Throughout the year, Penske’s professional truck drivers spend thousands of hours on the road traveling millions of miles. While the scenery may change, one thing remains constant for drivers: their dedication to safety.
”Our drivers’ main focus behind the wheel is to maintain 360 degrees of awareness,” said Stanley Stone, Penske's vice president of safety. “They focus on keeping their vehicle in the safest position to allow both space for the vehicle and time to make decisions.”
Consumers rely on the nation’s 3.4 million professional truck drivers to deliver the goods they want when they need them – from food and clothing to furniture and electronics. In honor of National Truck Driver Appreciation Week from Sept. 13-19, Penske Logistics is thanking and recognizing the company’s more than 4,000 professional truck drivers who help keep the world moving forward.
Watch a video message from Marc Althen, president of Penske Logistics, thanking truck drivers for their valuable contributions.
Posing with the award are, from left: Operations Manager Kenny Baker, Deputy Secretary Rocky Comito, Service Center Manager Curt Lewis and General Manager Ryan Porter.
Transfreight North America, which was recently acquired by Penske Logistics, was presented with the Kentucky Governor’s Safety and Health Award during a ceremony at Transfreight’s Georgetown, Kentucky, facility this afternoon. The 120 associates have exceeded 512,000 hours without a lost-time incident. Rocky Comito, Labor Cabinet deputy secretary, was on hand to present the award and take a facility tour.
Penske Truck Leasing held a grand opening in Alabaster, Alabama. Posing for a ribbon-cutting photo, from left: Alabaster city manager George Henry and mayor Marty Handlon. From Penske: Chip Jensen, senior vice president southeast region; Keith Kelley, district manager; Jim Lager, senior vice president of sales; and Jason Harvell, district business development manager.
Penske Truck Leasing hosted a grand opening today for a full-service facility in the Birmingham suburb of Alabaster, Alabama. Located at 185 Airpark Industrial Road, in the Interstate Commerce Park, the state-of-the-art facility provides full-service truck leasing, consumer and commercial truck rental and contract truck fleet maintenance services.
“We’re opening this building in Alabaster for a number of reasons,” explained Chip Jensen, Penske Truck Leasing senior vice president for the southeast region. “There is ongoing growth within the Birmingham region that required a third facility. Now we best can serve customers in a variety of industries. Our building is centrally located near I-65 and other industrial parks.”
Facility highlights:
Jensen is interviewed by local news media at the event.
“The City of Alabaster is thankful to Penske Truck Leasing Co. for choosing a site within the City to expand their Birmingham regional operations,” stated Marty Handlon, the city’s mayor. “With convenient access to I65 and US31, this location should be a long-term success for Penske. We want to thank Penske for investing in our community.”
By “Move Ahead” Staff
Penske Logistics has once again been named a Great Supply Chain Partner by the readers of SupplyChainBrain magazine in 2015. The company has graced the list in 11 of the 13 years it has been compiled.
“Consistency is the hallmark of success, and we are honored to once again receive recognition from the industry for our dedication to excellence to our customers as one of 100 selected organizations,” said Marc Althen, president of Penske Logistics.
In 2014, the supply chain industry experienced one of its strongest years in recent history. The transportation sector grew by 3.6 percent due to stronger shipment volumes and consumers, which had been the element missing from the country’s financial recovery, began to drive the economy once again as confidence increased.
“It was the best, strongest year freight has had since the recession and it happened despite the fact that the economy wasn’t that strong around it,” said Rosalyn Wilson, a transportation consultant and the author of the Council of Supply Chain Management Professionals (CSCMP) 26th Annual State of Logistics Report, which is presented by Penske Logistics.
“Today’s market-leading companies use their supply chains to drive innovation and competitive advantage,” stated Marc Althen, president of Penske Logistics.
Wilson shared her findings at this week’s press conference at the National Press Club in Washington, D.C. Executives from Penske Logistics, Boeing, BNSF Railway, Domino’s, Yusen Logistics and Sustainable Supply Chain Consulting spoke in a panel discussion following the report’s release.
Throughout 2014, the job market improved, real net income and household net worth increased and interest rates dropped, and Wilson remains optimistic for 2015 as well. “While the economy is still wobbly, the underpinnings for freight are still looking really good,” Wilson said.
Within the third-party logistics sector, revenues rose 7.4 percent in 2014. “3PLs have been responding to changes in the supply chain and fulfillment strategies, such as the rise of omni-channel retailing, to grow their markets,” Wilson said.
The fastest growing segment of the 3PL industry for the last several years has been domestic transportation, and 2014 saw an increase of 20.5 percent.
Wilson said the growth can be attributed to a growing base of customers using 3PL services as well as an increase in the types and levels of services being offered.
CSCMP's Rick Blasgen at State of Logistics Report
Overall, total U.S. business logistics costs rose to $1.45 trillion in 2014, a 3.1 percent increase from the previous year. Transportation costs rose 3.6 percent in 2014. Trucking, the largest component of transportation costs, rose 3.0 percent in 2014; the inter-city truck segment rose 2.7 percent and the local delivery segment was up 3.7 percent.
Wilson said the number of truck shipments declined, but truck tonnage increased 3.5 percent in 2014. “This supports the anecdotal evidence collected that suggests loads are heavier and more trucks are moving at or near full capacity,” she explained.
Within the railroad sector, costs grew 6.5 percent as rail traffic reached its highest annual total on record. Costs for the water sector rose 8.9 percent, the second highest growth sector in 2014, and freight forwarder costs rose 5.4 percent. Air cargo sector costs declined 1.2 percent as competition from other modes kept rates down.
Wilson said total freight payments rose less than the increase in the number of shipments, indicating that rates were flat and competitive overall.
She said, “Once again in 2014, truck freight rates did not rise as a traditional supply and demand model would have indicated. However, on a cost per ton-mile basis, there was a 2.5 percent uptick, but on an average cost-per- mile basis, there was a 2.1 percent drop in 2014.”
The transportation industry continued to experience capacity concerns throughout the year, which Wilson attributed, in part, to Department of Transportation safety regulations that have altered fleets’ productivity and increased costs.
Close to 400 small companies went bankrupt in early 2014.
While those carriers all had 30 trucks or less, the loss has affected capacity. Wilson expects the capacity problems that emerged in 2014 to continue to worsen for at least the next two years before they begin to improve.
Inventory carrying costs rose 2.1 percent in 2014 as did total business inventory levels, pushing up related expenses, such as taxes, depreciation, obsolescence and insurance.
“Inventories are at the highest point they have ever been in the 70 years they’ve been recorded,” Wilson said. “That will put a lot of pressure on the retailers and wholesalers holding that inventory.”
The cost of warehousing rose 4.4 percent because of shrinking capacity, which lowered the national vacancy rate to 7 percent. In addition, warehousing costs are on the rise as companies respond to the shortage of workers by offering better pay and benefits.
Penske's Joe Carlier 2015 CSCMP State of Logistics Report
The trucking industry also faces a shortage of workers, and the driver shortage remains a key concern.
The American Trucking Associations estimates the current shortage ranges from 35,000 to 40,000 drivers. A key indicator of this was a driver turnover rate, which was more than 95 percent on an annualized basis.
Several CSCMP press conference panelists noted challenges with a growing supply chain talent shortage in the industry beyond truck drivers and also extending to warehouse workers as well as logistics engineers, IT and other professionals.
Joe Carlier, Penske Logistics senior vice president of sales (bottom photo), and a panelist stated: “today, human capital is a major issue...our hiring needs include skilled logisticians as well as truck drivers.”
Penske Logistics has over 13,000 global employees including 4,000 truck drivers. The company’s truck driver retention rate is high for the industry – in excess of 80 percent.
Motor carriers are interested in maximizing driver pay and satisfaction, and carriers are likely to be more selective in who they do business with if they see the sustained growth in freight volume Wilson expects.
“Shippers who hold drivers for long periods of time waiting to load or unload, or who do not treat their drivers well, will fall to the bottom,” Wilson said. “Maximum equipment utilization, quicker turns and fewer empties go right to the bottom line. Shippers willing to work with carriers to accomplish this will fare better than those who neglect these issues.”
CSCMP's State of Logistics Report has tracked and measured all costs associated with moving goods through the U.S. supply chain dating back to 1988.
“This highly anticipated report contains the statistics and industry insights that will not only help our members do their jobs better, but also better prepare them for the business demands ahead,” said Rick Blasgen, president and chief executive officer of CSCMP (middle photo). “We are grateful for the support from Penske Logistics in issuing this critical industry intelligence.”
By “Move Ahead” Staff
Little Draven was all set for his first road trip from his home in New York to Virginia, where he was about to appear at a fundraising gala in Fredericksburg.
Excitement was tempered with uncertainty after his transportation arrangements fell through at the last minute. What’s a 20-foot-long, 240-pound “baby” Tyrannosaurus Rex to do?
Just in the nick of time, a Good Samaritan came forward to donate a Penske rental truck to transport Draven to the fundraiser benefitting the Institute for the Performing Arts, organizers of “Travel Through Time,” an educational, interactive stage show featuring Draven.
Without the truck, Bill Carroll, CEO and founder of the Institute for the Performing Arts (IPA), said he wasn’t too sure how to get his not-too-tiny dinosaur to his debut. “It was very intense,” Carroll explained.
Based in Fredericksburg, IPA was created to offer performing arts training while at the same time equipping students with the necessary skills to put on a show – offering everything from performance to lighting, sound and special effects instruction.
When word reached Bryan Rock and Jayson Silvera of Fredericksburg, VA-based Project Management and Consulting, the company’s PMC Courier division decided to help by paying for a week-long truck rental to support Carroll’s mission to bring the arts to the area.
“Bill is a staple in the community, and after investigating his efforts through his nonprofit, we decided that we would be a part of it and give back to the community in that way,” Rock said. “Bill’s idea for the Institute and efforts in education and the arts is commendable, and our footing the bill for the truck was a small token of appreciation for those efforts.”
The gala was to be a coming out part for Draven as well as “Travel Through Time, ” an hour-long show where the audience journeys to the time of Pirates and their treasures, Ireland with the Viking Adventure, China and the Dragon King or enjoy the expedition to the North Pole during their Christmas special.
The show features ground-shaking sound, breathtaking lighting sequences, 3-D video projection, life-size baby dinosaurs, exciting high-tech robots and amazing special effects.
While the “Jurassic Park” version of T-Rex may be imposing, Draven has a much gentler side, Carroll said.
Draven has his own connection to the movie.
Before Draven was built, Carroll said consultants from the “Jurassic Park” movie provided input so that he was constructed to the correct size and even skin thickness of a real T-Rex.
Draven will make appearances at comic conventions and trade shows. “We brought him down to debut him to the world at the gala at the Stafford Regional Airport,” Carroll said.
After the gala, Draven was driven back to the New York lab so that more work could be done on him. Along the way, he made appearances at rest stops and department store parking lots, where passers-by made more than a casual double-take at the sight of a T-Rex in the back of a Penske truck.
Carroll reflected on the trip with thanks to Rock and PMC Courier for donating the use of the Penske truck.
“Every step of the way, it was positive,” Carroll said of his Penske experience. “They gave me a brand new truck. It was the smoothest riding truck.”
By Bernie Mixon
As part of its Australian expansion, Penske Truck Rental has opened its third truck rental and full-service truck leasing office in Sydney.
“Since our Australian launch in August 2014 we’ve seen a significant increase in the demand for our services, and we’re keen to capitalise on this growth with the launch of our third location in Sydney,” Adrian Beach, general manager – Penske Truck Rental, said.
The Federal Motor Carrier Safety Administration (FMCSA) has launched an initiative to bring attention to highway-rail grade crossing safety.
Highway-rail grade crossings are intersections where a roadway crosses railroad tracks at the same level or grade. More than 250,000 of these crossings exist across the country. Trucks or tractor-trailers account for about 500 highway-rail grade crossing incidents annually– averaging about 10 per week.
