The tractor features Volvo Enhanced Stability Technology by Bendix and Volvo Enhanced Cruise. The rig is also equipped with the truck maker’s I-Shift automated manual transmission.

The campaign’s drivers, known as Captains, have been using the truck to transport the ATA so-called Image Trailer, a mobile presentation facility, around the nation to use in their efforts of spreading knowledge and safety information.

The trucking industry will have to wait longer for possible changes to the driver hours of service rule proposed by FMCSA.

Hours comment deadline extended

The Federal Motor Carrier Safety Administration extended the comment period to June 9 for its proposed hours of service rule and as a result will be unable to meet a court-negotiated deadline of July 26 to issue a final rule. The agency didn’t estimate a new date for a final rule.

With the extension, FMCSA made public four additional documents. The agency reopened the comment period to allow for review and discussion of the documents and FMCSA’s possible consideration of the findings in achieving a final rule.

The agency said only comments related to the four additional documents will be considered during the extension. The four studies include research on fatigue and commercial driver performance.

FMCSA also said it had to adjust the rulemaking schedule previously agreed to in litigation before the U.S. Court of Appeals for the District of Columbia Circuit (Case No. 09-1094). Under an Oct. 26, 2009, agreement among Public Citizen, other petitioners and FMCSA, the agency was to publish a final rule within 21 months of the date of the settlement agreement.

FMCSA said the extra comment period for the four additional documents will require additional time that was not envisioned in 2009 and that it will be unable to publish a final rule by the previously agreed-upon date of July 26.

To comment on the four additional documents, go to www.regulations.gov; the docket number is FMCSA-2004-19608.

— Staff reports

Lawmakers protest cross-border plan

At least 35 federal lawmakers have signed a draft of a letter to Transportation Secretary Ray LaHood protesting the DOT proposal for a cross-border trucking program with Mexico.

Written by Congressmen Duncan Hunter (R-Calif.) and Daniel Lipinski (D-Ill.), the draft was signed by 35 to 40 congressional members, said Hunter spokesman Joe Kasper.

The plan is “bad for American truckers and the entire commercial trucking industry,” Hunter wrote.

“The proposal is an undue burden on taxpayers, including buying and monitoring electronic on-board recorders the department will require for Mexican trucks involved in the program,” he wrote. “The cross-border trucking program is a straight handout to Mexico at the expense of American jobs, taxpayer dollars and security,” he stated.

The agency has said it is funding EOBRs to ensure it will own and control data gathered by the devices. Over a three-year period, the department estimated this program will cost $2.5 million, which includes $750,000 during the first full year of the program.

The previous program, which Congress ended two years ago, required GPS units only, which cost the DOT $711,640.

The legislators said Mexico lacks safety standards equivalent to the United States. Also, Mexico’s increased crime in recent years would negatively affect border security.

— Jill Dunn

SHORT HAULS

CLASS 8 truck orders in April were about 38,000, according to analysts FTR Associates and ACT Research. FTR said April orders were 32 percent higher than the March figure, while ACT said the April total increased 158 percent over a year earlier and was the highest monthly total since March 2006.

TRUCK FREIGHT as measured by the American Trucking Associations’ seasonally adjusted For-Hire Truck Tonnage Index rose 1.7 percent in March after falling a revised 2.7 percent in February. The March index was 6.3 percent higher than a year earlier.

DIESEL FUEL PRICES will average $3.89 a gallon this year and $3.93 in 2012, the U.S. Department of Energy forecast in May. Those projections are down 9 cents and 14 cents, respectively, from the previous month’s forecast. Diesel averaged $2.99 in 2010.

Bill would allow truck safety tax credit

A House bill has been re-introduced that would allow truckers a tax credit for some advanced safety systems.

The Commercial Motor Vehicle Advanced Safety Technology Tax would provide a tax incentive for brake stroke monitoring, vehicle stability, lane departure warning and collision warning or mitigation systems.

It would create a tax credit for 50 percent of the cost of the system up to $1,500 and allow a $3,500 per vehicle maximum tax credit. Any one company could receive an annual maximum credit of $350,000.

The Motor & Equipment Manufacturers Association and Heavy Duty Manufacturers Association support the act, H.R. 1706. Reps. Geoff Davis (R-Ky.) and Mike Thompson (D-Calif.) introduced the bill, which was referred to the House Committee on Ways and Means.

Last year, the House and Senate each introduced the legislation, which was referred to committees.

— Jill Dunn

SHORT HAULS

USED CLASS 8 TRUCK prices have surged in the last 15 months, with the March average price up 6 percent from February, ACT Research Co. reported. ACT said the average used truck price in March was $38,516 for sales in all channels, including auctions and retail and wholesale transactions. In March 2010, the average price was $27,923, and in February the average was $36,195.

TRUCKERS WILL PAY $20 instead of $16.25 in cash tolls to drive a five-axle truck across tolled Delaware River bridges between Pennsylvania and New Jersey.The Delaware River Joint Toll Bridge Commission approved the increase for its seven toll bridges, the first since 2007. The hike is to pay debt, continue capital improvements and offset low truck revenue collections from 2008 and 2009.

WILLIE’S PLACE, the former truck stop in Carl’s Corner, Texas, has reopened as a Petro Stopping Place travel center. TravelCenters of America bought the Dallas-area property, which included Willie Nelson as an investor, March 1, after it was posted for foreclosure. Willie’s Place opened in 2008.

FMCSA issues CDL amendments

The Federal Motor Carrier Safety Administration issued its final rule amending the commercial driver’s license knowledge and skills testing standards and establishing new minimum federal standards for states to issue a commercial learner’s permit (CLP).

The final rule requires a permit holder meet virtually the same requirements as those for a license holder, including driver disqualification penalties. The rule also specifically prohibits a motor carrier from using a driver who does not hold a current and appropriate permit or CDL to operate a commercial motor vehicle.

The final rule implements relevant sections of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) and the Security and Accountability For Every Port Act of 2006.

FMCSA’s final rule on driver testing and standards requires a commercial license permit holder to meet virtually the same requirements as those for a license holder.

Successful completion of a knowledge test, currently a prerequisite for the CDL, now will be required for a CLP. The rule requires states to use driver and examiner reference materials, state testing questions and exercises, and state testing methodologies that FMCSA has preapproved. It prohibits use of foreign language interpreters in the administration of the knowledge and skills tests to reduce the potential for fraud.

The final rule requires each applicant obtain a CLP and hold it for at least 14 days before applying for a CDL. It establishes a minimum age of 18 for a permit, which must be a separate document from the CDL, tamperproof and include the same information as the CDL. The only endorsements allowed on the CLP are a restricted passenger endorsement, a school bus endorsement and a tank vehicle endorsement.

In addition, the final rule strengthens the legal presence required and increases the documentation required for permit and CDL applicants to demonstrate their legal presence in the United States. The rule also addresses applicants who wish to attend a driver training school in a state other than the applicant’s state of domicile; states are required to recognize permits issued by other states for training purposes.

FMCSA’s final rule is effective July 9. States must comply by July 8, 2014. To read the final rule, go to www.regulations.gov; the docket number is FMCSA-2007-27659.

— Staff reports

SHORT HAULS

THE OUTLOOK for shippers declined in April, based on FTR Associates’ Shippers’ Condition Index. The index fell to -11.4, reflecting tightening capacity and accelerating transport costs. Readings below zero indicate an unfavorable shipping environment.

MANUFACTURING activity expanded in April for the 21st consecutive month, and the overall economy grew for the 23rd consecutive month, according to the Institute for Supply Management’s latest Manufacturing ISM Report on Business.

TRUCKING JOBS in April grew by 4,500 positions as part of 244,000 nonfarm jobs added on a seasonally adjusted basis, according to preliminary estimates from the U.S. Department of Labor’s Bureau of Labor Statistics. Compared to April 2010, the number of jobs in for-hire trucking was up 41,600, or 3.4 percent.

SURFACE TRADE between the United States and Canada and Mexico rose 12 percent to $66.5 billion in February from February 2010, reported the Bureau of Transportation Statistics of the U.S. Department of Transportation.

California bill targets owner-operators

California’s Assembly is considering legislation to require truckers working ports to be classified as employees.

If the Assembly passes that bill, AB 950, it will go to the Senate. Democrat Assembly Speaker John Perez sponsored the bill, which would, in effect, ban owner-operators from working state ports.

The Assembly’s labor and employment committee voted 5-1 to pass the measure on May 4.

A California bill would essentially do away with owner-operators who work ports by classifying them as employees.

The Assembly’s analysis of the bill noted that many organizations have voiced opinions on the bill, with trucking and business organizations opposing it and labor organizations backing it.

The legislation is “the first step to eliminating independent owner-operators throughout the trucking industry,” wrote the California Trucking Association. “Today, it is the ports. Tomorrow it will be agriculture, construction, and over the road.”

Bill supporters say owner-operators cannot afford to upgrade and maintain their vehicles to California standards and that the bill would result in owner-operators having access to health insurance through trucking company employers.

In 2005, the California Legislature approved a bill, sponsored by the Teamsters Public Affairs Council. It would have utilized the state doctrine of federal anti-trust law to authorize port owner-operator drivers to organize collectively. Former Gov. Arnold Schwarzenegger vetoed the bill because he said it could violate federal anti-trust law.

The American Trucking Associations has appealed a lower court’s ruling in favor of the Port of Los Angeles’ requirement that port truckers be carrier employees. Oral arguments will begin June 10 in the U.S. Court of Appeals for the 9th Circuit.

Ports nationwide have lobbied to replicate the Los Angeles port plan.

— Jill Dunn

SHORT HAULS

THREE HOUSEHOLD GOODS moving companies face fines of $25,000 each after a Federal Motor Carrier Safety Administration enforcement sweep in March in nine cities. The companies are Guardian Moving & Storage of Los Angeles, Lightning Van Lines Inc. of San Leandro, Calif. and Viking Moving and Storage Inc. of Oakland, Calif.

U.S. Xpress driver wins a Freightliner

Scot Hays, a driver with more than 17 years of experience with U.S. Xpress Enterprises, received a 2007 Freightliner truck after being named the first grand prize winner of the company’s Idle Reduction Sweepstakes.

Hays reduced his idling to about 5 percent during the first quarter to qualify for the prize drawing.

Hays was chosen in a random drawing from among 150 top qualifiers in the contest. The company will make payments on the truck for two years, and Hays has agreed to become an independent contractor leased to the carrier during that period.

“This is the greatest thing that has happened in my career,” said Hays, a member the U.S. Xpress Million Miler Safe Driving Club. “I was blown away when I heard my name called as the winner of the truck. I have talked to several contractors over the years here, and I know that I am going to have the support to be successful. I can’t wait to get started.”

U.S. Xpress President John White said all the top qualifiers received cash prizes for their efforts during the contest, which will be repeated quarterly. “Through our Idle Reduction Sweepstakes, U.S. Xpress has been able to create an additional focus on cutting down engine idle which also offered a valuable business opportunity for our drivers,” he said.

— Staff reports

Groups debate bills for heavier trucks

Teamsters General President Jim Hoffa joined Sen. Frank Lautenberg (D-N.J.), Rep. James McGovern (D-Mass.), safety advocates and family members of highway accident victims May 3 to endorse the Safe Highways and Infrastructure Preservation Act. The legislation would restrict the size and weight of commercial trucks on U.S. highways.

SHIPA also would extend the freeze on truck size and weight limits on the interstate system to also apply to the National Highway System. The bill’s supporters, which include the Association of American Railroads, argue that large trucks are more dangerous to drive and damage highways and bridges and that heavier trucks will only accelerate highway and bridge wear and tear.

The Teamsters point to a recent nationwide poll that found that 89 percent of the general public strongly opposes larger trucks. The union also notes that half of the nation’s bridges are more than 40 years old, with one in four structurally deficient or functionally obsolete.

The American Trucking Associations, which supports competing legislation that would allow states to increase weight limits on interstate highways, responded. “In the two years since ATA unveiled its 18-point safety agenda, a comprehensive approach to addressing both primary and secondary causes of highway crashes, these alleged ‘safety’ groups have not made a serious proposal to address trucking safety,” said Bill Graves, ATA president and chief executive officer. “Their fix is to arbitrarily cut working hours to advance labor’s agenda, and further restrict truck size and weight to advance the railroad’s agenda.”

The Senate Safe and Efficient Transportation Act of 2011 (S. 747) would give states the option to allow tractor-trailers weighing up to 97,000 pounds access to its interstate highways, provided owners equip trucks with a sixth axle to preserve braking distances and pavement wear patterns, and agree to pay a supplemental user fee. There’s an identical House bill, H.R. 763.

— Staff reports

States eye fuel price gouging

Kentucky’s attorney general has accused Marathon Petroleum Co. of fuel price gouging, while officials in other states warily eye the issue.

Kentucky AG Jack Conway asked for a temporary injunction against Marathon May 13, alleging the company illegally raised wholesale fuel prices during an emergency. The pleading filed in Franklin Circuit Court accuses company officials of violating Kentucky’s price-gouging statute during a state of emergency declared April 26 because of flooding.

Conway asked the court to require Marathon to lower wholesale prices in Kentucky to the price charged on April 25. His filing was included in an ongoing case against the company and its subsidiary, Speedway, for alleged price-gouging violations following Hurricanes Katrina and Rita in 2005.

The law permits suppliers to increase prices only if there has been a hike in the supplier’s costs, but the company’s costs do not justify the price increases, Conway said.

In 2008, his office began investigating how wholesale fuel prices affected Louisville market prices. Marathon’s 1996 acquisition of Ashland Oil reduced fuel market competition in Kentucky, he said. Conway referred that antitrust investigation to the federal Oil and Gas Price Fraud Working Group, which investigates allegations of fraud and market manipulation in the oil and petroleum industry.

— Jill Dunn

Road Team driver goes to White House

Ralph Garcia, a member of America’s Road Team, told Obama administration officials that the government should encourage job-seekers to enter trucking. His appearance at the White House forum was part of National Transportation Week.

Garcia, a driver with ABF Freight System, was one of 20 transportation professionals who participated in the May 16 roundtable that focused on how best to promote careers in transportation.

“In my 30 years as a driver, I’ve seen so much of this great country that I wouldn’t have had the opportunity to experience,” said Garcia, a native of New Mexico.

— Staff reports

Jason’s Law reintroduced

As states continue closing rest areas because of budget shortfalls, Congress is reconsidering Jason’s Law to increase access to truck parking.

Rep. Paul Tonko (D-N.Y.) introduced H.R. 1803 on May 11, co-sponsored by Rep. Erik Paulsen (R-Minn.). Tonko had introduced similar legislation during the previous Congressional session.

Jason’s Law would provide $20 million annually over six years for truck parking upgrades on the National Highway System to local governments and private entities.

The American Trucking Associations said the bill would fund initiatives that could include building new parking, improvements to existing commercial and non-commercial parking, and technology to track open parking spaces.

The legislation is named for New York trucker Jason Rivenburg, murdered during a 2009 robbery attempt as he sat in his truck at an abandoned gas station in South Carolina.

Tonko and Jason’s widow, Hope Rivenburg, were joined at a May 11 news conference by representatives of the Owner-Operator Independent Drivers Association, ATA, Commercial Vehicle Safety Alliance, American Moving & Storage Association and NATSO, the truck stop trade association.

Mary Phillips, ATA senior legislative affairs vice president, said truckers should not have to park on Interstate shoulders, ramps and other locations, placing themselves and other drivers at risk.

— Staff reports

Spot market freight falls during April

TransCore’s North American Freight Index measuring spot market truckload freight volume declined 14 percent in April from March, but was 12 percent higher than in April 2010.

Freight volumes in the South and Midwest were hampered by extreme weather conditions during April.

TransCore said the month-to-month decline from March to April was the first time in 15 years when spot market freight volume dropped during that period. From March to April, dry van capacity increased 6.7 percent and freight availability declined 9.5 percent.

Refrigerated capacity increased 3.4 percent, while freight availability slipped 5.1 percent. Flatbed capacity and freight volumes dipped, 2.6 percent and 9.7 percent, respectively.

TransCore’s monthly North American Freight Index measures trucking freight movements on the spot market.

— Staff reports

Survey: Cell phone link to crashes

A survey shows that 32 percent of companies have knowledge or evidence of on-the-job crashes that resulted from distractions caused by employees using cell phones while driving, software maker ZoomSafer says.

The survey polled 500 business managers in North America and was designed to gauge corporate attitudes and best practices pertaining to distracted driving.

The survey shows 62 percent of companies have written policies prohibiting employees from using a mobile phone while driving on the job. The survey also reveals that while many companies have written cell phone driving policies, only 53 percent try to enforce compliance.

Among companies that do enforce compliance, the survey found 61 percent rely on post-incident disciplinary measures, and only 2 percent use technology to proactively measure and manage employee compliance.

“The fact that so many companies are telling employees to put the phone down while driving is encouraging from a policy perspective; however, from a practical perspective, it’s simply not enough to change behavior,” said Matt Howard, CEO of ZoomSafer, which creates software to prevent distracted driving. “To truly change behavior and fully protect themselves from liability, companies must actively measure and enforce employee compliance.”

— Staff reports

Truck insurance broker charged

A California insurance broker was scheduled for arraignment June 1 in San Bernardino County Superior Court on charges of swindling truckers.

Paul Daniel Conejos, 29, did business as TATEMAS Truck Insurance Services and Royal Insurance Group Services Inc. in San Bernardino and Riverside counties.

He allegedly collected premium payments from long-distance trucking companies, did not remit payments to insurance companies, but issued fraudulent insurance certificates, according to the California Insurance Commission.

Conejos pleaded not guilty to four felony counts of grand theft, three felony counts of forgery, two felony counts of theft by false pretense and three misdemeanor theft counts, according to court records. Client losses are about $38,000 for what is referred to as premium diversion from April 2008 to March 2010.

The commission is considering disciplinary action against Cornejo’s license to sell insurance, it said.

Truckers who suspect fraud should report it to the insurance commission for the state where the agent or broker is licensed, said Frank Scafidi of the National Insurance Crime Bureau.

— Jill Dunn

DOT awards grants for truck parking

The U.S. Department of Transportation awarded $4.5 million to Michigan’s I-94 Truck Parking and Information Management System and more than $2 million to Minnesota’s Comprehensive System for Assessing Truck Parking Availability.

Both systems will deliver real-time information on parking availability through intelligent transportation systems.

The Federal Highway Administration is providing the grants under the Truck Parking Facilities Discretionary Grants Program, which helps improve safety on interstates by promoting projects that allow trucks to park safely in areas away from moving traffic, instead of alongside roads.

— Staff reports

HIGHWAY HAPPENINGS

CALIFORNIA. Truckers’ one-year exemption from last year’s toll hike will end July 1 on San Francisco’s toll bridges. The Bay Area Toll Authority said the two-phase toll increase for multi-axle vehicles takes effect on July 1 and July 1, 2012. Cash tolls for five-axle vehicles will climb to $18 from the current $11.25. A year later the toll will be $5 times the number of axles.

DELAWARE. The state has opened an electric shorepower truck parking area at the Smyrna rest area on U.S. Route 13. An automated system allows truckers to use a Smyrna Rest Area credit card to access the service at the 24-space area. They can pay $20 for a reusable window adapter, which includes the credit card with eight hours of usage time. Additional hours can be purchased for $2.50 an hour.

FLORIDA. The governor was expected to sign a bill that would end the practice of local ports issuing access cards that duplicate the federal identification card.

GEORGIA. State law enforcement is targeting aggressive car and truck drivers on State Highway 400 in Fulton and Forsyth counties through July. The targeted corridor is from exit 5 (Abernathy Road) to exit 16 (Pilgrim Mill Road).

INDIANA. The state becomes the 32nd to prohibit texting while driving. Effective July 1, violators face a maximum fine of $500.

MISSOURI. Watch for I-70 construction projects in the Kansas City area through most of the summer. Projects include a third lane in each direction of I-70 under I-435, rebuilding I-70 bridges and resurfacing of I-70 between Pittman Road and I-470. State Department of Transportation requires two lanes open on I-70 during construction.

NEW YORK. The State Supreme Court’s Appellate Division said the state didn’t have authority to require retrofits on privately owned trucks, as had been mandated by the state’s Diesel Emissions Reduction Act.

NORTH DAKOTA. Bismarck residents have voted to extend the state’s smoking ban to truck stops, bars and tobacco stores. The state already prohibited indoor smoking in businesses and public places.

TEXAS. A bill is close to passage that would allow heavy-duty trucks with 2008 and newer EPA-certified engines to idle. Current state law restricts idling to five minutes an hour in many areas from April to October. Meanwhile, the state Commission on Environmental Quality is scheduled to meet June 22 to consider amending its regulation to exempt large trucks from idling restrictions during driver rest periods.

UTAH. The state is into the second year of the 24-mile reconstruction project on I-15 south of Salt Lake City. The project will add two lanes in each direction, add or rebuild 63 bridges and extend an express lane the length of the project. The work is on schedule for a December 2012 deadline.

ATA board votes against detention time regs

The American Trucking Associations Board of Directors on May 18 called on policymakers to respect contracts between carriers and shippers and voted to oppose efforts at regulating detention time.

“ATA and its members value the time of our drivers,” said Bill Graves, ATA president and chief executive officer. “However, federal intervention into this area would have significant impacts on the contractual agreements between carriers and shippers.”

ATA Chairman Barbara Windsor, president and CEO of New Market, Md.-based Hahn Transportation, said the ability of carriers to negotiate rates, routes and service with shippers is important. “Federal regulation in this area would directly affect shipping rates and would significantly change the playing field for carriers and shippers,” she said.

“No carrier wants to see our drivers’ time wasted,” said ATA First Vice Chairman Dan England, chairman and president of Salt Lake City-based C.R. England Inc. “However, this is not an issue that can be handled with a ‘one-size-fits-all’ regulation and as a result is best addressed in contractual agreements between carriers and shippers.”

— Staff reports

Rest areas closing

Rest areas are closing nationwide, usually because of budget shortfalls. Missouri, however, is converting some rest areas to truck parking only.

The state’s I-70 Mineola rest areas will be used for truck parking this summer. Buildings will be removed, restroom facilities will be installed and 17 new truck parking spaces will result from the change.

South Carolina is closing I-85 Northbound Rest Area at mile marker 88 on June 3. The annual savings will be about $220,000.

On Interstate 24, Illinois shut the Fort Massac Rest Area for six weeks for roof repairs and Illinois 164 Oquawka Rest Area will close Nov. 8 for improvements. Also, the I-57 Rend Lake Rest Area, southbound side, is closed and the I-74 KrisdalaBaka Rest Area near Woodhull was scheduled to be closed until July 1.

North Dakota has closed its Medina rest area on westbound I-94 because water is over the entrance ramp.

— Jill Dunn

“It was an honor to be invited to the White House to promote something I believe in so strongly – the importance of the trucking industry,” Garcia, a native of Rio Rancho, N.M., said following the forum.

Garcia was one of 20 transportation professionals who participated in the May 16 White House “Champions of Change” roundtable that focused on how best to promote careers in transportation.

“There’s no better way to earn a living than behind the wheel as a professional driver,” Garcia said. “In my 30 years as a driver, I’ve seen so much of this great country that I wouldn’t have had the opportunity to experience.”

The government, Garcia said, could do more to encourage Americans to explore a career, or remain, in the trucking industry.

These 18 drivers, with a collective 483 years behind the wheel and over 36.5 million accident-free miles, were selected from 34 finalists. The competition included a review of trucking industry expertise and a demonstration of their communication skills, combined with their community service and lifetime safety records.

“The America’s Road Team puts an impressive face behind the wheel,” said ATA President and CEO Bill Graves. “These ambassadors to the industry have remarkable safe driving records and an unmatched enthusiasm for their job and for the industry.”

ATA created America’s Road Team in 1986. It continues today with the support of Volvo Trucks North America. “Volvo Trucks congratulates the highly skilled drivers chosen to serve as trucking industry ambassadors in 2011 and 2012,” said Ron Huibers, senior vice president of sales and marketing for Volvo Trucks North America.
 
While maintaining their jobs as full-time professional drivers, the new America’s Road Team Captains will travel the country speaking on behalf of the trucking industry to the community, news media and public officials.

To be nominated to serve as an America’s Road Team Captain, the candidates must be employed as a company driver or leased owner-operator by a full-dues-paying member of ATA. Each nominee must have an excellent safety record and demonstrate an ability to communicate a commitment to safety and professionalism.

The captains are Willie Atkinson and Danny Fuller of Con-way Freight; Gary G. Babbitt of Central Freight Lines; Joe Allen Boyd and Kenny Lowry of Wal-Mart Transportation; David Boyer, Nate McCarty and Tim McElwaney of ABF Freight System; Randall Dee Briggs and Alphonso Lewis of YRC; Samuel Douglas Lee of Old Dominion Freight Line; Dennis Martin and Roger L. Nicholson UPS Freight; J.W. Ray of Werner Enterprises; Dion Saiz and Brooks Washburn of FedEx Freight; Jeffrey Wade of Southeastern Freight Line; and Robert L. Weller of Hahn Transportation.

For more information go to www.americasroadteam.com. 

If used wisely, credit and debit cards are great tools. Know the benefits and pitfalls of both to help your business run more smoothly.

When owner-operator Mike Greenwell, leased to D&R Transport of Branson, Mo., had a heart attack that sidelined him for five months, he says, he took out a credit card for the first time. “I needed it to live on,” he says, until he could get back on the road. Since then, the debt he created has been a hardship.

As Greenwell and many other owner-operators have learned, a credit card can serve as a lifeline or financial drain, depending on how it is used. For some operators, a simple fuel card or other debit card works better, allowing no debt and thereby creating no interest expenses.

Almost two-thirds of owner-operators use a credit card for business, according to Overdrive research. If the account is in the operator’s business name, it is considered a business credit card. If it’s taken out in the operator’s personal name, more than likely it’s a standard consumer card. It’s up to the operator to use each accordingly for business or personal spending, which is best for accounting purposes and in the event of a tax audit.

An incorporated owner-operator business, says Angie Bruskotter of owner-operator financial services firm ATBS, should always use a business account for business charges and a personal account for non-business purchases.

“If you’re incorporated and you commingle business and personal funds,” she says, you risk losing the personal liability protection that is incorporation’s chief benefit.

But for the majority of owner-operators, as self-employed sole proprietors, the lines between business and personal lives are blurred, which is often reflected in the use of credit.

Mt. Pleasant, S.C.-based Paul Todorovich, today a company driver, never felt the need to incorporate his single-truck business when he was an owner-operator leased to Landstar and a member of America’s Road Team. Operating as a sole proprietor, he held two personal credit cards throughout most of the decades he ran.

“I never did get a separate credit card for my business,” he says. “And I know a lot of people talk about not commingling funds, but for me it was very simple. I’m single. It’s all coming out of and going into the same pocket.”

Fleet fuel cards for owner-operators leased to larger motor carriers, and trucking-specific fuel cards like those offered by Comdata for independents, provide accounting benefits and often a 6- to 7-cent-a-gallon price discount at truck stops. That’s because these cards are debit cards, so they qualify for the cash discount. The cards deduct fuel purchases from settlements or from independents’ accounts. One benefit of this is that it eliminates the risk of paying interest on borrowed money, as with credit cards.

An owner-operator leased to a large fleet also may get larger discounts depending on what the fleet has negotiated with the fuel stop.

If your credit score is 720 or better, instead of using fuel cards to buy fuel, you could qualify for a credit card with a generous benefits program. The benefits you gain can add up to more than the cash price discount of $1,200 to $1,400 a year available with a fuel card.

Small-business credit cards, because they are not covered under the 2009 Credit Card Act, lack the act’s consumer protections and therefore offer more profit potential for credit card companies. So as the companies aggressively market those cards, they’re offering big benefits to small businesses with excellent credit, from cash-back schemes to travel miles and points programs.

Capital One’s Business Platinum series offers businesses with credit at least equivalent to a 760 score either 1 percent cash back on all purchases or 3 travel miles for every dollar spent in a particular category. The cash-back card would return $600 yearly on $60,000 in fuel purchases using the example above. Choosing the miles version of the card, however, would net an operator 180,000 travel miles, worth a reward potential of up to $1,800 worth in airline tickets.

Such rewards are at best an ancillary benefit to an otherwise sound approach to cash flow. When using credit cards to charge for fuel and maintenance expenses, paying bills off before interest accrues is key. Otherwise you run the risk of digging yourself a deep costly hole.

“Those charging up the credit card stopping at the chrome shop ­— when business gets rough and times get tough … those are the folks who’ve exited the business.” — Driver and ex-owner-operator Paul Todorovich

In December 2008, California-based Marten Transport leased owner-operator Thomas Blomberg jumped at an offer of a one-year no-interest introductory period on a $26,000 credit line with a Bank of America-issued card. He needed the credit for an in-frame on his 2003 Freightliner Columbia. Over the next year, as his miles decreased with the reduction in long-haul freight, he was unable to pay the nearly $20,000 bill off before interest began accruing.

“I’m in a big hole with Bank of America,” he says. “I’ll be paying for this for years and years on the interest.”

As an owner-operator, Todorovich “used a credit card only when I was far away from home and needed a repair.” He’d spend the following 30 days running as hard as he could to pay the bill before interest charges kicked in.

He hasn’t paid a dime of interest since 2004, when his previous truck was paid off, he says. “If I don’t have the money, I don’t buy it.”

Even prior to the recession, 10 percent of all owner-operators, according to Overdrive research, considered balances on their credit cards to be too high and difficult to manage.

Greenwell estimates he charged $3,000 on his first credit card after his heart attack. Making only the minimum payment once he got back on the road, he found his balance barely changed from month to month because of a high interest rate. “I got the rate reduced to 7 percent when I closed the account, finally,” he says. “Now I’m paying about $150 a month” toward gaining zero balance.

He adds, “I don’t ever want another credit card. If you can’t pay cash for what you’ve got to buy, you don’t need to have it.”

Prepaid debit cards not just for fuel

Comdata and similar fuel cards are available to independents looking to combine maximum fuel discounts with the accounting aspects of a debit card tied to a traditional bank account.

Howard Salmon finds the TCH fuel card useful.

For single-truck and other small fleets, says Comdata Product Executive Cory Sickles, the Comdata discount fuel network can be opted into for discounts over the cash price. “You will not pay the credit card price at a truck stop in our network,” he says.

As part of Mastercard’s Maestro point-of-sale network, all Comdata cards are useable anywhere the Maestro logo appears. “That allows [cardholders] to go to Target or Walmart,” says Sickles, as well as “anyone that would accept some kind of point-of-sale debit, ATMs.”

A similar product is the TCH fuel card. Independent Howard Salmon uses it for receiving payment from brokers, as well as debiting fuel purchases directly from it. Another is the FleetOne Truckers Advantage card for Owner-Operator Independent Drivers Association members. Other than the fuel discounts, says Salmon, the TCH card carries no incentive, such as a cash-back program. If there were a debit fuel card with such a program, he says, “I’d have that for sure.”

Though fuel cards offer various discounts, such as for lodging and maintenance, to date none appears to offer cash-back or travel-reward programs like a credit card, though that may be coming. Many banks now offer debit card reward programs.

Fuel card resources

Comdata:

www.comdata.com

FleetOne Truckers Advantage:

www.truckersadvantage.com

TCH: www.tch.com

Bend plastic to your needs

Bankrate.com offers these tips for using credit cards in your business:

BUY ONLY WHAT’S NEEDED. Take a hard line on defining “need” and avoid using credit for things – like that flashy 22-inch chrome bumper – that are not essential for the business.

SPEND MONEY TO MAKE MONEY. Purchases should be “helping you make more money than you originally spent,” notes the website. If you can’t expect to bring in enough to cover the expense, don’t buy it. With certain expenditures, like wide single tires or an auxiliary power unit, the return on investment might take months, even years. Track your fuel economy and other performance indicators to determine the speed and amount of the payback.

PAY MORE THAN THE MINIMUM. If you can’t pay off monthly balances entirely, “pay as much down on your credit card balance as possible without hurting your business nest egg.” Paying at least twice the minimum should ensure your balance falls steadily.

BREAK THE HABIT. Once you’re established, “wean off the business credit card,” which can be as habit-forming as nicotine. Invest saved cash in a maintenance fund.

Comparing card benefits

FleetOne Truckers Advantage fuel card

Interest rate N/A, operates like a debit account

Benefits 6-7-cent/gal. cash price discount in-network

+ 2-cent/gal. additional discount with rebates;

access to parts/maintenance savings programs

Potential disadvantage Transaction fees for out-of-network fuel purchases

Yearly potential benefit from fuel purchases $1,700 in fuel savings

Annual fee OOIDA membership: $45; $25 sign-up fee unless done in person at one of three

industry events

Website to apply www.truckersadvantage.com

Capital One Business Platinum

Preferred No-Hassle Miles card

Interest rate 0% six-month intro rate, 14.99% and up

thereafter, variable

Benefit features Points per dollar spent redeemable in travel services (air, lodging, rental vehicles)

Potential disadvantage Low-limit, high-rate card; excellent credit needed

Yearly potential benefit from fuel purchases $1,800 maximum in travel services

Annual fee None

Website to apply www.capitalone.com/smallbusinesscards

Miles by Discover consumer card

Interest rate 0% six-month intro rate, 10.99% and up thereafter, variable

Benefit features Points per dollar spent redeemable in travel services (air, lodging, rental vehicles) and restaurant purchases

Potential disadvantage Benefits unlikely to exceed fuel-card cash price discount benefit

Yearly potential benefit from fuel purchases $600 or more in travel services (air, lodging,

rental vehicles)

Annual fee None

Website to apply www.discovercard.com/miles

Chase Ink Cash business card

Interest rate Six-month intro 0% rate, 13.24-19.99%

variable thereafter

Benefit features 3% cash back on up to $2,000 in qualified

purchases each billing cycle, including fuel;

1% back on all others; $100 intro cash-back offer

Potential disadvantage Low-limit, high-rate card; requires good credit

Yearly potential benefit from fuel purchases $1,180 in cash-back rewards first year,

$1,080 thereafter

Annual fee None

Website to apply www.chasecreditcards.com,

click “Business Credit Cards”

Many credit cards have programs that reward use of the card with merchandise, travel credits or other incentives. For business use, cash-back rewards are usually the most measurable and cost-effective. Bankrate.com offers comparisons of current rewards and other terms for leading cards. Note that high annual fees and interest rates can wipe out the value of rewards.

Credit’s Full Cost

If you’re like the 40 percent of owner-operators with an outstanding balance and, according to Overdrive research, owe upwards of $5,000 on at least one card, you can use Bankrate’s credit card payment calculator to see the true cost of making only the minimum payment. If you’re surprised at how high it is, let that motivate you to get out of debt as quickly as possible. Visit Bankrate.com, and search “Credit card payment calculator.”

Every two years, ATA searches for professional truck drivers, both men and women, who are willing to take time away from the cab to serve as a Road Team Captain. To nominate a professional truck driver, read the eligibility requirements and fill out the nomination form found at www.americasroadteam.com.

As Road Team Captains, professional drivers take a few days each month to meet with the motoring public, news media, students, transportation officials and government leaders to demonstrate trucking’s commitment to safety. In addition, Captains appear at events ranging from driver safety meetings to National Truck Driving Championships to reinforce the importance of safety and professionalism.

There are numerous routes traveling across the country, with volunteers meeting the convoys at state and national cemeteries for ceremonies and to help lay wreaths. A special convoy will arrive in Arlington National Cemetery on Saturday, Dec. 12, with a presentation beginning at 8:30 a.m. ET and wreath laying beginning at 9 a.m. ET. You can follow the convoy here. A complete list of the routes can be seen here.

“In organizing the transportation and logistics for the wreath deliveries, I was touched with how many trucking companies and professional drivers volunteered to assist in this remembrance,” says Barry Pottle of Pottles Transportation. “We have trucks delivering wreaths all across the country – it really demonstrates just how big-hearted the trucking industry is.”

Share the Road professional drivers Kurt Pedersen (Con-way Freight) and Ben Saiz (ABF Freight System) are running routes to South Carolina, Georgia and Florida. America’s Road Team Captain John Foran (UPS) will deliver to cemeteries in New Hampshire and Vermont.