My review of 2006

For a leased owner operator, a good year is one that the price of fuel stays low, not to many repairs on the tractor, good dispatching and some time to do some work around the house. With all these premises, 2006 was not such a good year for me.

It started on the last days of December 2005, I got blinded by the reflection of the sun on the wet road. As my windshield cleared up, I was too close to a stopped car and, the ABS kicking in to avoid a lock-up, I rolled in the trunk of that 4 wheeler. I blew by about 45,000 miles the mark of 1,000,000 accident free miles. Not to excuse my driving but to set the scene, that car was stopped in the right lane of a boulevard by a %$&%(&%, 3 cars ahead, which wanted to do a left turn from the right lane… Yes, I’ll admit, bad anticipation on my behalf.

Then, in March, the turbo blew. Another week and some couple of thousand bills later, I was back on the road. At that time, my dearly beloved wife was expecting a call from our local hospital to undergo a hip surgery. I wanted to be there the day it was going to be done but, the hospital called to say, maybe this week maybe the next. I stayed home to wait and we finally got the call on Tuesday to tell us it would be the next week. Only glitch Easter was in the middle of the waiting period. Do I have to say I stayed home all that week!

After a few months of soaring fuel prices, we finally saw a little bit of calm but never the prices of the early years at the turn of the decade. Fortunately for us Canadians, the exchange rate stayed low so our purchases south of the border stayed within a reasonable range. I tried to imagine fuel at $3.10 a gallon with an exchange rate of 56% like it was in 2004! It would have made fuel price in Newfoundland a good deal!

Other then some tires, brakes, and all the regular maintenance our trucks need, the rest of the year was almost trouble free.

As of the home time, well as you can read, I was there for a good part but, I was proposed to co-host a new show on satellite radio, the preparation and the research to bring good information, comments supported with facts took most of my spare time and my rest time while on the road. Other then the way it ended, it was a great experience to communicate with drivers across North America and keep them informed on rulemakings, road laws and all the nice stuff we all need to know and take some stands.

Having to deal with my demands for home time, pass-by time, radio time, I can only say a word about the dispatching, great! Even if I did run some lines that are more costly to do, in the Maritimes of Canada, I was there when I wanted to be there.

My forecast for 2007

I hope that most of the operating costs for an owner operator stay in a reasonable bracket. That the incomes will be adjusted to the growing demands from the shippers and receivers. Not to forget the rising prices of replacement of our equipments with the new EPA standards, thanks to some pencil pushers and tree huggers. Only the road transportation has to deal with tighter rules, not the trains, planes or boats for now. This is another debate we can have later.

To all of you reading these lines, I wish you health, happiness and peace. Without these 3 elements, prosperity is not worth living for.

HAPPY NEW YEAR 2007

Jean Catudal

Is NAFTA such a good deal?

For us in the transportation industry, it doesn’t look like a bad deal with all the freight to move across North America, mostly between Canada and Mexico. But now more and more of our jobs are going southbound and this will affect us in a future closer then many can think.

There are a growing number of large companies, some have been the pride of the economy of Quebec, which are expanding in Mexico. Labour laws, environment laws and unions are taken over by the stock holders that want a good return on their investments. Still many components are made here in Canada or in the USA but the final costly assemblies are made in sombrero country.

This past December 20^th, Freightliner was announcing the build in 2007 and the start up of a new production plant in Mexico. The forecasts are showing that in 2009 more sales would come and the company wants to be able to face the demand. In 2009, 30,000 trucks branded Freightliner and Sterling will roll out of that facility. And Sterling has just announced lay-offs in the St-Thomas Ontario plant.

In 2002, the same company had closed the Kelowna plant and moved all of Western Star production in Oregon, and the bus plant of Woodstock Ontario was spread around other facilities. Navistar had pushed the production of their Escobedo plant to face a strike in Chatham. Navistar also found out that is was cheaper to assemble there then in Canada.

Some even say that the Canadian Class 8 are to become Mexican!

I could come out with even more on the automobile industry, but I don’t have the patience of all that research.

History of the Speed Limiters

I had promised to my listeners, before I got removed from the Sunday evening show, a timeline of the speed limiter issue from Ontario to all of North America. I am putting it up on my blog for your good reading and information. There is a few links you can go and look for to read what the different groups have to say on the topic. Later on I will post also some of the emails I have sent to concerned ministries in Ontario and Quebec.

I will also, in the coming weeks, put up the process that a bill and a petition has to follow in Canada and the USA.

Good reading!

Early July 2005

Land Line Now, the daily trucking news program of OOIDA, has broadcasted an interview with David Bradley from the OTA that announces the proposal to have mandatory the use of the speed limiter of all trucks on the roads of Ontario. A news release is available on the web site ontruck.org, then on the tab “newsroom”, then news release, look for 2005 on July 7^th.

Already, OTA puts on conflicting information that truckers are not the ones to speed. Why a mandatory speed limiter then!

November 29^th 2005

With a strong support of many groups, the OTA pushes to the Ontario Ministry of Transport their plan for the mandatory activation of the speed limiter of all trucks rolling in Ontario. Not only the ones that are based in the province, ALL TRUCKS OF NORTH AMERICA that have to roll in the province of Ontario. You can find the text of the proposal at ontruck.org/speelimiters and the list of the supporting groups.

December 2005

OOIDA and OBAC pressures the MTO to put a comment period so that all groups, truckers and individuals can express comments on the issue of the OTA. The MTO gives a 15 day period to receive, a first in Canada. OBAC makes a call to action for all members and OOIDA does the same for their Canadian members. An outstanding response forces the MTO to back off and get in a long process of study. Both associations have sent many pages of comments that are available on obac.ca

February 14^th 2006

The American Trucking Association votes a resolution that all new truck manufactured has a voluntary speed limiter activated at a maximum of 68mph. The new owner of the truck can have it de-activated or set at a higher speed.

June 1^st 2006

Laurie Scott, the MP of Halliburton-Victoria-Brock, who is also the opposition critic for environment, presents a private member bill #115, which transfers the OTA’s proposal into a Greenhouse Gas reduction law. Fast trucks are big on air pollution. The Finance and Economical Affairs permanent committee gets it for study after the mandatory 2 readings in parliament at Queen’s Park.

Another flood of emails and faxes to the chair of the committee Mr. Pat Hoy mp of Chatham-Kent follows.

June 16^th 2006

The Government of Quebec presents to the public the 24 actions plan to achieve the targets of the Kyoto protocol, the most popular Japanese word in the world, in the plan, to limit the speed of trucks over 10,000kg to a maximum of 105Km/h.

September 2006

“Road Safe America”, a group founded by Mr and Mrs Steve Owings, gets a big support in their crusade by nine carriers and they send a petition to FMSCA to limit the speed of commercial trucks over 24,000lbs to a speed not over 68mph. The Owings have lost their oldest son in a crash involving a semi in Virginia in November of 2001. The driver of the semi had pulled to the left shoulder to avoid a collision with stopped vehicles and struck the car of the Owings son that was there for the same reason.

These carriers are:

Schneider National, JB Hunt, US Xpress, ATS Intermodal, Jet Express, HO Wholding, Dart Transportation

The ATA sends a letter of support to FMCSA.

October 2006

The ATA turns-coat on their own resolution of February and now wants to make the speed limiter mandatory instead of voluntary. The ATA also sends a petition to the FMCSA.

Currently

Even if the Government of Ontario is still studying before the 3^rd reading of Bill 115 and that there has been 2 petitions filed with FMCSA to modify the laws to trucks, nothing has been done yet. The process is quite long for our neighbours south of the 49^th.

No government really wants to be the one that will impose restrictions on commerce and trucking, the back bone of the economy. Many have figured out it was not to legislators to regulate on the driver recruiting and retentions problems for carriers across North America. The carriers associations are not really looking for a Green House Gases reduction, if they really want to do so, the large carriers can always replace the older trucks with some that are with the new EPA standards. This is another issue that the ATA and the CTA are looking to get tax reductions, for their members, on these trucks.

The OTA is now on its third version of their reasons to limit trucks. They started by an economic desire to level the playing field for all, or level out the small business trucker and the small fleet operator because never can they get the same rebates and discounts the large fleets have for parts and trucks. After it went on for safety reasons. Again, groups and studies have proven the nonsense of the demands. No study can prove that slowing down part of the traffic is a good thing. There is only The Kyoto Protocol left. It’s now to the environment to be the reason.

Even if the legislators are in favour to reduce GHS, mostly in Ontario and Quebec, these same governments also have a powerful weapon called the Highway Safety Code. It would only take some orders to the law enforcement to limit the tolerance they use at a lower speed of 105Kmh. Tennessee has set the pace with in that way by giving two tickets to speeders, one for the speed and one for the extra air pollution. Many have tested these fines.

This would have benefits for the treasuries. First, an increase in the revenues of fines and to lower the payments made by the SAAQ in Quebec for bodily injuries, less waiting in the ER’s. Because there would be less accidents. These savings and extra income could be put on more law enforcement personnel and better road repairs.

Even in provinces and states that all insurance is on the owner, it could turn out to be a rate cut. More money in our pockets, more spending on things that are taxable, more income for the governments.

I know I’m pushing the envelope but, I try to look further then having my work income reduced. In this case, it could be to look up all the European way and limit all trucks to 90Kmh or 55mph, pay drivers by the hour instead of by the mile. This is another topic we can talk about later.

Politically Correctness in this Time of the Year

Recently, Canadian Heritage declared that this time of the year was to be called “Winter Solstice Holiday”. I usually comment on this blog on trucking and the industry but, this time I will do an exception. I am fed up not to hurt the feelings of some minorities. I have some rights too, being in what I think is the majority of this country and Quebec, a descent of Christian heritage, I will say loud and strong:

MERRY CHRISTMAS!

And for those that don’t celebrate the beginning of the year on January 1st, you will pardon me, but for all others:

HAPPY NEW YEAR 2007!

My wishes for all of you are more universal. May 2007 bring you health, peace and love. Without these, prosperity is not worth being lived.
Jean Catudal

A Blog on Trucking

Still under construction, this will be my English version of my french blog.