don't break glass or even break a sweat it won't help. Do train your drivers to collect facts and take photos at the scene and resist the temptation to engage in incriminating babble with the highway patrol.
It's the phone call you've been dreading. On the other end is a truck driver from your fleet calling in to report that he's been in an accident. The image that pops into your mind as you listen to him try to sort out the facts is one of sharks circling. And with good cause: If it's anything other than a fender-bender, chances are that investigators will be called in. And if you've bungled your accident response, you're toast.
You can't blame the investigators, of course: they're only following the money. "Liability levels on commercial trucks are significantly higher than they are on cars," says Truman Wayne Nicolaus, owner of Nicolaus Investigations of Wilton, Calif., who was a driver for 28 years before becoming an investigator. "A lot of attorneys are now specializing in trucking-only cases because there is a lot of money to be made. Many of these attorneys are really sharp. They know the motor carrier safety regulations, and they will tear you apart."
Your best defense, of course, is to stay up to date on those regs yourself and keep your operations in full compliance. But just as important, you should make sure your drivers know exactly what to do in the event of an accident. Specifically, they need to know what facts to gather at the scene. This evidence—and your analysis of the material—could help protect your company and the driver from legal liability. It could even help prevent future accidents.
What to do at the scene
In the aftermath of an accident, even the coolest of drivers tends to get pretty rattled. For most, having written step-by-step procedures to follow at the scene is helpful. "You should provide written instructions in a packet in the cab with details of what drivers should and should not do, and should and should not say," says Nicolaus. It's for their own good, as well as yours: Drivers can and probably will be named in any suit that arises, he explains. "The 'pockets' are the company's, but the driver will still have to defend his position."
What should be in that instruction packet? Nicolaus offers the following guidelines:
Contain the damage. The first thing the driver should do is pull over to the side and stop.He should check the victim(s), if any. "Don't move anyone," Nicolaus advises, "but give first aid if you can, such as stopping any bleeding." Then take any necessary steps to mitigate the situation. For example, make sure there is no debris on the highway that could cause another accident. "If a fender or mudflap is in the road, the driver should remove it," he says. The driver should also put up cones or triangles to warn oncoming motorists of the accident site.
Get pictures. Each truck should be outfitted with a disposable camera—-or even a video camera—in the cab. The driver should take snapshots of the scene from different angles and different distances. "A picture is worth a thousand words,"explains Bill Praetz , president of TLC Transportation Management Safety Consultants of Fresno, Calif., who spent 27 years with the California Highway Patrol.
But random snapping won't do. "The driver needs to take good pictures. A lot of times, when we come into a case later on, we find that the pictures are almost wort hless,"says Praetz. "The driver must be systematic in taking the photos."He should go back aways from the scene and start walking toward the scene, taking pictures at various points along the way, then repeat this process from various angles and directions. "When the driver is up close," he adds, "he should get photos of the license plates so that the vehicles can be identified."
Color photos are always better. "Black and white photos don't do justice to the condition of vehicles and the damage they have sustained," explains Praetz. And the camera should have a flash in case you need to take photos at night, adds Bob Eichler, president of Technical Services of Vancouver, Wash., which investigates trucking accidents. "The driver should take photos of tire marks, debris fall locations, etc. Tire marks are particularly important."
Do your own fact-finding. Drivers should collect as much information as they can before law enforcement arrives and even while law enforcement is present. "The police may or may not gather a lot of information, because their first responsibility is public safety, not recording data," explains Eichler. "If the accident seems minor and there is not a lot of blood, the police may not bother to conduct a thorough investigation. They may just take care of the injured and secure the site so no one else gets injured."
That could be a relief at the time, but trouble down the road. Even though the accident may not seem major, your company could still end up being involved in a big case. For example, there may be claims for a lot of property and vehicle damage, and/or delayed medical claims.
Zip your lips. "One of the biggest mistakes drivers can make is following the police around and making excuses, offering apologies or offering money for repairs," notes Praetz. "They should allow the police to investigate."
Nicolaus agrees. "Give only the information the police ask for, such as drivers license number, medical certificate, and a short statement, such as, 'I was driving eastbound in the second lane, and the other vehicle cut me off.' "Don't provide a lot of detail. The less information drivers give, the better off they and your company will be. The more drivers say, the more will go down on the report ."I've seen reports that showed that the first thing the driver said to the highw ay patrolman was, 'Gee, I'm sure sorry. I just looked down for a second,' or, 'I was thinking about my wife and kids.' The lawyers will interpret that as admitting fault."
The driver should also leave his log book alone, updated only to the last time he stopped before the accident. "If the driver offers his log book to the police, they will assume he has been playing with the book right there," explains Nicolaus.
One other thing, following an accident, the driver will likely need a drug test—which can pose difficulties in out-of- the-way locations. "If the accident is way out in the desert and too far from a testing facility, you need to have a written explanation of that," adds Nicolaus.
Meanwhile, back at the office
What the driver does at the scene of the accident counts, of course, but so does the company's response in the following days. When a major accident occurs, many companies automatically fire the driver. They think they can protect themselves if they can say, "The first thing we did was fire the driver." Nicolaus believes this is a big mistake, for two reasons:
"First, you appear to be admitting that the driver is guilty," he explains. "It's difficult to represent a company when the company has taken action showing that they think the driver is guilty—by firing him. If you thought he was innocent and that his story was believable, you wouldn't fire him."
Second, it alienates the driver. You make an enemy out of the one witness who's on your side. When the deposition rolls around,the driver will ask himself,"Why should I help them? They fired me." At the very least,his testimony is likely to include statements like, "They make me run hard. They don't care about my log, as long as I get my job done." A better move, says Nicolaus,"is to remove him from driving duties, but provide him with some other type of employment in the facility."
Next, if you hire an outside investigator, be sure to cooperate by providing all of the information you have available. "When we are called in and talk with a company, we want to know how well the rig was maintained," says Eichler. "We want service records to make sure the brakes, steering, suspension and tires are good." As for the accident itself, "we want the highway accident documentation," Eichler says. That includes reports, witness names and numbers, and photos.
Remember, too, that time is of the essence. Conoco Phillips, based in Tempe, Ariz., makes every effort to interview the driver as soon as is reasonable after an incident has occurred. "The sooner you have the conversation, the more detailed and accurate the information will be," explains Dan Brown, the company's director of light oil trucking.
Smart & Final, a Los Angeles-based foodservice distribution business that operates warehouse grocery stores, takes it a step further—acting quickly to put together a team to conduct an internal investigation. "Not only does our safety manager review each accident," reports Dan Smith, corporate director of transportation,"but we also have a safety committee composed of the transportation manager, a fleet supervisor and three drivers who are chosen by their peers." This committee reviews accidents and determines accountability—whether the driver should be held responsible or whether it was out of his control. "If we decide the driver is accountable," he continues, "we have an internal point system for assessing penalties. We may also provide him or her with additional training."
Driving home the lessons
Hustling those drivers into training courses is one way to reduce future accidents. Another is to meet with drivers and discuss measures that will reduce the likelihood that various types of accidents will happen again.
The most common cause of accidents is carelessness—hurried drivers who don't pay attention to everything around them, according to Praetz. "A perfect example is making a right turn and not observing vehicles or other things to the side," he reports. "This is one of the most common causes of accidents in trucking. It happens way too frequently. I recently investigated an accident where the driver made a right turn and took out a fire hydrant."
A surprising number of accidents take place in parking lots, which seem to be more and more congested these days, reports Praetz. "Many drivers don't take the time to look around as they're driving and before they make turns or back up."
Praetz is even seeing fatalities at truck stops. Drivers sometimes pull out and crush other drivers who are right beside them inspecting their own trucks.
"The solution is awareness training," he emphasizes. "Management should impress on drivers how accidents are occurring and how important it is to pay attention."
Smith agrees. "Good accident investigation can provide information that can be used in training to prevent future incidents," he says . "We also have safety meetings throughout the year with drivers, at which time we review previous accidents and what can be done to prevent them in the future."
"All accidents are different, obviously," adds Brown. "We try to use the information that is gathered from all accidents to provide a platform for training and sharing of information, so that not only ConocoPhillips —but the industry as a whole—can learn from the knowledge that is gathered through the investigation process."
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."