FMCSA Eyes Trucker Cell Phone Ban

http://blog.freightaccess.com/2010/12/fmcsa-cell-phone-ban-pending-for-truckers-and-freight-carriers/

The Governing Administration is Continuing To Move Forward regarding Controversial Legislation Excluding Use of Cellular Phones When Driving

Washington DC.

Today, Monday December 20, 2010, the united states Department of Transportation proposed a new safety regulation which, as part of its commitment to safety, would likely make an effort to lower distracted driving through reducing use of hand-held mobiles while you are operating a commercial freight rig on interstate roadways. This specific idea has surfaced several times and situations caused by the creation of the Federal Motor Carrier Safety Administration's (FMCSA) Comprehensive Safety Analysis (CSA) 2010 guidelines.

The top of the United States Transportation Authority, Secretary Ray La Hood indicated his support for such restriction. Mr. la Hood thinks that this kind of regulation could significantly help make the roads safer by way of recommending the freight delivery driver maintains their entire focus on the highway and not just on a portable cellular phone. Mr. La Hood emphasizes that whenever a commercial freight driver or owner operator takes his or her's attention off the road, there is a prospect of accidents or fatalities on Our country's Roads.

If this sort of legislation is suggested, the Federal Motor Carrier Safety Administration (FMCSA) could possibly prevent commercial truck drivers, in operation, from operating a cellular phone whilst driving. The Federal Motor Carrier Safety Administration would most likely propose federal civil penalties ranging up to $2,750 for each occurrence and multiple offenders of a cellphone ban might face disqualification of driving privileges. While at present only in the discussion phase, this kind of restriction being considered may move to suspend a driver's CDL after the second violation of any active state restriction with regards to cell phone usage even while operating commercial vehicles.

The significance of this unsafe practice might not be limited to only the driver - offender. Current versions of legislation being considered would probably hold the freight carriers liable for their truckers who use cellular telephones for driving as well. LTL and Truckload Carriers could very well face a maximum penalty of more than $10,000 for each occurrence. This important proposal, if executed, can effect as many as four million interstate commercial drivers.

The Administrator of the Federal Motor Carrier Safety Administration (FMCSA), Anne Ferro is convinced that implementation of this sort of regulation would probably make the streets less dangerous and aim to lessen the impact of the top reason behind inattentive driving. Ms. Ferro explained the FMCSA's commitment to applying all resources to make certain that commercial truckers are operating safely at all times. FMCSA Research demonstrates that operating a cellular phone whilst driving takes a significant amount of attention away from the driver's operation of the vehicle. Truckers who had reached for an object including a mobile phone while driving were more than three times more likely to be involved in an accident or other safety critical incident. The stakes go up more than 600% for drivers who are dialing a telephone during operation of their semi truck. These data are not new to many of the industry's top LTL or Truckload Carriers. Trucking companies such as UPS, Covenant Transport, Wal-Mart and more have enforced company policies and have banned truckers who have engaged in use of phones during driving. These carriers have taken proactive steps in eliminating these unsafe driving habits.

FMCSA research shows that using a hand-held cellphone whilst driving requires a commercial driver to take several risky steps. In particular, commercial truck drivers reaching for an object, this kind of as a cellular telephone, while you are driving are three times more likely to be involved in a crash or other safety-critical event. Drivers dialing a hand-held cell phone during driving increase their risk through six times. Many of the largest carriers, this sort of as UPS, Covenant Transport, and Wal-Mart, already have company policies in place banning their truckers from using hand-held phones. In September 2010, FMCSA issued a regulation banning text messaging during operating a commercial motor vehicle.

Despite the FMCSA being very busy with the role-out of Comprehensive Safety Analysis (CSA 2010) implementation, the Administration is moving forward on this important rule rapidly. The Federal Motor Carrier Safety Administration is providing a 60 day period for the public to reply to the rule making. The comment time period begins after the proposed rule is released in the Federal Register.

FULL ARTICLE HERE.


Brad Hollister is an Experienced Transportation Executive with a passion for Business Development through innovation, process improvement, and technology. Feel free to contact me with any inquiries, opportunities, or suggestions (http://www.bradhollister.com) Brad Hollister Official Homepage.



http://www.freightaccess.com: The Federal Motor Carrier Safety Administration has taken quite a few actions during the course of 2010 towards broaden its governance of the Transportation Industry along with Freight Carrier Market. The FMCSA isn't stopping at simply implementation of controversial CSA 2010 Program. . The Administration is actively seeking to control use of hand-held mobile phones by truckers along with truck drivers.

CSA Safety Standards Are Upheld After Challenge from Carrier and Truck Driver Associations

http://blog.freightaccess.com/?p=266

On November Twenty ninth, 2010, several Key U . S . Trucking Associations, representing over 3,000 independently owned fleets, filed the motion with the United States Court of Appeals to be able to evaluate the launch of the FMCSA's Comprehensive Safety Analysis (CSA) 2010 regulation. The Carrier Lobbying Associations would like a perpetual stop on the Federal Motor Carrier Safety Administration's discharge of the controversial carrier safety scores as defined inside the FMCSA's controversial safety regulaiton.

All these Truck Carrier Associations was previously refused a temporary restraining order to prevent implementation of CSA 2010 safety scores for the public, while all these 3,000 in addition to privately owned fleets had registered the injunction on December 10, 2010. The Federal Court had decided to issue an expedited deliberation to listen to arguments coming from both sides over the merit to issuing this kind of injunction against the Federal Motor Carrier Safety Administration (FMCSA) with the release of this Comprehensive Safety Analysis scores within the CSA 2010 legislation.

These Freight Carrier Associations in search of the injunction are the Expedited Alliance of North America (TEANA), the Air & Expedited Motor Carrier Association (AEMCA), plus the National Association of Small Trucking Companies (NASTC). As a group, these three Trucking Associations really are opposing the release of Comprehensive Safety Analysis (CSA) data arguing that the Federal Motor Carrier Safety Administration (FMCSA) does not fully understand the huge effect the release of this driver safety results will have about the small carriers.
Under the Federal Motor Carrier Safety Administration (FMCSA) legislature, the actual Comprehensive Safety Analysis 2010 (CSA 2010) is likely to make most documents available to the public. This info won't just report every single ticket, warning, safety incident, accident, in addition to out of service orders to the public for each Carrier, but also for every single truck driver. The Federal Motor Carrier Safety Administration will work with just about all regulating agencies to supply a complete and comprehensive report surrounding the Behavorial Analysis and Safety Improvement Categories (Referred to by the Federal Motor Carrier Safety Administration as BASICs).

The BASICs categories are comprised of the subsequent criteria for every single freight carrier in addition to truck driver: unsafe driving, driving when fatigued, drivers unfit to operate a commercial vehicle, operation of a vehicle while impaired due to alcohol or drugs, improper maintenance, and collision instances experience. The three trucking associations have shown arguments how the Federal Motor Carrier Safety Administration (FMCSA)'s release of this Comprehensive Safety Administration details.

The Truck Rental Market has been discussing the issue of vicarious liability for many years. When a party is working on your behalf (known or unknown), vicarious liability is created by either an action or non-action. Even if the Federal Motor Carrier Safety Administration oversees carriers, freight brokers, logistics companies, and shippers as a customer from the freight carrier (whether directly or indirectly) can be obtained vicariously liability or carelessness any time choosing a freight carrier or truck driver.

Several new circumstances have already been effectively presented and damages awarded coming from companies which didn't have immediate affect in the evaluation of the service provider. The three trucking organizations trying to get this injunction against the release of Comprehensive Safety Analysis (CSA) results from the Federal Motor Carrier Safety Administration (FMCSA): Expedited Alliance of North America (TEANA), the Air & Expedited Motor Carrier Association (AEMCA), and also the National Association of Small Trucking Companies (NASTC) and many others are worried that freight brokers, logistics companies freight forwarders, intermodal carriers, warehousing firms, and also shippers could feel compelled to choose primarily freight carriers and truck drivers with only the best safety scores for concern with added responsibility by an improper freight carrier or owner operator selection.

In 2004, a Maryland court resolution held a third party logistics corporation liable for the negligent choosing of a trucking company which induced a major accident because the firm did not take the Federal Motor Carrier Safety Administration (FMCSA) safety status of the freight carrier into consideration before hiring the trucker (Shramm vs. Foster).

This hot button issue of this new initiative will unquestionably continue into 2011. For now the three trucking associations failed to demonstrate damages caused by the CSA 2010 regulation. The court has decided oral arguments offered on behalf of the 3,000 freight carriers to date happen to be ruled to be predicted or forecasted, damages, not actual damages. Thus the courts have consistent upheld the Federal Motor Carrier Safety Administration's (FMCSA) governance over the issue. Time will tell if the trucking industry will be successful in demonstrating damages as a direct result of the Federal Motor Carrier Safety Administration?s (FMCSA) latest Comprehensive Safety Analysis legislation known as CSA 2010.

View Article by CLICKING HERE.

Brad Hollister is an Experienced Transportation Executive with a passion for Business Development through innovation, process improvement, and technology. Feel free to contact me with any inquiries, opportunities, or suggestions (http://www.bradhollsiter.com) or by visiting http://www.freightaccess.com .

View FULL Article by CLICKING HERE.
By: Brad Hollister.

Freight Carriers and Owner Operators May Experience Environmental and Emmission Standard Regulations in the Near Future (if the EPA and DOT have their way)

By: Brad Hollister | Freight Access, Inc. (http://www.freightaccess.com) CLICKING HERE. or CLICKING HERE

Later this week, the FMCSA together with dept . of transportation will undoubtedly be meeting to continue a rule making session trying to get medium and also heavy duty vehicles and tractors environmental standards being placed into law. This issue of gasoline proficiency has unquestionably been controversial. A number of proceedings occurred in attempts to push regulation regulating freight truck fuel performance for tractor makers; to take effect for tractor versions built between 2014-2018. On-lookers and the ones near to the situation believe that final regulation may be in position prior to the end of 2011.

The fuel consumption along with emissions quantities currently being taken into consideration are based on President Obama's dedicated initiatives to change the transportation industry's specifications. Even while much disagreement has taken place, the agencies writing the legislation assure trucking executives that they are implementing prevailing technologies in legislation and also believe medium level trucks as well as heavy duty tractors can certainly Increase their gas mileage by ten to twenty percent. Regulators from the Us Epa along with the Department of Transportation's National Highway Traffic Safety Administration are the organizations assigned in order to manage this reform.

The earliest open public hearing occurred on November 15 following a notice of 600 plus page draft of recommended regulation which had been published on October 25th. The upcoming hearing will be slated for November 18th in Cambridge, Massachusetts in which the board may administer oral arguments around the 600 page legislation as well as the investigation of National Highway Transportation Safety Administration's ecological impact study which can be the foundation of the breakthrough for the suggested guidelines.

Once notice of the planned regulation is technically written and published to the Federal government Register, the environmental Protection Agency along with National Highway Transportation Safety Administration must begin a 60 day time period where the public can make remarks, as part of the public process. Currently, the new legislation is targeted at implementation of existing technologies such as focusing on speed limiters, anti-idling technology, aerodynamics, and use of lighter materials. The legislation being discussed is targeted to affect heavy duty pickups, vans, vocational vehicles, as well as combination tractors... in model years starting as early as 2014.

Needless to say, many in the industry are concerned the implementation of further restriction can devastate an already fragile transportation business. The domestic United states Transportation business has been under extreme stress due to new legislation. Industry leaders believe that these added technologies will significantly increase not only the costs of operation but the expenses of purchasing new equipment in the future. Numerous small carriers and Owner Operators will no longer be able to afford new trucks and thus will be forced to keep older equipment as well as fleets on the highways much longer under the new legislation; while law makers argue the increased expenses of these technologies far outweigh the benefits as well as operational savings throughout the life of the truck.

The federal Administration officials point out that the benefits of technology could deliver savings of up to $74,000 per truck; far out-pacing the increase in costs. The regulatory authorities think environmental programs will improve the truck driver's earnings along with improvement in environmental impact. Numerous producers such as Ford, Navistar and others joined the truck Manufacturers Association and Engine Manufacturers Associations are in favor of implementation of the new standards. These groups providing comments strongly urged the Epa and FHTSA to be practical regarding implementation of new standards.

Kyle Treadway, chairman of the American Truck Dealers Division of the National Automobile Dealers Association strongly encouraged these agencies to be realistic while considering the implementation of suggested requirements. Mr. Treadway focused his remarks on practical implantation, suggesting the new legislation be realistic, affordable, and technologically feasible. He went on to say that if any of the three criteria is not met, Mr. Treadway believes that truckers will not purchase new vehicles which may considerably damage truck lots. Low-rolling-resistance tires were also under attack, as it was suggested that the Epa and NHTSA investigate these technologies completely to ensure that the added effectiveness are not endangering the traction each tire can achieve.

View Full Article Here: http://blog.freightaccess.com/2010/11/transportation-market-to-face-further-restrictions/

QUESTION: A question for the shipping community...What are your plans for qualifying carriers under CSA?

Good question. The wording of your question is interesting because it covers a broad spectrum I'd like to break down & clarify. CSA 2010 will have larger impact on the Transportation Professionals than the Supply Chain Professionals. LET ME EXPLAIN:

I have several friends (Long Term Clients) managing Fortune 100 Supply Chains (and smaller of course) who have not even heard of the CSA 2010 initiative. I have been asking all of them what they are doing to prepare for carrier enforcement. What I believe is happening in terms of preparation for Supply Chain Professionals (Manufacturers / Distribution Companies), is quite the opposite of what professionals on the Logistics/Transportation side are experiencing. Supply Chain professionals are looking at the new regulations from the perspective that the Federal Government is now accepting a role in their quality control procedures by monitoring carriers and intervening non-compliant carriers.

I see there are two folks who posted excellent comments (from Transcore) related to this question. The tools Transcore is offering however, are targeted primarily to Logistics/Transportation professionals who make up the majority of Transcore's client base as Transcore has very little penetration in the direct Shipper market. The solutions introduced by Transcore are directed more at Logistics / Transportation Professionals who would certainly open themselves up to liability by hiring companies outside of compliance guidelines.

Direct Shippers & Distributors however (anecdotally of course) have far less interest in their degree of additional liability directly from tendering their own (or customers) freight. Many of these Supply Chain professionals already have quality & performance guidelines in place to restrict their carrier network to a finite number and do not feel as though further monitoring or program creation offers a palatable ROI due to current anemic resources staffing levels at this point in the economic cycle.

I just wanted to clarify the question and identify the stakeholders we are referring to in the 'Shipping Community' because the impact of the new regulation varies greatly from Stakeholder Type to Stakeholder Type. Shippers certainly will pay more for tightened capacity, while one could make the argument 3PL's actually will make MORE (since they often operate on margin and freight pricing will be higher) so long as these 3PL's have proper procedures in place to reduce liability from hiring non-compliance carriers.

Good topic and great responses. It is entertaining to see that this Industry has continued to live up to its Opportunistic Nature. There seems to be THE REPORT or THE SOFTWARE that you need to 'survive CSA 2010' in every other email. The truth of the matter is that the direct impact of CSA 2010 varies from company to company, while the indirect impact increases prices for all across the board (and potential profits also as identified above for 3PL).

Thank you;

Brad Hollister
http://www.freightaccess.com

CSA 2010 Deadline Could Reduce Drivers by More than 20%

Substantial change is on the horizon for the Transportation Industry and it seems as though news of the effect is actually falling upon deaf ears. The Federal Motor Carrier Safety Administration has stated a limited number of the 500,000 current trucking companies have logged onto the CSA 2010 web page to check out their own profiles. The FMCSA has strongly encouraged helping drivers and companies understand the impact of the brand new regulations and also the particular importance associated with observing their overall performance. FMCSA authorities have been pleased that just over 2% of all freight carriers have actually logged in to determine their own results and make sure that they are in compliance with the rapidly approaching policies.

Several people in the community from Owner Operators, Consultants, and Carriers, to Freight Brokers, 3PL's and Shippers have deemed CSA 2010 Regulation as a "GAME CHANGER" for the trucking industry. The coverage of the new regulation has been wide-spread and has been the topic of numerous heated discussions. Certainly, there has been countless charged debates the business and the FMCSA and Congress. Despite the pleas of countless in the industry, Federal Officials have concluded that the large number of companies whom have not logged on is a direct outcome of many carrier's focus on day-to-day operations which usually do not allow them to concentrate on the quickly nearing regulation.

The brand new Safety project may begin in December and also will continue to be integrated through most of 2011. Federal, State, and Local Officials may continue to prepare and refine the new system. December, 2010 may be a very fast paced month for the staff of the FMCSA. The Agency's goal for December 2010 is to make the CSA data readily available to trucking firms as well as open to the public. In addition to making info obtainable, the FMCSA will certainly commence sending letters to carriers whose information does not match recent compliance requirements and discovering carriers which may receive field inspections.

Perhaps the most significant problem of the initiative is that the FMCSA still does not have written standards with regard to precisely how the agency will certainly determine safety fitness. The FMCSA will issue a suggestion for exactly how it decides to figure out safety fitness through the first half of the year. The Physical fitness requirements is a crucial factor of the CSA Regulation which in turn will serve to separate the Compliance Review from a carrier's safety score and add the criteria to the monthly performance data from the new Safety Management System.

The FMCSA recognizes that much concern exists in the driver and carrier communities. The FMCSA is not contemplating a public driver scorecard or rating/ranking of any sort. The Agency went on to further explain it is not looking to issue large driver suspensions and the Agency will not be considering plans to stop or limit trucker's potential to drive based on bodily characteristics such as weight, body mass index or neck dimensions.

Though the FMCSA is certainly not restricting drivers based on physical fitness, there are significant reasons why carriers ought to pay attention to their own standing in the new system. There are numerous risks carriers face when and if their own fleets drop outside of government guidelines, while the FMCSA is being rolled out:

In addition to Federal Regulation, the actual dangers of having inadequate CSA scores in respect to their rankings.

Risk # 1) Shipper's Carrier selection. If a Carrier's ratings tend to be jeopardized a Shipper, Manufacturer, Freight Broker or 3PL may possibly route their business to a different carrier with better compliance scores. It is important to realize the importance of effectively serving their Customers with great service and compliance with federal regulation.

Risk #2) Accessibility of Reasonable Insurance Premiums. Insurance companies regularly evaluate safety and compliance ratings as a basis for determining carrier insurance premiums. Following December's availability of the new CSA legislation, it seems insurance companies will implement these ratings as the benchmark for selecting rates. Non-compliance with these standards can inevitably result in higher premiums or lack of available premiums all together.

Risk #3) Claims payouts. Carriers with poor compliance scores typically pay higher Claims settlement values largely because the added care and safety taken with much more efficient operations produces reduced claims rates.

Risk # 4) Poor Driver Environment. Excellent drivers will continue to seek out companies having higher CSA Scores as those companies with higher emphasis paid on much better scores may be more searched for by Shippers.

Risk #5) Potential FMCSA Intervention. Skirting the line of compliance may continuously place your company at risk of intervention or shut down by the FMCSA. This will cause employees and clients a like to feel much less confident about your ability to provide solutions for their needs and in your company's service overall.

Preliminary data indicate that virtually 20% of all truckers on the road are in jeopardy of a FMCSA Intervention into their operations. The new formula with regard to examining safety compliance under the new regulation has found that more than 1/5 of the carriers reviewed will be very likely to get 'unsatisfactory' results; especially within the Fatigued Driver Behavior Analysis and Safety Improvement Categories. The sample of 60,000 carriers indicated that the smallest fleets with less than five trucks saw risk of intervention grow from 10 to 15 percent, while the largest fleets with greater than 500 power units saw their own risks decrease to 42 percent.

Driver fatigue continued to be the largest cause for concern, even though vehicle maintenance, and dangerous Driving had been also seriously problematic categories. The crash indicator and dangerous driving BASICS diminished across the board specially amongst large fleets. Viewing of preliminary Safety Improvement Categories began August 16, 2010. The CSA 2010 Behavior Analysis and Safety Improvement Categories (BASICS) are:

1. Driving Unsafely.
2. Driving Outside of Driving
3. Driver Health & Fitness
4. Driver Chemical Abuse
5. Maintenance of Vehicle
6. Cargo Regulation Violations
7. Crash Statistics

Carriers due date to preview their safety performance data and also deal with any alarming conduct which could lead to accidents and fatalities on our roadways is on Dec 5, the national roll out of CSA2010.

View Full Article Here: http://blog.freightaccess.com/2010/11/carriers-slow-to-respond-to-csa-2010-requirements-as-deadline-rapidly-approaches-says-brad-hollister-of-freight-access-inc/

Red Tape at Warehouse Prevents Truckers from Shelter During Tornado

Several Truck Drivers across the country have become furious over the treatment of fellow truck drivers whom had been not allowed into a Cincinnati, OH storage facility overseen by Excel Transportation. On October 26, 2010, storm sirens sounded as wind gusts exceeded 80 miles per hour, leaving drivers lacking safety from the 100-year weather system. Company spokes people from Excel Transportation and J.M. Smucker Company have assured truck drivers and also freight corporations they will equally do more to be able to give protection to drivers and also personnel any time extreme weather threatens the basic safety of professionals at or around a facility.

A Wisconsin-based trucker named Duane Soderstrom was basically not permitted safe entry into the J.M. Smucker Company owned facility during the tornado sirens. A security guard refused Mr. Soderstrom entry and demanded he return to his rig until the storm was over and that Mr. Soderstrom would be alerted once he was allowed to enter the facility once once more.

Maribeth Baderstcher, Executive for the J.M. Smucker Company conveyed her extraordinary dissatisfaction regarding the method in which truckers were treated at the facility and also assured the public that future processes would increase basic safety of all personnel for future occurrences. Ms. Baderstcher went on to mention that the safety objectives for individuals while on the J.M. Smucker building was not really achieved and acknowledged the significance of encouraging a safe climate for all, through not only extreme conditions but all times in which a person's safety is jeopardized.

Just about all parties involved in this potentially dangerous situation in Cincinnati seem to acknowledge partial responsibility. The Lease-Operator of the facility (Excel Transportation) has identified mis-communication as a important cause of the situation stating that the contracted security team appeared to be plainly executing assignments to the written requirements of the agreement rather than using commonsense into account while making important safety decisions. Lynn Andersen, Executive of Communications apologized to the truck drivers for the procedures implemented, and the danger these types of procedures may have prompted to the basic safety and well being of all involved.

The two corporations have made plans to extend their apologies directly to the truckers. The tactical error as identified by Ms. Andersen was that safety procedures for personnel during emergency situations were not extended to all people on-site at the time, but instead simply employees and personnel of Excel and or J.M. Smucker Corporation. Ms. Andersen assured drivers in which all security personnel and facilities management would extend emergency processes to take care of all personnel, individuals, and truck driver on property during emergencies and disasters.

Regardless of the action taken by management, the Fruit company left drivers with a bad taste in their mouths. Mr. Soderstrom pointed out this event topped any adverse treatment he has experienced in more than 25 years on the road. He had been extremely thankful a tornado did not indeed touch down near the facility and that no one was hurt throughout storm. Mr. Soderstrom feared what would have took place to the stranded truckers had circumstances worsened and still stays bitter at the lack of regard for the stranded truckers.

The events of October 26, 2010 must serve as a excellent reminder to all of us in the community that we as fellow inhabitants of earth need to reach out a hand to those in need. This particular occasion reminds all of us that we must apply common sense when interpreting procedures and continue to keep in mind the safety of others throughout all emergency circumstances.

By Brad Hollister
Freight Access, Inc.

Full Article Here: http://blog.freightaccess.com/2010/11/truck-drivers-safety-engangered-during-tornado-by-corporate-supply-chain-red-tape/

Brad Hollister - Director of Business Development Announces Launch of http://www.freightaccess.com

CHICAGO, IL:
August 31, 2010

Freight technology provider Freight Access, Inc. announced the company was nearing the anticipated discharge of the world's first freight marketplace. The software technologies provider happens to be in research and development for more than two years to produce a system pertaining to virtually all stakeholders in the freight, cargo, transportation, trucking and logistics industry. Brad Hollister, the firm's co-founder and Director of Business Development said "As a transportation executive who has a broad range of industry experience, we have identified the elements on the industry which cause problems for the stakeholders. We have focused on developing a suite of low cost solutions to help fellow transportation professionals have access to real time data to make informed and sound business decisions."

Freight Access, Inc. (http://www.freightaccess.com) has chosen to focus on exploring the difficulties of the freight industry from multiple points of view as well as included solutions to them in to the completely new and widely anticipated tool for only $11 per month. Freight Access, Inc. boasts their vision of really helping the lives of transportation professionals from making day-to-day features better, helping dispatchers and traffic managers to make much better use of company resources together with choose only beneficial supply chain partners and lowering risk in exploring new partners.

Hollister explained "There are a lot of mis-conceptions in the industry pertaining to reducing transportation costs. Most former freight and carrier executives elect to take a position as a third party logistics provider or supply chain consultant, who are ready to teach shippers and manufacturers how to reduce transportation costs. The problem is these freight professionals themselves do not understand the forces the market plays on the freight industry, as they have come from a single carrier who focused on getting freight and adjusting pricing up and down to attract new shippers. These former LTL (less than truckload) and truckload vice presidents typically come and offer to take a freight profile, a company benchmark, and then send out a request for pricing with all carriers to get a 'bid' from all of them. The largest pricing requests I have seen include 150 or more carriers and take months to analyze. A seriously antiquated approach, which provides seriously limited results. The approach at www.freightaccess.com is different. Let's do this for every shipment. Let's get a new Request for Pricing for every single shipment sent out. This way carriers and owner operators win by filling empty trucks and shippers are able to benefit by filling empty capacity in real time."

Freight Access, Inc. has recognized a pattern in the transportation industry throughout carriers during the past market cycle. Numerous Owner Operators have recognized that finding freight that pays for itself to transport is actually quite difficult, therefore often times these independent truck drivers find themselves working for one or several third party logistics firms or even larger carriers. These ltl carriers or truckload carriers have a primary interest in minimizing the actual amount the truck drivers are being paid so that their profits increase and in many cases owner operators find the amount they are actually being compensated for a shipment is barely able to cover costs of driving. In addition, many third party logistics firms have sprung up who aren't paying out drivers within tolerable terms, if at all in a few instances.

The freight industry may be desiring the low cost tools supplied by Freight Access.com for some time. Steve Obregon, Owner Operator from Obregon Trucking in Wisconsin is a strong supporter of Freight Access's platform. "I've looked at what they're doing and can't wait to get going on it. I am sick of sitting for days for one of my brokers to call me with a load. I constantly call them to say you got one yet, you got one yet? It will so nice to find a load before I even get to the place and also to look about if I'm making or losing money on it."

Freight Access, Inc.'s freight marketplace technology is currently concluding beta testing. If you're interested in becoming a beta tester, contact Freight Access, Inc. by calling 312-450-3020 or by emailing a request (with "BETA TESTER REQUEST" in the subject line of your email) to marketing@freightaccess.com.

http://blog.freightaccess.com/2010/08/freight-access-com-freight-marketplace-set-to-be-unvieled/

Cheap Freight Prices Leave Marketplace as Capacity Tightens and Shipments Increase for LTL Carriers

Frozen Food Express Industries (Dallas located refrigerated truck food carrier with truckload, less than truckload freight, and third party logistics solutions) released their financial outcomes for the second quarter of 2010. Frozen Food Express is truly a top nationwide leading temperature controlled truckload and less than truckload carrier in the domestic United States. The main focus of the carrier is to haul temperature controlled along with frozen perishables for the health care, confectionary, and food markets. The carrier also operates a third party logistics (3pl) division so as to exceed demands of shippers as well as other freight brokerage customers.

The Company's CEO suggested the carrier had put a higher focus on service excellence and asset utilization. Mr. Stubbs believes that the focus on preservation of moneymaking clients will improve margins in truckload and increase tonnage and shipment count on the less than truckload (LTL) division as well. A combination of an exodus of competitors and reduction in available capacity has improved the freight transportation and logistics marketplace. These types of economic elements permitted Frozen Food Express to lower their pre-tax loss by more than 41%.

Even with revenue only slightly up 9%, the use of existing equipment, increase in pricing, and lack of competition permitted for these enhanced final results. Regarding the previous six months however, the operating revenue had dropped even more than 3%. Tractor productiveness (measured by revenue per truck per week) was additionally up by a lot more than 4% during the quarter as the market has appeared in order to turn in the favor of the freight carrier. In 2009 Frozen Food Express mentioned they had made the decision to park a portion of their particular existing tractors until finally the marketplace came back. Now the carrier appears to be putting all of them back into operation as the industry continues to recover.

Shippers have in addition been prepared to react to the freight marketplace additionally. Carrier management say they have found a willingness on part of the shippers and logistics firms to adjust pricing in order to reflect the tightening marketplace. Truck Drivers returning to work will certainly aid the transportation industry returning to profitability as freight prices advance off of historically low levels. A lot of freight carriers have put into practice cost-saving techniques, as losses throughout the last number of years have been growing. Throughout second quarter of 2010, the majority of carriers have seen much better results from a combination of a positive freight pricing environment and results of these carrier cost saving techniques.

Frozen Food Express says a significant component of its success through these turbulent economic times have been the employees loyalty to the company and willingness to look for new efficiencies in virtually all phases of the operation. The carrier continues to possess a good cash position devoid of financial obligations outside of its credit agreement. Frozen Food Express possesses almost seven million dollars in cash, 83 million in investor equity and simply no outstanding debt. While the carrier is in a solid position to weather out the economic climate, the management is dedicated on continuing to manage its assets utilization as well as seek out even more operational efficiencies.

It seems freight carriers have regained a foothold in the transpiration industry. Several Carriers and third party logistics firms have reported far better than expected earnings and narrowed losses due to tightening capacity and lowered overhead. An economic recovery inside the freight industry definitely appears to be underway. Let's hope the momentum allows a continual economic recovery not only for freight and transportation, but also for the broader economy.

Full Story Here: http://blog.freightaccess.com/2010/08/less_than_truckload_carriers_see_freight_marketplace_improving/
FULL STORY HERE

Air Freight Volume Spikes 38% in 2010 as Air Carriers and Freight Forwarders Back in Black.

Its difficult to disagree that 2010 has become a very difficult year pertaining to transportation, freight, cargo and logistics industries. The majority of carriers, steam lines, railways, and truckers had been confronted with diminished freight volume, slim profits, and nearly all have experienced hard lay offs. A single section of the marketplace has performed surprisingly well on the other hand: Air Freight.

Air Freight volumes have increased almost 40 percent through the first six months of 2010. Global freight trends have indicated that Air Freight, and Freight Forwarding have exploded at almost three times the rate of ocean forwarding (ship cargo) for the first half of 2010, to the satisfaction of nearly all air freight management. The majority of freight forwarders would welcome this steep increase in business after 2009 which in turn proved to be a year of reduction in shipping and freight tonnage.

Transport Intelligence has announced that Air Freight is up more than 38% during the first six months of 2010, even while Ocean Freight Forwarding is up a mere 13 percent. Although most would accept any kind of good move in volumes at this point, the actual point that Air Freight reported such significant advances relative to Ocean Cargo leaves the marketplace in a holding pattern when waiting in order to watch if freight distribution can return to a lot more traditional levels. Transport Intelligence believes the increase in all these trends followed by freight carriers and cargo shiplines decision to limit capacity will be certainly putting pressure on shippers and their third party logistics companies to pay greater costs of operations. Transport Intelligence's Report may be found here (http://blog.freightaccess.com/2010/08/annual-global-freight-forwarding-report-2010-from-t-i/).

The Annual Global Freight Forwarding Report written by Transport Intelligence noted an increase in volume for the transportation marketplace felt by freight carriers, which followed a 23 percent drop in 2009 from 2008 shipment volumes. It seems this unpredictability in volume has not been simple to accept for freight forwarders and cargo carriers. Just six months ago a lot of of these third party logistics providers and airlines were concerned about how to sustain operations at trim staff levels and now they are actually slammed with far more freight shipments than they may handle with existing resources.

The freight marketplace is anticipating a balancing time period back to more historical freight volumes as well as absence of such shipment volatility. Most manufacturers have forgone conventional supply chain inventory because of to a range of factors such as absence of accessible company capital. The absence of inventory helps to explain the spike in air freight traffic. It appears that inventories will come back to regular levels throughout the up coming few years. Transportation Intelligence believes it will require until 2013 to be able to come back to pre-2013 levels especially in Europe.

Improved Security of Freight Cargo poses minor problems during first week of enforcement.

This week, the federal regulations requiring 100 percent screening of air cargo moving upon passenger aircraft went into effect. The majority of Freight Forwarders experienced little if any effect, as a lot more than 95 percent report no troubles throughout this first week. A lot more than 709 surveys were sent to the Air Freight Association looking to gain feedback concerning the actual simplicity of integration. Simply five percent of participants noted major complications adhering to the new guidelines, which were not correlated to any particular airline nor any airport.

The transition came at a really excellent period for the air freight marketplace as August is usually a slower month for airlines and freight carriers. The AFA attributes this smooth transition to the educational efforts and preparedness procedures put forth by the AFA, federal government, and numerous freight forwarders to ensure integration has been done properly.

FULL STORY HERE



By Brad Hollister

Less than Truckload Carriers Appear to Have Worst Behind Them as Finding Freight Becomes Easier

If we were to select one sector of transportation that went through the toughest economic situation within the last calendar year, we definitely select Less Than Truckload Carriers (LTL carriers). With top Freight Companies such as Fed Ex Freight and Con-Way laying off workers in addition to posting losses, at this time there is no doubt Less Than Truckload Carriers have struggled.

Challenged by large fixed-costs on one hand and freight capacity plummeting almost 30%, we foresee a really difficult path ahead for the Ltl carrier industry. One of the problems is over capacity and empty trucks, despite freight quotes falling and cheap freight starting to be commonly available. Many experts happen to be concerned what could take place once government stimulus money injections cease and the actual supply chain demand from logistics companies, freight brokers, and shippers is left to a much more normal, un-subsidized level.

The actual question uncovers quite simply to lower freight quotes to find freight for empty trucks, or to continue to run trucks with empty space. All Stakeholders in the Freight Industry: Shippers, Freight Brokers (Logistics Professionals), Owner Operators and Carriers alike are inclined to agree with the fact that Less than truckload quotes tend to be going up.
Freight Executives from Pitt Ohio Express have stated there is simply no point in looking to expand frontiers when you do not have the freight load capacity in order to fulfill demand. Analysts disagree that raising freight load volume, increased tonnage, and better LTL carrier discipline are all creating a better outlook for the growth of the Less Than Truckload segment.

On the other hand, various other analysts consider that the likelihood of losing some carriers over capacity will not become a significant concern. "Most carriers have been running lean for the past 36 months." said Brad Hollister of Freight Access, Inc. "We have heard of the troubles of some of the larger carriers for sometime, but it appears that bond holders are not willing to cut their losses quite yet and are being patient in monitoring performance. This may have to do largely because of the state of the overall economy. Not only is there a lack of other investment opportunities, but there is virtually no market for liquidating assets, particularly in the used truck market."

Presently, it seems the LTL Carriers in the freight industry have definitely made it through a very difficult period. "Most companies are lean right now and virtually all are announcing better than expected results, which will continue to strengthen the sector going forward." said Hollister. Brad Hollister went on to say "The question remains who fast will rates continue to raise going forward as demand increases. It is the age-old question of raising rates sharply to capture profits or more moderately in order to regain market share. It appears that every carrier has a different philosophy so it will prove to be a marketplace filled with opportunities over the upcoming months."



Full Story Here>. Full Story here: http://blog.freightaccess.com/?p=137

Less than Truckload Carriers Applaud the Exit of Cheap Freight as Capacity Tightens

If we were to choose a single segment of transportation which went through the worst financial situation during the last twelve months, we must pick Less Than Truckload Carriers (LTL carriers). With top Carriers such as Fed Ex Freight and Con-Way laying off personnel in addition to reporting losses, there is no question Less Than Truckload Carriers have struggled.

Challenged by high fixed-costs on one hand and transportation demand dropping virtually 30%, many of us expect to have a tough path ahead with regard to the Less than truckload carrier industry. One of the problems is over capacity and empty trucks, even with freight quotes falling and cheap freight becoming commonly available. Many experts happen to be concerned just what will take place once government stimulus capital injections cease and the supply chain demand from logistics companies, freight brokers, and shippers is left to a much more natural, un-subsidized level.

The question turns up quite simply to lower freight quotes to find freight for empty trucks, or to continue to run trucks with empty space. All Stakeholders in the Freight Industry: Shippers, Freight Brokers (Logistics Professionals), Owner Operators and Carriers similarly are inclined to agree that Less than truckload rates are increasing.
Freight Executives from Pitt Ohio Express have now acknowledged right now there is simply no point in seeking to expand frontiers if you do not have the freight load capacity to fulfill demand. Analysts content that boosting freight load volume, increased tonnage, and better LTL carrier discipline are all creating a better outlook for the growth of the Less Than Truckload segment.

On the other hand, some other analysts take into consideration that the likelihood of shedding a number of carriers over capacity will not become a major concern. "Most carriers have been running lean for the past 36 months." said Brad Hollister of Freight Access, Inc. "We have heard of the troubles of some of the larger carriers for sometime, but it appears that bond holders are not willing to cut their losses quite yet and are being patient in monitoring performance. This may have to do largely because of the state of the overall economy. Not only is there a lack of other investment opportunities, but there is virtually no market for liquidating assets, particularly in the used truck market."

At the moment, it seems the LTL Carriers in the industry have certainly made it through a demanding time. "Most companies are lean right now and virtually all are announcing better than expected results, which will continue to strengthen the sector going forward." said Hollister. Brad Hollister went on to say "The question remains who fast will rates continue to raise going forward as demand increases. It is the age-old question of raising rates sharply to capture profits or more moderately in order to regain market share. It appears that every carrier has a different philosophy so it will prove to be a marketplace filled with opportunities over the upcoming months."



Full Story Here>. Full Story here: http://blog.freightaccess.com/?p=137

Trucking Technologies Helping Truck Drivers to Overcome New Transportation Legislation

Electronic Onboard Recorder (EOBR) systems are being recommended as improved fuel management and planning systems, automation of driver logs for truck drivers, fleet driver accountability as well as data reporting which helps in several departments for carriers from planning / routing to payroll and mileage reports. Executives believe that mileage and fuel expenses may be reduced by close to TEN PERCENT in addition to the capability to objectively evaluate operations and better analyze truck maintenance records.
CR England had voluntarily moved to EOBRs more than one year ago. CR England recruits and teaches their own transportation drivers and had been exploring systems for making log books less difficult to maintain for new drivers, improving the Hours of Service infractions and making log books less difficult to manage from a distance. Together with proper evaluation and reporting, the firm was also able to make improvements to planning and make use of of their fleet and review fuel consumption in real time. The results CR England reported were nothing short of impressive. Log Book Infractions have been lowered by an unexpected 63% and the truck driver out-of-service rate declined by close to 75%.

CR England is looking to EOBR as its primary solution for compliance with CSA 2010. Executives believe that utilizing electronic log books can easily remove or reduce the majority of log book violations. In addition to decreasing Hours of Service violations, dispatchers can better manage truck drivers to ensure these people are able to curb fatigue as well as practice safer driver techniques while driving.

Not all stakeholders in transportation share CR England’s enthusiasm for this latest technology . Many have recommended use of extreme care for a lot of transportation carriers understanding CSA 2010. The new regulatory system for analyzing compliance with the new safety regulations gives openness to all parties as well as plaintiffs’ attorneys. The data accessible could lead to increased litigation as attorneys could attempt to relate accidents to driver scores and attempt to persuade courts to view carriers or drivers as historically careless, based upon just a handful of infractions.

New technologies will certainly continue to play an essential part in the freight industry in the on-going future. Several cutting edge load matching platforms, dispatch programs, tracking systems will certainly have effect on the way shippers, carriers, brokers, and owner operators conduct business in the future. It will be very important to evaluate technologies relative to new legislation for you to make sure you are in a position to understand the issues facing the industry so you may be able to position yourself favorably among your competition.


Brad Hollister is the Director of Business Development for Freight Access, Inc.. Brad Hollister loves Networking with Entrepreneurs, and learning about new business Opportunities. His professional focus on the freight and logistics industry as well as helping non-profit businesses.

Idling Laws Impacting Trucking Industry by Brad Hollister (http://www.freightaccess.com)

Can Truck Idling a Serious Cause for Concern?

New Jersey’s Department of Environmental Protection ran a check August 2008 to find idling trucks and found over 100 trucks in violation of the state´s three minute idling limit idling intended for freight owner-operators.

Your first infringement for idling past the three minute restriction in New Jersey is $200, the second infraction will be $400, and for additional violations you are looking at over $1,000 fines. This has come to be a very polarizing problem for many in the transportation industry and trucking industry.

New Jersey is not the state to start imposing tough laws of which restrict idling. A minimum of 25 have current no idling rules which will limit truck driver's ability to leave trucks idling.
Quite a few truck drivers find these idling laws harassing. If they are the actual owner-operators of the actual rig, they are actually responsible for any fine, (in some instances, violations could be as much as $25,000 or in possibly possibly larger, as in the case of Massachusetts).

Some drivers actually enjoy the effects because of no-idle regulations so that they should be able to unwind in a more quiet atmosphere once they are off the road. Several Shippers have actually taken issues into their own hands. Hunts Point Cooperative Market (the world's biggest food distribution center) utilizes a personal security force to be able to support the state's five-minute idling restriction. A spokesman for Hunts Point mentioned that they had 1000s of trucks in there a day and also states they discover less than a few violations each week.

Connecticut has been a little more lenient. As soon as a driver is determined in violation, the vehicle's owner will have to inform the state's Bureau of Air Management in order to make sure actions are in place to make certain it will never occur again.

Massachusetts idling law includes an added element of protection to it's idling law. The state limits idling to less than five minutes except throughout tasks including pre-trip inspections. This way drivers are not penalized for carrying out a in depth examination of their equipment. Massachusetts happens to be a stringent enforcer of these kinds of regulation in the past . In August of 2009, The EPA penalized Materials Installations (a household furniture distribution corporation) a tremendous $109,120, for violations which produced more than 1,000 total idling minutes between 2003 and 2004.

On the other hand, non-diesel machines aren't restrained. Many freight load drivers are not as worried with the outcomes of no-idling restrictions due to the fact they are able to sleep away from the sounds of the traffic. Other truck drivers see this regulation as a method to gather revenue.

Just how much air pollution actually end up being lowered by simply no-idling of trucks?
Simply how much of this legislation which is applicable simply upon freight load idling may have an effect on pollution in the city is actually a good question. This is dependent a lot on what statistic one looks at. “A lot of the air quality programs are local, so to understand the benefits you have to look at the local problem,” says Suzanne Rudzinski of the U.S. Environmental Protection Agency. “In some areas it’s going to be more important than others.”

Global truck air pollution is actually moderately small compared to the complete motor pool in most urban centers. The actual problem is usually with certain areas of which are particularly impacted by freight and truck idling emissions. These areas may possibly gain considerable air quality from applying modest limitations of which don't need to result in substantial fines.

Brand new technologies have been released to provide a solution to several of these issues. Many drivers perceive the idling legislation as a matter of safety. The trucks usually need to be able to remain operating to heat and cool trucks while drivers sleep in safe conditions. The continuing legislation in the industry will continue to drive cost of doing business greater and make it more difficult for drivers in order to succeed in the difficult freight business.

By Brad Hollister
http://www.freightaccess.com

Selecting the Right Freight Forwarder - By Brad Hollister

CHICAGO, IL

It truly is very crucial to find the perfect freight forwarder for the success of your company's supply chain. Speed often defines the success and effectiveness of your organization's supply chain. The following are suggestions from http://www.freightaccess.com to assist your corporation to choose the most beneficial options for shipping freight with freight forwarders.
Initially a company should examine your own practice of transportation before discussing with any sort of logistics professional or truckload carriers. Your organization might have to contemplate a number of aspects which include shipment volume, quantity, etc. How will your cargo move… by way of truck, ocean, rail or air? Your ocean shipments at the beginning may possibly be container loaded or be break bulk or very heavy freight. If your business really want to send your product by way of air freight then it could be done through passenger aircraft or through main-deck configuration, but this solution might be fairly costly. A person may also move your freight via truck or van. Your business have to be very clear concerning the expectations of your organization. Your company must clearly define the logistic requirements and describe your business' goals and objectives in all distinct proposal request.

You shouldn't leave the negotiations on prices solely on the traffic department of your firm. Your organization really should provide your abilities and understanding about internal departments like, marketing, information systems, purchasing and finance. Also, your business should really involve the senior management to review the procedures. For obtaining the best result, your firm will need to adhere to the internal values of your business. Your business also know all the capabilities and resources available. Look at the way each carrier performs together with the domestic and international offices? Should the freight broker have the necessary resources of handling all situation which may arise? All of these questions are critical. Your organization might decide upon such a carrier who will decrease your company's freight damages, saves your time & money by finding cheap freight. Any damage claims which may arise might be taken care of in an expedious fashion, with out requiring organization resources.

Lastly, decide on freight forwarders with substantial carrier and freight broker relationships. These freight forwarders should find freight carriers which will ultimately help reduce costs and provide your company with cheap freight. Although these brokers may be utilizing loadboards to find freight and empty trucks, it will absolutely assist you to reduce supply chain expenditures and leverage the relationships of current freight professionals to your benefit.

Brad Hollister
Director of Business Development
http://www.freightaccess.com
The World's Marketplace for finding loads, cheap freight, and freight quotes for shippers, carriers, owner operators, and logistics professionals.

Important Decision: Choosing the Right Carrier for Your Company. - By Brad Hollister

In the fast moving World of freight and logistics, choosing a less-than-truckload (LTL) provider is actually the essential choice a broker will need to make. Ltl carriers that fully understand the variables impacting the cost of goods delivered and the general client satisfaction can mean the distinction between selecting profitable business or ruining your business.

Clients cherish carriers that manage pickup and deliver times, keep consistent transit times, in addition to produce great customer support. Several elements to take into account are Consistency, Trust, and Customer Service.

Consistency:
Every load may possibly determine the longevity of the client relationship. Delivering a small percent of shipment delayed can certainly mean a 100% fiasco within your customer´s eyes which can surely find freight services which meet his expectations. Ensuring you choose a service provider that keeps a strong consistent history dramatically decreases unforseen risks.
Inquire into your carrier's transit times and direct service points. In Less than truckload its usually much better for freight go through the the very least amount of locations attainable to avoid needless problems, and so extensive systems gain because of these rules.

Broad, single-network coverage together with the particular highest number of direct delivery points is certainly the most effective choice for your cargo. This additionally elevates customer satisfaction. Whether your shipments demand a overnight, or a long-backhaul solution, a single simple telephone call, together with a single delivery from the ordinary driver, tends to make doing business easier.

Trust:
Project your expectations. One ought to not be held hostage between selecting dependability or speed. Selecting that Ltl carrier that can supply both is absolutely essential in today´s aggressive market place.
Search for a freight carrier with superb safety records. Incidents plus delays over the road will signify severe delays pertaining to your company's LTL shipments.
State logistics associations often observe and release service provider safety records, this is a excellent area to make sure you have chosen the perfect trucking company for your shipping needs.

Customer service:
Once a consignor has options in Ltl load carriers, he will probably need for you to take a look at the trucking company's customer service. The shipper should investigate precisely what to anticipate coming from the partnership with his trucking company.

One more element of service for you to look into is the visibility of account specifics and accuracy of bills. Find out if shippers get to ask about their particular freight's status, or will they have the capability to track it online 24/7? Investment in Online platform can today keep a frequent trace of your own shipment and will be an gauge of your Freight carriers motivation to it´s consumers. The Freight industry is a capital-intensive business. In order to provide useful solutions, carriers should continually invest in infrastructure such as freight handling tools, and new trucks, rigs, tractors, flatbeds, vans, rgns, and trailers. Old equipment implies unexpected issues can come up at any moment. An Less than truckload carrier along with an extraordinary investment record is an Less than truckload carrier that will not put your shipments at risk and will support a consistent work relationship from which both shippers and carriers benefit.

Brad Hollister
Director of Business Development
http://www.freightaccess.com
http://www.bradhollister.com

Article about tips in hiring the best LTL Carriers. Brad Hollister - Director of Business Development, www.freightaccess.com.

As Transportation Equipment Sales Spike, has the Supply Chain and Logistics Horizon Calmed, or Does it Remain Rough? - By Brad Hollister

CHICAGO, IL:

Trailer orders of Dry Van Trailers recently have erupted as truckload companies and less than truckload carriers have begun to realize an increase in earnings from recently tightened capacity. The ACT Research Company mentioned that purchases for Commercial Dry Vans have been upwards of more than 102% in June of 2010 in a month which historically is a slow month for trailer purchases.

A number of analysts believe that capacity had hit bottom for truckload carriers and LTL carriers during February 2010. This rebound in transportation and logistics has rocketed truck Van Trailer sales around 165% year to date for 2010. Reefer Trailers have not encountered the volatility that Dry Van Trailers had and Reefer truck trailers are up 5% this year to date over 2009.

The spike in trailer sales has definitely followed by the raise in spot market pricing and transportation profitability for all carriers. Many truckload carriers, ltl carriers, and owner operators have simply parked trucks and much of their equipment has been taken off of the roads and relocated over to rig parking lots. Capital expenses have been meager at best the last number of years so some analysts are convinced this most recent increase in equipment demonstrates carrier profitability and fleet reinvestment.

While many transportation and logistics professionals are excited about the recent news, others remain skeptical of a long-term recovery for the trucking industry. Brad Hollister, Business Development Director for Freight Access, Inc. (http://www.freightaccess.com) commented that “A long term recovery may be difficult to sustain. The smaller carriers, owner operators, and other logistics professionals do not have access to available credit required to sustain a wide-spread recovery. These recent spike in equipment sales is a reflection of large companies not only running lean for so long, but much of this recent capital expenditure may be postponed equipment replacement which did not happen during the last 24 months.”

Many trucking companies and owner operators have decided to park their fleet as availability of capacity neared its highs in the fourth quarter of 2009 and first quarter 2010.. With capacity tightening this equipment will undoubtedly find its way back onto the roads and highways so that capacity will once more regain a market generated equillibrium. “Even though 2Q 2010 has been a welcomed surprise, there are still many risks to a long term recovery which does not have access to available small business capital,“ said Brad Hollister.

Hollister believes that a combination of newly purchased equipment and renewed dispatching of existing fleets will balance out the current opportunity which exists in the industry, in the upcoming months. Analysts should be cautious about seeing the large carriers purchasing equipment as a definitive sign of direction of industry recovery. Until the sentiment is shared across firms of all sizes, the market will have obstacles to overcome before a recover can be declared.

By Mark Friend, July 23, 2010

Freight Access, Inc. http://www.freightaccess.com is a Wisconsin Corporation. To contact Brad Hollister, Director of Business Development, call 312-450-3020 or bhollister@freightaccess.com.

Hold the Band... Let's get our Arms Around Recovery First - Brad Hollister

Freight Certainly is looking like it is in recovery mode, but it appears that I have not received a satisfactory explanation of the factors sustaining a long term rally. Badly needed credit is still unavailable to fuel a large scale recovery, tax increases hit 1Q 2011, and unemployment seems to continue remain steady amidst increased regulation.

So someone please help me understand otherwise. I do see a tremendous improvement in the freight market, but not ready to celebrate until we understand what is behind the rally.

Brad Hollister
http://www.freightaccess.com
http://www.bradhollister.com

Supply Chain Visibility - Not an Emotional Game.

This blog is in response to the article posted by Robert Bowman - Supply Chain Brain " Stopping Conflict Minerals With Supply-Chain Visibility."

I think I understand the logic, but it is so much deeper than this Robert. The problem of conflict minerals is much larger than the problem on the surface. With that being said, the solution is deeper as well.

Let's say we took your advice. Great. Wonderful. I'm sure these warlords will continue to feed their slaves. I'm sure they will continue to take care of them with meager living conditions forever and ever. Under that Utopian scenario, what changes?

My understanding that is if we did take your advice, you know what would happen to these people working in the mines? It would be a 15 minute massacre of all men, women, and children. There would be no sense of keeping these slaves around anymore. In addition, do you really think the Warlords would just let them go? Common Robert.

The same logic applies to these advocates for closing down 'sweat shops.' First of all, define a sweatshop. Are they bad working conditions? Well of course they are. You think everyone in the World can work in a unionized, air-conditioned facilities with vending machines? So, the conditions working in an overseas factor are horrible. I concede the point. However, you know what happens when someone cannot go to work for $.15 an hour? They can't find work for even $.01 / hour.

So, while these are terrible conditions, you cannot blame market demand. You cannot try to interject government mandated or humanitarian mandated conditions on the market. The market will decide.

My point further extrapolated demonstrates if all of South America, North America, and Europe take your advice... someone else is buying these things. It doesn't help anything. So whether you restrict the buyers of these minerals to those good-hearted Humanitarians or stop the sale completely, the people you are trying to protect are hurt further.

The solution lies in each of our own salvation. God has his own way of leveling the playing field. In the meantime, don't cut off these people's only meager ability to survive, regardless of how miserable YOU think the conditions are.

Brad Hollister
http://www.freightaccess.com
http://www.bradhollister.com

Freight Transportation Services Index (TSI) Fell 0.4% in May from April

Wednesday, July 14, 2010 - The Freight Transportation Services Index (TSI) fell 0.4 percent in May from its April level, declining after two consecutive monthly increases, the U.S. Department of Transportation's Bureau of Transportation Statistics (BTS) reported today (Table 1).

BTS, a part of the Research and Innovative Technology Administration, reported that the Freight TSI has risen 4.4 percent over the last 12 months, starting in June 2009, after declining 15.3 percent in the previous 10 months beginning in August 2008. The index has increased in nine of the last 12 months (Table 2). Through the first five months of 2010, the index declined 1.9 percent with small increases in January, March and April combined with a 3.5 percent decrease in February and the 0.4 percent decrease in May (Table 3). For additional historic data, go to http://www.bts.gov/xml/tsi/src/index.xml.

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

The May Freight TSI of 97.7 is a 4.4 percent increase from the recent low of 93.5 reached in May 2009. In May 2009, the index was at its lowest level since June 1997. The Freight TSI is down 13.5 percent from its historic peak of 112.9 reached in May 2006.

Although the index rose 4.4 percent from May 2009 to May 2010, it remains below the level of every other May since 1997 when it was 92.7 (Table 4). March 2010 was the first month since July 2008 in which the Freight TSI exceeded the level of the previous year. The index has exceeded the previous year's level every month since March but still remains below the level of earlier years.

The freight index is down 12.4 percent in the five years from May 2005. The index is down 1.8 percent in the 10 years from May 2000 (Table 5).

The TSI is a seasonally adjusted index that measures changes from the monthly average of the base year of 2000. It includes historic data from 1990 to the present. Release of the June index is scheduled for Aug. 11.

For a video explanation of the TSI, see Overview of the Transportation Services Index. For a BTS report explaining the TSI, Transportation Services Index and the Economy is available for download.

This article is found at http://www.bts.gov/press_releases/2010/bts033_10/html/bts033_10.html

Brad Hollister is the Director of Business Development at http://www.freightaccess.com.

Carriers and Owner Operators Must Manage Their Own Business, Not Government.

I have written this blog in strong disagreement with an article posted on of my favorite publications: Logistics Today, http://www.logisticstoday.com. The article is found here: http://bit.ly/92jkJ2. (PLEASE READ ARTICLE BEFORE PROCEEDING).

The article written by unattributed author basically states that the FMCSA has told SHIPPERS they need to stop undermining truckers ability to drive safely and stop wasting their time. The government is telling customers they need to be better stewards of the resources of their vendors. To make matters worse, the OOIDA's Todd Spencer agreed with this and endorsed government's opinions on free-market business practice.

I disagree with this article, as this article is not accurate. Most companies do charge detention. I have been on both sides of this coin as Business Development Director at Freight Access.com (http://www.freightaccess.com), working with abrokers, carriers, and shippers. When a truck is held, the carrier typically charges the broker detention fees per hour (if broker is involved, otherwise charged back to shipper). When the broker is charged detention, the shipper ultimately pays the broker's detention invoice, after that carrier charge is re-submitted to shipper by their broker. Detention happens most commonly at ports and trade shows. If an Owner Operator does not charge detention, that is a business policy they have chosen to elect or chosen to forgo. Some restaurants charge you for soda refills, others don't charge you for refills and provide these resources to in attempts to retain your business in the future. The FREE MARKET Decides.

When an account refuses to pay the carrier or owner operator detention charges, or argues... the market fixes itself in most cases (should fix itself in ALL CASES). What I mean is that if a client or customer is not profitable to do business with, it is up the us as industry professionals to stop doing business with that company. The last thing anyone needs is government intervention telling us how to govern the free market.

So, while detention always has been and always will be a problem... it is really a function of monitoring business profitability. Detention time and consequently impact on the driver log is a cost of doing business, which must be evaluated and communicated clearly to dispatch, sales, and business development folks. Feel free to join my linked in group called "Owner Operators and Drivers of North America." http://bit.ly/cynnTI. The purpose of the group is to discuss items like this.

In conclusion, I am very sympathetic to the terrible conditions drivers have on the road today. Detention is one of a long list of areas which our brave men and women need assistance from the market while out on the road. However, a governing body to form an OPINION on any issue is certainly not worthy of applause. It is the job of these Agencies to enforce federal law, not form their own personal opinions. We need to be cognoscente of the probability of detention and cost over runs for each individual load delivery and help carriers and owner operators measure shipper (customer) profitability for each account. While there are several options for these tools, the real issue lies in the fact that it is important to know that the solutions lies within each of us as professionals, and not the government's intervention.

Brad Hollister
Business Development Director
http://www.freightaccess.com

New York Leading the Way on Jason's Law

New York State Pioneering Parking Legislation

NEW YORK – The state of New York introduced pioneering legislation aimed at protecting Truck Drivers and Owner Operators. State lawmakers James Seward (NY State Senator) and Peter Lopez (NY State Assemblyman) have co-sponsored legislation aimed at assisting businesses to create safe and available truck parking.
The concern of safe truck parking has erupted throughout the trucking industry in the last number of months. Federal legislation has been introduced the United States House of Representatives and Senate following the murder of truck driver Jason Rivenburg. Rivenburg was a New York driver who was robbed and shot in 2009 while his truck was parked at an abandoned Gas Station in South Carolina.
The New York state legislation is proposing a loan fund to assist in the creation of truck parking along highways, truckstops, travel centers, and hotels. The bill also grants tax credits to Shippers and Consignees who provide parking facilities for drivers awaiting pickup and delivery of loads.

Brad Hollister

Logistics Costs Plummet more than 18%

CHICAGO— Manufacturer and Distributors spent a record low on logistics last year. Annual cost of logstics spent a record low of just under 5% of GDP in 2009, compared to just over 9% in 2008., according to annual report issued last week.

The Council of Supply Chain Management Professionals (CSCMP) and Penske Logistics at the National Press Club reported Logistics Spending by Manufacturers and Distributors has fallen to 7.65%, from a Record high of 16.2% in 1981. The report outlines the impacts the 24+ month recession has taken on the transportation and freight industry.

Beginning in 2008 Shippers and Carriers had felt the pinch from excess capacity, higher fuel costs, and increased external threats introduced into the industry regarding tighter regulation on a multitude of platitudes.

Over the Road Carriers, Logistics Professionals, Truckload Carriers, Owner Operators, and LTL Carriers have taken steps to reduce capacity, but Rosalyn Wilson (Authori of the CSCMP Report) warns Shippers, Manufacturers, and Distributors that the current business climate and increase restrictions on consumer credit may cause difficulty in rapidly expanding capacity in the foreseeable future. “It is likely that we will have capacity problems in some areas by year’s end,” Wilson reported.

The Freight, Trucking, Intermodal and Air Freight Industries have been under considerable pressure since the beginning of the recession more than two years ago. Transportation costs tumbled an additional 20 percent in 2009 after surging more than 50 percent during a five year period preceding the recession which began in the fall of 2008.

After rising over 50 percent in the five years leading up to the recession, total logistics costs have fallen the past two years. Transportation costs were down more than 20 percent last year. All transportation modes have been effected, with trucking (both Truckload and LTL combined) falling more than 20 percent. Intermodal and rail prices nearly mirrored trucking rate reductions with substantial declines averaging just under 20 percent.

THE CHANGING FREIGHT INDUSTRY

Shippers cannot get too accustomed to these cheap shipping and cheap freight rates. Capacity constraints, carrier bankruptcies, and Owner Operator financial struggles have impacted the Transportation Industry which will result in large reductions of capacity Wilson warned. Wilson went on to advise caution as freight rates have already risen in some modes and higher rates will continue to be introduced to the market place before the end of 2010.

The Trucking section (truckload carriers, less than truckload carriers, and specialty carriers) have felt the economic struggles. Experts are forecasting an additional 2,000 trucking companies will close their doors because the financial pressures places on them will be too much to survive.

Third Party Logistics Firms have also played an important role in the ever changing transportation industry. Many Shippers have abandoned their long-standing Logistics (freight brokers, 3PL, Third Party Logistics Firms) and have elected to utilize the spot marketplace. This shift has significantly pressured freight companies to reduce prices further to win business.

The remainder of 2010 will continue to be challenging for all transportation companies. Some experts explain there is excess capacity simply ‘parked’ which can be utilized with little notice. Other transportation experts believe there will be shortages of both trucking equipment and truck drivers. Wilson believes the transportation industry has leveled off to adequate market capacity levels, but expressed concerns how the industry will facilitate future economic growth as demand returns and freight pricing increases.

Owner Operators and Truck Companies who survive the industry will have an undoubtedly optimistic future. Experts believe Capacity will tighten and cheap freight rates will disappear as rates rise. Manufacturers and Distributors must maintain strong freight relationships in order to position themselves favorably as freight prices begin to climb with economic recovery.

Other experts argue that modest rate increases will be realized in 2010, but that largely freight pricing will remain reasonably flat going forward. There are many factors which are yet to be determined and issues facing our economy and transportation industry. One thing is for certain: If one asks around enough about the feeling of the industry, there is certainly an optimism for a long awaited economic recovery for Owner Operators, Truckload Carriers, LTL Carriers, Shippers, Manufacturers, and Distributors alike.

By Brad Hollister

Director of Business Development

http://www.freightaccess.com

http://www.bradhollister.com

Thank you.