Transportation of Forest Products

Size: px

Start display at page:

Download "Transportation of Forest Products"

Natalie Baldwin
5 years ago
Views:

1 Transportation of Forest Products The Big Picture in Forest Products Transportation Presented By Jimmie Locklear 2017 OFA Annual Meeting Embassy Suites ~ Dublin, Ohio 1

2 What nut would haul wood like this? Jimmie s Experience Driven Understanding

3 My Last Load to the mill December 1988 shut down family logging operation after 46 years

4 The Challenges Markets Weather Workforce Equipment Compliance Financial Insurance Trucking 4

5 Transportation of Forest Products Challenges and Concerns FINDING GOOD DRIVERS ACCIDENTS/INSURANCE

6 Transportation of Forest Products Challenges and Concerns PUBLIC PERCEPTION GOVERNMENT REGULATIONS

7 If I m doing all the right things why should I be concerned? Insurance Rates are based on logging industry performance Public Perception based logging industry image Government Regulations based on logging industry specific concerns 7

8 Transportation of Forest Products YOU ARE ABOUT TO ENTER THE MOST DANGEROUS WORK AREA IN THE UNITED STATES THE HIGHWAY 8

9 Reality Check # 1 According to US Bureau of Labor Statistics Data 9

10 If you come across a log truck accident What Happened? Is that my truck? Is the driver OK? Are other vehicles involved? 10

11 How did this happen? If you come across a log truck accident Driver distracted? phone/texting? driving too fast? 11

12 What can we do to prevent this??? 12

13 Transportation of Forest Products What s Involved? Loads Mills Trailers Drivers Owners Weather Trucks Roads 13

14 The most important element The driver 14

15 This chart from the ATA shows the projected shortfall: Truck Driver Shortage 80,

16 LOOKING FOR DRIVERS? Total Drivers Needed from 2015 through 2024 by Reason 1,000, , , ,000 Drivers Leaving Before Retirement Drivers don t qualify Industry Growth 200,000 Retirements -

17 Reality Check # 2 According to US Bureau of Labor Statistics Data Average Truck Driver Life Expectancy 62!!! 17

18 Transportation of Forest Products Driver concerns specific to hauling raw forest products Generally lower pay/freight rates Very little if any benefits such as health insurance Older less comfortable trucks Road conditions more difficult to drive Weather conditions can shorten work week/mud season 18

19 Transportation of Forest Products Driver concerns specific to hauling raw forest products Mill turnaround times often reduce earnings potential Mill facility/rules make prolonged experience more difficult Aging work force younger generation not interested Finding drivers that can pass a drug test Finding drivers that are insurance (MVR/experience) compliant 19

20 Transportation of Forest Products time is money 20

21 Transportation of Forest Products beyond the truck, trailer and load Insurance Legal Drivers Owners Public Perception Government Compliance 21

22 Transportation of Forest Products beyond the truck, trailer and load Insurance 22

23 Insuring log/chip truck drivers W/C concerns & considerations Due to the potential for traffic accidents, tractor-trailer truck drivers have one of the highest rates of injury of all occupations. Drivers employed less than 6 months with company...have more accidents Payment methods encourage speeding Commercial vehicle fatal crashes speed (too fast for conditions) is the largest contributing factor, followed by distraction or inattention and then impairment Forestry Mutual will not write trucking without logging operation as primary insured risk 23

24 Forestry Mutual s concerns The numbers tell the story Claims By Job Stumper Topper FellerBuncher Skidder Loader Mechanic Truck Driver

25 Insuring the truck/trailer concerns & considerations liability & physical damage Driver Selection/Hiring Practices Careful MVR Review FMCSA-SMS Scores Stay Below the Intervention Level Proper Risk Transfer Procedures for sub-haulers Do Not Allow Sub-Haulers to Pull Your Trailers 25

26 Why are MVRs important??? Failure to use signals 96% 88% 84% 80% The correlation between violations and probability of crashes Drivers with poor MVRs are more likely to generate future crashrelated insurance claims - Randy Hervey/BITCO Driver with a previous crash is 88% more likely to have another 26

27 Insurance Companies no longer insuring or reluctant to insure log trucks 40+ insurance carriers have discontinued writing log trucks over the last 20 years Most of these carriers made the decision to discontinue insuring log trucks due to unacceptable loss ratios The number of carriers willing to write log trucks today is limited Fitch credit ratings and major insurance broker Marsh reports not good news 27

28 Reality Check # 3 Business Auto/Truckers premiums need rate increases to be profitable/sustainable 28

29 Transportation of Forest Products beyond the truck, trailer and load Public Perception 29

30 Public perception of the logging industry IS IT THIS? OR THIS? 30

Public perception and the media I didn t make this up! Naked woman with log-truck driver in 'horrific' school-bus crash Sheriff says Something was totally distracting him.

regarding the log truck traveling erratically just prior to the crash UPDATE: The naked woman was the truck drivers wife she said she had removed her most of her clothes because it was hot inside the

31 Public perception and the media I didn t make this up! Naked woman with log-truck driver in 'horrific' school-bus crash Sheriff says Something was totally distracting him. log truck smashed into rear of school bus in FL Seven of the 15 students on board the bus were injured, as well as the bus driver the crash seriously injured two children 911 had received two calls regarding the log truck traveling erratically just prior to the crash UPDATE: The naked woman was the truck drivers wife she said she had removed her most of her clothes because it was hot inside the cab the driver blamed the trucking company for the crash, saying they did not maintain the truck properly A trooper testified to the mechanical problems of the rig, stating that eight of truck s brakes were defective. The driver was sentenced to 20 years for the crash, five years each for four counts of reckless driving 31

32 Transportation of Forest Products beyond the truck, trailer and load Legal Responsibilities 32

33 Transportation of Forest Products $165 M $34.5 M $32.5 M $32.0 M Trucking: Top Jury Verdict Complainants, Attorneys and the Court System $19.3 M $17.4 M $16.5 M Log Truck 33

34 GET UM LAW FIRM - LLC XYZ Logging P.O. Box 000 Your Town, US Transportation of Forest Products Attorneys are seeking every possible opportunity for $$ o Failing to have the tractor trailer under proper control GET UM LAW FIRM, LLC o Failing to stop prior to the subject intersection and within his proper lane on the roadway Stick It Tooum, 2 1 P a g IV e Partner August, 2015 o Failing to properly load the vehicle DIRECT DIAL: (000) o Failing to properly inspect the vehicle The stickittiuom@getumnow.com timber on the tractor trailer had allegedly been logged and loaded by XYZ o Failing to properly investigate the driver's background, driving history, August, 2015 ocontract trucker hauling Logging. The Plaintiff a asserts load that company logs that owned the tractor a trailer and/or qualifications to operate a commercial motor vehicle before o Failing to properly investigate the driver's background, logging company ran a involved, Haul Wood Trucking, was an agent and/or joint venture partner of the hiring the driver driving history, other defendants, including XYZ, by way of an agreement for the sale and o Failing supervise the driver of the commercial motor vehicle and/or qualifications to operate a commercial Via Certified Mail, Return Recei pt Requested stop light and struck transportation another of freight. Plaintiff alleges vehicle that XYZ and other killing defendants failed to o Failing motor properly investigate vehicle the safety rating and/or before safety history of driver investigate safety rating, driving history, fitness and/or qualifications of the the motor carrier driver and/or motor carrier involved in the accident. o Failing to require that the driver of the commercial vehicle be qualified to hiring the driver The Complaint alleges that Defendant Haul Wood Trucking, through its o Failing othe deceased s to supervise family the driver received of the commercial $1,000,000 motor policy vehicle limit from the employees and agents, was negligent and grossly negligent and/or reckless by: o Failing to stop a red light in violation of SC Code (A) contract trucker s insurance carrier o Failing to see the decedent's vehicle entering the intersection before Laws o Failing to properly investigate the safety rating and/or o Violating various safety Federal Motor history Carrier Safety Regulations of the motor carrier o Failing to ensure that he had adequate line-of-sight of other vehicles, othree year s later the travel owner lanes, and/or traffic of signals the logging company received notice o Failing to keep a proper lookout for warnings o Failing to require that the o Driving driver at an unsafe or of excessive the and dangerous commercial rate of speed m vehicle be qualified to of a lawsuit alleging wrongful violation of SC Code (A) death based on neglect in hiring the operate the tractor trailer o Failing to take before action which could have allowing avoided the collision or him to haul the load in History & Material Facts l minimized the impact contract trucker (G/L) o Operating the tractor trailer without adequate training and experience o relief as the court deems just and proper. question Dear Sir: Our firm has been retained as legal counsel to represent and advise Protect him Your Butt Insurance Company as to insurance coverage issues in the above- o Failing to reduce his speed before entering the intersection referenced lawsuit, and the statements below represent the position of Essex. The purpose of this letter is to advise you that, after fully considering all of the allegations in the above-referenced claim and reviewing the policy, additional information, and documents, PYBIC has determined that because there is a possibility of coverage The instant case involves allegations arising out of an automobile accident that Operating the tractor trailer without being qualified to do so occurred############################################################ ################################################################### o Operating the tractor trailer without proper supervision ##################### o Operating the tractor trailer when the vehicle was not mechanically safe and sound to drive on the highway o Failing to properly maintain the tractor trailer in a safe mechanical 1 Essex has no independent knowledge as to the merits of these claims and base our opinion solely on the information gathered from the Amended Complaint and the insurance policy. Nothing herein shall be an admission or adoption of Plaintiff s allegations. 172 Meeting Street Charleston SC condition operate the tractor trailer before allowing him to haul the load in question o Operating defendant's truck over the amount of hours allowed by the Federal Motor Carrier Safety Regulations and/or Your State Code of As against XYZ, the Complaint alleges that the XYZ and/or the other defendants retained control over the transportation process, including but not limited to the loading, securing, and weighing of the freight, the speed of the vehicle used to transport the freight, the route taken, the periodic inspection of the freight, among other things. As such the Plaintiff alleged causes of action against XYZ for Wrongful Death and Survival based on the allegations that XYZ was negligent. Plaintiff seeks damages in an "appropriate amount", plus the costs of suit, and for such other G/L Policy Information Limits Deductible Policy # Effective Dates Per Occurrence Completed Operations Aggregate Amount Per 8HGT /04/2013 $1 Milli $1 Milli $1 Milli $500 Cl i 34

35 Transportation of Forest Products beyond the truck, trailer and load Government Compliance 35

36 Transportation of Forest Products Compliance with government agencies 36

37 Transportation of Forest Products Record Keeping compliance 37

38 Transportation of Forest Products Physical inspections 38

39 Why are CSA alerts important? 39

40 Weight limits Inconsistent.. Confusing.. Transportation of Forest Products Compliance with government agencies Adds truck traffic to towns, school, etc Increases risk of accidents Adds cost to transport products 40

41 Compliance with government agencies more regulations on the way Entry-Level Driver Training (ELDT) EPA/NHTSA s Phase II GHG/Fuel Economy Rule Safety Fitness Rule Using CSA Speed Limiters (may not happen with new administration) Sleep Apnea Screening & Treatment 41

42 Transportation of Forest Products The driver and owner the most important factors Loads Legal Trailers Mills Weather Drivers Owners Government Compliance Trucks Public Perception Insurance Roads 42

43 Transportation of Forest Products Summing up the The Big Picture Qualified driver shortage getting worse Wrecks often due to driver error Insurance companies nervous about insuring log truck Public perception not good Increasing legal issues Governmental regulations are a growing issue 43

44 Transportation of Forest Products where do we start? 44

45 Transportation of Forest Products use TEAM concept TEAM fire formed in 2001 Loggers, equipment mfg.s, insurance TEAM fire has had a major impact on logging equipment fire issues Loggers more aware of issues Manufacturers continuing to address fire issues in machine design Overall much better situation than 20 years ago when TEAM began 45

cooperative effort to create an awareness, education and training

46 TEAM Safe Trucking What is TST? TEAM Safe Trucking Initiative is being formed as a national cooperative effort to create an awareness, education and training program that will be available to all who have log and chip hauling operations or exposure to such operations. 46

47 TEAM Safe Trucking Who is TST? 47

48 48

49 49

50 Transportation of Forest Products 1 st Step - Focus on training and CE for the drivers first Acceptable Standard truck driver training program Training program should emphasize load high center of gravity Driving on woods roads from deck to public roads and highways Importance of adjusting speed to road load weather conditions 50

51 Transportation of Forest Products 1 st Step - Focus on training and CE for the drivers first Program would be designed for area and region of operation All drivers present and future required to attend a driver training Available in conjunction with professional logger training programs Continuing education (CE) on annual basis to refresh and update 51

52 Log Truck Driver Training Program Template Each State Responsible for Program Content and Administration SFI/ProLogger/etc Web-Based? 52

53 Transportation of Forest Products Require all truck drivers to do this! 53

54 TEAM Together Everyone Accomplishes More how will the forest industry react? 54

55 TEAM Together Everyone Accomplishes More The future of the Forestry Industry depends on our ability to attract, train and maintain competent workers. 55

56 TEAM Safe Trucking seeking your support Time for the audience to share additional comments! For more information visit teamsafetrucking.com TEAM Safe Trucking group on Facebook 56

Transportation of Forest Products

Transportation of Forest Products Understanding our Challenges...Developing Solutions Jimmie Locklear 1 Transportation of Forest Products YOU ARE ABOUT TO ENTER THE MOST DANGEROUS WORK AREA IN THE UNITED