Award-Winning Magazine of the Arkansas Trucking Association Vol. 25 | Issue 5 2020 | $4.95
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STAY CONNECTED
IN THIS ISSUE
VOLUME 25 | ISSUE 5 2020
FEATURES
COVER STORY
END TO END 32
Walmart fleet leader Jeff Hammonds sees the
big picture drivers play in retail success
By Robert O’Connor
CAPITOL WATCH
CRITICAL HEALTH EXPERTISE FOR
TRUCKING’S CRITICAL WORK 18
Dr. José Romero, Arkansas Secretary of Health, talks
COVID-19 and trucking
By Deana Nall
ALSO ON THE BALLOT:
TERM LIMITS, CONSTITUTION 22
The 2020 ballot issues that you need to know
By Steve Brawner
VOTE FOR ROADS. VOTE FOR ISSUE 1. 42
By Bethany May
TRADE SECRETS
WHAT THE NUMBERS SAY 28
Stephens’ Jack Atkins shares
economic insights for trucking
By David Monteith
NEW LOGISTICAL CHALLENGE:
CONFERENCING IN A PANDEMIC 44
Recap of the 2020 ATA Annual Conference DEPARTMENTS
& Vendor Showcase
By ATR Staff
Up Front: by Shannon Newton 7
They Said It 9
SCENE AROUND
News in Brief 10
LOADS OF GRATITUDE 52 New Members 12
ATA celebrates drivers during National Calendar of Events 13
Truck Driver Appreciation Week Advertiser Resource Index 15
By ATR Staff Council Quarterly 16
Insider Trucking 57
TRUCK CONVOY GOES VIRTUAL FOR Stat View 61
SPECIAL OLYMPICS ATHLETES 55 The Last Word: by Dr. Doug Voss 62
By ATR Staff
PHOTOGRAPHY ON THIS PAGE AND COVER BY JOHN DAVID PITTMAN
ARKANSAS TRUCKING REPORT | Issue 5 2020 5
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Page 1 of 1
UP FRONT
Award-Winning Magazine of the Arkansas Trucking Association
Arkansas Trucking Report is owned by the Arkansas Trucking Association,
Inc. and is published bimonthly. For additional copies, to order reprints
of individual articles or to become a subscriber to ATR, contact Katie
Thomason at 501.372.3462.
executive editor
SHANNON NEWTON
managing editor
BETHANY MAY
contributing writers VOTE FOR ROADS. YOU EARNED IT.
STEVE BRAWNER DEANA NALL
[email protected] [email protected]
DAVID MONTEITH TODD TRAUB In Arkansas, and around the country, having well-funded and well-maintained
[email protected] [email protected]
ROBERT O’CONNER infrastructure is not a foregone conclusion. For decades, we, along with other stakeholders
[email protected]
and elected officials have tried and failed.
art director
JON D. KENNEDY
The Freelance Co. LLC, [email protected] Until every vote has been counted, we won’t know if this time was different. The passage
production editors
SARAH SHEETS, KATIE THOMASON, of Issue 1 on November 3rd would finally secure a long-term funding solution for the
SKYLAR HATFIELD HILL
illustrator maintenance and upkeep of roads and bridges across the state.
BRENT BENNETT
[email protected]
photographers But even before knowing if we have been successful, I can say thank you for being a part
JON D. KENNEDY, JOHN DAVID PITTMAN
of the effort. Everyone — even our opposition — recognizes the problem. You likely drove
over, around or through the problem this morning. It isn’t a secret or partisan or at all
divisive to say, many roads and bridges are not fit for the future we want. I’m so proud of
www.arkansastrucking.com the policy makers, professional stakeholders, and also all of you who have a personal stake
president in seeing a need and not being satisfied with looking away from it.
SHANNON SAMPLES NEWTON
[email protected]
director of operations The campaign for Issue 1, in which we have asked Arkansans to vote for roads, is about to
SARAH NEWMAN SHEETS
[email protected] be over, and we owe kudos to so many people who put in time, resources and energy.
director of corporate services
KATIE THOMASON I hope their work pays off at the polls.
[email protected]
communications director
BETHANY MAY The credit for this cause stretches back weeks, months, and even years.
[email protected]
director of loss prevention
MIKE BRUST • Governor Asa Hutchinson recognized the true need, committed to a solution, and
[email protected]
director of safety services has worked tirelessly to ensure the success of Issue 1 in November.
SKYLAR HATFIELD HILL
[email protected]
• Legislators worked across the aisle, making tough decisions and ultimately allow-
BOARD OF DIRECTORS
CHAIRMAN OF THE BOARD ing Arkansans the opportunity to have the final voice in this funding plan that will
MARK MORRIS
Morris Transportation Services, LLC
President outlast all of their political careers.
ROCHELLE BARTHOLOMEW MIKE MCNUTT
CalArk International, Inc. Distribution Solutions, Inc.
President CEO, Owner • Every stakeholder across a wide swath of industries, representatives of business
MARR LYNN BEARDEN JAMES REED
Marrlin Transit, Inc. USA Truck
President CEO groups worked together knowing that achieving the end goal was more important
GREG CARMAN G.E. “BUTCH” RICE III
Carman, Inc. Stallion Transportation Group than any individual desire or credit.
President President & CEO
JOHN CULP ALAN RIELS
Maverick USA Dedicated Logistics, LLC • Donors have provided funding to educate voters even up to the last days at the
President President & CEO
JUSTIN FINK JEFF SMITH
Summit Truck Group Utility Tri-State, Inc. polls to make sure that no one has to show up to the ballot box without knowing
CEO President & CEO
JEFF HAMMONDS JOHN SMITH what is at stake
Walmart Transportation LLC FedEx Freight
Vice President – Logistics Vice President
CRAIG HARPER GABE STEPHENS
J.B. Hunt Transport C.C. Jones, Inc. • Every individual who talked to their own professional and social circles about
Executive Vice President & COO President
AL HERINGER IV TIM THORNE Issue 1. When the pandemic restricted many in-person gatherings this year, where
Star Transportation, LLC ABF Freight
Vice President President & CEO we could have met voters personally and answered questions, individuals carried
JEFF LOGGINS DOUG VOSS
Loggins Logistics, Inc. University of Central Arkansas
President & CEO Associate Professor of Logistics the conversation to their own networks.
ROB LYALL
Tyson Foods, Inc.
• And every driver on our roads who has patiently and not so patiently endured until
Vice President – Warehousing
we had a solid plan for the future.
An affiliate of the American Trucking
Associations
Arkansas Trucking Association (ATA) is an Arkansas corporation of trucking I believe that our state and our country will endure despite the challenges we face, but I
companies, private carrier fleets and businesses which serve or supply the
trucking industry. ATA serves these companies as a governmental affairs don’t mean that as a platitude that everything will be fine no matter what. Everything will
representative before legislative, regulatory and executive branches of
government on issues that affect the trucking industry. The organization also
provides public relations services, workers’ compensation insurance, operational work out because we work out. We work hard when we see a problem, and our collective
services and serves as a forum for industry meetings and membership relations.
For information, contact ATA at: effort this election season is evidence of that.
1401 West Capitol, Suite 185
Post Office Box 3476 (72203)
Little Rock, Arkansas 72201 Drivers Legal Plan
Phone 501.372.3462 Fax 501.376.1810
www.arkansastrucking.com
Shannon Newton
Drivers Legal Plan President, Arkansas Trucking Association
ARKANSAS TRUCKING REPORT | Issue 5 2020 7
TRUCK SALES | PARTS | SERVICE | BODY SHOP
LEASING & RENTAL | FINANCE | CARRIER
OVER 120 LOCATIONS IN 19 STATES
Jonesboro Fort Smith
MHC Kenworth MHC Truck Leasing
(855) 483-6994 (866) 804-7860
Little Rock Springdale
MHC Kenworth MHC Kenworth/Volvo
(866) 419-5718 (866) 271-0785
MHC Truck Leasing
(866) 862-5283 Van Buren
MHC Carrier Transicold MHC Kenworth
(866) 243-9660 (866) 811-1358
mhc.com
THEY SAID IT
TRUCK SALES | PARTS | SERVICE | BODY SHOP
LEASING & RENTAL | FINANCE | CARRIER
OVER 120 LOCATIONS IN 19 STATES “For a lot of people, [the election] is a
“In Arkansas, and consequential, but I think, in the end,
very meaningful event every four years
the majority of households don’t really
all business spend a lot of time thinking about it day
to day between their jobs, their families.
Jonesboro Fort Smith is essential.” It’s their personal finances that count, and
MHC Kenworth MHC Truck Leasing the economy and their job situation. The
(855) 483-6994 (866) 804-7860 pandemic throws in such a big X factor.”
—State Secretary of Commerce Mike Preston,
commenting on how the state’s decision to not shut
Little Rock Springdale down completely during the pandemic has attracted the —Joshua Levine, senior research analyst for digital
MHC Kenworth MHC Kenworth/Volvo attention of out-of-state companies economics at 451 Research, on consumer financial security
(866) 419-5718 (866) 271-0785 in Talk Business & Politics
MHC Truck Leasing
(866) 862-5283 Van Buren
MHC Carrier Transicold MHC Kenworth
“I fully support the extension of the half-
(866) 243-9660 (866) 811-1358
cent sales tax on the November ballot…
This is a worthy investment. If it fails, our
alternatives are limited and less desirable.”
—Incumbent candidate Rep. David Whitaker (D) on his support from Issue 1 for sustainable infrastructure
funding in Arkansas
“At this point, “Sadly, the positive impact
I suppose we this rule could have had to
make both highways and
are suckers truckers safer will have to
for expecting wait. ATA will be working
again with Congress to fix
any shred of what HHS has failed to
normalcy in a do — its job.”
political forum.” —American Trucking Associations President and CEO
Chris Spear on the Department of Health and Human
Services’ guidelines on the use of hair samples for
—Arkansas Money & Politics author Dustin Jayroe in his review government-mandated drug testing which as written
of the first presidential debate between Pres. Donald Trump and would still require carriers to use urinalysis in addition
mhc.com former Vice President Joe Biden to hair testing for drug use
ARKANSAS TRUCKING REPORT | Issue 5 2020 9
NEWS IN BRIEF
performer, he has attained six years
of perfect attendance as a refrigerated
trailer technician for Tyson.
TMC also named Old Dominion
Freight Line’s (ODFL) Mike Neer the
Heavy-Duty Technician Superstar and
Rush OKC’s Chad Moore the Light- and
Medium-Duty Technician Superstar
during the event.
FMCSA APPROVES TWO PILOT
PROGRAMS FOR TRUCKING
In September, the Federal
Motor Carrier Safety Administration
announced two pilot programs. The first,
published Sept. 3, would look at provid-
ing drivers the opportunity to pause the
14-hour clock for at least 30 minutes
and up to three hours. The second,
published Sept. 10, would allow drivers
under the age of 21 (18- to 20-years old)
to operate in interstate commerce.
FMCSA will accept public comment
through Nov. 2 on a pilot program that
will study one of the hours-of-service
TMC AWARDS FIRST TRAILER individuals with Technician Superstar provisions that was not included in the
TECHNICIAN SUPERSTAR TO Awards for outstanding professionalism most recent regulation changes.
ARKANSAN and contributions to the field. “Truckers are American heroes.
Tyson Foods Technician Clifford “Recognizing professional excel- They keep our supply chain moving; they
Roberson, was named the first ever lence is an important part of what we carry essential goods we need to main-
Trailer Technician Superstar as part of want National Technician Appreciation tain our daily lives,” said Transportation
the American Trucking Associations Week to be,” said TMC Executive Secretary Elaine Chao. “The department
Technology & Maintenance Council’s Director Robert Braswell. “Clifford is seeking public comments on providing
inaugural National Technician demonstrates that excellence regularly, additional flexibility for truckers as they
Appreciation Week. and we are pleased to honor him with work to serve our country during this
The appreciation event on this award.” public health crisis.”
September 21–25 was planned after Roberson has served as a techni- The pilot program to learn more
COVID-19 prevented the annual cian for Tyson Foods in Russellville, about how the clock pause could affect
technician skills competition, TMC Ark., since May 2002, and was named drivers is scheduled to operate for three
SuperTech, where the best in the field Team Member of the Year of the Tyson years or less and be limited to CDL
test their knowledge and skills. As part Valley Maintenance Center in 2019. holders who meet specific criteria.
of the celebration, TMC honored three Considered an exceptionally reliable
10 Issue 5 2020 | ARKANSAS TRUCKING REPORT
TRANSPORTATION
Commercial Transportation
Environmental Services
Heavy Equipment
Cargo Services
Nationwide
24 Hour Hotline
1.888.CUSTARD
THANK YOU!
Custard Insurance Adjusters extends our sincere thank you to all our transportation partners. We
know these are trying times, but your commitment to the public is truly remarkable. Without you
our shelves would remain unstocked, packages undelivered and essential supplies nowhere to
be found.
In our effort to support this great industry during the COVID-19 pandemic, we stand ready to
assist with all transportation claims matters that you may encounter.
For further information on our unwavering services refer to our website at
www.custard.com or call Teresa Allen-Tignor at 678.446.8228.
NEWS IN BRIEF,
WELCOME, Continued from page 10
NEW ATA MEMBERS! from drivers about the possibility and
“FMCSA wants to hear directly
safety of an hours-of-service pause
pilot program,” the Agency said in the
Together, We Are the Power of Association announcement of the pilot program.
“The agency remains committed to
We welcome the following new members. Each new member exploring ways to improve safety on our
adds to the Arkansas trucking industry’s collective strength to roadways, while increasing flexibility for
promote, protect and serve with a unified voice. truckers.”
The pilot program is expected to
operate for three years, and allow driv-
ALLIED MEMBERS JOE MORTON & SON, INC. ers between 18 and 20 years old to
South Sioux City, Neb. operate commercial motor vehicles in
HIGGINBOTHAM
Tyler, Texas 402.494.4251 interstate commerce. Public comments
903.508.4395 Transportation insurance services are being collected through Nov. 9.
Transportation insurance services Eligible participants will either be
TRANSTEX 18- to 20-year-old drivers with a CDL
Indianapolis, Ind. For membership information, visit who operate CMVs in interstate com-
877.332.3519 arkansastrucking.com merce while taking part in a 120-hour
Aerodynamic solutions for fleets probationary period and a subsequent
280-hour apprenticeship program
established by an employer while still
on probation or 19- and 20-year-old
commercial drivers who have oper-
ated CMVs in intrastate commerce
for at least one year and 25,000 miles.
Passengers, hazardous materials or spe-
cial configuration vehicles will not be a
part of the program.
The pilot would “carefully examine
the safety, feasibility, and possible
economic benefits of allowing 18-
to 20-year-old drivers to operate in
interstate commerce,” FMCSA’s deputy
administrator Wiley Deck said in a
statement.
The participants will be trained
to use safety-focused technology like
active-braking collision mitigation
systems, forward-facing video event
recorders and speed limiters set to 65
miles per hour. The study will compare
the younger drivers’ performance to
that of a control group of 21-year-old to
24-year-old drivers.
Arkansas Trucking Association and
its members have long advocated for
allowing younger drivers to serve the
industry beyond their current capacity
of driving within the state’s borders.
12 Issue 5 2020 | ARKANSAS TRUCKING REPORT
UA RESEARCHERS PURSUE
CARGO-TRACKING TECHNOLOGY CALENDAR OF EVENTS
A University of Arkansas research
team of civil engineers, computer
scientists and computer engineers have
received a $1.5 million grant to develop NOVEMBER DECEMBER
cargo-tracking technology as it moves NOVEMBER 2-6 DECEMBER 1-3
through roadways and ports. NATMI CSS AND CDS AMERICAN TRUCKING
The researchers will utilize laser- CERTIFICATION ASSOCIATIONS’ SAFETY, SECURITY
distancing and video-sensor technology Virtual Course & HUMAN RESOURCES 2020
that can track cargo without interrupt- NOVEMBER 3 NATIONAL CONFERENCE &
ing traffic. What’s unique about the Election Day EXHIBITION
Indianapolis, Ind.
project is that, in combination with NOVEMBER 10
the technology, the team has developed ATA’S 2020 SAFETY SYMPOSIUM DECEMBER 4
an algorithm that recognizes different Virtual Event ARKANSAS TRUCKING
ASSOCIATION ACCOUNTING &
kinds of trailers (livestock, container, NOVEMBER 11 FINANCE COUNCIL MEETING
dump, etc.). The result will provide ARKANSAS TRUCKING 40 UNDER 40 4TH QUARTER
leaders with more data about how water ASSOCIATION MAINTENANCE & SERVICE PROJECT
and truck transport interact in order to TECHNOLOGY COUNCIL MEETING DECEMBER 10
Rogers, Ark.
plan future investment in infrastruc- ARKANSAS TRUCKING
ture and economic development. NOVEMBER 17 ASSOCIATION BOARD OF
ARKANSAS TRUCKING
“This project will develop a traf- ASSOCIATION SAFETY DIRECTORS MEETING
fic sensor that measures truck activ- MANAGEMENT COUNCIL MEETING
ity in such a way that trucks, drivers Virtual Meeting
and fleets remain anonymous but still NOVEMBER 19 For calendar information,
provide the level of data needed to NATMI OSHA READINESS visit arkansastrucking.com
create policy and prioritize transporta- Virtual Course
tion investments for efficient freight
movement,” Project Leader Dr. Sarah
Hernandez said. “Public transportation
agencies, private firms and operators
need to understand when, where and
what freight is moving. This informa-
tion can be used to design targeted
policies to promote critical industries
and to identify and select infrastructure
projects that support critical or under-
served industries.”
The grant was provided by Inter-
Modal Holding LLC of Steubenville,
Ohio, a transportation, technology and
infrastructure holding company; the
university’s research project will focus
on the Upper Ohio River Valley’s trans-
portation network.
SUPPLY CHAIN READIES TO
DELIVER VACCINE
Several pharmaceutical companies
are beginning late stage trials for vac-
cines that could provide some protec-
tion from COVID-19, the virus that
ARKANSAS TRUCKING REPORT | Issue 5 2020 13
NEWS IN BRIEF,
Continued from page 13
has infected millions around the world.
Many of the options currently being
studied will require storing and trans-
porting in refrigerated containers.
Pfizer’s vaccine candidate must be
stored at minus 94 degrees Fahrenheit,
according to the Centers for Disease
Control and Prevention, while manu-
facturer Moderna’s vaccine candidate
would need to be transported at minus
4 degrees Fahrenheit.
The logistical task will include
moving billions of doses and a global
“cold chain” controlling the tem-
perature and humidity to preserve
the effectiveness of the formulas. In
a white paper, “Delivering Pandemic
Resilience,” DHL estimated it could take
15,000 flights, 200,000 pallet move-
ments and 15 million cold deliveries
that will rely on a pre-established net- As logistic companies prepare to approved for distribution during the
work of warehouse and transportation be ready whenever a vaccine is ready, holiday shipping season.
capabilities. it’s likely that one or more could be In the U.S., the CDC, Health and
Human Services and the Department
of Defense are leading the planning for
distribution. The CDC has asked states
to be ready to possibly receive a vaccine
by as early as Nov. 1.
STUDY FINDS MILEAGE-BASED
USER FEES COULD PENALIZE THE
FUEL EFFICIENT
The Eastern Transportation
Coalition released the results of the
first multi-state mileage-based user fee
(MBUF) pilot project for commercial
trucks, finding that using one rate for
all trucks can put fuel-efficient vehicles
Compliance, safety at a disadvantage when it comes to pay-
ing for roads and bridges.
“Though neutral on whether such
and risk solutions a model presents the ultimate answer to
the fuel tax conundrum, the Coalition
that provide believes evaluating these fees in real-
world scenarios is central to finding a
work-by-exception sustainable solution,” according to a
statement.
The truck pilot explored how the
efficiencies. MBUF concept could be applied to
heavy trucks and the feasibility of using
existing regulations, administrative
14 Issue 5 2020 | ARKANSAS TRUCKING REPORT
ADVERTISER
RESOURCE INDEX
Aon ................................... Inside front cover
ArcBest .......................................................19
Arkansas Trucking Association ......................63
Arkansas Trucking Report ................................60
Clean Energy .............................................24
Custard Insurance Adjusters .....................11
Drivers Legal Plan .....................................37
processes, and technology as a potential The goal is to capture the wide Drivewyze ..................................................35
framework. The truck pilot lasted six array of viewpoints and experiences
months from Oct. 1, 2018 to March 31, within the CMV community. FedEx Freight .............................................27
2019 with over 50 trucks participating In the past few months, the agency
and traveling more than 1.4 million has focused on hearing directly from Great West Casualty .................................17
miles across 27 states using EROAD commercial drivers and incorporating
technology. their opinions and concerns into its InfoStream .................................................14
“The pilot clearly showed that one safety initiatives.
rate for all trucks doesn’t work due to “Truck drivers and other com- McGriff .....................................................39
the vast differences in vehicle operations, mercial vehicle operators are American MHC Kenworth ...........................................8
types, ages, performance and mileage heroes who have stepped up during the
traveled,” according to the study. current public health emergency to keep Netradyne ..................................................23
The Coalition will work with indus- our economy moving, so their input is
try stakeholders on how to explore essential to strengthening safety on the PrePass Safety Alliance ..............................29
MBUF rate setting in future truck roads,” said Transportation Secretary
pilots. “In summary,” the Coalition Elaine L. Chao. ATR Southern Tire Mart .....................................3
reported, “rate setting will
be much more compli- Stallion Transportation ...............Back Cover
cated than for passenger
vehicles.” Summit Truck Group ..................................4
TRUCK DRIVERS GET TLG Peterbilt .............................................41
A VOICE AT FMCSA
Federal Motor Carrier TA/Petro ....................................................21
Safety Administration is
launching a new panel UCA College of Business ...........................31
to provide feedback on
critical issues facing the Utility Tri-State, Inc.....................................6
commercial driving com- This edition of Arkansas Trucking Report
munity such as safety, was made possible with the support of these
hours-of-service regula- corporate advertisers. They support the
tions and parking. trucking industry by enabling ATA to provide
this publication to its members, prospective
The panel will be members, elected officials and the national
comprised of 20 to 25 trucking and business community at large.
drivers from all sectors They deserve your consideration and patronage
when making your corporate purchasing
of the CMV industry, the decisions. Thank you!
FMCSA said.
ARKANSAS TRUCKING REPORT | Issue 5 2020 15
COUNCIL QUARTERLY
.
.
Networking Professional Development Service
ATA members have the opportunity Loan Forgiveness Stimulus package
to be represented in a variety of and business best practices during this
industry councils that address issues EACH COUNCIL HOLDS unprecedented time with more people
specific to safety, maintenance and QUARTERLY MEETINGS, working remote and some returning to
technology, and accounting and the office.
finance. Each council holds quarterly HOSTS SPEAKERS AND In Session 1, “Understanding
meetings, hosts speakers and panels PANELS ON RELEVANT What Your Bank Needs,” Chance
on relevant industry topics, serves as a INDUSTRY TOPICS, Tharp director of equipment finance at
forum for interchanging ideas and best Simmons Bank, discussed the current
practices, and discusses new strategies SERVES AS A FORUM market topics during the pandemic,
and implementation practices. FOR INTERCHANGING on-balance sheet vs off-balance
IDEAS AND BEST sheet financing, understanding what
THIRD QUARTER SAFETY banks consider underwriting a credit,
MANAGEMENT COUNCIL MEETING PRACTICES, AND and accounting updates for leasing
September 24 DISCUSSES NEW standards.
Hosted and Moderated by DriverReach STRATEGIES AND In Session 2, “Tax Planning
With drivers and companies IMPLEMENTATION Considerations and Forgiveness
hauling valuable cargo and hazardous Application Timing,” experts from
material shipments throughout the PRACTICES. Katz, Sapper & Miller shared the latest
United States, there needs to be updates on PPP loans, including the
protocols and policies in place to changes made to owner compensation,
ensure the freight being hauled is repairs for the truckload, LTL and payroll costs, and self-rental. AFC
done so in a safe and secure manner. tank verticals. DriverReach hosted this members learned what factors their
DriverReach CEO Jeremy Reymer led a presentation by FleetNet’s Jim Buell to companies should consider to help
discussion with Transportation Security show fleets how to use this program determine when to apply for forgiveness
Administration Program Analyst J to identify where they are having and why tax planning around the
Bagley and Field Intelligence Officer unnecessary breakdowns so they can treatment of this loan is imperative in
Vincent Bossi about TSA’s free services implement practices to reduce these 2020.
for carriers to improve safety and expensive repairs. Buell analyzed the And in Session 3, “Company
security while hauling freight. second quarter results of the vertical Policies During COVID-19,” Jessica
benchmarking program and shared the Willoughby, Hank Johnson and
THIRD QUARTER MAINTENANCE most frequent unscheduled repairs and Shannice Hodges of Nextep explained
& TECHNOLOGY COUNCIL advice on how to prevent them. how companies can best adapt to the
MEETING current environment of employees
October 6 THIRD QUARTER ACCOUNTING & safely returning to work and managing
Hosted by DriverReach FINANCE COUNCIL MEETING employees working remotely.
American Trucking Associations’ October 8 If you are interested in sponsoring
Technology Maintenance Council Sponsored by Simmons Bank a future ATA council meeting, contact
(TMC) and FleetNet America provided AFC members logged onto this Katie Thomason at katiethomason@
a program that benchmarks the virtual meeting for three sessions: a arkansastrucking.com ATR
frequency of unscheduled roadside banking update, guidance on the PPP
16 Issue 5 2020 | ARKANSAS TRUCKING REPORT
Values Drive Performance
Shared Values Can Lead to Organizational Excellence
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Critical Health Expertise for
Trucking’s Critical Work
Dr. Jose’ Romero, Arkansas Secretary of Health, talks COVID-19 and trucking
By Deana Nall
Contributing Writer
Dr. José Romero, Secretary of
the Arkansas Department of Health,
addressed the critical work of America’s
truck drivers during the COVID-19
pandemic at the ATA Annual Business
Conference in Rogers on August 18.
“Members of this organization,
the truckers of America, are essential
workers,” Romero said. “Without your
efforts, without your risks, we would
not be able to battle this current pan-
demic. It is you and your members that
are delivering the supplies that are nec-
essary for the protection, treatment and Romero outlined the steps truck to 60 percent ethanol. This can be pur-
diagnosis of COVID. I acknowledge you, drivers can take to reduce their chances chased or made at home, Romero said.
and I thank you.” of contracting the virus. He empha- And cleaning and disinfecting regularly
Romero, appointed by Gov. Asa sized four lines of defense that apply to will reduce chances of infection, he
Hutchinson to lead the Department of everyone: wearing masks, keeping a safe added.
Health in early August, is also a professor distance from others, practicing hand For truck drivers specifically,
of pediatrics at University of Arkansas for hygiene and cleaning and disinfection. Romero recommended limiting time
Medical Sciences. In his presentation, he “Masks provide source control,” outside of cabs.
described the heightened vulnerability of he said. “They don’t protect you, but “Do what you have to do and get
truck drivers to COVID-19 exposure and they protect others. Many studies have back in your cab,” he said. “Your cab is
infection. shown this.” your safe zone.”
He cautioned against gaiters and He also warned against handling
MANAGING TRUCK DRIVER RISK masks with valves, as they have been cash since it can transmit the virus, and
“Truckers are innately at risk for shown to be ineffective. he urged drivers to use electronic means
COVID because they travel from place They don’t retain respiratory particles to pay for things and give information.
to place, from area to area, where there within them as well as a mask, he said. When making a stop, Romero advised
may be high transmission levels all As for social distancing, maintain- drivers to again, limit their time outside
across the country,” he said. “And as ing six feet of space from others allows the cab.
they pass through these areas, they stop enough room for exhaled particles to “Contact the facilities which you
to get gas, to eat, to rest, to stretch their fall out of the air. Good hand hygiene are going to arrive at beforehand,” he
legs, and they become exposed. So they means washing hands often, and when said. “Let them know you are coming.
are at very high risk for getting infected washing isn’t possible, using alcohol gel You want to limit your exposure to that
while in route.” sanitizer that is greater than or equal environment as much as possible. Use
18 Issue 5 2020 | ARKANSAS TRUCKING REPORT
“MEMBERS OF THIS ORGANIZATION, THE TRUCKERS
OF AMERICA, ARE ESSENTIAL WORKERS. WITHOUT
YOUR EFFORTS, WITHOUT YOUR RISKS, WE
WOULD NOT BE ABLE TO BATTLE THIS CURRENT
PANDEMIC. IT IS YOU AND YOUR MEMBERS THAT ARE
DELIVERING THE SUPPLIES THAT ARE NECESSARY FOR
THE PROTECTION, TREATMENT AND DIAGNOSIS OF
COVID. I ACKNOWLEDGE YOU, AND I THANK YOU.”
—DR. JOSÉ ROMERO, SECRETARY OF THE ARKANSAS
DEPARTMENT OF HEALTH
your phone to communicate with your gel on your hands. Don’t share your
managers instead of walking into the personal protective gear. Use prequali-
building whenever possible. Also, avoid fied truck stops and hotels. When
eating on the road. Pack food with you you’re team driving, make sure everyone
so you’re stopping only when you know wears masks. Roll down windows if you
a place is safe.” can to increase ventilation.”
Romero discouraged drivers from
physical contact with others, including THE ROLE OF PUBLIC HEALTH
shaking hands, and to keep trucks well EXPERTISE AND INSTITUTIONS
ventilated, especially if more than one Romero also explained the work the
person is inside a cab. Department of Health has been doing
He described the crucial role disin- since the COVID-19 pandemic began.
fection plays in reducing risk of infec- The Incident Command System has
tion. Cabs should be disinfected upon been in place for several decades, and
entrance and exit, and after someone is a standardized system that allows for
else has been in the cab. As a common cooperative response by both govern-
courtesy, mechanics should disinfect ment and non-government agencies
and wipe down surfaces after they fin- to organize and coordinate response
ish their work inside a cab, he said. activities while maintaining local deci-
Paying attention to seemingly small sion-making authority. This structure,
details can make a big difference. activated as soon as the possibility of a
“If you have a sleeper berth, disin- COVID-19 spread was known, collects
fect light switches and change linens and organizes real-time information on
as much as possible,” he said. “Your the status of the virus, he said.
sanitizer gels should contain at least 60 “It maintains situational awareness
percent alcohol, and you should use it for the entire Health Department, and
before and after leaving your cab, before it maintains an inventory of respirators
eating or preparing food, and after and PPE,” he said. “They’re the ones
removing or touching your face mask. that tell us how much PPE or ventilators
Wash your hands after blowing your are in the state, so we know at all times
nose or using the restroom. If you’re if they’re available or not. It tracks the
using surfaces touched by others, at the status of procuring supplies we need,
pump, places that many other people
are touching, you should wash and put
ARKANSAS TRUCKING REPORT | Issue 5 2020 19
“DO WHAT YOU HAVE TO DO AND GET BACK IN YOUR
CAB. YOUR CAB IS YOUR SAFE ZONE.”
—DR. JOSÉ ROMERO, SECRETARY OF THE ARKANSAS
DEPARTMENT OF HEALTH
and it support stakeholders in the com- works: Once someone tests positive
munity who are fighting COVID. It for the virus, they are contacted by a
manages the administrative and finan- nurse, who tells them to stay isolated or languages to reach the non-English
cial aspects of the response so we don’t quarantined. Another trained health- speaking populations of Arkansas,
have to take time away to do that.” care professional contacts the patient to including the Burmese, Marshallese and
Shortly after the identification of obtain information about where they’ve Spanish-speaking communities.
COVID-19 in Arkansas, a pandemic been, and who they’ve been in contact
physicians group was formed, Romero with. Then those individuals are tracked WHAT WE KNOW AND WHAT
said. The group is made up of physi- down for additional testing. People who COMES NEXT
cians with expertise in different areas, test positive are given instructions for During his presentation, Romero
and they meet three times a week and how long to stay in quarantine, and also outlined the history of the virus
provide medical and health guidance when that time period is up, they are globally, nationally and in Arkansas,
related to the virus. given a letter releasing them from quar- and he described the how quickly it can
“They advise the Secretary of antine. be transmitted when no precautions are
Health, who then advises the Governor Romero also described the work of being taken. One graph he shared from
regarding guidelines or directives that the ADH lab, which he said is one of The New York Times showed how one
come from his office,” he said. “So the best public health laboratories in the person with COVID-19 generally infects
they’re essential in helping to filter country. He said the lab has expanded 2-3 people. After five cycles of infected
the information and providing the key considerably since the pandemic’s onset. individuals infecting 2-3 more people,
pieces of information to myself and the “We went from only being able to the number of infected people from
Governor.” process 200-300 specimens a day to the initial infection can reach 368.
Also in Arkansas, a COVID-19 call 3,000 now, and we’ll be expanding to And then each of those 368 people will
center was established and is staffed by 4,000-4,500,” he said. “These are due infect 2-3 more people.
employees of the Department of Health. to the CARES Act and funding from “So you can see how rapidly this
Initially, a large contingent of the the Governor. We’ve developed a very virus is spread when there are no pre-
National Guard was answering calls. robust network for getting specimens to cautions,” he said, emphasizing why
By August, more than 40,000 calls had our institutions. We have local health masks are so important.
been answered at the call center, which units in every county that will test any- “Transmission is through respira-
is staffed 24 hours a day, seven days a one. We have no requirements. You can tory routes—through spread of respira-
week. There is also a constantly-staffed walk in and get a test and you should tory droplets or aerosol,” Romero said.
physician and healthcare provider hot- have your results in 24-48 hours. We “Large droplets fall out of the air at
line, and over the summer, the ADH have taken up the slack that commer- about 3-6 feet. Aerosol is smaller drop-
started a K-12 hotline for parents and cial and other labs have not been able lets and can travel many feet in the
educators to get the most recent infor- to meet because of demand elsewhere air and are potentially infectious from
mation regarding children in schools in the country. We’ve added new tech- greater distances. This is why masks are
and daycares. nologists and biologists to our lab and important--not because it protects you,
Romero said contact tracing is one continue to push forward.” but it protects those around you. That’s
of the most essential jobs of the ADH, The ADH has also worked to create called ‘source control.’ This virus can be
and he described the way the process COVID-related information in other transmitted by someone who is asymp-
20 Issue 5 2020 | ARKANSAS TRUCKING REPORT
tomatic. That’s what makes this virus
very hard to control. As many as 40
percent of individuals who are infected
can be asymptomatic and transmit
this disease. So by putting the mask
on, you’re protecting the person next
to you. Unfortunately, unless you have
a high-grade medical mask, you’re not
protecting yourself because the virus is
so small, it can get through the weave.
That’s why physicians and other health
professionals use the higher-grade
masks. So we wear masks to protect
others and limit the spread.”
When Romero opened the floor
for questions, he was asked about a
COVID-19 vaccine. He said there are
currently two vaccines for the virus
being used in the world: One in Russia
and one in China. Besides those two
there are four COVID-19 vaccines that
are currently undergoing clinical trials,
which require four phases of testing.
Furthest along in the process are the
Moderna and Pfizer-Biontech vaccines,
which Romero said are in phase three.
Moderna and Pfizer-Biontech use the
nucleic acid of the virus to make the
vaccine. The Oxford vaccine is in phase
three and uses a spike protein.
“It’s important to understand that
we probably won’t have a lot of vaccine,”
he said. “Our group is discussing and
planning for about 10 million doses to
begin with, and essential workers and
healthcare personnel will be prioritized.”
Romero was also asked if the initial
steps taken to slow the spread of the
virus in March were worth it.
“States like California that did have
a shutdown and then opened up again
have had problems, even with that,” he
answered. “We didn’t have a complete
shutdown. We had limits. And I think
we’ve done OK with that. I don’t think
a complete shutdown would have been
the right answer for us.”
Romero closed his presentation
with, once again, thanking members of
the Arkansas trucking industry for the
invaluable work they have done during
the pandemic.
“Thank you for putting yourselves
in jeopardy to protect us,” he said. ATR
ARKANSAS TRUCKING REPORT | Issue 5 2020 Arkansas Trucking 2-3.indd 1 9/30/20 9:02 AM 21
Also on the Ballot: Term
Limits, Constitution
The 2020 ballot issues that you need to know
By Steve Brawner
Contributing Writer
Arkansans not only will be voting
on a half-cent sales tax to fund
highways this November, but they’ll
also be voting on two amendments that
would change the state’s term limits law
and make it more difficult to amend
the Arkansas Constitution.
The Arkansas Trucking Association
isn’t taking an official position on those
two proposals. It’s focusing its efforts
on Issue 1, a constitutional amendment
that would permanently continue the
half-cent sales tax for highways, cities
and counties that is set to expire in
2023. (See page 42 for more.)
All three amendments appearing
on the ballot were referred to voters by
the Legislature.
TO LIMIT TERMS OR NOT
Issue 2 would change Arkansas’ The amendment was proposed Many representatives were rookies. The
term limits law so that state legislators by Sen. Alan Clark, R-Lonsdale, who “veterans” had been there only four
could serve a maximum of 12 said he is a term limits supporter who years, or two sessions, but it takes time
consecutive years. The current limit helped campaign for Arkansas’ original to learn the job. He spends much of his
is 16, or actually longer for certain term limits law passed in 1992. That time as a legislator serving constituents
senators who have a partial, two-year law, one of the nation’s toughest, who may have been treated poorly by
term at the end of each decade that isn’t limited state legislators to three two- the government. However, government
included in that amount. year terms in the House and two four- employees tend to ignore new legislators
The proposed amendment year terms in the Senate. Those terms while paying attention to those who
would allow legislators who serve were later extended to the current 16 have been there a while. Generally,
12 consecutive years to return to years — in any combination in the House when legislators have very short terms,
the Capitol after a four-year break. and Senate — in an amendment passed the bureaucracies just wait them out.
They currently are banned for life by voters in 2014. “If you’re not here long enough to
after reaching their limit. A legislator Clark said that he saw the problems know what you’re doing or that anybody
who leaves office before serving 12 associated with an inexperienced has to listen to you, your constituents
consecutive years could run for office in House of Representatives in his first are getting hurt,” he said.
the next election and restart at zero. legislative session as a senator in 2013.
22 Issue 5 2020 | ARKANSAS TRUCKING REPORT
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Clark said he has always questioned
whether an individual should be banned
from serving for life. That means
citizens might be deprived of the service
of a potential Thomas Jefferson. Under “IF YOU’RE NOT HERE LONG ENOUGH TO KNOW
this proposal, such legislators would be
able to return to office — but without WHAT YOU’RE DOING OR THAT ANYBODY HAS TO
the advantages of incumbency. LISTEN TO YOU, YOUR CONSTITUENTS ARE GETTING
The proposal to include a hard cap HURT.”
of 12 consecutive years and an end to
the lifetime ban came after studying
other states. Fifteen have legislative term —SEN. ALAN CLARK, R-LONSDALE
limits, and Arkansas is one of six with a
lifetime ban. Clark said few lawmakers
returned to office after being term
limited in states where it’s allowed.
“The biggest thing is, very few • Second, it would increase the
people once they serve want to come representing right now? … This is a number of counties where the
back. … When you’re there, you think lifetime politician amendment where required number of signatures must
you’ve just got to do it,” he said. “Once they don’t have to go away.” be collected from the current 15 to
you’re out, it’s very hard work, and you 45.
just say it’s time for somebody else to SHOULD CHANGING THE
do it.” ARKANSAS CONSTITUTION BE • Third, it would eliminate the “cure
One purpose of the amendment MORE DIFFICULT? period” that allows groups to col-
was to blunt the efforts of term Also on the ballot will be Issue lect more signatures if they don’t
limits supporters who want a return 3, which is intended to make it meet the required threshold after
to something like the shorter terms more difficult to amend the state’s some are disqualified by the secre-
passed in 1992. Members of the group Constitution and also make it more tary of state. The cure period is only
Arkansas Term Limits were angered by difficult for voters to propose initiated allowed if at least 75% of the origi-
the way terms were extended to 16 years acts and referendums. Initiated acts are nally submitted signatures are valid.
as part of a wide-ranging and vaguely state laws, and referendums are special It would also eliminate the cure
titled “ethics” amendment passed by elections requested by voters on laws period for local ballot measures at
voters in 2014. Since then, they’ve enacted by legislators. The Legislature the city and county levels.
tried without success to pass another can refer three constitutional • Fourth, it would increase the
amendment. amendments to the voters each session, required percentage of votes for
Tim Jacob, a longtime term limits or citizens can propose an amendment. legislatively referred constitutional
activist no longer active with the group, Citizens who hope to amend the amendments from the current 50%
opposes Issue 2. Among his criticisms is Constitution are required to submit in both the House and Senate to
the amendment’s provision for current valid signatures from registered voters 60%.
legislators. They along with legislators equal to 10% of the number who voted
elected this November can serve their in the last gubernatorial election. One of the sponsors, Sen.
full 16 years before reaching their limit. For initiated acts, it’s 8%, and for Mat Pitsch, R-Fort Smith, said his
Jacob also said legislators could have a referendums, it’s 6%. involvement was triggered by an
spouse or caretaker hold their seat for The proposed amendment would amendment passed in the last legislative
them until they are eligible to return. accomplish these goals in several ways, session that enshrined private casino
Jacob said term limits enjoys the most noteworthy being these. operators in the state’s Constitution.
widespread support among all types of • First, it would push back the date However, his desire for change was
voters from all types of demographics. It when voter signatures must be sub- based on broader concerns. He said out-
passed with almost 60 percent support mitted from four months before the of-state interests funded by billionaires
in 1992, while an effort to lengthen the November election to Jan. 15. Then are targeting Arkansas because it’s a
number of terms in 2004 was soundly it would set April 15 as the deadline small state with a low bar for amending
defeated. for filing lawsuits challenging the the Constitution.
“People haven’t demanded that proposals.
they go back, he said. “Who are they
ARKANSAS TRUCKING REPORT | Issue 5 2020 25
be collecting signatures during the
winter. He said a private company
should not be given a monopoly in
the Constitution, and no amendment
“PEOPLE HAVEN’T DEMANDED THAT THEY GO BACK. should specify actions taken in a
WHO ARE THEY REPRESENTING RIGHT NOW? … THIS particular county. Both of those were
IS A LIFETIME POLITICIAN AMENDMENT WHERE THEY part of a casino gaming amendment
passed by voters in 2018. But neither of
DON’T HAVE TO GO AWAY.” those situations would be addressed by
this proposed amendment.
—TIM JACOB, A LONGTIME TERM LIMITS ACTIVIST In fact, well-funded special interest
groups would still be able to meet the
amendment’s thresholds, Couch said,
while grassroots citizen groups would
not.
“They have a right to do that,” he their opponents — raised and spent Couch is representing Tom Steele
said. “We don’t want to preclude that. millions of dollars only to have the with Arkansas Term Limits in a lawsuit
But we don’t want to be an easy mark Arkansas Supreme Court disqualify to keep both Issue 2 and Issue 3 off the
where they only have to use a fifth or the measure shortly before early voting ballot. They’re arguing that the ballot
less of our counties. We want them to began. Also, he said making it harder titles are misleading and insufficient.
go to the majority of our counties, see if to amend the Constitution might They also say Issue 3 contains unrelated
Arkansans really want to do that.” encourage the Legislature to make provisions, the same issue the Supreme
Pitsch said a Constitution should decisions statutorily rather than asking Court used to disallow the tort reform
be changed only for very important the voters to decide. effort. Pulaski County Circuit Judge
reasons, but Arkansas’ has been Also supporting Issue 3 is a ballot Mary McGowan declined Sept. 9 to
amended 100 times. issue group, Arkansans for Arkansans, remove the two from the ballot, but
The measure is supported by organized by the Republican Party of they have appealed the decision to the
Arkansas Farm Bureau and the Arkansas Arkansas. Democratic Party of Arkansas Supreme Court, who ultimately ruled
State Chamber of Commerce, two of the Chairman Michael John Gray said the on Oct. 16 that the votes for both Issue
state’s most powerful business entities. party has not taken an official stance, 2 and 3 will be counted.
Chamber President and CEO Randy but Democrats are generally opposed.
Zook said his organization is focused David Couch, an attorney who EYE SURGERY VOTES WON’T BE
on Issue 1, the half-cent sales tax for sponsored voter-led ballot initiatives COUNTED THIS TIME
highways, but it will contribute to a that raised the minimum wage and A fourth proposed amendment
late-organizing campaign to support legalized medical marijuana, said the initiated by citizens will appear
Issue 3. He believes up to half a million amendment’s real purpose is to prevent on the ballot, but the votes will
dollars will be raised, mostly for social citizens from drafting ballot issues. not be tabulated. Supported by
media efforts. The message will be that He said the General Assembly since ophthalmologists, it would have
the Constitution should be tougher to 2013 has been trying to make it harder repealed a new state law allowing
change. for citizens to exercise a right that is optometrists to perform certain eye
“Frankly, I’ve been pleasantly explicitly contained in the Arkansas surgeries. The Supreme Court ruled
surprised at the number of people who Constitution. Sept. 17 that supporters had failed to
are making statements (saying), well, “They don’t want people to vote certify that signature gatherers had
at long last somebody’s going to make it on people-referred constitutional “passed” criminal background checks,
tougher to put some of these ridiculous amendments,” he said. as required under state law. Instead,
proposals on the ballot that we’ve just Couch said he has “no problem they certified that they had “acquired”
had a spate of over the last few years, making it a little bit more difficult” to them. On Sept. 24, Judge McGowan
especially,” he said. amend the Constitution — for example, ruled that law unconstitutional, saying
Zook said the proposal’s earlier increasing the number of required it cannot be complied with. The state
deadlines would prevent a repeat of counties from 15 to 30. But increasing has appealed.
what happened with a tort reform effort the number to 45 will make it too hard Regardless, the rulings have come
in 2016. That year, business groups for citizen groups to get measures on too late to remove the amendment from
including the State Chamber and the the ballot, and moving the deadline the ballot and too late for the votes to
Arkansas Trucking Association — and to Jan. 15 would mean they would be counted. ATR
26 Issue 5 2020 | ARKANSAS TRUCKING REPORT
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What the Numbers Say
Stephens’ Jack Atkins shares economic insights for trucking
By David Monteith
Contributing Writer
READING THE PAST
All data tells a story. The past is
converted into numbers and the pat-
terns in those numbers are used to
make predictions about the future.
The numbers from the last eight
months — the timespan since the coro-
navirus began spreading across the U.S.
and Arkansas — tell a story with a few
surprises. According to Jack Atkins,
it’s a cautionary tale, but not without
bright spots.
Atkins is a the managing director
of transportation research at Stephens,
Inc., a financial investment firm head- “I don’t think people really under- retailers with an online presence got a
quartered in Little Rock. He’s studied stand the impact that very limited lei- boost. The percentage of all e-commerce
the financial numbers of the trucking sure travel has had on the availability of retail sales jumped to 22 percent in April
industry for the last nine years. On the U.S. consumer to consume,” Atkins and May, double what it had been at the
August 18, at the Arkansas Trucking said. “Instead of going and spending same time the year before.
Association’s annual conference in $20,000 to fly to Europe with your fam- Additional factors, like inven-
Rogers, Atkins presented his perspective ily on vacation if you live in New York, tory restocking, have contributed to
on the story being told by the financial you’re adding a deck to the back of your an uncommon highpoint in truckload
data since the onset of the pandemic. house. I think there’s a lot of stuff mov- activity. The peak, which normally
Atkins says the early stages of the ing on a truck that would have been begins in October in response to the
pandemic went as expected. In April spent on leisure travel.” winter holidays, started in June and
and May, the economy, and most Stimulus checks from the federal shows no signs of slowing down.
trucks not carrying groceries or medi- government, and a temporary increase “The biggest surprise is we didn’t
cal supplies, ground to a halt. Statewide to unemployment benefits further know if we were going to have a back-
lockdowns rolled across the country as contributed to Americans’ willingness to-school season, if back-to-school
the virus spread. Shipments from the to spend money while stuck at home. season was going to be a little bit of
West Coast ports all but evaporated as Housing and construction reaped the damper on trucking markets. And it
other countries, also in various stages benefits, as did e-commerce. The country was not,” Atkins said.
of lockdown, stopped exporting. The transitioned from a service economy to a According to Atkins, all of these
first surprise in the data is not that the goods economy. Waiters and waitresses, factors are a good sign for rates not just
economy crashed, but in the unexpected for example, found themselves with for the rest of this year, but well into
places it began rebounding. reduced hours or out of work, but some the next. “Get rates while you can,” he
28 Issue 5 2020 | ARKANSAS TRUCKING REPORT
says. “We do expect rate increases for
carriers on a contractual basis in 2021.
We think it’s happening in the second
half of 2020. The market is going to “I DON’T THINK PEOPLE REALLY UNDERSTAND THE
support rate increases again for the first IMPACT THAT VERY LIMITED LEISURE TRAVEL HAS
time in 18 months.” HAD ON THE AVAILABILITY OF THE U.S. CONSUMER
The news about rates, while bet- TO CONSUME … I THINK THERE’S A LOT OF STUFF
ter than expected, has not been equally
good for all carriers. Larger companies MOVING ON A TRUCK THAT WOULD HAVE BEEN
and carriers, like Amazon and Walmart, SPENT ON LEISURE TRAVEL.”
are faring better than many small and
mid-size fleets. And not all large com- –JACK ATKINS, MANAGING DIRECTOR OF TRANSPORTATION
panies are doing well. Macy’s, Kohl’s RESEARCH AT STEPHENS, INC.
and Nordstrom — all big, recognizable
names — suffered significant losses in
the first quarter of 2020. These things
hint at the uncertainties in the data. magnitude has happened before. The worse, others better. Most are uncertain
biggest mystery in this story is what about effective strategies for addressing
X-FACTORS will the coronavirus do next? Parts of a virus too new to understand. If
It’s easier to understand the the country that once appeared to be this were an outbreak of measles
past than it is to predict the future, relatively safe have become hot spots or mumps — viruses that have been
especially with so few points of for viral outbreaks. In late September, carefully studied — perhaps there would
comparison. We can’t look back at there were at least 80,000 confirmed be more agreement on how to proceed.
dozens of previous global pandemics cases of COVID-19 in Arkansas, and In addition to the uncertainties
and make predictions about how the daily count of new cases was above surrounding the virus, other unknowns
this one will unfold. Nothing of this 800 frequently. Some states were faring loom in both the near and distant
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future. The biggest of these is the elec- for work. A significant
tion. President Trump uses unpredict- number of people were
ability as a cornerstone of his leadership making more by staying
style, and the changes a Biden victory home than they did when
might bring are equally difficult to actively working. Recent
predict, so the road ahead is foggy attempts to pass another
regardless of who wins. Questions about stimulus bill failed in
additional stimulus money and other Congress, however, and
strategies for economic recovery will be many states are running
decided by a Congress that could also out of the federal money
have a new look after the election. provided for extra unem-
The challenges presented by these ployment benefits. This
future unknowns add to challenges may result in more people
already facing the trucking industry: returning to work, but it’s
driver shortages and increased operating not clear they’ll choose to
costs. And the likelihood of more regu- apply for trucking jobs.
lations feels almost like a given. Atkins points out,
The pandemic has made it even “Folks would rather drive
harder to find drivers. Atkins lists sev- a nail than drive a truck
eral factors contributing to the driver right now.”
shortage. The first is early retirement. The housing and
With a median age of 47, truck driv- construction industry, a
ers tend to be older. Those who were surprising factor in the
close to retirement may have taken the trucking rebound, shares
onset of the pandemic as their exit cue. a labor pool with the
Failed drug tests, or driving violations trucking industry. Why
reduce the potential driver population leave home and fight traf-
even more. The Federal Motor Carrier fic for relatively low pay,
Safety Administration’s Drug & Alcohol when construction jobs can be found THE FORECAST
Clearinghouse has flagged roughly closer to home. The hourly pay for Even with all the uncertainties
28,000 drivers. truck drivers hasn’t kept pace with the surrounding the future, Atkins is rea-
Replacing drivers, regardless of the national average over the past twenty sonably confident in predicting rate
reason they’ve left, has been more chal- years. increases and driver pay increases. “I
lenging as many state agencies and driv- Increasing costs to run trucks and think we will see driver wage increases
er training schools have been operating fleets are one reason truckers aren’t in 2021,” he says. “The magnitude is
with reduced hours and staff. Getting seeing bigger paychecks. These costs to still to be determined, but driver wages
a commercial driver’s license (CDL) carriers aren’t being passed along to will be going up in 2021 because it’s
or the training necessary for a permit the shippers or consumers, Atkins says. very, very difficult to find a driver.”
has become more time consuming and He gives the example of rising costs of Those may be the silver linings.
cumbersome. According to Atkins data, insurance. Beyond 2021, it’s likely technology
roughly 100,000 fewer CDLs have been “Insurance rates continue to be a innovations — more easily adopted by
issued this year, as compared to this challenge. It’s been a challenge for the large carriers — will drive rates per mile
same time last year. Low wages make it last couple of years and that’s not going down, making it difficult for small
hard to attract professional truck driv- away. It’s only going to get worse. That’s and midsize fleets to compete. Some of
ers, even when unemployment is high. a major problem for small and midsize those innovations have already arrived.
Ironically, some of the same factors carriers.” Automating back office operations, like
keeping some truckers on the road may Even larger fleets that are more invoicing and payroll, is becoming more
also be contributing to the lack avail- easily able to absorb inflated insurance common, as is geo-fencing. Electric big
able drivers. Federal stimulus money premiums are having difficulty keep- rigs and autonomous trucks are closer
and boosts to unemployment checks ing up. Since 2010, the cost per loaded to becoming reality, further jeopardiz-
have encouraged many consumers to mile (excluding fuel) has risen $0.59 ing smaller fleets.
make truckloads of purchases, and whereas revenue has only increased Atkins response? Consolidation.
those same checks have disincentivized $0.57. Over time, even the biggest in the While the outlaw image of truck-
some potential drivers from looking industry will suffer if this continues. ers popularized by mainstream media
30 Issue 5 2020 | ARKANSAS TRUCKING REPORT
tainable rate increases that are above
cost inflation.”
He uses numbers from less-than-
truckload shipping to drive home the
“GET RATES WHILE YOU CAN.” point. LTL carriers have seen a decade of
low- to mid-single digit rate increases.
–JACK ATKINS, MANAGING DIRECTOR OF TRANSPORTATION The same can’t be said of the truckload
RESEARCH AT STEPHENS, INC. carriers. “In the LTL industry, the top
ten players make up 70 percent of the
market. In the truckload industry, it’s
five percent of the market.”
Among his final recommendations
in the ’70s may have morphed into a defined truckers for so long may also based on the story of the coronavirus
more traditionally professional looking be creating one of its biggest obstacles. so far, is to use the increase in revenue
driver today, one trait still common to One of the last bastions of rugged indi- expected to come from a strong final
many in the industry is independence. vidualism would have more bargaining quarter of 2020 and into 2021 to invest
There are 900,000 for-hire carriers that power if all those individuals joined in technology when possible. He also
travel the roads of the U.S., and the top together. recommends against the temptation to
ten carriers claim only five percent of “We’ve seen consolidation in LTL. aggressively grow fleets. If the Freight
that number. The vast majority of car- We’ve seen consolidation in airlines. Recession of 2016 is any guide, trucks
riers have less than 20 trucks. Plenty of We’ve seen consolidation in railroads,” that are fully loaded today, are likely to
truckers still like to work for themselves he says. “Consolidation is eventually sit empty once the coronavirus is under
or in smaller, family-like groups. The going to come to this industry…. It control and the market stabilizes. Better
industry is full of stories of self-made really hasn’t happened in truckload to to focus on improving efficiency than
men and women, Atkins says. But, any meaningful degree. And we need to bet on a future with so much change
he adds, the character trait that has consolidation to be able to drive sus- on the horizon. ATR
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ARKANSAS TRUCKING REPORT | Issue 5 2020 31
“WHEN YOU THINK ABOUT
THE LAST SIX MONTHS AND
WHAT WE’VE HAD TO GO
THROUGH COLLECTIVELY
AS A SOCIETY, SO MANY
PEOPLE HAVE BEEN ON THE
FRONT LINE, OUR DRIVERS,
OUR PEOPLE WORKING IN
DISTRIBUTION CENTERS
PULLING AND FILLING
ORDERS, CERTAINLY OUR
ASSOCIATES WHO ARE
WORKING IN OUR STORES
SERVICING CUSTOMERS.
THERE’S A LOT OF
DEDICATION THAT SHOULD
BE RECOGNIZED AND
CELEBRATED.”
—JEFF HAMMONDS, VICE PRESIDENT
FOR FLEET OPERATIONS AT WALMART
PHOTOGRAPHY BY JOHN DAVID PITTMAN
32 Issue 5 2020 | ARKANSAS TRUCKING REPORT
Walmart fleet leader
Jeff Hammonds sees
the big picture drivers
play in retail success
By Robert O’Connor
Contributing Writer
Whether it’s a natural disaster that devastates a local community or a global
health pandemic that grips the world, Walmart associates — including drivers for
one of the country’s largest private fleets — are at the center.
Leading the western half of the company’s transportation division is Jeff
Hammonds, vice president for private fleet operations, a third-generation trucking
professional who believes drivers play a key role in bringing necessary items such as
cleaning supplies, medicine and food to customers and communities.
Growing up, Hammonds, who will celebrate his 30 anniversary with the
th
company in January, didn’t see himself leading transportation for the country’s
largest retailer.
ARKANSAS TRUCKING REPORT | Issue 5 2020 33
terms of their culture and where they
wanted to take their organization,” he
said. “I was particularly interested in
the private fleet part of that, so I made
the decision to go to work for Walmart
in March 1991.”
During the first four years of his
“WE DO NOT WORK IN SILOS. WHAT WE REALLY tenure with Walmart, Hammonds
WANT MORE THAN ANYTHING IS HARMONY ACROSS moved around a good bit, spending
THE SUPPLY CHAIN SO THAT WE’RE WORKING IN A time in Texas, Florida, South Carolina,
and Mississippi, working for Walmart’s
VERY CROSS-FUNCTIONAL WAY.” private fleet. In 1994, after a series of
promotions in the field, Hammonds
—JEFF HAMMONDS, VICE PRESIDENT was offered a regional manager posi-
FOR FLEET OPERATIONS AT WALMART tion in Bentonville. Following two years
of community college, Hammonds
completed his degree at Arkansas Tech
University once he moved to Arkansas.
With a combination of commuting and
online education, “it made for a full
week, between work and education.”
But it paid off. In 2002, Hammonds was
“Growing up in a small rural com- patching one day, booking freight the promoted to his current role.
munity can limit your perspectives,” he next day, and on the road hiring drivers Hammonds leads the western half
said. “I didn’t really know what I wanted the following week,” he said. “You got of the United States, while his colleague
to do.” Though he and his family have exposure to a lot of different aspects of Ryan McDaniel oversees the eastern
called Bentonville home for 25 years, the business. That’s probably what fed half.
Hammonds grew up in south Alabama my interest in trucking early on, and it “Ryan and I both have
in the town of Evergreen, about an hour stuck.” responsibility for the oversight of the
north of Mobile on Interstate 65. Walmart private fleet, and we also have
“There weren’t a lot of opportuni- THE IMPROMPTU INTERVIEW responsibility for the performance of
ties in that community if you weren’t in THAT LED TO A CAREER carriers who are delivering freight from
the lumber or timber business.” In 1991, Poole began a series of our grocery distribution centers to our
Hammonds’ father and grandfather downsizing operations, and Hammonds’ stores,” he said.
were both truck drivers for Poole Truck job was impacted. With eight years of Walmart’s transportation model
Line, a local trucking company that was experience under his belt, he still want- is unique among retailers. It has one of
growing and prosperous in the 1960s ed to stay in trucking, so he traveled to the largest private fleets in the industry,
and 1970s. northwest Arkansas to interview with which moves most of the company’s
“Early on, I had an interest in what some other carriers. general merchandise and dry grocery
my father did and was influenced a lot With a day to kill before he had to items. It also engages a network of
by that,” he said. “That led to me want- be in Louisiana for another job inter- select carriers who deliver a lot of the
ing to go to work for the company he view, Hammonds had an impromptu perishable grocery and the balance of
worked for.” interview with Walmart. dry grocery.
In 1982, Hammonds went to work “I didn’t know much about their “As we flow product from suppliers
at Poole fresh out of school. It was a trucking operation, but I got a chance into our distribution center networks,
good opportunity to learn a breadth of to see what it was like the day that I was the private fleet does a good portion of
responsibility. He started in the mainte- there,” he said. “I just really thought that work, alongside many other car-
nance department, where he managed that it was a special place.” rier partners that are awarded specific
the parts inventory, before moving into A few weeks later, Hammonds had lanes of the inbound business”, he said.
operations, where he began dispatching three offers to consider. Walmart’s “For product flowing from distribution
and booking freight with customers. intrigued him the most. centers to stores, that typically goes on
“That’s where I really learned to “At that time, as an organization, private fleet trucks and a portfolio of
wear a lot of hats. In a small company it was growing so fast. I just felt good
like that, you could find yourself dis- about what they had shared with me in
34 Issue 5 2020 | ARKANSAS TRUCKING REPORT
“WE LIKE TO BELIEVE, WHEN WE HIRE A WALMART DRIVER, WE’RE HIRING THEM
INTO THE LAST JOB THEY’LL HAVE. AFTER SOME TIME WITH THE COMPANY AND
DEVELOPING THEIR SKILLS, THEY BRING TO THE SOLUTION A STABILITY, NUMBER
ONE AGAIN IN THE AREA OF SAFETY, BECAUSE THEY’RE REALLY GOOD AT IT.”
—JEFF HAMMONDS, VICE PRESIDENT
FOR FLEET OPERATIONS AT WALMART
carriers that also work alongside our that international expansion, opening “When you think about what the
fleet and delivers a lot of grocery.” up formats in Argentina, Brazil, and driver does in moving product from
Walmart’s founder, Sam Walton, China, was another evolution for the Point A to Point B, particularly if A is
wanted better control of the transporta- company. “Now it’s e-commerce.” a distribution center and B is a store
tion aspect of Walmart’s supply chain, The company’s private fleet alone, shelf, that is the thing that helps enable
Hammonds said. just shy of 10,000 drivers strong now, that store to be successful, being in
“That brought about the formation will run hundreds of millions of miles stock at store level,” he said. “The value
of a private fleet that we’ve contin- in support of the business this year. that the driver brings to this solution,
ued to grow and develop based on the “When you put it in those terms, the delivery of the mission, and every-
changing needs of our business”, he you start to realize how big that is in thing rests on that driver, you can’t be
said. “It’s bringing it in house so that terms of transportation solution,” he much more valuable than that. All of
you have greater reliability and control.” said. “And that’s just the private fleet. As the rest of us who work around that are
large as that is, it is just one component enabling that act.”
ALMOST 10,000 DRIVERS of a broader end-to-end supply chain Driving is a demanding job, and
STRONG, HUNDREDS OF solution that includes replenishment, Walmart does everything it can to make
MILLIONS OF MILES distribution operations, reverse logistics, its jobs attractive.
With a more than three decades’ fulfillment operations for e-commerce. ‘We want to be one of the more
perspective on trucking, the only All of those functions have to work very preferred jobs in the driving industry,”
constant is change and evolution, well together in a cross-functional way he said, adding that the company
Hammonds said. in order to be the advantage we want to looks for drivers with three years of
“When I joined the organization, be as a supply chain.” experience and accident- and moving
our store formats were largely general “We do not work in silos,” said violation-free records.
merchandise and, at the time, smaller Hammonds, noting a close network “Once a driver joins Walmart,
in size. These stores were the origin of colleagues who are responsible for there is annual safety training so that
of our ‘everyday low-price’ business grocery distribution centers and other they clearly understand and keep per-
model,” he said. numerous other operations. “What formance elevated and in line with our
“So, you can start with a model, we really want more than anything expectations, most importantly as it
but you really have to be forward-lean- is harmony across the supply chain relates to safety,” he said. “There are
ing and understand what changes to so that we’re working in a very cross- things we want them to do as ambas-
that model are right for your business as functional way.” sadors of the company and how they
it grows, and you’re constantly redefin- “We attend each other’s meetings interact with stores that are also impor-
ing yourself.” because all of us impact each other’s tant to us. It’s that customer service
One of the most significant changes business,” he said. “The ability to culture that’s just part of our organiza-
was the development of the Super Center function as a real and authentic team is tional DNA.”
model and adding groceries to the mix. the key.” Driver turnover is very low at
“That was a very dynamic change Within the transportation divi- Walmart, he said.
and just redefined the course that the sion, the driver is the value creator, said “We like to believe, when we hire a
company was on,” he said, adding Hammonds. Walmart driver, we’re hiring them into
36 Issue 5 2020 | ARKANSAS TRUCKING REPORT
the last job they’ll have,” he said. “After complexity of deliveries as it relates to that could be flowing from China, you
some time with the company and devel- perishable grocery and all the sensitivi- were going to be really interested in what
oping their skills, they bring to the solu- ties that come with being on time with was going on,” he said.
tion a stability, number one again in e-commerce,” he said. “They’ve had to “Understanding the implications,
the area of safety, because they’re really adapt and change as our service mission even though it was a very fluid and
good at it.” has changed. But their commitment to evolving situation, dominated a lot of
Walmart has received the American the business and their dedication hasn’t our discussion around what measures
Trucking Associations’ Safest Fleet Award wavered at all.” we need to take.”
(in the large fleet category) for 16 of the “When you think about the last “That wasn’t unique to us,” he said.
past 22 years. six months and what we’ve had to go “I think anybody that was in the busi-
“If you can attract and retain that through collectively as a society, so ness was under those same pressures.”
kind of talent, you’re going to have a many people have been on the front “I think the first we started under-
level of stability in your supply chain line, our drivers, our people working in standing the implications would have
solution that you can leverage,” he said. distribution centers pulling and filling been in late January, when we began to
“You get this level of consistency and orders, certainly our associates who are understand how flow of goods from off-
high performance in the areas of safety, working in our stores servicing custom- shore markets might be interrupted or
service and cost management.” ers,” he said. “There’s a lot of dedica- compromised, that was the first thing,”
tion that should be recognized and he recalled. “We had to start mobilizing
FRONT LINE COURAGE AND celebrated.” pretty quick to understand what that
ADAPTABILITY Being at the center of American would look like and how that might
One of the most impressive things commerce, Walmart leaders like change our business going into the year.
Hammonds has witnessed working with Hammonds began seeing the potential That’s where the conversation started.”
Walmart drivers is their adaptability. business implications of COVID-19 long “As there began to be positive cases
“When you think about how before the general public. here in the US, we wanted to under-
we used to make simple straight-up “Retail and manufacturing probably stand early on what we needed to do to
deliveries to stores, and now with the saw early on that, if you’ve got inventory help protect our customers, associates
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ARKANSAS TRUCKING REPORT | Issue 5 2020 37
“It was a real ‘come home’
moment,” said Hammonds. “We had a
lot of drivers that, when they were mak-
ing deliveries to stores in April, would
be approached by someone in the park-
“WE BEGAN TO UNDERSTAND WHAT WE COULD ing lot, and they would just tell them,
DO, GIVEN OUR SCALE, TO REALLY HELP IN A ‘Do you know what a hero you are?’ It
SITUATION LIKE THAT AND BE MORE THAN JUST A certainly was uplifting for our drivers
RETAILER. NOW LOOK AT THE PANDEMIC. IT’S IN to hear those stories. They got to hear
firsthand from people who maybe were
EVERY COMMUNITY. IT’S WORLDWIDE. HOW DO YOU appreciating them for what they do for
BECOME PART OF THE SOLUTION THAT IS HELPING the first time.”
MAKE LIFE EASIER FOR PEOPLE ON THAT SCALE? This year is a very stark reminder of
THAT’S WHAT WE HAVE TO BE ABLE TO DO IN ORDER why we should appreciate this industry’s
drivers, Hammonds said.
TO FEEL LIKE WE’RE MEETING THE NEEDS OF OUR “I know that our drivers came
CUSTOMERS.” to us with story after story of being
approached by customers,” he said. “My
—JEFF HAMMONDS, VICE PRESIDENT hope is that this industry’s drivers felt
some of that, just the authentic out-
FOR FLEET OPERATIONS AT WALMART
reach on the part of people who wanted
to thank them for what they do.”
BEING A SOLUTION IN CRISIS
Natural disasters offer another
opportunity to see the vital role truck
and drivers,” he said, sharing numerous ensure all associates felt part of the drivers play in the recovery of hard-hit
health and safety protocols the company company’s solution. communities.
embraced early on. “That’s just part of the Walmart “We’ve always taken it on as a mis-
The company quickly and com- story that I’ve always had such an sion to make sure the customer has
prehensively adopted the “6/20/100” appreciation for,” he said, adding that, what they’re looking for,” he said. “We
standard to encourage six feet of social with two children who are frontline especially want to be part of the solu-
distancing, hand washing for 20 sec- healthcare workers (his oldest son is an tion if there’s a crisis.”
onds, and stay-in-place measures for EMT, and his daughter-in-law is an ER When Hurricane Laura hit Lake
associates with temperatures over 100 nurse) he too is “deeply interested in Charles, La., this spring, Walmart and its
degrees. Break rooms and other areas figuring out and making sure that we’re associates were once again at ground zero
across the company were retrofitted doing the right things.” of helping to restore the community.
to promote safety and provide access In addition to the many measures “We have people who live in that
to sanitizer and other needed supplies. in place for Walmart customers and community that work for us. We have
Health screening areas were incorpo- associates, the company provided stores there, and that makes us part of
rated at entrances for mandatory tem- masks and hand sanitizer for Arkansas the community,” he said. “There was
perature checks. Trucking Association member drivers. work that had to be done in front of
“Getting those things deployed “We value our relationship with and after the storm to aid the commu-
in an understandable way as fast as Arkansas Trucking Association,” he said. nity in its preparedness and recovery,
we were able to do so brought a lot of “We really think Shannon Newton does and we want to be as much a part of
comfort to our associates, our drivers, a wonderful job advocating for this state’s that as we could … I’m very proud of my
and our distribution center associates,” trucking industry. We are proud to be a organization and how well Walmart has
said Hammonds. “Seeing us act in those part of it and proud to support it.” responded.”
very intentional ways is what helped For many Americans, the pandemic Perspective on the trucking indus-
give them the assurances needed to still was the first moment they recognized try has grown with every pivotal event.
do the work they wanted to do.” that an entire industry, trucking, exists Hurricane Katrina was a defining
Hammonds credited internal mes- between them and the food, medicine, moment that broadened the company’s
saging, including inspirational videos and other products that keep them and
featuring real associates, with helping their families safe.
38 Issue 5 2020 | ARKANSAS TRUCKING REPORT
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Jeff Hammonds AT-A-GLANCE haps faster than we thought we could
because we needed them, those are
some permanent enhancements that
I think we’ll draw long term benefit
FAMILY: His wife of 32 years, Cheri, sons Tyler, 27, and Adam, 25, and
daughter-in-law Heather from.”
As it heads toward holiday shopping
FIRST TRIP TO A WALMART STORE: “Evergreen did not have a season, Walmart and its retail competi-
Walmart when I was growing up. It still doesn’t, though nearby tors are working to ensure capacity in
stores serve the community. I went to Destin, Fla., and Walmart
had a store there. That was the first one I’d ever been in to stores and online.
actually shop. I had heard they were awesome.” While e-commerce is not a new
phenomenon, the mix of in-store and
“The retail solutions we had in Evergreen were truly just little mom
and pop things. They were part of my childhood, and I have a deep online sales is more complex than it
appreciation for my community. But when I walked into this first was a year ago. Not surprising, the sec-
Walmart as a 25-year old, I said ‘You’ve got to be kidding me. I can tor has seen the most growth since the
get everything in there!’” pandemic in e-commerce.
TEAM LOYALTIES? Hammonds grew up “a pretty avid Alabama fan,” “It doesn’t surprise any of us that
watching the Crimson Tide under coaching legend Bear Bryant. that’s where the growth has been.
Cheri attended Troy State University and was an Auburn University Understanding that and knowing
fan. Switching Southeast Conference (SEC) team loyalties was not a that the growth was going to happen
challenge, he said. was one of those pivot points,” said
“When we moved to northwest Arkansas and our children were Hammonds.
born, they became Razorbacks. Once they were calling the Hogs at “Now you have to make sure
four and five years old, it was easy to convert. We thought that that your solution can be adapted and
was just good for everybody involved.”
adjusted to do it.”
BEST PART ABOUT BEING AN ARKANSAN? “It’s amazing to see the “I think everybody realizes that
growth [in Northwest Arkansas]. We are very blessed to be living in being a true omnichannel solution is
that part of state. Bentonville is such a dynamic place in terms of how you put yourself in the best position
the culture that’s there, the things that are available, the quality to meet customer demand,” he said. It’s
of life, education, healthcare, and the economy in that part of the
state has always been strong and healthy. not a question of either/or. It’s both.
“Don’t force the customer to decide
“Just a few years ago, I bought a bike, and I probably hadn’t whether they want to shop in a store or
ridden one since I was 12 years old. Now I ride it several times a
week.” online,” he said. “Make sure they have
the options that matter most to them.”
Walmart began as a bricks-and-
perspective on the vital role it can play tion ourselves to meet those needs,” mortar business. The average customer
helping communities recover from trag- he said. “That constantly has to be our has a store within 10 miles of where
edy, Hammonds said. focus, and we’ll be in a good place as they live. As it has evolved and adapted
“We began to understand what we long as we remember that the customer to e-commerce, its physical footprint
could do, given our scale, to really help is the center of everything we do. The offers a significant advantage.
in a situation like that and be more than circumstance might change, the com- “I think what makes us unique
just a retailer,” he said. “Now look at plexities may change, but the focus as a company that grew up bricks and
the pandemic. It’s in every community. still has to be on how you provide that mortar is that we have more than 5,000
It’s worldwide. How do you become part customer what they need and make it a stores, forward-deployed, that can put
of the solution that is helping make life frictionless experience for them regard- inventory closer to customer,” he said.
easier for people on that scale? That’s less of how they want to shop.” “Being able to fulfill at fulfillment
what we have to be able to do in order to COVID-19 represents an inflec- distribution centers and stores in sup-
feel like we’re meeting the needs of our tion point for the retail and trucking port of the omnichannel customer is
customers.” industry. Many of the changes that took something that I think we can lever-
While the company’s perspective place this year are likely here to stay, he age. That’s what I would say makes us
has changed because of national and thinks. unique.
global events, the focus cannot, he said. “I think some of the things that “We believe that’s what the
“We need to understand the needs we’ve been able to bring to bear keep customer wants, the option and a
of the customers, the needs of the us efficient, technologies and processes healthy experience to shop any way
community, and how we can best posi- that we have forced to fruition per- they want.” ATR
40 Issue 5 2020 | ARKANSAS TRUCKING REPORT
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Vote for Roads.
Vote for Issue 1.
By Bethany May
Managing Editor
Ed. note: In November 2020, Arkansas
voters will have the power to decide if
the state should keep collecting a half-
cent sales tax in order to raise over $205
million annually for state highways and
bridges, plus an additional $43 million
each for counties and cities. In each issue
leading up to the election, we have covered
the potential impact of that decision. We
encourage you to educate yourself before
you vote and to help educate your friends,
family, neighbors and coworkers who will
help Arkansas make critical choices about
our state’s infrastructure.
Every time that we arrive at
this moment — days before the
election — we’re always ready for it.
Maybe every election cycle, we get more
anxious for the attack ads and op-eds
to end, for holiday cards to replace
candidate fliers in our mailboxes, for the
conversation to be about anything else.
The Governor and advocates for
Issue 1 have taken every opportunity Photo: istockphoto.com
to tell voters about what a YES vote
would mean for drivers on Arkansas
roads. There have been challenges of
campaigning across the state when the
pandemic thwarted original plans, and a reliable infrastructure package for safety, and support the economy and
opponents have also spent time trying over a decade. Right now, we have a prosperity of communities.
to persuade voters. chance to seize the moment and make
If you are still on the fence, we it happen as voters. Funding roads by VOTERS GET TO MAKE IT HAPPEN
hope you’ll consider reading our entire continuing to collect a half-cent sales Issue 1 has had late opposition
series “Highway Dollars and Sense,” tax will allow people in all corners of organize in the weeks leading up to
but to sum up, Arkansas Trucking the state to have access to an essential the election. One consistent argument
Association has been working toward resource, maintain and improve is that a tax should not be written
42 Issue 5 2020 | ARKANSAS TRUCKING REPORT
— — — SPECIAL SERIES ON HIGHWAY DOLLARS AND SENSE — — —
into our state Constitution. It’s not a ELECTION DAY: NOV. 3, 2020
controversial stance to want to revere
and preserve our most fundamental For your polling place: www.voterview.ar-nova.org
state text. In fact, just down the ballot,
Issue 3 proposes to make it more
difficult for lawmakers and petitioners
to change the Constitution. in traffic, and paying increased shipping If funding expires in 2023, how do
The infrastructure funding rates for the freight that is hauled on we improve the 626 bridges with one
shortfall is not a new problem, for crumbling roads. of the key elements in poor or worse
which the first possible solution was It’s on the ballot now, and we have condition? Arkansas already ranks 25th
to amend the Constitution as an easy the chance to decide if we can be patient in the number of structurally deficient
fix. The estimated $478 million gap waiting for a perfect solution or if we bridges according to the American Road
has been growing for decades. Before can be practical solving our problems & Transportation Builders Association.
last year, the dedicated funding source, now with the tools on the table. Some of our worst bridges were built
fuel taxes, had not been increased since more than 60 years ago and bear more
1999 despite inflation in the cost to PROTECTING AN ESSENTIAL than 100,000 crossings every day.
build and maintain roads. Governor RESOURCE. Repairing the 2,598 bridges in need
Hutchinson proposed a multi-approach Fortunately, almost everyone agrees carries a $1.7 billion price tag.
plan: increase gas and diesel taxes and that highways and bridges are essential In the 2017 Infrastructure Report
index to inflation, collect taxes from to our way of life. Opponents of Issue 1 Card, the American Society of Civil
newly approved casinos, and collect might tell you that trucking is driving Engineers graded the nation’s bridges
registration fees on hybrid and electric this priority, but we are all stakeholders a C+ and the roads, a D. Seventeen
vehicles. in the roads throughout our state and percent of Arkansas’s 102,603 miles of
The final piece of the plan communities. public roads were found to be in poor
identified a temporary half-cent For the trucking industry, the condition.
sales tax that voters approved in the highways are the office, it’s true. But
November 2012 election. If Arkansans roads carry school buses to take kids to VOTE FOR ROADS. VOTE FOR
agree to not let this tax expire in classrooms or sports events around the JOBS. VOTE FOR RECOVERY.
2023, we make a commitment that state, roads allow farmers to get their It is expensive to clear sightlines,
we will always value and fund the crops to market, roads connect families add a lane, change the grade of a hill,
infrastructure that connects us. It is with one another, and on and on. and make the improvements that keep
a long-term, sustainable solution for Over 86 percent of communities drivers safe. But a vote for Issue 1 can
a long-term resource like highways depend on trucks and surface address economic recovery that the state
and bridges, pledged in a long-term transportation for all the food, needs. Continuing the half-cent sales
document. medicine and goods they consume. tax is expected to support 3,600 jobs
In 2019, legislators worked Roads are as essential as pipes to bring each year and provide $8.2 billion of
together and overwhelmingly passed water and wire to bring electricity. economic activity over ten years.
the other pieces of the Governor’s plan, We all deserve access to well-funded, Without it, funding is expected
but they left the choice of continuing future-proofed, safe, smooth routes. to fall 30 percent. Cities and counties
the sales tax to their constituents could lose over $40 million a year.
because it was voters who chose to SAFETY IN NUMBERS From 30,000 ft., voting for roads
implement the original sales tax eight We have spent the better part of is about safety, economic progress,
years ago. a year trying to be safe and protect necessity, and urgency, but from your
It is a perfectly reasonable stance to ourselves from sickness and injury. For driveway, it may be about less time in
want elected officials to take care of our six months, Gov. Hutchinson held a traffic and more time with family or
public infrastructure instead of turning daily press conference to share numbers a wider shoulder around a dangerous
the decision over to voters. It is also as evidence of the public’s progress or mountain route. Wherever you’re going,
reasonable to point out that while we elevated risk. If we look to the data on vote for the road that will take you there.
wait another 20 years for Congress to the number of bridges and roads that At Arkansas Trucking Association,
make it a priority, we will individually are in poor condition today, the state we encourage you to make sure you are
be shouldering the cost to repair our has room for improvement and an registered to vote, know your polling
vehicles after hitting potholes, waiting opportunity to be much safer. place, and learn about the issues. ATR
ARKANSAS TRUCKING REPORT | Issue 5 2020 43
New Logistical Challenge:
Conferencing in a Pandemic
Recap of the 2020 ATA Annual Conference & Vendor Showcase
By ATA Staff THE FORUMS Sarah Huckabee
On May 6-8, over 300 trucking This year’s session line-up included Sanders
executives would have been gathering five educational forums, an exclusive
in Rogers, Ark. shaking hands, passing 40-Under-40 council meeting and fea-
business cards to new acquaintances, tured speaker former White House Press
slapping backs or hugging old friends, Secretary Sarah Huckabee Sanders.
chewing on the ends of pens while tak- Sanders was the headlining speaker,
ing notes during one of the forums, or closing out two-days of presentations
clinking glasses while networking at from industry and state experts. She
one of the receptions. But of course, you shared stories from her time at the
know what really happened on May 6-8. White House, where she advised Pres.
Trucking executives around the state Donald Trump on everything from
were busy behind their desks trying to press and communication strategy to
manage teams of remote workers or personnel and policy as only the third
keep drivers safe and informed as they woman and the very first mom to ever
traveled across the country in the early hold the press secretary position.
months of a devastating and deadly But before Sanders closed the show,
pandemic. attendees were there for insights on
But Arkansas Trucking Association trucking research, trade, the economy,
did not cancel the annual event. political discussion, regulations, and
Instead, President Shannon Newton safety.
postponed, while the industry navigated In Monday’s first forum, “Trucking
the new logistical challenges and while Toward a New Reality,” American
the health experts learned more about Transportation Research Institute
how the virus works and what measures President and COO Rebecca Brewster
can mitigate the risks of large gather- presented ATRI’s most recent research
ings, where the virus is most likely to including the impacts of COVID-19, last
spread. year’s top trucking concerns, the opera-
On August 17-18, Arkansas tional costs of trucking, a financial
Trucking Association held its annual analysis of toll systems, and what has
business conference and vendor show- been learned about the effect of nuclear
case. It was smaller, much different in verdicts (those over $10 million) on
practice, but familiar in spirit to the trucking. Brewster also discussed
event that ATA members have attended upcoming research projects including
every year since 1932. The event still vehicle-miles-traveled models of infra-
attracted 134 attendees, representing structure funding and how even small
66 companies to the John Q. Hammons verdicts can impact the industry. Rebecca Brewster (American
Convention Center. Transportation Research Institute)
44 Issue 5 2020 | ARKANSAS TRUCKING REPORT
Randy Ort (Arkansas Robert Moery
Department of Transportation) (Broadview Strategies) on
on the Vote for Roads panel the Vote for Roads panel
Shannon Newton (ATA),
Blake Eddins (Eddins &
Associates) and
Sen. John Boozman
Justin Allen (Wright Lindsey Jennings) talks tort
reform in Arkansas
John Manzella (The Manzella Report)
Will Clark and Danny Giffen (McLeod Software) Sgt. Seth Debord and Lieut. Tim Gushing (Arkansas Highway
visits with vendors Police) with Paul Claunch (PrePass)
ARKANSAS TRUCKING REPORT | Issue 5 2020 45
Trucking has pursued tort reform THE SAFETY LOGISTICS
measures in Arkansas to prevent verdicts Much of Dr. Romero’s guidance
from reaching nuclear heights that deter was written into the plans for this
insurance companies from serving car- year’s conference because ATA was
riers in the state. On Tuesday, Wright required to submit a safety plan to the
Lindsey Jennings’ Justin Allen discussed Arkansas Department of Health for
the challenges ATA and other groups approval, a requirement for every gath-
have faced in previous efforts to get tort ering over 100 people.
reform on the ballot and the future of The most common advice for
the fight to improve the legal climate. interrupting the spread of COVID-
In a special report, panelists Good 19 is to wear masks, maintain social
Roads Foundation CEO Joe Quinn, distance (6-ft or more), frequent hand
Arkansas Department of Transportation washing, and avoiding large gatherings.
Deputy Director Randy Ort, and Vote Arkansas was only the second trucking
for Roads Campaign Manager Robert association in the nation to hold an
Moery presented a case for another in-person annual conference under
ballot issue that will help citizens, busi- these restrictions. Mark Morris (Morris Transportation
nesses, cities, counties, and truckers in But plotting the safety logistics of Services) makes his first address to
every corner of the state—Issue 1. the event was the only way to make membership as the new chairman of ATA’s
John Manzella, world-recognized it happen at all. Some changes were Board of Directors
speaker, author of several books, and a easy. The gathering was much smaller
nationally syndicated columnist on glob- than usual (about half the normal
al business, trade policy, labor, and the attendance). The space was also larger.
latest economic trends, brought attend- Because ATA’s conference was the very
ees information about how COVID-19 first larger post-COVID event hosted
has interrupted economic trends and in the John Q. Hammons Convention
growth around the world. In his Monday Center, the venue was flexible working
afternoon presentation, Manzella ana- with ATA staff to make sure there was
lyzed consumer spending, trade relation- plenty of space to maintain distance
ships, and U.S. unemployment. and to make attendees feel comfortable.
And Stephens Inc. Managing Event planners know weeks and
Director of Transportation Research months and sometimes, years (yes, con-
Jack Atkins presented on the economic tracts can be signed YEARS in advance)
recovery in his presentation, “Truckload go into pulling off an event that looks
Stocks: Preparing for the Summit Push effortless. But for meeting during a Derek Canard (Aramark Food &
as the Cycle Inflects.” (See full story on pandemic, many of the previous plans Support Services Group) gives his final
Safety Management Council report as
page 28). had to be scrapped or amended. Some chairman
Maybe the most anticipated forum of the forums that sounded exciting in
was that of Arkansas Secretary of January, ATA knew would no longer be a
Health Dr. Josè Romero. The virus has top concern for trucking execs learning
changed the lives of all Americans. It the difference between quarantine vs.
has changed even the best-laid plans— isolation or antigen vs. antibody. New
this conference included. So in Tuesday speakers were scheduled and new dates
afternoon’s forum, ATA hosted the most were put on the calendar. One change
authoritative source on public health in no one would have predicted this spring
Arkansas. Dr. Romero thanked truck- is that ATA’s conference got a new dress
ing for supporting a supply chain that code.
is saving lives right now, and he shared Every decision, even the small
what we have learned about transmis- ones, that staff made behind-the-scenes
sion of the virus and how to protect was to facilitate the safest possible
ourselves, communities, and truck driv- environment and circumstances for our John Culp (Maverick Transportation)
ers. (Read more on page 18.) sponsors, vendors, attendees, speakers, gives the financial report during ATA’s
and the community that hosted us. general session and official business
meeting
46 Issue 5 2020 | ARKANSAS TRUCKING REPORT
THANK YOU,
ATA CONFERENCE SPONSORS!
GOLD SPONSORS SILVER SPONSORS
Aon ABF Freight
Carman, Inc.
Cummins Sales & Service
Dedicated Logistics, LLC
FedEx Freight Doggett Freightliner of Arkansas
J.B. Hunt Transport Drivers Legal Plan
Morris Transportation Services, LLC Great West Casualty Company
McGriff
PAM Transport
Star Transportation, LLC
Pilot Flying J
Subrogation Division, Inc.
PrePass TLG Peterbilt
Sedgwick University of Arkansas
Stallion Transportation Group University of Central Arkansas
UPS
Summit Truck Group
Walmart Transportation LLC
TravelCenters of America
Trimble Transportation THANK YOU TO OUR 2020 VENDORS
Utility Tri-State, Inc.
Corporate Medical Services
InfoStream
Intellistop Corp.
Tim Thorne
(ABF Freight) visits Netradyne
vendors Mark Omnitracs
Fleming and Carl
Boja (TravelCenters of ORBCOMM
America)
Ozarko Tire Center
PrePass
Purple Wave Auction
Quality Petroleum Inc.
Shane Copes Ritchie Bros. Auctioneers
(Morris Transportation SmartDrive Systems, Inc.
Services) visits Purple
Wave Auction’s Taylor & Martin, Inc.
Michael Cullen and
Penny Hughs TLG Peterbilt
TravelCenters of America
University of Arkansas
ARKANSAS TRUCKING REPORT | Issue 5 2020 47
John Younker accepts the Grand
Champion safety award for Old Dominion
Freight Line
Road Team Captains Dave Hall (ABF Freight), Weston Mars (FedEx Freight), Loren
Hatfield (ABF Freight), Danny Fuller (XPO Logistics), and Rodney Ashbrook (ABF
Freight)
Every year, everyone on-site wears name Handshakes were replaced with
badges to make it easy to network and waves, even for awards ceremony pho-
avoid those awkward encounters when tos. Staff set up a separate no-contact
your mind betrays you and you forget photo station for winners to take
someone’s name the moment after they unmasked photo with their awards. The
introduce themselves. To make it easy planning was intended to maintain as
to identify people from a safe distance much pomp and circumstance for the
and with faces covered in masks, names people and companies who did out-
were printed in the largest type size standing work last year, while also keep-
possible. ing the industry’s best assets safe.
In July, Gov. Asa Hutchinson issued
a mask mandate that requires everyone THE PEOPLE
over the age of 10 to wear a face mask Because ultimately, the gallons
both indoors and outdoors when it’s of hand sanitizer are a tool to make
not possible to keep a distance from the true mission of annual conference ABF Freight’s Dave Hall is recognized
people outside one’s household. So all possible in an impossible year, and the as the 2019 Driver of the Year
attendees were asked to mask up when true mission is the people in trucking.
not eating or drinking during the event. Recognizing them, commiserating with
Since a mask requirement and good them, celebrating with them, learn-
planning are only as effective as the ing from them and protecting them—
behavior of human beings, ATA staff behind the wheel or behind a mask.
added one more item to the dress code ATA President Shannon Newton
to account for the unpredictability of welcomed attendees to the first lun-
attendees: wristbands. cheon in this unusual gathering and
Upon registration, every guest named the safest professionals and
chose a colored wristband to signal to fleets. Winners included Driver of the
other attendees their comfort-level. Red Year Dave Hall of ABF Freight, and
wristbands for extra-cautious guests Safety Professional of the Year, Leslie
who took advantage of every hand sani- Stout of CalArk International. Old
tizing station. Yellow wristbands indi- Dominion Freight Line received the
cated a “proceed with caution” attitude. overall grand champion award with Blake Eddins (Eddins & Associates)
And green wristbands for those who and Al Heringer IV (Star Transportation,
LLC)
were “ready to network”.
48 Issue 5 2020 | ARKANSAS TRUCKING REPORT
AWARD RECIPIENTS
2019 DRIVER OF THE YEAR LTL DIVISION
DAVE HALL Large Carrier:
ABF Freight OLD DOMINION FREIGHT LINE, INC.
Thomasville, N.C.
2019 SAFETY PROFESSIONAL OF
THE YEAR PRIVATE CARRIER DIVISION
LESLIE STOUT Large Carrier:
CalArk International, Inc. WALMART TRANSPORTATION LLC
Bentonville, Ark.
CORPORATE FLEET SAFETY AWARDS
Grand Champion SMALL PACKAGE DIVISION
OLD DOMINION FREIGHT LINE, INC. Large Carrier:
Thomasville, N.C. FEDEX EXPRESS
Little Rock, Ark.
TRUCKLOAD-FLATBED DIVISION
Intermediate Carrier: TANK TRUCK DIVISION
LOGGINS LOGISTICS, INC. Intermediate Carrier:
CalArk International’s Leslie Stout is Solar Transport Company
named the Safety Professional of the Year Jonesboro, Ark. West Des Moines, Ill.
Large Carrier:
OAKLEY TRUCKING, INC.
North Little Rock, Ark.
TRUCKLOAD - VAN & REEFER
DIVISION
Small Carrier:
BRAY FAST FREIGHT, LLC Alan Riels accepts the Corporate Fleet
Batesville, Ark. Safety Award for Dedicated Logistics, LLC
Intermediate Carrier:
DEDICATED LOGISTICS, LLC
Crossett, Ark.
Large Carrier:
USA TRUCK, INC.
Van Buren, Ark.
Brittany Loggins accepts
the Corporate Fleet Safety Award
for Loggins Logistics during the
opening awards luncheon
Brad Heringer (Star
Transportation, LLC) was
presented a plaque for his
time as chairman of the 40
Under 40 Council
ARKANSAS TRUCKING REPORT | Issue 5 2020 49
over 19 million miles on Arkansas high-
ways with a DOT accident frequency
rate of .15 per million miles driven.
After lunch, reports were given for
ATA finances, membership, workers’
compensation, governmental affairs
and councils. Mark Morris, president
of Morris Transportation Services, was
introduced as the new chairman of
ATA’s Board of Directors. Other new
board members were also ratified:
Justin Fink of Summit Truck Group will
replace Steve Walton of Southern Tire
Mart in one of the board’s allied posi-
tions. Gabe Stephens will replace his Jamie Porter (SmartDrive Systems)
mother Vicki Jones Stephens, represent- visits with Tracy Rainey and Logan
ing C.C. Jones, Inc. Morris (Morris Transportation Services)
Arkansas Highway Police Officers
Tim Gushing and Seth Debord were Rep. Steve Womack
in attendance on Monday morning to
greet early guests and answer enforce-
ment questions.
This year’s event was made pos-
sible by 13 Gold Sponsors and 13 Silver
Sponsors. An exclusive Gold Sponsor
reception was held on Monday night
nearby at the Supply Chain Hall of
Fame Event Center.
Silver sponsors had an opportunity
to engage attendees in industry discus-
sion at Tuesday morning’s Silver Summit
breakfast, where a variety of industry
topics were on the menu. Joe Quinn (Arkansas Good
Roads Foundation) on the Vote for
During Tuesday’s luncheon, ATA Roads panel
President Shannon Newton took the
stage again to laud the leaders in the
room for their hard work over the past Michelle Hanby (Intellistop Corp.) and Sarah Sheets (ATA)
few months and to name the challenges
trucking has faced in order to keep
serving communities. Then she yielded
the spotlight to a video that traced
the industry’s heroic response to crisis
that caught the attention and praise of
citizens all over the country. Newton’s
voice narrated the headlines on the
screen and how problem-solvers mobi-
lized to keep wheels moving. She told
the story of how trucking does what it
always does — a job well done despite the
obstacles. Much like the ATA 2020 busi-
ness conference itself — a job well done
despite the obstacles. ATR
50 Issue 5 2020 | ARKANSAS TRUCKING REPORT