The Roemer Report On-Line, August 2005

ALWAYS VIGILANT: Many in the trucking industry are viewing last month’s terrorist attack in London as a wake-up call to review and update their own security plans. “Security plans are living, breathing documents that need constant review…,” said a transportation security expert. Many carriers, like Indianapolis-based Celadon Group, participate in Highway Watch, a program run by the American Trucking Associations that trains highway transportation workers to report suspicious activity along the nation’s roadways. After the attack in London, Celadon’s director of safety and security said he received phone calls from Highway Watch drivers who wanted to share their ideas on ways to improve security at the company. “This helps me because I’m not in charge of security alone anymore,” said Bruce Wishart. “That’s critical because security can’t be a ‘top down’ management-driven effort to succeed—everyone has to be involved and recognize its importance.” Wishart said Celadon is considering installing devices on its trucks that would allow him to shut down vehicles remotely—even if they’re in transit—should they be hijacked or stolen. “We’re investing a lot of money in security, but we believe there’s a big return on investment—especially in terms of peace of mind for our customers,” said Wishart. “They need to know that their cargo is safe, and we need to know we’re doing everything to protect their goods, our people, and the general public.”

BIODIESEL GAINS ATTENTION: With Americans facing sticker shock at the pump, more are turning to biodiesel as a way to save money, generate work for farmers, and help the environment. Biodiesel, made from vegetable oils or animal fats, is typically blended into regular diesel fuel at concentrations of up to 20 percent and can be used only in diesel engines. Thanks to a new federal subsidy, biodiesel is about the same price as, and in some regions even less than, petroleum-based diesel. Still, biodiesel accounts for only about 4 percent of diesel fuel used on the nation’s highways. Country singer Willie Nelson, a longtime supporter of U.S. farmers, has joined forces with a Dallas-area biodiesel distributor and a truck stop. The trio are launching “BioWillie” biodiesel, which Nelson touts on a radio show for truckers. One Oklahoma City chain recently began selling BioWillie alongside its regular diesel. “We have no idea how people are going to react to biodiesel,” said a company spokesperson. But if Johnny James is any indicator, the reaction will be positive. The 45-year-old electrician, who does not consider himself a strong environmentalist, drove out of his way to fill up his pickup. He said using the fuel will “help keep things on an even scale and support the American farmer. And I can burn it in my truck. Let’s do it.”

ROADCHECK ISSUES FEWER CITATIONS: Roadcheck 2005, the program that stops trucks and buses along North American highways for safety checks, had a lower out-of-service (OOS) rate than the previous year’s program. Compared to 2004, the OOS rates for vehicles and drivers dropped for the first time in three years, according to the Commercial Vehicle Safety Alliance. The OOS rate for vehicles was 22.6 percent this year, versus 23.9 percent last year. The driver OOS rate dropped to 4.5 percent this year, compared to 5 percent in 2004. “It’s certainly a good result,” said Stephen Keppler, CVSA director of policy and programs. Keppler noted that “that kind of decrease is significant” because trends from one year to the next typically don’t change that drastically. Citations for brakes remained the main reason for OOS vehicles. Of all OOS citations, 30.1 percent had to do with faults in brake-adjustment and 25.2 percent involved brake systems. Problems with lighting accounted for 11.8 percent of OOS vehicles; tires and wheels, 8.9 percent; loading, 8.5 percent; and suspension, 5.1 percent. As for drivers, the number one reason for OOS rates was hours-of-service violations, which decreased to 54.2 percent, compared to 61.6 percent for 2004. That’s not necessarily good news, however, since the decrease reflects the drop in HOS violations in Canada, not in the United States where HOS violations actually increased slightly.

CATERING TO HISPANIC DRIVERS: By law, truck drivers are required to speak English if they want to earn a CDL. Many Hispanic drivers, however, say they are more comfortable reading Spanish than English. A new study finds that about half of the country’s Hispanic truck drivers speak Spanish and would prefer to read in their own language. Even more would prefer to read information in both English and Spanish. That information and more appears in “Filling the Gaps in the Road,” a study undertaken to determine the need for more Spanish language materials in the trucking and transportation industries. There are currently about 480,000 Hispanic truck drivers in the country, accounting for approximately 26 percent of drivers. Hispanics are the largest minority group in the country—and the youngest, with half of the population under 26 years old. That’s partly why they are being actively recruited as drivers. The other reason is that trucking can be a lucrative career with first year earnings in excess of $42,000. To read the entire study, which was published as a white paper, visit www.scpr.com.

HOMEGROWN DRIVERS: New England Motor Freight (NEMF) is betting that opening its own driving school will help create “good, solid employees for the future.” In addition to attending classes for free, students are offered a job while they complete their training. “Whatever it has to do with this industry, we train them,” said Thomas J. Hartley, director of safety at NEMF. “We teach them our history, so when these guys come out the door, they’re not just a good, safe driver, they’re a good, safe NEMF driver.” In return, students agree to work at NEMF for three years once they obtain their CDL. If they do not fulfill their commitment, they must reimburse NEMF $3,600, an amount considered less than the cost of the typical independent truck-driver training school. NEMF may be at the forefront of a trend, as more motor carriers start their own driver-training schools. One trucking director said more companies are starting their own schools because of the driver shortage—they set up the schools “so they know they have a good and safe driver before they offer them a job.” NEMF has started schools at four terminals. Startup costs at each school were about $110,000, which went toward a trainer for each location, a tractor, and audio-visual equipment and other materials. But NEMF believes its investment will pay off. “We want to be able to hire people and train them in our way of doing things. Safe and dedicated and loyal,” said Hartley. “I just think we will be a step ahead of everybody by producing those kinds of drivers.”

READY TO RETIRE? If you’re worried you’re not saving enough for retirement, you’re probably not. A new survey by Fidelity Retirement Index found that the typical American household will be able to replace only about 59 percent of its income during retirement. Fidelity recommends that households be able to replace at least 85 percent of their income. That means if a household earns $100,000 per year, it should be prepared to have at least $85,000 each year during retirement. At their current rate of savings, Americans aged 25 to 40 will be able to replace only about 55 percent of their income. Workers aged 41 to 54 are best prepared for retirement, but still lag behind the recommendation; these workers can expect to replace about 63 percent of their pre-retirement earnings. Those aged 55 and older can expect to replace about 62 percent of their income. “The harsh reality is that many Americans are woefully unprepared for retirement,” said Fidelity Brokerage Company President Ellyn A. McColgan. “They simply aren’t saving anywhere near enough—and many are not investing their retirement savings wisely.” The study found that the typical American household has saved $18,750 for retirement and plans to rely on Social Security and pensions for any shortfall. Another 16 percent of working Americans haven’t even started saving for retirement. Americans need to save aggressively if they want to maintain the lifestyle they are accustomed to during retirement, according to Fidelity.

HOW DO YOU HANDLE ADVERSITY? A young woman confessed to her mother that life was too hard—she didn’t see how she could continue struggling. As soon as she solved one problem, another one cropped up. Her mother listened quietly and then went to the kitchen, where she placed three pots of water on the stovetop to boil. Once all the pots were bubbling, the mother placed a bunch of carrots in one pot, several eggs in another, and coffee grounds in the third. After about 10 minutes, she turned to her daughter. “Tell me what you see,” she said. “Carrots, eggs, and coffee, of course,” answered the daughter. “Yes,” said the mother. “But there’s much more. Do you see how each object dealt with adversity, the boiling water? The carrots went in strong and unrelenting and came out weak and softened. The eggs went in fragile and malleable but came out hardened and unforgiving. The coffee, on the other hand, is unique,” said the woman. “It went into the hot water and actually changed the water into coffee. It didn’t see the hot water as a hardship, but as a chance to prove itself.” The daughter listened carefully as the mother continued. “Which one are you?” she asked her daughter. It’s your choice, after all. Are you going to be the carrot that seems strong and stoic but wilts under stress? Are you the egg, which becomes hardened and stiff when facing adversity? Or are you like the coffee bean? The bean doesn’t let the hot water get the best of it. It figures out how to alter the water to its benefit. Choose wisely,” said the mother, “for you will face obstacles every day of your life.”

Roemer Insurance salutes the country’s hard-working truck drivers.
National Truck Driver Appreciation Week begins August 21. If you got it, thank a trucker.