Focus on efficiency, maintenance deliver for Trucker of the Month

There are a seemingly infinite number of paths that might lead an individual to trucking. Parker, Colorado-based Alec Costerus may be as close as it gets to a unicorn in that respect. Costerus, owner of two-truck Alpha Drivers Transportation (ADT), came to the business first off in his late 40s, following graduation from college with chemical engineering and geology undergraduate degrees, then pursuit of an MBA in finance. He worked in the late 1990s and the early 2000s in the financial sector as a commodity trader in the electricity and natural gas industries.

Alec CosterusDuring his time doing that, he witnessed the collapse of Enron and ensuing scandal and decided he “didn’t find that the ethics and the morals and the whole environment meshed with my own personality and my motivation,” as he put it.

His next pursuit, financial services, also left him with a bad taste in his mouth.

“I thought, ‘You know, I don’t think I really want to work for other people anymore because I can’t trust them,’” Costerus said. “And that’s how I ended up getting into trucking back in 2010.” His reasoning: “OK, I can get my CDL, I can be the master of my own universe without having to deal with people whose ethics and financial savviness didn’t comport with mine.”

He worked as a company driver to get two years in before he was able to buy his own truck and lease to Landstar. He stayed with Landstar for eight years before he came off the road. 

He paused his career in November 2020 because of a genetic mutation that was going to require a kidney transplant. “I parked the truck, and I sold the truck and trailer at that time because I knew I was not gonna be able to drive for a while,” he said.

With a family history of kidney transplants, Costerus and his doctors determined that his family has a rare genetic mutation that affects only about 200 families in the United States.

“Unfortunately, this genetic mutation is 100% fatal in the absence of getting a [kidney] transplant,” he said. He got on the transplant list and went to work for the U.S. Postal Service in Denver, ensuring he’d be close to home when he got the call. It duly came, in December 2021.

Since that time, he’s gone full-bore back into trucking, partly behind the wheel. Operating with authority, two-truck Alpha Drivers Transportation’s origins trace back to Costerus’ relationship with then-company driver Joel Morrow. He and Morrow hadn’t met in person when, before he came off the road, Morrow had recommended him as a potential member of the PedalCoach ambassador team based on Costerus’s approach to efficiency behind the wheel. PedalCoach is an app from the LinkeDrive company that “shows drivers how they are performing from a fuel efficiency standpoint in real time, helping them make changes in the moment to reach peak performance levels,” the company says.

Morrow and Costerus were later introduced through PedalCoach, and during corresponding medical time off the road for both men, the pair devised a plan to launch their own trucking company, Costerus’s second. Morrow’s Volvo is one of two trucks that make up the ADT fleet today, the other piloted principally by Travis Lauer. Costerus himself has been back behind the wheel plenty since returning to the trucking business, but today focuses squarely on managing the business from the back office, pulling only occasionally when Morrow or Lauer are sidelined and there’s a customer need.

Costerus and Morrow also run a consulting business, Alpha Drivers Testing and Consulting, focused on working with truck manufacturers’ engineers, Volvo’s in particular, to improve fuel mileage and other operations of their own trucks, providing an example for others around the business for ways to improve.  

Costerus’s perseverance, history as an owner-operator and ongoing work as small fleet owner and trailblazer increasing operational efficiency earns the owner Overdrive‘s Trucker of the Month nod for May, putting Alpha in the running for the 2024 Trucker of the Year honor. 

Overdrive‘s 2024 Trucker of the Year program, sponsored by Commercial Vehicle Group and Bostrom Seating, recognizes clear business acumen and unique or time-honored recipes for success among owner-operators. Through October, we’re naming Truckers of the Month to contend for the Trucker of the Year honor. Finalists will be named in December, and a winner crowned early next year. Nominations continue to be sought for exceptional owner-operators, whether leased or independent, throughout the year. Nominate your business or that of a fellow owner (up to three trucks) via this link for a chance to win a custom replica of your tractor and a Bostrom seat from Commercial Vehicle Group, among other perks.

A second chance at trucking, with new focus

Alec Costerus and Joel Morrow, frequently in touch during both men’s health struggles away from the road, led the former to an awareness that, simply, they could probably work well together, too.

“Where he’s a genius on some technical issues,” he said about Morrow, “he was, shall we say, lacking in some other areas.”

As most geniuses are, Costerus quipped. “So I’m pretty adept on the business side, data organization and so on. We thought, ‘OK, if we do this and come together, I can run the office, all the back-office type of things. He can focus on the technical side of things as well as delivering freight.”

They formed two companies — Alpha Drivers Transportation, the trucking company, and Alpha Drivers Testing and Consulting, which works with OEMs.

The trucking company started with just one truck and one driver — Morrow — before they brought on a second, Travis Lauer, to team with Morrow while he was trained on how to get the most fuel mileage out of a truck and the rest of the business. That first Alpha truck, nicknamed “Purple Haze,” is a 2023 Volvo VNL 760 set up with a 6×2 configuration with a pusher axle — Costerus wrote about its achievements in a contributed story that saw light just several weeks ago in Overdrive‘s Extra blog and Voices section featuring perspective from around trucking.

He lauds Morrow’s “understanding of what’s happening mechanically in the truck, and leveraging kinetic energy, as well as the gear loading and so on.” With that, Alpha is able to achieve some of the “highest fuel economy in the world” seen from a Class 8 tractor hauling freight, he said. “We work backwards, kind of reverse engineering, if you will, to make the truck do all of those things more automatically. So hopefully everybody can get 10.5 or 11 miles to the gallon over the truck’s lifetime.”

Data from the Let’s Truck FuelGauges software Alpha uses to track efficiency and expenditures shows a lifetime 10.4 miles per gallon mark for “Purple Haze,” driven by Morrow. That includes 10.52 miles per gallon on 108,888 miles driven in 2023.Alpha Drivers | Facebook

After running team with Morrow for a spell, Lauer took over driving “Purple Haze” on his own, while Morrow was recently placed in a new truck, a 2024 Volvo VNL 760 with a 6×4 configuration, nicknamed “Boo-berry,” bringing the small fleet’s total to two trucks.

Now, Morrow and Lauer are each training new drivers who currently have their commercial learner’s permits. Later in the year, Costerus expects to take delivery of a brand-new VNL. Morrow will pilot the rig to bring the fleet up to three trucks.

“We’re a little bit in flux,” Costerus said. “As you probably know, it’s not just putting any driver in the seat because that’s not really what we want. We want a smart driver. So we decided that it’s probably a better route for us to train our own drivers organically rather than hiring an experienced driver and then have to retrain them to drive smart.”

[Related: Quick spin: ‘Beginning of a new era’ with the revamped VNL]

Pay for all time

“Boo-berry” is a 2024 Volvo VNL driven by ADT driver and co-owner Joel Morrow. It’s been on the road in the fleet for about 2 months.

Costerus pays himself and his drivers on what he calls one of the most progressive pay schemes in trucking. An advocate for paying truck drivers for all of their time, ADT’s employees are paid an hourly rate for all hours worked, from the time the driver goes on-duty for the pre-trip until off-duty after the post-trip.

“He’s working, he’s away from home, he deserves to get paid,” Costerus said. “It doesn’t matter if he’s driving or not.”

On top of the hourly rate, ADT offers compensation for productivity, too, with miles pay rates based on experience. 

“I think we respect the driver’s time,” he said. “And if you put zero value on a driver’s time, there is no incentive for anybody — the carrier, the shipper, anybody — to hurry up and load that truck. So that’s, to me, a fallacy. That’s something that ought to be fixed. But in the meantime, we pay our drivers the way they should be paid.”

And because the company pays on a two-week cycle, and “it’s not uncommon to have 100-plus hours during that two-week period,” the company pays time-and-a-half overtime pay for all hours worked over 80.

ADT benefits include a platinum medical insurance plan, dental and vision insurance, and a 401(k) with a company match.

[Related: Surprise, surprise: Why ATA opposes overtime pay, and why they’re wrong]

Given the company’s trucks are on the newer side, maintenance focus is entirely preventive. Purple Haze features a five-gallon external bypass oil filter on the back of the cab, which allows the truck to run a very extended oil drain interval — only changing the oil about once a year on over 100,000 miles.

Costerus also has his drivers use Hot Shot’s Secret additives where and when they are needed — the Stiction Eliminator once or twice a year to keep the oil clean, Diesel Extreme to keep the injectors clean, and Everyday Diesel Treatment with every fill-up. They also clean the crank position and boost pressure sensor, among others, to proactively “to keep everything running … optimally,” Costerus said.

During approximately every other 34-hour reset, somebody is getting under each truck to “just make sure that we’re not missing something. We’re pretty proactive about it,” Costerus said. “That’s because A) that’s the way Joel [Morrow] is, and B) it just makes sense to make sure, and I think we get a return on that extra maintenance by ensuring that the truck is in top condition.”

The company’s keen focus on fuel mileage and preventive maintenance has allowed it to keep operating costs generally low; however, much of the business’ revenue is allocated to wages and benefits. The company is debt-free, having paid cash for both trucks.

In addition to saving money on fuel through the operation of the trucks and achieving high fuel mileage, the company also utilizes the National Association of Small Trucking Companies’ fuel discount program. In April, Costerus noted, that program delivered 57.8 cents per gallon in savings on fuel purchases.

[Related: In a tough trucking-business environment, owner-operators must improve efficiency to compete]

Dedicated power-only keeps freight on the hook

Enter your business in Overdrive‘s Trucker of the Year competition for a chance to win a seat from program sponsor Bostrom Seating, among other perks and prizes.For the first year-plus of Alpha Drivers Transportation having its own authority, they company had a dedicated account hauling furniture all across the country. Now, Morrow and Lauer are primarily pulling power-only drop-and-hook freight for ArcBest (Morrow) and Schneider (Lauer) on some dedicated lanes.

Heather Boone, a Landstar agent and owner of Boone Enterprises LLC, has worked extensively with Costerus and Alpha Drivers Transportation through the years. Costerus pulled “loads for one of my really good customers,” Boone said. “They have very time-sensitive freight, and their shipments are far more detailed. His services are many levels above most everybody you’re going to find. Alec is very, very intelligent, so it’s always truly a pleasure to work with him.”

She added that Alpha Drivers “is a company that you would put on all of your high-end shipments and products… Alec is one of those people that we’re always just lucky to get, and those people are few and far between.”

Both Morrow and Lauer are based in Ohio, so their preference is to stay east of the Rockies for the most part. When Costerus gets behind the wheel, his preference, based just outside of Denver, is to run the West Coast. Lauer typically stays out about two weeks at a time, while Morrow “will go as long as he can, pretty much,” Costerus said, depending on the available freight.

The goal is for each truck to average about 120,000 miles a year.

[Related: ‘I just love it out here’: Joy, exacting analysis deliver Trucker of the Month Gary Schloo’s success]

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Who is really hauling all the cheap freight? Truckers weigh in

With national average spot van rates hovering at or under $2/mile for the last three months in a row, Overdrive asked readers for answers to the question on every owner-operator’s mind: Who is hauling all this cheap freight?

Ultimately, “cheap freight” is a loaded phrase in and of itself, and truly “in the eye of the beholder,” as they say. $1.75/mile might not seem like a good rate for most owners, but what if it’s a load out of Miami that takes you right smack dab to an origin point where $3/mile loads are common? Or what if it takes you to your own doorstep?

We didn’t quibble much over a universal definition of “cheap freight,” with the questions rather focused on loads at the edge of, or below, profitability goals. That’s what we mean when we invoke the term throughout the rest of this report, showcasing recent survey results from nearly 600 respondents.    

The American Transportation Research Institute’s most recent Operational Costs of Trucking report put carrier costs at $2.25/mile, based on 2022 data, passing $2/mile for the first time ever in the history of the report. The average cost of trucking for small carriers, specifically, sat even higher at $2.30 — costs are inclusive of pay to the truck operator. These are somewhat older numbers, and not a perfect measure (we sure hope your own are lower today; for tips on getting cost in control them read Gary Buchs’ latest on fighting “cheap freight” one load at a time). But based on these benchmarks, it sure does look like there’s a whole lot of cheap freight out there today. 

With the first question, we asked independent owner-ops and small fleets to take a look in the mirror, so to speak:

As results show, a majority of respondents admitted to taking it on the chin with an unprofitable load at some point or other, an honest 14% noting though that hauling at unprofitable rates wasn’t the intent when the load was negotiated. For another 6%, though, with an outright confession, running at a loss is a frequent occurrence.  

A tiny 1% noted they were “not sure,” but if you’re really not sure if you made money on a load, is it likely you did?

In any case, it’s fairly obvious the “say no to cheap freight at all costs” camp, whether by virtue of circumstance or will, is in the minority here. No surprise, maybe, that the majority of carriers admit to sometimes hauling for cheap.  

The real question came next: Why?

Here, we begin to get the real story.

When ‘cheap freight’ stops being cheap

The most commonly cited reasons for running at a loss were geographical, with “cheap freight” chosen to get to a better-demand area or home most often. Add the “More than one of the above” choice and geography might account for close to 80% of the total vote. 

Commentary accompanying this question illustrated various reasons behind unprofitable trucking.

“We average our rates over the course of a trip,” said one commenter. “Our outbound loads pay more than double the market rate. Therefore, we can afford to take a load back to our dedicated shipments without losing money. Plus, we have no debt and we don’t factor. So our cost per mile is less than most out there today.”

It seems “cheap freight” stops being cheap when:

1. It’s on your way,
2. It gets you to a better lane, or …
3. Averaged with the “head haul,” you still come out on top. 

Another commenter seems to refute that notion: “I’ll run home empty before I participate in that kind of thinking. It simply perpetuates a broken industry by running for nothing. It lowers the bar.”

Similarly, this commenter urged small fleets and owner-operators to consider the wider impact of load choices: “All those irrational arguments are just brokers’ way to negotiate very low and unfair rates, which is violating one of the most important values of any business, ‘social responsibility.'”

[Related: Words to truck by: You will ‘never, ever come out ahead running at a loss’]

A lot of the talk makes a big assumption — that a carrier knows its true cost at the time of booking. Sometimes, though, it’s the carrier’s knowledge — or lack thereof — that yields a revenue shortfall, as one commenter wrote of their close brush with a money-losing oversize move: “Not doing my proper research about cost of oversize permits and number of escorts and police escorts the state was going to require.” 

So how do these carriers hauling all these unprofitable loads stay in business? (Remember, only about a third of respondents admitted to hauling cheap freight more than a time or two.)

Our last question asked for owners’ impression/opinion of any carrier routinely running at or close to a loss. Here’s how the results shook out. 

Some owners took a more sympathetic view, with 15% acknowledging the lengths to which many will go to get through hard times without losing everything. A downright optimistic 13% flagged the role of efficiency in competition: A truck that gets 10 mpg will run for less than a truck getting 6. 

Good point — our May Trucker of the Month Alec Costerus and the Alpha Drivers Transportation two-truck operation exemplify this strategy with fuel efficiency near doubling the average Class 8.  

A final 5% of respondents chimed in with write-in responses. Some blamed foreigners or “visa drivers.” Some blamed the government. 

“Those carriers are supported by the government, and it needs to stop,” one wrote. “CDLs shouldn’t be given out like candy. Safety and quality of life is compromised.”

Others blamed large fleets putting the squeeze on owner-ops. 

“Last man standing who has deeper pockets, or is more efficient, or both,” wrote one, summing things up. 

[Related: Fuel mileage gains, business prowess power Trucker of the Month Alec Costerus’ Alpha Drivers Transportation]

Among plenty of broadsides against foreign or immigrant drivers and the government, some took on a tone of personal responsibility. 

“Almost every owner-operator in my segment of trucking that I’ve asked what their cost-per-mile to operate was looked at me as if I were growing a third eye right in front of them,” one wrote. 

One pointed to the Federal Motor Carrier Safety Administration’s broken registration system, and a general lack of enforcement of rules in place: “I think there is a very real probability that because FMCSA does not enforce the rules currently on the books pertaining to carriers and their legitimacy, as well as driver accountability, there are a lot of illegally operated trucks moving freight for any rate as part of a much bigger illegal enterprise.”

There was plenty more blame to go around, too: “Some of these guys have no health insurance, live in their truck and drive crap equipment that is paid off. … Oh and the companies insure one truck but they run 10.”

Many called for brokered-transaction transparency, at the center of perhaps the hottest debate now in trucking. Owner-operators pushing transparency enforcement or new automated-disclosure mandates believe opaque broker practices push down rates, and that those cheap rates ultimately impact safety, reflected in substandard equipment and safety practices seen.

One commenter summed it up this way: 

“We see these operators on the road every day — bald tires, broken mirrors, bumpers hanging off, leaking oil faster than they can put it in. That is what you can see at 65 mph. What about brakes, suspension, steering components? That is the true cost of low rates: no maintenance. As an example, how many guys parked their trucks, ran nights or back roads to avoid scale houses during this past blitz week? Why?”

In the final analysis, you don’t need to know the whole story of what every other carrier is doing. As plenty commenters also suggested, one man’s cheap freight is another’s profitable load. The best defense against running in the red becomes knowing your own numbers. If, on top of that, you can improve efficiency to get your costs down and really see the results, then cheap freight stops looking so cheap.

[Related: Calculate any load’s cost in relation to time, not just miles]

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Continuous safety training key to preventing forklift accidents, expert says  

In his 42 years of industry experience, Richard Sinclair, a technical trainer at Hangcha Forklift Canada, has seen it all.

He even testified as a witness in court cases about fatalities in forklift-related incidents. He has seen a foreman sticking his head out of a forklift to yell at a truck driver who got his head struck by a moving truck.

“He [saw that a truck] was going fast enough, and he was gonna give crap to the driver. Well, he gave crap, alright. He died,” Sinclair recalls. He also remembers seeing a forklift operator getting off a forklift while it was still running, leading to the machine running over the operator’s foot, causing injury.

Sinclair has seen employees pressing charges against negligent managers who forced them to work in unsafe conditions, too. In one case, an operator’s hand got stuck in a motor. In another, an employer’s negligence led to a man dying while working on a forklift.

“One of my guys [that] I used to train; he wanted a job. So, he went to this chemical company,” Sinclair recalls. “He says, ‘Rick, I’m really scared. I’m working there, and he doesn’t let me use the right tools. He’s pushing me.’ I said, ‘Take your time. It is dangerous working on a forklift.’ So, they made them get onto a Raymond forklift with a bunch of masts. ‘You’re going to replace those hoses, at that step ladder up, on the thing, not tied, not proper equipment.’ They give him the steel piece to brace in between sections. The thing came down, and he died there.”

Under OHSA, when cases like this – both injuries and fatalities – happen, employers can be fined up to $500,000 per person or $2 million for a corporation and/or be imprisoned for up to a year.

According to the latest data from the Association of Workers Compensation Boards of Canada (AWCBC), 2,171 loss-time injuries and seven fatalities involving plant and industrial-powered vehicles and tractors were recorded across the country in 2022. Of those, almost 700 cases (32%) and two fatalities happened in Ontario, with Quebec and British Columbia not too far down the list.

According to AWCBC, some of the most common injuries amongst employees in transport, equipment operators, and related occupations in the transportation and warehousing sectors were traumatic injuries to muscles, tendons, ligaments, joints, bones, nerves, spinal cord, and more.

But nine out of 10 forklift-related accidents in the warehouse, at the dock, or in the yard can be prevented by sticking to proper safety protocols and not cutting corners, Sinclair told TruckNews.com in an interview dedicated to a 2024 National Forklift Safety Day.

It’s taking place on June 11 and is hosted by the Industrial Truck Association, which represents industry manufacturers of lift trucks, tow tractors, hand-pallet trucks, and automated guided vehicles throughout North America.

Reflecting on decades of experience, Sinclair attributes most incidents to lack of safety adherence and rushing to get the job done. He shared tips for lift trucks operators, warehouse managers, and truck drivers – those operating built-in Moffett forklifts and those delivering loads to the docks – that will help enhance safety and prevent accidents.

“Every accident is preventable. [If it happens], you did something wrong. You didn’t do your maintenance, or you went too fast, or you cut corners. Every accident is preventable [unless] you didn’t follow the law somewhere. You didn’t do something right.”

To those who skip steps to increase productivity, he says that when everyone knows their job and does it properly, there is no need to rush as the operations function properly and on time as is. Cutting corners, creating hazards, and dealing with fatalities and injuries are, in fact, productivity’s enemies.

Onboarding safety training, refreshment courses

When new operators get hired straight out of training, it is important to do the onboarding training and test their knowledge, Sinclair says, referring to the fact that some training academies do not provide proper training. The most common mistake he sees in newbies is neglecting basic safety, like not wearing belts or getting in and out of the forklift the wrong way.

At Hangcha Forklift Canada, operator onboarding is recommended to last two days. He says on top of written tests newcomers are asked to load and unload in front of the trainer, and they are asked to inspect the forklift, the load, and operators are often given ‘trick loads’, too. Those might be off-center loads, boxes falling apart or not strapped properly, unbalanced loads, and other hazards that can lead to accidents, including forklift rollovers.

“We see if they even try to pick it up,” says Sinclair, adding that learning on the “worst loads” to deal with is most effective.  

He also adds that employees have to be trained on what to do in case the accident does happen. This involves knowing the action plan, being ready to assess the situation, and provide first aid if needed, as well as filling out paperwork post-accident.

Yearly refreshment training is necessary, too.

“Check the air quality. It costs nothing.”

Many overlook the process of assessing the air quality in the trailer, Sinclair says, emphasizing the importance of this aspect as lift truck operators can get dizzy and lose consciousness.

For example, all of the Hangcha products get delivered in a container from China, traveling a lengthy path all the way to Canada. So, before unloading, they put a two-foot fan on wheels inside which blows the ‘bad’ air out with high-capacity air for around 20 minutes, which also helps with lowering the temperatures and preventing workers working in the heat. 

After, the space has to be checked again with an air quality monitor. He also says air quality can be particularily an issue when transporting meat and poultry – even in reefer trailers.

Safety breach protocols

If the supervisor catches employees not following the company’s established safety rules, they can be suspended from work for a day without pay, Sinclair says, adding this is an effective way to teach the importance of safety to employees. He also says that lunch breaks at Hangcha are mandatory for employees.

“Some say, ‘I won’t take lunch [and] I’m going to finish early.’ This is the issue we’re having today [in the industry],” he says. “This is a no-no because then you’re weak. You’re not productive. You’re not being safe now. You’re losing your energy.”

Employees have to agree upon other important safety-related obligations while signing the contract. This includes having enough rest before operating heavy machinery and reporting if they are feeling unwell or might be drowsy or weak because of the medications they take. Sinclair says there is always a risk that prescribed medication can interfere with one’s reflexes and concentration.

“Let’s say you got a wicked migraine. You’re taking a pill. Then no, your head’s not there. You can’t operate, and we have in our [contract], you’re supposed to say, ‘I’m on medication.’” This relates to any other medication that has a sedative effect, like Ativan, for one, that is known to reduce anxiety and is also prescribed to people with hypertension. The same rule should be applied to marijuana use, he adds.

Truckers’ responsibilities

However, following forklift-related safety protocols established in a warehouse relates to truck drivers, too.

Sinclair says that while the trailers are loaded or unloaded, the driver is supposed to be out of the truck waiting in the designated area, especially if they do not have the required safety equipment like goggles, vests, and protective footwear. Waiting outside of the truck can prevent accidents, including the truck leaving prematurely and creating a gap between the dock and trailer, causing a forklift and its operator to fall down.

To prevent this, Sinclair says the truck has to be off at all times, the wheels have to be blocked, and dock locks installed. He adds that no work should be performed on the truck or trailer while loading or unloading is in process. “Often, you’ll see in warehouses that they’re trying to repair the tire as they’re loading the trucks. That’s a major no-no.”

Mounted forklifts

But trucker’s responsibilities do not end there, especially for those who operate forklifts mounted to their trucks, like Moffetts. Sinclair says those tend to be the most poorly maintained trucks as the challenge lies in such trucks being subject to harsh conditions and demanding schedules.

“Those skip and do one maintenance per year,” he recalls from experience, adding that the environment where these trucks operate can cause parts like cylinders and chains to wear out faster.

“Make sure that maintenance is done every 200-300 hours. Be vigilant, check for salt buildup [and] oil leaks,” Sinclair says, advising drivers to include those checks in the pre-trip inspections.

In general, he says, the safe operation of any forklift goes back to basics – using the right type of forklift suitable for the environment and following the manufacturer’s recommendations regarding use and maintenance.

When it comes to operator safety, Sinclair urges them to exercise their lawful right to refuse to perform a task if they feel they are not prepared for it or if a safe environment and proper tools or lift truck were not provided by the employer.

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Stellantis Loses Another Executive Amid Slow Sales

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Jim Morrison, former U.S. head of the Jeep and Ram brands, has left Stellantis NV, adding to a string of executive departures as the automaker grapples with swelling inventories and sluggish sales in North America.

Morrison, a Canadian who worked at the carmaker for three decades, including 15 years leading the Jeep SUV and Ram truck brands in North America, retired at the end of May, according to a company spokeswoman. Since November, Morrison had been in charge of a new Jeep performance parts unit after Stellantis installed William Peffer, the CEO of the Maserati brand in North America, as head of Jeep.

Morrison is the latest in a stream of senior executive departures at Stellantis in the region.

Tim Kuniskis, a 32-year veteran who was the longtime leader of its Dodge muscle car brand and also led the Ram marque, retired last month. Jason Stoicevich, the senior vice president of retail sales who had tried to mend frayed relationships with U.S. dealers, also left recently. Mark Stewart, who served as chief operating officer for North America for five years, left last year to head Goodyear Tire & Rubber Co.

The leadership overhaul comes at a complicated time for Stellantis. It’s seeking to engineer a sales turnaround after higher borrowing costs triggered a shift from pricey SUVs and trucks to more budget-friendly options and sedans, hammering demand for its Ram brand vehicles.

Meanwhile, shares have struggled to regain ground since tumbling 10% on April 30 after the automaker warned that slowing demand will continue to squeeze its margins in the coming months.

Morrison’s departure was reported earlier by Automotive News.

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FHWA Chief Touts Emerging Transportation Technologies

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WASHINGTON — Adopting emerging technologies across the transportation landscape will improve safety for commuters and the freight sector, the nation’s top highway director said, as stakeholders look to decrease traffic fatalities.

Federal Highway Administration leader Shailen Bhatt pressed federal lawmakers to consider a vast portfolio of applications designed to enhance safety along commercial and passenger corridors. “One of my frustrations in transportation is — ever since I’ve been in transportation — we’re all saying, ‘Let’s get toward or get to zero deaths.’ And for all of my time in transportation, we’ve gone the wrong way,” Bhatt told reporters after a congressional hearing this month.

The administrator pointed to Congress’ role in improving safety on the country’s roadways, and highlighted National Highway Traffic Safety Administration data that estimated nearly 41,000 fatalities occurred in 2023. “We’re starting to see some cautious optimism,” Bhatt explained. “But zero deaths is our goal. And I’m just a firm believer that, if we are courageous in our deployment of things like technology and a ‘Safe System’ approach, we’re going to be able to get there. But we can’t wait decades. We’ve got to get there sooner.”

Per the U.S. Department of Transportation website, a “Safe System” approach to roadway safety integrates the needs of all users, anticipates the possibility of errors by drivers and other road users, and manages crash impact forces to levels tolerable by the human body. It includes five elements: safe road users, safe vehicles, safe speeds, safe roads, and post-crash care.

Transportation leaders on Capitol Hill plan to draft multiyear highway policy legislation as early as next year. Promoting new national safety standards and guidelines will be central to that measure’s objectives. Such policies would build on programs advanced by the $1.2 trillion Infrastructure Investment and Jobs Act of 2021.

“Last year 40,990 people died on roads in the United States. … it’s a tragic number, especially for all of those who lost loved ones,” Sen. Ted Cruz (R-Texas) said during a hearing last month. He is the top Republican on the Commerce Committee on freight policy.

“There are many reasons that go into this,” Cruz went on, “one of which is lack of adequate infrastructure, lack of sufficient freeways, lack of sufficient space that creates more traffic.”

Prominent national stakeholders continue to call on Congress to adopt policies associated with the deployment of safety technologies and infrastructure initiatives.

Jake Nelson, director for traffic safety advocacy and research at the American Automobile Association, recently told senators the organization “believes that state and local transportation leaders would benefit from more guidance and technical assistance relative to the appropriate outreach, education, solicitation of input, and adoption of local preferences for infrastructure investments made where they live.

“To ensure that community residents are the same people who benefit from this historic congressional investment in roadway safety, careful attention must be paid to garnering local support for the infrastructure-based solutions to the safety challenges that exist locally,” he continued. “This front-end work will help drive greater demand for current and future investments made possible by Congress.”

The “Safe System” approach advances the concept that “humans make mistakes and that human bodies have limited ability to tolerate crash impacts,” according to FHWA.

“In a ‘Safe System,’ those mistakes should never lead to death. Applying the ‘Safe System’ approach involves anticipating human mistakes by designing and managing road infrastructure to keep the risk of a mistake low; and when a mistake leads to a crash, the impact on the human body doesn’t result in a fatality or serious injury,” per background information the agency published online this year. “Road design and management should encourage safe speeds and manipulate appropriate crash angles to reduce injury severity.”

The Biden administration’s Vision Zero campaign seeks to reach zero traffic fatalities by 2050.

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Class 8 Truck Orders Increased 50% Year-Over-Year During May

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North American Class 8 truck orders continued the trend of year-over-year gains in May, according to ACT Research.

ACT preliminary data showed orders increased 49.7% to 23,200 units from 15,500 during the same period in 2023. They also increased 48.7% sequentially from the 15,600 units reported the previous month. Every month this year has seen a year-over-year increase except March.

“Market observers may recall that demand typically slows in Q2,” ACT Research Vice President Steve Tam said. “However, surprises are always lurking. Class 8 preliminary order intake provided May’s drama, effectively zigging when they were expected to zag.”

Tam added that order activity was impacted amid ample open build slots in the third and fourth quarters and truck manufacturers trying to get into balance for impending pre-buy.

[June State of the Industry: Classes 5-8 Vehicles Preliminary Update] – Preliminary Class 8 Truck Net Orders Jump in May, Beating Expectations

Read more here: https://t.co/891OVkGUrk#truck #semitruck #trucking #transportation, #Class8, #ACT, #ACTResearch pic.twitter.com/caUBOPEg5B

— ACT Research (@actresearch) June 5, 2024

“While we do not have complete visibility at this point, the strength is presumably driven by private and vocational fleets, supplemented by an ongoing healthy appetite for equipment in Mexico,” Tam said.

FTR Transportation Intelligence issued a report that said Class 8 preliminary net orders for May came in at 18,900 units, which is up 25% month-over-month and 37% year-over-year. The report noted this level of orders is above recent demand trends and the average over the past decade for May. It concluded that this level further abates rapid demand decline concerns.

“OEMs are actively filling build slots at a steady pace,” said Dan Moyer, senior analyst of commercial vehicles at FTR. “Along with the month-over-month increase, the fact that orders were up significantly from the May 2023 level indicates that the market remains on a solid footing despite near-term challenges. While all OEMs experienced order growth, vocational markets stood out as particularly strong compared to on-highway.”

The completely reimagined powertrain in the #AllNewVolvoVNL delivers greater performance and efficiency than ever before. pic.twitter.com/wriKvRzwoc

— Volvo Trucks North America (@VolvoTrucksNA) June 4, 2024

Moyer added fleets remain willing to invest in new equipment despite stagnant freight markets. He noted that order levels slightly exceeded historical averages and seasonal expectations, and he is anticipating a replacement level of output by the end of 2024. FTR also found Class 8 orders for the past 12 months totaled 273,900 units.

“We saw a stronger month of May industrywide than what many predictions would have suggested,” said Magnus Koeck, vice president of strategy, marketing and brand management at Volvo Trucks North America. “Stronger-than-anticipated numbers can be attributed to several factors: OEMs are opening their remaining order board slots for 2024, and the private fleets are slowly starting to engage in an early 2027 pre-buy. The early movers on the pre-buy may also indicate that the pre-buy effect will be a little stronger during the last six months of 2024 than earlier anticipated.”

Volvo Trucks North America is launching its new Class 8 VNL tractor. The redesign is the first major overhaul of its flagship over-the-road truck since 2017. Koeck considers it the most significant product launch in the history of the company. He is anticipating stronger third- and fourth-quarter numbers this year because of the launch and other product lines.

“Class 8 tractor orders increased more than 42% for the combined U.S. and Canada markets compared with April,” said Jonathan Randall, president of Mack Trucks North America. “While the tractor market has faced headwinds from low freight pricing, the economy continues to grow on trend with solid orders. The vocational market remains strong, influenced by robust government construction spending.”

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This Thursday 6/13: Cybersecurity for multi-domain operations webinar

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Why we should listen to developers for AI privacy regulation

Zama’s COO Jeremy Bradley argues that as the ‘guardians of privacy’, developers are best placed to advise on cybersecurity in an AI boom, though everyone from CEOs to end-users has a role to play.

In an era where technological advancements are exponentially accelerating, the voices of those at the forefront of creating these technologies are crucial.

Recent findings from a study commissioned by Zama, a Paris-based cryptography firm specialising in fully homomorphic encryption (FHE), have cast a spotlight on a growing concern among developers: the encroaching threat of AI and machine learning to privacy.

Our study, which surveyed mora than a thousand developers from the UK and US, reveals a striking insight: 53pc of developers view AI as a significant threat to privacy, nearly on par with cybercrime, which stands at 55pc. This sentiment underscores a critical shift in the threat landscape, where AI, despite its nascent stage, is rapidly emerging as a formidable challenge, closely trailing the perennial threat of cybercrime.

The financial implications of cybercrime are staggering, projected to soar to $13.82trn by 2028. However, with AI’s sophistication growing, the potential for its misuse by cybercriminals could drive these costs even higher. This is not just about financial loss; it’s about the erosion of privacy that could follow.

The value of the experts’ takes

The developers’ perspective is particularly illuminating. Tasked with integrating privacy safeguards into everyday applications, these professionals are uniquely positioned to judge the efficacy of current privacy and regulatory frameworks. Alarmingly, 98pc believe immediate action is necessary to address future privacy concerns under these frameworks. A significant 72pc feel that existing regulations are not equipped for the future, and 56pc express concern that even dynamic regulatory structures intended to adapt to technological advances could pose threats of their own.

These survey results highlight the importance of listening to developer insights, stressing their vital role in safeguarding privacy within organisations amid AI adoption. This emphasises the need for upcoming regulations to address the escalating risks to user privacy identified by developers.

Furthermore, the survey indicates a concerning gap: nearly a third of developers believe that regulators lack a comprehensive grasp of the technologies involved, potentially hindering the efficacy of future regulations. However, the developers surveyed also said they prioritised privacy in innovation. This entails leveraging privacy enhancing technologies (PETs) to process data securely without compromising functionality.

As we enter an era dominated by AI-driven advancements, developers advocate for regulatory approaches that are well-informed, proactive and adaptable. It’s crucial to maintain privacy as a core principle to preserve the integrity of data-driven innovation, even amidst rapid technological progress. By integrating advanced encryption technologies and enhancing regulators’ understanding of privacy tools, we can uphold privacy and security values in the digital realm.

Everyone has a role to play

While we already see increasing efforts from regulators as the first AI-tailored policies and bills have been launched, it’s important to remember that the responsibility to protect privacy when it comes to AI should be shared and widespread. Regulators make the rules and integrate them with existing policies and aspects of society. As ‘guardians of privacy’, developers have the expertise and tools to ensure the technology is up to par. Finally, users too can play an active role in protecting their own information.

Policymakers and governments

The key for those in charge of creating regulations that can keep up with AI and related technologies is to appreciate the importance of being knowledgeable. Constant education and learning are crucial, through traditional channels or through L&D partnerships with the very same tech companies that are advancing the field. Regularly hosting external experts for training sessions, encouraging participation at technical conferences and summits, as well as organising technology briefs will help regulators to be equipped with the knowledge to develop truly competent policies.

Collaborations between the public and private sectors can work to serve the interests of both parties, with the additional perks of creating something that the public can also benefit from. The combination of the regulators’ understanding of policies and frameworks with the technical know-how of private companies can, on the one hand, foster the creation of well-suited regulations that incorporate the technology while, on the other hand, ensuring that these new technologies that are developed and launched to market will be already compliant and up to code.

Developers

As it emerged from their survey responses – 79pc of developers say customers’ privacy is important to them. Developers know that they hold a unique position in the fight for privacy: they have the skills and knowledge to make it happen, they understand what users want and they are aware of the challenges of delivering while working for organisations that have to operate within rules and limitations.

Their role is to champion the value of privacy in the organisation they work for and deliver working tools, by researching technologies and open-source solutions.

They are called to be proactive and creative, joining a wider community to share ideas and advancements and exploring the scope of available technologies, from more traditional security measures to the latest encryption-based solutions such as FHE. They should create easy-to-use tools that can be applied to the growing range of AI-based technologies and functions.

Organisations and private users

Private businesses and organisations are well-placed to take the necessary privacy-preserving steps from the start, as they have the means and workforce to integrate data privacy in the early stages of development of their technological tools. Whether this is for a customers’ database, financial information or research records, organisations can put privacy at the forefront with dedicated solutions.

Organisations can easily research and select the best privacy-oriented technologies that suit their needs, hire the best talent and truly protect clients’ and users’ privacy instead of seeing this as an afterthought, investing in encryption and anonymisation techniques.

And while private users might not have the means to access the same range of tools, they can easily follow a few simple safeguards to protect themselves when they are not relying on external organisations to do so: periodically reviewing apps permissions, frequently changing passwords and using strong ones, and enabling multifactor authentication whenever possible on all devices and platforms.

By Jeremy Bradley

Jeremy Bradley is the chief operating officer at Zama. He is a cross-functional and highly tactical leader who has worked with many organisations to shape strategy, drive communications and partnerships, and lead policy and process.

Find out how emerging tech trends are transforming tomorrow with our new podcast, Future Human: The Series. Listen now on Spotify, on Apple or wherever you get your podcasts.

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Thousands of Drivers File Arbitration Claims Against Amazon

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NEW YORK — Thousands of delivery drivers filed legal claims against Amazon on June 11, alleging the company’s classification of them as independent contractors instead of employees has led to unpaid wages and other financial losses.

Two law firms spearheading the action said about 15,860 Amazon Flex drivers have submitted arbitration claims with the American Arbitration Association, where 453 similar cases are already being litigated.

Amazon’s Flex program, which was founded in 2015, signs up drivers to deliver packages with their own cars and a special app.

The company pitches the work as a flexible, part-time opportunity that allows people to earn extra income during the hours they choose. Most drivers earn $18-25 per hour, according to Amazon, though how much they get paid can depend on other factors, such as their location and how long it takes to complete deliveries.

Amazon ranks No. 1 on both the Transport Topics Top 100 largest logistics companies in North America and TT Top 50 global freight companies lists and No. 9 on the TT Top 100 private carriers list.

The arbitration claims were made by drivers in California, Illinois and Massachusetts, all of which have rules that limit the amount of control companies can exert over independent contractors. The claims, collected over a span of four years by attorneys Joseph Sellers and Steven Tindall, maintain the drivers should be classified as Amazon employees instead of independent contractors, based on current laws in the three states.

That change would allow Flex drivers to collect unpaid wages because Amazon only pays them for a pre-determined number of hours regardless of how long it takes to complete deliveries, according to the lawyers. It would also allow Flex drivers to receive overtime pay if they work more than 40 hours a week and get reimbursements for work-related expenses, such as gas costs and vehicle wear and tear.

Gas and other vehicle costs are a “huge expense to our clients,” Tindall said. He also said one client represented in the claims worked seven-day weeks making deliveries for Amazon during a holiday period and never was paid overtime.

In a prepared statement, Amazon spokesperson Branden Baribeau touted the benefits of the Flex program, saying it gives “individuals the opportunity to set their own schedule and be their own boss while earning competitive pay.”

“We hear from most of the Amazon Flex delivery partners that they love the flexibility of the program, and we’re proud of the work they do on behalf of customers every day,” Baribeau said.

Tindall and Sellers say they have so far succeeded in seven of the eight arbitration claims against Amazon they took to trial. The drivers they represented in those cases were awarded an average of $9,000 in damages.

Amazon’s business model for its driving workforce — made up of independent contractors and third-party businesses that allow the company to avoid unionization — faces scrutiny and challenges from different corners.

A bipartisan group of more than 30 U.S. senators sent Amazon CEO Andy Jassy a letter last week asking for more information on the company’s relationship with the thousands of independent businesses that make millions of deliveries each day as part of Amazon’s Delivery Service Partners program.

In March, the Wisconsin Supreme Court let stand a lower court ruling that declared Flex drivers to be employees — a decision that would allow them to be part of the state’s unemployment insurance system and entitled to jobless pay if they are laid off.

The Teamsters union, which is seeking to organize Amazon’s drivers, also filed a complaint at the National Labor Relations Board last year challenging how the company classifies some of its drivers.

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