The Looming Fiscal Cliff and What It Means To The Trucking industry.

fiscal cliff cottrell trailers

I know of very few working people who have not heard the term “fiscal cliff”. The trucking industry is no different. The question is, what is the reaction of trucking companies and what are they doing to prepare. Well according to an article at Trucker.com

Not a lot

According to the article, a large number of trucking company owners and executives are waiting to see if we actually are going to end up going over that proverbial cliff. Demand for just about anything is down, as consumer income is way down.

You do not need market research to know that the economy has its challenges. One other thing to consider. We are not starting fresh on our economic cliff dive if we go. We have already been over one huge cliff in 2008 and really have not recovered.

What I think the real fear is what the fallout will be if we go into 2013 with

  • higher taxes
  • less revenue
  • more expenses

Realistically, we need to address the problems that sent us over the first fiscal cliff which is lack of jobs and industry to employ people so they can spend money and stimulate the need for trucking.

The current plan of political infighting, endless Chinese exports, and decreasing wages will send us over another financial cliff inevitably whether we solve the tax debate or not...

http://www.thetrucker.com/News/Stories/2012/12/13/MostcarriersinparkedmodewhilewaitingonfiscalcliffsaysTCPreport.aspx

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Changes For The CSA On The Way?



I pulled an article from Overdrive Online that goes over the new CSA adjustments to the scoring system. I am no going into the full detail of the proposed changes but here are a few significant alterations:

  1. The CSA system will show if a suspension is safety or non safety related
  2. No more speeding violations in 5 miles or less per hour range
  3. Changes in the categorization of cargo/ securement violations including HAZMAT

Overall, not major changes but at least the process is there to begin evaluating..and improving the CSA system

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A Natural Gas Cottrell Trailer...Not Quite Yet

Natural Gas Powered Cottrell Trailers

I am still yet to see any program coming down the pike for natural gas powered carhaulers or Cottrell Trailers...but I know it will be here eventually. I am reading about 5 large trucking companies that are starting natural gas programs. One huge reason for this is that there is a larger and larger network of natural gas refueling stations. Potentially this will allow more and more companies to utilize natural gas in their cottrell trailers.

The five companies using natural gas are:

  1. Saddle Creek Logistics Services,Lakeland, FL
  2. Premier Transportation, Atlanta, GA
  3. Hoopes Turf Farm, Transport Division, Ulysses, PA
  4. Lily Transportation Corp., Needham, MA
  5. Lancaster Foods, Jessup, MD
http://www.marketwatch.com/story/clean-energy-adds-major-trucking-fleets-to-natural-gas-fueling-2012-06-29

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Another Scam In Transportation: Tire Scam


Beware The Tire Scam

Trucker and Carhauler Tire Scam
According to Modern Tire Dealer a fictitious company called Canstruct Inc has been ordering tires from dealers and other shops but has no intention of paying for them. They are just on paper and the web. While they have been using this scam for tires, it is not beyond the realm of possibility that they might not try this with other products, services, trucking companies, etc..




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One Way To Prepare For High Diesel Prices


 What is 'Diesel Natural Gas'
Now you're talking. According to Trucking News, Peake fuel solutions has a product that will allow the ISX15 Cummins Engine to run a mixed fuel cocktail of Liquid Natural Gas or Compressed Natural Gas with diesel while still allowing a truck to go back to 100% diesel. The system does require a conversion kit but the potential savings and flexibility far outweigh the cost. With a fuel price future that is very very uncertain this can protect you from getting overwhelmed by high diesel prices

To read the original article click here
http://www.truckinginfo.com/news/news-detail.asp?news_id=78101

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More information on Diesel price increases

Just a followup to the previous post on diesel price increases at a recent high I pulled a few things from the Department of Energy site that give a visual depiction of the situation.

This is the official breakdown of diesel costs.

Here is a chart showing the volatile nature of diesel in 2012













You can read about the original post on Cottrell Trailers Blog at:

http://cottrelltrailers1.blogspot.com/2012/10/diesel-on-rise.html

Diesel On The Rise...


Is it a sign of things to come? or is diesel risingbecause of the need to add pressure on voters as we approach an election. I dont know, but nothing will make a voter discontent than watching more of their disposable income flow into their tank penny by penny,even if it is just affecting truckers at this poing with the recent rise

According to Transport Topics, diesel is at a four year high which is quite remarkable since their are
  • less trucks on the road
  • less drivers on the road
  • less consumption
  • lower consumer expenditures
  • Mild hurricane season (affects Gulf of Mexico shipping)
  • And lots more......
All things that should cause a price drop or at least balance out any price increases but that is not the case. So we will to wait unitl late November to see if the price corrects.

http://www.ttnews.com/articles/basetemplate.aspx?storyid=30397&t=Diesel-Rises-56%A2-to-Four-Year-High-%24415

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What Could Possibly Go Wrong?

Sometimes finding interesting articles can be tricky. Believe it or not news can occasionally be dry in our industry. Sometimes though, these stories write themselves. Such is the case in my latest find from Business Insurance magazine online. The story I speak of is a truck driver who was terminated because he refused to drive a truck full of explosives with a co-driver that smoked like a chimney.

Oh..Come On..What Could Possibly Go Wrong? 

Are You saying that a guy with an open flame could potentially trigger a truck loaded with combustible flammable materials? YES, I think that is clear. What happened next is a case of gasoline being poured on a fire (pun intended). The company terminated the safety mongering driver AND the driver, now turned whistleblower, reported them under the Surface Transportation Act. The result

  • The company had to pay the driver over $300,000 
  • The company had to reinstate him
Lot of things going on with this story..First of all kudos to the driver for not letting me get blown up on the highway because the trucking firm exercised really bad judgement. I learned in first grade that fire should not be near

  • Flammable substances
  • EXPLOSIVES
Second, I did not know there was a 'Surface Transportation Act'or what it does. Any act that keeps somone from smoking around a truck full of explosives is alright by me. In fact, why don't we change the name to the 
'Common Sense Act'   or the 'Don't blow up the cars on the highway act'

Finally, I am little nervous that a trucking company would do this. What if the truck blew up and they found traces of cigarettes everywhere? $300,000 would be a dream amount of damages if that was all they would have to pay. In fact, the more I think about this I don't like the term whistleblower being used in a case like this. 

This is not a case of someone embezzling money, or cheating the government, or harassing someone on their staff. This is a company unintentionally acting as an accidental urban terrorist putting EVERYONE in serious danger of being blown to pieces. No I do not thing the firm planned to blow up the public but what difference does that make if the public bears the penalty of this stupidly. I think when the common sense gap is this big and the danger this big, the person who tells should be called a hero for standing up for what is right.

Thank you for keeping us safe on the road

Michael Saks
Editor of Haulin
ECTTS

http://www.businessinsurance.com/article/20120828/NEWS07/120829889?tags=|70|75|305|84|303|304


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CSA Rankings: Are They Accurate?


Must Read Article From Transport Topics

Cottrell Trailer For Sale: Click Picture
There are still questions about how accurate the CSA rankings are. The article in question indicts the program as being inaccurate. In non legal terms, companies are getting punished wrongly IF this is true..time will tell


link to article CLICK HERE

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Distracted Driving...Has It Become An Epidemic On The Road

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We have all heard the buzzword: distracted driving. The question
is who bad has it gotten and what are the penalties if you
get caught?

 
Well according to an article in Fleet owner newsline the
State of North Carolina Highway Patrol is willing to answer those questions.

In their findings the problem of distracted driving is epidemic. Three huge
pieces of evidence have moved them to take action. They are:

  • The Fact that the number of texts has increased over 50% from 2011 and is reaching into the billions
  • The Fact that Thousands have  died in North Carolina because of distracted driving
  • The Fact that over half a million have been injured in North Carolina due to distracted driving
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And this is just in North Carolina! I do not know how many states
are cracking down on distracted driving but if they have not started you
can bet they are going too.

Do the math. If 50 other states produce the kind of injuries and fatalities
from distracted driving like North Carolina, the devastation must be tremendous and cannot be ignored.

There is also the danger this poses to other truckers and carhaulers. With more distracted people on the road, the risks go up for people whose job is the road. Thus the chances of truckers being affected by this is higher since they are on the road more often.








http://fleetowner.com/safety/nc-highway-patrol-campaign-focuses-distracted-driving
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Imagine Paying Enough In Fines To Buy 5 Cottrell Trailers?

Sounds ridiculous doesn't it? Well according to A Fleetowner Newsline Article one company has enough in fines with the Port Authority of New York/ New Jersey to have purchased 5 Cottrell Trailer Units with lots of options.

Did I miss something here?

How can you be allowed to pass through the toll system illegally so many times that you are in arrears to the State of NY/ NJ Port Authority for almost 2 million dollars? Personally I would rather have spent that money one something I can use. The violating company only racked up over $150,000 in actual toll charges. It was the fees on top of this  that shot their total into the millions

To read more at Fleetowner Magazine online click here

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Trucking Adds 7,300 Jobs in May, National Job Growth Stalls - How Will This Trend Effect Autohaulers

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Trucking Adds 7,300 Jobs in May, National Job Growth Stalls - Truckinginfo.com

This is the only good job news I have seen lately BUT I wish I knew how many of those 7,300 jobs are autohauler jobs. Overall I would imagine that the number is very similar to percentage of autohaulers to total drivers. Either way it is a positive statistic. Without trucking and hauling the economy CAN'T grow


 Trucking Adds 7,300 Jobs in May, National Job Growth Stalls - Truckinginfo.com

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Roadcheck Scheduled for June 5-7 - Truckinginfo.com..Autohaulers Get Ready!

 Autohaulers....Inspection Day Is Here

Thousands of inspectors will be hitting America's highways so make sure your Autohauler is either
  1. Up to par 
  2. Or in the shop today 
 
If not you could really rack up some CSA points. As if being an autohauler were not already challenging, here is one more thing to worry about.


 Roadcheck Scheduled for June 5-7 - Truckinginfo.com
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Tire inflation newsletter for truckers and carhaulers

Cross-section diagram of a tire (tyre) showing...Image via Wikipedia  
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