TheTrucker.com

At the Truck Stop: Kevin and Candice Rawls work as a team partnership in business and in life

PARAGOULD, Ark. — How do an assistant instructor at a regional college and a phlebotomist at a local medical center spend their lives once the kids are grown? If they’re Kevin and Candice Rawls of Paragould, Arkansas, they go to school together to get their commercial driver’s licenses (CDLs); then hit the road as team truck drivers. “Once the kids were grown, we thought trucking would give us a way to travel together and put away some money,” Candice said. “Back home, she always drove small cars,” Kevin said. “But since she started driving a big truck, we had to buy a Suburban.” When they’re at work as owner-operators, the couple drives a 2019 Freightliner Cascadia 126 with an automatic-shift transmission and a Detroit engine that pulls 505 horsepower. Buying the Cascadia was an easy choice, since the team began their trucking career driving a Freightliner for MC Express in Jonesboro, Arkansas. “We’ve been teaming together for three years and decided it’s time to go into business for ourselves,” Kevin explained. “While we were company drivers, we saved up for the down payment on this truck,” Candice added. “We paid off everything we could so we would have minimal expenses,” Kevin said. “We’re even paying extra on the house.” The Rawls’ Cascadia is a “golden amber” color, “sort of a metallic orange,” according to Candice. The longer wheelbase improves the ride, Kevin said, adding that it also allowed the couple to mount a storage box on the catwalk behind the sleeper. They chose Florida-based Landstar Systems to lease their equipment to, and both say they have been satisfied so far. Being together on the road comes naturally to the Rawls, who have been a couple since their youth. “We’ve been together since we were 16 at Greene County Tech High School,” Candice shared. “We were married at 20, and we’ve been married 31 years now.” “We like to stay out for about a month at a time, and then we’ll go home for a week or so,” Kevin said. “It seems like when you go home, it’s hard to get back into the routine once you leave.” The company lets the pair choose their loads from a load board available to other Landstar Business Capacity Owners (BCOs). Some loads are from Landstar customers while others may be brokered by Landstar agents, but the loads must be selected from Landstar offerings. Because the couple runs hard and stays out so many days at a time, available driving hours can become a problem. Kevin and Candice often choose to manage their hours and keep rolling rather than stop for a 34-hour restart. “Landstar lets us pick from both team and solo loads, so we can keep the truck rolling — but we can take a solo load if we need a break or we’re getting close on hours,” Kevin said. While the timing could have been better for the Rawls to become owner-operators (they took delivery of their truck just as freight rates began dropping in early April), by watching their spending and being selective of the loads they accept, they’ve been able to make a go of it. “Some rates were unbelievable, around 90 cents a mile, and even one in the 70s, but we’ve been able to find enough decent loads to keep going,” Candice said. Kevin added, “At this point, the rates are doing it for us.” The couple said they prefer running to the West and Northwest parts of the U.S. because of the good roads, longer trips and better traffic. The East Coast presents some challenges they prefer to avoid. “It’s hard to find a parking place if you want to use the bathroom,” Candice said. “That’s important for women. I’d rather drive in LA than up the East Coast.” The couple works in 12-hour shifts: Kevin starts at 3 a.m. and Candice takes over at 3 p.m. “I drive at night and he drives during the day,” Candice explained. “We each see some day and some night.” Kevin noted that Landstar is “big on safety.” Candice added that taking your time as a driver can help to prevent accidents. “Take your time maneuvering and get out and look when you need to,” Candice said. “When you don’t take time, you increase the chance of something happening.” The couple saves money by eating most of their meals in the truck. “We don’t do any big-time cooking in the truck,” said Candice, who makes use of their freezer. “We buy a lot of Healthy Choice prepared meals. We have a toaster oven and a microwave, of course.” When the couple is home, they relish visiting their grandson and reuniting with their dog, which they leave in the care of a daughter when they go on the road, due to the dog’s age. Kevin likes to hunt deer when he gets the chance, as he did during a dream trip last year. “Me and my son and my dad went to Colorado to hunt mule deer,” he said. “We hunt whitetail back home.” When home time is over, however, the Rawls are back to business. At home or on the road, Candice and Kevin approach life and work as a team — together.

Passion and purpose: WIT Member of the Month Emily Soloby makes a career out of assisting, supporting women

Some people enjoy helping others, and some people make a career out of it. Emily Soloby most definitely belongs in the “career” category. For her efforts and her achievements, she was selected as the May 2020 Women In Trucking (WIT) Member of the Month. Soloby is co-owner of AAA School of Trucking, which has locations in Philadelphia and Harrisburg, Pennsylvania. She is also founder and CEO of Juno Jones Shoes, a start-up that markets footwear for women who work in nontraditional industries. A graduate of Temple University in Philadelphia, Soloby’s educational studies changed as she defined her career goals. “I worked helping women filing for court orders for protection,” she told The Trucker. “I wanted to help, so I went to law school.” After law school, she began working for a nonprofit legal-services firm, helping low-income clients. Her personal involvement with clients, although gratifying, took a personal toll. “I knew I wasn’t going to be able to do it forever because of the intensity of the work,” she said. “I decided to go back to graduate school.” That’s where she met her husband, Ryan. When a relative who founded the AAA School of Trucking decided to retire, Emily and Ryan jumped at the opportunity to take over the business. “We’re both very entrepreneurial, so we went for it,” she explained. While Ryan runs the day-to-day operations of the school, Emily puts her legal expertise to work. “One of the things we love about it is working with funding organizations to get students who need a hand up, maybe for occupational rehab or job training,” she said. The school’s website lists funding sources for the unemployed, job fields training, veterans and vocational rehabilitation among the sources available. The school also offers in-house financing to qualified individuals. Emily estimates that 10% to 15% of the school’s graduating students are female. The director of the Harrisburg campus is female as well. While performing her duties, Emily Soloby found that she often had to change her footwear to prepare for the different environments she encountered. The shoes she wore to a business meeting, for example, were not appropriate for a job-site visit or a ride-along with a CDL student. Realizing that other women working in nontraditional roles must have similar experiences, she determined that a new shoe design was needed. She consulted with fashion experts on the design and initiated a funding campaign to raise capital to start Juno Jones Shoes. The results were enthusiastic. “We did a Kickstarter campaign in February and reached our goal in only 29 hours,” she said. “We were up to three times our goal when we suspended the program, just as COVID was shutting down the country.” The design chosen for the Juno Jones Shoes’ first product was the “Meti” boot, a side-zip product that has a steel toe, a puncture-resistant midsole and a nonslip lug-tread sole incorporated into a design that in no way resembles a man’s work boot. “Women are tired of the ‘shrink it and pink it’ marketing mentality,” Soloby explained. “We wanted a product that is specially designed for women’s feet.” The boots are available for purchase on the company’s website (junojonesshoes.com), and Soloby offers a 25% discount for anyone using the code Trucker25. The company plans to introduce more designs in the future. Currently, the plant that manufacturers the boots is shut down due to COVID-19 restrictions but is expected to reopen soon. To help market the shoes, Soloby started a Facebook group called “Hazard Girls (Women in Non-Traditional Fields)” that allows members to discuss their experiences. The group has blossomed to more than 830 members, and a regular podcast is in the works. “We did a WAM podcast for Jacket Media (jacketmediaco.com), and the producers liked it so much that we’re getting our own regular half-hour podcast,” Soloby said. “We’ll interview women who are influential in fields that are traditionally male-dominated.” Soloby’s interest in the Women In Trucking organization was a natural. “As a big supporter of women in nontraditional fields, WIT only made sense for me. It ties in with both businesses I’m involved in,” she said, adding that she appreciates the organization for role is supporting women — and her personally. “Ellen (Voie, WIT’s president and CEO) is fantastic,” Soloby said. “They have been so supportive.” When asked to describe herself, Soloby listed family first. “I’m a mom of two small children, ages 6 and 9, running two businesses,” she said. “One I co-own with my husband Ryan, and the other is a recent start-up that I’m CEO of.” Asked where she finds the motivation for all the thing’s she’s involved in, Soloby said, “I have a lot of energy, and I like to stay busy.” That energy, combined with her education and her entrepreneurial spirit, will undoubtedly lead Soloby to new ventures in the future. She is not too busy, however, to remember commercial drivers. “I thank all of the truckers for everything they do,” she said. And, why not? Some of them may soon be hauling boots and shoes for Juno Jones Shoes.

Trucking through COVID-19: Water-chemical company driver keeps swimming possible for Floridians during pandemic

MIAMI — With nonessential businesses shut down across the nation, it’s tempting to think that a company that delivers swimming pool chemicals wouldn’t have much to do. Tempting, but wrong. The drivers at Miami-based Transportation Services Unlimited are staying busy. “We’re super busy,” said TSU driver Paul Calvo. “During the pandemic, kids are home and using the swimming pools a lot. People are buying bleach to keep the pools safe, but a lot are buying it to use as disinfectant, too.” One chain of pool and spa stores Calvo delivers to has more than 135 locations in Florida, many of which are regular stops, and he says they’re selling out fast. “One of the stores I deliver to has two 1,800-gallon tanks,” he said. “I went back three days later and there was less than 200 gallons left in each tank.” TSU also delivers chemicals to municipal water- and wastewater-treatment facilities, both of which are seeing an increase in “business” with everyone staying home. Calvo works at the company’s Ft. Pierce, Florida location. About 40 of TSU’s approximately 100 drivers work from that location, according to Calvo. TSU drivers are required to have tanker and hazardous materials endorsement on their CDL. The company says its drivers, who are paid hourly, average $70,000 annually. More information is available at the TSU website. Calvo drives an hour each way from his home in Palm Bay to get to his job, but he said he loves what he does. “TSU is a great company. I’ve been here since 2008 and never regretted it a minute,” he said. The bleach Calvo hauls isn’t the same as the product most people buy for home use. “We’re hauling bleach, but it’s a 10.5% concentration,” he explained. “The bleach you buy at the grocery store is 5.5%, so it’s a lot more powerful.” Because of this, drivers take extra precautions. “We wear PPE (personal protective equipment) whenever we’re loading or delivering,” he said. “That includes apron, rubber boots, respirator, gloves, face mask, the whole list.” The chemical Calvo hauls is listed as a corrosive material, and trailers are placarded as such. “It’ll burn if you get it on your skin,” Calvo said. “You want to wash it off quickly or get to an eye-wash station if you get it in your eyes.” Calvo stays within the boundaries of Florida and is home every night. He appreciates all that the company has done for its drivers during the COVID-19 pandemic. “They were on the ball from the start,” he said. “They provided us with masks and wipes, even bottled water and snacks. They gave us 110% plus of everything we needed. If they didn’t have it, all we have to do is ask.” As shutdowns and social distancing became the norm due to COVID-19, a letter was sent to employees of TSU and associated companies Allied Universal Corporation and Chemical Formulators Inc. The letter reiterated that the service the company provides is essential and thanked employees for their dedication and hard work before detailing some of the measures taken to protect employees. These included implementing social-distancing rules that limited contact with others and increased cleaning and disinfecting of employee areas. Additionally, the company provided disinfecting wipes and bleach for cleaning trucks — and a free gallon for drivers’ home use, too. Another measure taken was the elimination of the requirement to obtain a customer’s signature on delivery paperwork, limiting contact between drivers and customers. If a customer objects, the driver makes a note on the delivery ticket and initials it, leaving a copy for the customer. The opening paragraph of the letter states “We understand that our employees are the backbone of all we do, and we would not be able to service our customers and communities without each of you.” “I can’t say enough about TSU,” said Calvo, who also praised his supervisor. “Walter is a plant manager,” he said. “Anything we need, he made sure we got it. If they didn’t have it, he’d get it. I don’t know how he’d do it, but there would be boxes and boxes of it at the terminal.” Paul Calvo isn’t ambivalent about his feelings about TSU. “They’re the best,” he said. “I’ll retire here.”

April 2020 Class 8 truck sales barely half of those a year ago

April was the worst month for new Class 8 truck sales in the U.S. market in more than three years. To find a worse month, you’d have to go back 37 months to February 2017. A total of 12,986 new Class 8 trucks were sold in April, according to information received from ACT Research (actresearch.net), a decline of 47.6% from the 24,480 sold in the same month of 2019. April sales dropped 23.1% from 16,892 sold in March. Of those trucks sold this April, 8,156 were fifth-wheel-equipped tractors, down 30.1% from March sales of 11,673 and down 25.5% from April 2019 sales of 18,303. The remaining 4,830 trucks, or 37.2%, were vocational units equipped with dump, refuse or other bodies. The percentage of vocational trucks is typically 25% to 30%, so the higher percentage in April indicates that sales of over-the-road trucks are taking a bigger beating than sales of vocational trucks. The April number was 7.5% lower than March sales and 25.5% lower than April 2019 sales. The declining sales were not unexpected, as numbers were already running nearly 28.0% behind last year’s pace. A condition of overcapacity in the freight market and uncertainty over economic conditions had already combined to put a damper on the market. Then came COVID-19. The closing of overseas manufacturers slowed imports; then the shutdown of domestic businesses deemed “nonessential” depressed available freight levels to crisis proportions. May sales aren’t expected to be much better, if at all, despite the gradual relaxing of stay-at-home orders and the reopening of businesses. That’s because of the time it takes to restart an economy that has been virtually shut down. “It takes a lot of people marching at the same speed to turn the manufacturing sector back on,” said Kenny Vieth, president and senior analyst at ACT Research, noting that, even though a plant may reopen, the parts and materials needed to function may not be readily available. “With current inventories and supply chains, we can say that April will probably not be the ‘bottom’ of the economic downturn,” he said. In the used Class 8 truck market, sales volumes declined 8% in April compared to March, according to the latest preliminary release of State of the Industry: U.S. Classes 3-8 Used Trucks published by ACT Research. Average prices for used tractors in dealer-to-dealer sales also fell 8%, while the average used truck sold was 2% older. Compared to April 2019, average prices were down 20%, while the age of the average truck dropped 5% and the odometer miles declined 2%. As for new trucks, the manufacturer that has taken the biggest hit so far in 2020, on a percentage basis, is International, according to information received from Wards Intelligence (wardsintelligence.com). Sales of 7,499 Class 8 trucks on the U.S. market for the first four months of the year lag 41.9% behind the 12,902 units sold at the same point last year. Market share for the period has dropped from 14.8% to 12.5%. International was the only OEM to sell more Class 8 trucks in the U.S. market in April than in March, 1,961 to 1,886 for an increase of 4%. Compared to April 2019, however, sales declined 44.6% from 3,547 sold in that month. Freightliner’s April sales of 4,315 trucks showed a decline of 27.9% from March sales of 5,983 and were 47.4% behind the 8,209 sold in April 2019. For the year to date, Freightliner’s 22,202 Class 8 trucks sold on the U.S. market trails last year’s January to April sales by 11,593 units, or 34.3%. The company’s share of the U.S. Class 8 market has dropped from 38.9% at the end of April 2019 to 36.9% this year, and 34.1% for the month of April. To find the last month that Volvo Trucks sold fewer than 1,000 Class 8 units in the U.S., you’d have to go all the way back to January 2012. The OEM sold 951 trucks in April, a drop of 44.6% from March sales of 1,717. Compared to April 2019, sales dropped more than half (59.6%) from 2,199 trucks sold. For the year to date, Volvo sales are down 31.2%, slightly more than the decline for the entire market. Volvo-owned Mack Trucks outsold Volvo Trucks in the U.S. Class 8 market in April with delivery of 1,063 units, a 24.3% decline from March sales of 1,404 and 44.8% beneath April 2019 sales of 1,924. Mack has actually gained market share in 2020, going from 6.6% of Class 8 trucks sold at the end of April 2019 to 7.8% at the same point this year. April 2020 sales represented 8.4% of the market, which may be attributable to the heavy presence Mack has in the vocational market. Kenworth sold 2,290 Class 8 trucks in April, a 15.7% decline from March sales and 39.0% behind April 2019 sales. For the year to date, the company has sold 9,508 units, 20.5% behind last year’s pace of 11,955. As for market share, the company’s smaller-than-average sales declines have actually increased its share of the market, which climbed from 13.8% at the end of April last year to 15.8% at the same point this year and reached 18.1% for the month of April 2020. Peterbilt sales of 1,553 were 30.9% behind March sales of 2,247 and 59.6% beneath April 2019 sales of 3,842. For the year to date, Peterbilt sales nearly match the industry average, declining 30.3% compared to 30.7 for the entire industry.

Polite protesting truckers get results in Washington

WASHINGTON — Naysayers had been at it since before the start of the May 1 “mayday” protest by small trucking business owner-operators. It seemed that no one, perhaps not even the protesters themselves, thought the protest would result in much change. Many thought that, like the “slow rolls” that happened in Houston, Los Angeles and Phoenix earlier, and even like past trucker demonstrations in the capital, truckers would do their thing and then go home, claiming victory for raising awareness of the truckers’ plight while accomplishing little, if anything. This protest was different. The movement of owner-operator trucks to parking places along Constitution Avenue almost didn’t resemble a protest at all. Horns were blown at specific intervals, but when is Washington ever without the din of traffic noise? In the COVID-19 pandemic environment, traffic was already severely reduced, and the usual throng of tourists was gone. Well-mannered trucking-protest participants made friends of Metro and Park Police and Secret Service agents. Local residents and workers made signs for their cars and vans, mirroring the messages they had seen on protester trucks and blowing their horns, too. Smells wafted from charcoal grills as people gathered under waving American flags to share the dinner sizzling on the coals. When the protest was over after three weeks, the giant piles of litter left after most protests weren’t there. The polite protesters left the area cleaner than it was when they arrived. Still, the criticism continued. Some said the truckers were fighting for the wrong things. Others said they shouldn’t be protesting at all. Names were called. People were banned from social-media sites because of their ugly verbiage. And now that it’s over, some people question what was really accomplished. A grassroots protest, however, isn’t a labor negotiation. It doesn’t end with a signed contract between union and management. And, under the United States’ form of government, there are no royal decrees to instantly settle disputes. There are channels to follow, agencies to involve. Tangible results take time, but they are results, just the same. So, what results did the polite protesters achieve? They got their White House meeting. They didn’t always agree on the issues, but they never wavered from their desire to be heard. Presidential tweets and soundbites favoring their cause were welcomed, but not enough. Even when their cause made national news due to the sound of air horns during a Rose Garden press conference, they weren’t done. They said they were staying until they got their meeting — and they did. The Department of Justice reversed its decision not to investigate brokers for collusion and for price gouging during a time of crisis. In fact, the one time that protesters blocked Constitution Avenue was in response to a DOJ announcement that it was not investigating. That decision changed, quickly. Although some of the protesters’ demands were already being worked on by the Owner-Operator Independent Drivers Association (OOIDA), things were proceeding rather slowly. During, or perhaps because of the protest, OOIDA increased the urgency of its campaign. The organization sent a call to action to its members, sent letters to all members of Congress and then sent another letter to House and Senate Leadership, filed a petition with the Federal Motor Carrier Safety Administration (FMCSA) and issued numerous press releases and articles through its own in-house publication. The protest generated presidential interest in the application and enforcement of 49 CFR 371.3, the regulation that requires brokers to share load information, including the amount paid by the shipper, to all parties involved in the transaction who request it. Encouraged by broker organizations such as Transportation Intermediaries Association (TIA), brokers commonly ignore the requirements of the regulation by forcing carriers to waive their rights of access to the information in order to do business, or by making the information available under conditions that most carriers cannot meet. In the White House meeting, Chief of Staff Mark Meadows was clear that the issue needs to be fixed. The protest woke the public as well as many government officials to the idea that small business trucking carriers are underrepresented when changes to regulations are discussed. As pointed out by United States Transportation Alliance (USTA) CEO Mike Landis, nearly 90% of all registered carriers have 10 or fewer trucks and are too small to join the industry giant American Trucking Associations (ATA). Yet, when changes are discussed, ATA often has a seat at the table — while small trucking business don’t. Brokers now know the spotlight is aimed squarely at them. The protesters acknowledge the free-market system and, except for a scant few, aren’t calling for limits on broker revenues. But the protests shined a light on those shadowy parts of the brokerage business, such as demanding large payments from customers while only spending a small percentage for the actual service performed. There are more arguments and, perhaps, litigation to come, but brokers are on notice that they are being watched and questioned. The protesters earned the admiration of many among the millions of truckers who weren’t at the protest with their display of unity and their perseverance. Many doubted they would get anything done. They were wrong. A group of people who, as Jeremy Johnson, administrator of the Facebook Group The Disrespected Trucker, said “couldn’t agree on a free cup of coffee” stood together with the Eastern European group, the Hispanic contingent, the Sikh business owners and the rest, a diverse group of ethnicities and genders. They weren’t sure who would speak for them, and demands varied from group to group, but they were determined to be heard. So, while concrete results are still to come, the protest has achieved more than anyone expected it to. Wheels are turning at DOJ and FMCSA, under the watchful eye of President Trump and his staff. Voices have been heard. More importantly, the protest has brought together more truckers than any in recent memory. While it’s doubtful that the number of trucks in Washington ever exceeded 200 at one time, many participants rotated in and out, trying to devote time to the cause while dealing with personal and family matters and maintaining at least a partial revenue stream for their businesses. Estimates range from 500 to 1,000 total truckers spending at least some time at the protest. One group, The Disrespected Truckers, had less than 3,000 members prior to the protest. In less than three weeks, that number swelled to more than 9,000. The usual complaints about the business of trucking were replaced by discussion of the protest and its goals. Other Facebook groups have seen similar results. Even as the protest was winding down, some truckers were still on their way to Washington to join in. The protesters know there are remaining issues to resolve, and the fight isn’t over. In trucking, there will always be more issues to resolve. If needed, one strong and growing group of owner-operators is ready to return to Washington to politely resume the fight.

White House meeting produces ‘sort of a victory’ for jubilant protesters

WASHINGTON — On the 20th day of protest along Constitution Avenue in Washington D.C., more than 100 small business truckers got what they’ve been waiting for — a meeting at the White House. Two representatives of the protesters, Michael Landis, CEO of United States Transportation Alliance and Sergey “C.J.” Karman, CEO of Ezlogz and admin of the Ezlogz Slavic Community group on Facebook, were ushered into the West Wing just before 9:30 a.m. Eastern time on May 20 for the meeting. From the government side, President Trump’s Chief of Staff Mark Meadows, was joined by Acting FMCSA Administrator Jim Mullen and Staff Secretary Derek Lyons. As Landis and Karman exited the White House after the meeting, group spokesperson Janet Sanchez went live with a Facebook video. “Our boys just got out of the White House,” she announced. “They were in there for over an hour, and they came out with smiles.” A crowd of protesters and onlookers quickly gathered as Karman and Landis stepped up to a small public address system. Karman took the microphone first. He thanked the administration for hosting the event and for the opportunity to speak. “We answered a lot of questions,” he said. “We told them about price gouging, collusion, and anti-trust. We told them about the hard-working Americans who are driving and have no money, because the money has already been divided.” Next, Landis spoke. “We were tested, I can promise you that,” he said. He related that Mullen had peppered the pair with questions as the meeting commenced, but they held their ground. “What we can back up with truth and our experience, they can’t touch,” he said. Landis spoke to the administration officials about the lack of representation of the small business truckers. He pointed out that organizations such as the American Trucking Associations (ATA) often have the ear of government agencies despite representing only a small percentage of carriers. “That has to change,” Landis told officials. The previous evening, Landis outlined his position in an exclusive interview with The Trucker. “The ATA (American Trucking Associations) represents trucking to the government, but little guys like us can’t be members,” he said. “The interests of the people with money are overriding the concerns of the little guy.” Landis continued, “If you think that 89.7% of for-hire carriers are little guys, (with) 10 trucks or less, and ATA does the talking, that means that 89.7% of us aren’t represented.” Landis conceded that the percentage he quoted was a year or more old and might have changed, but, he said, the number wouldn’t have changed by much. Preparing for this morning’s White House meeting, he said, “We have a chance to be a true voice of what we’re doing on the road, and the truth behind it. We need to have active truck drivers that can have a say in things,” adding, “I want to use this as a way to create that open line of communication, from now on.” One of the high points of the meeting occurred when the pair explained that brokers were not complying with the requirements of 49 CFR 371.3, which requires disclosure of information for each load hauled to all parties who participated, upon request. Karman related that Meadows then asked Mullen, “Is that a rule?” Mullen responded in the affirmative. “Then why aren’t you enforcing it?” Meadows asked. As Mullen explained issues with authority and jurisdiction, Meadows asked for five “setup” packets from brokerage firms and the names of five brokerage CEOs. Landis and Karman explained how brokers were asking carriers to waive their rights to information in their contracts, refusing to do business with those who refused. “Is that true?” Meadows asked Mullen. When Mullen answered affirmatively, Meadows told him, according to Karman, “You need to fix that.” The topic of the petition filed yesterday by the Owner-Operator Independent Drivers Association (OOIDA) asking the FMCSA to require brokers to provide load information within 48 hours was discussed. Karman made it plain that the protesters don’t think the proposal goes far enough. “We need that information up front, while we are negotiating the load,” he said. Karman further called on truckers to report claims of broker gouging to the Department of Justice, which Meadows said would be investigated. Landis went on to explain how he had discussed his claim that small business truckers are not represented at government agencies and committees, using the same argument he had given to The Trucker the previous evening. “For us, this is a pretty good step in the right direction. I’m not going to call ‘victory,’ but they understand that we have no representation except for ourselves,” Landis said. “It’s a ‘sort of’ victory,” Karman interjected. “They understand the issues and they understand that we, as Americans, want this fixed, that as Americans, for Americans, we want a voice,” Landis continued. Karman added that when the pair asked if President Trump would be joining the meeting, they were told by Lyons that Trump couldn’t attend but was, in fact, listening to the live feed. Karmen related that Meadows had expressed thanks to the protesters for sticking together throughout the protest and that the chief of staff said, “It’s time to go home.” Karmen then recommended the protesters stay one more day, “to see what happens and to celebrate.” Landis concluded, “The president is on our side. He wants us to succeed, and he doesn’t want us to be overrun. We won the battle, but we’re still in a war.” To wild cheering, he said, “Let’s go celebrate.” Satisfied that, after 20 days of protest, they had finally achieved their goal of a White House meeting, the group gathered for a photo with the Washington Monument in the background. The feeling was that their voices, as well as their air horns, had finally been heard. Lisa and Lee Schmitt, co-hosts of the “Trucking With the Schmitts” Internet radio show (www.blogtalkradio.com/truckingwiththeschmitts) that airs every Monday at 7 p.m. Central time, were excited about the meeting results. “We just watched the video,” Lisa Schmitt said, “and we’re going to watch it a few more times to make sure we get it all.” Schmitt, who said the couple had been in Washington at the start of the protest, marveled at the unity shown by the protesters. “People say the brotherhood of truckers is gone,” she said. “But we saw it — the brotherhood is alive. I wish there could have been 1,000 trucks,” she added. Correction: This article originally stated incorrectly that Trump Senior Adviser Jared Kushner was present at the meeting. Kushner was not in attendance. 

End in sight as protesters prepare for White House meeting

WASHINGTON — As protesting truckers wind down Day 19 of their Washington D.C. protest on May 19, they are on the cusp of realizing their biggest protest goal — a meeting at the White House. Selected individuals have been invited to a West Wing meeting on Wednesday, May 20. It has not been confirmed that President Trump will attend; however, the meeting should satisfy trucker demands to meet. Exactly who will represent the truckers is as yet unannounced. United States Transportation Alliance (USTA) CEO Michael Landis will almost certainly be among the participants, but no official announcement has been made. Reports that a representative of the Eastern European trucking group will attend, along with an attorney, are unconfirmed. Another area of speculation is the list of demands the group will bring to the meeting. Broker transparency is a term commonly used by protesters, but many want the government to regulate the percentage of load revenue that brokers can keep. While transparency is already written into the regulations in 49 CFR 371.3, brokers often evade the disclosure requirements by requiring carriers to waive their rights to the information or making access to the information so difficult as to strongly discourage carrier review. Revising the transparency requirements would certainly be easier than forcing a revenue percentage cap on brokers, which some would see as interference with the free market. The Owner-Operator Independent Drivers Association (OOIDA) today filed a petition with the Federal Motor Carrier Safety Administration (FMCSA) asking for a rulemaking that would require brokers to automatically provide a copy of the transaction record within 48 hours of the completion of a load. The proposed rule would prohibit brokers from including any provision in contracts that would waive the carrier’s right to access this information. Yesterday Washington protesters got a huge boost in morale when President Trump made them a part of the agenda at a May 18 roundtable discussion with restaurant industry leaders at the White House. As Eugene Scalia, secretary of labor, delivered comments on reopening the U.S. economy, Trump interrupted with, “And Gene, you have to help the truckers, also.” Scalia assured the president that his department has been talking about the topic, and Trump continued, “And I’ll tell you, they’re, they work hard, and they have brokers that take a lot of their business away. They (brokers) don’t work so hard. They sit in an office someplace, it’s not good. So, I’d like to help the truckers. All right?” There was immediate criticism of the labor secretary for laughing and smiling before responding to the president. Whether the laughter expressed a lack of concern for truckers, as some claimed on social media sites, or a lighthearted acknowledgement of the horn-blowing protesters that have disrupted outdoor events at the White House wasn’t clear. Protest organizers and spokespersons talked nearly continuously throughout the day Tuesday, polling protest participants and solidifying the requests they will make at the meeting.

United States Transportation Alliance joins DC protest; aims to help provide a common voice

The problem with a grass-roots movement is often determining which blade of “grass” will speak for the group. That’s been a visible issue with the small trucking business protest, now in its third week in Washington. A review of the signs posted on the 100 or so parked trucks along Constitution Avenue reveals demands for respect; broker investigation, regulation or transparency; elimination of electronic logging devices (ELDs); repeal of hours-of-service (HOS) regulations; and a few other causes thrown in for good measure. Reading through thousands of social-media comments by protesters and supporters only muddies the water further. One can imagine a make-believe scenario where the proverbial genie appears to the protesters to grant them three wishes … and sets off a weeklong argument about what those wishes should be. Enter the United States Transportation Alliance (ustransportationalliance.org). Conceived in the notion that the organizations with lobbying power in government exist to serve everyone except small business truckers, USTA, a 501c6 nonprofit, gives voice to the “little guy.” The hundreds of “little guys” protesting in Washington have need for such a voice. As Mark Meadows, President Donald Trump’s chief of staff addressed an assembled group of protesters on May 14, he asked, “So, you like Mike?” The crowd erupted in cheering and applause. They were cheering Michael Landis, CEO and founder of USTA. No vote was taken to elect him spokesperson, but the trust he has garnered among the protesters makes him an obvious choice. In an exclusive interview with The Trucker, USTA’s president and co-founder Kevin Steichen, along with Ingrid Brown, chairperson of the organization’s corporate relations and safety education, spoke about the protest, the FMCSA’s recent final ruling on HOS regulations, and the purpose of USTA. The FMCSA ruling wasn’t entirely a surprise. “We’re working hand in hand with the FMCSA,” Steichen said. “We attend meetings with them monthly.” Although USTA has input into FMCSA decisions, the organization must wait for the final outcome, just like everyone else. Steichen advised patience with the new rules. “Third-party ‘interpretation’ sucks,” he said.” That’s why we want to read every work and then read it again, so that when we do comment, we’re commenting on facts and not what someone thinks.” Reading the 232-page ruling takes time and could result in communication with the FMCSA for explanation of some of the provisions included. The latest HOS revision is only one of the things the USTA board has been working on. “We are partners and stakeholders in the ‘Our Roads, Our Safety’ campaign at FMCSA,” Brown said. “They brought us in around April of last year and we’ve been a part of it ever since.” More recently, USTA became concerned about personal protective equipment not being available to most truck drivers. “USTA was instrumental in putting together the $75,000 in PPE that is being distributed to drivers, free,” Brown said. “Now we’re working on the next $50,000.” While progress on individual issues is important, USTA’s primary mission is to represent the driver. There are no products or services, save for a hat or T-shirt, to sell to the organization’s membership. Membership dues and donations don’t come close to covering the costs of travel, lodging, food, parking and other expenses incurred on each trip to Washington to meet with lawmakers or the FMCSA. “Being that they don’t drive (a truck), sometimes they don’t understand what we do. We don’t just throw emails at them; we sit at the table and discuss the issues. That’s who we are,” Brown explained. “It can be frustrating to work with FMCSA, but I’ve been doing it for two years,” Steichen added. “We have a love-hate relationship with those guys, but we make it work. Our role is to bridge the gap between FMCSA and the drivers in our industry.” Persistence has been key to the organization’s success in gaining a seat at the table. Larger organizations such as American Trucking Associations, Truckload Carriers Association and Owner-Operator Independent Drivers Association have more available funding and can hire representatives in Washington to speak for them. USTA members must park their trucks, shutting down their own businesses, in order to be present at those meetings. Patience helps too, since everyone at the table comes from a different place. “With frustration comes irrational action,” Steichen said. “You’ve got to look into the future when you decide what you’re going to do.” Steichen has learned that demanding too much at once can damage the chances of a future win, as well as the relationships needed to gain agreements in the future. “We don’t always agree, but that’s life,” Brown added. Despite living in different areas of the country and spending time on the road, the team makes every attempt to present a united front. “We spend hours on the phone with each other, meeting to decide our position on every issue before we take it to the FMCSA,” Steichen said. “When we do issue a statement of position about something, we validify it with FMCSA so that we can give our membership a solid, confident answer.” Between meetings, the group stays in contact with FMCSA management, including Joseph DeLorenzo, director of the office of enforcement and compliance, and Bill Mahorney, chief of the enforcement division. “They do listen,” Brown said. “I sent an email with a question on Saturday and had a response in 17 minutes. It’s not that I’m important or anything; they are responsive to questions and concerns.” The USTA group was initially undecided about joining the Washington protest, wondering if the action might harm the group’s efforts to communicate directly with the FMCSA and other Washington contacts. It didn’t take long to realize that a common voice was needed if the protest was to be effective, and CEO Landis headed for the nation’s capital. While other groups can be credited with organizing the protest, USTA could well be the organization that provides a key to ending it. Questions about USTA can be addressed to [email protected].

Truckers disrupt Trump press conference with air horn symphony on Day 15 of protest

WASHINGTON — Air horns could clearly be heard in the background as President Donald Trump spoke to the nation about the Administration’s latest work on the COVID-19 pandemic today (Friday, May 15). Hours earlier, the president incensed protesters when he claimed in a FOX News interview, “They’re not protesting. They’re there to support me. They love their president.” Trump made similar comments during today’s press conference, which were quickly fact-checked by news outlets. CNN, which has, for the most part, ignored the Washington protest, decided it was newsworthy after all once the truckers’ protest provided an opportunity to criticize Trump. The organization — one that Trump has repeatedly referred to as “fake news” — posted a clip that began with the president saying, “And you hear that outside, that beautiful sound? Those are truckers that are with us all the way. They’re protesting in favor of President Trump as opposed to against. There’s hundreds of trucks out there, and that’s the sign of love, not the sign of your typical protest. So, I want to thank our great truckers. They like me and I like them. We’re working on something together.” CNN co-host Brianna Keilar announced that she wanted to “fact-check” the president’s remarks, saying, “That’s not actually true. Anyone who’s gone down on Constitution Avenue will see that truckers are protesting for a myriad of reasons, but basically they’ve really taken a hit financially.” She went on to explain that truckers have not been recipients of government assistance, saying, “I expect that could change, though, if the president doesn’t want to continue having press events that sound like soccer games.” Janet Sanchez, spokesperson for The Disrespected Trucker Facebook group, posted a live video in which she said, “We’re not here to support anyone.” She urged owner-operators across the nation to come to Washington to join the protest, or to at least shut down their trucks in sympathy. In her video, Sanchez showed trucks “slow rolling” side by side down Constitution Avenue, horns blaring. Other protesters stood in the street or on sidewalks holding signs in protest of “cheap freight” or calling for “broker regulation.” The protest in the capital is noticeably smaller since Trump’s Chief of Staff Mark Meadows addressed the group on Wednesday. After hearing from Meadows, some owner-operators felt the protest had made enough progress to continue without their presence, while others left to return to work after two unpaid weeks of protest. In the photo above, President Donald Trump delivers remarks on the development of a COVID-19 vaccine while air horns can be heard in the background.  

In conjunction with protests in Washington, OOIDA steps up its efforts to enact change

The Owner-Operator Independent Drivers Association (OOIDA) continued a busy week on Wednesday (May 13) with a message to the majority and minority leaders of both houses of Congress. The five-page letter included a list of requests for congressional action. “Congress must provide more targeted relief specific to our industry,” the letter stated, and OOIDA recommended a series of steps. This letter followed up on a May 6 missive, sent to all senators and representatives, that asked for a requirement that brokers provide electronic copies of the information required in 49 CFR 371.3 to carriers upon completion of the load, as well as a prohibition on contract clauses requiring carriers to waive their rights to this information. Under 49 CFR 371.3, brokers are required to keep a record of each transaction that includes, among other items, the amount of compensation received by the broker for the brokerage service performed and the name of the payer. Brokers are required to retain these record for three years, and each party to a brokered transaction has the right to review the record of the transaction. OOIDA’s May 13 letter reiterated those demands and recommended that broker bond requirements be reformed to serve as a greater deterrent to broker malfeasance. Next was a recommendation that the current suspension by the Federal Motor Carrier Safety Administration (FMCSA) of weight and size requirements be lifted because allowing heavier trucks on the road can result in fewer trucks being needed to haul the same amount of freight in a market where there are already too few loads. The FMCSA recently extended the exemption until June 14. The letter went on to recommend a repeal of the Fair Labor Standards Act overtime exemption for truck drivers, saying these laws are outdated. Then came a request for hazard pay for drivers who are working through the COVID-19 pandemic, citing drivers’ personal expenses for personal protective equipment, sanitizer and other supplies as part of the justification. The next section of the letter dealt with the Small Business Administration and the inadequacies in the agency’s ability to get needed funds into the hands of small business truckers. As in the May 6 letter, OOIDA again asked for a suspension of the heavy vehicle use tax, a $550 annual burden for most Class 8 trucks and their owners. Finally, the letter called for enactment of H.R. 6104, the Truck Parking Safety Improvement Act. The letter was signed by OOIDA President and CEO Todd Spencer. OOIDA also issued a “call to action” to its 160,000 members, asking each member to request information in accordance with 49 CFR 371.3 for every load they accept from a broker. Further, OOIDA asked its membership to report any problems with brokers to the association as well as to the National Consumer Complaint Database. Included with the letter to membership were for- letter templates for members to use n requesting the information. In an act of defiance, the Transportation Intermediaries Association (TIA), a trade group representing freight-brokerage businesses, followed the OOIDA call to action with a letter to its own 1,800 member companies, reminding them that making load information available at their place of business only during normal business hours is permissible under the regulations. This practice has been roundly criticized by OOIDA, which said in its letter to congressional representatives, “Brokers know this makes it virtually impossible for most carriers to access records.” In a press release announcing the call to action, the organization included a May 3 tweet sent by President Donald Trump in response to a protest in Washington that started May 1 and is ongoing as of May 14. Rather than acknowledge the protesters, however, OOIDA attributed the reason for the presidential tweet as “public outcry.” Also quoted was the president’s later tweet acknowledging that truckers are being price-gouged. The membership letter, signed by OOIDA Executive Vice President Lewie Pugh, stated, “Trucking has often suffered from chronic overcapacity — too many trucks and trailers and not enough freight. The resulting market conditions are magnified right now. While there is no quick or easy solution, hauling cheap freight is not a viable or sustainable approach, and we strongly advise against it — just as we always have.” With the protest in the nation’s capital entering its 14th day, OOIDA’s call to action and correspondence to Congress provide a welcome assist to the assembled group’s demands for broker transparency. A disconnect remains, however, between members of the protest group, who have been critical of OOIDA, and the organization’s leadership, which is clearly avoiding any association with the protesters. However, it’s clear that the presence of the protesters in Washington is helping raise awareness of the plight of owner-operators. That’s good for the small trucking business owners who are members of OOIDA, as well as those who are not. The story below was reported on May 7. As small trucking business protests continue for the seventh consecutive day in Washington D.C., OOIDA (Owner Operator Independent Driver Association) has stepped into the fray. The organization sent a letter to Congress on May 6, asking that brokers be prohibited from demanding that carriers waive their rights under FMCSR 371.3, which guarantees access to the full record to every party that participates in a brokered transaction. The full record shows how much the broker was paid for the haul and any additional services provided as well as payment to the trucker. The OOIDA letter also asked that the regulation be amended to require the broker to provide the information at the completion of the load. In its current form, the regulation states that the recipient must ask for the information. Brokers have instituted rules, such as mandating that the records can only be inspected at their office location during normal business hours, a requirement that effectively prohibits over-the-road truckers from ever seeing the information. OOIDA had announced that it sent a letter to its 160,000 members on May 1, the day the protest began, warning about dealing with unscrupulous brokers and urging owner-operators to report issues to the FMCSA’s National Consumer Complaint Database, for which a link was provided (https://nccdb.fmcsa.dot.gov/nccdb/home.aspx). The organization has been criticized by some of the Washington protesters for, in their view, not doing enough to support the demonstration. However, OOIDA’s position on broker transparency is not a new one. Given the attention generated by the ongoing protest in the nation’s capital, the timing of OOIDA’s letter to Congress could generate a more favorable response.

Truckers see escalation, results during 13th day of Washington protest

WASHINGTON — After an eventful day in Washington May 13, small trucking businesses protesters came a very large step closer to achieving the goals of their cause as their protest now nearing its third week. President Donald Trump’s Chief of Staff Mark Meadows spoke to the group for nearly 15 minutes, assuring them that Trump is aware of their cause and is listening as the nearly 150 assembled truckers voice their concerns. “The president has heard you, and he wants us to get something done,” Meadows told the group. One major accomplishment, whether intended or not, is that the protest group finally narrowed the field of spokespersons to one. Michael Landis, founder and CEO of the United States Transportation Alliance, was pushed forward by the crowd to speak with Meadows. Accompanied by a round of cheering, he told Meadows that a “stimulus or bailout is not necessarily the biggest thing we’re looking at.” When Meadows responded, “Well, what’s the biggest thing?” Landis responded that broker transparency and driver safety are the biggest issues. “So, I’ll make you a deal,” said Meadows. He then asked the crowd, “So, you all like Mike?” The cheering and applause were decidedly affirmative. Meadows offered his personal email and promised that if Landis puts together a list of priorities and sends it to him, Meadows will act. The wary Landis, who has personally heard years of promises of action from the Federal Motor Carrier Safety Administration (FMCSA) and others in Washington, responded, “We’d like to hear that from the president.” Meadows was unfazed by the comment and accompanying jeers, responding, “Let me just tell you, having the (president’s) chief of staff come out with my security detail and everything else is something that really doesn’t normally happen. So, I promise you I’m speaking on behalf of the president of the United States.” When Meadows added, “And, you can Google me if you need to,” the crowd erupted in laughter. Earlier in the day, a scheduled drive-thru protest of hundreds of buses, sponsored by the American Bus Association and the United Motorcoach Association, was interrupted when trucking protesters moved their vehicles to block travel on Constitution Avenue. Buses were seen making U-turns, trying to find a way out of the blockade and continue their own protest. A hundred or more protesters then occupied the empty street, chanting “USA, USA” and “We want Trump.” Many were waving U.S. flags or holding signs reading “No Cheap Freight” and calling for broker-income caps and greater transparency. Some protesters cheered the buses, believing they had come to Washington in support of the truckers. Others commented that the street blockage was a result of pent-up frustration by demonstrators who had not yet achieved the sought-after meeting with the Trump administration. “They are holding their ground,” said protester Jake Ritz, who posted a video of the event. “When the people of America decide they’ve had enough, this is what you get.” In a later video, Jeremy Johnson of The Disrespected Trucker offered an explanation for the blockade. The Department of Justice, he explained, had issued a statement refusing to investigate brokers for price gouging. “The buses, unfortunately, drove right into a crowd of 200 (angry) truck drivers,” he said. “It didn’t go well.” Law-enforcement officials were on the scene to monitor the mostly peaceful protest. One officer could be seen in videos talking to a group that included protest spokespeople Janet Sanchez, Landis and others, informing the crowd that the street is a major hospital thoroughfare and asking them to reopen the route. The officer reminded the protesters of the cooperation they had enjoyed from authorities since their arrival. Minutes later, the road was cleared, and traffic flowed once again. While some of the protesting truckers expressed solidarity with the bus drivers, the two groups have decidedly different demands. Bus companies are seeking the type of financial relief that Congress provided for the airline industry in a $15 billion package, pointing out that the number of passengers moving by bus each year approaches the number who fly. Unlike the truck demonstration, no demands have been made for changes to current regulations or a meeting with the president. As the trucks returned to their parking places and moving traffic filled Constitution Avenue, protesters wondered if the street blockage had helped or harmed their demands. That question was answered when Meadows showed up to address the group. Several of the protesters spoke to Meadows in turn, detailing their versions of protest objectives. Janet Sanchez spoke of hours-of-service (HOS) restrictions and how they harm owner-operators’ income potential. “Many of you have talked about some of some the hours of operations and the way it’s gone for the independent trucker,” Meadows said. To a round of cheering he promised, “You’ll see action on that by the end of the week.” He said he had already spoken with Secretary of Transportation Elaine Chao, adding, “I wouldn’t be here talking to you if you didn’t have the president’s attention and support.” After hearing a few varied comments expressing different desired outcomes, Meadows exclaimed, “You all are more divided than Congress, down the way!” Continuing his conversation with Landis, Meadows said about broker transparency, “I will call the attorney general of the United States, Bill Barr, as soon as I get back to the Oval Office and ask him to look at it. “ Protesters’ emotions were mostly positive as Meadows and his security team departed, with many in the crowd congratulating Landis on his selection to represent the protesters. Sanchez posted a short video in which she stated, “It’s been a very long and exhausting day, but very much worth the fight and the effort that every man and woman here has put out.” She was adamant, however, that protesters weren’t leaving, yet. “We’re going to hang out here for a couple of days, and we’ll be analyzing the situation,” she said. “We should be seeing some action in the next couple of days.” Trucker Joe Alfaro, who calls himself “Bonafide Joe Alfaro” on Facebook, wasn’t convinced. In his own Facebook video from Channahon, Illinois, he said Meadows’ visit wasn’t good enough. “Everybody demanded the president to come out,” he said. “Mark Meadows gave you guys a bunch of lip service.” Alfaro had been with the protest in Washington until Sunday, May 11, when he had to leave. He urged protesters not to be satisfied with the results so far, and to remain in the capital until more concrete results are achieved — including a meeting with the president himself. Still, the celebrators far outweighed the detractors as the protesters wound down their 13th day. Johnson expressed his pride in the protesters in his video. “You get two truck drivers together and they can’t agree on a free cup of coffee,” he said, thanking the protesters for their unity and tenacity. Their goals may sometimes be a little garbled and the results of their efforts are, as yet, unknown, but there is no doubt that an informal and slightly disorganized group of angry truckers has attracted the attention of the people they set out to confront. In so doing, they have motivated larger organizations with much better funding to step up their game. The story below was previously reported on May 12. There has been little change as owners of small trucking businesses continued their protest along Constitution Avenue in Washington. A few more trucks have arrived to support the effort, but the anticipated meeting with President Trump or members of his administration hasn’t occurred yet. Jeremy Johnson, one of the principals behind the Facebook group The Disrespected Trucker, stays in touch with the protesters and says they are “dug in” for the long haul. There are, however, cracks in the movement’s foundation. Without centralized leadership, it’s hard to tell who speaks for the group. “We’ve had a couple of rough days,” Johnson told The Trucker. “Some people are posting things as if they have something to do with leading the protest, but we’re not following any one group or person. We’re doing this together.” Another problem is that with so many speakers, the protest message can be confusing. “We’re struggling with presenting a united message when we have so many people demanding different things,” Johnson said. Facebook videos are the group’s primary method of communication to the public, especially sympathetic drivers who aren’t physically part of the protest. Some of the videos, like those posted by Janet Sanchez, are inspiring and motivational to the protesters. “She’s a dynamo,” Johnson said. “She’s incredibly high-energy. We’re so lucky to have her.” The problem is that others can post videos, too, and some of those contain dissenting opinions, creating the impression of a lack of organization among the group. The membership of The Disrespected Trucker has swelled to nearly 7,900 and not all the new members are there in support. There’s a financial aspect, too. Some of the protesters are feeling the pinch of buying food and necessities while their trucks are parked at the protest. With no money coming in, financial resources are dwindling for many of them. This has led to numerous attempts to raise funds in support. Several people have posted links to various fundraising efforts, and Johnson said that’s a problem. “There have been several posts about people starting GoFundMe accounts and asking for donations,” he said. “The Disrespected Trucker is not asking for any money, and we will not take any money.” Johnson said he reserves his trust for only one fundraising effort. Anthony Marin has posted a GoFundMe account on The Disrespected Trucker Facebook page and has used the donations to provide portable toilets for protesters, supply food items and rent hotel rooms so participants can be shuttled back and forth for showers. “I know he’s keeping every receipt and keeping it honest,” Johnson said. “But none of the money goes to Disrespected Truckers.” Steve Oatley, CEO of Freight Broker Live and producer of the “Your Favorite Freight Broker” video blog, also suggests that the message of the protesters isn’t clear. He commented yesterday, “I don’t think they know what they’re protesting anymore,” and suggested the protesters might be better served by working with their individual representatives of Congress. Rick Santiago, one of the original organizers of the protest, spoke in a Facebook video yesterday saying, “We need 1,000 trucks in Washington.” However, Santiago’s position has changed substantially from his original assertion that brokers are “gouging” carriers and demanding that broker profits be regulated. Santiago explained that he now believes that both brokers and carriers are simply responding to the free market and that there’s no legal limitations on the amount of revenue the broker can keep. His message has changed to one of transparency. Then there’s OOIDA, which has issued recent press releases outlining the organization’s effort revise federal regulations regarding broker information. CFR 371.3 requires brokers to provide the details of each brokered transaction to each party involved upon request, but brokers often circumvent the requirement by requiring truckers to waive their rights to see the information before agreeing to work with them. Others place restrictions on the carrier’s ability to see the information that make compliance nearly impossible. The OOIDA proposal would prohibit carriers asking drivers to waive their rights and would require disclosure of the information at the time the load is concluded, without requiring a formal request from the carrier. For Johnson, the OOIDA proposal isn’t enough. “We think more broker transparency is a good start,” he said. “It’s a good start. But you and I know that the system is broken. FMCSA and DOT have to let guys like us go into hearings and state our case. Let real truckers speak their minds.” Johnson says he believes that hours-of-service regulations is the bigger issue that needs to be addressed. “We’ve been working on hours of service changes for two years. Two years,” he said. “The president can immediately suspend FMCSRs because of COVID-19, but we can’t get anything done in two years?” Part of the reason for the protesters’ frustration, according to Johnson, is that the government listens to large, well-funded organizations that represent huge corporate carriers, denying a voice to the average owner-operator. “ATA (American Trucking Associations) and the organizations representing big carriers get the attention,” he explained. “These guys are constantly fed money from their membership. We, the small trucking businesses, need a contact number for a liaison to the FMCSA. We want direct contact.” While the protest has garnered some high-profile attention, there’s been no action. That’s not good enough for Johnson. “Our perception is that they think we’re just a bunch of whiney truck drivers,” he said. “Well, we’re dug in, and we’re not leaving.” Like many of the protesters, Johnson thinks OOIDA hasn’t done enough to support the DC protesters. “The U.S. Transportation Alliance is right here with us,” he said. ”Where’s OOIDA?” As the days accumulate, the protesters are resolved to continue the fight. “We still want a meeting,” Johnson said. “The president has noticed us, but we want our voices heard.” Whose voice will represent the protesters — and what that voice will say — will be determined later. For now, the protesters just want to know that someone is listening. [Photo courtesy of Diego HZ]

Protesters jubilant as Trump says truckers are price gouged

Social-media websites lit up this morning (May 8) with the news that President Donald Trump had discussed the protest in a call-in appearance on the FOX News network’s “Fox and Friends” show. During a discussion about COVID-19 and other topics with the president, co-host Ainsley Earhardt prompted the comments by asking, “Everything in front of us, our paper, our water bottles, our pencils, our phones, delivered on a truck, and you tweeted about American truckers being price gouged. What are you going to do about that?” The president responded “Oh, they are price gouged.” He then acknowledging the protest near the White House, saying, “it looked like a thousand trucks.” Trump continued, “All they want is to be treated fairly, and we’re going to treat them fairly. You know, what they’re asking is almost nothing in many cases.” After claiming that the truckers are “great, great people,” the president concluded his answer by saying, “We’re going to take care of them.” While the protesters gathered in Washington haven’t given up on their demand for a meeting with Trump or at least administration officials, there was plenty of discussion on social-media platforms. Many feel the president’s comments are a sign that the protest is having an effect. Others cautioned that positive comments are no guarantee of action and that Trump’s statements could simply be lip service. A number of commenters speculated on what Trump might have meant when he said the protesters would be taken care of. The protesters moved their trucks from Constitution Avenue yesterday (Thursday, May 7) in response to a request by the National Park Service; parking was prohibited for 24 hours in the protest area due to a planned “special event.” While the nature of the event wasn’t specified, the president appeared at nearby the World War II memorial to place a wreath this morning, commemorating the end of World War II. With the parking restriction to be lifted at noon, protesters wondered if the park police would honor their promise to allow the protest trucks to return. Tensions were heightened when dozens of orange-painted dump trucks were parked in the former protest area. At noon, however, a police escort was provided for the returning protesters, who paraded back to the Constitution Avenue parking area with American flags waving from most of the vehicles. The protest, originally scheduled to last three days, is now in its eighth day. Protesters vow to remain until a meeting with the president or his administration is granted. Rick Santiago, one of the original protest organizers, posted a Facebook video in which he said the protest had accomplished its purpose and the trucks should leave Washington and pursue broker reform through filing complaints. Truck driver and protester Janet Sanchez, however, posted a video of her own, vowing that the protesters are staying. A few trucks have left the capital for various reasons, but others are on the way to Washington, and the ranks of the protest are expected to grow. The coming days will determine what actions the president will take and how the protesters will respond. Photo of Washington protesters courtesy of Rebecca Doty.

Exclusive interview with D.C. protesters reveals group’s desire to present case, avoid ‘three-ring circus’

Day 5 of the owner-operator protest dawned in Washington on May 5, with rain on the way. That won’t be enough to deter protesters, who have resolved to remain in place on Constitution Avenue until they get their meeting at the White House. “I’m full of energy and ready to keep going,” said protester Janet Sanchez in an exclusive interview with The Trucker. “I came here to get a job done, and I’m staying until it’s finished.” In another interview, Jeremy Johnson, another member of the protest, said, “We’re standing strong.” Both Johnson and Sanchez are administrators and members of The Disrespected Trucker group on Facebook. The group, started in late July 2019, currently boasts more than 7,000 members. Many of those members joined the group in the past two weeks as the current protest unfolded. The protest continues to grow. “We had another six or seven more trucks join us today, and there are more on the way,” Sanchez said. “We’re not leaving until we get our meeting.” Protests involving large numbers of trucks are often at odds with the local population and government. That isn’t happening here, and protesters say they are surprised at the local support they have received. “Right here, where we are, the police, the Secret Service, the park police — they’ve all been nothing short of supportive,” Johnson said. “At noon they come in with 15 pizzas and another 20 at suppertime. We ask who is sending them, and it’s always ‘concerned citizens of Washington D.C.’” Sanchez agreed. “They’re great! We have police officers that come by and have dinner with us,” she explained, adding that even some of the local motorists are getting involved. “Some of the motorists are making ‘#MakeTruckingGreat’ signs and putting them on their cars; then they honk as they go by.” Protest participants are working hard to keep relations good, Johnson said. “You walk up and down the street past all of these trucks, and you don’t see a piece of trash anywhere,” he said.” We’re doing our best to protest peacefully, within the law.” The protest has achieved results. So far, the White House has acknowledged the group’s presence with the gift of a bag full of hats. Names have been recorded for the process of security clearance for a potential meeting. And President Trump himself thrilled participants with a Saturday-night tweet that began, “I’m with the TRUCKERS all the way.” However, the demonstrators are looking for more than attention from government or media. Being noticed is a first step, but action must follow. They want a meeting with the president, or at least with members of his administration who will hear their complaints. One of the first questions that must be answered if a meeting is granted is who will go to the meeting. “I’m on the list, but obviously, all of us can’t go to the White House,” Sanchez said. Johnson was a little more specific. “Janet Sanchez will definitely go,” he said. “Either me or Shawn (McIntosh, another member of The Disrespected Trucker), if we get the chance. And Mike Landis, CEO of the U.S. Transportation Alliance.” Johnson understands that the size of the delegation is important, too. “We have to be careful who goes,” he said. “Everyone has to pass a background check, and we don’t want the meeting to turn into a three-ring circus.” Once it is determined who will attend the meeting, if it happens, the question of what issues will be presented is critical to the cause. It’s also where Sanchez and Johnson differ — for now. “You can’t just walk in and demand regulation of brokers. What happens when someone else wants to regulate how much truckers are paid?” said Johnson, adding that that hours-of-service (HOS) reform is No. 1 on his list. “They lifted the HOS restrictions because we (truckers) were deemed ‘essential’ during the COVID-19 crisis,” he explained. “News flash: We’re essential 365 days of the year.” Johnson also thinks too many regulations are put in place without considering the input of drivers and small-business owner-operators. “We want immediate suspension of all HOS regulations until we get a seat at the table,” he said, explaining that the 14-hour rule is the first target. Sanchez, on the other hand, wants to target income. “The big issue is money,” she said. “I’d like to see the broker percentage (of load revenue) brought down to 10 to 20%, with at least 80% to the trucker. Trucking is a high-risk job, away from home, and the trucker bears all the expense.” Her reasoning looks to volume. A brokerage has multiple employees, and each one might book 10 to 15 loads a day, while the trucker can only book one, she explained. She also wants more transparency in broker-trucker dealings. “A lot of truckers would like to see the full amount the broker is paid before the load is accepted,” she said. “That way, everything is transparent, and the trucker knows if the broker is keeping too much.” Sanchez listed hours of service as the next item to be addressed, followed by the treatment of drivers. “We also want to see drivers protected,” Johnson said. “Too often, detention isn’t paid. Our time should be paid, too.” He listed access to restroom facilities at shipper and receiver locations as another issue. “It always seems everyone is protected except the trucker,” he concluded. While the protest continues, the group’s de facto leadership plans to continue polling the participants to make sure everyone is on the same page. “We’re trying to take opinions from the drivers, then the more experienced drivers are working to narrow it to the two or three main points,” Sanchez said. Keeping the demonstration peaceful is an important goal, too. “Janet, me and Shawn, wherever we can keep things calm and moving forward, we want to be there,” Johnson said, adding that it’s important that the group is together. “My message is one of unity between all of us,” Sanchez said. “Really, we can accomplish a lot of things if we’re all together.” Both Johnson and Sanchez are confident that persistence and unity are keys to achieving their objectives, and they’re asking for public support. “Truckers move America,” Sanchez said. “America needs to stand up for its truckers.” [Photo courtesy of Rebecca Doty via Facebook]

‘Mayday’ protesters garner presidential attention but end result of truckers’ efforts remains to be seen

On a news-filled day when protests erupted across the country to protest COVID-19 “shelter in place” restrictions, about 100 independent owner-operators accomplished something that other protesters routinely fail to do. They got the direct attention of a sitting U.S. president. At 9:42 p.m. on Sunday, May 3, President Donald Trump tweeted, “I’m with the TRUCKERS all the way. Thanks for the meeting at the White House with my representatives from the Administration. It is all going to work out well!” Earlier in the day, White House representatives showed up at the demonstration site bearing gifts — a cloth bag emblazoned with the presidential seal and filled with hats bearing the messages “USA Strong” and “Keep America Great.” The Trump tweet was the first official public acknowledgement from the government of awareness of the “mayday” protest that began May 1. The ruckus attracted the attention of 160,000-member OOIDA (Owner-Operator Independent Drivers Association), which weighed in on Saturday with an informational letter from Lewie Pugh, the association’s executive vice president, to its membership that acknowledged historically low freight rates and provided a link to report broker abuse. Social media erupted with responses to the protest. Some people were jubilant at the movement’s success in attracting the attention of The Washington Post and other media outlets, culminating with a tweet from Trump himself. Others cautioned that the attention was only a first step and that the issue that could take more time, and more protest, to resolve. Still others cautioned participants to be careful what they wish for. Mark Rasmussen commented on The Trucker’s website, “I want to be an owner-operator and own my own business, but I want the government to take care of me. You can’t have it both ways.” A common sentiment expressed was that owner-operators who haul cheap freight are helping keep rates low for everyone. Brandon Montgomery, who posted that he’s been parked for seven weeks now, said, “If you haul cheap freight YOU are the problem. PARK THOSE RIGS.” The issue facing protest organizers and participants now is what they’ll do with the newfound attention, especially if, as expected, the result is a meeting with Trump himself — or at least with administration officials. The protest has been centered around low freight rates, but opinions diverge quickly from there. Should organizers ask for federal regulation of brokers with, perhaps, a mandated percentage of revenue brokers are allowed to keep? And, if so, what is a reasonable percentage? Another potential avenue is increased transparency. Brokers are already required to provide rate information to every party that participates in each load. Truckers are entitled to know how much the broker was paid by the shipper, any additional services the broker provided and more. All that is required is that the owner-operator ask for the information. The majority of owner-operators believe, however, that asking for this information will result in being “blacklisted” by that broker and being unable to conduct further business. A federal mandate that brokers must provide this information at the time of settlement with the trucker wouldn’t necessarily increase the percentage of revenue to the carrier, but it would increase broker transparency by eliminating the trucker’s responsibility to request it. Broker retribution would also be greatly reduced, since they would be providing the information to every carrier they contract with. OOIDA expressed support for this position April 28 when Norita Taylor, media spokesperson for the group, told The Trucker that OOIDA would like to require brokers to provide electronic records as soon as a haul is complete. A meeting with the Trump administration might be an opportune time to discuss financial assistance for owner-operators, too. As self-employed business owners, most don’t qualify for unemployment benefits in their home states. The U.S. Small Business Administration has been instructed to make an additional $50 million available for low-interest loans to small businesses. The funds, however, are distributed to the states, which then work with financial institutions to provide funding to small businesses. The process for obtaining the cash isn’t clear, and there’s a question of whether small trucking businesses would qualify for the loans since they aren’t officially “shut down” by government mandate. Suspending operation due to unprofitable freight rates may not be looked upon in the same light as a mandated closing. Some owner-operators may not be able to put together an application package to satisfy lenders, which depend heavily on business plans, profit-and-loss statements, and creditworthiness to decide who gets the money. Other complaints that have been made include elimination of the requirement for electronic logging devices (ELDs), regulations addressing detention conditions and pay, access to restrooms and break areas at shippers’ and receivers’ facilities, and even a ruling by the FMCSA that would allow interstate truckers to carry loaded firearms in all jurisdictions. A video posted on Facebook today (May 4) by one of the protest organizers, Rick Santiago, demands that the FMCSA be “eradicated” and antitrust laws be eliminated, although an explanation of how either action would come about — or how it would benefit owner-operators — was not provided. Hopefully, organizers will remain focused on a small number of key issues as they remain in Washington to continue pursuing their cause. [Photo courtesy of Rebecca Doty via Facebook]

‘Mayday’ protests begin; exploring the issues and looking at what can be done

Today’s the day. May Day. Or “mayday,” as protest organizers who have adopted the well-known international radio distress signal, have labeled May 1, 2020. Demonstrations have begun in Washington D.C. and in Chicago. In Washington, dozens of trucks are parked along Constitution Avenue, within view of the White House, blowing their air horns in unity with the cause. Reporters from several local television stations have covered the event, broadcasting coverage of the parked trucks and crescendo of air horns. Interviews with organizers and participants have been observed on sidewalks near the demonstration. Homemade banners proclaiming “Make trucking great again” hang from commercial motor vehicles, and American flags are everywhere. In Chicago, more trucks gathered at a Northbrook truck stop in preparation for a Chicago protest. Social-media venues have been flooded with photos, videos and comments supporting the demonstrating drivers. Protests were also scheduled in Houston, Phoenix and Los Angeles. All three cities saw “slow roll” protests last week, and organizers have promised to return for today’s “mayday” demonstration. Organizers are hoping to raise awareness of issues faced by small-business truckers, most of whom own their trucks. The most-expressed complaint is low freight rates, usually accompanied by complaints that brokers are paying truckers too little, keeping excessive amounts of the revenue paid to them by shippers. Other complaints are that drivers don’t have access to masks, gloves and sanitizer despite being categorized as essential workers; that the government hasn’t done enough to ensure adequate available food and parking; and that government regulations, especially the requirement for Electronic Logging Devices (ELDs), are overbearing and counterproductive. While it’s true that demonstrations can draw the attention of government, press and public, the publicity generated isn’t always positive. In some ways, these protests can harm the public’s perception of the protesters, in this case, truck drivers — and the trucking industry as a whole — at a time when help is needed. Protests that interfere with traffic, either by blocking lanes or “slow rolling,” can incite public annoyance and anger. There are also safety issues to consider as motorists are impeded by the parade of protesting truckers. Another issue is effectiveness. It seems that every year brings another protest or work stoppage that results in minimal actual change. Whether the public feels the issues faced by truckers this year are more serious than those in past years remains to be seen. There’s also the argument that at least some of the protesting truckers are suffering pain that is, at least in part, self-inflicted. Often, small-business truckers treat settlement checks as personal pay rather than business revenue, living from check to check just as employees of businesses sometimes do. Trucking businesses that don’t set aside revenue for maintenance, repairs, taxes and other expenses are vulnerable no matter how large or small. It’s a sad reality that many drivers who work hard and are excellent drivers are not quite as skilled at managing their businesses. Many owner-operators are one major repair, accident or cargo claim away from insolvency. Vehicle selection can be problematic too. Large carriers replace their trucks regularly, keeping a close eye on maintenance costs and replacing equipment as the costs are expected to rise. Owner-operators, for the most part, purchase used, older equipment that is less expensive to buy but more likely to suffer expensive mechanical problems. While the cost of repairs can hit the budget hard, the owner also loses revenue that could have been earned while the truck was in the shop, exacerbating the problem. How the trucks are equipped also matters. Owner-operators often want bigger engines, heavier components, larger sleepers and more chrome — features that well-run carriers eschew for economic reasons. The result is that big-name carriers can accept lower freight rates, helping drive down the average for everyone. Owner-operators can experience difficulty in contracting with regular customers because many of those customers prefer to deal with a few large carriers that can handle all of their freight rather than hundreds — or even thousands — of individual truckers. Most of the larger carriers have customers they contract with for set rates. The owner-operators who depend entirely on the spot market, where rates are much more volatile, can struggle when the rates decline. Those who depend on the spot market often find loads on Internet load boards, resulting in each operator dealing with a variety of brokers without developing a solid business relationship with any of them. One way truckers can help themselves is with a regulation that’s already in place. The Federal Motor Carrier Safety Regulations part 371.3 governs records that must be kept by freight brokers. For each brokered load, that record must show from whom the load was obtained, the carrier it was brokered to, the services provided by the broker, and the amount of compensation the broker received. The requirement in 371.3(c) is one that few owner-operators take advantage of. It states, “Each party to a brokered transaction has the right to review the record of the transaction required to be kept by these rules.” Truckers who believe a broker has retained excessive amounts of the load revenue can verify their suspicions by simply asking to see the record, which must be provided upon request. Since that record also includes compensation for nonbrokerage services, such as detention pay or performance penalties, the owner-operator can review those numbers, too. Since brokers must receive the authority to operate from the FMCSA just as carriers do, truckers have an avenue to submit complaints for brokers who don’t comply. A common complaint is that some brokers will “blackball” carriers who ask to see this information. That’s a legitimate concern for owner-operators who can’t afford to lose a source of loads. That’s one reason that OOIDA, according to media spokesperson Norita Taylor, supports the requirement for brokers to provide electronic records to the carrier as soon as the haul is complete, negating the obligation of the carrier to ask for them. “The cost of trucking is a little more transparent than the broker’s cost,” said Jeff Hopper, vice president and chief marketing officer for DAT. Requiring the broker to provide the information required in the regulations would undoubtedly increase the transparency of the broker’s business. Finally, there’s the power of simply saying, “No.” Brokers and shippers will always attempt to find the carrier who will accept the lowest rate, because it’s in their financial interest to do so. When rates are down and more truckers are looking for a load, negotiating becomes more difficult. And it’s true that some owner-operators will accept loads in order to keep cash, however little of it, flowing into their business. Some may accept a low-payload because the delivery positions them for a better one, a bigger-picture view that can be beneficial. There’s no question, however, that when no one accepts a low rate, that rate will rise. Growers, distributors and manufactures don’t profit by keeping their products. In any business, difficult economic times call for the best possible management practices. Owner-operators who know exactly what it costs to run their businesses and who remain acutely aware of which loads help them achieve their financial goals are the most likely to survive. [Photo courtesy of Rebecca Doty via Facebook]

Drivers, other industry insiders weigh in on issue of dropping freight rates

The stories from owner-operators about low freight rates abound. Tony Filla commented on The Trucker’s Facebook page, “The bottom dropped out. They’re (carrier customers) not shipping, so there went 60% of my long-distance freight out the window.” Filla usually hauls rebar and other fabricated products on a flatbed trailer. Due to the reduction in loads, he’s now working in his carrier’s local fleet making shorter regional runs. Under normal operating conditions, he would use load boards to pick up a return load from a broker, but the rates are so low that he is deadheading back, adding that he is “surviving for now” and has no desire to haul freight for “free.” Kevin Kocmich is doing a little better. “I’m not going backwards,” he said. “Times are tough now, but my income hasn’t dropped too much.” In March, Kocmich was named the 2019 Owner-Operator of the Year by the Truckload Carriers Association. He is leased to Diamond Transportation System (DTS), which assigns oversize loads received from its contract customers. Kocmich depends on brokers to supplement the loads he receives from DTS. “Rates are down, but so is fuel, at least 25%,” Kocmich said. His advice to struggling owner-operators is to know their costs of doing business. “You gotta know the numbers of your business,” he said. “How can you protest when you don’t even know your own numbers?” Kocmich isn’t planning to join any organized protests. “I stay kind of neutral,” he said. “I agree on some stuff and disagree on some.” He was clear about how protests should be conducted, however. “I don’t think they should be slowing traffic and getting the police involved,” he stated. Norita Taylor, media spokesperson for OOIDA, talked numbers, too. “Know your cost of operations. Know your customers,” she said. “And, always, safety first.” While Taylor did not express support for any particular protest, she was supportive of the rights of the participants. “Our general take on any protest is that everybody has the right to legally protest,” she explained. “We wouldn’t support blocking roads and that sort of activity, but we support their right to protest so long as they do it legally and safely.” OOIDA, Taylor explained, doesn’t take an official position on broker rates paid to carriers, but the organization does support brokers providing electronic records to owner-operators as soon as the haul is completed. The group also supports waiving both Heavy Vehicle Use Tax (HVUT) and Unified Carrier Registration (UCR) fees for 2020. Jeff Hopper, vice president and chief marketing officer at DAT, recommended that owner-operators pay particular attention to rates. “Rates are negotiated between broker or shipper and the carrier,” he said. “The best time to address rates is in the negotiation process.” Hopper vehemently denied recent publicity that claimed DAT sets broker rates. “DAT does not set rates. All rates are negotiated between the parties involved,” he said. “We believe the DAT load board is the largest public marketplace for loads in the country.” That status as “the largest public marketplace” provides lots of data that can be useful. “We use anonymized data to identify trends in rates, regional activity and other factors,” Hopper continued. “We use past data to report on what’s happening in the market currently and also to forecast what we think will happen in the future.” Owner-operators and brokers who are subscribers to DAT can use the information found there, including summary reports produced by DAT, to determine average rates that they can then apply to their own loads. Hopper was clear, however. “We do not take a percentage of revenue and we certainly don’t set rates,” he said. Responding to suggestions that owner-operators cancel their subscriptions to DAT, Hopper said, “It’s everyone’s right to do so, but they’ll lose access to a lot of loads as well as information that helps them make good business decisions.” Good business decisions are especially critical when freight rates are down. “We should remember that we’ve never really seen an event with such an economic impact,” Hopper said. “There’s just not enough loads. After an initial surge for groceries, shippers aren’t shipping.” The general malaise that has impacted the trucking industry is worldwide, and other industries are also feeling the pain. On April 29, the U.S. Department of Commerce Bureau of Economic Analysis (BEA) announced an adjustment in the First Quarter 2020 U.S. Gross Domestic Product (GDP) to -4.8%. Most economists define a recession as two or more consecutive quarters of negative growth. Considering that major business closures didn’t take place until April, the beginning of the second quarter, it’s very likely that second-quarter GDP statistics will fit solidly into negative territory. Personal income has also declined, according to BEA, falling 3.1% in March alone. With skyrocketing unemployment, the April numbers aren’t expected to improve. FTR’s “Monday Morning Coffee” blog for April 27 presented some dire numbers. Orders for Advance Durable Goods such as cars, computers and other products dropped 14.4% in March and are expected to fall again in April. Total shipments fell 4.5%. FTR predicted that business investment will likely be weak for the rest of 2020, harming productivity. There’s little doubt in anyone’s mind that it is difficult to do business in the current economy. Companies of all sizes are struggling to stay in operation. A sad reality is that recessionary conditions can cause weaker players to drop out of the market. Most carriers, including owner-operators, benefited from the plentiful freight and higher rates of 2018 and the first half of 2019. The market is tougher now. Some trucking businesses, especially smaller ones, will not survive this economy. Claims of broker malfeasance — and plans to physically protest it — can be debated. Are economic problems faced by independent owner-operators caused, at least in part, by broker profiteering, as protest organizers claim? Are current conditions, the supply and demand that governs trucking and every other market, entirely to blame? What share of the blame, if any, do the small-business owners who chose to invest in trucking deserve? And, what can be done to increase each carrier’s chances to survive what is now generally accepted to be an economic recession? We’ll address some of those questions in tomorrow’s series wrap-up. Editor’s note: This story is the second installment of a series. Check TheTrucker.com tomorrow for another installment about the owner-operators’ issues and upcoming protests.

Owner-operators plan ‘mayday’ protests to bring awareness to drastic decline in rates, broker operations

Truck drivers have received a lot of media attention in recent weeks. During the COVID-19 pandemic, many people are realizing how essential drivers are to the nation’s economy, society’s way of life and even our survival. For a change, nice things are being said about truckers in the nontrucking media. Restaurants are finding ways to feed drivers whose trucks can’t fit in the drive-thru lanes, food trucks are serving truckers at rest areas, and ordinary people are giving free lunches to truckers. However, drivers in one segment of the driving population say they are feeling decidedly unappreciated. Owner-operators, who depend largely upon loads they find on the spot market, are fed up with low freight rates. Tensions came to a boiling point April 20 when an estimated 75 drivers staged a protest on Houston’s East Loop Freeway, a portion of Interstate 610. The drivers were cited for obstruction of traffic, and one was charged with inciting a riot. A few days later, on April 24, a group of more than 100 drivers participated in a “slow roll” along several Los Angeles and San Bernardino County freeways. Several of these drivers were cited for obstruction of traffic. A similar protest took place in Phoenix. More protests are scheduled for Friday, May 1, in the Los Angeles area, Chicago, Washington and elsewhere as disgruntled drivers call “mayday” on the traditional May Day. A lot of owner-operators depend on loads found on the spot market for their business, since many aren’t large enough to swing their own contracts with customers. Most of those loads are posted by brokers, who arrange for the haul, track the shipment, bill the customer, pay the owner-operator and keep a percentage of the load revenue for their efforts. After an initial rise in the first part of March, spot-market freight rates have steadily fallen. Part of the reason for this is simply supply and demand. Throughout 2018 and most of 2019, trucks sold at near-record levels, causing capacity — the supply of trucks available to haul loads — to increase dramatically. This increased supply of trucks pushed rates downward. Then, after the initial surge of products shipped as people locked down due to the COVID-19 pandemic, shipments declined. Shipments from overseas fell dramatically as China and other countries shut down manufacturing, followed by domestic manufacturers doing the same. The end result was a double whammy of fewer shipments (reduced demand) combined with higher capacity (increased supply). Another cause of declining rates is the cost of diesel fuel. Spot rates usually include any fuel surcharge amounts, so when the cost of fuel drops, so do rates. The national average price for diesel fuel, reported on Monday, April 27, by the U.S. Energy Information Administration, was $2.44 per gallon. A year ago it was 73 cents higher. As business owners and managers, most owner-operators understand how fluctuations in freight rates and price can impact their earning potential. However, they are frustrated that rates have dropped further than market forces dictate and that unscrupulous brokers are taking advantage by keeping too large a percentage of what the loads pay. Rick Santiago said he has heard enough. The Carteret, New Jersey-based owner-operator is organizing May 1 protests in Chicago and Washington. “Enough is enough,” he said in one of the numerous live videos he has posted on Facebook. The videos are wildly popular. One has more than 130,000 views and has been shared thousands of times on the social-media platform. And interest continues to grow. “What I would like to push is for legislation to have these brokers regulated with a just percentage, a small percentage,” he said in an April 27 video. “There is no room for price gouging during a pandemic,” he said in another video the following day. “We understand that it’s supply and demand. We understand there’s less freight, but it doesn’t give any broker the right to monopolize the freight.” OOIDA, the Owner Operator Independent Drivers Association, weighed in on April 28, with Media Spokesperson Norita Taylor telling The Trucker, “Brokers have always been adept at getting as much as possible from shippers and giving as little as possible to carriers, with or without a national crisis.” That’s what brokers do. It can be a lucrative part of the trucking business — so much so that most larger carriers have opened a separate brokerage department of their own, at times with profits large enough to overcome a bad financial quarter by other segments of the company. While there are several regulations that regulate broker conduct and brokers’ relationships with carriers, there are no regulations that specify how much money the broker can keep or how much they must pay an owner-operator. “My only objective is to bring awareness and bring resolve, now, during a pandemic,” Santiago claimed in an April 28 video. “Our only objective is to be treated fair. In no way am I trying to say, ‘Eliminate brokers.’ Our problem is, during a pandemic, they have exposed themselves by price gouging.” OOIDA’s Taylor noted, “Truckers are generous. They like helping in disasters, but they need to make money.” Editor’s note: This story is the first installment of a three-part series. Check TheTrucker.com tomorrow for Part II about owner-operators’ issues and upcoming protests. Photo Credit: Rebecca Doty from The Disrespected Trucker Facebook group of Crystal McIntosh and her husband’s truck as they head to Washington D.C. to take part in the mayday protest planned for May 1.

Owner-operators feel pain of rate decline due to pandemic; protest blocks freeway in Houston

In the past month, there has been a plethora of efforts to show appreciation for the nation’s drivers. Free lunches are great, but some of those drivers who operate independently are worried about how they’ll keep their businesses afloat when rates are tanking, insurance rates are rising and regulations continue to tighten. Some owner-operators have become very selective of the loads they accept, with some parking their trucks until rates improve. Others are working but are complaining and attempting to make their voices heard via social media and other avenues. In Houston, 75 truckers were issued misdemeanor citations for impeding traffic on Houston’s East Loop Freeway on April 20. Another person was arrested and charged with inciting a riot and obstructing a highway. Both charges are misdemeanors, according to Houston Police Chief Art Acevedo. “Everyone that was blocking the highway in protest has been cited with a Class C misdemeanor,” Acevedo said in a media briefing following the incident. “These are independent drivers protesting nonpayment by companies that have hired them to move [freight]. We’ve explained to them that this is an ongoing problem, and this is no way to fix that problem by engaging in illegal activity.” Acevedo stressed that there is a “distinct difference between protected First Amendment rights and illegal activity.” Blocking the flow of traffic on a freeway falls into the latter category. No matter how they’re coping, truckers are feeling the pain of the COVID-19 economy. Unfortunately, it’s not going to get better any time soon. Rates that had begun to rise in March plummeted in April and are still falling as of this writing. According to DAT Trendlines, April 13-19 rates for van freight average 15 cents per mile less than the March average. The April average is $1.72 per mile. Flatbed fared worse, dropping 19 cents to a flat $2. Refrigerated dropped by 20 cents per mile to an average of $1.99 per mile. Rates for all three modes will likely continue falling for the remainder of the month. However, rates are only one part of the data to be considered. In the van market, for example, the load-to-truck ratio was 0.9. Anything below 1.0 means there are fewer loads on the DAT load boards than there are trucks. Good loads are taken up almost as quickly as they are posted, leaving the loads with less-than-average rates to pick from. It’s no secret that near-record buying of Class 8 trucks in late 2018 and early 2019 resulted in an overcapacity situation in the freight market. Throw in crashing oil prices, which actually traded at less than zero at one point, and the shutdown of oil fields, and the result is a large number of trucks looking for other freight to haul. Shut down shipping from the largest U.S. trading partner, China, and another group of truckers is looking for new freight. To all of this, add the closing of businesses all over the U.S. and the loss of freight those businesses would normally generate. Large carriers are scrambling to keep trucks moving and to keep drivers busy so they don’t leave. Many carriers are hitting the spot market more than usual for loads to supplement those from their own customer base. It all adds up to not enough freight to go around. Accusations of broker malfeasance are commonplace, but whether those claims have substance is sometimes questionable. Undoubtedly there are brokers who take advantage of their trucker clients, but brokerages are watching their revenue dwindle too, as shippers refuse to pay more in a market where supply exceeds demand. In the case of the Houston protest, claims were made that brokers weren’t paying owner-operators, but it wasn’t clear whether that meant some were not paying at all for loads hauled or they were simply offering lower rates than they did prior to the COVID-19 restrictions. Acevedo announced that the department will look into allegations of fraud by brokers, but he was also clear that truckers who participate in further obstruction will have their equipment impounded. Additionally, Acevedo urged the drivers to work with the police department to find other locations for them to exercise their First Amendment rights. “Theft of wages is inexcusable and a criminal offense,” the department tweeted following the event, noting that the department will be “initiating a criminal investigation into allegations of widespread theft of wages. We won’t tolerate exploitation of hard-working people, or unlawfully impeding the movement of traffic.” In the meantime, owner-operator Amet Borrego has organized a GoFundMe account in an attempt to raise $15,000 for Stephany Ramirez, another owner-operator who was charged with inciting a riot and obstructing traffic as a result of the protest. A DAT press release dated April 20 states that the last two weeks of April and first two weeks of May will be “crucial for small carriers and independent operators.” The release cautions of a significant impact to agricultural and food supply chains if rates become or remain too low to operate or even if trucking businesses don’t financially survive. Ken Adamo, chief of analytics at DAT, warned of continued rate declines in an earlier interview with The Trucker, saying, “I’m starting to think we’ll see a steep drop-off.” Adamo encouraged owner-operators to be as knowledgeable as possible and to use technology, such as DAT load boards, to make sure they’re getting the latest information. Add to this some standard business advice: Accounting for every penny and making sound decisions becomes more critical in a tough market. In the meantime, expect more grumbling — and possibly more protests — as independent truckers struggle to keep their businesses afloat in tough economic times. Truckers will continue to serve in the COVID-19 era, but will they survive economically? Time will tell. Photo courtesy of Houston Police Department Following a protest blocking Houston’s East Loop Freeway, Houston Police Chief Art Acevedo addressed the demonstrating truck drivers, advising them to protest in other ways than blocking city roadways. The drivers were cited for impeding traffic, but the police department has said it will investigate the drivers’ accusations of fraud by brokers.

Susie De Ridder chosen as WIT’s first Female Driver of the Year

Driving a truck for a living isn’t an easy job. Driving for a living AND making time to promote the industry and its drivers while encouraging others to make trucking a career? That’s an effort above and beyond. That’s Susie De Ridder. The Fredericton, New Brunswick-based driver for Amour Transportation Systems was Women in Trucking’s (WIT) choice as its very first Female Driver of the Year. Physical presentation of the award was scheduled for the organization’s “Salute to Women Behind the Wheel” at the Mid-America Trucking Show in Louisville, Kentucky, but the event was cancelled due to the COVID-19 pandemic. “I’m disappointed,” said De Ridder, “but we have to think of the safety of everyone.” Instead, the award was presented through a video and press release from WIT on April 1. De Ridder was chosen from a group of three finalists that also included Carmen Anderson and Sarah Fiske, company drivers for America’s Service Line LLC and FedEx Freight, respectively. “I can’t wait to meet them,” De Ridder acknowledged. Still, she was elated at her achievement. “I’ve said it before, it was like winning the ‘Golden Globe’ of trucking,” she said. “I don’t think my feet have hit the ground yet.” Like many drivers, De Ridder came from a trucking family. “When I was young I’d go with my dad, and I noticed there were no women driving trucks,” she explained. “I think I’ve always wanted to be a truck driver.” With 40-years of driving under her belt, De Ridder has more than reached her dream of driving. She has, however, contributed much more to the industry than simply her ability to handle a truck. She’s been an ambassador for safety and especially to those who are considering a driving career. “I hope that other women can look at me and see that, yes, this is possible,” she said. To that end, she’s tireless in participating in events that present women, and truckers, in a positive light. “I love the ‘Girl Gala’ events,” she explained, referring to scheduled exhibitions at schools and other locations where she brings her truck. “It brightens my heart to pull in and see little girls —and little boys — waving and wanting me to blow the horn.” One item that’s always a hit is Claire, the WIT doll that rides on De Ridder’s dash as a part of the organization’s ‘Where’s Claire’ program. “I wish I could give every one of them a Claire of their own,” De Ridder said, “but I try to leave them with some kind of gift, like a hat or a scouting patch. My hope is that it reminds them of the woman trucker who visited them.” De Ridder loves to participate in charity events, too. She said she is a good friend of Jo-Anne Phillips, the WIT June 2019 Member of the Month and works with her on the Convoy for Hope, an annual fundraising parade to support cancer research and treatment. Another charity event was of De Ridder’s own creation. When the woman cleaning showers at a Nebraska truck stop told her of a group of feral cats living around the facility, De Ridder went into action. Working with others, she raised enough funding to have all the animals vaccinated and neutered. “If I had more time,” she said, “I’d be volunteering at shelters.” Regardless, she still found time to adopt two rescue cats, Downey and Spice. “I don’t take them on the road with me, but they’re well cared for at home,” she said. De Ridder has extensive experience serving women in the trucking industry. She served on the board for the Women’s Trucking Federation of Canada, resigning that position to devote more time to WIT, where she was named to the Image Team in 2018. She has served as a speaker and panelist at trucking events and conducted ride-alongs with lawmakers and others. Although she enjoyed all the official passengers, she said one stands out. “I had a police officer ride along on one trip,” she said. “We kind of hit it off, and it was interesting that each of us learned something from the other’s point of view.” De Ridder works a Tuesday-through-Saturday shift from Armour’s Moncton, New Brunswick, terminal. She’s “running wild” (anywhere in the system) until Friday; then she completes a scheduled grocery run. When she’s home, Susie helps care for her elderly mother, rests from her workweek and indulges in watching a NASCAR race when she can. “I usually try to catch a race on Sunday when I’m home,” she said. “Now that the NASCAR events are suspended, I still watch the simulated events.” De Ridder’s future plans include using her platform to encourage more women to enter the trucking industry. “Maybe I’ll have more opportunities to promote women,” she said, adding, “My father always said that the steering wheel doesn’t know who’s holding it.” Her message to women is a simple one: “It’s never too late to get behind the wheel,” she said. If Susie De Ridder has her way, more women will be holding that wheel in the future.

Spot rates peak, then plummet as COVID-19 impacts trucking industry

The impact of the COVID-19 pandemic has reached trucking rates, too. What the total impact will be is anyone’s guess, but it’s improbable that so many businesses could shut down without a disruption in the supply-and-demand chain that guides the trucking industry. At first the impact was good for trucking. “Recent rate increases have been driven by aberrant consumer behavior,” explained Ken Adamo, chief of analytics at DAT. “Water, toilet paper and other supplies have caused a huge influx of demand,” he told The Trucker. “It’s primarily due to social distancing.” Products have been flying off the shelves and retailers can’t restock them fast enough. Hoarding is a part of it, as consumers worry about potential shortages of food and household items such as toilet paper. Another fact, often overlooked, is that consumer spending changes when people are stuck at home. More meals — and more visits to the bathroom — are now taken at home. DAT reported posting increases of 39.1% in March compared to February, besting March 2019 rates by 44.6%. Most of those increases came in the dry van and refrigerated segments. As the number of loads increased, rates followed. After falling to $1.79 per mile in February, van rates rebounded to $1.87 in March. Reefer rates fell to $2.09 per mile but rose to $2.19 in March. The good news was short-lived, however. The increases in shipments of household products could not offset the shipments lost due to shutdown of manufacturing and service outlets for a sustained period. Shipment numbers must fall and, when they do, rates fall with them. The process has already begun. “We have started to notice price degradation in the dry van and reefer segments, likely driven by heavy contraction in demand,” said Adamo. “The load to truck ratio, the number of loads posted with our service compared to the number of trucks looking for loads, has been decreasing steadily. We’re definitely seeing it impact rates.” In the first week of April, spot rates for van fell by 2 cents per mile, while reefer rates lost 10 cents. That’s just the beginning. “I think from a demand perspective, we’re going to do more than correct,” Adamo predicted. “I’m starting to think we’ll see a steep drop-off.” A part of that drop off is due to Chinese freight. “Nearly two months after shutting down for the Spring Festival holiday, China is only now starting to return to work,” said Kenny Vieth, president and senior analyst at ACT Research, in an April 3 release. “Domestic port and rail volumes have just begun to reflect the drop in Chinese output.” A big reason for concern about port and rail volumes is Christmas. “Remember that stocking up for the holiday season begins right around this time of year,” Adamo explained. “Retailers are deciding now how many Xboxes they will stock for Black Friday and placing orders accordingly.” In an economy that’s long overdue for a recession, the impact of the COVID-19 pandemic will reach far beyond public health. Recession is a real possibility. “Everyone is nervous. We’re definitely looking at recessionary pressure, but is it a “V” or a “U” shape?” said Adamo, referring to economic activity in graph form, wondering if it will fall quickly and rebound just as quickly, the “V” shape, or remain low for a while before rebounding, the “U” shape. Adamo has some advice for small trucking businesses who depend on loads from the spot market. “Information changes fast,” he said “Use technology to get the latest. For example, (spot) rates grew 10% from the end of February to mid-March. Did your broker tell you, or offer the same rate and keep the difference?” DAT’s load board, the industry’s largest, provides up-to-the minute load information, while the service’s “Trendlines” page provides useful planning information. “Be smart about rates,” Adamo continued. “Make the best decision using the best tools.” Efficiency is important, too. Adamo counseled avoiding 300-mile deadheads to load backhauls, adding, “think in terms of lanes. A load with a good rate doesn’t help if it puts you somewhere that you lose money on the return trip.” A good relationship with a broker is another way to keep the wheels turning profitably, he said. “Most importantly,” Adamo concluded, “thank a trucker. These are extraordinary times,” he continued. “It’s very important to thank drivers and provide them with the recognition they deserve. They are saving a nation.”