Will Wage and Hour Rumbles... Affect You?

DrtyDiesel · Nov 8, 2014

I started ok elogs and learned to make then work for me.

One reason I don't want to be paid by the hour is because I'd feel like my I come would be limited to 70 hour or less a week.

G/MAN · Nov 8, 2014

When I hear drivers talk about how poorly they are paid and how much they could make doing something else, I have to shake my head. REALLY? I figure if those who think they could earn more doing something else, they would not be driving a truck. If you try to force your employer to pay more than they can afford, you will put them out of business. Then there will be no job at all. When I started driving otr drivers were paid about $0.10/mile. Wages have gone up. I don't consider a job where you start at $30-35,000 your first year with no experience as being under paid. Nor do I consider being paid $40-65,000/yr beginning the second year as being under paid. All drivers are not paid the same for good reason. Some work harder or smarter than others. Rather than complaining so much, perhaps you should go to work for that magical company that will pay you for every minute of your day and see how much you take home at the end of the week. In this business you pretty much control your own destiny. You are free to leave a company at any time. If you do find that magical carrier, please let us know. They won't be in business very long. I would never expect to be paid for sitting, taking a nap or anything else that I would normally do on my own time.

Victor_V · Nov 8, 2014

Howl all you want...

DrtyDiesel · Nov 8, 2014

Victor_V said: ↑

Howl all you want...
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I don't think anyone's howling.....

Ridgeline · Nov 8, 2014

DrtyDiesel said: ↑

I started ok elogs and learned to make then work for me.

One reason I don't want to be paid by the hour is because I'd feel like my I come would be limited to 70 hour or less a week.
Click to expand...

Everyone I know personally off this site that use elogs or eobrs as I call them, have complained and complained about being forced to use them but ... after a while each of them found out that it makes them more money in the long run, shifting from 15 minute cycle to a minute cycle saves them time.

Victor_V · Nov 8, 2014

Where were we... ah, the history of trucking according to the IRS

In a word, turbulence. The long era of I.C.C. from 1935 effectively ended in 1980. Authorities were no longer regulated, freight rates no longer published and became a battle to the death. Driver compensation fell 44% over the next decade as trucking outfits shut down.

CF (Continental Freightways) spun Con-way off in 1983 and reported its last profitable quarter in Q3 (Third Quarter), 2000. CF, third largest freight hauler in the US, shut down on Labor Day, 2002.

Yeah, that's the same Con-way with $457-million in cash last quarter and has an approved preliminary settlement agreement to be finalized Jan 9, 2015.

Entered an era after 1980 of survival of the fittest.

2003
Early in 2003, the U.S. economy was still stagnating after a false alarm recovery that proved to be an illusion. The war in Iraq and continued worries about corporate scandals and accounting, are keeping the economy in a funk.

Fuel prices were beginning to rise in early spring, even as insurance costs were escalating, taking another chunk out of truckings bottom line.

The trucking industry paid an estimated $465 million more for its motor fuel than in the corresponding week of 2002. According to the Department of Energy, the average price of a gallon of diesel in the nation rose to a new record of $1.51, while the gasoline average high was $1.55, but below the record of $1.713 set in May of 2001.

Of the 11,500 carriers who went out of business between 2001 and 2003, 5,000 trucking firms went out of business in 2003 alone.

As the difficult economic times pushed a number of fleets out of business, trucking capacity declined. Then, as the economy began to stir, fleets were able to raise rates as shippers scrambled to find carriers to move their goods.

Mergers and acquisitions were the primary moving force behind changes in the trucking industry during 2003. Analysts predict more mergers ahead, especially among small- and medium-size fleets as they strive to compete with the ever-larger big fleets. Growing demand from shippers for a wide array of related transportation services is also likely to fuel mergers and acquisitions in coming years.

The new top 100 rankings showed more positive financial results during 2003, as the national economic recovery was beginning. Overall, revenue for the top 100 carriers rose 7% during 2003, compared with 2002. While 2003 was a better year for most carriers, two sectors lagged well behind the overall industry: tank-truck carriers and vehicle haulers.

Many fleets sliced their operating ratios during the year. Operating ratios (OR), which show a companys expenses as a percentage of its revenue, are a prime indicator of profitability, with an OR of 100 representing a break-even operation. An OR of 85 was the best in the industry

Final engine Pre-Buy surge! Mercedes didnt have to comply with EPA engine requirements until Jan.1. 2004. Therefore, truck buyers late in 2003 bought up every available production slot of the Mercedes-Benz 4000 heavy-duty diesel engine, in what amounted to a pre-buy of the last major Class 8 engine that did not have to comply with the Oct. 1, 2002, tougher federal emissions rules. From what had been a little-used engine in the North American market before the 2002 rules kicked in, sales of the MBE 4000 soared to 18,000 units during 2003 up from 1,644 in 2002.

By the last quarter of 2003, the economy was unmistakably on a drive, as jobless rates finally began to fall and manufacturing and retailing reported notable gains.
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Victor_V · Nov 8, 2014

More what the IRS (US Internal Revenue Service) says about the history of trucking. http://www.irs.gov/Businesses/Trucki...ry-of-Trucking

2004
New driver hours of service rules, which took effect January 4, 2004, effectively reduce on-duty time for drivers and increase the time a driver must take off between shifts, causing a drop in productivity for some truck drivers.

Resurgent U.S. and global economies, favorable depreciation rules and a need to replace aging equipment are driving a boom in trailer sales.

Trucking companies are convinced that the post-October 2002 diesel engines have been reasonably durable. Companies return to their traditional 3 to 4 year trade cycles for rolling stock. Companies begin to worry over the next round of EPA mandated engines for the years 2007 & 2010.

Executives from four of the largest U.S. heavy-duty trucking fleets urged the federal government to provide financial incentives to help offset anticipated higher purchase and maintenance costs for the next generation of lower-emissions diesel engines.

In April 2004 the price of crude oil in New York rose as fighting in Iraq continued. Crude oil prices are up 22% from a year earlier.

June 2004: At midyear, a tentative business recovery that gathered steam in 2003, now appears to be pushing the limits of freight-hauling capacity and has boosted revenue and profits for most, but not all, of the carriers.

In August 2004, truckload firms for months have been overbooked by 10% to 15% on any given day. But now that the freight industry has moved into its heaviest period of mid-August to mid-November as it stocks up for Christmas and end-of-year sales, demand could outstrip available truckload capacity by as much as 25%.

Diesel fuel declined 0.2 cent per gallon to $1.869. The average gasoline price reached a record $2.064 on May 24 and is up 37.2 cents so far this year.

Many carriers were forced to increase driver pay during 2004, in order to recruit and retain as many drivers as possible. The demand for drivers is very high, while the supply is limited. Related to the driver shortage is driver turnover. American Trucking Assn reported that in the third quarter of 2004, large Truck Load (TL) linehaul driver turnover hit a new all-time high of 121 annualized percent.

Sales of heavy-duty trucks/tractors surged 59.8% in August 2004 to their highest level in more than four years, driven largely by replacement orders from fleets that held onto aging trucks during the 2001 recession and after. Truck manufacturers are operating at capacity.

The Government's role in the transportation industry consists primarily of (1) providing funding for certain transportation facilities and (2) regulating certain aspects of transportation, such as safety.

On September 20th, diesel price rises to $1.912, an all time high.

On September 28th, the national average diesel price rose to $2.012 per gallon, setting a record high.

On October 13, 2004, the national average retail price for diesel fuel rose 3.9 cents per gallon to $2.092, the fourth straight weekly record, according to the Department of Energy.

Diesel fuel national average price is $1.81 per gallon for the year 2004.
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Victor_V · Nov 8, 2014

Yet more what the IRS (US Internal Revenue Service) says about the history of trucking. http://www.irs.gov/Businesses/Trucki...ry-of-Trucking

2006
Diesel fuel national average price is $2.745 per gallon through September 2006.

The Transportation Security Administration issued a Notice of Proposed Rulemaking (NPRM) spelling out its plan to require all commercial truck drivers delivering or retrieving goods at ports to have special ID cards. The NPRM appeared in the Federal Register on May 22, 2006. The Transportation Worker identification Card (TWIC) would incorporate biometric data, criminal background checks, and threat assessment procedures.

Fees for the cards will range from $117 - $149, with lower fees set for drivers with hazmat endorsements or Free and Secure Trade (FAST) cards.

Truck/tractor sales: There has been heavy pre-buying of trucks & tractors in anticipation of the new 2007 engine and fuel standards. The 2007 truck/tractors are expected to cost more and get less miles per gallon.

Through most of 2006 the industry worried that heavy-truck sales would drive right off a cliff at the beginning of 2007. The thought was that anyone who wants a new truck in the next two years will have ordered it in time to take delivery by December 31, 2006.

That way, they don't have to endure the higher cost of buying, maintaining, and fueling a 2007 model with its new engine, after-treatment, and need for untested ultra-low-sulfur diesel (ULSD) fuel. But truck orders are holding up well.

Most manufacturers appear to have sold out their '06 production capacity by July 2006, yet they're still booking orders for trucks that won't be built until well into '07. The credit goes to a very strong economy.
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DrtyDiesel · Nov 8, 2014

Ridgeline said: ↑

Everyone I know personally off this site that use elogs or eobrs as I call them, have complained and complained about being forced to use them but ... after a while each of them found out that it makes them more money in the long run, shifting from 15 minute cycle to a minute cycle saves them time.
Click to expand...

Exactly. I heard nothing but bad things then when I started using them and understood all the aspects of it, they work in my favor.

having 6-8 stops a night helps with elogs because I'm not spending 5 minutes to do my paperwork for each stop.

Victor_V · Nov 8, 2014

And finally:

2007
National average diesel fuel price in the U.S. on 10-1-2007 is $3.048 per gallon.

Beginning in January 2007, the trucking industry will be required to submit electronic cargo manifests to Customs and Border Protection for trucks entering the United States through all ports of entry in the states of Washington and Arizona, and select ports in North Dakota. The information will be submitted through the automated commercial environment, or ACE, which CBP touts as its next-generation technology to track and process truck cargo.

ACE currently is deployed to 49 ports and ultimately will be at all 99 land-border ports. CBP intends to make it mandatory for the trucking industry to use ACE starting in 2007. The system will be expanded in coming years to process air, rail and sea cargo.
ACE is scheduled to be fully deployed by 2011.

2008
National average diesel fuel price in the U.S. on 12-4-2008 is $2.515. 2008 average prices peaked at over $4.70 in July.

Soaring diesel fuel prices amid a continued weakness in freight volume made 2008 one of the worst years ever for the U.S. trucking industry, with little relief seen in 2009.

Railroad carload volumes were at record levels in 2006, near record in 2007, declined 16% 2008, and declined 20% in the first 6 months of 2009.

Over 3,000 trucking companies, mainly small companies and owner-operators, went out of business.

Problems in financial markets impact borrowings for new equipments and infrastructure improvements
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