Award-Winning Magazine of the Arkansas Trucking Association Vol. 27 | Issue 5 2022 | $4.95
ROB KIBBE
Plumbing the Depths
Taxes | ARKANSAS TRANSPORTATION FUTURE | A WIN & A WARNING
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IN THIS ISSUE
VOLUME 27 | ISSUE 5 2022
FEATURES
COVER STORY
PLUMBING THE DEPTHS 28
Aon's Rob Kibbe talks about digging deep into risk,
insurance, tort reform and waterskiing
By Werner Trieschmann
CAPITOL WATCH
THE FUTURE IS NOW 18
How Arkansas is playing host to transportation innovation
By Dwain Hebda
A WIN AND A WARNING 23
Trucking's win on Rhode Island tolls
has national implications
By Steve Brawner
DEDUCTION INSTRUCTION 40
Preparing for year-end with tax experts from Bell & Company
By Richard Bell, JD, CPA and Jeff Lovelady, CPA
TRADE SECRETS
PATHS THEY PAVED 36
ATR examines the legacy of innovation and philanthropy
of one of Arkansas trucking industry's founding fathers
By Bethany May
SCENE AROUND
ESSENTIAL (BEFORE IT WAS COOL) 43 DEPARTMENTS
Recap of the 2022 Arkansas Trucking Association
Driver Appreciation Week Up Front: by Shannon Newton 7
By ATR Staff They Said It 9
News in Brief 10
ON THE SAFE SIDE 46 New Members 14
Recap of the 2022 ATA Safety Symposium Calendar of Events 16
By ATR Staff Advertiser Resource Index 17
Council Quarterly 26
Insider Trucking 50
Stat View 52
The Last Word: by Shelley Simpson 54
PHOTOGRAPHY ON THIS PAGE AND COVER BY JOHN DAVID PITTMAN
ARKANSAS TRUCKING REPORT | Issue 5 2022 5
WHAT MAKES
US TICK?
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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 us at
[email protected] or at 501.372.3462.
executive editor
SHANNON SAMPLES NEWTON
managing editor
BETHANY MAY
contributing writers NO ASTERISK
STEVE BRAWNER ROBERT O’CONNER
[email protected] [email protected]
DINA GRUEY DEANA NALL Those who know me well, know that highlighting the differences associated with being a
[email protected] [email protected]
DWAIN HEBDA TODD TRAUB woman in the workplace is not a subject that excites me. I long for the day when it isn’t
[email protected] [email protected]
DAVID MONTEITH WERNER TRIESCHMANN noteworthy, and we can just accolade the individual. No need to asterisk her success: She’s
[email protected] [email protected]
smart/talented/accomplished for a woman.
art director
JON D. KENNEDY
The Freelance Co. LLC, [email protected] But we’re not there yet, so continuing to talk about it is important. Highlighting the
production editors successes of women in our industry makes it easier for others to imagine their own.
KELLY CARGILL CROW, SARAH NEWMAN, KELCIE SONNIER, KATIE THOMASON
illustrator Emulating the path of others seems more achievable than blazing a new one — not only for
BRENT BENNETT
[email protected] young girls imagining what they want to be when they grow up but also for young ladies
photographers
JON D. KENNEDY, JOHN DAVID PITTMAN
contemplating college courses and career decisions. Our industry needs both.
On Oct. 23, I had the honor of moderating a panel at the American Trucking Associations’
annual Management Conference & Exhibition, the largest event of the year for trucking
www.arkansastrucking.com industry leaders.
president
SHANNON SAMPLES NEWTON
[email protected] I shared the stage with four impressive panelists — Cari Baylor, Baylor Trucking; Tamara
vice president Jalving, Yellow; Tina Peterson, an America’s Road Team Captain; and Angela Tillery, FedEx
KELLY CARGILL CROW
[email protected] Freight.
director of operations
SARAH NEWMAN
[email protected] I enjoyed getting to know them as we prepared. They are all succeeding in business and
director of corporate services
KATIE THOMASON
[email protected] invested in recruiting and empowering more talented women into the trucking industry.
communications director Each has her own unique experiences that have shaped her journey and how she views her
BETHANY MAY
[email protected] role in making it easier for those who will follow.
director of safety and loss prevention
MIKE BRUST
[email protected] The reality that five women were charged to present a forum about women at a trucking
administrative assistant
KELCIE SONNIER conference to an audience of mostly men was not lost on any of us.
[email protected]
BOARD OF DIRECTORS It is the men who run companies and lead our industry that want to know how to
CHAIRMAN OF THE BOARD
JEFF LOGGINS
Loggins Logistics, Inc. better recruit women — whether it’s to drive a truck or lead a department. They want to
President & CEO
MICHAEL BARR LANCE MOLL understand how the experience of climbing the career ladder in this industry is different for
JM Bozeman Enterprises FedEx Freight
CEO President & CEO women than it is for men.
GREG CARMAN MARK MORRIS
Carman, Inc. Morris Transportation Services, LLC
President President
NEIL CORDER G.E. “BUTCH” RICE III They call it a career ladder, but climbing a ladder is a solitary act. And in business, we don’t
Wayne Smith Trucking Stallion Transportation Group
President President get to promote ourselves, hire ourselves or choose to do business with ourselves. Someone
JOHN CULP ALAN RIELS
Maverick USA Dedicated Logistics has to see our work, value, potential and the obstacles in our way to allow us to step into
President President & CEO
JEFF HAMMONDS SETH RUNSER
Walmart Transportation LLC ABF Freight responsibility.
Vice President of Logistics President
GEORGE HENRY PATRICK SIMMONS
USA Truck Tyson Foods Succeeding for many women, myself included, involved male allies who could recognize our
EVP & COO Vice President Transportation
AL HERINGER IV GABE STEPHENS contributions, advocate for us and notice when we weren’t being invited to the tables where
Star Transportation, LLC C.C. Jones, Inc.
President Vice President decisions are made, whether they be board tables or cocktail tables.
BRAD HICKS TODD VENABLE
J.B. Hunt Transport MHC Kenworth – Little Rock
EVP & President of Highway Services Branch Manager
ROB KIBBE JOE VITIRITTO I count many of you, readers, as my allies, and I know there are others who don’t want to
Aon PAM Transport
Executive Director Client Services President & CEO leave talent on the table. I hope you’ll make plans now to continue this conversation at the
MIKE MCNUTT DOUG VOSS
Distribution Solutions, Inc. University of Central Arkansas 2023 Arkansas Trucking Association conference in May. We’ve invited Arkansas Aerospace &
CEO, Owner Professor of Logistics & Supply
Chain Management
Defense Alliance President Gina Radke to tell her story about finding advocates and share real,
An affiliate of the
American Trucking Associations tangible ways everyone can learn to recognize, capture and elevate talent in your workforce.
Arkansas Trucking Association (ATA) is an Arkansas corporation of trucking
companies, private carrier fleets and businesses which serve or supply the Someday it won’t be noteworthy when men invite women to the table, and there’ll be no
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 need to asterisk their support: he’s a good ally and advocate for a man.
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)
Little Rock, Arkansas 72201
Phone 501.372.3462 Fax 501.376.1810 Shannon Newton
www.arkansastrucking.com Drivers Legal Plan
President, Arkansas Trucking Association
ARKANSAS TRUCKING REPORT | Issue 5 2022 Drivers Legal Plan 7
TRUCK SALES | PARTS | SERVICE | BODY SHOP
LEASING & RENTAL | FINANCE | CARRIER
Jonesboro
MHC Kenworth
(855) 483-6994
Little Rock
MHC Kenworth
(866) 419-5718
MHC Truck Leasing
(866) 862-5283
MHC Carrier Transicold
(866) 243-9660
Fort Smith
MHC Truck Leasing
(866) 804-7860
Springdale
MHC Kenworth/Volvo
Dealership (866) 271-0785
Leasing & Rental
Truck Source Van Buren
Carrier MHC Kenworth
RoadReady
TRP (866) 811-1358
OVER 130 LOCATIONS IN 19 STATES
mhc.com |
TRUCK SALES | PARTS | SERVICE | BODY SHOP THEY SAID IT
LEASING & RENTAL | FINANCE | CARRIER
Jonesboro
MHC Kenworth “To any state looking to target our
(855) 483-6994
Little Rock industry, you better bring your A-game …
MHC Kenworth
(866) 419-5718 because we’re not rolling over."
MHC Truck Leasing
(866) 862-5283 — ATA President and CEO Chris Spear warned states that truck-only toll projects are not a winning strategy after a federal
MHC Carrier Transicold judge sided with the trucking industry in a lawsuit to overturn Rhode Island's tolls that applied solely to out-of-state trucks
(866) 243-9660
Fort Smith
MHC Truck Leasing “Whoever you are as an “Anyone in Arkansas
(866) 804-7860 who wants to drive
Springdale
MHC Kenworth/Volvo individual, you can put that electric vehicles should
Dealership (866) 271-0785
Leasing & Rental
Truck Source Van Buren have no worries about
Carrier MHC Kenworth in the truck and be just fine,
RoadReady the availability of
TRP (866) 811-1358
I promise. Wear nails, wear matter where they live
OVER 130 LOCATIONS IN 19 STATES charging stations, no
within the state.”
makeup, wear eyelashes.” —Gov. Asa Hutchinson on his goal
—UPS driver Tiffany Guess on being authentic and recruiting women into the to locate electric vehicle charging
trucking industry during a Good Morning America segment, “Trailblazing Women,” stations every 50 miles along the most
which highlighted her family’s history in trucking and her first-place win at last used interstates and build out the
year’s Oklahoma Trucking Championship infrastructure in more rural areas
We have heard loud and clear
from drivers—they need more
places to rest, and they need to be
safe and secure while doing so.”
— FMCSA Administrator Robin Hutcheson on the need for more truck parking. On Sept. 30, the Department of
Transportation shared a new handbook for states, detailing strategies for developing truck parking.
mhc.com |
ARKANSAS TRUCKING REPORT | Issue 5 2022 9
NEWS IN BRIEF
drivers, and 39% were motor carrier
executives. Among driver respondents,
truck parking, fuel prices and driver
compensation were the top three con-
cerns, while motor carriers ranked the
driver shortage, driver retention and
fuel prices as their top three concerns.
TRUCK FREIGHT REBOUNDED
SLIGHTLY IN 2021
American Trucking Associations’
Chief Economist Bob Costello said that
the 2022 Trucking Trends report showed
“that despite a challenging environ-
ment, trucking did experience growth
and maintained its position as the
dominant freight mode.” The trucking
industry moved 10.93 billion tons of
freight in 2021, generating $875.5 bil-
lion in revenue. That’s up from 10.23
billion tons in 2020, and accounts for
80.8% of the nation’s freight bill.
FUEL COSTS TOP THE LIST OF With record-high fuel costs this
TRUCKING INDUSTRY ISSUES year, fuel prices were ranked as the top
For the first time since 2013, the industry concern, replacing the driver
cost of fuel breached the industry’s list shortage, which had been the number
of concerns, according to the American one issue for five years in a row. This
Transportation Research Institute’s 18th year, the driver shortage was the sec-
annual Top Industry Issues report. More ond-ranked issue, followed by the lack
than 4,200 trucking industry stakehold- of available truck parking. Rounding
ers participated in this year’s survey, out the top five were driver compensa-
including motor carriers, truck drivers, tion and the economy.
industry suppliers, driver trainers, law “ATRI’s list is a true reflection of
enforcement and others. what it was like to be a trucker this
“This year’s survey had the highest year,” said ATA Chairman Harold A.
number of responses to date, show- Sumerford Jr. “High fuel prices and find- Helping to move that freight was
ing how committed our industry is to ing drivers were two of our industry’s an increase in industry-related jobs.
identifying the most critical concerns biggest challenges — challenges made Trucking now employs 7.99 million peo-
and more importantly, figuring out how more difficult by the economy and the ple, including 3.49 million truck drivers.
we collectively deal with each issue,” continued lack of truck parking.” Female drivers have reached an all-time
said ATRI President and COO Rebecca More than 47% of the survey high of 7.9% of the driver pool.
Brewster. respondents were professional truck
10 Issue 5 2022 | ARKANSAS TRUCKING REPORT
NEWS IN BRIEF, US DOL believes it is legally chairman and vice president of safety
Continued from page 10 constrained from adopting an ABC test and compliance for Zonar Systems.
because the Supreme Court has held “The U.S. Department of Transportation
Additionally, trucking remains pri- that the economic reality test is the is offering federal funds to help expand
marily a small business industry with applicable standard for determining truck parking capacity, and we encour-
95.7% of fleets operating 10 or fewer workers’ classification under the age states to capitalize on these resourc-
trucks. FLSA as an employee or independent es now while they are available.”
contractor. On Sept. 29, U.S. Transportation
US DOL REJECTS ABC TEST FOR Because the ABC test is inconsis- Secretary Pete Buttigieg sent a letter
EMPLOYEE CLASSIFICATION tent with Supreme Court precedent to ATA pledging the administration’s
On Oct. 11, the U.S. Department of interpreting the FLSA, the US DOL commitment on the issue and detailing
Labor released a proposed rule to clarify believes that it could only implement an grant programs under the Bipartisan
when an individual may be classified ABC test if the Supreme Court revisits Infrastructure Law to fund truck park-
as an employee or an independent con- its precedent or if Congress passes legis- ing projects. The DOT also issued
tractor under the Fair Labor Standards lation that alters the applicable analysis official guidance on funding eligibility
Act. Despite the 160-page count, it does under the FLSA. requirements for states as they plan new
not include much specificity and only truck parking projects.
references trucks/trucking twice. LAW ENFORCEMENT GROUP ATA’s Law Enforcement Advisory
URGES STATES TO ADDRESS Board is a working group comprised of
TRUCK PARKING SHORTAGE trucking industry professionals who
The American Trucking have previous law enforcement experi-
Associations’ Law Enforcement Advisory ence, as well as current and retired law
Board sent a letter to all 50 governors enforcement officers with experience on
and state departments of transporta- trucking issues. The 37 current mem-
tion urging them to apply for federal bers of LEAB combine for more than
funds to expand truck parking capacity. 900 years of law enforcement experi-
A nationwide shortage of commercial ence.
truck parking has created a growing
highway safety issue, as truck drivers SALES OF NATURAL GAS TRUCKS
are often forced to park in illegal or UP, NUMBER OF STATIONS DOWN
unsafe locations when authorized park- Sales of heavy-duty natural gas
In particular, it did not include ing is unavailable. trucks have jumped 18% this year over
the far more stringent ABC test, which “Law enforcement organizations last, according to ACT Research; how-
is at the heart of California’s AB5 law. across the country, from local police ever, fueling infrastructure continues to
The ABC test is a three-pronged rule departments to statewide patrols, contract.
to determine independent contractor are impacted by this issue and have Overall trucks sales through the
versus employee status. The B prong is seen firsthand how the truck parking first eight months of the year are up,
particularly problematic for the truck- shortage jeopardizes road safety for all but mixed: June dropped 33% year-over-
ing industry because it leans toward motorists,” said Fred Fakkema, LEAB
defining an employee as a worker who
is engaged in the primary activity of the
hiring company. A trucking company
hiring an independent owner-operator
could be seen as violating the B prong.
The ABC test could also have an
impact on determinations under work-
ers’ compensation law. US DOL chose
to analyze California’s ABC test as a
regulatory alternative because business-
es subject to multiple standards, includ-
ing nationwide businesses, are likely to
comply with the most demanding stan-
dard if they wish to make consistent
classification determinations.
12 Issue 5 2022 | ARKANSAS TRUCKING REPORT
Untitled-3 1 3/24/22 1:45 PM
WELCOME, NEW ATA MEMBERS!
Together, We Are the Power of Association *Private carrier
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.
ALLIED MEMBERS DORISKFINELY.BIZ WORLDLINK TRUCK DRIVING
ARKANSAS STATE UNIVERSITY – Jonesboro, Ark. ACADEMY, LLC
MID-SOUTH 870-926-5803 North Little Rock, Ark.
West Memphis, Ark. dorisk.wearelegalshield.com 870-664-7624
asumidsouth.edu Assistance with CSA and DOT issues worldlinktda.com
Commercial driver and technician for carriers and drivers Commercial driver training
training FLEET ADVANTAGE
CCMSI Fort Lauderdale, Fla. CARRIER MEMBERS
Little Rock, Ark. 954-615-4400 DELTA ASPHALT OF ARKANSAS*
501-280-0949 fleetadvantage.com Paragould, Ark.
ccmsi.com Fleet management 870-573-6882
Third party administrator RESONEA’ DROWZLE SLEEP HEALTH deltacos.com
DETCO INDUSTRIES, INC. Scottsdale, Ariz. Number of trucks: 15
Conway, Ark. 877-376-9953 FISHER TRUCKING
501-329-6965 resonea.com DeWitt, Ark.
detco.com Sleep healthcare programs 870-946-0414
Advanced chemical and cleaning W & B SERVICE, CO. Number of trucks: 16
solutions for fleet care Lowell, Ark. JUSTIN TIME
DIESEL DRIVING ACADEMY 479-361-2555 Ashdown, Ark.
Shreveport, La. wbservice.com justintimetransport.com
318-636-6300 Transport refrigeration and semi- 800-643-0230
dda.edu trailer dealership Number of Trucks: 68
Commercial driver training
For membership information, visit arkansastrucking.com
NEWS IN BRIEF, FMCSA ENDS COVID EMERGENCY [on the last extension]. We also looked
Continued from page 13 DECLARATION AFTER 30 at where we are with COVID, and the
MONTHS guidance that has been coming out on
year, July swelled 204% over last July First issued in March 2020 follow- that. All was behind the decision to let
and August was up 20% versus a year ing the national emergency declared by it expire,” FMCSA Administrator Robin
ago. President Trump, FMCSA had allowed Hutcheson told media.
While more trucks are on the high- a national hours-of-service exemption
ways, there are fewer stations to fuel in response to COVID-19. It gave truck BIDEN RELEASES MORE OIL
them. ACT Research states there were drivers and carriers more flexibility to TO CUT GAS PRICES
822 public CNG stations open in the deliver shipments of livestock, medical President Joe Biden announced
U.S. in mid-September 2022, most of supplies, vaccines, groceries and diesel an additional 15 million barrels of oil
which can accommodate a heavy-duty fuel. It was extended and/or modified would be released from U.S. emergency
vehicle, and 54 LNG over the same over 10 times in the past 30 months, but reserves, as well as what he called a
period. This count is 15 fewer public was allowed to expire on October 15. “ready and release plan” aimed at driv-
CNG stations and no additional public “We evaluated the data coming ing down gasoline prices.
LNG stations since June of last year. back on who was using it, as well as the This is the final release from a
evaluation of the comments we received program the administration began in
14 Issue 5 2022 | ARKANSAS TRUCKING REPORT
State. It was so low that barge traffic
the spring to issue a total of 180 mil- was stopped during the first week of
lion barrels of crude from the Strategic October. Closures stopped a reported
Petroleum Reserve, an attempt to 2,000 barges and about 100 towboats.
address high prices at the pump stem- Barge traffic re-opened after river
ming from Russia’s invasion of Ukraine channels were dredged, but the water
and other factors. levels remain perilously low and local
The president said that while gas amount of revenue allowed. Fees grain storage elevators are filled to near
prices had fallen from summer highs, will be reduced by anywhere from capacity.
his administration would consider $18 to $17,688 for 2023 and beyond, Harvest is underway in Arkansas.
additional actions to lower them fur- the Federal Motor Carrier Safety But with no barges and grain elevators
ther, including possible additional SPR Administration said. The registration and storage full, trucks loaded with soy-
releases. charges apply to interstate carriers, beans have nowhere to go.
Inflation, driven in part by gasoline brokers, freight forwarders and leasing
prices, is at a four-decade high, posing companies. COLLEGE ENROLLMENT
a political challenge for Biden and his The FMCSA said the board is lower- DECLINE SLOWING
party and the mid-term elections draw ing fees because the program had been While undergraduate college enroll-
near. collecting more than $107.78 million in ment is still continuing its years-long
The president also urged Congress previous years, the maximum revenue decline, the rate is slowing. U.S. colleges
to quickly pass legislation to revamp allowed. and universities saw a drop of just 1.1%
federal permitting rules to help speed Entities with two or less commer- of undergraduate students between the
up energy infrastructure projects. cial vehicles currently pay $59 in fees fall of 2021 and 2022. This follows two
annually, while those with 1,001 or years in which more than 1 million
DOT TO REDUCE INTERSTATE more pay $56,977. Those costs would fewer students enrolled in college.
REGISTRATION FEE BY 31% be reduced to $41 and $39,289, respec- "I certainly wouldn't call this a
Carrier registration fees will be tively, following the rule change recovery," says Doug Shapiro, who leads
reduced by 31% after the program While the public can still object to the research center at the National
collected more than the maximum this final rule, states can begin collecting Student Clearinghouse. "We're seeing
the fee Oct. 1 for the 2023 calendar year. smaller declines. But when you're in
a deep hole, the fact that you're only
MISSISSIPPI RIVER’S LOW digging a tiny bit further is not really
LEVELS DISRUPTING BARGE good news."
TRAFFIC, AFFECTING FARMERS Shapiro added that other major fac-
The Mississippi River hit an all-time tors keeping prospective students at bay
low in three states (Arkansas, Missouri are concerns about student debt and a
and Mississippi) on Oct. 22. The low strong labor market for unskilled workers.
water levels have had an impact on
farmers and barge traffic in the Natural
ARKANSAS TRUCKING REPORT | Issue 5 2022 15
20 AGS WARN EPA AGAINST
CALENDAR OF EVENTS CARBON EMISSIONS STANDARD
Twenty Republican state attorneys
general (including Arkansas’ Leslie
Rutledge) are opposing the Democrats’
NOVEMBER DECEMBER campaign to convince the EPA to create
a comprehensive standard for address-
NOVEMBER 17 DECEMBER 1
JOINT MTC/SMC MEETING & AFC MEETING ing greenhouse gas emissions.
LEVEL 1 INSPECTION DEMO Fort Smith, Ark. In a letter to EPA Administrator
Aloft Hotel Michael Regan, the state attorneys said
Little Rock, Ark. blue states’ suggestion that the Supreme
Court's recent climate ruling left space
MAY 15-17 SAVE THE DATES for EPA to establish National Ambient
ATA CONFERENCE & FOR 2023! Air Quality Standards for greenhouse
VENDOR SHOWCASE gases is both “imprudent and legally
Statehouse Convention Center flawed.”
Little Rock, Ark. “The court clearly stated EPA must
regulate within the express boundaries
of the statute that Congress passed,” the
JUNE 22-24 letter stated. “The EPA cannot exercise
ARKANSAS TRUCKING expansive power that Congress did not
CHAMPIONSHIP clearly give — either directly or indirectly
— to reach the outcome our colleagues
Rogers Convention Center who wrote the letter urge.”
Rogers, Ark. This comes in response to a letter
from Ellen Rosenblum of Oregon and
other Democratic attorneys general for
For calendar information, visit arkansastrucking.com seven states and Guam who argued to
Regan that setting a standard for green-
house gases under Clean Air Act sec-
NEWS IN BRIEF, tions 108 through 110 could withstand
Continued from page 15 challenges before the conservative-dom-
inated Supreme Court.
BOSSES ADMIT IN-OFFICE
EMPLOYEES RECEIVE MORE
RECOGNITION
As more companies adopt hybrid
work arrangements, with teams split
between in-person and remote employ-
ees, a pressing question arises: How
TESLA BOSS MUSK SAYS SEMI Tesla has not offered formal important is face-time?
DELIVERIES WILL START IN updates on Semi in years, so it is not New research suggests it matters —
DECEMBER known how many of the 100 will be a lot. About 96% of executives say they
At long last, Tesla’s Semis will soon delivered in December, if Pepsi still notice and value employees’ contribu-
be delivered. But only to PepsiCo. holds reservations for 100 units or why tions made in the office far more than
In a Tweet, Tesla CEO Elon Musk Pepsi was selected to get the first batch work done from home, according to a
said that production on his company’s of trucks. They were not the first carrier Sept. 27 report from workplace platform
“500 mile range & super fun to drive” to place an order. Envoy. The survey included responses
electric tractor would soon commence Semi was originally set for produc- from 1,000 employees and 250 execu-
with “deliveries” set for December 1. tion in 2019, and that date has been tives in the U.S.
PepsiCo ordered 100 Semis in December delayed at least three times in the past Executives and employees, however,
2017, just weeks after the truck made three years. differ on the importance of face-time.
its debut. While an overwhelming majority of
16 Issue 5 2022 | ARKANSAS TRUCKING REPORT
ADVERTISER
executives place greater value on in- to worsen as more companies turn to
office contributions, 42% of employees virtual or hybrid offices.
believe their bosses notice their remote RESOURCE INDEX
contributions as much as their work in KROGER AND ALBERTSONS TO
the office. MERGE, CREATE PRIVATE FLEET Aon ..................................Inside Front Cover
Envoy found that a greater percent- GROCERY BEHEMOTH
age of female executives (8%) notice Kroger and Albertsons have ArcBest .......................................................25
employees’ remote contributions as announced a merger. Once the deal is
much as in-office contributions com- complete, the combined companies will ATA Self Insurers’ Fund .............................42
pared to their male counterparts (3%). be the largest private fleet in the grocery
segment with nearly 2,400 Bruckner's Truck Sales ............................... 38
tractors. Walmart, the largest Custard Insurance Adjusters .....................21
retail carrier in the U.S., has
just more than 10,000 trac- Drivers Legal Plan .....................................34
tors.
Together, Albertsons FedEx Freight .............................................32
and Kroger currently employ
more than 710,000 associ- Great West Casualty Company .................49
ates and operate a total of
4,996 stores, 66 distribution InfoStream .................................................17
centers, 52 manufacturing
plants, 3,972 pharmacies and McGriff .....................................................53
2,015 fuel centers. Through
the merger, they will have an MHC ............................................................8
The notion of proximity bias — the expanded network of stores and distri-
idea that leaders favor employees who bution centers, as well as a broader sup- PrePass Safety Alliance ..............................27
are in the office more often for promo- plier base that is expected to optimize
tions and pay raises — is real and likely its supply chain. ATR Rush Truck Centers .....................................4
Southern Tire Mart .....................................3
Stallion Transportation ...............Back Cover
TA Petro .....................................................13
TLG Peterbilt .............................................30
UCA ...........................................................22
Utility Tri-State, Inc.....................................6
Wayne Smith Trucking .............................11
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 5 2022 17
The Future Is Now
How Arkansas is playing host to transportation innovation
By Dwain Hebda closer than you think. Just up the road and we’re fortunate to be up here in
Contributing writer in Northwest Arkansas, to be precise. Northwest Arkansas where we’re sur-
“We’ve got a great history of inno- rounded by that.
Ask any member of the Arkansas vation as a state and as a company,” “Our company has always been
Council on Future Mobility, the forma- said Craig Harper, chief sustainability based on innovation, and we under-
tion of which Governor Asa Hutchinson officer and executive vice president with stand that you’ve got to continue to
announced in February, and they’ll J.B. Hunt in Lowell. “We like being a innovate. Things are going to change
tell you the future of transportation is part of this process and this change, and be disruptive, and we would rather
18 Issue 5 2022 | ARKANSAS TRUCKING REPORT
be part of that plan and be a disrupter
instead of being the ones that got dis-
rupted.” “THINGS ARE GOING TO CHANGE AND BE
In announcing the council, Gov. DISRUPTIVE, AND WE WOULD RATHER BE PART OF
Hutchinson said it was the first brick
in the foundation of building the state THAT PLAN AND BE A DISRUPTER INSTEAD OF BEING
into the thought and innovation leader THE ONES THAT GOT DISRUPTED.”
in transportation. The truth is, the
council was just the latest dram of —CRAIG HARPER, J.B. HUNT TRANSPORT’S CHIEF
octane poured into an engine that was SUSTAINABILITY OFFICER AND EXECUTIVE VICE PRESIDENT
already running hot.
THE EPICENTER OF NORTH
AMERICA’S SUPPLY CHAINS Hoisting the banner “Transforming the Case in point Walmart, which
“The region, collectively, moves Moving World,” UP.Summit sought to in May announced it was expanding
more things than any other region in underscore the alignment of market its drone delivery service partnership
the world,” said Cyrus Sigari, co-found- factors that exists here and the unprec- through DroneUp to reach four million
er and managing partner of California- edented opportunities that creates at households across six states. In July, the
based UP.Partners, an investment firm this precise moment in history. company also reported it was order-
and startup accelerator. “Between the “I’ve watched the region transform, ing 4,500 all-electric vehicles for its
300 billion items Walmart sells and and I'm so inspired by the entrepre- last-mile delivery service. The vehicles,
what J.B. Hunt moves and what Tyson neurial spirit of Arkansas,” said Sigari, which could ultimately number 10,000,
moves and what FedEx over in Memphis who lives in the state part-time. “I were purchased from Canoo, an electric
moves and what Falcon Dassault in think the state punches way above its vehicle manufacturer headquartered in
Little Rock moves, it’s a poorly under- weight in terms of its ability to go and Bentonville.
stood story of how much matter is con- take on a big task. The greatest example In mid-2020, Tyson announced
trolled out of this region.” of that is what we’ve seen in Northwest sweeping changes in its packaging and
If that’s true, then it’s a secret that Arkansas, but it’s also throughout the distribution supply chain nationwide,
more and more people in business, tech state. reconfiguring three separate net-
and finance are getting clued into every “To have this convergence of great works into one. The company said the
day. In May, Chattanooga, Tenn.-based entrepreneurial spirit, already mov- new system, dubbed the Distribution
FreightWaves, a provider of transporta- ing more things than anywhere in the Network of the Future, would drive
tion and logistics data and content, world, having a government that’s really new efficiencies out of existing facili-
hosted its annual supply chain event in open-minded and thinking about how ties, resulting in reduced mileage, labor,
Rogers. Dubbed “The Future of Supply to best prepare itself, is a pretty exciting outside cold storage fees and handling
Chain,” the event caters to C-level sup- convergence.” charges. When fully implemented, the
ply chain execs and heavy-hitter inves- The state’s business titans — retailer system is also expected to dramatically
tors. Since the inaugural event in 2017, Walmart, logistics and transportation reduce shipping time from four or five
the event has played much larger cities, company J.B. Hunt and food processor days to one or two.
but decided on Northwest Arkansas due Tyson—have only increased the buzz And J.B. Hunt continues its for-
to the unique business environment. over Arkansas, as each company have ward-thinking approach to both logis-
“We decided to move [the event] introduced futuristic improvements to tics and sustainability, an effort that
to places that are more central to where their operations. took a giant step forward in 2019 with
the activity and decisions are happen- “I think part of what’s so excit- the unveiling of J.B. Hunt 360box, a
ing,” said FreightWaves CEO Craig ing in Arkansas is there’s so much drop trailer solution that builds on J.B.
Fuller in a press release. “We feel like that’s already happening here right Hunt 360 technology platform allowing
Northwest Arkansas is the epicenter of now,” Sigari said. “Arkansas is ranked small carriers to drop and hook freight,
North America’s supply chains, and we second out of 50 states in the drone dramatically increasing efficiency.
wanted to be there.” economy and frankly, the analysis for “J.B. Hunt 360 is a digital freight
Then in June, Sigari’s company that is wrong. We’re actually number matching platform, which allows ship-
UP.Partners sponsored the exclusive one among the states. That’s incredible, pers to post their freight and carriers
UP.Summit in Bentonville, an invita- that’s an example of innovation where to go out and select that freight, elimi-
tion-only event featuring a collection of the state is already there and pressing nating empty miles,” said Harper, who
CEOs, start-ups and capital allocators. into it.”
ARKANSAS TRUCKING REPORT | Issue 5 2022 19
go down the road and wonder where
they’re going to fuel up next. They have
options at many different exits.
“THE REGION, COLLECTIVELY, MOVES MORE THINGS “The question now becomes how
THAN ANY OTHER REGION IN THE WORLD. BETWEEN are we going to replicate something that
took so long to build in a short period
THE 300 BILLION ITEMS WALMART SELLS AND WHAT of time? How are we going to build out
J.B. HUNT MOVES AND WHAT TYSON MOVES AND this fueling network? The new technol-
WHAT FEDEX OVER IN MEMPHIS MOVES AND WHAT ogy coming into play that we’re very
excited about is electric. Electric is com-
FALCON DASSAULT IN LITTLE ROCK MOVES, IT’S ing; there’s no ifs, ands or buts. We’ve
A POORLY UNDERSTOOD STORY OF HOW MUCH got some challenges. On the heavy
MATTER IS CONTROLLED OUT OF THIS REGION.” truck side, you have the issue of weight,
range, cost, resale value. We have no
idea what resell is going to be. Whatever
—CYRUS SIGARI, UP PARTNERS you buy today, is it going to be some-
CO-FOUNDER AND MANAGING PARTNER what outdated in 12 to 18 months?
How much? No one knows.”
Stepping into that breach is the
definition of entrepreneurial fore-
sits on the Arkansas Council on Future that would be in the best interests of sight and courage, Sigari said. Another
Mobility. “We’ve seen that with our the state. That may be incentivizing critical role of the mobility council is
own equipment. We’ve reduced some- certain companies and innovation or to hold the flashlight by which busi-
thing like six million empty miles since removing barriers to technology deploy- ness and government can navigate the
2020 using that technology for our own ment. It takes a lot of different shapes. murky waters ahead.
assets. The intent of the council is to provide “What we're talking about today is
“J.B. Hunt 360box is another solu- suggestions for policies for the state to the first inning of like, 30. We’ve got a
tion that we’ve come out with, putting adopt that would enable the technolo- long way to go,” he said. “But the pace
that box at shippers and receivers and gies to be deployed in the marketplace.” of innovation has gotten much quicker.
allowing the thousands of carriers that One big challenge in the innova- You’ve got to really position the state to
we use in the capacity of approximately tion space is the gap between imagina- take advantage of short-term possibili-
a million trucks on the platform access tion and implementation. Designing an ties and remove short-term challenges,
to that freight.” all-electric fleet of trucks or an autono- while at the same time you also have to
mous vehicle is the relatively easy part, position it for longer-term opportunities
FROM COOL IDEA TO REALITY compared to building the required net- and start thinking about longer-term
With all of the innovation that’s work of charging stations or revamping challenges now.
occurring, the role of the Arkansas highways or forging a regulatory and “Just to give an example, charging
Council on Future Mobility is to exam- legislative climate conducive to all of infrastructure is a really big problem.
ine what challenges and opportunities the above. And in the hyper-competitive There are three-year waits for some of
exist for bringing new ideas to light and and supercharged marketplace of today, the transformers. So, if you really want
new technologies to market. the timeline to accomplish these feats to be ready for what's coming down the
“You have to have someone out has been trimmed substantially over pike, you’ve got to be making big bets
there dreaming it if it is ever going to previous eras. today and you can’t be waiting for that.
become real,” said Shannon Newton, “Systems usually take years to Much of the work that we’re doing is
president of the Arkansas Trucking develop,” Harper said. “Our current how do you get the infrastructure ready,
Association and a member of the gover- system is based on truck stops along how do you get policy in place, how do
nor's advisory council. “Then you have the interstate system. The diesel engine you get labor workforce prepared for a
where that meets reality, the implemen- overtook the gasoline engine being the new paradigm. The list goes on and on.”
tation of things to save costs, increase engine of choice to move goods. Back
efficiency or provide some sort of extra in the ‘50s you had the interstate sys- GASOLINE ON THE FIRE
convenience to the customer. tem development being launched at the On the other hand, certain events
“One of the mobility council’s roles same time. We’ve had years to develop can shift the playing field and alter
is to examine the ways in which public this fuel network to where it’s not too
policy does or does not support growth much of a concern for any trucker to
20 Issue 5 2022 | ARKANSAS TRUCKING REPORT
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timetables dramatically overnight, such
as a global pandemic.
“COVID was like gasoline on the
fire,” Newton said. “Things were mov-
ing in that direction at a slow and
steady pace pre-COVID, but when
we started shutting down storefronts
and keeping people in their homes for
extended periods of time, that was
something that was completely foreign
to the American experience.
“Before COVID, I went to the gro-
cery store; during COVID I learned how
to work the groceries-to-go app. From
that experience, instead of going back
to the grocery store now, they’ll bring it
to my front door. And I can name half a
dozen people I know who have deployed
BUSINESS FOUNDATION FOR A that strategy to make their lives easier,
because we got used to it.”
SUCCESSFUL CAREER nary times in which we find ourselves
Newton said while the extraordi-
have created a near-rabid hunger from
UNDERGRADUATE & GRADUATE | ONLINE OR IN PERSON consumers for what’s next, the notion
that existing industries will be trans-
formed or eliminated overnight are
UCA’s Logistics and Supply Chain Management greatly exaggerated. She said while the
program prepares students to tackle global supply trucking industry will see transforma-
chain challenges through hands-on learning tive technological changes in the com-
opportunities and rigorous curriculum. ing years — some it a lot closer than
people realize — the foundational ele-
ments of point-to-point shipping will
Graduates are qualified to optimize product flow remain unchanged.
and storage, collaborate with suppliers and “The viability of trucks and the
customers, and meet delivery expectations trucking industry as an essential part
through innovative solutions. of the supply chain is something that’s
not going to change for the foreseeable
future,” she said. “Many people’s per-
spective is that these new technologies
are an alternative to existing transpor-
tation, but it’s really more of a comple-
ment. It’s making the supply chain
more complex and more tailored, but
we’re not really changing any modality
or link in the chain.
“We can talk about electric vehi-
cles, autonomous vehicles or changes to
supply chain, whether there’s a physical
driver or a driver operating a truck via
remote control, but the trucking indus-
try itself is still very much in the fabric
LEARN MORE: uca.edu/business of how things get from where they are
to where we want them to be.” ATR
22 072922_UCA_COB_LSCM_Trucking_Ad2/3.indd 1 7/29/22 4:02 PM Issue 5 2022 | ARKANSAS TRUCKING REPORT
A Win and a Warning
Trucking’s win on Rhode Island tolls has national implications
By Steve Brawner
Contributing Writer
Motor carrier advocates say a court
decision declaring a Rhode Island truck-
only tolling scheme unconstitutional
will dissuade other states from targeting
truckers.
District Judge William Smith ruled
Sept. 21 that the state’s RhodeWorks
plan, which tolls only Class 8 trucks at
certain Rhode Island bridges, violated
the U.S. Constitution’s dormant
commerce clause.
Smith permanently enjoined the
state from charging or collecting tolls
in its RhodeWorks program. The ruling
did not require the state to reimburse
truckers for the tolls they have already
paid.
Chris Spear, American Trucking
Associations president and CEO, said in
a press release, “We told Rhode Island’s
leaders from the start that their crazy
scheme was not only discriminatory,
but illegal. We’re pleased the court
agreed. To any state looking to target
our industry, you better bring your
A-game because we’re not rolling over.” U.S. Constitution’s dormant commerce Rich Pianka, American Trucking
clause in three ways: that it was Associations general counsel, said he
OFFICIALLY UNCONSTITUTIONAL discriminatory in intent, that it was was confident the case would stand on
The plaintiffs — Cumberland discriminatory in effect and that it appeal. Courts of appeals typically defer
Farms, Inc.; M&M Transport Services, didn’t approximate fair use by charging to a lower court’s finding of fact, and
Inc.; New England Motor Freight and all users of the tolled bridges. The Smith had lots of facts. They are more
the American Trucking Associations plaintiffs only had to win on one of the willing to overrule on findings of law,
— argued that the policy violated the three counts, and they won on all three.
ARKANSAS TRUCKING REPORT | Issue 5 2022 23
important in and of itself,” he said.
“But it was also about the fact that the
trucking industry is not a piggy bank
for states to try and solve their revenue
problems out of.”
IF EVERY STATE DID SOMETHING LIKE Arkansas Trucking Association
[RHODEWORKS], IT WOULD BE ECONOMICALLY President Shannon Newton agreed that
DISASTROUS FOR INTERSTATE COMMERCE. EVERY the decision will dissuade other states
STATE WOULD TRY TO PUSH ITS FUNDING BURDENS from targeting truckers.
"The most important thing
ONTO OTHER STATES, AND THAT’S REALLY NOT WHAT from my perspective is preventing
THE UNITED STATES WAS SUPPOSED TO BE ABOUT. this scheme from gaining traction as
a way for state DOTs to be creative
—RICH PIANKA, and unfairly burden the trucking
AMERICAN TRUCKING ASSOCIATIONS GENERAL COUNSEL industry with their infrastructure
funding woes,” she wrote in an email.
“Everyone benefits from infrastructure
investment, and everyone should share
in the responsibility to pay for its
upkeep. Putting that burden solely on
but Smith was on strong legal ground. considering his options. Rhode Island the backs of the trucking industry is not
The policy was clearly discriminatory Department of Transportation Director only unfair, but it is now – officially –
in intent based on comments and Peter Aliviti said on The News with unconstitutional. The ruling by the U.S.
actions by state policymakers. It was Gene Valicenti Sept. 22 that RIDOT’s District Court sends a clear message to
discriminatory in effect because 80% attorneys and the state’s attorney all states that the trucking industry will
of the trucks paying the toll were general were recommending the state not serve as blank checks.”
from out of state, while the rest based appeal, but more discussion was needed. The toll system collected $45
inside the state enjoyed bigger benefits Rhode Island Trucking Association million annually, but $4 million of
from the program’s toll caps. It didn’t President Chris Maxwell said he expects that was spent on expenses for a net
approximate fair use because only 3% of the state to appeal. of about $40 million, Aliviti said. The
the users were paying 100% of the tolls. “After seven years of a brutal money had been used to repair 33
Pianka said the Constitution’s and bloody battle that involved the bridges over the last six years. The $45
commerce clause was written so that American Trucking Associations, million was also used to generate an
Congress, not the states, would handle ATA and the Rhode Island Trucking 80% federal match.
interstate commerce, allowing the Association, we not only got an In his 91-page ruling, Smith noted
country to remain a unified economic unconstitutional ruling, but we got that more than 250,000 cars and trucks
unit. Otherwise, elected officials would a ruling that is going to hold water travel through Rhode Island each day
tax other states whose citizens couldn’t and essentially stand its ground on on I-95. At the same time, 142 of the
hold them accountable at the ballot box. any challenges, including a challenge state’s 611 state-owned bridges on the
The country then could devolve into 50 which is most likely to come in the First National Bridge Inventory System were
economic units imposing retaliatory Circuit from the state of Rhode Island,” considered structurally deficient as of
measures on each other. he said. “They’re more than likely going 2015.
“If every state did something to challenge it in the First Circuit, but
like [RhodeWorks], it would be the way the decision is written, that’s DISCRIMINATORY BY DESIGN
economically disastrous for interstate basically chasing fool’s gold. It’s not To take advantage of that traffic
commerce,” he said. “Every state would going to be overturned.” and address the deteriorating bridges,
try to push its funding burdens onto Pianka said the ruling sends a in 2015 then-Gov. Gina Raimondo and
other states, and that’s really not what powerful message to other states that the state’s General Assembly created
the United States was supposed to be were considering enacting truck-only RhodeWorks, making Rhode Island the
about.” tolls and were watching what happened only state to toll only Class 8 trucks.
The state of Rhode Island had in Rhode Island. RIDOT projected that the system
30 days from the day of the ruling to “I just think people should bear tolling various highways would fund
appeal. The Providence Journal reported in mind this was certainly about what about 10% of the state’s needed bridge
Sept. 21 that Gov. Dan McKee was Rhode Island was doing, and that was repairs. The plan included a maximum
24 Issue 5 2022 | ARKANSAS TRUCKING REPORT
EVERYONE BENEFITS FROM INFRASTRUCTURE Innovative
INVESTMENT, AND EVERYONE SHOULD SHARE IN Logistics
THE RESPONSIBILITY TO PAY FOR ITS UPKEEP.
PUTTING THAT BURDEN SOLELY ON THE BACKS OF Solutions That
THE TRUCKING INDUSTRY IS NOT ONLY UNFAIR, Keep Supply
BUT IT IS NOW – OFFICIALLY – UNCONSTITUTIONAL. Chains Moving
THE RULING BY THE U.S. DISTRICT COURT SENDS A
CLEAR MESSAGE TO ALL STATES THAT THE TRUCKING
INDUSTRY WILL NOT SERVE AS BLANK CHECKS. We’re a trusted
advisor, and we see
—SHANNON NEWTON, the world through
ARKANSAS TRUCKING ASSOCIATION PRESIDENT your eyes. We’re
fueled by the simple
notion of finding a
way to get the job
done, no matter what.
We leverage our full
toll cap of $20 for large commercial couple of weeks later, a second draft suite of shipping and
trucks making the border-to-border was proposed that exempted those
trip on I-95 across Rhode Island from two classes and also addressed repeat logistics solutions to
Connecticut to Massachusetts. The per-day visits to a particular gantry. meet your most
maximum amount a truck could be Legislators and state officials said critical needs, each
charged per day was $40. The act those changes were added to address and every day.
passed Feb. 11, 2016, and RIDOT began local businesses’ concerns and that
building the toll system. they would reduce the impact on local Welcome to ArcBest.
The plaintiffs sued in 2018, leading industries.
to a 12-day bench trial in May and In addition to discriminating arcb.com
June this year. Massachusetts-based against out-of-state motor carriers, he
Cumberland Farms, which services wrote that the RhodeWorks program
gas stations and convenience stores in did not fairly tax truckers relative to
New England with 120 trucks Class 8 their use of the bridges.
and above, had seen its operating costs Using a bridge means crossing it,
increase by $100,000 since RhodeWorks he wrote, and so therefore users of all
had gone into effect, Smith wrote in his vehicle types should help pay the tolls.
ruling. Instead, under RhodeWorks, 97% of the
Smith wrote that the plaintiffs vehicles using the tolled bridges were
were correct to assert that the law was not tolled.
written with a discriminatory purpose. “Thus, RhodeWorks operates by
The tolls were created with the goal design in a way that exempts not only
of charging out-of-state trucks more most users, but nearly all users,” he
while at the same time protecting wrote. “Without looking much deeper,
local businesses. The first version of a system that places the entire toll
RhodeWorks, which was based on a burden on an extreme minority of users
recommendation by a consultant, would is inherently unfair and fails the test.”
have included Class 6 and 7 trucks. A ATR
ARKANSAS TRUCKING REPORT | Issue 5 2022 25
COUNCIL QUARTERLY
.
.
Networking Professional Development Service
ATA members have the opportunity to be represented in a variety of industry councils that address issues specific to
safety, maintenance/technology, accounting/finance and industry leadership. Each council holds quarterly meetings,
hosts speakers and panels on relevant industry topics, serves as a forum for interchanging ideas and best practices, and
discusses new strategies and implementation practices.
40 UNDER 40 COUNCIL MEETING Larry Bengal
August 25 shared the status
of the Arkansas
Hydrogen Hub
as well as EV
charging infra-
structure, then
he discussed how
to access grants
through the
Infrastructure
Investment and
Jobs Act. sion, Arkansas Trucking Association's
The third quarter meeting of the 40 Rush Enterprises’ Jacques van Director of Safety Services Mike Brust
Under 40 Council met in Rogers, Ark. to Heerden also provided an overview shared strategies to get buy in from all
hear about Lance Faussett's experience of CNG, safety surrounding its use, employees to support safe behaviors and
with LEAD ATA, the American Trucking inspection requirements and regula- safety programs.
Associations' program for member par- tions. And in the second session, Clark
ticipants to gain real-world experience Once the meeting concluded, Thomas, OSHA consultation project
and in-depth industry insights. attendees toured the Don Tyson School manager for the Department of Labor,
Attendees followed the meeting by of Innovation a K-12 charter school presented the safety services his team
practicing their drives at TopGolf. in Springdale. Rodney Ellis, Workforce can provide. He also covered unsafe acts
Training Director for the Springdale and conditions that lead to injuries,
MAINTENANCE & TECHNOLOGY School District, invited the council to plus tips for reducing injuries in the
COUNCIL MEETING experience the school’s shop, comment workplace.
August 24 on curriculum and ultimately discuss
Twenty-six maintenance profes- ways industry and education can
sionals, representing 19 companies, work together to develop employable
attended the third quarter MTC meet- graduates.
ing in Rogers, Ark. Keith Littleton of
K&D Technical Innovations showcased SAFETY MANAGEMENT COUNCIL
the pros of using an oscilloscope, how MEETING
the diagnostic tool saves money and September 1
time by accurately reading what other ArcBest hosted the third quarter
commonly used instruments fail to. SMC meeting at their headquarters in
In the second session, Arkansas Fort Smith for 28 attendees represent-
Department of Energy & Environment’s ing 16 companies. In the first ses-
26 Issue 5 2022 | ARKANSAS TRUCKING REPORT
the final session, Bell & Company’s
Richard Bell led a discussion with Paul
Gehring, Arkansas Department of
Finance and Administration revenue
division, on the recent changes made to
taxes during the Arkansas Legislature
Special Session held in August.
Because Arkansas Trucking
Association is registered with the
National Association of State Boards of
Accountancy as a sponsor of continuing
professional education on the National
Registry of CPE Sponsors, AFC attendees
received three CPE credits for these ses-
ACCOUNTING & FINANCE trucking reaching its highest level in a sions. ATR
COUNCIL MEETING 15-year history.
Sponsored by Carman, Inc. Experts at Scopelitis, Garvin, Light,
September 1 Hanson & Feary provided an update
Council Chairman Clay Sanders of the California AB5 ruling. They IF YOU ARE INTERESTED IN
opened the third quarter meeting of discussed the impacts seen to broker SPONSORING A FUTURE ATA
30 accounting and finance profession- liability and how companies are restruc- COUNCIL MEETING,
als from 21 companies by overviewing turing to adapt and protect their assets. CONTACT KATIE THOMASON AT
ATRI’s Analysis of the Operational Cost In the second session, Danna Hurst of
of Trucking: 2022 Update. He high- Ernst & Young reviewed the changes to KATIETHOMASON@
lighted 10 interesting changes from lease account standards and provided ARKANSASTRUCKING.COM
last year’s report including the cost of best practices for implementation. In
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ARKANSAS TRUCKING REPORT | Issue 5 2022 27
PLUMBING
DEPTHS
Aon’s Rob Kibbe talks about
digging deep into risk, insurance,
tort reform and waterskiing
PHOTOGRAPHY BY JOHN DAVID PITTMAN
28 Issue 5 2022 | ARKANSAS TRUCKING REPORT
“FOR ME, I’D RATHER BE A MASTER OF
ONE THING INSTEAD OF HAVING A LITTLE
KNOWLEDGE ABOUT A LOT OF THINGS. I
ENJOY GOING REALLY DEEP. IF YOU DON’T,
YOU CAN GET OVER YOUR HEAD IN THE
BUSINESS REALLY QUICKLY.”
—ROB KIBBE, AON’S TRANSPORTATION AND
LOGISTICS PRACTICE MANAGING DIRECTOR AND
CLIENT SERVICE LEADER
By Werner Trieschmann
Contributing writer
Aon’s downtown Little Rock branch office — an old, two-story,
red brick building sitting among Little Rock’s few skyscrapers — is
completely empty.
Before the pandemic, the cubicles were occupied every day with
folks on the phone with customers, getting coffee, making small talk.
In 2022, coworkers come together a few days a week and work from
home on Thursdays and Fridays. Today, the space is quiet.
The only soul in the office is Rob Kibbe, managing director and
client service leader for Aon’s transportation and logistics practice.
ARKANSAS TRUCKING REPORT | Issue 5 2022 29
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Aon’s presence in Little Rock is the
headquarters for the transportation seg-
ment of the practice, but it is a larger
company with over 120 offices in the “THERE WAS A GUY IN TOWN WHO EVERYBODY
United States and more in countries KNEW AND EVERYBODY LIKED HIM. HE PLAYED A
around the world. Kibbe is a leading
figure in the company’s trucking insur- LOT OF GOLF AND IT SURE SEEMED LIKE HE MADE
ance arm. He and his team are key play- A GOOD LIVING. HE WAS A STATE FARM INSURANCE
ers working quietly behind the scenes AGENT. I THOUGHT, ‘HOW DO YOU GO ABOUT BEING
to ensure trucking companies big and
small reduce risk and stay on the road. THAT GUY?’ HE HAD THE CAT’S MEOW JOB.”
Kibbe started his working life in the
insurance field, and he’s spent the last —ROB KIBBE, AON’S TRANSPORTATION AND LOGISTICS PRACTICE
22 years at Aon because he “loves the MANAGING DIRECTOR AND CLIENT SERVICE LEADER
trucking space.”
Recently, Kibbe was elected to serve
in one of two allied positions on the
Arkansas Trucking Association board of he spent his childhood. The woods were enjoyed it. It was a lot of fun. I still
directors. near and, when summer arrived and have that slalom ski in my attic. Years
“I have loved being on the board,” school was out, the woods were where ago, I went out skiing on a dare. It was a
says Kibbe. “I’m humbled to be there you could find Kibbe and his neighbor- miracle I didn’t blow out my shoulder.”
with such great leaders. There is so hood pals. Kibbe says he “played every sport
much great experience and wisdom on “We’d be gone all day, playing out in junior high.” By the time he reached
the board. Everybody has been so kind in the woods and then back home to high school, Kibbe dedicated himself to
and welcoming. It’s a friendly group, have dinner and then we’d play kick the football where he played tight end and
and the board is key to growing the can and catch fireflies. I treasure those defensive end positions. There wasn’t a
industry.” days. We tried to preserve some of that scholarship to a big college waiting at
experience for our kids.” the end of his high school football.
GROWING UP IN THE WOODS The playground that was Batesville “I was a mediocre football player,”
AND THE WATER included the woods and the water. says Kibbe. “But I enjoyed it thoroughly
Sitting on the White River in Kibbe and his family took advantage of while I played. The great thing about
northeast Arkansas, Batesville’s modest both. team sports is you learn the power of a
size betrays its continuing appeal “My dad was a big bass fisherman,” team. We had a good team my senior
through the easy access to natural recalls Kibbe. “He would go to fish at year. We didn’t have any future college
resources—a hunting and fishing nearby Greers Ferry Lake. The benefit stars on our team. We had some very
paradise. is we would spend our summers water good players, and we had a lot of ordi-
Kibbe, born and raised in Batesville, skiing and swimming around the boat. nary guys. We did really well together,
says without reservation that it was “a We would night fish. I loved that. It and that made it more special.”
great town to grow up in.” He is the was gorgeous. Those summers, we’d ski
oldest sibling in his family and has two behind the boat.” THE CAT’S MEOW JOB
sisters. His mom was an elementary Casually skiing behind a boat was As high school graduation loomed,
school teacher and his father was a fun for Kibbe but he didn’t have the Kibbe understood that his next stop
journey lineman for the company that personality to leave it at that. Water would be college.
started out as Arkansas Power and Light skiing became an obsession and he “In our house, it wasn’t a mandate
but is named Entergy today. researched and read magazines on the but an expectation to go to college,”
“A lineman was a great job back subject. He didn’t see himself becoming says Kibbe. “I wanted my parents to not
then and still is today,” says Kibbe. a competitive skier. Instead, his aim was be disappointed.”
Kibbe acknowledges his parents’ to know more about waterskiing and Kibbe’s final choice of college
work was not flashy or high profile. possibly get better. wasn’t an agonizing decision.
“Those were crucial jobs for our “I bought a slalom ski with my “I always wanted to go to the
town, even if they weren’t noticed as lawnmower money,” says Kibbe. “I got University of Arkansas,” says Kibbe. “I
they should have been,” says Kibbe. obsessed with skiing. I get that way. mean, in Arkansas our pro team is the
“A neat little neighborhood on the There are subjects I can get into all
edge of town” is how he describes where the way. I read waterski magazines. I
ARKANSAS TRUCKING REPORT | Issue 5 2022 31
Razorbacks. We visited the campus one
time, but I had already registered.”
Before taking his first college class,
Kibbe found a role model in Batesville
who was making a living in a way that “UNFORTUNATELY, OUR SOCIETY IS BECOMING
intrigued the high school senior. INCREASINGLY LITIGIOUS. THE MASSIVE
“There was a guy in town who SETTLEMENTS AND VERDICTS ARE ROCKING OUR
everybody knew and everybody liked INDUSTRY. [THESE POTENTIAL LARGE VERDICTS]
him,” says Kibbe. “He played a lot of
golf and it sure seemed like he made ARE PROMOTED JUST LIKE WINNING THE LOTTERY.
a good living. He was a State Farm MEANWHILE, THE TRUCKING COMPANY WITH A
Insurance agent. I thought, ‘How do you VERDICT AGAINST THEM IS LEFT TO PICK UP THE
go about being that guy?’ He had the
cat’s meow job.” PIECES. THAT HAS BECOME OUR REALITY.”
Kibbe was not the type to blow
off his college classes. He does confess, —ROB KIBBE, AON’S TRANSPORTATION AND LOGISTICS PRACTICE
however, to getting a wake-up call about MANAGING DIRECTOR AND CLIENT SERVICE LEADER
the degree of difficulty of higher educa-
tion and what had to be done to main-
tain good grades.
“My dad had one of those Dad earn your opportunity to become a State “I became interested,” says Kibbe.
Moments with me before I started,” Farm agent,” says Kibbe. “I got an offer Like he did with waterskiing, he
recalls Kibbe. “He said, ‘Listen, it’s from the Chubb Insurance Company was ready to take a deep dive into a sub-
harder in college.’ I made As and Bs in as an energy underwriter in their Tulsa ject matter to learn more.
high school. He reminded me about how office. It was a good company and good “For me, I’d rather be a master
college is expensive. That was all it took. offer. It took me about two nanoseconds of one thing instead of having a little
That scared me straight. I made straight to accept it. It did mean I had to pull knowledge about a lot of things,” says
As my fall semester my first year.” my new wife away from her hometown Kibbe. “I enjoy going really deep. If you
A Bachelor of Science in business of Fayetteville.” don’t, you can get over your head in the
administration with a degree in finance At Chubb, Kibbe spent eight years business really quickly.”
is what Kibbe earned when he graduated as a specialty underwriter and “was It didn’t take Kibbe too long to
from the University of Arkansas. Before exposed to a lot of different aspects of become a master at trucking insurance.
tossing his mortarboard in the air, the insurance business.” After so much
Kibbe met a young woman named Tina. time working at the same place, Kibbe THE LOTTERY
The spark was instantaneous. says he reached a crossroad. He could If you own a TV and don’t have
“My senior year of college, I got leave Chubb and try to work at another an address that happens to be a cave,
a part-time job as a bank teller,” says company where he could become an you’ve seen the commercials. You really
Kibbe. “I met her for the first time agent. On the other hand, he could stay can’t avoid them.
there. Oh my goodness! She was just at Chubb, but the downside was that he A lawyer is making a loud plea to
gorgeous. Besides being beautiful, she is would have to relocate—going wherever viewers and potential customers. The
strong. It doesn’t matter what the sub- the big office needed him to go. Adding question blares from the small screen,
ject is if she doesn’t agree, she will let to the pressure of the decision, Kibbe “Have you been injured by a big rig?!”
you know. I love strong people.” was a new father with a son barely a The upshot of the commercial is that
Kibbe and his wife dated for a year year old. if you have been in an accident with
and then were married in 1991. “I had a great boss at Chubb,” Kibbe a trucking company, your ship could
Four years in college had not dis- says. “He worked it out so I could run a come in the form of a big payday. All
suaded Kibbe from going after that new Chubb office in Little Rock. It got you have to do is dial the number on
insurance agent job he coveted back us back to Arkansas, which is what we the screen, and the lawyer or team of
when he was a teenager in Batesville. really wanted.” lawyers will do the rest.
He would wind up getting work in the A series of connections led Kibbe to These ubiquitous commercials are
insurance field but not in the way or Aon, which wasn’t involved in trucking the most visible sign of how the legal
the company that he expected. insurance at that time. Kibbe saw that landscape has changed when it comes
“The path to be an insurance agent business as an opportunity, a specialty to trucking companies and accidents on
is you get hired as an underwriter and insurance underserved in the market.
ARKANSAS TRUCKING REPORT | Issue 5 2022 33
“EVERYBODY KNOWS WE NEED TO DO SOMETHING ABOUT THIS. THE ONLY
PEOPLE WHO WANT THESE LOTTERY-LIKE PAYOUTS TO CONTINUE ARE PLAINTIFF
ATTORNEYS. THEY SPEND A LOT OF MONEY TO PROTECT THEIR INTERESTS. WE
HAVE A STEEP HILL TO CLIMB, BUT WE CAN DO IT. I AM HOPEFUL THERE WILL
BE SOME KIND OF TORT REFORM IN MY LIFETIME.”
—ROB KIBBE, AON’S TRANSPORTATION AND LOGISTICS PRACTICE MANAGING DIRECTOR AND
CLIENT SERVICE LEADER
the road. Recently released research by study, there were almost 300 cases with ever had. The frequency of accidents has
the American Transportation Research awards over $1 million dollars each. improved.”
Institute demonstrated large verdicts Kibbe and his company are charged Even as trucks are becoming
against trucking fleets are increasing with navigating this new, worrisome demonstrably safer, accidents have and
dramatically, both in number and in landscape the trucking industry finds will continue to happen — at least as
size of awards. itself in. long as humans are involved in some
The cases covered in the research “In the last five to six years, there way, shape or form.
ran from 2006 to 2019 — before the has been an interesting phenomenon,” “Unfortunately, our society is
pandemic temporarily reduced truck says Kibbe. “The trucking industry is becoming increasingly litigious,” says
traffic. The size of legal awards against getting safer, embracing technology and Kibbe. “The massive settlements and
truckers and their companies are improving driver training and driver verdicts are rocking our industry.
astonishing. In the last five years of the pay. We have the safest trucks we have [These potential large verdicts] are
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34 Issue 5 2022 | ARKANSAS TRUCKING REPORT
AT A GLANCE WITH ROB KIBBE
FAMILY: Rob’s been married to his wife Tina for 30 years this November. He also has a
son Tyler, daughter Hannah and daughter-in-law Meridee.
WHAT I DO IS IMPORTANT BECAUSE… “I’m helping people protect their businesses and
helping my colleagues service our clients.”
GENERAL LIFE ADVICE THAT GUIDES ME: “Be kind to everyone in every circumstance
regardless of their position in life.”
IF I COULD JUMP ON A PLANE… “I would go to Moab, Utah, and the Arches National Park.
It’s next on my bucket list.”
FAVORITE MEAL: Salmon poke bowl. “I’m mostly a pescatarian.”
FAVORITE QUOTE: “The only easy day was yesterday.” —Mark Owen, former Navy
Seal and author of No Easy Day: The Firsthand Account of the Mission that Killed
Osama bin Laden
promoted just like winning the lot- 40 years ago, they passed legislation to “The net effect will be fewer truck-
tery. Meanwhile, the trucking company put [monetary] caps on legal claims. I ers and truck companies,” predicts
with a verdict against them is left to traveled over there before COVID hit. Kibbe. “Good luck after that.”
pick up the pieces. That has become There is not this outlandish, lottery- Kibbe can draw a direct line
our reality.” style legal system there. They still go to between the school teacher and line-
Kibbe is proud of how his company trial, but there are reasonable caps.” man jobs that his parents held and the
stands with trucking companies as a Kibbe harbors no illusions that work of the trucker on the road hauling
partner in keeping the business run- limits on jury awards — tort reform — is goods from one place to the next. He
ning. Kibbe takes pains to note that a certainty or immediately on the wants to protect truckers because “they
90% of the trucking industry is made horizon. The issue of tort reform is aren’t seen, but they are essential to our
up of companies with less than 10 the main issue Kibbe will advocate for way of life.”
trucks. These companies are not neces- on the Arkansas Trucking Association In what he does, Kibbe is happy to
sarily built to weather a seven-figure board. He tells a story of a small truck- remain behind the scenes and out of
verdict against them. ing company he’s worked with that the spotlight but still an important part
“Insurance for accidents that hap- was almost wiped out by a big accident of a larger team.
pen is the center of our wheelhouse,” claim award. Kibbe says the company “For me personally what I love is
says Kibbe. “We place insurance for survived, but it will take the business helping people,” says Kibbe. “I’ve had a
these trucking companies. We strive “years to recover.” great day when I walk away knowing I
to provide the proper coverage and do “Everybody knows we need to do helped a client. They have worked hard
it in a cost-effective manner for them. something about this,” says Kibbe about for what they have. I want to give good
[Insurance] is a big cost for compa- the accident claims. “The only people advice so they can make a better deci-
nies. We advise them how to protect who want these lottery-like payouts to sion around risk. The same thing applies
themselves and prevent as much risk continue are plaintiff attorneys. They to my team here at Aon. It’s a good day
as possible. If they do have a claim or a spend a lot of money to protect their when I help them solve problems.”
loss, claim mitigation is the art of our interests. We have a steep hill to climb, At the heart of Kibbe’s work and
business. We have experts that do this but we can do it. I am hopeful there faith are the truckers who get up every
all day long. There have to be reasonable will be some kind of tort reform in my day, punch the clock, gas up the truck
outcomes for claims.” lifetime.” and hit the road.
Not all countries deal with insur- Unless awards can be capped, it’s “They don’t do ticker tape parades
ance claims the same way the U.S. understood insurance rates can only for truckers or lineman or even teach-
does. In Kibbe’s considered opinion, the go up. Higher rates put those smaller ers. Shut down the trucks for even
United Kingdom is a model to emulate. trucking companies in a perilous posi- one day, and you will see the trouble.
“We can look across the pond and tion. Kibbe sees it as a threat to the Working for truckers in the way that I
see they got it right,” says Kibbe. “About industry as a whole. do is perfect for me.” ATR
ARKANSAS TRUCKING REPORT | Issue 5 2022 35
Paths They Paved
Examining the legacy of innovation and philanthropy
of one of Arkansas trucking industry’s founding fathers
By Bethany May
Managing Editor
On Emma Avenue in Springdale,
Ark. there’s a reclaimed plot of trucking
history.
The Jones Center, a community
recreation center, gets its name from
Harvey Jones, one of the state’s first and
most successful trucking entrepreneurs.
As the Arkansas Trucking
Association celebrates its 90th anniver- he sold them to buy his first truck. In tains dozens of news items announc-
sary, we look back to the early truckers those days, trucking was a means to get ing JTL building new terminals across
and the values they held that shaped the goods to the railroad stations, but when the Midwest and petitioning the
industry. the railroad workers went on strike in Interstate Commerce Commission for
On Nov. 26, 1932, Robert Black, 1920, Jones expanded his routes further more routes. Gerald Tweedy, Jones’ vice
owner of Black Transfer & Storage Co., north into Missouri. president, served for many years on the
incorporated the Shippers and Carriers Throughout the ’20s, he bought association’s board of directors and was
Association of Arkansas. But before more trucks and expanded to surround- involved in promoting the industry’s
there were a bunch of trucking com- ing states. In 1933, the company’s name success.
panies that needed an association to officially became Jones Truck Lines. When Jones sold JTL to Sun
support and promote their efforts, there Throughout the Great Depression, the Carriers in 1980, the annual revenue
was a railroad strike. business continued to grow and serve was $80 million, or more than $290
You may know the highlights of the communities from Springdale to million in 2022.
Jones’ story. You’ve heard something Joplin, Topeka and Pine Bluff. In the
about two mules, his signature overalls ’40s, JTL drivers were moving as far OVERFLOWING CUP
and the moniker, “largest privatized north as St. Louis and as far east as Trucking in the state can be traced
trucking company in the U.S,” but even Memphis. When the U.S. entered World back to the enterprising Harvey Jones
a brief history reveals that the man, his War II, JTL served the country by deliv- and his vision to keep freight moving
company and his values were something ering supplies. even when the rail stopped and before
special that the industry is still building Jones had built a company that well-paved paths connected customers.
on today. weathered some of America’s most But Jones also set the example for
severe economic uncertainty. JTL was philanthropy in the Arkansas trucking
60 YEARS A PIONEER acquiring other trucking companies industry. Jones Truck Lines was the evi-
Harvey Jones, a teenage mercantile and incorporated in 1949, becoming the dence that trucking could produce seri-
owner from Springdale, began mov- largest privatized trucking operation in ous wealth—an overflowing cup—and
ing groceries and hardware around the country. Harvey Jones alongside his wife Bernice
Northwest Arkansas with two mules The association’s magazine showed how to pour that wealth back
and a wagon in 1918. Within a year, throughout the ’50s, ’60s and ’70s con- into the community.
36 Issue 5 2022 | ARKANSAS TRUCKING REPORT
Bernice Young graduated from high
school in 1924 and began studying at
the University of Arkansas to become a
teacher. She met Harvey Jones when she “EVEN THOUGH IT MAY SEEM LIKE JUST A BUILDING
would ride from Springdale for classes. (ALBEIT A LARGE ONE), THE JONES CENTER IS AN
The couple invested in the education of EVOLVING ENTITY, CONTINUOUSLY GROWING AND
the community early.
When a local school was in danger CHANGING OVER THE YEARS. WHETHER RECESSION
of closing during the Great Depression, OR A PANDEMIC, THE JONES CENTER CONTINUES
they rented a building, hired a teacher TO ADAPT TO MEET THE NEEDS OF NORTHWEST
and paid for supplies out of their own ARKANSAS AND BEYOND.”
pockets to keep students learning dur-
ing a difficult time.
In 1957, The Harvey and Bernice —HUNTER ROGERS, THE JONES CENTER COMMUNITY OUTREACH
Jones Foundation was established and AND EVENTS MANAGER
awarded their first scholarship to high
school graduates pursuing an education.
Harvey continued to serve on the and organizes community events like Rogers said, “Even though it may
school board for decades, and their Cinco de Mayo, Marshallese May Day seem like just a building (albeit a large
foundation donated thousands to Celebration and ArkanSalsa to host one), the Jones Center is an evolv-
Arkansas educational institutions. his Springdale neighbors on the same ing entity, continuously growing and
Today, one of the high schools in grounds that he came with his class- changing over the years. Whether
Springdale still bears their name Har- mates and family. recession or a pandemic, the Jones
Ber High—a portmanteau of Harvey “The best part of what I do, and the Center continues to adapt to meet
and Bernice—and one of the elemen- primary reason I have stayed with the the needs of Northwest Arkansas and
tary schools is named Bernice Young Jones Center for 15 years, is the people. beyond.”
Elementary. I love interacting with and serving the
The couple married in 1938 and myriad of people that visit our facili- COMING BACK TOGETHER
invested in the children of Springdale ties,” Rogers said. It’s true that it’s not just a building
as if they were their own. In 1995, Trucking’s philanthropic families or piece of property, but the physical
Bernice bought the old Jones Truck Line now include some of Jones’ predecessors. space is impressive.
headquarters to continue her family’s Thirty years after The Harvey and When you walk through the glass
legacy of using the money that truck- Bernice Jones Foundation was estab- double doors, a statue of Harvey and
ing earned to serve the community. On lished, in 1987, Sam and Helen Walton Bernice greet you first, and just as
the site where her husband had gone to put their own retail- and trucking- Bernice envisioned, all kinds of people
work every day, she opened The Jones earned dollars into the Walton Family are working, playing, practicing, learn-
Center. It was her goal that the cen- Foundation, one of the largest chari- ing and worshiping here.
ter have recreational and educational table foundations in the country. Inside is the congregation that rents
opportunities for kids and families Johnnie Bryan and Johnelle Hunt’s the chapel for Sunday service, the ath-
and that it be accessible to everyone. family have similarly contributed mil- letes who train in the gym or on the ice
Scholarships were guaranteed for those lions to causes and institutions around rink, the families who play in the pool
who would otherwise be excluded. She Arkansas and the U.S. Don Tyson’s fam- downstairs, the kids who are exploring
wanted people to come. ily has also put poultry and trucking the current hands-on exhibit, and once
And they did come. Hunter Rogers, wealth back in the community. a year, another group—the men and
the community outreach and events These families and their founda- women of Jones Truck Lines.
manager at The Jones Center, has been tions have donated to The Jones Center, JTL drivers, technicians, dock
walking through the doors that Bernice and leaders from Tyson Foods, J.B. Hunt workers and administrators gather in
reopened since he was 17. Transport and Walmart all serve on one of the meeting rooms. They bless
Rogers started attending the Jones the board of directors alongside other a meal of fried chicken and red velvet
Center for school field trips to ice regional business executives and com- cake then reminisce about the years
skate. Then, he started tagging along munity volunteers, according to Terri they spent here.
with his dad, who would swim while Trotter, CEO of The Jones Center. Jim Canup sits at a table alongside
Rogers worked out in the fitness room. The board oversees what happens to a couple of other regional drivers and
Today, he works with over 90 nonprofits this historical property.
ARKANSAS TRUCKING REPORT | Issue 5 2022 37
THE TRUCKS, TRAILERS, PARTS AND SERVICE TO KEEP YOU
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remembers why he drove a truck in the door-to-door to their house, whether
first place. “It was the best job around, it was for selling Girl Scout cookies or
and it was the best paying job around,” asking questions. It was your quintes-
Canup says. sential small town neighborly environ-
The years spent working at JTL were ment, and they were such a big part
prosperous for these drivers. Canup says that they were always out in the streets.
that he still meets up with some of the I've literally heard people talk about,
other regional drivers once a month for ‘Yeah, Mr. Jones is walking down the
breakfast to catch up and maintain the street,’” Trotter says. “I think that's
friendships that started at work. emblematic of how they thought about
A table of shop and dock workers the community—it was their communi-
recall how close their whole families ty. They lived there. They worked there.
became when they worked together. They built their business there; they left
Before a night on-call, the families their legacy.”
would gather at one another’s homes to Trotter joined the center six
play cards and hang out until the first months ago. She worked at the Walmart
call came in. They agree the company Center in Fayetteville and had the
was like a family for them. opportunity to run another cultural
When they needed a job, a friend, center about eight years ago. Returning
a loan, a laugh, they found it at JTL. It’s to northwest Arkansas to run The Jones
why they still come together for a com- Center is special to Trotter because it’s
pany picnic 30 years after the company “place-based.”
closed. It feels like a class reunion. She says Springdale is culturally “IT WAS THE BEST JOB
The fingerprints of Jones and the diverse and has a history of innova-
JTL staff are still here. In the basement, tion. The programming of the center AROUND, AND IT WAS
next to the gym and pool entrance, you and plans for further development will THE BEST PAYING JOB
can still find the old freight scale, and highlight those strengths. The exhibits AROUND.”
lining the pavement outside are bricks for students are designed to encour-
with the names of the men and women age problem-solving and innovative
who worked for Harvey and Bernice. thinking especially as it relates to the —JIM CANUP, JONES TRUCK
The trucks aren’t parked on-site, but the future of mobility. “Getting things LINE FORMER REGIONAL TRUCK
history is. from place to place is a really important DRIVER
and resonant idea here in Springdale,
FORWARD THINKING AND where so much innovation has hap-
FUTURE MOBILITY pened throughout the last century in
It’s not a museum though. Terri our state. legacy and how we are trying to con-
Trotter, CEO of The Jones Center, says “It's been a big focus for the gover- tinue to build and evolve that legacy. I
the preservation of the documents and nor and so we're looking at the poten- bring that up,” Trotter says, “because I
Jones’ collections is happening at the tial of continuing to build out programs think it speaks to how forward think-
University of Arkansas. “This was such and facilities around that.” ing they were as entrepreneurs in their
a life project for Mr. Jones, but espe- Trotter notes that progress and time. Nearly 30 years ago now, it was a
cially for Mrs. Jones in her later years to pioneering aren’t just in the equipment very different society. She was thinking
really want to give back to the commu- or technology. Innovative values have about this idea of inclusion and bring-
nity. So much of what we have is just really driven the mission of The Jones ing people together back in a time when
in honor of them and their service. We Center and its founders. that was hardly a thing.”
also carry on the legacy, if you will, of “I have talked about innovation There are more plans for the prop-
service to the community,” she says. and forward thinking. You might have erty and downtown Springdale area to
Besides attending a summer camp, noticed when you walk in on our doors, be rebuilt on the Jones values. They’ve
seeing a performance in the auditorium there's a little quote and you can see both been gone for a long time now,
or playing in the rec spaces, visitors can it around the building, too, ‘the place but trucking is still following the path
walk where the Jones family walked and for all.’ That is actually from Mrs. they paved of moving freight through
embrace the city that they loved. Jones herself. When The Jones Center challenging situations and supporting
“Mr. and Mrs. Jones lived right was built, she said, ‘I want this to be the people in our communities and the
downtown. People remember going a place for everybody.’ That's been her places that shaped us. ATR
ARKANSAS TRUCKING REPORT | Issue 5 2022 39
Deduction Instruction
Preparing for year-end with tax experts from Bell & Company
Richard Bell, JD, CPA
Jeff Lovelady, CPA
Guest writers
Editor’s note: Arkansas Trucking Report
invited guest writers Richard Bell and
Jeff Lovelady to prepare our readers for
year-end. Here is their overview of the tax
changes that have come out of the state
Legislature and the federal issues to keep
in mind.
FRESH TAX NEWS AND
DEDUCTIONS
The new Arkansas Entity Pass
Through ACT 362 is in its initial year of
existence, and your company may qual-
ify for significant tax savings. Review
your eligibility to pay income tax at the
entity level if taxed as a partnership, lim-
ited liability company or s corporation. PLEASE CONSIDER WRITING A PERSONAL NOTE
Forms are available on the TO SHANNON NEWTON AND EACH ARKANSAS
Arkansas Department of Finance and LEGISLATIVE MEMBER, NOTABLY SEN. JONATHAN
Administration website. Also avail- DISMANG (R-28TH) AND REP. JOE JETT (R-56TH), AS
able is the new entity tax form with
instructions and FAQs. The DFA legal WELL AS, GOVERNOR ASA HUTCHINSON TO THANK
department recently issued proposed THEM FOR SUPPORTING, PASSING AND SIGNING INTO
regulations outlining the entity statute LAW THE INCREASE IN THE STATE TAX DEDUCTION
passed in the last legislative session. You
should consider registering your entity FOR SECTION 179 DEPRECIATION …
now and pay in the entity estimated
tax prior to year-end if you are a cash
basis taxpayer for income tax report- be about 37% of the state amount paid them for supporting, passing and sign-
ing. The estimated tax paid in will be in, so the savings is substantial. ing into law the increase in the state
deducted by your CPA on your entity’s Also, please consider writing a tax deduction for section 179 deprecia-
federal income tax return as a business personal note to Shannon Newton and tion on your state income tax return,
type expense. The rate of tax paid in each Arkansas legislative member, nota- whether it be individual, partnership,
is the same as the individual tax rate bly Sen. Jonathan Dismang (R-28th) s or c corporation. The depreciation
of 4.9%. Thanks to the Arkansas State and Rep. Joe Jett (R-56th), as well as, deduction for new or used equipment
Legislature, the federal tax benefit will Governor Asa Hutchinson to thank purchased in the 2022 tax year (1245)
40 Issue 5 2022 | ARKANSAS TRUCKING REPORT
property was raised from $25,000 to the
current federal limit of $1,080,000. The
threshold for total purchases was also
raised from $200,000 to $2.7 million.
For every dollar spent over $2.7 million, “THANKS TO THE ARKANSAS STATE LEGISLATURE,
the section 179 depreciation deduction THE FEDERAL TAX BENEFIT WILL BE ABOUT 37% OF
is reduced by a dollar. The savings on
your state return could be $50,000 plus THE STATE AMOUNT PAID IN, SO THE SAVINGS IS
annually, almost enough to purchase a SUBSTANTIAL.”
new dry van trailer.
Since this was passed mid-year
2022, you may need to incorporate the
Section 179 deduction into reducing
what you pay in for the fourth quar- In other tax updates, on Sept. 26, being discussed behind the scenes in
ter income tax estimate for the state. the IRS announced the per diem rates Washington that can have a major
Further, if you are a pass-through entity for 2022–23 for transportation profes- impact on taxation and affect your bot-
and have elected the new ACT 362 sionals will remain at $69 per day for tom line. Because the squeaky wheel
entity tax bill, you need to remember to those traveling inside the U.S. and $74 gets the grease, ask your legislator about
pay in all entity income tax estimates per day for those traveling outside the these issues and what they are doing to
by December to deduct on your federal continental U.S., like drivers crossing help you preserve your dollars.
return in 2022. the Mexican or Canadian borders. For instance, Section 199 allows
The transportation industry has for a 20% reduction in your federal
been on speed dial with multiple tax FUTURE-PROOFING YOUR TAX taxable income for pass-through enti-
credit companies who have advised SITUATION ties, such as partnerships, LLCs and s
trucking companies to file for the You should meet with your pro- corporations. This statute was passed to
Employee Retention Credit. I am not fessional group of wealth advisors for equalize the 21% tax rate paid by c cor-
going into the merits of eligibility, I will tax planning. There is nothing more porations. In effect, it lowered the rate
leave that aspect up to your CPA, and straining on a family after you are gone of federal tax on K-1 type income from
hopefully you have retained a knowl- than having to deal with these types of 37% to 30%. There are white papers
edgeable legal firm to support your issues without a plan already in place. published out of Washington, D.C.,
application for the credit with a well- In that planning meeting, prioritize ask- that would eliminate this deduction.
written legal opinion. My tax tip applies ing what happens when the estate tax You should reach out to your legislators
to the state of Arkansas and whether exemption amount drops back from $12 and the Arkansas Trucking Association
the credit is taxable to Arkansas since it million to $6 million or so in 2025 on a Political Action Committee to further
reduces the wages paid by the amount per person basis. review this possible change.
of the credit, the answer is … NO. We would venture to guess that Another white paper change and
It is not taxable to Arkansas per most trucking owner’s net worth is tied legislation that failed to pass this sum-
the DFA legal counsel who recently up in their company, which may not mer in Washington (thanks to the West
presented at the Arkansas Trucking be easily liquidated. Should the estate Virginia and Arizona senators) would
Association’s Accounting & Finance exceed the $6 million value following have increased the so-called Obama Tax
Council meeting in Little Rock. I the death of its owner, where would the on all K-1 income from pass through
noticed some surprised looks on CFOs’ 40% estate tax come from on the excess entities by 3.8%. This would have raised
faces that day during the discussion. over the $6 million value? Yes, there the individual tax rate on K-1 income
Arkansas does not automatically fol- are a lot of what-ifs, but asking your to the highest rate of 40.8% compared
low the federal statute on taxation. The attorney this basic question will start to the highest c corporation tax rate of
Employee Retention Credit is federally the wheels of estate planning in motion 21%. In fairness, the legislation would
taxable. It is left up to our legislature to and will hopefully save you estate tax have raised the c corporation tax rate to
adopt the federal rules. Our state legis- dollars. approximately 25%. But, note the dis-
lature has not done so on this matter. Do not neglect this conversation parity in rates, and note that most busi-
Referring back to the recent enactment and assume that death will not happen. nesses, trucking included, do business
of the change in Section 179 deduction, Also, add the event of disability to the as a pass-through entity, whether as an
Arkansas has now decided to follow the discussion as well. s corporation, LLC or partnership.
federal rule which has been in existence Our final tax tips have to do with We wish you much continued suc-
for many years. federal tax policy. There are policies cess in 2023. ATR
ARKANSAS TRUCKING REPORT | Issue 5 2022 41
$29 Million
U-Turns
Let the Arkansas Trucking Association’s Self Insurers’ Fund make a
U-turn with your money. Our members receive affordable insurance,
outstanding claims management and loss control support.
Unlike insurance companies, the ATA Self Insurers' Fund turns
your money around and delivers it back to you.
More than $29 million has been returned since 1993.
Call Katie Thomason at 501.372.3462
for more information.
Essential (Before It Was Cool)
Recap of the 2022 Arkansas Trucking Association Driver Appreciation Week
Arkansas Trucking Association partners with American Trucking Associations to
spread a driver appreciation message on billboards throughout the state
By ATR Staff
On Sept. 15, the Arkansas Trucking
Association celebrated the 3.36 million
professional truck drivers who carry
America’s freight by serving over 500
lunches, hot off the grill, at the TA
Petro Stopping Center, for the truck
drivers moving along I-40, where more
than 15,000 trucks travel east of North
Little Rock each day. t Kelcie Sonnier (ATA) with
Rikki Martin and Jakea Mercer
The tradition of nationally and (Rich Insurance Services)
publicly saying thanks and engaging in
acts of gratitude for truck drivers is over
20 years old. Trucking employs over 7.65
million people, including one in 10 in
Arkansas, and inside the industry, work-
ers understand the role of drivers makes
everything else possible. Sharing that
message with the public has become
more important.
“Perhaps more than ever, we are all
aware of how every link in the supply
chain affects our economy, our busi- Billy Stark at the grill (Tyson Foods)
nesses and our way of life. But before
and after, in prosperous times, and in
moments of need, truck drivers are Cathy McCamey and Lisa Reading
always there to deliver,” said Shannon (McKee Foods Transportation)
Newton, Arkansas Trucking Association t Kimberly
president. “Tested by supply and work- Hagood (BNSF
force shortages, truck drivers have Logistics)
continued to show up, work hard and
deliver goods to Arkansans.
“National Truck Driver
Appreciation week is a time to rally
around our professional truck drivers
and show them the thanks they deserve
t Drivers beat the heat at a sno cone stand
ARKANSAS TRUCKING REPORT | Issue 5 2022 43
t Maddie Barr and Fred Meek
for connecting all of us with everything (JM Bozeman Enterprises)
we need.”
Companies around the state and
country recognized truck drivers for
their significant contributions to our Evelyn Landrith (Arvest Bank)
communities throughout the week. takes a test drive on the Share
Governor Asa Hutchinson officially the Road simulator with Arkansas
declared Sept. 11–17, 2022, Truck Driver Road Team Captain Donnie Pace
Appreciation Week in Arkansas. (ABF Freight)
“In the face of supply chain disrup-
tions and equipment and workforce
shortages, truck drivers continue to
deliver around the clock,” Hutchinson
said in the proclamation.
The association also launched a
billboard campaign around the state
throughout September to remind the
motoring public that truck drivers have
always been essential to our way of life, Clay Yang (McKee Foods
Transportation) packs
“essential before it was cool.” lunches
ATA would like to extend its appre-
ciation to the following companies
which made the event possible and our
gratitude evident to the drivers who
attended:
ABF FREIGHT
AMERICAN TRUCKING ASSOCIATIONS
AON
ARVEST BANK
BEN E. KEITH FOODS
BNSF LOGISTICS
C.C. JONES, INC.
CUMMINS SALES AND SERVICE
D.W. STORY & ASSOCIATES, INC.
GREAT WEST CASUALTY COMPANY
J.B. HUNT TRANSPORT
JM BOZEMAN ENTERPRISES, INC. ATA staff and volunteers
LOGGINS LOGISTICS, INC. prepare lunches and goody
MAVERICK TRANSPORTATION bags for 500 drivers
MCKEE FOODS TRANSPORTATION
OZARKO TIRE CENTER
PC PROMOTIONS
PREPASS
RICH INSURANCE SERVICES
RUSH TRUCK CENTERS
TA PETRO
TYSON FOODS, INC.
SPONSORED BY
44 Issue 5 2022 | ARKANSAS TRUCKING REPORT
Untitled-3 1 3/24/22 1:45 PM
Brittany Ward (Loggins Logistics)
Kelly Crow, Bethany May (ATA), Mike Alvey
(Tyson Foods), Sarah Newman (ATA), Billy Stark
(Tyson Foods), Katie Thomason (ATA), Dustin
McKibbin (Tyson Foods), Kelcie Sonnier (ATA) and
Chaplain Dave (Tyson Foods)
Volunteer huddle with Milissa Vowell (Great West Casualty Company),
Bailey Vickery (Rich Insurance Services), Mark Fleming (TA Petro) and
Shannon Newton (ATA)
Felicia Blythe and Heather Glover
(Maverick Transportation) t Kelcie Sonnier (ATA)
ATA Chairman Jeff Loggins (Loggins
Logistics) gets a lesson in driver
Jakea Mercer (Rich Insurance Services) appreciation from Arkansas Road Team
serves lunches cab-side Captain Dave Hall (ABF Freight)
ARKANSAS TRUCKING REPORT | Issue 5 2022 45
On the Safe Side
Recap of the 2022 ATA Safety Symposium
By ATR Staff
Arkansas Trucking Association held
its sixth annual safety symposium in
Little Rock, on Sept. 22–23. This year's
two-day curriculum included a full day
of training on the Mongoose Method
and three additional sessions on safety
regulations, coaching and retention
policies, and security measures. The
event drew 50 attendees, represent-
ing 37 companies to the Statehouse Mike Brust (ATA) addresses
attendees.
Convention Center.
Thursday morning began with
Arkansas Trucking Association’s
Director of Loss Prevention and Safety
Services Mike Brust. He spoke of his
experiences travelling the state and
conducting free DOT and OSHA
mock audits for carriers. During those
visits, he collected information on the
back-office issues carriers face when
managing electronic logging devices for
their fleets. Brust answered questions Dean Newell (Maverick panel, A Teachable Moment, on alter-
about the most common issues and Transportation LLC) natives to termination. Panelists Joey
considerations for selecting the best Berkemeyer of Wayne Smith Trucking,
ELD provider. lunch hour and enjoyed a new net- Rodney Myers of FedEx Freight and Dean
Then Dr. Steve Wood, a social working opportunity this year at the Newell of Maverick Transportation trad-
psychologist with Courtroom Sciences, Marriott Hotel Lobby Bar, hosted by ed best practices and stories of how to
Inc., walked attendees through some Drivers Legal Plan. retain and retrain drivers when accidents
real-world depositions gone wrong via Friday’s sessions included an update occur and when to view accidents as an
the reptile theory. Dr. Wood explained from the Federal Motor Carrier Safety opportunity for growth.
the juror decision-making process, how Administration. Gary Grigg, Arkansas’ In the final symposium session,
plaintiff attorneys can manipulate that state program specialist for FMCSA, CEVA Logistics’ Mark Landry, 25-year
process, and what individuals can do to presented the most up-to-date grants, veteran of the security industry, exam-
stay calm during depositions, answer declarations, proposed and final rules ined the costs and causes of cargo theft.
honestly and maximize the likeli- coming out of the Department of In his presentation, he shared how to
hood of favorable case outcomes. Transportation. stay alert for threats from organized
Attendees made friends and Then Wright Lindsey Jennings’
explored downtown Little Rock for Stuart Jackson moderated a carrier
46 Issue 5 2022 | ARKANSAS TRUCKING REPORT
t Moderator Stuart Jackson (Wright,
Lindsey & Jennings LLP) oversees
the panel Dean Newell (Maverick
Transportation LLC), Joey Berkemeyer
(Wayne Smith Trucking, Inc.) and Rodney
Myers (FedEx Freight) on labor supply.
Baxter Mays (USA Truck), David
O’Neal (Yellow), Shannon Newton (ATA),
Katie Thomason (ATA), and Darren
Plumlee (FedEx Freight)
Mark Landry (CEVA Logistics) presents
on new technology and insights regarding
industry security.
Dr. Steve Wood (Courtroom
Sciences, Inc.) presents on the
Mongoose Method.
Mark Spears (JM
Bozeman Enterprises) and
Donna Dunn (EOS, Inc.)
Clay Sanders (Cottingham & Butler)
and Holly Pate (Woodfield, Inc.) t Katie Thomason (ATA)
recognizes sponsors
Brent King
(Distribution
Solutions, Inc.)
and Scott Stewart
(DriveLink Services)
Darren Plumlee (FedEx Freight) and David
O’Neal (Yellow)
ARKANSAS TRUCKING REPORT | Issue 5 2022 47
criminals and how to keep cargo and
assets safe and secure through technol- t Marilyn Surber (Tenstreet),
ogy like GPS tracking, recording devices, Brad Klepper (Drivers Legal Plan)
integrated security and even the prom- and Katie Thomason (ATA)
ise of drone monitoring in the future.
This year’s event was made possible
by five sponsors who are dedicated to
trucking safely on American highways. ATR
SPONSORED BY
Bruce Stewart (Twin City
Transportation, Inc.) and Brent
King (Distribution Solutions, Inc.)
Baxter Mays and Alicia Black
(USA Truck)
Joey Berkemeyer (Wayne Smith
Trucking, Inc.) and Rodney Myers (FedEx
Freight) Tanya Rogers (USA Truck), Holly Pate
(Woodfield, Inc.), Sarah Newman (ATA)
and Alicia Black (USA Truck)
t Blake Lund (AngelTrax)
delivers his presentation
Kelly Frey (PrePass),
Dan Crowder (Resonea'
DROWZLE Sleep Health)
and Dr. Steve Wood
(Courtroom Sciences, Inc.)
t Donna Dunn (EOS, Inc.),
Gary Grigg (FMCSA) and
Bruce Stewart (Twin City
Transportation, Inc.)
48 Issue 5 2022 | ARKANSAS TRUCKING REPORT
Values Drive Performance
Shared Values Can Lead to Organizational Excellence
We understand you are in business to make a profit. Our Value-Driven
®
Company modules can help you reduce losses and increase profits by focusing on
influencing employee behavior, changing culture, improving communication, and
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800.228.8602 We believe it is everyone’s job to do what they can to prevent losses. We have
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We see “Critical Crashes” as a risk to your company. Our Value-Driven Driving
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Insider Trucking
A look at the latest products, services and news from ATR advertisers
CUSTARD INSURANCE
ADJUSTERS
Custard Insurance Adjusters, Inc. is
excited to celebrate 60 years of service
to the trucking industry in 2022. A.R.
“Rick” Custard founded the company
in 1962 with a focus on immediate
response to trucking losses. Now, with
over 250+ adjuster locations, CIA has
grown into the premier transportation
loss adjusting company.
“This anniversary is special not intake and immediate adjuster dispatch reliability and on-time performance, as
only for our current team but also procedures. well as giving back to the communities
all former CIA employees. Even while where they live and work.
growing into the national organiza- ABOUT FEDEX FREIGHT
tion we are today, we strive to maintain FedEx Freight, a subsidiary of ONLINE CREDIT APPLICATION
the feel of the family business that Mr. FedEx Corp. (NYSE: FDX), is a lead- NOW AVAILABLE
Custard started 60 years ago,” states ing provider of priority, premium, and
R.W. Custard. economy less-than-truckload (LTL)
CIA’s longstanding history and freight services, simplifying heavy and
experience allows us to provide rapid bulk shipping in the U.S., Canada,
response and detailed loss investigation Mexico, Puerto Rico and the U.S. Virgin To make it easier and more secure
that exceed expectations. Through our Islands. Headquartered in Memphis, for our customers to apply for credit,
nationwide network of adjuster coverage Tenn., FedEx Freight is at the forefront MHC is now offering an online credit
areas, our clients can rest assured we of innovation, offering customers application.
can assist no matter the time or place. total convenience and efficiency. With You can apply for a credit account
In the event of an accident, our expanded service offerings like FedEx with every department within MHC
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nected with our experienced staff delivered to and through the door for MHC Carrier Transicold and MHC
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Custard team members trained in loss experience through exceptional service, multiple credit lines at one time. For
50 Issue 5 2022 | ARKANSAS TRUCKING REPORT
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