Viewing posts categorised under: Fleet Insurance

Top Trends Affecting the Trucking Industry

Posted on September 17, 2019

Fleet Management - Truck Insurance

 

 

 

 

 

 

A rise in technology and shifting customer expectations have dramatically changed the landscape of the trucking industry. As a result, many of the trends driving business decisions in the trucking industry are leaving fleet managers and carriers frustrated and with fewer options. However, it isn’t all bad news as fleets learn to navigate the changes affecting their businesses. The following are leading trends influencing the trucking industry:

  1. The driver shortage. This has been a challenge for years and trucking companies have taken numerous steps to try to address it. Some opted to entice new talent pools such as veterans or women. Others are trying to change regulations to allow drivers under 21 to operate on interstate highways. Now, nearly two-thirds of the industry are increasing benefits, pay, and more, to try to entice qualified drivers.
  2. Competition undercutting prices. When polled, 66% of trucking companies reported losing contracts to unprofitably low competitor offers. Fleets need to continue to find unique ways to improve efficiency and economies of scale to lower costs.
  3. Confidence in expansion. Not every trend is negative for fleets. Over a third expect to expand by 11-25% despite a predicted economic slowdown for the industry.
  4. Reducing costs with technology. Technology has been able to save fleets money in a variety of ways. With ELDs and telematics, fleets are able to identify gas-guzzling behaviors, pinpoint unsafe drivers, and provide better maintenance. Not only does technology help fleets stay on top of preventative maintenance, but it can also provide predictive maintenance suggestions as well. For example, artificial intelligence can run detailed analytics to compare the service history of fleets and isolate moments when brakes, tires, or other components will likely need servicing or replacement to avoid blowouts and accidents.

Keeping up with the latest trends affecting the industry can be a challenge. While not all trends withstand the test of time, some have been a thorn in the industry’s side for years such as the driver shortage. Interstate Motor Carriers knows that fleets have enough things to keep track of without adding new and challenging developments to their plate. Contact us to learn how we can help your trucking business.

Leveraging Safety-Based Innovations to Reduce Trucking Accidents

Posted on August 07, 2019

Truck Accident  - Trucker Safety - Truck Insurance

 

 

 

 

 

 

 

Safety is always a hot topic in the trucking industry. With 4,761 fatalities caused by large truck collisions in 2017, there is obvious room for improvement. While previous years showed steady decreases in fatalities, 2017 saw a 9% increase compared to 2016.

The overwhelming majority of those deaths were among public drivers involved in accidents with large trucks—72%. Commercial truck drivers accounted for 18% of the fatalities and the remaining 10% were individuals outside of a vehicle (i.e. pedestrians and bicyclists). The cost in human lives and actual dollars is astronomical. Experts within the industry believe the answer to safe trucking lies in new technology, while not overwhelming drivers with high tech gadgets.

Truck drivers already have technology available to them to improve safety. For example, lane departure warnings and lane assisting technology are remarkable in their ability to prevent collisions. Technologies such as those below, which are current or imminent, can be leveraged to improve trucking safety:

  • Adaptive cruise control
  • Automatic emergency braking
  • Blind spot detection
  • Automated parking with anti-rollaway technology
  • Facial recognition solutions (to monitor driver alertness)

However, industry insiders are quick to point out that inundating drivers with multiple new technologies at once can be overwhelming. It’s best to incorporate new technology incrementally, especially technology which drivers can readily understand. For example, drivers that are comfortable with lane departure warning technology would likely adapt well to lane assist technology. These new safety innovations are very close to becoming a reality as trucking companies continue to put safety at the forefront of their agenda.

Interstate Motor Carriers strives to help trucking companies in their safety efforts. Contact us today to learn how we can help your fleet mitigate risks and losses.

 

6 Tips for More Effective Trucker Compensation Planning

Posted on July 16, 2019

Trucker Recruitment - Truck Insurance

 

 

 

 

 

 

Compensation planning is an instrumental tool for truck driver recruitment and retention. There are many nuances to ensuring that fair, competitive and attractive compensation plans are in place. Salary adjustments, bonuses, allowances, insurance benefits, and more go into truck driver’s earnings, and fleets need to make sure their plans are financially sound and up to date. Follow these tips to develop a more effective trucker compensation plan:

  1. Define clear compensation goals. The trucking industry at large is operating on tight profit margins, and compensation has a significant effect on a company’s bottom line. Whether a fleet plans to keep pace with other trucking companies or lead the pack in rates per mile, they will need to incorporate it into their compensation planning and overall budget.
  2. Plan for allowances and benefits. An employee’s compensation isn’t limited to his or her base pay. Today, benefits and allowances are an important component of that final number. Fleets need to take into consideration the costs of medical care and any allowances such as food compensation that they may provide when creating their compensation plan.
  3. Keep an eye on the market. The economy changes and influences the industry in several ways. Fleets need to keep up with a dynamic and changing market to retain and recruit. In the current climate, annual reviews of this data may be insufficient to respond to changing market forces.
  4. Establish performance-based salary adjustments. Increasing base pay on the merit of seniority is an antiquated approach and rewards longevity over efficacy. Better drivers that consistently complete their deliveries on time and undamaged while operating their truck safely should receive bigger pay increases than lower or unsafe performers. Compensation plans should include tiers and a ranking system to easily see where employees land.
  5. Have clear compensation guidelines. If pay increases are subjective, it will cause issues among employees. Biases and personal relationships shouldn’t have any role in determining changes to pay. Developing a clear outline for when and how pay increases and bonuses occur will help address this potential issue.
  6. Give accolades to top performers throughout the year. Employee appreciation goes a long way toward retention. While every employee would love to receive a bonus, this isn’t always possible. If a fleet can only afford annual bonuses, they should look for other means to recognize top performers on at least a quarterly basis.

Employee compensation is a multifaceted issue which is crucial for truck driver recruitment and retention. Trucking fleets, both large and small, need to ensure they invest enough time and energy to get the return needed from their compensation plans. Contact the experts at Interstate Motor Carriers to learn how we can help your company make sound decisions while balancing your risk and reducing losses.

What Fleets Need to Know About Food Hauling Rules

Posted on July 03, 2019

Trucking Regulatory Compliance - Fleet Management

 

 

 

 

 

 

Since September of 2018, the Food and Drug Administration (FDA) requires any trucking company hauling food for consumption (human and animal alike) to comply with the Sanitary Transportation of Human and Animal Food Rule (STF). STF’s aim is to provide accountability for all steps of transporting food from farms to forks.

The rule calls for truckers hauling food to comply with the shipper requirements, which means following best practices for temperature-controlled cargo. FDA also indicated the ruling has some flexibility, allowing truckers to continue following best practices for cleaning, inspection, maintenance, and so on to prevent food from spoiling when transporting it.

Who Bears Responsibility?

There is some confusion over who is responsible for ensuring the sanitary and safe transport of food. The rule identifies shippers at the responsible party. While FDA defines this as whoever initiates the shipment, the International Refrigerated Transportation Association (IRTA) stresses that carriers and loaders need to abide by the STF regulations as well.

Carriers need to make sure they understand every step of shipper requirements and adhere to any supplied food safety plans to ensure a safe, unspoiled delivery. IRTA also recommends maintaining documentation should any lawsuits occur to protect carriers.

For example, maintaining clean trailers is critical to prevent cross-contamination. Even if a fleet employs standard cleaning protocols between deliveries, they should make a record of every cleaning in the event of a lawsuit. If food turns up contaminated, providing proof of a thorough cleaning prior to shipment can go a long way to absolving a fleet.

How the Ruling Affects Carriers Going Forward

The FDA didn’t set out to alter cargo insurance claims, however this ruling indicates a shift in risk approach. As a result, good record keeping alone may not always be enough to protect fleets from legal action related to spoiled food. The experts at Interstate Motor Carriers are intimately familiar with the risks trucking companies face when hauling food cargo. Contact us to learn more about reducing your trucking company’s risks.