ATR 3 2019 digital

Award-Winning Magazine of the Arkansas Trucking Association Vol. 24 | Issue 3 2019 | $4.95
















































TOM DOTY



Glory Days


































2019 Conference Coverage | USMCA | HOS CHANGES

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The “category” tested consisted of Class 8 trucks with North American 12-13L engines.
Paccar MX-13 and (c) 2018 Volvo VNL670 with Volvo D13. Actual customer results for fuel economy may vary.
A26 engine against the (a) 2018 Freightliner Cascadia CA126SLP with DD13, (b) 2018 Kenworth T680 with
* Based on averaging the third party testing results for fuel economy comparing the International LT with
© 2017
, Inc. All rights reserved. All marks are trademarks of their respective owners.
































INDEPENDENT TESTS PROVE INTERNATIONAL® LT® SERIES POWERED
BY A26 BEATS THE COMPETITION BY OVER 4% ON AVERAGE*
, Inc. All rights reserved. All marks are trademarks of their respective owners. © 2017 , Inc. All rights reserved. All marks are trademarks of their respective owners. © 2017
* Based on averaging the third party testing results for fuel economy comparing the International LT with * Based on averaging the third party testing results for fuel economy comparing the International LT with
A26 engine against the (a) 2018 Freightliner Cascadia CA126SLP with DD13, (b) 2018 Kenworth T680 with A26 engine against the (a) 2018 Freightliner Cascadia CA126SLP with DD13, (b) 2018 Kenworth T680 with
, Inc. All rights reserved. All marks are trademarks of their respective owners. Paccar MX-13 and (c) 2018 Volvo VNL670 with Volvo D13. Actual customer results for fuel economy may vary. © 2017 © 2017 , Inc. All rights reserved. All marks are trademarks of their respective owners. , Inc. All rights reserved. All marks are trademarks of their respective owners. Paccar MX-13 and (c) 2018 Volvo VNL670 with Volvo D13. Actual customer results for fuel economy may vary. © 2017
The “category” tested consisted of Class 8 trucks with North American 12-13L engines. * Based on averaging the third party testing results for fuel economy comparing the International LT with * Based on averaging the third party testing results for fuel economy comparing the International LT with The “category” tested consisted of Class 8 trucks with North American 12-13L engines. * Based on averaging the third party testing results for fuel economy comparing the Internat
A26 engine against the (a) 2018 Freightliner Cascadia CA126SLP with DD13, (b) 2018 Kenworth T680 with A26 engine against the (a) 2018 Freightliner Cascadia CA126SLP with DD13, (b) 2018 Kenworth T680 with A26 engine against the (a) 2018 Freightliner Cascadia CA126SLP with DD13, (b) 2018 Kenworth T680 with
Paccar MX-13 and (c) 2018 Volvo VNL670 with Volvo D13. Actual customer results for fuel economy may vary. Paccar MX-13 and (c) 2018 Volvo VNL670 with Volvo D13. Actual customer results for fuel economy may vary. Paccar MX-13 and (c) 2018 Volvo VNL670 with Volvo D13. Actual customer results for fuel economy may vary.
The “category” tested consisted of Class 8 trucks with North American 12-13L engines. The “category” tested consisted of Class 8 trucks with North American 12-13L engines. The “category” tested consisted of Class 8 trucks with North American 12-13L engines.
International Trucks commissioned the PIT Group to conduct industry-recognized TMC Type IV fuel
economy tests comparing the International LT Series Powered by A26 with competitive 12-13L powered
tractors of similar specifications. All vehicles were tested on a 300+ mile route with hills and flatlands.
In the end, International beat all others in the test, proving that LT Series delivers tangible fuel savings
over the competition.


540
40


530
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(479) 967-5800 (870) 536-4685 (479) 770-1200 (501) 945-8400
143 State Rd. 331 North 4325 Highway 65 South 807 S. Bloomington 11401 Diamond Drive
Russellville, AR 72802 Pine Bluff, AR 71602 Lowell, AR 72745 N. Little Rock, AR 72117




www.summittruckgroup.com STAY CONNECTED

IN THIS ISSUE






VOLUME 24 | ISSUE 3 2019






FEATURES


COVER STORY
30 GLORY DAYS
Glory Transportation president Tom Doty talks faith and freight
By Lacey Thacker

CAPITOL WATCH
19 MULLEN: HOURS OF SERVICE CHANGES COMING, BUT SLOWLY
FMCSA addresses the current and coming regulations that drive trucking
conversations at ATA conference
By Steve Brawner

24 NORTH AMERICAN TRADE DEAL GOOD FOR ECONOMY, TRUCKING
Economist Bob Costello shares insights on trade talks and tariffs
By Steve Brawner

27 ARKANSAS TAX REFORM IMPROVES THE BUSINESS CLIMATE
AFC meeting includes tax insights at ATA conference
By Matthew C. Boch

SCENE AROUND
40 TRUCKING BY THE BOOK
Recap of the 2019 ATA Annual Conference & Vendor Showcase
By ATR Staff







DEPARTMENTS


Up Front: by Shannon Newton 7
They Said It 8
News in Brief 10
New Members 13
Calendar of Events 14
Advertiser Resource Index 41
Insider Trucking 54
Stat View 56
The Last Word: by Dan Cushman 58


PHOTOS ON THIS PAGE AND COVER BY JOHN DAVID PITTMAN

ARKANSAS TRUCKING REPORT | Issue 3 2019 5

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Page 1 of 1

UP FRONT



Award-Winning Magazine of the Arkansas Trucking Association
Arkansas Trucking Report is owned by the Arkansas Trucking Association,
Inc. and is published bimonthly. For additional copies, to order reprints
of individual articles or to become a subscriber to ATR, contact Caitlin
Walraven at 501.372.3462.
executive editor
SHANNON NEWTON
managing editor
BETHANY MAY
contributing writers GONE FISHIN’
STEVE BRAWNER LACEY THACKER
[email protected] [email protected]
DAVID MONTEITH ANGELA THOMAS It’s summertime. Time for beach vacations, pool days, theme parks and spending quality
[email protected] [email protected]
JIM HARRIS TODD TRAUB time doing things you enjoy with the people who make it enjoyable.
[email protected] [email protected]
MOLLY MILLER LEA WHITE
[email protected] [email protected] In trucking, summer activities include a fast-paced produce season when those who
art director haul fruits and vegetables have tight timelines for delivering watermelons and peaches
JON D. KENNEDY
The Freelance Co. LLC, [email protected]
production editors to shelves in time for picnics and barbecues. While kids gather ‘round the campfire
SARAH SHEETS, KATIE THOMASON, CAITLIN WALRAVEN, SKYLAR HATFIELD telling spooky stories before heading back to their bunks, bellies full of marshmallow,
illustrator
BRENT BENNETT
[email protected] we are telling our own stories. It’s an essential part of what we do all year round, but the
photographers
JON D. KENNEDY, JOHN DAVID PITTMAN audiences vary from season to season.
I was recently invited to speak to a group of interns spending their summer working
for the office of U.S. Sen. John Boozman in Washington D.C. While it might not be
www.arkansastrucking.com immediately obvious why the leader of the trucking association back in Arkansas would
president
SHANNON SAMPLES NEWTON invest time and effort into a small group of college students spending their summer
[email protected]
director of operations in D.C., I eagerly hung my “Gone Fishin’” sign (or rather I set my out-of-office email
SARAH NEWMAN SHEETS
[email protected] responder), and boarded a plane to the Beltway.
communications director
BETHANY MAY
[email protected] These engagements are all fishing expeditions of sorts. Typically speaking to civic
director of safety services
SKYLAR HATFIELD
[email protected] or community groups, we try to define or redefine the way that people think about
director of loss prevention trucking. We hope to catch people’s interest by telling the story of the challenges we
MIKE BRUST
[email protected]
director of corporate services overcome to make the American way of life possible.
KATIE THOMASON
[email protected]
business development coordinator Gathered around the board room, the summer interns didn’t appear particularly
AMANDA LAMB
[email protected] different than a collection of college students that you might find at a coffee shop or
executive assistant
CAITLIN WALRAVEN campus book store. However, Congressional internships are competitive and generally
[email protected]
CHAIRMAN OF THE BOARD filled by some of the brightest, most ambitious and politically inclined students. For that
DAN CUSHMAN
PAM Transport, Inc.
President & CEO reason, I couldn’t help but wonder who these young people might become.
BOARD OF DIRECTORS
ROCHELLE BARTHOLOMEW MARK MORRIS
CalArk International, Inc. Morris Transportation Services, LLC
President President Likely, they will go on to staff members of Congress, work in business, and be engaged,
MARR LYNN BEARDEN JAMES REED
Marrlin Transit, Inc. USA Truck if not influential, members of our communities. The opportunity to shape the way they
President CEO
GREG CARMAN G.E. “BUTCH” RICE III think about the trucking industry, our employees, our contribution to the standard of
Carman, Inc. Stallion Transportation Group
President President & CEO
JOHN CULP ALAN RIELS living they enjoy, is one to seize! Set the hook!
Maverick USA Dedicated Logistics, LLC
President President & CEO
JEFF HAMMONDS JOHN SMITH
Walmart Transportation LLC FedEx Freight Any time you represent trucking, to the seats of power or a kindergarten classroom, you
Vice President - Logistics President
CRAIG HARPER VICKI JONES STEPHENS are in that boat on the lake with me, swapping stories about our life in this industry.
J.B. Hunt Transport C.C. Jones, Inc.
Executive Vice President & COO President

AL HERINGER IV TIM THORNE
Star Transportation, LLC ABF Freight I’m metaphorically asking you to put on your khaki bucket hat, pick up your tackle box
Vice President President & CEO
JEFF LOGGINS DOUG VOSS and join me out on the water. Drop your hook, help us cast a wide net like commercial
Loggins Logistics, Inc. University of Central Arkansas
President & CEO Associate Professor of Logistics
fisherman, covering as much area as possible without too much effort. We can all drop
ROB LYALL STEVE WALTON
Tyson Foods, Inc. Southern Tire Mart
Vice President - Transportation National Sales Manager nets and share our experiences in trucking that have made us love it.
Distribution
MIKE MCNUTT
Distribution Solutions, Inc.
CEO, Owner To join me talking about trucking this summer, you don’t need to be especially skilled or
An affiliate of the American Trucking
Associations eloquent. You just need to show up to the lake and be honest. The catch of the day may
Arkansas Trucking Association (ATA) is an Arkansas corporation of trucking
companies, private carrier fleets and businesses which serve or supply the be advocates to tomorrow’s leaders.
trucking industry. ATA serves these companies as a governmental affairs
representative before legislative, regulatory and executive branches of
government on issues that affect the trucking industry. The organization also
provides public relations services, workers’ compensation insurance, operational
services and serves as a forum for industry meetings and membership relations.
For information, contact ATA at:
1401 West Capitol, Suite 185
Post Office Box 3476 (72203) Shannon Newton
Little Rock, Arkansas 72201 Drivers Legal Plan
Phone 501.372.3462 Fax 501.376.1810 President, Arkansas Trucking Association
www.arkansastrucking.com
ARKANSAS TRUCKING REPORT | Issue 3 2019 7
Drivers Legal Plan

THEY SAID IT













“I was hoping “The taxes from

that we could tariffs have now


compartmentalize. outgrown the

Obviously not.” benefits from the



—Rep. Peter DeFazio (D-Ore.), chairman of the House Transportation Committee
on Pres. Trump’s ultimatum for the Democrats, stop investigating Russia’s tax reform act.”
involvement in our election or no infrastructure package

—Engine-maker Cummins CEO Tom
Linebarger discussing how tariffs’
“We’ve been waiting for this effects outweigh the 2017 tax
reforms that lowered the top tax
for so many freaking years, rate for US corporations


and to be from St. Louis and

put this sweater on every night, “If driver

holy cow. We brought it home.” pay had been
pegged to the

—St. Louis Blues forward Patrick Maroon after helping his team win its first
Stanley Cup title in NHL history consumer
price index in


“She iS a very Special perSon 1980, most of


with extraordinary talentS, who today’s drivers
would be
haS done an incredible job! i bringing home


hope She decideS to run for six figures in

Governor of arkanSaS— wages.”


She would be fantaStic.” —OOIDA President Todd Spencer
during his address to the House
Subcommittee on Highways and
—Pres. Trump praises Arkansas native Sarah Huckabee Sanders who recently Transit on how compensation leads
announced she is leaving her position as White House press secretary to drivers leaving the industry

8 Issue 3 2019 | ARKANSAS TRUCKING REPORT

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TRUCK SALES | PARTS | SERVICE | BODY SHOP | LEASING & RENTAL | FINANCE | FACTORING | CARRIER

NEWS IN BRIEF


















in the safety of every employee,” said dock supervisor at Roadway Express.
Shannon Newton, the associa- In his 30+ years of trucking, he has
tion’s president. “We celebrate gained experience with less-than-
and reward that effort truckload, bimodal and railroad, and
because even small busi- truckload service. In 2009, he moved
nesses can have a large to Northwest Arkansas to lead PAM,
impact when we work one of the top 100 trucking compa-
together for the safe- nies in the U.S. He has served on the
ty of the roads we all Arkansas Trucking Association’s Board
share.” of Directors for 10 years.
Newton said that Jeff Hammonds,
the fund has distrib- vice president of
uted more than $25.8 logistics for Walmart
million in dividends to Transportation
enrolled trucking com- will replace Tracy
panies since the Arkansas Rosser, who recently
Trucking Association created the fund retired from his role
and $11.1 million since 2010. as senior vice president of Walmart
Members in good standing with Transportation.
good loss experiences received dividend The Board
checks ranging from $100 to $101,000. also includes allied
ATA SELF INSURERS FUND positions to represent
ANNOUNCES $700,000 ATA ELECTS NEW MEMBERS TO members of the
DIVIDEND BOARD OF DIRECTORS association who
The Arkansas Trucking Association The Arkansas Trucking Association provide supplies,
Self Insurers’ Fund has declared a held elections for its newest members equipment or other
$700,000 dividend to 57 trucking com- and new chairman for the Board of the services to the industry. Steve Walton,
panies that are enrolled in its workers’ Directors at its annual conference in the national sales manager at Southern
compensation insurance trust. Little Rock, Ark. May 15 – 17. Tire Mart in North Little Rock, was
The Arkansas Trucking Association Outgoing named to the newest allied position.
created the insurance trust in 1993 to Board Chairman Outgoing chairman Heringer said
help members control the cost of work- Al Heringer IV, vice one of his goals as chairman had been
ers’ compensation insurance. The trust, president of Star to see an increase in fuel tax and pro-
which provides coverage to over 4,200 Transportation, nounced pride in the trucking industry
employees, stabilizes costs and rewards announced Dan for showing up when it mattered and
employers for safe operations. Any sur- Cushman, president appreciation of Governor Hutchinson
plus premiums collected are returned and CEO of PAM Transport, as the for supporting much needed infrastruc-
to members in the form of dividends new chairman to an audience of ATA ture improvements. “I’m proud of our
after injury claims and other expenses members in attendance. As chairman, political progress and success, advancing
are paid. Cushman will serve a one-year, renew- solutions to a problem that has plagued
“Safety is our top priority as an able term. our industry and our state for years,” he
industry, and the members of our fund Cushman has a well-rounded said. “I’m proud of the work we’ve done
recognize the importance of investing transportation career that began as a 

10 Issue 3 2019 | ARKANSAS TRUCKING REPORT

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858.275.2190 [email protected]

NEWS IN BRIEF, TMCSuperTech events, and points are study from the Capgemini Research
Continued from page 10 awarded or deducted for the time trucks Institute. The report, “The Autonomous
are repaired and for the longer they Car: A Consumer Perspective,” found
as a Board to ensure that our associa- remain in service. the Chinese and millennials are two
tion is financially sound and positioned Similar AR technology is used in groups that report feeling the most
to be a leader in Arkansas politics and training environments to give students positive anticipation for a future with
the trucking industry nationwide, ben- better access to expensive tools and self-driving vehicles.
efitting the trucking industry here for parts while learning the skills necessary In a global survey of 5,000 people,
years to come.” to perform the kind of complex repairs researchers found that over half (53
and maintenance that today’s commer- percent) of Chinese respondents
WHEN THE TRUCK GARAGE cial vehicles require. described their feelings toward autono-
MEETS THE ARCADE “We made the decision to cre- mous vehicles as positive and 12 per-
A new video game (named ate this game with Design Interactive cent reported negative feelings. While
TMCSuperTech: The Game) by Design for two primary reasons,” said Robert the respondents in the United States
Interactive will offer players a chance Braswell TMC executive director. “To and United Kingdom had more mixed
to test their technician skills using aug- promote awareness of the vocation feelings (33 percent and 35 percent
mented reality technology. among middle and high school students respectively).
Design Interactive’s product is a who make up the next generation of One reason for the enthusiasm
game for Android or Apple phones and vehicle maintenance personnel and in China could be the government’s
tablets that models the Technology to help technicians prepare for the encouragement of the technology. In
& Maintenance Council’s National TMCSuperTech competition by provid- Dec. 2018, the Ministry of Industry and
Technician Skills Competition (or ing a hands-on training experience for Information Technology set a national
TMCSuperTech), the annual two-day the skills challenges.” goal for at least 30 percent of new vehi-
skills test for professional commercial cles to have some level of autonomous
vehicle technicians that includes hands- THE CHINESE AND MILLENNIALS capabilities by 2020. Three Chinese cit-
on challenges that real technicians face ARE MOST EAGER FOR SELF- ies also rank in the top ten worst traffic
every day. Using AR technology, vehicles DRIVING CARS in the world.
navigate a fictional city with fleets of Consumer preference for self- Millennials (under age 35) also
moving trucks that require virtual ser- driving cars is set to double within feel more positively about self-driving
vice. Players execute tasks inspired by the next five years, according to a new vehicles and are more likely to welcome
smart technology in their daily lives.
The research suggests that while
only 25 percent of those surveyed would
prefer riding in a self-driving car this
year, 52 percent will say driverless cars
will be their preferred mode of trans-
port by 2024. Fuel efficiency, reduced
emissions, time-savings are just a few of
the benefits that consumers are antici-
pating, and over half say they would be
willing to pay up to 20 percent more for
an autonomous vehicle.
Markus Winkler, Global Head of
Automotive at Capgemini said that
while optimism is high for autonomous
technology, auto companies should con-
sider the fears and anxieties of future
customers who are hesitant to trust
vehicles to interact with other vehicles,
navigate unexpected situations and stay
secure from hackers.






12 Issue 3 2019 | ARKANSAS TRUCKING REPORT

FMCSA PILOT BEGINS
RECRUITING YOUNG MILITARY WELCOME,
DRIVERS
NEW ATA MEMBERS!



Together, We Are the Power of Association


We welcome the following new members. Each new member
adds to the Arkansas trucking industry’s collective strength to
promote, protect and serve with a unified voice.


FOR-HIRE CARRIER PRESSURE SYSTEMS INTERNATIONAL
MEMBERS San Antonio, Texas
210.222.1926
CELO TRANSPORT Delivers onboard tire management systems
The Federal Motor Carrier Safety Springdale, Ark. for commercial and recreational vehicles
Administration’s pilot program for 479.750.8603 REVIEW MED, L.P.
Number of Trucks: 13
18-21-year-old military truck drivers Dallas, Texas
is now accepting its first applications. DRIVELINK SERVICES, LLC 214.696.3855
Approved younger drivers with the mili- Springdale, Ark. National managed care provider
479.717.7365
tary equivalent of a commercial driver’s Number of Trucks: 29 TRANSFLO
license will be able to operate across K.L. BREEDEN & SONS LLC Tampa, Fla.
state lines if they are sponsored or hired Terrell, Texas 813.350.8793
by a participating fleet. 972.563.2401 Offers electronic management solutions
software for trucking industry
Currently, drivers between the ages Number of Trucks: 869
of 18 and 20 are forbidden from operat- VECTOR
San Francisco, Calif.
ing interstate, but can operate intra- ALLIED MEMBERS 415.408.5252
state. The pilot program will serve two JMS CONSULTING, LLC Offers electronic management solutions
groups: military veterans or reservists Conway, Ark. software for trucking industry
who are transitioning back to civilian 501.329.8902
Provides field, telephonic and
life and the trucking industry that faces catastrophic nurse case management
a shortage of qualified drivers.
The three-year pilot requires For membership
FMCSA to compare the safety records information, visit arkansastrucking.com
of the younger drivers with the control
group of existing drivers 21-24 who
have comparable training and experi-
ence driving trucks. The results of this trucks in addition to the company’s 36 driver role once it’s clear the vehicle will
data analysis can help the agency prove trucks that are driven by humans. be safely operated by the autonomous
whether age significantly impacts safety. “Driving trucks is extremely tough vehicle in tandem with the trained
FMCSA is recruiting 70 carri- and so is finding the right drivers to driver who won’t need to be physically
ers to participate by enlisting at least be a part of this unique opportunity,” behind the wheel. The remote driver
200 drivers for the control group. Law says Starsky Robotics Founder and CEO will be especially important for control-
enforcement will have access to a list of Stefan Seltz-Axmacher. “We’re able to ling the first and last mile of the route.
the participating carriers and drivers, get to know our drivers over the course
who will carry an exemption letter for of a few months to see if they have ATA ANNOUNCES 2019
inspections. what it takes to advance into being a TECHNICIAN SCHOLARSHIP
safety driver and eventually into a tele- RECIPIENTS
THE ROBOTS ARE ALSO op driver.” The Arkansas Trucking Association
RECRUITING DRIVERS In an effort to improve the work- is pleased to announce the 2019
Autonomous trucking start-up life balance of truck drivers, the com- recipient of the Carl Tapp Memorial
Starsky Robotics is recruiting truck pany hires traditional drivers with the Scholarship Fund. High school senior
drivers to remotely operate commercial goal of moving them into a remote 

ARKANSAS TRUCKING REPORT | Issue 3 2019 13

CALENDAR OF EVENTS







AUGUST SEPTEMBER
AUGUST 13 - 17 SEPTEMBER 5
AMERICAN TRUCKING SAFETY MANAGEMENT COUNCIL
ASSOCIATIONS SAFETY MEETING
MANAGEMENT COUNCIL’S SEPTEMBER 8 - 14
NATIONAL TRUCK DRIVING NATIONAL TRUCK DRIVER
CHAMPIONSHIPS AND APPRECIATION WEEK
NATIONAL STEP VAN DRIVING
CHAMPIONSHIPS SEPTEMBER 12 ity of future skilled workforce through
Pittsburgh, Pa. ATA’S TRUCK DRIVER the development of framework skills
APPRECIATION DAY that include personal, workplace and
AUGUST 21 TA Petro
ATA’S NEW MEMBER BRUNCH North Little Rock, Ark. technical skills grounded in academics.
The Victory Building McKnight also won the 2019 Northwest
Little Rock, Ark. SEPTEMBER 15 - 19 Arkansas Regional Career and Technical
AMERICAN TRUCKING
AUGUST 27 - 30 Leadership Award. This fall he plans to
NATMI’S MOTOR FLEET ACCIDENT ASSOCIATIONS’ TECHNOLOGY attend Northwest Technical Institute in
INVESTIGATION & ADVANCED & MAINTENANCE COUNCIL Springdale, Ark.
ACCIDENT INVESTIGATION FALL MEETING & SUPERTECH
The Victory Building COMPETITION “This year’s crop of applicants was
Little Rock, Ark. Raleigh, N.C. outstanding. We had students from
AUGUST 29 SEPTEMBER 22 - 26 across the state with excellent creden-
ACCOUNTING & FINANCE COMMERCIAL VEHICLE SAFETY tials,” says Kenneth Calhoun, founding
COUNCIL/MAINTENANCE & ALLIANCE ANNUAL CONFERENCE & member of the scholarship committee.
TECHNOLOGY COUNCIL JOINT EXHIBITION “Ryan rose to the top, and when the
MEETING Biloxi, Miss. process was complete, the choice was
ArcBest
Fort Smith, Ark. clear. We are excited at the prospect of
having him join our industry. It will be
exciting to track just how far he goes.”
The Arkansas Trucking
For calendar information, visit Association’s Maintenance &
arkansastrucking.com Technology Council established the Carl
Tapp Memorial Scholarship Fund to
celebrate Carl Tapp, the council’s first
chairman, and his career-long commit-
ment to nurturing new talent in the
ing’s future technicians,” says Shannon industry.
NEWS IN BRIEF, Newton, president of the Arkansas This scholarship has been made

Continued from page 13 Trucking Association. “This year’s schol- possible by the vision and investment in
arship recipient will someday be caring the future of trucking in Arkansas by
Ryan McKnight of West Fork High for the machines we share the road with the following companies and individu-
School will receive $7,500 to pursue every day, and we wish him well in his als: ArcBest Companies, Bruce Purkey,
training for a career in medium/heavy education and career because his suc- DAVCO Technology, Kenneth Calhoun,
duty truck technology. cess is our safety.” Maverick Transportation, McKee Foods
“Arkansas relies on the trucking While at West Fork High School, Transportation, Pressure Systems
industry as a major employer in the Ryan McKnight has been a member International, Summit Truck Group,
state. One in twelve working Arkansans of the Future Farmers of America and TechForce Foundation, The Tapp Family,
have a career in our industry. It is vital Future Business Leaders of America. He Truck Centers of Arkansas, Truck-Lite
to the state’s economy that we capture also played football and baseball and Co., and Walt Luethy.
the right talent and make the highly was a student officer for SkillsUSA, an
skilled training accessible to truck- organization that improves the qual- 

14 Issue 3 2019 | ARKANSAS TRUCKING REPORT

ARKANSAS TRUCKING REPORT.indd 1 5/24/19 11:05 AM

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cHrIS SPear
United States of Trucking

Terry Wallace
TakING Drafts the Transco Lines Fantasy Team
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ANTI-INDEMNIFICATION PASSES | TECH IN TRUCKING | CARGO THEFT
Focus. Drive. Stay Alive. | bREAKING CALIFORNIA | bLOCKCHAIN SPOT MARKET CLIMb | TRUCK DRIVER APPRECIATION DAY















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Arkansas Trucking Report (ATR) boasts more than 25,000

readers nationwide and we continue to grow.

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If you want to reach this highly targeted, influential group of our industry's leading decision-makers and ask
them to consider purchasing your products or services, then you’ll want to place an ad in every issue of ATR.
Please contact Amanda Lamb at [email protected] to make it happen.

NEWS IN BRIEF, Hemp and marijuana are both types of sion, the Idaho House passed a bill that
Continued from page 14 the cannabis plant. But unlike marijua- would legalize hemp. However when
na, hemp does not contain enough THC the Senate amended the bill to keep the
USDA CLARIFIES CONFUSING chemicals to produce the “high.” substance illegal, but allow its trans-
HEMP TRANSPORT LAWS The memo came after several driv- port, the House rejected the changes.
The U.S. Department of ers were arrested for hauling hemp. The session adjourned with no changes
Agriculture’s General Counsel Stephen In Idaho, a state that does not distin- to the status quo. ATR
Vaden issued a memo in May clarifying guish between hemp and marijuana,
that hemp can be transported over state the accused face prison time for felony
lines according to new provisions in the drug trafficking. Even when the prod-
2018 Farm Bill. uct was determined to be hemp and
Hemp and its seeds are no lon- found to contain no THC (a conclusion
ger schedule 1 controlled substances, that was drawn after law enforcement
according to the Farm Bill, and while ironically shipped the substance to a lab
states and tribes can regulate hemp in out of state), the charges were still not
their own jurisdictions, they will not dropped.
be able to stop it from legally being The drivers’ employer Big
produced in another jurisdiction and Sky Scientific is suing the state
transported. to get the freight, truck and
Industrial grade hemp is becoming trailer back stating that the
an increasingly sought-after raw mate- hemp was legally produced
rial for a growing array of industrial in Oregon and was being
and consumer goods, including increas- hauled to Colorado
ingly popular CBD oils, which are used for processing.
for health purposes by many Americans. During its ses-
















































ARKANSAS TRUCKING REPORT | Issue 3 2019 17

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Mullen: Hours of Service



Changes Coming, But Slowly




FMCSA addresses the current and coming regulations that drive trucking
conversations at ATA conference








By Steve Brawner
Contributing Writer

The Federal Motor Safety
Administration hopes to change hours
of service regulations, but change comes
slowly in Washington, D.C.
“Capitol Hill rarely gets things done
these days, but even on the regulatory
side, things do not move very quickly,”
said Jim Mullen, FMCSA chief counsel,
at the Arkansas Trucking Association
Business Conference & Vendor
Showcase in Little Rock May 15.
Mullen said the idea for revamp-
ing hours of service regulations started
taking shape last summer, but careerists
at the agency said rules require three-
and-a-half years to pass. The adminis-
trator is pushing for a tighter timeline,
though.
A recent advance notice of pro- “…ELDS WERE … NEVER GOING TO BE THE SILVER
posed rulemaking (NPRM) covered BULLET TO FIX EVERYTHING.”
several areas related to hours of service
regulations. Those include changes
regarding the required 30-minute rest —JIM MULLEN, FMCSA CHIEF COUNSEL
break, short-haul operations, driving
in unexpected adverse conditions and
split sleeper berth times. In addition,
the agency is seeking comment on driven by the data,” he said. “What does was a surprise to both Mullen and to
petitions for rest break changes made the data show? What do the studies FMCSA Administrator Ray Martinez.
by the Owner-Operator Independent show? What can we prove qualitatively “I can’t promise you June 7 it’s
Drivers Association (OOIDA) and and quantitatively in order for us to jus- going to be done, but I can tell you
TruckerNation. tify changing the hours of service?” we’re very far along in the NPRM pro-
Mullen said the agency held five cess,” Mullen said.
listening sessions with stakeholders TIMELINE There will be a 45-day comment
across the country. A common theme Mullen said the Department of period and the agency will look at com-
was the need for greater flexibility. The Transportation’s website said the rule- ments and data, but he doesn’t know
hottest topics were the 30-minute rest making notice would go to the Federal when a final rule will be issued.
break and the sleeper berth issues. Register, the government’s official jour- “A very aggressive schedule would
“Everything at FMCSA is essentially nal, June 7 for publication. That date 

ARKANSAS TRUCKING REPORT | Issue 3 2019 19

be the end of 2019,” he said. agency after starting a consulting firm OTHER RULES IN PROGRESS
Results since the electronic logging in 2016. Prior to that, he served more The agency is trying to complete
device mandate went into effect have than a decade as Werner Enterprises’ work in other areas. The day before
been good, Mullen said. Hours of ser- executive vice president and general Mullen’s address, FMCSA published
vice violations are down 50 percent, and counsel. a request for comment in the Federal
less than 1 percent of roadside inspec- He praised Martinez, who he said Registry regarding a pilot program
tions have found a motor carrier did seeks to collaborate with stakehold- allowing 18-20-year-old drivers without
not have either an ELD or an allowed ers. He said the Trump administration military experience to cross interstate
automatic onboard recording device. is more open to stakeholders than the lines. The agency is seeking feedback
In December, even those AOBRDs are Obama administration was. Meanwhile, regarding technology, training, hours of
required to be transitioned to ELDs. Transportation Secretary Elaine Chao operation and other subjects. The FAST
Researchers from the Act, the highway fund-
University of Arkansas and ing bill in 2015, called
Northeastern University for establishing a pilot
published a study earlier program involving drivers
this year that looked at with military experience,
driver inspections from but it has not yet begun.
Jan. 1, 2017, through Sept. Mullen said many on
1, 2018, and found that Capitol Hill would like
while the mandate did to expand that option
improve compliance with to other drivers, and the
hours of service, it did not proposed DRIVE-Safe Act
reduce crashes. would do so by law.
Mullen questioned the Mullen said regula-
data and cautioned against tors know there will be
putting too much weight differing opinions on the
into such studies, partly subject. The American
because too many factors Trucking Associations
contribute to accidents, favors allowing younger
including fatigue. drivers to travel across
“I think everybody in state lines. OOIDA is
this room knows that ELDs opposed. He’s had discus-
were … never going to be sions with people who say
the silver bullet to fix everything,” he starts every address by saying that safety they might like to see a rule change, but
said. is the top priority. they wouldn’t hire drivers that young.
He said the ELD mandate will President Trump signed an execu- “I’ve heard people in the indus-
allow the agency to reconsider hours tive order after coming into office try say, ‘Look, I think we can build a
of service rules, a task that previously requiring agencies to identify two rules better mousetrap under this type of
was difficult because there was so much or regulations for elimination for every a program where you have mandatory-
“creative editing” by fleets and drivers. one they enacted. Mullen said the type training requirements, mandatory
“So finally we were able to rephrase Department of Transportation has been technology on the trucks, mandatory
the dialogue, the discussion, and get to leading the way in that regard, elimi- this, mandatory that, and you’re going
the point, which should be hours of ser- nating or modifying 20 rules for every to be better off than under the current
vice,” he said. one that was passed. system, which is essentially if you’re 21
Mullen said that prior to the man- “So if you’re a believer in the fact and you obtain your CDL, OK, here’s
date going into effect, carriers were that the government has regulated the your key. Go ahead and drive,’” he said.
lobbying members of Congress to block industry much too extensively in the The agency also is developing
it, and they in turn were talking to last several years, that’s good news,” mandatory driving criteria for entry
FMCSA. Mullen would respond to their he said. “And we’re going to continue level drivers. The rules are supposed to
arguments by saying they were asking to that process. And we want to do it in go into effect in 2020, but only three
let carriers and drivers cheat. conjunction and collaboration with of five prongs will be ready by then: a
Mullen is responsible for FMCSA the regulated community because we requirement that training schools be
legal policy and supervises a team of think you folks know as well as anybody
about 40 attorneys. He came to the what’s best …” 

20 Issue 3 2019 | ARKANSAS TRUCKING REPORT



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certified by FMCSA, a requirement that
entry-level drivers complete a a certified
training program, and a description of
what the program will entail. The other
two rules will be related to the informa- “…I CAN’T THINK OF A CLEARER METHOD OF
tion technology processes. MOVING THAT NEEDLE TO PREVENT HIGHWAY
The agency will make its Drug and ACCIDENTS THAN TAKING CHRONIC DRUG USERS OFF
Alcohol Clearinghouse operational by
a planned start date of January 2020. THE ROAD. … IT’S THE LOWEST HANGING FRUIT OF
Knowing the clearinghouse’s impor- THE LOWEST HANGING FRUIT. THE DOT HAS WANTED
tance to the regulated community and THIS TO COME TO FRUITION FOR QUITE SOME TIME.”
to safety, the agency has “thrown full
resources” at the effort, he said.
In response to a question about —JIM MULLEN, FMCSA CHIEF COUNSEL
hair follicle testing, Mullen said the
FAST Act requires the Department of
Health and Human Services to create
guidelines, followed by a rulemaking regarding operations. FMCSA will be have reported that the agency will adopt
process allowing carriers to replace focused on issues such as ensuring the model in September, which may or
their current urine tests with hair fol- the cargo is secured properly, how the may not be true.
licle tests. Currently, the urine tests trucks will get out of the way of emer- “There is no deadline by which the
are required, and if a carrier wants to gency vehicles, and how the trucks will agency has go to to IRT,” he said. “In
use the more reliable hair tests, it must interact with law enforcement. fact, there is no mandate that says the
make the extra investment on its own. “We get asked or used to get asked agency has to go to IRT. All right, so it’s
But despite the FAST Act passing in all the time, are you going to require a work in progress. It does show some
2015, HHS has not finished its part of a human being in the truck? And the promise for those that believe there’s
the process. Afterwards, the Office of answer to that is, there’s nothing in some inherent flaws in CSA.”
Management and Budget will complete the regs that requires the necessity of a One of the biggest criticisms of CSA
a formal review and give its feedback to human being in the truck,” Mullen said. has been its treatment of crash prevent-
Health and Human Services. Regardless, the regulatory process ability. The agency’s DataQ program,
“Once OMB publishes their final will not be finished quickly. which provides an avenue to contest pre-
rule on this, final guidelines, DOT’s “I expect that there will be years ventability based on eight criteria, will
ready to roll,” Mullen said. “Because all and years of iterations of how we ensure continue past its planned July end. The
these things we’ve talked about, in my that this autonomous driving system FMCSA will be asking the industry if the
opinion, whether it’s hours of service, is safe enough to be out there on the criteria should be expanded, Mullen said.
18-21-year-olds, drug and alcohol road,” he said. “And that’s still a work For example, getting struck head on by
clearinghouse, sleep apnea, you name in progress as you know. And you folks, another driver crossing the center line is
it, we talk about expecting how that’s by the way, are going to be the ones not one of the eight criteria.
going to move the needle on safety and making that decision. You’re the ones
on highway accidents. I can’t think of a who are going to buy those trucks. MORE WORK IN PROGRESS
clearer method of moving that needle to You’re the ones to make the decision to Asked during a question and
prevent highway accidents than taking put those into your fleets.” answer session about personal
chronic drug users off the road. … It’s conveyance regulation changes, Mullen
the lowest hanging fruit of the lowest CSA METHODOLOGY UNDER said the agency’s efforts are “a work in
hanging fruit. The DOT has wanted this CONSTRUCTION progress.”
to come to fruition for quite some time.” Changes also are coming to the And if there was a theme running
Meanwhile, the agency is trying FMCSA’s CSA program. Congress through Mullen’s regulatory update,
to prepare for the regulatory regime required the National Academy of “work in progress” could sum it up.
required for autonomous vehicles. Sciences to review the program, and it There are moves toward safer and
Attempting to be proactive, it has recommended the agency adopt a meth- more flexible hours of service rules,
announced a notice of proposed odology based on the item response younger drivers, a proactive autono-
rulemaking along with the National theory, which describes the relationship mous vehicle policy, and a better CSA
Highway Traffic Safety Administration. between unobservable traits and their methodology. But nothing will happen
NHTSA will have the greater role outcomes. Mullen said trade journals overnight. ATR

ARKANSAS TRUCKING REPORT | Issue 3 2019 23

North American Trade Deal



Good for Economy, Trucking




Economist Bob Costello shares insights on trade talks and tariffs










that leaders of the three countries
approved last year after 15 months of
negotiations. It still must be ratified by
Congress. Costello is more encouraged
now that tariffs on Mexico have been
taken off the table.
“Well, it certainly helps,” he said
in an interview June 11. “If there were
tariffs in effect, I don’t see how USMCA
would have been ratified. So the fact
that they did not go into effect is a good
thing for that.”
Costello said many in Congress in
both parties would not have approved
the agreement as long as it included a
tariff on an ally. He pointed out that
addressed the flow of illegal immigrants the tariffs would have made it unlikely
By Steve Brawner across the border with the United States. Mexico would have ratified the agree-

Contributing Writer U.S. Customs and Border Protection ment, which it must do along with
says more than 144,000 border cross- Canada.
President Trump’s decision not to ers were apprehended or refused entry According to Costello, the USMCA
impose tariffs on Mexican products is in May, the highest monthly total in at is a better deal for the United States.
good for the economy and for trucking. least five years. The number has risen While “90 percent of it’s the same as
Now, the economy and trucking would each month since January. Many border NAFTA,” it better reflects macroeco-
benefit if Congress ratifies a new North crossers come from Central America nomic changes since NAFTA was signed
American trade agreement and if the and have migrated north through into law in 1993, such as e-commerce.
trade war with China ends. Mexico. The other 10 percent doesn’t directly
That’s according to Bob Costello, But the tariff threat ended in June affect trucking.
the American Trucking Associations’ after Mexico agreed to take steps to “It’s not perfect, but it is bet-
chief economist and senior vice presi- limit immigration or accelerate other ter than NAFTA on a whole bunch
dent. Costello made the observations planned steps in response to United of fronts,” he said in an interview.
in remarks at the Arkansas Trucking States demands. One example is deploy- “NAFTA was old. The economy was very
Association Business Conference & ing 6,000 National Guard troops along different back when it was done in the
Vendor Showcase in Little Rock May its southern border with Guatemala. late-‘80s-early ‘90s. So we were happy
16, and in interviews with Arkansas that NAFTA was getting updated.”
Trucking Report in June. A PATH FOR BETTER TRADE
The Trump administration had Costello had worried that the tariff GOOD NEWS FOR TRUCKING
threatened to impose tariffs on Mexico dispute was jeopardizing the United Costello said more cross border
that would start at 5 percent begin- States-Mexico-Canada Agreement, trade is good for the economy and good
ning June 10 and rise monthly to 25 President Trump’s replacement of the for trucking. Cross border trade gener-
percent by October unless that country North American Free Trade Agreement ates just under $13 billion annually for

24 Issue 3 2019 | ARKANSAS TRUCKING REPORT

trucking and employs about 90,000
full-time equivalent employees in the
U.S. trucking industry, 60,000 of whom
are drivers. Trading with Mexico sup-
ports 47,000 American trucking jobs. “WE NEED A GOOD, SOLID NORTH AMERICAN
Mexico is the second largest U.S. import TRADE ZONE, SO THAT THIS STUFF DOESN’T GO TO
source, while Mexico and Canada SOUTHEAST ASIA OR CHINA OR INDIA OR AFRICA
are the two largest export markets.
Meanwhile, according to Reuters, more OR PLACES LIKE THAT. …RELATIVE TO THE UNITED
than 75 percent of both Mexican and STATES AND CANADA, MEXICO IS A CHEAPER
Canadian exports go to the United ALTERNATIVE IN MANY CASES, BUT IT’S NOT THE
States. CHEAPEST IN THE WORLD BY FAR.”
Costello says progress has been
made that could lead to congressional
passage of the agreement. Mexico has —BOB COSTELLO, THE AMERICAN TRUCKING ASSOCIATIONS’
passed significant labor reforms that CHIEF ECONOMIST AND SENIOR VICE PRESIDENT
include secret ballots in union elections.
Some Democrats argue the reforms
don’t go far enough, don’t have enough
enforcement and don’t protect the policy arguments regarding USMCA, are
environment enough. However, they’re leery of handing Trump a major victory.
an improvement over what has existed But the ATA has had good meetings
under NAFTA and would be preferable with both Republican and Democratic
to what would exist if manufacturing congressional staff members, and U.S.
were moved to other low-cost produc- Trade Representative Robert Lighthizer
tion areas overseas. Meanwhile, the has had good meetings with Democrats.
United States announced May 17 that
it had agreed with Canada and Mexico BUT THE CLOCK IS TICKING
that it would lift Section 232 tariffs on Still, time is running out with the
steel and aluminum imports from those 2020 elections fast approaching.
countries, while they would remove “I think there’s a 50-50 shot, but
retaliatory tariffs they had placed on we have a very tight window to get this
American goods. The Trump adminis- done,” Costello said at the Business
tration had argued that the tariffs had Conference & Vendor Showcase in Little
been legally justified as necessary for Rock May 16. “If this is not done by the
national security under Section 232 of end of October, I think the path for-
the Trade Expansion Act of 1962. ward is very difficult.”
“We need a good, solid North If it doesn’t pass, then NAFTA
American trade zone,” Costello said, stays in place. However, Trump could
“so that this stuff doesn’t go to south- threaten to abandon that agreement as order to respond to the influx of refu-
east Asia or China or India or Africa well, a move which Costello described gees and border crossers. Costello said
or places like that. … Relative to the in Little Rock as a “high-stakes game of trucks were backed up 10-15 hours on
United States and Canada, Mexico is a chicken.” If he did that, it would take the Mexican side at times in March
cheaper alternative in many cases, but six months to actually exit the agree- and April, which led to waits on the
it’s not the cheapest in the world by far. ment. He said the United States has American side as well. By the middle
There are many cheaper places to pro- never pulled out of a free trade agree- of June, most but not all of the man-
duce. So we have to work as a trading ment in its history. Doing so could lead power had returned to the Southern
bloc so that we can compete with the to a court case. border, which has improved the situ-
Europeans, the Asians, and keep pro- While the Trump administration’s ation. Agents have been shifted from
duction in the U.S. Because that bene- latest tariff threats against Mexico have airports, seaports and northern border
fits trucking, so it’s more of an indirect receded, cross border migration remains ports of entry. At one point, a couple of
impact on us.” an issue that affects trucking. At one Canadian carriers had told him they’ve
Some Democrats in Congress, point, 545 Border Patrol officers were experienced slower crossing times.
while seemingly receptive to the ATA’s removed from truck-clearing duty in 

ARKANSAS TRUCKING REPORT | Issue 3 2019 25

the economy slows, consumption is
reduced and volumes fall.
Moreover, tariffs affect the truck-
ing industry directly by increasing the
“LET ME BE CLEAR HERE: CHINA IS A PROBLEM,” industry’s costs. Trailer and container
HE SAID. “THEY ARE VERY MUCH A PROBLEM. chassis already have a 25 percent tariff
BUT GOING INTO A TRADE WAR TO SOLVE THOSE on them as a result of the trade war.
PROBLEMS, A FULL OUT TRADE WAR IS NOT GOOD While trucks driven in the United
States are built here or in Mexico, some
FOR TRUCKING BECAUSE IT’S NOT GOOD FOR THE parts come from China. Meanwhile,
ECONOMY. IT’S NOT SUSTAINABLE…” the next round of tariffs could affect
53-foot domestic containers — all of
—BOB COSTELLO, THE AMERICAN TRUCKING ASSOCIATIONS’ which, to his knowledge, come from
China. Tariffs placed on those prod-
CHIEF ECONOMIST AND SENIOR VICE PRESIDENT
ucts would add significant costs to
the industry. The American Trucking
Associations took the lead in success-
fully removing containers from the
“They’ve spread the pain. That has technology with Chinese groups in original list of products last summer.
helped immensely,” he said. “We’re not order to be allowed market access. The But now they’re back on a proposed list.
back to normal levels, but we’re not see- Trump administration has imposed tar- Tires also are subject to a potential new
ing the huge lines either, anymore.” iffs of up to 25 percent on more than 25 percent tariff, and the industry buys
$250 billion in Chinese goods. China many tires.
NEGOTIATING BEYOND NORTH responded with tariffs of 5-25 percent Trump was scheduled to meet with
AMERICA on $110 billion of U.S. goods. Trump Chinese President Xi Jinping during the
While at least some progress on June 6 threatened to raise tariffs G-20 summit in Japan occurring June
has been made on passage of the on another $300 billion, which would 28-29. Costello said the up-and-down
USMCA, the other major trade tensions are causing
trade dispute — with the stock market to plummet
China — remains in place and surge, and no one knows
as of this writing. And as where this is headed.
with USMCA, trucking is He said the United States’
affected. trade issues with China should
According to the be addressed — but not at the
Office of the United States expense of the economy.
Trade Representative, the “Let me be clear here:
U.S. trade deficit with China is a problem,” he said.
China in 2018 was $378.6 “They are very much a prob-
billion, with imports from lem. But going into a trade
China totaling $557.9 bil- war to solve those problems, a
lion and exports to that full out trade war is not good
country totaling only for trucking because it’s not
$179.3 billion. The United States had cover most Chinese exports. good for the economy. It’s not sustain-
a $41 billion services trade surplus but Costello told the ATA that the pros- able…
a goods trade deficit of $419.2 billion, pect of an escalating trade war with “Yes, there are people that lose
and that number had increased by China keeps him up awake at night. He their jobs when some stuff goes over-
$43.6 billion from the year before. told Arkansas Trucking Report that tar- seas, but we have a good blue collar
In response, the Trump administra- iffs would disrupt the supply chain of trade story in trucking. It has added
tion has imposed 25 percent tariffs on goods coming from China that are then jobs in trucking. There are more port
certain Chinese goods under Section placed on trucks. However, the bigger jobs. But on top of it, as consumers we
301 of the Trade Act of 1974, alleging issue is that the United States would all benefit because goods are generally
unfair trading practices. Among the have fewer exports to China as that cheaper because they go to places that
concerns is forced technology transfer, country increases its own retaliatory specialize in making certain things.” ATR
where outside companies must share tariffs. If goods become more expensive,

26 Issue 3 2019 | ARKANSAS TRUCKING REPORT

Arkansas Tax Reform Improves



the Business Climate




AFC meeting includes tax insights at ATA conference











By Matthew C. Boch climate that fit within the state’s fiscal

Guest Writer and political constraints. (A major lift,
especially in addition to passing a high-
[Ed. note: On May 15, 2019, Guest writ-
er Matt Boch and his colleague Michael way package!)
Parker, both partners at Dover Dixon
Horne PLLC, presented on the state’s TAX REFORM TASK FORCE
latest tax reform at Arkansas Trucking Arkansas’s tax system reflects its
Association’s Accounting & Finance
Council second quarter meeting, held dur- populist heritage: very low property
ing ATA’s Annual Business Conference taxes, high and complex sales and use
in Little Rock, Ark. In this article, Boch taxes and a steeply progressive income
shares his insights from his involvement tax. While the state is about average in
with the Tax Reform Task Force on what combined state-and-local government
the changes will mean for trucking.]
taxation per person in gross terms,
Significant tax reform based on the Arkansas is a poor state, and so its tax
recommendations of the Arkansas Tax burden is high as a share of GDP, espe- EXPECT POSITIVE
Reform and Relief Legislative Task Force cially compared with neighboring low- ECONOMIC
was among the highlights of the 2019 tax states in the Mid-South. DEVELOPMENT IMPACTS
legislative session—the “GOAT” (great- In recent years, Gov. Hutchinson
est of all time) according to Governor and the General Assembly have been FROM ONLINE SALES
Asa Hutchinson. The tax reform pack- reducing that burden with a series of TAX IN ARKANSAS.
age carried in three bills: income tax cuts: The $100 million mid-
• Act 182 cuts the top individual rate dle class tax cut of 2015 and the $50
from 6.9% to 5.9%. million low-income tax cut of 2017. The
Task Force was created as part of the ONLINE SALES TAX FOR
• Act 822 requires remote seller sales
tax collection, extends net operating 2017 package, to give legislators who ARKANSAS BEGINS JULY 2019
loss (NOL) carryforwards, cuts the wanted bigger cuts a chance to study Arkansas businesses and residents
corporate income tax rate to 5.9% and design such a plan. should start seeing sales tax being col-
and adopts single sales factor appor- With a mission of making Arkansas lected consistently on most online
tionment. taxes fairer and more competitive, the purchases beginning in July. After the
Task Force met for most of 2017 and United States Supreme Court Wayfair
• Act 819 adopts administrative 2018, ultimately recommending 23 pro- decision in 2018, states clearly have
reforms including moving franchise posals ranging from hundred-million- the power to require most remote sell-
tax administration with DFA and dollar tax cuts and structural reforms, ers to collect tax, and almost all states
requiring regular review of exemp- to administrative changes, to niche with sales taxes have adopted or are
tions, credits and incentives. issues for specific industries. Clearly the adopting statutes or rules to require tax

These reforms phase in over the state could not make all the changes for collection by remote sellers. Under Act
next four years and together make up a total cost of $400 million or more: 822, Arkansas adopted thresholds of
the most pro-business Arkansas tax About half the recommendations were $100,000 of sales or 200 separate trans-
reforms in recent memory. They make enacted in some form in 2019, and their
substantial improvements to the tax impacts will be felt in the coming years. 

ARKANSAS TRUCKING REPORT | Issue 3 2019 27

actions into the state in the current years. All taxpayers get some sort of are more important than rate cuts for
or prior year to trigger the tax collec- cut, and higher earners (generally those many businesses: single sales factor
tion obligation. Most other states have making more than $100,000) will save apportionment and net operating loss
adopted the same or similar thresholds. thousands. (NOL) carryforward extension.
Besides direct remote seller sales, For individual income tax (includ- To calculate state income tax for
Arkansas will require collection by ing passthrough business income), a multistate business, before you even
online marketplace facilitators based on Arkansas embarked not just on cuts get to questions about rates, you must
the same $100,000 or 200 transactions but on true reform, albeit limited to “divide the pie” to determine the state’s
thresholds. A marketplace facilitator individuals with incomes of $79,000 share of the business’s income to tax.
is a business that allows third-party or more. For the high-earner bracket States use apportionment formulas
sellers to offer items and that also pro- schedule, Act 182 flattens the rate to calculate their fair share of total
cesses payment—think eBay, Etsy, or the structure. The top rate will fall from income, and different states use differ-
Amazon, Walmart, or Google market- 6.9% to 6.6% in 2020 and 5.9% in ent formulas. For decades, the Arkansas
places. Business-to-business market- 2021. In 2021 and going forward, there formula has been based 25% on payroll,
places will also be affected. Marketplace will be only three brackets for high 25% on property and 50% on sales. The
collection is particularly significant earners: 2% on the first $4,000, 4% problem is that basing apportionment—
since it captures the “long tail” of sales and thus state income tax—on in-state
by smaller sellers that are currently not jobs and investment penalizes economic
collecting tax and that would be under development, and so states have been
the sales thresholds on their own. adopting single sales factor apportion-
For Arkansas businesses that do LONG-TERM, SINGLE ment. Arkansas will move to single sales
not have sales tax permits—as well as SALES FACTOR factor apportionment (based 100% on
for individuals accustomed to tax-free APPORTIONMENT WILL sales) for tax years beginning in 2021
online shopping—the change may result and thereafter.
in increased costs. Technically the tax DRIVE GROWTH IN The benefits from single sales fac-
has always been owed as a use tax that MANUFACTURING AND tor apportionment vary depending on a
the buyer was supposed to pay, but this DISTRIBUTION, WHICH company’s line of business and whether
obligation was not well enforced outside it has a large Arkansas presence. For
of sales tax permit holders. Businesses IN TURN WILL BENEFIT those in the sweet spot, generally
should also be careful about collection ARKANSAS TRUCKING manufacturers, wholesalers, retailers
obligations for other states. AND RELATED and banks with significant Arkansas
Expect positive economic develop- INDUSTRIES. operations, this benefit is much more
ment impacts from online sales tax important than the rate cut. For exam-
in Arkansas. First, in-state brick-and- ple, a business with a major Arkansas
mortar retailers will benefit from online distribution center projects reduc-
sellers having to collect the same taxes. up to $8,000, and 5.9% on all income ing its Arkansas income tax by 33%.
Second, the old physical presence nexus exceeding $8,000. Such substantial tax reductions make
rules had been a deterrent to in-state The low-income and middle-class Arkansas a more attractive place for
investment in distribution facilities bracket schedules remain steeply pro- manufacturing and distribution supply
or other operations. Since these new gressive. Under Act 182, those bracket chains.
threshold-based requirements apply schedules got small upward adjustments Traditional trucking businesses
regardless of physical presence, there is such that everyone’s tax burden will be themselves generally use a special mile-
no longer a sales tax collection penalty reduced at least a small amount. age-based apportionment formula and
for investing in Arkansas. Third, the Corporate income taxes are cut so will not be directly affected by single
additional state revenue from enforcing under Act 822, dropping from the cur- sales factor apportionment. Sellers of
a tax that was owed anyway helps to rent 6.5%, to 6.2% for tax years begin- services (including freight brokerage)
pay for tax cuts and reforms that make ning in 2021, and to 5.9% for tax years and intangibles are subject to differ-
the state more competitive. beginning on or after January 1, 2022. ent sales factor sourcing rules that look
more to where the income-producing
BRINGING THE RATE BELOW 6% TECHNICAL BUSINESS INCOME activity was performed, rather than the
The highest priority reform of the TAX REFORMS customer’s location, and so the benefit
Task Force was income tax cuts, and it Act 822 also includes two major from single sales factor for Arkansas-
delivered with legislation that will lower technical reforms to business income based service providers is limited. (DFA
the rate to 5.9% over the next several tax that may seem esoteric but which has previously proposed market-based

28 Issue 3 2019 | ARKANSAS TRUCKING REPORT

sourcing of service income, which ADMINISTRATIVE REFORMS
would fix the issue for Arkansas-based Looking beyond the big-dollar TECHNICAL
service providers, and it may come up in cuts and reforms of Acts 182 and 822, TAX REFORM
future legislative sessions.) Arkansas tax reform includes several KEY TERMS
Long-term, single sales factor administrative provisions provided by
apportionment will drive growth in Act 819. Single Sales Factor Apportionment:
manufacturing and distribution, which Effective May 2021, franchise tax Shifting the way Arkansas applies
in turn will benefit Arkansas trucking administration will move from the income tax to businesses so that
and related industries. That will partic- Secretary of State to the Department it falls entirely on sales activity in
ularly be the case if Arkansas enacts an of Finance and Administration (DFA), Arkansas, instead of the current
additional Task Force recommendation where it will be administered in con- blended formula that also considers
in a future session, the repeal of the junction with the income tax. We may locations of payroll and property.
“throwback rule.” The throwback rule see DFA be more aggressive in enforcing Net Operating Loss Carryforward
(a statute, not a regulation) reduces the the tax compared with the Secretary of Extension: Giving businesses more
competitiveness benefits from single State. time to use losses to offset later
sales factor by “throwing back” sales Perhaps of all reforms the one year income, so that a business is
to Arkansas when the business is not with greatest long-term impact will be not unfairly taxed on income that is
subject to income tax in the destination the biennial review of income tax and really just recovery from a prior loss.
state, such that a business is still being sales and use tax credits, deductions,
penalized for locating in Arkansas. and exemptions. DFA will provide a
The other major technical corporate report to the General Assembly before tal structural changes were avoided.
income tax reform is extension of net each regular session explaining the pur- Arkansas will continue to have low
operating loss carryforwards from five pose, amount and effectiveness of each property taxes and high sales taxes, and
out to ten years. This is very important exemption, discount, credit or deduction. now the income tax will have a little
in creating a fair tax environment for less bite with a top rate of 5.9%. The
cyclical businesses: Income taxes allow SMALLER REFORMS big sales tax exemptions and business
a taxpayer to carry over a loss from one Besides these major reforms, Acts incentives were retained. Corporate
year to the next to offset future income, 819 and 822 made three transportation- tax reforms position Arkansas as more
to avoid taxing phantom income that is specific changes: mainstream rather than a negative out-
nothing more than a recovery from the • Car washes will be exempt from lier.
previous loss. sales tax and will be subject to a The big question is whether
Imagine a trucking business rack- water use fee. At first glance, this Arkansas will keep going with reforms
ing up losses in a protracted recession does not appear to apply to truck so that it can have a truly competi-
(like 2007-2010). It then turns small washes, but guidance may be forth- tive tax system. With the desire to get
profits for the next few years that are coming from DFA. income tax rates below 5%, and with
offset by the prior net operating losses, • Advertising on public buses will be several significant Task Force recom-
so that it does not owe any tax as it exempt from sales tax. mendations yet to be realized (throw-
emerges from the recession. But begin- back rule repeal, inventory property
ning with 2013, unused losses start to • Additional disclosures and paper- tax relief, etc.), there is a road map for
expire because Arkansas has a worst-in- work will be required for ATV pur- future reform. If the political will for a
the-nation five-year carryforward limit chases claiming the farm equipment fairer and more competitive system con-
(tied with Rhode Island). The business sales tax exemption. tinues in 2021 and beyond, and if the
starts being taxed on income even These are all sales tax changes that supportive fiscal environment persists,
though in the big, multiyear perspective will be effective Oct. 1, 2019. future General Assemblies may be able
it has not yet returned to profit. to finish the work of the Task Force. ATR
Act 822 fixes this going forward: A ROADMAP FOR MORE REFORMS
For losses incurred in the tax year IN 2021? Matthew Boch is a member of Dover
Dixon Horne PLLC in Little Rock, Ark.,
beginning in 2020, that will now The Task Force’s systematic review where he focuses his practice on state
extend to eight years, and to ten years yielded substantial reforms at a rea- and local taxes and economic develop-
for losses incurred beginning in 2021 or sonable cost. While originally there ment incentives. In his role as outside tax
thereafter. This should help businesses was talk of “everything being on the counsel to the Arkansas State Chamber
whenever the next recession comes table” in the hope of making big cuts of Commerce, Matt was actively involved
with the Tax Reform Task Force proceed-
around. to position Arkansas more like Texas ings and the 2019 tax reform legislation.
or Tennessee, ultimately fundamen-

ARKANSAS TRUCKING REPORT | Issue 3 2019 29

PHOTOGRAPHY BY JOHN DAVID PITTMAN

30 Issue 3 2019 | ARKANSAS TRUCKING REPORT

Glory Transportation President Tom Doty

talks faith and freight






























By Lacey Thacker he left his home in Baxter Springs, Kan., on Route 66, for
Contributing Writer Pittsburg State. That was before two friends showed up at his
door one evening with a different idea for how Doty could
“College looked really good,” Tom Doty, president and spend his summer. “The next morning, I’m at the grocery
owner of Glory Transportation, says of the summer between store telling them, ‘I’m going to California today at noon.’”
high school and college when he picked lettuce in California. Sure enough, by that afternoon he and around 40 other
Unemployment was high in 1965. According to Doty, people, many of them high school kids, were on a bus headed
somebody in Washington had the idea to give unemployed to the West Coast.
citizens some of the jobs normally filled by migrant labor. The The work was difficult, and Doty says around two-thirds
federal government ran ads in newspapers across the country, of the young people who made the long journey to California
offering not only jobs, but the transportation to get potential had their parents send money to get home within a week. “In
workers across the country to those jobs in California. The those days, and I doubt that it’s much different today, a truck
ads claimed workers would have motel-like accommodations drove down the rows with a conveyor belt that stretched
and transportation around town. across about ten rows. You walked behind the conveyor belt,
Doty was looking forward to a summer sacking grocer- stooped over, harvesting lettuce and didn’t even stand up to
ies, mowing yards and hanging out with his girlfriend before put it on the conveyor.” Workers were required to keep up
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with the moving conveyor belt, which
meant staying stooped over the entire
length of the row. Each row could be a
half a mile long. When the end of the
row came, workers would briefly stand Favorite Food: Any!
before turning around and stooping for Favorite Trip: Caribbean and Central America for diving.
another half mile stretch. “We like the clarity of the water.”
While accommodation was pro- Children: Two sons, Brady and Dallas, and a daughter, Kari.
vided, it wasn’t the hotel-like environ- Along with ten grandchildren and five great-grandchildren.
ment Doty expected. Instead, the walls Sports: “UA Basketball, and any sport our grandchildren are playing.”
of the dorm only went part way up—
noise would filter through in the night, Favorite Book: The Bible
whether someone was simply up late
talking, walking down the hall to the
shared bathrooms or getting a bit rowdy
from a night of too much fun.
But for Doty, it was a great expe-
rience he reflects on even today.
“Working in the fields with migrant
labor and other high schoolers gave
you a slice of life you’d never seen. It
was your first opportunity to learn to
hitchhike.” That, as it turns out, was
the daily transportation advertised. A
portion of each check was held back to it wasn’t treated as optional while he strike line, where, he says, a person
cover the costs associated with trans- was growing up. “It wasn’t if I went to could be called all sorts of new and cre-
porting the workers to California and college, it was when,” he says. ative names. An ambitious young man,
their trips to and from the field each While in college, Doty studied Doty spent the next ten years herding
day, and at the end of the summer, secondary education. But Vietnam was teamsters around, learning and gaining
anyone who stayed the entire season in full swing, so post-college, he went experience. “I worked for four publicly
would get that money back. Doty says to basic training and then on to officer traded companies, and decisions weren’t
the farms really hoped some of the candidate school. Two weeks before always about what was best for everyone
workers would quit, because then they he graduated, Doty was told he was in the company,” because investors and
wouldn’t have to give back the extra being sent home to join a reserve unit. analysts had to be appeased.
money. However, Doty, and many oth- Teaching jobs weren’t plentiful at the While 46 of the last 48 years of
ers, counted on that check to pay his time, so he did a little substitute teach- Tom’s career have been in trucking and
way back home, so he was willing to ing and did some work for a man for transportation, he did transition into
stick it out even when things got tough. whom he’d hauled gas in college. The manufacturing for a brief period. He
“They’d haul us to the field, maybe an office Doty was based out of was in and Karen had been looking for some-
hour or an hour and a half out. They Columbus, and right across the street thing fast-paced for him to move into,
were hoping we would quit, because was the courthouse. He’d often see a because, Doty says, manufacturing was
then they wouldn’t have to pay us all woman walking into work there, and “like watching paint dry,” compared to
back,” he explains. he’d find reasons to go make conver- the inertia of the transportation indus-
“I hate that some of our younger sation. That woman, named Karen, try to which he was accustomed. The
people miss the experiences older people became his wife, and over 45 years later, perfect opportunity appeared in a five-
had, just out working different kinds they’re still happily married. year-old trucking company with around
of jobs trying to make school money.” five tractors and nine trailers. He and
During the course of his college career, “JUST TAKE THE F Karen purchased Flory Transportation
Doty also worked in a smelter, built OFF AND REPLACE IT in 1997. That’s right, F-L-O-R-Y
metal buildings and drove a gas truck. WITH A G.” Transportation.
While he was grateful for the work, he When Doty began working in “We knew we were going to change
says each of the jobs encouraged him to trucking, he started out as a rate clerk— the name, but for us, our name on
return to school each fall—something and was “lucky” enough to be the guy things didn’t seem to have a good ring.
he barely perceived as optional, because who delivered through the occasional 

ARKANSAS TRUCKING REPORT | Issue 3 2019 33



We were looking for a name that was, “I’VE BEEN IN CHURCH
metaphorically, who we were.” Two sep-
arate people, on two separate occasions, ALL MY LIFE, SO FOR ME
came in and saw the sign over the door
that read, F-L-O-R-Y and said, “Just NOT BEING INVOLVED
take the F off and replace it with a G.”
After it happened the second time, they WITH CHURCH WOULD
realized it just seemed right. NOT BE PRACTICAL.”
That name is a purposeful reflec-
tion of their priorities. Doty says dur-
ing their previous working years, they —TOM DOTY,
realized that, “Every day you got up
and served at the pleasure of a king, PRESIDENT OF GLORY
and when we bought this we decided, if TRANSPORTATION
we were going to serve, why not serve
the king?” It was, Doty says, also their
chance to be in business for themselves.
In a publicly traded company, there are on the value of the decisions for their great help we have,” Doty says.
so many audiences to please, but as a people. Doty says of his and Karen’s While many married couples might
privately held company, the Dotys are childhoods, “We both came from pretty balk at the idea of running such a com-
able to combine their board meetings humble roots, so being conservative pany together, the Dotys say after 22
with date nights at Olive Garden. is who we are in our business and our years, they’ve worked through many of
In the original office, located on faith. It just came naturally.” the struggles that come with it. He says,
a single acre in Springdale, the men’s “We have pretty defined roles. She does
bathroom was in Karen’s office, where, “WHEN I QUIT administration and finance; I do opera-
she says, laughing, “It was way too HAVING FUN HERE, tions and marketing,” and that having
close.” Tom notes that she was often I QUIT WORKING clearly defined roles helps keep every-
accompanied by all the sound effects HERE.” thing running smoothly. Karen adds,
that proximity implies. At the time, The Dotys hadn’t worked together “He’s big picture, while I’m looking at
Doty was still on contract with a manu- before purchasing Glory Transportation, every nook and cranny to make sure
facturing company, and Karen was run- but Karen says she’d always been Tom’s everything matches up.” It works out
ning the day-to-day operations at Glory listening ear, so the lingo and basic well, she says, that they’re as different
Transportation with the help of an daily operations were already somewhat as they are.
employee who is still with them today. familiar. The couple laughs when they The couple aims to live by a motto
About six months after purchasing the say, “We always keep walls between us Doty developed years ago: “When I quit
business, Karen informed Tom that if he wherever we move our offices in here,” having fun here, I quit working here.”
wanted to do this, he needed to come but acknowledge that, at first, they had They’ve put that to use several times in
do it. Doty left his job and began work- to watch that they weren’t all business, past positions, because Doty believes,
ing at Glory Transportation full-time. all the time. As their positions have “You need to be passionate about what
Glory Transportation has grown evolved and they’ve gotten good leaders you do; you need to have fun. We try
to about 20 trucks and 70, primarily in place, it’s become easier to turn off to make sure our people have a good
reefer, trailers. While they’re not the the switch when they go home at night. time at work.” That’s evidenced by the
biggest in the business, the decision As far as the overall office culture, occasional wads of paper that can be
to moderate growth has been a pur- Karen says she believes part of what found outside Doty’s office window
poseful one. “It never was about being makes Glory Transportation different overlooking the floor, courtesy of their
bigger, which isn’t always better. We is how they choose to treat each other. son, Brady, who has a tendency to
always looked at the value of growth In the office, Tom and Karen try to throw those wads at the office window.
decisions for everyone involved. Would emulate to the other employees that one He also has a dart gun he regularly puts
that increase be better for everyone, or person may know more than another, to use. That motto is also a significant
would we be doing it just to be bigger,” but that they’ll achieve more if they’re part of the reason the couple is able to
Karen explains. not in competition with each other. maintain such a high energy level about
Because of their careful growth “The work environment makes such their work—they believe deeply in what
decisions, the company is not in debt a difference in how long people want they do.
and is able to make decisions based to stay. We can’t say enough about the 

ARKANSAS TRUCKING REPORT | Issue 3 2019 35

Like many trucking operation of them were not brought up with “She looked at me, I thought in
rooms, the communications floor at technology, and some did not finish terror at first, but then she said, ‘Are
Glory Transportation looks like a traffic high school, yet “they do well,” with you really thinking about that?’” Tom
control center, with many of the desks electronic logging, collision mitigation recounts.
having multiple screens and a couple systems and other in-cab technology. He felt there was a reason they
of employees sporting headsets. It’s a hadn’t found a place to serve, and that
shift from when the Dotys purchased LOVE GOD, LOVE they might be supposed to follow a dif-
the company 22 years ago, when Doty OTHERS, SERVE ferent path. Karen’s response? “Well, I’ve
would regularly have two phone calls BOTH. had some of those same thoughts, but I
going at once. The adaptation to chang- “I’ve been in church all my life, so thought, ‘No, God, we are too busy! We
ing technology, which can often have for me not being involved with church are busy people, and who are we to take
speedbumps in the best of cases, has would not be practical.” After the Dotys on something like that, anyway?’”
been relatively smooth, in no small part moved the office to Fayetteville, they Doty picks up the story, “We were,
thanks to the company’s leadership. joined a church and were content mem- modestly, a 50-hour-a-week-plus busi-
“I have good leadership here today, in bers for a number of years, but they had ness at the time, not including phones
my oldest son and another young man begun to feel it was time for them to do ringing at 2 am.” After discussing the
who started as a driver 20 years ago. something else. When they made that possibility on the plane ride home, they
They both have good technical bents,” decision, the two started to visit other decided it was crazy, because, of all the
Doty says. And it’s not just the office churches every Sunday in an effort to barriers they perceived, there was one
that’s successfully keeping up with find one that felt like home. big one: “…you can’t start a church
technological changes. Doty says that While visiting Tom’s sister in without music.” The Dotys decided they
while some may tend to think drivers Arizona, he and Karen were waiting for wouldn’t mention it to anyone, but if
are averse to using changing technology, Sunday service to start, and Tom asked someone came to them, they would
he is continually amazed and gratified Karen, “’If we were to start a church, move forward. In less than a week, an
that the drivers at Glory Transportation what do you think that would look employee who also travelled with a
have grasped technology so well. Most like?’” singing group came to Karen’s door and




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36 Issue 3 2019 | ARKANSAS TRUCKING REPORT

said, “If ya’ll decided to start a church,
we would do your music.” Karen’s first
thought was, “Oh no!”
To develop a sufficient body of
members, the couple gathered people “WE BOTH CAME FROM
they knew who were also looking for a PRETTY HUMBLE
new church home, including some of
what they call lapsed members. It didn’t ROOTS, SO BEING
take but a couple of months before the
home church agreed they had enough CONSERVATIVE IS
members to participate that it would
be logical to begin renting Thursday WHO WE ARE IN OUR
evening and Sunday morning space at
a Seventh Day Adventist church. After BUSINESS AND OUR
a year and a half passed, the church
decided it was time to seek out their FAITH. IT JUST CAME
own permanent space. As it so hap-
pened, a flea market in Tontitown was NATURALLY.”
for sale. The big metal building was per-
fectly suited for their new church. That —TOM DOTY,
was 2005. Today, the average attendance
on a Sunday hovers between 125 and PRESIDENT OF GLORY
150 members. Tom pastors, and Karen TRANSPORTATION
teaches a Sunday school class. When
discussing their ministry, the couple















































ARKANSAS TRUCKING REPORT | Issue 3 2019 37

speaks with gratitude for the opportu-
nity to serve others.
In the New Testament, Paul was
a tent maker by trade. Though he was
occasionally provided with resources, “EVERY DAY YOU GOT
most of his livelihood was provided for UP AND SERVED AT THE
through his own work. “He did what
he did for his love of the ministry. We PLEASURE OF A KING,
thought, ‘Why wouldn’t you try to build
a church that looked like that?’” For AND WHEN WE BOUGHT
that reason, the decision was made to
set up church leadership as elder-led THIS WE DECIDED, IF
instead of pastor-led, and the elders
agreed they didn’t need to be paid, WE WERE GOING TO
because they each had outside employ-
ment. That allowed for more resources SERVE, WHY NOT SERVE
to be put toward the direct work of the
church instead of paying salaries and THE KING?”
insurance. The church’s motto? Love
God, love others, serve both. —TOM DOTY,
“That was 15 years ago, and the
model hasn’t fallen apart yet,” Tom says. PRESIDENT OF GLORY
TRANSPORTATION
EXTENDING THE
MINISTRY

For Doty, his upbringing in the
50s—which he calls a “great time to
grow up”—combined with the loss of his The Dotys believe they, and indeed
father at a young age and the excellent everyone, have a choice about how to
role model he had in his mother partly treat people. From that perspective, they
informs his outlook on life. Doty had believe—and try to make sure everyone
two siblings and “… a strong, intelligent on their team understands—that it’s
mother” who went into secretarial work important to treat people with dignity,
after the loss of her husband and stayed particularly drivers, who have hard jobs,
until she retired. Doty says, “She taught Karen says. “You’ll notice, if you look
a lot of values.” One of those values was around, that our environment is dif-
a strong work ethic, which Doty has ferent. Drivers wander in and out, eat
carried over into his commitment to the lunch with dispatchers, come and talk
church and its youth. with people in the office area. We really
Because of Doty and the church’s have an opportunity to participate in
investment in the young, they recently their lives,” Doty says.
made the big decision to hire their first While, like any company, Glory
full-time employee—a youth minister. Transportation has occasional turnover,
“Our young people are under so much they also have a number of stable driv-
pressure, and that part of the church ers and other employees who have been
has always been important to us. We there a long time. Doty says they’ve
really felt we needed someone who had always seen their company as an exten-
the time and energy to fully devote to sion of their ministry. As a result of  Tom Doty with his wife of 45 years,
the children.” And, last year, the church that, he says, “We have some great suc- Karen
built a new life center onto the back cess stories, even though there are some
of the original building that provides we wish could have turned out differ- going to get home to see their families.
a basketball court and common spaces ently. Our people are really high-char- It’s a logical extension of our ministry.
to more effectively serve their young acter people. They care about our drivers You try to bring those same values with
people. and their lives, about whether they’re you.” ATR

38 Issue 3 2019 | ARKANSAS TRUCKING REPORT

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143461 CIA - Transportation - Arkansas FP.indd 1 6/5/19 4:36 PM

Trucking by the Book




Recap of the 2019 ATA Annual Conference & Vendor Showcase
















By ATR Staff Zetêo hosted a gourmet coffee cart while ATA president Shannon Newton
Arkansas Trucking Association Arkansas Highway Police Officers Sgt. welcomed attendees to the first lun-
held its annual business conference Scotty Todd and Cpl. Charlie Tolliver cheon and recognized special guest
and vendor showcase in Little Rock on chatted with conference first-comers Gov. Asa Hutchinson, who recently
May 15-17. This year’s line-up offered about their enforcement questions. backed the largest highway funding in
attendees educational forums, council The Accounting & Finance Council the state’s history. The Governor took
meetings, networking opportunities also met Wednesday morning to the podium and thanked trucking for
and featured speaker international talk Arkansas tax reform with Dover their support before the safest profes-
bestselling author Phil Jones. The event Dixon Horne Partners Matthew Boch sionals and fleets were named. Winners
attracted 323 attendees, represent- and Michael Parker (see page 27 for included Driver of the Year, Carl
ing 134 companies to the Statehouse Boch’s insights). American Trucking Sparlin of CalArk International, and
Convention Center. Associations’ Chief Economist and Safety Professional of the Year, William
This year’s schedule included six Senior Vice President Bob Costello “Jerrod” Crouch of FedEx Freight. FedEx
forums, council meetings, the election briefed 40 Under 40 Council members Freight received the overall grand cham-
of new board members, two luncheons on the trade agreement that will replace pion award with over 36 million miles
with special guests. NAFTA and how that deal will affect on Arkansas highways and only 21 DOT
Wednesday morning began with the the industry (see page 24 for Steve accidents.
opening of the 2019 vendor showcase Brawner’s article “North American After lunch, reports were given for
and a new networking opportunity— Trade Deal Good for Economy, ATA finances, membership, workers’
Lattes with Law Enforcement. Local café Trucking”). compensation, governmental affairs





 Michelle Finn, Rebecca Melton, Carl’s wife Vicky, Carl’s son Ivan, with
Driver of the Year Carl Sparlin, Rochelle Bartholomew, Carl’s son Devon,
Leslie Stout, and Malea McElyea (CalArk International)




















 Arkansas Gov. Asa Hutchinson


40 Issue 3 2019 | ARKANSAS TRUCKING REPORT

AWARD RECIPIENTS







2018 DRIVER OF THE YEAR TRUCKLOAD-
CARL SPARLIN VAN & REEFER DIVISION
CalArk International, Inc. Small Carrier:
MORRIS TRANSPORTATION
2018 SAFETY PROFESSIONAL
 ATA’s Shannon Newton presents a SERVICES, LLC
Corporate Fleet Safety Award to Scott OF THE YEAR Hamburg, Ark.
O’Donnell (AAA Cooper Transportation) WILLIAM JERROD CROUCH
FedEx Freight, Inc. Intermediate Carrier:
BOWERMAN TRUCKING, INC.
CORPORATE FLEET Searcy, Ark.
SAFETY AWARDS
Grand Champion Large Carrier:
FEDEX FREIGHT, INC. CALARK INTERNATIONAL, INC.
Harrison, Ark. Little Rock, Ark.
TRUCKLOAD- GENERAL COMMODITIES
FLATBED DIVISION LTL DIVISION
Intermediate Carrier: Large Carrier:
LOGGINS LOGISTICS, INC. AAA COOPER TRANSPORTATION
Jonesboro, Ark. Dothan, Ala.

Large Carrier: SMALL PACKAGE DIVISION
Large Carrier:
 Steven Phillips (FedEx Freight) receives OAKLEY TRUCKING, INC. FEDEX EXPRESS
the top Corporate Fleet Safety Award from North Little Rock, Ark.
Shannon Newton (ATA) Little Rock, Ark.
TANK TRUCK DIVISION
Intermediate Carrier:
SOLAR TRANSPORT COMPANY
West Des Moines, Iowa



 Carl Sparlin (CalArk
International) received a standing
ovation before accepting the 2018
Driver of the Year award






 Safety Professional
of the Year William
“Jerrod” Crouch
(FedEx Freight) with
Shannon Newton
(ATA)


 Brittany Loggins
accepts a Corporate
Fleet Safety Award
for Loggins Logistics
from Shannon
Newton (ATA)


ARKANSAS TRUCKING REPORT | Issue 3 2019 41

and councils. Dan Cushman, president
and CEO of P.A.M. Transportation
Services, was introduced as the new
chairman of ATA’s Board of Directors.
Other new Board members were also
ratified: Steve Walton of Southern
Tire Mart and Brad Delco of Stephens
Inc. will fill the allied positions. Jeff
Hammonds will replace Tracy Rosser,
who recently retired from his role  Mike McNutt (Distribution Solutions,
as senior vice president of Walmart Inc.) with Ben Cunningham (Love’s
Transportation LLC. Travel Stops)
The Federal Motor Carrier Safety  ATA’s Shannon Newton delivers
Administration’s Chief Counsel the president’s report at Wednesday’s
Jim Mullen addressed FMCSA’s General Session
recent and relevant actions and the
Administration’s priorities involving
hours-of-service rules (See full story on  Dave Modde (Wells
page 19). Fargo Equipment
This year’s event was made pos- Finance), Tina Werle,
sible by 19 Gold Sponsors and 17 Silver Rebecca Buckley
Sponsors. An exclusive Gold Sponsor (The Larson Group)
reception was held at Wednesday night and Bobbi Daugherty
downtown at Club 27 in the River (PACCAR Financial)
Market District.










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We’ll manage your risks.



















Little Rock Fayetteville
1500 Riverfront Dr., Little Rock, AR 72202 1465 E. Joyce Blvd., Ste. 205, Fayetteville, AR 72703
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Specializing in insurance and risk management for the transportation industry.

©2018, McGriff Insurance Services, Inc. All rights reserved. McGriffInsurance.com


42 Issue 3 2019 | ARKANSAS TRUCKING REPORT

THANK YOU,


ATA CONFERENCE SPONSORS!





 Steve Wilhelms
GOLD SPONSORS SILVER SPONSORS (InfoStream),
Frank Lancaster
(ORBCOMM), and
Aon ABF Freight Gabe Stephens (C.C.
Jones Trucking)
CorVel American Trucking Associations
Dedicated Logistics, LLC
Cummins Sales and Service
Drivers Legal Plan
Doggett Freightliner
of Arkansas Great West Casualty Company
J. J. Keller & Associates, Inc.
DriverReach
McGriff Insurance Services
FedEx Freight Netradyne

Peterbilt Truck Centers Shipley Motor Equipment Company  Ethon Stanford (Pilot Flying J), Amanda
of Little Rock Lamb (ATA), and Todd McCarthy (Pilot Flying J)
Star Transportation, LLC
Pilot Flying J Stephens
PrePass Safety Alliance Subrogation Division, Inc. THANK YOU TO OUR 2019 VENDORS

Rich Logistics Tri-State Truck Center, Inc. Eco Flaps

Stallion Transportation Group University of Arkansas FSSolutions
University of Central Arkansas Genex Services, LLC
Summit Truck Group
Walmart Transportation PrePass Safety Alliance
SygnifiCARE
Wells Fargo Equipment Finance Insurance Subrogation Group
The Larson Group
Lowen Color Graphics
Transport Refrigeration Netradyne
of Northwest AR, Inc.
ORBCOMM
TravelCenters of America Pro Fleet

Trimble Transportation ReMed Casualty Consultants Inc.

Utility Tri-State, Inc. Safety Vision
York. Shipley Motor Equipment Company

 Darrell Smith, Douglas Grainger, Chris SmartDrive Systems, Inc.
O’Neal (Cummins Sales and Service) with Taylor & Martin, Inc.
Stephen Leaver (Peterbilt Truck Centers of
Little Rock) at the Beyond the Book Gold The Larson Group
Sponsor Reception
TravelCenters of America

Trimble Transportation
 Mark Fleming (TravelCenters of University of Arkansas
America) and Greer Woodruff (J.B.
Hunt Transport) at the vendor showcase Utility Tri-State, Inc


ARKANSAS TRUCKING REPORT | Issue 3 2019 43

 Graham Shaw
(Crawford &
Company) and Mari
Schaan (Hall Prangle
& Schoonveld)








 Adrien Voellinger and Adam
SAVE ON Roger Carson and Dustin Barnett (Oakley
Shanahan (TrueNorth Companies) with

Trucking)

PREPASS






















 Dave Herzog (Bridgestone Tire
Solutions) and Steve Walton (Southern
Tire Mart)









MEMBER BENEFIT:
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prepass.com/AR
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trial period, service will automatically renew at regular PrePass rates. Customers may cancel service at any time.
and Tanya Rogers (USA Truck)


44 Issue 3 2019 | ARKANSAS TRUCKING REPORT

Silver sponsors had an opportunity ATA’s Maintenance & Technology
to engage attendees in industry discus- Council also hosted a forum. In
sion at Thursday morning’s Meeting Forecasting the Future of Vehicle
in the Margins breakfast, where the Health, moderator and past MTC
drug and alcohol clearinghouse, ben- chairman Matt Panning led a discus-
efits of video cameras, transportation’s sion on how data can help predict the
economic outlook, truck parking and health of commercial vehicles and
industry image were topics on the prevent accidents with panelists Chris
menu. Orban, vice president of data science
Taking responsibility for safety at Trimble Inc., and Mike Jeffress, vice
culture was the message of Thursday president of maintenance at Maverick
morning’s first speaker Don Osterberg Transportation, LLC.
who retired in 2015 from Schneider At Thursday’s luncheon, Shannon
National as senior vice president of Newton lauded the members of the
safety, security, and driver training after 92nd General Assembly on a successful
a twelve-year tenure with the company, session. From the podium, Newton dis-
was previously appointed as a strategic tinguished 22 legislators for supporting
advisor to President Clinton and served the issues that are most important to
as an advisor to the chairman of the trucking, even when it was politically
joint chiefs of staff. Hosted by ATA’s challenging to do so. Several legisla-
Safety Management Council Osterberg’s tors, deemed Champions of Trucking
presentation was on the moral obliga- by Newton, were in attendance, and
tion for ensuring that company values Pro tempore Sen. Jim Hendren from
are actually communicating safety over Gravette accepted a place at the podium
profit. to talk about all the bipartisan work


 Weston Mars, Jerry Whittenburg,
Loren Hatfield (Arkansas Road Team)
with Mike Stapleton (SmartDrive
Systems) and Danny Fuller (Arkansas
Road Team)








 Lance Fausett (FedEx Freight),
Demetri Mendoza (ABF Freight), Erica
Brigance and Michelle Smith (ArcBest)





 Mike Brust (ATA) with Wayne
Krupicka and Arlette Williams (York.)






 Brad Klepper (Drivers Legal Plan),
Mylene Patterson (DriverFacts), Richard
Banks, Jim Klepper (Drivers Legal Plan)
and Don Osterberg (Osterberg Business
Solutions)


ARKANSAS TRUCKING REPORT | Issue 3 2019 45

THANK YOU,


2019 Champions of Trucking!




Sen. Cecile Bledsoe Sen. Mathew Pitsch Rep. Karilyn Brown
Rogers Fort Smith Sherwood
Sen. John Cooper Sen. Jason Rapert Rep. Andy Davis
Jonesboro Conway Little Rock

Sen. Lance Eads Sen. Terry Rice Rep. Jon Eubanks
Springdale Waldron Paris
Sen. Jim Hendren Sen. James Sturch Rep. Brian Evans
Gravette Batesville Cabot
Sen. Keith Ingram Sen. Larry Teague Rep. Spencer Hawks
West Memphis Nashville Conway
Sen. Mark Johnson Sen. Dave Wallace Rep. Reginald Murdock
Little Rock Leachville Marianna
Sen. Blake Johnson Rep. Sonia Barker
Corning Smackover
Sen. Greg Leding Rep. Justin Boyd
Fayetteville Fort Smith














































46 Issue 3 2019 | ARKANSAS TRUCKING REPORT

ADVERTISER
that was accomplished in 2019 on what the data shows about trends in the
behalf of Arkansas citizens. market and industry news.
After lunch, the political discus- After two days full of educational RESOURCE INDEX
sion continued. In a panel moderated presentations and council sessions,
by Talk Business & Politics’ Roby Brock, conference meetings exploring what it Aon Transportation .......... Inside front cover
the legislative session was recapped for means to truck “by the book,” attendees
the transportation audience. As the heard from international bestselling ArcBest .......................................................45
federal government continues to put author of several books on how to have Arkansas Trucking Association ......... 50, 57, 59
off long-term infrastructure funding, conversations that “sell” a product, a
Arkansas players can feel especially brand or company, a relationship that Arkansas Trucking Report ...........................16
proud of not just a solution, but a bipar- lasts. Featured speaker Phil Jones shared
tisan solution. John Burris of Capitol insights from his books Exactly What Counteract Balancing ...............................17
Advisors Group; Scott Bennett, the to Say, Exactly How to Sell, and Exactly
director of the Arkansas Department of Where to Start before a book signing Custard Insurance .....................................39
Transportation; and Michael John Gray, in the H.U. Lee International Gate & Drivers Legal Plan .....................................37
the chairman of the Democratic Party Garden at the Chairman’s Celebration
of Arkansas shared their highlights with the Rodney Block Band Drivewyze ..................................................21
from this year’s hottest issues including The final bookend of a great con-
highway funding. Panelists also out- ference is a sunny Spring Golf Classic. Great West Casualty .................................22
lined the historical tension between the This year, sixty-eight players on 16
state’s highway commission and legisla- teams came to Chenal Country Club InfoStream .................................................53
tive bodies in splitting responsibilities for the spring tournament on Friday, Level 1 Driving Academy ............Back Cover
for identifying and paying for infra- where Jason Herring, David Choate,
structure needs. Taylor Mitcham and Blair James (Aon) McGriff Insurance Services .......................42
In the final executive forum, data claimed first place.
experts at FreightWaves, the leading Mark your calendars for next year’s MHC Kenworth ...........................................9
provider of news, data, and commentary event May 6 – 8, 2020 in Rogers. ATR
for the freight market, as they address Netradyne ..................................................11
PCS Software .............................................49
 American Trucking Associations’
Bob Costello with Shannon PrePass Safety Alliance ..............................44
Newton (ATA) and Brittany
Loggins (Loggins Logistics) at Southern Tire Mart ...................................18
the ATA 40 Under 40 Council
Meeting Stephens ......................................................3

 Mike Jeffress (Maverick Summit Truck Group ..................................4
Transportation), Matt Panning
(Tyson Foods), Chris Orban TA/Petro ....................................................15
(Trimble Inc.)
The Larson Group .....................................34

Triumph .....................................................32

UCA ...........................................................36
Utility Tri-State, Inc.....................................6

This edition of Arkansas Trucking Report
was made possible with the support of these
corporate advertisers. They support the
trucking industry by enabling ATA to provide
this publication to its members, prospective
members, elected officials and the national
trucking and business community at large.
They deserve your consideration and patronage
when making your corporate purchasing
 decisions. Thank you!


ARKANSAS TRUCKING REPORT | Issue 3 2019 47

 Marr Lynn Bearden (Marrlin
Transit), Vicki Jones Stephens
(C.C. Jones Trucking) and Dave
Modde (Wells Fargo Equipment
Finance)






 Jamie Hammons (American
Trucking Associations), Jeremy
Reymer, Mark Bowden (DriverReach)













 Gannon Roberts, Frank Dyer, Lance
Fausett (FedEx Freight) with Troy Morrell
(Lowen Color Graphics)



 Joyce Lumpkin (CorVel) with
Angela Clark (PAM Transport)






 Mark Fleming (TravelCenters of
America) with Blake Shay (Trimble
Transportation)






 Blas Gonzalez, John Paul Hart,
Andrew Coy (Utility Tri-State, Inc.)












 Dan Cushman
(PAM Transport)









48 Issue 3 2019 | ARKANSAS TRUCKING REPORT

 Accounting & Finance
Council Chairman Eric Grant
(Maverick Transportation)
gives the AFC report


 Skylar Hatfield (ATA),
Greer Woodruff (J.B. Hunt
Transport) and Malea McElyea
(CalArk International)



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ARKANSAS TRUCKING REPORT | Issue 3 2019 49

 Amber Woolf (Subrogation Divisions, Inc.) and
Hal Dowland (PrePass Safety Alliance)



 Arkansas Gov. Asa Hutchinson


 Outgoing ATA Chairman Al
Heringer IV (Star Transportation)
gives his final chairman’s report at
the General Session



 Safety Management Council
Chairman Derek Canard (Aramark
Food & Support Services Group)
gives the SMC report














































50 Issue 3 2019 | ARKANSAS TRUCKING REPORT