The Teamsters have been criticized over the years for any number of things. Their hard-line stances in negotiations have made them Public Enemy No. 1 for many businesses, both inside and outside of trucking.

But the union deserves a pat on the back for the tentative deal it has reached with YRC Worldwide (NASDAQ: YCRW). YRCW also deserves credit in the two-year extension. The agreement still must be ratified by the members, which should be done sometime in late October, YRCW said.

“The worst economic recession since the Great Depression continues to batter the trucking industry and threatens our YRCW members’ jobs,” said Tyson Johnson, Teamsters Freight Division director and co-chairman of the Teamsters National Freight Industry Negotiating Committee (TNFINC).

The Teamsters did what they had to do to preserve jobs. We’ve all heard stories of unions that refused to budge on their demands and ultimately, the company went out of business. That won’t be the case here - hopefully.

The union gave quite a bit in the negotiations, recognizing the situation YRCW is in. The company has been rumored for quite some time to be on the verge of bankruptcy and around Christmas had to renegotiate debt with its creditors in order to make debt service payments.

Under terms of the deal, a 15% wage reduction will continue until the conclusion of the contract on March 31, 2015. Hourly rate and mileage increases will be instituted on the following schedule: of 40 cents on April 1, 2011; 45 cents on April 1, 2012; and 40 cents each on April 1, 2013 and April 1, 2014. Those increases would be less the 15% reduction, the Teamsters said.

YRCW will resume pension contributions on June 1, 2011, at 25% of the contribution rate that was in effect on July 1, 2009. There will also be an increase to health and welfare funds of 35 cents per hour each year until March 2015. Union members with more than four weeks of vacation time will lose one week of time.

There is protection for the union, which was able to get included a “snap-back” provisions that will restore wages to the full NMFA rate if the plan is terminated, YRCW files bankruptcy, or the company is sold without TNFINC approval. The union also received another seat on the company’s board.

“While we recognize that this plan contains economic and work-rule concessions that are difficult to accept, members need to fully understand that if this NMFA (National Master Freight Agreement) modification is rejected there is no doubt this company will go out of business,” Johnson said. “This plan is far from perfect, but it will allow more than 25,000 Teamster families to continue to earn a paycheck, maintain healthcare coverage and preserve their pension benefits.”

When all was said and done, the Teamsters did what they had to do and that was reach a deal that hopefully will ensure YRCW continues to operate for years to come and preserve 25,000 Teamster jobs and thousands of more non-union positions.

That is a union doing its job well.

A new study conducted by Volvo Trucks and Michelin over in Europe claims that using the wrong tires and having improper wheel alignment can increase carbon dioxide emissions by as much as 14.5%.

The study was conducted using two Volvo FH 4×2 trucks, each equipped with a 500 hp., 13-litre Euro 5 engine, and hauling a fully loaded trailer. The rigs each weighed 40 tons. One rig was driven with a variety of incorrect wheel alignment settings while the other used optimally aligned wheels and with standard tractor and trailer tires supplied by Michelin.

“All the conditions tested were realistic, no exaggerations were allowed,” said Arne-Helge Andreassen, business area manager for tyres and wheel alignment at Volvo Trucks’ Aftermarket Department. “Real life is bad enough. Diesel consumption increases dramatically if the wheels are not entirely parallel. And this applies to all vehicles, for construction and long-haul operations too. A trailer with a rear axle angled to the right will roll diagonally across the road and its side panels will operate as a sail that traps the wind.”

The test truck was also run with various tyres and various tyre pressures. The testing was reviewed by Mats Lidbeck from the Technical Research Institute of Sweden, who served as an independent auditor of the testing.

The companies found several interesting facts, not the least of which is that using the correct tire can cut fuel consumption 11% with correct tire inflation reducing it another 1%.

“One-third of fuel consumption stems from the tires’ rolling resistance,” said Jacques de Giancomoni, technical account manager at Michelin. “Having the right tires is of paramount importance. And checking tire pressure - which has a significant effect on fuel consumption - is also important.”

The study also revealed that another 2.5% of fuel can be eliminated by properly aligning the wheels.

“There is a lack of awareness in the transport industry about the importance of checking tires and wheel alignment, on both the truck and the trailer,” said Andreassen. “At our dealers, we can help haulage companies check the entire rig and correct any problems. If everyone did this, it would have a significant impact on carbon dioxide emissions.”

So what does this study ultimately say? Despite the fact that it was carried out in Europe with European trucks, there is no doubt that if a similar study was conducted here, we would see similar results.

The keys to cutting carbon emissions when it comes to tires are simple: Low-rolling resistance tires, maintaining proper inflation, and keeping vehicles aligned. Managers spend plenty of time spec’ing the right equipment for their application. It’s also important to spec the right tires and then properly maintain them once the vehicle hits the road.

And if for some reason you’re not concerned with the environment, there is another benefit that will get your attention: less fuel used which translates to cash saved.

Every little step helps.

During the McLeod Software Users’ Conference in Birmingham, AL, this week, three logistics representatives took the time to hold a discussion with both brokers and carriers interested in creating brokerages within their operations.

They all had one simple piece of advice: Let it go. As in, don’t mix your asset-based trucking operation with the sales-based brokerage operation.

“I’m always amazed when people throw out brokerages as a negative term,” said Jason Beardall, vice president of England Logistics, part of the C.R. England operation. “I don’t think we’d be here as an industry without brokerage.”

Joining Beardall on the panel was Kacy Robinson, terminal manager for J.H. Rose Logistics and Adam Wakefield, vice president of operations for AFN. Each of the three approach brokerage operations differently, but all believe that a successful brokerage operation needs to work independently of the asset-based trucking operations.

“If you depend on your asset sales guys to sell brokerage, it won’t grow,” Beardall said, pointing out that the sales side of the equation is quite different. At England, some of the brokerage freight is shipped via C.R. England’s fleet, but Beardall said the England fleet has to compete for the freight just as any other carrier does.

At J.H. Rose, Robinson said that almost none of the brokered freight is sent via its trucking operation, and AFN is a non-asset provider hauling high-value goods.

The point that each man, and several in the audience, tried to make, is that a brokerage operation can’t be profitable if it is designed to simply handle overflow freight. It needs to be its own operation. And according to each, it can be quite profitable.

For carriers looking to get into the brokerage business, or who may be looking to expand their current operation, the men had a few words of advice.

First, make sure you have contracts that specifically indicate you are brokering the freight. Beardall suggested communicating to the shipper which freight has been brokered and which freight is one your own assets so the shipper knows where its freight is and where it is going.

Second, follow through with contracts. If you commit to hauling a load, haul the load, Wakefield said, even if it is at a loss. That builds confidence.

Third, make sure the carriers hauling your brokered freight are paid promptly, even if you haven’t been paid by the shipper yet. Beardall said England pays its carriers in 17 days but receives payment from the shipper in about 34. At AFN, payment to carriers is oftentimes within 10 days.

Wakefield recommended standing behind your commitment from an insurance perspective and use tracking devices if necessary. Also be sure the insurance on the load will cover the load should something go wrong. Brokers become responsible for the uninsured portions above a carrier’s liability.

And finally, each of the men spoke of the real key to making a brokerage work: customers. Treat everybody as a customer – both shippers and carriers – to build relationships.

“It’s much healthier and allowed us to become partners with carriers instead of a broker to carriers,” Wakefield said.

While some in the industry may look at brokers as the red-headed stepchild, after spending even an hour listening to these men, it’s clear that brokerages can, and do, play an important role in moving freight across this country. Just ask all those carriers that use brokers on a regular basis. They can’t all be wrong.

Democratic candidate for governor John Hickenlooper has proposed installing tractor-trailer restrictions along sections of I-70 in Colorado during times of heavy traffic, such as weekend rush hours. The Colorado Independent reported that Hickenlooper would like to ban vehicles heading westbound on Friday afternoons and trucks heading eastbound on Sunday afternoons.

Hickenlooper, the mayor of Denver, is in a three-way race for governor. According to a Rasmussen poll, Hickenlooper leads with 36% of the support. Republican Dan Maes holds 24% and Tom Tancredo at 14%.

The article quoted Hickenlooper as saying that the ability of residents to get for the mountains for recreation is vital to Colorado. The article cited California’s ban on trucks through Donner Pass during inclement weather as an example.

Just my opinion, but California restricting truck traffic through a mountainous region during times of snow and high winds for safety reasons is a far cry from Colorado restricting truck traffic and slowing interstate trade because residents want to enjoy their weekends.

Travelers Insurance (NYSE: TRV) is now paying fleets in the form of insurance discounts. The catch: The fleet must install vehicle telematics technology “in a sufficient number of their fleet vehicles and that they are actively incorporating safety information from the devices into their ongoing safety feedback to drivers, at least on a quarterly basis.”

“By embracing fleet vehicle telematics and offering discounts to our commercial auto customers that effectively deploy this technology, Travelers is furthering its commitment to improving driver behavior and roadway safety,” said Scott Higgins, president, Travelers Commercial Accounts.

Travelers is offering discounts as much as 15% off certain types of insurance premiums when devices that monitor vehicle and driver performance are installed.

“The use of vehicle telematics is the next step in improving the safe operation of commercial fleets, transforming drivers with less oversight to those whose performance can be observed, coached and managed,” said Chris Hayes, Director of Transportation Services, Travelers Risk Control. “By using this technology and the wealth of information it can provide, fleet and risk managers can have data that will aid in developing specific training programs that positively modify driving behavior.”

For carriers that seek safer drivers, and with CSA 2010 set to rollout, aren’t all fleets looking for that safety advantage? Programs such as Travelers are a nice natural extension. Use of onboard computers and other technologies can help fleets monitor drivers and equipment and perhaps prevent an FMCSA intervention.

The facts of life under CSA 2010 make safe driving more important than ever. And maintenance is also a key factor when it comes to inspections. A poor maintenance history could spell doom for a carrier. If all that can be warded off by installing these devices, and much of it can, fleets need to explore those opportunities.

And let’s not kid ourselves about CSA 2010. If you get a poor rating in any of the seven BASICs, I’d bet that your insurance provider is going to be paying close attention. If installation of onboard computers can prevent that, and the insurance provider offers a discount on top of that, how can you go wrong?

For more information, visit www.travelers.com.

We’ve heard the talk before. The Infrastructure Bank. It’s been on the back burner for a little while as President Obama and Congress have tried to navigate us out of the financial malaise we’ve been in.

Now, it’s time has come. Obama, speaking before organized labor and supporters at LaborFest in Milwaukee yesterday in honor of Labor Day, is proposing to fund the Infrastructure Bank with $50 billion to build new highways, high-speed rail, and runways to improve our flying experience.

“So, that’s why, Milwaukee, today, I am announcing a new plan for rebuilding and modernizing America’s roads and rails and runways for the long term,” Obama said. “I want America to have the best infrastructure in the world. We used to have the best infrastructure in the world. We can have it again. We are going to make it happen.”

Obama plans to push ahead with the plan, regardless of Republican opposition. We need jobs to get this economy moving. We need businesses to start investing to create those jobs. Frankly, we probably need this kind of boost to our nation’s infrastructure.

“We are highly supportive of President Obama’s proposal to immediately invest $50 billion to rebuild roads, expand high-speed rail, and rehabilitate airport runways,” said John Horsley, executive director of the American Association of State Highway and Transportation Officials (AASHTO). “We have demonstrated that investing in transportation infrastructure is one of the fastest ways to create and sustain jobs. An AASHTO January 2010 survey of states showed 9,800 ready-to-go projects valued at nearly $80 billion. If Congress wants to pass legislation investing in our transportation infrastructure, the states stand ready to put those dollars to work.”

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According to Obama, the plan would help rebuild 150,000 miles of roads, build and maintain 4,000 miles of railways, and restore 150 miles of runways as we ready the nation for the next generation of air-traffic control systems.

“This is a plan that will be fully paid for,” Obama said. “It will not add to the deficit over time – we’re going to work with Congress to see to that. We want to set up an Infrastructure Bank to leverage federal dollars and focus on the smartest investments. We’re going to continue our strategy to build a national high-speed rail network that reduces congestion and travel times and reduces harmful emissions. We want to cut waste and bureaucracy and consolidate and collapse more than 100 different programs that too often duplicate each other. So we want to change the way Washington spends your tax dollars. We want to reform a haphazard, patchwork way of doing business. We want to focus on less wasteful approaches than we’ve got right now. We want competition and innovation that gives us the best bang for the buck.”

The concept of an Infrastructure Bank, proponents say, would speed transportation-related projects and ensure adequate funding.

The Bank would have the ability to leverage tax dollars with private funding options through the use grants, credit assistance, low-interest loans and tax incentives. But, perhaps just as importantly, the projects would be approved based on merit, rather than on whose district the work would occur in.

“In this era of constrained finances and mounting needs on a national scale, the Infrastructure Bank would spur innovation in funding large-scale transportation projects critical to job creation and to our future economy,” James Corless, director of Transportation for America, told Fleet Owner back in January when the idea was broached. “Because projects would compete based on merit, it would help to select the investments that do the most to advance our national goals, whatever the mode: rail, highway, ports or public transportation.”

Will this help create jobs? I think so. Is it the right thing to do? That’s debatable. But at the end of the day, this recession has changed people’s spending habits. The average American no longer takes their paycheck each week – and then some – and makes big purchases. People are saving, not unlike what happened following the Great Depression. The only way that Americans are going to jump back to spending is if incomes go up, people go back to work, and hope emerges.

Maybe this is what we need to generate that hope.

A story in the latest issue of Ward’s Automotive Reports indicates that emergency personnel are having more trouble extricating victims from car crashes. The reason? New high-strength that is saving lives but at the same time leaving occupants trapped in vehicles.

According to the article, the Jaws of Life, the tool that so many first responders use to cut away car roofs or doors to remove victims, are unable to cut through the advanced steel alloys that are being used today for car roofs and B-pillars.

The use of the steel has undoubtedbly saved lives, as evidenced by the National Highway Traffic Safety Administration’s latest traffic fatality rates: 1.16 fatalities per 100 million vehicle miles traveled, and all-time low according to Ward’s. But there is the tradeoff.

“I tell rescuers people are buying a car (today) that essentially has a NASCAR (race car) roll cage built into it,” Ron Moore, battalion chief and training officer for the McKinney, TX, fire department, told Ward’s Drew Winter.

The high-strength and ultra-high strength alloys offer dual purposes for car makers. One, they withstand impacts better, making the cars safer. Two, they are lighter, leading to more fuel efficiency.

“I have seen real-world crashes (where) the vehicles have gone through some significant impact rollover or whatever and the occupants are outside exchanging information with the cops when we pull up. Years ago, they would have been mangled in the vehicle,” Moore said.

There is an option, but it comes with a price tag. A new cutting tool can slice through the steel, but at a cost of $5,000 each, Moore said it’s a cost that many departments just can’t afford.

Moore, along with several other organizations, including State Farm Insurance, is leading a teaching initiative to teach departments around the country how to extricate victims from vehicles. But it’s a learning process.

Sometimes, safety is all that matters.

Volvo Trucks environmental director Lars Mårtensson has a potential solution as the transportation industry struggles to find alternative fuel sources that provide the power needed to move freight. His choice: natural gas.

Based at Volvo’s headquarters in Sweden, Mårtensson suggests a fuel mixture of gas and diesel may offer the best chance to wean ourselves off oil, and reduce carbon dioxide emissions as well.

“This allows us to deal suitably with the most pressing problem – reducing carbon dioxide emissions,” says Mårtensson.

He went on to say that the future fuel of choice should be climate-neutral biogas and the use of natural gas should be seen as a bridge to fully expanded production of biogas. Biogas is a non-fossil fuel that is formed when organic waste such as food scraps, manure, byproducts of the food industry and agricultural waste are broken down in an oxygen-poor atmosphere and transformed into methane gas and carbon dioxide.

“The production of biogas is beginning to get under way in many countries. We are currently living in a transition period; we are shifting from decades of oil dependency to a society structured around renewable fuels,” he explains.

One solution that has been proposed is the use of natural gas, but like oil, natural gas is a finite product.

“Natural gas is one of several alternatives. And natural gas can be better than oil since it produces lower carbon dioxide emissions,” says Magnus Swahn, president of consultancy firm Conlogic, which works on the development of sustainable logistics solutions.

The advantage of natural gas is that it releases 30-50% less carbon dioxide than oil and 40% less nitrogen oxide. It also does not release sulphur, heavy metals or ash, Volvo says.

An even better solution, Volvo believes, is the use of methane-diesel. Methane-diesel is created when gas and diesel is combined. The main power comes from methane gas but a smaller quantity of diesel serves as a sort of “liquid spark plug” to ignite the gas. If liquefied gas is used instead of compressed gas, the result is a far longer operating range.

“This is a highly elegant solution,” Mårtensson says. “It delivers the diesel engine’s high-energy efficiency combined with the low emissions of methane gas. I really like that combination.”

A big advantage to a methane-diesel engine is the ability to use straight diesel fuel when necessary, Mårtensson says.

“A gas-powered truck harnessing the methane-diesel engine’s energy efficiency is a natural advantage since it can also be run solely on diesel,” says Lars Mårtensson. “This is both practical and reassuring since the gas filling station infrastructure has not yet been fully expanded.”

Volvo Trucks is now running field tests of methane-diesel engines running 70% gas and a 30% bio-blend diesel made from fossil-based diesel mixed with a green diesel made from renewable materials.

“The aim is that we should run on 80% green biogas and 20% green biodiesel as the combustion agent. This will make carbon dioxide emissions 80% lower than with conventional diesel power,” says Mårtensson.

The tests are ongoing in Europe.