Trucking Insurance Industry Journal Roemer Report: Transportation Experts Warn No Peak Expected This Year

Slowdown blamed on economy, housing and construction markets. Industry experts hope for freight demand recovery by mid-2009.

October 28, 2008, Toledo, OH— The October edition of trucking insurance industry journal, The Roemer Report, cautions that lack of freight this holiday season could reduce potential earnings for motor carriers, many of whom rely on the autumn peak to make up for slower times during the rest of the year. This is normally the start of the busy holiday season, when Asian goods inundate West Coast ports and make their way inland to store shelves. Due to the sluggish housing market and falling dollar, last holiday season also experienced a slowdown. Much of this year’s slowdown is also blamed on the U.S. housing market, where home values have dropped and construction is down. Retailers are managing inventories tightly in order to have adequate merchandise on hand for consumers, without having too many products left after the holiday season. Some industry experts expect improvement by mid-2009.

The Roemer Report is a monthly digest of news for the trucking industry read by fleet operators, owner-operators, and allied personnel. Often referred to as the “Kiplinger Letter of the Trucking Industry“, the report has been published by Roemer Insurance for more than 30 years. The publication is distributed free of charge in both print and electronic formats and is archived on the Roemer Insurance website and Insure My Rig (www.insuremyrig.com/roemerreport.htm), the small fleet division of Roemer Insurance.

The October edition of The Roemer Report notes that CDL holders who fail a drug test generally do not inform prospective employers about their test results. According to an investigation by the Federal Motor Carrier Safety Administration (FMCSA), the Government Accountability Office (GAO) investigated 37 cases in which commercial drivers had tested positive and then, within a month, had tested negative with another employer. None of the 37 drivers disclosed the positive test results to their prospective employer, and 19 of those drivers were hired, even though the employers explicitly stated that a positive drug test would disqualify them from the job.

This month The Roemer Report discusses action taken by the Senate to transfer $8 billion from the Treasury’s general fund into the trust fund. The fund’s balance has been falling since spring, when highway construction spending rose and the fund’s income decreased; income for the fund is derived from the federal fuel tax.

The 52-year-old trust fund provides funding for nearly half of all surface transportation projects. Just three years ago, it had a $10 billion surplus, but because drivers are switching to more fuel-efficient vehicles and driving fewer miles, the fund’s income has dropped drastically.

The current edition of The Roemer Report discusses the fact that the federal government is trying to further tighten the requirements. Most states allow drivers to take their CDL tests in languages other than English, but the Federal Motor Carrier Safety Administration (FMCSA) recently proposed rules requiring CDL applicants to speak English during their road test and vehicle inspection and to eliminate the use of interpreters during the test. According to USA Today, authorities issued more than 25,000 tickets nationwide last year to drivers with poor English-language skills.

The October issue of The Roemer Report describes the use of electric sensors, like automatic inflation systems and air pressure monitoring alerts, as safeguards against collisions. Also detailed are the results of a two-year employee wellness program launched by Con-way Freight are profiled. In less than a year, nearly 831 Con-way employees lost a combined total of 6,269 pounds; more than 170 employees quit smoking; 669 employees reduced their blood pressure from hypertensive levels; and nearly 1,470 employees improved their health through exercise and diet that lowered blood pressure. In just under a year, workplace injuries and related workers’ compensation costs decreased 80 percent, and lost workdays dropped 75 percent.

To receive The Roemer Report by email or download earlier editions visit http://xrl.us/omwo3.

About Roemer Insurance

Established in 1934 by trucking insurance pioneer, Wellington F. “Dud” Roemer, Roemer Insurance is a third-generation family owned and operated insurance and risk-management firm led by the founder’s grandson, Wellington F. “Rocky” Roemer. Roemer Insurance is a Toledo-area leader in employee health and benefit package plans, with an emphasis on workplace wellness, strong community ties and active participation in business and charitable organizations. Roemer Insurance specializes in trucking insurance packages for large and small fleets. Its Health Life Benefits division offers group and personal coverage. Committed to technology and sound insurance practices, Roemer Insurance continues to set the standard in risk management and customer service. Roemer Insurance is a member of the Independent Insurance Agents and Brokers of America and The Professional Insurance Association. For more information, visit www.roemer-insurance.com or call 419.475.5151.

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Contact:

Rocky Roemer
419.475.5151
roemerr@roemer-insurance.com
www.roemer-insurance.com

Allen Mireles
419.878.3023
419.304.6871
allen@allenmireles.com