Inside this Issue Breaking Through on New Fuel • 10 Eleven Members Recognized • 14 2023 Convention Service • 22 Inside this Issue Breaking Through on New Fuel • 10 Eleven Members Recognized • 14 2023 Convention Service • 22 December 2024 Networking Your Way To The Top • 6 New Administration, New Policies • 14 McReynolds Named Board Chair • 16
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 Ed Zengel Edward Zengel and Son Express Inc. (239) 229-1757 [email protected] Jack Khudikyan President AJR Trucking [email protected] Nina Dittmar Vice President Marathon Mail Service [email protected] Carrie Lee Secretary-Treasurer DDA Transport Inc. (603) 647-4838 [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] 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] Member at Large Joshua Stoneback Hi Pro Inc. (442) 207-0397 [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] Member at Large Kalib Carmichael Carmichael Transport Inc. [email protected] Regional Vice Presidents At-Large Members 2 NSRMCA
Editorial Managing Editor: Cameron Ayers Editor: Landon Stamper Contributors: Eric J. Francis, June Allan Corrigan, Mindy Long, John Worthen Production Layout: Landon Stamper & Cameron Ayers Printing/Distribution: Heritage Printing Visuals Cover Art: James Jarnot Profile Photos: MNPhotoStudios CONTENTS The Star Carrier • Vol. 75, No. 12 News & Columns Features From the Executive Director 4 Legal Corner Jonathan Todd 28 Driver’s Corner Cliff Abbott 32 President’s Perspective Jack Khudikyan 38 In Memoriam 24 Used Truck Sales Summary 26 NSRMCA Rewind 30 Driver Qualification Record Requirements for Multi-Employer or Temporary Drivers 34 CPI-W: CDS Contractor Index 40 Top Stories Networking Your Way To the Top 6 Safety Comes First, Last and Always 10 New Administration, New Priorities 14 Amber McReynolds Named New Chair of USPS Board of Governors 16 Top 9: Tips for Networking 20 Member Spotlight: Sherry Durocher 22 DECEMBER 2024 3
From the Executive Director Gregory R. Reed [email protected] (202) 543-1661 We often approach Thanksgiving and the end-of-year holidays, such as Hanukkah and Christmas, as separate celebratory occasions. But perhaps it is better to think of them as bookends to a season of gratitude. Even in an industry challenged by economic forces beyond our control and a Postal Service working feverishly to modernize to address declining mail volume, we have much for which to be thankful. For starters, we can be thankful that dedication, hard work, and perseverance have guided this industry for approximately 180 years, in many cases through times more challenging than anything transportation suppliers face today. That these qualities have shepherded countless companies through decades, even generations, is why the postal transportation industry has been an incubator of the American dream. I believe that they remain the determinative factors of success today. Similarly, we can be thankful for the extraordinary, durable comradery that binds suppliers regardless of their scope of operation or their tenure in the business. Not a month goes by that I do not marvel at how both new and longstanding suppliers are learning from each other. In celebrating that comradery, we help to ensure that it lives far beyond our time in this business and on this planet. Finally, we should be grateful for the unique place in American history held by and role that the United States Postal Service plays in uniting this nation. If you look across the globe, postal operations have, in large part, been privatized. And even where they have not, there is no commitment to connectivity comparable to USPS’s universal service obligation. More than just a statutory requirement that necessitates the transportation services NSRMCA members provide, the USO is investment in our egalitarian philosophical roots. To serve the Postal Service is to help be a part of its future and thus, that of the American people. Few can authentically make that claim. It is a gift we both receive and give daily, which is perfect for this season of gratitude. Merry Christmas and happy holidays! Sincerely, Gregory Reed 4 NSRMCA
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ell someone your latest hire is a logistics expert, and they’ll likely peg you as being in the transportation industry. Add that the hire is a martial arts expert with an interest in computer science who speaks three languages fluently (and a smattering of three more), and they might begin to look for the Avengers logo on your building. But when your goal is building annual company revenues of $1 billion dollars, it doesn’t hurt to have some superhero vibes on the team. Erich Betancourt may not have had transportation and logistics on his radar when he headed off for college — “I always wanted to study computer engineering, and I wanted to go into game development,” he said — but he soon discovered a knack for it. That was good news for Transportation One, which brought Betancourt in as senior business development director nearly three years ago. Now, he’s helping grow the company’s business with the U.S. Postal Service and making a run at that 10-figure revenue goal. Supplying the Chain A native of Venezuela who moved to Miami with his parents when he was a teenager, Betancourt was a computer science major at Miami Dade College when he By Eric J. Francis Betancourt Continues to Grow Portfolio Networking Your Way to the Top Erich Betancourt helped put Transportation One on USPS’s radar and has grown the company’s business. (Photo by MNPhotoStudios) T 6 NSRMCA
noticed something. “Once I started my education career, I got the opportunity to work with quite a few different great professors in a lot of fields,” he said. “And one of the things I could see all of them interacted with was the supply chain.” Something about that clicked with him and he decided to change majors, shifting to studies in supervision and management for business administration. In fact, he was the first person to graduate from Miami Dade College with that degree. That, combined with his focus on making the rounds, started opening doors for Betancourt. “Through networking, going to various events for college and dinners, I started making the connections with different corporations, including some large multinationals, that kind of drove me away from the original path I intended into more of a managerial, business-oriented mindset,” he said. Betancourt’s career leading up to Transportation One only solidified the importance of supply chains in his mind. He started out with Arcor Industries, a candy maker based in Argentina — which turns out to be a powerhouse in the candy manufacturing sector. He wound up overseeing their North American and Middle Eastern markets. “If you’ve ever eaten a Starlite Mint from Dollar General, Walmart, etc.,” it was probably made in Argentina, he explained. His next move was into the wine and spirits industry, where things came into even sharper focus. “Once I understood about the worldwide connections and how the supply chain works in so many different continents, I wanted to develop my knowledge,” he said. “I went to Nova Southeastern University for a master’s degree in international business with a specialization in supply chain management.” That was 2015 and he took that know-how into medical manufacturing and distribution with Medline Industries. That took him from Miami to Illinois, where a couple of years later he decided to explore another sector: trucking. continued on page 8 “We started to open up a family business in trucking,” said Betancourt. “We ended up with about 25 trucks — some were straight trucks, and some were 53-foot dry vans. We did that until COVID and after that we saw the decline, had an opportunity to exit and we did.” It was time again for his next step. Not surprisingly, that included talking with people in his network. And a familiar name turned up in February of 2022. Moving to Transportation One “I got into communication with Pat Gillihan, who back when I was in wine and spirits used to be one of my providers,” said Betancourt, who then added, “Everything comes full circle.” Gillihan, Transportation One’s chief revenue officer, mentioned an opportunity for Betancourt to come work with him. The ultimate goal? “Pretty much he told me they are excited to take on a daunting task, which was to reach a billion dollars in revenue,” said Betancourt. “Once he said that, I said, ‘Okay, I’m in! Let’s go! I’m up for a challenge!’” The company was emerging from the economic challenges of the pandemic at about $140 million in revenue. This year, Betancourt expects them to reach between $225 and $235 million. And he’s making sure that he’s carrying his share of the load. “I do know from the minute I started, my entire book of business has grown 10 times,” he said, “so currently I’m about 22 percent of the company’s revenue.” About a third of that book is U.S. Postal Service work. Not bad, considering Transportation One didn’t have any postal contracts when he started. The work came as a result of (no surprise here) networking: Betancourt was introduced to Nicholas Anziano, USPS’s manager of freight auction and special projects. Transportation One started doing business on the freight auction board and grew from there. Jim Sykora is also part of the team, as a manager of client solutions. He joined Transportation One just a few months after Betancourt and was immediately impressed DECEMBER 2024 7
Networking Continued by his energy and enthusiasm. “His ability to engage with Transportation One’s customers on a personal level makes all the difference in our industry, and it is truly something he excels at,” said Sykora. Betancourt, in turn, said he couldn’t see himself being where he is today without team members like Sykora. Free Time Is Family Time While Betancourt still considers Miami to be his hometown, he and his family — wife Dayana and their daughter and son. — now live in Chicago. With both kids still under the age of 10, family is the primary focus for any free time the Betancourts have. “The kids are thrill-seekers, just like me,” he said with a laugh. “We’re always going to Six Flags and doing outdoor activities, especially on weekends. It’s always fun.” For his own part, Betancourt has something special he likes to do in his spare time: Muy Thai, the full-contact martial art he describes as “kickboxing upped to 100.” He’d been introduced to the sport during college and to say it clicked with him might be an understatement. “About seven years later, I was determined to go to Thailand” to compete, he said. “The only reason I didn’t go was because I had a comfy corporate job, and my first child was about to be born.” He may not have gone pro with mixed martial arts, but Betancourt said he can apply many lessons from the ring to his career. “It’s very intense,” he said, “but it gives you the discipline in order to be able to push through. I think that, in combination with the mentors I had along the way, has made an impact on myself and propelled me to be sure we can overcome any obstacle we have.” Erich Betancourt sits under framed magazine covers of the Inc. 5000, which Transportation One was part of. (Photo by MNPhotoStudios) 8 NSRMCA
DECEMBER 2024 9
Camera systems, lane departure warning systems, collision mitigation systems and other non-mandatory safety technologies all hold significant promise for enhancing safety, and use of the systems on the rise. “Our goal is to be safe. You can’t put a cost on accidents you don’t have, but as a company, we want to be good citizens and do a good job and try to prevent as many instances as we can,” said Ken Johnson, executive chairman of Leonard’s Express. The American Trucking Associations estimates that the trucking industry invests $14 billion annually in technology, training and other expenditures to improve highway safety, and safety technology spending increased by over 40 percent in its 2023 study compared to 2015. “In general, there is more information out that is showing these technologies work. Costs are going down on the technologies, too,” said Matt Camden, senior research associate at the Virginia Tech Transportation Institute (VTTI). “All of these technologies cost money, but the big return is in preventing crashes or mitigating crashes.” There is no one-size-fits-all approach to safety solutions, and the most beneficial technology can depend on the fleet, their operations and the experience levels of their drivers, making it essential for carriers to research, pilot and evaluate technology. “Safety technology is not a silver bullet and not every new or existing technology makes sense in every truck,” said Steve Keppler, co-director of Scopelitis Transportation Consulting. “Each fleet has unique challenges, which require unique solutions.” Leonard’s Express has adopted most of the newer safety technology that can be built into the truck. “The drivers have so much going on when driving the truck. If we can put something in that benefits them rather than distracts them and reduces stress rather than increases stress, we want to look at that,” Johnson said. Non-mandatory safety technology is a flouishing industry in the trucking sector that offers numerous benefits, provided you do your due dilligence. By Mindy Long Safety Comes First, Last and Always Trucking Technology Overview 10 NSRMCA
(Photo by phaisarn2517, courtesy of iStockphoto.com) Several factors drive adoption, from improving safety and protecting drivers to managing insurance rates and reducing the risk of a nuclear verdict. Lawsuits targeting trucking firms have increased exponentially, both in volume of cases and the size of awards, according to the American Transportation Research Institute. Overall liability has driven the adoption of safety technology for Dan Esdale, president of Deco Systems. “My main reason was to understand the environment we’re in today. We’re looking for protection, No. 1. No. 2 is that I wanted something that will positively influence the driver habits and, hopefully, reduce or prevent accidents,” he said. “We are all operating in a very litigious society today. We need all the protection we can get.” Most companies are turning to safety technology to reduce violations and safety events, including near misses and crashes, but they are also getting ancillary benefits. “Some technologies also come with other significant financial benefits, like reduced fuel consumption or improved visibility into fleet operations that can help create new efficiencies,” Keppler said. Evaluating What Works The top considerations when deciding which technology to deploy include the fleet’s safety and compliance trends. “This is often the best place to start when identifying which technology could make the biggest impact,” Keppler said. Every carrier operates in a different environment, so they need to investigate their own data first. “What type of risk do they face? It could be they’re doing a lot of city driving. Maybe they’ve had a lot of sideswipes or rear-end events. Maybe they’ve had a lot of citations or tickets,” Camden said. “Finding out where are the risks helps select the right technology.” If speeding is a concern, setting the governor or deploying a dashcam that can monitor and report speeding events could be a good option. For fleets experiencing issues with following too close, adaptive cruise control or forward collision mitigation might make sense. “Fleets should also review their key performance indicators to see where technology could help them achieve their goals and how they can effectively measure their success. There is lots of academic and third-party research on these technologies that can help guide these decisions,” Keppler said. There is also a wide range of available technology, which can sometimes create decision paralysis. “Evaluating technology options can be overwhelming, and not all technology will make sense for all fleets, but we also don’t want to let perfect be the enemy of good,” Keppler said. Johnson said that he has yet to test any technology that hasn’t been useful. “I can’t think of any we just stopped using,” he said, adding that some haven’t worked exactly as expected. “When the lane departure and smart cruise control first came out, it didn’t work well. We took a little bit of a different approach, and we didn’t take it out.” Since the technology had significant potential, Johnson decided to work with manufacturers to drive improvements. “We’d let the technical sales reps ride with our drivers, and continued on page 12 DECEMBER 2024 11
we were very open with working with the vendors to make it better,” Johnson said. Candid Cameras The technology that is experiencing the steepest uptick is the forward-facing dash cam. “That is because it has two primary benefits: exoneration and improved safety,” Keppler said. Deco Systems has also deployed forward-facing cameras on all of its trucks and has driver-facing cameras in the majority of its equipment. “The main purpose of that was, first of all, for us to have an eyewitness to what we were doing. Second of all, drivers knowing there are cameras affects their driving habits, which keeps them out of trouble,” Esdale said. Leonard’s Express has had inward and forward-facing cameras for about nine years, and Johnson said the cameras are a great coaching tool. “When we put them in, we said that we weren’t going to discipline anybody. We’re going to coach them,” he said. Keppler said the benefits of dash cams can’t be fully realized if the cameras aren’t paired with a driver coaching program. “This concept holds true for just about every safety technology. You can’t just set it and forget it. It requires active management and engagement by both the driver and safety department to realize the full value,” he said. Overall, drivers have been comfortable with the technology. “The only pushback we’ve gotten recently is when we do acquisitions [that add to the driver pool]. We do have people trying to cover them, but the technology sends us a message,” Johnson said, adding that Leonard’s Express respects drivers’ privacy. The inward-facing camera only focuses on the driver’s seat and the carrier always checks with drivers before sharing video, whether it is to use it as a positive or negative example. Johnson added that more often than not, videos help exonerate the driver. “We had one incident where someone claimed we rear-ended them, and we were able to prove otherwise,” he said. While road safety is important, Johnson said he has found that the cameras can help improve overall safety for drivers. “We’ve had drivers that have had health issues that we were able to spot on the camera,” he explained. “In both cases, we sent them to their doctor, and it prevented serious issues down the road.” Testing New Technology Safety technology is advancing rapidly, and Leonard’s Express has taken a collaborative pilot approach when evaluating new soluptions. The latest pilot involved new electronic logging devices, and Leonard’s Express installed the devices in about 15 trucks. “We would sit down weekly and talk to the drivers as they came in and look at the results,” Johnson said. “We did the same thing about four years ago with cameras.” The company tested four solutions. “We had 40 trucks — 10 each with the different technologies. Every three to four weeks, the drivers would change trucks, so they had a chance to try all of the different platforms,” Johnson said. Camden said driver feedback is critical. “Do the drivers like it? Do they feel it works? Do the drivers feel better having it? Also, look at the data from your fleets. See if events and instances of risky driving are going down,” he said. Anytime a carrier is looking at new technology, Keppler recommends they establish an internal team to include safety, operations, maintenance and drivers, among others. “This ensures the tech can be evaluated by all affected parties and important questions can be asked and answered. It also assists in building buy-in on deployment should the fleet ultimately choose to adopt the technology,” he said. Insurance providers can also offer useful insights. “They have a unique vantage point in the industry and can provide a good perspective on which may be most effective for your fleet. Some also offer incentives for adoption,” Keppler said. Cost also plays a critical role. “There can be a fairly wide difference in costs between systems,” Johnson said. “We also have to look at what it will do for our workload and if technology will make more work for us.” Calculating Your ROI It can be difficult to accurately inventory all costs associated 12 NSRMCA
with a technology and sometimes more challenging to quantify the benefits. “This is a problem that has vexed safety leaders for decades. ‘How do I justify the costs of a tool that might prevent something from happening in the future?’ Of course, with the rise of nuclear verdicts, this argument is getting much easier to make,” Keppler said. VTTI has created a ROI calculator that is freely accessible to all carriers (https://www.vtti.vt.edu/roicalculator/ calculator.html). FMCSA has also created a calculator as part of its TechCelerate Now program (https://www. fmcsa.dot.gov/tech-celerate-now/tech-celerate-now-roicalculator). “It is built off of the one we developed, and they got additional information from the industry to help estimate costs,” Camden said. Vendor-provided documentation can also provide valuable insights. “It is really important to review it to see [if] what they offer is a good fit, but I also suggest looking for independent assessments, whether it is from peers or a calculator,” Camden said. “That is a good, well-rounded way to get information and select technologies that may help with specific issues.” Keppler said fleets need to make sure they can identify all the costs and benefits of the technology, including life cycle costs such as the capital investment and ongoing costs for subscriptions, as well as labor/time to install and maintain the technology and to train and coach drivers. “The benefits should minimally include reduction in safety events/violations/incidents, compliance improvement, crash reductions and reductions in insurance claims/losses, litigation-related costs, as well as total crash costs,” Keppler said. He added that the ROI analysis should be conducted before and after deployment to ensure the technology has the intended effect and to make needed adjustments. One area where carriers may see a more immediate ROI is in litigation mitigation. “There are so many carriers that say they implemented a dash cam, and then in a short period of time, the truck was involved in a collision, and the dash cam clearly shows the driver wasn’t distracted, was in their lane and wasn’t tired. It was the other car that cut them off and slammed on the brakes, and they couldn’t stop,” Camden said. Other savings may take time to accrue. “Insurance savings is something that comes up quite often when we’re talking about non-mandated safety technologies, but most insurance providers don’t offer savings upfront if a carrier implements some sort of safety technology,” Camden said. “The insurance industry is driven by outcomes. Insurance companies wait to see that trend and reduction in violations and crashes before providing a savings.” When installing any new solution, Camden urged carriers to be patient. “Don’t expect an immediate turnaround. Sometimes, seeing a positive benefit takes time, especially if the technology relies on changing behavior. We’re all creatures of habit, and it is hard to change habits.” Dash cameras are one of the most commonly used safety technologies. (Photo by Nudphon Phuengswan, courtesy of iStockphoto.com) DECEMBER 2024 13
A new administration is just around the corner, which will undoubtedly usher in significant regulatory changes that will impact the transportation and logistics industry. Policy shifts are anticipated at the Department of Transportation, the Department of Labor and the Environmental Protection Agency. As this is the second go-round for Donald Trump, there is some sense of what lies in store. Reducing regulatory burden was a theme of his first term in office and that is likely to resume when he is sworn in once again in January 2025. “There was a rule in Trump 45 [his first administration] that for every new regulation By June Allan Corrigan Experts Predict Major Regulatory Rollbacks New Administration, New Priorities Photo by silentstock639, courtesy of iStockphoto.com 14 NSRMCA
proposed, two regulations had to be removed,” says transactional and regulatory lawyer Jonathan Todd, who is vice-chair of the Transportation & Logistics Practice Group at Benesch Law. That general approach is consistent with everything Trump said on the campaign trail and is expected to recommence as his unwinding of Biden administration policies begins. A less stringent regulatory environment could ease certain requirements for employers and restore more flexibility in hiring and classification practices. For workers, this could mean a possible reversal of previous standards, especially around overtime and independent contractor status, which might impact eligibility for some benefits and protections. There is also the possibility of a rollback of vehicle emission standards set by previous administrations. “Reductions in fuel efficiency requirements could ease compliance costs for freight and trucking companies, significantly reducing operational expenses,” opines Robert Khachatryan, CEO and founder of Freight Right Global Logistics. EV May Go QT Shifting standards could impact the equipment that motor carriers buy, how they manage those fleets, what equipment may become obsolete and where they can actually use equipment across the country. Motor carriers who are considering adopting electric vehicles can certainly continue with their plans, but there is likely to be less urgency under the Trump administration. “We will likely see an EPA that is less focused on greenhouse gas emissions for vehicles and less willing to work with aggressive states like California in enacting their own policies and their own aggressive mandates,” says Todd. “The incoming administration may prioritize infrastructure spending, addressing long standing logistical bottlenecks,” says Khachatryan. A proposed $1 trillion infrastructure investment could improve road, rail and port conditions, reducing delays and potentially increasing freight efficiency across the United States. Trump promised a $550 billion — later raised to $1 trillion — infrastructure package but failed to secure a deal during his first term as president. He’ll have a chance to oversee the completion of many high-profile projects jumpstarted by the current Congress’ 2021 infrastructure bill … or he could undermine it by veering off in a different direction. Trump’s plan to impose stiff new tariffs on foreign goods entering the U.S. on his first day will definitely impact the transportation and logistics industry. Renegotiation of the United States-Mexico-Canada Agreement — which replaced NAFTA in 2020 — lies ahead as well. If there were to be across-the-board tariffs, it will primarily affect the customers of motor carriers, although it can have a very real impact on whether cross border traffic is more valuable throughout North America with Canada and Mexico. It can also impact the degree to which drayage operators have volumes to serve. “There is usually an inflationary effect,” says Todd. “So, as customers of motor carriers have potentially less spend on transportation, as consumers potentially have less spend for last-mile deliveries and for products that we all buy, then that can impact the client base as well.” “ Reductions in fuel efficiency requirements could ease compliance costs for freight and trucking companies, significantly reducing operational expenses. —Robert Khachatryan ” DECEMBER 2024 15
Amber McReynolds Named New Chair of USPS Board of Governors The USPS Board of Governors has new leadership as of Dec. 1. Governor Amber McReynolds is new chairwoman, while Governor Derek Kan is now vice chair. Both were selected during a Nov. 14 Board of Governors meeting, with their terms beginning Dec. 1. McReynolds, who recently spoke at NSRMCA’s Orlando convention, was nominated during the meeting by outgoing-chair Roman Martinez IV. Both her nomination and Kan’s nomination went unopposed. Neither one spoke at length following the nominations. McReynolds has served on the board since 2021. Her seven-year term expires in 2026, according to a USPS release. She heads the board’s Election Mail Committee. Kan was appointed to the board in 2022, and his term expires in 2028. He serves on the board’s Audit and Finance Committee, the Compensation and Governance Committee and the Operations Committee. Former chair Martinez noted in his opening remarks that this meeting was likely to be his last on the board. “It has been an honor to serve on the board as chairman for the last three years. … It has been a privilege to serve alongside the people who work here,” he said. “They are dedicated, capable and fully committed to the mission of the postal service.” Also departing was Governor Anton Hajjar, who was serving a holdover year, according to USPS records. Postmaster General Louis DeJoy, who was also in attendance, praised both Martinez and Hajjar for their work on the board. “You have been chairman for three years, and have not only been a strong advocate for the changes we together put forth in the Delivering for America plan, but also have sat atop the organization with a wise and steady hand as it experienced its transformation accomplishments and setbacks,” DeJoy said. He also thanked Hajjar for bringing “a perspective that will be valued in your absence.” By Cameron Ayers Amber McReynolds 16 NSRMCA
DECEMBER 2024 17
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DECEMBER 2024 19
1. Sign up for LinkedIn because it can connect with others. A lot of people are on this site. You can connect with drivers, industry colleagues and experts to learn industry news. 2. Always talk to people wherever you go. People in warehouses or other stops can almost always be helpful to you in some ways. Just be nice and friendly. It can go a long way in your career and help you out of a jam if you need something. 3. Ask friends or fellow coworkers about their own connections, and if you can, try to meet people in their networks to expand yours. 4. Always be yourself. Respect others wherever you go. Don’t be afraid to strike up new conversations with people you don’t know. It could always lead to an important contact. 5. Try to stay in touch with people you meet. It’s important to keep those relationships going, in case you ever need something or if they need you for something. 6. Help others when you can. Don’t be afraid to roll up your sleeves and offer services to someone in need. Especially if that person is a new contact, it could go a long way in forging a network connection. 7. Utilize social media when you can. There are important resources there that can connect you to industry leaders, experts and day-to-day workers. 8. Find people you share common interests with and talk about what connects you to the industry. Brainstorm with them, and you may come up with new ideas that no one ever thought of before. This could lead to some new revolutionary innovation or ways to make your job easier. 9. Share your stories when you can, because they may be useful to others. Your own experiences, although you may not think they are important or useful, could always help out another person. And they, in turn, will likely help you one day. In business, it’s important to make connections with any and everyone around you. You never know what opportunities may present themselves when you strike up a conversation. A new colleague today could become a new partner tomorrow. Here are nine tips for networking in your day-to-day life. Tips for T op 9 : Networking By John Worthen 20 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. DECEMBER 2024 21
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. DeToWYoCoWBeWCoSherry Durocher Vital Statistics What is your most memorable Christmas gift? When all my family was home and we got to spend time together. My son lives in Colorado, and I have one in Wisconsin. The gift of family is the best gift of all. Who taught you how to drive? Me, myself and I. It was very interesting, I would say, because I was learning with a stick shift. What is your favorite vacation spot? Gulf Coast of Texas. I love to fish. Who has been the biggest influence on your life? My daughter. She lives in Virginia, just 27 miles from me. What about your job makes you smile? My customers. I have customers that are the best anyone could have. I can call them and they never [argue]. If someone made a movie about your life, who would play you? Julia Roberts. I love her; she is a woman to admire. Company: S & C Connections Inc. Starting Year: 2001 Contracts: 1 Member since: 2006 Annual Miles: 40,000 Location: Minnesota 22 NSRMCA
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In Memmoriiamm Howard Bancroft 1958-2024 David Hendel 1957-2024 John “Skip” Maraney 1934-2024 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. DECEMBER 2024 25
226 340 221 389 224 8,453 $17,730 $9,337 $13,607 $27,965 $25,722 $39,503 124,487 138,425 159,611 207,843 197,654 470,261 8.2 yrs 9.1 yrs 10.4 yrs 9.5 yrs 11.1 yrs 7.5 yrs Sept. 2024 October 2024 184 342 137 589 297 9,323 $17,279 $12,609 $16,531 $32,514 $19,385 $36,270 128,479 138,034 150,814 201,530 231,095 487,612 8.1 yrs 7.7 yrs 9.6 yrs 8.2 yrs 13 yrs 8.2 yrs actresearch.net 26 NSRMCA
Explore LoadTrek’s capabilities to understand how LoadTrek can facilitate a smooth transition in CLEAR. SOFTWARE DETAI LS Data capture options with GPS providers and or our in house phone app Performance analytics and optimization tools [email protected] loadtrek.net 877-226-0107 Integrated with BlueYonder and FourKites DECEMBER 2024 27
The regulatory environment is top of mind these days, especially when coupled with speculation over potential change. We must strive for compliance from our companies and those with whom we do business to ensure a safe and lawful operation. To do so well requires that we understand the basic cast of characters across regulators and their roles. This article provides a high-level summary of the balance between federal and state jurisdiction with frequently occurring examples of what that means for regulatory agencies governing operations, their jurisdiction and key programs requiring regulatory compliance. Federal and State Jurisdiction — The “Commerce Clause” in the Constitution grants our federal government jurisdiction over traffic routed between the states or between a state and a foreign country. High-impact regulations such as operating authority requirements, safety regulations and the like must be followed by all service providers operating in interstate commerce. Conversely, service providers operating in intrastate commerce are largely subject to state regulation. There is overlap on a case-by-case basis including, for example, a state’s right to govern “rules of the road” and its driver’s license program. Determining Nature of Commerce — The determination of whether traffic is in interstate or intrastate commerce is fact-specific, but not as you may expect. The fact that a vehicle moves only within one state is not in and of itself determinative. The legal test used by courts focuses on the shipper’s intent at the time of tender. The test is not focused on how that interstate service is delivered. Imagine that a shipper requests delivery of a product to a location in another state. This happens every day across the country. The nature of commerce will be interstate even if one carrier handles over-the-road middle mile, the goods sit in temporary storage in transit at a fulfilment center in another state, and then a different carrier handles last-mile delivery within that destination state. Instances of storage in transit and final delivery by another carrier operating in a single state do not necessarily convert any portion of the commerce to intrastate. Those legs and nodes in the outbound logistics supply chain are largely under federal jurisdiction. Federal Motor Carriage and Brokerage — Our federal government holds jurisdiction over motor carrier and broker operations in interstate commerce. Motor carriers are understood as those performing transportation in commerce, LEGAL CORNER Transportation & Logistics Regulatory Agencies, Jurisdiction, Roles and Programs By Jonathan R. Todd 28 NSRMCA
whether as for-hire (hauling goods of others) or private carriers (hauling goods that the carrier sells). Motor carriers must hold operating authority from the U.S. Department of Transportation’s (U.S. DOT) Federal Motor Carrier Safety Administration (FMCSA), including requisite evidence of insurance and agent for service of process. Brokers are understood as those who arrange motor carrier transportation for hire. Brokers must hold broker permits from the FMCSA, including requisite bond or trust fund and agent for service of process. The FMCSA administers and enforces the Federal Motor Carrier Safety Regulations (FMCSRs). This is the key body of regulation for essentially all interstate carriers and brokers but also for certain intrastate functions. FMCSRs address subjects such as driver qualification; drug and alcohol testing; independent contractor owner-operator leasing; equipment safety; and safe operations. Interstate carriers also often participate in a number of other programs, such as Uniform Carrier Registration (UCR) to apply for and maintain operating authority. Participation in the International Fuel Tax Agreement and the International Registration Plan is also common, although those programs function as clearinghouses to manage fuel tax collection and equipment registration across the various states of operation. State Motor Carriage and Brokerage — The states take slightly different approaches to transportation and logistics regulation. Most states regulate intrastate motor carriages through their departments of transportation or their public utilities commissions. A minority of states regulate intrastate brokerage. Service provider registrations and bonds are often required. Some states have issued their own safety regulations for intrastate operations similar to the FMCSRs, while others have expressly adopted the FMCSRs. An operation’s base state will take the lead on fuel tax, equipment registration and plating. Drivers licenses are managed by states where drivers are domiciled. State “rules of the road” apply depending on the state of operation as well as highway use taxes and similar programs. Federal and State Commodity Regulation — Operations involving specific commodities are also subject to regulation for public safety and health. For example, the U.S. DOT’s Pipeline and Hazardous Materials Safety Administration administers and enforces the Hazardous Materials Safety Regulations (HMRs). The HMRs require registration for certain activities, as well as classification, packing, labeling, documentation and safe handling requirements for both shippers and carriers. Another common example at the federal level is the Food and Drug Administration’s Food Safety Modernization Act (FSMA). FSMA governs the safe tender and transportation of certain food products. The commodity specific regulations administered and enforced by state agencies typically focus on the transportation and logistics of alcohol, dairy and pharmaceutical products. State attention to these areas and their requirements vary widely across the nation. Those states that do regulate these commodity-specific activities often apply the requirements to operations within the state territory, even if the nature of commerce for those operations is interstate. 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]. DECEMBER 2024 29
Fuller Wheeler saw a lot of changes in his 70+ years as a mail contractor. However, one may rise above all: Wheeler started out delivering on horseback. He said cars were only used by rich folks early in his career, but he’s glad carriers use vehicles these days with the increasing number of deliveries. Elsewhere on the page is an obituary for longtime NSRMCA member Don Swisher. Horseback Delivery 1995 30 NSRMCA
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Awareness, Use of Security Devices Are Keys to Protecting Mail Cargo The U.S. mail remains a target for thieves, despite special laws designed to protect mail and those who handle it. Those involved have the responsibility to keep the nation’s mail as secure as possible. The first step to keeping mail cargo secure and safeguarding individual safety is to mind your surroundings, according to the U.S. Postal Inspection Service. Much of the work done by postal agents occurs in darkness, or in areas that are secluded from the public. Some activities, like trip planning and sorting, require focusing on the task at hand. Focusing on finding an address or completing a route can mean unauthorized vehicles or people go unnoticed. Being alert does more than help identify a potential threat; it can deter a thief or attacker. Scanning an area frequently shows people you’re paying attention. You can decide to leave the area, call 911 or simply stay alert until you have finished your tasks. Thieves today often depend on information and planning rather than simply hoping to find something valuable in a random theft. They sometimes know when a valuable item or a check is in transit and may try to intercept it. Return addresses often provide clues as to what’s inside a package or envelope. It’s also important to make sure vehicles and facilities are locked. Never share information about your cargo, your route or your customers to anyone you don’t know. If someone is unusually interested in your route or cargo, remember as many details as you can about the person and their vehicle, and report the incident to your postmaster or supervisor. Thieves can also follow vehicles on their routes, hoping for an opportunity to steal mail while the vehicle is stopped. Stops for meals, restroom breaks and other reasons are sometimes unavoidable, so parking spaces should be chosen as carefully as possible. Thieves love darkness, so parking in a well-lit area is always a good idea. All locks, seals and securement devices should be checked before leaving the vehicle, even for a moment, and checked again upon return. Trucks and trailers that allow access to cargo through a rear door can be parked so that the door is difficult to access. Backing up against a building, fence or even another vehicle can make it difficult for thieves to gain access or remove cargo. If it’s not possible to block the door(s), parking so that the rear door is visible from where you’re going to can make it easier to see anyone paying undue attention to the vehicle. Another problem is the increasing robbery of postal carriers. Thieves are often interested in master keys that get them into mailboxes. The U.S. Postal Inspection Service (USPIS) reported 643 carrier robberies in 2023, up nearly 30 percent from the prior year. Worse, injuries resulting from robberies doubled to 61. These incidents are related to cargo, too, since thieves want the keys to gain access to mail that hasn’t been picked up yet or has already been delivered. USPIS recommends keeping all keys chained to your person to prevent a thief from easily snatching them. If you are attacked, you should comply with any demands made, remembering as many details as possible to report later. While there’s no foolproof method for fighting thievery, staying alert and using the tools at hand definitely help. Cliff Abbott is a retired 40-year transportation industry veteran. He resides with his wife Thresa in north-central Alabama. By Cliff Abbott DRIVERS’ CORNER 32 NSRMCA
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A Message From Our Friends at HUB DRIVER QUALIFICATION RECORD REQUIREMENTS FOR MULTI-EMPLOYER OR TEMPORARY DRIVERS MULTIPLE-EMPLOYER DRIVER A multiple-employer driver is defined in 49 C.F.R. Sec. 390.5 as a driver who, in any period of seven consecutive days is employed or used as a driver by more than one motor carrier. A Driver Qualification (DQ) file for a driver meeting that definition and employed under the rules in Sec. 391.63 must include: 1. A medical exam certificate, original or a copy (Sec. 391.43(g)), or (for CDL drivers) a state driving record showing medical qualification status; 2. Documentation of any waiver or variance related to medical certification (Sec. 391.49 or Part 381); 3. A road test form and certificate (Sec. 391.31(g)), or license or certificate accepted in lieu of a road test (Sec. 391.33); 4. The driver’s name and social security number; and 5. An identification number, type and issuing state of the motor vehicle operator’s license. TEMPORARY DRIVERS While motor carriers often turn to temp agencies and other staffing services for drivers, these agencies are not typically regulated as motor carriers. The motor carrier contracting with the staffing service remains responsible for DOT compliance, despite any agreements the two parties may have. If a temporary driver is assigned to one motor carrier long-term, he/she must be treated like any other employed driver and must be fully qualified, with a complete DQ file on hand. Though a service provider may be contracted to create and store that DQ file, compliance responsibilities remain with the motor carrier. If the driver is assigned to more than one motor carrier in a period of seven consecutive days (a “multiple employer driver”), the carriers involved may use the exception in Sec. 391.63, as described above. The first carrier that uses that driver, however, must fully qualify the driver (and create a DQ file) or ensure that a service agent has done that (although compliance always rests with the motor carrier). Subsequent employers may use the abbreviated recordkeeping allowed in Sec. 391.63, providing the exception continues to apply. Similarly, a motor carrier that borrows a driver from another motor carrier can avoid qualifying the driver by obtaining a certificate that states the driver was fully qualified by the primary employer. As with Sec. 391.63, the exception in Sec. 391.65 only applies if the driver is working for two motor carriers in a period of seven consecutive days. If a driver ceases to qualify for the exceptions above, the carrier using him/her at that point must fully qualify the driver under its own program. The carrier cannot use a DQ file created by another employer or staffing service that used the driver, even if that carrier or service is willing to provide a copy. Note that the exceptions above do not apply to a driver who is only working for one motor carrier for a period of seven consecutive days, no matter where the driver worked the previous week or will be working the following week. The seven-day period is consecutive and could include off-duty days. 34 NSRMCA
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36 NSRMCA
NATIONAL STAR ROUTE MAIL CONTRACTORS ASSOCIATION’S JANUARY 11-14, 2025 WESTGATE HOTEL AND CASINO REGISTER TODAY! LAS VEGAS CONFERENCE DECEMBER 2024 37
2024 is coming to an end and I can’t believe it’s almost over. It’s been such a busy year with so many changes and new opportunities. Things have been changing so rapidly and abruptly that it seems like we’re always busy adjusting to the new environment. It also seems like this will be the trend into the first two quarters of the next year as well, with changes expected to come throughout the nation, specifically with a new administration set to take office in Washington, D.C., this January. When talking about change, I’m not only referring to the USPS or the transportation industry, but the entire country is going through a lot of changes. We don’t know where interest rates will be, how many tariffs there will be and on which countries, or what new laws or regulations will be passed. Seems like everyone’s waiting to see how things will go and adjust accordingly to make sure you’re paying the right taxes, following the correct regulations and making sure to strategize properly. Interesting to see what role Elon Musk and Vivek Ramaswamy will play in the government with the proposed Department of Government Efficiency (DOGE) and where that leaves the USPS. We will definitely keep an eye out for any further developments on this front to ensure association members stay informed. I’ve seen my fair share of changes, and they are not fun, but can be very rewarding if you stick through them until the end. The way I see it is if you keep working hard and provide service to your customers, then things will work out, especially if it works out for your customers. As long as we are pleasant and joyful with ourselves, then we can create what we want in this world. So, during this holiday season I pray and wish for all of you to be blessed with pleasantness. We could all use more of that in the world. Always remember to keep calm and distance your personal life from business. Wishing you joy, love and warmth this holiday season! May your days be filled with laughter, your heart with peace, and your home with the magic of the season. Happy Holidays! President’s Perspective Jack Khudikyan NSRMCA President 38 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 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 March 2022 283.1 April 2022 284.6 May 2022 288.0 June 2022 292.5 July 2022 292.2 August 2022 291.6 Month & Year Rebased 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 May 2024 308.2 June 2024 308.1 July 2024 308.5 August 2024 308.6 September 2024 309.0 October 2024 309.4 40 NSRMCA
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