The Roemer Report On-Line, October 2003

’07 TRUCKS EYED CAUTIOUSLY: An informal survey by CK Marketing & Communications finds that many carriers are not sure whether they will buy trucks equipped with new emissions-reduction technology in 2007. CK president Chris Kemmer said, “A significant number of fleets believe there’s still enough time to take a ‘wait and see’ attitude towards buying trucks in 2007.” Most carriers will make their decision by the end of next year, she said. The survey found that 44 percent of fleets are undecided about purchasing trucks in 2007; 26 percent said they plan to buy trucks in 2007; and 36 percent said they would avoid buying trucks altogether that year. Meanwhile, Steve Duley of Schneider National, the country’s largest truckload carrier, said his company plans to “maintain the trucks we bought to avoid having to trade them in when the 2007 trucks become available.” Duley said Schneider is concerned about the 2007 trucks’ extra costs of routine engine maintenance and onboard diagnostic systems. Schneider estimates that life-cycle costs for the October 2002 engines are $50,000 higher than the previous generation of heavy-duty diesel engines, and life-cycle costs for the 2007 engines will be even higher.

FMCSA TO EXEMPT QUALIFIED DIABETIC TRUCKERS: The Federal Motor Carrier Safety Administration (FMCSA) announced that it will begin exempting certain insulin-treated diabetic truck and bus drivers from the diabetes prohibitions regulations. While the FMCSA is now accepting applications for diabetic exemptions, getting exempted is not easy. For starters, there is a six-month waiting period before exemptions can be granted, and exemptions will be granted for only two years at a time and must be renewed. Applicants must have driven a CMV safely for three years while taking insulin. They also must follow guidelines for managing diabetes and monitoring and maintaining safe blood glucose levels while operating a CMV. The rules state that drivers can have “no suspensions or revocations of the applicant’s driver’s license for the operation of any motor vehicle (including their personal vehicle); no moving violation citations while operating a CMV and no disqualifying diabetes-related complications.” Those interested in applying for an exemption must request an application from the FMCSA Diabetes Exemption Program, 400 Seventh Street, S.W., Washington, DC 20590.

EPA PROGRAM HELPS CARRIERS SAVE MONEY: The Environmental Protection Agency (EPA) has established a voluntary program for fleets that want to increase fuel efficiency and reduce greenhouse gas emissions. According to the EPA, the SmartWay Transport Partnership is designed to help fleets save fuel by adopting technologies and practices promoted by the program. These practices include idle reduction, improved aerodynamics, automatic tire inflation systems, wide-base tires, and more. Other benefits include being recognized as a responsible corporate citizen through publicity generated by the EPA and gaining competitive advantage by being listed as a “preferred carrier” for shippers who are participating in the program and seeking SmartWay carriers. Thanks to a grant from the EPA, the Electric Power Research Institute (EPRI) is able to offer carriers an onboard idle reduction package at half the regular cost. According to EPRI, the technology can reduce idle time by as much as 75 percent. One California carrier using the technology saved more than $2,000 a year per truck in fuel. The EPA currently is recruiting motor carriers of all sizes to participate in SmartWay. The basic requirement for those interested is to assess their current environmental efficiency using software provided by the EPA and pledge to improve on those levels. For more information on signing on as a partner, contact EPA’s Buddy Polovick at (734) 214-4928 or send e-mail to polovick.buddy@epa.gov. For information on the EPRI program, contact Bill Warf at (916) 732-6976 or send e-mail to bwarf@smud.org.

BRAKING FOR SAFETY: Truckers in Washington state recently were subjected to a day of random brake inspections by troopers who were instructed to inspect as many brakes as possible. About 21 percent of heavy-duty trucks inspected received tickets for defective brakes. Nationally, the number of trucks in operation with defective brakes is about 17.8 percent. That number has dropped in recent years, but “even 17.8 percent (is) unacceptable,” said Steve Keppler of the Commercial Vehicle Safety Alliance. Trucks cited for defective brakes usually are sidelined until repairs are made. Penalties for defective equipment are typically over $100. “Typically, (drivers) don’t get a bad attitude because in 99 percent of the cases,” said one officer, “they don’t want to operate with bad equipment and put their lives at risk.” The number of trucks with faulty brakes might make drivers of passenger vehicles more cautious, said one trooper. “Maybe they’ll think before they cut in front of a truck at rush hour and give it 10 feet to stop at 35 mph.”

SECURITY AN ONGOING CONCERN: An informal survey by International Truck & Engine found that security is a major concern for North American fleets. Some 70 percent of respondents said they are “very” or “somewhat” concerned about cargo and vehicle security, with approximately 56 percent saying hazmat haulers faced the greatest risk, over 50 percent believing agriculture and food distribution faced a higher than normal risk, and 44 percent saying regional and long-haul operations faced the greatest risks. According to Gary Petty, president of the National Private Truck Council (NPTC), there is cause for concern. “There have been 150 terrorist attacks worldwide over the last 10 years using trucks—trucks are the modality of choice for terrorists,” Petty said. Consider that about 800,000 trucks pass daily through the state of Illinois alone. Petty said the risk of a terrorist using a truck as a weapon is “very high” and “that’s why we have to look at ways of both expediting the implementation of security technology and giving the industry incentives to adopt it.” Most respondents said they believe the drivers themselves hold primary responsibility for safety on the roads, bridges, and highways, and nearly half believed that vehicle tracking technology could improve vehicle and cargo safety.

BULKING UP ON LIFE INSURANCE: What do employees really need in benefits? Benefits experts say it’s time to return to basics, not just because the economy is sluggish, but because that’s what employees truly need. Although many employers already offer basic coverage for life and disability insurance, many more need to re-examine how they educate their employees about these needs. For example, in many organizations, workers are told that life insurance equal to two to three times their salary is adequate, when it is actually much higher. The American Council of Life Insurers recommends that employees get five to seven times their annual earnings in life insurance. The same confusion holds true for disability insurance. According to one survey, just half of employees understand that only part of their salary is covered by their group long-term disability plan. Another survey indicates that less than 30 percent of employers offer both group long-term disability and individual supplemental disability insurance. Some employers are choosing to offer critical illness and long-term care coverage in lieu of increasing their life and disability protection. Experts say while these programs are important, especially for the growing number of baby boomers, group life and disability remain the most essential benefits for workers.

ARE YOU INSPIRING? Managers and executives caught up in the profits game are missing a much more important element of success. It’s crucial that leaders study how their employees perceive them. Leaders who fail to inspire and motivate employees often fail in many other aspects of business. Furthermore, those who fail to see their own shortcomings are often blind to their negative impact on others. For example, leaders who take credit for the work of their subordinates, or chastise them publicly, often wonder why morale is so low. One company, Envisionworks, offers a tool called an “Organizational Civility Index” to survey employees on how workers are treated. They’ve found that when employees are reprimanded often, when colleagues shout at one another, and peers block successes, it is because these behaviors usually begin at the top. These companies are often headed by executives who have weak or tyrannical leadership styles. On the other hand, when executives make a concerted effort to lead and inspire their employees in a more thoughtful and productive manner, the bottom line—and the workers—flourish. And experts say it all begins with a simple question leaders can ask: “How am I doing?”

Originality is unexplored territory. You get there by carrying a canoe—you can’t take a taxi.—Alan Alda, actor