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Leveraging GPS Tracking for Automated Fleet Maintenance

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Archives, Global Logistics, Global Trade Daily, Trucking

Leveraging GPS Tracking for Automated Fleet Maintenance

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Maintenance is one of the most important parts of fleet management. A good maintenance strategy can help a business cut repair costs, improve fuel efficiency, and eliminate vehicle downtime.

Scheduling vehicle maintenance can be difficult, however, especially for businesses that don’t know exactly where their fleet vehicles are.

GPS tracking technology is one of the best tools that fleet managers can use to streamline maintenance — or even completely automate it.

Why Businesses Use GPS Tracking for Fleet Management

GPS tracking is a fleet tracking strategy that uses networked GPS systems to provide managers with the real-time location of each vehicle in the fleet. Location data is often used to streamline scheduling and routing, allowing administrators to make more informed decisions when they need to dispatch a vehicle or schedule a new job.

GPS data may also enable a system to track driver behavior, including unnecessary idling, speeding, and harsh braking events. This information can be provided to fleet managers and dispatchers, as well as passed on directly to drivers.

Fleet managers and dispatchers can use the information to improve their decision-making while drivers can learn more about their own habits and practices — allowing them to identify potential areas of improvement.

These tools are popular among businesses in parts of the country where idling laws may mean hefty fines for businesses that allow drivers to leave vehicles idling. They are also frequently used by businesses that want to track and reduce dangerous driving habits that can harm vehicle health, reduce fuel economy, and make drivers less safe.

The benefits of a GPS tracking system can vary from business to business, but most will see noticeable improvements to vehicle fuel efficiency, overall driving hours, driver behavior, compliance, and safety.

Many GPS tracking systems are also part of a larger telematics system that can provide managers with even more fleet data. These systems may also include dashboards and data visualization tools that help fleet managers better understand the data they’ve collected.

With the right solution, it can be much easier to predict fleet expenses and implement new business policies that help improve fleet performance.

Automating Maintenance With GPS Tracking

The most effective maintenance strategies are preventive. Long before small problems with a vehicle become serious issues, the business takes action to keep the vehicle in the best operating condition possible.

For example, a business may hire a mechanic to regularly inspect brakes, check oil levels, change filters, or check tire tread. These simple checks allow businesses to prevent most common vehicle issues, like brake failure, frequently seen in vehicles like semi-trucks or tractor-trailers when they’re not properly maintained.

The simplest maintenance tasks aren’t usually expensive or time-consuming, and they can help keep vehicles on the road while providing other benefits — like better fuel economy and a lower risk of breaking down.

Preventive maintenance can be hard to implement, however — especially for businesses that have relied on a reactive maintenance strategy in the past.

The time and money needed for preventive maintenance are usually repaid over time, as maintenance reduces the need for repairs or the frequency of breakdowns. Typically, preventive maintenance only becomes challenging when a business doesn’t have enough information on its vehicles, drivers, or maintenance providers.

This information could be a shipping estimate on essential replacement parts, a mechanic’s availability, or the current status of fleet vehicles.

Without the right information, fleet managers can struggle to coordinate the different parts of a preventive maintenance strategy — like the business’s mechanics, tools, replacement components, or the vehicles themselves.

How GPS Tracking Makes Maintenance Automation Possible

GPS tracking provides a valuable source of information on fleet vehicles’ location and driving conditions. The system is continuously updating managers on the position of each vehicle and how drivers are operating those vehicles.

With a GPS tracking solution, it’s typically possible to create automatic maintenance alerts that instantly notify managers when maintenance is needed.

These maintenance alerts are customizable, meaning managers can configure them to appear after a certain number of hours have passed, or when a vehicle passes a number of miles driven.

Many of these solutions also track how employees are driving their vehicles, allowing managers to draw connections between driver behaviors, maintenance costs, and specific repairs.

This data can help managers identify behaviors that harm vehicle health the most, allowing them to track driver behavior and maximize vehicle lifespan while minimizing maintenance costs.

A more advanced system could also provide additional benefits — for example, by automatically scheduling maintenance when it’s needed. Using information from the GPS trackers, the system could automatically schedule maintenance and generate a route to the maintenance garage based on the vehicle’s current location, the driver’s job status, and the distance to nearby maintenance locations.

Over time, information from GPS tracking systems can also help managers understand their fleet’s schedule. With this data, managers can know exactly when business tends to be slow or when specific vehicles are available, allowing them to schedule maintenance in a way that won’t disrupt work.

They may also be able to provide better availability estimates to customers and help their team dispatch vehicles more effectively.

For businesses that have struggled with creating driver schedules or meeting client needs, these tools could help them create better schedules for their team, making it easier to dispatch drivers and complete jobs.

Integrating GPS With Other Maintenance Automation Tools

Fleet managers that benefit from using GPS to automate fleet maintenance will probably also benefit from many of the other fleet maintenance automation tools available.

Many of these tools are built with technology like GPS tracking in mind, meaning they may integrate easily with existing GPS tracking solutions or be able to utilize the real-time data these solutions provide.

For example, a comprehensive telematics and maintenance automation system may be able to provide managers with automatic alerts based on both miles driven and data collected by vehicle components — like tire pressure sensors, brake system sensors, and the engine control unit.

Using GPS to Improve and Automate Fleet Maintenance

An automated preventive maintenance strategy can help any business keep its fleet on the road. Implementing preventive maintenance without the right information may be difficult, however.

GPS tracking systems provide real-time updates on fleet vehicle locations that managers can use to make preventive maintenance much more practical. These tools can also help managers identify reckless driving or bad habits, like idling.

Combined with other maintenance and telematics solutions, GPS tracking can also help make automating maintenance much easier. The right solution can provide automatic notices when a vehicle hits a major milestone or number of hours driven.

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Archives, Departments, Dispatches, Trucking

A HOT 2021 FOR TRUCKING BRINGS A BLAZING 2022 FOR TRUCKING ALLIANCES AND ACQUISITIONS

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Record earnings and cash flow in 2021 allowed carriers to add drivers, new and improved trucks and other equipment to keep up with an ever-demanding supply chain. But many trucking industry players did not stop there, forming alliances and purchasing competitors to position themselves for even greater rewards in 2022 and beyond.

On Jan. 5 of this year, GEODIS, a global transport and logistics giant, and Nashville, Tennessee-based CoreTrust, a leading commercial group purchasing organization and division of HealthTrust, announced a strategic alliance that will expand CoreTrust Logistics’ truckload freight offering to include a comprehensive full truckload (FTL) managed transportation solution. By tapping into the GEODIS network of more than 1,000 asset-based carriers, as well as its world-class managed transportation capabilities, CoreTrust members can enjoy better rates and end-to-end FTL shipment management, the companies contend.

Well known supply chain challenges—like finding a place to store goods, let alone drive them—have inflated prices for shippers, something that will be eased by the alliance, swears CoreTrust Assistant VP David Pollard. “Truckload rates have increased 25 to 30 percent, yet our members are confirming cost avoidance and significant savings with this comprehensive solution,” he said. “Even in this inflationary market, this alliance is driving achievable and quantifiable value across full truckload transportation for CoreTrust members.”        

Which explains why other concerns are hooking up with one another. Phoenix, Arizona-based Knight-Swift Transportation, which is one of North America’s largest and most diversified freight movers, made big moves in the less-than-truckload (LTL) space by buying AAA Transportation for a reported $1.35 billion in July and RAC MME Holdings for another $150 million in December. 

Knight-Swift’s goal of establishing a nationwide LTL network is helped greatly by acquiring AAA Transportation, whose roots date back to 1951 when an Alabama log hauler purchased a struggling truck line. AAA went on to blanket the Southeast, Southwest and Midwest, while Chicago-based RAC MME—the parent company of Midwest Motor Express and Midnite Express—has the upper Midwest and Northwest covered.  

RAC stands for Red Arts Capital, which partnered with Prudential Capital Partners, Brightwood Capital Advisors and several family offices in 2019 to acquire MME from the Roswick and Greenstein families, who founded the company in North Dakota in 1918. “With MME, we found the ideal opportunity to invest in an excellent business with an extensive network, including most metropolitan areas across its network geographic footprint,” explained Nicholas Antoine, co-founder and a managing partner at Red Arts Capital. “We are proud of our contributions to the company’s over 100 years of growth and service to the region, and believe that Knight-Swift provides MME the ideal home for its next phase of growth.”

In September, ArcBest acquired Chicago-based truckload broker MoLo Solutions for $235 million plus the potential for future earnout payments. Getting four-year-old MoLo, which expected 2021 revenue of around $600 million, propelled Fort Smith, Arkansas-based ArcBest to a Top 15 U.S. truckload broker with access to more than 70,000 carriers.

“ArcBest’s timely investment further accelerates growth by increasing the scale of our asset-light business, and MoLo’s proven ability to cultivate significant shipment growth with large shippers will be highly complementary and synergistic,” said Judy R. McReynolds, ArcBest chairman, president and CEO. “This acquisition capitalizes on our terrific business momentum and positions us to enhance value for all of our stakeholders, including our customers, employees, communities and ArcBest shareholders.” 

MoLo CEO Andrew Silver, who landed at ArcBest as part of the deal, said the partnership also “further advances the opportunity we have to achieve our vision. MoLo has been able to reach $600 million in annual revenues with only 500 shippers; in doing this deal, we can now tap into ArcBest’s 30,000 existing shippers and offer them the same level of service we’ve been providing our existing customers. In addition to that, we can now offer our customers a breadth of services we couldn’t before, including owned assets, increased drop trailer capabilities, LTL, expedited, outsourced transportation management, and more.”

Summertime deals were in the offing for 65-year-old Werner Enterprises, which acquired an 80% stake in Pennsylvania-based TL carrier ECM Transport Group for $142 million and final-mile carrier Nehds Logistics of Monroe, Connecticut, for $64 million.

“The addition of ECM’s skilled drivers, nondriver associates and terminal network strengthens our portfolio by adding short-haul expertise in a segment in which consumer demand and supply chain needs are growing,” said Derek Leathers, Omaha, Nebraska-based Werner’s chairman, president and CEO. He was similar in his praise of Nehds: “The addition of the Nehds operations, management team, talented staff and strong customer relationships to the Werner family represents a significant step forward in our Final Mile delivery program.” 

RLS Logistics is a leading cold chain 3PL, but it also offers managed transportation services and an LTL brokerage unit. With locations in Utah, Tennessee, Pennsylvania and its home state New Jersey, RLS spent 2021 adding partners in California, Massachusetts, Texas and another in the Keystone State.

However, you had to hop the northern border for the biggest deal of the year by LTL network size: Canadian trucking and logistics provider TFI International acquiring UPS Freight for $800 million in January 2021. Heading to the negotiating table with 38 terminals, the Montreal-based company walked away with 197 more facilities across North America—as well as about $3 billion in revenue.

Once the deal officially closed, TFI CEO Alain Bédard told analysts that 75% of his operations would be in the U.S., plans were afoot to aggressively bring down costs—and that the acquisition was unlikely to be the only collaboration with Atlanta-based UPS. More to come in 2022?

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Archives, Global Logistics, Global Trade Daily, Trucking

How Can We Make Trucking More Sustainable?

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Transportation accounts for around one-fifth of global carbon emissions, with road freight being one of the largest contributors.

As a result — and as sustainability becomes more important to businesses, investors and consumers — trucking companies are looking for ways to make their work greener. New strategies and technology are helping the industry improve its sustainability and reduce its carbon footprint.

Utilizing these strategies could help make a trucking industry that’s more sustainable and just as capable of moving goods around the country. Here are some tactics that are helping companies to go green.

New Technology Paves the Way for Green Trucking

A handful of innovations may help the trucking industry tackle its most significant sources of carbon — primarily, emissions generated by trucks burning fossil fuels.

The most significant new technology will likely be the electric vehicles (EVs) and alternative fuel vehicles (AFVs) arriving on the market. These trucks are powered by nondiesel energy sources — like hydrogen, biodiesel, renewable natural gas or pure electricity.

Depending on their particular fuel source, they can produce reduced carbon emissions compared to diesel, or none at all. This allows trucking companies to significantly reduce their largest source of greenhouse gas emissions.

Limitations of these EVs and AFVs — like a lack of national electric vehicle charging and infrastructure — made them a risky investment in the past. However, as charging stations become common and manufacturers release electric trucks with ranges comparable to diesel ones, companies are beginning to reconsider these vehicles. The growing AFV and EV market segment also means businesses have more options than ever when it comes to nondiesel trucks.

Some AFVs, like those powered by biodiesel and renewable natural gas, aren’t emissions-free but are a more sustainable option than conventional trucks. For example, biodiesel is a renewable resource produced from feedstock that absorbs carbon dioxide from the atmosphere as it grows. Burning it isn’t completely green, but making it can help to actively sequester atmospheric carbon.

Adopting either AFVs or EVs will take a major investment from the industry, and there are still risks to pivoting away from conventional fuel-powered trucks. However, these AFVs are likely the best way for a trucking business to reduce its individual carbon footprint.

Other significant innovations come from the IT world. New monitoring and driver management software provides businesses with data management and gathering tools that were never available before. Telematics and GPS technology can help companies monitor their fleets and driver behavior, allowing them to identify unsustainable driving habits and route choices.

These GPS devices could be combined with other monitoring technologies, like Industrial Internet of Things (IIoT) sensors that gather truck health and performance information. They are already being used in the intermodal transportation industry to improve business efficiency.

This technology could make tracking driver behavior and vehicle health much easier.

Best Practices Could Reduce the Trucking Industry’s Carbon Footprint

Businesses may not need to adopt entirely new technology to improve their carbon footprint. Instead, new business services, models and best practices may help the trucking industry cut back on carbon emissions while using existing trucks.

Full truckloads (FTLs) are a strategy that aims to minimize empty miles and underutilized truck storage space. This allows businesses to make trucking a much more sustainable shipping approach.

In some cases, trucking companies may be able to maximize their FTL count by outsourcing logistics operations to the right partner. Business-to-business freight shipping company FlockFreight has launched a new service that combines multiple less-than-truckloads (LTLs) to maximize goods shipped while reducing carbon emissions.

In 2017, empty miles accounted for around 17% of all greenhouse gas emissions from the trucking industry. Cutting down on these miles while maximizing full truckloads could help improve the industry’s productivity and minimize carbon emissions at the same time. All it takes is partnering with a sustainable logistics company.

The Right Maintenance Approach Can Minimize Carbon Emissions

Even simple changes to a business’s maintenance strategy can significantly reduce carbon emissions. For example, tire rolling resistance is considered to be one of the main factors impacting a vehicle’s fuel efficiency, along with the engine and aerodynamics.

A company’s choice of tire and maintenance practices that keep tires inflated can help significantly reduce the amount of fuel a vehicle needs. Lower consumption can reduce operational costs and carbon emissions.

Other effective maintenance practices can also help minimize fuel consumption and risks like downtime. Oil changes and other repairs that keep engines as efficient as possible can improve fuel economy and keep carbon emissions low.

Businesses are also beginning to invest in new telematics strategies that provide them with additional maintenance data. Remote monitoring solutions with IoT devices give companies a real-time snapshot of their entire truck fleet’s health.

Virtual dashboards can collect and display data like fleet-wide tire pressure, maintenance needs and fuel consumption, allowing managers to pinpoint potential problems.

Over time, these monitoring solutions can also lay the foundation for predictive maintenance strategies. They use a combination of real-time maintenance data from telematics systems and artificial intelligence to predict when a truck will need work. These algorithms can often significantly improve vehicle performance, increase life span and reduce the risk of unexpected downtime.

These benefits can help companies reduce operating costs while minimizing their carbon footprint.

New Technology Can Create a Sustainable Trucking Industry

The trucking industry has long struggled with carbon emissions and pollution. Trucks that burn fossil fuels, like diesel, naturally produce a large amount of greenhouse gas. This takes a huge toll on the environment. Trucking companies would be wise to adopt sustainable practices as more consumers and corporations look to green practices.

New technology and best practices can enable the sector to become more sustainable. Combined with new monitoring or maintenance platforms, AFVs and EVs may allow a business to almost eliminate its carbon footprint. Even simple changes to business processes that help maximize the number of FTLs can have a major impact on emissions. Employing these tactics paves the way for a more sustainable trucking industry.

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Emily Newton is an industrial journalist. As Editor-in-Chief of Revolutionized, she regularly covers how technology is changing the industry.

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Archives, Global Logistics, Global Trade Daily, Trucking

6 Tips On How To Properly Manage Your Commercial Freight

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Freight transportation is crucial to the success and growth of many businesses. In fact, it can be said that without it, many companies simply would not exist. But with all of the advantages freight has to offer, there are often many reasons why businesses fail to use this valuable resource. Here are some tips on properly managing your commercial freight business to attract more customers and increase your revenue.

The Role Of Freight In World Economies

Freight is the transportation of goods and materials from one location to another. It involves logistics, which is the management of products in a supply chain. Freight also includes customs and border crossings when items are exchanged between countries. Without freight, countries would not be able to trade with each other. However, the fact remains that even on a regional basis, freight is necessary to maintain a smooth economy and satisfy the ever-increasing demand of consumers. With the rapid expansion of online commerce over the past five years, freight has become increasingly important in all of its forms. So what are some things that you can do to ensure that you are getting your share of the business?

Maintain Your Vehicles Properly

The importance of keeping delivery vehicles in good condition cannot be understated. They are arguably one of your most significant initial expenses, and by neglecting their maintenance, you could end up with substantial repair bills and lost income due to immobile trucks. This will ensure the safety of the drivers and passengers, as well as the cargo. Furthermore, it will reduce the cost of your truck repairs and maintenance to an acceptable level. It’s a well-known fact that the best way to avoid problems is to confront them before they happen. This is true with vehicle maintenance, as well.

Utilizing a proactive approach can help you avoid expensive and time-consuming repairs that may be necessary after the damage has already been done. To that end, it could be worthwhile setting up a garage in your depot staffed with mechanics capable of performing the relevant repair as quickly as possible to ensure little downtime. A great option is to teach your drivers to perform basic checks before setting out in your vehicles. The training should be done with a combination of videos and demonstrations. Videos would show the driver how to check all required items, while demonstrations would show them what to look for and how to do it.

Hire The Best Drivers

In order to be successful in the freight business, you need to find and hire the best drivers. This is because they are the people that will get your goods from one place to another safely and on time while also complying with all state and federal regulations. One of the factors that you will need to consider when hiring a driver is their past driving history. When you do this, you can better understand how they may perform on your trucking routes. A driver who has experience on routes near yours is much more likely to succeed than one who has no experience in your area. Another critical factor is the amount of time they have been driving for companies like yours. In addition, veteran drivers are likely to be much more skilled than those new to the industry, but you can also expect to pay more.

Invest In Technology

Technology is a powerful tool that can be used to make the freight industry more efficient. It has allowed for the automation of many processes and will continue to do so in the future. Freight companies need to keep track of their inventories and customers’ orders. This means they need a comprehensive yet straightforward system. A freight management software can manage all the inventory and shipment data. It will be able to show companies where their inventory is and what quantity is needed for future orders. The customer-facing website can provide information about returned merchandise, shipping status, and tracking numbers. It will also handle the process for initiating exchanges or returns and providing downloadable packing slips and invoices.

Ensure You Are In Compliance With All Applicable Laws

Compliance with laws and regulations is one of the most critical factors when operating a freight business. It ensures that the business is not in violation of any safety, environmental, or other regulations. A freight company needs to be compliant with the law to maintain its license and stay in business. You should make a conscious effort to stay up to date with any changes in regulation that might occur.

Cover Your Business With The Right Insurance

One of the most important aspects of running a successful freight business is getting the right insurance. Without it, your business can suffer, and you may not recover from the financial repercussions. Your freight company needs to get insurance for its trucks that operate on public roads. You also need commercial automobile coverage for your business use of the truck’s cargo space and liability coverage for any problems that may arise. Plus, if you are shipping hazardous materials, you’ll need additional protection in case of an accident. It’s essential to get all levels of insurance because, without them, your company could be in serious trouble should accidents happen or something goes wrong while transporting cargo.

Manage Fuel Consumption

Fuel consumption is an essential factor when it comes to running a profitable fleet. Fuel efficiency can be decreased by driving too fast, using the wrong type of fuel, and driving with worn-out tires. Plus, if they are not adequately maintained, vehicles will lose their fuel efficiency. Most of this will ultimately come down to driver training and informing them of how you expect them to drive. Some other tips you can follow to decrease consumption include:

-Use a fuel management system

-If your drivers can save more, reward them

-Check the tachograph for speeding infractions

-Optimize routes to make them as efficient as possible

If you want to maximize your ROI, it is imperative that you know how to manage your commercial freight business properly. This can involve ensuring that your fleet is constantly maintained and that your drivers are fully trained, among other things.

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Archives, Global Logistics, Global Trade Daily, Trucking

How Can Hauliers Cope With an Even Higher Demand This Christmas?

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The Christmas rush is something hauliers anticipate every year. But it’s going to be felt more acutely this year with the additional pressures of a driver shortage and Brexit affecting the supply of some goods.

The haulage sector is set to experience its busiest Christmas period on record. On top of the usual increase in demands, there’s the perfect storm of the HGV driver shortage and supply chains impacted by Brexit and COVID. By focusing on increasing efficiency and reducing empty running, hauliers can meet these higher demands and ensure their customers receive the highest level of service.

This means hauliers will need to be even more efficient and prepared in order to meet the demands of businesses and consumers this Christmas.

Here, we cover how hauliers can cope with arguably the most demanding Christmas we’ve ever experienced.

Make planning more efficient

Efficient planning is paramount to success for all hauliers, but never has it been more important than right now. A Logistics UK survey revealed that 96% of hauliers are struggling to recruit drivers, with 13% saying their shortage is severe to very severe. To meet high demands with a potentially depleted workforce, hauliers need to get the most out of their available resources.

That’s where route planning software comes in. By feeding in all the collections and deliveries you need to make, and your vehicle and driver availability, you’ll be able to plan the most efficient routes and get the most out of your fleet.

With these solutions, you’ll have one view of your business supported by real-time information. Your planners can then make informed decisions. In the hectic traffic rush leading up to Christmas, it’s critical you can identify and manage exceptions as deliveries progress because it’s undoubtedly the busiest period on the road.

Eliminate empty running

When you have a larger-than-usual task on your hands to keep up with demand this Christmas, running empty seems even more wasteful than usual. Yet, for many hauliers, this is the case on their return journeys. If your drivers travel back empty from Glasgow to Plymouth on their return journey, for instance, that’s a lot of wasted mileage.

Using a freight exchange platform gives hauliers the opportunity to not only make the most of their journeys but also serve more customers in a time of increased demands. This can help optimize fleets in the short term and also enables hauliers to expand their network to connect with new shippers. Haulage companies with loyal customers but limited resources have the opportunity to subcontract their excess work on these platforms, meaning they can still take on additional haulage loads and get customers’ jobs done.

Allow your drivers to do more in their workday

The changes to drivers’ hours, which means drivers can work up to 11 hours a day twice a week, has been extended once again to January. But we know that making already overworked drivers work longer hours isn’t the solution, especially when many of the drivers who’ve left the sector have done so due to poor working conditions.

Giving your drivers the tools they need to achieve more in their workday is a much better solution. Not only will this allow your business to be more efficient, but you’ll also improve their satisfaction by making their jobs easier. Let’s face it, dealing with paper proof of deliveries is difficult to manage and adds time to their day.

It’s these inefficient processes that can frustrate drivers, cause delays, and even result in them finishing their day later than expected. It’s no wonder that drivers are leaving businesses that aren’t addressing this problem. Using digital tools like electronic proof of delivery and apps that provide real-time details of their deliveries allows them to focus on the job and get more done in their day.

Maintenance Inspections
Archives, Global Logistics, Global Trade Daily, Trucking

What New Fleet Managers Can Expect From Maintenance Inspections

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Managing a fleet can be a fulfilling experience, but it also includes a lot of responsibility. New managers must understand and anticipate these responsibilities so that they can operate legally, safely and efficiently.

One of the many considerations new fleet managers must keep in mind is the need for regular maintenance inspections. While anyone in the industry understands that regular maintenance is important, the specifics may be less clear.

With that in mind, here’s what new managers should expect in this area.

Why are Maintenance Inspections Necessary?

First, it’s important to understand that regular maintenance checks aren’t just recommended but mandatory. The Federal Motor Carrier Safety Administration (FMCSA) requires all motor carriers to regularly inspect, repair and maintain all of their vehicles. Failure to do so can result in hefty fines and other legal damages.

Apart from the legality of the situation, these inspections can help fleet managers minimize operating costs. Failing to inspect some components can lead to costly repairs and replacements, so it’s best to catch any potential issues early when repairs are more straightforward.

These inspections are also a critical part of vehicle safety. Without them, drivers may unknowingly be putting themselves and others at risk, as equipment failures can cause accidents.

How Often Do You Need Maintenance Inspections?

Fleet managers should also know how often to perform these inspections to optimize their schedules. Since every vehicle carries unique maintenance needs, the FMCSA leaves some room for interpretation in this area. Fleets must perform inspections at least annually, but some emergency systems, like emergency doors, need inspections every 90 days.

For optimal performance and safety, inspections should be more frequent than the minimum requirement. Diesel vehicles require work less frequently than their gas counterparts, which can help save costs, but it’s still best to check them regularly. What this schedule should look like varies between use cases, but going by miles driven may be more effective than going by time.

What Should Maintenance Inspections Include?

When it comes time for the actual inspection, fleet managers should keep a few factors in mind. First, they can choose to either perform the inspection themselves or have a qualified third party do it. The former option may be more cost-effective, but it also requires a knowledge base and reporting system that smaller companies may not have.

Whether fleet managers perform their own inspections or rely on a third party, they should look for a few specific factors. Here’s a closer look at these specifics.

Qualified Inspectors

The FMCSA outlines some requirements for who can perform these maintenance inspections. These qualifications are fairly straightforward for most of the inspection process. Employees or third parties must have knowledge and proficiency in the necessary methods, procedures and tools, but the FMCSA doesn’t define what that specifically entails.

Brake inspection qualifications are more rigid. Brake inspectors must either complete a state, Canadian province or union-sponsored apprenticeship program or have at least one year’s experience in brake maintenance.

When looking for third-party inspectors, fleet managers should look for these qualifications or, ideally, higher standards. Similarly, if fleets inspect their own vehicles, they should require employees to meet these qualifications.

Parts and Accessories Necessary for Safe Operation

Fleet managers should also understand what specific components and systems they should check. The FMCSA says maintenance inspections must cover “parts and accessories which may affect safety,” which can apply to most parts of a vehicle. Inspectors can refer to the FMCSA’s extensive list of parts for reference, but the most important areas to cover are fairly evident.

Engines, steering systems, brakes, seatbelts, wheels and the like all fall under this scope. Some of these parts will require more regular inspection than others, so fleets should schedule inspections of varying depth. As for how often to inspect each area, it’s safest to go by the manufacturer’s guidelines.

Emergency Features

Vehicles with some extra emergency features need to undergo additional inspections, too. Many buses, for example, have systems like emergency doors, pushout windows and lights marking these features. If fleets have any vehicles with these types of systems, they need to check them every 90 days to ensure they work properly.

These emergency features can mean the difference between life and death in some scenarios, so the FMCSA takes them seriously. Fleet managers should likewise pay close attention to these systems, ensuring they receive more maintenance and inspection than other parts. If there’s anything wrong with them, fleets should repair or replace them as soon as possible.

Driver Vehicle Inspection Reports

Driver vehicle inspection reports (DVIRs) are another important part of maintenance inspections. These are reports that drivers write up at the end of each driving day that identify any potential issues they’ve noticed. Fleet managers likely already collect these records, but they must save them and ensure they meet standards to satisfy the FMCSA.

According to FMCSA guidelines, DVIRs should cover:

-Brakes

-Steering mechanisms

-Lighting devices and reflectors

-Tires

-Horns

-Windshield wipers

-Mirrors

-Coupling devices

-Wheels and rims

-Emergency equipment

Drivers can look at other parts and accessories, too, but these are the only required factors. If DVIRs report any issues, fleets must resolve them before operating the vehicle again.

Thorough Records

No matter what the specifics of a maintenance inspection look like, fleet managers must keep thorough records. Every time an employee performs a check, the company should record it in a safe, accessible place. If the fleet faces an audit from the FMCSA or needs to check the maintenance history to inform a repair, these records are crucial.

The FMCSA requires fleets to keep DVIRs for at least three months and records of annual and roadside inspections for at least a year. That will quickly add to a lot of storage, so fleet managers should consider using an electronic system for recording and organizing this information.

Fleets should also record any repairs they have to perform on vehicles. To help keep things organized, all reports should include vehicle identification information like the make, model, year and serial number.

Maintenance Inspections Are a Crucial Part of Fleet Management

Maintenance inspections can account for a significant portion of fleet operations. New fleet managers must understand these factors to prepare accordingly, enabling efficient, safe and compliant operations.

Every fleet’s maintenance inspections will look slightly different, but these general guidelines apply across every fleet. Managers should take these guidelines, then apply and adjust them to their specific situation. They can then meet relevant regulatory requirements and keep drivers safe.

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3pls, Archives, Global Logistics, Global Trade Daily

Top 7 Logistics Challenges Facing the Industry

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Few industries have as much impact as logistics. In a way, it keeps the world economy going. Manufacturers, retailers, farmers, and even service providers all depend on it. But even though it plays a significant part, there are still plenty of logistics challenges facing the industry. Today, we’re talking about the seven of the biggest ones.

Now, there are numerous reasons why things got so tough in the last couple of years. Consumers’ expectations are shifting, and technology advances and new regulations are constantly coming out. On top of that, the COVID-19 pandemic didn’t make it easier.

Of course, all these issues bring an opportunity for growth and improvement. If you can find a way to overcome the challenges, you can be sure that you’ll capitalize on that. Here’s what you should pay attention to in the following year.

1. Cutting Transportation Costs

We can safely say that this is the single biggest problem in the industry at the moment. In some cases, the transportation costs come to reach 50% of the value of the product. Still, the demand for shipping companies is rising almost as fast as the fuel price. There’s plenty of work, but it seems that there’s not enough money to go around for everyone.

Many retailers and distributors are choosing to let just one or two shipping companies take care of their complete transport. Their reasoning is simple — if you’re shipping more with one carrier, you can get better rates. And while all that is true, you have to trust one company with your entire stock. Imagine what you’d have to go through if there’s a week’s delay.

2. Meeting Consumer Expectations for Visibility

Due to companies like Amazon and Walmart, customers nowadays want to know where their shipment is at any given moment, as well as when they can expect it to arrive. And things aren’t much different if we’re talking about transport visibility in B2B. As a matter of fact, the problem is even more complex.

To meet all of their demands, you need to improve the visibility across your entire supply chain. You should be able to track each of your shipments and maintain constant communication with the drivers. However, you also need a real-time alerts and notifications system. It allows fleet managers and drivers to make prompt decisions if any issues occur.

3. The Shortage of the Drivers

The next of the logistics challenges facing the industry that we want to talk about is driver shortages. These are demanding jobs, and it seems that at the moment, there just aren’t enough drivers to fulfill the needs of the industry. There are also these government regulations that force companies into being more strict about hiring their drivers.

Hence, the recruiting process is long and expensive, and it’ll stay like that for a while. There’s not much you can do but follow the rules. On the other hand, you can optimize the routes your drivers are following and stretch the capacity that way. It’ll give you at least some leverage.

4. Getting Sustainable

Carbon emission reduction is more important today than it ever was. The public wants to see environmentally-friendly practices in the private sector, so governments have to push it.

Although this isn’t bad on its own, it’s putting a lot of stress on logistics companies. And if you’re at the front of one, you must act quickly, but luckily there are plenty of things you can do to make your logistics more sustainable:

-Adopt route and load optimization

-Upgrade your engines

-Track and report emissions

-Use alternative fuels

Going down any of these paths won’t be cheap, but it’ll pay off in multiple ways.

5. Improving Cooperation With Your Partners and Suppliers

If you want your transport and logistics company to be successful, you must talk to your partners and suppliers and get to agreements that benefit all of you. They must be satisfied with your service, and you must be happy with theirs. It sounds like common sense, but at the end of 2021, we feel like we need to stress it.

You should all understand the state of the market and the moment and get on the same page. If you support and help each other now, many new improvement opportunities will open up in the future.

6. Adopting New Technologies

As we already mentioned, logistics companies already need to start adopting new and innovative technology solutions. They help you increase productivity and reduce costs in the long run. And we’re already at the stage when things like warehouse management systems are becoming non-negotiable.

However, with so many options available, it’s hard to pick the right one. Don’t rush it, and consider all your unique business operations before you make a decision.

7. Grappling With the New Way of Doing Business

It’s clear to all of us that the COVID-19 pandemic brought plenty of challenges to the game. However, some of them are here to stay, and some we didn’t even see yet. Changes are happening all across the industry, and it’s difficult to predict what will be the next big thing.

So, we’ll say that the final of the logistic challenges facing the industry is that you can’t be sure what to expect. And with that in mind, making your processes as flexible as they can be is the best way to go.

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Harper Mullins is a logistics specialist and a passionate freelance writer. At the moment, he’s working with Fit 2 Move on improving their storage and transport capabilities. He uses his free time to read every book he can get his hands on. 

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Archives, Global Logistics, Global Trade Daily, Trucking

The Importance of Freight Broker Bonds for your Business

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Opening a freight brokerage can be a great way to accelerate your earnings. Freight brokers play an important role within the transportation industry by connecting shippers with transportation companies for trucks required to deliver their goods. While some shippers have contracts with specific trucking carriers, others rely on freight brokers for added flexibility, greater speed of delivery, and lower costs.

Freight brokers are required to comply with the Federal Motor Carrier Safety Administration’s regulations for licensing. There are a few different types of operating authority licenses that freight brokers need to operate within the US, depending on the type of cargo they broker. All of the different types of freight broker operating authority require brokers to meet certain requirements, including being bonded with a freight broker surety bond. Here is some information about freight broker bonds so that you can get started with your business and ensure that it successfully operates.

What Is a Freight Broker Surety Bond?

Also known as a BMC-84 bond, a freight broker surety bond is a type of guarantee issued by a surety company that the principal holder will perform the work as promised. It is not insurance since the principal broker is not protected from liability by the bond. Instead, a BMC-84 bond is required by the government before a broker can become licensed. It is meant to protect the companies that rely on the broker and contract with it for services and to ensure that the broker will comply with the applicable regulations and laws while operating.

If a freight broker fails to fulfill its contractual obligations, a claim can be filed against the bond. However, the surety company is not responsible for paying the claim. Instead, the freight broker must pay claims filed against its bond. The surety company only steps in when the freight broker fails to pay its claim. If a freight broker has unpaid claims, it could lose its surety and its ability to continue operating.

A broker that fails to pay a carrier what the carrier is owed might have a claim filed against its bond. The carrier’s claim will be in the amount the broker owes for the services the carrier provided for the shipper the broker connected the carrier to for the transportation of freight. An unpaid claim against the surety could result in the surety terminating the bond and the loss of the broker’s license. It can also make it more difficult for the broker to secure a new freight broker bond, forcing the broker out of business.

Why Are Freight Broker Bonds Necessary?

The Federal Motor Carrier Safety Administration requires brokers to secure operating authority licenses and to renew them annually to continue operating within the US. One of the requirements for securing and renewing an operating authority license is to secure and maintain a surety bond for freight brokers.

The governmental requirement for brokers to be bonded is meant to protect the companies that depend on them. This is why surety bonds for freight brokers protect the parties with which the brokers contract instead of the brokers themselves. If you do not secure and maintain a BMC-84 freight broker bond, you will not be able to operate your freight brokerage since you will not be able to secure or renew your operating authority.

Which Parties Are Involved in a Freight Broker Surety Bond?

The three parties that are involved in a freight broker bond include the following:

• Principal – The freight broker seeking the bond to secure or maintain its operating authority license

• Obligee – The governmental agency requiring the bond, which is the FMCSA

• Surety – The surety company issuing the surety bond

How a Freight Broker Bond Works

A freight broker must find a surety company to issue a bond so that the broker can secure an operating authority license from the FMCSA. The surety company will go through an underwriting process before agreeing to issue the bond. It will review the broker’s credit and financial history, ensure that the broker has sufficient working capital to cover the maximum bond amount and check its history for past problems.

The bond functions similarly to a person’s credit score. If a broker has a history of multiple claims or past unpaid claims, the surety company might deny the application for the BMC-84 bond. If it does agree to move forward with issuing the bond, the freight broker bond cost will be much higher than if the company had instead established a good operating record.

The principal must pay a percentage of the maximum bond amount upfront to secure the bond. This cost might range from 1% of the total bonded amount for freight brokers with good credit and reputations to 15% for those with poor credit or with marks on their records.

Freight broker bonds expire, but they can be renewed. Since a freight broker must also renew its operating authority annually with the FMCSA, it must maintain its surety bond and renew it if it is getting ready to expire. A surety company can also terminate a bond when the principal has unpaid claims and refuse to renew it.

While freight broker bonds are not insurance and do not protect your business, they are a necessary part of operating a freight brokerage in the US. You cannot secure or renew your operating authority to broker freight between shippers and carriers within the US without having a valid freight broker surety bond.

Since your history with your bond could potentially harm your business reputation and your ability to continue operating, it is critical for your company to establish a good record and to meet its obligations if any claims are filed against your surety. Establishing a good history by complying with the law and meeting your contractual obligations can help your business to be more successful.

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Archives, Global Logistics, Global Trade Daily, Trucking

Moving Forward: The Critical Need to Support Truck Drivers

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“Disruption” may have been 2020’s word of the year. Both the coronavirus and the economy impacted lives, leaving no industry untouched. When the nation’s GDP hit bottom in Q2 2020, it essentially wiped out any economic gains generated over the previous five years.

While the trucking industry was affected by logistics and supply chain issues and personnel shortages last year, many analysts have predicted a strong recovery. Since mid-year last year, freight demand has continued to regain its momentum. Trucking companies still face several challenges, however, the greatest of which is its long-standing struggle to recruit, train, and retain enough professional drivers to meet demand.

The economy’s recovering — but driver shortages remain

According to the latest ATA survey on driver turnover, rates:

-Fell to 87% in Q1 2021 from 90% in 2020 at large for-hire truckload carriers ($30M+ annual revenue).

-Increased from 69% to 72% at small truckload carriers.

-Increased to 18% from 13% in the less-than-truckload (LTL) sector.

American Transportation Association (ATA) chief economist Bob Costello said, “While the driver shortage temporarily eased slightly in 2020 during the depths of the pandemic, continued tightness in the driver market remains an operational challenge for motor carriers and they should expect it to continue through 2021 and beyond.”

Even though the market is in an upturn, ATA’s most recent survey found carriers reluctant to grow their fleets. Fleet sizes have decreased 6% for large carriers, 4.9% for small carriers, and 0.9% for LTL.

In the American Transportation Research Institute (ATRI)’s Critical Issues in the Trucking Industry 2020 report, respondents recommended several strategies to help strengthen the trucking and fleet sector. One strategy includes repealing or reforming ineffective, burdensome regulations negatively impacting the trucking industry. For example, most in the industry have favored adaptations of the Hours-of-Service (HOS) rule.

In 2020, the top HOS strategist advocated for additional flexibility in the sleeper berth provision, allowing a 7-3 split of hours. The U.S. Department of Transportation (DOT) has continued exploring whether to modify HOS rules for highly automated trucks, while the Federal Motor Carrier Safety Administration (FMCSA) is conducting research to “increase understanding of the human factors and address specific areas such as driver readiness.”

DRIVE-Safe Act

This bipartisan legislation could help to address the looming driver deficit, which is projected to reach 160,000 or more by 2028. Continued growth in freight demand combined with anticipated retirements could result in the industry needing to hire 1.1 million drivers over the next 10 years — or almost 110,000 drivers each year.

The DRIVE-Safe Act introduces a rigorous two-step apprenticeship program. It would allow younger drivers (between ages 18 and 20) to apply and train to drive trucks. Candidates complete at least 400 additional training hours, and an experienced driver would accompany apprentices on the road. These drivers-in-training would be required to drive trucks equipped with the latest transportation management software and safety technology like:

-Active braking collision mitigation systems.

-Forward-facing event recording cameras.

-Speed limiters set at 65 MPH or less.

-Automatic or automatic manual transmissions.

Meeting demand

The trucking industry continues working to meet demand. 2020 saw a 36% increase from 2019 in the number of entities (almost 58,000) to which FMCSA granted carrier authority. But the pandemic has lengthened the time needed to train and license new drivers. An additional 54,000 drivers became ineligible once the new FMCSA Drug and Alcohol Clearinghouse launched last year.

One solution to attracting and retaining more drivers includes increasing pay, which has increased dramatically recently. Fleets of all sizes now offer rolling pay increases and even signing bonuses of $10,000 or more. Ironically, pay increases may be contributing to the driver shortage, because some drivers earning more have chosen to drive fewer hours.

While long-haul trucking jobs have high turnover rates — a metric many point to as the reason for the driver shortage — this trend wasn’t caused by high employee dissatisfaction but rather the drivers themselves bouncing between companies.

Attracting (and keeping) drivers

Trucking companies and fleets have turned to a variety of strategies to combat the driver shortage, including increased pay and sign-on bonuses. But it isn’t just higher salaries. Drivers want more control over their workdays and environments. One tactic to help drivers achieve the balance they desire? Workflow software and route optimization.

Technology adoption has driven efficiency gains within the trucking industry as more trucking companies have embraced digital transformation. It isn’t just shifting office staff from in-person to remote work or using video conferencing to communicate. Fleets use data analytics to improve utilization. Contactless payment systems and electronic bills of lading have reduced touchpoints and friction.

Trucking software helps fleets more efficiently track drivers, manage dispatch records, monitor interstate fuel tax agreement (IFTA) reports, optimize driver routes, pay invoices, save fuel costs, track vehicle maintenance records and more.

Fleet management platforms also help drivers work smarter, not harder. The cloud-based software and accessible data allow fleet managers to analyze information for insights to optimize driver workflow. Mobile ELD and workflow solutions empower drivers to more effectively manage work processes and routes, setting them up for success by taking the guesswork out of compliance and reducing frustration, uncertainty and inaccuracy.

Truck drivers are essential workers and critical for sustaining a functioning economy. The pandemic highlighted not just their importance, but the importance of the transportation and supply chain industries, too. As the pandemic ebbs, the world rebalances and the economy continues its recovery, fleets and trucking companies will continue to make their deliveries and transport goods from coast to coast.

Implementing the tools of digital transformation — like driver workflows and other fleet management software — will prove to be another useful tactic for attracting and retaining drivers, ensuring their safety, and empowering drivers to simplify their daily workload and operate more productively, while still achieving high-performance standards.

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Avi Geller is the founder and CEO of Maven Machines. Since 2014, Avi has led Maven’s growth as an IoT platform that serves the transportation industry through real-time, mobile cloud enterprise software. Avi originally hails from Palo Alto, California, but started Maven in Pittsburgh, Pennsylvania due to the city’s impressive innovation and technology resources. Prior to founding Maven, he held international positions with SAP and contributed to the growth of several successful software companies and startups. Avi also has an engineering degree from MIT and an MBA from Northwestern University.

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Archives, Global Logistics, Global Trade Daily, Trucking

Resolving Fluidity Challenges in Today’s Bottlenecked Supply Chain Environment with Technology

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In today’s demanding supply chain environment, SMEs (small and medium-sized enterprises) are facing unprecedented supply chain challenges much like larger companies and, as a result, have been investing in their own fleets due to the lack of equipment available in the marketplace.

Equipment scarcity as well as the reliance on outdated, legacy technologies to resolve today’s challenges are fast becoming the key underlying obstacles affecting SMEs to maintain their competitive advantage in today’s bottlenecked supply chain reality. More and more, companies are understanding that along with the investment in the assets must be the investment in asset management technology.

It has become clear that the right asset management platform—meaning the right technology, the right team of experts, the right level of adaptability and scalability– can serve as an invaluable tool to not only manage assets, but also transform operations and streamline processes.


The growing importance of technology for competitive advantage

While SMEs are looking for technology to help them respond to market shifts and evolving business strategies, they typically rely on modest IT budgets and stretched-thin admin teams. As their current software is reaching its end-of-life phase, SMEs are looking for cost-effective, scalable technology that can address today’s needs as well as those of the future. They rely on technology partners to help understand what is necessary: Is it an upgrade to a current system? Is a modification or new feature in order? Will a plug-in elevate the system to where it needs to be? Should this be a start-from-scratch system?

There is no doubt that as time goes on, SMEs–even those who may have resisted technology– will rely on technology services and solutions more and more, as the agility and flexibility of small and medium-sized enterprises within the supply chain have become ever more vital to supply chain fluidity. Innovative asset management technology platforms are enabling fleet managers to optimize their assets, control costs, manage M&R (maintenance & repair) as well as reduce admin costs. Tools designed to manage M&R help ensure streamlined communications, accountability, productivity and, most importantly, safe equipment. Customers utilizing asset management technology realize these robust benefits and more.

When selecting an asset management platform, it’s important to work with a partner with a proven track record, such as, Consolidated Intermodal Technologies (CIT), which was developed by Consolidated Chassis Management (CCM) and, for the last 10 years, has served as the asset management tool for its chassis pools. CIT is designed for fleet managers looking to upgrade their technology to support a growing fleet in a sustainable, scalable and efficient manner. CIT’s platform focuses on various intermodal equipment fleets, including chassis, trailers, containers, reefers and gensets of around 100 units.

These types of technology solutions are emerging as a competitive advantage by providing real-time visibility that enables businesses to make strategic decisions based upon quantitative analysis. Efficient asset management will provide the opportunity for SMEs and larger companies to outsource many back-office activities, enabling internal resources to be redirected to value-adding processes, including supply chain management. In fact, these services offer the possibility for SMEs to reduce labor costs, and the human capital necessary to manage their supply chain operations.

When it comes to investing in technology, we at CIT believe it is important to remember that one size does not fit all. It is crucial to collaborate with a technology partner who understands your business, your IT capabilities and resources as well as your goals. With the right asset management platform and team of experts that “get you,” businesses of all sizes can address the most complex and critical challenges to optimize operations, align business objectives and enhance corporate culture practices.

CIT is an innovative and proprietary asset management platform designed to enhance efficiency, elevate productivity, increase visibility, improve workflows and processes while lowering expenses and eliminating time-consuming redundancies. CIT understands the pain points of fleet managers as well as the importance of optimizing assets that are in compliance and on the road. For more than 10 years, the CIT platform has been the technology behind CCM’s fleet optimization system.

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A seasoned technology executive with over 30 years of transportation IT industry experience, Mr. Thomas Martucci oversees the development and implementation of technology strategies that generate revenue and reduce costs. As VP for CCM and CTO for CIT, Mr. Martucci is responsible for business process management, software development, and technology implementation.