Transportation Update

September, 2009

EDITORIAL FEATURES
• FoodBusinessNews – October 13 issue features Portion Control and New
Technology Update
• Food Logistics – October issue features Warehouse Automation and distributed at
the National Industrial Transportation League Trans Comp 2009
• Land Line – November issue features What Preventive Maintenance can be
Stretched and How
• Logistics Management – October issue features 10th Annual Shipper of the Year
Award and distributed at the APICS Conference
• Modern Materials Handling – October issue features Top 20 ADC Suppliers
• Overdrive – October issue features Pride & Polish and New Paths for Parts
• Over The Road – October issue features Dedicated Drivers
• Purchasing Magazine – October issue features Supply Chain Manager of the Year
and Top 50 Contract Manufacturers’ Report
• Transportista – October issue features Fuel Surcharges and Reefer Maintenance
• Transport Topics – September 28 issue features Cargo Refrigeration and
Technology Trailers
• Trucker’s Connection – October issue features History of the Brooklyn Bridge
• Truckers News – October issue features In-Cab Gadgetry and Driving in Snow
and Ice

NEWSPAPER SPECIAL SECTIONS

Arizona Republic Transportation/Driver September 6

CONFERENCES AND SEMINARS

American Trucking Associations Technical Advisory Group Meeting
September 8–9
Linthicum, MD

Truckload Carriers Association Independent Contractor Division Meeting

September 11–12
Chicago, IL

Big Iron Classic

September 11–13
Kasson, MN

National Electric Contractors

September 13–15
Seattle, WA
American Trucking Associations Fall Meeting & SuperTech
September 14–17
Raleigh, NC

North American Trailer Dealers Association Trade Show & Convention

September 18–20
Louisville, KY

Commercial Vehicle Safety Alliance 2009 Annual Conference

September 19–24
Baltimore, MD

Council of Supply Chain Management Professionals

September 20–23
Chicago, IL

American Trucking Associations 2009 Management Conference & Exhibition

October 4–7
Las Vegas, NV

Truck Show Latino

October 17–18
Pomona, CA

LAYOFFS

Bell Helicopter laid off 30 Tarrant County workers as a result of the current
downturn in demand for commercial aircraft. Seattle Times

Continental Airlines has announced another round of job cuts and that it will begin
charging a fee for luggage. The airline, which cites declining traffic, posted a $213
million second-quarter loss. New York Daily News

Scandinavian Airlines System, after posting its seventh consecutive quarterly

loss, has announced it will cut as many as 1,500 jobs in order to cut costs. SAS, like
other passenger carriers, faces a declining demand for air travel. Bloomberg

TRENDS

Green Footprints
A growing trend starting to exert influence on truck specifications is corporate
"green" initiatives to reduce a company’s carbon footprint and greenhouse gas
emissions. These initiatives are being felt at major truck fleets such as Wal-Mart,
UPS, FedEx, and Coca-Cola. Corporate green initiatives often go hand-in-hand with
fuel reduction initiatives. Many fleets are looking to offset petroleum usage with
biofuels. Biodiesel is growing in popularity with truck fleets since it requires no
modification to the truck engine and can be applied toward meeting EPAct mandates.
Also, more nontraditional trucks, such as hybrid trucks, will enter the market.
Driver Ergonomics
The aging work force will impact the design of utility crew work trucks. Ergonomics is
playing a greater role in upfitting decisions to minimize Workers’ Comp claims. The
aging workforce is also significantly influencing work truck design. More fleets are
specifying low-profile chassis, which make it easier for drivers to enter and exit, and
equipment, such as hydraulic-assisted drop-down ladder racks, liftgates, and slide-
out beds.

"The ergonomics for entering and exiting bodies easier is designed with more steps,
grab handles, etc. Lift-gates and small cranes are added to lift heavy items," said
Bob Shipp, national truck sales manager – northern zone for ARI.

"Fleets are supplying drivers with safer trucks such as low-profile spec chassis, which
are easier for the driver to get in and out; and equipment, such as hydraulic-assisted
drop-down ladder racks, which are less dangerous and easier to use than
conventional ladder racks. Safer chassis and equipment are usually more expensive
up-front, but fleets may save over time because safer trucks and equipment help
reduce driver accidents, which reduces driver downtime and Workers’ Compensation
claims," said Mike Corchin, manager of truck business development for Wheels Inc.

"In addition to choosing safer vehicles and equipment, truck fleets are upgrading
company fleet policies to be sure they are aligned with all safety regulations."
"One particular vendor we work with spends much of the consultative process
working with our clients on driver safety and ergonomic issues. How many times
does he bend, from what angle, and from what height?" said Greg Carson, director of
operations for Union Leasing.

Driver & Technician Shortage

Fleets continue to struggle with a shortage of CDL drivers. In fact, demand for CDL
drivers is greater than supply. For a number of years now, there has been a driver
shortage, which is forecast to become even more severe.

"With the driver shortage continuing to worsen, automated manual transmissions will
become more commonplace as they are somewhat cheaper than an Allison
automatic," said Jeff Robley, national truck sales manager – western zone for ARI.
More stringent security requirements are also impacting the available labor pool of
truck drivers.

"Recent hiring restrictions and the shrinking of the labor pool will continue to push
driver compensation higher," said Ken Gillies, manager, truck operations for GE
Capital Solutions Fleet Services. "The demand on a fleet to find and retain competent
drivers will continue to be a hurdle." Another industry-wide labor issue is service
availability relating to the continuing shortage of qualified (and properly trained)
maintenance/repair technicians.

Maintenance turnaround and decreased downtime will become a greater issue as the
shortage of qualified service technicians becomes more exacerbated in the coming
years. In addition, technologies employed to meet the 2007 and 2010 emission
regulations require technicians to have a higher skill set since maintenance and
repairs have become more complex.
"The technologies employed to meet the 2007 and the upcoming 2010 emission
regulations add to the complexity as well as place additional strain on parts
inventory. Both loom large for their effect on up-time," said Gillies. "Operating
margin pressure will certainly continue to increase and the right-sizing of a fleet
serves to continually pull spare truck availability out of fleets. It is simply one more
factor that ratchets up the delicate balance of technician-to-vehicle ratios."