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Sunday, March 6, 2011

Commercial Tire Technology- Choosing The Right Tire

   Whether you are an owner operator or a fleet manager responsible for many trucks, you will have several decisions to make in terms of purchasing tires. Today’s tire technology is quite remarkable and it can really pay to do your homework on the subject. Some of the decisions one must make is it wise to run retreads, should I mix and match tires, what brand will give the best wear for the money and what tire tread will be the best for the application. There are also operators that run Super Singles on the steer axle and Extra-Wide tires on trailers rather than tandems.
  
   On the subject of re treading and the cost effective nature of this practice, the short answer is that most operators run retreads for financial reasons. Today’s retread technology is far superior to the days of old when highways would be littered with rubber that had separated from a re treaded tire. There isn’t a set time for the life of a casing but from my research 5 years and beyond seems to be the norm. The fact is that you can save thousands of dollars running retreads just know that they can, and will most likely fail at the worst possible time. It is legal to run retreads on steer axles with the exception of a passenger bus. I personally used to only run virgin rubber on my steer axle and retreads on my drive axles. When my steer axles would run thin, I would then have them re treaded and returned to the rotation to be used on the drive axles. Remember that Federal Law states that commercial tires must have at least 4/32nds of an inch of tread depth remaining. I am a big fan of Michelin’s re tread technology and the fact that retreads are backed up with a full warranty.

   There are advantages to running Extra- Wide tires, like fuel economy, smother ride and less weight allowing an operator to carry more payload. The downside to these wide based tires is quicker wear and re-treadability issues. One of the most promising Extra-Wide tires on the market is Michelin’s X One XDA Energy Tire sized at 445/50R22.5 is positioned to replace traditional tandem applications. Tests have concluded that this tire may save operators up to 7% in annual fuel costs.

   When selecting a Tire brand to use in your specific application, the big four names will serve you very well; Bridgestone, Goodyear, Michelin and Yokohama. All of these manufacturers have their selling points and catch phrases. For instance Yokohama Corporations Boasts The MSC or Maintenance Savings Concept also Stem-2 Strain Energy Minimization Technology which greatly extends a casings life. Another term that Yokohama has come up with is its MC2 Maximized conservation Concept for fuel savings. Goodyear has the patented DuraSeal Technology that incorporates a built-in tire sealant. Goodyear also uses the selling point terms of Armor Max and FuelMAX Technologies.


   Other tire brands that manufacture Commercial tires may be worth looking into and most of these brands can be purchased at Les Schwab dealerships, brands like: Toyo, Ohtsu, Hankook, Gladiator, Firestone, Double Coin, Freestar, TBC Triangle and Continental. To re-cap, doing your homework in regards to running the correct tires is critical to a healthy bottom line. Prepare a tire program and implement this plan to get the most and safest road miles from your tire purchases.

Sunday, February 20, 2011

Flat Rate Or Mileage?



When operating an Oregon authority whether you are an Intrastate Carrier or Interstate Carrier with an IRP License you will be assessed road fees in the form of the weight/mile Tax. The decision to pay road taxes as a flat rate or based on mileage is a very critical decision. As of October 2010 all road assessments went up across the board. Oregon DOT encourages all carriers to use the Trucking Online website to pay road taxes and to make sure there are no mathematical errors when reporting.


To give you an example of how much these road fees have climbed to, a unit that is licensed for 80,000 lbs will pay approximately $16.00 for every 1000 miles traveled. As I have stated earlier it is critical to make the best decision as to how you will pay road fees. How many miles your company runs isn’t the only consideration, but generally those operations that run a lot of miles will save money by paying a flat rate. When registering your power units for flat rate you must also declare a commodity to be hauled. Any time your vehicles haul something that is not the declared commodity you will be subject to pay fees based on mileage for that commodity. Carriers are only allowed to change the status of how they pay road taxes once per year, you cannot go back and forth based on jobs that require that a lot of miles be logged.


For you heavy haulers you will be required to pay an additional annual extended weight permit in addition to be charged by axle weights. Remember that flat monthly fee reports are due by the 10th of every month and payments are to be included. A late report not postmarked by the 10th of the month will be subject to a 10% fee.


I highly recommend using MCTD (Motor Carrier Trucking division) Trucking Online website. Simply enter you Oregon mileages and the program calculates all fees error free and allows for direct payments. You can keep abreast of your account and make changes online really saving time and money.

Saturday, February 12, 2011

Fuel Saving Tips For Fleet Managers

   Fuel expense is the number one expenditure in any type of trucking business no matter the size. I have several fuel saving tips that may be helpful in protecting your companies bottom line. If you are the owner of a single truck operation or a fleet manager at a much larger transportation business the fuel saving tips I suggest may very well help in saving thousands of dollars per/year.


   In no particular order there are many actions you can take to save fuel in a trucking operation. Institute a tire program that includes proper rotation and more importantly correct tire inflation. Each tire that is under inflated by 10% can reduce fuel economy by about 3.3 %. When purchasing tires keep in mind that ones that have the least rolling resistance will save the most fuel. Did you no that worn tires get better fuel economy than new tires by approximately 7%?


   Setting an idle shutdown on every truck in the fleet at about 6 min will ensure that precious fuel isn’t being consumed while the engine idles. A big rig burns about ½ gallon of diesel per/hour, which can really add up in larger fleets. You should also install or program engines to be governed at a top speed of 62 mph. Your drivers may not like this reduced speed limitation but in most states the commercial truck speed limit is only 55 mpg.


   Have you ever heard of air tabs? There are a couple of companies that manufacture a stick on plastic device that improves vehicle aerodynamics. These devices are placed 3 per-linear foot and have proven success-reducing drag on tractors and trailers.


   Another great tactic that has helped the company I work for save many thousands of dollars on fuel is to purchase diesel in lots locking in prices now on the assumption prices will rise dramatically in the future. This concept in fuel purchasing is not unlike trading futures for corn or any other commodity. Just be careful because buying fuel in lots can backfire as well, when the fuel prices begin to fall you may end up paying more for the fuel that has previously 
been locked in at a higher price.


   The way that your drivers operate the vehicle is huge in saving or wasting fuel. We know that we have controlled the speed issue with engine governors but lets look at shifting habits. It is proven that progressive shifting improves fuel efficiency. Basically progressive shifting is the act of up shifting into higher gears as soon as possible allowing the big rig to achieve maximum speed sooner; diesel engines are designed to produce more torque at lower rpm’s. Also when training your drivers to use progressive shifting techniques have them use cruise control when applicable road conditions allow. Cruise control saves fuel.


   I think I have offered some valid advice on how to increase fuel economy in trucking fleets, lets re-cap:


· Tires- Proper Inflation And Rotation
· Idle Shutdown Timers
· Air-Tabs- Increase Aerodynamics
· Purchase Fuel In Lots
· Progressive Shifting Techniques
· Cruise Control
· Use Of Engine Governors 


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TheTruckersReport.com

Wednesday, February 2, 2011

A Focus On Compliance Issues

   Running a trucking company regardless of the number of employees must be compliant with all sorts of regulation to remain legal and viable. There are many issues that must be covered and conveyed to your staff and employees that a required by the state corporate division, O.D.O.T, Federal Motor Carrier Safety Division, O.S.H.A and the Department of Environmental Quality to name a few. It can be somewhat overwhelming to keep track of all these trucking compliance issues. I strongly suggest that you owners assign one individual to be the safety/compliance liaison. If you a very small trucking company with less than 10 employees than you as the owner or CEO may have to wear several hats. For instance my wife and co-owner of our Dump Trucking business was the secretary and treasurer who also dealt with payroll and compliance issues.

   If your company is incorporated there is the matter of keeping Corporate Minutes and holding an Annual Shareholders Meeting. To remain solvent as a corporation you must comply with the requirements from the State Corporate Division even if that only includes a wife and husband. The beautiful thing about this requirement is that the state doesn’t specify where the annual shareholders meeting must be conducted. Plan a weeklong trip to Hawaii or some other sought after destination to hold your company’s Annual Shareholders Meeting. As long as you can prove to the IRS that this meeting occurred during that time period and there was an agenda and corporate minutes were recorded than it’s very possible to write off most of your trips expenditures. (Check with your accountant on all tax ramifications) Corporate minutes don’t have to be a complicated thing at all. In our business we simply kept a 3-ring binder and labeled it Corporate Minutes. Any time there is a meeting or change in the companies procedures simply type up what has transpired and place a copy in the binder. For a full list of Oregon’s corporate requirements go here.

   Here is a list of a few key issues that your new compliance assignee may need to follow or implement:

  • Truck Licensing: plate renewal including IFTA (International Fuel Tax Agreement) placing decals and reprinting licenses.
  • Special Licensing i.e.: overweight and over size permits, running out of state, base plate changes (apportioned)
  • Weight-Mile Tax Reporting
  • Trusted Carrier Status- (obtaining transponders)
  • Adding vehicles to the fleet
  • Dealing with tickets and road use assessments
  • Fleet Safety – Personnel Safety-Holding Safety Meetings
  • Maintenance Programs
  • Fleet Insurance Issues
  • Scale Crossing Reports

As you can see the compliance person will hold a very important position within the trucking company with a lot of responsibility, finding the right individual is key in running a successful trucking business.

Sunday, January 23, 2011

CSA 2010 Could Threaten Your Livelihood As A Driver

                  

   Is your trucking company ready for CSA 2010? Have your employees been trained on the changes that CSA 2010 will bring in terms of enforcement and the effect this new system will have on their livelihood?

Monday, January 17, 2011

Want To Drive A Big Rig ? Read This First !

   Have you ever seen a big rig rolling down the road and thought it would be cool to learn how to drive one? The simple answer is yes it’s a real kick being behind the wheel of a class "A" vehicle. In most cases you will need to enroll in one of many commercial driving schools. In my case being a delivery driver I find that it’s the driving commercial vehicles brings me the most pleasure. First off I am in awe of the design and capabilities of the modern commercial vehicle. I also like sitting up higher than the rest of traffic and garnering some respect from what we call “4 wheelers“.


    Another aspect I enjoy is the challenge of the job, driving safely through all sorts of traffic and weather conditions. We as drivers also have to be able to put that trailer nearly anywhere you might imagine and even some places you wouldn’t. Like most jobs, driving has its ugly side as well. Drivers are responsible for being  knowledgeable and compliant with the latest DOT regulations. There are times when driving really becomes a chore and fatigue sets in on many occasions. For those over the road drivers they have to basically sleep in their trucks and eat and shower in endless truck stops, making it very hard to get away from the job.

   If you have weighed all the options and being a commercial driver is something you may want to pursue then you will need to get a CDL- (Commercial Drivers License). Depending on what type of driving you will be doing endorsements on that license may apply as well. Whether you may be purchasing or leasing a truck or become a company driver, the CDL is a requirement. Once you pass all the truck driving schools requirements and get the CDL then it’s yours for life unless you do something to lose it. *NOTE see my article on CSA 2010.

   In my case I learned how to drive from a relative and then used a third party tester to administer the test off site from the DMV. At some point in this process you will need to choose which commercial driving school to enroll in. some determining factors will
include:cost, geographic proximity, safety record and job placement percentages. Here in Oregon I can recommend a couple of commercial driving schools; IITR Truck School was founded in 1985 and has 5 locations here in this state; tuition and registration come to $4,700. Another training option I recommend is Western Pacific Truck School Of Oregon. This truck driving school has financing and a 96% post graduation placement rate.


   I live in Oregon and I can speak only to what is required to start a trucking business in this state. The state of Oregon  MCTD (Motor carrier transportation division )assesses more fees and road taxes than any other state. Suffice it to say that starting a trucking business in oregon will be a costly venture. If you have your mind made up then you first should look at all the state requirements that must be met to operate in Oregon.

Friday, January 14, 2011

Unified Carrier Fees

   If you own one truck or have a fleet of them it's time to pay up. The Unified Carrier fees are now due. O.D.O.T. will begin it's roadside enforcement starting February 1st. Fees vary depending on the fleet size so check with the motor carrier enforcement for what you owe. This is a one time annual assessment that can easily be paid online at www.ucr.in.gov . Failure to pay the your Unified Carrier Assessment could result in a hefty fine of up to $472.00.
   Even though Oregon is not participating in the program they still must enforce UCR requirements  which is provisioned in the FMCSR handbook.