Inside this Issue Breaking Through on New Fuel • 10 Eleven Members Recognized • 14 2023 Convention Service • 22 June 2024 Suppliers Talk CLEAR Transition • 10 President Floats Bylaw Changes • 14 An Introduction to FELIX • 16 Life is a Highway
Copyright 2024, National Star Route Mail Contractors Association All rights reserved. No part of this monthly publication may be reproduced – either wholly or in part – without the express permission of the copyright holder. 8521 Leesburg Pike, Suite 350, Vienna, Virginia 22182 • Toll Free 1-866-543-1661 • (202) 543-1661 • www.nsrmca.org National Executive Board Member at Large Tony Davis Davis Mail Services (844) 864-1767 [email protected] Member at Large Nina Dittmar Marathon Mail Service [email protected] Jack Khudikyan President AJR Trucking [email protected] Eastern Region Vice President Lisa McAbee McAbee Trucking (864) 491-3576 [email protected] Managers PNT - George Rood (330) 502-2023 [email protected] LDT - Vacant CDS - Janelle Hankins [email protected] Central Region Vice President Larry Stough Sodrel Truck Lines (812) 282-7941 [email protected] Managers PNT - Tom Brandtner [email protected] LDT - Terry Leckel [email protected] CDS - Paul Millan [email protected] Suzan Porter Vice President C Blackburn, Inc. (845) 756-2261 [email protected] Jami Sweeney Secretary-Treasurer Katlyn, Inc. (301) 643-0212 [email protected] Southern Region Vice President Jeff Lepak Louis V. Lepak Trucking Co., Inc. (405) 236-0944 [email protected] Managers PNT - Ed Zengel, Jr. [email protected] LDT - Tony Davis [email protected] CDS - Cindy LoRusso [email protected] Acting Western Region V.P. Dan Rackley Blue Eagle Contracting, Inc. (530) 272-0287 (Ext. 201) [email protected] Managers PNT - Albert Rosette [email protected] LDT - Joshua Stoneback [email protected] CDS - Randy Weber [email protected] Caribbean Region Vice President Andry Aguirre Usuga A. Aguirre Transport [email protected] Northeast Region Vice President Richard Salanger Salanger Trucking LLC (315) 422-8867 [email protected] Managers PNT - Dwayne Andreasen [email protected] LDT - Kalib Carmichael [email protected] CDS - Jim Jennings [email protected] 2 NSRMCA
Editorial Managing Editor: Cameron Ayers Staff Writer: Landon Stamper Contributors: Sean O’Connell, Gary Wollenhaupt Production Layout: Landon Stamper & Cameron Ayers Printing/Distribution: Heritage Printing Photography Cover/Back/Feature: Adonis Digital CONTENTS The Star Carrier • Vol. 75, No. 6 From the Executive Director 4 President Floats Bylaw Changes 14 Meet FELIX, Breakthrough’s Tool for Tracking CLEAR Fuel Rates 16 Legal Corner Jonathan Todd 26 President’s Perspective Jack Khudikyan 32 Meeting Notices 33 News & Columns Features Top 9: Budgeting Tips 18 Member Spotlight: Richard Salanger 20 Used Truck Sales Summary 22 Legislative Roundup 24 NSRMCA Rewind 28 Upcoming Events 33 DOE Fuel Indexes 36 CPI-W: CDS Contractor Index 38 Top Stories Stories From the Road: Cowans’ Past Prepared Him for Delivery 6 Transition Gets a Bit CLEAR-er 10 JUNE 2024 3
From the Executive Director Gregory R. Reed [email protected] (202) 543-1661 Dear Star Carrier Readers, Unlike other issues of The Star Carrier, this issue was finalized from the “crossroads of America” — the state moto for Indiana — as a significant component of the United States Postal Service ecosystem gathered at the 2024 National Postal Forum. Remarkably, I found myself in a similar position three years ago. In August 2021, NSRMCA hosted its national convention in the same location at the JW Marriott in downtown Indianapolis. Then, as now, the state motto seemed remarkably poignant. While the full scope of the Delivering for America plan, particularly as it pertained to transportation contracting strategies, had not yet come into focus, the association was looking at its own future. The commitment and effort of industry leaders, like John Sheehy, and the strength of longstanding relationships between members helped ensure that the association remained a valuable resource for transportation suppliers. But the association had made few investments over the preceding 20 years to support suppliers. Consider the following. When I joined as the executive director in May of that year, the association did not use email to communicate with the transportation supplier network. The website was defunct. The only material that the association sent to the entire supplier network via the Postal Service was a presumptive bill for membership dues. And The Star Carrier, although informative, underserved the industry. Worse still, the association had built a reputation that it did not support all suppliers, particularly those that were small or did not have a connection to an active, longstanding member. Even the association’s Capitol Hill engagement, which some thought was its most important role and upon which previous Postal Service administrations had relied, was inconsistent and directionless. Today the association is radically different. It has professionalized and provides an unprecedented amount of support to suppliers. Under President Jack Khudikyan’s leadership, even more support is on the way. And the association has managed to do this while also navigating a rapidly changing Postal Service. But the work is not done. Like this year’s National Postal Forum — “connecting at the crossroads” — the upcoming NSRMCA National Convention will be a time for suppliers to weigh in on the association’s mission, how it can further support suppliers, and its role in the pivotal year ahead. NSRMCA and its leadership is eager to hear from suppliers, both members and nonmembers. This is your association. With your involvement, it can be better and together we can all be more successful. Sincerely, Gregory Reed 4 NSRMCA
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While some men tunefully claim to wear a cobra snake for a necktie and others are merely born under a bad sign, Tony Cowans says he was born “with a wrench in my hands.” A natural mechanic, Cowans credits his supportive upbringing for getting him to where he is today: president of Cowans Trucking for the past 25 years. “My mom and dad made me who I am as a man and I had a lot of challenges,” Cowans says. “I have to give God the praise too, of course. Whenever I had a challenge and found myself struggling, God always blessed me to come safely through the storm.” Family Roots Cowans has always called Olive Branch, Mississippi, home. The sprawling suburban community is less than a half hour drive from Memphis, Tennessee, which offered him enough wide open spaces to run around as a kid while his family was within arm’s reach of the By Sean O’Connell Stories From the Road Cowans’ Past Prepared Him for Delivery 6 NSRMCA
metropolitan hustle and bustle. “All my life I’ve been here,” he says happily. “My mom went to Memphis to give birth, but that’s about as far as we got. We are from humble means and a small family. Growing up, it was just me and my two sisters.” While his immediate family wasn’t terribly large, Cowans’ extended family is another story. “My dad had a big family,” he says. “My mom had a big family. He had nine sisters and brothers. My mom had eleven sisters and brothers and I was the first grandson on my mom’s side. There’s a lot of us.” The sheer size of his extended family meant he couldn’t leave the house without running into an aunt or a cousin, but it also meant there were always cars around for him to tinker with. Burning Rubber It was Cowans’ father that started his lifelong fascination with mechanical devices, instilling in him a determination to finish the projects he embarked on. “I was about five or six when I was taught how to build a motor,” Cowans recalls. “I was out there building truck motors on my own. I was a curious child. I liked to try new things. I always wanted challenging things. I’m a high energy type of person so I need to have a lot of stuff going on to burn that off.” Cars quickly became his passion. As a teenager, Cowans took up racing, building and driving hot rods for drag races. Cowans has long since given that up, preferring to get his drag racing thrills vicariously from the relative safety of the bleachers. All that car knowledge prepared Cowans for a life on the road. While the speeds got slower, the tracks got a lot longer. Hittin’ the Road He started out doing construction work, hauling gravel and delivering to concrete plants. He also started hauling mail for other contractors, which he did for nearly a continued on page 8 decade, setting the table for his full-time move into postal contracting in 1999. “Work got slower and the pay was getting lower” he says. “I needed something that worked and after some time working in the post office, I came up with the bright idea that I was going to get a mail contract.” Given his past experience, Cowans was familiar with the labor required to keep up with a never-ending supply of mail, and his ability to keep a fleet of vehicles up and running was a tremendous asset. “I had a friend who helped me look over the contracts and write them,” he says. “He taught me how to write the contract and I learned basically on my way. It came naturally. You have to be dedicated to keep up. It takes a certain kind of person. You have got to be on point at all times.” After getting his first contract, located in his hometown of Olive Branch, Cowans eventually expanded to the four LDT contracts he currently has. “It’s a nice little route,” he says. “You see some nice country scenery. There’s some seasonal weather like tornadoes in and around April and May which can get treacherous, but overall, I can’t complain.” While it is not unusual for Cowans to deliver to the many urban landscapes around Tennessee and Georgia, it’s the surrounding countryside that has provided him with some of his most memorable deliveries. Most notably, chickens. “The outcome for the chicken isn’t too good in the end, but I have got do my part,” he says. Man of the House Cowans settled down near his parents, got married and raised two kids on the strength and reliability of Cowans Trucking. “I’m a family man,” he says. “I wanted to provide for others. Not everybody gets to have that opportunity. You have to take it seriously if God blessed you with that opportunity. You want to make money but also you’ve got JUNE 2024 7
Stories Continued to think about the responsibility and opportunity that you get. If I can make things better, I always feel like that that’s a good thing.” Growing up, Cowans “saw how hard my dad worked to provide for us while my mom kept me and my sisters grounded with a proper upbringing,” and he wanted to do the same when he started his own family. He calls his wife his backbone, saying “she’s my main support.” Throughout the year when not tending to business and driving the occasional route, Cowans dreams of beach vacations. It’s a more than a five-hour drive from Olive Branch to find a bit of sand and surf, but he’s always been drawn to the lifestyle, whether it is off the Gulf Coast or the breezy Atlantic shores. His dream vacation is to go to Hawaii and as a kid he considered moving to California, trying his luck on the West Coast. Instead, Cowans stayed local, keeping up with his family and helping to care for his mom after his father’s passing twenty years ago. “My dad said you can do just as good at home [as] a thousand miles away and he was right,” Cowans recalls. Cowans’ easygoing demeanor never seems to waver. He is considerate and appreciative of every moment and looking for many more years and contracts. “The mail goes 24/7, 365 days a year,” he says. “Once you stop for two or three hours, you are right back at it again the next morning. There’s no such thing to me as junk mail. It’s all important and it just keeps coming.” Tony Cowans takes a phone call while sitting at his desk. (Photo by Adonis Digital) 8 NSRMCA
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Transition Gets a Bit CLEAR-er While the CLEAR transition still has its share of teething problems, carriers that are farther along in the process have come to appreciate some of its features. Now over a year and a half into the migration process, carriers continue to describe challenges. But they’re also seeing unexpected benefits to using the platform. Dwayne Andreasen, who heads DDA Transport in Londonderry, New Hampshire, noted that the system provides greater visibility into trips and payments. “Now we know what we’re getting paid for, which never happened in the past,” he said. “It’s a good system, and it should have been that way a long time ago.” That’s not to say the migration of DDA’s 16 contracts has been a smooth ride. “Some went OK, but the last one” caused issues, said Andreasen. “The post office sent them out at the very last minute, didn’t send all the information you needed, and didn’t allow you to make any rate adjustments.” He noted that the system started to live up to its billing once the company got its transportation management The pieces are slowly coming together. (Photo by Gerasimov174, courtesy of iStockphoto.com) By Gary Wollenhaupt Challenges Persist, But Suppliers Report Some Positives 10 NSRMCA
system (TMS) system integrated with its electronic logging device (ELD) system. “Once we put those tools in place, it actually seems to be working pretty well,” Andreasen said. Tight Deadlines and Schedule Changes Chris Hartfelder, operations manager for JenBar Trucking in Baldwinsville, New York, gave a similar account of the platform. The first of the company’s eight contract migrations had a few bumps, after which things began to smooth out until fairly recently, Hartfelder noted. He responded quickly to a USPS request for information, but the contracting agent didn’t answer him promptly, so they had to update the numbers. Once, Hartfelder was out of the office for a week when a request came in, and he worked remotely with his team to meet the deadline. “If you’re a small shop and you are out of the office and don’t have anyone else capable of doing the number crunching, it could be hard to respond in time,” he said. In later migrations, allocating costs across trips while keeping the same total costs was no longer possible, he said. Also, the concurrent conversion to the Breakthrough Fuel program changed per-trip mileage estimates for the company. “So, you’re not only converting from an annual contract to a per-trip model, but you’re also stacking these other conversions at the same time; it just made it more difficult,” Hartfelder said. Despite these myriad issues, Hartfelder appreciates that the CLEAR portal displays the contract rates. “That’s actually kind of nice; you can see your rates and confirm things,” he said. He also noted that the disparate systems don’t share information in a way that inspires confidence and still require manual management. For instance, if a trip is canceled, the information must flow to five different systems, including Blue Yonder, forecasting, and the carriers’ internal systems, such as payroll. Any trip changes have to be tracked across the system. There’s still a learning curve to reconcile payments against trips, so dealing with exceptions like late slips and vouchers is more challenging. Traditionally, route schedules have been mostly fixed, so carriers’ operations are built around that level of stability. Drivers may have gone months without a schedule change. No longer. “When you have to change things with a trip, it’s a bit of a manual process to update all those pieces and get them to flow through from the automation standpoint,” Hartfelder said. When Worlds Collide “A manual process” also describes much of Josh Stoneback’s experience with CLEAR. Stoneback, president of Hi Pro in Twentynine Palms, California, noted that the company’s TMS is not yet connected to the Integrated Logistics Ecosystem, so schedules and manifests are coming in by email and must be manually loaded into the TMS. From there, a driver and truck are assigned, which is then communicated to the local operations manager. That means payments aren’t yet automated, either. Stoneback said about half of the company’s contracts now run on CLEAR. “We’re using everything the postal service had done in the last five or six years, so nothing is the same for all our contracts,” Stoneback said. He added that as more carriers are transitioned over to CLEAR, they will see the benefit of everyone using the same data to eliminate disagreements about late slips and extra trips. “It’s so easy to nip that kind of thing in the bud with this continued on page 12 JUNE 2024 11
technology,” Stoneback said. “There really are a lot of positives.” He expects Hi Pro to be fully automated by the end of 2024. Future Recommendations Carriers that have gone through the migration process recommend developing a robust internal cost database. That will help if you have to convert a contract quickly and will provide a baseline for negotiations in future contracts. In the CLEAR system, the underlying costs for a contract are rolled up into a single number without line items for individual elements like trucks, labor and fuel. Cost sheets are used for reference when developing the rates for current routes undergoing migration. In the future, today’s cost sheets will be outdated and not much help in negotiating rates for new or re-bid contracts. At JenBar Trucking, Hartfelder is developing an in-house trip cost calculator to support future negotiations. “We’re starting with a clean slate to plug in our numbers and come up with a rate we can support as we diverge from the legacy contracts,” he said. Ultimately, the CLEAR program will also benefit carriers. “The CLEAR program is putting all suppliers in a position to be a better supplier, not only for the USPS but for the companies to be better transportation suppliers for the future,” Stoneback said. Transition Continued Fleet$avings Financial Preparation for USPS Contract Awards Specializing in Solutions FUEL CARDS • Pay once a month • Fuel up virtually anywhere • Supports Cost Plus/Retail Minus “Better of” Pricing with Point of Sale Discounts FINANCIAL SERVICES “Tap In When You Need It” Program: Monthly Cash Advances on Your USPS Contracts or Freight Bills! Call Today To Start Saving Now (423) 463-3690 or visit us on the web at www.fleetsavings.net WORK COMP INSURANCE National Preferred Pricing with A-Rated Companies with NO DOWN PAYMENT, NO DEPOSIT & NO YEAR END AUDIT. EQUIPMENT Sales, Leasing and Financing Available 12 NSRMCA
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President Floats Bylaw Changes By Landon Stamper NSRMCA President Jack Khudikyan plans to introduce a number of bylaw changes during the National Convention in Orlando. These proposed changes — which Khudikyan discussed during the Eastern/Southern region meeting May 16 in Washington, D.C. — cover everything from member benefits and the association’s regional structure to how dues are allocated. All changes must be ratified by the delegates to take effect. One of the most notable bylaw revisions involves membership tiers, with the president opining that “if you’re paying more in tiers, then you should be getting more benefits.” “Before, when we used to have max due members, it was cut at $7,500 and that would count as one member,” Khudikyan said. “Now, we might have a consolidation of companies or whatnot, but now they’re maybe paying $21,000 in fees. If they’re paying three times more than [in] the past, then they should be counted as technically three members, and [their] region should have more delegates because of that.” Combining Regions Khudikyan also proposed merging the Eastern and Northeastern regions for more proportional representation. “All the other regions we have are about 60 to 70 members, and East and Northeast are about 30, 35,” he said. “So, I think aesthetically, combining them together, making it at the size of the other regions is a great idea.” He also would like to see the Caribbean added to the Southern region to make sure the Caribbean members are getting the information and representation they need. “I think if we, in the bylaws, state the Southern will have a LDT, PNT, CDS and a Puerto Rico manager, they’ll make sure they have representation,” Khudikyan said. However, Khudikyan stressed that he wants to have the same number of board members, so he is proposing adding two at-large spots to replace the two regional vice president slots going away. National Office Funding The issue of regional funds was also brought up by Khudikyan. Using the annual Las Vegas conference as an example, Khudikyan said that under the current system, the NSRMCA national office spends the money to put on the meeting, but the Central and Western regions get to keep some of that. He would like to see most of that money go to the national office instead. The president also suggested a back-pay system to incentivize continuing membership in the association. He explained that currently there is no way to keep people from joining every other year and reaping the benefits that annual members paid for. “‘Oh, this year, I didn’t get my one renewal and I can’t pay dues, but I’ll join next year.’ They still get the benefit of what the association does,” Khudikyan said. “So, we’ve got to stop that in and out. It’s either you’re committed to the association for the future of your company or you’re not.” “This is your association; we’re not here to take your money and run with it,” he concluded. “If you can’t afford it, we’ll work with you, but stay engaged, stay a member, and we’ll figure out the dues structure later. But we still need that capital to [do] the work we’re doing.” Khudikyan noted that these proposed changes were suggested to him; they’re now in front of the new membership committee. “These are not my suggestions; these are just me hearing everybody and trying to put these suggestions out there, and the committees are going to decide and think about them. So, this isn’t a totalitarian regime. [I’m] giving the power back to the members and saying, ‘you guys join the committees, and you decide what you want to do.’” 14 NSRMCA
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Meet FELIX, Breakthrough’s Tool for Tracking CLEAR Fuel Rates Prepare to meet FELIX, Breakthrough Fuel’s online portal. And if any of your contracts are up for renewal, you’re about to get a lot more familiar with it. FELIX — or Freight, Energy, Load, Information and eXperience — is the company’s online portal for shippers and carriers. It’s also where USPS is directing LDT and PNT contractors to plot out fuel calculations for their routes, as part of its move away from the Department of Energy’s fuel indexes. Tom Brandtner of Traffix and Joshua Stoneback of Hi Pro demoed the system recently to NSRMCA members at multiple spring meetings. The web portal (https://askfelix.com/login) requires basic information to calculate per-route fuel rates, such as the starting and end points of the trip, the fuel type and the category of truck. Of note is that the fuel rates listed — which are based on rack wholesale costs combined with fuel taxes, transportation costs and environmental fees — can vary depending on the direction of travel and when you make your calculations. “When you go to a new [fuel rate] lookup, you have to work in the past,” Brandtner said. “Every day the fuel [rate] is changing.” Brandtner also noted how the Breakthrough Fuel migration is happening concurrently with the CLEAR contracting switch for many contractors, and the combination “works pretty seamlessly.” Unfortunately, some contractors are being ushered onto the platform while still on TCSS contracts, which forces them to enter the information manually. “Using Breakthrough Fuel on a TCSS contract … everything is manual,” said Stoneback, the president and CEO of Hi Pro. “Reconciliations are manual and payments are still manual. And you have to go through Keith Harris and his office in order to make sure those payments are paid on time.” Brandtner said that Traffix has multiple contracts still on manual, and making it all work requires a “weekly cadence” with Breakthrough, “where we’re validating rates with the Breakthrough team. They’re coming back saying yes or no or what have you. We discuss that and then we go ahead and forward that file over to the postal team.” Stoneback concurred, saying “it’s a constant process. It’s not one meeting. It takes a lot of communication.” Both noted the potential long-term benefits to carriers in learning the system. Brandtner encouraged attendees to think of this as an opportunity to diversify their businesses, as “this platform is not unique to [USPS]. There are a lot of large shippers” that use it, including Walmart and Target, so “having familiarity with this type of platform will be beneficial.” Stoneback encouraged members seeking a demonstration of FELIX to contact Adam Schaefer, Breakthrough’s client account manager via email ([email protected]). By Cameron Ayers 16 NSRMCA
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T op 9 Budgeting Tips : 1.) Add up all your income. Find that big number but don’t get too attached because most of it will go elsewhere. 2.) Determine your fixed monthly costs. These are your expenses that change very little throughout the year: rent, salaries, vehicle payments. Multiply this number by twelve for your annual reliable costs. Monitor it regularly to make sure it’s on track. 3.) Determine your variable costs; weather-related expenses, gas prices. Find the average monthly cost and multiply by twelve. 4.) If you find that 12-month calculations are insufficient to see you through the lean times, consider switching to a 13-month expense calendar to ensure there’s always something in reserve. 5.) Be conservative with any surplus. Expenses ebb and flow. 6.) Determine the miles put on your vehicles. Calculate how many of those miles could be considered revenue miles. This shows you the true costs of your vehicles and highlights an opportunity to reduce spending by shortening unnecessary distances. 7.) Keep track of deadlines. If you have rollover contracts, it is unlikely that they are skewed to benefit you. Watch carefully as clerical mistakes can be painful. 8.) Consider marketing. Whether that means full page ads in trade magazines or a Little League banner, it is beneficial for companies to have name recognition and community involvement. 9.) Keep employees happy. A good working environment ensures reliable employees, and the occasional company event can go a long way toward making people happy. Business ownership is all about your bottom line. Unbalanced contracts and an overconfidence in the stability of one’s fleet can prove costly. These nine tips will help you see the bigger picture and make it work to your advantage. 18 NSRMCA
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CDS SPOTLIGHT Cindy LoRusso VITAL STATISTICS LOCATION: ORLANDO, FLA. CONTRACTS: 4 EMPLOYEES: 6 VEHICLES: 8 STARTING YEAR: 1994 MEMBER SINCE: 2004 MILES DRIVEN ANNUALLY: 10,000 OCTOBER 2023 1 What’s Your Hidden Talent? I can rock a mic at karaoke! What Does Your Family Think of Your Work? Ask them when their shifts start. All of them deliver for me! Who Do You Most Admire? Myself, duh. What is the Square Root of 15? Answer! We Have Ways of Making You Talk! Please don’t use the thumbscrews on me again! AIGGHHHEEE!!! Describe Yourself in One Word: Tough What’s the Strangest Item You’ve Delivered? Cosmetics to a funeral home! What’s the Best Part of the Job? Being my own boss. What Do You Miss Most Fromthe ’80s? Cocaine Where Do You See Yourself in 20 Years? In a cozy cemetary plot. CDS SPOTLIGHT Cindy LoRusso VITAL STATISTICS LOCATION: ORLANDO, FLA. CONTRACTS: 4 EMPLOYEES: 6 VEHICLES: 8 STARTING YEAR: 1994 MEMBER SINCE: 2004 MILES DRIVEN ANNUALLY: 10,000 What’s Your Hidden Talent? I can rock a mic at karaoke! What Does Your Family Think of Your Work? Ask them when their shifts start. All of them deliver for me! Who Do You Most Admire? Myself, duh. What is the Square Root of 15? Answer! We Have Ways of Making You Talk! ld’hhbDescribe Yourself in One Word: Tough What’s the Strangest Item You’ve Delivered? Cosmetics to a funeral home! What’s the Best Part of the Job? Being my own boss. What Do You Miss Most Fromthe ’80s? Cocaine hlfiCDS SPOTLIGHT Cindy LoRusso VITAL STATISTICS LOCATION: ORLANDO, FLA. CONTRACTS: 4 EMPLOYEES: 6 VEHICLES: 8 STARTING YEAR: 1994 MEMBER SINCE: 2004 MILES DRIVEN ANNUALLY: 10,000 OCTOBER 2023 1 What’s Your Hidden Talent? I can rock a mic at karaoke! What Does Your Family Think of Your Work? Ask them when their shifts start. All of them deliver for me! Who Do You Most Admire? Myself, duh. What is the Square Root of 15? Answer! We Have Ways of Making You Talk! Please don’t use the thumbscrews on me again! AIGGHHHEEE!!! Describe Yourself in One Word: Tough What’s the Strangest Item You’ve Delivered? Cosmetics to a funeral home! What’s the Best Part of the Job? Being my own boss. What Do You Miss Most Fromthe ’80s? Cocaine Where Do You See Yourself in 20 Years? In a cozy cemetary plot. DeToWYoCoWBeWCoRichard ‘Dick’ Salanger Vital Statistics Role: Northeast Region VP Contracts: 52 Employees: 114 Starting Year: 1957 Member Since: 1972 Annual Miles: 4 million What does it mean for you to be part of a family legacy? It’s different. It’s not a job; it’s a service to the American people. Going down the road out in the country, everybody waves to you. It’s an honor. What do you enjoy doing when you’re not working? I’ve got 10 grandkids, [so] Little League, soccer, dance recitals. This year, we had our first high school graduation. What are some of the challenges found delivering in New York state? Making a successful run in adverse weather. We have lake effect snow. Sometimes we get out running, but none of the post offices are plowed. Where should every visitor to Syracuse go? The Carrier Dome at Syracuse University. Or the JMA Wireless dome, as they call it now. If you could own any sports team, what would it be? Probably the Yankees. It’s the most valuable franchise. The old Yankee Stadium gave me the goosebumps. 20 NSRMCA
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236 181 157 627 342 7,956 $15,995 $19,963 $23,627 $33,412 $28,444 $41,439 140,686 141,998 146,302 193,659 222,420 474,806 9.0 yrs 10.1 yrs 9.6 yrs 8.4 yrs 10.9 yrs 7.6 yrs March 2024 April 2024 213 165 174 581 287 11,377 $18,100 $21,735 $25,11 $39,774 $29,072 $37,753 130,452 137,114 148,169 176,174 196,574 491,143 8.5 yrs 9.2 yrs 9.0 yrs 8.2 yrs 11.8 yrs 8 yrs 22 NSRMCA
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Legislative Round Up The latest legislative developments at the state and federal level Did we miss any important trucking legislation coming down the pike? If so, please let us know. Contact Cameron Ayers at [email protected]. Federal Activity S. 4254 — A bill to limit the closure or consolidation of any United States Postal Service processing and distribution center in states, and for other purposes (referred to committee 5/2) https://www.congress.gov/bill/118th-congress/senate-bill/4254 H.R. 7527 — Mail Traffic Deaths Reporting Act (passed House 5/6, received in Senate 5/7) https://www.congress.gov/bill/118th-congress/house-bill/7527 H.R. 8303 — To require the United States Postal Service to notify postal customers and relevant officials when operations are temporarily suspended at a post office, and for other purposes (referred to committee 5/8) https://www.congress.gov/bill/118th-congress/house-bill/8303 S. 4356 — A bill to facilitate the implementation of security measures undertaken by the United States Postal Service, and for other purposes (referred to committee 5/16) https://www.congress.gov/bill/118th-congress/senate-bill/4356 State Activity California: Assembly Bill 2286, Vehicles: Autonomous Vehicles (Passed Assembly 5/21, received in Senate 5/22) https://leginfo.legislature.ca.gov/faces/billHistoryClient.xhtml?bill_id=202320240AB2286 24 NSRMCA
Contact Boon today! 866 831 0847 boongroup.com Your link to benefits.® Fringe benefit solutions. Maximize your fringe dollars and give your employees some flexibility with choices on retirement options, ancillary benefits, and flexible healthcare for today’s workforce. Boon offers an hourly, fully insured major medical plan designed specifically for the unique needs of mail hauler contractors and a customized fixed indemnity solution for part-time employees. Flexible healthcare for today’s workforce. JUNE 2024 25
Staying in Your Lane on Accident Liability Accidents on the roadways are an unfortunate reality in the transportation business. Any carrier that has been in the business long enough, or that has reached a sizeable scale, experiences accidents despite a zealous focus on safety and training. The question of your liability as a carrier is relatively straightforward and is based upon the carrier’s actual or required control and fault in the accident. Sometimes the path forward is not that simple. The availability of insurance defense, the exposure you face and the way you manage exposure day-to-day in your business, all change if you were not the operating carrier. For non-carrier operations, every day holds customer and operational pressures to act inconsistent with your role in a movement. These can be managed as best as possible through process, training and paperwork. The Non-Carrier Lane The question of your liability is less clear if you were not, in fact, the operating carrier at the time of the accident. This scenario could arise in a number of ways that could draw you in as a defendant despite your role. Brokerage or forwarding to a carrier involved in an accident is the common example; interchanging a trailer or lawfully interlining a load are other examples. Shippers and consignees are even brought into costly claims and litigation when the documents about a shipment muddies the water as to each parties’ responsibility. Legal theories of liability that could be used to attach responsibility to you include vicarious liability, negligent selection, negligent hiring and respondeat superior. The basic strategy for plaintiffs’ lawyers is to establish negligence through your relationship with the operating carrier, or the way you held yourself out to the shipper, rather than through examining operation of the vehicle — because that was not you! Non-Carrier Best Practices Operational practices and paperwork will draw or defend liability in the event of a serious accident involving a carrier with whom you do business. Using the brokerage example, your basic duty is to exercise reasonable care when selecting third party providers. This duty is met in large part by confirming that the carrier can lawfully and safely perform the services at the time of tender. Operationally, this means reviewing at least the carrier’s operating authority, safety rating and insurance. Vigilance does not end there. As the non-carrier, it is key to not control the activities of the carrier. Direct communications with drivers and overreach — including pressure to deliver loads too quickly — can be used to suggest responsibility for the accident or to keep a non-carrier in a lawsuit longer than anticipated. Any documentation or communications suggesting responsibility for carriage — such as issuing a bill of lading in the broker’s name, accepting By Jonathan R. Todd LEGAL CORNER 26 NSRMCA
responsibility for equipment operation in a shipper contract, or electronic messages misrepresenting your role — can be detrimental by creating evidence suggesting that you should bear the carrier’s liability. Business operations are an art and not a science. Still, arms-length relationships between non-carriers and the carriers with whom they interact can be maintained as best as possible by developing defensible structures between relationships, training staff appropriately and papering relationships accordingly. Jonathan Todd is Vice Chair of the Transportation & Logistics Practice Group at Benesch Law. He may be reached at 216-363-4658 or [email protected]. TLC takes care of the back end operational aspects of your business... So you can focus on the customers and growing your market share! Special Discount for NSRMCA Members • 10% off TLC’s time clock • A complimentary onsite DOT audit • Guaranteed competitive pricing! To Learn More: https://www.tlccompanies.com/nsrmca-partnership/ TLC is the exclusive PEO Partner of NSRMCA NSRMCA’s website has a lot more to offer than just The Star Carrier. It houses news, features, videos and tutorials. Go to nsrmca.org to learn more JUNE 2024 27
While some on-road damage to a delivery vehicle is expected over the years, it’s not often that damage comes from a bullet. Unfortunately for Alice Ware, her station wagon had the misfortune of catching some strays during deer hunting season in Michigan. Her husband, who was out hunting at the time, made clear that he was not the shooter! Watch Out for Flying Objects! 1971 28 NSRMCA
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FCE's approach is to provide customizable benefit solutions for client-specific challenges. FLEXIBLE & CUSTOMIZABLE BENEFIT PLANS New & Improved Mobile App WHAT WE OFFER Major Medical Hour Bank Fixed Indemnity Ancillary Benefits Retirement Options Telemedicine Employee Assistance Programs And More Parker Barrineau Regional Vice President (210) 896-1575 [email protected] Chris Porter President & CMO (650) 291-4202 [email protected] Alan Joyce Regional Vice President (865) 352-9291 [email protected] Rev Up Your Business's Benefits with FCE! 30 NSRMCA
PROPANE AUTOGAS TRUCKS DELIVER RESULTS Challenge: Result: Economic Savings: By the Numbers: • 26 Ford-750 trucks equipped with ROUSH CleanTech propane fuel systems • 8,000 miles per vehicle per month • 16,000 gallons of propane autogas used per year per vehicle Lisa McAbee, Owner of McAbee Trucking ROUSHcleantech.com | 800.59.ROUSH Company: McAbee Trucking, Inc. Industry: United States Postal Service contractor Location: Blacksburg, South Carolina Making the switch to alternative-fuel vehicles had to make sense financially. “Propane is very favorable for us economically,” McAbee said. With the money saved overall due to propane’s efficiency, the company has upgraded its facilities, vehicles and parking lots. With the addition of propane autogas delivery trucks, McAbee Trucking is reducing harmful emissions, benefiting employees’ health and improving the local community’s air quality — all while reducing costs. To cut emissions of its fleet vehicles, lead the industry in the use of alternative transportation fuels and “do the right thing” for generations to come. I want my grandkid’s grandkids to have a clean environment. I have breathing issues, as so many others do. I want to do more than my part to help. Contact ROUSH CleanTech to learn more about propane vehicles for your fleet. JUNE 2024 31
After watching the “Oppenheimer” movie and seeing the numerous awards it garnered, I’ve been inspired by the numerous discussions it has sparked on various stages and online platforms. The film reignites the age-old debate about the ethical implications of sacrificing a few to save many, along with the myriad “what if ” scenarios that accompany such decisions. The critical questions it raises include whether the actions of Oppenheimer and his team of scientists were ethical, and whether President Harry Truman’s decision and the U.S. government’s use of the atomic bomb were genuinely justified. Did it really end the war and save millions more lives that would have been lost had the conflict continued? These are complex questions with no definitive answers, but the timing of this film’s release is particularly intriguing. Why now? Are these discussions being triggered because the world is about to face a similar crisis, preparing us to understand and comply without resistance when the time comes? Another film that has sparked significant discussion is Netflix’s “Leave the World Behind.” This movie offers a modern take on what foreign threats might look like today — beyond bombs and rockets. It explores scenarios where our essential infrastructure — such as power, roads, and internet/TV — are cut off, highlighting the psychological impacts on society. The involvement of a former president in the production suggests that the film might be alerting us to these potential threats, preparing us to respond more cooperatively, as we did during the pandemic. During that crisis, law enforcement, USPS employees, healthcare workers and transportation companies all played critical roles in maintaining our safety and well-being. Civilians also contributed significantly, including me and my employees. We collaborated with nine nonprofits to organize food drives across Southern California and around various USPS terminals we service. Our efforts helped nearly 600,000 families over the course of a year when uncertainty was at its peak. I share this not to alarm or boast, but to raise awareness among those who have not yet seen these films or engaged in these discussions. While we hope such days never come, being prepared is the best way to thwart any malevolent plans and ensure our collective safety. Stay safe and stay blessed! President’s Perspective Jack Khudikyan NSRMCA President 32 NSRMCA
Orlando 2024 Aug. 3-7 Gaylord Palms Resort 600 W. Osceola Pkwy Kissimmee, FL 34746 Registration is now open https://tinyurl.com/266uc2z2 Las Vegas 2025 Jan. 11-14 Westgate Resort & Casino 3000 Paradise Road Las Vegas, NV 89109 Registration coming soon! Upcoming Events Meeting Notices Have a notice for us? Send your e-mail to Cameron Ayers at: [email protected] NORTHEAST REGION MEETING REPORT Northeast Region Vice President Dick Salanger hosted a meeting April 28 in Springfield. His report is below: The first order of business was to recognize the present and former officers who have made the NSRMCA what it is today. Those recognized were past president Cliff Blackburn, former board member Steve Thompson, former state and region officer Clyde Sherman, current PNT manager Dwyane Andreason, current CDS manager Jim Jennings, Colleen Kotlow, former NY officer and former Mass. officer Dan Esdale and former NY officer Peter Martens. Next, we started the process to elect delgates to the Florida National Convention in August. The debate started over a stipend to be paid to each delegate; after a discussion and vote, it was determined each delegate would get $1,500 for attending. Our delegates will be Bob Blackburn, Chris Hartfelder, Colleen Kotlow and Dee Lewis. Alternates will be Peter Martens and Gloria Smith. Bylaw changes that will be presented at the convention were read to the group, and the floor was open for lively discussion. Much of the remainder of our meeting was spent discussing the CLEAR transition, issues that are happening with it and how the different suppliers are navigating CLEAR. JUNE 2024 33
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Fuel Indexes The charts below detail the average monthly retail prices for diesel and gasoline, according to the Department of Energy. Consult the top chart to determine which of the eight regions you occupy. The middle chart covers regular gasoline prices while the bottom one addresses diesel prices. New England Central Atlantic Lower Atlantic Midwest Gulf Coast Rocky Mountain West Coast California ME NY WV ND NM MT WA CA NH PA VA SD TX WY OR VT NJ NC NE AR UT NV MA DE SC KS LA CO AZ CT MD GA OK MS ID AK RI DC PR MN AL HI FL IA MO WI IL MI IN OH KY TN US Retail on Highway Gas & Diesel Update for DOE Monthly Average Retail Gasoline All Formulations New England (PADD 1A) Retail Gasoline Prices Central Atlantic (PADD 1B) Retail Gasoline Prices Lower Atlantic (PADD 1C) Retail Gasoline Prices Midwest (PADD 2) Retail Gasoline Prices Gulf Coast (PADD 3) Retail Gasoline Prices Rocky Mountain (PADD 4) Retail Gasoline Prices West Coast (PADD 5) Retail Gasoline Prices October 2023 3.736 3.755 3.324 3.445 3.198 3.861 5.155 November 2023 3.524 3.572 3.081 3.214 2.886 3.391 4.602 December 2023 3.351 3.443 3.075 2.964 2.739 3.011 4.254 January 2024 3.232 3.323 3.060 2.905 2.778 2.854 4.137 February 2024 3.273 3.399 3.211 3.119 2.933 2.980 4.166 March 2024 3.354 3.492 3.38 3.394 3.132 3.252 4.47 April 2024 3.571 3.679 3.491 3.519 3.277 3.523 4.885 May 2024 3.697 3.76 3.487 3.51 3.253 3.531 4.789 Highway Diesel New England (PADD 1A) No 2 Diesel Retail Sales (C/gal) Central Atlantic (PADD 1B) No 2 Diesel Retail Sales (C/gal) Lower Atlantic (PADD 1C) No 2 Diesel Retail Sales (C/gal) Midwest (PADD 2) No 2 Diesel Retail Sales (C/gal) Gulf Coast (PADD 3) No 2 Diesel Retail Sales (C/gal Rocky Mountain (PADD 4) No 2 Diesel Retail Sales (C/gal) West Coast (PADD 5) Less CA: No 2 Diesel Retail Sales (C/gal) California No 2 Diesel Retail Sales (C/gal) October 2023 4.566 4.691 4.322 4.425 4.167 4.713 5.031 6.094 November 2023 4.478 4.514 4.052 4.241 3.898 4.329 4.620 5.684 December 2023 4.388 4.381 3.886 3.882 3.639 4.007 4.263 5.320 January 2023 4.306 4.252 3.868 3.716 3.583 3.756 4.055 5.130 February 2024 4.327 4.318 4.095 3.938 3.795 3.853 4.200 5.214 March 2024 4.301 4.304 4.05 3.943 3.724 3.988 4.16 5.216 April 2024 4.311 4.255 3.974 3.948 3.701 3.917 4.177 5.239 May 2024 4.208 4.15 3.799 3.725 3.536 3.757 4.032 5.078 36 NSRMCA
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CPI-W: CDS Contractor Index The CPI-W is a monthly measure of the average change over time in the prices paid by urban wage earners and clerical workers for a market basket of consumer goods and services. The CPI-W is based on the spending patterns of urban wage earners and clerical workers. The CPI-W can be used to request an adjustment to your contract to accommodate increased costs. Line items 1B, 5, and 17 are adjustable by the CPI-W. A contractor may simply make a request to the Postal Service to incorporate the latest CPI adjustment and it will do the calculations. But there may be times when the comparison period reflects a downward CPI and if you ask the Postal Service to incorporate the CPI adjustment you could be faced with a downward adjustment resulting in reduced compensation. The CPI does not always go up, so it is best to do the math prior to applying for the adjustment. Source: https://www.ssa.gov/oact/STATS/cpiw.html Month & Year Rebased January 2020 251.3 February 2020 251.9 March 2020 251.3 April 2020 249.5 May 2020 249.5 June 2020 251.0 July 2020 252.6 August 2020 253.5 September 2020 254.0 October 2020 254.0 November 2020 253.8 December 2020 254.0 January 2021 255.2 February 2021 256.8 March 2021 258.9 April 2021 261.2 May 2021 263.6 June 2021 266.4 July 2021 267.7 August 2021 268.3 September 2021 269.0 October 2021 271.5 November 2021 273.0 December 2021 273.9 January 2022 276.3 February 2022 279.0 Month & Year Rebased March 2022 283.1 April 2022 284.6 May 2022 288.0 June 2022 292.5 July 2022 292.2 August 2022 291.6 September 2022 291.8 October 2022 293.0 November 2022 292.5 December 2022 291.1 January 2023 293.5 February 2023 295.0 March 2023 296.0 April 2023 297.7 May 2023 299.3 June 2023 299.4 July 2023 299.8 August 2023 301.6 September 2023 302.3 October 2023 302.1 November 2023 301.2 December 2023 300.7 January 2024 302.2 February 2024 304.3 March 2024 306.5 April 2024 307.8 38 NSRMCA
DELIVERING ALL YOUR FUEL NEEDS TrilliumEnergy.com Loves.com At Love's and Trillium, we pride ourselves in getting United States Postal Service (USPS) carriers back on the road quickly. Whether it’s diesel today, zero emissions trucks, or even CNG truck leasing, we are committed to providing solutions to meet your needs. By fueling at Love's and Trillium, USPS carriers can also earn points that can be spent on store food, drinks, merchandise and more with our My Love Rewards program. Sign up today! Contact: Marc Rowe [email protected] 630-746-6313 Kyle Bowman [email protected] 402-250-5559 Love's and Trillium Fueling Solutions: •Biodiesel •Compressed Natural Gas •Diesel •Electric Fleet Vehicle Charging •Hydrogen Fueling •Renewable Diesel •Renewable Natural Gas JUNE 2024 39
R 1” WondeRoller™ - 70598.0000 2” WondeRoller™ - 70600.0000 Sealed bearing designed and engineered for long life. Lasts up to 5x longer than a standard roller. MILES THAT MATTER Perfect for dry freight applications, this roller will outlast the competition, keeping your repair costs down. A fully sealed bearing keeps dust and debris out, ensuring your fleet stays up and running! The Star Carrier