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Truckin' the USA

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It is not only the weather that blesses the sunshine state of Florida. Specialist road haulier John McTyre tells Bob Tuck that the working life could not get much better either
The editor's brief was simple: 'Go across and talk to our American cousins. Ask them how they are getting on.' And the response – from John McTyre in particular – was that things are going very well, thank you. 'I have to pinch myself some times,' McTyre says, 'just so I can appreciate how well off we are. True, not all the 50 states (of the US) are having as much success as we are down in Florida but even up in the North East, they are doing OK. The past few years in particular have been a very good trading time for us.'

With the grand sounding title of president of McTyre Trucking Co Inc, McTyre is the third generation of the family concern, which put down its roots in 1947 in Miami. With the company HQ now in Orlando, McTyre Trucking is a recognised specialist haulier in the traffic of out of gauge or abnormal loads, throughout the South East of the US. McTyre Trucking operates 39 tractor units but has 160 different trailers to handle this diverse variety of loads.

The company belongs to the US's equivalent of the RHA - the American Trucking Association. 'We are also a member of the Florida Transport Association – an offshoot of the ATA – and I feel both associations do a good job for us especially when giving a unified voice when new legislation is being considered.'

When you take a brief look at the American truck – and the transport scene – you might wonder what legislation John is on about. No side guards or spray suppression is fitted – or even mudguards on some trucks – not even tachographs. Trucks do not even have separate speed limits from other classes of vehicle. 'Whatever the speed limit is on a particular road,' McTyre says, 'that's the limit for all vehicles - cars or trucks, no matter what size they are.' Consequently, while there are some speed checks carried out by the Highway Patrols, you do not find the profusion of fixed speed cameras that we have to endure in the UK.

In the land of the free, it is also easy to get into road haulage – you just buy yourself a truck. There is no requirement for an operator's licence or certificate of professional competence. All you need is the finance – to buy the truck and some insurance – and once you have a customer to supply the freight, you are up and running. If you are operating on local haulage (within 100 miles of base, we were told) then there is not even a need to keep drivers' records of work – and you can work as long as you want. Can this really be true? We could not believe it.

Driver power
There must be some downsides to haulage US-style so the first thing we asked was about the influence of truck drivers' unions in general and the Teamsters in particular. 'We are a non union company here,' McTyre says, 'but I believe the Teamsters now only has 15% of all the US truck drivers on its books. Back in the early days the Teamsters served a worthwhile purpose but drivers are in such demand now, they can exert their own influences without recourse to the union.'

McTyre reckons the going rate for drivers is about $15 an hour or 40 cents a mile. 'Our drivers are paid differently. They are given 25% of the gross revenue that their respective trucks earn. For our truck drivers, this equates to a gross pay package of something like $54,000 to $73,000 a year, which makes us one of the best paying companies in the area – although that is also a reflection of the higher level of expertise we demand from our drivers.'

As well as good remuneration, McTyre explains that the companyís benefits package is also above average. 'Whatever health scheme a driver opts for, we pay 50% of the premiums. We also match whatever contribution a driver puts into his retirement plan.' However, getting a huge amount of paid holiday has to be worked for and it is not as good as UK drivers expect. 'Once a driver has been with us a year, he gets a week's holiday. After two years, he gets two weeks but he has to be with us for 10 years, before he gets three weeks' holiday and 15 years' service before qualifying for four weeks' holiday.'

Even with such good pay and conditions McTyre has two trucks stood wanting drivers. 'In fairness, out of every 20 applicants for a driving job, we'll probably only take on one of those. The demands of our insurers insist that new drivers must have three years' verifiable experience and we also screen quite intensely by checking their history. And because our outfits are not the easiest to drive, their driving ability has to be good.'

Another aspect in which McTyres seem to be ahead of the others is driver retention.

'The turnover of our drivers is around 10% but I know of other companies in the road haulage industry who have something like a 100-150% turnover in a year,' McTyre says. 'Some drivers move around a lot because it is generally easy to pick up another driving job.'

US drivers (at least those who drive at companies like McTyre) have to be computer literate. Although their long-haul driving hours (11 hours driving and 14 hours duty a day followed by a minimum of 10 hours off) are recorded in a hand-written log book, McTyre Trucking uses satellite technology to track vehicles and to send written instructions to drivers.

John McTyre showed how he could pinpoint the location of any of his trucks at the click of his computer's mouse – using the web site www.intouchlogin.com. It showed that the truck of driver Fred Schuh was doing 70mph on I-95. 'We still use mobile phones but with visual displays and keyboards in all the trucks, there can be no dispute about the transmitted message or instruction, unlike with the spoken word.'

Fuel costs
Historically, the US has always been a haven for cheap fuel. Even with the dramatic rise in the global crude oil prices over the past year or so, when McTyre says he pays $2.60 for a (slightly smaller) US gallon of diesel (perhaps £1.50) many UK hauliers will shake their heads – again – in sheer disbelief. McTyre says that even the US is becoming a lot more fuel conscious.

'When the hurricane hit New Orleans, we saw our prices rises to $3 a gallon and quite honestly, within a couple of years I can see the $4 gallon coming to us. Some people might be able to pass the price rises on to their customers but those in general haulage are having to watch their costings closely now ñ competition is hard.'

McTyre feels the new engine emission standards due to come in force in the US over the next three or four years will also damage fuel returns and says his company has now reversed from the trend towards bigger horsepower trucks: 'We do have some 500hp+ vehicles but as a rule we have found 400hp+ to be more than ample.' And that's working in heavy haulage.

McTyre tries to keep his trucks for no more than five years and has standardised on Peterbilt and International. 'With more and more technology in a truck, we find we cannot do much in the way of repairs with them in our own workshops – they have to be repaired at the dealer. But if you keep the vehicle within its warranty, it is cheaper to run and getting a five-year warranty deal from an engine manufacturer is now the norm.'

Many followers of fuel consumption figures will probably be able to tell McTyre – and the rest of the US road haulage scene – that it is cheaper to run slower. McTyre concedes that speed limiters may be fitted to US trucks sometime in the future. And while these may prove to be a fuel saving device, they may simply be used as a concessionary bargaining tool towards another goal.

Heavier weights
With the US semi-trailer length generally limited to 53ft (within an overall maximum length of 80ft) artics in the US have always generally been a lot longer than UK outfits. However, in the area of gross weights, the US maximum of 80,000lb (about 37 tonnes) is a long way behind their European counterparts.

McTyre feels it will not be too long changing. 'It has been predicted that by 2020, the shortage of truck drivers in the US will be so acute it will have a major effect on the country's ability to keep going. If we cannot get extra drivers (and we have a big shortage now) the only way this will be remedied will be to allow our trucks to carry more freight.'

McTyre knows that the American Trucking Association will have a big fight on its hands to win the argument. 'There is a big safety lobby in the US and they think trucks are too big now. Perhaps the one major bargaining chip the industry can play is if they agree to accept speed limits (and perhaps limiters) for heavier operating trucks. We must be able to answer the concerns over safety if we want an increase to maximum weights of something like 90,000lb – 100,000lb.'

When McTyre dons his US citizen cap (to replace his trucking one) he reckons it is crazy that his country does not move more freight – and people – by mass transit (rail or bus). 'American road users have long been spoilt because of cheap fuel,' he says, 'and in many respects, the road user is king. But we will have to go to mass transit some time in the future.'

To switch more freight onto rail may not be easy. US road hauliers (just like their UK brethren) have long been taking the 'just in time' strain adopted by many manufacturing/retailing end users. And the back of a truck is now ñ in practice ñ a mobile stock room.

Bursting the bubble
US road hauliers are fortunate in that they do not lose traffic to foreign competition. McTyre is philosophical about the contribution that the many illegal immigrants make to his countryís economy. 'If – through magic – they were all taken out of this country overnight the loss of manpower in many industries would bring the country to a halt. They play an important part in keeping our wheels turning.'

But does McTyre ever think about the day when the bubble might burst and the US go into a recession? And isn't the US importing far more than it exports? 'Even if a recession struck us, what do you think the government would do to keep things going? I reckon it would probably invest in the infrastructure – roads and bridges.

'And with that domain being our speciality, it shouldn't mean we would be hit very badly. But talking to our major customers, they all tell us they are sitting on at least a year's worth of backorders. If the phones stopped ringing today, they would still have at least a year of work before things really stopped. We have a strong and diverse economy – I am pleased to say.'

In many respects, we have much to envy about the US road transport industry.

Created by smiddle
Last modified 12/05/2006 03:07 PM