Parade and Transport Pro Partner to Tackle Carrier Capacity Challenges

We are so excited to announce our partnership with Parade! Below the text of the press release, you will find links to the published press release as well as CCJ’s article about it. Have questions? Give us a call! 615-823-1937

San Francisco, CA; Nashville, TN — August 29, 2018 — Transport Pro, a Web-based TMS company, is excited to announce its partnership with a leading brokerage technology provider, Parade. The combination of Parade’s innovative AI-powered carrier management system and Transport Pro’s digital carrier sourcing platform gives brokers access to cutting-edge automation technology at an affordable price point.

Brokers have thousands of data points around capacity availability streaming into their email inbox each day, and a vast amount of underutilized historical data, location/ELD, and carrier interactions stored in their Transport Pro system. Often, it’s hard for brokers to sort and understand all this data, which results in carrier reps turning to load boards and using their gut to source carriers. Parade’s advanced capacity technology integrates key information from carrier emails, plus information from sources like location, historical load bookings, and historical carrier interactions, providing brokers with visibility into what freight carriers need and when. The Transport Pro carrier sourcing platform then matches that carrier capacity to available freight and sends an automatic email to the qualified in-network carriers. The ability to notify carriers of available freight within minutes helps brokers to strengthen the overall carrier experience, building relationships for the long haul.

“I grew up in a family full of owner-operators and brokers,” said Preet Sivia, Chief Business Officer of Parade. “I understand how important brokerages are in the transportation ecosystem, but up until now, it’s been difficult to use all your data to reuse capacity and increase carrier sales efficiency. With all your location, ELD, email and historical load information in your TMS, this partnership will allow Transport Pro users to understand and predict their carriers’ capacity with the end goal of increasing carrier re-utilization and loads booked per rep.”

Transport Pro users have the advantage of leveraging Parade’s artificial intelligence technologies to tap often ignored available capacity. With all of the daily distractions that take place in an office, it’s easy for load opportunities to go unnoticed. This automation saves time, increases efficiency and helps brokers remain competitive in the marketplace.

“Brokers are competing with large tech companies pushing digital freight brokerage, and the only way to stay in the game is to invest in technology,” says Kenneth Kloeppel, CEO of Transport Pro. “Most of the time this comes at a price far out of reach for most brokerages. When you look at the new technology being provided by Parade and Transport Pro, a brokerage can become a powerful service provider to its customers and partner carriers.”

The Parade integration is currently available for Transport Pro customers.

About Parade

Parade is a software company producing big data and artificial intelligence solutions for transportation companies. Parade extracts business intelligence from real-time email, location information and historical load data to optimize communication, decision-making, and freight opportunities.

About Transport Pro

Transport Pro is a leading transportation management software company providing Web-based technology to trucking companies, third party logistics and brokerages. Transport Pro’s innovative software streamlines daily business operations and offers a number of integrations to maximize workflow.

Media Contacts:

Kelly Frederick

kelly.frederick@transportpro.net

615-864-8933

Preet Sivia

sivia@parade.ai

1-855-534-3729

EPA Limits Production of Glider Trucks

According to a recent article in Transport Topics, acting administrator Andrew Wheeler has reversed a decision that would have allowed a proliferation of glider trucks until the end of 2019. Wheeler’s decision came just days after 16 state attorneys general filed requests for review by the US State Court of Appeals for the District of Columbia.

U.S. Environmental Protection Agency acting Administrator Andrew Wheeler has reversed a controversial decision made earlier this month that would have allowed the proliferation of glider kit trucks until the end of 2019.

In a July 26 memo to the agency’s enforcement chief, Susan Bodine, Wheeler said a “no-action assurance” order blocking enforcement of the glider kit trucks provision in the 2016 Obama administration’s Phase 2 Greenhouse Gas Heavy Truck Rule is “not in the public interest.”

“The Office of Enforcement and Compliance Assurance has a general guidance limiting the circumstances under which the agency will consider issuing no-action assurances,” Wheeler wrote. “The 1995 restatement of that policy states that the principles against the issuance of a no-action assurance are at ‘their most compelling in the context of rulemakings.’ OECA guidance is clear that a no-action assurance should be issued only in an ‘extremely unusual’ case when the no-action assurance is necessary to serve the public interest, and only when no other mechanism can adequately address that interest.”

Bodine’s “no-action assurance” memo was dated only a day after then EPA Administrator Scott Pruitt resigned amid a dozen ethics investigations. In November, the agency issued a proposed rule to repeal the Obama-era regulation, questioning the notion that the gliders were big polluters and whether EPA even had the authority to regulate the gliders.

Bodine’s “no-action assurance” memo was dated only a day after then EPA Administrator Scott Pruitt resigned amid a dozen ethics investigations. In November, the agency issued a proposed rule to repeal the Obama-era regulation, questioning the notion that the gliders were big polluters and whether EPA even had the authority to regulate the gliders.

Wheeler’s action came July 26, only days after an environmental coalition and 16 state attorneys general filed separate requests for review by the U.S. Court of Appeals for the District of Columbia, claiming that not enforcing the glider provision in the 2016 Phase 2 Heavy Truck Greenhouse Gas rule would allow thousands of the “super polluting” glider trucks on U.S. roadways.

The court quickly issued a temporary stay of the EPA nonenforcement plan while it considers whether to approve or deny the emergency motions filed by environmentalists and the states, which said allowing the production and sale of more than 300 per-manufacturer gliders — “new heavy-duty trucks manufactured with highly polluting, refurbished engines that do not comply with modern emissions standards” — is unlawful.

“This is a huge win for all Americans who care about clean air and human health,” Fred Krupp, president of the Environmental Defense Fund, one of the lawsuit plaintiffs, said in a statement. “These super-polluting diesel freight trucks fill our lungs with a toxic stew of pollution. EPA’s effort to create a loophole allowing more of them onto our roads was irresponsible and dangerous. We hope their decision to withdraw that loophole puts a firm and final end to this serious threat to our families’ health.”

Glen Kedzie, energy and environmental counsel for American Trucking Associations, told Transport Topics, EPA’s reversal of its prior decision to not enforceglider vehicle provision under the final Phase 2 rule was a welcome announcement, which reaffirms the agency’s legal authority and responsibility to the public to close the dangerous emissions loophole created by a small special interest group of manufacturers. We will await EPA’s next steps as this issue continues to evolve.”

In their emergency motion, the environmentalists said the trucks are “poised to spend their lifetimes emitting many times more smog-forming nitrogen oxides, lung-damaging particulate matter and cancer-causing toxics than lawfully built heavy-duty trucks. Relief is urgently needed from EPA’s unlawful action in order to avert substantial and irreparable public-health consequences.”

The attorneys general in their court brief said, “Testing of glider vehicles conducted by EPA in 2017 showed even greater emissions impacts: NOx emissions were as much as 43 times higher than emissions from compliant vehicles, and PM emissions as much as 450 times higher. NOx and PM are linked to serious adverse health effects, including increased incidence of respiratory and cardiovascular disease and premature death.”

 

To read the article on Transport Topics, click here.

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Human Error Takes Toll on Global Supply Chain

Although there is a plethora of technology in today’s global supply chain industry, many jobs still require human interaction. According to a recent article in Inbound Logistics, the problem is that too many people are making too many mistakes.

By Matthew Tillman, CEO & Co-founder, Haven, Inc. writes in Inbound Logistics:

Most business is driven by an incentive to grow. The global supply chain follows a different narrative. Growth costs more than is affordable for the steamship line whose business it is to transport cargo, and there’s no way for these carriers to differentiate from competitors. Instead, carriers cut their costs and increase their margins.

The supply chain is broken because there are too many people who are doing too many things wrong. The result is human suffering. Businesses are deprived of the goods they sell. Communities are deprived of the food imports upon which they depend and workers are exploited. These practices are part of the history of the shipping industry. While identifying their symptoms is easy, finding root causes is difficult when the problem behaviors are taken for granted.

The most visible symptom of the ineffectual structure of shipping is criminal corruption, the type that lands an executive in prison seemingly every year; for example, the conviction of an employee of shipping line NYK with price fixing. Lacking solid data to prove price fixing is rampant, trade is structured to make it a very tempting crime because transporting cargo is a uniquely low-margin business in which the cost of growth is linear.

Customers of shipping lines aren’t encouraged to pay one particular carrier more for better offerings. Another option is for lines to improve customer experience, which could justify a carrier charging higher prices, but that means hiring workers. A carrier is likely to differentiate by lowering prices with lower interest rates on financing of new ships and loans that insure cargo.

Shipping lines will try to negotiate with banks for better interest rates, but this requires them to promise a certain volume of business to support the number of ships the bank is financing. Some lines are fortunate enough to be headquartered in countries that subsidize their business, giving them an edge over competitors. Lines that fail to secure good rates or subsidies have to consider other means to either increase margins. They can spend less on labor, which can easily lead to exploitation; an example of this is labor abuses in the Thai fishing industry.

Limited opportunity to differentiate and charge more is one reason margins are tight for shipping lines. Another is that adding a new line of business is expensive. In most industries, expansion becomes cost-effective over time, but not for carriers. Each new shipping line requires as many workers as established lines, so to start running a new ship between ports is as expensive as founding an entire new carrier company. This deters shipping lines from expanding and working with more customers, reinforcing their focus on increasing margins by lowering costs.

Examining the Root Cause

This problem of restricted expansion is where you understand that people are the problem. Too many workers are needed to keep things running because too much work is required for basic tasks. The average shipment with French carrier CMA CGM entails 22 booking changes before it’s booked to be transported.

Instead of a customer filling out a form online that automatically transfers information to every electronic location where it needs to be, workers physically copy and paste addresses from incoming orders to outgoing directions for laborers handling the physical cargo. Invoice errors are inevitable in this process, leading to billing disputes. The typical shipper loses $50,000 to $150,000 a year from invoice mistakes by carriers, according to one auditor. The ramifications of an error can be even more costly. If a dispute means a grain import doesn’t dock and unload, people aren’t eating.

As much attention as we pay to exploitative labor practices in palm oil production and brick making, we rarely look at the expenses that might incentivize these tragic systems. We bemoan world hunger and the irony of food waste, but we rarely look at why more food isn’t transported. The incentive and why is our broken global supply chain, and the problem is people. Automating shipping would lead to fewer errors and workers, which could lower transportation costs and allow for more cargo to be transported. Until shipping is automated, it will be glutted with people performing minute, redundant tasks, with a high propensity for error.

Click here to read the article in Inbound Logistics.

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Many Small and Mid-Sized Enterprises say Technology Drives Trade Growth

We know that technology continues to drive change in the transportation sector, but are companies more optimistic about it than we think?  According to a recent article in Inbound Logistics, approximately 80 percent of executives at small and mid-sized enterprises, who were surveyed, say that they use online platforms for rate quotes and bookings.

Felecia Stratton writes in Inbound Logistics:

Small and mid-size enterprises (SMEs) struggling for equal footing in the global economy increasingly look to cross-border trade for growth, seeing technology as a way past obstacles in shipping and compliance, according to new research from Shipa Freight.

Shipa Freight’s global study of 800 SMEs from developed and emerging markets shows smaller companies are remarkably upbeat about their ability to expand through trade.

Eighty-nine percent of exporting SMEs surveyed say their export revenue will grow over the next three years; 71 percent say they are concentrating more on international markets than on their home markets. The Shipa Freight survey included exporters and importers from the United States, UK, Germany, Italy, China, India, Indonesia, and UAE.

Smaller companies account for an estimated 95 percent of all businesses and employ two-thirds of the world’s workers. Critics of globalization have argued that decades of efforts aimed at easing the flow of goods, capital, and jobs across borders have come at the expense of SMEs and disproportionately benefitted multi-nationals and other large businesses.

Three-quarters of SME executives surveyed believe businesses that operate internationally are more resilient. Nearly 80 percent say they use online platforms for freight quotes and bookings.

SMEs that view the UK as one of their top export markets are looking elsewhere because of Brexit. Britain’s vote to leave the European Union has prompted 73 percent of respondents to prioritize trade with other European countries. Sixty percent of UK SMEs that export and 52 percent of UK SMEs that import say leaving the EU Single Market would be “disastrous” for them.

Smaller companies clearly see technology as a way to close the gap with bigger competitors, cope with documentation requirements, and access competitive shipping options. Eighty-six percent say technology is leveling the playing field for SMEs to operate globally; 89 percent believe technology is transforming the logistics sector.

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Telematics Data Reveals Drivers in Rural Areas Most Dangerous

With all the new technology out there today, it’s no too difficult to gather safety data that can measure key factors, such as hard braking, speeding, etc. A recent analysis by Verizon Connect assessed their customers’ data and found that the most dangerous driving occurs in rural states.

Aaron Huff of CCJ Digital writes:

Widespread use of telematics devices to monitor vehicle and driver performance gives fleet technology suppliers plenty of data to analyze and identify macro-level trends.

Recently, Verizon Connect analyzed driving data from its customers to identify states with the safest and most dangerous commercial drivers.

Its analysis accounted for harsh acceleration, harsh braking, harsh cornering, and speeding. Fatalities were thrown into the mix to calculate the safest and most unsafe states based on driving behaviors.

According to this infographic, the top three safest states are Rhode Island, Massachusetts and Connecticut. Nearly all 10 of the safest states are in the New England area where speeding opportunities may be limited due to traffic congestion. Perhaps not coincidentally, states with the fewest speeding events are Vermont, Virginia and Connecticut.

The most dangerous states all have large expanses of rural areas where speeding is likely to be more common. That seems to be the case for three states with the most speeding events — North and South Dakota and Montana.

On the other hand, Verizon’s data show that North Dakota has the safest drivers, which would seem to repudiate the hypothesis that commercial drivers in rural areas are more dangerous. The states with the most dangerous drivers, starting with Utah at number one, all have more variables at play than speeding.

To read the article on CCJ and to view the referenced infographic, click here.

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Trucking Industry Prospers, Trade Policy Holds Uncertain Effects

The economy is booming and unemployment rates are low at 3.8 percent, according to a recent article by Transport Topics. There are actually more trucking jobs than there are people looking for those jobs. There are currently 50,000 available full-time trucking jobs needed to support NAFTA. However, with the United States placing tariffs on other countries, including allies Mexico and Canada, it’s unclear what effects these tariffs may have on the industry.

Burney Simpson, Staff Reporter for Transport Topics writes:

The economy and trucking are in good shape for the second half of this year despite issues including the driver shortage. But uncertain trade policy is having an impact on future expansion, according to three industry experts who spoke June 7 at American Trucking Associations’ 2018 National Accounting & Finance Council annual conference in Raleigh, N.C.

The panel Economic Trends in Trucking Amidst Policy Changes featured Brad Delco, managing director of investment firm Stephens Inc., and Kenny Vieth, president of industry analyst ACT Research Co. It was moderated by ATA Chief Economist Bob Costello.

Summer is here and the overall economy is strong with three important forces doing well simultaneously, reported Costello. First, the consumer is at work with an unemployment rate at 3.8%.

“We have more job openings than people looking for work. This year wages could go up 3.5%. There is fast growth and that brings spending,” Costello said.

Then there’s a busy construction industry and factory output possibly growing 3% this year, Costello said.

Specific to trucking, business is growing as “more firms are going to two-day delivery. Inventory is cycled through faster at warehouses, but at the same time they have to have inventory on hand to be delivered,” Costello said.

Another positive is the sales and orders for trucks, Vieth said. “The technology in the new trucks is changing. Automated manual transmissions are huge, the safety technology is becoming a must have, the driver-assist technology such as lane departure, automatic braking, anti-rollover, all of this is wanted now,” Vieth said.

So, Costello asked, what challenges face the industry?

“The only constraint on this industry is a lack of drivers,” Delco said. And many carriers are addressing that by raising compensation to recruit and retain drivers.

The major problem at the moment is uncertainty on U.S. trade policy and the threat of tariffs, Vieth said. Tariffs typically lead to higher prices for steel and other commodities needed to build equipment.

“Policy is not clear. Then we’ve got events like Italy possibly leaving the European Union,” Vieth said. “Is that much ado about nothing? What happens to the EU when you consider Italy is the seventh largest economy in the world?”

Delco believes the economy will slow in 2019. He argues the long bull market in stocks appears to have hit its peak as trading whipsaws up and down. Meanwhile, policy announcements from the White House give investors pause.

“The stock cycle is long in the tooth, there’s greater volatility, the uncertainty is greater and people may pull back capital,” Delco said.

And it’s not clear why the United States is placing tariffs on allies such as Canada and Mexico, especially since it has trade surpluses in key commodities with these countries, Costello said. The renegotiation of the NAFTA trade agreement has become contentious and any deal, if it happens, won’t be signed until 2019.

“NAFTA is very important to trucking,” Costello said. “There are 50,000 full-time trucking jobs needed to support NAFTA, including 31,000 drivers. It means $6.6 billion annually to the trucking industry.”

In sum, trucks this summer have a full load and a relatively open road but be prepared next year for some congestion.

The NAFC conference was held in conjunction with ATA’s Technology & Maintenance Council Fleet Data Management & Cybersecurity Conference at the Marriott City Center in Raleigh.

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The Future of our Highway Infrastructure

According to the following opinion piece published in Transport Topics, America was number one in infrastructure back in 2005. However, today, we are ranked number 9. The question now is: How are we going to bounce back?

In an opinion piece, Ed Rendell and Ray LaHood | Co-Chairs, Building America’s Future, write in Transport Topics:

The expansive infrastructure networks that were built in the 20th century have served our nation well. As America’s economy grew, people and goods continued to move across the country, and the quality of life for all our citizens continued to improve. But in recent years, our infrastructure has been neglected and underfunded as policymakers in Washington have ignored the decay and disrepair of our roads, bridges and transit systems.

For decades, America’s roads and bridges were paid for by the users of transportation systems through modest fuel taxes. The system worked well for years, but as vehicles became more fuel efficient and cars that use little or no fuelat all became more prevalent, less revenue from this user fee flowed into the Highway Trust Fund.

Since 1993, the fuel tax rates of 24.4 cents per gallon for diesel and 18.4 cents per gallon for gasoline have not increased, and have due to inflation lost a good deal of their purchasing power. Congress has declined to take any action to approve even a modest increase in these rates or even index them to inflation.

Unfortunately, inaction has severe consequences. Since the Highway Trust Fund has not kept up with our nation’s growing needs, the result has been clear: Our roads are cratered with potholes, our bridges no longer handle growing traffic volume, and traffic congestion has grown to unbearable levels in many of our cities. And we are falling behind our global economic competitors. The World Economic Forum ranked our infrastructure No. 1 in the world in 2005, but after years of inaction we have fallen to No. 9 — a significant step back.

It’s time to forge a new path forward. Competing in the 21st century requires 21st century infrastructure and a 21st century way to pay for it.

Congress should look no further than the states that have been testing the feasibility of replacing the system that charges drivers by how much fuel they consume with how many miles they drive. States like Oregon and California have been at the forefront of this testing, and Washington, Colorado, Utah and Minnesota have also been exploring this concept.

A road user charge would address the growing fuel efficiency of vehicles while at the same time ensure that hybrid and electric vehicles that currently pay little or nothing contribute their fair share. In addition to generating needed revenue, such a program could also be used to better manage traffic congestion by using variable pricing based on time of day and traffic volume. Variable pricing is already widely used on highways around the country. The 495 Express Lanes in Northern Virginia, the I-15 Express Lanes near San Diego and 95 Express in Miami are three examples.

Full-scale implementation of a national road user charge is several years away. In the interim, we must continue to rely on fuel taxes, but it is imperative that they be increased and indexed to inflation.

The Highway Trust Fund is projected to go bankrupt in 2020. If something isn’t done to increase funding — be it an increase in fuel taxes, transfers from the general fund of the treasury or something else — it will have a $138 billion shortfall over the next 10 years. And if that shortfall is addressed with an increase and indexing of the gas tax, there would be no impact on the federal deficit. This would not be the case if money is transferred from the general fund.

We believe this proposal is the bridge to the 21st century that is needed to get America’s infrastructure back to No. 1. It will require vision, courage and action from our policymakers.

With the close of the recent 6th annual Infrastructure Week, now is the time to act. The future won’t wait. Neither can we. It’s #TimeToBuild.

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DOT Highlights Various Drone Tests

It’s no secret that drones are making their way into various industries. With ever-evolving technology and the need to deliver goods to consumers more quickly and efficiently, drones are a driving force in this effort. Additionally, drones are being tested in other areas, such as farming.

Alan Levin of Bloomberg News writes (published in Transport Topics):

A who’s who of technology and aviation companies won U.S. approval to push the edge of the envelope in drone flights, from testing people’s tolerance for delivery devices hovering over their rooftops to ensuring farmers’ drones won’t hit crop dusters.

In the most far-reaching test program to date for burgeoning drone commerce, the Department of Transportation announced the selection of 10 state, local and tribal governments — in partnership with companies that may include Alphabet Inc.’s Project Wing and Intel Corp. — as social and scientific test beds.

“The enthusiastic response to our request for applications demonstrated the many innovative technological and operational solutions already on the horizon,” Transportation Secretary Elaine Chao said.

The communities hosting the pilot projects include San Diego, Raleigh, N.C., Topeka, Kan., Reno, Nev., and Fairbanks, Alaska.

The program was pushed by President Donald Trump’s White House as a way to speed approvals of more far-ranging unmanned flight operations.

The Integration Pilot Program, as it’s called, has created palpable enthusiasm in the drone world, from startups including Flirtey Inc. and AirMap Inc. to established companies developing unmanned devices such as Amazon.com Inc., which wants to deliver packages to people’s homes.

Flirtey, which has tested a variety of ways to deliver goods using small drones, is part of a test program operated by Reno that is one of the 10 winners, Sen. Dean Heller (R-Nev.) said in a press release May 8.

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Technology Helping to Detect Risky Drivers

Most trucking companies today have implemented technology in some facet. One thing that is and forever will be crucial to monitor is safety. There is technology today that many many companies have launched to monitor driver behavior and quickly detect and mitigate risk.

Aaron Huff of CCJ Digital writes:

In October 2017, a top-performing driver for Oakley Transport crossed the centerline of a bridge at approximately 4 a.m.

A windshield-mounted Bendix AutoVue camera system detected the lane departure and instantaneously shared event data with an in-vehicle SmartRecorder device from SmartDrive.

The SmartRecorder captured and transmitted a 20-second video clip of the event to Oakley Transport for review using the SmartIQ web portal from SmartDrive.

“It was a scary moment to watch,” recalls Craig Stevens, Oakley’s vice president of operations and strategic initiatives. He saw the driver shaking himself to stay alert.

After the technology identified the fatigued driver, Oakley Transport’s safety department intervened and provided treatment for what had been a previously undiagnosed sleep apnea.

Fatigue is one of many risky driving behaviors that can be detected using advanced technology. New developments are leading to a convergence of driver-assist technologies and safety data to identify more complex patterns of risk that traditionally have been hidden from view.

Breaking down the technical and competitive barriers of safety technology has made it possible for fleets to more effectively mitigate risks by having more comprehensive and real-time management of vehicle and driver performance.

A single subscription

One of the forces driving technology convergence is the prevalence of advanced driver-assistance systems (ADAS). Eventually, ADAS technology will power autonomous trucks, but in the meantime they are expanding the possibilities to mitigate risks.

Today, fleets may be cobbling together data from multiple ADAS technologies and Internet of Things devices and sensors. For example, a telematics system may report speeding and sudden braking events while a separate video event recorder is used to identify more complex behaviors that triggered the events like fatigue and distraction.

SmartDrive’s latest SR4 platform has expanded possibilities for data integration for reducing costs and giving fleets a “single source of truth” for driver and vehicle performance, says Steve Mitgang, SmartDrive’s chief executive.

Oakley Transport, based in Lake Wales, Fla., is installing the SR4 in its 500-truck fleet.

Oakley Transport orders its Volvo trucks with Bendix AutoVue lane departure warning and Bendix Wingman Fusion systems installed at the factory. The Wingman Fusion system combines adaptive cruise control with active braking and collision mitigation technologies.

The Bendix ADAS systems integrate with the SmartDrive platform to trigger capture of video records based on lane departures and following distances.

Kelly McDowell, Oakley’s director of safety and compliance, says everything managers want to know about driver behaviors and risk is available through the SmartDrive program, which brings data together into “one package to measure safety.”

Vehicle integrators

Truck manufacturers are helping drive the integration of ADAS technology with telematics, video and other safety technologies with connected vehicle platforms.

In 2013, Navistar began using data from telematics systems that its fleet customers were already using to power its remote diagnostics and predictive maintenance service, OnCommand Connection.

In 2017, Navistar launched its own aftermarket telematics hardware and software platform under the same name, OnCommand Connection, with fleet management and ELD applications.

Starting this year, Navistar will be installing OnCommand Connection in all International Trucks at the factory. The technology will serve as an integration hub for ADAS and other connected vehicle technologies that its customers use.

“We have been successful for a long time pulling data from different trucks into one screen. Most fleets don’t own one truck (brand) so we do not have any reason to not continue the same strategy,” says Terry Kline, Navistar’s senior vice president and chief information officer.

By integrating with ADAS systems on a vehicle, Kline can “easily see a future” where OnCommand Connection will alert fleets if a driver has a lane departure event caused by fatigued or distracted driving “so that someone can intervene.”

OnCommand Connection will be able to capture video and data from ADAS and camera systems on vehicles, he adds, and give users to event data and footage through an online portal.

“We view OnCommand Connection as the connection to the vehicle for those data points on safety, lane departure and collision avoidance,” he says.

Bringing it together

With an ever-increasing amount of information that is available on driver safety and performance, it has become difficult for a single vendor to supply everything through a single subscription package.

Some vendors have decided to instead focus on their core strengths, which may be to package information from a multitude of sources for fleet managers and drivers to modify behaviors.

Fleet mobility provider PeopleNet, for instance, continues adding more sources of information to its Onboard Event Recorder (OER) application. OER captures data from the vehicle and various ADAS sensors when critical events occur like speeding or sudden deceleration.

PeopleNet’s Video Intelligence product adds video footage to OER events from cameras around the vehicle. The data it captures on driver safety also includes hours-of-service and driving habits and brings everything together into a net score. The scores are managed using an online Safety Analytics dashboard.

Samsara, an enterprise IoT systems company, offers what it describes as “a complete data platform” for transportation operations that combines real-time GPS tracking, wireless sensors, video, and mobile applications.

The platform flags harsh events as they take place for fleet managers to review the footage from those incidents. Samsara doesn’t employ people to review the footage to make risk observations, which helps to keep costs down and gives fleets immediate access to data and video records, says Saleh ElHattab, product manager at Samsara.

Samsara is developing new machine vision technologies that will automatically identify risky behaviors, like distraction, that contribute to critical safety events, he says. Fleet safety scores are shown to drivers via the Samsara Driver App.

Mix Telematics is “always looking for different data streams to integrate with,” says Pete Allen, chief client officer. The company offers an integrated camera for its telematics platform and has integrations with Mobileye’s forward collision warning system and Seeing Machines’ fatigue detection system.

Alerts from the Mobileye and Seeing Machines systems can be part of MiX Telematics’ data stream, he says, to identify correlations with driver behaviors caught on camera such as distractions.

“Driver behaviors are precursors to other events happening,” he says.

Teletrac Navman is in the process of deploying a forward-facing camera for its telematics system, Teletrac Navman Director. The system will record video footage when triggered by behaviors such as harsh driving and speeding, says Marco Encinas, marketing and product manager of global platforms.

The company is also working on next-generation cameras to incorporate a 360-degree view around the vehicle to detect risky driving behaviors and event records.

As a mobile workforce platform, Verizon Connect has not introduced a camera. Instead, the company integrates with a number of third-party camera systems.

Verizon Connect is focused on creating value for its customers through scorecards rather than adding more IoT devices. The platform comes with a built-in driver scorecard that can utilize event data, such as lane departures, from third-party systems.

Verizon Connect also offers a Coach mobile app that shows drivers how their performance compares to their peers, says Mark Wallin, vice president of product.

Machine learning

As motor carriers continue to adopt ADAS and other forms of safety technology, some companies are using artificial intelligence to detect new patterns of risky behaviors as the volume of data increases.

SmartDrive is using data it captures from OEM and third-party systems to continuously develop and refine driver-assist sensors and machine learning algorithms that detect risk patterns. The company will soon release sensors that can alert drivers, assess behaviors and trigger the capture of event data and video for lane departures, short following distances, forward collision warnings, posted speed detection, traffic signs and signal violations.

Lytx, whose DriveCam program is used by more 3,000 fleets with 500,000 vehicles, is using artificial intelligence to mine its large database and develop new machine vision technologies that will help its customers better understand and predict risk in driving and non-driving events.

Lytx is adding approximately 1 billion of driving miles to its database every two weeks. The scale of data makes it possible to automatically recognize more patterns in unique data sets, says Brandon Nixon, chief executive officer.

“As long as you have unique data sets, you can train (machine vision) to recognize almost anything,” he says.

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The Driver Shortage: Searching for Solutions

The search for drivers is becoming extremely competitive in today’s market. Many company’s are changing their pay structure, incentives and benefits packages to attract drivers.

Commercial Carrier Journal (CCJ) Digital is working on a three-month series that examines the driver shortage and ways to reduce the impact of this crisis.

Linda Longton of CCJ Digital writes:

Strong freight, tight capacity and surging rates mean conditions for carriers “are approaching their most favorable situation in 14 years,” according to FTR’s Trucking Conditions Index.

Except, that is, when it comes to drivers.

Long a major headache for carriers, in today’s environment, the search for drivers is “getting really, really competitive,” says Gordon Klemp, president of the National Transportation Institute, whose company tracks driver pay and benefits. “In the first two months of this year, the numbers of pay changes — we’ve never had a first quarter that’s even close,” he says. “And the size of some of the changes is pretty impressive.”

Desperate to take advantage of the booming freight market, carriers are offering drivers incentives ranging from higher pay and jumbo-sized bonuses to improved creature comforts and generous benefit packages. While experts say such approaches only encourage turnover, other tactics could provide long-term solutions to some of trucking’s systemic problems. At the same time, increasingly sophisticated technologies are giving fleets more tools to help recruit and retain this scarce resource.

Ask drivers why recruiting and retaining them is so challenging, and three out of four say carriers “don’t pay enough,” according to a recent survey by CCJ sister brands Truckers News and Overdrive. That’s a criticism many fleets are taking to heart: Truckers News has reported more than 25 pay changes since October, and Klemp notes that many took effect immediately. Historically, fleets might announce a pay bump in January but make it effective in late March, he says.

Klemp also expects some fleets that made announcements early in the year to raise pay again, possibly in the third quarter, based on competitive pressures and continuing strength in freight rates. “Pay won’t move unless rates are going up,” he says. Klemp predicts that if GDP is above 3 percent in the last three quarters, pay will be 15 percent higher on Dec. 31, 2018, than it was the prior year.

Alongside pay increases, many fleets are offering attention-grabbing sign-on bonuses. Klemp’s company reports median sign-on bonus amounts in February were three or four times as high as those a year earlier, depending on the segment. While such bonuses are common, many experts suggest any sign-on pay beyond what’s needed to cushion the transition to a new job only encourages turnover.

And sign-on bonuses may not be all that effective — at least for attracting the best candidates. Most veteran drivers “don’t trust them,” says Michael Fisk, director of hiring, marketing and driver development for Roadmaster Group, based in Glendale, Ariz. That’s perhaps why only 2 percent of respondents to a recent Truckers News survey said they would change jobs for a large sign-on bonus.

Fleets in the Southeast that typically lag other regions in terms of pay have announced the largest cost-per-mile raises, Klemp says. “The aggressiveness of pay changes down there might indicate they are hurrying to catch up to their counterparts in the Midwest and Northeast where they bump up against them.” The Northeast is historically the highest-paying region, and pay changes there have been fewer, he says.

Increasingly, fleets are tailoring pay packages to not only attract new talent but also reward existing drivers. K&B Transportation (CCJ Top 250, No. 124), based in South Sioux City, Neb., recently announced graduated pay increases tied to company longevity and starting at zero to six months on up to more than five years. Similarly, Joplin, Mo.-based CFI announced its Experienced Driver pay package in November when “we realized it took too long for our own experienced drivers to reach the top of our pay scale,” says Michael Hinz, senior vice president of sales and operations.

Bringing consistency to driver pay is key, says Phil Byrd, chief executive officer of Bulldog Hiway Express, based in North Charleston, S.C. “Drivers and potential drivers are looking for reliable income — not $1,000 this week, $500 next week,” Byrd says. “They want a predictable weekly income like most people do.” Drivers paid on Bulldog’s “salary plus” receive a salary and then incentives to help them earn above their base.

The growth of Amazon and consumer expectations for next-day deliveries have enabled teams to command large pay premiums, Klemp says, with experienced teams getting “into pretty rarified air” compensation-wise. Some carriers such as Tennessee-based Covenant Transport (No. 39) and U.S. Xpress (No. 16) are offering teams substantial bonuses. Covenant’s program pays $2,000 every time a team passes 60,000 paid miles together, up to a total of $40,000. U.S. Xpress has a similar plan but is offering a $50,000 bonus paid in $2,000 increments and in vacation time over a four-year period to current and future team drivers.

Beyond pay and bonuses, many carriers are looking for creative ways to cut through the recruiting noise and get drivers’ attention. Inwood, N.Y.-based Express Trucking & Courier, which provides expedited high-value shipping, offers free health insurance for drivers and their families with a $15 co-pay through United Health Care — a benefit that Ken Deocharran, Express president, values at $2,000 per month. If drivers already have medical coverage through a spouse, they can use the money to pay for their mortgage, rent or car payment, up to the $2,000, he says. The concept has been well-received, Deocharran says. “We put out an ad, and within 24 hours, 60 drivers responded. … It gave us a competitive edge in the market.”

However, it does little good to raise pay, boost bonuses and sweeten benefits if fleets don’t communicate these changes effectively to potential candidates and their own drivers. That’s where technology plays an increasingly important role. Whether through social media, email or a customized fleet portal, successful fleets use any means available to cultivate relationships with drivers. “It used to be ‘yes’ or ‘no,’ ” says Roadmaster’s Fisk. “Now, if it’s a ‘no’ now, we’re going to stay in touch with you. It has to be relational, where they’re interacting with you as well.”

As carriers deal with the realities of today’s more severe driver shortage, many are looking for ways to be more flexible in their hiring standards while maintaining safe operations, FTR notes in its Trucking Update. Fisk suggests fleets take a more sophisticated approach to hiring. “We constantly assess and reassess how we hire,” he says, evaluating each candidate from an individual perspective.

If a driver had a traffic accident at 19 and now is 35, Fisk considers the current level of maturity and possible change in habits “instead of just having a list of nonqualifiers,” he says. Such flexibility may require implementing additional programs or other requirements for the new hire to be successful.

Meanwhile, despite fleets’ best efforts to recruit each other’s drivers, many are content to stay put. Amid the flurry of carrier pay announcements, last month Truckers News and Overdrive asked drivers and owner-operators how likely they were to change jobs. Forty-seven percent said they have no plans to jump carriers because they are happy with their current employer. Another 17 percent said changing jobs was “just too much hassle.”

Link to story with visuals: https://www.ccjdigital.com/the-driver-deficit-seeking-solutions/

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