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March 2010 Volume 21, Issue 3
Delivering daily news to Canada’s trucking industry at www.trucknews.com Rules changed for Sask. LCVs
REGINA, Sask. – Beginning in ear- ly February,Saskatchewan has made changes that have loosened the reg- ulatory chain on long combination vehicles (LCVs) and improved har- monization with Alberta. Effective Feb. 1, turnpike dou- bles, triple-trailers and Queen City Triples can be operated at 100 km/h, up from 90 km/h, on designated four-lane highways. LCV operators no longer need to monitor speeds using tacographs or other devices. Trucking compa- nies are still required to make a “reasonable effort” to monitor adverse weather along transport routes. Later this year, B-train gross vehi- cle weights will be increased to 63,500 kgs from their current cap of 62,500 kgs. The changes came as the Saskatchewan Ministry of Highways and Infrastructure shifted some of its regulatory components to Saskatchewan Government Insur- ance and also as a result of a recent- ly-signed memorandum of under- standing with the province of BACK ON TRACK: The National Professional Truck Driving Championships, derailed last year by a slumping economy, are already being planned by an organizing committee in Manitoba who assure the competition will be held. Alberta. The Saskatchewan Truck- ing Association (STA) applauded the changes. “Our industry’s relationship with the ministry continues to grow,” said Start your engines! STA president,Glen Ertell.“There’s a constructive dialogue going on here and these changes show they’re National Driving Championships to return after one-year hiatus listening.” The changes were also lauded by By Jim Bray are back on track for 2010. say it’s full speed ahead anyway, the Alberta Motor Transport Associ- WINNIPEG, Man. – After an And while the financial world with things looking good so far. ation and Manitoba Trucking Asso- economy-inflicted hiatus of a still isn’t trucking along at a speed “We started getting the ball ciation. The western provinces are year, the National Professional most people would like, the 2010 rolling on this even before we seeking to harmonize LCV regula- Truck Driving Championships event’s organizers in Winnipeg Continued on page 6 tions across the Prairies. ■ There’s a new engine in town InsideInside This Issue... Mark Dalton O/O • Trucks for sale: Is being an owner/operator in your future? If so, the time may be right to consider buying a good used truck. Prices have never been better, some experts say. Page 8
• Border battles: The owner of the Ambassador Bridge has ramped up his battle against a government-controlled second crossing. Page 10
• Over-the-road: A professional over-the-road driver shares his perspectives in a new column. Page 14
See page 16 • End of an era?: An outspoken Navistar executive declares the end of the ‘long and tall’ truck era. Page 22 Page 28
Reach us at our Western Canada news bureau To view list of advertisers see pg. 27 E-mail Jim Bray at [email protected] or call 403-453-5558
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March 2010 TRUCK WEST Page 3 group is just asking guys to respect Down in the dumps one another out there and demon- strate a level of professionalism and March 2010, Volume 21, Issue 3 I wrote in a recent blog on courtesy that seems to have been Canada Post Canadian Publications Editorial Mail Sales Product Agreement No. 40069240 Trucknews.com that it seems more waning in recent years. “Return Postage Guaranteed” difficult than ever to make a decent Comment There is a precedent for this. The 12 Concorde Pl., Suite 800, Toronto, Ont., M3C 4J2 Sales: 416-510-6892 / Editorial: 416-510-6896 living driving dump truck. Truckers Association of Nova Scotia Fax: 416-510-5143 The observation stems from the James (TANS) is a pretty effective little Truck West, USPS 017-178 is published monthly by growing number of calls I field from Menzies industry group out east that looks BIG Magazines L.P., a div. of Glacier BIG Holdings Company Ltd., a leading Canadian information dump truck operators who say after its members and has even company with interests in daily and community they’ve been forced to park or sell convinced government to agree that newspapers and B-2-B information services. US office of publication: 2424 Niagara Falls Blvd, their rigs since rates have been driv- my there has cooled off, the overca- a certain percentage of trucks on Niagara Falls, NY 14304-5709. Periodicals Postage en down to unsustainable levels. pacity there is as bad as in other any taxpayer-funded job site will be- Paid at Niagara Falls, NY. US postmaster: Send address changes to Truck West, PO Box 1118, There’s little I can do for these folks, provinces and, of course, cue the long to independents. Niagara Falls, NY 14304. besides lend an empathetic ear. rate-cutting. Nova Scotia dump truckers are SENIOR PUBLISHER – Rob Wilkins ASSOCIATE PUBLISHER – Kathy Penner One such owner/operator was Overcapacity and rate-cutting is not without their problems, but EXECUTIVE EDITOR – James Menzies Gord Balford from the Barrie area. not a problem that’s unique to con- there’s a level of respect among MANAGING EDITOR – Adam Ledlow He said he has parked his Western struction truckers, of course. You’ll them that’s almost non-existent in CIRCULATION MANAGER – Vesna Moore CIRCULATION ASSISTANT – Anita Singh Star gravel truck and sold his pup find evidence of it in every segment many other parts of the country. CREATIVE– Carolyn Brimer, Beverley Richards trailer because there are simply too of an unregulated industry. Singer says TANS is the model V.P. PUBLISHING – Alex Papanou many guys running their trucks for However, it seems more cutthroat ACTA aspires to. PRESIDENT – Bruce Creighton Circulation inquiries: 416-442-5600 ext. 3553 $70/hr and too many customers ex- in the construction business than We wish Ron and the ACTA well Change of address: Please include subscription ploiting the situation. Some compa- elsewhere. I can’t help but feel dis- in their endeavour to raise the pro- number from mailing label. ■ Subscription rates: Canada (Includes GST) – nies – including major corporations heartened by the current state of the fessionalism of their industry. One year $40.60; U.S. – one year $66.95; – are taking months to pay drivers. construction trucking industry. foreign – one year $66.95 Send subscription orders, address changes (incl. mailing label from Balford had just recently received a Fortunately, there are those out – James Menzies can be reached by latest issue) to above address. On occasion, our subscription list is made available to organizations whose products or services may be cheque in mid-January for work he there who are willing to work to get phone at (416) 510-6896 or by of interest to readers. If you prefer not to receive such information, please write to us. Please allow 8 weeks for changes or corrections. completed in August. their industry back on track. Ron e-mail at [email protected]. PAP Registration No. 11065 The sad thing is, take a look at the Singer of the Alberta Construction You can also follow him on Twitter We acknowledge the financial support of the equipment you see on and around Trucking Association (ACTA) at Twitter.com/JamesMenzies. Government of Canada, through the Canada Magazine Fund, towards our editorial costs. construction sites these days. The has been work- We acknowledge the financial support of the nice iron is getting parked because ing doggedly to Government of Canada, through the Publications the rates are being undercut by have every dump Assistance Program, towards our mailing costs. someone with a 1979 beater that truck operator in spews black smoke at every upshift. that province sign The extent of the problems facing on to a Code Advertising inquiries gravel haulers and construction of Ethics and truckers varies by region. One visi- Standards that Kathy Penner: 416-510-6892 tor to my blog commented that in would encourage Fax: (416) 510-5143 the Ottawa area, a record snowfall ethical business had opportunists running out to buy practices. vocational trucks for snow removal Singer feels contracts. Come summer, the rate that if everyone wars were in full gear as those truck- in the business ers struggled to keep their trucks unites, they can working. Follow that up with a mild force some real winter and – well, you know what change when it Rob Wilkins Kathy Penner Publisher Associate Publisher happens. comes to rates (416) 510-5123 (416) 510-6892 Out in Alberta, as recently as a and working con- rwilkins@ kpenner@ few years ago you couldn’t help but ditions. We’re not trucknews.com trucknews.com make money with a gravel truck. talking about The business was so lucrative, in union organiza- fact, that people from neighbouring tion and we’re provinces flooded to Alberta to cash not talking about in on the boom. Now that the econo- price-fixing – his
Don Besler Brenda Grant three or lower; 45% say their satis- National Sales Mgr. National Account Sales Railways getting off track faction level had decreased over the (416) 699-6966 (416) 494-3333 [email protected] [email protected] past three years; particularly worri- Boy, have the times changed. I re- some is that 62% said they have suf- member when I started writing Viewpoint fered a serious financial impact as a about transportation 20 years ago result of poor rail freight service. truckers used to have a field day Most shipper dissatisfaction was every time a report came out detail- Lou Smyrlis linked to problems with on-time de- ing the shortcomings of the rail- Editorial Director livery of cars at origin and destina- ways. Never was an opportunity tion; timely pick-up of empty cars missed to lob a few verbal grenades after unloading; reliability of car Doug Copeland Laura Moffatt Regional Manager Research at the old RAC (the Railway Trucking still competes with rail but supply, including timely release of Man., Sask. & Alta. Director Association of Canada). now requires a strong rail network cars into the system; consistent tran- (416) 510-6889 [email protected] Were we back to 20 years ago, the to ensure a smoothly functioning sit times; and responsiveness of rail- trucking industry would certainly Canadian transportation network. ways to problems. In other words, TRUCK WEST is a proud member of the following have had a ball with the latest such So a report that shows such a low all the important stuff, except for trucking associations: report reflecting the levels of satis- shipper satisfaction with rail service price.
ALTA. MOTOR TRANSPORT ASSN. faction of 262 shippers with the rail is both an opportunity and a con- Such issues present potential freight service they receive from cern. Shippers were asked to rate service concerns for motor carriers Canada’s Class 1 railways. The their satisfaction using a scale of partnering with railways on inter- SASK. TRUCKING ASSN. MAN. TRUCKING ASSN. B.C. TRUCKING ASSN. report, authored by NRG Research one to seven (with seven represent- modal moves. When something The publisher does not assume any responsibility for the contents Group, is part of Transport ing very satisfied). goes wrong with an intermodal of any advertisement and all representations or warranties made in such advertising are those of the advertiser and not of the publisher. The Canada’s Rail Freight Service Consider the major findings: only shipment, shippers don’t care which publisher is not liable to any advertiser for any misprints in advertising not the fault of the publisher and in such an event the limit of the publisher's Review and it paints a worrisome 17% of shippers rated their satisfac- mode was to blame. liability shall not exceed the amount of the publisher's charge for such advertising. No portion of this publication may be reproduced, in all or in picture. tion level a six or seven whereas The carrier that booked the busi- part, without the written permission of the publisher. But truck and rail make not quite typical customer satisfaction re- ness is held responsible. Seems to From time to time, we make our subscription list so strange bedfellows these days, search generates satisfaction ratings me that Canada’s railways have available to select companies and organizations whose product or services may interest you. and have been warming up to each in the 50-70% range; even worse, some issues to address and inter- If you do not wish your contact information to be made available, please contact our privacy officer via other for some time. Whether it’s only 14% of shippers who had ac- modal relationships can’t continue one of the following methods: ■ Phone: 1-800-668-2374 Fastfrate’s 10-year partnership with cess to only one rail line were very to flourish until they do so. Fax: 416-442-2200 CP Rail, Schneider pairing with satisfied; and just 11% of “captive” E-mail: [email protected] Mail: Privacy Officer. Business Information Group, CSX or JB Hunt’s deal with Norfolk shippers, with access to only one rail – Lou Smyrlis can be reached by 12 Concorde Place, Suite 800, Toronto, Ont., M3C 4J2 Southern, fact is there are many mo- line and limited or no other ship- phone at (416) 510-6881 or by e-mail PUBLICATIONS MAIL AGREEMENT NO. 40069240 RETURN UNDELIVERABLE CANADIAN ADDRESSES tor carriers who view intermodal as ping options, were very satisfied. at [email protected]. TO CIRCULATION DEPT. – TRUCK NEWS, a more efficient way to move freight More than a third (35%) of ship- You can also follow him on Twitter 12 CONCORDE PL., SUITE 800, TORONTO, ON M3C 4J2 beyond distances of 750 miles. pers gave dissatisfaction scores of at Twitter.com/LouSmyrlis. Chevron class 8 Mar 2/17/10 10:02 AM Page 1
Page 4 TRUCK WEST March 2010
The best thing that could be said about 2009 is that it’s over. December’s truck sales, although up from Monthly Class 8 Sales - Dec 09 Historical Comparison - Dec 09 Sales November’s dismal numbers, reflected the reality of the year: sales considerably behind the previous OEM This Month Last Year year’s less than stellar pace, way off the five-year Freightliner 212 344 average and so far behind the record year of 2006 International 411 510 that it’s hard to believe this country can absorb so Kenworth 249 162 many trucks. There were 1,380 Class 8 trucks sold in Canada in December making it the second worst Mack 106 149 December of this decade. That’s more than 400 Peterbilt 214 109 units off the previous year’s pace, about 1,100 units Sterling 26 135 off the five-year average and more than 2,300 off Volvo 74 311 the record year of 2006.This is the worst recession Western Star 88 171 to hit the North American market in the post war era, the industry has excess capacity and monthly TOTALS 1,380 1,891 truck sales reflected those two realities each and every month of 2009. Class 8 Sales (YTD Dec 09) by Province and OEM Historical Comparison - YTD Dec
OEM BC ALTA SASK MAN ONT QUE NB NS PEI NF CDA Freightliner 145 304 109 145 993 562 239 136 3 15 2,651 Kenworth 273 497 122 113 421 499 73 12 0 0 2,010 Mack 46 90 101 55 511 153 42 24 0 0 1,022 International 148 514 78 172 1,731 1,023 148 83 26 74 3,997 Peterbilt 141 284 148 115 281 206 71 35 0 0 1,281 Sterling 104 119 27 11 209 253 17 5 8 38 791 Volvo 63 109 84 163 490 188 62 69 0 8 1,236 Western Star 126 273 39 33 160 140 58 77 0 2 908 TOTALS 1,046 2,190 708 807 4,796 3,024 710 441 37 137 13,896 Following month after month of dismal sales, it comes as no surprise that 2009 closed as the worst year for Canadian Class 8 truck sales of the past decade and one of the worst since the economic slowdowns of the early 90s. The first quarter of the year was so weak that, three months into the year, sales were more than 2,000 off last year’s YTD pace (hardly a banner year in itself), about 3,000 off the five-year YTD average and about 5,000 off the banner year of 2006.And the year ended with an equally weak final quarter. Sales in 2009 were about 10,000 units down from the previous year, almost 16,000 units off the five-year average, and more than 25,000 units off the record year of 2006. Although 2010 should be a bit better, how long it will take the battered trucking industry to post numbers like it did in 2006 is a question that remains to be answered. 12 - Month Sales Trends Market Share Class 8 – Dec YTD
2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200
0 January February March April May June July August September October November December Sales 1,183 1,039 1,456 1,197 1,078 1,038 995 923 1,071 1,405 1,131 1,380
There are many reasons motor carriers were reluctant to purchase new trucks in 2009. Excess International once again captured the market share crown in the Canadian Class 8 market capacity, low freight volumes, depressed pricing for trade-ins and limited access to capital made new in 2009. It ended with a commanding 29% share of the market. Freightliner, a former front truck purchases unlikely for most fleets. The recession did finally end by the fourth quarter but with runner for many years, closed the year with a more than 19% share of total sales. the rebound expected to be slow and volatile and, unlike past recessions, trucking not expected to Kenworth’s market share rebounded in the latter half ending up at 14.5% to round out the lead the recovery, motor carriers remain reticent to take a chance on new truck purchases. top three. Peterbilt finished ahead of Volvo for the 4th spot but neither it nor any other truck Interestingly, our research shows that motor carriers are more pessimistic than their own customers maker could crack more than 10% market share. about the prospects for freight volumes and increases in rates for 2010. Source: Canadian Motor Vehicle Manufacturers Association
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March 2010 InIn Brief Behind the headlines Truck West revamps Web site, joins Facebook Canada’s most comprehensive any of the blogs, which are all reg- and interactive trucking industry ularly updated. news Web site just got better. Speaking of commenting, you Trucknews.com now boasts a can now comment on any of the new look and new features. All news articles that appear on the features you’ve come to ex- Trucknews.com. pect on Trucknews.com can now Just enter your comments in the be found in the menu bar along window that appears below the the top of the page. article. Keep it clean and appro- New to the site is a prominent priate, and a Truck West editor window displaying Truck West’s will approve the comment in a social media activities, including a timely manner and allow you to Twitter feed and Facebook fan have your say. page which will be updated in The CyberCB message board is real-time. still an important part of The Facebook fan page is new – Trucknews.com. You can find the you can become a fan and interact link in the menu bar at the top of with the Truck West staff, profes- the page or in the Online sional drivers and other industry Networking section. stakeholders on our Facebook A recent change we made al- site. You can also post pictures lows you to read the discussions in of your truck or anything else the forum without registering, but you’ve come across while on the you’ll need to register in order to road. You can find us at post in a thread. Facebook.com/trucknews. There, you’ll find discussions on While at our Facebook page, a range of issues impacting the in- take part in the Truck West dustry and if you don’t find what Facebook Show’n’Shine. Enter you’re looking for, you can create your rig for free or vote on the your own thread. winner. To delve into a topic in more Also new to Trucknews.com is a depth, visit the Knowledge Centre Feature Story section under the section of the site for individual video window which will include modules on items ranging from in-depth feature articles from our truck maintenance to owner/oper- print editions. ator business skills to human re- Don’t forget to check out sources. our award-winning videos. Our And finally, if you’re looking weekly episode of Transportation for a non-driving job in the trans- Matters is prominently displayed portation industry or you’re look- on the home page and you can ing to hire, visit Truck-Ops for a click More Videos underneath to full listing of current job open- visit the complete archives. ings. Another new feature on If you’re a driver, you can Trucknews.com is a poll on the search for jobs by choosing the lower right hand side of the page, Careers tab in the menu bar and which will be updated regularly. selecting Driver Recruitment. Have your say in the online poll Trucknews.com has already won and see how others have respond- its share of awards. It won the ed. Best Video award in the first The Industry Blog will re- ever Canadian Online Publishing main a fixture on the new Awards this year and was a finalist Trucknews.com. This section fea- in the Best Overall Web Site cate- tures blogs from Truck West gory. editors, prominent industry exec- Trucknews.com has also been utives and on-road editor and named one of the top five busi- full-time professional driver ness Web sites in Canada in each Harry Rudolfs. of the past four years by the You can read and comment on Canadian Business Press. ■ Mackenzie Highway pioneer passes away
MANNING, Alta. – One of the reunion near Grimshaw in the late last of the Mackenzie highway pi- 90s,“getting old pioneers from the oneers has died. Mackenzie highway together.” Fred Lorenzen, lately of The annual summertime gather- Grimshaw but more famously ing, Cooper says, included events from Manning, Alta., was laid to such as oil field pipe competitions rest on Feb. 3 after a ceremony in and show and shines. “They ran a Manning. top notch get-together for all the According to Gord Cooper, a old truckers and their families,” he friend who races and collects remembers. trucks from his base a few acres Fred, Cooper recalls, “always east of Chestermere, Alta., Fred had a collection of antique and his wife Bernice were the stuff International trucks and after run- of legend in the area. Cooper ning the reunion for a few years, knew Fred Lorenzen for the bought a place in Grimshaw last 10 years or more, initially where he started up the Mile 0 through the Alberta chapter of Museum.” the American Truck Historical Cooper says the town welcomed Society. the museum, which the Lorenzens “Fred and his family go back to decided to sell a couple of years early days of the Mac highway,” ago. Cooper says. “Real neat folks,” Cooper says Cooper says he, Fred and fondly.“Among the last of the pio- Bernice used to run the truckers’ neers of the north.” ■ pg 1, 6 tw mar v2 2/17/10 11:32 AM Page 6
Page 6 TRUCK WEST March 2010 CanadaCanada Plans already underway to host 2010 nationals in Winnipeg
Continued from page 1 ent dinners and things that we do knew the nationals were cancelled with our members anyway.” last year,” says Susan Green, pro- Sine says the organization com- gram and member services coor- mittee’s main concern is to make dinator for the Manitoba Trucking sure it’s a quality event and that Association (MTA). people “have a great time and “As far as we’re concerned it’s that it meets their expectations. kind of been a long-term project But there’s no worry in our mind that we’ve been working on the about getting this done and meet- entire time, so I don’t really feel ing those expectations.” too much pressure in reviving the Last year’s event, planned for event because there was never British Columbia, was cancelled any question that we weren’t go- due to a lack of sponsorship. Yet ing to do it.” the movers and shakers behind MTA manager Geoff Sine the 2010 event, scheduled for agrees, saying the event is not only Sept. 16-19 this year, aren’t wor- going forward, but that it’s just an- ried. other day at work for the plan- “We’ve done this before,” Sine ners. “From our perspective,” he reports. “We’ve already ap- says, “it’s not really a logistical proached our sponsors and feel nightmare because it’s very simi- very confident that we will have lar to what we do in the provin- the support of the industry.” Sine cials, then you add in a few differ- says they aren’t putting all their GET PRACTICING!: The national championships will once again pit some of Canada’s best professional drivers against each other in a variety of events.
FASTER, EASIER eggs into the sponsorship basket, book time and have their team however. “We’ve also set up real- meetings right in the hotel.” %25'(5 &5266,1* istic expectations and have bud- The reception and “meet and geted accordingly and know that greet” are set for Thursday night. Don't lose C-TPAT, PIP, FAST or CSA compliant loads. if we didn’t have a cent of spon- Friday will be split between a *HW &73$7 FHUWLÀHG ZLWKLQ GD\V sorship, we could still go forward morning session and an afternoon and make a success of it.” during which the teams can meet Green says they have one firm and other folk will be able to just GET 3 MONTHS confirmation for sponsorship so get out and poke around Win- ACE E-MANIFEST SERVICE ABSOLUTELY FREE far, with other pending sponsors nipeg. Don’t let border security threaten your business WHEN YOU APPLY FOR C-TPAT looking positive. “We’re planning an enjoyable profitability. Take advantage of Avaal’s 24x7 Fax WITH AVAAL Avoid safety & service for e-Manifest and customs clearance. compliance audit The venue is in place already, but not too late night on Friday,” headaches and and there’s a chance an even more Green says, noting that since take full control 9OUR .EW #AREER 3TARTS (ERE Get The Competitive Edge of operations by desirable one might be available: they’re having to wait for various by Avaal’s certification in: implementing Avaal Canad Inns Stadium, which is schedules to come out they can’t s 4RANSPORT $ISPATCH -ANAGEMENT Express, Freight right across from the hotel. The book or announce anything offi- s &AST