Award-Winning Regional Magazine of the Arkansas Trucking Association Vol. 19 • Issue 1 2014 • $4.95
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Mastering All Regulations
CSA UpdAte • HigHwAy FUnding • AFFordAble CAre ACt
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Volume 19, Number 1 • issue 1 2014
FeAtUreS
COVER STORY
Miss Know-it-all 24
Malea Hare’s mission to master all regulations
By Eric Francis
CapiTOl WaTCh
sacrificing safety for scores? 21
Inspection deficit prevents CSA scoring,
deters new business
By Steve Brawner
cruMbling roads and eMpty pocKets 32
Highway Trust Fund to reach critical mass in 2014
By Scott Travis
TRaDE SECRETS
no cash bacK 37
Tax law changes reduce short-term depreciation
By Steve Brawner
drivers lag in obaMacare enrollMent 39
Federal health care deadlines loom,
violators subject to fines
By Jennifer Barnett Reed
depArtMentS
Up Front: by Gary Salisbury 7
They Said It 9
News in Brief 11
Calendar of Events 18
Insider Trucking 42
Stat View 44
Advertiser Resource Index 45
The Last Word: by Tom Ricciardone 46
COVER IMAGE AND IMAGES THIS PAGE OF MAlEA HARE BY JOHN DAVID PITTMAN.
arKansas trucKing report | issue 1 2014 5
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Page 1 of 1
Up froNT
Award-Winning Regional Journal of the Arkansas Trucking Association
Arkansas Trucking Report is owned by the arkansas trucking
association, inc. and is published bimonthly by Matthews publishing
group. for additional copies, to order reprints of individual articles
or to become a subscriber to ATR, contact Katie thomason at
501.372.3462. aS THe SeaSoNS CHaNge…
publisher
JENNIFER mATThEWS kIdd The sun is lingering just a little longer in the western skies as winter desperately tries
matthews Publishing Group, [email protected]
to hold on. If you were unfortunate enough to have been on I-30 between Malvern
contributing writers
STEVE BRAWNER JOhN SChULz and Arkadelphia a few weeks ago, you would certainly realize Old Man Winter isn’t
[email protected] [email protected]
ERIC FRANCIS SPENCER WATSON going down without a fight. But sometime—perhaps not as soon as we would like—
[email protected] [email protected]
JENNIFER BARNETT REEd SCOTT TRAVIS spring will come and bring with it changes in the weather, regulations and even
[email protected] [email protected]
leadership.
art director
JON d. kENNEdy
The Freelance Co. LLC, [email protected]
production editor Like the long wait for roads to be clear of snow and ice, the trucking industry is
ShANNON NEWTON
ad production tapping its foot, urging the government to resolve issues with hours-of-service
dEAh ChISENhALL, mARIA TEETER-WALkER, dUSTy TOWNSENd
illustrator regulations and to implement a drug and alcohol clearinghouse.
BRENT BENNETT
[email protected]
photographers
JON d. kENNEdy, BOB OCkEN, JOhN dAVId PITTmAN I recently had the privilege of attending a listening session with FMCSA Administrator
Anne Ferro concerning the 34-hour restart and the 30-minute required breaks in the
final hours-of-service rules. I greatly appreciate Administrator Ferro for her patience
and willingness to discuss the ups and downs of trucking. She truly did listen and I
want to personally thank her for taking the time to sit down with the ATA Board of
Directors, giving us the opportunity to voice our concerns.
www.arkansastrucking.com
While we had her attention, we took the opportunity to discuss other important
vice president
ShANNON SAmPLES NEWTON
[email protected] issues like the drug and alcohol clearinghouse. Arkansas’ legislators were
director of operations
SARAh NEWmAN ShEETS instrumental in getting this bill introduced in Congress, so we will continue to
[email protected]
executive assistant closely monitor the progress until it is fully implemented.
kATIE ThOmASON
[email protected]
special projects assistant
TAmARA ROBINSON Additionally, we touched on the newly proposed legislation from Sen. Mark Pryor
[email protected]
ChAIRmAN OF ThE BOARd (D-Ark.) and Rep. Rick Crawford (R-Ark.) that would recognize hair testing as an
GARy SALISBURy
Fikes Truck Line
Chairman & CEO optional method to comply with the Department of Transportation drug testing
BOARd OF dIRECTORS
requirements for truck drivers. Hair testing, although more expensive than urinalysis,
mARR LyNN BEARdEN dR. JOhN OzmENT
marrlin Transit, Inc. U of A/Walton College of Business is a better indicator of career drug abusers since it has a 90-day detection period as
President Chair of Transportation
ALLEN BERRy PAT REEd opposed to the 2-week window urinalysis offers.
Central States manufacturing, Inc. FedEx Freight
Transportation director Executive Vice President & COO
GREG CARmAN G.E. “BUTCh” RICE III
Carman, Inc. Stallion Transportation Group
President President & CEO And finally, I will sign off with a send-off to Lane Kidd, a friend to the industry and
dAN CUShmAN TRACy ROSSER
P.A.m. Transportation Services, Inc. Walmart Transportation leader of this association for more than two decades. After serving as president of the
President & CEO Senior Vice President
CRAIG hARPER ROy SLAGLE
J.B. hunt Transport, Inc. ABF Freight System, Inc. Arkansas Trucking Association for the past 22 years, Lane has decided to pursue a
Executive Vice President & COO President & CEO
AL hERINGER IV JEFF SmITh life-long dream of running his own company.
Star Transportation, Inc. Utility Tri-State, Inc.
Vice President President
BLUE kEENE WAyNE SmITh
Tyson Foods, Inc. Wayne Smith Trucking, Inc.
Transportation director President During Lane’s tenure, he has taken a relatively unknown group of truckers and
SCOTT mANChESTER VICkI JONES STEPhENS
Truck Centers of Arkansas C.C. Jones, Inc. propelled us to the front of the line. Today the ATA is known across the country as a
Vice President, Truck Sales President
mIkE mCNUTT STEVE WILLIAmS leader and an example for other associations. As chairman of the ATA, I speak for the
distribution Solutions, Inc. maverick USA
CEO, Owner Chairman & CEO
mARk mORRIS board of directors when I say that Lane will be missed and we wish him success in his
morris Transportation, Inc.
newest pursuits.
President
So we bid farewell to winter, to our wait for regulatory resolutions and, of course, to
an affiliate of the american trucking
associations Lane; and we welcome the spring and the opportunities it holds.
Arkansas Trucking Association (ATA) is an Arkansas corporation of trucking
companies, private carrier fleets and businesses which serve or supply the
trucking industry. ATA serves these companies as a governmental affairs Gary Salisbury
representative before legislative, regulatory and executive branches of
government on issues that affect the trucking industry. The organization also Chairman & CEO, Fikes Truck Line
provides public relations services, workers’ compensation insurance, operational
services and serves as a forum for industry meetings and membership relations. Chairman, Arkansas Trucking Association
For information, contact ATA at:
1401 West Capitol, Suite 185
Post Office Box 3476 (72203) Drivers Legal Plan
Little Rock, Arkansas 72201
Phone 501.372.3462 Fax 501.376.1810
www.arkansastrucking.com
Drivers Legal Plan
arKansas trucKing report | issue 1 2014 7
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“We can take the money we “We are
save from this transition to tax leveraging
reform to create jobs rebuilding
our roads, upgrading our technology
ports, unclogging our commutes to create
— because in today’s global a one-stop
economy, first-class jobs gravitate verification
to first-class infrastructure.” point to help
—during the State of the Union, president obama said he wants
to see natural gas become a primary fuel source and revenue companies
from potential tax reform used in infrastructure and highway hire drug
funding.
and alcohol-
“Just because CSA is free drivers.
an improvement over This proposal
previous programs moves us
does not make it a further
‘good’ program for down the
assessing the safety road toward
performance of improving
individual carriers.” safety.”
—The trucking industry, including American Trucking —FmCSA Administrator anne s. ferro announced a
Associations President and CEO bill graves, is dubious of proposed rule to establish a drug and alcohol clearinghouse
a recent FmCSA study which claims its Compliance, Safety, for all commercial drivers which would improve roadway
Accountability enforcement program is more effective at safety by making it easier to determine whether a driver
identifying trucking companies for targeted enforcement than has violated federal drug and alcohol regulations, including
the system it replaced.
mandatory testing.
“It is critically important... that there be sustainability, predictability and stability built
into our system, and I think that idea could have a destabilizing impact on transit.”
—transportation secretary anthony foxx, in a plea to Congress to produce a long-term transportation funding plan, said the crisis
is so severe that the highway Trust Fund may run out of money by August.
arKansas trucKing report | issue 1 2014 9
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NewS IN BrIef
aTa BIdS farewell To KIdd CoNflICTINg reporTS STUdy and chief of national advocacy.
After serving CSa aCCUraCy, faIrNeSS Following the release of the GAO
as president of the Days following the release of a findings, the FMCSA published a
Arkansas Trucking study conducted by the Government study that was conducted by the Volpe
Association (ATA) for Accountability Office (GAO) revealed Center, the research arm of the U.S.
22 years, Lane Kidd significant flaws in the Compliance, Transportation Department. Both were
announced in a joint Safety, Accountability (CSA) program, launched nationally in 2010 to identify
statement with ATA, the Federal Motor Carrier Safety and prioritize motor carriers that pose
plans to leave the organization to devote Administration (FMCSA) released its the highest threat to public safety for
his full energies to The Kidd Group, own study findings to the contrary. enforcement interventions.
LLC, a business investment and public The GAO report, “Modifying the Researchers analyzed the
affairs firm he created in 2013. Compliance, Safety, Accountability association between a carrier’s history
“I’ve wanted to pursue my own Program Would Improve the Ability to and its future crash involvement by
projects for some time now and there Identify High Risk Carriers,” supports taking two years of pre-SMS safety
are many opportunities out there, so many of the objections cited by the pro- data for a group of carriers, applying
this feels like a good time to say good- gram’s critics, including: Inconsistency their risk-indicator formula and then
bye to the ATA,” said Lane Kidd. “My between states’ inspection and enforce- following those companies’ crash
career as ATA president has been a phe- ment practices; Weak association of records for 18 months.
nomenal experience, and I’m handing Safety Measurement System (SMS) “Results show that…79 percent
the keys over with ATA looking much scores to crash risk; Indications that of the carriers that SMS would have
better than it did 22 years ago.” a minority of carriers in a single SMC ranked as high risk in at least one of
The Kidd Group will operate in group are responsible for all crashes in the seven safety categories it monitors,
Washington, D.C. and Arkansas provid- that group; among other concerns. had higher future crash rates compared
ing business services in the transporta- “SMS is intended to provide a safe- to those it would not have identified,”
tion industry. ty measure for individual carriers, and FMCSA said.
Gary Salisbury, chairman and CEO FMCSA has not demonstrated relation- The American Trucking
of Fikes Truck Line in Hope, Ark., and ships between groups of violations and Associations criticized the FMCSA for
ATA chairman, said Kidd put the ATA the risk that an individual motor carrier “issuing an overly rosy self-assessment”
on the map. “During Lane’s tenure, he will crash,” the GAO report stated. of CSA following the GAO report.
has taken a relatively unknown group Leaders at American Trucking ATA noted the FMCSA assessment
of truckers and propelled us to the front Associations (ATA) praised the GAO mirrored GAO’s findings with respect
of the line. The ATA is known across review as “comprehensive, thought- to the limited amount of data available
the country as a leader and an example ful and balanced,” and called on the on smaller carriers, and despite the fact
for other associations to strive for. As agency to make immediate changes to that fleets with five or fewer trucks
chairman of the ATA, I speak for the the program. represented 75 percent of the carriers
Board of Directors when I say that Lane “Since scores are so often unreli- in the study, the authors acknowledged
will be missed and we wish him success able, third parties are prone to making that there is very little available safety
as he starts his newest pursuits.” erroneous judgments based on inac- information on these carriers to “make
Salisbury said the ATA will curate data, an inequity that can only a meaningful safety assessment.”
announce plans to name a replacement be solved in the near term by removing
soon. the scores from public view,” says Dave
Osiecki, ATA executive vice president
arKansas trucKing report | issue 1 2014 11
News iN brief, “While the study includes some right to free speech.
Continued from page 10 findings favorable to certain portions U.S. District Judge Henry E. Autrey
of the new restart rule, the incomplete in St. Louis issued a preliminary injunc-
aNoTHer STUdy, More nature of the analysis and the lack of tion prohibiting the St. Louis County
SpeCUlaTIoN justification for the once-weekly use town of Ellisville from citing and pros-
A few days before the GAO and restriction is consistent with the flawed ecuting drivers who flash their lights to
FMCSA released conflicting reports analyses that led the agency to make warn of radar and speed traps.
on CSA, the FMCSA was met with these changes in the first place,” said “This has sweeping implications for
criticism for its findings following a Dave Osiecki, ATA executive vice presi- the First Amendment,” said Jonathan
study indicating the agency’s current dent and chief of national advocacy. Turley, a criminal attorney and a profes-
hours-of-service rule is more effective According to ATA, the study failed sor at George Washington University
at combating fatigue, a conclusion that to evaluate the safety implications of Law School. “What this citizen is doing
trucking groups and several members of putting more trucks on the road during is warning other citizens about the
violation of law. People regularly warn
others about the possibility of arrest.
There’s no difference between a verbal
warning and a mechanical warning.
Both are forms of speech.”
“It is important that law enforce-
ment officers in other jurisdictions take
note of this federal court decision and
the ACLU of Missouri's commitment to
free speech,” Jeffrey A. Mittman, execu-
tive director of the ACLU of Missouri,
said in a statement.
arKaNSaNS JoIN CoalITIoN To
BaCK KeySToNe Xl oIl pIpelINe
Five Democrats, including
Congress immediately disputed. daytime hours, when more passenger Sen. Mark Pryor (D-Ark.), joined
The final 2011 hours rule, which vehicles are also on the road. Republicans at a Capitol news confer-
became effective July 1, requires a driv- Rep. Tom Rice (R-S.C.), one of three ence in February to urge President
er’s restart to be at least 34 consecutive members of Congress who in October Obama to approve the Keystone XL
hours and include two periods between introduced legislation to delay the start Pipeline following a State Department
1 a.m. and 5 a.m. of the restart provision, said the study report that raised no major environ-
The study, conducted by the Sleep “does not offer an accurate representa- mental objections. The $7 billion pipe-
and Performance Research Center, tion of truck drivers’ alertness.” line would carry 830,000 barrels of
Washington State University and Pulsar “When implementing a regulation tar sands oil from Canada to Texas oil
Informatics Inc., looked at 106 commer- that would trim back millions of truck refineries.
cial drivers employed by three carriers drivers’ work hours, impact product The State Department delivered its
providing 1,260 days of data, driving a delivery time and affect emergency final environmental assessment saying
total of more than 414,000 miles from relief time in instances of national the plan would not have much impact
January to July 2013. disasters, I would have expected FMCSA on global greenhouse gas emissions.
FMCSA said the study concluded to have used a sample size of far greater The State Department is now accepting
that drivers who began their workweek than 106 truckers,” Rice said. public comment on the statement for
with just one nighttime period of rest 90 days. Pryor and the other lawmakers
exhibited more lapses of attention, CoUrT-approved flaSHINg want President Obama to approve the
reported greater sleepiness and showed It’s a common practice among plan soon after.
increased lane deviation, compared with drivers who pass through a speed trap: Congress is unlikely to take any
the two nights of rest in the updated Flash your headlights at approaching legislative action during the public com-
34-hour restart break. cars as a warning to slow down. Now, ment period but several options are
American Trucking Associations a federal court judge in Missouri says on the table for proponents should the
(ATA) said what the study doesn’t say penalizing drivers for the headlight
may be as significant as what it does say. flash violates their First Amendment
12 arKansas trucKing report | issue 1 2014
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AUTOMATEELERA
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News iN brief, fleeT faIlUreS INCreaSe
Continued from page 13 deSpITe HIgHer freIgHT
White House fail to act swiftly – includ- deMaNd
ing imposing a deadline on the presi- Despite improved freight demand,
dent to act. A similar effort led Obama ongoing cost and regulatory pressures
to reject the plan in January 2012, are to blame for the highest level of
saying he had not been given sufficient fleet failures in more than three years,
time to study the proposal. according to Avondale Partners analyst
The 485-mile southern half of Donald Broughton.
the pipeline, which did not need State A total of 335 fleets with 7,775
Department approval, is already open. trucks failed during the fourth quarter,
Meanwhile, steel pipe for northern sec- the highest since the third quarter of
tions is being stored at Welspun Tubular 2010 and more than double the 150
in Little Rock, Ark. 116.5 was 22.8 percent above the April carriers and 2,515 trucks in the final
2009 low during the most recent reces- quarter of 2012.
freIgHT INdeX rISeS To BeST sion and exceeds the previous high of “In the past, we haven’t had a
level oN reCord 115.4 in September 2013. Records go period where demand is growing and
The amount of freight carried by back to 2000. capacity is coming out of the industry at
the nation’s for-hire transportation “Growth in tonnage intensive meaningful levels,” Broughton said. “If
industry rose 1.2 percent in November industries such as heavy construction that continues, it could be very power-
from October, rebounding from a and oil and gas fracking produced an ful for pricing for truckload carriers.”
one-month decline to reach its highest increase in truck tonnage,” the DOT If demand and capacity trends con-
all-time level, according to a new U.S. said. Compared to the same month tinue, truckload pricing may rise later
Department of Transportation report. a year ago, November 2013 freight this year by “strong single digits,” he
The November 2013 Freight shipments were up 5.2 percent from said, suggesting 6 to 8 percent.
Transportation Services Index level of November 2012. That would be a sharp increase
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14 arKansas trucKing report | issue 1 2014
from the 1.8 percent pace shown for the Competitor Clean Energy Fuels is Holy Hog
past 12 months in his report. also slowing development of its net- It’s unknown whether Pope Francis
Broughton also emphasized a push work, reportedly altering plans to open ever rode the custom 2013 Dyna
toward continued pay increases. one station every week-and-a-half to Super Glide that was a gift from Willie
Wage increases in 2012 and 2013 one every two weeks. Davidson, a retired Harley-Davidson
“have brought wages back to more The reason? “To let the trucks catch designer and grandson of the company’s
competitive levels relative to other up on us,” said Blu LNG CEO Merritt co-founder. But an unidentified bidder
industries,” Broughton said. “Expect Norton, as development of the LNG agreed to pay $327,000 for the motor-
pay increases in 2014 to be more geared networks has outpaced sales of LNG- cycle at a Paris charity auction.
towards ‘gain sharing,’” the report said, powered trucks. The Bonhams auction house said
referring to “bonus pay related to fuel the telephone buyer agreed to pay far
economy, utilization, safety and service.”
yellow lIgHT for greeN gaS
Blu LNG and Clean Energy, two
of the largest developers of natural
gas fueling stations, have cut back on
expansion efforts.
Blu LNG has laid off 20 percent of
its staff, ousted several senior executives
and slowed development of fueling sta-
tions. The company has a network of
about 25 locations, with plans to grow to
40 to 50 by the end of the year, far less
than it originally planned. It has cut its
number of employees by 40 to 170.
arKansas trucKing report | issue 1 2014 15
continued. “The website significantly
upgrades our web-based and, going for-
ward, our real-time social media based
communications. We’ve received input
from communications professionals to
help guide our decisions and to help us
sift through a broader array of commu-
nications issues. With their guidance,
this website is intended to serve as a
catalyst. Ongoing feedback from our
membership will help us to fine-tune
how we present the face of the Arkansas
Trucking Association membership and
our industry going forward.”
Visit ArkansasTrucking.com and tell
us what you think of the new websites.
We always appreciate and value your
feedback.
drUg aNd alCoHol
ClearINgHoUSe eNaCTed By
fMCSa
Required under MAP-21, last year’s
News iN brief, that is responsive to the needs of a wide highway reauthorization bill, the Federal
range of audiences, from association
Motor Carrier Safety Administration
Continued from page 15 members, to the press, the general pub- (FMCSA) announced on February 12
more than the expected pre-sale price of lic, the statewide and national political a proposed rule to establish a drug and
$16,000 at the auction at Paris’ Grand universe and other stakeholders. alcohol clearinghouse for all national
Palais. “This website will better represent commercial driver’s license (CDL) hold-
the true size, scope and reach of our ers.
arKaNSaS TrUCKINg industry and our members’ interests in The Commercial Driver’s License
aSSoCIaTIoN UNveIlS New Arkansas and beyond,” said Kidd. Drug and Alcohol Clearinghouse, as it’s
weBSITe In addition to new content, fea- known, would help improve roadway
The Arkansas Trucking Association tures include a real time Twitter and safety by requiring carriers to report to
(ATA) has created a new and improved Facebook feed, integrated
website that former ATA President Lane calendar feature, new
Kidd says is a “dynamic, centralized member portal, current
communications hub geared to the industry news, as well as
needs of our association members and easy access to featured
other important audiences in today’s content and current issues
information intensive, 24/7 world.” of the Arkansas Trucking
ArkansasTrucking.com now has a Report. Video is featured
much more engaging user experience. more prominently. Two
The overall design and content features new videos available on
of the website have been updated to the website serve as engag-
better reflect ATA’s standing as a recog- ing and compelling intro-
nized industry leader. The entire website ductions that speak to the
is designed to portray the far-reaching, vital role the ATA mem-
positive impact the industry has in the bership plays in our state
lives of families and communities, and and national economy.
in our state and national economy. “This website better
The website is designed to serve as focuses on who we are
a meaningful, timely and flexible infor- as an extension of who
mation and communication resource we represent – our membership,” Kidd
16 arKansas trucKing report | issue 1 2014
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CALENDAR News iN brief, employees and their dependents.
Continued from page 16
IMWell Health of Fort Smith
OF EVENTS will manage the clinic, which will
FMCSA failed drug tests and test refus- offer yearly physicals and provide treat-
als, along with requiring them to query ment for routine illnesses and chronic
March the clearinghouse when making new diseases.
hires and once annually for current “We believe this is a major step
mARCh 10-13
2014 TMC AnnuAl MeeTIng drivers. forward in our holistic approach to
& TRAnspoRTATIon “We are leveraging technology to employee health and wellness,” Rich
exhIbITIon create a one-stop verification point to Krutsch, director of human resources
Nashville City music Center
Nashville, Tennessee help companies hire drug and alcohol- program administration for Arkansas
free drivers,” said FMCSA Administrator Best, said in a news release. “Making
mARCh 23-26
TRuCkloAd CARRIeRs Anne S. Ferro. “This proposal moves us health and wellness part of our cultural
AssoCIATIon AnnuAl further down the road toward improv- DNA is our objective, and this partner-
ConVenTIon ing safety for truck and bus companies, ship should help us achieve that goal.”
Gaylord Texan Resort commercial drivers and the motoring
Grapevine, Texas
public everywhere.” fayeTTevIlle fIrM developS
april Carriers must randomly test 10 TraffIC warNINg SySTeM
APRIL 3-4 percent of their CDL drivers for alcohol Fayetteville, Arkansas-based
AMeRICAn TRuCkIng and 50 percent of their CDL drivers for VisuaLogistic Technologies entered into
AssoCIATIons WInTeR
sTeeRIng MeeTIng drugs each year in addition to testing a partnership with the state, to
& nATIonAl sAfeTy new hires, drivers involved in signifi- introduce its Automated Detection Alert
ConfeRenCe & exhIbITIon cant crashes and whenever a supervisor System, or ADAS, to Arkansas highways.
Arlington, Virginia
suspects a driver of using drugs or alco- The system entails a series of wire-
APRIL 11 hol while at work. less, solar-powered roadside sensors
deAdlIne foR CoRpoRATe
fleeT sAfeTy AWARds placed roughly a quarter-mile apart that
APRIL 18 arKaNSaS BeST opeNS HealTH are updated in real time to inform driv-
deAdlIne foR ATA AnnuAl ClINIC for eMployeeS ers of what’s ahead — congested traffic,
busIness ConfeRenCe Arkansas Best Corp., the parent emergency vehicles, even hazardous
& VendoR shoWCAse company of ABF Freight System, Inc. of conditions. Each sensor will flash dif-
sponsoRshIps
Fort Smith, is opening a primary care ferent colors based on the conditions
May clinic less than a half mile from its ahead — for example, yellow for stalled
mAy 21-23 headquarters to serve more than 1,000 traffic.
2014 ATA AnnuAl busIness
ConfeRenCe And VendoR
shoWCAse
hilton Branson Convention Center
Branson, missouri
July
JULy 10-12
2014 ATA TRuCkIng
ChAMpIonshIp
John Q. hammons Convention Center
Rogers, Arkansas
18 arKansas trucKing report | issue 1 2014
“As with any major interstate, there
are morning and evening traffic jams
and nobody knows when or where it
will pile up, often causing an ‘accordion
effect’ of traffic where commuters all
come to sudden slowdowns or complete
stops in short distances, ultimately
causing major incidences involving
multiple vehicles,” Brett Schaefer,
VisuaLogistics chairman and CEO said.
The closest things to ADAS cur-
rently on the market are digital message
boards and camera monitoring systems,
and neither can update drivers in real
time about upcoming conditions.
grIffIN’S
polITICal
SaBBaTICal
CUT SHorT
Four
months after
declaring he
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a third term in
Congress, U.S.
Rep. Tim Griffin (R-Ark.) said he will
run for Arkansas Lt. Governor, joining a
crowded field of Republican candidates.
“Last year, I announced my deci-
sion not to seek re-election to Congress
when my term ends. The decision to
leave Congress and return home was
an agonizing decision but the right Tractor-trailer financing for
one for my young family. Since that Arkansas transportation companies
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Sacrificing Safety for Scores?
Inspection deficit prevents CSA scoring, deters new business
by steve brawner
Contributing Writer
It’s surprising to find some truck-
ing companies asking to be inspected,
but for more than 80 percent of the
nation’s motor carriers, they’re doing
just that. They have not been inspected
enough times to receive a percentile
ranking comparing them to other car-
riers through CSA, the Federal Motor
Carriers Safety Administration’s
(FMCSA) enforcement mechanism and
that lack of a percentile ranking may be
hurting them in the marketplace.
“‘You don’t even have a percentile
score. I can’t use you,’ is an increasingly
common shippers’ response,” said Tom
Sanderson, CEO of Transplace, a third
party logistics firm that brokers freight.
He added, “It is absolutely costing carri-
ers business, and in particular it’s cost- hours of service compliance; driver 92,000 have a percentile score that
ing the smaller carriers business.” fitness; controlled substance/alcohol; compares them to other carriers in their
But the FMCSA says the percentile vehicle maintenance; hazardous materi- peer group.
ranking isn’t meant for shippers als compliance and crash indicator. The The rest are left out because they
to make those kinds of decisions. Safety Measurement System displays haven’t been inspected enough times
Meanwhile, from November through information about a carrier’s scores in or because they haven’t committed
January, the agency tested for public those BASICs. enough violations. In the hours of ser-
comment on an updated Safety FMCSA uses that information to vice BASIC, for example, a carrier must
Measurement System, which displays determine if a carrier is in need of an have been inspected three times in the
CSA scores online. The proposed onsite compliance review, resulting in past two years in order to receive a raw
system would provide a carrier’s raw a safety fitness determination of satis- score measurement. To receive a percen-
measurement score alongside its factory, unsatisfactory or conditional. tile score, it must have been tagged with
percentile ranking. It also would feature Carriers can use it to improve their own violations on three separate inspections.
a better explanation of the carrier’s safety practices. Scores in all but the The percentile score comparing a
performance, including a breakdown hazardous materials and crash indicator carrier to its peers has been prominent-
of its inspections with and without BASICs are available for public view. ly displayed, while the carrier’s actual
violations. Responses are still being According to an FMCSA pre- performance has been hard to find. And
evaluated. sentation at the American Trucking that, along with the scarcity of carriers
CSA measures carriers’ perfor- Associations Management Conference with a percentile score, is a problem,
mance in seven BASICs, or Behavior and Exhibition in October, of the said Dr. Terrence Pohlen, associate
Analysis and Safety Improvement 523,000 active carriers on its record,
Categories. Those are unsafe driving; 201,000 have been assessed, but only
arKansas trucKing report | issue 1 2014 21
The use of CSA percentile rankings
by shippers in their hiring decisions
may be an unintended consequence of
the system’s creation, but it will become
more prevalent, according to Pohlen,
the transportation professor. “The bur-
“‘You doN’t eVeN haVe a perceNtile score. i den is shifting from the FMCSA to the
caN’t use You,’ is aN iNcreasiNglY commoN shippers in terms of selecting carriers
shippers’ respoNse. it is absolutelY costiNg that are safe operators, and so I think
we’re going to see more and more peo-
carriers busiNess, aNd iN particular it’s ple focusing on those scores,” he said.
costiNg the smaller carriers busiNess.” Pohlen said the system can be cum-
bersome and difficult to manipulate
—tom saNdersoN, – even for an analyst like him. Only a
month’s data can be accessed at a time,
ceo, traNsplace
and software is needed to understand a
carrier’s safety record.
“There are so many variables that
are put in there that you really have a
hard time getting a grasp of what CSA
is actually doing,” he said.
professor of marketing and logistics at system to make business decisions, are The Safety Measurement System
the University of North Texas. Pohlen only seeing the percentile ranking, and places a symbol alongside BASICs where
and Sanderson said shippers use that they’ve kind of been conditioned to look a carrier has scored in too low a percen-
percentile ranking as a guide for decid- at that ranking and make a quick judg- tile. Sanderson said some shippers won’t
ing which carriers to hire. A carrier that ment.” do business with carriers who have two
doesn’t have a percentile ranking is an "If that’s the case, CSA isn’t being or more symbols, so brokers like him
unanswered question equivalent to a used properly by those shippers," said must look elsewhere. And that’s unfair,
grocery store item that doesn’t have a Darrell Ruban, FMCSA field adminis- he said, because scores are based on
price tag. The system in theory encour- trator for the Southern Service Center. roadside inspections that can depend on
ages carriers to commit violations in Ruban, whose office covers 11 states, the personal preferences of the inspec-
order to earn a percentile ranking, said CSA’s purpose is to serve as an tor.
Sanderson said. enforcement mechanism for his agency The FMCSA’s Ruban said that
Jason Wing, manager of safety and as a safety management tool for his agency works with the industry’s
compliance and training, ABF Freight individual carriers – not a business tool Commercial Vehicle Safety Alliance and
System, said shippers ask about CSA for shippers. It’s not designed to rank trains all roadside inspectors to enforce
scores “all the time. It’s on all of their carriers from best to worst; it’s designed the rules as uniformly as possible.
paperwork they send over. It’s usually in to inform FMCSA agents which carri- Moreover, carriers that believe they
the top five questions.” ers require intervention. In the eyes of have been unfairly treated can appeal
Wing said shippers use the CSA FMCSA, a carrier that doesn’t have a through the agency’s DataQ process.
scores as a quick and easy elimination percentile ranking represents a lack of “We all understand and realize the
tool, even though the scores don’t nec- data, and the agency has no intention impact that data has on all of our cus-
essarily give a complete picture of the of investigating that carrier. According tomer base throughout the country, and
carrier’s safety record. to the FMCSA’s October ATA presenta- we want it to be as accurate as possible,”
“If you have good scores, you don’t tion, the 201,000 evaluated carriers are he said.
mind sharing them,” he said. “If you involved in more than 92 percent of Pohlen and Sanderson said the
have some challenges in some areas, reported crashes. system can be unfair to smaller carriers
there may be some very good reasons Ruban said that his agency, because because they are less likely to have been
for those, and if you’re making strides it has the power to intervene in a car- inspected enough times to get a score.
and improving your performance, rier’s business, needs a minimal amount If they have been inspected only a few
sometimes you don’t always get that of data before it can act, and it wouldn’t times, one bad inspection can have an
credit publicly. It’s something that ship- want to give a percentile ranking to a outsized effect on that score. Because
pers really have to dig for, and quite carrier with few encounters with law
honestly, most that are looking at this enforcement. 36
22 arKansas trucKing report | issue 1 2014
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“Yes – mY regulatioNs book is
there oN mY NightstaNd. i’m
the oNe people e-mail to ask,
‘what’s that regulatioN for
so-aNd-so?’ i am the Nerd.”
—malea hare,
director of safetY,
calark iNterNatioNal
Malea Hare’s mission
to master all regulations
photography by John david pittman
24 arKansas trucKing report | issue 1 2014
Know-it-all
by eric francis Safety Management Council. And that’s a great fit for a
Contributing Writer woman who will, when gently prodded, own up to being a
total regulations nerd.
Malea Hare doesn’t feel out of place working in what’s “Yes – my regulations book is there on my night-
primarily a man’s industry. After all, that’s pretty much stand,” said Hare with a smile. “I’m the one people e-mail
how she grew up. to ask, ‘what’s that regulation for so-and-so?’ I carry the
“I grew up around a lot of boys – an older brother and regulation book. I am the nerd.”
many cousins,” said Hare. “I was the youngest and the And how: Two years ago on her first shot at the
granddaughter. But I’ve just always been taught – by my Arkansas Trucking Association’s (ATA) Safety Compliance
father, grandfather, mother, grandmother – if you’re going Challenge during the truck driving championship, she
to do something, give it 100 percent. Try your best. If you took first place. Plus, her know-how extends beyond DOT
fall, jump right back up because you can try it again.” to areas like OSHA and workers’ comp, which touch on
She’s lived that credo and it shows, given that at compliance issues.
27-years old she’s not only the director of safety for CalArk “If it has anything to do with compliance, if it has
International, she’s also the youngest person (and first some regulatory requirement, you can throw me in there,”
female) to chair the Arkansas Trucking Association’s she said.
arKansas trucKing report | issue 1 2014 25
Hare’s earliest exposure to truck- in a part-time status because I was still going to know everything about it. You
ing was through family ties – a relative going to school full time.” have to get respect from everyone you
owned an agricultural products com- Iseler, who is now fleet safety man- work with.”
pany that had its own trucks. But it was ager for Walmart Transportation, says Iseler and Hare keep in touch and
a pair of college internships within the she tasked Hare with looking up the get together once in a while, but true to
industry that really convinced Hare this answers because it’s one of the ways the roots of their friendship, their con-
was the right field for her – particularly her own mentor, Don Holman of Tyson versations inevitably tend to drift back
the second, at Cobb-Vantress (a Tyson Foods, taught her about safety. towards regulations, said Iseler – who,
Foods subsidiary). “She was very attentive, very eager like her protégé, keeps a regulation book
“I was introduced to full FMCSA to learn. She rapidly assimilated infor- on her nightstand.
compliance,” Hare said. “Safety is where mation,” said Iseler. “She really grew “I hated to see her go, I absolutely
I stuck. I love the regulated aspect of over time to have a genuine concern for did,” Iseler said. “I knew anywhere she
safety.” safety, the drivers and the public. She’s went she’d be successful.”
She worked under transportation very smart.” Hare said she applied at a lot of
safety manager Megan Iseler, whom The fact Hare came in knowing vir- places during her senior year at the
she considers one of her mentors in the tually nothing about safety didn’t mat- University of Arkansas and “CalArk just
industry and who didn’t hand her any ter much, because she was open-minded seemed right for me. It’s been a family-
easy answers. and asked relevant questions. And ask- owned business for a long time. I just
“What she did was set a regulation ing questions – seeking answers rather liked the environment when I came to
book on my desk and tell me to explain than arguing with someone, said Iseler visit.”
to her what goes into a DQ file,” said – was one of the keys to Hare making They clearly liked her, too, since
Hare. “She wanted me to go through herself a place in an industry that’s long she was offered a job in October 2008,
the research phase and reference the been primarily a man’s world. two months before she graduated with
regulation. When she started gaining “You have to earn respect,” said degrees in transportation logistics
confidence in my abilities, she added on Iseler. “You need to ask a lot of ques- and marketing. She started the fol-
a lot of roles. I was doing a full-time job tions. Not driving a truck, you’re not lowing January and, after a few weeks
“I can’t wait to receive each issue of the Arkansas Trucking Report!
It’s informative and pertinent to what I do for a living—
I read it from cover to cover. I’ve enjoyed seeing the continual
improvements to the quality of the publication. It’s a classy,
first-rate magazine and one of the best in the industry as far as
I’m concerned.”
Vicki Jones Stephens
President & CEO
C.C. Jones Trucking, Inc
Contact Jennifer Matthews Kidd at 501.907.6776
or [email protected] for details.
26 arKansas trucKing report | issue 1 2014
in operations, she was moved into a transportation company. And there are toughest customers in the industry:
supply chain security role. Because of heightened security measures that must Drivers.
CalArk’s international footprint – their be followed on both sides of the border “It’s not always an easy task to deal
trucks go to Canada and their trailers due to the increased threat of drug car- with truckers, and I can understand
into Mexico – there’s a lot to consider tels and other criminal enterprises in it,” said Hilton. “I think of truckers like
from the security standpoint. After Mexico’s border states. Marines; I’m a retired Marine with 30
all, she said, when you’re dealing with “It was a learning experience for years of service and I can tell you there
cross-border traffic, you’re dealing with me and it was a challenge,” said Hare, have been some times I’ve been frus-
NAFTA. “and challenges are the reason I’m in trated with things. Malea is always a
“Really, the entire operation is the business.” good listener – she listened to the driv-
different,” Hare said. “We, as a motor It was Dennis Hilton, CalArk’s vice ers and before she forms an opinion or
carrier, do not cross into Mexico but president of safety, who brought Hare reaches a conclusion, she tries to get all
our trailers do; we have an operation into his part of the organization and the facts and communicate those back
in Laredo, Texas. There are a lot of he’s been extremely pleased with her to the driver.”
certifications; there is a lot of security work. So, is Hilton saying Hare would’ve
criteria you have to meet. And I was “I can go on and on – this girl is a made a good Marine?
in charge of ensuring those programs gem,” said Hilton. “It just doesn’t seem “Oh, I think so!” he said, laughing.
were up to date. I actually kind of built like there’s any end to the energy she “I would have been very happy to have
a new program off of what they already has. I’m really excited to have her on her in one of my Marine organizations.”
had established; I just got everybody our team.” Hare said being named chair of
involved from there.” Her intelligence, attention to detail ATA’s Safety Management Council last
To get CalArk trailers into Mexico, and enthusiasm about the regulatory May was humbling, not only because
for example, they first have to hand process all make her a great asset, he she’s the youngest and first woman in
them over to a drayage carrier that will said. Plus, her personality has made it the position but because she’s work-
take them through the border cross- possible for her to connect with every- ing with safety professionals she holds
ing and hand them off to the Mexican one in the organization, including the
lEss frustration hErE. morE produCtivity hErE.
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arKansas trucKing report | issue 1 2014 27
hare speaking at the 2013 ATA Conference shortage is a topic that impacts safety,
Hare added.
“The national clearinghouse for
drug and alcohol testing, that’s a strong
topic, and electronic logging devices
even though we’ve been talking about
it for years,” said Hare. “The ones that
have installed and implemented them,
we can see the benefits, but there are
still those carriers out there that haven’t
taken the jump. I’ve talked to many car-
riers that have been borderline.”
And when it comes to something
like electronic logging, she doesn’t just
want to be pointing to a regulation
book when trying to convince a driver
or safety director it’s a good idea. She
spent time with the folks installing
them in CalArk’s trucks so she had a
more complete picture of their imple-
mentation.
“I didn’t just learn the hours-of-
service side, I can go by now and prob-
ably install one in a tractor,” she said.
“When I see something, I want to see
every aspect of it. It may not be some-
thing I touch, but when a driver calls
me, I want to understand it.
Photo: Jon D. KenneDy
“I worked with our maintenance
crew, I know the data links, a lot of
stuff the safety person doesn’t have to
know,” she said. “But to do the job the
“i didN’t just learN the hours-of-serVice side, way I want to do it and be fulfilled, I
i caN go bY Now aNd probablY iNstall oNe iN a have to know every aspect of the pro-
tractor. wheN i see somethiNg, i waNt to see gram.”
That kind of dedication to detail
eVerY aspect of it. it maY Not be somethiNg i caught the attention of Don Holman,
touch, but wheN a driVer calls me, i waNt to corporate director of transportation
uNderstaNd it.” safety for Tyson Foods, while Hare was
at Cobb-Vantress, and it left a good
impression that he still carries.
—malea hare, “It was just obvious at the time that
director of safetY, she was super intelligent, she under-
calark iNterNatioNal stood process – which is key, in my
mind – and it’s just kind of like she got
it,” said Holman. “In a very short period
in high regard. Her primary goal is to held. We’re all in it to make the high- of time, she understood what we were
make sure everyone is up to speed on ways safer.” trying to do and how in the world we
new regulations, and to establish a net- Standout issues during her first were going to get it done.”
work they can all call upon. year have included the self-certification A past chairman of the Safety
“Some people may not have the and medical certification require- Management Council himself, Holman
same resources as other people do,” she ments that went into effect for drivers has also been impressed by the work
noted. “I really enjoy it, I respect it. I’ve in January, and CSA will always be a
had great feedback from meetings we’ve big topic, she said. But even the driver
28 arKansas trucKing report | issue 1 2014
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“it was just obVious at the time
that she was super iNtelligeNt, she
uNderstood process – which is keY, iN
mY miNd – aNd it’s just kiNd of like she
got it. iN a VerY short period of time,
she uNderstood what we were trYiNg
to do aNd how iN the world we were
goiNg to get it doNe.”
—doN holmaN,
corporate director of traNsportatioN safetY,
tYsoN foods
hare (second from top right) with some of
the 40 Under 40 Council members in 2012
Hare has done in that arena. the best of his ability. He won’t be sat- and expected to be talking to small
“It was obvious that at some point isfied until he knows the job is done group.
she was going to be a leader,” he said. “I right.” “When I walked into that facil-
think she’s done a nice job, and it looks Just about four years ago, she mar- ity, I saw more than 100 officers,” she
like she’s changing some things with ried Chris Hare, whom she’d met some recalled. “And here I am a 27-year-old
the Safety Council. I think she’s into it, years before through mutual friends. girl speaking about electronic logging
and that’s always good.” A program manager for the rotorcraft and how it’s better for our country. At
Holman has kept up with Hare’s division of Triumph, she said it was his first I was a little nervous, it was a lot
work at CalArk through his friend support, trust and respect that tipped bigger scale than I thought.”
Dennis Hilton, the company’s vice pres- the scales from friendship to love. They But she’s long been accustomed to
ident of safety, and says the same traits live in Benton and both work long public speaking and making presenta-
he noticed during her internship are the hours, so when they have time together tions, so she got through the training
ones that have made her successful in it’s spent focused on his sons Connor with no problem. And as it happened,
her current position. and Ethan, aged 6 and 11, when they’re not long after that a CalArk driver told
“I appreciate what she’s done in the around, and each other when they her about being stopped by a Texas DPS
industry and the leadership role she’s aren’t. She said travel is one of their officer. The officer mentioned to the
taken,” he said. “I think she’s a great favorite things, whether it’s to the driver he’d met his director of safety
young leader in transportation safety.” Virgin Islands (their favorite destination and heard about the electronic logging
Hare grew up in Siloam Springs so far) or Beale Street in Memphis. devices. When the driver asked if he
and that’s where her parents, Steve and Even though she knows she’s wanted to see the electronic logging
Paula Still, live. Her father, a contractor, earned respect among her industry data, the officer told him, “If you have
may help explain why Iseler’s approach peers and higher-ups, there are times to deal with her, I know you’re doing it
to learning regulations may have when being a young woman still makes right,” and sent him on his way. One
worked so well with Hare. Hare feel a bit out of place, though she’s of the driver’s first calls was to Hare.
“If someone asks my father to build always game to take on challenging “He said, ‘You got me a quick roadside
an engine for something, it may be situations. Such as the time she was inspection today!’” she said.
something he’s never done in his life invited to provide a training session for
but he’ll get a book out and he’ll do it to the Texas Department of Public Safety,
30 arKansas trucKing report | issue 1 2014
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WWW.ARKANSASTRUCKING.COM
Crumbling roads and
empty pockets
Highway Trust Fund to reach critical mass in 2014
Account by late summer or fall. help, at least in part, create money to
by scott travis “It does beg the question as to how care for their highway infrastructures —
Contributing Writer the country will continue to maintain but the Highway Trust Fund has histori-
the federal highway system it currently cally provided the bulk of the cash.
There is one material more impor- has,” said Lane Kidd, former president In July, Arkansas Highway and
tant to highways than any amount of of the Arkansas Trucking Association. Transportation Department Director
asphalt or rebar: paper. More specifi- The fund was established with Scott Bennett told a legislative panel
cally, money. And it’s possible that soon the 1956 Highway Revenue Act that that, even with recent, voter-approved
the nation’s highway departments won’t helped pay for construction of the measure like the half-cent sales tax that
have enough of it. U.S. Interstate Highway System. Before passed in 2012, the state will still need
The United States Department that roads were financed with money an additional $200 million a year over
of Transportation is forecasting the taken directly from the U.S. Treasury’s the next decade just to maintain its
Highway Trust Fund, which has helped General Fund. roads.
fund highway construction, expansion, It is not the only source of money “Highways aren’t like fine wine.
repair and maintenance since 1956, will for highways — states like Arkansas They don’t get better with age,” Kidd
see a shortfall in the fund’s Highway have come up with other legislation to said. “The current level of funding is
32 arKansas trucKing report | issue 1 2014
not sufficient to maintain the funding
we have. There has to be new money;
there has to be federal dollars and at
some point Congress will have to figure
out a way.”
The trust fund has three accounts: “based oN the performaNce of the seNate oVer
the Highway Account that funds high- the last three Years a six-Year highwaY bill is
way construction, the Mass Transit a prettY big expectatioN.”
Account and “The Leaking Underground
Storage Tank Trust Fund.”
The expected shortfall will be with- —seN. roY blouNt (r-mo.)
in the Highway Account.
Primarily funded through the years
with various fuel taxes, the Highway
Account of the Trust Fund faces an
uncertain future in today’s political “The outlook for transportation have a tougher time getting through
charged climate in which taxes often funding is grim unless Congress can congress now.”
become the hot potato no one wants to figure out a way to increase revenues The U.S. DOT’s “Highway Trust
touch. into the Highway Trust Fund,” Kidd Fund Ticker,” basing its estimates on
The gasoline tax has been at 18.4 said. “We have not had an increase into current revenue and spending trends,
cents since 1993 and is not indexed for that fund since 1993 when the Clinton forecasts a zero balance in early August.
inflation. Revenue from the tax has administration proposed a 4-cent The Highway Account began Fiscal
declined since 2007 because of a poor increase in the Federal Fuel Tax. That Year 2014 with $1.6 billion in cash.
economy, fewer miles driven and more was a tough vote in 1993 to get passed A transfer of $9.7 billion from the
fuel efficient vehicles. and I’m sure that such a proposal would General Fund was made shortly after
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arKansas trucKing report | issue 1 2014 33
the start of the fiscal year. The original highway trust fund simply will not have long-term U.S. highway bill.
amount, $10.4 billion authorized by that money anymore because states will “We don’t want a two-year bill, we
MAP-21, was reduced by sequestration. be over-obligated on contracts with the want a five- or six-year bill,” Shuster
The DOT says the surface trans- federal government,” Kidd said. “When said at a Bloomberg government infra-
portation program is continuing to the work stops, the jobs go away. It will structure event in Washington.
outlay more than it is taking in, and be a bad situation.” A mileage tax may rub people
as of January the account balance had Some of the options available to the wrong way, Kidd said, because of
dropped by $3.4 billion since the trans- lawmakers include raising the fuel tax, the means needed to track individual
fer. a mileage tax, higher taxes on energy vehicle use.
Money is still coming into the exploration or bringing back corporate “I think even though we have the
fund, thanks to fuel tax revenues, Kidd profits earned overseas. technology, most people don’t want a
said. But it is not coming in quickly House Transportation and transponder on their car so the federal
enough to offset the cost of projects Infrastructure Committee Chairman government can keep up with where
already on the books. Bill Shuster (R-Pa.) has gone on record they are,” he said.
“Many of the jobs already con- saying he favors user fees that include Others public officials, like former
tracted based on money flow into the a vehicle mileage tax that would fund a transportation secretary Ray LaHood
and Pennsylvania Gov. Ed Rendell, have
called for raising the gas tax by 10-cents
a gallon and indexing it to inflation.
go AheAd expressed doubt Congress can find con-
Lawmakers in both parties have
sensus on tax-financing issues and pass
anything long-term, especially with an
And StAre election year underway and a recent
track record that includes a government
shutdown over the budget and spend-
ing.
“Based on the performance of
the Senate over the last three years
a six-year highway bill is a pretty big
We knoW Award-Winning Regional Magazine of the Arkansas Trucking Association Vol. 19 • Issue 1 2014 • $4.95 expectation,” said Sen. Roy Blount, a
Republican from Missouri, in January.
“I doubt Congress has the political
We look fortitude to increase fuel taxes,” Kidd
said. “Nobody is going to run a cam-
paign based on voting in favor of a fuel
good. tax.” With the outlook uncertain at best,
it is up to the states to do what they
can for their highways. In this arena,
Arkansas has proved itself able and will-
Malea Hare ing, and the 2012 sales tax vote seemed
Mastering All Regulations
to fly in the face of conventional, anti-
tax wisdom.
“Arkansas is an anomaly but in
a good way,” Kidd said. “Last election
cycle we approved a half-cent sales
CSA UpdAte • HigHwAy FUnding • AFFordAble CAre ACt
tax for a roads program that shocked
and surprised many political observes
for more information, call Jennifer Matthews Kidd, around the country.”
publisher, at 501-907-6776 or Voters passed Issue No. 1 (now
e-mail [email protected]. Amendment 91 to the state’s constitu-
tion) in November of 2012 and it took
effect in July. Over a 10-year period it
34 arKansas trucKing report | issue 1 2014
is expected to create and support over
40,000 jobs through statewide projects
financed by a $1.8 billion bond issue.
When the bonds are repaid, no
later than 2023, the temporary tax will
be abolished by the state constitution. “the fact [issue No. 1] was targeted tax for a
Move Arkansas Forward Campaign specific purpose, aNd it was temporarY, aided
Manager Craig Douglass, charged with
explaining and pitching the tax to vot- iN the promotioN of the issue as positiVelY
ers, admitted it was a challenge to win impactiNg all parts of the state with job
approval for a new tax, especially in creatioN aNd ecoNomic deVelopmeNt.”
today’s political climate.
“Any ballot issue is a tough sell,” —craig douglass,
he said. “Many times ballot issues are
difficult for supporters to explain and campaigN maNager, moVe arkaNsas forward
for voters to understand. Add to this the
fact the issue increased the general sales
tax and a tough sell just got tougher.”
Primary opposition, Douglass said,
came from the anti-tax organization Amendment 91 funds a laundry tem preservation program — maintain-
Americans For Prosperity, but Move list of specific road projects, includ- ing the highways, roads and bridges
Arkansas Forward (MAF) countered ing construction of over 200 miles of that we have,” Douglass said. “Plus,
with a clear explanation of the sales four-lane and some six-lane highways Arkansas needs a long-term solution to
tax’s benefits to the state. MAF touted to connect all four corners of the state the decline of its major funding source
the job creation benefits of the high- and road-widening projects to ease con- of motor fuel taxes which will con-
way projects Issue No. 1 would fund. gestion. Combined with the Interstate tinue to decline due to cars and trucks
And one of its most effective tools was Rehabilitation Program voters passed in achieving better miles per gallon, hybrid
a statewide map showing where the 2011, it will significantly enhance 400 vehicles, fleets transitioning to natural
four- and six-lane projects would be miles of Arkansas’ transportation infra- gas, electric technology and continuing
built, underscoring the idea that all of structure, Douglass said. volatile fuel prices.”
Arkansas would benefit. But the state’s burst of bi-partisan- It isn’t clear what action, if any,
“The fact it was targeted tax for a ship and the turnout of forward think- Congress will take, or when. Election
specific purpose, and it was temporary, ing voters who support measures like year gamesmanship can make any leg-
aided in the promotion of the issue as Issue No. 1 only go so far in mitigating islation featuring taxes or some other
positively impacting all parts of the the loss of federal dollars and the harm levy a tough sell this year at least.
state with job creation and economic that can do if the state’s, any state’s, Kidd noted there are some 70,000
development,” Douglass said. highways are not kept up. bridges deemed structurally deficient in
Household staples like groceries, Kidd said close to 80 percent of the the United States. But no one wants to
medicine and gasoline were exempted money spent on Arkansas’ roads and see some disaster, like another bridge
from the sales tax increase, making it highways is federal dollars, whether collapse, before there is motivation to
more palatable to Arkansans, and it had that’s from the Highway Trust Fund or do something meaningful for the long-
the general support of both political the stimulus plan President Obama got term benefit of the nation’s highway
parties. through Congress in his first term. infrastructure.
“It was bi-partisan or, more impor- Issue No. 1/Amendment 91, Still, it may take a rude awakening
tantly, non-partisan,” Douglass said. Douglass pointed out, is a short-term of some sort to spur any progress. And
“The Move Arkansas Forward com- fix lasting 10 years with most major in the meantime states like Arkansas
mittee, who sponsored the issue, was construction likely completed in six will have to continue to be innovative
supported by Republicans, Democrats years. Which, again, means all states and make do.
and Independents. The legislative reso- will need some sort of long-term federal “Until the general public feels the
lution placing the proposed issue on the highway money. effects of no money in the Highway
November 2012 General Election bal- “In Arkansas we are still in search Trust Fund there is no way anything
lot was passed by bi-partisan majorities of a long-term financing structure to will get done,” Kidd said.
in both the House and Senate of the adequately fund the Arkansas Highway
Arkansas General Assembly.” and Transportation Department’s sys-
arKansas trucKing report | issue 1 2014 35
SCORES,
Continued from page 22
the scores are based on a rolling,
24-month period, a good inspection can “if You’re makiNg strides aNd improViNg Your
fall off a carrier’s scorecard, drastically performaNce, sometimes You doN’t alwaYs
affecting its percentile ranking even get that credit publiclY. it’s somethiNg that
though the carrier has done nothing to
become less safe. shippers reallY haVe to dig for, aNd quite
“I just did some analysis,” Pohlen hoNestlY, most that are lookiNg at this
said, “and what you’ll find is smaller sYstem to make busiNess decisioNs, are oNlY
carriers almost across the board have
higher scores than the larger carri- seeiNg the perceNtile raNkiNg, aNd theY’Ve
ers because once they get a percentile kiNd of beeN coNditioNed to look at that
score, it’s very hard for them to wash raNkiNg aNd make a quick judgmeNt.”
that out because they don’t get lots of
inspections. A small carrier’s got to get —jasoN wiNg,
inspected several times. They almost
have to be seeking out inspection sta- maNager of safetY aNd compliaNce traiNiNg,
tions to get that percentile score to drop abf freight sYstem, iNc.
again.”
The FMCSA’s Ruban said opportu-
nities for inspection vary and are not
necessarily dependent on size. A small
operator carrying hazardous materials understands the industry’s concern. Department of Transportation’s John A.
in the Northeast, for example, may be Currently, crash reports sent by states to Volpe National Transportation Systems
inspected often. the FMCSA do not record the carrier’s Center found support for the Safety
Wing said large carriers like ABF role in the accident. Ruban said FMCSA Measurement System’s effectiveness.
can be treated unfairly, too. Failure to takes crashes into account because past That study analyzed carrier safety data
land in a high enough percentile in a crashes are a predictor of future crashes, over a two-year period before the sys-
particular BASIC can flag a carrier as regardless of who originally was at fault. tem was created and then studied safety
being in alert status. A carrier may have The agency currently is conducting a records over an ensuing 18-month peri-
improved in its performance but could crash weighting study that will consider od. The carriers it would have identified
still slip in its ranking because other whether or not to change that BASIC. as needing enforcement interventions
carriers improve as well. Also, the incre- FMCSA also is considering revis- went on to have crash rates that were
ments separating carriers can be very ing its methodologies so that the Safety more than double the national average.
small. Measurement System would be used to ABF’s Wing agreed that CSA is an
“I liken it to having a class full of make a safety fitness determination. improvement over SafeStat and said
Rhodes Scholars, and applying the CSA According to the agency, only about FMCSA has been open to the carrier
criteria, you’re going to flunk out 20 to 12,000 carriers receive a safety fitness industry’s concerns. He said CSA has
40 percent of that class,” he said. determination each year. The agency made a difference in the way carriers
A constant source of irritation says it is considering several options. It are doing business. For example, carriers
since CSA was created has been the hopes to publish its notice of proposed are more careful about the drivers they
lack of assignment of responsibility for rulemaking by May 2014. hire because they know a driver’s per-
accidents in the crash indicator BASIC. Regardless of its problems and formance will reflect on the company’s
Currently FMCSA makes no distinc- strengths, CSA is here to stay. Ruban scores.
tion between an accident where the said that Safety Measurement System “It’s gotten carriers’ attention –
motor carrier driver was at fault and is an improvement over the FMCSA’s good, bad or indifferent,” he said. “I
one where he or she was an innocent previous enforcement tool, Safestat, think carriers on the whole are taking
victim. and that it is helping the agency better a closer look at what they’re doing and
The crash BASIC isn’t available for identify and collect data while helping how safe they are and are taking action
public viewing. However, the FMCSA’s the motor carrier industry utilize that to reduce violations at the roadside.”
Ruban acknowledged that the agency data. A study released in January by the
36 arKansas trucKing report | issue 1 2014
No Cash Back
Tax law changes reduce short-term depreciation
by steve brawner
Contributing Writer
Carriers that purchase assets in
2014 will pay more taxes in the short
run than they would have in 2013
because, under changes in tax law,
they’ll lose the ability to take advantage
of the bonus depreciation rules.
That’s according to Richard Bell,
president of Bell & Company, P.A. and
Pancho Espejo, the firm’s senior tax
manager.
Starting January 1 of this year, car-
riers and other companies are losing
the ability to take advantage of bonus
depreciation rules under Section 168 of
the U.S. tax code. Carriers previously
could deduct half the cost of a new
asset in the first year of ownership, in
addition to regular depreciation on the
remaining basis of the asset. But those
provisions have expired.
Prior to January 1 on a $130,000
tractor, which is a three-year asset for
tax purposes, carriers could deduct
$65,000 in bonus depreciation plus
$21,666.67 in regular depreciation
during that first year, for a total of
$86,666.67, or two-thirds of the cost of
the tractor. By the time year two ended,
a carrier would have taken a total of
$115,555.56 in depreciation, leaving a
tax basis value of only $14,444.44.
Now carriers can deduct only
a third of the cost of the asset, or
$43,333.33, that first year. For a carrier
in the 40 percent tax bracket, the loss
of that one-third in depreciation will
mean an extra $17,333.20 in taxes in
year one.
arKansas trucKing report | issue 1 2014 37
they use unaccredited tax professionals.
The tax preparation industry has been
highly unregulated with a large number
of preparers who are not accountants,
attorneys or enrolled agents. Last year,
the nation’s fourth largest tax prepa-
“theY will haVe higher taxes aNd more ration business, Instant Tax Service,
regulatioNs that theY haVe to trY to was ordered closed by a federal judge
NaVigate. plaNNiNg Now will saVe carriers because of false and deceptive practices.
For the IRS, it’s easier to police the
aNd other compaNies’ moNeY aNd headaches iN nation’s accountants than to monitor
the future.” businesses of every kind, which is why
this change is occurring. When deal-
ing with an accountant, the IRS has the
—richard bell, leverage of removing licenses and taking
presideNt, away a professional’s right to practice
bell & compaNY, p.a. before the agency.
Bell said one of the challenges is
that the IRS is becoming increasingly
reliant on automation rather than a
network of regional offices where prob-
lems can be solved taxpayer by taxpayer.
According to Espejo, carriers won’t rule. But Congress did not extend the A good tax professional maintains a
necessarily pay more in taxes over the law, so now businesses can only deduct relationship with the IRS representatives
life of the tractor. “Over the life of the $25,000. At $225,000 in purchases no and can work through challenges before
asset, you’re going to take the same section 179 deduction is allowed. they become problematic.
amount of depreciation, and if you The IRS published final guidance Changes in another area – health
look at it from year over year, your tax regarding deduction and capitalization care – are coming, but the biggest
deduction is greater in the first year and of expenditures related to tangible prop- changes will come after 2014. Most
less over the remaining years under the erty on September 19, 2013. A company small businesses have less than 50
2013 rules. With the 2014 rules that are that buys assets costing $5,000 or less employees and are not required to pro-
now in place, the depreciation is spread can write off each individual asset as vide health insurance, and those that do
based on percentage tables published long as the firm hires an outside audi- were able to grandfather their previous
by the IRS over a four-year period. tor to audit its statement. Without that plans. He expects more movement in
Basically, you’re going to take $130,000 audited statement, the eligible purchase 2015 and 2016.
depreciation any way you look at it.” amounts drop to $500. The regulation What does this mean for carriers
Espejo added that whether a carrier assumes complying with the regulation in the coming years? It could mean a
actually pays more in taxes depends on will require about 15 minutes per entity, challenging tax and regulatory envi-
its tax bracket over the life of the asset. but Bell said he had spent several hours ronment for small carriers. For a small
Another change involving Section studying it at the time he was inter- company making a decent profit, the
179 rules will reduce the amount that viewed by Arkansas Trucking Report. burden can be heavy. Bell said the regu-
businesses can deduct for both new and “They’re rewarding you for stepping latory environment is contributing to
used purchases from $500,000 to only up your game and having your finan- the industry’s consolidation, creating
$25,000. The American Taxpayer Relief cial statements audited, and the IRS is fewer, larger carriers. Companies of all
Act of 2012 allowed carriers and other giving you a tax benefit because they’ll types – and not just carriers – could be
businesses during 2012 and 2013 to let you write off an asset quicker.” Bell faced with the need for more staffing
deduct half a million dollars of personal said. to handle their regulatory and adminis-
property assets as long as the carrier Bell said that the U.S. tax system trative responsibilities. “They will have
did not purchase more than $2 mil- depends a lot on the “honor system” higher taxes and more regulations that
lion of assets in a given tax year. At $2 for compliance. Most American com- they have to try to navigate.” he said.
million, the amount of the deduction panies make every effort to comply and “Planning now will save carriers and
was reduced dollar for dollar, so that a largely succeed at being law-abiding other companies’ money and headaches
carrier that spent $2.5 million would corporate citizens. But not everyone in the future.”
not be able to take advantage of the gets the appropriate guidance when
38 arKansas trucKing report | issue 1 2014
drivers lag in obamacare
enrollment
Federal health care deadlines loom, violators subject to fines
by Jennifer barnett reed vide benefits services to trucking com- income thresholds to pay their premi-
Contributing Writer panies and independent truck drivers. ums, and sets tax penalties for individu-
Two ways the government is try- als and businesses that don’t comply.
Ignoring it won’t make it go away. ing to accomplish that are through a While Jan. 1, 2014 received the
Sure a number of deadlines for individ- requirement that companies with 50 most publicity as the deadline for
uals and companies to comply with the or more full-time employees offer their individuals to have in place health
Affordable Care Act have been delayed, workers an affordable health insurance insurance that meets the Affordable
but they’re still in effect, and more are plan with coverage that meets a set of Care Act’s (ACA) standards, the actual
coming soon. basic standards, and a requirement that deadline for people to enroll if they
“The government really wants every individual who doesn’t get health want to avoid paying the penalty is
everyone to get health insurance, and insurance through their employer or March 31. That’s coming sooner than a
they’re going to try to make them do it another government program sign up lot of independent truck drivers would
one way or another,” said Olin Wage of for a health insurance plan that meets like to think, said Hazen Mirts, CEO
Stephens Insurance, who works with the those same standards. The law provides
Arkansas Trucking Association to pro- financial help for people who meet
arKansas trucKing report | issue 1 2014 39
people than anything else because there
is so much confusion in the market,”
Mirts said. “I had a guy say to me last
week that he didn’t even know that the
health care reform had started. Yes, it’s
started.”
Mirts said Enrollment First insures
more than 50,000 independent truck
“we speNd more time educatiNg people drivers, and many of them — especially
thaN aNYthiNg else because there is so those without major existing medical
much coNfusioN iN the market. i had a problems —have so far made the cal-
guY saY to me last week that he didN’t culation that they’ll come out ahead
paying the fines instead of buying
eVeN kNow that the health care reform the major medical insurance coverage
had started. Yes, it’s started.” required by the ACA.
“If you don’t have a medical prob-
—hazeN mirts, lem now, why spend $400 a month to
buy health care?” he said. Some drivers
ceo, eNrollmeNt first
are signing up for major medical plans,
but not as many as are buying so-called
“skinny” medical policies — those with
very limited benefits. Such policies have
been common in the trucking industry,
but they don’t comply with the ACA’s
requirements, Mirts said.
“They’re not against the law but
of Enrollment First, a Tennessee-based many people are putting off signing they’re not credible plans,” he said.
company that provides health insur- up for insurance that meets the ACA’s “They’re not good enough for the
ance enrollment services to businesses standard. Affordable Care Act.”
and the individuals who work for them, “Ninety-five dollars in this day and To meet the ACA’s requirements,
including independent contractors. time isn’t a big deal to anyone, but next plans have to cover a minimum set of
Enrollment First, which specializes in year, it’s going to be more,” Wage said. services, including preventive health
the transportation industry and works Most people would already pay sig- care. That’s a good thing for truck driv-
with trucking firms in all 50 states, is nificantly more than $95 the first year. ers, Mirts said. Many truck drivers have
working with Wage to extend its ser- For instance, a driver making $50,000 health problems related to the trucking
vices to Arkansas drivers and company year would pay a $500 penalty. lifestyle — heart disease, overweight,
owners. Part of the problem has been sign- diabetes, lack of exercise. Being over-
“If they’re not enrolled by March ing up for an individual health insur- weight can cause sleep apnea, which is
31, they will have to pay that tax on ance plan through the health care a major safety concern in the trucking
their taxes next year, unless the govern- insurance exchange. The now-infamous industry. One study of rookie truck
ment changes something again,” Mirts website which came online last fall drivers showed that those who were
said. hasn’t been easy for many independent “severely obese” were 43 to 55-percent
The law says individuals must have Arkansas truck drivers. There are the more likely to crash than drivers of nor-
health insurance for eight months out problems with the website itself, but mal weight. Other studies have shown
of a year to avoid paying the tax penal- also, the majority of truck drivers don’t truck drivers are more likely to smoke,
ty. That means having coverage in place own a personal computer, Mirts said. be overweight, have high blood pressure
by May 1, and enrollment by March 31. Most have smart phones, but it’s even and have sleep disorders — all of which
“After that, the next time they harder to use the health insurance can be managed with regular health
could enroll is for October 1 effective exchange through a phone, he said. care.
dates,” Mirts said. Truck drivers also tend to be more Truck drivers are also exposed to
The tax — $95 or 1-percent of a isolated than many people, Mirts said, more contagious illnesses, Mirts said.
person’s yearly income, whichever is so it’s harder for them to stay current “Truckers live in truck stops, in overly
greater — doesn’t sound like much at on the latest ACA developments. germy areas. If you get a guy who gets
first, though, and that’s one reason “We spend more time educating sick, who gets pneumonia, he’s out of
40 arKansas trucKing report | issue 1 2014
his truck. Or he’s financially stricken
because he gets sick. It’s a no-win situ-
ation. And so to be able to get health
care now, and be able to get treated
— whether for sleep apnea, which is
even more mandated in today’s mar-
ket, or for being diabetic — access to
health care in transportation is a game
changer.” “corporate taxatioN has beeN delaYed
There’s a major push toward well- uNtil 2015, aNd that allows compaNies
ness in the trucking industry, Mirts
said, and making sure all drivers have to put their head iN the saNd. mY poiNt
adequate health insurance is a major to them is, it’s goiNg to be 2015 before
part of that. You kNow it. we’re alreadY seeiNg
The federal health insurance
exchange, www.healthcare.gov, was set reNewals for 2015, so we alreadY Need to
up to allow people who need insurance eNact the compoNeNts [to meet the aca
to compare a number of plans that all requiremeNts] Now.”
meet federal requirements for pricing
and covered services, and then to enroll
in the plan they choose. The website —hazeN mirts,
is functioning now, and provides a lot ceo, eNrollmeNt first
of information about the Affordable
Care Act’s requirements. The Arkansas
Insurance Department has also created
a website with information for Arkansas
residents, www.arhealthconnector.org.
A number of private companies
have also begun offering enrollment
services that let individuals and busi- income levels of up to about $46,000 Small businesses can also use the
nesses compare and sign up for health for an individual and about $94,200 for health insurance exchange, and private
insurance without going through the a family of four. exchanges like Enrollment First, to shop
government exchange. “Being able to guide them as to for small-group health insurance plans
“We’re just making it easy for them which one serves them the best, that’s to offer their employees.
to sign up for individual coverage,” our goal,” Wage said. “Small employers in Arkansas in
Wage said. “You’ve read that people will The service is free (Enrollment First the past have been subject to a handful
go online on the exchange, and it might earns commissions from the insurance of insurance companies,” Wage said. “It
take them hours and they don’t accom- companies whose policies they sell). may be a better deal for them to go on
plish anything. With Enrollment First, Wage works with trucking companies to the exchange and sign up their small
they can accomplish that with a 20- to offer Enrollment First to their indepen- groups.”
30-minute phone call.” dent contractors. Company owners may Companies that don’t offer qualify-
Enrollment First can sign individu- want to encourage their independent ing health insurance to their employees
als up both for insurance plans that are contractors to sign up for health insur- also face tax penalties, although those
offered through the federal insurance ance through the exchange because the have also been delayed because of prob-
exchange (plans that meet government enrollment forms indicate that the indi- lems with the health care exchange.
standards for pricing and coverage) and vidual is an independent contractor. “Corporate taxation has been
for plans that insurance companies are “The company who is hiring that delayed until 2015, and that allows
offering off the exchange. Individuals contractor now has additional proof to companies to put their head in the
who qualify for government subsidies to show they’re not an employee for tax sand,” Mirts said. “My point to them is,
help pay for insurance premiums must purposes,” Wage said. “That’s a real it’s going to be 2015 before you know it.
sign up for a plan offered through the concern with employers because they We’re already seeing renewals for 2015,
exchange, but those who don’t can by don’t want to end up having to pay so we already need to enact the compo-
coverage either on or off the exchange, taxes for a contract person that’s not an nents [to meet the ACA requirements]
Wage said. Subsidies are available for employee.” now.”
arKansas trucKing report | issue 1 2014 41
Insider Trucking
A look at the latest products, services and news from ATR advertisers
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42 arKansas trucKing report | issue 1 2014
THe MoST verSaTIle e-log & Utility moved swiftly to establish
CoMplIaNCe SySTeM itself as an industry leader. The com-
pany developed the first mechanical
brake to be used on a trailer, and when
World War I broke out, Utility built
100 patented Cable Reel Trailers for the
U.S. government. In its very first year of
business, Utility distinguished itself as
J. J. Keller’s E-Log and fleet man-
agement system — Encompass™ — is
the flexible way to transition to E-Logs
before being rushed by a government
mandate. Here’s why:
The only system with a bring- one of America's two original manufac- In announcing the new name, the
your-own-device (BYOD) option and turers of truck trailers. three partners, Richard Sweebe, Blaine
a bundled option via the J. J. Keller Today Utility Trailer Manufacturing Roberts and Blair Roberts, said, “We are
Compliance Tablet™. Company is America's oldest privately a new company with a proud 72-year
The only BYOD service that sup- owned, family-operated trailer manu- combined history of serving the com-
®
ports E-Logs and E-DVIRs on the iPad , facturer designing and manufacturing mercial truck and bus industries. Our
®
iPhone , and 40+ Android™ devices. dry freight vans, flatbeds, refrigerated new name embodies the strong reputa-
The only ELD that’s Apple - vans, Tautliner curtainsided trailers tion we have built in the markets we
®
®
certified and works with all vehicle and side skirts. serve. Summit will continue to grow
classes. Established in 1973, Utility Tri-State and deliver a higher standard of value
The only system with options from is part of Utility Trailer Manufacturing to our customers because of our dedi-
stand-alone E-Logs to full compliance Company’s independent dealer network cated and talented employees and our
and performance management. with locations in Oklahoma City, Okla.; commitment to integrity, service and
The only system supported by 36 Tulsa, Okla.; Texarkana, Texas; Fort
state trucking associations and count- Smith, Ark. and Little Rock, Ark.
ing. For more information about Utility
Thousands of companies have Tri-State, visit: www.utilitytristate.com.
already chosen Encompass™ to reduce To find out more about Utility Trailer
risk, improve performance, and benefit Manufacturing Company, visit: www.
from the simplicity of using the mobile utilitytrailer.com.
devices their drivers already own. quality in all that we do.”
To learn more about this versatile SUMMIT HoldINgS IS NaMe of The new Summit logo uses bold
E-Log solution, visit jjkellerencompass. Merged dIaMoNd CoMpaNIeS orange and grey lettering representing
com or contact a J. J. Keller Business aNd roBerTS TrUCK CeNTer the merger of the two privately held
Services Representative at 888-473-4638. dealerSHIpS family businesses. An ascending line
The newly merged Diamond across the letters symbolizes the drive to
100 yearS aNd STIll TrUCKINg Companies and Roberts Truck Center grow and to keep customers operating
TraIlerINg dealerships have announced the at peak performance.
In 1914, E.W. Bennett and H.C. name of their new organization. The Summit Holdings offers compre-
Bennett built a single axle trailer that new company will be called Summit hensive transportation solutions that
could easily accommodate 60 bales of Holdings and will do business as include new and used trucks and buses,
cotton. And at the moment the Utility Summit Truck Group, Summit Bus, and parts and service, leasing and rental,
Trailer Company began what is now a Summit Lease & Rental. Annual reve- financing and more.
100-year tradition of excellence, prod- nues for Summit Holdings will approach
uct quality and innovation begins. $1 billion.
arKansas trucKing report | issue 1 2014 43
S TaT v I e w
HIgHway TrUST fUNd SHorTfall
Based on current spending and revenue trends, the U.S. Department of
Transportation estimates that the Highway Account of the Highway Trust Fund will
encounter a shortfall before the end of fiscal year 2014.
The Highway Account began 2014 with approximately $1.6 billion in cash.
A $9.7 billion transfer from the General Fund to the Highway Account was pro-
cessed shortly after the start of the year ($10.4 billion authorized in MAP-21, reduced
by sequestration).
The surface transportation program continues to outlay at a greater pace than
receipts are coming in. As a result, the cash balance has dropped by nearly $3.7 billion
since the General Fund transfer occurred.
*Courtesy U.S. Department of Transportation
44 arKansas trucKing report | issue 1 2014
ADVERTISER
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Wells Fargo Equipment Finance ...............19
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
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arKansas trucKing report | issue 1 2014 45
THe laST word
eyes wide open:
The Big rig dilemma
by tom ricciardone life-threatening dangers at worst. The strategic imperative, with some urgency
Guest Writer references above are prime examples. attached to it.
You can’t outspend it; you can’t
On February 5, the day after an icy, out-finesse it; you will never com- 4: Tell THe STory. IT’S a
wintry mix hit Central Arkansas, the pletely escape it. Clever ad campaigns greaT oNe.
front page of the Arkansas Democrat- and catchy slogans will at best serve as The Arkansas trucking industry has
Gazette feature a four-column wide momentary diversions. You shouldn’t a rich and compelling story to tell.
photo of an over-turned tractor-trailer. ignore this reality. Own it, accept the That story is deeply connected to
The bold type headline: “Rig Flips on Big Rig Dilemma for what it is and deal the power of the American story. Its far-
I-30 Exit Ramp.” with it. In this challenge is born great reaching impact into families, communi-
Just days later, after another blast opportunity. ties, in the quality of life and the sustained
of weather, Sunday’s Page 1 headline progress of our state and its people at an
read: “Woman Missing After Leap Into 2: wHaT’S IN a word: emotional level is compelling.
River to Avoid Hit By Rig.” reSpeCTed vS. lIKed. In this multi-faceted story are the
Imagine, with no advance warning, I often hear the talk of the wide- seeds of greater respect, and, with that,
you have five minutes to address a room spread desire to improve the industry’s an improved image, even against the
full of colleagues from throughout the “likeability” factor, but it would be of wind of the Big Rig Dilemma.
state. Your task is to present a short more strategic value to focus on the Tell that story, in all its richness, in
bullet-point wish list for “marketing” “respect” factor. a way that resonates at the emotional
the Arkansas trucking industry within Gaining tangible improvement on level.
the state and beyond. the respect meter should be key, tied to The strategic value of commu-
As an industry insider, with a advancing both reputation and image, nications planning and purposeful
unique vantage point, what would you and by extension, likeability. It’s an execution is undeniable. Marketing is
tell them? important distinction. all about context and success is in the
This brief column can only scratch details. It is trucking’s responsibility,
the surface, highlight a few “wish-list” 3: CrISIS reSpoNSe: collectively, to proactively create their
items that might resonate along with developMeNT of a CrISIS preferred future. Executing a sound,
some essential points of context to CoMMUNICaTIoNS plaN wITH a disciplined, multi-faceted external com-
consider. deSIgNaTed reSpoNSe TeaM. munication strategy should always be
While some of our state’s larger an industry priority.
1: THe BIg rIg dIleMMa trucking companies have an internal
A number of challenging issues crisis response plan in place, how Tom Ricciardone has a 20-year track
impact the industry’s image, but per- prepared is the statewide industry to record as a strategic communications
consultant for corporate and trade
haps none more so than what I call step up with a response for any and all association clients. In 2012, he co-founded
the Big Rig Dilemma, or the common scenarios? Bespoke Video Production and Multi-
media image, not to mention the ubiq- The mindset about the need for this Screen Media Strategy. He can be reached
uitous highway experience of Big Rigs should be: It’s not a question of “if” but at 501-626-7770 and
[email protected].
as intimidating annoyances at best and “when.” This should be recognized as a
Opinions expressed on this page may not reflect official policies or opinions of the Arkansas Trucking Association
or the American Trucking Associations.
46 arKansas trucKing report | issue 1 2014
We Offer Much More Than Insurance
• Experienced Trucking Personnel
• Driver Recruiting and Retention
• Driver Screening and Evaluation
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