Just got back from New France, Hochelaga as they used to call it, before they put a cross on the big hill and renamed it Mount Royal. Hardly a mountain at 300 feet, but 45 smog days so far this winter, “nice place to live but I wouldn't want to breath there.” Actually I was in Anjou for my last scheduled layover (a suburb on the north side of the island named after a pear that straddles the Metropolitan, halved by the knife of the T-Can so to speak) one big Mall on the south side--Galleries des Anjou—and the taxi driver tells me it's going down, no longer upscale like the Carrefour in Laval or Pointe Claire.

This last afternoon, as though the waitress in the International restaurant on Rue Jarry knew this was my last day on this run (I been bumped from the food dish by a bigger dog, but that's another story), she brings me extra coleslaw on a plate piled on top of fresh lettuce, for the times, she says, when they didn't have any to go with my poulet chaud sandwich (hot chicken sandwich) and walking back to the hotel to watch women's curling on TSN, I pass two Saputo buildings by the side of Hwy 40, two towers: this one's for cheese; the other for transport holdings, I suppose. “Just tell me what Saputos are doing, those Himalyas of the Roads”. The secretive giants must be wracking up losses too, in this strained economy.

But don't sell those stocks yet folks we might have hit bottom, and get some leverage off this dead cat bouncing. In the Montreal Gazette I noticed one driver leasing service hiring ($18 Class 1 jobs, maybe permanent) and the guys I talk to on the CB have got jobs but they say it's slow, some laid off.

Tonight I fight with this stupid coaxle cable, the strand of copper wires frayed around the collar, bringing me grief all the way along the St. Lawrence mostly static as I jiggle my $79 Radio Shack CB in the velcro strap occasionally picking up a muted scrambled voice talking about bear sightings and closed chicken houses.

But mostly just static and fading George Noury on Coast to Coast out o f Cleveland 1100 AM band, discussion on crop circles tonight and animal mutations, until the truck hits a rut, and the antennae actually becomes antennaed, and I can hear guys talking: “a lot of trucks with their fog lights on” says one eastbounder and I'm one of those trucks with the fogs but he doesn't know there's some pea soup ahead past Shannonville and we westbounders are weary of turning them off and on as we've done the last 75 kms. The fog gets heavy around Napanee and I don't bother to tell him, the early March rain washing it out in spots. Almost hit a beaver tonight, a quick swerve and I didn't feel any bump under my right wheels.

And for those smart drivers with their snotty channel 19 talk who don't know fog, they're probably running out of Belleville, or Trenton ancestral home of poet Al Purdy, to whose memory I was going to dedicate this anyway, these words come to me just as I'm hitting the 401 split at Pickering with the hammer buried at 101 kms/hr and almost ready for bed.

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The current freight recession is taking its toll as many high quality logistics professionals are losing their jobs. It is rare when a week goes by and I do not receive a phone call or e mail from an old friend or colleague advising me that they are looking for employment. In some cases, I am contacted by people with whom I have not spoken for an extended period of time. The expectation from the caller is that even if there has been no communication for years and the relationship was not close, you will, in this time of need, provide them with leads on job opportunities.

A few weeks ago, I had the pleasure of seeing one of Canada’s premiere networking experts, Allison Graham, CEO of Elevate Seminars + Strategic Development, give a presentation on this topic. I was so impressed with her presentation that I purchased her book, From Business Cards to Business Relationships, Building the Ultimate Network. Allison is an intriguing person since it was only a few years ago that she was a receptionist in an eye care clinic. This highly motivated individual dedicated herself to the task of learning about networking and becoming a coach to professionals seeking to improve their networking skills. She has come a long way and has established herself as a leading authority on this topic.

One of the most important lessons one learns from Allison is that “whatever you want to accomplish can be done provided you surround yourself with the right people.” Networking is not something you turn off and on. It is not just something you do when your employment is terminated. It is “the gathering of acquaintances or contacts – the building up or maintaining of informal relationships, especially with people whose friendship could bring advantages such as job or business opportunities.” Networking is something every professional must do week in and week out. Successful networking takes “perspective, preparation and practice.” It also takes time.

In her book, she outlines the essential steps to effective networking. Allison first outlines the importance of creating a “personal brand.” She addresses a number of key elements (e.g. handshake, eye contact, mingling formula etc.) that are fundamental to creating one’s brand. Of particular importance is her focus on how to create “mini bonds,” which in Allison’s view involves the creation of genuine relationships and building a rapport with people about whom there is a genuine caring.

Allison outlines some excellent techniques for establishing these “mini bonds.” One of the key points she makes is that “the intensity of a relationship is not determined by the quantity of information shared between two people, but rather, by the quality and depth of information that is shared. The more intimate the dialogue, the deeper the bond.”

The book also addresses the topic of developing a Networking Strategy. Allison makes these telling points. “The truth behind the ultimate network is that regardless of how professional and polished your image and how well you know the fundamentals, if you aren’t meeting new people and building relationships, you’re not going to grow your network. Talking about networking and actually networking are two different things. It is amazing how people will say they want to build their network, but then a month later they still haven’t made an effort to get to know even one new contact.

Bottom line. If you want to expand your network, then you have to network. Networking takes work. . . . It takes six months or as many as six to eight casual contacts with others before you hit their radar screen and they start to ‘get” who you are. Expect it to take about 12 to 18 months of consistent and persistent effort to solidify the foundation of your ultimate network.

Of course, networking is not only helpful as a tool to have a robust Rolodex that you can access in time of difficulty. Effective networking can be critical to broadening one’s base of sales prospects or potential marketing partners, or for a host of other purposes.

To learn more about creating an effective networking strategy, buy the book. It is a quick and very good read. It can help transportation and logistics professionals create their “ultimate network” and build successful careers.

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After reading my most recent blog on the state of our economy, an industry supplier friend joked that would be a fitting way to describe my rather pessimistic outlook. Others wrote in saying I was overly pessimistic.

Could they be right? Is there good reason to believe we are finally able to see light at the end of the tunnel when it comes to the economic downturn? There’s much at stake for both transportation providers and those purchasing their services if we can. Transportation is a leading indicator of future economic activity. Freight starts to move, and the fortunes of transportation providers start to improve, about six months before the economy does as businesses anticipating improved sales start to rebuild their inventories. And an uptick in freight volumes signals the beginning of the end of excess capacity and depressed transportation rates.

Is this where we are right now? If the current recession in the US, which of course has an incredible impact on Canada since almost 80% of our exports are absorbed by the US market , lasts into April — as it almost surely will — it will go on record as the longest in the postwar era. The 1981-82 and 1973-75 recessions each lasted 16 months.

I certainly didn’t think we were about to see the light at the end of the tunnel when I wrote a blog on the subject just a few weeks ago. I started the month with a pessimistic blog on the North American economy basically stating that any light at the end of the tunnel was basically a mirage. For example, I argued that hopes of a recovery based on the reports of US truck tonnage showing a spike in January were nothing more than wishful thinking. US truck tonnage did spike 3% in January but the month looked so good only because December’s numbers were so awful. Put the spike in perspective, I pointed out, and you see why there’s no reason to be optimistic: compared to the previous January, the month was down 10.8%; and the month’s tonnage was the second lowest since October 2002.

Well, a month later, I’m not about to say I’ve completely changed my mind, but let’s just say I’m willing to be persuaded. What happened? The combination of finding optimism in quarters where I did not expect to find it and an upturn in the economic indices I normally keep tabs on.

Every year at this time I have the privilege of speaking to the leaders of some of the nation’s best managed transportation companies for our annual Award Winning Suppliers special in Canadian Transportation & Logistics. I fully expected pessimistic responses to my probing about current economic conditions and forecasts and I did get some. But I was surprised to find some degree of optimism that things could start to turn around as quickly as the second quarter.

I then started seeing some key indices showing notable improvement. The Baltic Dry Index is an assessment of the price of moving raw materials on cargo ships around the world. It’s an important indicator because raw materials start moving when infrastructure is being built and manufacturers expect to be producing products to meet new demand.

When the world economy is fading, shipping gets cheaper. When growth returns, shipping costs more. I made much of the fact that the Index had sunk to a 22-year low in December in my previous blog. But since then it has shown improvement, which would indicate we may have already hit rock bottom and things will start to pick up from here.

Also the US Economic Cycle Research Institute's Weekly Leading Index -- a composite of daily and weekly data on economic drivers of the business cycle, including corporate profits and housing activity – has enjoyed some stabilization since the start of the year.

And then there’s the big one: consumer spending, which constitutes about 70% of the US economy. Consumer spending rose 0.6% in January, after a 1% decrease in December and a 0.8% drop in November.

So does all this mean we can finally get optimistic about a turnaround? Perhaps. A couple more months of improving indices would be better but, as I mentioned earlier, I’m ready to be convinced.

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I received an e-mail recently from a man who (I assume, he didn’t say outright) is a retired officer for the New Brunswick Department of Transportation. He relayed a story to me about an “old-time trucker” that he had “locked horns” with more than once during his career. With his career now behind him, the man, named D.C. Butterfield, and the trucker met up again recently and were able to cast aside their former grievances and discuss the “good old days” without incident. This exchange of mutual respect prompted Butterfield to write the following poem, where the author poeticizes a roadside meeting between the two in years past. Enjoy!

Routine Check

The day was dull and drizzly
The kind that makes you brood
When everyone is sullen
Or else they're "in a mood",
I'd simply pulled him over
For the usual routine check
But he was one crusty dilly
A hackneyed pain-in-the-neck,
He started with 'verbal judo'
"It's a good thing we're out here to rob!"
I discreetly dodged the put-down
With, "Sir, I'm only doing my job.
The Regulations are there for a reason
And safety has got to come first
The incidents that happen without them
Quite often are always the worst,
I can't turn my back and not see it
Give in and just walk away
You're a proud professional person
Respect me ... for earning my pay!
You can't bulldoze me or bluff me
For I've been called every name in the book
But you see, my friend, in the long run
I'm the one that's left on the hook!
You might cruise as clear as the blue sky
Then, you might end up in the ditch
Or, something else I may have prevented
And - conscience is always a bitch!
You may think I'm a hard-hearted ole buzzard
But in your head you know it ain't true
I've explained the risks of the defects
Don't tell me - it's got to get through,
You remember the big wreck last summer
That almost finished their fleet
The awful pain and the anguish
Stopping distance - is measured in feet,
Now, I'm not pointing a finger
I'm only concerned with what's here
It was something he just couldn't live with
And put an end to his trucking career!"
"It takes balls to do what you're doin'
But you're right, in making your stand!"
With that - he climbed in and parked 'er
After quietly shaking my hand.

--D.C. Butterfield

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Our recent coverage of the discriminatory road test requirement for all senior A/Z licence holders in Ontario has created quite the stir. My phone’s been ringing off the hook from drivers wanting to know what can be done. The requirement is not new – it’s been a thorn in the side of senior drivers for years.

What is new, however, is that there are now equipment stipulations that require road tests to be completed using a manual transmission and minimum 45-ft. trailer (amont other things). Believe it or not, there are a ton of senior drivers using automated transmissions – not because they can’t shift gears, but because they felt it was a safer and more efficient spec’.

Many of these drivers have accumulated millions of miles of safe driving, some dating back to when two-stick transmissions were the norm. The new requirements were intended to prevent unskilled entry-level drivers from obtaining an A/Z licence without the skills required to operate a typical tractor-trailer, but they’ve had the unintended consequence of chasing some of this industry’s greatest assets out of the industry.

Times are tough, and the costly burden of renting a truck with a manual transmission for a road test is too much for some to bear. So they’re begrudgingly calling it quits – and the entire industry, in fact all road users, are losing out.

Many callers have asked me ‘What can we do?’ I’m normally not a fan of online petitions or letter writing campaigns, but now that both OBAC and the OTA are on-board (and the PMTC has also lobbied against the current requirements), there’s reason to believe something can be accomplished here.

There’s a precedent for this. Remember the Lunchbag Letdown Campaign in 2007? The CTA, OBAC and the Teamsters set aside their political differences and urged truckers to fill in a postcard and send it to Finance Minister Jim Flaherty, requesting that the meal tax deduction limit be increased from 50% to 80%. And it worked. More than 4,000 drivers sent in their postcards and it created an impression. The March 07 budget included a clause that would restore the meal tax deduction limit to 80% by 2011.

Hopefully, the fact that the vast majority of owner/operators, drivers and carriers are in agreement the system needs to be revamped will help nudge the province into action. The OTA has set up a Web site dedicated to the cause. You can see it here.

Included is their suggested fix. To summarize: A driver would be required to prove medical fitness every year after reaching the age of 65; the renewal period for a CDL upon reaching the age of 65 should be two years until the driver reaches the age of 71, and annually thereafter; and the driver would be required to pass the normal written test and written air brake examination, but would only be required to take a road test and practical air brake examination if they have more than: five demerit points, one preventable accident and/or one out-of-service violation.

Does it go far enough? Bearing in mind the province is more likely to tweak the rules than rewrite them altogether, I think it strikes a pretty good balance. Most drivers I’ve heard from are alright with the yearly medicals and they’re also okay with road tests for drivers that have anything less than a stellar driving record. The OTA’s suggestion would alleviate most senior drivers from the costly and onerous annual road tests while maintaining a strong emphasis on road safety.

If you feel the mandatory road test requirement for senior drivers is discriminatory, then have your say. I’ve practiced what I preach, and fired off a variation of the OTA letter as well as the recent Truck News coverage to my local MPP, Transport Minister Jim Bradley and Conservative Transport critic Frank Klees. It’s worth a shot.

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It still amounts to the same thing KISSING A DEAD FISH ( A COD ,NO LESS). Well I guess as long as you are one of the first that makes it acceptable, ( ACCORDING TO MY TWO LOVELY, FEMALE SOURCES ANYWAYS).

It is funny how Panic sets in, and the rumours swirl, and the vulchers surround , and every trucking company out there is going broke. Yet we are ( THE STRONG ) for the most part, still here, still making money, still paying bills, and still surviving. Some of our associates in this business still dream in colour. TECHNICOLOUR no less.

TORONTO TO CALIFORNIA FOR $2800.00 That is $1.13 per mile to the company. Now the company has only O/O working for them. So like most companies they either pay a percentage of the gross or a per mile rate to the driver and the driver incurs all of the expenses. Let's analyze this for a minute. An average trip to California would use up if the truck is lucky 6.5 miles per gallon. That is 385 Gallons of Gas to get to L.A. Now Gas today is roughly $ 3.00 a Gallon (U.S. GALLON) The O/O has an expense of roughly $ 1155.00 for Fuel alone. The company on the other hand is charging the client $2800.00.

Let's factor in the following Border Crossings/ Bridge Tolls/Toll Roads/Oil/ TIres/Maintenance/Repairs/DRIVER Profilt/ Licensing/Permits/Fuel Tax/Take Home Money/Insurance/and of course NET PROFIT. Now To me, IF YOU SLAPPED ME IN THE HEAD WITH A DEAD FISH, OR MADE ME KISS A DEAD FISH ( CORRECT LADIES), it makes more sense to do that, then run a truck at the above prices. Yet some companies are out there trying to survive doing that every day. We wonder why so many in this business cannot survive.

I would think You do not need to get slapped in the face, to realize when quoting rates, take all your expenses into account, add them up, leave leftover for profit, then quote above that figure. Nothing wrong with that is there? I didn't think so. Yet I have come across at least 3 or 4 companies recntly (last week or two) , that are charging between $ 2800.00 and $2950.00 to go to L.A. from Toronto. Let me tell you something folks, OBAMA AND STEPHEN WILL NOT BAIL US OUT.

They could not give 2 HOOTS or 3 for that matter, about the Trucking industry. They do not care how many people we employ, how much we transport every day, what we move every day, what it takes to survive every day in this business. We sure as heck don't have to worry about any BONUSES and giving them back. I know some very close associates in this industry that just shake their heads, at what is going on with rates, and business in general. We must be one of the few industries where we get excited we are operating a 2% 3% 4 % or better OPERATING RATIO.

Who do we have to blame ONLY OURSELVES. THE ACCOUNT MANAGERS, SALES REPS, V.P. OF SALES, GENERAL MANAGERS, DISPATCHERS, ETC, need to stop letting everyone dictate to us what they are willing to pay to move their goods to market. Without us, their goods do not get to market. THEREFORE THEY DO NOT SELL, THEREFORE THEY EITHER ARE STALE DATED, OBSOLETE, OR THE COMPETITION ALREADY SOLD THEIR GOODS INSTEAD. Why? Simple, they were willing to pay our price to have their goods on the shelf. Is L.A. the only point that does not work like this. NO WAY, JOSE. Today a few Account Managers, were telling me about, an account they dealt with, and the 3 P.L. involved were offering $ 550.00 for a load from Toronto to Chicago Illinois.

Somone out there took it. The load moved. At what price $ 1.06 per mile. Well let me tell you everyone out there in TRUCK WORLD. If we continue this downward slope, it is no wonder so many out there will not survive. Wake up, smell the roses, (violets, carnations or any flower you desire) and quote what you deserve, not what someone is offering. The best customers out there, are the ones looking for LONG TERM RELATIONSHIP BULIDING AND COMMITTMENTS FROM THEIR CARRIERS. They also want to guarantee their product is on the shelf in time to sell, or on their customers, doorstep in time to sell.

As for me, WELL THE TWO LOVELY LADIES IN QUESTION ABOVE, I HOPE TO GET SMACKED AGAIN WITH THAT FROZEN COD, AND GET, SCREECHED IN. I guarantee I will certainly push my way to be first in line. For those of you that want to know who the lovely ladies were, well truth be told, IT IS A TRUE STORY< but I NEVER KISS AND TELL.

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I wrote the following a few years ago in a story called Go West, Older Driver: "And what happens if oil prices drop to $30-40 per barrel? It seems unthinkable now, but when this balloon bursts, and historically it always does, that mobile home you just bought for tens of thousands is going to be worth peanuts once again."

At the time oil was $70 per barrel and moving up. I was cautioning truckers who were moving to Alberta in droves, particularly Ft. McMurray, and were thinking about buying a house. Anybody who reads this will think I'm daft, I thought at the time. How could oil prices crash to $30 per barrel, and why would real estate prices collapse in Alberta?

Now I'm wondering whether the legion of truckers, in particular the large number from Newfoundland, who pulled up stakes and moved lock, stock an barrel to northern Alberta, have migrated back again.

But I promised good news and I've noticed a few bright spots. Generally, in Canada, we've avoided the "casino mentality" of our US cousins when it comes to real estate investments. Prices have come down across Canada but they're still solid in Montreal, Toronto and Vancouver. My youngest son is a project coordinator for a large tile installation company in Vancouver and he tells me they've got a couple of years work in the can, as long as the developers stay solvent. Things are a little slower, he admits, but if anything the economic downturn has eased the skilled trade market. They no longer have to import tradespeople from Albania or eastern Europe.

My oldest son, after kamikazi-ing out of grad school twice, went out and got his DZ licence (the apple doesn't fall far from the tree!), and landed a job driving a bucket truck for the city of Toronto forestry department. He's making great coin and is happier than a puppy with a frisbee. Specialty trucking will always be in demand. And although things look a little bleak right now, trucks will always need to be driven. Adding a specialized skill to your repertoire can only improve employment prospects. During the recession of the early 90s I went and got a student loan and hid out in university myself, while still working for Canadian Tire on weekends banging cans around their Brampton facilities. If your job has dried up recently, this might be the time to consider a new direction. If you're interested, McMaster and University of Windsor both offer degree programs in transportation studies.

A couple of weeks ago I talked to a man in Montreal who had just started a business hauling used cars between dealers, auction houses and a 200 mile radius of the Swamp. He uses a 53 foot trailer float trailer pulled by a F350 pick up with a fifth wheel. The used vehicle business is hot at this time and he's adding another truck and trailer and looking for another driver. It's a small operation but he's already grown 100% in a few short months.

Tracey Raimondo, vp of logistics for Normandin Transit inc., of Napierville, Que., told me they hired 15 drivers in February and have recently added 20 tractors, 55 reefers and 25 dry box trailers to their fleet. Besides LTL loads to the States, pharmaceuticals is one growth area where the company is looking to expand.

And it looks like there is some openings for drivers in the food service industry, either as delivery drivers or working for brokers hauling loads for the big supermarket chains. I've even seen Schneider National (Canadian division I hope) pulling groceries around Ontario--anything to keep their drivers active.

Once again the film industry is expanding in Toronto and will no doubt lead to spin offs in other Canadian locations. The entertainment sector does all right during recessions, and the low Canadian dollar is seducing producers to come north. This means some good paying driving jobs are opening up, although they're not for everybody. IATSE has the monopoly on labour in Toronto while I think the Teamsters call the shots in Vancouver. A film shoot requires lots of equipment shuttled between locations, although a lot of the work involves sitting around. A driver might be on call for outrageous numbers of hours with not much to do except collect overtime and eat the great food supplied by the craft wagons. Drivers with extra skills like generator operators, make even more cabbage without having to do a lot of anything.

Lastly, team drivers are making out better during these austere times than their single counterparts. But even they've slowed down a bit. A team driver for Arnold Bros. told me last night that they used to do the triangle between Montreal, Winnipeg and southern US in four and a half to five days. Now, they have to wait a little longer for loads and it takes them, on average, another day to do the same triangle. But they've got work and that's what counts

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- See below for updates
It’s an annual rite of spring. Here I am plucking away at my keyboard from a hotel in Louisville, Ky., home to the Mid-America Trucking Show. By all counts, this year’s show will be a tad subdued compared to previous versions. Some major OEMs (Peterbilt and Kenworth) will be absent and I’ve heard others have downsized their displays.

But Mid-America remains North America’s largest trucking trade show, and it’s a must-attend event for us, since most manufacturers use the show as a platform from which to launch new products. The first event on the press itinerary is a demonstration at a nearby Cummins distributor. That’s all I know about that, but we’ll be reporting on it shortly after it concludes on Trucknews.com.

As always, we’ll be filing stories over the next few days from Louisville. As in past years, we’ll tag them ‘MATS Report’ for easy identification. And the May issues of Truck News and Truck West will include full coverage of the show’s highlights.

I really enjoy the Mid-America Trucking Show. There, I said it! I think I may be in the minority among my peers, since journalists are typically run pretty ragged during the show’s three main days. But I always look forward to it, especially since there’s no shortage of news to report from here and it’s a great chance to catch up with folks from the industry, some of whom you only see once a year.

One of the highlights for me is the drive – that’s right, I drive the 10 hours from Toronto. This comes as a surprise to a lot of people, but it’s actually a nice, low-stress trip. I remember a couple years ago when I was making the drive, I got a call from editorial director Lou Smyrlis who was flying down. He was stranded at the Cincinnati airport and there were no more flights out until the next day. I just happened to be driving through Cincinnati, so I made a short detour to the airport and picked him up. It goes to show that air travel is far from certain these days, and I’d rather travel at my own pace in the comfort of a rental car – this time a racing red Dodge Charger (that’s sure to catch the attention of border guards on the way back).

This year’s drive down was uneventful, except for coming upon the burnt out shell of a Peterbilt on the highway north of Louisville. The fire apparently occurred shortly before I happened along, and northbound lanes of I-71 were completely closed. I hope the driver is alright.

Last night I went out to an “authentic barbecue pit” for a Louisville specialty – a pulled pork sandwich.

Well, that’s about it for now. Lou and I will be doing our best to keep you up to date over the next few days through both the blog and the Headline News section of the site. Be sure to check back often!

Volvo says it’s done with active re-gens
Volvo made the impressive announcement this morning it will no longer have to actively regenerate its diesel particulate filters (DPF) when it adds SCR to its 2010 engines. In millions of miles of real-world testing, the company has noted that all DPF regeneration is conducted passively. That’s significant, because each active regeneration requires a dose of fuel.

Volvo continues to emphasize the importance it places on safety. The company presented a brand new Volvo VN tractor to the ATA’s America’s Road Team crew. It’s a program similar to the OTA’s Road Knights. They’ll use the tractor to help spread the word about highway safety.

Volvo also introduced its own version of Bendix Wingman, which it’s calling Volvo Enhanced Cruise.

- Nice ride! Members of America's Road Team have a new ride, courtesy of Volvo.

SCR stakeholders hold morning pow-wow
EPA2010 technologies continue to be the hot topic of discussion here at Mid-America. This morning, executives from each of the engine manufacturers that will use SCR (Daimler, Cummins, Mack and Volvo) held an ‘SCR Summit’ along with a few members from the supplier community. Noticeably absent was Navistar, which is the lone wolf in the EGR-only camp.

The engine execs showed complete solidarity in their positions that SCR is far and away the best solution for 2010. TA and Pilot truck stop chains were also present on the panel and assured the media they’d have DEF available at the pump in advance of Jan. 1.

Per Carlsson, president and CEO of Volvo Trucks North America, had perhaps the most pointed remarks.

“It strikes me as I sit here that even though we represent a very significant percentage of the world’s heavy-duty engine and truck production, we must not be very good leaders. And the thousands of engineers working for us around the globe must not be very bright. Because we’ve selected SCR for EPA2010. And according to the sole adopter of massive EGR, we’ve all made the wrong choice. This will certainly come as a surprise to the many customers around the world who are already using SCR.”

Check back at Trucknews.com later for a full report from the Summit.

Thermo King revamps straight truck reefer line
Thermo King introduced its all-new T-Series line of reefers for straight trucks this morning. The company claims the new series is 50% quieter, offers a 10% improvement in fuel economy and has 10% greater capacity than its predecessors.

The first of the models will be shipped beginning in August with the remainder of the line rolled out gradually over the following six months. The new reefers feature in-mold colour, a sleek, durable skin and a honeycomb grille that optimizes air flow through the condenser coil, the company pointed out.

As a bonus, a Hybrid SmartPower version of the new reefers can eliminate emissions altogether and cut fuel consumption by 40-60%. The reefer gets its juice from the truck’s hybrid system and can operate exclusively by battery for about 10 minutes before the reefer’s engine will need to restart. When the wheels are moving, it can operate off the hybrid system indefinitely.

- The new T-Series reefer unit, unveiled just hours ago at MATS

Who’s that nut on the motorcycle?
I just had to show this picture. You’ve gotta love the people who develop new technologies for the trucking industry. They take a lot of pride in their work and they also have a ton of faith in their products.

Take for instance Fred Andersky of Bendix. That’s him on the motorcycle, cutting off a tractor-trailer equipped with the new Wingman system. He then proceeded to apply the brakes! Cameras inside the truck’s cab showed the brake pedal in real-time, and there wasn’t a foot to be seen!

The tractor-trailer brought itself to a stop without any driver intervention and Fred survived to attend another Mid-America. You may remember Fred from this episode of our WebTV show Transportation Matters.

- Fred Andersky of Bendix has a lot of faith in the company's engineers.

Mack’s ready for 2010
In addition to announcing the availability of Wingman, Mack Trucks also took the opportunity to emphasize its readiness for EPA2010. The always colourful Dave McKenna debunked some SCR ‘myths’ and showed some customer testimonials from those who’ve been fortunate enough to test the new equipment in their day-to-day operations.

McKenna also took the chance to insinuate Navistar’s EGR-only approach has its flaws – most notably, its need to use credits to gain EPA compliance.

“One has to remember, when the credits are gone, then what?” he asked.

I’m not sure it’s fair to chastise Navistar over its use of credits at the outset of 2010. Other manufacturers may also use credit, even if they’re using SCR. Cummins, for instance, admitted last night it will use credits on certain engines as part of its own roll-out strategy. There’s nothing wrong with taking advantage of a credit program that has the blessing of EPA. Having said all that, McKenna does have a good point – credits won’t last forever, so hopefully for its sake, Navistar’s reliance on credits won’t be a long-term strategy.

McKenna also noted Mack’s SCR system will differ from Cummins, in that it will use an iron zeolite catalyst material. Cummins is keen on a new copper zeolite catalyst material that it says delivers even better fuel economy.

Finally, McKenna also took aim at claims the fuel savings achieved through the use of SCR will be nullified by the added cost of diesel exhaust fluid. He showed some charts that suggest SCR-equipped trucks will save about US$1,650 per year over trucks using only EGR based on diesel prices of $2.42/gallon and DEF prices of $2.28/gallon. This overall cost-of-ownership debate isn’t going away soon.

New Alcoa wheel lighter and brighter
Alcoa unveiled a new wheel it says is 2 lbs lighter than its predecessor and six times brighter than its competitors. The LvL ONE wheel was designed using a new proprietary process, according to the company. Two pounds may not seem like a significant weight savings, but over an entire tractor-trailer combination, the weight reduction totals 36 lbs. If you are comparing it to steel wheels, the weight savings is a more substantial 650 lbs. (Sorry, no pictures at this time - but I can tell you it looked pretty sharp).

Bendix introduces Wingman
Bendix had a lot to talk about at this morning’s press conference, which is refreshing given the downright depressing state of the industry. The company’s president, Joe McAleese is usually able to work a sports metaphor into his words, and this year was no exception. A big-time Steelers fan, he noted how the team didn’t stop working to improve itself during the team’s ‘dark years.’ It was rewarded this year with a Super Bowl victory. McAleese said Bendix is taking a similar approach, and continuing to expand during the downturn so it’s well-positioned to capitalize on the recovery.

Highlighting Bendix’s announcements was the introduction of Bendix Wingman ACB (Active Cruise with Braking). The system offers active braking interventions when required to avoid a rear-end collision.

The Wingman system is fully-integrated into the truck’s dash, the company pointed out, differentiating it from other systems on the market. It’s designed to be used with Bendix’s full-stability system. Later in the day, Mack Trucks announced it is the first OEM to offer the system, which it has named ‘Mack Road Stability Advantage by Bendix with Adaptive Cruise Control.’ Now that’s a mouthful. Let’s just call it Wingman!

- Here's a WIngman system in action, fully-integrated into the Mack dash.

LED manufacturers take the spotlight
So far today, the ‘coolest’ new product announcements would have to be from LED light companies Grote and Truck-Lite.

Grote has come out with a line of paper thin LEDs which can be attached as strips to trailers or inside vehicles. They are flexible and can even be wrapped around corners, providing a ton of possibilities. Show truck owners will love what the company’s dubbing LightForm.

The strips are less than 1 mm thick – thinner than a penny. They’re about 2% the size of traditional LEDs and can offer simple peel-and-stick mounting. Pricing is supposedly going to be competitive with traditional LED lighting.

- The LED strips from Grote are completely flexible and paper thin.

And for its part, Truck-Lite has come out with what it’s calling the world’s first seven-inch LED headlight. Truck-Lite officials say it’s been used in the military and its illumination capabilities are such that soldiers have been able to identify roadside bombs at night.

The company compared the light to a traditional incandescent equivalent and yep, it sure is bright. It’s expensive too, though - $350 a piece, so you’re looking at $700 US to do both sides. But then, you’ll get all the advantages inherent with LEDs, including longer life, improved durability, better visibility, etc.

- Truck-Lite's LED headlights provide improved visibility and durability, the company claims.

Cummins unveils 2010 engine lineup
Everyone has been saying they’re ready for 2010 - tonight Cummins backed it up with the introduction of its full 2010 engine lineup. The new engines will be on display at its booth here at the show, if you can make it to MATS in person.

Highlights included the ISX15, which will boast up to 600 hp with 2,050 lb.-ft. torque. When Cummins decided to abandon its plans to develop an EGR-only EPA2010 solution for heavy-duty engines in favour of selective catalytic reduction (SCR) last August, it also discovered that it could scrap plans for a 16-litre engine and achieve the same performance capabilities from a 15-litre offering. And this is it: The ISX15, which the company says will deliver better fuel economy, performance and reliability than today’s ISX engine.

The new offering combines Cummins XPI fuel system with a single overhead camshaft that provides what the company is dubbing an “industry-leading power-to-weight ratio among big bore engines.”

It’s also promising fuel economy gains of up to 5% compared to Cummins 07 engines. Furthermore, Cummins is promising fuel economy gains of 9% compared to the 2010 in-cylinder solution Cummins was previously pursuing. Hmmm…much more on that later.

But for now, the other highlight was the unveiling of an ISX11.9 engine, suited for vocational, day cab, LTL and regional applications. It shares many parts with its larger brother, but will offer horsepower ratings of up to 425 with up to 1,650 lb.-ft. of torque.

Not a lot will change on Cummins mid-range engine line. They’ll all use SCR, and that’s been the case since Cummins announced its 2010 emissions strategy back in 2007. Check back at Trucknews.com for the full news report, to be posted soon!

Here it is, the 2010 Cummins ISX15

‘Road-ready’ electric commercial vehicle to be showcased at MATS
Electric Vehicles International (EVI) says it will be showcasing the first ever ‘road-ready’ electric commercial vehicle at the Mid-America Trucking Show this week. The Class 3-6 electric vehicles will be available for demonstrations at the show, the company reports.

Namely, the eviLightTruck and eviRoute 1500 will be on display. Both are already commercially available in the US. The trucks can be viewed at Booth #65216.

Michelin to raffle off set of X-Ones
Coming to the show? Michelin is raffling off a set of drive-axle X-One wide-base singles to one show visitor. Just show up at their booth and swipe your badge. You must have a CDL to qualify. The company will be making a live drawing at 12 p.m. Saturday. The wide-base tires will be mounted to new aluminum rims supplied by Alcoa. Michelin will be at Booth #18121.

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A few months ago our managing editor Adam Ledlow wrote a blog about the aftermath from the gruesome killing of 22-year old Tim McLean on a Greyhound bus in Manitoba. Although some time has passed since then, I’m sure the horrid details of that killing -- McLean was stabbed dozens of times by his murderer Vincent Li and then beheaded him in full view of the bus load of horrified people – have ensured that it will long remain in our memory.

As you will recall, long haul trucker Christopher Alguire became an overnight hero when after noticing trouble on the bus, he managed to corral many of the passengers to a safe location and then helped barricade the door to prevent the suspect from escaping. Heroic deeds indeed, I absolutely agree.

However, Alguire couldn’t let it end there. Soon after he was criticizing the RCMP for not shooting and killing the suspect after the fact. In his own words: "I told the cops a few different times to shoot him, because he has no reason in this world to live anymore.” Now that made him even more of a hero in the eyes of many. And when Adam took trucker Alguire to task over his heated words, pointing out police are trained to deal with such situations and a “shoot first and ask questions later” approach is not part of their training and that someone trained as a professional driver, no matter how heroic his initial actions, has no place trying to act as “judge, jury and executioner”, he received a number of vitriolic responses from readers.

“The punishment should fit the crime- a life for a life. Then maybe, just maybe some might think twice before they commit some of the atrocities that we read about everyday,” said one reader. “Shame on you for causing even a sliver of doubt towards the integrity of a hero,” chastised another. Yet another stated: “What this country needs is more Mr. Alguires! Truckers who are eager to lend their tire iron at the first glimpse of carnage.”

Things got worse when I joined the fray with a blog arguing that we should choose our “heroes” more carefully. I reasoned that I if one takes the time to really think about it, rather than speak from emotion, although Alguire’s willingness to help was certainly heroic, his criticism of the RCMP’s action was shameful. And so were the remarks of those who supported his views. I received several phone calls from readers who had a few let’s say “choice” words in response. My remarks showed I was “too left”, too naïve”, “too weak-kneed”, “too quick to defend murderers”, and a few more descriptions best not repeated here. I also received the usual thinly veiled racist comments about the incident (“We should send him back to where he came from and let them finish him off.”)

More than six months have passed since that gruesome event and the killer Vincent Li has since appeared in court and found not criminally responsible because of a severe mental illness. Psychiatrists testified at his trial that he was suffering from schizophrenia and believed the voice of God ordered him to kill Tim McLean because the young man was a source of evil. In other words, Vincent Li is a very sick man. His first words in court were “Please kill me.” A criminal review board will now determine how he will be institutionalized. As long as he remains dangerous due to his illness, he will likely be locked away for the rest of his life. Of course, many thought this was a sham and thought our legal system once again favored the criminals over the victims.

What happened to Tim McLean was both unfortunate and tragic. Neither he nor his family deserved such a horrible fate. But six months removed from the emotion behind the incident, I still think my comments at the time make the most sense.

While I understand that most in that situation, myself included, caught in the emotion of the event, would have wanted to pull the trigger, becoming a society of vigilante justice will not make us safer. We employ professionally trained police officers to handle such situations without emotion that clouds judgement and we should allow them to do their job.

This is not being weak, as many claim it to be. This is not protecting the criminals rather than the victims. This is being reasonable. This is thinking with your head instead of your hormones and tire iron. Would it have been better, as many had suggested back then, to shoot Vincent Li as an act of revenge? (his victim was already dead, killing him would have only stopped the dismemberment of Tim McLean). Would it have been better to shoot first and find out later we had shot someone suffering from a mental illness?

I know many of you will disagree with me, but I’m sticking with my initial stance on this.

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While all segments of the transportation industry are being hit hard by the current recession, the LTL sector is feeling the full force of the economic downturn. To pick up, consolidate, line haul, deconsolidate and deliver less than truckload shipments throughout a geographic area requires an asset heavy business model. LTL carriers require terminal networks to cross-dock, load and unload shipments to build cost effective loads. They require local pickup and delivery units and line haul vehicles to go from city to city. In this blog we will look at some of the developments currently unfolding in this industry.

Freight Volumes Declining Faster that Truck Capacity

As the Obama administration actively moves forward with an economic stimulus package to revive the ailing U.S. economy, the freight transportation market is still feeling the pain. The Institute for Supply Management reported its twelfth consecutive month of manufacturing contraction in the month of January. Based on the most recent truck tonnage index release from the American Trucking Associations (ATA), its advanced seasonally-adjusted For Hire Truck Tonnage Index sank 11.1 percent in December, representing the largest month-to-month reduction since April 1994, when the unionized less-than-truckload industry was in a labor strike. The ATA added that December’s tally marks the third largest single monthly drop since the ATA began collecting tonnage data in 1973.

According to John Larkin, Managing Director, Stifel Nicolaus, demand for LTL services is falling faster than the supply. The pattern of deteriorating LTL freight volumes has been ongoing for the past 3 quarters. LTL carriers have not been able to adjust capacity downwards to keep pace with the falling demand.

Same Number of Pickups, Smaller Size Shipments

From discussions with various LTL truckers, the phenomenon of lower weight LTL shipments appears to be happening across North America. As demand and confidence wane, shipment sizes are diminishing. This poses a challenge to LTL carriers since they cannot reduce driver wages or fuel consumption proportionately to the drop in shipment sizes or number of shipments.

More Direct to Destination Loadings

As LTL carriers seek to reduce costs and speed up transit times, they have been loading more trailers direct to destination rather than through their breakbulk networks. This process has been ongoing for several years and will likely receive a boost from the weak economy.

Capacity Consolidation

YRC is in the midst of consolidating its Yellow and Roadway LTL divisions. They are planning on removing up to 200 terminals by the end of the first quarter. YRC’s freight is being actively solicited by its competitors as they offer shippers a “safe haven” from a potential bankruptcy or chapter 11 filing.

Other trucking companies have announced terminal reductions of a smaller magnitude. These reductions along with the Jevic and Alvan failures in 2008 have removed some additional LTL capacity. The estimate is that there has been an approximately 13 percent reduction in capacity due to terminal closures and carrier failures.

ABF, long one of the best performing long haul carriers has hired a consultant to help them seek out potential acquisition candidates. For those companies with strong balance sheets, this is a time to add density at an attractive price.

Pricing Competitiveness

To generate volumes for their freight networks, carriers are actively competing on price. The LTL spot market is very price competitive. As another sign of the times, Averitt Express has just announced that they will not take a GRI (general rate increase) in 2009. Coming off this announcement, Old Dominion, that competes in many of the same markets as Averitt, has indicated that they are seeking a 5.3% rate increase. It will be interesting to see if they can sustain this increase in such a price competitive market.

More Time Definite Freight

USF Holland, a subsidiary of YRC Worldwide, on Jan. 21 launched a four-tiered plan for service.
With Guaranteed Window Delivery, customers can request time-specific service:

-- Single-Hour - For deliveries within a one-hour time window on a specific day
-- Multi-Hour - For deliveries on a specific day but within a longer period
-- Single-Day - For deliveries on a specific day
-- Multi-Day - For deliveries that must be made within a multiple-day window

Shipments using the new services arrive within the specified time period, neither too early nor too late, and receive priority handling and visibility. All four levels are backed with the Holland standard money-back guarantee.

FedEx Freight is increasing the pressure to perform in the LTL market by adding a higher level of service designed to boost market share. The new service, FedEx Freight A.M., provides a money-back guaranteed delivery by 10:30 a.m. for a flat rate of $75. The service is targeted at shippers requiring last minute changes to delivery schedules for a particular shipment or as part of a planned strategy to reach a market or customer earlier in the day.

"Similar guarantees in the market are based on a percentage of revenue, but we tested the market and found that customers want it kept simple," said FedEx Freight President and CEO Douglas G. Duncan. "A flat rate means no guess work is involved. It requires simply a notation on the bill of lading or an on-line request - no phone calls are necessary. "As companies further compress supply chains and carefully manage inventory and cash flows, this level of service is more important than ever," he said. Clearly come LTL carriers are looking at these time definite shipments, that travel on existing schedules, to generate additional revenues during these difficult times.

A Challenging Year Ahead

In the first quarter of 2009 there is too much LTL capacity chasing a shrinking volume of freight. Terminal closures and carrier consolidations are inevitable as the capacity adjusts to meet demand. It will be a challenging year ahead.

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As Ingrid Phaneuf pointed out in her front-page story "Limiters: It's now the law" in Truck News' March issue, speed limiter enforcement kicked off with little more than a whimper Jan. 1. Though Phaneuf was talking about the less-than-lively response from the MTO and other pro-speed governing agencies, considering the fanfare leading up to the big day, I personally expected something a little more spectacular from truck driving dissenters to ring in the New Year. But instead, the day came and went, as did the many days that followed it, with the only peep from the truck drivers - besides the usual grumbling I hear every month at the truck stops - being a sparsely attended protest at Queen's Park March 2.

And so I asked myself: "Why aren't drivers kicking up more of a stink? They must be experiencing all those problems they were complaining about, right?" Then it occurred to me that they really don't have anything to complain about if they aren't actually governing their rigs to 105 km/h.

So, I decided to take a drive to find out if there's a noticeable difference in truck speed and traffic on the highways. I drove from Toronto to Montreal and back. And what did I discover? Many, many trucks going well over 105 km/h. Most offenders were subtle, around 110 km/h, but some were up to 115, 120, and there was at least one guy driving a flatbed that I couldn't even catch.

Since most truck drivers are aware that full-on enforcement (the issuing of tickets and fines to offenders) doesn't kick in in Ontario and Quebec until July 1, I guess I shouldn't be surprised that some are getting in their last "unrestricted" runs while they still can.

Interestingly, I found that the closer to Quebec I got, the more likely drivers were to be driving 105 km/h and under. Anyone else notice this?

And just in general: what experiences have you had with speed limiters since the law came into place? Have you noticed any changes on the highways? Elephant races? Safety/merging issues? Let us know.

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What now? It is 2:30 in the morning and you just got a phone call. Help I've been in an accident What do I do. Well I know the first question that comes out of my mouth. Was or is anyone hurt. NO, GOOD, Insurance will take care of the equiment, let's concentrate on that for a minute.
What should we as a Safety Department/After Hours Call Number/HELP LINE be doing?
1) Assure the driver everything will be okay and to stay calm and relaxed.
2) Obtain as much information as possible. Who? What? When? Where? Why?
3) Any damage to the Cargo?
4) Are the Police on the scene yet? If not call 911 immediatley. Call back after you have finished with the Police?
5) Are your logs current, and accurate?
In the meantime what do we do next behind the scenes? That is where our training comes in. Our calls start.
We call the Insurance company and give them as much information as possible that THEY NEED TO OPEN A FILE. The rest can wait until the morning. We call the Drug and Alcohol Consortium and put them on notice just in case.
Keep the driver calls to a minimum. Just like anyone they were in an accident and maybe in Shock! A little, or alot, it does not matter. We have to show calm, clear, concise, friendly advice. If not, the drivers panic. Then we are in real trouble.
Over the last couple of years, in conjunction with our Insurance provider, we have come up with the 10 most important questions we need in case of an accident. The rest can be provided later.
1) Your Insurance Policy Number 2) Date of Loss (Accident) 3) Name of Insured (company, not driver's name) 4) Where the Insured's Head office location is (City State Province) 5) Loss/Incident Location ( Street Address/Highway/City/Province/State /Direction travelling ) 6) Loss Details (What happened ? How many vehicles involved? Theft? Multi Vehicle Accident? Hit and Run? Fire?) 7) Was anyone injured If so was there a fatality? 8) Who is calling, their name, location and a callback number 9) Who is reporting the accident to the Insurance company and what number can you be reached at within the next 15-30 minutes. 10) Do you have the number the driver can be reached at within the next 10-20 minutes if required.

Having all of this information is a basic beginning to avoid wasting time on the telephone with any Insurance company! They can open a file with this information. They can get the rest of the information in the morning. They do not need Drivers License Nubmers, V.I.N. Plate numbers etc. Don't waste time or let them waste your time. Get the claim started let the driver know they may get a call, ensure you know what to do! Of course, and more importantly this is a PROTOCOL for calling in an accident, all of which should be reported immediatly to the Insurance Company. Any delays in reporting, can cost $000's in additional claim costs and investigations.

Then you have to make sure you have your own Internal Protocol how to handle an accident, after the driver returns. That is another topic for another day. REMEMBER THE DRIVER IS ALREADY NERVOUS, WE HAVE TO BE THE VOICE OF REASON. Never be afraid to requesto help from your Insurance carrier or your Insurance agent. Their knowledge and expertise, are irreplaceable, especially in time of need.

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Last Monday's Queen's Park protest was too little too late. One time I arrived at Ford Talbotville and all the gates were locked. The security guard told me someone had just stolen a car and driven it right off the assembly floor.. Clearly a case of locking the gate after the horse had gone.

Spokesperson Scott Mooney looked like he was held up to dry, waiting for reinforcements to come from Cambridge that never arrived, and the handful of trucks that did show up weren't enough to block College Street, let alone ring the legislature.

But I'm not sure an enthusiastic turnout of cheesed-off owner operators would have done much to change public opinion either. However I was categorically wrong stating last year speed limiting Class 8 vehicles could only be safer. How could slowing down velocity result in more accidents?

The epiphany I've had is that limiting top ends means you can't break away from a pack, or speed up in some cases to get in front of merging traffic. Most drivers set the cruise as high as it goes so we get quantum lumps of trucks and four wheelers backed up for kilometres while two rigs spar with each other, gaining and losing millimeters at a time.

However speeds on the 401 have come down since the new year, and few trucks pass me between Toronto and Montreal (those that do aren't doing any great chore either). But all my driving is at night, so maybe the high ballers are still running during the daytime hours.

A driver for Maritime Ontario told me he hadn't had his speed backed off yet, but he's keeping to 104 kph, wary of the bears who seem to be out on the big road thicker than ever these last weeks. Another driver was wondering if there weren't a toggle switch he could install that would take off the limiter when he gets in the States, where trucks are allowed to run at some good clips. No is the answer, though I suppose a mechanic might be able to show you how to access the electronics and set the limit yourself. Anybody know if this is possible? At least we don't have to run tachometers as well, like they do in Europe (remember those things, with the big round clock face and the round graphs?)

The other night, somewhere around the Big Apple (Brighton, Ont., not NYC) another tractor trailer pulls out to pass me. It seems to take awhile, but he or she is nudging up. So when buddy is halfway past, maybe going 101.7 kph, and I'm doing 101.34 kph..so just coming up to my door—I flip off the cruise and buddy is suddenly sliding by like he's a highway superhero...like the old days....but behind me a the bunch in the right lane tailing me closely suddenly they have to adjust their speed, hit their brakes and start cramming into the hammer lane.

Except there's a big hill in front of us, and the guy passing me with all his weight is suddenly dying faster than me backing off the throttle. I'm thinking, better to goose it than have to hit the brakes and really mess up the flow. So suddenly I'm flying up the hill while my new friend is struggling to hold on to high gear.

I see him in the rearview finally getting back into the right lane, but not before a couple of four wheelers pull fabulous NASCAR maneuvers and come roaring by. We get to the top of the next hill and start down the other side and sure enough, here he comes again slipstreaming onto my back door and we start the process all over again.

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As much as I like to criticize the Ontario Liberals, I have to say I’m impressed by Premier Dalton McGuinty’s acknowledgement that Ontario must reinvent itself and focus on creating an economy based on sustainable energy projects.

Ontario’s manufacturing jobs are disappearing and they’re not coming back. At the same time, there’s a strong push for sustainable energy projects and the province needs to capitalize on that demand. But if that’s to happen, we need to change our mindset in a number of ways.

There were two recent reports in the GTA media that caught my attention. First, there was the report that recyclables collected in blue boxes in the GTA are being shipped to China where they’re being cleaned, sorted, converted to re-usable materials and then shipped back to Ontario. How counterproductive is that? The article went on to say we simply don’t have the labour force willing to do the dirty work here in Ontario at a competitive cost.

Give me a break. With unemployment rates climbing, surely we have the manpower willing to do this job here at home – granted, at significantly higher wages than Chinese workers are earning. My father runs a unionized plant that competes with non-unionized companies. Obviously, his labour costs are significantly higher than his competitors’. However, he’s ultimately able to provide a cost-competitive product, because they’ve been vigilant about improving efficiency in every aspect of the production process. You can’t tell me Ontarians lack the ingenuity to make it feasible to manage our own recyclables here at home. Yes, our labour costs would be higher but surely that can be offset by reducing costs elsewhere. Start by eliminating the cost of shipping containers full of junk to China and back in the first place.

I know that sorting and cleaning recyclables is not a glamorous job, but you’re out of work you’ve gotta do what you’ve gotta do to eek out a living. I know this. When I first moved to Calgary, I was up at 4 a.m. every morning delivering newspapers I felt I should be writing for. I’m pretty sure if we have the facilities here at home, we can find the workforce that would be grateful to have a job to report to each morning.

The second article was similarly discouraging. Apparently, we’re sending truckloads of organic waste collected through municipal green bin programs to composing facilities in the US. Ontario composting facilities are said to be running beyond capacity or have been shut down due to “odour problems.”

This is another classic example of NIMBY-ism preventing Ontario from creating jobs and lessening its environmental footprint. Apparently nobody wants a stinky old compost facility in their neighbourhood. Think of the jobs that could be created by building and operating incinerators here in Ontario. Also, think of the environmental benefits of dealing with our own waste rather than trucking it down to the States for the Americans to deal with. We must weigh the emissions and fuel consumption created by each of those truck trips against the reduction in methane emissions created by organics in the first place. Are we really any further ahead?

The NIMBYs have also reportedly put a damper on the province’s plans to put windmills along Lake Ontario shorelines. If Ontario really wants to become a leader in sustainable energy development and build an economy based on this emerging industry, then it needs the support of its residents. This is no time for NIMBY-ism. We need to welcome the construction of organic waste processing facilities and windmills here in Ontario. Just don’t put them in my backyard.

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Hopes that there is finally light at the end of the tunnel based on recent reports of US truck tonnage showing a spike in January (it was our top Headline News story on Friday) are, unfortunately, wishful thinking.

US truck tonnage did spike 3% in January but that’s only because December’s numbers were so dismal. Put the spike in perspective and you see why there’s no reason to be optimistic: compared to the previous January, the month was down 10.8%; and the month’s tonnage was the second lowest since October 2002.

As the American Trucking Association’s chief economist Bob Costello pointed out, just because the tonnage figures show the occasional spike is no indication the US economy is on the mend. The reality is that tonnage is still showing significant drops on a year-to-year basis.

We are far, far from a recovery, particularly one led by the resurgence of the US economy.

That’s certainly what FTR Associates, well known for their transportation sector outlooks, believes. It sees economic activity declining sharply in the US with the first quarter economic activity forecast to decline another 4.8% after falling 3.8% in the final quarter of 2008. Loadings are forecast to drop another 10% over the next several months and be off by more than 7% in 2009. That represents more than a doubling of the dropoff forecasted just a couple of months ago.

FTR expects the US economy to continue contracting right through to the third quarter of 2009. To make matters worse, there is also concern about a protracted “down cycle” in which the US economy remains stuck in neutral into 2010.

Canadian exporters are also not looking at the US market through rose colored glasses. Sentiment among Canadian exporters has hit a record low. They now see the United States as among the riskiest markets in which to sell goods, according to a semi-annual confidence survey conducted by Export Development Canada.

At the same time, concerns about the domestic economy hit a new high, with 57% of respondents expecting domestic conditions to worsen, a 15% leap in just six months.

Despite all the bankruptcies of the past year, FTR points out that the amount of excess capacity in the market remains troubling. Its latest forecast has capacity utilization staying below 70% through the third quarter of 2009.

There is already a great deal of pressure on rates but motor carriers with 30% of their equipment lying idle will likely be pressured into more rate cuts and perhaps even more questionable business decisions.

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In the last blog, the focus was on creating a sound and comprehensive business plan that can guide a company through the difficult times. While following the steps listed may seem logical and straightforward, the question is, why are so many companies unsuccessful in implementing their business plans and why do so many companies fail?

To answer this question, I have drawn some insights from two recent books. One is entitled “Stall Points,” written by Mathew S. Olson and Derek Van Bever for the Corporate Executive Board. This book focuses on the research these two gentlemen conducted into why many Fortune 500 companies have stalled in their business growth. The other is “Billion Dollar Lessons” from Paul B. Carroll and Chunka Mui. In their book, they look at the major causes for failure at the 750 companies that they studied. I have blended some of their thoughts with my own experiences in the transportation business over the past 27 years. Here are some of the lessons learned.

There appear to be two general patterns as to why various business strategies fail. The first pattern involves the process of creating the strategy; the second has to do with the strategy itself. Messrs. Olson and Van Bever argue that “revenue growth rather than any other metric is the primary driver of long term company growth. This is not to say that revenue growth without profits is desirable but to suggest that high growth through margin management is not sustainable.” Their research indicates that most large companies stall. “It is very difficult to recover from a stall.”

“Group Think” can lead to Faulty Strategies

One strategy inhibitor that has been observed in a number of transportation companies, both large and small, is the phenomenon of “group think.” Olson and Van Bever state that many companies become the “victims of group think ... Behind each revenue stall we studied, we found that the shared assumptions of the senior executive team about their strategic position were dangerously incorrect. During these companies’ growth runs, their assumptions about competitors, consumers, and sources of advantage had been dependable and useful, but somehow, across the years preceding their stalls, they had weakened, gone unquestioned, and no longer formed the basis of effective strategy.”

Smaller trucking companies are particularly vulnerable to this phenomenon since they often have a less diverse core group of executives who may have been together for some time. This may limit the scope of their experience and the realm of ideas and opportunities for growth. The other danger with “group think” in small trucking companies is that nobody wants to tell the owner or President that they are going down a dead end street.

Flawed Strategies Can Produce "Stalls" in Business Momentum

Based on extensive research, Olson and Van Bever have captured, in statistical form, the reasons why many Fortune 500 Companies have stalled and the percent of stalls attributed to various reasons. One encouraging finding is that an economic downturn is a minor reason for most stalls. Most large companies are able to transition successfully through economic storms. However the bigger issue at this time is probably whether companies are adopting the right strategies to make it through what looks like a protracted recession. The severe downturn is likely to have a serious impact on certain sectors of the market including LTL carriers and truckload carriers in segments such as automotive parts and pulp and paper, two industries where business volumes have deteriorated to levels not seen since the 60’s.

In their book, Olson and Van Bever highlight a number of reasons why (large) businesses stall. I have listed below, those reasons that have had a particular impact on the transportation industry

False Assumptions behind Premium Position Captivity

Some trucking companies have long held positions as the premium brand in their industry. This comes from a track record of quality service that allows them to charge a premium price. With so much pressure on shippers to cut costs, carriers need to be vigilant in monitoring the willingness of customers to “trade away” to a lower priced service, the ability of lower cost competitors to match the premium carrier’s service or the assumption that the carrier should give up on the low end of the market.

Premature Core Abandonment

This can be defined as the failure to fully exploit growth opportunities that exist in the company’s core business. This can be manifested in a truckload carrier venturing into the LTL business or a reefer carrier entering the flat bed business. Certainly many carriers are hungry for revenue as their core market contracts. The danger is assuming the core market is saturated and searching for growth in an area that is not a strength for the firm.

Failed Acquisition

The most frequent problem underlying these failures is a “misconceived economic model underlying a serial pattern of acquisitions ... The story behind the combination ... failed to capture the underlying realities of the businesses to which it was applied.” Messrs Carroll and Mui use the label the “illusions of synergy.”

Key Customer Dependency

For small trucking companies, there is a danger of pinning your hopes on one or a small group of customers. These create a level of dependence that is dangerous, if one or more of these customers falter or are taken away by a competitor.

Talent Bench Shortfall

Olson and Van Bever define this as a “lack of adequate leaders and staff with the skills and capabilities required for strategy execution.” The authors highlight that the problem is not just a shortage of talent “but the absence of required skills or competencies in key pockets of the firm and, most visibly, at the executive level.” The danger for trucking company executives, particularly those that have been successful in a specific segment of the industry, is to think that they can achieve similar success in another area of the business without the necessary resources, knowledge and skills.

Enhancing Opportunities for Success

Both books conclude with some prescriptions for avoiding failure. Some of the “lessons learned” include creating a culture where open dialogue and debate are encouraged, ensuring that satisfactory due diligence and effective vetting processes are in place, building consensus around the sources of weakness in the company’s core strategy and confronting operational challenges that have previously been avoided. The two books, while having some overlap, are well written and contain thoughtful material on this important topic. For trucking company executives looking to lead their companies through turbulent times, they are well advised to consider some of these important business lessons.

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Blogging is something new for me, but I'm looking forward to this new type of communicating. As a working truck driver, I want to explore issues that are of importance to my fellow gear jammers. Motor transport is a leading economic indicator, so for my first entry I'd like to talk about the current employment situation out there.

My expertise is the 401 corridor between Toronto and Montreal. Yes, traffic volumes are clearly down and have been falling for some time now, but it's not entirely dismal. And the job market hasn't completely dried up. Indeed, a little digging indicates that good jobs and good employers are still out there. Seems like I'm meeting new drivers just getting started in the industry every day, while some veterans on the big road tell me they've got as much work as they can handle. The company I work for laid off six drivers after Christmas and promptly reactivated them a couple of weeks later.

This time of year is traditionally slow for many carriers and fleets, so it's a little difficult to judge right now. The crunch may still be coming, as employers look at park more power units and remove capacity. But for now, good jobs for qualified drivers are apparently still available, although they're by no means plentiful. What's the vibe out there? Are there still good jobs for drivers who want them?

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