• S.M.A.R.T. - Hit Object Crashes
• Trucking Market Looks to Tighten
• The True Cost of a Truck Claim
• Treat Service Failure as Opportunities
• Taking Control of Your Financing
• Real Consequences
• A Day Off
• Cement Your Value at Work 
 --------------------------------------------------------------------------------
 
S.M.A.R.T. - Hit Object Crashes 

Hit object crashes (i.e., backing into objects, striking objects during turns, etc.) are among the more frequent loss types a truck fleet will experience.  These collisions usually occur at low speeds and result in relatively minor damage.  These types of collisions often occur in truck stop and rest area parking lots or while maneuvering in/out of shippers/receivers docking areas.

Because of the minor amount of damage, often times these types of collisions are not treated as serious as other types of collisions.  However, these collisions can be an early warning sign of bigger, more serious collisions to come.  Each crash/collision that occurs, regardless of cost, should be thoroughly reviewed and investigated to determine if your driver could have prevented the collision.  If you would like further information on How to Determine Accident Preventability, please contact Great West’s Regional Safety Services office to receive a copy of the 1998 Fleet Safety Awards and Safe Driver Awards programs which are free to Great West insured customers.

Please remind your drivers at your next safety meeting or during individual safety discussions to follow the safe and proper techniques to prevent hit object crashes:

Make certain that mirrors are clean and properly adjusted.  Too often drivers forget to properly adjust and clean mirrors to gain maximum visibility.  It is highly recommended that fender mount or extension-mount convex type mirrors be installed on the tractor.  These mirrors have proven to be highly effective in improving the visibility to the forward sides of the tractor, especially on the right front area.

Make it habit to get out and look.  Before maneuvering your truck into a tight space - get out and look around the area backing or maneuvering into.  Walk around your vehicle, especially to the rear to get a complete picture. Check the road surface, note depressions, fixed objects, and possibility for pedestrian or vehicular traffic.  Check overhead and side clearances.

Use a reliable spotter or guide if at all possible.  Obtain clear understanding with the spotter on hand signals to be used.  Have him/her watch blind spot areas and stop pedestrian and/or vehicular traffic.  The spotter should stand in a safe area that gives you and the spotter clear visibility to the area you are maneuvering into.

Avoid parking too close to other trucks and/or cars at truck stops and rest areas.  Many hit object crashes happen when parked at truck stops or rest areas.  Try to avoid parking too close to other trucks or other vehicles at truck stops and rest areas.  If you must park close to other trucks, it is always a good idea to write down the company name and unit number of the truck parked next to you.  This will help in collecting damages should you discover your unit damaged after returning to your parked truck.  Collecting damages may be difficult but having a company name and unit number helps tremendously. 
 --------------------------------------------------------------------------------
 
Trucking Market Looks to Tighten

According to Robert Fiore, Vice President of Transportation Coverage Specialist, Inc., in recent months the trucking market has experienced what appears to be the start of a hardening trend.  Some major players have increased renewal pricing 15% to 20% and in some instances have non-renewed May and June accounts.  There is also evidence that some insurers are pulling out of the truck market altogether.

Tony Glotzbach, CPCU, United Brokers Insurance, a New Albany, Indiana, MGA that places trucking related risks in five states observes, “There seems to be a redefining of what insurance companies are targeting as desirable business.  They seem to be much clearer about what they want.  In addition, it appears that unfavorable loss experience is becoming a greater factor in the overall underwriting process.”

Glotzbach hasn’t observed a radical jump in pricing and finds insurers still hungry for premium and growth.  This view could be linked to the fact that coastal risks tend to bring up more concerns in regard to motor truck cargo going in and out of ports in Florida, New York, and California where United Brokers does not place trucking business.

One topic that both Fiore and Glotzbach agree upon is that the DOT (Department of Transportation) expects the trucking companies to operate safely.  The DOT has announced it will take action designed to reduce the fatality rate for commercial crashes by 50% within the next 10 years.  They plan to achieve this goal through stronger enforcement, greatly increased penalties for violations, a series of new regulations, and implementation of advanced technology.  The head of the Federal Highway Administration, Kenneth Wyke, said, “Those who disregard the safety regulations and endanger the traveling public will feel the full force of federal response.”

Recently is was announced that a device will be tested with truckers that will create a “rumble strip” sound if the driver falls asleep and nods off at the wheel.  The rumble strips placed on highways ahead of road work and toll booths have proven to reduce accidents.

- by Larry France, Rough Notes, Aug. 1999
 --------------------------------------------------------------------------------
 
The True Cost of a Truck Claim

Each Monday morning, I receive a list of all accidents that our insured have incurred the week prior.  Of these 12 to 30 claims per week the majority - 90% - could have been avoided with a few safety precautions such as:

Keeping A Proper Look Out - near exit/entrance ramps and lane changes and turns.  Know where the traffic is around you.

Getting Out and Looking - before backing into a dock or out of a truck stop.  Know who or what is next to you before you back up.

Leaving Appropriate Space - between your truck and the auto in front of you.  Maintain and adjust following distance particularly in high traffic areas and adverse weather conditions.

The true cost of an insurance claim is not only the insurance deductibles, but also items such as downtime, rental costs, and ongoing expenses.  The average claim costs a driver about $3,500, after all is said and done, in deductibles, expenses, and lost income.  A trucking company’s average profit margin, after expenses, is 2% - 5%.  With this in mind a trucker, even in the higher 5% profit bracket, will have to generate $70,000+ in revenue to compensate for the $3,500 loss.  As the claim costs increase, so does the need to generate more revenue to compensate for the loss.  With this in mind, it makes a whole lot more sense to take the time to operate safely and professionally and be aware of those around you than to take the attitude of - “that’s why I buy insurance.”  I have seen it time after time that the truckers making money are the ones operating professionally and avoiding lost income due to a claim.

- by Shawn Sullivan, President, Truck Writers, Inc.
 
 --------------------------------------------------------------------------------
 
Treat Service Failure as Opportunities

Truck driving involves so many uncontrollable situations, unforeseen road construction, other drivers, weather, and other potential delays.  Sometimes as hard as your driver tries, the load cannot be delivered on time.  Service failure can be a real test of your relationship with your customer.  The key is to handle them well so you strengthen the relationship.

Successful companies look for unsatisfied customers and welcome complaints.  This is the only way to learn and improve.  The first step is to call attention to the problem before the customer does.  As difficult as this phone call may be, you need to be proactive and show the customer you have control of the situation.  Resist the temptation to sugarcoat it or make promises you know are pushing reality.  Be honest and up front and explain the steps being taken to resolve the situation and get the load delivered.  Accept responsibility without reciting a litany of people or situation to blame.  Speed of response is essential. Studies show if a complaint is resolved quickly, 52% of dissatisfied customers will be repeat buyers.  Don’t offer compensation for the mistake.  Most people are more interested in knowing you care.
 
 --------------------------------------------------------------------------------
 
Taking Control of Your Financing

We know how difficult it is for some of you to get direct financing on your own to purchase a truck or trailer.  If the dealer is arranging financing, you don’t have many options in negotiating the best deal for yourself.  Chances are you aren’t even aware of the exact interest rate you will be paying on your loan.

Concept Financial offers you the ability to secure competitive financing.  We offer a competitive rate with our rate disclosed right on your loan documents, nothing hidden.  Our process is quick.  With our program you send in a credit application and we respond usually within 24 hours.

Take control of your financing.  By pre-arranging your financing, you have more control over the buying process.  No hidden charges.  Your financing deal is already up front and in writing.

Give Chris Johnson a call at 612-780-1527 (or email him at chris@conceptfinancial.com) about the purchase or lease of your next truck or trailer.  It will save you some of your hard earned money.
 
 --------------------------------------------------------------------------------
 
Real Consequences

A middle school in Oregon was faced with a unique problem.  A number of girls were beginning to use lipstick and would put it on in the bathroom.  That was fine, but after they put on their lipstick, they would press their lips to the mirror leaving dozens of little lip prints.

Finally the principal decided that something had to be done.  She called all the girls to the bathroom and met them there with the custodian.  She explained that all these lip prints were causing a major problem for the custodian who had to clean the mirrors every day.  To demonstrate how difficult it was to clean the mirrors, she asked the custodian to clean one of the mirrors.  He took out a long-handled squeegee, dipped it into the toilet and then cleaned the mirror.  Since then, there have been no lip prints on the mirror.
 
 --------------------------------------------------------------------------------
 
A Day Off

“Do you believe in life after death?” the boss asked one of his employees.

“Yes sir” the clerk replied.

“That’s good,” the boss said.  “After you left early yesterday to go to your grandmother’s funeral, she stopped in to see you.”
 
 --------------------------------------------------------------------------------
 
Cement Your Value at Work

Nothing is a given in the workplace.  If you want security in your position or if you want to move up, you’ll need to put into practice some habits that’ll solidify your standing. Some suggestions include:

Save money.  That is, save money for your company.  Check around your department or your position and find ways you can change the status quo to save money or make yourself or the department more efficient. 

Adapt, adapt. The most valuable player in the workplace is the person who knows how to roll with the punches.  Companies’ priorities can change rapidly; you should realign your own work systems to meet the changing demands.

Let your boss know.  It’s really not smart to wait for your supervisor to notice your good job or your efforts above and beyond the call.  Do it with facts.  A good way of letting your boss in on your accomplishments: schedule regular meetings in which you can keep him or her up to date on your work and successes.

Keep your own list of goals.  And reassess them regularly and often.

Be likable.  No one likes a sourpuss or complainer.  They’re often the first to be eyed when a company hits rocky times.  Meet expectations and foster good, professional relations with co-workers.