October 5, 2015:  MCM Weekly Newsletter

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Oct 12          Share The Road, Billings
                     Senior High, 4:00 p.m. - 5:00 p.m.

Oct 13          Share The Road, Billings
                     Skyview High, 4:00 p.m. - 5:00 p.m.

Oct 14           Billings Chapter Safety Meeting
                      Location:  H.O.T. Express, 11:30 a.m. - 1:00 p.m.
                      Speaker:  Jeff Steeger
                      Topic:  Load Securement

Oct 15           Missoula Chapter Safety Meeting
                      12:00 p.m. - 1:00 p.m.
                      Location, Speaker & Topic TBA

Oct 19            Share The Road, Billings
                       West High, 4:00 p.m. - 5:00 p.m.

Oct 24             Party in Pink Fundraiser
                        Raymond Corcoran Trucking, Inc.
                        11:00 a.m. - 1:00 p.m.

Nov 11            Billings Chapter Safety Meeting
                        11:30 a.m. - 1:00 p.m.
                        Location, Speaker & Topic TBA

Nov 19            Missoula Chapter Safety Meeting
                        12:00 p.m. -1:00 pm.
                        Location, Speaker & Topic TBA

Nov 16-20       SafetyFestMT:  Billings
                        Billings Hotel & Convention Center
                        1223 Mullowney Lane, Billings, MT
Commercial Vehicle Safety Alliance Puts Out of Service Criteria On-Line
Thanks to some lobbying by MCM and the Montana Department of Transportation CVSA has agreed to put their annual changes to Out of Service Criteria On-Line.

The link is below.
This is an important step in the process as many states adopt this as a rule, but the criteria was never available to look at to be able to comment on it.
Thanks to CVSA and MDT for their help in this process.
Spook Stang
Executive Vice President
Motor Carriers of Montana
Jake Brake Use
Recently MCM has received a number of calls from around Montana in regards to Jake Brakes. Many of these calls are to complain about those trucks that do not seem to have mufflers on their vehicles.

I would like to remind all of us involved in the trucking industry of HB 237 that passed the Legislature in 2003 at the request of the trucking community. HB 237 prohibits the use of engine brakes without a muffler. This legislation was introduced and passed to prevent the passage of legislation that would have prohibited the use of Jake Brakes altogether. This legislation was important to the industry, as we all know that Jake Brakes or engine brakes are an integral part of our braking system and an important part of our safety equipment.

In respect to those who live near or on many of our rural roads, we would hope that you would not operate your engine brake if it is not muffled. This will help so that we do not get faced with legislation that would prohibit them altogether.

You should also be aware that MCS officers can stop you at any time to check your system. Should you not have an operating muffler in place they can fine you. We would rather see you spend that money on fixing the problem.

Please remind your drivers, your subcontractors, owner operators and others who may be working for you of this stipulation.

Thanks for your cooperation.

Spook Stang
Executive Vice President
Motor Carriers of Montana
Driver Shortage A 'Primary Concern' to 3PLs & Shippers
Even as the entire logistics industry must deal with an "unprecedented" labor deficit, "the driver shortage remains a primary concern" for third-party logistics providers and the shippers they serve, per the 2016 Third-Party Logistics (3PL) Study.

The results were released in San Diego on Sept. 28 at  a conference of the Council of Supply Chain Management Professionals..

Sponsored by
Penske Logistics, the 22th annual report is based on responses from more than 260 shippers and logistics-service providers based in North America, Europe, the Asia-Pacific region and Latin America as well as a survey of the CEOs of 30 of the world's largest 3PLs.

It found that over 80 percent of the firms surveyed were profitable in 2014. North America and Asia-Pacific CEOs forecasted three-year revenue growth averages for their companies of 7.86 percent and 11.50 percent, respectively, while European CEOs forecasted 5.33 percent growth over the same period.

The report extensively details numerous challenge facing 3PLs, including tightening capacity as well as the impact of mergers and acquisitions, increasing regulations and "industry innovations" that are "altering competition, 3PL service offerings and shipper-3PL relationships."

But it is the truck driver shortage that is clearly seen as the key factor driving the freight capacity crunch in the U.S.

The report also expects that cross-training will "play a greater role within the workforce as will workforce agility in which employers focus on hiring employees who are able to learn and adapt to shifting needs. Agility- a mindset and a behavior in which businesses and employees embrace unfamiliar situations-will allow companies to address the labor shortage and drive growth in new situations."
Roadcheck Out-Of-Service Rates Dropped
Out-of-service rates for both trucks, buses and drivers dropped to historic lows for inspections conducted during Roadcheck 2015, the Commercial Vehicle Safety Alliance announced Sept. 29.

The Level I inspection out-of-service rate for both targeted vehicles declined to 21.6% from 23% last year. For drivers, the decrease was to 3.6% from 4% in 2014.

Overall, the vehicle out-of-service rate dropped to 17.5% from 18.7% in 2014, and the overall driver out-of-service rate this year matched the 4.8% rate in 2014.

The Level I inspection out-of-service rate has declined markedly since the event was first held in 1991, when such inspections resulted in 34.8% of vehicles and 5.6% of drivers being placed out of service.   

Almost two of every three, or about 45,000, of the more than 69,000 inspections conducted during CVSA's annual 72-hour enforcement and safety outreach event from June 2 to June 4 were Level I, the most rigorous checks made by law-enforcement, CVSA said.

"I would say the Level I inspection group is probably the best comparable measure, because Level I includes looking at brake systems that you wouldn't see in the other inspections," said William Schaefer, CVSA's  director of vehicle programs.

In general, the selection process has improved, so it seems logical that the Level I out-of-service rate could be expected to be higher, Schaefer said.

"So I think that carriers are doing a better job at maintaining their vehicles over the past two decades," he added.

There were 777 seat belt violations issued during this year's stepped-up enforcement, down from 825 last year, CVSA said.
Carriers undergoing Level I inspections during the event were chosen by inspectors who keyed off such indicators as Compliance, Safety Accountability scores and obvious violations observed as trucks passed through scales or traveled down highways.

This year's enforcement emphasis was on proper load securement. Inspectors issued 2,439 violations for load securement during Roadcheck 2015.

The most frequent number of load securement violations were for failure to prevent shifting or loss of load; failure to secure such truck equipment as tarps, dunnage, doors, tailgates and spare tires; damaged tie downs that most typically included unacceptable wear on chain or cuts and tears on web straps; insufficient tie-downs; and loose tie-downs.

Load securement enforcement is a normal part of Level I Inspections because securing cargo and equipment are vital to safe operations, CVSA said.

"CVSA's International Roadcheck is the largest targeted enforcement program on commercial motor vehicles in the world, with nearly 17 trucks or buses inspected, on average, every minute, over three days," CVSA acting Executive Director Collin Mooney said. "However, we must remember that the work done over that 72-hour period represents only a fraction of what's accomplished every day by approximately 13,000 CVSA-certified local, state, provincial, territorial and federal inspectors at hundreds of inspection locations across North America."

Inspectors in the United States and Canada took part in this year's event.
ATRI Research Finds Industry's Operational Costs on the Rise Again
The American Transportation Research Institute (ATRI) today released the findings of its 2015 update to An Analysis of the Operational Costs of Trucking. Using financial data provided directly by motor carriers throughout the country, this research documents and analyzes trucking costs from 2008 through 2014 providing motor carriers with a high level benchmarking tool, and government agencies with a baseline for future transportation infrastructure improvement analyses.
The average marginal cost per mile in 2014 was $1.70, an increase from the $1.68 found in 2013. Despite falling fuel prices, the rise in average operating costs in 2014 is attributed to an increase in equipment purchases, as well as driver wage increases driven by the ongoing driver shortage and the need to retain the industry's most experienced professional drivers.
"ATRI's release of its annual Operational Costs of Trucking research is among our association members most eagerly anticipated. They understand and appreciate the value of ATRI's operational cost analysis to their own fleet benchmarking and as such, are always willing participants when ATRI issues its call for cost data," said Brenda Neville, President and CEO of the Iowa Motor Truck Association and a member of ATRI's Research Advisory Committee.
Since its original publication in 2008, ATRI has received nearly 10,000 requests for its Operational Costs of Trucking report, which continues to be among the most popular of ATRI's research studies. In addition to average costs per mile, ATRI's report documents average costs per hour, cost breakouts by industry sector, and operating cost comparisons by region of operations.
A copy of this report is available from ATRI at www.atri-online.org.
ATRI is the trucking industry's 501(c)(3) not-for-profit research organization. It is engaged in critical research relating to freight transportation's essential role in maintaining a safe, secure and efficient transportation system. 
Federal State Trucking Associations
When you are a member of the Motor Carriers of Montana, you are part of a federation that includes 50 state trucking associations and industry related conferences and councils.  Altogether, these organizations make up the federation of the American Trucking Associations, which traces its origins to a meeting in Montana in 1933 between the American Highway Freight Association and the Federation Trucking Associations of America.  The Federation is the largest national trade association for the trucking industry.  For your convenience, here is a list of association and affiliates. 
Party in Pink Fundraiser