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Logistics Layoffs; How the Industry is Shifting

The Coronavirus pandemic has had a larger impact economically than medically in the United States so far. Since December of 2019, nearly 1.4 Million additional workers have filed for unemployment. The total number of unemployment claims rose to 7.1 million as of the close of March 2020.

Comparatively, as of late April 2020, there have been 820,000 confirmed cases of Coronavirus in the United States. This means that 60% more people have been laid off than have tested positive for the virus.

Why is this happening?

While social distancing has been successful in slowing the spread of Coronavirus, the country’s economic growth has also drastically slowed. U.S. citizens have been encouraged, and sometimes mandated, to stay in their homes and away from others. The necessary steps we have taken to contain the virus have had a severe impact that would have been difficult to predict.

To maintain balance, the response has been cutting expenses. Layoffs and furloughs work by the same principles of supply and demand. While management typically does not look forward to reducing its headcount, it is sometimes the only option to maintain the health of the business in the future.

Why does a company lay off employees?

Restaurants, retail stores, entertainment arenas, and more have been ordered to reduce operations or close completely. These companies work diligently to maintain a balance between their number of customers versus the number of employees.

The companies who perfect this practice gain a competitive advantage because they are properly servicing their customers with an efficient number of workers. Without customers, these businesses cannot afford to keep their employees on the payroll.

Due to the pandemic, customers are forced to stay home, and little revenue is coming into the companies. It is not essential to retain the current number of employees. To focus on long term goals, companies have had no choice but to make serious adjustments to their current procedures. A major way to reduce operating costs is to layoff, furlough, or terminate current employees.

Layoff vs. furlough

Reducing headcount is the short-term solution to a long-term plan for the business. It allows the company to prepare for recovery instead of upsetting the balance between customers and employees.

·        Layoff – a discharge of a worker or workers. 

Layoffs are sometimes necessary to preserve future performance. If you have been laid off recently, it does not necessarily mean you were bad at your job.

Companies resort to layoffs to permanently reduce their workforce. The frequency of layoffs increases when operating costs get too high, during economic recessions or, in this case, national emergencies.

 

·        Furlough – a layoff, especially a temporary one, from a place of employment

If you have been furloughed, it usually means you are temporarily off work until your company starts to bounce back. Furloughs are a short-term solution for the company so they can recover from losses. It works by eliminating payroll costs but keeping the employee “on the books.” Furloughed employees are usually asked to come back to work as soon as the balance is restored.

 

Professional Driver Job Market

Auto-haulers have seen a massive decline in available jobs because the balance has been upset. Most car manufacturers have reduced their headcount and consumers are not buying cards during the pandemic.

Self-isolation has caused several commuter drivers to drastically reduce the amount of road time they experience each week. Since thousands of people are working from home or have been laid off, the demand for diesel fuel and gasoline has drastically faltered.

Oilfield services are experiencing historically low oil prices, resulting in surplus inventories and decreased production. Thousands of people have been left without work. Many of these workers and contractors have CDLs and are looking to transition into other sectors.

Reduced fuel consumption makes fewer jobs available since there is a decreased need. This also drives the price lower. Gas haulers are taking a hard hit for the time being. As the economy normalizes, however, the need for fuel should return to normal.

A decreased number of commuters combined with social distancing regulations has forced many truck stops to lay off their employees. Truck drivers are feeling the brunt of this as well. They are no longer able to eat at the dine-in restaurants or use the driver’s lounge at truck stops. The effect is far more widespread than could have been predicted.

What now?

Trucking is its own beast. Once you are in it, you are in it for life. Whether you’re a professional driver, dispatcher, planner, etc. you will most likely stay within the industry. But that doesn’t mean there are no options after you’re laid off.

The success of a trucking company is very much dependent on their capacity and the amount of freight available to move. Certain sectors, such as food and pharmaceuticals, have seen success throughout the pandemic because the demand has increased.  Freight activity and rates are quickly dropping in all sectors.

But there is hope. The internet holds unlimited amounts of information about different sectors of the trucking industry. An auto-hauler may be out of work now but could research the basics of running reefer. If your mileage has been limited due to the pandemic, use this time to try out another specialty that is booming.

The future of trucking

DMVs have shut down, new CDL holders have not been able to enter the market. When the economy returns to normal, we will see a higher demand for truck drivers. However, after several months without issuing new licenses, it will be the responsibility of current CDL holders to take on the extra work.

Current CDL holders are not able to renew expired licenses. The emergency waiver issued by the FMCSA allows those with expired licenses some relief until the end of the declaration.

Trucking companies rely on technology to make their operations as efficient as possible. You will begin seeing more companies offering remote online orientation because it greatly increases the efficiency of traditional orientation.

And truck drivers love it! New recruits will no longer have to attend a 3-day, in-class orientation before being assigned a truck. They watch presentations, safety videos, and test out from the comfort of their own home.

This convenience allows drivers to spend more time with their families while completing orientation assignments on their smartphone or computer.

Look Forward to Recovery

The economic impact of the Coronavirus has been widespread to an extent no one predicted. Eventually we will start to recover, but the trucking industry will forever be changed. To begin the path to recovery, today’s industry leaders are preparing by:

  • – Streamlining communication
  • – Harnessing technology to provide training
  • – Preparing for all potential challenges
  • – Documenting everything

Companies and drivers that can adapt and overcome to the new way of business will achieve success, just as they have before.

The dawn of the Coronavirus pandemic brought about a shift in behaviors like the country has never seen. The variance from normal created nationwide shutdowns, self-isolating citizens, and a dramatic spike in unemployment rates.

As fear of the unknown spreads across the country, one thing remains the same;

Trucking companies must keep rolling.

Truck drivers hold the responsibility of supplying the world with all its luxuries and, more importantly, basic needs. Most everything we use daily was made available to the consumer because of a truck driver. But now, grocery stores are struggling to keep products on the shelf. Consumers are buying more groceries and household items to comply with quarantine mandates.

Truck drivers are overwhelmed with the task of keeping the supply lines moving despite the ongoing pandemic. In normal operating circumstances, they haul consumer goods from the shipper to the receiver as efficiently as possible.

The COVID-19 National Emergency has created setbacks the country could have never anticipated. The panic buying trend cause truck drivers to work overtime. They have had to figure out how to cover more miles and deliver more product than they could before the pandemic.

The Department of Transportation anticipated the struggle and stepped in to offer relief from a few strict regulations. Drivers are now allowed to operate longer hours, drive with expired licenses, and operate without a valid physical.

Impact of Social Distancing

In addition to the relaxed regulations, drivers have also been enjoying the perks of empty highways and low traffic density. Work Zone activity increased because construction crews can work more efficiently without traffic congestion.

A decrease in the number of accidents/incidents can cause truck drivers to feel a false sense of security. As the public begins to reenter the community from quarantine, traffic volume will begin increasing at a significant pace.

“Don’t let your success of today lay you into complacency for tomorrow. For that is the worst form of failure.” -Og Mandino

More frequent work zone activity, increased traffic, and complacent truck drivers are a recipe for disaster. Even though the regulations are relaxed, trucking companies can still be sued for accidents and incidents. You may have a driver who is legally allowed to operate over hours, but when an incident occurs, your company and your driver will still be held liable.

Defensive strategy

The best thing any trucking company can do for their drivers is to continue their training from rookie to retiree. Most importantly, enrich your safety culture by creating awareness within your workforce. Trucking companies experience a unique challenge in continual education, however, because their fleets are rarely available to gather for safety meetings.

The University of Michigan Transportation Research Institute conducted a study on whether truck drivers at fault in accidents than passenger cars. Their research concluded that out of 8,309 accidents, the passenger vehicle was at fault 71% of the time.

The study showed that, professional drivers were only at fault in 16% of fatal car/truck crashes. It is evident that trucking companies are defensible in court, even in fatal crashes, because the fault usually lies with the passenger vehicle.

Today’s technology allows you to tackle this problem by delivering training courses online. Drivers can still participate no matter where they are located. In the unfortunate event you end up in court, a plaintiff might ask you about your digital training class. Their stance will be that there is no way to prove participation since the training courses were not administered by an actual person.

Protect your company and your drivers by providing training and assessments that secure their acknowledgement. Test them on their retention whenever possible and always get their signature.

If it isn’t in writing, it didn’t happen.

 

Be proactive

Take an assessment of your company and look at areas that need to be strengthened. If you find yourself in court, an attorney will do the same. They will attempt to destroy your company’s credibility by exposing potentials for weakness.

Relaxed DOT regulations mixed with an under-trained workforce could mean the end of your company. A quick internet search returned several articles touting exactly how to sue a trucking company. The information is readily available, trucking companies are an easy target, and the “billboard attorneys” are hungry.

Mark Rhea, a trucking industry expert, describes his experience being involved in defensive litigation for a previous employer.

“Our truck was entering a construction zone. He was following the proper procedures per his training. He checked his mirrors as he was merging to make sure he could safely get in the lane. He looked back to the front and all the cars in front had halted to a stop. We rear ended someone.

In court, the deposition plaintiff’s attorney was loaded with facts and figures. He asked if I knew how many fatalities are caused by trucks ever year. If I knew how many injuries occurred because of big trucks.

Of course, I knew the numbers were up there, but I didn’t know the exact percentages like he had researched. He was trying to diminish my credibility.

Then he began asking about our training program. He was trying to prove we didn’t properly train our drivers. It was very uncomfortable for everyone involved. Fortunately, I was able to provide documentation that our driver had received specific training courses. The wreck was not for oversight or lack of preparation; it was simply an accident.” – Mark Rhea (April 17, 2020)

Trucking Companies – To Do List

As the economy reopens, traffic will resume. Accidents will become more frequent as more drivers are utilizing the roadways. Litigation will resume, if not explode. Do not get a false sense of security while the traffic is low. Prepare your company for legal defense in the following ways:

  • – Encourage open communication
  • – Educate drivers on exemption qualifications
  • – Continue to provide proper training
  • – Document everything
  • – DO NOT SACRIFICE SAFETY

Document everything a driver is provided from the very first day of orientation. Your defense attorney will want to see proof of the driver’s qualifications, CSA scores, training record, etc. Having these documents readily available in court will make you more defensible and solidify your credibility.

The logistics industry is susceptible to court action because of the danger involved in operating tractor trailers. Accidents and incidents are inevitable; relaxed regulations make them more likely. Remember, your company is not released from liability just because a driver qualifies for an emergency declaration waiver.

Even though we are adapting to a national emergency, attorneys will not cut any slack. You can, however, take the necessary steps to make your company more defensible in court.

 

National Work Zone Awareness Week (NWZAW)

NWZAW is a nationwide effort between state DOTs, road safety organizations, government agencies and private companies like Infinit-I Workforce Solutions. Its purpose is to bring safety to the forefront of your mind, especially when you encounter work zones.

Why is it important?

Everyone has experienced driving down the highway on a beautiful spring morning, trying to make the best of your commute. The air is crisp, the sun is shining. You turn up the radio as you watch the trees dance in the wind. You were so distracted by the passing landscape that you didn’t notice flashing lights warning of construction ahead.

And BOOM! Stop and go traffic.

The heavier the vehicle, the longer it takes to stop. Hopefully you became aware of the situation before rear ending the stopped car in front of you. And hopefully you didn’t lock up your breaks trying to avoid a collision.

A scenario like this is the reason National Work Zone Awareness week has become so significant. Accidents can happen in an instant, without warning. And some have found themselves staring at a busted windshield and deployed airbag before they ever even knew what was happening.

It is easy to become complacent when you travel the same route often. Muscle memory takes over and our brains filter out details of little significance. You might even find yourself at your destination with no recollection of getting there.

Sometimes, however, a new work zone can pop up overnight.  Some might reroute traffic and close lanes, making the roads we often travel unfamiliar. The annual campaign takes place in early spring, when road construction activities are at their highest. The goal is to make all drivers aware of the need for elevated caution in areas of road work.

Who does it affect?

The answer is simple. It affects every single person on the roadway: Professional drivers, commuters, motorcyclists, pedestrians, construction workers.

Construction workers?  Absolutely. Road workers put themselves in harm’s way performing necessary road work. They are especially vulnerable to work zone crashes because they do not have the protection of a vehicle.

How are truckers impacted?

Always pay close attention to speed limit changes. A traffic violation in a construction zone will have a huge impact on your CSA score. It is one of the most severe infractions. Not only will your traffic fine be doubled (in most states), speeding will also earn you 10 CSA points.

The likelihood of a trucker being involved in a fatal crash is higher than most civilian drivers simply because of the amount of time they spend behind the wheel. In 2018, 34% of fatal work zone related crashes involved the death of a professional driver.

How often do you perform these common causes of work zone accidents?

  • – Improper following distance
  • – Distraction or inattention
  • – Failure to use “lean and look” method when merging
  • – Excessive speed
  • – Ignoring blind spots

Safe drivers always make it a habit to be aware of their surroundings, especially in work zones. Traffic patterns can change instantly. Cars and trucks speed up and slow down with the flow of others. Commuters tend to become impatient and can begin driving erratically.

“Confusion, frustration, merging/distracted four-wheelers, speed limit changes, narrow lanes, and hundreds of attorneys hoping you make a mistake. Work zones are dangerous, it’s that simple.”

-Mark Rhea, President Lisa Motor Lines

In 2017, there were 18,000 work zone crashes that involved a tractor trailer. These resulted in about 4,000 serious injuries. About 25% of those injuries involved a pedestrian or construction worker.

Always treat work zones as if there are workers present. Just because you don’t immediately see them, doesn’t mean they aren’t there. Keep these best practices in mind every time you take off:

  • – Slow down and use the right lane when possible.
  • – Use hazard lights so the traffic behind you knows there is a slowdown ahead.
  • – Be careful of bottlenecks, drivers tend to cut in line at the last second.
  • – Focus – Keep your eyes on the road but be aware of peripheral action.
  • – Do not become distracted by phones or ELDs. It can wait!
  • – Pre-plan so you are familiar with your route.
  • – Perform a thorough Pre-trip inspection, ensure your tractor trailer is safe to operate.
  • – Expect the unexpected – always.

For more best practices from the DOT, click here.

How can I participate?

  • – Start the conversation with truck drivers, construction workers, and dispatchers you know. National Work Zone Awareness Week intends to spread awareness across the nation. Learn more at NWZAW.org.
  • – Wear orange on Wednesday, April 22, 2020. It acts as a visible reminder and shows support for families who have lost loved ones in work zone crashes.
  • – Slow down. Delivering your freight intact is just as important as delivering on time. No load is worth your life or the lives of others.
  • – Refresh yourself on your safety training. In the event of an accident, always follow your company’s accident protocol.

Remember, we are all in this together. Sharing the road means sharing the responsibility of each other’s safety.

Safety First – Prepare for Inspection

Amid the COVID-19 pandemic, E-Commerce usage has increased as the desire for social interaction has decreased. Standard operating hours are becoming a rarity as businesses are operating with a decreased workforce. Pre-planning is no longer simply about your origin and destination. Because of the widespread panic caused by the Coronavirus, now you must be prepared for closures, availability of food, and whether you’re at risk for cross-contamination.

Shippers and Receivers

Warehouse operations may have to restrict their hours as not to overwork their healthy employees. Whether or not warehouses will change their operational hours from their normal operating hours will depend on many factors:

  • Location– Is the warehouse located in an area with a dense population of people affected by COVID-19?
  • Category of Industry – Does the warehouse contain emergency or non-emergency related inventory?
  • Global Operations – May be difficult to maintain inventory if the majority of stock comes from overseas

So, what should a professional driver do if their shipper or receiver is temporarily closed?  

  1. Contact your dispatcher or fleet manager. There could be internal communication circulating about the location you are questioning.
  2. Be prepared to wait. If your shipper or receiver is operating under reduced hours or with a reduced workforce, they are likely offering detention pay for the time you have to wait.
  3. Be patient. Even though professional drivers are the heartbeat of logistics, it can take time for the flow of communication to reach you.
  4. Keep your eyes on the prize. Perhaps the most frustrating thing about trucking is waiting to be advised on what to do. Be productive while you wait. Spend your down time catching up on paperwork or watching safety videos.

Don’t forget about these!

Breakdowns and Parking

When pre-planning your trip, always keep in mind which truck stops exist along your route. Some may have shops that are closed or operating with a short staff. While it is difficult to predict when a breakdown will occur, it is important to be mindful of your options.

Know how far you will go and where you will park before you start driving for the day. Many states have closed rest areas in an attempt to stop the state-to-state spread of the Coronavirus.  If you have a favorite truck stop in your destination city, call ahead to reserve parking. If you can’t find parking at a truck stop or rest area, operate your vehicle to the nearest safe haven instead of parking on the side of the road or other dangerous areas. Remember that even though we are facing new challenges, your safety is still of the utmost importance.

Don’t get stuck without food

Many safety managers suggest it is always a good idea for drivers to keep a case of water and extra snacks in their cab in case of detention. The recent pandemic and nationwide shutdowns prove just how lifesaving this practice can be. Fast food restaurants across the nation have had to reduce their operations to drive-thru only, and are now inaccessible to those in a tractor trailer.

The next time you are in a grocery or convenience store, look for food goods that will sustain you but also have a long shelf life such as protein bars and/or beef jerky. This will ensure that you have something to keep you going if there are no dining options available.

Cross-Contamination

Professional drivers are encouraged to limit exposure to contaminants during the COVID-19 outbreak. But for a truck driver, life on the road means encountering many publicly accessed locations in their daily routine. Drivers are at a high risk of cross contamination as a hazard of the job from the fuel pump, to the communal shower knob, to their money back that has changed many hands.

The cab of a tractor trailer is a breeding ground for the Coronavirus. Think of all the surfaces you touch throughout the day. How many times do you touch your seat belt, steering wheel, gear shifter, and knobs on a daily basis?

The Coronavirus can live on these surfaces for days without proper disinfection according to the CDC. Use disinfectants such as Clorox and Lysol products that kill bacteria to clean commonly touched surfaces.  There are many tips and tricks specifically for truck drivers in these videos.

Stay Safe

Your main focus over the next few weeks is simply to be prepared. Truck drivers should always pre-plan, stock up on food goods, and keep their truck and themselves clean. Your best chance at getting through the nationwide crisis unaffected is to keep these things on the top of your mind every day.

 

If Truckers Stop, We All Stop

WHAT DRIVERS NEED TO KNOW TO KEEP ROLLING.

The country has come to a grinding halt when it comes to social interaction. Citizens have been sheltering in place to avoid crowds in churches, schools, stores, etc. Employers have sent much of their workforce to their homes to conduct business. Self-isolation has become the nation’s hot topic.

Moving freight is still in high demand, though, due to the short supply in grocery stores plus an increase in E-commerce activity. We are a nation dependent on truck drivers. What is a trucker to do when they aren’t able to self-quarantine?

For them, the answer is simple: Keep rolling.

In the beginning of their career, some truck drivers are enticed by the idea of getting paid to tour the country. They love the idea of watching the sun setting over an open highway every night. Or carefully navigating the winding roads of a beautiful mountain. Or breathing in the fresh coastal air after driving all night. While they get to experience all manner of landscapes and cultures, being an over the road truck driver comes with many challenges.

The general public looks forward to the end of the workday. You can go home, relax, cook dinner, play with your kids. All these activities can help you distance yourself from the stresses of work. Let’s say one day, while relaxing at home, you get a fantastic job offer. More money, solid company, better benefits. What is there to think about?

For an over the road truck driver, the decision cannot be made lightly. Most importantly, he could be thousands of miles away from his home. It could take more than a week to reach the home terminal. So, until he gets routed back to the terminal, he is stranded with indecision.

The same is true if a trucker gets sick over the road.

He could be thousands of miles away from his primary care doctor. Thousands of miles away from his family. For most truck drivers, this happens all too often. Their only hope is to ask their dispatcher for a break and crawl into the sleeper until it passes.

And during that time, most will not earn sick pay. A professional driver’s paycheck usually comes from mileage driven. So, if the wheels aren’t turning, they aren’t earning. If a driver becomes infected with Coronavirus, he could have to make a tough decision between his health and his paycheck.

Exposure risks

Truck drivers are in contact with all manner of the public on their way from the shipper to the receiver. Every facility they utilize is publicly accessed. In and out of truck stops, fast food restaurants, and rest areas, there are many opportunities for a truck driver to become infected.

The roads they choose to travel can increase their risk factor as well. A driver routed through a major metropolitan area could be at a higher risk depending on the number of occurrences in each city he travels through. Some drivers may travel through several major cities in a single day. Drivers must remain diligent in their hygiene habits to stay healthy. America stops if truckers can’t go.

A Trucker’s Responsibility? Transmission.

Because there is a high exposure risk for drivers, there is also a high transmission risk. Just as drivers could contract the virus from all the places listed before, a driver could also spread the virus to those places.

Be proactive. Wash your hands, clean your cab, and know the symptoms in case you need medical attention. Keep in mind that even though there are many exposure risks for drivers, you can take these preventative measures to keep yourself healthy.

Everything is confusing right now. You might find it difficult to quarantine in your cabin or find a place to park while others do the same. Truck stops are essential for truck drivers, not only for food and supplies, but also for showers, sleep, truck repairs, etc.

The best plan is a pre-plan. Check out these links to find updates from big truck stops. Always know where you’re going before you start rolling.

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