Wednesday, January 21, 2009

New Administration, Same EOBR Rule?

This is the first full day of work for President Obama. Of interest to truckers is the new administration's stance on electronic DOT logs, EOBR's, and the role of technology in highway safety and reducing gridlock.

We know that President Obama has selected Peter Orszag as the Director of the Office of Management and Budget. Mr. Orszag is young (younger than me), well-educated, and is best known as the former director of the Congressional Budget Office who is also a literate and prolific blogger. He enjoys wide bipartisan support, and his nomination will clear Congress easily.

The White House Office of Management and Budget (OMB) is the liaison between the President's administration and the federal bureaucracy. It is the final stop for a proposed regulation. it is really the final and only real system of checks and balances for regulations that federal agencies create.

We know that the 395.16 NPRM is left at the OMB by the outgoing Bush administration. The new OMB may pass it along as written, change it, delay it, or even send it back to the FMCSA.

We also know that President Obama has promised to apply technology and infrastructure improvements to reduce our dependence on oil - and EOBR's are certainly a part of that. Obama enjoyed the support of the International Brotherhood of Teamsters during the election, and the Teamsters are opposed to any EOBR regulation.

I have never been a fan of regulatory encroachment into the way we run our businesses. However, here are a few things to consider. EOBR's improve safety and have a definable and measurable payback. EOBR's could play a very significant role in a technology network reducing traffic congestion - also reducing fuel consumption and pollution. EOBR's can assist a carrier in negotiating with overbearing shippers who demand schedules that are too tight.

Saturday, January 10, 2009

Onboard Recorder Rule is going to Wait

It looks like the Federal Motor Carrier Safety Administration will not publish their final rule expanding the use of EOBR's before President Bush leaves office.

"I don't know if we are going to get it out or not; it doesn't look like we are making progress at this point," Federal Motor Carrier Safety administrator John Hill said Thursday.

That certainly does not mean it is dead. In 2008 a group of Senators introduced legislation that would mandate the use of EOBR's. The NTSB has stepped up their campaign to mandate the use of EOBR's. Finally, the incoming administration of President-Elect Obama can certainly publish the new EOBR rule as well.

Tuesday, January 6, 2009

What is my return on investment?

Let's discuss why onboard technology can and does pay for itself - provided it's the right technology and it's managed. My first experience with obtaining an return on investment with onboard technology happened back in 1990 at a company in Dallas then known as Chemical Express Carriers. Using our early (and by today's standards antiquated) onboard computer system - we achieved a 12 month return on investment with our 550 trucks at 29 terminals.

The main payback is fuel economy. Even with electronically controlled engines, the driver is the difference.

"The driver is arguably the principal variable in fuel mileage. There is as much as a 35 percent different between the most proficient and least capable drivers" - The Fleet Manager's Guide to Fuel Economy, The Technology and Maintenance Council of the American Trucking Association.

How do you affect fuel economy? The average truck wastes 2196 gallons per year idling according to the Agronne National Lab. You can be assured that an idling truck engine burns a minimum 1 gallon per hour idle, without A/C or other engine load.

For every 1 MPH increase over 55 MPH, fuel consumption increases 2.2%. This means that 7.5 MPH at 55 MPH drops to 6.6 MPG at 65 MPH.

Rapid accelerations and decelerations. It's simple physics. You burn fuel getting that mass rolling - and then you scrub off that energy every time you hit the brakes.

Let's talk emissions. 10 MPH speed reduction reduces diesel engine NOX emissions by 18%. Idling by commercial trucks releases an estimated 10,000,000 tons of CO2, 50,000 tons of NOX, and 2,000 tons of particulates.

Fuel economy has a direct relation to vehicle wear. Increase in speed from 55 MPH to 65 MPH increases tire wear 5% to 16%, depending on weight. Increase in speed from 55 MPH to 65 MPH decreases miles to engine overhaul by 10% to 15%. Increase in speed from 55 MPH to 65 MPH increases oil consumption 15%. Idling for 6 hours = 42 miles of engine wear.

Will proper planning and execution of your dispatch and routing help your fleet utilization? An average of 42% of a fleet's operating costs is in vehicle depreciation. Intelligent routing and dispatching maximizes vehicle utilization and minimizes distance traveled.

You can find a simple, online fuel savings calculator at http://www.loadtrek.net/loadtrek_net/FuelEconomy.aspx.


This is an interesting subject. Let me know what you think.