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VSE Takes You Further

Fleet Owner / November 11, 2014 Trucking has undergone a major transformation in the past five years as fleets have re-examined every aspect of their operations from equipment to business plans. Think about just a few of the major issues fleets have had to address in recent years: evaluating new fuel options, navigating basic changes to safety regulations, a rapid evolution in truck technologies, a slow-growth economic recovery, and the list goes on. As we approach 2015, it’s an excellent time to step back from everyday business and take the pulse of this critical industry. What does a truck fleet look like today? How is it different from fleets of even five years ago? And what will it look like in five more years? Our “State of Trucking Report” focuses on four general areas looking at where we’ve been and where we expect to go. With the Great Recession officially declared over in mid-2009, the state of the economy report finds the gradual recovery of the last five years is finally gathering some steam, especially here in the U.S. The future it outlines for trucking might even be called rosy, with robust growth as trucks continue to dominate the movement of our freight. The last five years have brought an onslaught of new rules and requirements that have deeply affected trucking operations of all types. While CSA and new hours-of-service rules come to mind immediately as the most important, back in 2010 there were over 40 new federal regulations in some form of proposal. Many have fallen by the wayside and others like electronic logs and entry-level driver training are still in bureaucratic limbo. The good news, according to our state of regulation report, is that while they still may be on the way, the overall pace of truck regulation is expected to slow in the coming years. Perhaps no area has seen as much change over the last five years as trucks themselves. After years of watching fuel economy drop with each new wave of emissions requirements, 2009 proved to be a tipping point as new technologies recovered that lost efficiency and pushed into new territory for trucks of all sizes. Prices, too, followed. The forecast in our state of equipment report offers encouragement on all sides. Although they are often underestimated, the societal changes shaping trucking are examined in the final report. If you doubt such a core industry as trucking can be buffeted by changing social attitudes and trends, think about the explosion in e-commerce since 2009, then add employment pressures fueling the nearshoring phenomenon and the shifting demographics driven by an aging population and immigration. The industry has certainly changed greatly and rapidly over the last few years. But as “The State of Trucking Report” makes so clear, that’s all just been a prelude to the rapid transformation on the way. Both our nation’s and the world’s economy have slowly but surely climbed a long hard road out of the depths they fell to when the Great Recession walloped business activity around the globe in 2009. The global economy—including the very significant U.S. component of it—is now seen as having hauled itself back onto firmer footing. What’s more, it appears on the whole that economic activity here and abroad will gain further and more impressive elevation over the next five years or so. The bottom for the U.S. economy, as pegged by the Federal Reserve Bank of St. Louis, extended from when real gross domestic product (GDP) began contracting in Q3 of 2008 until GDP began growing once more in Q1 of 2010. The Great Recession began in the U.S., per the nonprofit National Bureau of Economic Research, in December 2007 and ran for 18 months, ending in June 2009. “GDP per capita started expanding in the third quarter of 2009 and reached its pre-crisis level in about four years,” states the “Economic Report of the President,” sent to Congress in March of this year. In addition, that communication contends that “potential real GDP is projected to grow at a 2.4% annual rate” through 2020. The American Trucking Assns. (ATA) also projects U.S. GDP to improve 2.9% between 2014 and 2019. World view According to A.T. Kearney’s Global Business Policy Council’s “Global Economic Outlook 2014-2020,” released in June, the global economy is “finally beginning to stabilize,” leading the firm to “anticipate a return to annual global growth of approximately 3% to 4%” in the 2014-2020 time period. “Emerging economies will continue to grow in excess of 4%,” the firm forecasts, “while the growth rate of advanced economies [such as the U.S.] is forecast to reach [greater than] 2% for the first time since 2010.” Indeed, the firm describes what will unfold as a “transitory shift to ‘renewed normal’” for economic activity over the next five years as the global economy is “finally transitioning from the Great Recession to a period of more stable growth.” As Kearney sees it, higher confidence, increased international trade, and a return to greater investments will drive higher growth around the globe. “As a result of this economic growth,” the firm points out, “the international flow of goods and capital will surpass their pre-Great Recession levels.” Kearney says that before the global economic crisis, foreign direct investments (FDI) were primarily directed to advanced economies. These are investments made by a company/entity based in one country into a company/entity based in another. Then, between ’08 and ’13, emerging markets scored higher FDI in-flows than did the advanced economies. But, looking ahead to 2020, the advanced economies will push FDI growth to more than $2.5 trillion globally. What’s more, this year will mark a shift back toward advanced economies—with the U.S. at the forefront—leading global GDP growth. In the 2014-2018 period, says Kearney, advanced economies are expected to contribute more than emerging economies to global growth for the first time since the Great Recession began, marking the birth of that “renewed normal.” As for the U.S., its economy is stronger going forward, states Kearney, thanks to it being “bolstered by private sector growth, financial sector stability, and rising demand.” There are four key elements underpinning this positive view of the domestic economy: increased stability, improved competitiveness, rising demand, and stronger output. Increased stability is being shown by strong financial markets growing credit, the “wealth effect” from greater stability in the housing markets and improved worker mobility.Improved competitiveness is being fostered by the country’s “energy revolution,” which is leading to greater cost-competitiveness, as well as by companies “capitalizing on strong R&D with a large, educated workforce and high innovative potential.”Rising demand is being indicated by stronger employment that is supporting improved consumption as well as by such other drivers as “repaired household balance sheets” and renewed credit growth.Stronger output is being supported by companies increasing fixed investments along with stronger domestic and global demand for durable goods and “slower government fiscal consolidation.”Policy issues Kearney also contends that national policies undertaken and the effectiveness of structural reforms initiated by governments will be decisive in determining actual economic outcomes through 2020. The firm stresses that the economies of the G20 nations, as well as those of other countries, will face “key policy tests” over the next five years in these areas: business environment (including inflexible labor markets and constrictive regulations); educational systems; governance (strong or weak rule of law); income inequality (high levels stifle growth); infrastructure investment; and institutional weakness (governmental bodies unable to carry out their mandates). According to Kearney, as macro-level fiscal and monetary supports recede through 2020, “growth will be differentiated by the substance of structural reforms and the quality of policy decisions” made by each nation. “For each country,” advises Kearney, “the key question will be whether the political system can identify and address the hard choices necessary to drive long-term growth.” Kearney also discusses two caveats that have the potential to impact the global economy: physical climate factors and numerous “geopolitical flashpoints.” Freight ahead Zeroing in on the outlook here at home, the latest long-term freight forecast prepared by the ATA in collaboration with IHS Global Insight predicts overall U.S. freight tonnage will rise almost 25%, and revenues from that freight will surge above 70% over the next decade. The ATA “U.S. Freight Transportation Forecast to 2025” foresees further growth, not just for the trucking industry, but for the entire freight economy, according to ATA chief economist Bob Costello. “We continue to see growth for the entire freight economy, but we also see that trucking will maintain its position as the nation’s dominant mode of freight transportation,” wrote Costello. “Truck freight generated nearly $682 billion in revenue last year, which is a new record.” “According to IHS Global Insight,” he continued, “total truck tonnage, including for-hire and private carrier operations, hit 9.68 billion tons in 2013, the highest level since 2008. As of last year, total tonnage was up 13.6% from the low in 2009.” Costello remarks that “despite the slow [economic] recovery so far, the long-run [freight] outlook still remains bright for nearly all modes.” He adds that key contributors to the projected “robust growth” will involve “many factors,” in­cluding trends in manufacturing, consumer spending and international trade. The report forecasts these highly positive freight developments: Overall freight tonnage will grow 23.5% from 2013 to 2025 and freight revenues increase by 72%.Growth in overall freight volume is pegged at 2.8% per year from 2014 to 2019, then it tapers off to 1% during the next six years, through 2025.Trucking’s share of freight tonnage will increase from 69.1% in 2013 to 71.4% in 2025.Rail intermodal tonnage will grow 5.5% annually through 2019 and 5.1% a year through 2025, yet rail market share will shrink from 14.5% of all tonnage in 2013 to 13.8% in 2025.The report also serves up these positive takes on the road ahead: Trucking will increase its share of the freight pool because trucks dominate the transportation of general commodities— and those will continue to grow at a faster rate than bulk commodities. Trucking will also gain from rising U.S. crude oil and natural gas production.As demand/production of key truck-oriented commodities improves, trucking’s market share of tonnage should expand to 70.9% in 2019 and to 71.4% by 2025.Trucking’s share of total revenue is estimated to reach 81.5% in 2025, versus 81.2% in 2013.Truckload volume will expand 3.5% per year from 2014 to 2019 and then by 1.2% per year from 2020 to 2025. This projection reflects the anticipated performance of key commodities and freight-market segments.Truckload carriers are seen as increasing their use of railroads to handle intermediate and long-distance trailer hauls through the forecast period.Less-than-truckload (LTL) volume is forecast to rise from 145 million tons in 2013 to 177.7 million tons in 2019 and then to 204.6 million tons in 2025, which would translate into an average annual growth of 3.8% from 2014 to 2019 and of 2.5% during 2020 to 2025.Private-carrier volume is expected to expand by 3% per year from 2014 through 2019 and then 1% per year from 2020 to 2025.The private-carrier share of total transportation volume is forecast to “hold steady at 34.9% throughout the forecast period compared with 34.4% in 2013.Underpinning the report’s unmistakably upbeat outlook are numerous positive factors that the authors expect will play out in trucking’s favor in the coming years. “The domestic economy remains the driving force behind the performance of the nation’s freight pool, with foreign trade playing a secondary but significant and growing role,” the report’s authors assert. What’s more, they contend that “if we are right about the future path of the U.S. and global economy, the nation’s freight pool could grow by 23.5% over the 12 years from 2014 through 2025.” More specifically, per the report, a “cyclical snapback” in housing and construction from 2014 to 2016 will help support freight tonnage growth of 16.6% from 2014 to 2019. In addition, it notes that general commodities will continue to expand at a faster pace than bulk commodities. As for the negative factors out there that one would need very darkly tinted rose-colored glasses to miss considering, the authors of Forecast point out that “healthy long-term growth in the United States cannot be maintained without healthy spending on the transportation infrastructure, state-of-the art equipment, and technology.” They also advise that their forecast “remains vulnerable to shocks to the system, such as a territorial dispute with China involving its neighbors or the United States; a worsening of the already dicey situation in the Middle East; an oil supply crisis that would send crude-oil prices spiraling higher; or [the occurrence of] major natural disasters.” If you were sitting in the audience at the FTR Associates Transportation Conference in September of 2010, you would have had the opportunity to hear former Federal Motor Carrier Safety Administration (FMCSA) Administrator Annette Sandberg discuss the wave of regulations soon to break over the trucking industry. Anne Ferro had assumed leadership of FMCSA the year before and hit the ground running. By the time she was to leave the post in August of this year, she would be remembered for greatly expanding the agency’s reach and power, but that was still the future in 2010. So on that September day, Sandberg was, as usual, prophetic about what was to come. She talked about the pending CSA 2010, due to go into effect that December; new hours-of-service (HOS) regulations expected to be published later in the fall that would very likely reduce driving hours and change the 34-hour reset provision; and nearly 40 other new regulations waiting in the wings. “It is not just CSA 2010 or changes to HOS. It’s also about the new pre-employment screening procedures that began in May of 2010; new entrant regulations put in place in December 2009; EOBR [electronic onboard recorder] mandates; and new entry-level driver training requirements [published in August 2009] due January 2011, just to name a few,” she said. “You have to look at the regulatory ripple effect from this broad context,” Sandberg added. “If all of these [new regulations] come out on schedule in the next few years, they’ll have a significant impact on trucking.” Jumping ahead to the spring of 2014 and another industry conference, this time the National Private Truck Council Annual Education Management Conference and Exhibition, you might have been in the audience listening to Richard Schweitzer, transportation law and policy attorney and general counsel for NPTC, providing his annual regulatory/legislative update. Schweitzer noted that the regulatory and legislative world seemed to be moving “more slowly” or even mired down entirely on several fronts. This was not necessarily bad news for fleets. One stalemate that concerned fleets, he noted, was financing for the Federal Highway Trust Fund, which was almost entirely broke at the time. He predicted another short-term fix from Congress that would “kick the can down the road” until after the next mid-term election. He was right. Today, Schweitzer still makes it his business to look behind the curtain of the future at regulations that are perhaps waiting in the wings. Here is his list of probable rulemaking events over the next five years: Entry-level driver training standards (now in court; supposedly a negotiated rulemaking to follow)Sleep apnea standards for screening, testing, diagnosis, treatment and disqualificationsEquipment standards from NHTSA (National Highway Traffic Safety Administration) for stability control, lane departure warnings, vehicle integrityRevised safety fitness determinations for motor carriersIncreased minimum financial responsibility requirementsThe biggest regulatory area of all, however, he predicts will be “all of the rules relating to driverless, or ‘autonomous,’ vehicles, which eventually will obviate the need for all of the other driver regulations but create a new liability scheme for carrier management.” Just when you thought the rulemaking extravaganza was almost over, too. Regulatory timeline: a busy decade Here are a few action highlights from the past decade of trucking industry regulation. It is worth noting that in 2009 and 2010, government regulation made it into the top three “Critical Issues in the Trucking Industry” list published by the American Transportation Research Institute. January 2010: Hours of service (CFR Part 395). FMCSA holds “listening sessions” around the country concerning possible changes to driver hours-of-service (HOS) regulations. They get an earful.January 2010: EPA emissions regulation deadline NOx. Engine makers have been working since 2007 to meet new Environmental Protection Agency (EPA) emissions standards for oxides of nitrogen. The industry is almost entirely favoring the use of SCR (selective catalytic reduction solutions--urea) to bring NOx emissions down. The cost of new trucks is expected to jump, but the hope is that fuel efficiency will improve again after the losses caused by adding particulate traps to the exhaust stream earlier. That hope is realized.April 2010: Electronic onboard recorders for logging hours of service (CFR Parts 395, 396 and others). Incorporates new performance standards for electronic onboard recorders (EOBRs) installed in commercial motor vehicles manufactured on or after June 4, 2012. Onboard hours-of-service recording devices meeting FMCSA’s current requirements and installed in regulated vehicles manufactured before June 4, 2012, may continue to be used for the remainder of their service life.September 2010: Antilock brake systems (CFR Part 393). Makes permanent the existing requirement that trailers equipped with antilock brakes have external malfunction lamps.October 2010: Limiting the use of wireless communication devices (CFR Part 383 and others). FMCSA publishes the Final Rule prohibiting texting by commercial motor vehicle drivers while operating in interstate commerce and imposing sanctions, including civil penalties and disqualification from operating in interstate commerce, for drivers who fail to comply with this rule. Motor carriers are also prohibited from requiring or allowing their drivers to engage in texting while driving.December 2010: Hours of service (CFR Part 385 and others). FMCSA publishes its Notice of Proposed Rulemaking on hours of service. The administration favors a 10-hour limit, but notes it is still open to input on an 11-hour duty period.February 2011: Electronic logs (CFR Parts 395, 396 and others). Under this Notice of Proposed Rulemaking, all motor carriers currently required to maintain Records of Duty Status for HOS recordkeeping would be required to use electronic logs to “systematically and effectively monitor their drivers’ compliance with HOS requirements.” April 2011: Harassment (CFR Parts 395, 396 and others). The issue of using electronic logs to harass drivers rears its head and FMCSA initiates a period for public comment, noting that it believes it has addressed harassment adequately in the recently published proposed rules.May 2011: Commercial driver’s license testing and learner’s permit standards (CFR Parts 383-385). FMCSA publishes a Final Rule amending the commercial driver’s license (CDL) knowledge and skills testing standards and establishes new minimum federal standards for states to issue the commercial learner’s permit (CLP).December 2011: Use of cellular phones while driving ( CFR Part 390 and others). FMCSA issues its Final Rule restricting the use of hand-held mobile telephones, including hand-held cell phones, by drivers of commercial motor vehicles while operating in interstate commerce. There are new driver disqualification sanctions for interstate drivers who fail to comply.December 2011: Hours of service (CFR Part 385 and others). FMCSA publishes a Final Rule amending HOS regulations to limit the use of the 34-hour restart provision to once every 168 hours and to require that anyone using the 34-hour restart provision have as part of the restart two periods that include 1 a.m. to 5 a.m. It also includes a provision that allows truckers to drive if they have had a break of at least 30 minutes sometime within the previous eight hours. It leaves the 11-hour limit in place.April 2012: National registry of certified medical examiners (CFR Part 390 and others). FMCSA publishes its Final Rule establishing a National Registry of Certified Medical Examiners with requirements that all medical examiners who conduct physical examinations for interstate commercial motor vehicle drivers meet certain criteria spelled out in the regulation.May 2012: Electronic onboard recorders (CFR Parts 395, 396 and others). FMCSA “vacates” its electronic logging rulemaking of April 2010 over the harassment issue.August 2012: New entrant corrective actions—safety audit failure (49 CFR Part 385). FMCSA publishes a Notice of Policy advising new motor carriers that it must receive a new entrant motor carrier’s evidence of corrective action within 15 days of the date of a safety audit failure notice or within 10 days of the date of an expedited action notice. Failure to comply could result in having the carrier’s registration revoked and being placed out of service.August 2013: Retention of driver vehicle inspection reports (CFR Parts 392, 396). This well-intended Notice of Proposed Rulemaking is meant to ease paperwork burdens by no longer requiring that commercial motor vehicle drivers operating in interstate commerce (except drivers carrying passengers) submit, and motor carriers retain, driver-vehicle inspection reports when the driver has neither found nor been made aware of any vehicle defects or deficiencies. That is not the effect.September 2013: Entry-level driver training requirements (CFR Part 383 and others). With this notice of withdrawal, FMCSA abandons its 2007 effort to establish minimum training requirements for new drivers and announces its intent to start over anew.September 2013: Tank vehicle endorsements (CFR Part 383). FMCSA issues this Notice of Proposed Rulemaking to expand the definition of a tank vehicle in ways that will require more drivers to obtain tank vehicle endorsements on their learner’s permits.October 2013: Hours of service (CFR Part 395). Yet another Final Rule on HOS, this action provides an exemption from the 30-minute break provision for short-haul drivers. February 2014: CDL drug and alcohol clearing house (CFR Part 382). This Notice of Proposed Rulemaking from FMCSA is intended to create a database under the agency’s administration that would contain controlled substances (drug) and alcohol test result information for the holders of commercial driver’s licenses.February 2014: Patterns of safety violations by motor carrier management (CFR Parts 385, 386). This publication makes final a 2012 rulemaking proposal and enables the agency to “suspend or revoke the operating authority registration of motor carriers that have shown egregious disregard for safety compliance or that permit persons who have shown egregious disregard for safety compliance to act on their behalf.” February 2014: Sanitary transportation of food for people and animals. The trucking industry is accustomed to regulatory activity by FMCSA and EPA, but this Notice of Proposed Rulemaking from the Food and Drug Administration (FDA) seems to hang just under the radar. It contains requirements for processes and procedures, employee training, recordkeeping and auditing to help assure that food is kept under sanitary and correct-temperature conditions from farm to fork.May 2014: Automatic onboard recording devices (CFR Part 395). This Notice of Proposed Rulemaking would make it acceptable to provide information requested by roadside inspectors on a display screen rather than requiring printed or faxed documents.May 2014: Coercion of drivers (CFR Part 385 and others). Don’t even think about it. This Notice of Proposed Rulemaking would prohibit motor carriers, shippers, receivers or transportation intermediaries from coercing drivers to operate commercial motor vehicles in violation of certain provisions of the Federal Motor Carrier Safety Regulations—including drivers’ hours-of-service limits, the commercial driver’s license regulations, and associated drug and alcohol testing rules—or the Hazardous Materials Regulations.August 2014: Entry-level driver training requirements (CFR Parts 380 and others). It’s back. Initiated in 2007 and abandoned in 2012, FMCSA proposes with this Notice of Intent to conduct a Negotiated Rulemaking on new driver training, involving parties beyond the agency.For a good example of how the cost footprint of trucking equipment has changed over the last several years, look no farther than Hudson, IL-based TL carrier Nussbaum Transportation Services. Founded in 1945 and today operating 245 trucks and 600 dry van trailers, Nussbaum has improved its fleet’s fuel economy some 26% since 2010 through a range of vehicle aerodynamic and spec’ing changes married to driver performance initiatives. Brent Nussbaum, president and CEO, noted at a recent industry meeting that since 2010 his fleet has moved its fuel economy average from 6.5 to 8.2 mpg as of this year. Several of the carrier’s drivers have even achieved 8.81 mpg behind the wheel of new 2014 and 2015 model Freightliner Evolution package Cascadia highway tractors. Donald Broughton, managing director, senior research analyst and chief market strategist for Avondale Partners, said that such fuel efficiency figures cited by Nussbaum represent a big opportunity for fleets to increase profitability. “Fuel economy is a major tailwind now. It’s huge,” he explained. “Moving from 6 mpg to 9 mpg over 120,000 mi. per year saves $30,000 in fuel at today’s diesel prices; that’s a 19¢ to 20¢ per mile savings.” Such savings are critical to help counterbalance the sticker shock suffered by fleets since the implementation of mandated emissions control systems began over a decade ago. Starting in 2002, about $1,800 to $3,000 was added to the base cost of a Class 8 truck to meet the first round of emissions regulations. For 2007, an extra $5,000 to $10,000 got tacked on to Class 8 sticker prices, followed by another $6,700 to $10,000 extra in 2010 to meet the final round of emissions mandates. More cost, savings According to data analyzed by global consulting firm Frost & Sullivan, the average cost of a new tractor-trailer is now estimated to range between $140,000 and $175,000; anywhere from $110,000 to $125,000 for a new Class 8 tractor; and $30,000 to $50,000 for a new trailer, depending on whether it’s a flatbed, dry van, or refrigerated model. “From 2007 through today, the biggest factor in trucking total cost of operation calculations has been fuel,” explains Sandeep Kar, global director of automotive & transportation research at Frost & Sullivan. “So now, as equipment becomes more efficient and productive, that will balance out the higher acquisition cost.” “We are certainly seeing better fuel economy for heavy trucks since 2010 as equipment continues to get more aerodynamic and lighter,” adds Jonathan Starks, director of transportation analysis for research firm FTR Transportation Intelligence. And though the imposition of greenhouse gas (GHG) reduction rules over the next five years will change the equipment equation yet again, this time both the industry and U.S. government regulators will be moving toward the same goal: improving fuel efficiency. “Though equipment will still get more expensive—there is no doubt about that—the argument can be more successfully made that fleets will be paid back in fuel savings,” Starks says. “That argument couldn’t be made five to eight years ago where exhaust emissions were concerned.” Starks also stresses that cost increases going forward to comply with GHG rules should be more incremental in nature compared to the larger dollar figures attached to emissions control systems in 2007 and 2010. Hard rocks Yet many fleets, especially smaller carriers, are currently stuck between a rock and a hard place of sorts when it comes to buying new equipment. On the one hand, many skipped several buying cycles to avoid the higher sticker prices for 2007 and 2010 emissions-compliant rigs and now face an accumulation of purchase price increases in one fell swoop. At the same time, the higher costs associated with operating older equipment, especially in terms of lower fuel economy combined with higher maintenance costs and added downtime, put added pressure on a carrier’s bottom line. Patrick Gaskins, vice president-financial services of AmeriQuest Transportation, notes that tractors today sport an average age of 9.6 years—a near record—leaving fleets with just two options: chase financial savings or fuel efficiency. “Back in 2006, a base-level day cab tractor cost around $85,000 per unit,” he explains. “Today, it’s around $110,000, an increase of $25,000.” The fuel economy gains over that same time period can make such a difference to the bottom line that it can “absolutely [be a] key factor” in making the decision to keep or replace, Gaskins says. “For example, if a new vehicle delivers 8 mpg vs. the 6 mpg of the existing vehicle, that 2 mpg difference can be extremely significant,” he explains. “If a tractor runs 120,000 mi. per year and diesel costs $4 per gallon, that 2 mpg increase in the new asset can equate to a savings of 5,000 gals. of diesel per year, equaling $20,000 in fuel savings annually,” Gaskins says. This more than offsets the higher acquisition costs. With the accumulation of lower annual mileage, Class 6 and 7 trucks are witnessing similar cost benefits from improved fuel efficiency, he stresses, and those gains are projected to continue over the next five years as new specifications are established to comply with GHG rules. “Some of the trucks we’re seeing today can achieve 8 mpg and even 10 mpg,” Gaskins says. “That’s a big change to the baseline expectations for fuel economy. So one of the points I like to make is that if the OEMs delivered a truck that could average 12 mpg, even at a [purchase] cost of $200,000, the fuel savings still make it work.” While he notes that it’s “impossible” for a fleet to replace all of its aging vehicles at once, Gaskins says carriers should conduct a “fleet performance analysis” to identify the “order of replacement” for current equipment based on historical fuel economy costs, maintenance and repair costs, usage patterns, fixed financing costs, and acquisition and disposal trends. “Deciding which vehicles to keep and which to replace can require painstaking calculations and research,” he warns. “But there is a perfect point, sometimes referred to as the sweet spot, when it costs less to replace a vehicle than to keep it. Target those vehicles which qualify as the first vehicles to replace.” Even for smaller fleets, such comprehensive fleet performance analysis routinely reduces fleet operating costs by 15% to 20%, Gaskins explains. Frost & Sullivan’s Kar feels that such equipment cost reductions could increase over the next five years, depending, of course, on the progression of remote diagnostic offerings and how data gleaned from such technology is used to reduce maintenance costs and vehicle downtime. “The total benefit available from ‘soft’ technology trends really isn’t there yet,” he explains. “Since 2007, only two components—the engine electronic control module and tire pressure management systems—have been linked to telematics to offer up the kinds of prognostic repair capabilities fleets are seeking.” Small vs. large Almost every component on a Class 8 truck today—from brakes, wheels, and axles to the transmission—are monitored by some sort of sensor array. “So the real benefit is going to come when every vehicle system is connected to telematics, and that is what will truly revolutionize truck maintenance,” Kar says. FTR’s Starks cautions that there will be a dichotomy within the fleet world over the next five years between those who can afford to make the equipment upgrades that will, in turn, deliver all of those savings and those who can’t. “The large fleets still have access to low-cost capital so they can right-size and modernize their operations fairly quickly,” he explains. “That leaves the smaller fleets trying to play catch-up. Now, if freight demand stays strong and they get the rate increases they need, they will be able to afford to buy newer equipment.” But if they don’t, they will struggle more than most because the preponderance of all the old equipment is on the small fleet side of the trucking industry. Back in 2009, most trucking companies were only concerned with survival. Fighting through the worst economic downturn since the Great Depression, executives focused most of their attention on the here and now and not on what might become. Sure, the industry was about to get hit with the 2010 EPA emissions regulations, but that was just one change coming. Hard-hit retailers, in particular, were trying to find their footing as consumers stopped shopping in stores and started adopting a new wave of purchasing power—e-commerce. Up until that point, most Americans might have thought that e-commerce was simply a misspelled word, but technology helped change that. To accommodate the new shopping world, retailers started changing their distribution patterns. Add in an economy that has grown steadily, albeit slowly, from its nadir, and suddenly truck fleets had more to worry about than just the increasing costs of equipment. A state of change More freight meant the need for more drivers and more trucks. Changing freight patterns meant reworking supply chains. It was an industry in change at a time when many fleet owners were still trying to figure out if they would survive the Great Recession. There are plenty of outside influences that have affected—and will continue to affect—trucking, making it difficult to pick just a few. But one of the most important has been the changes in distribution. A couple of trends are affecting the industry, led by the push to bring manufacturing back to North America after years of job outsourcing. The nearshoring and reshoring movements are still in their early stages, though. Both terms refer to the movement of manufacturing from overseas into the U.S. or nearby locations such as Mexico. For years, U.S. companies shipped jobs overseas because labor and production was cheaper. That trend is starting to turn. In 2013, the AlixPartners “Manufacturing-Sourcing Outlook” found that the U.S. had reached “parity with Mexico as a preferred nearshoring location.” Also, 37% of respondents said their preferred nearshoring location would be the U.S.—the same percentage that said Mexico, the report noted. “This continues a trend seen over the past two years of the U.S. closing the gap with Mexico.” In addition, the report said the U.S. appears to be close to “cost parity” with China, which may occur as early as 2015. At this point, the continued increase in nearshoring and reshoring is quite dependent on U.S. tax policies. Should tax law changes reduce the effective tax rate of corporations, more jobs may come back stateside. If overseas profits remain untaxed, or lightly taxed, jobs may stay overseas. What does this mean for trucking? As more manufacturing is handled stateside, more raw materials must be moved. With trucking moving about 70% of all goods—and 55.4% of all trade with Canada and 65.4% of all trade with Mexico, according to the American Trucking Assns. (ATA)—the increased growth in freight will further tighten capacity. The other big freight growth driver for trucking is the continued love-affair Americans have with e-commerce shopping. Online purchasing, led by Amazon and now being adopted by most major retailers, has grown more than 100% in the past five years. Growth is expected to continue, increasing from $263.3 billion in 2013 to $491.5 billion by 2018, according to eMarketer. Much of that growth will be led by computer and consumer electronics. That growth will influence freight delivery and freight patterns. Most e-commerce purchases are handled by less-than-truckload carriers and package delivery companies and as companies open additional distribution facilities to speed product delivery, it is also affecting fleets and drivers. In the e-commerce model, explains research from Stifel, Nicolaus & Co., product is shipped via truckload or intermodal to local fulfillment centers and then final delivery takes place via package delivery or smaller, regional carriers. That is beginning to open up the more desirable local driving jobs. But even that, though, has not been enough to put a dent in the growing driver shortage, estimated by some at 30,000 or more currently and only expected to get worse, according to the ATA. In response, carriers have started raising wages. The American Transportation Research Institute says driver wages have increased 2.3¢ per mile and driver benefits have increased 1.3¢ per mile from 2008 through 2013. Those will only go up in the next five years as more drivers will be needed to move an increasing amount of freight. Women & minorities The U.S. government projects that 330,000 new truck drivers will be needed to meet freight demands by 2020. Total U.S. freight tonnage is expected to increase 23.5% by 2025, ATA said. Five years ago, in the midst of the Great Recession, a driver shortage barely registered. Today, though, it does. But raising driver pay is not the only answer to get more drivers. Neither is more home time. Many fleets are coming to realize this isn’t only an issue of economics. “When I think about it, I think about how maybe the lowest paying carriers are paying $40,000 and the highest paying carriers are paying $80,000,” John Larkin, managing director & head of transportation capital markets research for Stifel, recently said. “In the oil field [industry], it’s probably $100,000 to $120,000. Yet the people paying $80,000 per year to their drivers are still struggling.” So where are the drivers now and from where will they come? “There is a driver shortage in the U.S., in part because the blue collar workforce is shrinking rapidly and because our society has moved from a focus on goods and products to services,” Larkin explained at a recent conference. To find drivers, two areas that the industry might turn are immigrants and minorities. As of 2012, 34.5% of drivers were minority, but only 5.4% were women. Back in 2004, a report from Global Insight suggested that the whole male population, which still makes up the bulk of the driver population, would “decline by over 3 million persons between 2004 and 2014.” That should necessitate the opening of the door to more minority and female recruiting. Ellen Voie, founder of the Women in Trucking Assn., suggested in a recent Fleet Owner IdeaXchange post that carriers need to be more aggressive in recruiting women. “Trucking company executives often tell me that women are better at completing their paperwork and often treat their equipment better than their male counterparts. Regarding communication, women are often viewed as being better with customers as well,” she wrote, adding that more driver-friendly trucks are one solution. “The length of haul is getting shorter and time at home is viewed as crucial in attracting and retaining drivers,” she continued. “Adding women to the driver pool is not just something we should do to fill a need; it’s something we should be doing because we have an opportunity to utilize under-represented potential.” According to the Bureau of Labor Statistics, the average age of a truck driver today is 55. The American Society for Training and Development (ASTD) has studied Generation X and Millennial workers and found that they put more value on work-life balance and technology than previous generations. With close to 77 million Baby Boomers expected to retire within the next 15 years and only 46 million new people entering the workforce, ASTD said, finding the next generation of truck drivers is only going to become more difficult. Immigrant influx Immigration has been a hot-button issue for years and has grown increasingly political recently as more than 50,000 children, most from Guatemala, Honduras and El Salvado, have entered the U.S. seeking asylum. But immigration is more than just children, and it has had a profound effect on business, particularly trucking. President Barack Obama promised an immigration reform bill as part of his second term in office, and while Republicans and Democrats agree something should be done with the millions of illegal immigrants in the U.S., the two sides have, as of yet, gotten together to develop a comprehensive plan going forward. Should one be worked out, the legal workforce could see an influx of millions of people and that could be a boon for trucking. The Congressional Budget Office (CBO) predicts U.S. population growth of 4.3% by 2018 due to immigration alone. And that doesn’t factor in the 11.5 million illegal immigrants awaiting permanent status today. Passage of an immigration reform bill could add millions of additional immigrants, CBO said. With a new labor force, it’s possible that both driving and non-driving jobs could be filled. And the influx could also create competition for jobs, helping keep wage and benefit costs in line. Shorter hauls As mentioned, another change that is taking place is the addition and relocation of distribution centers to both create shorter routes for drivers and also to get product into the hands of consumers quicker. That is mirroring a migration shift in the country that is seeing more people move into densely populated areas where job growth is occurring, Stifel noted. As of 2013, half of the U.S. population now lives in just 145 counties clustered in four primary areas: the Pacific Northwest, Southern California, Florida and the Northeast. From 2008 through 2011, it was Texas, North Carolina and Florida that saw the most growth in population. As the population moves from one place to another, that puts a strain on local infrastructure and logistics operations, which must be adjusted. And while all of these items—immigration, freight distribution, e-commerce—will play a significant role in shaping trucking for the next five years, the one thing that may do more to shape what trucking looks like going forward has little to do with the business of operating trucks. It is the industry’s public image. In this day and age, when politicians seemingly have more interest in pleasing the public without attaching their name to legislation that might not get them re-elected, it is becoming fashionable to jump on the latest public cause—and the latest cause is distracted driving. What began a few years ago as a crusade to curb accidents due to phone use while driving has morphed into a cause célèbre that has enveloped trucking and hours-of-service regulations. Industry concerns are no longer just industry concerns. The public image of the industry and its drivers is an issue that has drawn attention from mainstream media outlets, which ratcheted up the calls to get dangerous truckers and unsafe trucks off the roads following the widely publicized June crash involving a Walmart tractor-trailer and a vehicle with several people inside, including actor Tracy Morgan. One person was killed and Morgan was seriously injured. But for critics of trucking, it was the kind of accident they needed to increase the pressure on the industry. To shore up the industry’s public image, a coalition of groups got together and formed Trucking Moves America Forward (TMAF), an effort by the industry to “inform policy makers, motorists and the public about the benefits of the trucking industry to help build a groundswell of political and grassroots support necessary to strengthen and grow the industry.” A special industry “Today’s modern truck drivers are skilled professionals and devoted family men and women, trained to focus on safety, efficiency and reliability while operating the safest and most sustainable trucks we have seen to date,” Steve Ponder, chairman of TMAF, and vice president of Great West Casualty Co., said at the official introduction of the group at the Mid-America Trucking Show in March. “Trucking is an important industry to our country. Nearly every consumer good touches a truck along its journey, and we are excited to share what makes trucking so special with the American people,” he added. To those within the industry, it is considered an effort that is long overdue. But it is an effort that over the next several years may flip the image of dirty trucks and unsafe drivers. And if successful, it could ease the pressure trucking faces on a daily basis from customers, the public at large, and even Washington regulators. Trucking would love to roll into that future. .

Commercial Carrier Journal (CCJ) / November 24, 2014 The Specialized Carriers & Rigging Association has asked the Federal Motor Carrier Safety Administration to grant drivers carrying loads that are oversize or overweight an exemption to the the 30-minute break requirement of the 2013 hours of service rule. The 30-minute break requirement was instituted in July of last year, when the latest hours of service rule took effect. It requires drivers to take a 30-minute break within the first eight hours of their on-duty time. Compliance with this requirement is “extremely difficult” for specialty loads haulers, SC&RA says, due to state permit restrictions that often limit when and where oversized/overweight loads can be transported. The exemption is requested for all permitted loads, according to SC&RA’s application for exemption. “The 30-minute break uniquely affects OS/OW loads and has exacerbated the number of instances in which drivers have had to park these loads at roadside, consequently impacting the safety of both the general public and the driver,” according to the application, posted Nov. 24 in the Federal Register. Average oversize and overweight loads are 15-16 feet wide and longer than 100 feet, according to SC&RA. Finding parking for these loads is more difficult than with other loads, SC&RA says, and drivers of the specialty loads are often forced to park alongside highways or exit ramps during the required 30-minute break. “SC&RA does not foresee any negative impact to safety from the requested exemption. It believes that granting the exemption would have a favorable impact on overall safety by reducing the frequency of drivers resorting to less than ideal parking options, thereby reducing the frequency of lanes being partially or fully obscured,” according to the application. FMCSA is accepting public comment on the application for 30 days. Click here to make a public comment.

Fleet Owner / November 24, 2014 With reduced stopping distance rules now complied with and shrinking rapidly as a concern in trucking’s rear view mirror, suppliers are starting to examine ways brake systems for commercial vehicles can be furthered improved – this time with changes to control technology, not to the brake components themselves. “To meet the new FMVSS-121 reduced stopping distances (RSD), tractor manufacturers required braking systems with higher torque capacity,” says Jim Reis, VP/GM for the brake products division at Stemco. For instance, he said most steer axle brakes were upsized from typical 15-in. by 4-in. configuration to larger 16.5-in. by 6-in. configurations, with larger air chambers provided increased brake activation power and more aggressive friction formulations were also employed. “In many applications, front suspensions were upgraded to manage the increased braking torque and resultant load transfer [with] air disc brakes (ADB) also demonstrating sufficient capability to meet the new regulations,” Reis added. To use but one OEM example, Peterbilt Motor Co. made ADBs a standard feature on the steer axles of its highway tractors back in 2011 (with its brother company, Kenworth Truck Co., following suit in 2013). Now, however, brake suppliers are looking to further boost stopping performance by making changes to the brake system control technology as a way to speeding up activation times in order to gain more stopping distance. “Future foundation brake systems very likely will make use of electronics to assist/control brake activation and improve vehicle balance and stability,” said Stemco’s Reid. “Hybrid brake-by-wire systems may initially emerge with electronics controlling air reservoirs closely coupled or integrated into the air chambers to decrease the time required to build pressure and activate the brakes,” he added. “Just a 0.5 second improvement in activation time could reduce stopping distance by another 44 feet.” John Thompson, sales manager at TMD Friction, also believes the focus on a more “electronic braking” architecture will dominate braking system design efforts in the near future. “Air systems are still required, but the signal to the wheel end is by electronic signal instead of air,” he told Fleet Owner. “This will shave time off the system reaction, between brake pedal movement and brake application. [That means] a vehicle moving at 60 mph or some 88 feet per second will stop eight feet shorter if brake application is reduced by 1/10th of a second.”

Heavy Duty Trucking / November 224, 2014 Miami-Dade County, Fla., has placed its third order for Autocar E3 hydraulic hybrid refuse trucks that feature Parker Hannifin’s RunWise Advanced Series Hybrid Drive System. The additional purchase of 29 new hybrid trucks brings the total fleet to 64. The county purchased 29 of these vehicles in 2012 and six in 2011. Use of the hybrid vehicles vehicles reduces fuel consumption by up to 50%, according to Parker. The RunWise-equipped refuse trucks capture more than 71% of a vehicle’s otherwise lost braking energy, which can save up to 4,300 gallons of fuel per year, per truck. Trucks with the RunWise system have logged more than 1 million miles of operation. “Miami-Dade’s repeat orders prove that this technology works and continues to cut costs and reduce emissions for the county,” said Shane Terblanche, general manager, hybrid drive systems at Parker Hannifin. “We are encouraged by the positive feedback on RunWise’s environmental and operational results from Miami-Dade, which is among more than 30 other municipalities across the U.S. benefiting from our technology.” The RunWise version of the Autocar refuse trucks operate in Miami-Dade County and several other municipalities around the country, including Orlando, Fla.; Sacramento, Calif.; Tacoma, Wash; and Houston and Austin, Texas. The Autocar E3 equipped with RunWise technology is also available to waste management companies on a rent-to-own basis. .

Australasian Transport News / November 24, 2014 Owners of Detroit DD13 and DD15 engines are set to receive EW2 warranty benefits as of November 1, 2014. The benefits apply to both Australian and New Zealand customers, and will include no up-front costs, paid towing and no deductibles. "The DD13 and DD15 products have proven to be exceptionally reliable, and the new warranty is just another way that we deliver Detroit customers with the best service support available on the market today," MTU Detroit Diesel Australia director Kevin Dennis says.

Turbo Compounding A 25 to 30 percent energy loss occurs when exhaust gases exit the engine. While turbochargers successfully recycle some of that energy, there are additional recovery technologies available. One that Scania and Mercedes-Benz have both taken advantage of is turbo compounding. Similar to a turbocharger, the turbo-compound approach recovers waste-exhaust energy. The second turbocharger, the turbo-compound turbine, spins at 55,000 rpm. This motion is passed through turbine gears and a hydraulic coupling, then through the timing gears to the crankshaft. Stepping down the revs produces a useful boost in torque, which adds momentum when it reaches the flywheel. This means extra driving force without increased fuel consumption. * Scania in 1991 became the world’s first truckmaker to mass produce turbo-compound equipped truck engines. ** Daimler began production of turbo-compound equipped engines (OM472 / DD15) in 2008. One future possibility is a turbo-compounding equipped engine paired with a supplemental electric turbocharger in lieu of a conventional turbocharger. The turbo compound system would provide constant power, while electric turbocharger actuates during low speed overtaking and hill climbs. Exhaust-Driven Motor Generator An alternative to the complex and costly turbine-to-crankshaft gearing associated with turbo compounding systems is the exhaust-driven motor-generator. With an exhaust turbine, compressor wheel and generator all mounted on a common shaft, trucks could use the recovered electrical energy to eliminate the engine-driven alternators. The generator can also operate as a motor to preemptively spin a conventional turbocharger to eliminate low rpm turbo lag. In the case of a hybrid truck, the recovered electrical energy would be stored to power an electric drive motor located between the engine and transmission, providing supplemental power during low speed overtaking and hill climbs. In both cases, these new forms of supplemental power during peak demands would allow the use of smaller engines resulting in increased fuel economy. .

Car makers are showing a growing interest in electric turbochargers as a way to help decrease the size of engines without sacrificing the power and responsiveness. Electric turbochargers offer added flexibility because they can produce more power at lower engine speeds. Whereas exhaust-driven turbochargers require time to spool up, electric turbochargers boast the instantaneous response of an electric motor, eliminating “turbo lag” while ensuring high boost pressure at low engine speeds. Overall engine combustion efficiency is improved resulting in better fuel economy and lower emissions. Equipped with a two-stage electric turbocharger, variable valve timing system, high pressure fuel injection and further optimized gas exchange cycles, Volkswagen’s four-cylinder EA2888 diesel engine ordinarily rated at 150 horsepower now reaches 268 horsepower. VW will begin producing the engine next year. French parts maker Valeo will begin producing electric turbochargers from late 2015. The response time of their electric turbochargers, from idle to 70,000 rpm in less than 350 milliseconds, underlines the case for this new technology. In December 2011, UK-based Controlled Power Technologies (CPT) sold its VTES (variable torque enhancement system) electric turbocharger series for light vehicles to France's Valeo. One of the fuel economy benefits Valeo highlights is the combination of an electric turbo with the cylinder deactivation – i.e., the ability to shut off multiple cylinders under light loads in order to improve fuel efficiency. The fuel savings achieved by shutting off unneeded cylinders can be quickly lost when driving on roads that aren’t completely flat. Even a mild grade can cause an engine to switch back to running on all cylinders in order to produce enough torque to maintain speed. However with the addition of an electric turbocharger, the engine management system can request small amounts of boost on-demand to increase torque while climbing a grade while keeping as many as half of the cylinders inactive, yielding up to a 10% improvement in efficiency. The advantages of an electric turbocharger also apply to commercial truck diesel engines. The ability to gain immediate turbocharger response for low speed overtaking and hill climbs translates into reduced fuel costs and faster trip times. A supplemental electric turbocharger would be particularly effective with urban buses and trucks operating in stop-and-go city conditions. Take for example, an 11-liter engine equipped with a conventional turbocharger and a supplemental electric turbocharger. During low speed overtaking and hill climbs, the electric turbocharger would allow an 11-liter engine to temporarily provide the power output of a 13-liter engine, resulting in faster trip times and enhanced fuel economy. The ability to mount an electric turbocharger in-line anywhere between the engine and the intercooler offers under-hood (under-cab in the case of COEs) packaging flexibility. An electric turbocharger can also be utilized as a supplemental unit that comes into play at lower rpms, prior to when the primary exhaust-driven turbocharger ramps up. Today, Controlled Power Technologies (CPT) is focused on commercial truck, bus and off-highway applications with its "Cobra" water-cooled electric turbocharger. http://www.cpowert.com/assets/CPT%20COBRA_4pp_APR2014_4print%20%282%29-1.pdf http://www.cpowert.com/Products/COBRA-Water-Cooled-Electric-Supercharger Borg-Warner (Schwitzer) and Honeywell (Garrett AiResearch) are also developing electric turbochargers (no doubt Cummins' Holset unit is as well). . .

Yes, both the 4.5 Duramax and AVL-designed 6.7 PowerStroke have reverse flow heads. I don't understand why Ford still doesn't offer a diesel in their F-150. They have so many options, e.g. the 2.5 I-5, 2.7 V-6, 3.6 V-8 and 4.4 V-8. (Personally I'd be content with the in-line 2.5-liter five-cylinder paired with a ZF 8- or 9-speed). GM 2.8L I-4 diesel 181hp 369 lb/ft Ford 2.2 I-4 diesel 144hp 277 lb/ft Ford 2.5 I-5 diesel 185hp 350 lb/ft Ford 2.7 V-6 diesel 188 hp 325 lb/ft Ford 3.0 V-6 diesel 237hp 370 lb/ft Dodge 3.0 V-6 diesel 240hp 420 lb/ft Ford 3.0 V-6 diesel 251hp 440 lb/ft Ford 3.0 V-6 diesel 271hp 440 lb/ft Ford 3.2 I-5 diesel 201hp 350 lb/ft Ford 3.6 V-8 diesel 266hp 472 lb/ft Ford 4.4 V-8 diesel 330hp 516 lb/ft

Press Release / November 21, 2014 The Scania foundry at the company’s headquarters in Södertälje, Sweden, turns 100 years in 2014. The facility is where the heart of a Scania vehicle is created: the cylinder block and cylinder head. Scania produces between 85,000 and 90,000 engines each year. These are placed in trucks, buses, boats or prepared for use in industrial machinery, ahead of being delivered to customers around the world. And most begin their journey at the Scania foundry in Södertälje, Sweden. ”The operation has a long history, but our focus has always been on quality, tensile strength and the working environment,” says Kent Wargclou, a former head of the Scania foundry who spent 42 years working on the site. Focus on engine development Over its 100 years of operations, there have been significant changes at the foundry. The work here was previously heavy, hard and relied upon skilful craftsmanship. Today, the process is highly mechanised, with significantly higher demands on precision and tolerance levels. There has always been close ties between Scania’s foundry and the company’s Research & Development unit in areas such as materials and moulding sand. Today, this is becoming increasingly important, as tougher emissions standards puts even more focus on engine development. “The largest advantage of having our own foundry is that we can control the quality in all steps of the production process, right from the beginning with the casting of the part until machining and the final assembly of the engine,” says Fredrik Wilberfors, Design Engineer within Scania R&D. http://www.youtube.com/watch?v=zBeipXZ2VSg#t=138

Autoreview / No.16 2014 Thru 2015, the Kamaz team has used the 18.5-liter model YaMZ-7E846.1007 V-8 manufactured by the Avtodiesel Yaroslavo Motor Works. But from 2016, new Dakar regulations limiting engine size to 16.5-liters dictated the team subsititute the 16.2-liter Liebherr D9508 V-8. Kamaz has experimented with Cummins engines in its race trucks (Kamaz and Cummins have an engine-producing joint venture). However the Russian truckmaker hasn’t approached Cummins for support in the 2016 Dakar Rally after some negative experiences in previous races in which Cummins-equipped Kamaz race trucks experienced problems with dirty fuel that YaMZ engines were able to tolerate. In addition, the Kamaz drivers expressed a preference for V-8s over the in-line six cylinder Cummins powerplants. In January of this year, Kamaz and Liebherr signed an agreement for the creation of a range of 12-liter inline-six diesel engines rated from 450 to 700 horsepower for Kamaz commercial trucks. But for the Kamaz race trucks, 16.2-liter Liebherr V-8s were chosen. Prepped for racing with SCR removed, twin-turbochargers and custom software, power rose from 686 to 920 horsepower, while peak torque increased from 3,000 to 4,000 N.m. (Liebherr said the engine disintegrated at 965 horsepower). The Kamaz race drivers report the Liebherr powerplant offers slightly better performance than the YaMZ unit. With an average fuel consumption of 130 liters per 100 kilometers, the race-prepped Kamaz 4326s are fitted with 1,000 liter fuel tanks. Kamaz 4326 Race Truck: Specifications Gross weight 10,200 kg Curb weight 8,900 kg Engine Liebherr D9508 A7 Configuration V8 Displacement 16.16 liters Bore / stroke 128/157 mm Max. power 920 hp Max. torque 4,000 N.m Engine weight 1,600 kg Clutch ZF MFZ 430 Transmission ZF 16S251 Transfer case ZF VG2000 / 300 Driveshafts Tirsan Kardan Axles Sisu Suspension Spring Shock Absorbers Reiger Racing Brakes Drum Wheels Aluminum Tires Michelin XZL 14R20 (pressure adjustable) Maximum speed 163 km/h http://trucks.autoreview.ru/_archive/section/detail.php?ELEMENT_ID=141908&SECTION_ID=7948 .

Trailer/Body Builders / November 19, 2014 Following the agreement on the acquisition of the leaf spring and stabilizer segments of the Austria’s Frauenthal Group in June 2014, a deal expected to close at the end of 2014 or early 2015, Hendrickson has entered into an agreement to sell its 50% stake in Muelles y Ballestas Hispano-Alemanas, S.A. (MBHA) to the other 50% shareholder, InvestZiur, in November 2014. As a result, both Hendrickson and MBHA will be able to independently pursue their own business strategies. When these transactions are complete, MBHA will be wholly-owned by its founding shareholders, InvestZiur, and the Frauenthal Group’s leaf spring and stabilizer business will be wholly-owned by Hendrickson. Hendrickson, a Boler company, is a leading global manufacturer and supplier of medium- and heavy-duty mechanical, elastomeric and air suspensions; integrated and non-integrated axle systems; auxiliary lift axle systems; parabolic and multi-leaf springs; and bumper and trim components to the global commercial transportation industry. Hendrickson, is based in Itasca, Illinois. www.hendrickson-intl.com. FYI: The MBHA-Hendrickson joint venture in Valencia, Spain has for years quietly designed and produced most of the suspensions for the European truckmakers. A rarity, an American truck component supplier doing robust business in Europe, Hendrickson designs and manufactures unique proprietary designs for each European truckmaker. Hendrickson’s advanced metallurgy research allows the company, for example, to supply strong but lightweight mono-leaf steer axle springs to Mercedes-Benz and others.

Following a long period of silence about a promised diesel option for the new 2014 Chevrolet Colorado and GMC Canyon, GM is displaying a concept truck fitted with the 2.8-liter Duramax diesel (XLD28) at the Los Angeles Auto Show (November 18-20). Available since 2011 in the global market, the powerplant is rated at 181 horsepower and 369 pound-feet of torque at 2,000 rpm. The in-line four cylinder engine is mated to a six-speed automatic transmission. No manual tranmssion is offered*. * Overseas, a manual transmission is available with the 2.8-liter Duramax, but torque is cut back from 369 to 324 lb/ft. The 2.8-liter Duramax double overhead camshaft (DOHC) engine was developed at Italian diesel engine maker VM Motori*, where it is known as the model A428. Produced in Rayong, Thailand, it features an 1800 bar common rail injection system with piezo-electric injectors and a variable-geometry turbocharger (VGT). * In 2003, Penske purchased a 51% stake in VM Motori. In 2007, Penske bought the remaining 49% from DaimlerChrysler and subsequently sold 50% of it to GM. In 2013, GM sold its 50% stake to Fiat. The new-for-the-US Colorado/Canyon in 2014 went into production first overseas in 2011, where it available with both 2.5- (XLD25) and 2.8-liter displacement Duramax engines. In 2013, the second generation Duramax engines went on sale overseas, delivering 11% more power and 6% more torque, while consuming 4.3% less fuel. A new high pressure fuel pump for the common rail injection operates up to 2,000 bar, up from 1,800 bar. The global market 2.5-liter Duramax went from 150 to 163 horsepower while the 2.8-liter went from 181 to 200 horsepower. FYI: GM has had an on-again, off-again plan (due to financial woes) to offer a 4.5-liter Duramax 72-degree V-8 (code-named LMK) in its full-size half ton trucks. A project cancelled in 2009, GM Vice President of Global Powertrain Steve Kiefer said this year the words “dust off” the 4.5L diesel engine have been mentioned quite a bit. Featuring a 2000 bar common rail injection system with piezo-electric injectors and a variable-geometry turbocharger (VGT), the 32-valve double overhead camshaft engine (DOHC) was expected to produce 310 horsepower and 520 pound-feet of torque. In comparison, Fiat-Chrysler’s VM Motori-produced 24-valve double overhead camshaft engine (DOHC) 60-degree V-6 EcoDiesel produces 240 horsepower and 420 pounds-feet of torque (The 60-degree angle serves to reduce the vibration associated with V-6 configurations). The 4.5 does not have intake manifolds. It uses a unique head design in which the intake portion is located on top of the cylinder head while the exhaust manifolds exit into the engine valley. The engineering goal is to increase the thermal efficiency of the turbocharger (located in the engine valley). The engine utilizes a Compacted Graphite Iron (CGI) engine block paired with aluminum cylinder heads. The 4.5 was allegedly developed by GM in-house, without cooperation from Isuzu or VM Motori (given GM's history with self-designed diesels, not necessarily a good thing).. Little known facts: Holding a 50% stake in VM Motori at the time, GM and the Italian diesel engine maker were designing a 3.0-liter diesel for Cadillac’s European market ATS, CTS and SRX. GM fell into financial woes and cancelled the project in 2009. After Fiat bought GM’s stake in 2013, they completed the 3.0-liter diesel project and it became the EcoDiesel available today in Dodge (Ram) half ton pickups and Jeep Grand Cherokees. Owners of those vehicles may be intrigued to know that the development of their engine was funded by General Motors (a.k.a. Government Motors). .

Today's Trucking / November 19, 2014 Manitoba Infrastructure and Transportation has signed a Western Memorandum of Understanding (MOU) on Rocky Mountain Doubles (RMDs) and is ready to proceed with implementation. "We have been in communication with Manitoba Infrastructure and Transportation Motor Carrier Permits staff and they have confirmed they are ready today to issue permits for RMDs based on the specifications of the new MOU," says Terry Shaw, executive director of the Manitoba Trucking Association. And that means that RMDs can now travel on established routes at a maximum length of 134 feet on multi-lane highways, and 106 feet on two-lane highways. In Manitoba, that now includes the full-length of Highway 16 through to the Saskatchewan border. Opening up Highway 16 to the Saskatchewan border will allow carriers to haul RMD combinations from Winnipeg directly through to Northern Saskatchewan and Alberta. Or in other words, truckers and their customers will get more operational and cost efficiencies and could even reduce greenhouse gas emissions.

Overdrive / November 17, 2014 A Final Rule mandating the use of electronic logging devices by drivers and fleets is expected to be published Sept. 30, 2015, according to a recent Department of Transportation report, meaning enforcement of the mandate would begin Sept. 30, 2017. That publication date is a projection, included in the DOT’s monthly regulatory update. The report also says a projected rule to mandate the use of speed limiters will be sent from the DOT to the White Houses’ Office of Management and Budget next month, in line for a March 16 publication date. That projected rule’s action dates, however, have been pushed back several times this year already. Here are the projected dates for other upcoming regulations included in the report: Liability insurance increase: Still projected for publication this month is an Advanced Notice of Proposed Rulemaking regarding the minimum amount of liability insurance that motor carriers must have. The ANPRM will likely be simply a questionnaire for carriers that will be used as a data gathering tool for the agency and not a rule intended to raise the current minimum. The agency still would have to produce a Notice of Proposed Rulemaking and accept public comment before crafting a Final Rule. Safety Fitness Determination: The DOT also projects in its report that FMCSA’s long-awaited Safety Fitness Determination rule will be published in April as a NPRM. The rule, once final, will allow the agency to use the data at its disposal to create absolute scores for carriers, which would be used to target them for intervention. The DOT projects a publication date of March 24. The rule will be sent to the OMB Dec. 23, according to the projection, and clear the OMB March 24. CDL Drug and Alcohol Clearinghouse: The Clearinghouse would establish a database of drives who have failed or refused to take a drug or alcohol test. The rule is scheduled to be published as a Final Rule in October 2015. It was published as a proposed rule this year. Driver coercion prohibition rule: This rule would prohibit carriers, brokers and others from coercing drivers to violate federal rules, like hours of service. It is scheduled to be published as a final rule Sept. 10, 2015. It was published as a proposed rule this year.

Tested in Arizona, USA............but you can't buy one. Ford has all the business they need? Based on appearance, functionality and specs, the 2015 Ford Everest is a truck that I would buy (with one of the two offered diesels). I wouldn't even consider the current Explorer. And yes, Toyota is thrilled that the Ranger is gone.

Fleet Owner / November 14, 2014 The new Detroit Assurance integrated safety system will be made available by Daimler Trucks North America (DTNA) on select Freightliner tractor models in the first quarter of 2015. Introduced at the American Trucking Associations (ATA) annual convention in October, Detroit Assurance integrates radar and sensor technology with Detroit engines and transmissions as well as a truck’s brake system to offer active brake assist (ABA) and active cruise control (ACC) capability. While Brad Williamson, DTNA’s manager of powertrain marketing said that the company still plans to still offer similar safety technology such as Meritor’s OnGuard package as options on DTNA-brand heavy trucks, he believes the ability to better integrate Detroit Assurance with DTNA components is the major advantage of the new proprietary system. “It’s really about the feel, the smoothness, and how we can better integrate the intelligent controls with the truck,” Williamson explained here during a press conference with reporters. “That’s the main piece.” Detroit Assurance will also be available with an optional camera system that offers lane departure warning (LDW) capability as well, he pointed out. Williamson stressed that Detroit Assurance will initially only be available on 2016 Freightliner Cascadia and Cascadia Evolution tractor models equipped with Detroit engines and the company’s DT-12 automated manual transmission (AMT) or manual transmissions. He added that Detroit Assurance will also be “price competitive” with comparable systems available on the market. Detroit Assurance is referred to as a “safety suite” by DTNA and use cab-mounted radar and optional cameras to warn the driver or, if necessary, slow the truck down automatically. Scott Keebler, DTNA’s GM of component sales, noted that ABA follows a three step process to help mitigate potential collisions. First, it mutes the radio if in operation while sounding an audible warning as well as flashing a visual warning to the driver. If no action is taken, partial braking is engaged with ‘tactile’ warnings given to the driver. Finally, if a collision is imminent, the system will fully engage the transmission, engine brake and service brakes. Keebler pointed out that ACC piece of the Detroit Assurance package activates when the vehicle exceeds 37 mph and can be set to offer from 2.3 to 3.5 seconds worth of following distance. A 15 minute disable switch gives drivers the ability to deactivate ACC when in construction zones and the like, with cruise control re-engaging following that 15 minute interval when the vehicle hits 47 mph. He added that the optional camera system provides audio and visual indicators to notify a driver if and when they unintentionally depart from their lane, with the system again muting the radio if playing and then generating audible warnings on the side of the vehicle where the lane departure occurs. Williamson noted that Detroit Assurance represents 18 to 20 months’ worth of development to this point, including two winter and two summer test cycles. He added that customer demonstration trucks models equipped with Detroit Assurance are expected to hit the road by the end of November this year. http://fleetowner.com/safety/digging-detroit-assurance#slide-0-field_images-142591

The new Colorado and Canyon are attractive trucks. But fuel economy is mediocre and the promised diesel engine option remains elusive. Most of all, its hard to buy a GM product. GM remains focused on cutting costs to survive, equating to the cheapest possible parts. And at the end of the day, Fords continue to display greater durability, and thus greater resale value.

Typically arrogant Volvo stance. Mack (Volvo Group) did not admit liability for the alleged violations, the EPA said. "It's important to emphasize that these administrative errors did not harm our people, our neighbors or the environment," Mack spokesman Christopher Heffner said. http://www.mcall.com/news/local/eastpenn/mc-mack-trucks-epa-settlment-20141113-story.html

The all-new in 2011 Ford global market ranger is superb. It's a cutting edge design from bumper to bumper. Ford's thought process that the Ranger would steal market share from the F-150 isn't just flawed, it is absurd. The Ranger and F-150 would have uniquely different US market customers. Better looking than today's Grand Cherokee (and without the ridiculous price tag), the Ford Everest would sell well in the US market.

Quite a long lost of environmental violations by Volvo. Clearly the Swedish truckmaker doesn't have the best interest of the Lehigh Valley's environment in mind. For Volvo to ignore so many U.S. EPA regulations (for the sake of profitability.........for as long as they can get away with it) isn't surprising though. 1. Operating a hazardous waste storage facility without a permit or interim status 2. Maintaining an open container of hazardous waste 3. Failure to comply with regulations on hazardous waste marking and record-keeping 4. Failure to comply with contingency planning safeguards 5. Failure to provide hazardous waste training to employees 6. Failure to maintain documents and records for hazardous waste training 7. Failure to comply with contingency plan requirements 8. Failure to maintain a tank certification.

Ford introduces all-new mid-size Everest SUV November 13, 2014 The new 2015 Ford Everest is based on a stretched version of the popular global market Ford Ranger pickup truck. The Everest is available with a range of engines including a gasoline 2.0-liter EcoBoost turbocharged four-cylinder, and two Duratorq turbodiesels – a 2.2-liter four-cylinder and a 3.2-liter inline five-cylinder – mated to a six-speed manual or automatic transmission. Both rear-wheel-drive and shift-on-the-fly four-wheel-drive variants are offered. The Ford Everest competes with Toyota Land Cruiser Prado (known as the Lexus GX in the US market) and the Jeep Grand Cherokee. With its body-on-frame construction, the new Everest offers rock-crawlers serious off-road capabilities. The Everest has nearly nine inches of ground clearance, over 30 inches of wading depth, a 29-degree approach and 25-degree departure angles. The seven seat cabin features flat-folding second and third rows, a Sync 2 infotainment system with an 8-inch touchscreen, active noise control, an optional moonroof and the full spectrum of electronic safety features including autonomous emergency braking, blind-spot monitoring, lane departure and lane-keeping systems. There is an internal argument at Ford over whether or not to sell the Everest in America. The Everest’s body-on-frame construction, like Toyota’s 4Runner, is clearly different from Ford’s similarly sized soft off-roaders, the Flex and Explorer, which share Ford's D4 unibody platform. Only the larger Expedition offers body-on-frame construction (the older-than-dirt Expedition's V-8 is replaced by a V-6 EcoBoost for 2015, and receives minor trim changes). .

Fleet Owner / November 13, 2014 Since its purchase of the Workhorse brand from Navistar in late 2012, Amp Holding, parent company of Amp Trucks, has been working towards electrifying the step van chassis. With the announcement on Wednesday that a “major transportation company” had ordered 18 of its all-electric Workhorse E-100 walk-in vans, that process is taking its next steps. But it’s not just in the electric truck market that Amp wants to play, the company is also looking to become a provider of delivery drones. And CEO Steve Burns told Fleet Owner in an exclusive interview that Amp expects to succeed in the marketplace where others have faltered, and even failed. “First off, nobody built their own chassis,” he said. “They all retrofitted a chassis. Azure Dynamics retrofitted the Ford chassis. Smith Electric imported a chassis from the Czech Republic. The second thing is the batteries. None of those guys controlled their batteries. They essentially outsource their batteries (and battery systems) and used automotive (systems). Tesla uses commodity batteries and built (a system) around it. We did the same thing. We’ve built a system around commodity batteries. The E-100 van features a 100 kWh Lithium battery pack featuring Panasonic 18650 cells, the same battery cells used by Tesla in its vehicles, that “provide power to a 2200 nm permanent magnet motor powerful enough to eliminate the need for a transmission,” Burns said. There are a few keys to the vehicle, Burns relates, that he believes will make it a fleet success. First, the use of the batteries, which Panasonic “literally makes a billion of a year,” keeps costs down on that front due to the scale of production. Second, the elimination of a transmission altogether saves weight, meaning that less battery power is needed to move the vehicle so Amp could “right-size the battery pack,” Burns noted. And finally, the debut of the vehicle follows Amp’s purchase of the Workhorse brand and manufacturing facilities from Navistar in 2013 when that company was going through its financial problems. With the Workhorse chassis and technologies in-house (Burns said Amp will begin offering traditionally fueled Workhorse chassis later in 2015), Amp was able to build a new “narrow track W88 chassis” for the electric vehicle. That was a game-changer, Burns said, because previously electric vehicle makers retrofitted chassis to their systems. The Workhorse chassis is purpose built for electric power. The choice to go with Panasonic battery cells is also helping Amp reach customers. “Once we tell people we are using Panasonic batteries just like Tesla, the battery discussions (and concerns) are over,” Burns said. Burns added that because “transmissions are energy-robbing and a maintenance headache,” the elimination of this traditional vehicle component, while also reducing weight, is another bonus. “To lose that … is a game-changer,” he said. The E-Gen system itself is unique in that it uses a generator to provide “emergency” backup power when needed. “Typically [step vans] go 50 or 60 mi. a day, but everybody puts in batteries that can go 100 mi.,” Burns said. “We also saw that these vehicles typically stop a lot during the day. The generator only runs when the vehicle is turned off.” The way the system works, Burns explained, is the vehicle operates on electric power during its operation. But, because the range of the batteries is lower to match a typical daily route, the potential to run out of electric power exists. To combat that, Amp developed the E-Gen. The E-Gen is similar to a small stationary generator and operates on gas, natural gas or propane. When the van is turned off, the system checks the battery levels and if needed, turns on the 25-hp. generator to recharge the batteries. “Only a small amount of fuel is needed,” Burns said. “But in a typical day, the E-Gen probably would not be needed.” The end result is, again, a smaller, lighter system that is also lower priced, resulting in a three-year payback on the vehicle. The E-100, though, is not Amp’s only foray into advanced electric technology. The company is also preparing the “Horsefly.” The Horsefly is a battery-powered unmanned aerial vehicle (UAV). It is similar to Amazon’s drone delivery concept in that it will deliver packages to front doors. Unlike Amazon’s idea, which dispatches drones from centralized warehouses, Amp’s Horsefly sits atop a delivery vehicle in a “portal.” “[Amazon’s] model, with a centralized warehouse and drones flying out of that, we don’t think that will work because of the [battery] weight needed [to fly distances],” Burns said. “This is really a mobile warehouse. “In the end, these things are electric, so the battery is key,” Burns added. “Most of what is out there is ‘hobby grade,’ what we’re building is commercial grade.” The eight-rotor drone is being developed in conjunction with the University of Cincinnati’s Dept. of Aerospace Engineering and Engineering Mechanics. Burns explained that the drone sits on top of a vehicle, charging when not in use. A driver can than walk back into the cargo area, pick up a package and pass it up through the portal to the drone, which clamps onto the box (up to 10 lbs.), reads the barcode to locate the delivery address, and then flies off. While the drone is making its delivery (being guided by a “pilot” back at a call center to ensure the package is landed safely in the appropriate spot), the driver can get back into the driver’s seat and go on to his next delivery, improving efficiency. When the drone has completed its task, it locates the current location of the vehicle and returns to the portal atop the roof, ready for its next delivery. “It’s not going to be for every delivery,” Burns said, “but there are ones where it will make sense.” The commercial use of drones is currently restricted by law, Burns said, but there is hope that the government will change the regulations by next summer to allow their use. If that happens, Burns said Amp’s Horsefly will be ready to deliver. .

Australasian Transport News (ATN) / November 14, 2014 The first fleet delivery of Euro 6 (EPA2010) emissions-level trucks has just taken place down under in Australia. TNT Australia just received five P450 prime movers that will work double shifts of metro pickup and delivery during the daylight hours and regional freight runs at night. These Scania units use a 13-litre 6-cylinder that relies on both exhaust gas recirculation (EGR) and selective catalytic reduction (SCR) to reduce emissions. This engine is touted to be a rather torquey little unit with peak torque at 2,350Nm (1,733lb/ft) from 1,000rpm to 1,300rpm. The engine is backed by Scania’s Opticruise 14-speed (12+2) automated manual transmission (AMT). Euro 6 regulations mean that nitrogen oxide needs to be reduced by one fifth from current Euro 5 (EPA2007) levels. Particulate also needs to be reduced to satisfy Euro 6 as well. In most cases this means that the engine requires a combination of the EGR and SCR. That said, Scania and Iveco both have Euro 6 compliant engines that use SCR only (no EGR). EGR gets a bad rap from a lot of operators that have been stung by their association with this technology. However, in a Euro 6 application the EGR system is working at a much reduced flow rate as the SCR system is chipping in to help as well. Weight and fuel consumption are a concern for some, yet Scania claims that this Euro 6 engine will equal if not better it’s Euro 5 equivalent. TNT Australia is no stranger to cleaner and greener technologies boasting one of the biggest hybrid fleets in the country. "We already run Australia’s largest hybrid truck fleet, and a recent four-year internal study found that our 30 hybrid trucks have emitted 112 fewer tonnes of CO2 into the atmosphere than comparable diesel-powered trucks over that period," TNT national fleet and equipment manager Kurt Grossrieder says. "Recently we commissioned another 24 hybrid trucks to further reduce our total output of greenhouse gases while using less fuel, which is a positive step for TNT and the environment." TNT has also been conducting its own CNG trial with its Canberra-based fleet. On the eve of these new trucks joining the TNT fleet in Melbourne we had the opportunity to take one for a spin at its typical working weight. There were a couple of firsts here for us, the first real world drive of a Euro 6 truck on the road and the first time I’d dragged a B-double with Scania’s P-series. Our bright-orange combination tipped the scales at 46 metric ton gross (101,413lb)), a typical TNT B-double working weight. There were a couple of unique TNT aspects to the truck aside from the colour. First, the company had specified the low-to-the-ground P cab and, second, the fitment of a very meaty staircase and handrail to the driver’s side of the prime mover chassis. It’s very clear from just looking at the truck everything has been about making the drivers life safer and easier in a multi trailer drop situation. The stairs also stop drivers from climbing onto a very hot after-treatment box to gain access to the chassis. Our test route took us on a return trip from Laverton to Ballarat, a distance of 221 km. My main interest was in the performance of the engine under load. The 6-cylinder had quite a bit of torque on tap considering its displacement and it held its own climbing the Pentland Hills out of Bacchus Marsh. I kept the tranny in its standard shift point setting and in rumbled up the grade in 9th gear 1,300rpm. The climb out of Pykes Creek also saw the tacho needle glue itself to 1300rpm in 8th gear. As with much of the Euro product on the market now it’s all about the torque and low revs. My fuel over the route was 1.83km/l, which isn’t too shabby for a light double on those grades with virtually no kilometres the engine. The low P cab is great for this kind of round town application. On the whole, the Euro 6 Scania P Series appears to have just what it takes for TNT. .

Newsroom - U.S. Environmental Protection Agency (EPA) / November 13, 2014 In a settlement with the U.S. Environmental Protection Agency, Mack Trucks Inc. has agreed to properly manage the hazardous waste at its truck assembly plant in Macungie, Pa. Mack Truck, located at 7000 Alburtis Road, Macungie, Pa., has also agreed to pay a $54,800 penalty to settle the alleged violations of hazardous waste regulations. EPA cited Mack Trucks for violating the Resource Conservation and Recovery Act (RCRA), the federal law governing the treatment, storage, and disposal of hazardous waste. RCRA is designed to protect public health and the environment, and avoid costly cleanups, by requiring the safe, environmentally sound storage and disposal of hazardous waste. After a facility inspection, EPA cited the company for several RCRA violations involving hazardous waste stored at the facility, including solvents and paint wastes. The alleged violations included: operating a hazardous waste storage facility without a permit or interim status; maintaining an open container of hazardous waste; failure to comply with regulations on hazardous waste marking and record-keeping; failure to comply with contingency planning safeguards; failure to provide hazardous waste training to employees; failure to maintain documents and records for hazardous waste training; failure to comply with contingency plan requirements; and failure to maintain a tank certification. The settlement penalty reflects the companys compliance efforts, and its cooperation with EPA in the resolution of this matter. As part of the settlement, Mack Trucks has not admitted liability for the alleged violations, but has certified its compliance with applicable RCRA requirements. For more information about hazardous waste and RCRA, visit http://www.epa.gov/epawaste/hazard/index.htm.