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Clare Casey Safety Award | Inside Out with Hunter Livesay | capital recap<br />

O F F I C I A L P U B L I C A T I O N o f t h e T r u c k l o a d C a r r i e r s A s s o c i a t i o n<br />

SUMMER 2017<br />

ONE VOICE<br />

TCA and ATA: A winning combination<br />

Page | 6<br />

Data Dump<br />

What will FMCSA do with<br />

the additional ELD data?<br />

Page | 24<br />

Politics in the fast lane<br />

Arkansas is in “high cotton”<br />

with a fast-paced senator<br />

Page | 40<br />

Last Call<br />

Setting high hiring standards<br />

and sticking with them


SUMMER | TCA 2017<br />

President’s Purview<br />

Embracing Change<br />

O ften, the only way to respond to changes around you adequately is to make changes<br />

yourself. We know trucking is a fast-paced, constantly evolving industry, and coupled together<br />

with the tense and uncertain political climate, we all have the choice either to let<br />

the environment dictate what we do and who we are or to stand up proudly and enact the<br />

changes we wish to see. Here at TCA, we have a focused direction and we are embracing<br />

change.<br />

In my joint interview with ATA President Chris Spear in this issue of Truckload Authority,<br />

we discuss the collaboration between our organizations in taking on the issues facing trucking<br />

— including F4A, tax reform, and hair testing — and we discuss the changes that we<br />

have each enacted in our brief tenures leading our organizations. I think it is an insightful<br />

discussion and I hope you take the time to read it.<br />

We’ve made great strides in proclaiming the Voice of Truckload. The new TCA Government<br />

Affairs team is working hard on the Hill, partnering with coalition safety groups to tell<br />

our story. Thank you to all of our members who have donated to the government affairs<br />

initiative. We’ve received 104 donations so far and more are coming in every day.<br />

John Lyboldt<br />

President<br />

Truckload Carriers Association<br />

jlyboldt@truckload.org<br />

We also have some exciting news in terms of honoring our pledge to our members to<br />

make your companies more profitable. More details will be forthcoming, but TCA’s Profitability<br />

Program is shaping up to be the most robust benchmarking program in trucking. I cannot<br />

wait for you all to begin taking advantage of this program and quickly begin seeing the gains<br />

in your balance sheets.<br />

Finally, we had one change that was bittersweet for us. Debbie Sparks has moved to a<br />

new role at Wreaths Across America. Debbie served our association for more than 10 years<br />

and provided us with an electrifying energy that will be impossible to replace. Luckily for us,<br />

she’ll still be involved with trucking at Wreaths, and we know that she’ll help propel them to<br />

new heights.<br />

As we continue forward along the road ahead of us, we know that there will be some<br />

bumps and unexpected turns, but we nevertheless move with certainty, focused on the<br />

destination, and ready for change.<br />

John Lyboldt<br />

PRESIDENT’S PICKS<br />

Here We Go Again<br />

Improving the infrastructure<br />

has always come down to money.<br />

Page 8<br />

Obamacare vs. Trumpcare<br />

The real problem is not which plan<br />

is better but the rising cost of care.<br />

Page 10<br />

Inside Out with Hunter Livesay<br />

Meet TCA’s young multi-talented<br />

Conventions and Marketing Coordinator.<br />

Page 36<br />

TCA 2017<br />

www.Truckload.org | Truckload Authority


T H E R O A D M A P<br />

SPRING 2 017<br />

PRESIDENT’S PURVIEW<br />

Embracing Change by John Lyboldt | 3<br />

LEGISLATIVE LOOK-IN<br />

Data Dump | 6<br />

Make America’s Infrastructure Great Again | 8<br />

Health Cost | 10<br />

Capitol Recap | 12<br />

TRACKING THE TRENDS SPONSORED BY SKYBITZ<br />

One Voice | 14<br />

NATIONAL NEWS MAKER SPONSORED BY THE TRUCKER NEWS ORG.<br />

Politics in the Fast Lane with Tom Cotton | 24<br />

A CHAT WITH THE CHAIRMAN SPONSORED BY MCLEOD SOFTWARE<br />

Never Enough Time with Rob Penner | 28<br />

MEMBER MAILROOM<br />

How do I stay informed about all of TCA’s events and programs? | 34<br />

TALKING TCA<br />

Inside Out with Hunter Livesay | 36<br />

Last Call | 40<br />

Welcome to Phoenix | 43<br />

Small Talk | 44<br />

Mark Your Calendar | 46<br />

Phone: (703) 838-1950 • Fax: (703) 836-6610<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 />

Dan Doran, President<br />

Doran Logistics, LLC<br />

TREASURER<br />

Dennis Dellinger<br />

President<br />

Cargo Transporters, Inc.<br />

SECRETARY<br />

James Ward<br />

President & CEO<br />

D.M. Bowman, Inc.<br />

ASSOCIATION VP TO ATA<br />

Bill Reed Jr., Chairman & CEO<br />

Skyline Transportation<br />

AT-LARGE OFFICER<br />

Dave Williams, Executive VP<br />

Knight Transportation<br />

VICE PRESIDENT + PUBLISHER<br />

Ed Leader<br />

edl@thetrucker.com<br />

CHAIRMAN OF THE BOARD<br />

Rob Penner, President & CEO<br />

Bison Transport<br />

EXECUTIVE VICE PRESIDENT<br />

William (Bill) Giroux<br />

wgiroux@truckload.org<br />

DIRECTOR OF EDUCATION<br />

Ron Goode<br />

rgoode@truckload.org<br />

SECOND VICE CHAIR<br />

Josh Kaburick<br />

CEO<br />

EarlL.HendersonTruckingCompany<br />

IMMEDIATE PAST CHAIR<br />

Russell Stubbs<br />

Chairman<br />

FFE Holdings Corp.<br />

AT-LARGE OFFICER<br />

John Elliott, CEO<br />

Load One, LLC<br />

AT-LARGE OFFICER<br />

Roy Cox, President<br />

Best Logistics Group<br />

AT-LARGE OFFICER<br />

Mike Eggleton, Jr., Vice President<br />

Raider Express, Inc.<br />

publication are not necessarily those of TCA.<br />

In exclusive partnership with:<br />

Phone: (800) 666-2770 • Fax: (501) 666-0700<br />

GENERAL MGR. T RUCKING DIV.<br />

Megan Cullingford-Hicks<br />

meganh@targetmediapartners.com<br />

REACHING TRUCKING’S<br />

TOP EXECUTIVES<br />

EDITOR<br />

Lyndon Finney<br />

editor@thetrucker.com<br />

PRODUCTION MGR.+ ART DIRECTOR<br />

Rob Nelson<br />

robn@thetrucker.com<br />

SPECIAL CONTRIBUTOR<br />

Cliff Abbott<br />

cliffa@thetrucker.com<br />

ASSISTANT EDITOR<br />

Dorothy Cox<br />

dlcox@thetrucker.com<br />

PRODUCTION + ART ASSISTANT<br />

Christie McCluer<br />

christie.mccluer@thetrucker.com<br />

ASSOCIATE EDITOR<br />

Klint Lowry<br />

klint.lowry@thetrucker.com<br />

“Truckload Authority always is WELCOME and RELEVANT in<br />

my mailbox. Not only does it give me VALUABLE INSIGHT<br />

into truckload but it also focuses on TCA members that are<br />

regularly.”<br />

— SHEPARD DUNN<br />

VICE PRESIDENT OF SALES, CFI<br />

2014-2015 CHAIRMAN, TRUCKLOAD CARRIERS ASSOCIATION<br />

TRUCKING’S MOST ENTERTAINING<br />

EXECUTIVE PUBLICATION<br />

NATIONAL MARKETING CONSULTANTS<br />

Meg Larcinese<br />

megl@targetmediapartners.com<br />

Dennis Bell<br />

dennisb@targetmediapartners.com<br />

© 2017 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 />

and any other claims or suits that may rise out of publication of such advertisements and/or<br />

editorial materials.<br />

Cover photo courtesy:<br />

Tina-Jane krohn<br />

Additional magazine photography:<br />

Associated Press: P. 24, 25, 27<br />

The Trucker News Org: P. 3, 8<br />

FotoSearch: P. 3, 6, 7, 8, 9, 10, 11, 40, 41, 42<br />

Hunter Livesay: P. 38, 39<br />

Jason Benias: P. 28, 29, 30, 32, 33<br />

TCA: P. 3, 36, 43, 44, 45<br />

Tina-Jane Krohn: P. 16, 18, 19, 20, 22, 23<br />

Truckload Authority | www.Truckload.org TCA 2017


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SUMMER | TCA 2017<br />

Legislative Look-In<br />

By Dorothy Cox<br />

For some time, trucking industry leaders have been anticipating the<br />

wealth of data that can be mined from electronic logging devices,<br />

or ELDs, which are mandated to replace written logs in commercial<br />

trucks on December 18.<br />

What if there’s actual data to back up what the industry has been<br />

saying for years anecdotally about, for example, detention time or<br />

parking?<br />

Take detention. If one looks at the American Transportation Research<br />

Institute’s (ATRI) top 10 trucking issues, “Detention impacts everything<br />

on that list,” said Truckload Carriers Association Vice President<br />

of Government Affairs David Heller. “There’s not anything it doesn’t<br />

play into.”<br />

“We have been speaking anecdotally about detention time, and for<br />

years and years and years it’s been an issue, but there’s never been<br />

any true data to back that up.”<br />

With ELDs, there could be.<br />

TCA President John Lyboldt said: “That data explosion we’re going<br />

to have from ELDs is going to be well-received by everyone, because<br />

we’re going to learn an awful lot about the things that we already<br />

know, but we’ll have data to prove ourselves to better trucking. So<br />

ELDs were a great way to move things forward for trucking in North<br />

America.”<br />

TCA Chairman Rob Penner noted that data has become more and<br />

more “prevalent” in the world of trucking and has helped improve<br />

safety. He noted that “detention of drivers is an industrywide problem<br />

and we must take appropriate actions to deal with it.”<br />

“Paper logs,” added Heller, “were only pencil marks on a piece of<br />

paper. In December, the truckload segment will have ELDs designed<br />

to the Federal Motor Carrier Safety Administration’s specifications.<br />

The agency now should be deemed responsible to use that data and<br />

figure out the bad apples.”<br />

The problem is that FMCSA apparently hasn’t the time, manpower,<br />

resources, or desire to keep such data.<br />

DOT data purge<br />

The agency says it doesn’t have the legal authority to do so.<br />

“The statute requiring use of ELDs limits the purposes for which the<br />

U.S. Department of Transportation may use ELD data,” said FMCSA<br />

spokesman Duane DeBruyne. “Enforcement officials are to use such<br />

data only for determining Hours of Service (HOS) compliance.”<br />

He pointed out that the agency won’t be maintaining the ELD data<br />

it reviews “except in those cases where enforcement action is taken<br />

and the data is needed as evidence.”<br />

What’s more, he told Truckload Authority, “Routine inspections will<br />

transfer data to law enforcement and then be purged from the system.”<br />

Said Heller, “It’s not their data to purge. It’s a question of whether<br />

or not they are legally obligated to acknowledge excessive detention<br />

time by knowing the ramifications. It does contribute to unsafe practices<br />

— they have the studies on it.”<br />

“The bigger question,” he said, “is if plaintiffs’ attorneys take motor<br />

carriers to task for not capturing all the data [from ELDs], why not<br />

hold regulators to the same standard?”<br />

“At a minimum,” explained a J.J. Keller & Associates fact sheet on<br />

ELDs, “the device must record engine use, road speed, miles driven,<br />

the date and time of day. … In order to be considered an ELD, the device<br />

must meet specific technology requirements and be included on<br />

the FMCSA’s registration site.” As of December 18, ELDs are required<br />

“by interstate drivers of commercial motor vehicles who currently<br />

use a driver’s record-of-duty status [log] to record their HOS.”<br />

Of course, many ELDs have a lot of bells and whistles besides the<br />

ability to track HOS.<br />

For example, SkyBitz offers GPS tracking features, giving what it calls<br />

“full visibility” to trucks in a carrier’s fleet, thus “helping to improve<br />

productivity and the bottom line,” the company says on its website.<br />

SkyBitz President Henry Popplewell explained that while “lots of<br />

ELD solutions offer ELDs only, SkyBitz’s Local Fleets can offer vehicle<br />

and asset tracking with ELDs on the same platform, the SkyBitz OpsCenter.<br />

The OpsCenter provides tracking, dispatching, messaging,<br />

reefer monitoring, and more in one portal. As a result, we not only<br />

ease the pain of meeting the mandate, but enable companies to optimize<br />

their fleet and driver utilization. SkyBitz has more than 20 years<br />

of serving fleet customers with industry-leading solutions. We are<br />

now bringing that knowledge, experience, and reliability to the ELD<br />

through our SkyBitz Local Fleets brand.”<br />

Truckload Authority | www.Truckload.org TCA 2017


“SkyBitz Local Fleets E-logs,” he added, “monitor exactly how much<br />

time your drivers spend on jobs. In addition to making sure you’re<br />

not violating HOS, you’ll be able to improve your scheduling by ensuring<br />

no one is underutilized and no one is over-scheduled. Complying<br />

with HOS regulations is way easier when you can improve your<br />

scheduling and make the most of the hours your fleet is allowed to<br />

spend on the road.”<br />

David Palle, Omnitracs vice president of product management, said<br />

Omnitracs’ new software update, Roadnet Anywhere v4.5, provides<br />

Fleet Overview, “a brand-new feature that allows managers to even<br />

more easily track the status and performance of their entire fleet in<br />

real time. Fleet Overview provides a better singular management<br />

area for vehicles that have a route plan, or do not have a plan at all.<br />

By utilizing Fleet Overview, managers can ensure that their team<br />

stays on schedule, ensuring timely deliveries and that the best route<br />

options are utilized, ultimately increasing revenue and customer service<br />

levels for the company.”<br />

Speaking about data generated by these products, Heller said,<br />

“Here’s the thing — you’ve got a compliance-review officer who<br />

walks into a focused audit [of a carrier]. They’ll say, ‘I want to see<br />

Hours of Service records for drivers 1-2-3-4-5’ because right now<br />

he’s just looking at HOS to make sure they’re compliant.<br />

“And eventually, as everybody starts adopting ELDs, what he’s<br />

going to start noticing is that latitude and longitude is the same”<br />

for where drivers are being detained unreasonable amounts of<br />

time. It’s the same at the neighbors down the street and at their<br />

neighbors down the street. He’s going to go, ‘Where the heck is<br />

this latitude and longitude, because it keeps popping up on every<br />

single one of these driver’s HOS electronic reports as being<br />

detained.’ And they’re going to look, and they’re going to see it’s<br />

this shipper.”<br />

But will FMCSA do that and who’s going to make them do it?<br />

At some point, Heller said, Congress may give FMCSA the authority<br />

to use the data for something other than tracking HOS compliance.<br />

Or, he pointed out, the agency may already have that authority.<br />

“They have policing power over carriers, brokers, shippers, and<br />

freight forwarders to get on them for coercion. Isn’t this kind of<br />

the same thing? If a shipper forces a driver off its property,” even if<br />

they’re out of hours, “isn’t that coercion?”<br />

Do the right thing<br />

“It will get to the point that we as an industry have<br />

to hold their feet to the fire,” Heller said. We took ELDs<br />

under advisement. A lot of our members have had them<br />

in their trucks for years, which was the reason why we developed<br />

that grandfather clause.<br />

“I remember the meeting in which we changed policies. We<br />

stopped calling them EOBRs (electronic onboard recorders) and<br />

started calling them ELDs and supporting ELDs. We’ve done our part<br />

and we’ve got the battle scars to prove it. Now, at this point in time,<br />

with this explosion of data that we’re about to see, we expect the<br />

agency to have our backs on the same thing. They have to make the<br />

decision to do what’s right. And now we’ve got data to say what<br />

we’ve been saying anecdotally all along.”<br />

Although FMCSA now says they will “purge” non HOS-related data,<br />

they may not do that in the future, Heller said, adding that the other<br />

data’s too important for trucking to give up the fight.<br />

“This is the beginning of the battle, not the end of the war. This is<br />

just the opening salvo. Just because they believe right now they can’t<br />

do anything with the [non HOS] data” doesn’t mean that will ultimately<br />

be the case, he said.<br />

“Some of these things need to be addressed,” he added. “If we<br />

could get professional drivers [more time] to drive, what do you<br />

think that’s worth?<br />

“This is going to become the next big issue, this data explosion. The<br />

agency wanted ELDs; now that they’re here they have to be prepared<br />

to deal with this.”<br />

TCA 2017 www.Truckload.org | Truckload Authority


Trucking Fears<br />

Privatization<br />

Road to Ruin<br />

By Cliff Abbott<br />

It was an election year, and the front-running Republican presidential candidate<br />

sought to reassure a nation recovering from both war and economic<br />

recession. He spoke of infrastructure, its importance to security and commerce,<br />

and the economic impact that investment in infrastructure would<br />

bring to the nation.<br />

The nation’s infrastructure had been discussed for decades and Congress<br />

had passed a number of bills addressing the issue, but the debate always<br />

seemed to come down to how the work was to be funded. While the argument<br />

continued, important construction projects were delayed or cancelled<br />

altogether.<br />

The candidate was President Dwight D. Eisenhower, who signed the Federal-Aid<br />

Highway Act of 1956 into law on June 29 of that year, just months<br />

before being elected to a second term in the White House.<br />

While the act, popularly known as the “National Interstate and Defense<br />

Highways Act,” is generally accepted as the origin of the U.S. Interstate Highway<br />

system, Congress had addressed a national system of highways as early<br />

as 1916, with the passage of the Federal Aid Road Act. In addition to laying<br />

out a plan for more than 40,000 miles of limited-access roads, the 1956 act<br />

created the Highway Trust Fund, directing that proceeds from the then current<br />

three-cents-per-gallon gasoline tax go directly to the trust fund rather<br />

than into the general fund, as they had previously.<br />

More than six decades later, the fuel tax has grown to 18.4 cents per gallon<br />

of gasoline and 24.4 cents per gallon of diesel fuel. Politicians are still talking<br />

about infrastructure, and still arguing over how to pay for it.<br />

President Donald Trump’s campaign promise to “make America great<br />

again” included a pledge to address the country’s deteriorating roads and<br />

bridges as part of a larger package to repair and expand the country’s transportation<br />

infrastructure. His opposition claimed that his proposals lacked<br />

detail and did not mesh with other campaign promises to cut taxes while<br />

increasing defense spending and building a wall to curb illegal immigration.<br />

In fact, Democrats in Congress attempted a preemptive strike with the release<br />

of their “Blueprint to Rebuild America’s Infrastructure” on January 23,<br />

the Monday following Trump’s January 20 inauguration. The plan called for $1<br />

trillion in spending to be funded entirely by the government. Republicans and<br />

Trump, however, refused to take the bait, insisting that their own plan was<br />

forthcoming.<br />

While Trump hinted that privatization and tolling were two options in addition<br />

to increased fuel taxes to address infrastructure improvements, Democrats<br />

warned that the nation’s travelers would be at the mercy of big business.<br />

In a May 1 meeting with the Independent Community Bankers Association<br />

held in the Kennedy Garden at the White House, Trump said that he would<br />

explore the possibility of an increase in federal gasoline and diesel taxes.<br />

In a June 7 speech in Cincinnati, the president hinted that a portion of<br />

the necessary funding might come from reprioritization of some current<br />

spending.<br />

The following day, Trump’s team, including Secretary of Transportation<br />

Elaine Chao and Secretary of the Interior Ryan Zinke, met with state and local<br />

leaders at the White House to develop plans for infrastructure replacement.<br />

On June 9, Trump took to the podium again at the U.S. Department of<br />

Transportation in Washington, D.C., to discuss his plan.<br />

Citing his private-sector experience, Trump hit at “the painfully slow, costly<br />

and time-consuming process of getting permits and approvals to build.”<br />

Pointing to a tall stack of binders used for the demonstration, he spoke of an<br />

18-mile Maryland road project that spent $29 million, or $24,000 per page, on<br />

an environmental report weighing 70 pounds.<br />

The president added that U.S. building projects should use “American iron,<br />

aluminum and steel,” noting that “It is time, at last, to put America first.”<br />

Trump’s plan, available on the whitehouse.gov website, contains these<br />

major goals:<br />

• Reduce the average permit time from 10 to two years<br />

• Unleash private sector capital and expertise to rebuild cities and states<br />

• Invest in rural infrastructure<br />

• Reimagine America’s approach to infrastructure with transformative<br />

projects, and<br />

• Create a workforce training initiative focused on skill-based apprenticeship<br />

education.<br />

As expected, Trump’s plan to “unleash private sector capital” was a<br />

cause for concern for many who fear privatization of bridges and highways<br />

will result in increased tolling. Just a month earlier, however, a<br />

bipartisan coalition of senators introduced the Building and Renewing<br />

Infrastructure for Development and Growth in Employment (BRIDGE)<br />

Act in the Senate. The Act, cosponsored by Sens. Richard Blumenthal,<br />

D-Conn.; Chris Coons, D-Del.; Kirsten Gillibrand, D-N.Y.; Lindsey Graham, R-<br />

S.C.; Dean Heller, R-Nev.; Amy Klobuchar, D-Minn.; and Thom Tillis, R-N.C.,<br />

would create a new infrastructure financing authority that helps state and<br />

local governments leverage private funds to build and maintain infrastructure.<br />

Regardless of the source of funding, however, a repayment system<br />

is needed.<br />

Proposed use of private funds is good news to the International Bridge,<br />

Tunnel and Turnpike Association, whose stated mission is to advance tollfinanced<br />

transportation.<br />

David Heller, the Truckload Carriers Association’s vice president of government<br />

affairs, however, isn’t a fan of the idea. “Trump obviously wants<br />

to get in some public-private partnerships, which traditionally are not the<br />

way to go,” he said, “because it generally leads to more tolling.” Heller<br />

thinks that other forms of revenue generation, such as dedicated user<br />

fees that would raise revenues from electric and other alternative-fuel<br />

vehicles, should be on the table for discussion. The fuel tax system, however,<br />

may provide a quicker revenue fix for infrastructure repairs, and the<br />

trucking industry is willing to help.<br />

“I mean,” Heller said, “we’re an industry that’s proposing to do our part.<br />

We say charge us more on our fuel tax. All the collection tools are there, the<br />

disbursement tools are there. The model’s already put in place.”<br />

New methods of user-generated revenue will undoubtedly be discussed,<br />

and experiments are in progress worldwide. “But at this point in time,”<br />

Heller said, “that fuel tax could be done quickly; it can be done accurately.<br />

“Is it going to foot the entire bill?” he asked. “No.” Willing to explore other<br />

funding possibilities for new construction, Heller is adamant that tolling isn’t<br />

an option in the current system. “Anything on existing capacity,” he said,<br />

“probably isn’t a conversation starter for us.”<br />

Truckload Authority | www.Truckload.org TCA 2017


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HEALTH<br />

CARE<br />

Health expenses up<br />

despite plan choice<br />

By Lyndon Finney<br />

COST<br />

Four years ago, the entire country, including the trucking industry, began to realize the huge<br />

impact of something called the Patient Protection Affordable Care Act of 2010, aka Obamacare.<br />

Would it be a tough pill to swallow?<br />

Yes, for many, because it was about to set the traditional world of health care insurance and<br />

health care delivery on its head.<br />

Would it be complex, confusing and costly?<br />

Yes, because it introduced new vernacular such as “health care exchanges” (huh?) and “Medicaid<br />

expansion” (huh?), and was fraught with more out-of-pocket costs because of high deductibles,<br />

anywhere from $2,500 to $5,000 for many Americans.<br />

And now, along comes “Trumpcare,” President Donald Trump’s effort to fulfill a campaign<br />

promise to repeal President Barack Obama’s signature legislation.<br />

Trumpcare, as introduced in the House, has already run afoul of Democrats anxious to preserve<br />

Obama’s legacy, and the Republican-led Senate, where lawmakers are wary of a bill that<br />

cuts Medicaid by $800 billion and rolls back Obamacare’s Medicaid expansion, which has covered<br />

millions of people in states represented by Republican senators.<br />

Trump’s version of a new health care act that passed in the House also repeals the mandate that<br />

requires individuals to purchase health care insurance and the mandate that requires businesses<br />

with 50 or more employees to offer health care insurance as part of their benefits package.<br />

That said, despite the cries of foul by Obamacare proponents after the Congressional Budget<br />

Office released a report estimating 14 million Americans would lose coverage by 2018, the decline<br />

in the number of Americans with health insurance could be as much a voluntary decision by individuals<br />

who choose not to renew their policies without the mandate, as it would be involuntary,<br />

as in the case of employees whose companies choose not to offer coverage.<br />

It is also very likely that low- and middle-income families would drop individual coverage because<br />

Trumpcare would replace upfront, fairly generous subsidies to buy health care insurance with backend<br />

tax credits, and those tax credits undoubtedly would not match subsidies dollar-for-dollar.<br />

But is the real issue facing Americans access to health care and health insurance?<br />

10 Truckload Authority | www.Truckload.org TCA 2017


“I think Obamacare was<br />

effective in getting insurance<br />

for a large number of people,” said<br />

Tom Kane, senior vice president at Stephens,<br />

Inc., a Wall Street investment firm<br />

located in Little Rock, Arkansas. Kane deals<br />

primarily with employer health care benefits.<br />

“What’s frustrating for me is that I don’t hear<br />

anybody on the national stage talking about health care<br />

costs. They talk about health insurance costs, but there’s<br />

not any talk about health care costs. And the reason health care<br />

insurance costs continue to go up is because health care costs are<br />

going up and we’re also seeing increases in utilization.”<br />

Kane believes the federal government should sit back and ask why health<br />

care costs are going up.<br />

One reason is prescription drugs, he said.<br />

“You are seeing drug manufacturers raise prices for no other reason than<br />

because they can,” Kane said. “That’s very concerning for us. Today, we are<br />

seeing the medical inflation trend around 5 percent. Prescription drugs are in<br />

the low teens; specialty prescription drugs in the low 20s. I remember when<br />

we first started offering prescription co-pays, the drug spend as part of the<br />

total spend was 15 percent. Today I have clients where it’s well over 30 percent<br />

and we are going to continue to see that rise as these drug costs go up.<br />

That’s really what’s driving the increase in health care costs today.”<br />

Hospital charges are also running rampant, Kane said, so much so that<br />

those “charges” do not reflect the actual cost of providing the care.<br />

“That’s another problem we have in this country today,” he said. “If you<br />

look at the hospital charges compared to their costs of goods it ranges across<br />

the country from 300 percent to over 500 percent” above the actual cost for<br />

providing the service.<br />

Kane talked about a relatively unknown term in health care pricing — the<br />

hospital chargemaster.<br />

Writing in Becker’s Hospital Review, author Carrie Pallardy in an article<br />

headlined “Deconstructing the enigmatic hospital chargemaster,” had this to<br />

say:<br />

“Patients struggle to understand health care costs, but the process of setting<br />

costs and charging for services rendered can be complex enough to confound<br />

industry experts. The chargemaster is at the heart of the cost structure<br />

matter, yet ask hospital executives to explain how it works and the answers<br />

run the gamut from barebones basic to overly vague.<br />

“At the most simplistic level, the chargemaster is a list of prices for any<br />

service or product a hospital offers. At its simplest form, think of it as a menu<br />

— anything you can charge a patient. But, looking past the obvious, understanding<br />

the inner workings of this set of data elements grows more difficult.”<br />

Every hospital negotiates its chargemaster separately, Kane said.<br />

Those negotiations normally wind up with the insurance company and the<br />

hospital agreeing to reimburse the hospital a set percentage of the actual<br />

charges.<br />

Again, it’s important to remember that a hospital’s charge for a certain<br />

service has little reflection of the actual cost of providing that service.<br />

“So, when I [as the hospital] bill Blue Cross for an incident, the bill goes<br />

into the chargemaster in reference to what the pricing is, which may vary<br />

from hospital to hospital,” Kane said. “One hospital says ‘we want to make<br />

more money on hips and knees’ and another hospital says ‘we’ll use hips and<br />

knees as a cost leader and we’ll make it up on stints and bypasses.’ And so,<br />

you are going to see a huge variation in pricing.”<br />

Another problem inherent to the pricing issue is that in America today<br />

people typically equate cost with quality.<br />

“So when you’re buying a car and you buy a Lexus you are going to pay<br />

more than if you buy a Chevrolet,” Kane related. “In health care, this is not<br />

necessarily true. In fact, oftentimes we see higher costs associated with lower<br />

quality. One of the things we have to do as part of this big picture is create true<br />

transparency in cost and quality in health care so that consumers can look and<br />

say, ‘I had this laparoscopy done at Baptist or St. Vincent or UAMS or Saline<br />

Memorial (four major central Arkansas hospitals),’ and see what the costs are<br />

and what the quality outcomes are. And until we get to that point, what we<br />

have to be careful of is when these insurers say ‘we offer a 60 percent discount<br />

to our network,’ 60 percent of what? Sixty percent of $27,000 or 60 percent of<br />

$10,000 [for the same procedure]? Because what the hospital does is keep raising<br />

its prices, charging more and more and more. If your discount is a percent<br />

of that, then the cost of the insurance plan continues to go up.”<br />

And so the average American becomes the victim of this charge vs. cost<br />

game, regardless of whether they are covered through a company plan or<br />

have to purchase an individual plan from the exchange.<br />

“Regardless of whether it’s Obamacare or Trumpcare, the problem is the<br />

upward spiral of health care costs. Health care costs have continued to rise and<br />

employers have shifted costs to their employees in the form of higher deductibles,<br />

higher co-pays, and the concern has reached a point to where the average<br />

American — truck drivers included — cannot access basic health care to<br />

manage their chronic diseases because they have a $5,000 deductible,” Kane<br />

said. “So, if the first $5,000 comes out of my pocket and I don’t have any disposable<br />

income, I can’t afford to get a prescription filled or go see a doctor to<br />

have my diabetes checked. And what happens if that person cruises along until<br />

they have a major health event and then they arrive at an emergency room or<br />

doctor’s office and then you have a really bad situation. And they are going to<br />

get the care and it’s going to be expensive to the system. In America, we have<br />

the best disease care system. We wait until people get sick and then we try to<br />

deal with that instead of trying to keep people healthy. And that goes back to<br />

my thing that we really need someone in government to start showing some<br />

leadership and have some honest conversations with the American public that<br />

we all have to be more accountable for our own health.”<br />

What’s the impact of these rising costs (translated rising insurance costs)<br />

on trucking?<br />

“I think it’s going to be difficult for the owner-operator or a driver working<br />

for a small company,” Kane said. “I think larger carriers are competing for quality<br />

drivers and I think we’re seeing the labor market continue to be difficult,<br />

especially in trucking. So if I’m a good driver, obviously I have a good record<br />

and I’m going to be able to seek employment where I can get good benefits,<br />

and that’s across every industry. And I think we’re going to see the labor markets<br />

get more and more competitive and employers are going to have to offer<br />

benefits, but for those smaller companies, it’s going to be a struggle.”<br />

So, the question remains: Is anyone out there listening to experts such as<br />

Tom Kane who believe the answer is not about Obamacare or Trumpcare, but<br />

all about quality, fairly priced care?<br />

Only time will tell.<br />

TCA 2017 www.Truckload.org | Truckload Authority 11


CapItol recap<br />

A review of important news coming out of our nation’s capital.<br />

By Lyndon Finney and Dorothy Cox<br />

F4A<br />

Perhaps the incessant pounding of the pavement<br />

on Capitol Hill is going to pay off for the trucking industry<br />

as most believe that a Congressional fix to the F4A debacle<br />

could well be included in the FY2018 Transportation,<br />

Housing and Urban Development and Related Agencies<br />

appropriations bill.<br />

“Most of the response I get on Capitol Hill is that people<br />

know the issue, which is good, and if you know the<br />

issue you don’t have to educate them as much,” said<br />

David Heller, TCA vice president of government affairs.<br />

“For a long time, they would give you that look like, ‘what<br />

is the issue?’ But the majority of people who are advocating<br />

for F4A federal pre-emption language have done<br />

a good job educating lawmakers and their staffers on<br />

what this problem really is. So long gone are the days of<br />

educating. Now are the days of ‘hey, let’s emphasize this<br />

is something we as an industry need.’ And those are the<br />

kinds of conversations we are really starting to have.”<br />

The term F4A comes from the fact that language was<br />

included in the Federal Aviation Administration Authorization<br />

Act of 1994 that contained language the trucking<br />

industry believed would prohibit individual states from<br />

passing laws that superseded federal regulations, especially<br />

on the Hours of Service issue.<br />

But California did just that and in 2015, the Ninth Circuit<br />

Court of Appeals overturned a district court’s ruling,<br />

saying that F4A does not pre-empt California’s meal and<br />

rest break laws because those state laws are not “related<br />

to” prices, routes or services as stated in F4A.<br />

The trucking industry took exception to the court’s<br />

ruling, noting that compliance with meal and rest<br />

brake laws were indeed related to prices, routes and<br />

services.<br />

“I think now 19 or 20 states have their own separate<br />

meal and rest break laws that are outside of the federal<br />

Hours of Service regulations, which becomes an entirely<br />

different beast altogether,” Heller said. “Imagine if you’re<br />

a hazmat hauler and are exempt from the 30-minute<br />

break on federal Hours of Service but you’re supposed<br />

to be taking a meal break. There’s the confusion. It’s not<br />

unheard of for truck drivers to drive [through] three, four,<br />

five, six states in a day. Trying to keep track of all those<br />

local rules and regulations on top of keeping track of the<br />

federal HOS regulations becomes a geographical nightmare<br />

and logistical problem at the very least.”<br />

TCA Chairman Rob Penner, president and COO of<br />

Bison Transport, pointed to the F4A issue as one of the<br />

top issues facing truckload carriers, especially.<br />

“I think without question F4A is a big deal for us<br />

because that impacts the most important resource we<br />

have, our people,” Penner said. “We can’t allow individual<br />

states to create huge inefficiencies and create<br />

these real barriers to interstate commerce. We simply<br />

can’t have different employment laws, rest breaks,<br />

things that hurt our drivers and the ability for us to effectively<br />

use them. We have to get that off the table.”<br />

Should Congress be able to agree on including F4A<br />

language and then actually pass an appropriations bill,<br />

any new law would become effective the first day of the<br />

federal government’s FY 2018, which would be October<br />

1, 2017.<br />

HAIR TESTING<br />

Twelve Congressmen, including five from Arkansas,<br />

home of J.B. Hunt, have recently joined the push to<br />

make hair testing an option when it comes to pre-employment<br />

testing for substance abuse.<br />

Five senators — John Thune, R-S.D., John Boozman,<br />

R-Ark., Joe Manchin, D-W. Va., Deb Fisher, R.-<br />

Neb., and Ron Johnson, R-Wis. — recently sent a letter<br />

to Health and Human Services Secretary Thomas Price<br />

requesting swift action in taking steps to what could lead<br />

to the use of hair testing.<br />

Seven members of the House of Representatives<br />

— Rick Crawford, R-Ark.; Don Bacon, R-Neb.; Bruce<br />

Westerman, R-Ark.; Martha McSally, R-Ariz.; Steve<br />

Womack, R-Ark.; French Hill, R-Ark., and Ted Budd, R-<br />

N.C. — signed a letter offering their support for a petition<br />

submitted to the Federal Motor Carrier Safety Administration<br />

urging the agency to allow hair testing rather than<br />

a urinalysis to meet federal drug testing requirements<br />

for commercial truck driver applicants.<br />

It is a well-documented fact that J.B. Hunt, located in<br />

Lowell, Arkansas, is a strong proponent of hair testing.<br />

J.B. Hunt Transport has voluntarily conducted hair<br />

exams on commercial driver applicants for more than<br />

10 years.<br />

Since then, more than 4,700 J.B. Hunt driver applicants<br />

who passed the urinalysis required under current<br />

regulations were identified as lifestyle drug users by<br />

analysis of their hair samples. This exemption, if granted,<br />

would permit the sharing of hair test results as currently<br />

allowed with the required urine test results.<br />

Thune is chairman of the Committee on Commerce,<br />

Science and Transportation; Fisher and Johnson are<br />

members of the committee and Fisher chairs the subcommittee<br />

on Surface Transportation and Merchant Marine<br />

Infrastructure, Safety and Security. The other three<br />

are on commitees that directly impact transportation.<br />

The letter noted that the Department of Health and<br />

Human Services’ Substance Abuse and Mental Health<br />

Services Administration (SAMHSA) has been working<br />

on guidelines since the early 2000s but has not produced<br />

anything, even though the Fixing America’s Surface<br />

Transportation (FAST) Act placed a December 4,<br />

2016, deadline on SAMHSA’s work.<br />

Under law, SAMHSA must set or amend drug testing<br />

guidelines before the Department of Transportation can<br />

act, so DOT has not been able to move forward with the<br />

allowance of hair testing as a federally approved drug<br />

testing method.<br />

Both the Truckload Carriers Association and the<br />

American Trucking Associations are strong proponents<br />

of hair testing.<br />

“Hair testing is that big thing that carriers are starting to<br />

wake up to and say ‘hey, we need to get this done,’” said<br />

David Heller, vice president of government affairs at TCA.<br />

Speaking of the letter from the senators, Heller said,<br />

“I think they did it in an effort to basically give HHS a<br />

swift kick in the butt to get the ball rolling.”<br />

Heller noted that some carriers are effectively using<br />

hair testing to enforce a zero-tolerance policy for drugs<br />

and alcohol because “it makes them a safer fleet and it<br />

upholds their zero-tolerance policies and trucking’s zero<br />

tolerance policies are working.”<br />

sleeper berth<br />

The great bard William Shakespeare wrote: “What’s<br />

in a name? That which we call a rose by any other name<br />

would smell as sweet.” So, would a split sleeper berth pilot<br />

still smell as sweet if it was called a proposal?<br />

A Federal Register notice published by the Federal Motor<br />

Carrier Safety Administration June 6 called it “The Flexible<br />

Sleeper Berth Pilot Program,” and set forth parameters for<br />

the pilot.<br />

But an FMCSA spokesman said the notice was actually<br />

saying that the agency wants comments on its pilot<br />

“proposal,” whether there should be a different time frame,<br />

what it’s missing and suggestions on how it should be<br />

structured and whether or not it would work for the industry.<br />

However, “There’s no pilot, per se, at this time,” said<br />

FMCSA Spokesman Duane DeBruyne.<br />

To say the least, the Federal Register notice may have<br />

muddied the waters a bit.<br />

But wait, there’s more.<br />

A website, sleeperberthstudy.com, which contained<br />

information for drivers on how to complete an application,<br />

take a questionnaire and provide written consent<br />

to be part of a pilot, was “inadvertently posted” and will be<br />

removed, DeBruyne said, again emphasizing, “there is no<br />

study.”<br />

The bottom of the website showed names and logos<br />

from FMCSA, Virginia Tech Transportation Institute, Washington<br />

State University and Smartdrive. As of press time, it<br />

was still up, but a protected password had been added to<br />

gain access, which was not the case earlier.<br />

Trucking has until August 7 to comment on the pilot as<br />

set forth in the Federal Register notice.<br />

That being said, FMCSA’s “proposed” pilot would<br />

involve 200 or more commercial drivers, with study participants<br />

being exempt from current sleeper requirements<br />

and allowed to split up their time, with none less than three<br />

hours, and splits of three and seven, four and six or five<br />

and five.<br />

In other words, there would be “relief” for pilot participants<br />

from the current regulation that requires at least<br />

eight consecutive hours in the sleeper berth plus a sepa-<br />

12 Truckload Authority | www.Truckload.org TCA 2017


ate period of two consecutive hours in the berth, off-duty or a combination of the two<br />

before returning to duty.<br />

Whenever there is a pilot program, DeBruyne said, it will be “comprehensive and robust,”<br />

involving as broad a range of drivers as possible.<br />

Truckload Carriers Association Vice President of Government Affairs David Heller said<br />

trucking would no doubt support a pilot or future pilot, but added: “They’re late to the table.<br />

They were supposed to be down this road last September.”<br />

David Owen, president of the National Association of Small Trucking Companies, said<br />

he would be pleased if FMCSA were to conduct a split sleeper pilot “in good faith” if it<br />

would lead to getting needed flexibility back into the sleeper berth and 14-hour portions<br />

of the Hours of Service rules. That way, he said, a driver could take a restorative, three- or<br />

four-hour nap while waiting to be loaded and it wouldn’t stop the 14-hour clock.<br />

“It would help our guys tremendously,” he said.<br />

However, he suggested that FMCSA have a control group of drivers abiding by the<br />

current sleeper berth rules and compare their fatigue results with the pilot group, with pilot<br />

participants splitting time in the sleeper as specified and comparing both groups’ participants<br />

as to heart rate, fatigue results and other health factors.<br />

The duration of the proposed pilot would be three years or less, according to the Federal<br />

Register notice.<br />

The comment period opened June 6 will be available at the regulations.gov rulemaking<br />

portal via Docket No. FMCSA-2016-0260.<br />

The results of such a pilot will be reported to Congress. So it may take a while, no<br />

matter what it’s called.<br />

TWIN 33S<br />

The third rail of trucking, aka twin 33s, are back in the news.<br />

The principal of a company that provides logistics management advisory services predicts<br />

that a proposal to allow widespread adoption of twin 33-foot trailers on the nation’s<br />

highways “will be one of the few things approved during this session of Congress.”<br />

Writing in DC VELOCITY, a magazine targeting logistics and supply chain managers<br />

and executives, Clifford F. Lynch of C.F. Lynch & Associates, says that the debate on twin<br />

33s two years ago “was hardly the first go-round on the issue.” Lynch says the current<br />

political landscape and the newest findings showing that twin 33s would result in 3.1 billion<br />

fewer vehicle miles traveled and 4,500 fewer accidents, are proving to be particularly<br />

advantageous to advancing legislation and allowing twin 33s nationwide to “finally see<br />

the light of day.”<br />

Supporters of twin 33s lobbied for the longer trailers during adoption of the FY2016<br />

omnibus appropriations bill and had convinced lawmakers to include pro twin-33 legislation<br />

in both the House and Senate versions of the bill.<br />

But Congress eventually approved the omnibus appropriations bill with those provisions<br />

having been stripped out.<br />

“But it appears the twin 33’s day has finally come,” Lynch wrote. “What’s different this<br />

time around? To begin with, we have a new administration and a new Congress, both with<br />

a decidedly anti-regulatory bias. More importantly, perhaps, there’s new lobbying muscle<br />

in town, with FedEx chairman Fred Smith leading the charge.”<br />

“Twin 33s are a great configuration for the LTL segment of the industry,” said David<br />

Heller, Truckload Carriers Association vice president of government affairs. “If we were the<br />

LTL Trucking Association, I would be beating down the house on that, too, because that<br />

industry is set up perfectly for those trailers because they can get more cubic space in<br />

packaging without a doubt. You don’t have to break those trailers apart in terms of what’s<br />

inside the packaging.”<br />

But … “Transfer that over to the truckload side,” Heller continued, and “inevitably some<br />

shipper is going to say, ‘hey, I can get more mugs in twin 33-foot trailers than I can in a<br />

53-foot trailer, so why don’t you get twin 33-foot trailers or you’re not going to haul my<br />

mugs.’”<br />

But isn’t there enough freight to keep a TL carrier busy transporting coffee mugs?<br />

“The problem is that the majority of truckload guys would say, ‘Well, then OK, I’m not<br />

going to haul your mugs.’ But guess what, somebody is going to say, ‘OK, I’ll do it.’ And<br />

they’ll pull up with two shiny twin 33-foot trailers and start loading those mugs.”<br />

Then those carriers that didn’t want to haul the coffee mugs will say, “‘We’ve got to get<br />

back that freight’ and they’ll do all these things just for getting that freight,” Heller said. “And<br />

eventually it will snowball to a point where all the shippers insist on hauling the freight on<br />

twin 33-foot trailers because you can get more on them. That’s beside the fact that our<br />

industry is not set up for it. It really isn’t. If you pull into a loading dock, you can’t back twin<br />

33-foot trailers up. You have to unhook them and back them up as single units. And the<br />

way the loading docks work in the truckload segment of the industry, that alone is going<br />

to be an issue.”<br />

J. J. KELLER’S ELD INSIGHTS<br />

ELD Mandate Do’s and Don’ts<br />

DON’T…<br />

#1 Wait until the last minute to roll out ELogs.<br />

ELogs will inevitably result in operational changes. Plan appropriately and<br />

ease into using the system. The less stressful the change, the fewer drivers<br />

you are likely to lose. With time, drivers realize they are still free to do their<br />

jobs as they see fit, as long as they make their pickups and deliveries legally.<br />

#2 Pick an ELD based on price alone.<br />

Select a system that meets ELD mandate requirements and is supported<br />

by a reputable, established provider that understands Hours of Service<br />

regulations and offers ELD installation support and ongoing customer<br />

service for you and your drivers. The cost of the system can be offset by<br />

compliance gains, increased productivity, awareness of fleet availability,<br />

and the reduction in inspection and audit-related fines.<br />

#3 Set unrealistic expectations for change.<br />

It will take time for drivers and supervisors to adjust to the accuracy of<br />

the electronic logging system and the speed at which violations will be<br />

discovered and reported. The ELD system itself may be compliant with<br />

the mandate but of itself, it will not make you compliant with the Hours of<br />

Service rules. Make sure all staff and drivers know who to contact if there are<br />

questions or concerns.<br />

DO…<br />

#1 Choose a reputable ELD provider.<br />

The most important criteria in selecting an ELD is that it meets the mandate<br />

requirements. You can find those on the FMCSA website. Also, having a<br />

system that can be easily updated to meet the technical standards in the<br />

ELD rule and future regulatory changes will help you avoid costly updates<br />

down the road.<br />

#2 Make sure all management is on board.<br />

Be prepared to manage resistance. Support from management is critical<br />

when dealing with “saboteurs” of the program. In extreme cases, these<br />

individuals will take active steps to derail the change. Make sure all<br />

managers are in agreement on disciplinary procedures for anyone at the<br />

company who does not follow protocol.<br />

#3 Conduct ELD training early and often.<br />

Train drivers, supervisors, and support staff on how to use the device<br />

during normal operations and roadside inspections, and what to do when<br />

problems occur. Both the operational and safety supervisors will also need<br />

to be trained on common problems that drivers encounter with the system,<br />

along with the solutions to those problems, to allow for quick resolution.<br />

For more ELD related articles, visit ELDGuidance.com.<br />

To learn about the J. J. Keller® Encompass® Fleet<br />

Management System with ELogs, see the ad in this<br />

publication or visit JJKeller.com/Elogs.<br />

Fleet Management System<br />

with ELogs<br />

TCA 2017 www.Truckload.org | Truckload Authority 13


SUMMER | TCA 2017<br />

Tracking The Trends<br />

One Voice<br />

Foreword and Interview by Lyndon Finney<br />

The date was Sunday, March 26. The setting was a meeting room at the Gaylord Resort and Convention Center in<br />

Nashville, Tennessee. The occasion was the 2017 Board of Directors meeting of the Truckload Carriers Association.<br />

American Trucking Associations President Chris Spear stood before TCA President John Lyboldt and the board of<br />

directors and said in the future, the two organizations need to become “one voice” on like-minded issues, noting that<br />

the two organizations did in fact see eye-to-eye on most everything. Working collaboratively, not separately, Chris<br />

Spear said ATA and TCA could impact real change. In an unprecedented interview in late May, the two leaders sat<br />

down with Truckload Authority for a wide ranging discussion of issues facing the industry today.<br />

TLA: Chris, John has shared with Truckload Authority some of your<br />

comments at the recent Truckload Carriers Association board meeting<br />

about collaboration between the two organizations on issues of<br />

like-mindedness. Could you share with TCA members a little more<br />

about those comments?<br />

Chris: I think it starts from understanding the mission of both associations.<br />

Both have enjoyed long-standing support from our membership<br />

and we do share membership just as we share common objectives.<br />

Those are mutually beneficial. In deference to where we want<br />

to go as associations with those shared objectives, the realities we are<br />

working with in Washington are dramatically different and that’s sort<br />

of a recent phenomenon. I think ATA and TCA had enjoyed for a long<br />

period of time the ability to share our views in Washington with key<br />

decision-makers in a manner where we didn’t really require the perspectives<br />

or support from others. That was a time when a lot of bills<br />

were debated and voted on and passed and there were a lot of opportunities<br />

to advance an agenda as a result of that environment. Today<br />

we have a very politically polluted Washington. There are few bills<br />

moving, a few votes being taken and so the ability to advance that<br />

same agenda has taken a different turn. That turn requires associations<br />

and voices coming together and working collectively to advance<br />

that agenda. So our mutually shared priorities I think really now<br />

depend on understanding this environment and having a healthy<br />

appreciation for how we leverage our two associations for the betterment<br />

of our industry and our memberships. So I think it’s just taking<br />

into account this new environment we are working in and really underscoring<br />

what we need to do to get results and I think we’ve done<br />

a very healthy job of taking that step back and really understanding<br />

what we need to advance, what’s important to our members, and<br />

how we work together to get it done.<br />

TLA: John, share your thoughts on what Chris has just expressed.<br />

John: Well said Chris. I would like to add that on the first Wednesday<br />

of every month we have an ATA-TCA leadership call that puts<br />

us all on the same page by sharing what we’ve been working on and<br />

how we are working together to best serve our memberships and the<br />

industry. This is a transparent relationship. This isn’t a relationship<br />

where we’re holding any cards back. So my reaction to Chris’s comments<br />

is that we have an excellent opportunity to meet Washington<br />

head-on in a collective and collaborative effort so that we can start to<br />

pass industry favorable language, F4A being one of them.<br />

TLA: Chris, you mentioned the environment in Washington. What’s<br />

it going to take to change that environment?<br />

Chris: Backbone. And I’m not referring to our two associations. We<br />

both have plenty of backbone. Our industry is not unaccustomed to<br />

a fight. We are not foreign to challenges as we’ve faced many of them<br />

over the past few decades. We’re ready. We know what our issues are<br />

and what we need to do to get things done. The backbone I’m referring<br />

to is a reference to key decision-makers in Washington not deciding<br />

necessarily what’s good for their party, but what’s good for the<br />

country, what’s good for our industry, and that’s what we are trying<br />

to make them understand. Our industry moves 70 percent of the<br />

14 Truckload Authority | www.Truckload.org TCA 2017


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surface freight in this country. One in 16 jobs is trucking. It’s the<br />

top job in 29 states. We help move 56 percent of the GDP. These<br />

are no small figures. And when you have 7.3 million employees<br />

in trucking spread across every state and every Congressional<br />

district, that’s something key decision-makers here need to understand,<br />

why it matters to the country and why it matters to<br />

them. So we have a responsibility and an obligation — John and<br />

I — to make sure we are leveraging those facts and that reality<br />

and educating these folks on what they need to do to advance an<br />

agenda that’s good for the country, and not just because it’s politically<br />

appealing. We understand the politics in this town, but<br />

it’s reached the point now where it is so caustic, so toxic that we<br />

are seeing the country suffer as a result of that and that is obviously<br />

directly impactful on our industry and on our members,<br />

their employees, their families and on our customers. So that<br />

context is very important for us to keep in mind and make certain<br />

that we give them the reasons in Washington to vote and put<br />

the country first.<br />

TLA: John, what’s your take on this environment?<br />

John: Chris has been in this environment for a long time and I<br />

have a few years under my belt, too. We have both worked during<br />

difficult times before and know what it takes to win. We were<br />

talking on the way to this interview about how challenging it is<br />

in Washington. However, I believe good politics requires solid<br />

facts, knowing what our industry brings to the table and repeating<br />

these as many times as you possibly can with everyone you<br />

talk to. Pulling trucking up through all of that is challenging and<br />

requires strategic and tactical approaches. Our associations have<br />

tremendous credibility and are well respected because we have<br />

members leading and working with us every day. The numbers<br />

Chris mentioned tell an incredible story about what trucking<br />

brings to the table. It defines who we are and the economic<br />

engine that trucking delivers to North America. I concur with<br />

Chris.<br />

TLA: Both of you have been in your current positions about the<br />

same length of time — about one year — and during that time<br />

both of you have made some significant changes in your organizations.<br />

So I want to ask each of you: Have those changes been<br />

made to help meet the challenges of the current environment?<br />

John: TCA’s direction is clearly defined and has been communicated<br />

numerous times to the membership as well as to the entire<br />

industry. I have tested this direction when I have been in front<br />

of groups and I have received positive confirmation from them.<br />

We are careful on how we use our resources by managing them,<br />

knowing that our members are counting on us to move things<br />

forward in shaping our future. At TCA, we are increasing our<br />

membership by increasing the value proposition of being a member<br />

by helping members increase their company’s worth and<br />

profitability, increasing the retention of their skilled workforce,<br />

and finally, being the voice of truckload. Yes, what we’ve done<br />

at TCA is in response to where the industry is today because being<br />

profitable in trucking is becoming more difficult. It will take<br />

embracing technology and really getting good at operational<br />

practices. Establishing a government affairs operation, developing<br />

the TCA profitability program and increasing our educational<br />

offerings are moving us into a position to deliver on our<br />

promises. Building the TCA brand also requires us to give back<br />

16 Truckload Authority | www.Truckload.org TCA 2017


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TLA: Chris, you’ve made some real significant changes.<br />

Chris: There’s a reason for those changes and it’s not just new leadership.<br />

Decisions were made by our board to go in a certain direction,<br />

and John and I agree we’re obligated as the leaders of our two associations<br />

to identify the issues and to take steps necessary to help<br />

advance those agendas. Sometimes that requires us working together;<br />

sometimes we’ll be very surgical in how we do it as individual associations.<br />

The lion’s share of our issues are pretty mutual and where<br />

they do align, coordinating and communicating is key. To do that I<br />

think you have to have a structure and a team of talent that gets up<br />

hungry every day wanting to win. This is not a country club. If people<br />

want to belong to a country club, there are plenty of them around<br />

to belong to in Washington or wherever they are from to socialize,<br />

network and so on. It’s about getting things done first and foremost.<br />

The networking that comes from being a member of our two associations<br />

is certainly beneficial. That’s not being displaced by the changes<br />

that have been made, but the alignment of the structure and the talent<br />

is all about ensuring that we are in sync with the issues that are<br />

going to matter to our memberships or impact them. There are priorities<br />

we want to get done — and we are very proactive in driving that<br />

outcome. There are also the block-and-tackle types of issues, things<br />

that come at us we are not advocating and we want to prevent, such<br />

as tolling and reengineering elements of the industry from federal to<br />

state. For instance, we’re in interstate commerce so we’d like a standard,<br />

a federal role, and when more states are stepping up and doing<br />

things that are adverse to that, if we don’t make adjustments in how<br />

our association is structured, staffed and aligned with those realities,<br />

then we aren’t doing our job on behalf of our membership. This is<br />

what they wanted to see when they brought John and me in. Work<br />

together, leverage your resources. Speak with one voice but also compound<br />

that voice with individual elements to it. So we amplify that<br />

individually and do it collectively. We align with issues, from traditional<br />

ones such as safety and infrastructure to autonomous technology.<br />

We are not going to sit back and let other modes of transportation<br />

dictate outcomes that are directly impactful on our members. We just<br />

won’t allow that to happen. So the alignment, the structure, the staff,<br />

the talent, all those changes, in our opinion, are needed to make certain<br />

we’re meeting our members’ obligations.<br />

TLA: John, what are the top issues facing the truckload sector today?<br />

Then, I’m going to ask Chris issues facing his membership today.<br />

John: There are a few concerns that we need to fix permanently<br />

which we can advocate on in a unified voice. As you know, nothing<br />

is fast about Washington. Being at the table in an effort to shape solutions<br />

and influence outcomes can keep things moving. To name a<br />

few, first and foremost is F4A; it is the most pressing issue we have<br />

before us. Infrastructure funding and approval, detention times,<br />

and reducing driver turnover are other pressing issues. Finally, the<br />

long-standing discussion on size and weight which TCA is actively<br />

working on as being the voice of truckload needs to come to a conclusion.<br />

Chris: Near term, F4A is something we’re both vested in for our<br />

members. It’s a shared issue and it’s one that we want to be sure we<br />

win — not just because of the impact it’s having on the membership,<br />

but because it’s part of the bigger problem we are starting to see<br />

where states, as I mentioned earlier, are stepping up and doing things<br />

that are completely adverse to our future, our ability to grow. If we<br />

have a patchwork of 50 different requirements it’s going to set our industry<br />

back, it’s going to set our economy and our nation’s ability to<br />

compete globally back exponentially. So F4A is sending a signal back<br />

to California and the Ninth Circuit and any other state that’s giving<br />

thought to replicating what they’ve done, to think twice. So it is<br />

18 Truckload Authority | www.Truckload.org TCA 2017


imperative that we not only win this issue and provide relief to our<br />

members but we also tamp down the inclination of some states to<br />

expand that purview. We believe we can get that done, hopefully by<br />

September, where we see a vote taken. Beyond F4A, tax and infrastructure<br />

are almost synonymous. We’ve been very engaged in that.<br />

We’ve been over to meet with the president, the vice president, the<br />

secretary of transportation and the five committee chairs and ranking<br />

members [of committees that impact transportation] on Capitol Hill.<br />

Our members have been very active and vocal on the importance of<br />

this issue and the importance of having dedicated, sustainable funding<br />

for infrastructure that isn’t coming from competitive sources,<br />

such as discretionary monies. So we want to shore up the trust fund<br />

and have good roads and bridges. Tax reform is part of that because<br />

if you are going to do a 10-year, trillion-dollar bill it’s going to have<br />

to be funded out of some sort of tax reform.<br />

I think the third issue would probably be trade. We have a different<br />

president, a different path being taken with respect to trade. Trucking<br />

moves 76 percent of the NAFTA surface freight; we move 83 percent<br />

of the cross-border traffic with Mexico and Canada is our largest<br />

trade partner in the world. So trucking would be the first to feel any<br />

dramatic change in the relationship we have with our trade partners<br />

to the north and south.<br />

TLA: The president has said he’s going to renegotiate NAFTA. If he<br />

doesn’t get what he wants, he’s going to drop it. Let’s assume he’s<br />

going forward and he’s intending to get it done. From a truckload<br />

perspective, what is there that needs to be changed in NAFTA if anything?<br />

John: I don’t really see much that needs to be changed in NAFTA.<br />

Adjustments in some areas could benefit trucking and they should be<br />

in the forefront of discussions.<br />

Chris: I think less than more. You have to separate some of the campaign<br />

rhetoric from reality. The reality is that if you make changes to<br />

that agreement that are too dramatic, as I said, our industry would be<br />

the first to feel it and it will be impactful. John and I were just down<br />

on the border in Laredo. It’s the biggest border crossing with 16,000<br />

trucks a day. We met with Customs and Border Patrol (CBP); we met<br />

with local trucking companies [and with] people that pretty much are<br />

in the thick of it, if you will. And they understand the importance of<br />

it. I think there are several elements beyond having a good, free, fair<br />

and sound trade agreement. I think the framework is there. It may<br />

be a little dated since it was enacted in 1994. It could be upgraded<br />

maybe in environmental and labor standards. However, I think the<br />

framework is still very much intact, as John and I have noted. There’s<br />

a security element to our borders that has a trade component. But<br />

also as we saw with CBP, security is very integral. They’re screening<br />

everything. You can just imagine with that many trucks coming<br />

across the border, the mandate they have is absolutely massive. And<br />

I would say beyond that is infrastructure — you’ve got to have good<br />

infrastructure to handle that kind of throughput to and from [the border]<br />

— and they certainly didn’t. You saw that firsthand. There was a<br />

lot of backup. We saw a lot of traffic. And fourth, I think tax policy is<br />

really key in terms of how that’s built into the trade agreement. Those<br />

are important elements to it. Those four things right there are kind<br />

of in a constant churn and we witnessed that together by touring the<br />

border. And I think we got a firsthand view of what needs to be done<br />

and what shouldn’t be done.<br />

TLA: John, what was your takeaway from that visit?<br />

John: Chris said it well. I would like to add we also were impressed<br />

with the members and leadership of the newly formed Laredo Motor<br />

Carriers Association. I had no idea of the number of trucking<br />

companies that have established themselves in the Laredo area. It is a<br />

hotbed for trucking. The association has grown quickly, has a bright<br />

future and we look forward to working together to tackle the issues<br />

at hand. The dedicated professionals at the CBP have a really big job<br />

to do and they do it very well. Our visit with them shed light on the<br />

TCA 2017 www.Truckload.org | Truckload Authority 19


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fact that the things we are working on in Washington will help to<br />

keep freight moving safely and efficiently. Many of the drivers crossing<br />

the border were driving power units that were what, about 20<br />

years old, Chris?<br />

Chris: If not more.<br />

TLA: Backing up a little bit — and I’ll say this, since I’ve been in<br />

trucking, this is my third presidential transition — it seems as though<br />

the bills and the regulatory process are the slowest of any of those<br />

years. That said, the president says two for one. We’ve got to kick<br />

out two regulations for every new one. How can that happen in an<br />

environment in trucking where everything, just about, relates back to<br />

safety?<br />

John: That’s a good point, these actions need to be considered carefully<br />

and comprehensively when it comes to safety, and the same<br />

goes for anything else that might be reviewed.<br />

Chris: The two-for-one executive order’s going to be really tough to<br />

enforce, literally. It’s already receiving some court challenges. The<br />

two-for-one doesn’t need to be all trucking. You could take two rules<br />

unrelated to trucking in exchange for one that is trucking. It’s kind of a<br />

mix and match as to how that would work. It’s not as easy as it sounds.<br />

The administration has no authority to go in and just wipe the slate<br />

clean. To take down a regulation you have to propose another rule to<br />

pull it down. And in that new proposal you have to explain why the<br />

current one needs to be pulled down. And it can’t be just because you<br />

don’t like it. It has to be based on fact, science, data, and in our world, a<br />

lot of it is safety. You’ve got to have very strong justification because if<br />

you don’t, it’s going to get challenged in court; it will get tossed. Going<br />

in willy-nilly and just saying you want to take stuff out, it doesn’t work<br />

that way. So it sounds better than it is, in practice. I think it’s a lot more<br />

complicated and that’s probably why the courts would be going back<br />

to take a look at this to see if it’s permissible, if it violates the Administrative<br />

Procedures Act. These are things that are going to come under<br />

a lot of scrutiny. As far as our view of it, we’re not afraid of regulation;<br />

we just want good sound regulation, regulation we can understand<br />

and comply with. When you pump out a rule like the July 2013 Hours<br />

of Service changes with back-to-back 1 a.m. to 5 a.m. periods and the<br />

168 hours, this is based on a too-weak sleep study in a graduate school<br />

up in Washington state. Now if you’re going to change the regulatory<br />

framework for an entire industry, do your homework, OK? Do it right,<br />

do it in a way that our industry can understand and comply with. That<br />

wasn’t the case here and we bounced it. It took us three years but we<br />

got it done. So we’re not afraid of a fight; we’re not afraid of regulation.<br />

We just want good, clear regulation and want to be in the process itself,<br />

so include us. Let us help you with it. We’ll tell you what works and<br />

what doesn’t work. We could have told you from the beginning that it<br />

wasn’t going to work.<br />

John: Chris, I agree with you. Being involved by being at the table to<br />

arrive at solid solutions is a business imperative. Instead of looking<br />

comprehensively at how to move freight safely and efficiently across<br />

North America, in the past we’ve had patchwork solutions put in<br />

place that do not take into consideration all of the facts that are necessary<br />

in arriving at a forward-thinking decision.<br />

TLA: What are some of the common issues that TCA and ATA are<br />

aligned on?<br />

Chris: I think we named some of them right here. F4A, obviously, out<br />

of the gate. That’s a near-term goal that we both share for our members.<br />

I think on infrastructure we’re perfectly aligned. Tax reform<br />

impacts our members almost identically. Trade and some of these<br />

broader, bigger issues are very encompassing of both ATA and TCA,<br />

and down to a very surgical issue like F4A we see a lot of alignment.<br />

By segmentation you always see some areas of specialty where an<br />

issue becomes more of a priority to say, truckload, than it does to a<br />

broader federation like ATA, in which we represent not just truckload<br />

but LTL and flatbed, tank trucks and so on. Tankers obviously led<br />

the charge on wetlines; it’s an issue that’s specific to them and they’re<br />

going to drive and advocate that as well as the TWIC card issue, and<br />

having that as the go-to identification for entering sensitive sites. And<br />

they’re the best equipped to tell that story. Truckload does the same<br />

thing in areas that are specific to their segment. So when we draw<br />

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distinctions, it’s not that we don’t have commonality or support for<br />

TCA and what it’s advocating, it’s just that TCA is better positioned<br />

to represent that position for truckload than ATA is as the entire industry<br />

association. And that works very well. As long as John and<br />

I and our teams are working together and understand what those<br />

differences are, we have a healthy appreciation for that and we staff<br />

and align accordingly and I think we have a pretty good working relationship<br />

to make sure there’s no channel conflict between the two.<br />

John: Well said, Chris.<br />

TLA: Obviously F4A is a big issue, but let’s name two more.<br />

John: Well, Chris did: Infrastructure and tax reform.<br />

TLA: I’m sorry, I didn’t make myself clear. I meant from a regulatory<br />

or legislative perspective: hair testing, entry-level driver training,<br />

safety fitness determination etc.<br />

John: As I had said earlier, a comprehensive approach to improving<br />

safety and efficiencies could generate a larger return on investment<br />

than we have experienced in the past. All of these fall into the same<br />

bucket. On hair testing, if we can figure out how to do things to produce<br />

better results, why wouldn’t we embrace it? We do support it.<br />

Chris: Yes, we advocate it; we proposed the language that got into the<br />

FAST Act that mandates it. We were just over at the Department of<br />

Health and Human Services with the chief of staff and Secretary [Thomas]<br />

Price. We were waiting on their piece of the rule, which has to come<br />

next before DOT can complete the over-arching rulemaking, and we’re<br />

pushing them to get that done. They’re six months behind schedule so<br />

we’re very engaged with them on that. Because in the meantime, the<br />

handful of carriers out there, and they’re largely truckload, that are doing<br />

hair testing and are advocating it as government policy, are having<br />

to pay for both. Paying for urinalysis and hair. This isn’t a mandate. It’s<br />

just simply giving carriers the option of choosing one versus the other.<br />

And some of these carriers are spending in excess of a million dollars a<br />

year to do the hair testing on top of the urinalysis. It just seems to John’s<br />

point, that if there’s a better cost-effective way to do it that gets good<br />

results, this obviously seems to be it. We’re a big proponent of it. We’re<br />

going to keep pushing hard to get this issue done and hopefully we will<br />

see some results in the coming weeks that are good indicators that these<br />

carriers will have the relief that they sought.<br />

TLA: Would you both agree that hair testing got caught up in that<br />

different environment you talked about earlier?<br />

Chris: Well it has and it hasn’t. I don’t think this is subject to the<br />

political pollution as much as it is bureaucracy. You have two departments<br />

that have two different views. You have DOT that will administer<br />

it, but it can’t administer it unless it has the HHS protocol that<br />

allows it, and the HHS piece, and they don’t talk to one another very<br />

well. They don’t coordinate well. Even if they’re mandated by law to<br />

do it, you’re still seeing some trepidation on the part of HHS to actually<br />

proceed with it. I think the support exists at DOT, but HHS has<br />

always been a bit resistant to this. I think we’re really talking more<br />

about bureaucratic headwind than political headwind, because we’ve<br />

had the Hill beating them up left and right to get it done. They are<br />

required by law to do it. Yet it’s still slow. I think it is bureaucracy.<br />

TLA: Last question. Let’s talk about the economy. As leaders in your<br />

organizations, where do you see us going the rest of the year? I know<br />

that tonnage has been down the last two months. I think even Bob<br />

[Costello, ATA chief economist] said he was a little bit surprised.<br />

What about the economic outlook, John?<br />

John: The biggest opportunity for any trucking operation is improving<br />

overall operations. This is the very reason why we will be introducing<br />

the TCA Profitability Program in the ensuing weeks. It has<br />

been a challenging first two quarters, without question. However,<br />

there is still time to close the year stronger than it started. The combination<br />

of political, regulatory, and economic factors will play a role as<br />

we move into the third quarter. One example will be the overall positive<br />

effect of the adoption of ELDs. Consumer confidence is down<br />

slightly; however, it is still high. We believe trucking has a bright future,<br />

especially if we can pass an infrastructure bill that makes sense<br />

which in turn could fuel strong growth.<br />

Our associations have dedicated members and staff who work hard<br />

to ensure we are focused on relevant and timely initiatives to improve<br />

the trucking business model.<br />

22 Truckload Authority | www.Truckload.org TCA 2017


Chris: I think we need to look at it not as a matter of a few weeks’ time,<br />

but more in a year, minimum. Bob’s projections still suggest that the<br />

indicators are going to be strong. Forecasts look positive. I think we<br />

have a surplus of equipment out there; it’s obviously impactful. But<br />

we’re seeing some good indicators that suggest that carriers should<br />

have a much better year over last year. Having said that, more of it depends<br />

on delivering a good infrastructure bill. That could be huge for<br />

our industry. A tax bill, cutting our corporate tax rate from 29 percent<br />

to 15 percent as the president proposed. That’s a lot of cash going back<br />

into carriers’ pockets that they can invest in new equipment, driver<br />

pay, training and safety enhancements. These are all good things and<br />

that money, by the way, all belongs to the carriers. It doesn’t belong<br />

to the government. So letting people have more of their own money<br />

to do things that they choose as a priority is key. I think making sure<br />

trade is done in a thoughtful way and not in a way that upsets the<br />

applecart would be good for our industry. Those deliverables could<br />

be very impactful. And then I think beyond that, we look five, 10, 15<br />

years out. What is this industry going to need to look like, what’s it<br />

going to need to align with? Workforce development is huge. Driver<br />

shortage projections, technician shortage projections: We need good<br />

sound policies in place to attract talent and retain it and do it with the<br />

help of our government, not as a headwind but in collaboration with<br />

our industry for the backbone of the economy. If we don’t have talent<br />

to fuel this sector, the economy is going to hurt. So we need support<br />

from the government, not more headaches. And I think lastly beyond<br />

workforce development is technology itself. I think [with] autonomous<br />

[vehicles] you’re really talking about driver-assist technology, not<br />

driverless. That’s a bunch of hype as far as we’re concerned. A bunch<br />

of garbage. It creates more anxiety in our industry than truth. And we<br />

need to deal with truth and data and not emotion. We’ve had enough<br />

of that with the anti-truck crowd. Those people would have us move<br />

freight by donkey cart if they had their way. The fact is, we are the<br />

dominant force of the economy and we’re pro safety, we’re pro jobs,<br />

we’re pro growth. We’re some of the most caring, compassionate, patriotic<br />

people in the country. And if we’re going to get things done for the<br />

benefit of the country, the government’s got to start working with us<br />

and doing it in a data-driven way that’s based on good, sound policy<br />

and not on emotion and rhetoric. That’s the best way to pave a good<br />

economy for the future.<br />

TLA: Anything you’d like to add?<br />

John: Teamwork can produce a highly competitive advantage for those<br />

who embrace it, leverage it and live it.<br />

Chris: We’ve got a good story to tell and doing it together when it’s<br />

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Now accepting:


W i t h U . S . S e n a t o r T o m C o t t o n<br />

By Lyndon Finney<br />

To say Tom Cotton runs in the fast lane might be considered an understatement.<br />

To wit:<br />

He graduated from Harvard College in three years.<br />

He currently holds the title of fastest senator and the second-fastest<br />

member of Congress as a result of his placing first among senators in the<br />

annual ACLI Capital Challenge, an invitational track race for teams representing<br />

the legislative, executive, and judicial branches of the federal<br />

government and the media.<br />

Cotton also won the race as a member of the House of Representatives.<br />

He possesses a rapid-fire but succinct and understandable speaking<br />

pattern that allows him to say far more in a 30-minute interview than<br />

most people can say in an hour.<br />

He had a short but successful military career, which included service<br />

in both Iraq and Afghanistan. He earned the rank of captain and received<br />

several awards, among them the Bronze Star Medal, which is awarded to<br />

any person who distinguishes himself or herself by heroic or meritorious<br />

achievement or service not involving participation in aerial flight and<br />

occurring after December 6, 1941, while serving in any capacity with the<br />

Armed Forces of the United States.<br />

He zipped through his first race for the House of Representatives in<br />

2012 and two years later left incumbent Democratic Sen. Mark Pryor in<br />

the dust in his initial run for the Senate.<br />

And, there are many who think Cotton won’t stop running until he<br />

reaches the White House.<br />

So, who is this 6-foot 5-inch Arkansan who was labeled a “conservative<br />

superstar” in a 2014 edition of The Atlantic, a magazine covering news<br />

and analysis on national and international politics, business, culture,<br />

technology and life?<br />

He was born on May 13, 1977, in Dardanelle, Arkansas, in the shadow<br />

of Mount Nebo, which rises 1,350 feet and offers sweeping views of the<br />

Arkansas River Valley.<br />

More than its height, the mountain is famous for its annual fried<br />

chicken festival.<br />

Cotton isn’t the only Dardanelle alumnus with a famous name.<br />

Professional golfer John Daly, known for his colorful attire and who<br />

has won both the PGA Championship and the British Open, hails from<br />

Dardanelle.<br />

So do Jim R. Caldwell, ironically the first Republican to serve in the<br />

Arkansas State Senate in the 20th century; and James Lee Witt, former<br />

director of the Federal Emergency Management Agency.<br />

Cotton grew up on the family farm and says his childhood days were<br />

wonderful.<br />

“It’s a great place to grow up and a great place to have kids,” he told<br />

Truckload Authority. “It was a place where when I was a kid, you could<br />

leave your home early in the morning on your bike and not come back<br />

until sunset. The only trouble you had to worry about was the trouble<br />

you got into because a neighbor or church member or family friend was<br />

likely to call your parents and report back on you.”<br />

His father, Len, and mother, Avis, are both Arkansans and met while<br />

attending the University of Arkansas, Fayetteville.<br />

They were, in Cotton’s words, “salt of the earth people.”<br />

His father is a Vietnam War veteran active in community affairs and<br />

his mother was a school teacher and later a principal.<br />

“She was a resident expert on all the [neighboring] families by the<br />

time she was done,” Cotton says, since she taught her students’ children<br />

and their grandchildren. “I couldn’t have asked for a more blessed upbringing.”<br />

What Cotton probably didn’t realize then was the impact his conservative<br />

upbringing would have on his political philosophy and his eventual<br />

path to Congress, even though politics was pretty much a taboo subject<br />

around the Cotton household.<br />

“I grew up in a traditional, conservative household not necessarily<br />

conservative politically, but a conservative upbringing where at an early<br />

age you were taught to take responsibility, take initiative, be disciplined,<br />

have a strong work ethic, love your country and do what you could to<br />

support it,” Cotton said. “Again, that was not a political upbringing, but<br />

I think a lot of those principles my parents instilled in me led naturally<br />

into military service in a time of war and ultimately into public service, as<br />

well.”<br />

Two things happened during high school that would also impact his<br />

future.<br />

First, Dardanelle High School had a strong junior ROTC program, and<br />

since Cotton’s father was a Vietnam veteran, he developed a high respect<br />

for the military.<br />

Second, Cotton started reading the front page of the Arkansas Democrat-Gazette<br />

at age 15 in 1992 when Bill Clinton was running for president.<br />

“Maybe that was because when you first start taking history you get<br />

interested in biography. Maybe it was because my governor was on the<br />

front page. So that was really the first time I took notice of politics. 1992<br />

was exciting for me just as it was for many Arkansans.”<br />

But once Clinton was in office and introduced his Democratic agenda,<br />

24 Truckload Authority | www.Truckload.org TCA 2017


Brought to you by<br />

Cotton came to the realization that “I must be a Republican.”<br />

Cotton would go on to graduate from Harvard University with bachelor’s<br />

and law degrees, but what happened during his final year of law<br />

school changed the world and Tom Cotton.<br />

“It was the 9-11 attack. I was in my last year of law school. I thought I<br />

was going on to be a lawyer and live a long life in that field, but those attacks<br />

changed a direction in my life and I knew from that point forward I<br />

didn’t want to practice law anymore,” he said. “I wanted to join the Army<br />

and go to the front lines. I worked a little while to pay off my law school<br />

loans, but as much as anything else to get myself physically and mentally<br />

ready to join the Army and go to war.”<br />

In 2005, Cotton enlisted in the United States Army.<br />

In May 2006, he was deployed as part of Operation Iraqi Freedom to<br />

Baghdad, where he was a platoon leader with the 101st Airborne Division.<br />

In October 2008, he headed to Afghanistan.<br />

There were several close calls.<br />

“I drive safely on the roads these days because I feel like I left eight of<br />

my nine lives in Baghdad,” he said.<br />

His military career over near the end of the decade, Cotton headed<br />

home but had no inkling he would become a politician.<br />

He laid his law degree aside and joined McKinsey & Company, an<br />

advisor and counselor to many of the world’s most influential businesses<br />

and institutions.<br />

“I knew coming out of the Army I did not want to go back to law,” he<br />

said. “There’s nothing wrong with law; I just found from my time in the<br />

Army I enjoyed being part of a bigger team and working together, which<br />

is something that doesn’t always happen in law, especially as a junior<br />

lawyer. McKinsey gave me the chance for some business experience and<br />

to be exposed to main business functions like strategy and finance and<br />

marketing and operations, and my goal was to marry up my experience<br />

in the Army and my business experience but as things happen, circumstances<br />

kind of intervened.”<br />

In 2011, when results of the 2010 census were released, Yell County,<br />

Arkansas, Cotton’s home county, was moved from the Second Congressional<br />

District, which had just turned Republican with the election of Tim<br />

Griffin, to the Fourth Congressional District, where the sitting Democrat,<br />

Mike Ross, decided not to run for re-election in 2012.<br />

“Because the transition in Arkansas politics [from Democratic domination<br />

to a Republican majority] had occurred very quickly, I felt the district<br />

was ripe for the taking in a general election,” Cotton said.<br />

At the time, he was already planning to transition out of his job at<br />

McKinsey because at the consulting firm, there were no operational responsibilities<br />

and Cotton was looking for an opportunity to lead an organization.<br />

Election to the House would give him “a new and different kind<br />

of platform to serve the country again and hopefully do some important<br />

things” as a leader in Congress.<br />

In the 2012 general election, Cotton bested Arkansas State Sen. Gene<br />

Jeffress 59 percent to 37 percent.<br />

After two years in the House, Cotton decided he wanted to move to<br />

the upper chamber, but to do so he would have to take on an incumbent<br />

Democratic senator with a good reputation and pedigree, Mark Pryor,<br />

son of former Arkansas Governor and U.S. Senator David Pryor.<br />

“I wouldn’t have taken a shot at it if I didn’t think I was going to win.<br />

A lot of people suggested in my first term [in the House] that I should<br />

wait my time, but I decided that some of the problems we were facing<br />

didn’t really have much time to wait,” Cotton said. “When I was in the<br />

House I saw the biggest challenge that we faced in making progress aside<br />

from President [Barack] Obama was the Senate, particularly the way<br />

Senator Harry Reid was running the Senate as majority leader. And if I<br />

wanted to make progress on some of the issues on which I’d campaigned,<br />

we needed to win the Senate and if we didn’t win Arkansas, we weren’t<br />

going to take control of the Senate.”<br />

From his earliest days as a member of the House, Republican senators<br />

began to notice the impact Cotton was making.<br />

“They asked me to consider a campaign,” Cotton recalled. “I didn’t<br />

say I’d do it, but they asked me not to foreclose it. So [after] about six to<br />

eight months of observing the way Congress was working and especially<br />

the way the Senate was working — or not working — and after talking<br />

with my family, including my girlfriend who is now my wife, I decided<br />

TCA 2017 www.Truckload.org | Truckload Authority 25


ought to you by The trucker news organization<br />

get your daily industry news at thetrucker.com<br />

The road to<br />

protecting<br />

your fleet<br />

in the summer of 2013 it was time to take the plunge. I wanted to accomplish<br />

certain things in public office and it was going to be hard to do so if<br />

the Senate remained in Democratic hands.”<br />

In the 2014 general election, Cotton defeated Pryor 56.5 percent to<br />

39.5 percent.<br />

As he crisscrossed Arkansas during the campaign, the state’s residents<br />

were not shy about telling Cotton what was troubling them.<br />

“They were very worried about the state of the economy, about high<br />

rates of unemployment, about stagnant wages for working class Arkansans<br />

on jobs in Arkansas as well as in their own communities,” he said.<br />

“They were very worried about the state of our military because of the<br />

dramatic budget cuts it had seen, particularly since so many Arkansans<br />

are veterans, themselves, or active duty service members, and they<br />

wanted a change in direction.”<br />

Those concerns continued the last two years of the Obama administration.<br />

Will Donald Trump give Arkansans and other Americans the answers<br />

they are looking for?<br />

“Well, we certainly put an end to some of the worst excesses of what<br />

was happening under the Obama administration,” Cotton said. “Now<br />

we have an administration that is on the side of working families and<br />

businesses trying to get our economy growing again and increasing<br />

wages for working folks. You also have an administration that’s committed<br />

to enforcing our immigration laws as opposed to looking the other<br />

way and even trying to grant amnesty to illegal immigrants. Also, you<br />

have an administration that’s willing to work with Congress in both<br />

parties to try to increase defense spending and make sure our military<br />

is well-prepared to meet the threats that our country faces. There are<br />

a lot of challenges that we still have left in Congress to pass legislation<br />

on some of these issues, but it’s the difference between night and day<br />

between having the Obama administration breathing down the necks of<br />

Arkansas businesses and working families and the Trump administration<br />

trying for the rising tide that will raise all boats.”<br />

Transportation Insurance<br />

Specialists Since 1970<br />

888-313-3226 www.ecbm.com<br />

Offices in PA & MD<br />

Sen. Tom Cotton finished<br />

the 2016 ACLI Capital<br />

Challenge 3-Mile Team<br />

Race as the fastest<br />

member of the Senate<br />

26 Truckload Authority | www.Truckload.org


Sen. Tom Cotton and his son<br />

Gabriel, 2, attend a Senate Armed<br />

Services Committee last April 27.<br />

Kids were on the Hill for Take Our<br />

Daughters and Sons to Work Day.<br />

Trump’s election might have surprised many Americans, but Cotton<br />

was not one of them.<br />

“Donald Trump saw some things that pretty much every other candidate<br />

did not see, whether it was on the Republican stage or against<br />

Hillary Clinton,” Cotton said. “He understood that many Americans<br />

had grown increasingly alienated from the establishment in both parties.<br />

They had gotten a lot of things wrong on immigration, trying to consistently<br />

grant amnesty to illegal immigrants, trying to expand legal immigration<br />

at a time when so many people were out of work or hadn’t had<br />

an increase in their weekly take-home pay.” On terrorism, he saw more<br />

and more threats in the United States and in Europe and realized “there’s<br />

too much political correctness or too great a willingness to accept those<br />

threats as a new normal, a kind of a new, ordinary course of business for<br />

our national life. If there’s anything you can say about Donald Trump, it’s<br />

that he doesn’t do business in a traditional way.”<br />

But with partisanship reigning strong in Congress, can a Republican<br />

president move the needle?<br />

“The Democrats on Capitol Hill are still reconciling themselves to<br />

Donald Trump’s victory, I can tell you that,” Cotton said. “So, it is highly<br />

partisan right now. My suggestion to them is they acknowledge that Donald<br />

Trump won, and learn the right lessons from Hillary Clinton’s failure,<br />

but in the meantime, try to work together where we agree to move the<br />

country forward. There’s no reason why Republicans and Democrats<br />

can’t agree, for instance, to increase our defense budget or can’t work<br />

together to reform job training. There’s no reason we can’t work together<br />

to reform legal immigration to ensure we’re getting the very best, highly<br />

skilled, well-educated immigrants, which we need in this country, and<br />

not, you know, the flow of unskilled and low-skilled immigrants that are<br />

hurting working class wages.”<br />

Is it a matter of ego that Democrats seemingly aren’t willing to work<br />

closely with Republicans?<br />

“I think they’re still so shocked that Donald Trump won, and I think<br />

Donald Trump gets under their skin in so many ways, including his policies,<br />

his rhetoric, his tone and his style,” Cotton said. “The Democrats<br />

have a hard time accepting that he’s president, I will simply say. And<br />

I understand. I was disappointed when Mitt Romney lost in 2012, but<br />

the American people spoke. They elected Barack Obama. I opposed him<br />

where I had to, and I tried to get his support where I could. I have the<br />

same approach with Donald Trump. I support him where I agree and I<br />

try to change his mind where we don’t. Of course, I happen to agree with<br />

Donald Trump a lot more than Democrats do. The shoe was on the other<br />

foot under Barack Obama, but you didn’t see the kind of immediate and<br />

almost uniform opposition to Barack Obama in 2009-2010 that you saw in<br />

the early days of the Trump administration.”<br />

Cotton is a frequent guest on news shows, and as such, people are<br />

perking up to his wit and wisdom.<br />

He’s candid about any topic you want to discuss with him.<br />

During the interview, he tied trucking to the infrastructure.<br />

“Right now, we’re working on the details of the infrastructure,” Cotton<br />

said. “The Congress will obviously put its own stamp on any infrastructure<br />

plan, but it’s good for the administration, through the White<br />

House and Department of Transportation and some of the other agencies<br />

and departments, to work hand-in-glove with Congress. This is another<br />

example of how we could get bipartisan support in Congress. You typically<br />

do on infrastructure bills and I hope we can. It may not be something<br />

that happens in 2017, given our crowded agenda, but I do think it’s<br />

something that can happen in the first half of 2018.”<br />

Trucks, of course, are among the biggest users of the infrastructure.<br />

“Trucking is a vital industry. I mean, you can go into any store in<br />

almost any town across Arkansas, across this country, and much if not a<br />

majority, of what you find there at one point or another was on a truck,<br />

whether it was a long-haul truck or a short-haul. So, the trucking industry<br />

is vital for our economy. It’s also vital for our workforce. Millions of<br />

Americans make their living through the trucking industry, and that’s<br />

one reason why it’s so important that associations like yours represent<br />

them to elected representatives and to the American people so they are<br />

reminded of just how essential trucking is to our society.”<br />

Trucking is high among the industries that believe there are far too<br />

many federal regulations and that the country is overregulated, especially<br />

after the Obama administration.<br />

“That’s one of the big successes, I would say, in the opening days of<br />

the Trump administration, following the Obama administration, is that<br />

we’ve either through congressional action or through the president’s<br />

executive action, repealed dozens of regulations that have an impact in<br />

sums of tens of billions of dollars on our economy. There’s a lot left to<br />

be done. We should try to permanently reform our regulatory policy so a<br />

future administration can’t impose such big costs on our economy again.<br />

I think one of the untold stories of the early days of the Trump administration<br />

is the effort at regulatory reform.”<br />

So, these are the words of Tom Cotton barely two years into his sixyear<br />

term and now a frequent guest on network news programs and<br />

Sunday talk shows.<br />

He’s gaining notoriety throughout the country.<br />

In just over two years from now, the presidential race will heat up<br />

again, and Cotton has already campaigned in Iowa, declaring Americans<br />

“ready for that new beginning” there recently, walking a delicate path<br />

by raising his national political profile at a time of turmoil for Trump’s<br />

White House.<br />

To which he will only say, “I am looking forward to running for reelection<br />

in 2020 if the people of Arkansas will send me back to the Senate.”<br />

TCA 2017 www.Truckload.org | Truckload Authority 27


SUMMER | TCA 2017<br />

A Chat With The Chairman<br />

28 Truckload Authority | www.Truckload.org TCA 2017


Sponsored by<br />

Never<br />

Enough Time<br />

Foreword and Interview by lyndon finney<br />

Perhaps the most famous song the late Jim Croce recorded was “Time in a Bottle,”<br />

written as a prelude to the birth of his yet unborn son. The first verse goes something like<br />

this: “If I could save time in a bottle, The first thing that I’d like to do, Is to save every day,<br />

’Til eternity passes away, Just to spend them with you. …” Another verse says: “But there<br />

never seems to be enough time, To do the things you want to do, Once you find them, I’ve<br />

looked around enough to know, That you’re the one I want to go, Through time with.” As<br />

you read this, TCA Chairman Rob Penner will have completed a fourth of his one-year<br />

term and we’re sure he’d like to bottle his time so he could spend more time working to<br />

continue to build more value into the membership experience at TCA. We’re also sure<br />

Chairman Penner would agree there never seems to be enough time to do all he hopes to<br />

do. In this second Chat With the Chairman, Rob talks about accomplishments during the<br />

first two months of his chairmanship, about what lies ahead this summer and about one of<br />

the hottest topics in trucking today: F4A.<br />

TCA 2017 www.Truckload.org | Truckload Authority 29


Sponsored by Mcleod software<br />

McLeodSoftware.com | 877.362.5363<br />

As we conduct this interview, you’ve just completed your second<br />

month as chairman. Share with our readers what that experience<br />

meant to you and some of the things you’ve accomplished during<br />

that short time frame and share with us what you will be working<br />

on in the next couple of months.<br />

It’s a real privilege to work alongside the TCA staff and truckload’s<br />

top leaders to help improve our industry. This industry has<br />

provided for me, for my family and for our business and it is important<br />

to give back. It is also important to me that I leave the<br />

association in better condition than when I arrived here. We have<br />

great people and we are focusing them on meaningful initiatives<br />

and leveraging their capabilities better than ever before. It’s been<br />

busy. The staff is working diligently on their budgets and business<br />

plans and we are putting the final touches on the annual officers<br />

meeting, scheduled to take place in July. At that meeting we will<br />

work with staff on shaping the direction of TCA and approving the<br />

2018 budget and priorities of the association. Our fiscal year end<br />

is September, so there is urgency in getting that done. From a<br />

TCA profitability and member benefit standpoint, past Chairman<br />

(Russell) Stubbs asked me to chair a benchmarking task force<br />

late last year. The task force made several recommendations that<br />

[President] John Lyboldt and staff have taken to heart. The result<br />

is a truly comprehensive value-driven program that will offer an<br />

entire suite of services. We will expand our best practice groups<br />

and we are developing full digital composite benchmarks and developing<br />

education and training designed to support managing a<br />

better business and relevant, timely subjects and content, carrier<br />

consulting, certifications and more. We are looking to roll out the<br />

new and improved program by July/August of this year. We are<br />

in the process of finalizing the strategic task force that’s been<br />

charged with the development of a position paper that provides<br />

the background, color and context of what TCA is all about … what<br />

we stand for and where we are trying to go.<br />

The TCA Safety and Security Division annual meeting was last<br />

month in Phoenix. As safety is priority No. 1 among TCA members,<br />

share with us the high points of that meeting and what TCA members<br />

learned and how that will improve safety among carriers.<br />

One of the most important aspects that this meeting conveyed<br />

was that our industry is at the precipice of what many believe will<br />

be a data explosion in the coming years and whether or not we, as<br />

an industry, are prepared to handle it. The upcoming compliance<br />

date for ELDs will generate data like we have never seen before<br />

in an effort to support what we have been saying anecdotally for<br />

30 Truckload Authority | www.Truckload.org TCA 2017


Sponsored by Mcleod software<br />

McLeodSoftware.com | 877.362.5363<br />

years, that detention of drivers is an industrywide problem and we<br />

must take appropriate actions to deal with it. Data has also become<br />

more prevalent in the world of making our drivers safer. Just walking<br />

the exhibit floor, one will realize that the amount of data generated<br />

by our industry, the tools we use and the performance of our drivers<br />

aids in painting a picture that will improve the safety outcome of<br />

our driving force, whether it be entry-level drivers or our seasoned<br />

veterans that require refreshment training. Transportation Secretary<br />

Elaine Chao has said that President Donald Trump’s plan to improve<br />

the nation’s infrastructure will be released in the very near future.<br />

The $1 trillion program will have to be accomplished despite Department<br />

of Transportation budget cuts. The president is not getting the<br />

support he’d hoped for, including the American Road & Transportation<br />

Builders Association, which conducted an analysis of the plan saying<br />

“when all elements of the proposal are combined, it is possible that<br />

the proposed infrastructure initiative will actually result in less, not<br />

more, federal investment in infrastructure.”<br />

Do you believe efforts to improve the<br />

infrastructure will become reality<br />

or will it remain the myth it has seemingly<br />

become? Where does TCA stand on<br />

the president’s plan and his willingness<br />

to increase the federal gas and<br />

diesel tax to help fund these improvements?<br />

TCA supports an increase in fuel<br />

taxes, coupled with indexing, so that<br />

the Highway Trust Fund can become<br />

sustainable. Our infrastructure needs<br />

improvements so that our industry can<br />

continue to haul the nation’s freight in<br />

an efficient and economic manner. In<br />

saying that, it is prudent that our Congressional<br />

leaders explore any and<br />

every way in which this can be done.<br />

A national fuel tax increase represents<br />

the easiest implementable way we<br />

can raise funds to support such a tremendous<br />

and dynamic initiative. You<br />

will already find this process being put<br />

forward at the state level, so it would<br />

naturally make sense that it be done<br />

federally as well. An issue with the<br />

budget as proposed is that it calls for<br />

increased tolling. TCA members are<br />

not in favor of tolling as a primary way<br />

to fund infrastructure. If toll financing<br />

is inevitable, TCA has a policy in place<br />

that outlines important attributes that<br />

a toll plan should adhere to.<br />

Now that the budget has been released, Congress will have to pass an<br />

appropriations bill to fund the proposal. Trucking and other industries<br />

have traditionally used the appropriations bill process to get<br />

Congress to pass new regulations that would improve their respective<br />

industries and to finally get Congressional mandates on regulatory<br />

issues that have stalled at the agency level. What issues would TCA<br />

like to see included in the FY2018 appropriations bill?<br />

Clearly, the F4A federal preemption language represents the most<br />

important issue that is affecting our industry today. We need ONE<br />

national standard. That represents the simplest way our drivers can<br />

operate in interstate commerce. Having a patchwork of state rules<br />

that address meal and rest breaks has proven inefficient and ineffective<br />

and it’s actually detrimental to our driving force. Having preemption<br />

language requiring that our industry should be operating under<br />

one federal Hours of Service rule that addresses meal and rest breaks<br />

would be the safest avenue in which our Congressional leadership<br />

should travel. Instituting language that addresses not only those<br />

breaks, but also piece rate and retroactivity would be the ideal solution<br />

and the most logical, legislative vehicle to address this issue in<br />

the upcoming appropriations bill.<br />

The beverage industry has joined FedEx and UPS in urging Congress<br />

to pass legislation allowing 33-foot tandem trailers. Recently, Clifford<br />

Lynch of C.F. Lynch and Associates said such legislation has more<br />

chance of passing now than ever before. Do you agree with Mr. Lynch’s<br />

statement and what will TCA need to do to make sure twin 33-foot<br />

trailers don’t indeed wind up on the nation’s highways?<br />

I have a message for the beverage industry: Be careful what you<br />

ask for … . Given that twin 33s do NOT call for increased weight-carrying<br />

capabilities, (at least not yet, but I assume that’s next), what<br />

IF the trucking industry was forced to shift to twin 33s as the common<br />

vehicle of conveyance? In the irregular route, general freight<br />

business, plus or minus a few percent depending upon your own client<br />

mix, as many loads weigh out as cube out. Some commodities<br />

are dense and others not. For the beverage industry, without question<br />

the vast majority of their loads weigh out first. The only benefit<br />

twin 33s would provide would be on their empty packaging loads …<br />

empty bottles and cans as several loads worth of packaging fit in<br />

a single conveyance. Unless they are<br />

contemplating twin 33s in a dedicated<br />

operation, they would actually experience<br />

a decrease in outbound payload<br />

in the vast majority of their shipments,<br />

as twin 33s weigh much more than a<br />

single 53-foot trailer. The reality of it<br />

is, the beverage industry would rely on<br />

a mix of 53s and twin 33s to service<br />

their businesses and that’s the TL issue.<br />

On one leg of the trip, there may<br />

be a benefit to a shipper, but the TL<br />

carrier endures the costs on every leg.<br />

Whether it’s extra empty miles to find<br />

the next light load, whether it’s accepting<br />

a lesser paying load that weighs<br />

out first because they can’t handle the<br />

same weight as the guy with the 53<br />

… it’s very complicated. Let’s face it …<br />

our industry has been discussing truck<br />

size and weight since the 1960s and<br />

quite honestly those same conversations<br />

that we had back then are being<br />

had again today. What does TCA need<br />

to do to make sure that this configuration<br />

doesn’t end up on our highways?<br />

That answer is simple: Tell our story.<br />

We are an industry that represents<br />

the majority of freight that is moved<br />

across the nation, and employing new<br />

standards for truck size and weight<br />

that will have a negative effect on the<br />

largest portion of our industry is simply<br />

not a sound decision. If you want<br />

to talk improved efficiency, let’s talk about doing more with the resources<br />

we already have and are already invested in … . The real<br />

conversation that needs to be had is one which addresses detention.<br />

Proven to be a truckload-specific problem, getting our drivers<br />

to drive, rather than wait has reached epidemic proportions. Simple<br />

changes in freight management can truly move the needle on productivity,<br />

retention, driver pay and even safety. This is the conversation<br />

our regulators should truly be having.<br />

President Trump’s executive order freezing work on rulemakings and<br />

requiring agencies to eliminate two rules for every one they create<br />

has seemingly brought the regulatory process to a standstill. First, is<br />

there any indication how long that freeze will last and if agencies<br />

have to eliminate two rules for every one they create, how will the<br />

trucking industry be impacted?<br />

The length of the freeze continues to grow as our industry, along<br />

with many other industries, continues to wait for the administration<br />

to put the right people in place who can understand how we operate.<br />

The entry-level driver training rule is one example of a rule that<br />

kept getting delayed because of the freeze. Our industry is filled with<br />

great training institutions for drivers, but we also have what we call<br />

CDL mills that this rule is supposed to help eliminate. Continuing<br />

32 Truckload Authority | www.Truckload.org TCA 2017


to wait for this implementation will allow these mills an even<br />

longer time to operate. As for the elimination of two rules for<br />

every one rule that needs to be created, the more important<br />

question is what rules would be eliminated. We can certainly<br />

argue for changes that need to be made to rules, but safety-driven<br />

companies like the members of TCA really cannot<br />

possibly make an argument for the removal of rules. Our<br />

safety rules have been put in place for a reason. While we<br />

engage in discussions with our regulators to make our rules<br />

more effective, advocating for the elimination of rules which<br />

our industry needs to help remove unsafe carriers from our<br />

roads is one in which we should not be part of.<br />

A GDP report shows the U.S. economy is off to a slow start in<br />

2017. Have you seen any impact of the slow economic growth<br />

on the trucking industry?<br />

YES! Read the financial reports of most public companies<br />

and you can see less-than-desirable performance. Our costs<br />

have outpaced our revenue because we have had weak demand.<br />

Beyond that, there are many private companies on<br />

the block and when you delve into their businesses you can<br />

see that they are not performing well. Investment in those<br />

businesses has not kept pace and typically it is because they<br />

are undercapitalized. In my opinion, shippers do have reason<br />

for concern. Some segments of the industry, like flats and<br />

refrigerated, are starting to get busier now and we expect<br />

it to continue to ratchet up, especially with the ELD mandate<br />

on the near horizon. There are better times ahead for<br />

most well-run organizations, but we have our hands full right<br />

now.<br />

Thank you, Mr. Chairman.<br />

TCA 2017 www.Truckload.org | Truckload Authority 33


SUMMER | TCA 2017<br />

Member Mailroom<br />

How do I stay informed<br />

a b o u t a l l o f T C A ’ s<br />

events and programs?<br />

This is a question that we hope our members rarely need to ask. Your Truckload Carriers Association membership<br />

is most valuable when you are actively involved in the association, and to be involved you must know where and when<br />

TCA’s many events are occurring.<br />

We hold almost 20 meetings throughout the year, and in between we have webinars, calls for applications and presenters,<br />

government affairs initiatives, and more, so we are actively taking steps to make it as clear as possible how to<br />

take advantage of these opportunities.<br />

We have traditionally informed our members of TCA events and programs via the TCA website, truckload.org, and<br />

e-mail notifications, including the weekly TCA Newsletter and TCA’s twitter account, @TCANews.<br />

While these channels have always yielded consistent results, we do not feel that they are enough. We have created a<br />

Marketing Task Force to find new ways of providing our members with all of the information they need. If you have any<br />

ideas or preferred methods of notification that we do not currently use, please reach out to anyone on the TCA staff and<br />

let us know. If this association is to change and grow as we all hope it will, we must have active and informed members<br />

— and we promise to do all in our power to foster that engagement.<br />

34 Truckload Authority | www.Truckload.org TCA 2017


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SUMMER | TCA 2017<br />

Talking TCA<br />

h u n t e r l i v e s ay | C O N V E N T I O N S A N D M A R K E T I N G C O O R D I N AT O R<br />

B Y d o r o t h y c o x<br />

Ask most folks to name who they would like to invite to a fantasy dinner party and<br />

they come up with names of famous composers and writers, pop stars, past heads of<br />

state, actors and such. Ask Lawrence “Hunter” Livesay who he would invite and he replies,<br />

“my friends and family.”<br />

Credit his friends and family for being an important reason he didn’t leave his home<br />

town of Alexandria, Virginia, and pursue a music career in Nashville, Tennessee, or New<br />

York City.<br />

This guitarist who comes from a family of musicians (his grandfather R. Eugene Livesay<br />

played the organ for 42 years at his neighborhood Methodist church) had at one time<br />

aspired to head to Nashville or New York, as many musicians do. But, he told Truckload<br />

Authority: “I thought about it and just saw so many people trying to do it and just sort of<br />

giving up … . I saw a lot of my friends going down those paths and not having any success<br />

doing it. So I was more than happy to move back home” after graduating from Clemson<br />

University in 2014.<br />

And although Livesay still plays the guitar “every day,” he parlayed his love of music,<br />

the performing arts and playing live gigs into his related talent of audio engineering<br />

and then into business administration, marketing research and coordinating logistics and<br />

sound for live events.<br />

Which led him to his job as conventions and marketing coordinator for the Truckload<br />

Carriers Association.<br />

“I never would have imagined doing what I’m doing now,” Livesay says, “but it’s funny<br />

how much crossover there is between planning conventions and putting on a [musical]<br />

show.”<br />

Even as a youngster Livesay had an interest in pulling off live shows.<br />

“I think definitely outside of school I was focused on music and playing music with my<br />

friends trying to get gigs together and trying to see if we could get a place to play. And we<br />

would just sort of invite everybody over to one spot and various bands would play and we<br />

were throwing little parties like that, so I definitely wanted to do music and started to have<br />

an interest in doing live event stuff.”<br />

Livesay may have received the technical gene from his mother, Laura Livesay, who<br />

was a computer teacher at the middle school he attended while his father Larry Livesay<br />

has held various federal government positions, including with U.S. AID and the FDIC. His<br />

mother is retired from teaching school now but does tutoring “just about every day,”<br />

Livesay says, and his dad does security and is on contract with the Environmental Protection<br />

Agency.<br />

It turns out both Livesay’s middle school, Alexandria Country Day, and his high school,<br />

T.C. Williams High, are famous. But not for the same reasons.<br />

The middle school received fame inadvertently for serving fourth graders what the<br />

school’s kitchen staff thought was frozen lemonade but turned out to be frozen margaritas<br />

left over from a PTA meeting the night before.<br />

“That was kind of a big scandal,” Livesay says. “My sister was in that fourth-grade class.<br />

You should have seen the note they sent home. It was on Howard Stern. Everybody was<br />

talking about it.”<br />

T.C. Williams High School, as football fans know, was featured in the iconic 2000 movie,<br />

“Remember the Titans.”<br />

“Actually,” Livesay remarks, “I was in the last class to have been in the old building.<br />

They knocked it down I guess in between my sophomore and junior year, when we moved<br />

into a new building. I mean, every time we had a substitute teacher we would watch ‘Remember<br />

the Titans’ for sure. I’ve seen that movie probably 150 times.”<br />

Everything at T.C. Williams is still named after the famous football team: “We’ve got<br />

36 Truckload Authority | www.Truckload.org TCA 2017


TCA 2017 www.Truckload.org | Truckload Authority 37


the Gerry Bertier Gymnasium and all of that,” Livesay says (Bertier was named<br />

Defensive Most Valuable Player in the 1971 season when the Titans were 13-0,<br />

including nine shutouts, and went on to win the Virginia State Championship).<br />

“My dad actually did play under one of those coaches from around that time<br />

but he would have been at the rival school across town.”<br />

“I played mostly electric guitar back in those days” he says, while in college<br />

“it was a lot easier to get people together with the acoustic [instruments] and<br />

play little coffee shops and stuff like that.”<br />

In addition to music, Livesay’s growing-up years were filled with sports,<br />

mainly baseball and basketball.<br />

By the time he was at Clemson, Livesay was “tracking” toward audio engineering,<br />

“definitely one of the things I was most interested in and had a knack<br />

for.”<br />

At Clemson he obtained a Bachelor of Arts, Production Studies, in the<br />

Performing Arts with a concentration in audio engineering with his minor in<br />

business administration. However, he says, although “an audio engineering<br />

degree is certainly a great thing to do and a fun hobby, you can’t expect to do<br />

too, too much with that [as a career], I’ve found.”<br />

“They really worked us in college,” he notes. “We were loading any show<br />

that was coming in. We were building sets and pulling them off the truck and<br />

honestly that’s not too different from what I do at the exhibit hall now” with<br />

TCA events.<br />

After college he worked as a media intern for an Alexandria marketing company,<br />

RedPeg Marketing, which he says “had a big focus on touring and openings,<br />

doing product demonstrations and setting up different social events and<br />

tours.” There, too, “it’s funny how much cross-over I found there is” with that<br />

job and what he does at TCA, he says, “like with the logistics of it all and getting<br />

your teams in place. Then there’s knowing who to call and who can handle<br />

what and just setting the plan in motion.”<br />

Since joining the TCA team in January 2015, Livesay has discovered that the<br />

work never ends: “You pretty much start [working on the next meeting] the<br />

minute the previous one ends.<br />

“There are so many different things to wrangle. You’ve got the hotel and<br />

you’ve got your decorator for the exhibit hall to deal with; you’ve got to get<br />

signs made and the programs made. You’ve got to do all your Web stuff and<br />

tons of things people don’t think about” such as badges and lanyards, food<br />

options, security measures, and on and on.<br />

How long does it take to get to a comfortable place in planning and carrying<br />

out the next big convention or event?<br />

“Honestly,” he says, “for<br />

me, I don’t think that ever<br />

comes. I’d say once I get onsite<br />

and everything is going I<br />

finally allow myself to relax a<br />

little bit.”<br />

And scouting out a meeting<br />

place is done far in advance.<br />

“We usually try to get a<br />

good idea of what the next<br />

two or three years look like,”<br />

he says. “You’re not necessarily<br />

booking [the site]<br />

but certainly you’re looking<br />

at your options and taking<br />

into account places where<br />

we haven’t been recently or<br />

maybe there are some renovations<br />

happening” at a site<br />

that might mean choosing a<br />

different location. “You’ve<br />

got to anticipate all that.”<br />

The choice of meeting<br />

location also has to do with<br />

giving all members “the opportunity<br />

to get out to a<br />

Hunter Livesay and his sister<br />

Lauren are shown as youngsters.<br />

meeting,” Livesay explains. “I think Nashville was great. We hadn’t been there<br />

in a really long time. There’s lots of tourism [opportunities] there and certainly<br />

it’s easier for people to get excited about a place like that. We’ll also do the<br />

[Gaylord] Palms and the Wynn [Las Vegas Resort] and I certainly think people<br />

look forward to those types of places, as well.”<br />

At the meetings he focuses on the exhibit hall and the location of the meeting<br />

space and how it relates to “how far you need to walk from the general<br />

sessions to the breakout session or going from there to get a meal. It’s all<br />

factored in. Some of these things can certainly be a workout.”<br />

And he really homes in on “the relationship we have with our associate<br />

members, our sponsors and our exhibitors. I’m more the liaison with those<br />

types of people, bringing in new sponsorship opportunities and evaluating<br />

Q & A With Hunter Livesay<br />

DATE AND PLACE OF BIRTH: May 7, 1991. Alexandria,<br />

Virginia<br />

MY TRADEMARK EXPRESSION IS: Who’s making coffee?<br />

MOST HUMBLING EXPERIENCE: Volunteering and<br />

helping families in coastal Mississippi rebuild after<br />

Hurricane Katrina<br />

PEOPLE SAY I REMIND THEM OF: My dad<br />

I HAVE A PHOBIA OF: Spiders<br />

MY GUILTY PLEASURE: Cartoons<br />

THE PEOPLE I’D INVITE TO MY FANTASY DINNER<br />

PARTY: My friends and family<br />

MY GREATEST PROBLEM AS A PROFESSIONAL IS:<br />

Wanting to do everything<br />

I WOULD NEVER WEAR: Anything with a Gamecock<br />

A GOAL I HAVE YET TO ACHIEVE: Buying a house<br />

THE LAST BOOK I READ: “The Mysticism of Sound &<br />

Music” by Hazrat Inayat Kahn<br />

LAST MOVIE I SAW: “In Defense of Food” – Michael Pollan<br />

MY FAVORITE SONG: “This Must Be the Place” by Talking Heads<br />

IF I’VE LEARNED ONE THING IN LIFE, IT WOULD BE:<br />

Make it happen<br />

MY PET PEEVE: Texting in the middle of a conversation<br />

THE THING ABOUT MY OFFICE IS: It’s next to the front<br />

door, making me the de-facto TCA mail delivery person<br />

ONE WORD TO SUM ME UP: Dedicated<br />

38 Truckload Authority | www.Truckload.org TCA 2017


Hunter Livesay’s grandfather, R. Eugene Livesay, plays the organ<br />

with one hand while holding grandson Hunter in his other.<br />

what can add something to the attendee experience. We want to give sponsors<br />

some exposure and the opportunity to market something to the members<br />

while also providing the membership some benefits they wouldn’t have<br />

had otherwise.”<br />

The meeting, itself, has to be promoted, as well, Livesay says, from “the e-<br />

mail blasts all the way down to the graphics. We definitely wear a lot of hats.”<br />

Like many others who have been welcomed into the TCA staff family, Livesay<br />

didn’t know a lot about the trucking industry beforehand.<br />

He wasn’t exactly looking for a job, but learned of the TCA opening through<br />

a former business contact.<br />

“I did an internship in college at Voice of America and one of my boss’s<br />

sisters [there] happened to be close friends with [TCA Executive Vice President]<br />

Bill [Giroux]. I called Bill up and got the interview and that’s pretty much<br />

how it happened,” he says. “I never applied for anything; I never saw it posted<br />

online or anything like that but I just came in and liked everything about the<br />

association and it was in the perfect location for me and [had] great people<br />

to work with.”<br />

He familiarized himself with the “big issues at the time such as size and<br />

weight stuff, you know, touching on it with very broad strokes.”<br />

Now, however, “I can’t drive down the road without seeing 10 member<br />

companies and 10 products from our associates.” Working at TCA, he says,<br />

“has definitely changed my perspective. Everything we have in today’s world<br />

is delivered on a truck. I didn’t know too much about trucking before I came<br />

but I’ve definitely heard the story that truckload is telling.”<br />

He’s especially keyed into logistics and customer relations “and the relationship<br />

we have with our members … .”<br />

And he’s always looking for ways to benefit members and help them interact<br />

and start conversations with each other at the conventions, annual meetings<br />

and trade shows. That can range from new industry apps to small breakout<br />

sessions that bring people closer together.<br />

Perhaps the thing that surprises him most about the industry, he says, is<br />

that there’s “more of a community than I would have imagined. It seems that<br />

our members, through benchmarking programs and sessions at our meetings<br />

… it really does seem like people recognize the importance of working together<br />

as an industry. There’s a collaborative nature that I’ve seen. I would not<br />

have expected that.”<br />

As for the music, “it’s always been my big hobby,” says Livesay. “As I get<br />

older I just appreciate doing it with friends.”<br />

So this collaborative young man has fit right in at a collaborative organization<br />

within a collaborative industry.<br />

That should be music to everyone’s ears.<br />

The Truckload Carriers Association<br />

welcomes companies that<br />

joined our association in<br />

April and May.<br />

April 2017<br />

Synter Resource Group LDP Services<br />

Pulsar Informatics, Inc.<br />

May 2017<br />

Integrity Transportation Insurance<br />

Stoneridge Inc. WorkHound<br />

TCA 2017 www.Truckload.org | Truckload Authority 39


By Klint Lowry<br />

For trucking company recruiters, today’s job<br />

market can feel like last call at a singles bar. The<br />

crowd has thinned out and time is short. The lights<br />

come up, you look around and — wow — slim<br />

pickin’s. It’s discouraging. It’s been like this for<br />

weeks, months, years. You start to wonder: “Why<br />

is it so hard to find someone? Are all the good ones<br />

taken?”<br />

Maybe it’s more accurate to compare a recruiter<br />

to a matchmaker, whose job isn’t just to find “the<br />

one” for your company, but to do it over and over<br />

again. With a chronic shortage of viable candidates<br />

and an industry noted for its turnover, the task can<br />

feel like a never-ending last call. Striking out isn’t<br />

an option, and it’s easy to get discouraged, a little<br />

desperate even, and fall into that familiar trap:<br />

“Am I being too picky? Maybe my<br />

standards are just too high.”<br />

In the last-call scenario, that whatever-getsyou-through-the-night<br />

kind of thinking can lead<br />

to some serious regrets come the dawn.<br />

As hard as it is to hire and retain enough<br />

qualified drivers nowadays, companies may<br />

be tempted to settle, to skirt their own hiring<br />

standards and bring in people who aren’t quite<br />

up to snuff.<br />

At the Truckload Carriers Association’s<br />

36th annual Safety and Security Division<br />

meeting, held May 21-23 in Phoenix, the general<br />

session featured a panel discussion titled “Are<br />

Drivers Worth the Risk?”<br />

Moderating the discussion was John<br />

Simmons, vice president of HNI Truck Group.<br />

The scheduled panelists were Clayton Fisk,<br />

vice president of risk management, insurance<br />

and safety for Warren Transport, Inc.; trucking<br />

industry advocate and defense attorney Ted<br />

Perryman; and Jeffrey K. Davis, vice president<br />

of safety for the Hudson Insurance Group.<br />

TCA’s Safety & Security Division Chair Scott<br />

Manthey was a last-minute addition to the group<br />

fresh off his acceptance of the Clare C. Casey<br />

Award as TCA’s Safety Professional of the Year.<br />

The central question of the discussion was<br />

whether taking a gamble and setting aside<br />

standards was worth it in order to get enough<br />

drivers behind the wheel. The panel’s consensus:<br />

No.<br />

When you compromise quality, you sacrifice<br />

safety. Just as you wouldn’t tell a lovelorn friend<br />

to stop being so picky and take what they can<br />

get, the same holds true for trucking companies<br />

seeking drivers. The aim of the discussion was<br />

to look at how companies can avoid getting<br />

into a mindset in which they give up on finding<br />

someone who’s right in favor of getting someone<br />

right now and regretting it later.<br />

“We wanted to talk about the influences<br />

40 Truckload Authority | www.Truckload.org TCA 2017


on driver hiring and all the things everyone<br />

has to go through to hire that most important<br />

asset of our companies,” Simmons said as he<br />

opened the discussion. The term “asset” can<br />

make personnel sound like a commodity. But<br />

as the discussion moved along, there was an<br />

underlying theme this panel of industry experts<br />

kept coming back to: It’s important to remember<br />

that at some level, business is always personal<br />

and employer-employee relationships are just<br />

that — relationships.<br />

As an insurer, Davis said early in the<br />

discussion that he assesses between 100 and 150<br />

carriers a year. “We look for that ‘driver-centric’<br />

culture,” Davis said. “The difference between a<br />

decent company and a really great company is<br />

finding that organization that treats that driver<br />

with respect, and also isn’t just looking for<br />

‘where do we get the next body.’”<br />

One of the things he considers “vitally<br />

important” in a company’s structure is how<br />

the recruiting and safety departments work<br />

together.<br />

Fisk said Warren Transport has taken the<br />

relationship between recruitment and safety a<br />

step further than most, making them part of the<br />

same department.<br />

“I meet with the recruiting people every<br />

week to discuss what we’re doing to bring new<br />

operators on and I also have the opportunity<br />

to reinforce the importance of maintaining the<br />

company’s safety record, to go over problem<br />

areas. They’re continually on board in regard to<br />

safety and not just recruiting. In our company<br />

the safety director himself actually OKs every<br />

driver in the fleet.”<br />

Manthey, who is senior vice president of<br />

safety and compliance at Interstate Distributor<br />

Co. in Tacoma, Washington, explained his<br />

company uses a tiered system to review<br />

candidates. “We have minimum standards,”<br />

Manthey said, “and then we’ve set a bar<br />

significantly higher.” Candidates who clear that<br />

higher bar can be greenlighted by the recruiting<br />

department supervisor. All others need to be<br />

cleared by the director of safety. Those who<br />

tiptoe the line of acceptability as a candidate or<br />

who are looking to get rehired will be reviewed<br />

by a committee, who then sends their decision<br />

to the chief operating officer. If it’s still a close<br />

call, the senior leader of safety and operations<br />

will make the final decision.<br />

Simmons added he knows of one company<br />

where every employee is signed off on by the<br />

vice president of operations, the vice president<br />

of recruiting, the vice president of training and<br />

the vice president of safety.<br />

The more people who have a hand in the<br />

hiring process, the more likely the company’s<br />

hiring standards will be followed. But this<br />

TCA 2017 www.Truckload.org | Truckload Authority 41


approach has the added value of starting the process of<br />

opening lines of communication between that new hire and<br />

his coworkers at every level.<br />

“People don’t quit companies; people quit people,”<br />

Fisk said. “It’s important as much as possible for upper<br />

management to get to know new drivers right off the bat.”<br />

The panel agreed that the best way to avoid a driver<br />

shortage is to hold on to the ones you have, and that creating<br />

a friendly, comfortable working relationship goes a long<br />

way toward that end.<br />

“It all comes down to a guy behind the wheel,” Fisk said.<br />

“Even when we have autonomous vehicles, there’s still<br />

going to be somebody there. And these folks are people.<br />

Every once in a while I’ll hear some fleet manager refer<br />

to someone and they give me their truck number, and I<br />

don’t go for that. That’s a big no-no at our company. These<br />

people have names, they have lives, they have families and<br />

interests.”<br />

Establishing those lines of communication early is<br />

important, Davis said. A driver may not remember what<br />

you said to him yesterday, but he’ll remember every word<br />

of what was laid out to him when he was hired. Let a new<br />

driver know right off the top what’s expected of him. “And I<br />

want to know what the new driver expects from us.”<br />

One thing a driver likes to know is that his company<br />

stands behind him, Perryman said. As an attorney, he<br />

usually meets drivers after they’ve had an accident.<br />

“In how many professions can you have a lapse, one that<br />

can end your career?” he said. “It’s important to assure that<br />

driver after an accident that you have his back. And that<br />

driver feels like part of the team again.”<br />

That is the preferred method of dealing with accidents,<br />

Manthey added. “It used to be if they had an event, it was:<br />

‘You know what? They don’t work here anymore.’ That’s<br />

what safety would say. Today, we do a full vetting.” And<br />

if it is at all possible, a timetable is set for the driver to get<br />

retrained so they can get past that incident and back on the<br />

road.<br />

“The reason we do that is very simple,” Manthey said.<br />

“We know what we have in that driver. What we don’t<br />

know is what we’re going to get coming in the door.”<br />

Being able to stand behind a hiring decision is one of the<br />

most important reasons for a company not to compromise<br />

its standards, Perryman said, and it’s surprising how often<br />

he finds companies hire drivers who don’t meet their<br />

standards and it comes back to bite them.<br />

“From the legal side, you look at the company’s hiring<br />

criteria,” he said. And it isn’t to assess that criteria. After all,<br />

he said, a company sets its own criteria.<br />

“Obviously, there’s the criteria where drivers are<br />

disqualified under 383.51,” Perryman said, referring to the<br />

Federal Motor Carrier Safety Administration regulations<br />

section that lists the types of moving violations for which a<br />

driver can be temporarily or even permanently disqualified<br />

from getting behind the wheel of a CMV.<br />

Other than that, and as far as the law allows, carriers<br />

can pretty much set their own standards, Perryman said.<br />

“In an actual litigation, the focus more often is less on<br />

the driver’s past and more on the company’s standards<br />

and hiring practices. What I find pretty important is that<br />

whatever your hiring criteria might be that you follow that<br />

criteria.”<br />

“Yeah, it isn’t the standard that gets questioned, it’s the<br />

exception to the standard,” Davis added. “Imagine being in<br />

court in a claims case, and the plaintiff’s attorney asks: ‘So,<br />

your standards used to be here, but then you lowered your<br />

standards and hired this driver. Why?’ and the answer is,<br />

‘Well, we just weren’t getting enough drivers.’ Those are the<br />

kinds of things that we say add zeroes to claims.”<br />

Davis said about every two weeks he’ll get a call from<br />

a safety director who’ll say something along the lines of,<br />

“Look, we’re just not getting the recruits, we’ve got to do<br />

something about the standards.”<br />

“The first thing I will say is, ‘what are you doing to keep<br />

the people we have?’ This is the only industry I know where<br />

100 percent turnover is acceptable. If I went to my boss and<br />

said, ‘Wow, we had 100 percent turnover this year,’ I’d<br />

probably wind up being part of that turnover.<br />

“When I look at getting calls from a company saying,<br />

‘hey, we’ve got to make this exception and that exception,’<br />

then it’s time for us to go in and say, ‘are these standards<br />

working?’”<br />

The companies that have been successful have been<br />

those that carefully consider what they need in a driver, set<br />

appropriate standards, and then go after that kind of driver,<br />

period, panelists said. Sure, maybe once a year a carrier may<br />

want to review its standards, adapting as the company’s<br />

needs or maybe even the trucking industry changes. But<br />

whatever the hiring standards are at a given time, stick to<br />

them.<br />

Despite the perpetual driver shortage, Davis said,<br />

he hasn’t seen many carriers dramatically lower their<br />

standards — some may have edged down their minimum<br />

age or years of experience. And for any company that may<br />

be considering it, he added, there’s one last good reason not<br />

to do it: It doesn’t work.<br />

“The one thing I’ve always seen, the companies that do<br />

make large changes to their policies wind up with rapid<br />

turnover,” he said. “They draw in a lot of people, but they<br />

lose them fast, too.”<br />

That last-call lovelorn friend might be satisfied getting<br />

by with a string of meaningless one-night stands. But<br />

eventually that scene gets old, usually after a few nasty<br />

surprises along the way. Most companies tend to try to<br />

avoid nasty surprises.<br />

“I’ve always been a firm believer a company brings in its<br />

problems from the outside, so we try not to do that,” Fisk<br />

said.<br />

It might take a little more time and effort, but in the long<br />

run it’s better to take the matchmaker approach and hold<br />

out for a real keeper.<br />

42 Truckload Authority | www.Truckload.org TCA 2017


PHOENIX<br />

More than 150 representatives<br />

from some of the Truckload Carriers<br />

Association’s safest member<br />

companies attended the 36th annual<br />

Safety & Security Division meeting<br />

at the Renaissance Phoenix Glendale<br />

Hotel in May. Attendees learned about<br />

current issues related to truck safety<br />

and security and networked with safety<br />

directors from all across North America.<br />

1<br />

2<br />

3 4 5 6<br />

7 8 9 10<br />

11<br />

(1) Lori Borgan, safety director for Convoy Systems, accepts the first-place plaque<br />

for Division II in the 2016 National Fleet Safety Awards presented by Jim Barber, assistant<br />

vice president of safety for Great West Casualty Co. (2) Chris Zondlo, safety<br />

coordinator for Smokey Point Distributing, accepts the first-place plaque for Division<br />

III in the 2016 National Fleet Safety Awards, presented by Barber. (3) Benton Elliott,<br />

director of safety for Big M Transportation, accepts the first-place plaque for Division<br />

IV in the 2016 National Fleet Safety Awards from Barber. (4) Stephanie Fensom,<br />

manager of safety and compliance for Bison Transport, accepts the 2016 National<br />

Fleet Safety Grand Prize Award from Barber. (5) TCA Chairman Rob Penner, president<br />

and CEO of Bison Transport, updated attendees on issues facing TCA. (6) Dave<br />

Heller, TCA’s vice president of government affairs, updated attendees on regulatory<br />

issues facing the industry. (7) Exhibits allowed attendees to learn about new products<br />

designed to make their fleets safer. (8) Jeremy Stickling, director of human<br />

resources and safety at Nussbaum Transportation, presents a session of Trucking<br />

Then vs. Now in a general session. (9) The warm climate in Arizona provided an opportunity<br />

for attendees to relax and network outdoors at the Renaissance Phoenix<br />

Glendale Hotel. (10) The Exhibit Hall provided a perfect setting for a cup of coffee<br />

and chat with peers about safety and security issues. (11) TCA President John Lyboldt<br />

welcomed attendees to the meting.<br />

TCA 2017 www.Truckload.org | Truckload Authority 43


A QUICK LOOK AT IMPORTANT TCA NEWS<br />

SMALL<br />

A QUICK LOOK AT<br />

IMPORTANT TCA NEWS<br />

TALK<br />

Clare C. Casey Safety Awards<br />

Carriers for which Manthey was the company safety leader have earned Safe Carrier of the<br />

Year honors from Washington, Oregon, California and Indiana.<br />

“Scott represents the best of the best in the safety world,” said David Heller, vice president<br />

of government affairs at TCA. “He knows his stuff, and is always willing to share his<br />

vast knowledge. Everyone in safety can agree, Scott Manthey is incredibly deserving of this<br />

award.”<br />

Nominees for TCA’s award must exemplify leadership and demonstrate the goals of protecting<br />

lives and property in the motor transportation industry while serving their company,<br />

industry, and the motoring public. The award is named after Clare Casey, a safety professional<br />

who actively served TCA from 1979 until 1989.<br />

He was devoted to ensuring that all truckload safety professionals build a strong safety<br />

network, and was instrumental in forming the first annual Safety & Security Division meeting<br />

in 1982.<br />

The first Clare C. Casey Award was presented in 1990, one year after Casey’s death.<br />

Name the Mascot<br />

Trucking Moves America Forward introduced an industry mascot last month to continue<br />

its quest in telling the story of trucking’s essentiality to the American economy.<br />

TMAF executive committee leaders Kevin Burch, president of Jet Express and American<br />

Scott Manthey, left, accepts the 2017 Clare C. Casey Safety Professional of<br />

the Year Award from John Lyboldt, TCA president.<br />

Scott Manthey, senior vice president of safety and compliance for Interstate Distributor<br />

Co. of Tacoma, Washington, was presented the Truckload Carriers Association’s 2017 Clare<br />

C. Casey Safety Professional of the Year Award during TCA’s 36th Annual Safety & Security<br />

Division Meeting in Phoenix May 21-23.<br />

This honor is bestowed upon a trucking industry professional whose actions and<br />

achievements have made a profound contribution to enhancing safety on North America’s<br />

highways.<br />

After serving in the U.S. Coast Guard for 10 years, Manthey has worked in the transportation<br />

industry for more than 20 years, including the past 3½ years at Interstate Distributor<br />

Co.<br />

There, he helped usher in a 45 percent reduction in preventable DOT accidents, a 40<br />

percent reduction in total incurred exposure, and a 17 percent reduction in lost time from<br />

injuries, displaying his ability not only to teach professional truck drivers how to drive more<br />

safely, but to instill the values of safety into a company’s culture.<br />

“In his first year with Interstate we would rarely find Scott in his office,” said Marc<br />

Rodgers, president and CEO of Interstate Distributor Co. “He was out in the yard talking to<br />

our drivers, teaching a class to our new operations staff, or in the driver lounge building<br />

relationships of trust with our associates. This was a testament to the loyalty Scott builds<br />

in his professional relationships and the responsibility he feels to build the future safety<br />

leaders in our industry.”<br />

Manthey’s dedication to safety is never limited to his work with the company he works<br />

for — he also volunteers his time with other organizations to help spread safety to the<br />

industry as a whole.<br />

He has been an active member of the Washington Trucking Association (WTA) for more<br />

than 10 years, serving on the board of the Safety Management Council for eight years,<br />

including as the council’s chairman from 2013-2015. He was named chairman of TCA’s<br />

Regulatory Policy Committee in 2015, and has been actively involved in TCA’s Safety &<br />

Security Division since 2012.<br />

In addition to the 2017 Clare C. Casey Award, Manthey has earned numerous awards<br />

honoring his dedication to safety, including the 2010 Safety Professional of the Year from<br />

WTA and the 2012 Safety Professional of the Year from the Oregon Trucking Association.<br />

Kevin Burch, chairman of the American Trucking Associations and 2009-2010<br />

TCA chairman, poses with the Trucking Moves America Forward image<br />

campaign’s yet-unnamed mascot.<br />

44 Truckload Authority | www.Truckload.org TCA 2017


Trucking Associations chairman; Wendy Hamilton, senior<br />

manager, sales marketing at Pilot Flying J; and Elisabeth<br />

Barna, COO and EVP of Industry Affairs at the American<br />

Trucking Associations, made the announcement at the<br />

Knoxville Pilot Travel Center, unveiling the truck mascot<br />

complete with headlights, a windshield, tires, and the TMAF<br />

cap.<br />

Since TMAF’s inception over three years ago, the movement’s<br />

goal has been to shift the image of the industry<br />

by sharing important facts — including the fact that 80<br />

percent of U.S. communities rely solely on trucking for<br />

the delivery of their goods by an industry of more than 7<br />

million people — and to be visible throughout the country<br />

all year through its digital presence, the media and live<br />

events coast to coast. The mascot is an extension of the<br />

movement’s goal to broaden the reach and visibility of the<br />

trucking industry.<br />

“Over the past three years, we’ve attempted to be visible<br />

throughout the country, and this newest member of our<br />

team will do just that, in a new, exciting way,” Burch said.<br />

“Just like our 3.5 million drivers, the mascot is ready<br />

to hit the road and visit as many of you as possible in the<br />

coming months and years,” Barna said.<br />

TMAF has called on the industry to help name the mascot<br />

through a digital campaign.<br />

Well over 600 names have been submitted.<br />

TMAF will take submissions through e-mail at mascot@<br />

truckingmovesamerica.com and its Facebook page until<br />

July 1.<br />

Then, voting will commence, and a name will be unveiled<br />

at the Great American Trucking Show taking place<br />

August 24-26 in Dallas.<br />

TCA’s partner newspaper The Trucker polled its website<br />

readers to submit their choices for the mascot’s name.<br />

Among the submissions were Steers, Tommy the Trucker,<br />

Shelf Stocker, Petey Mack, Coffee Drinking Gear Jammer,<br />

Miles, and Truckie.<br />

Public Company Results<br />

The TCA inGauge team has uploaded the latest public<br />

company results for the first quarter of 2017 online.<br />

The team tracks the results of predominantly publicly<br />

traded truckload companies throughout North America,<br />

and as of the first quarter there were 12 companies being<br />

tracked.<br />

The new additions to the database include Schneider<br />

National (IPO in April); Daseke (began trading on the NAS-<br />

DAQ in February - first Flatbed/Specialized company in the<br />

group); TFI (formerly Transforce), and Titanium, a smaller<br />

Canadian publicly-traded company.<br />

Here are the operating ratios, excluding FSC, for the<br />

quarter that ended March 31:<br />

• Heartland Express: 83.17 percent<br />

• Knight: 90.76 percent<br />

• Marten: 91.41 percent<br />

• Werner: 94.27 percent<br />

• Schneider: 95.25 percent<br />

• PAM: 97.16 percent<br />

• TFI (TransForce): 97.27 percent<br />

• Titanium: 99.16 percent<br />

• Covenant: 99.78 percent<br />

• Daseke: 100.58 percent, and<br />

• USA Truck: 107.12 percent.<br />

Celadon results have been delayed.<br />

On average, the operating ratios for all the companies<br />

the inGauge team tracks have deteriorated by 2.99 percentage<br />

points, compared to fourth-quarter 2016.<br />

Although many companies have company-specific factors<br />

related to this deterioration, many have commonly<br />

pointed to: (1) excess capacity and (2) a soft used truck<br />

market, as contributing factors to the subpar results.<br />

On the bright side, many are banking on the new ELD<br />

mandate solving the capacity issue. However, it may further<br />

erode the used truck market.<br />

Heartland, Knight, Marten and Werner continue to be the<br />

industry leaders from an operating ratio perspective.<br />

The inGauge team highly encourages everyone to read<br />

their quarterly and annual results for insight and inspiration.<br />

The entrance of Daseke into the public market provides<br />

a great way to gain some further insight into the flatbed/<br />

specialized segment. Daseke, comprising 11 distinct operating<br />

entities — all well-known and respected companies<br />

in their own right— now boasts 2,928 tractors, and annualized<br />

revenues of $642 million prior to the Schilli and Big<br />

Freight acquisitions.<br />

Scholarship Gala<br />

The Monday night Scholarship Gala is always a<br />

fun part of the annual TCA convention and raises<br />

thousands of dollars to support the Scholarship<br />

Fund. In this photo, TCA Chairman Rob Penner,<br />

center, banters with Shepard Dunn, left, 2014-<br />

2015 chairman, and Russell Stubbs, immediate<br />

past chairman.<br />

The Truckload Carriers Association on July 31 will reveal<br />

recipients of the 2017-18 TCA Scholarships.<br />

Judges are in the process of analyzing the submitted<br />

applications to confirm that each applicant meets the<br />

necessary eligibility requirements and determine the exact<br />

amount for each scholarship.<br />

The Scholarship Fund awards its scholarships without<br />

regard to sex, race, color, national origin, or religion.<br />

Scholarship recipients must be associated with a TCA<br />

member company as an employee, independent contractor,<br />

or be the child, grandchild, or spouse of an employee<br />

or independent contractor. A recipient must be a student<br />

in good standing who will be attending a four-year college<br />

or university; show financial need and scholastic achievement;<br />

maintain full-time student status; and demonstrate<br />

high character and integrity.<br />

TCA’s Scholarship Fund has been providing assistance to<br />

students associated with the truckload industry since 1973.<br />

The 2016-17 TCA Scholarship program awarded 45<br />

students with scholarships ranging from $2,275 to $6,250<br />

from a total pool of approximately $130,000.<br />

Anyone interested in making a donation to a scholarship<br />

in the name of one of TCA’s past chairmen should contact<br />

TCA’s Sean Townsend at stownsend@truckload.org.<br />

Scholarship recipients will be announced at truckload.<br />

org/Scholarship-Recipients.<br />

Debbie Sparks goes to WAA<br />

Debbie Sparks and Ron Goode, director of<br />

education at TCA, enjoy a light moment during<br />

registration for the 2017 annual convention in<br />

Nashville, Tennessee.<br />

Debbie Sparks, vice president of development for the<br />

Truckload Carriers Association, left the organization May 31<br />

to oversee strategic development and logistics for Wreaths<br />

Across America.<br />

Sparks, who has been with TCA since December 2006,<br />

helped foster TCA’s partnership with the nonprofit organization<br />

that strives to “remember, honor, and teach” about the sacrifices<br />

veterans have made for their country.<br />

She has served on the Arlington National Cemetery strategic<br />

development team, which made history two years in a row<br />

by placing a wreath on every marker at the cemetery.<br />

She and her team at TCA, working closely with the<br />

transportation group at WAA, have been responsible for recruiting<br />

and dispatching hundreds of trucks that transport<br />

remembrance wreaths to nearly 1,300 veterans’ cemeteries<br />

nationwide.<br />

“Though we will miss Debbie at TCA, she is the right person<br />

for this position,” said John Lyboldt, TCA’s president. “This<br />

is a great opportunity for both Debbie and TCA, as we are<br />

committed to our partnership with Wreaths Across America<br />

and look forward to continuing to share the mission within the<br />

trucking community.”<br />

In her newly-created position with WAA, Sparks will continue<br />

to be involved with the trucking industry by working to<br />

grow the involvement and contributions of carriers and the<br />

larger trucking industry throughout the country.<br />

TCA 2017 www.Truckload.org | Truckload Authority 45


Mark Your<br />

Calendar<br />

JULY 2017<br />

>> July 12-14 — 2017 Refrigerated Division Meeting, Hotel Talisa, Vail,<br />

Colorado. Find more information at Truckload.org or contact TCA at (703)<br />

838-1950.<br />

OCTOBER 2017<br />

>> October 11— Wreaths Across America Charitable Gala, Gaylord<br />

National Resort and Convention Center, National Harbor, Maryland. Find<br />

more information at Truckload.org or contact TCA at (703) 838-1950.<br />

DECEMBER 2017<br />

>> December 16 — Arlington Wreath Reception and Dinner, Hilton<br />

Crystal City, Arlington, Virginia. Find more information at Truckload.org or<br />

contact TCA at (703) 838-1950.<br />

Visit TCA’s Event Calendar Page<br />

online at Truckload.org and click “Events.”<br />

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46 Truckload Authority | www.Truckload.org TCA 2017


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