The Roemer Report On-Line, November, 2002

IT’S A WRAP—THE NEW SECUREMENT STANDARDS: Motor carriers have until January 2004 to comply with new securement standards. The Federal Motor Carrier Safety Administration recently announced a new single set of performance standards for all interstate commercial motor vehicles based on the North American Cargo Securement Standard Model Regulations. Intended to reduce the number of accidents caused by shifting or falling cargo, the new standards reflect the results of several years’ worth of studies. Researchers evaluated current U.S. and Canadian securement regulations, studied recommendations from industry experts and enforcement officials, and considered the trucking industry’s best practices. The new rule, effective December 26, 2002, clarifies how to determine the working load limit of cargo securement systems and how to use tie-down devices to secure cargo. The rule also establishes standards for transporting the following commodities, which were identified as the most difficult to secure: logs, dressed lumber, metal coils, paper rolls, intermodal containers, light and heavy vehicles, roll-on/roll-off containers, and large boulders. The final rule may be viewed by searching for docket number FMCSA-97-2289 at http://dms.dot.gov/.

THE COSTS OF COMPLIANCE: The new Environmental Protection Agency-compliant engines could cost anywhere from an extra $3,000 to $9,000 or more, depending on who you ask. It “really depends on what you spec,” says an industry insider. At one Freightliner dealership, a new exhaust gas recirculation (EGR) engine would cost an additional $4,600 to $5,300 including federal excise tax—regardless of chassis. Volvo is listing the extra costs on its invoices as a surcharge. “Depending on the application, it’s $3,500 to $4,500 for the engine surcharge and in addition, up to $1,000 [more] for chassis modifications to accept the compliant engines,” said Volvo Trucks spokesman Jim McNamara. As for fuel efficiency, Volvo says its new line of VNs with EPA-compliant engines are no more than 2 percent less fuel efficient than existing, noncompliant engines. Volvo also notes that the new engines require “minimal changes in maintenance procedures and no new technical education.” The American Trucking Associations (ATA), however, believes the new engines will force technicians to undergo extensive training to understand the complex engines. In June, ATA used the EPA’s own figures to estimate the increased costs associated with the purchase and operation of an EGR engine to be between $11,057 and $15,892.

FUEL SURCHARGE URGED: Two trucking groups once again have joined forces to support bills that would mandate a fuel surcharge for those not already paying one when diesel fuel prices rise above $1.15 per gallon. The Truckload Carriers Association (TCA) and the Owner-Operator Independent Drivers Association are supporting the Motor Carrier Fuel Cost Equity Act of 2002 (Senate Bill 1914) and its companion version in the House (H.R. 2161). The organizations are also urging carriers and owner-operators to support the bills by calling, e-mailing, and faxing their Congressmen. Such legislation is critical to the survival of owner-operators and truckload carriers, not to mention a healthy economy, according to a TCA press release. The Motor Carrier Fuel Cost Equity Act would “level the playing field for small operators, which comprise nearly 80 percent of the motor carrier industry,” said Sen. John Kerry, D-Mass., who introduced the bill. The TCA’s Fuel Surcharge Task Force said, “The trucking industry is a vital part of the American economy. With the inability of many carriers to collect their fuel surcharges as diesel fuel prices rise, it has become imperative that we handle the issue of fuel surcharge with legislation.”

DRIVEN TO DISTRACTION? Not too long ago, a driver relied on his speedometer, odometer, and fuel and oil gauges for information. These days the cab of a Class 8 tractor resembles the cockpit of a jumbo jet—so many switches, gauges, buttons, and display screens are crammed into a small space. But all these systems may end up distracting the driver and impeding safety–the opposite of what they are intended to do. The federal government estimates that 20 to 30 percent of all crashes are due to driver distractions, such as talking, eating, reading, or simply changing radio stations. In response, heavy truck designers and engineers are working hard to determine which devices are worth putting in the cab, where they should be located, and how they should be viewed by the driver. Some experts recommend that displays should automatically adjust to light conditions and that gauges, switches, and alarms should be placed in the same spots in similar vehicles. Another way to minimize sensory overload is to limit the amount of information available to drivers. For example, some companies are working to stop computer use when the truck is moving. One manufacturer is developing a computerized system that would automatically manage a driver’s workload. The first part of the system would enhance driver awareness; external cameras and radar would signal impending sharp turns, collisions, and other dangerous situations. Another part of the system would monitor driver alertness through biometric sensors. If the driver appeared to be drowsy, the system would send visual warnings or audio alarms to warn the driver. If the driver had a high workload, such as in congested traffic, the system could force the trucker to focus on driving by locking access to the cell phone, CB, or computer. The workload manager is expected to be available in 2007. Other systems are also in the works, say truck makers.

PLAYING YOUR CARDS RIGHT: Fleet cards have become the standard way to purchase fuel and disburse cash to drivers. The cards offer security and control over company funds, but they also can automate other processes, such as payroll and settlements, fuel-tax reporting, and auditing of logbooks. The traditional fleet card used solely for buying fuel at certain rest stops has become obsolete, says one expert. Now many companies issue two or more cards to drivers for a variety of uses. Here’s a look at how some companies are using their cards: (1) A single source for all cash transactions. Many motor carriers use fleet cards to control all driver expenditures. This allows fleets to audit drivers’ purchases and reconcile cash advances with payroll settlements before drivers turn in their receipts. Management can pre-authorize daily and weekly amounts for fuel purchases and cash advances. With certain cards, carriers have the ability to authorize or decline purchases at specific locations and even a specific brand of product. (2) A reporting tool. A Texas carrier uses fleet card transactions to track the location of its drivers and determine the fuel cost-per-mile of loads. “We track our trucks even though we don’t have Qualcomm,” says the company’s president. “Drivers have cell phones, but this gives us a way to monitor locations as most drivers fuel once a day.” The company can calculate the fuel cost-per-mile since card readers prompt drivers to enter their odometer reading at each fueling. (3) Online convenience. Some fleet cards provide convenient Internet services, such as online reports of transaction details, current diesel prices at truck stops, and the ability to manage fuel buying programs. One online system lets fleets manage their vendor relationships and fuel buying programs. Drivers can also get routing information based on the current fuel prices at each stop.

MANAGING CHRONIC PAIN CLAIMS: Chronic pain has become a chronic problem for employers as they search for ways to deal with this expensive problem. Most businesses want to return workers with chronic pain back to the job, but doing so is becoming more and more cost prohibitive. According to one study, the annual costs related to chronic pain to the workers’ compensation system exceed $100 billion. The costs of drugs to treat chronic pain have risen and may be as high as $1 billion annually. In addition, treating chronic pain includes expenses related to physical therapy, psychological counseling, frequent office visits, and multiple surgeries. Employers have come to realize that traditional approaches, such as pain management, have poor results. Consequently, some businesses simply choose to terminate workers who have been off work after a certain length of time. Chronic pain experts say employers instead should spend more time on transitional work services, such as early identification of injuries, and communicate with employees who are having chronic pain. In addition, they should use multidisciplinary pain programs, including a collaborative effort between the insurer and physician regarding a return to work.

MATCHING VALUES: While it may be fairly easy to assess job applicants’ experience, it’s far more difficult to determine their value system. Yet compatible values between employees and organizations can make a tremendous difference in profits and productivity. For example, an employee who enjoys working on his own and acting on creative impulses may not fare well in an organization that focuses on teamwork and discipline. How can you accurately assess the value system of a potential employee? Here are a few interview suggestions: (1) Define your values first. Make a list of your actual values at work, those that are truly practiced on a daily basis. Keep these values in mind while interviewing job candidates. (2) Question applicants about “inconsequential” matters. Applicants are more likely to reveal their true values if you ask them about issues that they’re not prepared to discuss, such as their choice of university, hobbies, etc. (3) Ask open-ended questions. Phrase your questions without hints of your own viewpoint, so that applicants can answer without being influenced by your opinion. (4) Share your values. Explain your company’s values to potential employees. They will then be able to determine if there is an appropriate fit. (5) Analyze the results. Review your interview notes to decide what values the candidate seems to emphasize repeatedly. Then use that information, along with other interview data, to determine whether the applicant is an appropriate choice.