By Rip Watson, Senior Reporter
This story appears in the Dec. 3 print edition of Transport Topics.

ARLINGTON, Va. — The emergence of natural gas as a viable fuel for trucking is dependent on progress in overcoming infrastructure hurdles such as a dependable fuel supply network, a new generation of engines and driver acceptance, industry experts said last week.

“The big question is timing,” James Haslam II, chairman of Pilot Flying J, said when he addressed the American Trucking Associations’ Summit on Natural Gas in Trucking here on Nov. 29.

The summit, which continued on Nov. 30, after this edition was printed, attracted executives from fleets, tractor and engine manufacturers, and truck stop operators, suppliers and scientists. All were seeking to gauge the commercial promise of an alternative fuel to diesel, whose price stubbornly remains around $4 a gallon.

ATA President Bill Graves, who moderated a panel of truck stop executives, illustrated the broad interest in the subject by saying that “people always pose the question” about the future of natural

gas as a truck fuel wherever he travels. The event drew an overflow crowd of more than 500 attendees.

“The energy boom is the single greatest thing the country has going for it,” Pilot’s Haslam said. “We have to take advantage of this. The best place to do it is with trucks. We believe we will have the infrastructure in place to take care of your needs.”

Pilot Flying J is backing up that stance by building a natural-gas fueling network in partnership with Clean Energy Fuels Corp. The plan is to have 70 locations equipped by the end of this year and 150 by the end of 2013.

Thomas O’Brien, the CEO of TravelCenters of America, agreed but said the investment is too great to take on alone.

“Natural gas is a very viable option over the long term,” he said. “The demand today from customers, frankly, is not sufficient to start this on my own.”

O’Brien’s chain is proceeding, though, because it has created a natural gas supply partnership with Shell Oil to develop 100 fueling stations at TA locations... Continue reading. (Log-in to TTNews is required.)

Victor M. Mendez, U.S. Department of Transportation Federal Highway (FHWA) administrator, recently spent a day at Volpe, The National Transportation Systems Center, to learn about Volpe's FHWA work portfolio and talk to staff about innovation. During the administrator's visit, Volpe experts briefed Mendez on a variety of efforts, including Volpe's role in the second Strategic Highway Research Program (SHRP2) and efforts in economic analysis, professional capacity building, transportation planning, environmental stewardship, and program evaluation.

Mendez shared his perspectives on the challenges FHWA is currently facing and also spoke to the Volpe community about innovation. "One of my favorite topics is innovation," said Mendez. In today's world, with limited resources and safety challenges, there is a need to find ways to innovate the transportation industry and implement great ideas.

Mendez paved the way for just that when he launched Every Day Counts, an initiative designed to identify and deploy innovative technologies that shorten project delivery, enhance the safety of our roadways, and protect the environment. Every Day Counts is a partnership between the Federal Highway Administration, state DOTs, local governments, and the construction and consulting communities.

"The essence of good inventions is looking at the world in a different way—coming forth with new ideas and not necessarily new inventions," said Mendez, who spoke during Volpe's Straight from the Source lecture series on October 25. A key element of Every Day Counts is that it seeks innovative input from all employees, opening channels and providing a venue to bring new ideas to the table.

Every Day Counts is designed to shave years off the delivery process, including conventional highway projects, which take roughly 14 years to build. "People cannot wait 14 years, and I do not think we should have to wait 14 years to enjoy the benefits of a safer infrastructure," said Mendez.

A proponent of design-build, Mendez spoke about local communities knowing what works best for their projects, using the Fast 14 project as an example. Under Fast 14, the Massachusetts Department of Transportation replaced 14 bridges over a 10-weekend period. Traditionally, this would have taken three to four years to complete. This is the kind of innovation that we are looking for, he said. As a result of using the accelerated bridge construction approach, traffic congestion was minimized and safety was increased by working weekends: an innovative solution that helped improve people's lives.

Congress has taken notice of the innovative solutions offered by Every Day Counts and brought many of these ideas into MAP-21, a law authorizing $105 billion for surface transportation through 2014. It is anticipated that in the next 5 to 6 years, bridges will be built using a similar design-build approach rather than the traditional approach.

Our transportation system affects the lives of people every day and is a major economic driver in our country, Mendez said. One challenge that our system faces is that our workforce is facing a transition—the trend of more experienced people nearing retirement and leaving the industry. By making innovation part of the basic culture of transportation, though, it creates a culture that lasts and continues long after those that depart the workforce. It is important to address this issue by keeping the pipeline filled with talented people with innovative ideas.
Mendez concluded by saying that with limited resources, we need to improve to be better, work smarter, deliver transportation projects sooner, and encourage states to use new technologies. At a time when we are experiencing challenging constraints, Every Day Counts touches on creating jobs, maintaining infrastructure, enhancing safety, protecting the environment, and growing the economy.

Standing Tall” – The U S Capitol Christmas tree AND our American soldiers. To hear the winning song go to http://bit.ly/11kQK9k and scroll down.

For Immediate Release
November 30, 2012
Contact: Michael Nellenbach, Director of Communications
(703) 838-1950 or This email address is being protected from spambots. You need JavaScript enabled to view it.

TCA Highway Angel Spokesperson Lindsay Lawler to Perform

December 4th at Lighting of the Capitol Christmas Tree
Lawler wrote the theme song for 2012 tree project

Alexandria, Va. – The Truckload Carriers Association (TCA) is pleased to announce that its official Highway Angel spokesperson, country music singer Lindsay Lawler, will perform December 4th at the lighting ceremony of the U.S. Capitol Christmas tree. She will also sing at three associated receptions, including one for Congressional representatives.

The 2012 U.S. Capitol Christmas tree is a 73-ft. Engelmann Spruce that was harvested near Meeker, Colo., in early November. For 23 days, it traveled to towns and cities across the U.S. on a custom-decorated, Mack Pinnacle truck driven by former Sen. Ben Nighthorse Campbell. TCA and several industry partners sponsored stops in Dallas and Nashville, both of which included performances by Lawler. She also sang at the initial kickoff celebration in Colorado.

Lawler became involved with the tree when she wrote a song that was chosen as the project’s official theme for 2012. Beating out nearly 300 competitors, “Standing Tall” describes the tree’s journey across America and its symbolism as a “light in the dark for us all.” The lyrics also praise those who fight for freedom so that Americans can continue to live the American Dream. To listen to the song, visit the U.S. Capitol Christmas Tree’s Web site at http://bit.ly/11kQK9k.

According to Lawler, “I was thrilled to write the winning song, one that speaks to the importance of the People’s Tree. It’s a beautiful symbol of unity for our nation. The fact that the tree has traveled from Colorado to Washington by truck makes this project even more important to me, because I love being affiliated with the trucking industry through TCA. I am proud to say a truck was the vehicle that delivered this wonderful tree to the people of the United States.”

Chris Burruss, president of the Truckload Carriers Association, and Deborah Sparks, TCA’s vice president of development, plan to escort Lawler to the tree lighting ceremony and her other performances. “We’re very proud that our Highway Angel spokesperson is playing such an important role in a nationwide celebration,” said Burruss. “When it comes to showing the general public a positive side of trucking, Lindsay is a terrific role model.”

The 2012 Capitol Christmas Tree continues a hallowed American tradition that originated nearly 50 years ago. The tree lighting ceremony takes place at 5:00 p.m. on December 4th. Afterward, visitors can view “The People’s Tree” nightly from dusk to 11 p.m. throughout the holiday season. For more details, visit http://capitolchristmastree2012.org.

By Seth Clevenger, Staff Reporter
This story appears in the Nov. 26 print edition of Transport Topics.

Used heavy-duty truck prices softened in October at the same time the average mileage of used tractors climbed to an all-time high, ACT Research said last week.

October was the second straight month that used truck prices declined from the corresponding month a year earlier, said ACT Vice President Steve Tam. Prior to September, prices had increased year-over-year for 30 consecutive months, he said.

The average price of a used Class 8 truck sold by retailers, wholesalers and auctioneers declined to $38,496 in October, down 3.5% from $39,874 in September, and 7.3% from $41,522 in October 2011, according to ACT’s preliminary figures.

The average mileage of a used truck sold in October was 570,570, “the highest we’ve seen since we started collecting used truck data,” said Tam, who described the rise in mileage as the main driver of the pricing decline. Average mileage was up from 559,901 in September and 533,166 in October 2011, he said.

“The used truck buyer is buying the remaining life in that truck, so if there’s less remaining life, he’s not going to pay as much for it, all other things being equal,” Tam said.

Despite the recent downturn, the average used truck price for the first 10 months of 2012 was $42,250, up 9% from the same timeframe last year.

Although new truck buyers have been holding on to their equipment for extended cycles, there are signs that they may begin to ramp up replacement, Tam said.

“The preliminary net-order numbers for October were very strong, so that suggests that it’s time to get the replacement ball rolling,” he said.

Truck makers received 23,200 new Class 8 orders in October, the highest total since January, ACT reported earlier this month (11-12, p. 1).

Tam said he wasn’t sure if October’s figure was the high-water mark for average mileage, “but we’ve got to be fairly close.”

American Truck Dealers did not yet have pricing data for October, but said the average retail price of a used Class 8 sleeper in September was $48,740, down from $49,627 in August and $49,049 in September 2011. ATD is a division of the National Automobile Dealers Association.

Chris Visser, senior analyst for ATD/NADA, said the pricing of used 2010 and 2011 models has depreciated the most.

“I think the market has finally put a bit of a ceiling on the newer model years as to what people are willing to pay,” Visser said. “The price just got high enough where people are either making the jump to new or deciding to live with an older tractor.”

ACT said the sellers it surveys sold 1,563 trucks in October on a same dealer basis. That total was up from 1,238 in September, but down from 1,766 in October 2011.

Year-to-date, those dealers have sold 15,434 used trucks in 2012, down from 18,065 in the same timeframe last year, ACT said.

Used truck dealers are still having a hard time moving 2008 and 2009 models, said Rick Clark, president of the Used Truck Association.

“Most people are looking at ’07s and ’10s,” he said. “Inventory hasn’t really flipped, and I don’t think dealers are writing them down, overall.”
 
Clark, who also is vice president of National Truck Protection, Cranford, N.J., said the mileage is “way up” on his customers’ trucks.

“We’re putting warranties on ’07s with 800,000 or 900,000 miles,” he said. “We see a spike in that, and it’s rare to see them in the 400,000s and 500,000s.”

Clark said he expects to see higher warranty sales, which mirror used truck sales, in areas where equipment was damaged by Superstorm Sandy.

“Once everyone gets their insurance taken care of, I would expect within the next couple weeks we’ll have a pretty large [sales] spike in the Northeast,” he said.

Louis Pinheiro, a salesman at the Arrow Truck Sales dealership in Elizabeth, N.J., said its used truck lot was spared by Sandy, and customer traffic jumped following the storm.

“Most of the guys who are coming into our store have flooded trucks,” he said. “It seems to be moving pretty quickly with the insurance adjusters getting to the trucks and telling these guys if it’s total loss or not.”

Chris Visser, senior analyst for ATD/NADA, said the pricing of used 2010 and 2011 models has depreciated the most.

“I think the market has finally put a bit of a ceiling on the newer model years as to what people are willing to pay,” Visser said. “The price just got high enough where people are either making the jump to new or deciding to live with an older tractor.”

ACT said the sellers it surveys sold 1,563 trucks in October on a same dealer basis. That total was up from 1,238 in September, but down from 1,766 in October 2011.

Year-to-date, those dealers have sold 15,434 used trucks in 2012, down from 18,065 in the same timeframe last year, ACT said.

Used truck dealers are still having a hard time moving 2008 and 2009 models, said Rick Clark, president of the Used Truck Association.

“Most people are looking at ’07s and ’10s,” he said. “Inventory hasn’t really flipped, and I don’t think dealers are writing them down, overall.”

Clark, who also is vice president of National Truck Protection, Cranford, N.J., said the mileage is “way up” on his customers’ trucks.

“We’re putting warranties on ’07s with 800,000 or 900,000 miles,” he said. “We see a spike in that, and it’s rare to see them in the 400,000s and 500,000s.”

Clark said he expects to see higher warranty sales, which mirror used truck sales, in areas where equipment was damaged by Superstorm Sandy.

“Once everyone gets their insurance taken care of, I would expect within the next couple weeks we’ll have a pretty large [sales] spike in the Northeast,” he said.

Louis Pinheiro, a salesman at the Arrow Truck Sales dealership in Elizabeth, N.J., said its used truck lot was spared by Sandy, and customer traffic jumped following the storm.

“Most of the guys who are coming into our store have flooded trucks,” he said. “It seems to be moving pretty quickly with the insurance adjusters getting to the trucks and telling these guys if it’s total loss or not.”

By Jonathan S. Reiskin, Associate News Editor
This story appears in the Nov. 26 print edition of Transport Topics.

American Trucking Associations this week will convene a two-day, public conference on the industry’s use of natural gas, a development that several executives said may significantly alter U.S. trucking operations by displacing much of the diesel fuel the industry burns.

The sold-out ATA Summit on Natural Gas in Trucking will run Nov. 28-30 in Arlington, Va., and has attracted more than 500 attendees, more than twice the number the trucking federation originally thought would attend.

The 11 sessions draw together executives from trucking, truck and engine manufacturing, truck stops, natural-gas producers and vehicle maintenance. There will also be representatives from the U.S. Energy Department, an environmental advocacy group and several policy groups, and two members of the House Energy and Commerce Committee.
 
 “This is a cutting-edge symposium,” said ATA Chairman Michael Card. “ATA is very concerned about the environment, engine exhaust and reducing our carbon footprint.”

“We also need our country to be more energy self-sufficient, and this has the potential to help America’s energy security,” said Card, who is also president of Combined Transport Inc., Central Point, Ore.

“We couldn’t be happier with the quality of the speakers we have attracted,” said ATA President Bill Graves.

“We’ve moved past the question of whether natural gas is viable as a fuel for trucking. It certainly is, but now we have to go fleet by fleet and look at the details,” Graves said.

In talking to fleet executives during the year, Graves said he has seen carriers fit into three groups: those that are already very involved with CNG or LNG — compressed or liquefied natural gas — and have already generated results; those that are seriously inclined toward using natural gas but aren’t entirely sold; and those that are pessimistic and far from being sold.

There will be information in this summit that is relevant for people in all three camps,” Graves said.

Among fleets with a demonstrated interest, Ryder System said Nov. 15 that it now owns 215 CNG tractors and 35 powered by LNG. Collectively, the vehicles have racked up more than 6 million miles, displacing 923,000 gallons of diesel that would have been burned last year and this year.

Ryder, based in Miami, ranks No. 10 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers and works in full-service truck leasing and dedicated contract carriage.
Ryder Vice President Scott Perry will speak at the summit about maintenance and shop considerations, along with executives from Navistar Inc., Exxon Mobil Corp. and supermarket chain Giant Eagle Inc.

If the use of natural gas spreads, it will be particularly important for truck stops.

“There’s a lot of discussion about this among truck stop operators. This could be the next big fuel,” said Lisa Mullings, president of Natso Inc., a trade group representing truck stop operators.
Mullings said many members of her industry have changed significantly in their attitude toward natural gas over the past 12 months.

“More and more of them are starting to put in natural gas. There’s a lot less uncertainty about this than there was a year ago,” she said.

Graves will moderate a panel discussion early in the program featuring top executives from three of the largest truck stop chains: Jimmy Haslam, CEO of Pilot Flying J; Tom O’Brien, CEO of TravelCenters of America; and Frank Love, president of Love’s Travel Stops.

All major North American heavy-duty truck and engine makers plan to send a representative to the panel moderated by Transport Topics Publisher and Editorial Director Howard Abramson. Executives from Freightliner Trucks, Kenworth Trucks, Navistar and Volvo Group will talk about their approaches to natural-gas power.

Joining them will be representatives from the three companies that currently make or adapt engines to run on natural gas: Cummins Inc., Westport Innovations and a joint venture of the two companies, Cummins-Westport.

Arlington, VA – The Board of Directors of the American Transportation Research Institute (ATRI) recently appointed 17 new members to its Research Advisory Committee (RAC).  The RAC is charged with annually identifying the trucking industry’s top research needs.  RAC members represent a diverse group of industry stakeholders including motor carriers, industry suppliers, academics, government, driver groups and law enforcement.  The new members, along with 16 reappointed members, will serve a two-year term starting January 2013. 

The ATRI Board also appointed Steve L. Niswander, Vice President of Safety, Policy and Regulatory Relations for Groendyke Transport in Enid, Oklahoma as Chairman of the Research Advisory Committee.  Niswander has been a member of the RAC since 2009 and he will serve as Chairman of the 2013-2014 RAC. He will be responsible for leading the group’s identification, review and prioritization of the industry’s research agenda. 

Newly appointment members of the ATRI Research Advisory Committee:

ATRI is the trucking industry’s 501(c)(3) not-for-profit research organization.  It is engaged in critical research relating to freight transportation’s essential role in maintaining a safe, secure and efficient transportation system.

US Labor Department’s OSHA urges hurricane recovery workers to protect themselves against hazards

BOSTON – The U.S. Department of Labor’s Occupational Safety and Health Administration is urging workers and members of the public engaged in Hurricane Sandy cleanup and recovery efforts in New York, New Jersey and the New England states to be aware of the hazards they might encounter and the steps they should take to protect themselves.

“Storm recovery workers are working around the clock to clean up areas impacted by the storm,” said Robert Kulick, OSHA’s New York regional administrator. “We want to make sure that workers are aware of the hazards involved in cleanup work and take the necessary precautions to prevent serious injuries.”

OSHA field staff members are providing safety assistance, technical support, and information and training to those involved in the recovery efforts. For more information about unsafe work situations, workers and the general public can contact OSHA’s toll-free hotline at 800-321-OSHA (6742).

For more information about protecting workers during Hurricane Sandy recovery, visit http://www.osha.gov/sandy/index.html. This comprehensive website offers fact sheets, concise “quick cards,” frequently asked questions, safety and health guides, and additional information in English and Spanish.

Cleanup work can involve restoring electricity, communications, and water and sewer services; demolition activities; removal of floodwater from structures; entry into flooded areas; cleaning up debris; tree trimming; structural, roadway, bridge, dam and levee repair; use of cranes, aerial lifts and other heavy equipment; hazardous waste operations; and emergency response activities.

Inherent hazards may include downed electrical wires, carbon monoxide and electrical hazards from portable generators, fall and “struck-by” hazards from tree trimming or working at heights, being caught in unprotected excavations or confined spaces, burns, lacerations, musculoskeletal injuries, being struck by traffic or heavy equipment, and drowning from being caught in moving water or while removing water from flooded structures.

Protective measures include evaluating the work area for all hazards; assuming all power lines are live; using the right personal protective equipment (hard hats, shoes, reflective vests, safety glasses); conducting exposure monitoring where there are chemical hazards; following safe tree cutting procedures to prevent trees from falling on workers; and using fall protection and proper ladder safety when working at heights.

For additional information on grants, cleanup efforts and recovery resources, visit the Labor Department’s Hurricane Recovery Assistance Web page, which is being continuously updated at http://www.dol.gov/opa/hurricane-recovery.htm. Also, a checklist of activities to be undertaken before, during and after a hurricane is available from the Federal Emergency Management Agency at http://www.ready.gov/hurricanes.

Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA’s role is to ensure these conditions for America’s working men and women by setting and enforcing standards, and providing training, education and assistance. For more information about the agency, visit http://www.osha.gov.

Source: comstocksmag.com/Articles/1012_F_t
ransportation_thirty_million_gamble.aspx
(scroll down for the article)

The trucking industry is facing a significant driver shortage as baby boomers retire and younger people are unwilling to replace them. The shortfall eased a bit during the recession as fewer trucks took to the road, but with the economy recovering, industry leaders say the shortage is becoming problematic.

The American Trucking Associations predicts the industry will be short approximately 110,000 drivers by 2014, while other estimates peg the figure up to three times higher. That deficit has been paying dividends for those who remain.

“Driver salaries are on the rise,” says Michael Shaw, a spokesman for the California Trucking Association. “Demand is outstripping supply.”

That is good for drivers but not so much for consumers: Most industry experts believe the increased driver costs will ultimately mean higher prices for the goods they deliver.

There are many reasons for the shortfall. Younger people aren’t as interested in the field any more. In this era of health consciousness, the job is perceived as too hard on the body. And long-haul truckers can be required to be gone from home for weeks at a time.

The financial payoff is also questionable. Many large companies prefer to hire truckers who own a rig, which can be an expensive proposition for a potential driver. And new regulations in California related to greenhouse gas emissions have made it even more difficult for truckers to afford equipment.

However, there are other signs that workers are enlisting in the field because job prospects are so poor elsewhere. David Decker, director of education for the Western Truck School in West Sacramento, says he has seen a slight increase in the number of students willing to fork over the $2,000 to $5,000 needed to pass his training program. He says it is too soon to know if the spike is temporary, but he remains optimistic that the industry will eventually be able to fill its needs. For all its challenges, he notes, trucking has something many industries can’t offer these days: job security.

“It’s harder than ever to make a living now,” Decker says. “But I’m seeing a lot more people coming here now who have already had careers in other fields. They’re coming here because they just need a steady job.”

— Rich Ehisen

Source: comstocksmag.com/Articles/1012_F_transportation_thirty_million_gamble.aspx (scroll down for the article)

BTS Releases Freight Transportation Services Index (TSI); Freight Shipments Rose 0.2% in September from August

The amount of freight carried by the for-hire transportation industry rose 0.2 percent in September from August, rising after a one-month decline, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics’ (BTS) Freight Transportation Services Index (TSI) released today. The September 2012 index level (109.2) was 15.8 percent above the April 2009 low during the recession.

BTS, a part of the Research and Innovative Technology Administration, reported that the level of freight shipments in September measured by the Freight TSI (109.2) dropped 4.2 percent below the all-time high level of 114.0 in December 2011. BTS’ TSI records began in 1990.

The Freight TSI measures the month-to-month changes in freight shipments by mode of transportation in tons and ton-miles, which are combined into one index. The index measures the output of the for-hire freight transportation industry and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight.

Analysis: The Freight TSI in September 2012 continued a pattern of little change since January as some other indicators showed an uptick in economic growth. Gross Domestic Product (GDP) grew 2.0 percent in the third quarter, up from 1.3 percent growth in the second quarter (though below 4.1 percent in fourth quarter of 2011), according to the Bureau of Economic Analysis (BEA). Employment grew by 0.6 percent in September. Almost all freight modes experienced some increase in September, but rail freight showed a significant decline.

Trend: Since peaking in December 2011 (114.0) at the highest level in the 22-year history of the Freight TSI series, the index has remained in a narrow band during the nine months of 2012. It reached a high of 110.6 in February and a low of 109.0 in August. After dipping to 94.3 in April 2009 during the recession, freight shipments increased in 27 of the last 41 months, rising 15.8 percent during that period.

Index highs and lows: Freight shipments in September 2012 (109.2) were 15.8 percent higher than the recent low in April 2009 during the recession (94.3). In April 2009, freight shipments were at their lowest level since June 1997 (92.3). The September 2012 level is down 4.2 percent from the historic peak reached in December 2011 (114.0).

The Federal Motor Carrier Safety Administration (FMCSA) and its State partners will be conducting random verifications of driver Medical Examiner's Certificates (MEC) during enforcement activities. The purpose of these validations is to obtain verbal confirmation that the medical examination was conducted and the information on the Medical Examination Certificate is accurate. It is not to evaluate the driver's medical fitness to operate a CMV.

The FMCSA will take the following steps to validate the authenticity of MECs:

1. Contact the Medical Examiner's (ME) office at the telephone number indicated on the certificate;
2. Explain the inquiry's purpose and indicate that it is intended solely to confirm that the document presented by the driver matches the records maintained by the ME. Direct contact with the actual ME is not required - an authorized staff member may provide the requested information; and
3. Provide the driver's name and date of birth, the date of issuance of the MEC and any restrictions indicated thereon and request verbal confirmation of the information provided.

The FMCSA appreciates the MEs' cooperation in our effort to eliminate the use of fraudulent MECs and to keep medically unqualified drivers off our nation's highways.