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OOIDA urges members to call lawmakers on concealed carry amendment
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Truckers hauling high-dollar loads often find themselves targets for
thieves looking to make a quick buck by robbing drivers of their
possessions, freight and – in some tragic cases – their lives.
However, some thieves may think twice before approaching a truck if they know the driver might be armed.
This is why the Owner-Operator Independent Drivers Association sent out a national Call to Action
on Tuesday, July 14, to its members, urging them to contact their
senators to support an amendment that is being offered by Sen. John
Thune, R-SD. Thune’s amendment would allow individuals who have
concealed carry permits to carry a firearm in other states that also
grant concealed carry permits.
Thune’s amendment was one of
35 that was added to the National Defense Authorization Act – or S1390
– which was being debated on the Senate floor on Tuesday.
In
June, OOIDA President Jim Johnston sent a letter of support to Thune,
who introduced S845, the “Respecting States Rights and Concealed Carry
Reciprocity Act of 2009,” because of its potential benefit to truckers
who are in harm’s way daily.
“Every day the nationwide
shortage of safe and secure truck parking threatens the well being of
Americans who make their living behind the wheel of commercial motor
vehicles,” Johnston wrote. “Drivers who are forced to park in unsafe,
unsecure areas are vulnerable to individuals seeking to do them harm,
rob them of their possessions and steal the freight they are hauling.”
OOIDA
Life Member Tim Begle of Dale, IN, who carries a gun with him when out
on the road, said he agrees with Johnston’s statement that Thune’s
amendment, if enacted, would go a long way toward helping truckers
protect themselves.
“As drivers, we go into some pretty
unsecure locations in some of the warehousing and industrial areas that
aren’t great places for truckers to be in at night, but are great
places for crooks waiting to prey on truckers,” Begle told Land Line on July 14. “I have spoken to many drivers who have even been robbed at truck stops.”
Just showing his weapon to potential thieves has saved him at least twice, Begle said.
“This
is an important issue for drivers,” he said. “If a thief knows a driver
may be armed, it might be a deterrent for the thief not to take any
chances and mess with a driver or his truck.”
– By Clarissa Kell-Holland, staff writer Courtesy of LandLine Magazine
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New Jersey laws put restrictions on young drivers
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Multiple changes have been made to New Jersey law in an effort to
make roadways throughout the state a little safer for all users. Gov.
Jon Corzine recently signed into law three bills that put tough
restrictions on the youngest drivers in the state. The changes take
effect in spring 2010.
One new law cuts back the number of hours young drivers can be on the road and limits the number of passengers.
Previously
S16, the new rule limits probationary licensed or permitted drivers
under age 21 to one passenger, unless accompanied by an adult. Affected
drivers also will have to be off the road from 11 p.m. to 5 a.m.
Existing state law mandates that affected drivers park their vehicles by midnight.
New
drivers without a full-privilege license also will be prohibited from
using wireless devices – hands-free or not – while at the wheel.
Advocates said the changes are aimed at minimizing distractions by tightening regulations.
They
cite a report issued last year by the New Jersey Teen Driver Study
Commission that found the risk of crashes increases when teen drivers
take on more passengers. Carrying three passengers can increase risk
207 percent, according to the report.
Another change to state
law requires people with the graduated driver’s licenses to display
special orange decals when they get behind the wheel to make it easier
for law enforcement to spot young drivers. The mandate applies to any
vehicle they drive.
Sen. Fred Madden, D-Camden, Gloucester, said that 40 percent of fatal teen car wrecks occur between 9 p.m. and 6 a.m.
“This
new law will work to protect all drivers by reducing these numbers,
while also making it easier for law enforcement officers to identify
teen drivers,” Madden said in a written statement.
S2314 is
intended to reinforce existing rules in the state regarding teen
drivers. Violators of the decal requirement would face fines of $100.
One more change amends the state’s graduated driver’s licensing law.
Previously
A3068, the new law requires teen drivers with a learner’s permit to log
at least 50 hours of practice driving – including 10 hours of night
driving. The practice driving must be certified by a parent, guardian
or supervising driver. A six-hour driving course also is mandated.
Drivers
age 17 to 20 who obtain an examination permit will be given the option
to complete the learner’s permit certification requirements or complete
100 hours of certified driving, including 20 hours of night driving.
Drivers
under 21 who have been issued learner’s or examination permits will be
required to hold those permits for one year before being eligible for
provisional licenses.
To view other legislative activities of interest for New Jersey in 2009, click here.
– By Keith Goble, state legislative editor Courtesy of LandLine Magazine
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Behind the Wheel - What is a Traffic Control Device?
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Amid the chaos of a collision scene this afternoon came a call over the
police radio: "grab that vehicle, it just drove around the cones and
into oncoming traffic!" Not only did the emergency workers have to deal
with a two vehicle collision in an intersection full of emergency
vehicles, they also had to contend with drivers who were going through
no matter what. The line of cones blocking the lane might not have been
seen as something the driver needed to take meaning from in this
situation.
A traffic control device can be many things including: a sign, signal,
line, meter, marking, space, barrier or device. In this case, the cones
would be considered a device and when placed across the lane are a
traffic control device that bars traffic from proceeding. Failing to
obey them may place yourself or others at risk and could result in the
issue of a violation ticket.
This is a very narrow view of the huge number of traffic control
devices that we encounter when we drive every day. Signs are self
evident, but it sometimes seems that the message conveyed by the type
of line painted on the roadway, arrows painted on the roadway or
lights, signs and barriers in a construction zone or collision scene
are either confusing for some drivers or convenient to disobey as it
suits others.
Almost all of these devices should be self evident and all drivers
should know what to do. In this case, it seems that the driver did not.
Should one drive into the oncoming lane toward a crash scene filled
with emergency vehicles with flashing lights? Yes, if directed to do so
by a person in authority when no other way exists to get past.
Otherwise, stop and wait, or as in this case, make a U-turn and go
around the block.
Reference Links
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OOIDA urges truckers to call on NY truck ban
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A proposed rule that would ban truckers from seven key routes in
upstate New York has made its way to the governor’s office for review.
For
more than a year now, the Owner-Operator Independent Drivers
Association and its New York members have been fighting against the New
York State Department of Transportation’s plan to restrict trucks from
certain state routes in the Finger Lakes region.
On Friday, July 10, OOIDA sent out a Call to Action
to its New York members urging them to contact Gov. David Paterson
about how this could prove disastrous for small-business truckers.
OOIDA
Legislative Affairs Director Mike Joyce said the timing of this
“couldn’t come at a worse time” for truckers who are just trying to
survive during these challenging economic times.
The NYSDOT
estimates its plan could cost truckers an additional $10 million per
year in additional fuel, toll and operating costs if truckers are
forced off these secondary roads and on to the New York State Thruway.
While
the original intent was geared toward restricting trash truck traffic
on these particular routes in the Finger Lakes region, the ban would
apply to all heavy trucks that use these roads.
This ban
would prove detrimental to all trucking operations in the state. That
is why Kendra Adams, the New York State Motor Truck Association
executive director, is urging its members to speak out as well.
“(We) are prepared to do what is necessary to prevent the rule from being enacted,” she told Land Line on Thursday, July 9.
If Paterson signs off on the proposed rule, it would be published on the New York State’s Register, which would then trigger a 45-day public comment period.
“Given this economic climate, this is extra money our members just don’t have right now,” Joyce said.
– By Clarissa Kell-Holland, staff writer Courtesy of LandLine Magazine
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Truck Drivers having their careers ended by false DAC reports.
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As,
a Truck Driver have you ever seen what is on your DAC Report? Do you
even know what a DAC Report is? A DAC Report is to a Driver, the same
as a Credit Report is to somebody trying to get a loan.
DAC, even though it is supposed to be regulated by The Fair Credit Reporting Act, is still an abusive system that too many companies use to get back at a truck driver.
Even
though the truck driver does everything right, by giving his/her two
weeks notice, then taking the truck and trailer to the companies
terminal, also making sure it is clean when turned in will often still
notice a negative mark on their report.
Companies do this often
as a retaliation towards you, the truck driver for leaving their
company. Its almost as if the company is like a child, if you get up
and leave the child will throw a tantrum. Same thing these companies
do, only their tantrum could cost you your career.
Trucking
companies pay a Due each year to DAC in order to place reports on DAC
and also to receive reports from DAC. So, as long as the due has been
paid DAC really doesn't care if what has been put on the report is
legit or not. As long as they have received their money.
The
truck driver has a right to receive one FREE copy of your DAC report
per year, but DAC services uses this for a scam as well. You can send
for your DAC report, then you do not receive it, and when you call DAC
about it they say they have mailed it out, and it is not their problem
you did not receive it. If, you want another copy it will cost you
$9.00 this time.
USIS Commercial Services Division
4500 South 129th East avenue
Suite 200
Tulsa, Oklahoma
74134
Phone# 800-381-0645
If
you see a false report, then you are ALLOWED to dispute this, and the
reporting company has 30 days to respond, if they do not respond then
it is suppose to be removed from your DAC report. But, in most cases it
will not be removed, because DAC is going to site with the company
because the companies pay them money.
You, can read more about this at www.askthetrucker.com Allen goes into this pretty in depth. He also, has a youtube video done nicely on this subject.
We believe this abuse by many trucking companies and the DAC Services
is in violation of The Fair Credit Reporting Act and employee rights.
Help end this DAC reporting abuse PLEASE sign the petition.
See video
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Fail a drug test? Better not be shy
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If you fail a drug test, when it comes time for your retest, you will be watched.
The
Department of Transportation enacted new regulations in 2008 that
mandated the “observed collection” of urine samples collected in return
to duty tests, follow-up tests or when tampering with the sample was
suspected. The regulation was to go into full effect Nov. 1.
BNSF
Railway Co. and nine other groups sued the Department of Transportation
over the new drug testing policy. The cases were consolidated, and the
groups filed a motion for emergency stay pending review to stop
enforcement of the new regulations. The U.S. Court of Appeals for the
D.C. Circuit granted the motion Oct. 31, 2008.
On July 1, the
court ruled against BNSF and the other groups and lifted the stay. The
Federal Motor Carrier Safety Administration will issue a Final Rule
providing a start date for the mandatory direct observation for all
follow-up and return-to-duty tests. Courtesy of LandLine Magazine
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Arizona lawmakers OK bill to authorize tolls, harsher OOS penalties
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The Arizona Legislature has forwarded to the governor a lengthy
transportation bill that includes several provisions of interest to
truckers. Among the most notable provisions is an attempt to bring toll
roads to the state.
Cities and towns throughout the state would have the authority to build, operate and finance the construction of toll roads.
The
provision was tacked onto the transportation bill that received final
approval in the Senate on a 19-8 vote. House lawmakers previously
approved it by a vote of 40-19. The passage cleared the way for the
bill – SB1320 – to move to Gov. Jan Brewer’s desk.
Advocates
for the new tolling authority say collecting fees would relieve some of
the burden on taxpayers. Others insist they aren’t pushing specific
toll projects. They simply want to expand the options available to the
state to get work done.
Truck driver and OOIDA member David
Goss of New River, AZ, isn’t opposed to toll roads but he is concerned
about the state abusing eminent domain laws to take land for projects.
“I
don’t have a problem with toll roads used by local people. If they want
to make a toll road, that’s fine – as long as it’s not on the
interstate and affecting interstate commerce,” Goss told Land Line. “I do have an objection with toll roads being built where they use eminent domain to seize the property.”
Also
included in the bill are provisions that directly address trucking.
Courts would be required to send records of photo radar traffic tickets
to the Arizona Department of Transportation for commercial driver’s
license holders.
Another provision would allow courts to
require CDL holders to attend defensive driving school as part of a
sentence for a moving violation.
Goss said he thinks all truckers would benefit from regular defensive driving courses.
“There
can’t be enough education for truck drivers out here. Just like pilots.
They are always in training. They have (multimillion dollar) aircraft
where we have a $100,000 truck. We still are moving large vehicles with
property,” he said.
Other changes to Arizona law seek to get
tough with those in the trucking industry who don’t heed their
out-of-service orders. First-time offenders would see the length of
time they are prohibited from driving double from 90 to 180 days.
Repeat offenses within 10 years would result in two years off the road.
Currently, violators are prohibited from driving for one year.
For
motor carriers who violate an out-of-service order or permit a driver
to violate an OOS order, the maximum penalty would jump from $11,000 to
$25,000.
Supporters say adoption of the OOS penalties would preserve some of Arizona’s federal highway funding.
To view other legislative activities of interest for Arizona in 2009, click here.
– By Keith Goble, state legislative editor
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Infrastructure spending declines even with stimulus
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Even with federal stimulus spending that put shovels in the ground
on new infrastructure projects, analysts predict an overall decline of
4.3 percent on infrastructure in 2009.
Analysts from IHS
Global Insight stated in a report that they expect a 5.5 percent
decline in highway spending despite a $48 billion infusion to the U.S.
Department of Transportation from the stimulus package passed by
Congress earlier this year. The U.S. DOT had, at last tally, allocated
$16 billion of its stimulus money to specific highway projects in need
of funding.
“This sector is not expected to see positive
year-over-year growth until 2010,” the authors of the report wrote. IHS
Global Insight provides market analysis for freight, transportation,
power, real estate, agriculture and other sectors.
State
budget shortfalls continue to plague the market for infrastructure
construction, according to IHS Global Insight’s construction division.
Analysts
predict a further decline of 1.6 percent for infrastructure in 2010
followed by an anticipated 2.4 percent growth in 2011. The bounce-back
will occur “as tax receipts improve for state governments, and the
federal stimulus package, totaling approximately $120 billion for
infrastructure, is fully implemented,” the authors of the report wrote.
Stimulus
money is being used for more than just roads, with improvements coming
for power grids, water systems, waste disposal and oil refineries and
pipelines.
“With the exception of power, all infrastructure sub-sectors are expected to drop in 2009,” IHS Global Insight wrote.
Other
forms of transportation construction, including high-speed rail and
port renovations, will contract by 10.2 percent, the analysts wrote,
with modest gains expected in 2011.
Click here to read the full report.
– By David Tanner, staff writer Courtesy of LandLine Magazine
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Wisconsin adds new ‘recovery act’ clean diesel grant program
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Trucking companies with offices in Wisconsin can apply for up to
$100,000 each in grants for emissions-cutting equipment upgrades.
The
Wisconsin American Recovery and Reinvestment Clean Diesel Grant Program
announced in June that it will accept applications for equipment
purchases until Aug. 3.
The program will pay for 100 percent
of the cost of exhaust retrofit controls, 50 percent of the cost of
idle-reduction devices, 100 percent of engine emission upgrades, 75
percent of engine repowers, and 25 percent of the cost of “equipment
replacements” on 1998 model year or older equipment.
Grants to replace reefer engines from 1998 or older also are available under the program’s off-road equipment designation.
Applicants
must be either headquartered in or operate a base office in Wisconsin.
If they’re awarded the grants, applicants must pay the minimum match
percentages per equipment in cash and obtain a Dun and Bradstreet
Universal Numbering System number and a registry with Central
Contractor Registration.
More information is available at http://dnr.wi.gov/air/mobile/CleanDieselGP.htm.
Approved in February, the Recovery Act made $1.7 million available to each U.S. state for diesel emissions-reduction programs.
– By Charlie Morasch, staff writer Courtesy of LandLine Magazine
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Ontario ‘PC’ leader has ties to speed-limiter issue
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The Progressive Conservative Party of Ontario has chosen MPP Tim Hudak to take on the Liberal Party in the next election.
Hudak
defeated MPP Frank Klees by a narrow margin of electoral votes during a
runoff for party leadership the final week of June. Candidates and
fellow Members of Provincial Parliament Christine Elliott and Randy
Hillier placed third and fourth respectively. Approximately 40,000
registered members of the party cast ballots in the leadership runoff.
The
Progressive Conservatives, also known as the PCs or Tories, have
nothing to lose in the 2011 provincial election. Back in 2003, the
Liberals abruptly ended 13 years of PC rule and won a majority
government.
That majority gave the Liberals the power to pass
a speed-limiter mandate for heavy-duty trucks and to create a pilot
program allowing certain mega fleets to put longer combination vehicles
on the highways. Also brewing is a carbon “cap and trade” system that
would tax a number of industries.
PC Party leaders regrouped
and chose Hudak as their new leader following the resignation of former
leader MPP John Tory. Hudak will face Ontario Premier and Liberal Party
Leader Dalton McGuinty in the 2011 provincial election.
Hudak
did not directly address the issue of speed limiters during the party
leadership campaign, but he has a history with the issue. It remains
unclear where he stands at the present time.
When the McGuinty government put its speed-limiter agenda forward, Hudak issued a statement
criticizing the premier for doing a “U-turn” on the issue. Previous to
the Liberal push, the Progressive Conservative Party attempted to pass
a speed-limiter bill from the back benches but the Liberals let the
measure die in committee.
“This plan didn’t even get support
from the Minister’s own parliamentary assistant when it was brought
forward over a year ago,” Hudak said in the statement dated July 5,
2007. “Now that we’re heading into an election, the McGuinty Liberals
have pulled a U-turn and said they’re going to have speed limiters
installed on trucks.”
Recent calls by Land Line to Hudak’s office have gone unreturned.
Two of Hudak’s opponents in the leadership race, Klees and Hillier, told Land Line
during the campaign that they would work to overturn the government’s
speed-limiter mandate if elected. Hillier had also vowed to increase
speed limits on Ontario’s 400 series highways to the equivalent of 70
mph.
– By David Tanner, staff writer Courtesy of LandLine Magazine
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Illinois capital bill secures $21 billion for transportation
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Illinois Gov. Pat Quinn signed into law Monday, July 13, a $31
billion capital bill that routes two-thirds of the money to
transportation projects.
The state’s first construction
spending plan in more than a decade is expected to create thousands of
jobs and to help rebuild the state’s crumbling infrastructure. The work
will be paid for through new and higher taxes and fees and a vast
expansion of legalized gambling.
Quinn said the massive
funding bill will allow the state to keep up with demand for new or
rebuilt highways, bridges, schools and public transportation systems.
He also said it will create and retain more than 439,000 jobs during
the next six years.
The bill allots $14.3 billion for roads
and bridges through 2015, while another $7 billion is pegged for other
transportation projects such as high-speed rail and Chicago-area
transit. Education is slated to receive $5.1 billion.
Of the
amount dedicated to roads and bridges, nearly $10 billion will be used
for repairs while $4 billion will be spent on new construction. Local
projects – work done by county road departments and other agencies –
will get $500 million.
Illinois will use bonds to pay for the
public works program. In effect, the state will borrow money and repay
it over the next two or three decades. Revenue to repay the debt will
be created by charging more for licenses and registrations. The tax on
alcohol also is increasing. And sales tax will be applied on more
items, including sweetened tea.
In addition, it will be
easier to gamble throughout the state. Video poker machines now can be
added in taverns, restaurants and truck stops. Also, betting will be
permitted over the Internet on the state lottery.
Critics of
this initiative are upset the state is using video gambling to lure
more citizens to lose money during a time of high unemployment.
Supporters say that towns and cities can choose to keep video gambling
illegal in their jurisdictions.
To view other legislative activities of interest for Illinois in 2009, click here.
– By Keith Goble, state legislative editor Courtesy of LandLine Magazine
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Flying J, Pilot to announce merger of travel center locations today
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KNOXVILLE, Tenn. and OGDEN, Utah — Pilot Travel Centers
and Flying J today will announce an agreement to merge the two
companies’ travel centers into a single operation.
A spokesperson for Flying J confirmed the announcement was scheduled for today.
The Trucker first learned of the pending agreement late Monday.
A spokesperson for Pilot would neither confirm nor deny the merger.
Other Flying J entities are not involved, sources have told The Trucker.
The merger would seemingly free up cash that could be used to
help Flying J in its effort to reorganize certain aspects of its
company under Chapter 11 of the U.S. Bankruptcy Code.
Flying J announced in December that Flying J Inc. and its Big
West refining and Longhorn Pipeline subsidiaries filed voluntary
petitions to reorganize under Chapter 11.
The scope of the filing is limited to those operations only,
Flying J officials said, noting that the filing did not apply to other
business units or affiliates, or the company's Canadian operations,
including truck stop locations.
Last month, Flying J announced it was closing restaurants at seven of its locations in the U.S. in a cost cutting move.
“The reality of our country’s struggling economy requires
those entrusted with the immediate and long term welfare of our company
to prudently evaluate measures that will best sustain us through
challenging times,” Virginia Parker, director of marketing, said at the
time the closings were announced. “Like any successful business, we
regularly review the long-term potential of each property and evaluate
the performance required for each location to continue operating.”
Parker said after careful evaluation, Flying J recently made
the decision to close the following restaurant locations: Commerce, Ga;
Bessemer, Ala., Lubbock, Texas; Cokeville, Wyo., Evanston, Wyo.;
Payson, Utah, and Casper, Wyo.
She said the Flying J stores at those locations would continue to provide hot and cold deli items.
Whether those seven restaurants remain open under Pilot management is not known.
Pilot traditionally has not operated full-service restaurants
at its locations, preferring to lease space to established food vendors
such as Wendy's, Subway, and Arby's among many others.
However, published reports have indicated that some of the
Pilot locations that are being remodeled will feature a Denny's
restaurant.
Also not known until the formal announcement is made is the status of Comdata at Flying J locations.
Flying J presently does not accept Comdata cards.
Source: The Trucker
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SC serial killer terrorized community, worried trucking families
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In Ohio to drop a load of food, Bradley Butler paused to take a phone call from home.
On
the other end, Butler’s wife told him police were saying a serial
killer had killed at least two people in the family’s hometown of
Gaffney, SC, and police were asking residents to lock their doors.
Victims
included a peach farmer and two teachers. Two of the slayings occurred
only a couple of miles from the Butler family’s front door.
The news worried Butler, particularly because the OOIDA member wouldn’t make it home for another four days.
“They were locking doors, and she didn’t do any outside work,” Butler said Thursday.
From
June 27 until he was shot and killed on July 6, Patrick Tracy Burris
allegedly killed five people in Gaffney and terrorized the community
before being shot and killed on Monday, July 6. As investigators
grapple with motive, and reporters ask authorities why Burris wasn’t
incarcerated, trucking families recounted a tense, emotional 10 days
spent mostly away from their families.
On June 27, Kline
Cash, 63, was killed. On July 1, Hazel Linder and her daughter, Gena
Linder Parker, 50, were bound and shot in Linder’s home. That crime
scene is about two miles from the Butler residence.
Butler’s wife was a classmate of Parker’s.
“It was all very tragic,” Butler said quietly.
Butler,
a former Gaffney police sergeant and shift supervisor, called former
co-workers at the station for insight as investigators grappled to find
the killer.
Their information wasn’t encouraging.
“They
basically didn’t have anything to go on,” Butler said. “They had a
description and a sketch of a suspect, but that was basically it. No
name, motive or any idea of where he was living at the time.
Butler’s
college-age son and daughter stayed around the house, mostly inside,
during the manhunt. When Butler had to leave town again after two days
at home, he said he was more at ease knowing they were staying with his
wife.
“I felt fairly secure,” Butler said. “We have, of course, several guns in the house.”
OOIDA member John Martin also learned about the killings from relatives.
With
two grown children and seven grandchildren in Gaffney, Martin said he
worried the entire first week after the first murder. Martin was making
his regular run between Tennessee and Florida during that week, and
didn’t go home until the July 4 weekend.
His mother moved in
with relatives, and Martin got reports about each subsequent killing in
phone calls from her and other family members.
“My biggest worry was for my family,” said Martin, who’s lived in Gaffney all his life.
Driving
around town after coming home, Martin said Gaffney had an eerie,
ghost-town feel. Parks were mostly empty, doors were locked, and some
fireworks shows for Independence Day were canceled.
“Everyone
was just real nervous,” Martin said. “Everybody was keeping their doors
shut. You wouldn’t have wanted to be a door-to-door salesman; I’ll say
that.”
Since Monday, when Gaffney residents and the world
learned police shot and killed Patrick Tracy Burris, Martin said people
have begun working their way back to normal.
A previous
strangler in the area was famous in the 1960s, but Martin said the
recent killings were particularly chilling because they happened in
broad daylight, including some very public locations. Stephen Tyler and
his daughter Abby, 15, were shot and killed in their family’s furniture
store just blocks from county sheriff’s offices on July 2.
Several media reports, including The Associated Press
say Burris had a long rap sheet and apparently abused drugs before
going on the rampage. Some law enforcement officials were blaming the
judicial system for not incarcerating him sooner for parole violations.
“I’m
just glad it’s over with,” Martin said. “I hate it for (Burris’) family
that he had to be killed – but this needed to come to an end for
everybody else.”
– By Charlie Morasch, staff writer Courtesy of LandLine Magazine
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Trucking companies and owner operators are dropping like flies in the
winter. Estimates of upwards of 90,000 trucks have been parked since the first
of the year 2008, making used truck lots expand into Iowa cornfield sized
parking lots to park the used trucks that have been repossessed and turned in.
We hear of another company closing and the reason for it is being stated over
and over as the unavailability of operating credit. Didn’t these company
officials learn basic accounting and business skills?
Most businesses start out with some debt to be established, that makes
sense, but if a company has been in business for 30 years, as some who have gone
under have been, then why are they still in such debt? Where did the profits
go?
You have to spend money to make money as my old accounting teacher used to
say and some of these companies sure spent money like it grew on trees. Huge
company offices with all the bells and whistles and multitudes of office staff,
the officers of the company driving Jags and Mercedes Benz and some owning
private jets might account for where some of the profits went.
The current economy didn’t just happen over night, perceptive people have
been talking about the approaching downward turn for the last seven or eight
years. The companies that have failed didn’t listen or pay attention to the
financial analysts closely enough.
Back before fuel prices skyrocketed, companies expanded quickly and cut
rates to acquire freight from other carriers, getting into the ‘quantity, not
quality’ mindset, hauling freight for too cheap of rates to sustain the company
over a period of time. As Americans across the board have done, trucking
companies ended up having to depend on credit to get and maintain equipment and
operate on a daily basis.
This expansion also created a ‘driver shortage’ making companies have to
hire just warm bodies to sit in the seats of the trucks and pay higher wages to
get them instead of hiring quality drivers. These meat in the seat drivers cause
more wrecks, service failures and higher insurance costs. The companies, who
over equipped so they could offer same day pick up service, also ended up with
high payment equipment sitting idle not making an income to offset the payments
when freight fell off. It all combined to make a recipe for disaster.
As many do, some trucking companies hid their heads in the sand and hoped
that the initial freight slumps due to outsourcing of manufacturing and loss of
consumer buying was a short-term problem. They continued with business as usual,
buying more equipment as the truck manufacturers offered better deals with their
own slowing sales, and kept cutting freight rates to keep their trucks moving.
They did not take steps to cut back their out-going cash and increase the inflow
by cutting back on spending and demanding higher rates.
The failure of some trucking companies is indicative of some of the
problems inherent in the industry. Brokers do not pay freight bills for 90-120
days in some cases causing a trucking company to have to rely on credit for
operating expenses. Some brokers never pay, instead closing their doors and
stealing off like the thieves they are, leaving carriers to fight over the
paltry $10,000 bond required for brokers to put up to do business. Some carriers
resort to dealing with factoring companies who will buy their invoices giving
the carrier operating money, but costing them more of the slim profits allowed
in current freight rates to pay for the service. All of these factors added
together cause a company to shut their doors.
Where should the buck stop in assigning blame for a trucking company going
out of business? Right in the company’s main office, Bad business decisions, not
paying attention to current or prospective economic trends and being too
optimistic are the cause of a company’s downfall, not just the unavailability of
credit. If they had taking care of business properly, they would not have needed
so much credit to stay afloat and possibly would still be in business.
Ya’ll be safe!
By Sandy Long
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STWA's ELEKTRA(TM) in Use at California-Based Trucking Company
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2 Early Prototypes Running Problem-Free for Over 12 Months on Cummins 450HP Turbo Diesel Engines
Save the
World Air, Inc. (OTCBB: ZERO), an innovative pioneer in the clean
technology industry focused on energy efficiency and air quality issues,
has reported that two of its ELEKTRA early prototype units were installed
on two over-the-road diesel trucks, based out of Stockton, CA. The units
have been in operation for over 12 months with no sign of adverse effects
on the subject vehicles.
The companies utilizing the ELEKTRA are operating 2007 Peterbuilt model
'379' trucks with Cummins 450HP turbo diesel engines. The printed fuel
flow is "273mm(3)/stroke," and the fuel line size (feed) is -10AN. The
chassis weight of these 2 vehicles is reported at 15081 lbs.
"Although these two units are early prototypes of the ELEKTRA, we're very
pleased with the feedback received so far," commented Mr. Cecil Bond Kyte,
Chairman and CEO of Save The World Air, Inc. "The units were not installed
to gauge mileage improvements or measure anything other than how the units
interacted with the vehicles power plant. We are happy to report that so
far, the two ELEKTRA units have been running continually with no leakage,
hindrance of perceptible performance or damage to the diesel engines or
fuel system of the trucks."
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Walcott Truckers’ Jamboree Kicks Off Thursday
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The 30th Annual Walcott Truckers’ Jamboree in Walcott, IA, begins Thursday, July 9, and continues through Friday, July 10.
The
first Jamboree was held as a ‘thank you’ from Bill Moon to his Iowa 80
truck stop customers. It attracted a few hundred drivers then, but
recent attendance has reached 30,000.
Country singer,
songwriter Aaron Tippin will perform at the show, which is also a
celebration of Iowa 80’s 45th anniversary. Tippin is a former truck
driver and a Life Member of OOIDA.
Other happenings include
an 8-foot long truck cake big enough to feed 2,000 people, antique
trucks, a pork chop cookout, fireworks and a pet contest.
For complete details, click here.
– By Kerry Evans-Spillman, Land Line staff Courtesy of LandLine Magazine
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Infrastructure spending declines even with stimulus
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Even with federal stimulus spending that put shovels in the ground
on new infrastructure projects, analysts predict an overall decline of
4.3 percent on infrastructure in 2009.
Analysts from IHS
Global Insight stated in a report that they expect a 5.5 percent
decline in highway spending despite a $48 billion infusion to the U.S.
Department of Transportation from the stimulus package passed by
Congress earlier this year. The U.S. DOT had, at last tally, allocated
$16 billion of its stimulus money to specific highway projects in need
of funding.
“This sector is not expected to see positive
year-over-year growth until 2010,” the authors of the report wrote. IHS
Global Insight provides market analysis for freight, transportation,
power, real estate, agriculture and other sectors.
State
budget shortfalls continue to plague the market for infrastructure
construction, according to IHS Global Insight’s construction division.
Analysts
predict a further decline of 1.6 percent for infrastructure in 2010
followed by an anticipated 2.4 percent growth in 2011. The bounce-back
will occur “as tax receipts improve for state governments, and the
federal stimulus package, totaling approximately $120 billion for
infrastructure, is fully implemented,” the authors of the report wrote.
Stimulus
money is being used for more than just roads, with improvements coming
for power grids, water systems, waste disposal and oil refineries and
pipelines.
“With the exception of power, all infrastructure sub-sectors are expected to drop in 2009,” IHS Global Insight wrote.
Other
forms of transportation construction, including high-speed rail and
port renovations, will contract by 10.2 percent, the analysts wrote,
with modest gains expected in 2011.
Click here to read the full report.
– By David Tanner, staff writer Courtesy of LandLine Magazine
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EXCLUSIVE: Seeking a SBA loan? Hope you aren’t in a hurry
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Before the economic “tsunami,” as OOIDA member Russ Iund refers to
the recession that has crippled his business, he was living the
American dream.
Iund’s small flatbed trucking company in
Chehalis, WA, was doing well. Work was plentiful, and over the years he
had managed to build up his fleet to 12 trucks – with all but one paid
for.
But then diesel hit nearly $5 per gallon in July 2008
and his fuel bills were running him nearly $10,000 a day to keep all of
his trucks moving, even with the 175-gallon-per-day fueling limit he
had to impose on his drivers. Unable to keep up with the
$50,000-per-week fuel bills for long, he was forced to lay off some of
his drivers.
A year later, Iund said while he has seen a
“spark” in the past few weeks that business is coming back, it may be
too late to save his small trucking company. That’s because the renewal
license fees are due on his fleet, which is down to five trucks, and he
doesn’t have the money to pay the approximately $12,500 that he owes to
keep them going. Read more
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Florida truck owners eligible for APU grants
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Truck owners from Florida have to move fast if they want in on an
APU rebate program designed to help truckers comply with the state’s
new idling regulation.
Owners of Class 8 on-road commercial
diesel trucks model year 2006 and older can apply for up to three
$1,500 rebates for APUs purchased and installed in 2009 through the
Florida Clean Diesel Rebate Program.
The grants are available through the Florida Department of Environmental Protection, which has $300,000 total for the program.
“Since
funding for this program is limited, rebates will be awarded on a
first-come first-serve basis, and continue while they’re still
available,” a statement from the Florida DEP said.
In
December, Florida will begin enforcing its new ban on truck idling for
drivers who aren’t in their sleeper berth. The sleeper berth exemption
expires in 2013.
For more information and to apply, click here. OOIDA members can also call the Association at 800-444-5791.
– By Charlie Morasch, staff writer Courtesy of LandLine Magazine
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Price-gouging protections approved in Louisiana
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A new law in Louisiana is intended to provide additional protections
for consumers from being gouged at the fuel pump. It takes effect Aug.
15.
The National Conference of State Legislatures reports
nearly 30 states have some type of price-gouging ban with still others
pursuing their own rules. The laws in many of those states are
triggered by emergency declarations.
Louisiana currently
imposes civil fines on merchants who overcharge for goods and services,
including fuel, during or in the wake of a declared emergency. The rule
allows the state’s attorney general to investigate price-gouging
complaints at the retail level.
Gov. Bobby Jindal signed a bill into law June 29 to extend the price-gouging ban to include refineries and other wholesalers.
Sen.
David Heitmeier, D-New Orleans, said applying the price-gouging ban
solely to retailers proved problematic around the time of Hurricanes
Gustav and Ike. While most of the industry “behaved well,” Heitmeier
said some wholesalers imposed higher prices on retailers. As a result,
those retailers were forced to pass on the increases to customers.
Existing
Louisiana law doesn’t cover those actions under its price-gouging
protections. The new law – SB272 – closes that loophole.
To view other legislative activities of interest for Louisiana in 2009, click here.
– By Keith Goble, state legislative editor Courtesy of LandLine Magazine
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