Transcript The Great Recovery…or NOT

The Great Recovery…
Or NOT
A Trucking Company’s Prospective
Harold Sumerford, Jr., CEO
J & M Tank Lines, Inc.
March, 2011
Major Issues Hindering Recovery
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Energy Cost
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Equipment & Component Cost
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Government Regulations and Laws
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Driver Shortage
Energy Cost
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Anybody's Guess?
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Increase in Fuel Prices
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Reconstruction of Japan
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Fuel is 33.7% higher than last year
Equipment & Component Cost
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Higher demand for metals to make equipment
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Truck cost increased about 30% since the 2007
EPA engines
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Increased Tire Cost
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Possible 20% increase this year
Low supplies due to the economy
Extreme weather & aging trees: limited supply of natural rubber
Tsunami in Japan shutdown many tire manufacturers
China buying a larger portion of the tire manufactured in China
Cost of natural rubber is up almost 100% since August 2010
Changes in Government
Regulations & Laws
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Highway Bill
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Truck Size and Weight
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Mandating Onboard Truck Technology
Changes in Government
Regulations & Laws
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Onboard Trucking Technology: People Net
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Enforcement of the Hours of Service
Inexpensive to use as compared to paper logs
Low cost of entry into an e-log system
One reason not to use the e-log: to run illegally
Changes in Government
Regulations & Laws
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FMCSA: Proposed Changes in the H.O.S.
◦ Trucking productivity would go down about 5%
◦ Cost to Shippers will increase probably 1% to 3%
◦ Driver pay will have to increase a minimum of $2,500
per year
Changes in Government
Regulations & Laws
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CSA 2010
◦ Drivers and Companies are held accountable
◦ Accident: Driver at no fault; score increase
◦ Pre-employment Screening Program (PSP)
 Help identify the problem drivers
 Probably force out more drivers than the CDL
program and Drug Testing
Truck Drivers & Capacity
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Driver Shortage
◦ Leaving industry during the recession
◦ Leaving due to CSA 2010
◦ Drivers’ pay down compared to other industries
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Trucking companies replenishing their fleets, not
increasing the size
Any Questions?
Harold A. Sumerford, Jr.
Chief Executive Officer
J & M Tank Lines, Inc.
7051 Meadowlark Drive
Suite 102
Birmingham, AL 35242
1-800-456-8265
www.jmtank.com