{"id":8167,"date":"2020-10-26T18:06:25","date_gmt":"2020-10-26T17:06:25","guid":{"rendered":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/?p=8167"},"modified":"2020-10-26T18:06:25","modified_gmt":"2020-10-26T17:06:25","slug":"fleets-13","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2020\/10\/26\/fleets-13\/","title":{"rendered":"Fleets share thoughts on COVID-19 impact"},"content":{"rendered":"<p style=\"text-align: justify;\">Good data on trucking&#8217;s fate during the COVID-19 crisis is hard to find right now, but a small survey and a few fleet interviews provide a snapshot of what&#8217;s happening as of March 26.<\/p>\n<div id=\"content-body-21127334\" class=\"page-contents__content-body\">\n<p style=\"text-align: justify;\">We wince at the exponentially rising number of infected and dead (globally more than 550,530 and 24,903, respectively, <a href=\"https:\/\/www.worldometers.info\/coronavirus\/\">at last check)<\/a>. We cringe at the Dow Jones\u2019 precipitous fall from nearly 30,000 on Valentine\u2019s Day to a low of 18,591 on Mar. 23 before rallying the last three days. We agonize for the 3.3 million of our fellow Americans <a href=\"https:\/\/www.dol.gov\/ui\/data.pdf\">who filed unemployment claims last week<\/a>, about 2.6 million higher than the previous record set in 1982. And because this is the trucking industry, we do our best to ignore the catastrophic COVID-19 statistics and trudge on.<\/p>\n<p style=\"text-align: justify;\">That\u2019s good advice to succeed in the daily battles to get goods where they are needed, but truck drivers can\u2019t be like Han Solo, who famously said, <a href=\"https:\/\/youtu.be\/gRvu0yHoHy8?t=62\">\u201cNever tell me the odds\u201d<\/a> in the face of certain doom. This is a data-driven industry now, with sensors to tell fleet managers and drivers how much air is in the tires and how many miles until the powertrain needs to be serviced. GPS data even prompts the transmission to shift. Just as those help maintain truck uptime, COVID-19 data can help fleet managers make the best decision.<\/p>\n<p style=\"text-align: justify;\">If the Center for Disease Control and Prevention identifies a city\u2019s rate of infection ballooning, for example, the fleet manager needs to get ahead of potential issues such as notifying the driver of current conditions to take more precautions, as well as finding out if there will be anyone to offload the truck.<\/p>\n<p style=\"text-align: justify;\">Data is more important than ever, but we seem to be lacking in it. That has to change.<\/p>\n<p style=\"text-align: justify;\">On Wednesday, the American Transportation Research Institute (ATRI) and the Owner-Operator Independent Driver Association (OOIDA) Foundation announced they are urgently requesting anyone involved in trucking operations to fill out <a href=\"https:\/\/www.surveymonkey.com\/r\/ATRI-Coronavirus-Perspectives\">this survey<\/a>.<\/p>\n<p style=\"text-align: justify;\">&#8220;Our goal is to complete the data analysis as quickly as possible, as it can provide important guidance to public and private decision-makers. The COVID-19 pandemic is a moving target, and we can&#8217;t afford to design policies and supply chains around guesswork,&#8221; said <span class=\"xn-person\">Dan Murray<\/span>, Senior Vice President at ATRI.<\/p>\n<p style=\"text-align: justify;\">This week we also circulated a survey hoping to get a snapshot of the current state of the industry. While getting a scant 22 responses, it can at least provide a quick glance at the road ahead.<\/p>\n<p style=\"text-align: justify;\">Most respondents were for-hire (61%) with 22% identifying as service providers.<\/p>\n<p style=\"text-align: justify;\">The big takeaway is how business is really going as during the economic downturn due to the high number of responsible citizens self-quarantining.<\/p>\n<p style=\"text-align: justify;\"><span data-embed-type=\"image\" data-embed-id=\"5e7e22e4b8159142008b4618\"><img class=\"lazyloaded aligncenter\" src=\"https:\/\/base.imgix.net\/files\/base\/ebm\/fleetowner\/image\/2020\/03\/covid_survey_1.5e7e22e47556b.png?auto=format&amp;fit=max&amp;w=1440\" alt=\"Covid Survey 1\" data-src=\"https:\/\/base.imgix.net\/files\/base\/ebm\/fleetowner\/image\/2020\/03\/covid_survey_1.5e7e22e47556b.png?auto=format&amp;fit=max&amp;w=1440\" data-image-id=\"5e7e22e4b8159142008b4618\" \/><\/span><\/p>\n<p style=\"text-align: justify;\">The trucking industry is a standard bellwether for the economy\u2019s health, as the busier trucking operations serve vital commerce. Despite 62% marking down a slight to severe downturn in business, any fleet connected to groceries is struggling to keep up with demand.<\/p>\n<p style=\"text-align: justify;\">\u201cFood-related carriers have doubled their orders,\u201d said Archerhub CEO Nick Darmanchev. \u201cWe have too much business because of this incident.\u201d<\/p>\n<p style=\"text-align: justify;\">The digital freight broker based out of Denver connects drivers with customers needing to fulfill extra capacity or recover freight, and going has been good. Like the experts at DAT Solutions who track spot rates, he likens the period to the high watermark of 2018.<\/p>\n<p style=\"text-align: justify;\">\u201cTyson foods, Anheuser-Busch\u2014they&#8217;re all of a sudden increasing the amount of freight, so it&#8217;s crazy out there,\u201d Darmanchev said. \u201cThey\u2019re starting to drive the prices up.\u201d<\/p>\n<p style=\"text-align: justify;\">The problem with only looking at one data set, like spot rates, gives a false impression. Because of the pandemic and people getting sick or having to stay home and watch their children as schools have closed, loading and unloading times have been impacted. And the situation changes by the week, if not by the day.<\/p>\n<p style=\"text-align: justify;\">In an interview on March 17, Darmanchev who manages a fleet of about 50 trucks to further assist clients, observed trailers were taking 24 to 48 hours to get loaded. This week, conditions have changed due to corrections in the supply chain.<\/p>\n<p class=\"m7716719416815807221msolistparagraph\" style=\"text-align: justify;\">\u201cWhile manufacturing and warehousing are experiencing understaffing, at the same time everyone is working together more efficiently and quicker than before,\u201d Darmanchev said on Mar. 26.<\/p>\n<p class=\"m7716719416815807221msolistparagraph\" style=\"text-align: justify;\">Some changes speeding up the process are distribution centers are accepting trucks a day earlier than scheduled, the FMCSA waiving HOS rules for critical goods such as medical supplies, water, and food products, and the nationwide staycation has also led to empty highways and faster deliveries.<\/p>\n<p style=\"text-align: justify;\">\u201cCurrently, these factors are actually offsetting the shortage in manufacturing and warehouse labor,\u201d Darmanchev\u00a0said.<\/p>\n<p style=\"text-align: justify;\">At some point, inventory will be depleted, though.<\/p>\n<p style=\"text-align: justify;\">\u201cI am worried about what\u2019s going to happen if the virus isn\u2019t contained immediately,\u201d he said. \u201cThe supply side will be affected and that has a trickle-down effect. He predicted in the next two or three weeks, \u201cwe\u2019ll see a drastic downturn.\u201d<\/p>\n<p style=\"text-align: justify;\">In our survey, 64% listed limited access to freight as a supply chain issue to look out for, with 23% marking access to vehicle service parts. BestDrive, Continental\u2019s commercial tire dealer and retreader, affirmed it was staying open as an essential business to support the transportation industry, as did Goodyear. The latter suspended production due to decreased demand, though.<\/p>\n<p class=\"m7716719416815807221msolistparagraph\" style=\"text-align: justify;\">Archerhub, being technology-based and centered around food and beverage deliveries, can survive about three months under these conditions, he said. But even for a digitally transformed company, the cloud and teleconferencing have their limits.<\/p>\n<p class=\"m7716719416815807221msolistparagraph\" style=\"text-align: justify;\">\u201cIf this lasts for months to come, it will be difficult to hire new employees and provide adequate training, Darmanchev said. \u201cWe will cross this bridge when we get there, although I hope we never get there.\u201d<\/p>\n<h3 style=\"text-align: justify;\"><b> Other issues<\/b><\/h3>\n<p style=\"text-align: justify;\">Though our survey lacked in sample size and solid data, respondents did provide some telling remarks in the fill-in section that the industry needs to follow up on:<\/p>\n<h4 style=\"text-align: justify;\"><b>Driver shortage<\/b><\/h4>\n<p style=\"text-align: justify;\">\u201cBiggest challenge impacting my business is the continued shortage of qualified Class A drivers. With DMVs closed across most\/all states, it\u2019s impossible for drivers to test for necessary endorsements to legally drive on the road.\u201d<\/p>\n<p style=\"text-align: justify;\">The industry already had trouble finding drivers, though it\u2019s likely service-industry folks who lost their jobs may be looking for a new career in trucking. States have to fund a way to train and certify drivers in a safe manner.<\/p>\n<h4 style=\"text-align: justify;\"><b>Detention time<\/b><\/h4>\n<p style=\"text-align: justify;\">\u201cLoading\/unloading times are impacted at big chain DCs [distribution centers]. Longer wait times. Due to short staffed\/higher truck volume!!!\u201d<\/p>\n<p style=\"text-align: justify;\">\u201c[C]oncerns regarding getting loads and not being able to get them off due to no show at destination. Communication is imperative, but sometimes the crew is just not there.\u201d<\/p>\n<p style=\"text-align: justify;\">Amazon has increased hiring and pay, but recently shut down a Kentucky non-essential returns center after three workers tested positive for COVID-19. As infection rates increase around the country, it\u2019s likely more warehouse workers will get infected, as <a href=\"https:\/\/www.businessinsider.com\/coronavirus-150-million-americans-may-get-infected-2020-3\">experts predicted 40-70% of Americans are likely to contract it<\/a>. This means the supply chain needs to come up with immediate solutions, such as deploying more automated vehicles in the warehouse to pick up the slack.<\/p>\n<h4 style=\"text-align: justify;\"><b>Stay calm and keep driving<\/b><\/h4>\n<p style=\"text-align: justify;\">The grim stats, the falling stocks and barren streets can all induce panic, but they don\u2019t have to. The coronavirus has not altered the job of delivering goods from point A to point B.<\/p>\n<p style=\"text-align: justify;\">\u201cRight now we&#8217;re trying to have the guys operate as close to normal HOS as possible,\u201d said K.C. Cousins, vice president of operations at Fleanor Brothers, a for-hire fleet with about 55 trucks and 65 drivers. \u201cThey have enough to worry about being out there during this time to not further complicate things with their hours of service. There\u2019s a reason those regulations are put in place.\u201d<\/p>\n<p style=\"text-align: justify;\">Cousins does admit he has spent a lot of time \u201cchasing down\u201d the truth with so much misinformation out there. He said a rumor that Florida was shutting down all trucking facilities concerned a driver down there.<\/p>\n<p style=\"text-align: justify;\">Drivers will be notified via email and electronic logging devices if they are heading into a CDC-verified \u201chotspot.\u201d<\/p>\n<p style=\"text-align: justify;\">On the maintenance side, Cousins said the threes shop mechanics keep a safe distance from each other and larger jobs are outsourced to the nearby MHC-Kenworth Joplin, which has equipment to perform jobs it may take all of his mechanics to do.<\/p>\n<p style=\"text-align: justify;\">The biggest key for Cousins was President Trump calming businesses\u2019 fears of a prolonged shutdown, offering a potential re-opening of non-essential businesses on April 12, Easter Sunday.<\/p>\n<p style=\"text-align: justify;\">The <a href=\"https:\/\/www.cdc.gov\/coronavirus\/2019-ncov\/cases-updates\/cases-in-us.html\">CDC data<\/a>, unfortunately, shows that the infection rate is still climbing in America, <a href=\"https:\/\/www.worldometers.info\/coronavirus\/\">which now has the most reported cases<\/a>, and opening the economy could result in a second, more brutal second wave outbreak <a href=\"https:\/\/www.history.com\/news\/spanish-flu-second-wave-resurgence\">similar to the Spanish Flu pandemic of 1918<\/a>.<\/p>\n<p style=\"text-align: justify;\">Wuhan, China, where the coronavirus is believed to have been originated in November 2019 and spread uncontrollably due to the communist regime\u2019s lax governmental polices on \u201cwet markets\u201d and <a href=\"https:\/\/www.businessinsider.com\/5-million-left-wuhan-before-coronavirus-quarantine-2020-1\">allowing 5 million people to leave<\/a> the province after the outbreak but before the quarantine, is considering lifting its lockdown on April 8.<\/p>\n<p style=\"text-align: justify;\">The odds are that the lockdown will go for at least another month, as even Ohio, one of the first to shut down schools and businesses, is predicting cases of 6,000 to 8,000 new cases a day as of May 1.<\/p>\n<p style=\"text-align: justify;\">But in this time for panic and confusion, sometimes optimism is a better motivator to trudge on than the odds.<\/p>\n<p style=\"text-align: justify;\">\u201cUntil the president spoke and made overtones that hopefully we&#8217;d be able to see the other side of this thing here in the next several weeks, I was a little concerned how much they were going to tighten the vice on us,\u201d Cousins said. \u201cObviously things are subject to change, but talking about putting people back to work and getting the country back open again was music to my ears.\u201d<\/p>\n<\/div>\n<p>&nbsp;<\/p>\n<p>By <span class=\"page-attribution__content-name\"><a href=\"https:\/\/www.fleetowner.com\/home\/contact\/21704576\/john-hitch\">John Hitch<\/a><\/span><\/p>\n<p><span class=\"posted-by\">Source: <a href=\"https:\/\/www.fleetowner.com\" target=\"_blank\" rel=\"noopener noreferrer\">https:\/\/www.fleetowner.com<\/a><\/span><\/p>\n<h3 style=\"text-align: center;\"><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>CUT COTS OF THE FLEET WITH OUR AUDIT PROGRAM<\/strong><\/a><\/h3>\n<p><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\"><img loading=\"lazy\" class=\"aligncenter wp-image-5377\" src=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria.jpg\" sizes=\"(max-width: 858px) 100vw, 858px\" srcset=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria.jpg 2000w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria-300x200.jpg 300w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria-1024x682.jpg 1024w\" alt=\"\" width=\"858\" height=\"572\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">The audit is a key tool to know the overall status and provide the analysis, the assessment, the advice, the suggestions and the actions to take in order to cut costs and increase the efficiency and efficacy of the fleet. We propose the following fleet management audit.<\/p>\n<h3 style=\"text-align: center;\"><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>FLEET MANAGEMENT AUDIT<\/strong><\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"<p>Good data on trucking&#8217;s fate during the COVID-19 crisis is hard to find right now, but a small survey and a few fleet interviews provide a snapshot of what&#8217;s happening as of March 26. We wince at the exponentially rising number of infected and dead (globally more than 550,530 and 24,903, respectively, at last check)&#8230;.<\/p>\n","protected":false},"author":3,"featured_media":8168,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[302],"_links":{"self":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/8167"}],"collection":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/comments?post=8167"}],"version-history":[{"count":1,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/8167\/revisions"}],"predecessor-version":[{"id":8169,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/8167\/revisions\/8169"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media\/8168"}],"wp:attachment":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media?parent=8167"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/categories?post=8167"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/tags?post=8167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}