Trucking Companies Volunteer Resources for Wreaths Across America Day

After a US Senate Resolution declaring December 10, 2011 “Wreaths Across America Day,” 43 trucking companies volunteered to deliver 325,000 Maine-made wreaths to state and national cemeteries across the country. The wreaths, which have been donated by Morrill Worcester of Worcester Wreath Company in Harrington annually for the past 20 years, are placed at the tombstones of veterans as a symbol of gratitude and respect for their service to our country.

Thanks to 88 trucks manned by volunteer drivers, Wreaths Across America Day 2011 was a success, and hand-made wreaths were delivered to 740 cemeteries across the United States. A special convoy of 14 trucks delivered 90,000 wreaths to the Arlington National Cemetery.

To learn more about Wreaths Across America Day, visit the following websites:

http://www.wreathsacrossamerica.org/

http://www.truckline.com/pages/article.aspx?id=967%2F8e1c7279-ed27-4c03-b189-ceeee26bbb12

Peterson Trucks Now Offers Used Commercial Vehicles

Peterson Trucks now has a selection of used vehicles for sale. Our used fleet includes an array of International DuraStar 4300/reefer units, as well as several Peterbilt sleepers and Freightliners with day cabs.

To view our selection of used trucks, visit:
http://www.petersontrucks.com/new-used/used-vehicle-inventory

ATA Truck Tonnage Index Continues to Rise

The American Trucking Association (ATA) reported last week that its advance seasonally adjusted For-Hire Truck Tonnage Index increased during the month of October. The 0.5% increase follows a 1.5% increase in September over the previous month.

The ATA’s Truck Tonnage index is often used as a barometer of the trucking industry’s economic health as a whole, and its continuous growth indicates that the industry is recovering from the economic downturn at a faster rate than the GDP. According to the ATA’s chief economist, Bop Costello: “over the last two months, tonnage is up nearly 2% and is just shy of the recent high in January of this year.”

Not only is this good for the trucking industry, it suggests that the country’s economy as a whole is slowly recovering rather than slipping back into a recession, as a freight tonnage increase results from an increase in the production of goods.

The ATA predicts that growth will slow next year, but that the industrial and trucking industries will continue to recover at a faster rate than the GDP.

To read more, visit:

http://www.truckline.com/pages/article.aspx?id=957%2F8e1c7279-ed27-4c03-b189-ceeee26bbb12

Attend the Idealease Safety Seminar at Peterson

The Idealease Safety Seminar is open to customers of Peterson. The seminar will cover the changes to the On-Highway regulations affecting the Trucking Industry. Seating is limited, please RSVP to pabackers@petersontrucks.com.

Time: April 19, 2012, 8am to 5pm
Location: Peterson University
Street: 2700 Teagarden Street
City/Town: San Leandro, CA

Vehicle Shortage Could Limit Growth for Trucking Operations

While the economy seems to be turning around for the trucking industry (most sources estimate that tonnage is again approaching the same levels as those seen in 2006), future growth may be limited for many trucking operations as the industry rebounds from economic crisis that began in 2007. Reports of driver shortages from organizations such as the American Trucking Association have been making headlines for months, but now industry economists warn that equipment shortages may accompany personnel shortages as shipping demands increase, according to an article published in American Shipper.

During the economic downturn, demand for new trucks dropped significantly. Operations needing to adjust for dwindling shipping demands reduced fleet sizes, which lead to more used trucks on the market for those looking to buy; the replacement of old equipment with new was indefinitely postponed by many operations; countless small carriers went out of business; and more stringent emissions and maintenance regulations increased costs of operation. While demand for new trucks has increased since the worst of the downturn, manufacturers are still hesitant to increase production due to the unpredictability of the current market.

At the present time, industry economists estimate that supply and demand for new commercial vehicles are at an equilibrium; however, any improvement in the economy could quickly lead to a truck shortage.

To read more on this subject, visit:

http://americanshipper.com/Main/News/Where_did_all_the_trucks_go_47394.aspx

Tips for Safe Driving on Winter Roads

If the recent snow storms in Connecticut are any indication, winter weather will be heading our way before too long. Idealease provides some useful guidelines for keeping the roads safe during the cold months:

1. Proper tire care is vital for safe driving in icy conditions. Tires should always be properly inflated with ample tread, and this is especially true in the winter. Steering can be tricky when there’s ice on the road, and well-maintained tires on the steer axel add invaluable control. Idealease also recommends traction tires on the drive axels.

2. Driving a rig with its lights on during the day increases its visibility to motorists.

3. Cruise control should never be used on snowy or icy roads.

4. Driving too fast is the number one cause of winter accidents, so take it slow.

5. Don’t “pump” ABS brakes.

For more winter driving safety tips, visit:

http://www.idealease.com/safetycompliance/10_21_2011.pdf.

Peterson Idealease is Open for Business

In September, Peterson Trucks officially opened its lease and rental branch, Peterson Idealease. By partnering with Idealease, Peterson benefits from the company’s extensive experience in providing full-service lease and rental contracts to customers throughout North America.

Idealease, the 3^rd largest leasing company behind Ryder and Penske, was founded nearly 30 years ago as a dealer-owned leasing organization, and it continues to provide professional management, purchasing contract services and national accounts support in the US, Canada, and Mexico. With full-service lease and rental programs, Idealease offers safety training, emergency breakdown service, quick vehicle replacement, and routine maintenance services to its customers, presenting a one-stop-shop for fleets opting for lease or rental programs.

Combining Peterson’s decades of experience in truck and engine repair with Idealease’s comprehensive programs makes Peterson Idealease an exceptional provider of lease and rental vehicles. Peterson Trucks is excited to see the development of its newest branch.

To learn more about Peterson Idealease’s services, visit:

www.petersontrucks.com or www.idealease.com.

EPA Approves CA Particle Pollution Regulations

 The U.S. EPA has approved plans to reduce particle pollution in the San Joaquin Valley and along the Southern California coast. Originally outlined in a California Interstate Transport State Implementation Plan (SIP), these new regulations will require the state to reduce particle pollution to levels described in the SIP by 2015.

The EPA’s decision is largely a response to a California Air Resources Board study attributing an annual 9,200 premature deaths statewide to microscopic particles caused by diesel emissions. These particles are small enough to travel deep into the lungs when inhaled, and they can aggravate chronic conditions such as asthma and emphysema.

New emissions requirements will affect mobile diesel equipment used in a variety of industries, including trucking, shipping, and constructions. Operations that travel in the San Joaquin Valley or in Southern California can expect aggressive state regulatory measures in the near future.

For more information, visit the U.S. EPA’s website at:

http://www.epa.gov/region9/air/actions/ca.html

Driver Churn Reaches 79% According to ATA

The American Trucking Association (ATA) reported yesterday that the turnover rate for on-road drivers rose to an astonishing 79% for the second quarter. According to the ATA, this marks the third straight quarter of churn increase.

This means that, even in a today’s economic landscape, fleets are competing over a shrinking number of qualified drivers. If turnover rate remains high, driver shortages will become an even larger problem as the economy recovers. “The slowdown of the economic recovery has affected the turnover rate, but if the economy continues to improve we’ll see further tightening in the driver market and a renewed risk of a severe driver shortage,” explained Bob Costello, ATA chief economist in an ATA press release.

To read more on increasing driver churn rates, visit:

http://www.truckline.com/pages/article.aspx?id=937%2F%7b8E1C7279-ED27-4C03-B189-CEEEE26BBB12%7d

Crude Oil Prices Up 5% in Response to Europe's Plans for Debt Management

An optimistic outlook on the ability of European leaders to contain the European debt crisis is responsible for a significant surge in crude oil prices today. Greece winning the release of bailout loans from the International Monetary Fund and the European Union, allowing the country to avoid its impending default, is largely responsible for the investor confidence that caused crude oil to jump to $84.45 a barrel in New York. This 5% increase is the largest gain since May 9 according to Bloomberg Businessweek.

Crude oil prices have reached startling lows this year, and today’s increase indicates hopes that the financial landscape is improving and that energy demand will rise with the economy; however, economists warn that any failures on the part of European leaders to manage their debt as promised could again cause crude oil prices to plummet.

Natural Gas Could Become an Economically Viable Alternative to Diesel for Commercial Fleets

Due to limitations in infrastructure and high premiums for natural gas engines, the idea of integrating natural gas vehicles (NGVs) into commercial truck fleets was originally met with skepticism by many. In today’s economic climate, however, it seems that the skyrocketing demand for cheaper fuel sources is pushing the development of viable alternatives to diesel vehicles, and economically advantageous NGVs are appearing in the marketplace, particularly for regional and refuse applications.

In the past, resistance to NGVs in commercial fleets has been the result of high costs for natural gas engine production and a lack of filling stations that are equipped to supply the fuel to run those engines. With the premiums for spark-ignited compressed natural gas (CNG) and liquefied natural gas (LNG) technology diminishing—and the price gap between natural gas and diesel widening—many NGVs are now financially viable for a number of fleets.

Because one of the major drawbacks to compressed natural gas is its relatively low energy density (approximately 25% that of diesel fuel), attempts to integrate CNS vehicles into long haul operations is not feasible; however, for regional fleets with trucks that return to a single location daily, the cost savings associated with using natural gas as fuel can more than make up for an NGV’s inefficiency. For refuse operations that convert landfill gas into fuel, cost savings can be dramatically increased.

While liquefied natural gas has a greater energy density than CNG (approximately 40% that of diesel), the lack of filling stations that dispense LNG still make the fuel an unacceptable alterative to diesel for long hauls. However, efforts are underway to develop LNG infrastructure; Shell is currently working to boost LNG production and distribution in North America.

To learn more, read FleetOwner’s article “Economics Driving Natural Gas Truck Market” at http://fleetowner.com/green/archive/economics-natural-gas-truck-market-0908/.

Idealease Safety Bulletin: Drivers with Compensated Outside Work Can Affect Your Compliance with FMCSA Regulations and Liability Exposure

Do any of your drivers have a part-time job outside of your company? If you don’t know, you should find out. Motor carriers that unwittingly employ drivers that receive compensation from other commercial vehicle outfits can also be inadvertently violating hours of service regulations. Too many motor carriers only become aware of this dangerous situation when an onsite compliance review or accident occurs, and, by that time, the financial repercussions can be significant.

Any compensated commercial vehicle operation is considered in a driver’s hours of service by FMCSA officials, regardless of whether those hours are logged with one motor carrier or spread between two or more carriers. This means that fleet owners and managers who unknowingly employ drivers with other jobs are still liable for hours of service violations during compliance reviews, which can result in fines. Moreover, motor carriers will be held liable for any accidents that occur involving their vehicles under the operation of drivers that are violating hours of service regulations.

To avoid fines and minimize risk of liability, motor carriers should, as a term of employment, ask their drivers to sign a statement that they will report compensated hours logged with outside carriers in their hours-of-service documentation. These signed statements should be retained in the driver’s qualification file.

To read more, visit:

http://www.idealease.com/safetycompliance/04_29_2011.pdf

Driver Shortage Limiting Hauling Capacity, Potential Growth

In its Q3 2011 Fleet Sentiment Report, CK Commercial Vehicle Research—an organization that regularly polls a group of small, medium, and large for-hire, private, and government fleet operators to determine their purchasing plans, as well as the overall condition of their businesses—released figures indicating that 40 percent of fleets reporting to the organization are experiencing a driver shortage. Additionally, 25 percent of the polled fleets indicated that they believe that this shortage will have a negative impact on future growth.

Of those fleets that reported a driver shortage, 75 percent have an immediate need for drivers to fill vacant seats, 63 percent reported an inability to add capacity, and 42 percent have changed the way that they deploy their fleets (such as reducing their number of long hauls and focusing instead on regional and local freight opportunities).

Regarding the shortage, CKCVR’s founder, Chris Kemmer, remarked, “Freight demand is good among the majority of fleets that report to us, but some could definitely haul more if they could find good drivers. Even for those that have a full complement of drivers now, there is concern that this scarce resource will likely impact their future growth potential.”

The Q3 2011 Fleet Sentiment Buying Index, which measures of the number of motor carriers planning to add power units and trailers to their fleets within the next three months, rose to 104.3. This increase is primarily due to a large number of fleets planning trailer orders. The FSR Buying Index Table can be accessed at http://www.ckcvr.com/.

ATA Trucking Index Shows a Rise in Tonnage Hauled

According to the American Trucking Association (ATA), in the first half of 2011, the trucking industry experienced significant growth over the same six month period in 2010. This is evident in the ATA Truck Tonnage Index, which is a factor of the monthly tonnage hauled by motor carriers that are ATA members.

The net growth is largely thanks to a significant increase in the Index in June 2011 over June 2010. The 6.8% jump made June the strongest month for growth since January.

While an increase in the ATA Truck Tonnage Index is good news for the industry, the tonnage hauled for the second half of 2011 will depend largely on the overall strength of the economy. If sectors such as manufacturing continue to increase, then the tonnage hauled by motor carriers is expected to do the same.

For more information, visit http://www.truckline.com/pages/article.aspx?id=914%2F{8E1C7279-ED27-4C03-B189-CEEEE26BBB12}.

New Truck Sales Are Increasing

In June, for the eighth straight month, new class 8 truck orders in North American exceeded 20,000. That’s an increase of 143% over last year’s sales up until May.

This means a few things for fleet owners. Firstly, it’s an indication that the economy is slowly recovering and that the trucking industry is steadily inching toward pre-recession levels, which is great news. On the other hand, as owners begin to invest more in new trucks to replace those that have begun to age over the course of the economic downturn, dealers are experiencing a sizable increase in orders. As a result, many truck dealers are running out of available build dates for the remainder of the year.

So as the economy continues to improve, fleet owners shouldn’t wait until the last minute to replace their old trucks. If you need to add to your fleet this year, get the order in as soon as possible.

Peterson Trucks Awarded International Dealership; Completes First Sale

Peterson Trucks has been awarded the Bay Area/North Coast International Trucks territory!  We completed our first truck sale to Gary Ghilotti, owner/operator of Maggiora and Ghilotti Inc., on June 14, 2011.

John Krummen, Vice President of Peterson Tucks, announced the aquisition on June 14.  "Our goal is to build mutually-beneficial partnerships with current and potential customers in our territory," Krummen said.  "Our customers are our first priority.  We will go to whatever lengths are necessary to help them operate their International trucks profitability as we expand our business."

Krummen stressed the availability of parts and service for International owners:  "We are currently offering sales, parts, and service for International trucks from two Peterson locations--San Leandro and Santa Rosa--and will open our Fortuna and San Martin stores as International dealerships in the near future to make our services as convenient for our customers as possible."

We completed our first International truck sale shortly after opening our doors as a dealer: longtime Peterson customer Gary Ghilotti bought an International truck from Peterson Trucks on June 14.  According to Ghilotti, his Peterson Trucks salesman, Joe Rossi, helped him choose the right truck for his business: "The price was right and the salesman was more than qualified," Ghilotti said.  "Joe found the product I was looking for; very simple.  Now I can get to the project on time, and make deliveries a lot quicker, cheaper, and better."

Can an Off the Lot Truck Harm Your Business?

Many fleet owners are tempted to forgo the extra time and effort that is required to customize their new vehicle purchases. While buying a truck off the lot may seem simple (and can sometimes save a few dollars during the initial purchase), owners that choose this option can raise their operational costs, sometimes dramatically.

For example, a fleet owner that buys a truck geared for highway driving but runs an operation based on city deliveries will end up spending more on fuel than what is necessary. Likewise, an engine that is not designed to accommodate the specific load size of an operation can consume excess fuel and decrease engine longevity.

There are a variety of options that modern truck manufacturers offer at little or no cost that can reduce the operational costs of a fleet. By customizing their fleets, owners can ensure that their vehicles are tailored to the needs of their business without increasing operating costs unnecessarily.

To read more about the options that can save you money, read George Sharpe’s white paper, “Lowering Costs by Customizing New Commercial Vehicle Purchases,” at http://www.petersontrucks.com/papers/customizing_new_commercial_vehicles.

Driving Fuel Economy

With the average cost of a gallon of diesel at $4.22 in California (an increase of $1.15 per gallon over last year’s prices according to the US Energy Information Administration), fuel prices are increasingly becoming a major factor in operating costs for commercial vehicle fleets. While many fleet owners and managers are now recognizing the benefits of the various options offered by truck manufacturers designed to improve fuel efficiency, some are overlooking the fact that many of these options are negated by the habits of drivers. For example, aerodynamic features designed to reduce wind resistance also allow drivers to travel at faster speeds, which can counter any fuel savings the features were designed to promote.

If fleet managers are to use the technological advances that can improve fuel economy successfully, they must also consider creative approaches to driver training, implement driver reward programs, and make drivers an important part of the business. If trucking companies can reach their drivers in a meaningful and impactful way, saving fuel can become a company-wide goal, and not just a fleet owner and manager goal.

Tom Bagwell, CTP of Peterson Trucks explores this idea in detail in his white paper “Driving Fuel Economy.” Visit http://www.petersontrucks.com/papers/driving_fuel_economy to read more.

Pre and Post Trip Inspections Can Help Lower Operating Costs

While CSA regulations can seem rigorous, conforming to them can actually help you to lower your fleet’s operational costs. Following guidelines on pre and post trip inspections, for example, can save your operation time and money. Consider this example:

A trucking company based in San Jose recently received an out of service violation for a headlamp that had burned out. The fleet manager who received the call spent an hour looking for a mechanic who was willing to perform an immediate road call. At $75 an hour, the mechanic took three hours to locate a replacement part, drive it to the truck’s location and install it. He also charged the company a $50 mobile service fee. So the company paid $275 for a $6 headlamp (and that cost doesn’t include downtime and the fleet manager’s time).

If the broken headlamp had been noticed during a pre trip inspection, the company would have saved $269 and four hours of time. This is a perfect example of how pre and post trip inspections can minimize downtime and save money.

To read Paul Backers’s (CTP) white paper, “Conforming to CSA Regulations While Reducing Operating Costs with Pre and Post Trip Inspections,” visit http://www.petersontrucks.com/papers/pre_trip_inspections.

Welcome to the official Peterson Trucks Blog

Welcome to Peterson Trucks, and thank you for visiting our blog. As the new International truck dealer for the San Francisco Bay Area, our goal is to provide fleet owners and managers with a comprehensive source of industry-relevant information so that they can make informed and profitable business decisions.

Look for Paul Backer’s blog post on reducing operational costs with pre and post trip inspections next week.