Trucking's Fuel Bill Approaching $100 Billion
The American Trucking Associations has revised upward the trucking industry's 2006 fuel costs, projecting motor carriers will spend $98.3 billion on fuel in 2006.
The revised estimate follows the release by the Energy Information Administration of an adjustment in its 2006 forecast of the national annual average price of diesel from $2.59 per gallon to $2.70.
The new EIA forecast increased ATA's April 25 estimate of the trucking industry's fuel bill by $4 billion dollars, and represents a $10.6 billion increase over the $87.7 billion spent for diesel fuel by trucking in 2005.
ATA President and CEO Bill Graves said that for many motor carriers, fuel represents the second-highest operating expense, accounting for as much as 25 percent of total operating costs.
"An affordable supply of diesel fuel is imperative to keep our trucks moving," Graves said. "We are not recreational vehicles. We have to be out there delivering the goods that America and our economy are demanding."
Trucking serves as a barometer of the U.S. economy because it represents nearly 70 percent of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks are projected to haul 13 billion tons of freight by 2016, up from 9.8 billion tons in 2004. Motor carriers collected $671 billion, or just under 88 percent of total revenues earned by all transport modes.
ATA said fuel prices could increase further in 2006 because of the introduction of ultra low sulfur diesel, which is scheduled to hit the market mid-year. ULSD costs more to refine and distribute than today's diesel fuel. This could place additional upward pressure on the price of diesel fuel (see Fuel Special Report page 32-75 of this issue.)
To alleviate future significant fuel price fluctuations, the trucking industry supports long-term strategies that would increase the diesel fuel supply. These include increased refining capacity and the use of biodiesel in blends up to 5 percent as part of the national diesel fuel standard.
TRALA Teams With Vets to Address Tech Shortage
Members of the Truck Renting and Leasing Association visited the Aberdeen Proving Grounds in Maryland last month to get a first-hand look at the Department of Labor's Hire Vets First Committee's Training Assistance Program.
As the truck renting and leasing industry continues to face a growing national shortage of qualified maintenance technicians, TRALA and its member companies have teamed up with the President's National Hire Veterans Committee. The commission was established under the 2002 Jobs for Veterans Act, in an effort to offer more training, skills and job opportunities to military veterans.
"The military is providing men and women with top-notch skills, training and experience," said TRALA President and CEO Peter Vroom. "Our industry wants to put these highly trained veterans to work after they have finished their military service to our country. These are respected positions that pay well and can provide great careers."
The visit to Aberdeen allowed senior maintenance executives to observe Department of Defense transition training, including a briefing on wheel vehicle mechanic training and certification programs and to witness an Advance Individual Training in progress. This experience allowed TRALA to extend to its members the opportunity to access the nation's veterans.
TRALA also participates in the HireVetsFirst initiative, an Internet portal for employers to find veterans. The site provides employment resource information, nationwide job fair listings, local community career centers that provide employment assistance to employers, and access to links for Americas Job Bank and an electronic job search engine.
More information on this campaign is available at www.hirevetsfirst.gov.
TRALA, which is based in Alexandria, Va., is a voluntary, nonprofit national trade association, organized in 1978 to provide a unified and focused voice for the truck renting and leasing industry. TRALA's membership includes more than 500 leasing and rental firms and 100 suppliers that make up nearly the entire truck renting and leasing industry. The renting and leasing industry is responsible for approximately 35 percent of all new Class 3 through 8 commercial truck registrations.
ATA Creates New Security Council
Reflecting the heightened importance of trucking industry security in a post 9-11 atmosphere, the American Trucking Associations has unveiled a new Security Council.
The group's security focus had previously been housed within its Safety & Loss Prevention Management Council but, given the growing and intense focus on security, ATA determined it was appropriate to establish a separate entity dedicated solely to trucking security issues and operations.
"This new focus on security will help us better target security information and services for our members," said Bill Graves, ATA President and CEO. "Likewise, the feedback from experienced industry security officials will aid ATA in our efforts to assure that motor carriers can continue to move freight efficiently."
The Security Council's mission is to serve trucking industry security through education and training, the exchange of information, interaction between peers, and evaluation and exposure to new technologies.
The council's officers will include Brian Shutt, manager of security for ABF Freight System Inc. as national chairman; Curtis J. Shewchuk, director of corporate protective services for Con-Way Transportation Services; and William F. Downey, vice president of Kenan Advantage Group, as first vice chairman and second vice chairman, respectively.
Susan Chandler will serve as executive director; Mike Hodge as director of claims and security.
NPTC Honors Safe Private Fleets
The National Private Truck Council recognized its member truck fleets for their continued safe operations during its annual Education Management Conference in Nashville, Tenn.
The NPTC/Bridgestone Firestone Fleet of the Year Award is presented to those companies whose fleets experienced the lowest ratio of accidents per million miles for the past year.
These awards are given by fleet size and operational category. The winners for 2006 are:
LOCAL OPERATION
SMALL FLEET (LESS THAN 50 VEHICLES)
First Place: Barnes & Noble
Second Place: Yorktowne Inc.
MIXED OPERATION
SMALL FLEET (LESS THAN 50 VEHICLES)
First Place: Pendleton Woolen Mills
Second Place: Cooper Tire & Rubber Co.
Third Place: George's Foods LLC
LARGE FLEET (50 VEHICLES OR MORE)
First Place: General Nutrition Centers
Second Place: Wal-Mart Transportation
Third Place: Russell Corp.
REGIONAL OPERATION
SMALL FLEET (LESS THAN 50 VEHICLES)
First Place: Jerico Services Inc.
Second Place: Metal Exchange Corp.
Third Place: Webster Industries Inc.
LARGE FLEET (50 VEHICLES OR MORE)
First Place: Milliken & Co.
Also recognized were those fleets with outstanding and/or improved safety records based on their crash rates.
• Gold Seal Award: This certificate is awarded to a company and its employees for an outstanding safety performance, having operated its private truck fleet without experiencing a single accident during the past year.
• Silver Seal Award: This certificate is awarded to a company and its employees for an improved safety record in the operations of its private fleet. The company reduced its accident frequency rate by 40 percent or more, compared to its record of the previous year.
• Bronze Seal Award: This certificate is awarded to a company and its employees for making progress in reducing its accident frequency rate by 20 percent to 39 percent compared to its record of the previous year.
The 2006 Fleet Safety Award winners are:
GOLD AWARDS
ADM Trucking Inc.
BP
Cooper Tire & Rubber Co.
Hittman Transport Services Inc.
Jerico Services Inc.
Moen Inc.
Pendleton Woolen Mills
Webster Industries Inc.
SILVER AWARDS
Cooper Tire & Rubber Co.
Grocery Supply Co.
Hittman Transport Services Inc.
Marathon Petroleum Co.
Metal Exchange Corp.
Orgill Inc.
Yorktowne Inc.
BRONZE AWARDS
BP
Grocery Supply Co.
GSC Enterprises Inc.
Hudson's Bay Co.
LPC Transport Inc.
Shaw Industries, Inc.
Walgreen Co.
Webster Industries Inc.
NPTC Inducts Four Drivers Into Hall of Fame
Four truck drivers with a combined 15.8 million miles of safe driving were recently inducted into the National Private Truck Council/Bridgestone Firestone Driver Hall of Fame.
The drivers are from NPTC member companies and have met the minimum qualifications of 20 years, 2 million miles or 50,000 hours of driving without a preventable accident.
Since its inception, 80 drivers have been installed in the Driver Hall of Fame.
This year's Hall of Fame inductees are:
• Gene E. Reed, TFE Logistics
• John R. Tedford Sr., BOC
• James H. Tolly, NCI Building Systems
• Robert C. Wrenn, Gwaltney Transportation
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