Also in this issue:
- Are 3PLs Necessary?
- Hannic Reps to Attend TIA Fall Meeting
- Trucker Tips & Reminders
- Meet the people on the other end of the phone: Accounting, General Office, Vice President & President

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Don't Forget!
Daylight Savings Time ends on Nov. 1 at 2:00am. Set your clock back 1 hour. |
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Member:
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Shippers may be unknowingly giving previously dismissed carriers a second chance. |
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It seems the nation's roads are being haunted by out-of-service carriers that won't stay out of service. A recent article from the Associated Press reports:
"Hundreds of tractor-trailer and bus companies ordered to shut down because of federal safety violations ranging from suspended licenses to possible drug use have stayed on the road by using different names, investigators say."
A study conducted by the Government Accountability Office revealed these findings a year after one of the nation's deadliest bus crashes involving an unlicensed charter bus carrying a Vietnamese-American Catholic group. Seventeen people were killed when the bus blew a retreaded tire installed on a steering axle and skidded off of a highway in Texas. The use of recapped tires on the steering wheels is a violation of federal regulations, the study stated.
"The GAO report found that at least 20 of the roughly 220 commercial bus companies that had been fined and ordered out of service in 2007 and 2008 by federal regulators evaded compliance by setting up shop under a new name, the same tactic used by the bus operator in the Texas crash."
"The investigation found offenders in at least nine states - Arizona, Arkansas, California, Georgia, Maryland, North Carolina, Texas, New York, and Washington. The violators owed tens of thousands of dollars in delinquent fines and had scores of violations, from operating without the proper licenses to failing to test drivers for illegal drugs and alcohol."
"Another 1,073 commercial trucking firms are also believed to be possible 'reincarnations' after incurring fines and violations... 'These companies pose a safety threat to the motoring public,' wrote Greg Kutz, GAO's managing director for special investigations... 'We believe that these carriers reincarnated into new companies to evade fines and avoid performing the necessary corrective actions.'"(1)
The FMCSA has responded to this report by instituting new oversight measures, including a computer matching process to compare new applicants to poor-performing motor carriers dating back to 2003. Newly licensed carriers must also undergo a safety audit within 18 months of approval, a step that helped identify several of the companies cited by the GAO.
This is definitely a step in the right direction for the FMCSA, and hopefully they will continue to develop ways of watching just who is driving on our streets. But while this report has only recently become public, Hannic has been aware of these deceiving practices for several years and have put in place a procedure to avoid using these "resurrected" carriers. In addition to the usual new-carrier review and set-up, we run checks on the phone and fax numbers, as well as the physical address given by the carrier to see who they are listed to. We also check the carrier's insurance company's information to confirm who is listed and how long they have been in business. On occasion we have found discrepancies, which are flagged and the carrier is further inspected to determine
if we feel they are usable or not. Our computer dispatching program also verifies a carrier's information every time they are booked on a load, so we are immediately informed of any changes in their status.
Hannic has been the same company (with the same name) for 21 years, and we make sure the carriers we use are of the top quality. We won't put our customers' product -- or our reputation -- on some fly-by-night carrier with a dark and scary past. |
| 1. Yen, Hope. "GAO: Unsafe Truck, Bus Operators Still on Highways." Reprinted with permission of the Associated Press 2009. | |
| 3PLs Have a Place in the Transport Industry |
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Following are portions of a letter that was recently published in Transport Topics (1):
"What does America do when the non-asset brokers put all the real trucking companies out of business?...
I have seen how some of these non-asset brokers have taken advantage of 'supply and demand', but what happens when the demand outweighs the supply and there aren't any trucks to supply that demand because they've put everyone out of business?...
I know other companies feel the same way I do, but I am trying to stand up for all of us that really do move freight around the United States."
Mike Tharp
President
Boarder to Boarder Trucking Inc.
Edinburg, Texas
After reading this, one of our dispatchers sent her response to TT (2):
"Are 3PLs a necessary division in the trucking industry? My opinion is yes.
We are a group of people that work hard to keep the customers and drivers happy at an agreeable rate.
We have been in business 21 years. Most of our drivers have been with us for several years. 3PLs allow smaller independent trucks to run at a livable rate and get a regular pay check. We hear daily what it takes to keep a truck running. It is important to them as a business owner to project a kind and professional attitude as this is their business also. We check their safety rating and see that their insurance is active. They watch the freight being loaded and unloaded to try to insure clear bills. We both need this freight to come off without any problems at the right temperature. Without the smaller trucking companies a few big companies would dictate rates and lanes. Completion is good for the economy.
3PLs are very necessary to this industry. We are regulated, insured and audited just as a trucking company. We issue bills of lading and take responsibility for loss or damage in transit.
We as 3PLs find the rates being cut by the bigger trucking companies, because they need to keep the trucks running. Not caring if the loads make a profit, hurting the industry as a whole.
I, for one, am proud to work for a 3PL. They carry an excellent rating and strive to keep it that way."
Pamela Hansen
Dispatch
Hannic Freight Forwarders, Inc.
Plainfield, Illinois
Hannic has worked with a lot of trucking companies both large and small, many of which have been with us for years. We work hard to develop these relationships and do our very best to make sure that the carriers we depend on (and come to care about) don't go out of business. While we don't claim to know how other companies feel, the trucking companies we work with seem to appreciate us as much as we do them, and we are committed to maintaining that relationship. |
1. As published in the 7/27/09 issue of Transport Topics, Letters to the Editor section.
2. This letter was sent to Transport Topics on Sept. 2, 2009. As of the date that this eNewsletter was distributed, the letter had not yet been published in Transport Topics. | |
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Hannic Reps to attend the TIA semi-
annual meeting in Anaheim, Calif. |
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Debbie Maass and Tracy Brown will be attending the Fall TIA Meeting being held in Anaheim, California on November 14-18. The TIA Meeting is being held in conjunction with NTL's 102nd Annual Meeting and IANA's 27th Intermodal Expo., which means new faces, topics and points-of-view. With the theme "The Power of Together" the meeting allows for expanded networking and learning and perhaps even forming business relationships that may not have otherwise been considered.
As always, there will be the familiar workshops that introduce new methods and ideas as well as brush up on old ones.
However, this meeting will also see new topics and demonstrations, such as "Getting Down the Road Feeling Better: FMCSA Explains New Roadability Regulations", and "CVSA Roadside Inspection". It should prove to be a very informative event for all. | |
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We believe that the carriers we work with are professional in every way and we greatly value their knowledge of the industry. But sometimes being on the road gets a little hectic: between the strict appointments, finding the delivery locations and all of the road limitations for trucks -- not to mention TRAFFIC -- that we thought we'd share a few tips and reminders to make life a little easier for over-the-road guys and gals.
- Refrain from driving and using mobile phone at the same time - the dispatcher can wait for you to pull over (or for you to call back when you're stopped) so you can discuss and write down load info safely.
- Make sure your trailer is completely empty, clean and odor-free, and pre-cooled if necessary when arriving at shipper's facility to load.
- If possible, watch as the shipper and consignees load and unload your truck. It is important to watch while loading to make sure the product will ride properly. It is also a good idea to count how many pallets go to each delivery so you can make sure each stop gets all of (and only) their product. Remember, YOU are the "captain of the ship".
- Make sure the trailer is locked at all times between deliveries when you have a load on.
Some consignees will refuse the entire load if trailer is not secured by a padlock upon arrival for delivery.
- Call dispatch with any problems ASAP such as a breakdown, large shortage at delivery, reefer malfunction, etc. - Hannic has someone on-call for afterhours emergencies.
And as always, Happy Trucking! | |
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Meet the people on the other end of the phone: |

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"I've been with Hannic since March, 2006, working in the Accounting Department. I handle Accounts Payable and Accounts Receivable. Many drivers ask for payroll when calling and that is also me.
I have worked in accounting for a number of years, but this is my first experience in trucking. This has been a learning experience, to say the least!
My responsibilities include paying the bills and drivers, invoicing, and the ever-dreaded collections." ~MS | |

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"I've worked at Hannic for a little over six years; I started out in dispatch, spent a few months in accounting, and now just kind of fill in where needed. I am currently working on special projects such as company status reports, maintaining the Hannic web site, putting together the quarterly newsletters and creating marketing materials.
I really enjoy talking to the carriers and customers we work with. Some of our regular drivers are so familiar, they seem like an extended family!
This is definitely an interesting industry to work in, especially in these changing times. Although we have an office with desks and phones and staplers (although no cubicles, thankfully), there is definitely no boring, corporate-America desk job here!" ~MP | |

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"While serving in the Marines, I quickly learned that professionalism, respect, courtesy, focus, hard work and perseverance are mandatory. I found this to be true not only in the service, but in the business world as well. There will never be a shortage of these qualities at Hannic.
Keep on Truckin'." ~HM | |

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| "The forces are definitely not with the transportation industry or the economy in general. At the risk of being redundant I'm going to repeat a phrase that's been circulated by some economic pundits. There are green shoots appearing. Few and far between but they are there. I've always said that the refrigerated transportation industry, was somewhat recession-proof. People still have to eat. Food still has to be brought to market. The current slowdown that has affected all of us, shippers, carriers and 3PLs alike, has come at a very inopportune time. On the tail of last year's high fuel costs, it has crippled or put under many good carriers. On the bright side, it's also put a lot of bad carriers out of business. Unfortunately, as our lead story explains, the devious ones are opening up under another name and bilking unsuspecting shippers and carriers alike. Our 21 years of experience works against these folks as we have the expertise and the knowhow to avoid their trickery. We appreciate our business partners and will continue to work to earn your patronage." ~DM | | |
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