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Outlook For ’06 Bright: Fitch Ratings, a global rating agency, predicts 2006 will be a strong year for the U.S. trucking industry. While the economy may slow somewhat due to higher energy costs, demand for trucking is expected to remain strong, but more moderate than in 2005, according to Fitch. The strong demand, combined with efficiencies and cost controls put in place after the recession in the early part of this decade, will support continued strength in operating cash flows. Fitch predicts real gross domestic product to grow by 2.8 percent, compared to 3.6 percent in 2005, and 4.2 percent in 2004. Intermodal and the LTL sector are both expected to do well in 2006. Intermodal has been fueled by continued growth in imported goods, especially from China, and LTL trucking—particularly regional short-haul demand—has shown continued growth for shippers looking to support just-in-time inventory management. Fitch predicts pricing to remain strong this year, but pricing growth will begin to moderate. Other predictions: shippers will be more aggressive in negotiating fuel surcharges and base rates; operating expenses will remain in check, but fuel and labor costs will increase, putting pressure on trucking companies, especially long-haul truckload carriers; the new hours-of-service rules will contribute to higher labor costs; and fuel expenses will be largely covered by surcharges.
Last Hour Proves Riskiest: Hour 11, the last legal driving hour for truckers, is the riskiest time for driving, according to a study by the Pennsylvania Transportation Institute. In fact, says head researcher Paul Jovanis, during the 11th hour, a driver has a crash risk three times that of the first hour. “Our analysis of data from three national trucking companies during normal operations in 2004 shows that the crash risk is significantly similar for the first six hours of driving and then increases in significant steps thereafter,” said Jovanis. The old hours-of-service rules did not permit truckers to drive after 10 hours; the new rules increased driving time to 11 hours per day starting January 2004. Using data from the 1980s and 2004, Jovanis found a “consistent pattern of increased crash risk with hours of driving, particularly in the ninth, 10th, and 11th hours.” In addition, researchers found that multi-day driving schedules over seven days were linked to higher crash risk increases.
Ten Years Later: It’s been 10 years since the National Maximum Speed Limit (NMSL) was repealed, ending federal laws that required states to keep speed limits no higher than 65 mph in rural areas and 55 mph in urban locations. Since the repeal, 40 states have increased their speed limits; 31 of those states have increased their speed limits to 70 mph or higher on some roadways. Statistics indicate that highway fatalities have neither increased nor decreased since the repeal. But, according to Lt. Colonel Jim Champagne, chairman of the Governors Highway Safety Association, highway fatalities should have declined, “given the tremendous increase in safety belt use coupled with the increasing safe design of vehicles.” According to Champagne, there was no decline in highway fatalities because of the higher speed limits. Statistics consistently show that when speed limits are increased, the number of highway fatalities also increases. Champagne said there are three main killers on U.S. roadways: drunk driving, failure to wear seat belts, and speeding. “These three issues deserve priority of attention if we are going to make significant progress in reducing deaths,” he said.
Customer Service In Cyberspace: Transportation, distribution, and logistics companies are doing a better job of treating online customers respectfully, according to a new survey. The greatest improvements have been made among mail, package, and freight delivery companies, according to The Customer Respect Group in Massachusetts, which rated companies on a scale of 1 to 10. Overall, the transportation, distribution, and logistics industry scored a customer respect index of 7.0, up from 6.6 six months earlier. Companies that had the highest customer respect scores were those that did not use personal information without a customer’s consent. Companies should always get customers’ permission to use their data, said the president of The Customer Respect Group Terry Golesworthy. “By ignoring the customer’s concerns, companies risk losing customer loyalty and repeat business,” said Golesworthy. The survey also found that companies with the highest scores respond to e-mails promptly, explain why cookies are used, explain how personal information can be updated, and have a prominent link to their privacy policies on
each page.
A Bumpy Ride In PA? The Overdrive Worst Roads survey has been released for 2005, and for the second straight year, readers ranked Pennsylvania as having the nation’s worst roads. The biggest complaints about the Keystone State included the conditions of the Pennsylvania Turnpike, 1-78, and I-80, as well as poor signage and high tolls. One owner-operator says Pennsylvania highways “will beat you and bang you around.” This driver also notes that he paid $110 along I-76 from New Jersey to Ohio. Another critic points to signage as a major problem. She says Pennsylvania’s exit signs are too close to the off ramps, forcing drivers unfamiliar with the area to slow too quickly. The other problem, she says, is that drivers may go for miles without seeing a sign that indicates where they are or how far they are from their destination. PennDOT officials counter by saying they spent $1.3 billion on highway and bridge projects in 2004, and about that much in 2005. To be fair, the survey did rank the much-maligned I-80 as the second most improved road in the nation. As for the best highway in the nation, that distinction goes to Texas, which also ranked first in most overnight parking, best truck stops, best rest stops, and best automobile drivers.
Workers Prefer Old Plans: New health insurance plans with high deductibles are getting a lot of attention from employers, but a new survey finds that the users of the plans remain skeptical. The study found that only 33 percent of employees covered by high-deductible policies said they were “extremely” or “very” satisfied with their plans, while more than 63 percent of those with traditional health-insurance plans were satisfied. “We’re finding lower satisfaction with their quality of care, their out-of-pocket costs in particular,” said a co-author of the report. “Fewer people in these (high-deductible) plans would recommend them to their friends or co-workers.” Many companies, however, prefer these policies because premiums are lower than they are for more traditional coverage. Proponents of the new policies say they give employees greater responsibility over how they spend their health-care dollars, thereby creating savvier consumers. Employees enrolled in high-deductible plans visit doctors and use other health services at about the same rate as those with traditional coverage, but those in the newer plans said they were more likely to avoid or delay care due to costs.
Mindful Listening: Being a good listener is actually harder than it sounds. There are four common types of listening behavior in business, contends Judith E. Glaser, CEO of Benchmark Communications. What’s your style?
- Birds-in-the-sky listening. Some people appear to be good listeners. They sit quietly, nod their heads, and make eye contact. In reality, however, their minds are wandering—they’re listening to the “birds in the sky.” This type of listening is usually learned in childhood when youngsters are told, “Don’t interrupt!” “Don’t ask so many questions!” and “Because I said so.” Conditioned by these rebukes, birds-in-the-sky listeners turn off their minds and focus internally.
- Face-value listening. Some listeners hear just the facts. They hear words more for their literal meanings rather than as tools for understanding greater truths. But good listening requires guided thought and inquiry.
- Position listening. This type of selective listening occurs when employees listen for clues about their job performance and disregard other information. A manager may listen to the president’s annual report, for example, to determine whether her division will grow. This type of listening can lead to faulty assumptions and poor morale.
- Precision listening. “Precision listening is the art of knowing how to listen and how listening affects performance,” writes Glaser. When engaging in precision listening, executives pay careful attention—to phrasing, context, and words—to get clues to the meaning behind the words. To avoid misunderstandings, precision listeners ask questions and restate what they’ve heard.
By experience we find out a short way instead of a long wandering.
—Roger Ascham (1515-1568), scholar
