Tag Archives: owner operator

RoadOne looks for right mix to keep drayage drivers

RoadOne looks for right mix to keep drayage drivers
William B. Cassidy, Senior Editor | Oct 13, 2014 JOURNAL OF COMMERCE

Like many over-the-road trucking operators, RoadOne Intermodal Logistics is looking for the right formula to attract more truck drivers and keep them. However, in the drayage business that formula quickly becomes pretty complex, said Ken Kellaway, president and CEO.

RoadOne’s drivers are owner-operators, and unlike over-the-road truckload drivers they’re not typically paid by the mile. “More often they’re paid a percentage of the revenue per load or by time-zone rates, so they’ll get a flat rate to go to a particular market,” Kellaway said.

Compensation by the hour is becoming more common to cover time lost to drivers because of port terminal delays and extended loading times, Kellaway said. “We’re doing more and more of that,” he said. “The drayage driver can’t be responsible for assuming all the risk.”

Frustrated by port congestion and chassis shortages, drayage drivers increasingly are looking for other jobs both in and out of trucking, Kellaway said. That “outward migration” of drayage drivers and trucks threatens to slow shipper supply chains to a crawl.

Incentives are becoming a more prominent part of RoadOne’s recruitment toolkit, however. “These drivers are entrepreneurs, and like any entrepreneur they’re trying to figure out how to maximize profit,” he said. “We’re trying to help them with all the line items in their business.”

For example, RoadOne guarantees tractor financing for its drivers through a third-party leasing company, ENG Financial Leasing. The owner-operators aren’t required to have credit or a down payment, according to RoadOne, to take advantage of the financing offer.

“We’re also trying to help reduce their operating costs by leveraging our buying power on items such as fuel, license plates and insurance,” Kellaway said. “If we can get those prices down for them, we can help them reduce operating costs and maximize their profits.”

During National Driver Appreciation Week Sept. 15-19, RoadOne recruited 13 owner-operators at a two-day Driver Appreciation Open House at its headquarters in Randolph, Massachusetts. As part of a company awards program, owner-operator Idilio Taveres received a $15,000 grand prize one full year of truck payments. With 40 locations and more than 1,000 drivers nationwide, RoadOne plans to hold more recruitment events.

But drayage drivers need more than perks and incentives. They also need freight that provides a profit, Kellaway said. “We’re trying to be selective about the freight, to get the best-paying freight and the freight that’s easiest to handle for them,” he said.

“The drayage business is also notorious for high empty miles, as you’re bringing empty containers back to terminals,” he said. “We’re trying to find ways to increase their loaded miles so we can pay them more.” Shippers, the party that ultimately foots the bills, need to help too. “We’ve been successful in getting our premier customers to help us with these delay time issues so we can retain drivers,” Kellaway said. That help includes better container scheduling and advance pickup notice. “It’s working, but going forward, those are the customers who will really get our capacity, the ones who help support us.”

Port delays driving dray drivers away, RoadOne says

Port delays driving dray drivers away, RoadOne says
William B. Cassidy, Senior Editor | Oct 13, 2014 JOURNAL OF COMMERCE

The shortage of truck drivers on U.S. highways is affecting drayage operations at port terminals and inland railheads, too. Frustrated by port congestion and chassis shortages, drayage drivers increasingly are looking for other jobs both in and out of trucking.

That “outward migration” of drayage drivers and trucks threatens to slow shipper supply chains to a crawl as container chassis shortages, port congestion and drayage delay times get worse, Ken Kellaway, president and CEO of RoadOne IntermodaLogistics, told JOC.com.

“So many significant changes in the intermodal supply chain have negatively impacted freight flow that the owner – operators and drivers are taking a hit,” said Kellaway, whose company is one of the largest international and domestic intermodal container haulers in the U.S.

With more than 1,000 drayage drivers operating from 40 U.S. locations, RoadOne is struggling with a rising driver turnover rate. The No. 1 reason drivers cite for leaving drayage, Kellaway said, is frustration with waiting times at rail ramps and at ports.

“It’s getting to the point where we could have a backlash,” he said. “The global supply chain is a $7 trillion sector, but it depends on the $10 billion drayage sector in the U.S. If we can’t get the freight from the ports to distribution centers, the entire model starts to collapse.”

For a glimpse of just such a catastrophe, look no further than the ports of Long Beach and Los Angeles, he said. The largest U.S. port complex is reeling from terminal congestion caused by strong cargo volumes, a severe chassis shortage and poor intermodal rail service.

The neighboring ports have struggled with chassis shortages, rail service delays and unusually long truck turn times for much of the year. In the early fourth quarter, the congestion continues to get worse, and port officials largely blame chassis “dislocations.”

“The root cause is chassis,” Jon Slangerup, executive director of the Port of Long Beach, told JOC.com last week. That complaint is echoed at ports across the U.S. Where shipping lines no longer provide chassis, locating chassis has become time-consuming and chaotic.

“The whole chassis conundrum has put extensive pressure on the drayage community,” Kellaway said. “The chassis pool has been put off-site, and that requires additional moves and waiting time. We’ve got to go get the chassis, wherever it’s located, and bring it back.”

That’s like going to a supermarket and being told you have to go to another store to get a shopping cart, Kellaway said. And offering chassis in separate, non-swappable pools is like being required to get one cart for the produce section, and another for the deli, he said.

Two major chassis-leasing companies, DLCI and TRAC Intermodal- will add 3,000 chassis over the next few weeks at the Port of Long Beach as part of a short-term relief effort. But in the long run, the ports need a “gray” pool of interchangeable chassis, Kellaway said. “It needs to become one gray pool so whatever chassis we grab, we can use it,” he said. In addition, Los Angeles and
Long Beach “have to figure out what to do with these larger vessels coming in, and they’ve got to a get a labor agreement finished” with longshore workers.

Kellaway also says port terminals need to get better at moving drivers, and containers, through their gates. “A lot of terminals, whether they’re going through a technology change, are low on staffing, or are handling larger vessels, they’ve got longer wait times,” he said.

The shift from picking up pre-mounted containers on chassis at port terminals to “live lift” operations once an unloaded chassis from a pool arrives at the terminal adds hours to the time it takes to get a container from a port to a customer and return the chassis, he said.

“The result is fewer turn times per drivers, which means a dramatic reduction in revenue for the drivers, and no one wants to step up and take responsibility for that,” Kellaway said.

“There are multiple stakeholders, and we all need to take responsibility for the parts we affect.”

Some terminals only measure drayage driver wait times from their gates, which is like “a coffee shop saying there’s no line before you arrive at the register,” he said. If a driver can’t get through the entire process in two hours, “then he should get delay time,” he said.

“Trucker dissatisfaction with marine terminals is not a local phenomenon,” Bruce of the PierPass extended-gates program at Los Angeles-Long Beach, said during a drayage panel at the JOC’s 2014 TPM Conference in March. “It’s a symptom of the real problem, which is the traditional delivery process most terminals have in place today.”

Transportation consultant Tioga Group estimates that drayage delays add $348 million a year in unnecessary costs to the supply chain including 15 million hours of lost work time and 9 million gallons of diesel fuel. Unfortunately, progress toward a better process is slow.

At the end of the day, “Somebody has to pay the drivers,” Kellaway said. “We need to get these guys justly compensated so they can make a decent living. At least we have to make it more attractive for those who are interest ed in being in the blue collar sector.”

Otherwise, those owner-operators hauling containers will take their trucks and go to the energy business, or over -the-road trucking companies that desperately need drivers.

New England Motor Freight, a regional less-than-truckload carrier with waterfront headquarters at the Port of Elizabeth, New Jersey, gets plenty of “walk-in” driver applicants from drayage operations, President Tom Connery said in an interview. “We have no problem recruiting in places like Elizabeth where there’s a lot of heavy truck traffic,” he said.

Those truck drivers can get LTL delivery or line-haul jobs where they’ll be home every day, or truckload jobs or even drayage jobs at NEMF, which has its own fleet of chassis.

In the past 10 years, port drayage has grown from a negligible business for NEMF to represent 8 to 10 percent of the company’s revenue, Connery said. “There were such delays in getting chassis that we bought our own, and that’s worked out very well,” he said.

 

RoadOne IntermodaLogistics Marks First Anniversary with Enhanced E*Fill America Partnership

RoadOne IntermodaLogistics Marks First Anniversary with Enhanced E*Fill America Partnership
– Further develops single source, integrated logistics solutions designed to deliver efficient, seamless transportation and distribution services –
Randolph, Massachusetts, January 27, 2014RoadOne IntermodaLogistics, a leading single source intermodal, distribution, and logistics services company established January 2013, announces today that the company is celebrating its first anniversary. One year ago, RoadOne was launched to deliver integrated, single source transportation and logistics solutions to meet today’s economic and market challenges. Within this year, RoadOne has expanded its national intermodal network with a new agent-based model under the US IntermodaLogistics name and strengthened its partnership with E*Fill America to deliver extensive warehousing and fulfillment services throughout the U.S. and Canada.

The RoadOne IntermodaLogistics strategic partnership with E*Fill America, an affiliate of RoadOne, delivers synchronized and seamless, one stop warehousing and transportation programs that offer the ease and efficiency of a single point of contact. Additionally, RoadOne delivers a complete real-time visibility solution for inventory and freight in-transit, that allows businesses to respond quickly to unplanned events, manage costs, and speed delivery.

Within this last year, RoadOne founders and industry veterans Ken Kellaway and David McLaughlin have advocated for improvements to intermodal driver capacity issues that have the potential to cause supply chain disruptions. They are focusing on advancing: price adjustments to address declining driver capacity, greater chassis efficiencies for drivers to increase productivity and supply chain performance, and the impact of government regulations such as HOS (Hours of Service) that are negatively impacting the size of the drayage driver pool.

“On our one year anniversary, we are pleased to see that companies are embracing single source logistics management solutions that add efficiencies, improve inventory management and operational performance. By partnering with E*Fill America, we deliver integrated logistics solutions that offer significant advantages and add value to today’s supply chains,” said Ken Kellaway, CEO, RoadOne IntermodaLogistics. “Part of adding value is helping to create sustainable intermodal solutions that address today’s supply chain needs and future growth. We will continue to work to expand our logistics and intermodal capabilities, bring more environmentally friendly tractors into the marketplace, and help our customers and drivers navigate the changing chassis landscape. ”

RoadOne IntermodaLogistics

RoadOne delivers a comprehensive single source logistics solution to customers by providing the highest quality, reliable port and rail container drayage, terminal operations, dedicated truckload solutions, transloading, warehousing and distribution solutions nationwide. RoadOne operates in over 40 locations with 1,000 drayage tractors throughout key intermodal locations across North America.

RoadOne is committed to serving the changing logistics and transportation service needs of customers throughout North America. This vision of consistently offering diversified service offerings means that RoadOne will grow and innovate to help customers meet not only their business requirements but also increase the satisfaction of their customers. www.roadone.com

E*Fill America

E*Fill America, an affiliate of RoadOne IntermodaLogistics, is a national leader in warehousing, distribution and fulfillment with over 175 locations in the U.S., as well as in Canada and Europe. In the continental U.S., E*Fill has over 60 million square feet of warehouse space and provides global value-added distribution services including: transloading, cross-dock operations, and consolidation. E*Fill has locations within Foreign Trade Zones and delivers U.S. Customs Bonded, temperature controlled, certified food grade, and hazardous material facilities in locations throughout the U.S.

The proprietary XPress ONE system connects all 175 facilities and is integrated with 100s of major shopping carts and e-commerce platforms. It delivers real-time inventory status and provides tracking of order processing and shipments.

Quality, customized, responsive services are the hallmark of E*Fill America. By combining local, single point of contact customer service, for both transportation and distribution services, E*Fill America provides a streamlined, single-source solution throughout North America.
For more information: www.efillamerica.com

RoadOne Establishes Lease to Buy Program for its Owner-Operator Drivers

RoadOne Establishes Lease to Buy Program for its Owner-Operator Drivers

Supports driver community entrepreneurship, introduces environmentally friendly equipment, and strengthens its driver network –

Randolph, Massachusetts, January 21, 2014 – RoadOne IntermodaLogistics, a leading single source intermodal, distribution, and logistics services company, announces today a new initiative with GreenFleet Ventures that allows RoadOne’s owner-operators in North America to lease 2010 and newer vehicles, and more environmentally friendly tractors to help them establish and maintain their own businesses. This program commenced October 1st with RoadOne making a total of 20 tractors available to its owner-operators. Financing is guaranteed by RoadOne through the GreenFleet program.
RoadOne is committed to programs that provide ongoing support of its driver community. In 2013, RoadOne worked with Massport to set-up grants for drivers to help them purchase new tractors. This is just one example of how RoadOne is helping drivers improve their equipment quality.
“We are pleased to work closely with our RoadOne owner-operators to assist them in acquiring more modern tractors with lower carbon footprints, and support their sole proprietorship business. Over the next 3 years, we will expand our capacity by an additional 400 tractors for this leasing initiative,” said David McLaughlin, RoadOne’s COO.

RoadOne IntermodaLogistics, based in Boston, was launched January 2013 by industry veterans Ken Kellaway and David McLaughlin. The Kellaway – McLaughlin leadership team was established in 1993 when they joined forces to run Kellaway Intermodal & Distribution Systems. This strong management partnership continues today with the recent launch of RoadOne IntermodaLogistics.

RoadOne IntermodaLogistics

RoadOne delivers comprehensive single source logistics solutions to customers by providing high quality, reliable port and rail container drayage, terminal operations, dedicated truckload solutions, transloading, warehousing and distribution solutions nationwide. RoadOne operates in over 40 locations with 1,000 drayage tractors throughout key intermodal locations across North America.
RoadOne is committed to serving the changing logistics and transportation service needs of customers throughout North America. This vision of consistently offering diversified service offerings means that RoadOne will grow and innovate to help customers meet not only their business requirements but also increase the satisfaction of their customers. www.roadone.com

RoadOne IntermodaLogistics is providing the logistics support for the 900-mile journey from TOTO’s facilities in Fairburn, GA, to Oklahoma City

TOTO SUPPORTS OKLAHOMA TORNADO RELIEF AND REBUILDING

Company Donates Beautiful, Well-Designed Bathroom Fixtures to Help More than 2,000 Families Rebuild their Homes

– RoadOne IntermodaLogistics is providing the logistics support for the 900-mile journey from TOTO’s facilities in Fairburn, GA, to Oklahoma City –

(Morrow, GA) November 12, 2013 — TOTO announced today that it has shipped its beautiful, high-performance bathroom fixtures to assist more than 2,000 families in Moore, Shawnee and El Reno, OK, with their long-term rebuilding process.

“Our hearts go out to the victims of May’s devastating tornados,” said Bill Strang, President of Operations for the Americas, TOTO USA. “We wanted to aid our friends and neighbors in Oklahoma with their long-term recovery process, so we are sending three 40-foot container trucks laden with our beautiful designs that offer superior performance—toilets, faucets, showers, and accessories—to help families in these communities rebuild their homes.”

TOTO is assisted in this humanitarian project by its partners WinWholesale, Inc., Oklahoma City Winnelson, RoadOne IntermodaLogistics, and the Oklahoma Disaster Recovery Project.

“We’re grateful to our partners on this philanthropic project,” said Jason Fitzsimmons, Vice President of Sales, US Sales Division, TOTO USA. “WinWholesale and Oklahoma City Winnelson are providing much needed long-term storage for the three containers that house our products. RoadOne IntermodaLogistics is providing the logistics support for the 900-mile journey from our facilities in Fairburn, GA, to Oklahoma City. The Oklahoma Disaster Recovery Project is working with families in the local communities to help them get back on their feet by minimizing gaps in the relief and recovery system.”

“WinWholesale and Oklahoma City Winnelson are very pleased to partner with TOTO in providing in-kind bathroom fixture donations to the victims of the horrific tornado that struck central Oklahoma last May,” said Jack Johnston, President, WinWholesale Inc. “Oklahoma City Winnelson has been part of the community for more than 30 years. Company president Bill Cudd and his team are grateful for the opportunity to help their neighbors rebuild their lives.”

“We are proud to be part of this important rebuilding effort that is helping fellow Americans in their time of need. As a national company, RoadOne IntermodaLogistics believes in supporting the communities it touches everyday with its intermodal, trucking and logistics solutions,” said Ken Kellaway, CEO, RoadOne IntermodaLogistics.

TOTO is grateful for the local area support it has received from the Oklahoma Disaster Recovery Project, a collaboration of case management through American Red Cross, the Salvation Army, Catholic Charities, Society of Saint Vincent de Paul, and the Oklahoma United Methodist Church, other nonprofit organizations, government, non-government, church and civic organizations in partnership with the United Way of Central Oklahoma and Oklahoma Voluntary Organizations Active in Disaster.

“Recovery is not a sprint, rather a marathon so ongoing resources are needed to provide assistance. We could not do this without support from generous donors like TOTO. This donation provides a much needed resource for families impacted by the recent tornadoes,“ said Kami Kuykendall, Senior Director of Recovery with the American Red Cross, a partnering agency in the Oklahoma Disaster Recovery Project.

Kuykendall continued, “The Oklahoma Disaster Recovery Project has been working hard for months helping families in all areas affected by the spring storms and is committed to assisting clients with resources to meet their disaster-related needs. Our case managers are mobile and can go to clients, or clients are welcome to come by one of our three office locations. Help is just a phone call away at 1-866-477-7276.”

Editor’s Note: As with all TOTO programs, high-resolution digital photographs are available immediately upon request.

About TOTO:
TOTO USA is headquarters for the Americas Division of the TOTO Global Group, which was established in 1917 with the founding of TOTO, Ltd., in Kitakyushu, Japan. TOTO is the world’s largest manufacturer of bathroom fixtures and fittings with $5.1 billion dollars in annual sales. For nearly 100 years, TOTO has been the recognized leader in performance innovation and design with products that enhance the luxury bathroom experience. Today, the company maintains 23,500 employees in 69 offices around the world and owns manufacturing facilities in Japan, Mexico, the USA, China and Europe with an affiliated network of more than 80 production facilities worldwide. With over 1,500 engineers on staff and three centers devoted to research and development, TOTO is dedicated to engineering products that respect the environment while meeting people’s needs for comfort, beauty and performance. TOTO’s corporate philosophy – People-First Innovation – is the guiding principle for all the company’s processes, from engineering and design to manufacturing and sales. Consumers enjoy the peace of mind that comes from knowing they purchased a brand that innovates to improve people’s quality of life. Winner of numerous domestic and international awards and recognitions, TOTO is the only plumbing manufacturer honored as Water Efficiency Leader by the U.S. Environmental Protection Agency. The company continues to raise industry standards and consumer expectations as to what is possible in the bathroom, as TOTO believes a high-quality bathroom is an experience and an everyday luxury people value and appreciate.

For more information, consumers may visit www.totousa.com or call 1.888.295.8134, Option 5. Follow TOTO on Twitter (@TOTOUSA) and become a TOTO fan on Facebook

About WinWholesale, Inc.
WinWholesale Inc. (www.winwholesale.com) is a leading supplier of residential and commercial construction and industrial supplies and materials headquartered in Dayton, Ohio. The privately-held company has more than 550 wholesaling locations in 45 states and offers entrepreneurs the unique opportunity to own part of the local business. Collectively, WinWholesale is known as “The Win Group of Companies.” In the group are companies, such as Winnelson, conducting business-to-business wholesale distribution. The products include plumbing and heating supplies; hydronics; industrial pipe, valves and fittings; heating, ventilation, air conditioning and refrigeration equipment; electrical equipment; industrial and commercial fastening hardware; waterworks and utility supplies; domestic, commercial and industrial pumps, and turf irrigation and landscape supplies. Follow WinWholesale on Facebook, Twitter and YouTube.

About RoadOne IntermodaLogistics
RoadOne delivers a comprehensive single source logistics solution to customers by providing high quality, reliable port and rail container drayage, terminal operations, dedicated truckload solutions, transloading, warehousing and distribution solutions nationwide. RoadOne operates in over 40 locations with 1,000 drayage tractors throughout key intermodal locations across North America.
RoadOne is committed to serving the changing logistics and transportation service needs of customers throughout North America. This vision of consistently offering diversified service offerings means that RoadOne will grow and innovate to help customers meet not only their business requirements but also increase the satisfaction of their customers. www.roadone.com

About the Oklahoma Disaster Recovery Project
The Oklahoma Disaster Recovery Project (ODRP) is an integrated team of case managers provided by a partnership between the American Red Cross, Catholic Charities, Salvation Army, Society of St. Vincent De Paul and the Oklahoma United Methodist Church. There are offices open in Shawnee, Moore and El Reno to make it as convenient as possible for individuals and families.

The magnitude of devastation caused by a set of storms on this scale impacts the community in a variety of significant ways. Case Managers are trained to assist individuals and families in identifying assistance for the needs caused by the damaging impact of this disaster. These needs include anything from transportation, housing, home repairs to medical and mental health care. All cases are different and are based on the individual and/or family needs. Those needing assistance can call 1-866-477-7276.