NPTC Report Highlights Latest Leasing Trends for Private Fleets
January 14, 2019
The transportation industry is evolving at a faster rate, arguably, than ever before. The amount of freight needing to be hauled continues to grow, leaving a positive outlook for private fleets into the next five to 10 years.
<p>As detailed in the National Private Truck Council's (NPTC) most recent Benchmarking Survey Report, private fleets expect to add more equipment to keep pace with the rising amount of freight. Additionally, those aren't the only factors people are expecting to take an upward swing in the not-so-distant future.</p><p>“Skyrocketing for-hire carrier rates, shrinking capacity and continuing driver scarcity will worsen through next year and beyond," said Gary Petty, NPTC's president and CEO, in the report. “Freight volume will rise significantly and shipping costs likely to grow at double-digit levels."</p><p>In 2018, the average fleet size of Class 8 heavy-duty power units was 270, according to the report – and with cargo volumes on the rise, augmented fleets may follow. But, when it comes time to acquiring more vehicles, there's one question that has many fleet operators answering differently: Do you lease, own or both?</p><p class="shortcode-media shortcode-media-rebelmouse-image"><img class="rm-shortcode" data-rm-shortcode-id="fc65be552de3fae11ce5592ec2b1f0f3" data-rm-shortcode-name="rebelmouse-image" id="eafa3" type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTEyODY5OC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0MTE1Mzc2NH0.z156_jOqLnEMB9JlHu3Q5C2Lf4K0-7GVPIs1EFpqg_w/img.jpg?width=980"/></p><p><strong>Leasing Trends and Advantages</strong></p><p>Among NPTC member companies who responded to the survey, when it came to fleet acquisition preferences, 23 percent said they leased the majority of their equipment, whereas 40 percent elected to go the ownership route.</p><p>However, the fastest-growing number came from those who responded that a combination of ownership and leasing made up their acquisition approaches – that's 37 percent and rising.</p><p>With many respondents saying they lease at least some of their equipment, what are the advantages?</p><p>One reason for fleet operators may be the rate at which they turn over equipment. Generally speaking, leasing offers shorter vehicle lifecycles than ownership. The NPTC reported that leased equipment is turned over an average of 6.11 years compared to that of vehicle ownership's 6.74 years.</p><p>The report further lays out that among the various types of lease arrangement fleet operators can choose from, they overwhelming opt for full service leases (FSL) – 57 percent. But, what makes FSL such an attractive option?</p><p>An FSL is offered to best fit a company's business goals, while setting out to fulfill all their equipment needs and providing maximum uptime. At <a href="https://www.pensketruckleasing.com/">Penske Truck Leasing</a>, FSLs can range from three to 10 years. <a href="https://www.pensketruckleasing.com/full-service-leasing/" rel="noopener">Such benefits of FSL include</a>:</p><ul class="ee-ul"> <li>The ability to use the vehicle without the exposure of owning it</li> <li>The convenience of utilizing Penske's extensive network of facilities and highly trained technicians when it comes time for maintenance</li> <li>An added comfort knowing Penske supports and walks customers through any industry regulation, including compliance, spec optimization and tax reporting</li></ul><p>One misconception is that it is more expensive than doing it yourself, but Jim Lager, senior vice president of sales at Penske, says that isn't always the case.</p><p>“We help customers identify all of the costs associated with operating a fleet, and we typically see full service leasing is comparable or better from a total cost standpoint and brings a lot more value and convenience for the customer.</p><p>“Managing a fleet today is not easy, whether you are trying to staff and operate maintenance facilities yourself or outsource these needs piecemeal," said Lager. “When you engage a full service provider, such as Penske, we take care of all of that for you, and you only pay for a fraction of the overall related costs.</p><p>“We provide our customers with exclusive access to our world class facilities and highly trained workforce whether they have one truck or one thousand. We pioneered and perfected the concept of a sharing industry over the last 50 years," said Lager.</p><p class="shortcode-media shortcode-media-rebelmouse-image"><img class="rm-shortcode" data-rm-shortcode-id="60169c2514b9589dc8ce70cdc03a14f5" data-rm-shortcode-name="rebelmouse-image" id="50f94" type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTEyODY5OS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY2NjQ5NjkwN30.qsiPqJdG87K5o7nU3y128aPAddclvN4ci1c1j4At10A/img.jpg?width=980"/></p><p><strong>Maintenance Trends</strong></p><p>Knowing how daunting of a task operating maintenance facilities can be for a private fleet – that may not possess the necessary resources or capital to take on those challenges – the NPTC report found that 84 percent of fleets that lease their equipment typically outsource the majority of their maintenance needs. And, when private fleets outsource maintenance, more than 40 percent of the business goes to a full-service lessor.</p><p>The number of fleets that outsourced maintenance increased from 2017, whereas fleets that conducted maintenance in-house dipped from the previous year, the <a href="https://bentleytruckservices.com/wp-content/uploads/2018/09/2018-FINAL-Benchmark-Survey-Report.pdf">survey states</a>.</p><p>Many factors contribute to fleet operators outsourcing their maintenance services. Factors such as technician scarcity, the need for newer equipment with safety feature technology and shorter vehicle life cycles are just some of the driving forces behind it.</p><p>There's been a growing emphasis put on uptime by customers. To meet these high demands, fleet operators – who may lack the labor force, resources or know-how – consider outsourcing their maintenance needs as a more dependable option.</p><p>“Private fleets look to companies, like Penske, for our maintenance expertise to service their vehicles and mitigate unplanned downtime due to increasingly complex systems, such as after-treatment," said Gregg Mangione, senior vice president of maintenance at Penske. “For example, our <a href="https://www.pensketruckleasing.com/contract-maintenance/maintenance-benefits/data-driven-maintenance/" rel="noopener">Dynamic PM<sup>®</sup></a> is a data-driven preventive maintenance service that is designed to maximize uptime and improve quality and compliance."</p><p>To help with these efforts, Penske Truck Leasing integrates <a href="https://blog.gopenske.com/lease/penske-truck-leasing-digitizes-truck-fleet-preventive-maintenance-processes/" rel="noopener">voice-directed technology</a> into its preventive maintenance program, and it's the first and only organization in the transportation industry to do so at this time.</p><p>Penske also helps fleet managers and their drivers with its <a href="https://www.pensketruckleasing.com/connected-fleet-solutions/" rel="noopener">connected fleet solutions</a> and <a href="https://www.pensketruckleasing.com/connected-fleet-solutions/providing-insights/" rel="noopener">mobile apps</a> such as Fleet Insight<sup>TM</sup>, Penske Fleet<sup>TM</sup> and Penske Driver<sup>TM</sup> that provide a wealth of real-time information and tools to manage their fleets, meet compliance needs, and receive over-the-road support.</p><p><em>Learn more about the benefits of partnering with Penske and seeing how their experts can help keep your fleet performing and your business moving forward at <a href="https://www.pensketruckleasing.com/" rel="noopener">pensketruckleasing.com</a>.</em></p><p><em>By Chris Abruzzo</em></p></div>
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Penske Driver Nominated for America’s Road Team
September 18, 2012
Every two years, America’s Road Team searches for the country’s top drivers. This year,Penske Logistics driver Neil Kirk has been nominated to be a part of the best of the best.
<p>Created by <a href="http://www.truckline.com/">American Trucking Assocations</a>, <a href="http://www.americasroadteam.com/">America’s Road Team</a> is a national public outreach program led by a group of professional truck drivers – nominated by their employers – who share superior driving skills and safety records, along with a desire to spread the word about safety on the highway.</p><p>The 2011-2012 team has 511 years of experience and has logged more than 38.2 million accident-free miles. Being a voice for this safety team is a true honor for proud truck drivers like Kirk.</p><p>“It would be the greatest honor to represent the trucking industry as an American Road Team Captain,” said Kirk, a professional truck driver for 28 years, four of those at Penske. “Trucking is the backbone of our great nation, ensuring that business have the means to continue operation and people have the resources they need to live.”</p><p>Kirk delivers hospital supplies in and around the New York Metropolitan area. His supervisor, Paul Emmert, nominated him for his exceptional communication skills, his positive relationship with his peers, his exemplary attitude and, above all, his stellar safety record of almost 2.9 million accident/injury-free miles.</p><p>“The pride that Neil has for our industry shows every day, especially when I speak to Neil’s customers, who have only compliments about the quality and professionalism he portrays daily,” said Emmert, operations manager for Penske Logistics.</p><p>Safety and courtesy are Kirk’s top priorities as a truck driver. He serves as an advanced instructor for professional driver training course <a href="http://www.smith-system.com/">Smith System</a>, giving critical hands-on safety training to both the fleet’s newest recruits and the more seasoned drivers.</p><p>“I know that possessing a heightened awareness toward safety is crucial for keeping the roads and highways a safe place for other drivers to work and, more importantly, their respective families to travel on,” said Kirk, who is a two-time Penske Safety Performance Award winner.</p><p>As a driver-elected shop steward, Kirk leads his peers of 80 fellow drivers and helps maintain the drivers’ morale.</p><p>“I understand the role that our attitude and dedication as a team has on the success of Penske and on the transportation industry as a whole,” said Kirk, who also has been nominated for the <a href="http://www.trala.org/">Truck Renting and Leasing Association’s (TRALA)</a> Driver of the Year Award. “How we conduct ourselves on the job as truck drivers is what shapes the general public’s impression of all professional truck drivers.”</p><p>America’s Road Team finalists will be selected Oct. 29, followed by the announcement of the 2013-2014 America’s Road Team Jan. 8.</p><p>Are you a hard-working driver who shares Kirk’s passion for safety? Visit <a href="http://gopenske.com/drivers">http://gopenske.com/drivers</a> for employment opportunities. The company offers competitive wages and a wide range of benefits. Penske is an Equal Opportunity Employer.</p><p>Editor’s Note: In recognition of National Truck Driver Appreciation Week Sept. 17-21, Penske is celebrating our 2,900 dedicated drivers who ensure safe, prompt and seamless delivery of our customer’s goods while maintaining the highest level of safety and customer service.</p><p></p><div class="rm-shortcode" data-rm-shortcode-id="GP3PEN1571657546" id="cc337"><blockquote class="twitter-tweet twitter-custom-tweet" data-partner="rebelmouse" data-twitter-tweet-id="248124488175202304"><div style="margin:1em 0">Penske Logistics truck driver nominated for America’s Road Team http://t.co/H8QwQOs8 #TruckDriverAppreciationWeek</div> — Penske Truck Leasing (@Penske Truck Leasing)<a href="https://twitter.com/PenskeNews/statuses/248124488175202304">1347992462.0</a></blockquote></div><p></p><p><em>By Kandace Wertz</em></p></div>
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Penske Truck Rental Ready for Holiday Shipping Demand
November 25, 2011
Black Friday. Cyber Monday. Green Monday. You name it. The holiday season is here and Penske Truck Rental is busy helping parcel companies and retailers meet their peak holiday shipping demands. Recently, theNational Retail Federation issued its 2011 forecast for the holiday season.
<p>The association forecasts retailers will have an “average” type season in spite of the challenging economic conditions. The association expects holiday retail sales for 2011 to increase 2.8 percent to $465.6 billion.</p><p>Similarly, many of the larger package delivery companies have forecasted a meaningful uptick in holiday shipping volumes, in response to consumer demand and fulfilling online shopping orders.</p><p>At <a href="http://www.pensketruckrental.com/">Penske Truck Rental</a>, which operates one of the largest commercial truck rental fleets in North America, all this shopping frenzy and freight activity translates into increased business.</p><p><img class="rm-shortcode" data-rm-shortcode-id="3bbdc377f13fa867262584e800451472" data-rm-shortcode-name="rebelmouse-image" id="e2f3e" type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTEyNzAxMC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyNzIxNTk2NH0.C48JYqbK14rEroZ0wCVRTDt1U_ZYil5K9oqRyE-s7Uw/img.jpg?width=980"/>“From November through December we definitely see a spike in <a href="http://www.pensketruckrental.com/commercial-truck-rental/commercial-trucks/semi-trailers/">commercial truck rental</a> activity,” said Penske’s Don Mikes, vice president of rental. “The major package delivery fleets typically rent our trucks to provide extra capacity for holiday shipping needs and many small and mid-sized retail establishments also start moving more inventory items and make deliveries.”</p><p>Penske offers a wide variety of rental trucks from large <a href="http://www.pensketruckrental.com/commercial-truck-rental/commercial-trucks/heavy-duty-trucks/">commercial semi-tractors</a> and <a href="http://www.pensketruckrental.com/commercial-truck-rental/commercial-trucks/semi-trailers/">trailers</a> to <a href="http://www.pensketruckrental.com/commercial-truck-rental/commercial-trucks/light-duty-trucks/">small box trucks</a>. Penske encourages retailers and businesses to make reservations now ahead of the holiday rush by calling its hotline for business rentals, 1-800-PENSKE1.</p><p>New business truck rental customers are encouraged to try the <a href="http://www.pensketruckrental.com/commercial-truck-rental/contact-us/">Rental Express</a> program and enjoy an additional 20 percent off, for a limited time.</p><p><em>By Randy Ryerson</em></p></div>
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Penske Increases Bulk DEF Offerings at U.S. Fueling Facilities
October 24, 2011
Following the addition of 19,000 new medium-duty and heavy-duty trucks this year equipped with Selective Catalytic Reduction (SCR) technology,Penske Truck Leasing is expanding its bulk Diesel Exhaust Fluid (DEF) availability at 370 of its major U.S. fueling sites.
<p>These facilities will now house 330-gallon to 2,000-gallon DEF on-island systems. DEF is available in non-bulk quantities at other Penske locations across North America.</p><p>“We’ve made this investment to ensure that our customers have easy access to the bulk quantities of DEF they need,” explained Jennifer Sockel, Penske’s vice president of administration. At this time, work has been completed at over 100 locations.</p><p>The Reading, Pa.-based company noted in a statement that it expects to complete the effort by early next year. At the start of 2011, Penske’s SCR truck fleet numbered more than 6,000.</p><p>“Providing an on-island solution at major Penske U.S. facilities will improve the customer experience,” stated Mike Hasinec, Penske vice president of maintenance systems and support. “A new point-of-sale system will further provide Penske’s customers with detailed information on the amount of fuel and DEF that is consumed.”</p><p>The U.S. Environmental Protection Agency has mandated that 2010 emission technology requirements be phased in for truck fleets over the next several years.</p><p>DEF is vital to the operation of 2010 trucks utilizing SCR technology. It works to greatly reduce Oxides of Nitrogen (NOx). Less NOx translates to a truck’s exhaust being cleaner and less harmful to the environment. DEF is a non-toxic agent that works to cleanse the NOx chemicals coursing through commercial medium-duty and heavy-duty trucks.</p><p><a href="http://www.GoPenske.com">Penske Truck Leasing</a> provides full-service truck leasing, <a href="http://www.pensketruckrental.com/">consumer</a> and <a href="http://www.pensketruckrental.com/commercial-truck-rental/">commercial</a> truck rental, and <a href="https://www.pensketruckleasing.com/">maintenance </a>services at more than 1,000 locations across North America.</p><p><em>By Alen Beljin</em></p></div>
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Driver Shortage Remains a Top Concern
October 18, 2011
The American Trucking Associations (ATA) reported that the turnover rate for over-the-road truck drivers rose to 79 percent in the second quarter of 2011, the latest period for which figures are available. That figure marks a four-point increase over the first quarter and a three-year high. It is also the third consecutive quarter of increased churn in the driver market.
<p>ATA chief economist Bob Costello said ATA believes the market for quality drivers is getting extremely tight and fleets are aggressively recruiting to fill their openings. </p><p>“The slowdown of the economic recovery has affected the turnover rate, but if the economy continues to improve we’ll see further tightening in the driver market and a renewed risk of a severe driver shortage,” Costello said. </p><p>Industry reports estimate there will be a shortage of 111,000 drivers by 2014. According to the most recent industry survey issued by the <a href="http://www.nptc.org/">National Private Truck Council</a> (NPTC), professional drivers are projected to exit the workforce in a growing wave. The first baby-boomers begin turning 65 in 2012, plus the pool of CDL-eligible 21 year olds starts to grow at a slower rate. </p><p><img class="rm-shortcode" data-rm-shortcode-id="9da4e4c29e47aec3ca989d0eda09e8ad" data-rm-shortcode-name="rebelmouse-image" id="73996" type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTEyNjgxMy9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY2OTU5MjY5MH0.zWH7STzDGOI0jCWasAHg_mZe-S9VJorixQWKtMNSXFs/img.jpg?width=980"/>NPTC reported that private fleet owners report retention and turnover rates that are better than their for-hire peers. NPTC members report turnover of 10.6 percent, which is up slightly from the 10 percent reported last year. </p><p>“Part of the reason why driver retention remains so positive among private fleets can be attributed to the fact that private fleets continue to be selective about their minimum driver hiring practices – 23 years of age and 2.5 years of experience,” NPTC said. </p><p>With shorter lengths of haul and better pay, private fleets should maintain an edge, according to the survey. NPTC also reported that driver pay at private fleets continues to increase, with average pay equaling $58,784 and the starting pay holding steady at just under $50,000. </p><p>With U.S. government regulations like CSA (<a href="http://csa.fmcsa.dot.gov/default.aspx">Compliance, Safety, Accountability</a>) pushing the industry towards better quality drivers, demand for the best drivers will increase. In addition to recruiting, driver retention is likely to be an important battleground in the years ahead. </p><p>To learn more about truck driving opportunities with <a href="https://www.penskelogistics.com/">Penske Logistics</a>, please <a href="https://www.gopenske.com/careers/">click here.</a> </p><p><em>By “Move Ahead” Staff</em></p></div>
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3PL
ata
bob costello
cdl
commercial truck drivers
commercial truck leasing
commercial truck rental
Compliance Safety Accountability (CSA)
CSA
full service leasing
industry trends
logistics
nptc
supply chain
third-party logistics
transportation
truck driver retention
truck driver shortage
truck drivers
Social Media Use Rising in Logistics
October 04, 2011
While Facebook and logistics are not two words often used in the same sentence, many third-party logistics companies are beginning to explore the use of social media tools for their companies, according to the 18th Annual Survey of Third-Party Logistics Providers. The survey was presented October 4 by its author Dr. Robert Lieb, professor of supply chain management at Northeastern University. The report was underwritten by Penske Logistics.
<p>According to the survey, third-party logistics providers are generally optimistic about the value of social media activities moving forward, in spite of the impact of these activities having been limited to date.</p><p>“Social media is still in its infancy in respect to this industry,” explained Dr. Lieb. “There are clearly many ways to implement social media that are currently not being widely utilized in the industry at this point. I believe we can be confident that social media tools will become more significant to the industry over next several years.”</p><p>LinkedIn proves to be the most popular tool for the leaders that were surveyed, as 64 percent of their companies have LinkedIn accounts. Forty-seven percent of companies have Facebook pages and 36 percent have Twitter accounts.</p><p>Similarly Penske Logistics, Penske Truck Leasing and Penske Truck Rental are all using social media via several social networks including its blog "Move Ahead", LinkedIn for product marketing, sales and recruiting, Twitter for media relations, customer service and recruiting and Facebook for special truck rental offers and promotions, as well as recruiting and news updates.</p><p><strong>Social Media 3PL Stats at a Glance</strong></p><p>The 18<sup>th</sup> Annual Survey of Third-Party Logistics Providers found:</p><ul class="ee-ul"> <li>64% have LinkedIn accounts</li> <li>47% have Facebook pages</li> <li>36% have Twitter accounts</li> <li>28% post videos on YouTube</li> <li>17% maintain blogs</li></ul><p><a href="https://www.gopenske.com/newsroom/2011_10_4_logistics.html">Click here </a>to view the entire news release on our website <a href="https://www.gopenske.com/newsroom/" title="Penske Newsroom">newsroom.</a></p><p><em>By Sabrina Michaeli, Porter Novelli</em></p></div>
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DOT Aims to Increase Safety with Cell Phone Restrictions
September 21, 2011
The Department of Transportation’s (DOT)Federal Motor Carrier Safety Administration (FMCSA) is currently reviewing comments on its proposed safety regulation that would prohibit interstate commercial truck and bus drivers from using handheld cell phones while operating a commercial motor vehicle.
<p>FMCSA already bans text messaging for all drivers operating a commercial motor vehicle. That rule took effect late last year, and in March DOT’s Pipeline and Hazardous Materials Safety Administration issued a final rule banning texting for intrastate haulers carrying hazardous materials. </p><p>The new proposed FMCSA rule would take texting bans a step further and prohibit commercial drivers from reaching for, holding, or dialing a cell phone while operating a commercial motor vehicle. </p><p>Drivers violating the restrictions would face federal civil penalties of up to $2,750 for each offense and disqualification of their commercial driver's license for multiple offenses. In addition, states would suspend a driver's CDL after two or more violations of any state law on handheld cell phone use. </p><p>Motor carriers that allow their drivers to use handheld cell phones while driving would face a maximum penalty of $11,000. Approximately four million interstate commercial drivers would be affected by the rule. </p><p>FMCSA said its research shows commercial drivers reaching for an object, such as a cell phone, while driving, are three times more likely to be involved in a crash or other safety-critical event. Drivers dialing a hand-held cell phone while driving increase their risk by six times. </p><p>Nine states and the District of Columbia already ban handheld cell use for all drivers (see map on right). </p><p>Several industry groups support the ban. <a href="http://www.truckline.com/Pages/Home.aspx">American Trucking Associations</a> told FMCSA it supports banning handheld cell phone use, but asked that FMCSA not prohibit drivers from reaching for a phone or pushing “a limited number of buttons in order to initiate a hands-free call.” </p><p>FMCSA said some of the nation’s largest carriers already have company policies that ban their drivers from using handheld phones. </p><p>FMCSA said nearly 5,500 people died and half a million were injured in crashes involving a distracted driver in 2009, the last year for which data is available. </p><p>Penske is a strong supporter of <a href="https://www.pensketruckleasing.com/safety/comprehensive-safety-analysis.html">safe truck driving practices</a>.<em> </em></p><p><em>By “Move Ahead” Staff</em></p></div>
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Penske Supporting Penn State’s Supply Chain Leadership Forum
August 10, 2011
Joe Gallick, a senior executive withPenske Logistics, will serve as guest program director for one of the nation’s leading university supply chain programs.
<p>The Penn State University <a href="http://www.smeal.psu.edu/cscr">Center for Supply Chain Research</a> is hosting the <a href="http://www.smeal.psu.edu/cscr/edop/sclf/sclfhome.html">Fall 2011 Supply Chain Leaders Forum</a> in University Park, Pa. from Sept. 7 to Sept. 9. It will examine the economics, outlooks and trends for global supply chains. </p><p>The invite-only forums are held to “foster peer-to-peer discussions of current issues dealing with logistics and supply chain management,” according to PSU. Collegiate and private sector experts will highlight pressing issues facing the industry.</p><p>The company’s senior vice president of sales, Gallick (right, speaking at an industry panel presentation) was the 2010 recipient of Penn State’s <a href="https://www.gopenske.com/newsroom/2010_8_2_gallick.html">Robert D. Pashek award</a> for his contributions to the logistics and transportation fields.</p><p>Penske Logistics regularly supports forums and industry research that promotes supply chain thought leadership and industry best practices. </p><p>This includes the company’s ongoing sponsorship of the Council of Supply Chain Management Professionals (<a href="http://www.cscmp.org/">CSCMP</a>) annual global conference and as well as underwriting CSCMP’s <a href="https://www.gopenske.com/newsroom/2011_6_15_cscmp.html">Annual State of Logistics Report®</a>.</p><p><em>By Alen Beljin </em></p></div>
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If I put myself in the shoes of a 3PL and read the recently published Council of Supply Chain Management Professionals (CSCMP) 22nd Annual State of Logistics Report®, my overall takeaway is this: Opportunity knocks.
<p>Manufacturers and retailers face many complex challenges in the years ahead:</p><ul class="ee-ul"> <li>Transportation infrastructures will be more gridlocked</li> <li>Fuel prices will remain volatile</li> <li>Customers will expect faster and more predictable lead times</li> <li>Aging populations will create labor constraints</li> <li>Mobile commerce will explode</li> <li>Global trade activity will grow, but so will its costs and complexities</li> <li>There will be more sources of financial and operational risk</li> <li>Sustainability initiatives will have greater influence on supply chain networks</li></ul><p>And the list goes on.</p><p>Unfortunately, many companies aren’t ready to address these challenges, and the old ways of doing things will not work. As Albert Einstein famously said, “The significant problems we face cannot be solved at the same level of thinking we were at when we created them.”</p><p>To succeed in this so-called “new normal” environment, companies need access to business intelligence information and tools to make smarter decisions faster. They need the ability to modify and enable new business processes, quickly and cost-effectively, in response to changing market dynamics and customer requirements. They must have flexible logistics networks to exploit new market opportunities and create a competitive advantage. They must take an end-to-end perspective of business processes—across functional groups and trading partners—instead of a fragmented view.</p><p>Companies will have to do all of these things and more. And 3PLs will need to support them, and in the best cases, actually serve as the catalyst for transformation and innovation.</p><p>This is the opportunity that knocks for 3PLs. Are they ready? And equally as important, are manufacturers and retailers ready to view 3PLs as long-term strategic partners, as sources of knowledge and advice, instead commodity suppliers of warehousing and transportation services?</p><p>And to borrow from Hillel’s famous saying, if not now, when?</p><p><em>By Adrian Gonzalez</em></p><p><em>The moderator for the State of Logistics Report presentation on June 15, 2011 at the National Press Club, Gonzalez is president of <a href="http://www.adelantescm.com/">Adelante SCM Corp</a>. </em></p></div>
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Rising Pump Prices Fuel More Gas and Diesel Thefts
April 19, 2011
Rising fuel prices for gasoline and diesel have made consumer and commercial trucks easy targets for crooks looking to steal fuel. One recent media report from Hickory, N.C. noted that over 400 gallons of gas, valued at nearly $2,000, were pilfered from the parked trucks of area businesses.
<p>Professional truck drivers and even consumer truck rental drivers in the process of moving should both take note of this trend – especially as both gasoline and diesel prices are <a href="http://www.eia.doe.gov/oog/info/gdu/gasdiesel.asp">forecasted to remain</a> at or near record highs. Penske experts Drew Parenti, vice president of security, and Ray Zale, security manager, are offering truck fleets of all sizes several handy tips to combat theft not only <a href="http://blog.gopenske.com/news/penske-introduces-alternative-fuel-station-finder-website/">fuel</a> theft, but the stealing of valuable truck tires, catalytic converters or other truck parts.</p><ul class="ee-ul"> <li>Ensure your location’s truck lots are well-lit</li> <li>Trim any vegetation back five to 10 feet on the outside of the lot’s fence line</li> <li>Always lock access gates, and use case-hardened locks when not in operation</li> <li>Avoid leaving trucks in unsecure locations during times of closure for prolonged periods of time</li> <li>If outside storage sheds are used at your facility ensure the doors are locked; possibly block the access doors with a parked truck</li> <li>When parking trucks that have brand-new tires, park them with vehicles tightly together to reduce access to both the tires and fuel tanks</li> <li>Always secure the cargo area and lock the cab of your vehicle</li> <li>Park your truck in well-lit areas whenever possible</li></ul><p>“It is important to take logical defensive precautions,” stated Parenti, who joined Penske last November following 26 years in the FBI, where he was most recently special agent in charge of the bureau’s Sacramento, Calif. office. “Thieves in this business are professionals, and they’re seeking to take items and resell them to interested buyers.”</p><p><em>By Alen Beljin</em></p></div>
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As Earth Day 2011 approaches, Penske Truck Leasing,Penske Truck Rental and Penske Logistics encourage everyone in the transportation and logistics sectors to consider joining the EPA’s SmartWay Transport Partnership to help further reduce fuel consumption needs and emissions.
<p>Fuel is one of the largest costs of doing business in our industry, and the emissions generated by burning fuel needed to deliver goods and keep our economy moving pose an important environmental and economic challenge. As anyone who runs a single truck or a fleet of trucks knows, diesel fuel and gasoline are <a href="http://www.eia.doe.gov/oog/info/wohdp/diesel.asp">once-again approaching record highs</a>, leaving many transportation companies looking for solutions to help reduce costs.</p><p>In a recent interview with “<a href="http://blog.gopenske.com/lease/as-diesel-prices-rise-truck-fleets-seek-solutions/" title="As Diesel Prices Rise Truck Fleets Seek Solutions">Move Ahead</a>” regarding the sharp run-up in diesel prices Bob Costello, chief economist and vice president for the <a href="http://www.truckline.com/">American Trucking Associations</a>, said: “diesel fuel is often the second-highest expense for many carriers, after driver wages, and depending on the type of operation, diesel can account for as much as 20 percent of operating expenses. This percentage can vary dramatically depending on the type of operation, the average length of haul, etc.”</p><p>One of the first simple steps any transportation company can take to help with fuel conservation is to join SmartWay, a unique public-private partnership, created by the U.S. Environmental Protection Agency (EPA). There is no cost to join and the benefits are numerous. Most useful are the quantification tools, guidance and assistance provided by the EPA to help truck fleets improve the efficiency of their operations.</p><p>These tools – designed with input from the freight industry – help to benchmark fuel consumption and emission rates for individual fleets <em>(</em>truckload, less-than-truckload, etc<em>.)</em> and truck improvement. Upon joining, you will be asked to complete the data assessment tool using basic operational data, such as fleet type, class and age, fuel use, idle times, number of miles traveled, payload, transportation modes and related information.</p><p>Once your data is inputted into SmartWay’s calculator tool, a series of calculations are run and a fleet is provided with an assessment that details fuel consumption patterns, CO2 and other air pollution outputs. The program also offers guidance on strategies for lowering fuel use and emissions, such as truck and equipment upgrades, modal shift alternatives, and others.</p><p>After completing the tool for the first time, fleets check in annually to update their operations data and check on the progress they are making to achieve their fuel-savings and environmental performance goals.</p><p><img class="rm-shortcode" data-rm-shortcode-id="9608f560cf6c722f50a31871feb02b86" data-rm-shortcode-name="rebelmouse-image" id="a4d03" type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTEyNjg2Mi9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyMTc2MTA5M30.iMVj07AzgUziq41b2XVwhLnfrZc2j1sSEKXSQ-AfwP0/img.jpg?width=980"/>For companies that achieve their goals and contribute to other elements of the SmartWay program, the EPA offers opportunities to participate in various program development activities, webinars, and workshops. The agency also acknowledges and publicly recognizes the progress its partners are making on its website, at industry conferences and through other channels.</p><p>Already, more than 2,700 organizations participate in SmartWay, including many of our customers. For those that haven’t joined, Penske invites you to check out <a href="http://www.epa.gov/smartway">EPA’s SmartWay website</a> to learn more about how you can start saving fuel, money and the environment.</p><p><strong>Industry Recognition</strong></p><p>Penske Truck Leasing, Penske Truck Rental and <a href="https://www.penskelogistics.com/">Penske Logistics</a> have been active participants in the SmartWay program since 2008 as affiliate, carrier and shipper partners in the program. Penske Logistics currently has the program’s <a href="http://www.epa.gov/smartway/transport/partner-list/index.htm#p">highest possible rating of 1.25</a> as a carrier and shipper partner.</p><p>In 2010, Penske was recognized as a Top 50 Green Supply Chain Partner by Inbound Logistics magazine. The magazine’s editors named Penske to the list for the approaches it takes to improve miles per gallon (MPG) performance and reduce emissions of its own truck fleet. Penske was also recognized for the strategies it applies in helping its own customers relative to fuel economy and also for its promotion and participation in EPA's SmartWay Transport Partnership with customers.</p><p><em>By Randy Ryerson</em></p></div>
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Higher Fuel Prices Persist
March 16, 2011
Last January, “Move Ahead” posted a piece titledAs Diesel Prices Rise Truck Fleets Seek Solutions. At that time we speculated a diesel price déjà vu scenario may be developing. Since our original post prices for on-highway diesel fuel and gasoline have continued to rise.
<p>Back in January, the U.S. Energy Information Administration (EIA) forecasted diesel prices would average $3.23 per gallon in 2011. However, EIA has since revised its forecast upwards. It now forecasts that diesel prices will average $3.81 per gallon in 2011 and $3.82 per gallon in 2012, respectively.</p><p>Bob Costello, chief economist and vice president at the American Trucking Associations has also revised his forecast. He now estimates the industry will spend over $130 billion on diesel fuel this year, which is $15 billion more than the estimate he provided back in January. “For many fleets fuel outlays have either caught or surpassed labor expenses,” Costello stated.</p><p>According to the EIA, the average price for on-highway diesel was $3.90 per gallon on March 14.</p><p>Here are a few fuel efficiency tips that can be adopted by truck fleets of all sizes:</p><ul class="ee-ul"> <li>Slow down, and reduce road speed</li> <li>Use cruise control when possible</li> <li>Avoid accelerating or decelerating too quickly</li> <li>Reduce engine warm-up time</li> <li>Limit your idle time</li> <li>Remain in top gear for as long as possible and get to your destination as quickly as possible</li></ul><p><em>By Randy Ryerson</em></p></div>
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As Diesel Prices Rise Truck Fleets Seek Solutions
January 07, 2011
“We are concerned over the run-up on diesel fuel prices,” stated Bob Costello, chief economist and vice president for the American Trucking Associations. “Diesel fuel is often the second-highest expense for many carriers, after driver wages, and depending on the type of operation, diesel can account for as much as 20 percent of operating expenses. This percentage can vary dramatically depending on the type of operation, the average length of haul, etc.”
<p><strong>Outlook for 2011</strong></p><p>As economic recovery continues Costello anticipates the trucking industry as a whole may be spending more for diesel than in recent years.</p><p>“We expect the industry to spend $115 billion purchasing diesel fuel this year, which will be the highest level since 2008 when the industry spent a record $143 billion. In 2010, we estimate that motor carriers paid $101 billion buying diesel,” Costello added.</p><p>The higher outlays for fuel expected this year are due to a forecasted increase in the price of diesel as well as better truck freight volumes.</p><p>“According to the Energy Information Administration, diesel will average $3.23 per gallon in 2011, up from $2.98 in 2010. The industry is expected to buy more diesel in 2011 compared with 2010 as the economic recovery continues and hopefully strengthens,” he said.</p><p><strong>Private Truck Fleets Make Moves to Control Costs</strong></p><p><img class="rm-shortcode" data-rm-shortcode-id="2fac326451927252c1570e3138ffbc4d" data-rm-shortcode-name="rebelmouse-image" id="c809d" type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTEyNjc5OS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYxNjA3NDM3Nn0.5wjqF2xi9zaU7lJ0jbnLi3QhDGTkEOnS86_eZZLQ7Go/img.jpg?width=980"/>While rising diesel prices are a sign the freight sector is improving higher fuel costs still remain an operating challenge for businesses operating truck fleets large and small.</p><p>The <a href="http://www.nptc.org/">National Private Truck Council</a> represents a wide industry cross section of the private truck fleets operating in the United States. Their members range from Fortune 500 companies to family run businesses.</p><p>“In response to the higher costs of fuel and new clean engines, private fleets are exercising greater management scrutiny and cost mitigation,” said NPTC President and CEO Gary Petty. “The key changes are company-mandated practices, driver financial incentives and onboard tracking technology. Examples of how savings are being realized are: directing drivers to take specific routes rather than permitting driver discretion in route selection; paying drivers more money to beat miles per gallon (MPG) targets; monitoring and correcting driver gear-shifting and idling practices which increase fuel consumption; setting maximum miles per hour (MPH) standards for each vehicle, and more aggressive load optimization programs to enhance productivity out of each run, every day.”</p><p>According to NPTC’s website, private fleets account for <a href="http://www.nptc.org/index.php?option=com_content&task=view&id=45&Itemid=87">82 percent</a> of the medium- and heavy-duty trucks registered in the U.S.</p><p><strong>Penske Can Help</strong></p><p><img class="rm-shortcode" data-rm-shortcode-id="e907e838f1946155c7051a2ecdbea568" data-rm-shortcode-name="rebelmouse-image" id="cdcfc" type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTEyNjgwMC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY2NjgwOTg2M30.5cHxUCWBZTO1nszh0UJyQSnMr5lwhGUEl8eWRxRmPxI/img.jpg?width=980"/>Penske Truck Leasing helps fleet owners and fleet managers with programs that can help with improving <a href="https://www.pensketruckleasing.com/maintenance/service-repair-shops.html">fuel efficiency</a> such as:</p><ul class="ee-ul"> <li>determining the <a href="https://www.pensketruckleasing.com/vehicles//">right truck</a> specs for the work your fleet is performing</li> <li>providing access to driver training programs and information focused on boosting MPGs</li> <li>setting and selecting the proper engine speed controls for your fleet</li> <li>leveraging <a href="https://www.pensketruckleasing.com/tracking-performance/">on-board fleet technologies</a> to track and improve route performance</li> <li>ensuring vehicles are properly maintained for optimal fuel and safety performance</li> <li>evaluating the replacement cycle for your vehicles</li></ul><p>For more information on these and other fuel-related programs please contact your local Penske Truck Leasing representative or go here to <a href="https://www.pensketruckleasing.com/request_info/index.html">contact us.</a></p><p><em>By Randy Ryerson</em></p></div>
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Discovery Forum Concludes Next Week in Ontario
December 06, 2010
The final stop on the Penske Truck Leasing Discovery Forum 2010 tour will take place on Dec. 14 in Mississauga, Ontario.
<p>Located near Toronto, Mississauga is Canada's sixth largest city, with a population nearing 730,000.</p><p>Space is still available for this free educational event, so please call 888-216-9365 to reserve your spot. Advanced registration is required.</p><p>Penske’s Certified Transportation Professionals and other fleet experts and key vendors and suppliers will be on hand during this educational open house to discuss a wide range of topics, which includes the latest engine technologies, <a href="https://www.pensketruckleasing.com/">preventive maintenance</a> programs, <a href="https://www.pensketruckleasing.com/teamlease/">finance</a> options and <a href="https://www.pensketruckleasing.com/tracking-performance/">onboard fleet</a> technologies.</p><p><em>By Alen Beljin</em></p></div>
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Penske Discovery Forum in La Mirada, Calif. A Successful Event
December 02, 2010
Penske Truck Leasing today hosted a Discovery Forum 2010 event in the L.A. suburb of La Mirada that was well attended and chock full of information.
<p>“Penske always puts on a great forum,” said John Blanco, a transportation coordinator for Goodwill Industries of San Diego County. “It was very informative.”</p><p>With new U.S. Federal Motor Carrier Safety Administration (FMCSA) compliance regulations changing how the government will measure and address commercial motor vehicle safety, Penske’s Rick Scott, a safety specialist, presented to customers and prospects the intricacies of <a href="http://csa2010.fmcsa.dot.gov/">CSA 2010</a>. CSA stands for Comprehensive Safety Analysis.</p><p>Ralph Stockmayer, manager of sustainability – sales for Penske, provided an update on 2010 engine emission technologies. He highlighted both Selective Catalytic Reduction (SCR) and Enhanced Exhaust Gas Recirculation (E-EGR) technologies in his presentation. Stockmayer noted in general that there’s been a significant reduction in Oxides of Nitrogen (NOx) since 1994.</p><p>Those in attendance also received information on the various <a href="https://www.pensketruckleasing.com/tracking-performance/">Fleet I.Q.</a> offerings, which included CyntrX and PeopleNet. They also learned more about <a href="https://www.pensketruckleasing.com/tracking-performance/myfleet.html">MyFleetAtPenske</a>, a customer fleet management solution, and <a href="https://www.pensketruckleasing.com/driver_training.html">Smith System</a> driver training. A representative from Volvo was also on hand.</p><p><img class="rm-shortcode" data-rm-shortcode-id="ddcad113647d04a9a8849f8cf17e35ce" data-rm-shortcode-name="rebelmouse-image" id="1a28b" type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTEyNjc4MS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyMjUyNzk4N30.pQrUSn04PgHKzrvBdLS6KdW3xn8_pqzcZ0DNBQpZcYE/img.jpg?width=980"/>Customers offered thoughts on the <a href="http://blog.gopenske.com/lease/penske-discovery-forums-continue-into-december/">Discovery Forum</a>.</p><p>Sal Lopez, fleet manager for American Textile Maintenance stated: “I wanted to learn more about the SCR technology and CSA 2010. I also wanted to network with other fleet managers and see how they’re managing their fleets.”</p><p>Aaron Blake is a distribution manager for a national restaurant chain with a fresh food facility in Ontario, Calif. “I wanted to learn more about DEF (diesel exhaust fluid).”</p><p>Bob Gilardoni, senior manager of fleet and compliance for Las Vegas LA Express “gained a greater insight into the differences of the two technologies on the engine side and which way we might want to go with future equipment.”</p><p>Rick Pytlik is the area vice president for Penske Truck Leasing, and he was very pleased with the turnout of approximately 150 people. “It is an opportunity for us to get together with our customers and our prospects,” he said. “In the changing world of transportation, it is important that we provide them with the knowledge to run their businesses.</p><p>“There is a lot of work that goes into these events, and our staff did a fantastic job. There were a few deals that were put together and finalized.”</p><p><em>By Alen Beljin, from La Mirada, Calif.</em></p></div>
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