Source: truckinginfo.com/channel/fleet-management/news
/story/2013/05/werner-s-derek-leathers-on-the-industry-outlook.aspx

Slowly but steadily, freight demand is growing, says Derek Leathers, president and COO of truckload carrier Werner Enterprises. More demand is good, he says, but the risk is that it brings the truckload industry closer to an imbalance that could disrupt distribution.

Leathers, speaking at the ALK Transportation Technology Summit in Princeton, N.J., Wednesday, said that the supply-demand equilibrium has been tightening in recent months but not enough to expose how close the balance is.

We’re at the point where small variances in the supply chain can make a big difference, Leathers said.

For instance, the demand for beverages and snacks for Memorial Day could bounce up against demand for yard tools that has been delayed by cool April weather, he said. That may explain why Werner is seeing strong increases in its measurements of pending near-term demand.

It’s a situation that’s been created by a long-term downward trend in truckload capacity. Industry capacity is down 9.6% since the first period of 2008, and 17.6% since the fourth period of 2006, he said.

Truckload companies are not positioned to dramatically expand their fleets any time soon. Even replacing aging trucks is a problem, Leathers said.

The fleet now averages 6.6 years in age, compared to a normal age of 5.5. Leathers said the cost of rejuvenation would be $54 billion over two years.

“Where will the money come from?” Leathers asked. Interest rates are low but banks are not willing to lend.

The solution will involve making the most of in-house productivity with new technology tools to manage freight, and using other modes to move freight where it makes sense, he said.

Technology is not a solution by itself, he added.

“You need the proper blend between technology and human interaction,” he said. “If you have a broken process or broken strategy, all the technology in the world ain’t gonna fix that, it’s just going to make it very efficiently wrong.”

The fleets that survive will be the ones that can offset rate increases with innovation, he said.

“The secret sauce is to find a way to move less loads. You need to have the optimization and collaboration that is required to thread the needle to get the rate you need while respecting the customer’s need to lower costs.”

Intermodal opportunities will be another key to success, he said.

“We are in midst of a renaissance in intermodal.”

The opportunity is limited by the nature of rail versus freight: 77% of all freight moves by truck in ways that are not competitive with rails, and 15% of rail freight is not competitive with trucks.

But 5% of trucking could go by rail, and 3% of rail freight could go on the highway.

“Our job as logistics providers is to look every day for increased opportunities to save our customers money and one of the lowest hanging fruits is in that small sliver to maximize the conversion opportunity.”

That means putting the best intermodal freight on rail.

“We must continuously look for the best combined efforts of all modes. It’s where technology can make a difference,” he said.

“Absent that, we will have a freight capacity tightness that will be a net negative for the economy.”

Leathers also said that “nearshoring” to Mexico is growing rapidly, referring to manufacturing work that is being relocated from Asia to Mexico.

Manufacturers are not shutting down their Asian plants but are moving their incremental growth back to Mexico, in part to balance fuel costs.

Leathers is not optimistic about the possibility of improving trucking productivity by increasing sizes and weights.

He would like to see a change that allows 88,000-pound, 5-axle trucks, rather than current legislation that would allow states to permit 97,000-pound, 6-axle units.

The 88,000-pound trucks can stop as well as the current 80,000-pound standard, and the industry would not have to buy new trailers and axles.

He also would like for states to be able to establish regional corridors where certain types of operations could run heavier vehicles.

“(But) there’s very little chance of success,” he said. “I just don’t think it’s going to happen.”

Leathers is not pleased with the way federal safety regulations are being implemented. 

“Hours of service, CSA…regardless of how clearly you demonstrate how the regulation has missed the mark, it takes too long to fix.”

One problem with the HOS rule is that mandatory electronic logging is not yet in place, so there’s no way to ensure that the rules are being obeyed.

“We missed the mark on this one,” he said. “We need to focus on electronic logs to ensure that we are compliant.”

CSA brought the driver to the table, a good thing, but it is flawed by a lack of correlation between scores and safety performance. Under CSA, 329,000 carriers have been inspected but only 89,134 have enough inspections to generate a Safety Management System score, he said.

Source: truckinginfo.com/channel/fleet-management/news/story/2013/05/werner-s-derek-leathers-on-the-industry-outlook.aspx

The U.S. Department of Transportation Seeks Stakeholder Input on the Next ITS Strategic Research Plan, 2015-2019

The U.S. Department of Transportation (USDOT) is seeking public input as it develops the next version of the ITS Strategic Plan. A new document called An Open Dialogue on the Draft Focus and Themes for the Next ITS Strategic Research Plan: Engaging Stakeholders in Their Discussion and Development was released today and it identifies the ITS-related issues that USDOT will focus on for the rest of the decade.

The current  ITS Strategic Research Plan—2010-2014 established a focused research agenda to prepare the next generation of intelligent transportation system (ITS) technologies for widespread deployment throughout the nation. This discussion document is the first step in developing the ITS research agenda for 2015 to 2019.

The purpose of the document is to identify the focus and themes for the next installment of the ITS Strategic Research Plan and invite stakeholders to participate in their discussion. This open dialogue will enable continuity of the USDOT’s current research programs while establishing new or redefined goals and objectives to meet emerging research needs.

The document presents the following broad themes for discussion:

• Maturing Connected Vehicle Systems – Focuses on what is needed to accelerate the maturity of vehicle-based communications with surrounding systems
• Piloting and Deployment Readiness – Focuses on the security, policy, business opportunities, capabilities, pilots, and incentives needed to support vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) implementation
• Integrating with the Broader Environment – Focuses on the integration and decision support capabilities to enable V2V and V2I interaction with other governmental services and public utilities.

The discussion document provides an opportunity for stakeholders to share their perspectives and help shape the future of federal ITS research.

To participate in the discussion, visit http://itsstrategicplan.ideascale.com/.  The full document is available at http://www.its.dot.gov/strategicplan.

Additional ITS Resources on the Federal Highway Administration Office of Operations Website

Earlier this month, Schneider National's long history of military support was recognized by both the State of Wisconsin and Wisconsin's Department of Veterans Affairs (WDVA) during a ceremony held at Schneider's Corporate Headquarters in Green Bay, Wis.

The office of Wisconsin Governor Scott Walker honored the truckload carrier with a Certificate of Commendation for "going above and beyond in its mission to hire veterans." In the commendation, Gov. Walker noted Schneider's various programs designed to help people with military backgrounds become truck drivers.

Schneider associate (and former member of the U.S. Marine Corps) Grailing Jones also received a Certificate of Commendation from Walker's office. In his role as the company's small business owner-operator development manager, Jones helps current and former military personnel become small business owners by purchasing their own trucks and hauling freight for Schneider National.

In addition, the WDVA presented Jones with a "Year of the Veteran Award" for his outstanding leadership and exemplary advocacy for veterans and their families. This marked the first time the award was given to an individual instead of an organization.

Attached please find a picture taken after the ceremony in which the three awards were presented by WDVA Secretary John Scocos. Pictured (from left):
Lori Lutey (CFO, Schneider National), Steve Crear (General Manager of Schneider Finance, Schneider National), Grailing Jones (Small Business Owner-Operator Development Manager, Schneider National) and John Scocos (WDVA Secretary).

This past Saturday, Dec. 15, Schneider National's military-themed truck, the Ride of Pride, embarked on a special mission to deliver 5,000 wreaths to Arlington National Cemetery. The annual Wreaths Across America program included 110,000 wreaths delivered and laid upon soldiers' graves by volunteers. Schneider Ride of Pride driver and U.S. Army veteran, Greg Roberts of Eastpointe, Mich., participated in the wreath-laying ceremony to promote veterans' remembrance. (See attached photo of Greg laying a wreath on a soldier's resting place.)

Because similar wreath-laying events were held throughout the country on Saturday, Schneider National also delivered nearly 10,000 wreaths to Ft. Sam Houston National Cemetery in San Antonio.

Schneider National, one of the nation's largest truckload carriers, has been involved with Wreaths Across America's annual wreath-laying effort since 2010.

By Paul Goodsell
WORLD-HERALD STAFF WRITER
Source: omaha.com/article/20121125/NEWS/711259933/1697

SHANGHAI — Andy and Shellie Nelson's tile floor was born here in a sweltering, dusty factory, fashioned out of Chinese clay and fired in a furnace as long as a football field.

Before it reached the Nelsons' suburban Omaha home, the tile traveled thousands of miles across ocean, mountains and plains.

In fact, it took an international bucket brigade of trucks, ships and trains more than a month to bring the tile to an Omaha factory, where it was assembled into a unique, interlocking flooring product and eventually sold at Nebraska Furniture Mart.

The Nelsons' tile floor is an example of the interconnected world economy — the result of Nebraska innovators who joined forces with a Taiwanese tile vendor, a Malaysian-owned tile maker outside Shanghai, Canadian machine toolers and American factory workers in Michigan, Wahoo, Neb., and Omaha.

But the tiles' journey from China to Omaha itself is a story of global connections with a local twist: the worldwide logistics company run by Sarpy County's Werner Enterprises.

With its headquarters near the Sapp Brothers coffeepot at Interstate 80 and 144th Street, Werner is best known for its trademark blue trucks that help the company pull in about $2 billion in annual revenues. That's enough business to rank Werner third-highest in the nation among publicly traded trucking companies.

Increasingly, however, Werner's revenues come not from hauling goods in blue trucks but from the company's logistics services — helping customers manage shipments of goods through their supply chains.

“It's been very successful for them,” said Donald Broughton, a senior transportation analyst and managing director for Avondale Partners in St. Louis. “It's been an engine of growth.”

Werner Global Logistics employs 75 people at the company's Omaha headquarters, a workforce that has more than tripled in four years.

China is a key part of Werner's $500 million logistics business. The company entered the China market in early 2006 and now has 50 employees in its Shanghai and Shenzhen offices.

“We went into China with a very clear understanding of our customers' needs for transparency, efficiency, a fact-based supply chain,” said Craig Stoffel, global logistics vice president.

Basically, Werner helps companies like Omaha's SnapStone Tile arrange efficient shipments and track them through the transportation process. If there are problems, Werner can help resolve them.

Without logistics coordination, shipments from, say, a Chinese vendor to a U.S. company can fall into a “blind spot” for weeks — leaving the customer unsure whether the product actually left the overseas factory, if it has made it onto a freighter at the Chinese port, and when it might reach a U.S. port... Continue reading...

Source: omaha.com/article/20121125/NEWS/711259933/1697

At its annual awards banquet on Aug. 29, the Enlisted Association of the National Guard of the United States (EANGUS) presented the Al Schneider Award to CSX Transportation, one of the nation's leading rail-based transportation service providers. This honor, named for the founder of Schneider National, Inc., annually recognizes an employer who shows extraordinary support of those in the Guard and Reserve.

Schneider National was the first recipient of the award in 1991, at which time the award was named in tribute to Schneider. Since that time, other winning companies have included 3M, General Motors, Boeing, UPS, Home Depot and Microsoft.

In attendance at the Long Beach, Calif. ceremony included those pictured: left to right, Robert Soto (Ramp Operations Manager, Schneider National), Mario Morales (Account Manager, CSX), EANGUS President Roger Hagan, and CSM John Gipe, also an employee of CSX.

Source: huffingtonpost.com/michael-j-hinz/truck-driver-industry_b_1877047.html

by Michael J. Hinz
Vice President, Driver Recruiting, Schneider National Inc.

As America slowly pulls itself out of a recession, high unemployment levels remain in many areas. But there is at least one industry in the U.S., one I am most familiar with, that is growing and has a shortage of workers: trucking.

Many industry analysts project the current shortage of truck drivers at 130,000 nationally, and growing. The truck driver shortage will continue to grow due to a number of reasons, primarily a large number of upcoming retirements and the fact that more drivers will be needed to haul more goods as the economy rebounds. More than 70 percent of freight in the U.S. is delivered to retailers and manufacturers by truck. Just about everything you buy, consume, use or wear is delivered by a truck driver.

Building a strong pipeline of skilled workers must be a priority for businesses; our future growth and success depends on it. That is why Schneider National recently joined forces with Olive-Harvey College, one of the City Colleges of Chicago, to take a major step toward reversing this trend and replenishing the ranks of commercial drivers and transportation professionals in Illinois.

Truck driving jobs today are not what they once were, when drivers were gone for weeks at a time driving uncomfortable trucks. In fact, 75 percent of Schneider National's drivers get home at least weekly. Schneider's drivers also operate state-of-the-art trucks with in-cab technology that provides Internet access and detailed directions to pick-up/delivery locations at the touch of a finger.

In six to eight weeks, students at the City Colleges of Chicago can go from unemployed or underemployed to great new careers that offer complete benefits, retirement plans and steady paychecks -- earning $50,000 or more per year in a short time. For a relatively small investment of time and tuition, students can earn credentials for a job that is in high demand, can never be outsourced and has room for advancement. (See the video below profiling Kenneth Washington, a recent Olive-Harvey graduate and a new Schneider driver.) Many drivers move on and become small business owners by purchasing their own truck and leasing with a trucking company such as Schneider as an owner-operator. A new job that is in high demand with a great chance for immediate placement after graduating, benefits, great pay and the opportunity for advancement to a small business owner... now that's the American Dream.

Our partnership with community colleges is growing and we are excited to be part of something new. Schneider National, along with other transportation leaders, is currently working with City Colleges of Chicago to create a new standard in quality transportation training and education. The new Transportation, Distribution & Logistics Center at the City Colleges of Chicago will be a prototype for training in our industry. Preparing students for careers in ground, air and rail transport, multi-modal distribution and logistics, it will be the first comprehensive education center for the transportation industry in Illinois.

Industry experts working in the field, including Schneider National, will visit the new center to help teach and train students. Industry partners are also well positioned to offer tools and equipment that might be a challenge to come by otherwise. For example, Schneider has donated a truck for student practice. These investments will ensure lesson plans stay current and match the needs and conditions of the industry. Students will learn skills that can be used in multiple career pathways.

As an industry, we cannot sit back and wait for these opportunities to be handed to us. We must get out there and work with community colleges to ensure we have the workforce we need to thrive and grow. We must also have the facilities and programs needed to offer continuing education to our workers so they can move up the career ladder.

There are hundreds of thousands of good-paying jobs available in trucking today. We need these private/public partnerships to help put Americans back to work so they can provide for themselves and their families.

To learn more about Schneider National's job opportunities, visit www.schneiderjobs.com or call 1-800-44-PRIDE.

Source: huffingtonpost.com/michael-j-hinz/truck-driver-industry_b_1877047.html

Source: http://www.jsonline.com/business/hair-tests-help-trucking-firm-keep-drug-users-off-road-hk6940b-164207156.html

Over the last four years, some 38,000 would-be truck drivers applying at Schneider National Inc. have had their hair snipped for a drug test.

Of those, 1,411 failed. The analysis detected cocaine, marijuana or other banned substances. Yet more than 90% of those 1,411 applicants were able to pass a urine test - the government-mandated, industry standard - looking for the same drugs.

In a way, that's not surprising. Molecules of methamphetamine, tetrahydrocannabinol and other drugs remain in urine for only a few days. They can stay bound in hair for months.

Not only that. Schneider tells applicants in advance that they'll be tested. A little abstinence and - bingo - clean urine sample.

"The urine-based drug test is simply not catching chronic drug users," said Don Osterberg, senior vice president of safety and security at the Green Bay-based firm.

So Schneider and a handful of other trucking companies, including Marshfield's Roehl Transport Inc., have added haircuts to their screening process.

That's meant that thousands of drug users aren't wheeling 80,000-pound trucks down the highway for Schneider, Roehl, J.B. Hunt and other firms.

"The bad news," said Osterberg, "is they are likely driving a truck for a carrier who doesn't require hair testing."

Now, Schneider and others in the industry want the U.S. Department of Transportation to put its stamp of approval on hair testing and allow test results to be shared with other trucking firms.

Currently, Schneider executives say, that's illegal because while the government allows hair testing, it's not officially recognized.

"That's one of the areas that need to be fixed," Osterberg said.

Hair testing has its limits and its critics. It doesn't detect recent drug use and may show positive results for smoked drugs when someone has merely been in the same room where they were consumed, according to the National Institute on Drug Abuse.

In Wisconsin, hair testing hasn't been accepted by the state Labor and Industry Review Commission, which decides appeals in cases involving unemployment insurance, worker's compensation and equal rights.

The U.S. Department of Health and Human Services is committed to studying testing methods beyond the one it now approves - urine - but has said hair and other specimens raise significant issues that may take more time to resolve.

Even without a federal imprimatur, though, the advantages of hair screening - not only does it show drug use over a much longer period than urine, but the test is more difficult to cheat - have helped spur increasing adoption in trucking.

"It's a deterrent," said John Spiros, vice president of safety and claims management at Roehl, which began testing hair a year ago. "When people know that you're doing hair-follicle testing, a lot of them won't even apply."

There's a huge volume of churn in trucking. Industrywide, annual driver turnover for truckload carriers - the long-haul, big-load fleets - is running somewhere between 70% and 90%.

That means the companies as a group are replacing more than seven out of 10 drivers a year. Some are leaving trucking, often after just a short time in the industry. Most are hopping from one company to another.

Either way, firms such as Schneider, with more than 11,000 drivers, or Arkansas' J.B. Hunt, with 10,500, do lots of hiring - and face lots of chances to hire someone who uses drugs.
Urine test easy to cheat

Urine testing alone will miss many of them. Beyond the narrow window on drug use that it offers, the test can be subverted easily, a 2007 investigation by the Government Accountability Office found.

Posing as commercial drivers, the undercover investigators went to 24 approved urine-collection sites around the country.

They gained entry to all 24 with bogus driver's licenses, showing that "a drug user could send someone to take a drug test in their place using fake identification."

At three quarters of the sites, the collection room offered running water or other means to dilute or adulterate a specimen.

And at eight of the sites, the investigators walked in - undetected - with purported drug-masking agents they bought on the Internet.

It's easy to find these things on the web, where companies tout products such as ClearTest, Quick Fix and Ultra Pure synthetic urine.

"Guaranteed to beat any of the urine tests," one firm promises. " . . . Just add warm water!"

For the GAO investigators, the promises proved true. Every drug-masking product they used went undetected by the screening lab, the agency reported.

"A urine-based drug test is very easy to defeat," Osterberg said. " . . . There's a whole cottage industry out there."
Too risky to hire

Gordon Klemp, managing partner of a firm that publishes research and analysis on trucking industry wages, estimates that 6% to 8% of driver applicants use drugs. He applauds use of hair testing, saying that hiring drug users is "a risk that carriers simply can't take."

From a business standpoint, the risk is financial liability if a drug-using driver is involved in an accident that kills or maims someone.

Failure to take the extra step of hair testing, even though it's not required by the government, could arguably expose trucking companies to such risk, said John Duncan Varda, a Madison attorney with more than 40 years of experience handling transportation matters.

Don Devitt, a Chicago attorney whose clients include carriers, said the concern is real, though more likely to be an issue in the future than now... Continue reading.

Gary Lautenslager recalls memories, friendships and company growth throughout his 44-year journey

GREEN BAY, Wis. — (July 11, 2012) — Gary Lautenslager has seen a lot in his lifetime. A great deal of the memories, friendships and adventures he has experienced throughout his life come from the 44 years he spent behind the wheel as a driver for Schneider National, one of the nation’s largest truckload carriers. In July Lautenslager, Schneider’s longest-tenured driver, is pulling the brakes on a career that has helped define the person he is today.

Of all the things Lautenslager says he has loved about his career, the best part is the freedom: “You're out on your own. You get to see a lot and I’ve had a lot of time to think about things. I always tell others my office is the open road,” he said. “Though it feels like the right time to hang up the truck keys, I’ll always consider myself a Schneider driver.”

Lautenslager first came to Schneider in 1964. While unsure of his next steps, Lautenslager left the company for four years. It was during that time, he says, that he realized he was meant to be on the road. There was only one company he had in mind: He returned to Schneider National in 1968 and called the company home for more than four decades. In hindsight, he says he never imagined he’d work for a company that would grow into one of the largest multimodal carriers in the country.

“It’s pretty rare to hear of workers sticking by one company for 44 years,” said Mike Hinz, vice president at Schneider. “Gary’s loyalty is inspiring to all of us here at Schneider. For that, he will forever be a member of the Schneider National family.” In May the company hosted a reception for Lautenslager to celebrate his upcoming retirement and thank him for his steadfast dedication.

In addition to his career on the road, Lautenslager also spent several years as a Driver Trainer in Green Bay, Wis., and West Memphis, Ark., sharing with others what he knew about the world of truck driving. He says he has probably taught hundreds of new drivers throughout his career and did it because he enjoyed teaching others the skills he had learned in order to help them build a better future for themselves.

Eventually, his love for driving rubbed off on someone else close to him: his wife, Patricia. In 1990, she decided she too wanted to hit the open road and together, the two have worked side by side as Team Drivers ever since.

Patricia says it takes a special kind of personality to be able to help people. “As both an instructor and a friend, there have been many times when we've been on the road and seen people in very perilous situations. And Gary has taken it upon himself to walk over and say ‘Hey, you know, I'm a Schneider driver, is there something I can do to help you?’”

When Lautenslager reflects back on his first experiences as a driver, he contends that it was a much scarier time back then. Training programs were practically nonexistent and drivers were expected to learn on the fly. But thanks to advances in technology, and carriers like Schneider that offer ongoing driver training programs, today’s drivers face a very different - but healthier – work life.

Technology and knowledge aside, Lautenslager says there’s one core component that makes a good company great: its people. He attributes his long career with Schneider to its down-to-earth and hard-working people as well as the company’s respect for a job well done.

During his retirement reception, Lautenslager shared a few of his memories and insights with his Schneider National family. Among them:

Favorite Place to Drive Through: Madawaska, Maine, for its beautiful wildlife and laid-back people Most Amazing Sights: Watching a plane land on Interstate 10 outside of Amarillo and a hot-air balloon land on an entrance ramp in Iowa Best Day Ever: To be one of six drivers personally invited by company founder Al Schneider to attend his induction into the Packers Hall of Fame Total Miles Driven: 3.8 million Reasons for Staying Loyal to One Company for 44 Years: Schneider offered freedom on the road, friendly people who were easy to work with and an overall tremendous work environment Key to a Long, Happy and Successful Truck Driving Career: Having patience, great listening skills and a positive relationship with your leader

When asked what he plans to do once he’s done behind the wheel, Lautenslager says he’s most looking forward to just relaxing and admits he will probably have to fight the itch to drive again.

Drivers interested in forging a long, successful career like Lautenslager’s are encouraged to visit www.schneiderjobs.com or call 1-800-44-PRIDE (1-800-447-7433).

About Schneider National, Inc.
Schneider National has exceptional career paths for professional drivers and truck school graduates. Solo and team opportunities exist for company drivers and owner-operators in Schneider’s Regional, Over the Road, Dedicated, Tanker, Oil Field Transportation and Expedited lines of business. Local and regional solo opportunities also exist for company drivers in Schneider’s Intermodal division.

A $3.4 billion company and one of the largest truckload carriers in North America, Schneider has been a top choice for drivers for more than 75 years. Schneider provides drivers great weekly miles, steady freight and the comfort of knowing that “safety first and always” is the cornerstone of the company’s philosophy. Schneider is ranked a top-paying carrier by the National Transportation Institute and has been nationally recognized for its support of veterans, Reservists and National Guard members. For more information about Schneider National career opportunities, visit www.schneiderjobs.com. You can also connect with Schneider on Facebook at www.facebook.com/jobsatschneider and Twitter at www.twitter.com/schneiderjobs.