant. A fireside chat, eh? Had they<br />
figured out a way to rig up an actual working fireplace<br />
onstage?<br />
32 TRUCKLOAD AUTHORITY | www.Truckload.org TCA 2019
When they entered,<br />
they saw there were no<br />
flames dancing in a hearth<br />
onstage, no portable fire pit, not even<br />
a Smokey Joe. There was nothing cozier<br />
than an unadorned pair of tables set end to end<br />
at the foot of the stage.<br />
So, the anticipation shifted to what Martinez<br />
was there to talk about. TCA’s Vice President of<br />
Government Affairs David Heller was to be there<br />
with him. This implied there’d be deep diving into<br />
one regulatory issue or another. The target date for<br />
FMCSA’s highly-anticipated unveiling of a Notice of<br />
Proposed Rulemaking (NPRM), the next step in a<br />
process that could lead to some big changes to the<br />
Hours of Service regulations, was less than a week<br />
away. Might they be in for a sneak preview, or at least<br />
a few veiled hints of the proposed changes?<br />
That was wishful thinking. But there were plenty of<br />
other hot topics they might address: the impending<br />
pilot program for 18-year-old drivers with certain<br />
military experience to drive interstate; the Drug and<br />
Alcohol Clearinghouse, due early next year; the<br />
mandatory switch from automatic on-board recording<br />
devices (AOBRDs) to electronic logging devices<br />
(ELDs) later this year; the perennial parking problem;<br />
and our eternal infrastructure woes — there’s always<br />
something to talk about.<br />
It was an informal but purposeful presentation, in<br />
the tradition of the original fireside chatter, Franklin<br />
Roosevelt. In the space of an hour they managed to<br />
touch on all those topics, and a few others. But the<br />
central theme of the discussion was discussion itself<br />
and the importance of communication among all<br />
trucking industry stakeholders for positive change to<br />
happen.<br />
The chat’s moderator, SiriusXM Radio Host Mark<br />
Willis, handled the duty expertly, tossing out a wellshaped<br />
question then sitting back and letting Martinez<br />
and Heller run with it.<br />
The starting point of the discussion was FMCSA’s<br />
efforts since Martinez became administrator about<br />
a year and a half ago to improve relationships with<br />
trucking’s various organizations, TCA in particular.<br />
Martinez explained open communication is vital for his<br />
organization to fulfill its function and for the industry to<br />
get the government cooperation and support it wants<br />
and needs.<br />
“This has got to be a two-way conversation,”<br />
Martinez said, and the format of this discussion was<br />
representative of that. “In the past, maybe we’ve had<br />
FMCSA administrators come and give a speech, wave,<br />
then leave.”<br />
Martinez explained that in his opinion, that sort<br />
of star-turn “interaction” isn’t particularly useful. The<br />
importance of attending events like this is not what<br />
he says but what he hears, because the potential is<br />
there to get a measure on where a huge portion of the<br />
trucking industry stands on the issues under FMCSA’s<br />
purview.<br />
“I’m a firm believer in associations,” he said. “Not just<br />
for its members, but it helps in directing communication<br />
with the agency. I need to deal with the associations<br />
to clarify the issues you’re dealing with. There’s a lot<br />
of challenges out there. It’s a very diverse industry. In<br />
order for us to do our job better, we have to have that<br />
open line of communication. I really believe we’re in<br />
the same boat. It’s what you want, it’s what we want.”<br />
Heller, TCA’s point man in governmental interactions,<br />
picked up on that point, adding that that when that<br />
communication is solid, the industry and the agency<br />
can act as partners working toward a common goal —<br />
sensible, workable, productive regulations.<br />
“It provides the industry, and truckload specifically,<br />
an opportunity to tell our story,” Heller said.<br />
Since Martinez has stepped into the administrator’s<br />
role, Heller added, FMCSA has encouraged<br />
discussion, not just with TCA but with the entire<br />
industry. “It’s important you know what to expect,”<br />
Heller said. “We as an industry should expect nothing<br />
less than sensible rules from the agency. They’ve been<br />
very open, they’ve been very forward. They’ve been<br />
very direct with us. I don’t think there’s ever been an<br />
administration that’s been more open and willing and<br />
honest.”<br />
Judging from the applause that line received, much<br />
of TCA’s membership in attendance shares that<br />
assessment.<br />
Having a strong relationship with FMCSA comes at<br />
an opportune time for TCA, as the organization has<br />
made it a priority in the last few years to hone its<br />
political voice, most notably with its annual Call<br />
on Washington, as well as more consistent<br />
interaction with lawmakers.<br />
Trucking has always had a heck<br />
of a calling card, Heller said. It’s<br />
an industry that handles 78%<br />
of the goods sold in this<br />
country. When lawmakers<br />
hear statistics like that,<br />
“They know you are the<br />
big dog in the room,”<br />
Heller said. You have their<br />
attention. But the real trick<br />
is making good use of it.<br />
The power of the message<br />
they can deliver to those<br />
lawmakers is derived<br />
from the data and<br />
the fervor its<br />
TCA 2019 www.Truckload.org | TRUCKLOAD AUTHORITY 33
members contribute when they visit Capitol Hill.<br />
Martinez acknowledged he was aware coming in that<br />
there are some in trucking who perceive FMCSA in<br />
almost adversarial terms. He has been markedly visible<br />
and available to the trucking public since assuming the<br />
administrator’s post. He said he learned to appreciate<br />
the value of keeping open lines of communication<br />
while he was a state motor vehicle commissioner, first<br />
in New York and then in New Jersey.<br />
“That is my inclination,” Martinez said. It’s how<br />
he got things done, and it was what he envisioned<br />
when he threw his hat into the ring for the FMCSA<br />
post. Fortunately, or maybe it was part of the reason<br />
he got the job, it is a viewpoint shared by his boss,<br />
Secretary of Transportation Elaine Chao. In fact, he<br />
said, it’s something she insists on from all branches of<br />
the DOT, “that we need to engage the industry to get<br />
the best ideas that are out there from the people that<br />
really know what’s going on.”<br />
Breaching the wall some people in trucking have<br />
built about FMCSA needed to be a two-way process,<br />
and Martinez knew he had to be the one to lower the<br />
drawbridge. He recalled less than a month after he<br />
became administrator, he attended his first listening<br />
session at an industry event, “and boy, did I get beat<br />
up.”<br />
The first phase of the ELD mandate was about to go<br />
into full effect after a brief grace period, and that had<br />
already ratcheted up the industrywide conversation<br />
about the need for HOS reform. The crowd gave<br />
it to him with both barrels. Now, he can laugh<br />
when he remembers thinking, “What could I<br />
have possibly done in three weeks” to have<br />
deserved this?<br />
He knew it wasn’t him. “What I<br />
heard was a lot of frustration,<br />
even to the point that they<br />
couldn’t even articulate what<br />
they were so frustrated about,”<br />
Martinez said. “I felt that right<br />
away, the drivers were like, ‘you<br />
don’t know what we do.’<br />
“That’s not healthy for the<br />
industry, and it’s not healthy for<br />
us as a regulator, because it<br />
undermines our mission.”<br />
FMCSA wound up doing five listening sessions<br />
concerning HOS. Part of that was to collect comments,<br />
but it was also to send a message, that the agency<br />
wants input from everyone, not just the guys in the<br />
front office.<br />
“We got to make them feel that, yeah, we’re here,<br />
we’re listening, and it doesn’t all have to be roses<br />
and sunshine,” Martinez said. “Tell us what’s wrong,<br />
because that’s the only way it’s going to get fixed.”<br />
He added that he knew full well what a diverse<br />
industry trucking is, but he never fully appreciated the<br />
extent of that diversity and all the unique challenges<br />
each segment faces.<br />
He also thinks that by being consistently available,<br />
consistently asking for comments, the reception he’s<br />
received at industry events has improved, that there<br />
is an overall acceptance that the agency genuinely<br />
wants as much input as it can get, in every form and<br />
from all quarters.<br />
“I’m asking industry to engage, from the driver level,<br />
safety director level to the C suite folks — give us<br />
your ideas. If you have data, if you have technology<br />
that you think is proving out, tell us what it is so that’s<br />
something we can follow up with.”<br />
Martinez and Heller agreed HOS revision is a great<br />
example of what can be done when people in the<br />
industry are engaged. FMCSA asked for input, and<br />
thousands did so, online and in person.<br />
“We tried to boil it down, and that’s what we articulated<br />
in the Advance Notice of Proposed Rulemaking,”<br />
Martinez said. “And we’ll see what comes out of the<br />
process.”<br />
It may seem like a long, dragged-out process,<br />
Martinez added, and some of that is just built right into<br />
the process. “The reason is to ensure that all parties<br />
can be heard from, and that’s a good thing.”<br />
But, Heller added, here we are, possibly just days<br />
away from an NPRM. Usually, you could expect it to<br />
take two years or more to get this far on something<br />
like this. What’s this taken, eight months? “That is light<br />
speed for government,” Heller said.<br />
It’s important to consider why HOS reform has been<br />
able to move as quickly as it has, and why the push has<br />
happened, Heller said. People have been clamoring for<br />
more flexibility in the HOS rules for 15 years. With the<br />
34 TRUCKLOAD AUTHORITY | www.Truckload.org TCA 2019
proliferation of ELDs and other technologies in recent<br />
years, there are mountains of data being produced. It<br />
has made it much easier to make the case not only<br />
that reform is needed, but also regarding what that<br />
reform should look like.<br />
That data comes from the industry. Whatever<br />
eventually comes out of HOS reform, this shows what<br />
happens when enough interested parties demonstrate<br />
their concern. But, Heller pointed out, even if the<br />
process yields HOS reform that checks off every box<br />
on every driver’s wish list, it’s not a cure-all. Trucking<br />
will still have plenty of other issues that will need<br />
addressing.<br />
Martinez concurred. “It’s always a work in progress,”<br />
he said. “Once you’ve established that level of<br />
communication, let’s say we’ve moved past hours of<br />
service and full implementation of ELDs, there are<br />
going to be other issues. And talking with this crowd,<br />
I’m interested in hearing from people who have the<br />
data, who are trying out new technologies, what<br />
works, what doesn’t work, where your data is telling us<br />
we should go. Because you have information that we<br />
would like to be privy to.”<br />
Nevertheless, he’s encouraged that the walls are<br />
coming down, that more people in the industry are<br />
understanding that his job and theirs are ultimately<br />
pushing toward the same results.<br />
“The agency’s goal, as always, is safety,” Martinez<br />
said. “If in doing so, it also can be more efficient, that’s<br />
a huge win for everyone.”<br />
TCA 2019 www.Truckload.org | TRUCKLOAD AUTHORITY 35
Cultural<br />
Change<br />
DE-<br />
Efforts to reduce turnover must start at the top<br />
and permeate every layer of management<br />
By Cliff Abbott<br />
How do some carriers achieve such low turnerover rates? It starts with<br />
a plan, and that plan “starts with the acknowledgement that turnover is<br />
man-made and not inevitable,” says past TCA Chairman and current TCA<br />
Profitability Program (TPP) Retention Coach Ray Haight.<br />
“One of the things that always gets me is when I attend a conference<br />
where someone says, ‘this or that organization reports turnover at over 100%,<br />
but we’re only at 80% so we’re doing good.’ My advice is, don’t worry about<br />
the industry. What can you do?”<br />
Haight doesn’t just talk trucking, he’s experienced it on many levels. He<br />
knows the ins and outs of making a living on the road, having racked up more<br />
than a million accident-free miles as a company driver and owner-operator.<br />
In 1984, he started Southwestern Express in London, Ontario, growing the<br />
company to 50 tractors before entering a 1990 partnership with Guelph,<br />
Ontario-based MacKinnon Transport. The two companies were completely<br />
merged in 2000, with Haight serving as president and COO.<br />
Prior to the merger, he said, turnover at Southwestern was very low.<br />
Nondriver staffing was minimal and everyone knew everyone else. After the<br />
merger, the retention dynamic began to change. Turnover rose to 120% and<br />
Haight knew something had to be done, and that meant a culture change.<br />
That culture change resulted in turnover rates dropping by more than<br />
83%, in addition to other benefits.<br />
“The point is, we didn’t just reduce driver turnover from 120% to 20%<br />
in two years,” Haight said, “we doubled operating margins. We drastically<br />
improved our safety record. We impacted nearly every KPI that owners and<br />
CEOs track to determine the success of their organizations.”<br />
Those are the rewards Haight wants every carrier to realize.<br />
“Do the math,” he said. “At 120% turnover, we were hiring 300 drivers a<br />
year just to stay the same size. At a rate of about $6,000 per hire to recruit<br />
and train each new driver, that’s $1.8 million that didn’t need to be spent.”<br />
In his role as TPP retention coach, Haight teaches his retention program to<br />
carriers all over North America, and he commands attention.<br />
“It bothers me when companies delegate retention to a ‘retention coach’ or<br />
‘retention manager,’” he said. “Solving the turnover problem requires a culture<br />
change. That starts at the top and permeates every layer of management in<br />
the organization.”<br />
The people at the top, however, often aren’t the ones in attendance at<br />
the retention programs he presents at TCA and at other events. “Who goes<br />
to these things?” he asks. “It’s recruiting and safety managers. The ‘C-level’<br />
people aren’t there.” That adds more steps to the solution, Haight said. “In<br />
addition to learning the material, they have to go back and convince C-level<br />
leaders to take the necessary steps.”<br />
When Haight makes the presentation directly to a carrier, he’s adamant<br />
about making sure the program will be supported from the top. “When I’m<br />
asked to help out at a company I don’t even do these programs unless I can<br />
talk to the owner or CEO,” he said. “Culture change isn’t possible without<br />
C-level buy-in.”<br />
A part of his reasoning comes down to trust, and he thinks some carriers<br />
overestimate the trust drivers have in their leadership. Trust is related to<br />
turnover, he said. “The higher your turnover rate, the less likely the team is to<br />
believe what you’re saying.”<br />
Haight’s retention program is based on a psychology theory first proposed<br />
in 1943 by Abraham Maslow in “Psychological Review” and more fully fleshed<br />
out in his 1954 book, “Motivation and Personality.” Maslow’s theory is that<br />
the needs of an individual start with basic physiological needs and progress<br />
through several stages, including safety, love/belonging, esteem and selfactualization.<br />
The “Maslow’s Hierarchy of Needs” diagram, a pyramid with the<br />
most basic needs at the base and more complex needs near the top, is a staple<br />
of many management classes.<br />
Haight relates each level of the pyramid to the driver hiring experience. He<br />
begins with a groundwork session, obtaining a commitment to change before<br />
teaching how turnover is accurately measured and guiding participants<br />
through a SWOT Analysis process. SWOT stands for Strengths, Weaknesses,<br />
Opportunities and Threats.<br />
In each of the next six sessions, he zeroes in on each level of Maslow’s<br />
hierarchy, discussing the carrier’s need for drivers and where they come<br />
from, improvements in standard operating procedures and just do its, hiring<br />
policies and performance management.<br />
He discusses how to address the social needs of employees, including<br />
establishment of a communication action team and a recruitment and<br />
retention action team. Haight points out that there are more options for<br />
communicating with drivers and their families than ever before, and points<br />
to social media as a great tool.<br />
“Carriers like Bison and Nussbaum have really figured out how to use<br />
social media,” he said. “They use video so much, they even have bloopers and<br />
outtakes from some of their videos that drivers find very entertaining.”<br />
Communication comes in many forms, however, and isn’t always as<br />
complicated as recording videos or handling social media platforms. “If your<br />
trucks, terminals and offices look like they aren’t well cared for, it gives the<br />
impression that your company is not well-run,” he said.<br />
Communication also involves sharing information that isn’t necessarily<br />
related to job tasks, such as industry news. Haight pointed out that any news<br />
worth sharing around the office is worth sharing with drivers, too.<br />
“It’s fairly arrogant that we get information on our desks that we study and<br />
share with other managers and never think to share with our drivers,” he said.<br />
36 TRUCKLOAD AUTHORITY | www.Truckload.org TCA 2019
TCA Profitability Program Retention Coach Ray Haight says unfortunately much of the time C-level people don’t attend his<br />
workshops on driver retention.<br />
In the section on esteem, Haight addresses recognition and celebration of<br />
accomplishments. He stresses the importance of sharing success stories. “If you<br />
have a good safety record, flaunt it,” he said. “That’s an incredible achievement<br />
and a great indicator of the teamwork that occurs at your company.”<br />
Expectations are incredibly important, too, according to Haight. “I’m huge<br />
on sharing of expectations so that drivers are clear on how they are being<br />
evaluated,” he said. “Coaching is more effective when the dispatcher can say,<br />
‘I expected this, and then this’ and go over where the breakdown occurred.”<br />
He cautions, however, that expectations are a two-way street. “Conversely,”<br />
he said, “we have to ask the driver, ‘what’s your expectation?’ If we fail to<br />
do that, it’s only a matter of time until the driver is disappointed in our<br />
treatment.”<br />
The pinnacle of Maslow’s pyramid is self-actualization. Every top-level<br />
manager knows what success looks like at the carrier, expressed in terms<br />
of operating ratio, safety record and other key performance measurements.<br />
What most don’t know, according to Haight, is how the driver defines success.<br />
“We need to know, ‘what does success look like to you?’” he explained. “That’s<br />
more than just getting the job done.”<br />
Haight loves the “full-ride” scholarship program offered by U.S. Xpress to<br />
its drivers. Under the program, drivers and their family members have an<br />
opportunity to earn a degree at no cost from Ashford University, an accredited<br />
school the carrier has partnered with. It’s the best of both worlds, as drivers<br />
pursue their own success while helping the carrier to achieve its own.<br />
That’s just one example, Haight said. “What if the driver’s idea of success<br />
is to buy a house?” he asked. “Could some company set up an escrow account<br />
to help the driver accumulate the down payment? Could they arrange for<br />
favorable interest rates for the purchase through the carrier’s financial<br />
vendors?”<br />
Another area of driver success, and one in which many carriers already<br />
participate, is a lease-purchase program. Haight thinks those programs<br />
should provide more than an opportunity to buy a truck. “Many carriers have<br />
lease-purchase programs, but how many help the driver start and run the<br />
business?”<br />
Even voluntary skills-enhancement or safety training can be seen as a<br />
benefit by some drivers. “Drivers want to learn,” Haight said. “At MacKinnon,<br />
we had 20% of our drivers voluntarily taking safety courses at computer<br />
terminals in our offices. While their truck was in the shop, they took safety<br />
courses. They can do that on their phones now.”<br />
Haight’s program culminates with a session he calls the “Circle of Success,”<br />
in which he stresses building a sense of community.<br />
In discussing the end of the program, he returned to the beginning. He<br />
discussed the awards handed out to carriers at events like the TCA Annual<br />
Convention. “When you see representatives from carriers up onstage getting<br />
awards for ‘Best Fleets to Drive For’ or ‘Fleet Safety Awards’ you should ask,<br />
‘what do they have that you don’t.’ Why aren’t you up there?”<br />
It’s not an easy hill to climb, but retention coach Ray Haight stands ready<br />
to assist those that want to get there.<br />
He posts a regular blog entry on the TCA TPP Retention Project page at<br />
tcaingauge.com/retention and is available to present the TCA Retention<br />
Action Plan, designed to produce a minimum reduction in turnover of 33%<br />
to 50% upon completion. On the same page, visitors will find a survey that<br />
will produce a “TCA Retention Score” as well as a video providing more<br />
information on the program.<br />
TCA 2019 www.Truckload.org | TRUCKLOAD AUTHORITY 37
Those Who Deliver<br />
with Veriha Trucking, Inc.<br />
By Lyndon Finney<br />
PROFILE<br />
Veriha Trucking, Inc. operates 250 power units.<br />
Karen Smerchek has headed<br />
up Veriha Trucking since<br />
2005.<br />
Take a minute and Google “characteristics of a baby boomer” and here’s what you’ll<br />
find:<br />
• Strong work ethic<br />
• Self-assured<br />
• Competitive<br />
• Goal-centric<br />
• Team oriented<br />
• Disciplined<br />
• John Veriha<br />
John Veriha, you ask? Google didn’t say anything about John Veriha.<br />
Maybe not, but if you met the 74-year-old founder of Veriha Trucking, Inc., it’s likely<br />
you’d understand why he certainly should be on the list.<br />
“He grew up on a family farm, the oldest of three brothers,” said his daughter Karen<br />
Smerchek, who now owns and operates as president of the company. “He was truly<br />
looking at farming, but he decided to go out on his own and let his two brothers do the<br />
farming. The work ethic of others wasn’t the same as his, so he decided he didn’t want<br />
to work for anyone other than himself.”<br />
So, in 1978, Veriha put down his hoe and rake, bought a truck, and started his own<br />
business with a team of one, ready to compete against all comers.<br />
By 1994, Veriha was operating 60 trucks; now it has 250.<br />
Today, the Marinette, Wisconsin-based company provides transportation solutions<br />
in 48 states and parts of Canada.<br />
Its fleet operates out of three terminal locations to serve a variety of customers and<br />
industries, hauling everything from paper products, groceries and produce, pet food and<br />
auto parts.<br />
Want to talk about teamwork?<br />
All four of John Veriha’s children are part of the company.<br />
“I think my dad really wanted to see his kids in the business,” Smerchek said. “We<br />
each were asked the same question of ‘do you have an interest in being part of the<br />
family business?’”<br />
Two of the four said yes immediately; the other two, later on.<br />
“Dad takes a ton of pride in having all four of his kids working for this business now,”<br />
Smerchek said. “For me, I think it’s cool to have my siblings to lean on. Yet, when we’re<br />
at work, it’s business. We say we’re a ‘family’ business, yet we’re really focused on the<br />
business when we’re at work.”<br />
Jeff is the oldest of the four children and he initially didn’t have an interest in the<br />
family business, branching out on his own in screen printing and later the construction<br />
business. When he came back to Veriha, he was a load planner and is now doing<br />
building and grounds.<br />
Joe, the next oldest, operated the business from 1997-2005 until Smerchek took<br />
over after completing her education. Joe now is part of the company on the equipment<br />
and maintenance side.<br />
Kim started her career as a nurse, working her way through various leadership roles<br />
at the local hospital. One year ago Kim decided to join the family business and is now<br />
director of recruiting.<br />
Today, John Veriha spends his winters in Florida, but when he is home in Wisconsin,<br />
you can still find him around the office.<br />
“Drivers and office team members are impressed when they get to meet the founder<br />
of the company,” Smerchek said. “My personality is serious and driven. My dad lightens<br />
the mood and usually is cracking jokes when he comes in the office.”<br />
Veriha Trucking operates around five core values, which could also be defined as<br />
goals — Safety, Personal Development, People First, Go the Extra Mile and Sustainable<br />
Results.<br />
The values encourage everyone associated with Veriha Trucking to be better every<br />
day, to pursue excellence, be driver-centric, to not allow titles to define them, to give<br />
back, to care and to make responsible decisions — just to name a few.<br />
38 TRUCKLOAD AUTHORITY | www.Truckload.org TCA 2019
Veriha’s drivers and employees are known as Veriha Industry<br />
Professionals, or VIPs. The name “VIPs” gives everyone a way<br />
to connect with one another and a way for the company to show<br />
respect to employees.<br />
Its drivers and employees are known as Veriha Industry<br />
Professionals, or VIPs.<br />
The name “VIPs” gives everyone a way to connect with<br />
one another and a way for the company to show respect to<br />
employees.<br />
“Our employees are the bread and butter of our organization,<br />
so they are truly the ones that I need to take care of,” Smerchek<br />
said. “We thought it was a unique way to use the VIP acronym.”<br />
The core service of Veriha is its truckload division.<br />
“Over the last 10 years I would say we are truly focused on<br />
creating dense markets throughout the Midwest and Northeast,<br />
which has really allowed us to provide solid home time,”<br />
Smerchek said. “For our drivers that means we’re committed to<br />
48 consecutive hours of home time [between trips]. Creating<br />
this dense network has allowed us to have better service to our<br />
customers as well as to our drivers.”<br />
The average length of haul for truckload drivers is 370 miles,<br />
but there are routes available with over a 1,000-mile length of<br />
haul for drivers who choose that work.<br />
There is also a group of home-daily drivers who carry two to<br />
four loads a day.<br />
Has this flexibility been an asset to Veriha Trucking when it<br />
comes to driver recruiting and retention?<br />
“I feel that over the last few years a lot of carriers have shifted<br />
into some home-daily roles, whereas we’ve been doing it for<br />
several years,” Smerchek said. “There’s more competition in that<br />
area than there was when we were [first] doing it.”<br />
Unfortunately, she added, there are occasions where Veriha<br />
Trucking loses drivers who want to be home daily in a region<br />
where the company is not able to offer that option.<br />
However, she also feels that the truck driving role has gained<br />
some ground, where being away from the house isn’t always<br />
that negative.<br />
“I just sort of look at the trucking industry and the work that<br />
we’ve done, yet we still have work to do on how others see us,”<br />
she said. “If you work in a sales role, it’s not seen negatively that<br />
you’re away from the house for five nights a week, yet as a truck<br />
driver it’s seen negatively. We have had to ask ourselves, what<br />
are we doing to promote the true impact our drivers are making<br />
so they take pride in their work and being away from the house<br />
isn’t seen so negatively, because the more they can feel the<br />
impact that they make, the more they are likely to understand<br />
the need to be in that truck. We definitely have some that need<br />
the home-daily roles and don’t want to shift from it. Has it<br />
helped? Yes. Our retention in our home-daily fleet is better than<br />
our OTR fleet. We also set a pretty high bar for those who want to<br />
be in that fleet that there are certain parameters that you have<br />
to meet and revenue that you have to attain.”<br />
Veriha Trucking also has an “Entertainment Division” and a<br />
logistics group.<br />
The Entertainment Division, which transports the equipment<br />
of touring groups from venue to venue, started earlier this year.<br />
“I have a friend who is an entertainment tour manager.<br />
We’d chatted in the past and he asked if I would be interested in<br />
getting involved at some point. He made some introductions for<br />
me and we made the move.”<br />
The Entertainment Division started with 21 trucks and<br />
continues to grow.<br />
“There are several similarities to truckload, however there is<br />
so much to learn, as well,” Smerchek said. “We have had great<br />
success with drivers shifting to this division. Veriha is unique in<br />
the truckload space by offering 48 hours of home time versus<br />
the standard 34 reset. But the Entertainment Division is quite<br />
the opposite, with drivers staying out for months at a time.”<br />
Quadway Freight logistics became part of the Veriha family<br />
of companies in 1984. At one point it covered the overflow<br />
of freight that Veriha did not have capacity to cover. It now<br />
operates as a stand-alone entity with eight full-time employees.<br />
It is really no wonder Veriha Trucking is successful.<br />
At age 40, Smerchek is at the late end of the Generation Xers.<br />
They are independent, resourceful, and self-sufficient. They<br />
value freedom and responsibility in the workplace. Many in this<br />
generation display a casual disdain for authority and structured<br />
work hours. They dislike being micromanaged and embrace a<br />
hands-off management philosophy.<br />
Quite a complement to someone with a strong work ethic<br />
and who is self-assured, competitive, goal-centric, team<br />
oriented and disciplined.<br />
Veriha Trucking, Inc. offers its<br />
drivers a variety of route options.<br />
The average length of haul for<br />
truckload drivers is 370 miles,<br />
but there are routes available with<br />
over a 1,000-mile length of haul<br />
for drivers who choose that work.<br />
There is also a group of homedaily<br />
drivers who carry two to four<br />
loads a day.<br />
Founded: 1978<br />
TCA Member Since 1998<br />
President: Karen Smerchek<br />
VP of Operations: Leigh Olsen<br />
Director of Driver Recruitment:<br />
Kim Ducane<br />
250 Power Units<br />
All four of the Veriha siblings<br />
work at the company. From<br />
left, Karen, Joe, Kim and Jeff.<br />
TCA 2019 www.Truckload.org | TRUCKLOAD AUTHORITY 39
Memphis,<br />
The Truckload Carriers Association hosted its 38th Annual Safety &<br />
Security Division Meeting June 2-4 at the Guest House at Graceland<br />
in Memphis, Tennessee. The event has consistently brought truckload<br />
carrier safety professionals together to discuss problems, share ideas,<br />
and seek solutions to make their businesses and our roads safer. This<br />
year, nearly 200 attendees had the opportunity to hear from industry<br />
executives during the following panels: “Safety Vision – Industry<br />
Outlook: Beyond Safety,” “Safety Culture Change through the Years,”<br />
“Safety Perspectives – A Panel Discussion of Past and Present Winners”<br />
and “The Top 10 Things that will Put You in Court and How to Avoid<br />
Them.”<br />
New this year, FMCSA Administrator Ray Martinez joined TCA’s David<br />
Heller for an inaugural “FMCSA Fireside Chat,” moderated by SiriusXM<br />
Radio Host Mark Willis.<br />
The event also offered its highly popular “Safety in the Round” sessions,<br />
which gave attendees the opportunity to draw knowledge from the group<br />
to solve common safety management and human resource problems.<br />
Topics included workers’ compensation issues, employee/employer<br />
communication, improving driver-hiring procedures, among others.<br />
In addition to specialized educational sessions, attendees made<br />
the most of several networking opportunities and were able to learn<br />
about the latest products and services in the sold-out exhibit hall.<br />
Special thanks to our exhibitors: Omnitracs; Cura Emergency Services;<br />
EBE Technologies; DriverFacts; HireRight; Creative Concepts; Custard<br />
Insurance; TruckRight; Drivers Legal Plan; Add on Systems, Inc.; Driver<br />
iQ; Netradyne; Idelic; NATMI; Napa River Insurance / Hudson Insurance<br />
Group; J.J. Keller & Associates, Inc.; Incentive Management Group;<br />
CDL Legal; Corporate Medical Services; Luma Brighter Learning;<br />
Pulsar Informatics; Instructional Technologies Inc.; Lytx; FSSolutions;<br />
SmartDrive Systems; Frontier Adjusters; Psychemedics Corporation;<br />
SuperVision; DriverTech; and Bendix Commercial Vehicle Systems.<br />
To view additional photos from the event, visit www.truckload.org/<br />
Flickr. To see updates and photos from colleagues, search #TCASafety19<br />
on social media networks.<br />
“To have the opportunity<br />
to hear FMCSA Administrator<br />
Ray Martinez and David<br />
Heller of the TCA staff asked<br />
questions by Mark Willis was<br />
fantastic. Ray Martinez is very<br />
transparent and really listens<br />
to the people impacted by his<br />
decisions. The vendors did<br />
a fantastic job of explaining<br />
their wares ... throughout the<br />
event.”<br />
1 2<br />
Neil Voorhees<br />
Safety Director<br />
Southern Refrigerated Transport<br />
3<br />
4 5<br />
6 7 8<br />
40 TRUCKLOAD AUTHORITY | www.Truckload.org TCA 2019
9 10 11<br />
12<br />
13<br />
16<br />
“I am always so impressed<br />
with TCA’s Safety & Security<br />
Division Meeting. The TCA<br />
team has always been an<br />
incredible resource for us, and<br />
the work they put into this<br />
conference to make it relevant<br />
to issues safety professionals<br />
are dealing with. We walk away<br />
with answers to questions we<br />
didn’t even know we had yet.<br />
Thank you, TCA, for all you do<br />
to help ensure our fleets are<br />
safe, compliant, and on the<br />
cutting edge of technology!”<br />
14 15<br />
Emory A. Mills, CDS<br />
Director of Safety & Driver Administration<br />
FTC Transportation<br />
17 18<br />
8<br />
1. TCA’s Vice President of Government Affairs David Heller talks with<br />
FMCSA Administrator Ray Martinez during TCA’s inaugural “FMCSA<br />
Fireside Chat.” Special thanks to Hudson Insurance Group, who made<br />
the chat possible. Moderator SiriusXM Radio Host Mark Willis, right,<br />
listens in. 2. Halvor Lines Inc.’s Chief Risk Officer Adam Lang talks<br />
during a general session panel discussion. 3. TCA President John<br />
Lyboldt announces during Monday’s general session that FreightWaves<br />
has acquired StakUp Inc., TCA inGauge’s software platform as of June 1.<br />
Read full press release at truckload.org/newsroom. 4. Don Osterberg<br />
speaks during the “Safety Culture Change through the Years” portion<br />
at Monday’s general session. 5. Tennessee Trucking Association’s<br />
Director of Safety Jeremy Snapp welcomes attendees to the state<br />
of Tennessee Sunday afternoon. Snapp captured the attention of<br />
attendees by sharing top 10 facts about the Volunteer State. 6. TCA<br />
awards its 2019 TCA Safety Professional of the Year - Clare C. Casey<br />
Award to John Christner Trucking Inc.’s John Mallory, second from right.<br />
Pictured from left are TCA President John Lyboldt, Maverick USA’s Dean<br />
Newell, Bison Transport’s Garth Pitzel, Mallory and Melton Truck Lines<br />
Inc.’s Angie Buchanan. 7. Attendees participate in Safety in the Round<br />
workshops Monday afternoon. These highly popular sessions use<br />
group knowledge to solve common safety management and human<br />
resource problems. 8. Past and present TCA Safety Professional of the<br />
Year - Clare C. Casey Award recipients speak during a panel discussion.<br />
9. Congratulations to Bison Transport, the grand prize winner in the<br />
large carrier division of TCA’s 43rd Annual Fleet Safety Awards. Pictured<br />
from left are FMCSA Administrator Ray Martinez, Bison Transport’s<br />
Director of Safety and Driver Development Garth Pitzel, and contest<br />
sponsor Great West Casualty Company’s John Joines. 10. The Guest<br />
House at Graceland hosted the meeting. 11. Congratulations to Grand<br />
Island Express, the grand prize winner in the small carrier division of<br />
TCA’s 43rd Annual Fleet Safety Award winners. Pictured from left are<br />
FMCSA Administrator Ray Martinez, Grand Island Express Inc.’s Safety<br />
Director Lucas Mowery, and contest sponsor, Great West Casualty<br />
Company’s John Joines. 12. The exhibition scavenger hunt winner was<br />
chosen during Tuesday’s general session. Congratulations to Riverside<br />
Transport Inc.’s Orientation Manager/Safety and Compliance/HR<br />
Amber Whillock, who won a $100 Omaha Steak Package. 13. The 2019<br />
TCA Safety Professional of the Year-Clare C. Casey Award was presented<br />
to John Christner Trucking Inc.’s John Mallory. 14. Safety Council<br />
Chairman and G&P Trucking Inc.’s Ben Harman thanks attendees for<br />
attending the meeting. 15. National Carriers Inc.’s Director of Safety Jill<br />
Maschmeier has fun with attendees as she channels her inner fortuneteller<br />
skills during Tuesday’s “Ensuring Onboarding Success” workshop.<br />
16. The 43rd Annual Fleet Safety Award winners pose for a group<br />
photo with FMCSA Administrator Ray Martinez, second from the left,<br />
back row, and Great West Casualty Company’s Vice President of Safety<br />
John Joines, far left. 17. Challenger Motor Freight’s Dan Einwechter,<br />
center, shares insights during Sunday afternoon’s general session. He<br />
is joined by Big G Express Inc.’s Randy Vernon, and TCA Chairman and<br />
Earl L. Henderson Trucking Company’s Josh Kaburick, right. 18. Truckers<br />
Against Trafficking’s Training Specialist Louie Greek shared staggering<br />
trafficking statistics.<br />
TCA 2019 www.Truckload.org | TRUCKLOAD AUTHORITY 41
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Now accepting:<br />
John Christner Trucking’s<br />
John Mallory recipient of<br />
Clare C. Casey Award<br />
By Marli Hall<br />
John Mallory, recipient<br />
of the 2019 TCA Safety<br />
Professional of the<br />
Year — Clare C. Casey<br />
Award, serves on the<br />
American Trucking<br />
Associations’ Safety<br />
Management Council<br />
for driver recognition<br />
and accident review.<br />
The Truckload Carriers Association<br />
has named John Mallory, John Christner<br />
Trucking’s director of safety, as the 2019<br />
TCA Safety Professional of the Year — Clare<br />
C. Casey Award recipient. The award was<br />
presented during TCA’s 38th Annual Safety<br />
& Security Division Meeting in Memphis,<br />
Tennessee.<br />
John Christner Trucking is located in<br />
Sapulpa, Oklahoma.<br />
The award is bestowed upon a trucking<br />
industry professional whose actions and<br />
achievements have made a profound<br />
contribution to enhancing safety on North<br />
America’s highways.<br />
“John has an absolute passion for our<br />
industry, particularly making it safer,” said<br />
Shannon Crowley, John Christner Trucking’s<br />
vice president of risk management. “He<br />
spends much of his free time in pursuit of<br />
just that.”<br />
In addition to being employed by<br />
John Christner Trucking for 13 years in its<br />
safety department as well as being a thirdgeneration<br />
professional truck driver for more than two decades, Mallory has an<br />
extensive list of other accomplishments.<br />
“His tenacity is what got him in the door and that same tenacity is what led him<br />
to achieving his Certified Director of Safety designation and becoming our director of<br />
safety,” Crowley said.<br />
During his career, Mallory has served on the Oklahoma Safety Management<br />
Council for 12 years, is a member of the Oklahoma Trucking Association, and<br />
serves on the American Trucking Associations’ Safety Management Council for<br />
driver recognition and accident review.<br />
He is also a recipient of John Christner Trucking, Inc.’s Pete Osborne Lifetime<br />
Achievement Award in 2017; Oklahoma State Management Council’s Past Chairman<br />
Award; and Oklahoma Trucking Association’s 2012 Safety Professional of the Year.<br />
He serves as a judge, chairman, and as “The Duck” mascot at the Oklahoma Truck<br />
Driving Championships.<br />
“John is also active in other organizations such as Truckers Against Trafficking,” said<br />
his wife, Dianne Mallory, who nominated him for this award. “He is most loved by<br />
many for his role as ‘The Duck.’”<br />
He serves on the Tulsa Tech Truck Driving School advisory council, is a member,<br />
usher and greeter at Life Church in Owasso and Catoosa, Oklahoma, and is active in<br />
the Owasso Police Department K9 unit training canines and officers how to maneuver<br />
around and inside 18-wheelers. He also participates in the annual Sapulpa Truck Touch.<br />
On behalf of John Christner Trucking, Mallory has accepted numerous Fleet Safety<br />
Awards from TCA, several other industry associations, and both Walmart and Tyson<br />
Foods.<br />
“If there is someone more deserving of this recognition, I haven’t met them,”<br />
Crowley said.<br />
Nominees for TCA’s award must exemplify leadership and demonstrate the goals of<br />
protecting lives and property in the motor transportation industry while serving their<br />
company, industry, and the motoring public. The award is named after Clare Casey, a<br />
safety professional who actively served TCA from 1979 until 1989. He was devoted to<br />
ensuring that all truckload safety professionals build a strong safety network and was<br />
instrumental in forming the first Safety & Security Division meeting in 1982. The first<br />
Clare C. Casey Award was presented in 1990, one year after his death.<br />
For more information about the award, visit truckload.org.<br />
42 TRUCKLOAD AUTHORITY | www.Truckload.org
A QUICK LOOK AT IMPORTANT TCA NEWS<br />
SMALL<br />
A QUICK LOOK AT<br />
IMPORTANT TCA NEWS<br />
TALK<br />
Highway Angels<br />
Peter Lester, Sam Dyess, and Michael Morgan have been named<br />
Highway Angels by the Truckload Carriers Association in recognition<br />
of heroic action while on duty.<br />
Lester, who lives in Vero Beach, Florida, and is a professional truck<br />
driver for Carroll Fulmer Logistics Corp. of Groveland, Florida, is being<br />
recognized for saving a fellow truck driver’s life and thwarting fire at<br />
a facility.<br />
Dyess, who lives in Killeen, Texas, and is a professional truck<br />
driver for Melton Truck Lines of Tulsa, Oklahoma, is being recognized<br />
for assisting a couple whose vehicle was pushed into his truck on a<br />
mountain overpass during a blizzard.<br />
Morgan, who lives in San Angelo, Texas, and is also a professional<br />
truck driver for Melton Truck Lines of Tulsa, Oklahoma, is being recognized<br />
for his willingness to assist motorists after they lost control of<br />
their SUV on a slick road and veered off the highway.<br />
On December 8, 2018, Lester<br />
was making an early morning<br />
delivery at the Coca-Cola facility<br />
in Jacksonville, Florida. There<br />
were a few parking spots available<br />
on a residential street, so<br />
Lester pulled in to do some paperwork<br />
as he had arrived early<br />
to the delivery. There were two<br />
trucks parked there already, and<br />
there was just enough room for<br />
Lester to back in behind the second<br />
truck. Once he got settled,<br />
he noticed a light coming from<br />
the front of the first truck that<br />
seemed out of place. He realized<br />
PETER LESTER it was not a light, but a flame, and<br />
he then saw smoke coming out<br />
from under the front wheels of the truck.<br />
He pulled around and started to blow his horn in an effort to alert<br />
the driver, not knowing if someone was in the cab or not.<br />
“I pulled the airhorn to notify anyone in there and the truck in front<br />
of him, as well,” he said. “The flames then all broke out and more<br />
smoke came rushing out. I hit the horn again with one hand and<br />
called 911 with the other.”<br />
Lester pulled his truck up to the Coca-Cola entrance to alert the<br />
guard that there was a fire near the premises, which backs up to a<br />
wooded area. By that point the fire department was on its way, so<br />
Peter knew first responders would be able to take it from there. Although<br />
Lester never saw anyone get out of the trucks, he later found<br />
out there were people in both trucks, and saw the second truck pull<br />
out to safety.<br />
“I’ve been driving since 1984 and I’ve never seen anything blow<br />
up the way this did so quickly,”<br />
Lester said. It started out looking<br />
like headlights, and then<br />
mushroomed into flames. I<br />
don’t believe the security guard<br />
would have noticed, so I am glad<br />
I pulled in when I did.”<br />
On November 24, 2018, Dyess<br />
was just west of Cheyenne, Wyoming,<br />
going over the mountains<br />
on Interstate 80 with a load on<br />
his flatbed headed west to Washington.<br />
The day was overcast<br />
when he’d left Cheyenne, and a<br />
heavy snow had started to fall on<br />
his journey. The temperature was<br />
SAM DYESS<br />
in the low 20s.<br />
“It was really coming down and I couldn’t see the lines in the<br />
road,” Dyess said.<br />
He slowed to 30-40 mph. Three to four inches had already accumulated<br />
by the time he reached an overpass.<br />
There was another truck up ahead of him and a Jeep Wrangler was<br />
traveling between the two trucks. Suddenly, for no apparent reason,<br />
the truck in front of the Wrangler stopped in the middle of the interstate<br />
and the Wrangler stopped behind him. Dyess had plenty of follow<br />
distance and stopped 20-25 feet behind the Wrangler. There was<br />
another truck behind him. Dyess checked his mirrors and a moment<br />
later saw the first truck rolling backward. “We were on an incline. I<br />
don’t know if he missed a gear or was sliding,” he said.<br />
The Wrangler shifted into reverse but could only go so far before<br />
being struck by the first truck and pushed into Dyess’s truck. Dyess<br />
couldn’t roll back because of the truck behind him. The Wrangler’s<br />
spare tire was pushed into Dyess’s front bumper and the force blew<br />
out the back window of the Wrangler. “I was laying on the horn to<br />
get the other trucker’s attention,” Dyess said. “Then it moved forward<br />
and took off, never stopping to check on the Wrangler.” The Wrangler<br />
resumed driving, as did Dyess. He called the safety manager at Melton<br />
to report the incident, relaying the information he was able to get off<br />
the first truck. He followed the Wrangler to the first exit, where they<br />
both pulled to the side of the road. Dyess jumped out and went to<br />
check on the driver and passenger. “They said they were okay and<br />
had called the state troopers but were told it would be at least an hour<br />
before a trooper could arrive.” Dyess invited the driver and his wife to<br />
sit in his warm truck for nearly two hours while they waited. “We had<br />
a great conversation,” Dyess said.<br />
Dyess’s good deed that day didn’t go unnoticed. The couple he<br />
helped contacted Melton Chairman and CEO Bob Peterson with a letter<br />
describing the incident firsthand. The driver and his wife were traveling<br />
home after a holiday weekend spent with family and were grateful<br />
for Dyess’s help. “He offered us water and waited patiently with us.<br />
TCA 2019 www.Truckload.org | TRUCKLOAD AUTHORITY 43
TALK<br />
A QUICK LOOK AT IMPORTANT TCA NEWS<br />
SMALL<br />
A QUICK LOOK AT<br />
IMPORTANT TCA NEWS<br />
TALK<br />
We thanked him for his help and then he said something I won’t soon<br />
forget: ‘We are the knights of the highway and it’s our duty to make<br />
sure everyone is safe.’ He possesses an attitude and professionalism<br />
that should make you proud.”<br />
Dyess is humble about his role that day. “I was just doing the right<br />
thing; trying to take care of business and maintain integrity,” he said.<br />
“Being a professional driver, it’s about more than just getting from<br />
Point A to Point B. You also need to take care of everyone around you;<br />
that’s my job.”<br />
It was 8 a.m. February 12, and<br />
Morgan was on Highway 295 en<br />
route to Camden, New Jersey.<br />
He was trying to get ahead of<br />
a heavy storm. It was snowing<br />
and sleeting and the roads were<br />
starting to get bad. Because<br />
of the poor conditions, Morgan<br />
was going about 45 mph in the<br />
right lane. Suddenly, a Lexus SUV<br />
came around on his left and got<br />
just far enough in front of Morgan<br />
for him to see the vehicle’s<br />
license plate before the driver<br />
lost control on the slick road and<br />
spun out of control. Morgan had<br />
MICHAEL MORGAN<br />
just enough time to apply the<br />
brakes, slow the truck, and miss<br />
hitting the SUV by inches before it veered off the road and slammed<br />
into a tree.<br />
Another truck driver traveling behind Morgan saw what happened<br />
and radioed him asking if he was okay and that he would call emergency<br />
services. Morgan pulled his truck to the shoulder and went to<br />
check on the SUV. There was extensive damage to the vehicle. The<br />
driver’s side had hit the tree. All the windows were broken and the<br />
roof was smashed in, preventing the doors from being opened. There<br />
were two men inside. Although they were badly shaken, they didn’t<br />
appear to be injured.<br />
Morgan saw a wedding band on the driver’s hand and started asking<br />
him questions about his family to distract him as they waited for<br />
state troopers to arrive. “He told me he had an 8-month-old son at<br />
home named Michael,” Morgan said with some emotion in his voice.<br />
“I have four kids of my own. I would hope that if something like that<br />
happened to me someone would stop to help. I was raised in a small<br />
community where everyone takes care of everyone,” he said. “You<br />
have to have compassion for others. It’s the right thing to do, otherwise<br />
we’re not doing what we’re supposed to in life.”<br />
For their willingness to assist others in need, TCA has presented<br />
the three drivers with a certificate, patch, lapel pin and truck decals.<br />
Their employers have also received a certificate acknowledging their<br />
driver as a Highway Angel. Since the program’s inception in August<br />
1997, over 1,200 drivers have been recognized as Highway Angels for<br />
the exemplary kindness, courtesy and courage they have displayed<br />
while on the job. EpicVue sponsors TCA’s Highway Angel program.<br />
Do you know of a deserving driver who has completed a good deed<br />
while on the road? Nominate him/her at truckload.org/Highway-Angel.<br />
StakUp is the developer of the TCA “inGauge” online benchmarking<br />
platform used exclusively by the TCA Profitability<br />
Program to compare and contrast financial and operational<br />
performance.<br />
FreightWaves acquires StakUp<br />
FreightWaves, the leading data and content source for the freight<br />
markets, has acquired StakUp Inc. as part of a multifaceted partnership<br />
with the Truckload Carriers Association that will build on a<br />
previously announced data and marketing agreement established in<br />
November 2018.<br />
StakUp is the developer of the “inGauge” online benchmarking<br />
platform, used exclusively by the TCA Profitability Program (TPP) to<br />
compare and contrast financial and operational performance. As the<br />
exclusive software service provider for TPP, StakUp has built a significant<br />
database of carrier and brokerage profiles since its founding in<br />
April 2014 by then-TCA Chairman Ray Haight and StakUp President<br />
Chris Henry.<br />
Henry now has dual roles, continuing as TPP program manager and<br />
also serving as FreightWaves’ vice president of carrier profitability. In<br />
this role, he will enhance the data and features offered through the<br />
FreightWaves SONAR freight intelligence platform, promoting SONAR<br />
features specifically for North American truckload carriers. Jack Porter<br />
has remained as TPP managing director and will work closely with<br />
Henry to achieve growth targets, enhance group meeting content, and<br />
drive strategic direction.<br />
This new partnership between TCA and FreightWaves further fuels<br />
TCA’s membership growth and enhances active participants in the TCA<br />
Profitability Program. The outlined goal is to increase TPP participants<br />
to 2,000 by the end of 2025. In addition to the value of a larger pool<br />
of participants, especially for the curation of best practices and new<br />
initiatives, TCA and FreightWaves will be emphasizing the importance<br />
of increased technological sophistication of member companies.<br />
In addition, FreightWaves and TCA will conduct research to improve<br />
the efficiency and profitability of North American trucking companies<br />
and their related supply chain partners. Quarterly research objectives<br />
will be established to leverage FreightWaves’ growing datasets and<br />
its data scientists. TCA’s government affairs team will work closely<br />
with FreightWaves staff to establish the research objectives.<br />
Also, the two organizations have developed an incentive program,<br />
exclusively for TPP participants, to use the FreightWaves SONAR platform<br />
free for six months (limit of one SONAR seat per member, non-<br />
API access) that began June 1 and will end November 30. Carriers that<br />
join TPP will receive access to SONAR beginning on their join date and<br />
ending on November 30, 2019. Current TPP participants are strongly<br />
encouraged to activate their trial to maximize their evaluation period<br />
before the November 30 deadline.<br />
“Having previously established a close working relationship with<br />
TCA, this acquisition and partnership was the logical extension to<br />
build on each other’s strengths,” said FreightWaves’ founder and CEO<br />
Craig Fuller. “TCA has established the premier benchmarking and<br />
knowledge-sharing platform in trucking. Our goal is to add features,<br />
services and data to enhance the value for current and future TPP participants.<br />
If you are a truckload carrier, this service is a no-brainer.”<br />
44 TRUCKLOAD AUTHORITY | www.Truckload.org TCA 2019
“FreightWaves has carved out a unique position in the North<br />
American transportation industry as the data and content provider<br />
of choice,” said TCA Chairman Josh Kaburick, who is CEO of Earl L.<br />
Henderson Trucking Company. “The TCA Profitability Program is an<br />
exceptionally valuable service for participating carriers. Just like any<br />
other business, it is imperative that TPP stays relevant, and expands<br />
its services available to carriers of all sizes.”<br />
To learn more about the TPP, or to take advantage of the SONAR<br />
program, contact Henry at chris@tcaingauge.com.<br />
Refrigerated Division Meeting<br />
It’s not too late to register for TCA’s 36th Annual Refrigerated Division<br />
Meeting, scheduled for Wednesday, July 10 through Friday, July<br />
12 at the Sunriver Resort in Sunriver, Oregon.<br />
The meeting kicks off with fellowship time — a registration reception<br />
from 2 to 6 p.m. and dinner at 7 p.m.<br />
On Thursday morning there are three Trucking in the Round sessions:<br />
“Legal Update on the Owner-Operator Model and Alternatives,”<br />
with E. Eddie Wayland, partner, King & Ballow; “IT Malware and Ransomware<br />
— Target Trucking,” with Sam Anderson, president and CEO,<br />
Bay and Bay Transportation, Tom Grojean, chairman, Hirschbach Motor<br />
Lines, and Bob Twining, senior director of information technology,<br />
Hirschbach Motor Lines; and “Equipment Spotlight — Reefer Update,”<br />
with Scott Bates, N.A. product manager and marketing, Thermo King<br />
Corporation.<br />
The Thursday morning general session will feature remarks by Refrigerated<br />
Division Chair Wendell Erb, president and CEO of Erb Group<br />
of Companies, and TCA Chairman and Earl L. Henderson Trucking<br />
Company’s Josh Kaburick. The session will continue with a “Refrigerated<br />
Industry Outlook” with John Larkin, managing director, transportation<br />
and logistics, STIFEL Investment Banking, and conclude with an<br />
address by Chris Stirewalt, political editor at FOX News.<br />
There’s golf in the afternoon and a reception and dinner Thursday<br />
evening.<br />
The Trucking in the Round sessions will be repeated Friday at 7:15<br />
a.m. with the general session at 8:30 a.m., beginning with the annual<br />
business meeting followed by remarks by TCA President John Lyboldt.<br />
The meeting will end with a panel discussion, “Building A Stronger<br />
Supply Chain Network,” featuring Chris Kozak, director of Contract<br />
Carriers at Tyson Foods; Greg Hancock, transportation manager at<br />
Nestle USA; and panel moderator Jack Porter, managing director of<br />
the TCA Profitability Program.<br />
To register, visit truckload.org.<br />
TCA, ATFI Continue to Advocate for<br />
Better Solutions<br />
The Truckload Carriers Association has partnered again this year<br />
with the Alliance for Toll Free Interstates (ATFI), a national coalition<br />
that includes individuals, businesses, and organizations working to<br />
maintain the longstanding policy of protecting existing interstates<br />
from new tolls.<br />
As a partner, TCA is working with like-minded businesses and organizations<br />
to push back against tolls. ATFI and TCA have been working<br />
diligently to fight tolls in several different states.<br />
As of May, Connecticut is undergoing a heavy battle on how to<br />
finance its Special Transportation Fund to support its transportation<br />
Connecticut and Maryland have recently joined the charge<br />
when it comes to abusing tolling policy and creating harmful<br />
transportation solutions.<br />
system. At the start of the 2019 Connecticut General Assembly session,<br />
Gov. Ned Lamont proposed establishing electronic tolls on Interstates<br />
84, 91 and 95 and on the Merritt Parkway. Lamont thinks tolls<br />
could raise $800 million annually and as much as 40% of revenues<br />
could come from out-of-state travelers. Republican legislators have<br />
offered a counterproposal, named Prioritize Progress, which would<br />
steer clear of tolls. Lamont also began to push for public-private partnerships<br />
(known as “P3s”) to help find a suitable funding solution.<br />
Maryland Gov. Larry Hogan wants to expand several toll interstates<br />
in the metropolitan Washington, D.C., area using P3s. Hogan thinks<br />
the project would reduce congestion in the region, which has some<br />
of the most gridlocked roads in the nation. Challengers say the governor’s<br />
approach focuses too much on highways and not enough on<br />
transit and other forms of transportation. Opponents tried to block the<br />
project at the Maryland statehouse this year, but their efforts were<br />
unsuccessful. The state is presently conducting environmental impact<br />
studies about the project.<br />
Rhode Island has led the charge when it comes to abusing tolling<br />
policy and creating harmful transportation solutions. In the winter of<br />
2016, Rhode Island passed RhodeWorks, a bill to create an entire network<br />
of new tolls across the state. The plan exploits a federal exemption<br />
that is meant to repair lone, ailing bridges, and instead creates a statewide<br />
tolling system. The implementation so far has been rocky, with the<br />
state facing both constitutional and legal hurdles, including the American<br />
Trucking Associations filing of a federal lawsuit against the state.<br />
Taking its lead from Rhode Island’s use of the federal bridge exemption,<br />
Indiana began to look at tolling its highways in 2017, when<br />
a transportation package passed by the Indiana General Assembly allowed<br />
for the study and consideration of tolling practically all major<br />
Indiana highways. After months of debate, in November 2018, Indiana<br />
Governor Eric Holcomb announced he would not move forward with<br />
adding tolls on Indiana roads. ATFI was central to pushing the antitolls<br />
message in Indiana. Since 2017, ATFI has run NoTollsIndiana.<br />
com and facebook.com/notollsindiana. The campaign continues to<br />
encourage Hoosiers to oppose tolls in Indiana through emails and<br />
social media. Their website petition has received more than 3,700<br />
signatures and over 1,000 emails to Indiana legislators have been<br />
generated.<br />
During the 2019 Virginia General Assembly session, there were<br />
several bills to toll Interstate 81. ATFI partnered with the state trucking<br />
association, Virginia Manufacturers Association and several other<br />
trade associations to oppose the toll proposals. After defeating that<br />
legislation during the regular session, six weeks later when legislators<br />
returned to consider vetoed legislation, the General Assembly<br />
adopted a series of tax increases and higher fees to fund improvements<br />
to I-81. This was coupled with an informal agreement that the<br />
current administration would not seek tolls on I-81 in the future.<br />
ATFI and TCA will continue to work together to stop tolls from<br />
spreading across the country. For more information, visit tollfreeinterstates.com.<br />
TCA 2019 www.Truckload.org | TRUCKLOAD AUTHORITY 45
MARK YOUR<br />
CALENDAR<br />
JULY 2019<br />
>> July 10-12 — 36th Annual Refrigerated Division<br />
Meeting, Sunriver Resort, Bend, Oregon<br />
SEPTEMBER 2019<br />
>> September 5 — TCA Profitability Program Seminar,<br />
Hyatt Regency O’Hare, Chicago<br />
>> September 6 — Independent Contractor & Open<br />
Deck Division Meeting, Hyatt Regency O’Hare, Chicago<br />
The Truckload Carriers<br />
Association welcomes<br />
companies that<br />
joined our association in<br />
April and May.<br />
Leavitt’s Freight<br />
Service<br />
Cox Transfer, Inc.<br />
Platform Science<br />
Luma<br />
ELD Solutions<br />
April 2019<br />
May 2019<br />
Valmont Industries<br />
Corporate Medical<br />
Services<br />
Emerson & Elder PC<br />
Pan American Express<br />
Sawyer & Finn Logistics<br />
Openforce<br />
>> September 24 – TCA’s Fall Business Meetings,<br />
Washington, D.C.<br />
>> September 25 – TCA’s Third Annual Call on<br />
Washington, Washington, D.C.<br />
NOVEMBER 2019<br />
>> November 20 – Third Annual Bridging Border<br />
Barriers, Lionhead Golf Club, Brampton, Ontario<br />
MARCH 2020<br />
>> March 1-3 — TCA’s 82nd Annual Convention, Gaylord<br />
Palms Resort and Convention Center, Kissimmee,<br />
Florida<br />
JUNE 2020<br />
>> June 7-9 – 39th Annual Safety & Security Division<br />
Meeting, Louisville Marriott Downtown Hotel, Louisville,<br />
Kentucky<br />
MARCH 2021<br />
>> March 7-9 — TCA’s 83rd Annual Convention, Gaylord<br />
Opryland Resort and Convention Center, Nashville,<br />
Tennessee<br />
For more information or to register for the events, visit truckload.<br />
org/Upcoming-Events or contact TCA at (703) 838-1950.<br />
46 TRUCKLOAD AUTHORITY | www.Truckload.org
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