February 2001


William Tucker

New Precedent Set
Broker Wins Back Solicitation Case
By Annette E. Petrick

    Until recently, cases of back solicitation brought by a broker against a carrier have never made it to trial. Settlement is reached before the case comes before a judge. Such cases are fact- and document-intensive and usually result in the kind of finger-pointing rhetoric that makes the truth illusive. They are complicated and expensive to try.

    To enforce his contract in court, a broker would have to prove to a jury that (a) a legal duty has been breached and (b) the amount of legal damages, in dollars, sustained within the formal boundaries of the law. To earn punitive damages, the broker would need to prove that the conduct complained of was overt and intentional.

    In a recent Federal Court action in New Jersey, judgment was entered in favor of a broker in a jury trial. While not yet published, the case sets a precedent that can be cited by other brokers in similar situations.

    The jury found that a shipper tortuously interfered with a broker's carrier relationship, in the case of J. A. Tucker Company v. M. A. Bruder & Sons, Inc., d/b/a MAB Paints and Guy J. Transportation Company, Civil Action No. 97-CV-5289(SMC), . The case was tried in U. S. District Court, for the District of New Jersey, Camden Vicinage, before Honorable Stephen M. Orlofsky. The jury's decision was handed down on October 4, 2000 and became final 30 days later, when the time for appeal elapsed.

    MAB Paint is a regional paint company based in Philadelphia with a large presence in Florida and the Midwest. Tucker Company is a 40 year old brokerage and 3PL in Cherry Hill, New Jersey. Its president, William Tucker, is a second-generation transportation executive whose opinions and views have been widely published in the trucking community.

    Tucker described the suit as "a classic back solicitation situation" and stated that he believed this is the first one in history that such a suit went through to a trial and judgment against either a shipper or the carrier.

    The three-sided relationship of the broker with the shipper and carrier can make this type of suit clumsy. The jury has no feel for freight, let alone brokerage. So there is a huge learning curve.

    Tucker Co. originally brought suit against the carrier, according to Bill Tucker, "because we had a clear written contract and this was a big piece of business."

    He explained, "We had introduced the carrier to a beautiful backhaul from Florida up to Delaware. It was consistent volume of five to ten truckloads each week, twelve months a year. It blended beautifully with some chemical industry loads he had going southbound to Florida. It was an ideal backhaul."

    The carrier began hauling through the contract with Tucker Company for a few months. Suddenly Tucker saw the freight stop, only to begin moving through a Florida-based broker. Tucker protested but both the shipper and the carrier said the contract with Tucker did not address their action. The carrier continued to haul the freight under this new relationship for about nine months. The business stopped, about the time that Tucker brought suit.

    Tucker Company started their action by suing the carrier because they had a clear written contract with this party. Said Bill Tucker, "The carrier, in working us out of the picture, damaged not only our business relationship with him but, of course, with the customer."

    In the market place, brokers do not want to earn a reputation for suing their own clients. Tucker notes that in his experience, most shippers do not sign contracts that contain non-compete clauses. He adds, "They don't have to. They're the buyer. They're the people with the money to spend on freight. They get to do it their way."

    Tuckers estimates that only 5-10% of brokerage operations with shippers are covered by a non-compete clause. But written or not, Tucker claimed that such competition is clearly understood to be prohibited by the normal course of business dealings in the industry. He stated to the court that although it may not be explicit in a written contract with the shipper, it is clearly part of the "business arrangement."

    As the case progressed into the carrier's defense, Tucker realized that the shipper held significant responsibility for events that occurred. He brought the shipper into the case, so that the full story could be told. Perhaps for the first time, the unwritten understanding between the shipper and the broker would have to be proven in court.

    About six months before the trial date, the carrier went out of business, leaving only the shipper and Tucker Company to settle the matter.

    After three years of depositions, documents, disputes and settlement offers, the trial took place, late last year.

    There were six days of testimony after which the jury rendered their decision. In less than an hour, they decided in favor of Tucker Company.

    They implied that the carrier, although no longer included in the case, was guilty of back solicitation. Explicitly they said that the shipper was guilty of tortuous interference with the broker's contract with the carrier.

    No judgment was awarded for breach of the shipper-broker contract or for tortuous interference with the broker's business opportunity. A legal precedent, however, was established.

    Bill Tucker noted, "Back solicitation is a subtle business issue. Bringing a contract to trial is a long, expensive, process. Up until the very moment that that jury foreman speaks, it's a roll of the dice. Even then, it could possibly yield nothing, in terms of compensation. But at least brokers now have a case to cite."



DAT Services Sells Out to TransCore

    TransCore Inc. has announced that it has acquired Portland, OR-based DAT Services and its international EuroDAT operations from Jubitz Corp. DAT Services is a

    business-to-business e-commerce company, specializing in commercial Internet-based freight exchange services. The transaction value was undisclosed, though the companies' combined sales in 2001 are projected to reach $340 million. Jubitz Corp. will receive cash and an equity position in TransCore Inc.

    Through the acquisition, TransCore will strengthen its supply chain offerings, positioning DAT Services' Internet freight exchange capabilities alongside its AmtechÒ wireless asset tracking technology and Viastar fleet management services.

    DAT Services has been a backbone of transportation intermediaries since the early days of deregulation, in the 1980s. DAT has been a generous supporter of transportation brokers and other types of intermediaries, through the tenue of Al Jubitz as present, and through the more recent tenure of Marc Cameron as president.

    Said one broker, "If anything was an indication of the change in the industry, this is it."

    "The logistics model has definitely changed, and that's the basis for assembling these core service capabilities in one organization," said John Worthington, TransCore president and CEO. "By bundling services and leveraging our unique mix of wireless and Internet capabilities, we can now offer our customers integrated solutions to their logistics problems."

    DAT Services maintains the original and largest business-to-business freight exchange network for the commercial fleet industry, using a variety of electronic methods to deliver information services to its 17,000 customers. From its more than 1,200 electronic load-posting monitors in truck stops to the recently released DATconexus, a comprehensive online trading forum, DAT Services provides North America's most active freight exchange network with more than 56,000 customer Internet sessions daily. Headquartered in Portland, Ore., DAT Services has branch offices in Nashville, Tenn., West Palm Beach, Fla., and Brussels, Belgium.

    Marc Cameron will assume the expanded role as chief operating officer of TransCore's newly formed Commercial Services Group with DAT Services as the cornerstone of this enterprise. Day-to-day activities and contacts will remain the same with several new services planned.

    In the past eight months, TransCore completed four major acquisitions (American Traffic

    Systems, Amtech Transportation Systems, DAT Services and Viastar Services) and will now focus its global business into three areas: government services, commercial services, and consumer applications and products.

    Denver-based KRG Capital is the primary equity sponsor of TransCore Inc. and arranged financing for the DAT acquisition.

Details: www.transcore.com or www.dat.com.


A D V E R T I S E M E N T

A D V E R T I S E M E N T

Squeezes on Carriers Affect Brokers
by Annette E. Petrick

    On top of skyrocketing diesel fuel costs, carriers were hit last year with tremendous increases in the cost of insurance. Hikes of 40% were frequent, with some carriers seeing their insurance costs double.

    Hardest hit are the small carriers without a lot of wiggle room on already-slim profit margins. Some chose to give up the ghost, retire, head off in another direction or give in to consolidation. In the last six months of 2000, carrier bankruptcies tripled the number that went belly-up in 1999.

    With no drastic equipment shortage last year, memories of fighting for carriage may be dim. Most brokers depend heavily on their relationships with small and medium size carriers. This year could see a serious dent in this relationship, as carriers fight for survival. Every transportation intermediary should assess the current status of their carriers to assure their future viability.



TIA Unmasks the Future

    "Transportation Intermediaries in the Internet Age: Unmasking the Future" is the theme of the 23rd Annual Convention and Trade Show of the Transportation Intermediaries Association (TIA). Scheduled for Thursday, March 1 through Saturday, March 3 at the Hyatt Regency New Orleans, the event takes on a new format this year.

    Pre-symposium workshops will be held on Thursday afternoon about e-commerce strategies and the use of the Internet in transportation transactions. Concurrent workshops are scheduled for newcomers to the Internet, intermediate Internet users and advanced users.

    Key note speaker is Jeff Crowe, CEO of Landstar System, Inc. The Wharton School of Business will release its findings and predictions about transportation intermediation in the digital age. A session on dot.coms will be led by Dick Armstrong, publisher of Who's Who in Logistics web sites.

    At least ten other educational sessions are planned. In addition to the business meeting of TIA, each of its seven conferences will hold their own meetings.

Details: Comprehensive schedule and registration material - www.tianet.org/conference/program.htm.



Rick Jones

OO SYNDROME
by Rick Jones

    Many businesses do not survive the owners' lack of interest when "routine" sets in. They never make it through the first real test of commitment: when things get "hairy" and there is no one to help. At some point it seems easier to throw in the towel and go back to work for wages.

    Some companies, though, take a different turn. The owners hire employees who are open to what I call "oo" or "owner osmosis!" These "oo" individuals believe everything the owner says. They "morph" into certain aspects of their mentor that benefit them in a crisis. An example might be how an owner handles an angry customer, or a dispute among fellow employees, or perhaps how the boss handles credit. These are recognized by subordinates as traits that "work," so they become part of the "oo" individual. Hopefully these "oo" traits are positive ones because negative traits usually result in failure.

    It's a wonderful thing when there are lots of "oo" types running around, making choices and passing those "oo" traits on to others. The company becomes healthy because there are so many independent thinkers, thinking "oo."

    The business becomes a living thing. It moves forward. It thinks for itself. It doesn't need the boss to think for it since it already has the "oo" genes.

    Like a "body," it grows! With each new employee hired, mass and substance are acquired. The abilities to run faster, work harder, and accomplish more are achieved.

    It can rejuvenate itself. Let's say someone leaves the body, either by choice or by "surgery." The body can get a replacement or - sometimes better - an existing part can assume those lost functions. Often a body part is lost when it is not found to contain the "oo" gene. Having a HR person with strong "oo" genes can act like antibodies that detect and remove invaders. Invaders are those types who are not team players. They do not enjoy their job and are constantly at odds with their task. These folks are not "bad" people; they just can't exist in the "oo" world.

    The "living business" consumes (expenses, overhead). It has to eat to survive. The organism can grow to exceed what it produces. This is an unhealthy condition. It's like obesity; the heavier it gets, the slower it moves. The less work it can do, the more rest it needs and the more food (expenses) it requires. Eventually, a heart attack (lawsuit) or a stroke (loss of major business) could kill the entity.

    The healthy organism practices being thrifty (doing more with less). It exercises (works harder). It has a good diet (the right kind of business); stays away from the spicy stuff (businesses that have a higher margin of return but where failure could mean huge losses). It likes companionship (affiliates with companies that have similar goals) and values doing a lot of networking.

    The vibrant business is self-reliant. It is so diverse that economics don't scare it. It has acquired expertise in many geographic areas; when one industry is down another is way up. It is more intent on growing and getting stronger than competing. It simply doesn't care what others are doing, unless territories are involved - then the vibrant ones go after their share! They have the stamina (ability to achieve goals) and the physical strength (financial resources) needed to prevail.

    With all "oo" systems fully operational, the owner can step back and get a good look at the bigger picture. His creation is running on "oo;" its growing, evolving, and doing a lot of "reproducing" on it's own.

    With the "oo" gene in full force, the entity has discovered new profit centers, new ways to do old things. It may have even created businesses related to itself that it can control, that lends itself to the corporate "DNA" (ideals of the owner).

    Meanwhile, the owner spends his time fine-tuning and nurturing his "oo" leaders. He now lets them run the show. He even lets them fail at some tasks but less frequently each year. As a result, the "oo" gene gets stronger every year. The owner realizes that he is in a race against time to train his replacement - no one lives forever. He also has all of his "oo" leaders training their replacements. When they have their replacements, it's time for those individuals to step back and take a broader view (higher level of responsibility).

    A true test of whether it's "alive" might be to imagine what the business would be like without you in it! Can it continue to be productive? Will it be able to think for itself in areas of direction? Will it reproduce (create new entities or evolve into productive profit centers)? How strong is it? Can it take a down turn in the market (a catastrophic loss)? Will it grow? Will it attract, hire, train and retain future "oo" professionals? Will it think and act like you - after your gone? If so, it's alive!

Rick Jones, CTB is President of Meadow Lark Companies, a freight brokerage in Billings, Montana. www.meadowlarkco.com


A D V E R T I S E M E N T

A D V E R T I S E M E N T

Ready for an ASP?
Next Generation of Internet Service

    In a very short time, the concept of the Application Service Provider (ASP) has taken the business community by storm. Transportation companies are beginning to sit up and take notice.

    An ASP is basically pay-as-you-go software that is rented instead of being owned. Investments far beyond the capacity of a single business owner are being made into ASPs so they can provide faster, better, more comprehensive business services than software for sale or programs developed in-house. The service is not cheap, but it's worth looking into.

    Outsourcing applications can have a dramatic impact on your organization. ASPs provide fast global reach and rapid deployment opportunities. Already there is a networking event for users and potential users of Application Service Providers. The ASP World Forum was held in Orlando last month. The Forum was not a trade show but rather an executive forum that provided an opportunity for ASP users to meet and interact with their peers, colleagues and competitors from industries around the world.

    Featuring up-to-the-minute case studies, interactive, hands-on workshops and a forum for unlimited networking, the event was called "the definitive industry event" by its sponsors, International Conference Development, Inc., www.icdevents.com.

    ICDevents, Inc. produces annual executive symposiums in a broad range of industries. Targeted events are designed to encourage companies to send their entire teams to problem?solve, network and brainstorm with industry leaders, consultants and suppliers. This approach for new technology has become a popular means of getting right to the core of issues and gaining insights on which to base buy decisions.

    At this event, participants evaluated ASP offerings, discussed implementation issues and explored industry trends and predictions. Expect to hear more about this type of event for ASP users. The process is so new that hearing war stories as well as success stories becomes extremely important. ASPs have the development dollars to create software to dramatically streamline work processes, speed time to market and control costs. They have the newest technologies, best of breed service strategies and are constantly on top of shifting security requirements.

PREPARING AN ASP RFP

    The key to a good strategic partnership with an ASP is addressing the business issues and risk factors that go into the Request For Proposal (RFP) and then into the contract. Pay-as-you-go software can give a significant edge to a smaller company with growth strategies. The use and intent of the ASP must, however, be well thought out.

Points to consider for the RFP include:

  • Length of the lease
  • Control of the application
  • Opt-out options before the lease expires
  • Performance factors
  • Degree of customization
  • Due diligence

    An ASP may not be right for you if you have heavy transactional demands. You don't want to be caught in an agreement to use software that is not performing up to standard. The performance factors you include will give you assurances.

    Find out how well the ASP can customize the software being provided. Be sure it can accommodate complex and multi-level business processes.

    Be wary of claims of experience. The ASP business model is brand new. Some firms are actively approaching prospects with the offer of free software, in exchange for using the company's name in their list of references.

    CIO Magazine (May 1, 2000) warns: "The shakeout among ASP players will be swift and brutal...the market is rife with speculation that many ASPs are purposefully signing up low or no-profit customers simply to gain market share and look attractive to potential buy-out companies." (Also see editorial in this issue of BI, re. dot.coms.)

    IT professionals recommend that clients use due diligence early in the process to weed through weak vendors. The terms of due diligence should be part of your RFP.

    Contracts with ASPs are extremely complex. It's a good idea to request a copy of the contract when you issue the RFP. This will give you time to look at it and see what the vendor has in mind when he contracts with you.

    There are, of course, a lot of other issues that need to go into the RFP for an ASP. This will give you a start in the thought process of whether the ASP is for you.

    For more information on ASPs, visit the ASP Industry Consortium's "All About ASP," an information center for and about Application Service Providers, their customers and delivery partners. The ASP Industry Consortium is the global advocacy group promoting the application service provider industry by sponsoring research and articulating the strategic and measurable benefits of this delivery model. The Consortium numbers more than 700 members in 30 countries worldwide.

Details: www.aspindustry.org


A D V E R T I S E M E N T

A D V E R T I S E M E N T

Secure Mobile Computing

    The laptop computer goes EVERYWHERE with some people in transportation. Did you realize that it could be the weak link in technology security for your company? Every point of network entry created for mobile workers also opens a potential security hole.

    Off-site computing has become more flexible and easy to use in recent years. The hardware and connective software are easy to install and use at remote locations. The new opportunities for productivity are praised by traveling executives and work-at-home employees alike. But the remote network access is often the top concern of IT executives.

    The IT staff must address the security threats posed by off-site computing. It is as important as security for data, hardware and software.

COMMUNICATING THE NEED

    The process starts with internal communication. Employees must understand the value of company data and the need for security. The person behind the laptop may be the ultimate security or the biggest threat.

LAPTOP THEFT

    Laptops are particularly vulnerable to theft. They are easy to carry off, valuable and find an eager illegal resale market. They account for some 80% of all computer theft. Employees can decrease the threat of theft with some simple precautions:

  1. Training can make employees aware of typical theft situations so they can cautious. Laptops should never be left in full view in a car, for instance. Easily recognizable laptop cases should not be set down casually by travelers while they shop in the airport.

  2. Share information on the latest laptop theft scams, such as switching cases at airport security points.

  3. Use locks, cables or chain to secure a laptop to a flat surface.

  4. Use a product that triggers a siren when the laptop is accessed without proper authority.

  5. Employ a security product that prompts a stolen laptop to dial your home office when it is plugged into a phone line. It will report itself stolen.

  6. You can even consider a product that releases dye to clearly mark the laptop as STOLEN.

DESKTOP THEFT

    All computers belonging to the company should have a label with a registration number. Periodic inventory review should be done, preferably by an outside party. It is not uncommon for a fast-growing company to lose track of the number of desktop computers owned by the firm; particularly when some are being used off-site.

    When a desktop is released to an employee for off-site or home use, an official document should be mutually signed by employee and employer, indicating the approved use of software and hardware, responsibility for maintenance, security and damage.

    Some firms consider advance approval or periodic check of the home space used for business. Others consider this an invasion of privacy and choose to look at results, rather than off-site environment.

THEFT OF DATA

    Of even more concern to transportation brokers is the theft of company data. Critical customer information, carrier files, reports and statistics are more vulnerable to prying eyes when out of the office. Loss or misuse of such data can cost the company far more than the value of a few computers.

  1. Most databases provide password protection. Some brokers don't bother to use it. You should.

  2. Firewalls can be installed, to prevent access to certain types of data.

  3. Card readers can be installed. Users swipe a card through the machine that only allows access to authorized personnel.

  4. Smart cards can be used, that self destruct if the user enters too many incorrect passwords.

  5. Biometric readers can use unique identifiers such as fingerprints, iris patterns or vocal tone to grant file access. As the cost of biometric readers comes down, they will see greater use in smaller businesses.

    Security systems must be carefully maintained. The IT person in one brokerage had a momentary lapse while programing and left open a gateway to the company web site. Employees arrived on Monday morning only to find that their web site now featured bloody photos of atrocities posted by an anti-terrorist group looking for a public platform for reform demands. Hackers had entered the web site through the gateway left open by the programmer.

THEFT BY VIRUS

    Every computer - desktop and laptop - should be equipped with anti-virus software. Wiping out a hard drive is just as much a theft as stealing a piece of hardware. Anti-virus software guards against infected incoming e-mail or attachments. On laptops, the protecting software can also prevent off-site computers from infecting the company network.

    Some firms quibble about the cost of anti-virus software for at-home workers. Consider the value of the worker's output and the threat to company computers. It's not worth a second thought. Even if the worker is using their own desktop or laptop at home, provide them anti-virus software free of charge and demand it be constantly updated.



Small Employers and Retirement Plans

    As the owner of a growing business, do you have a retirement plan for your employees? If not, chances are you've at least thought of starting one. With the future of the Social Security system at risk, more people than ever are aware of the need to build a personal nest egg for the time when they can no longer work.

REASONS FOR OFFERING A PLAN

A recent survey queried companies with from five to a hundred employees. They asked why some have retirement plans and why others do not. The 2000 Small Employer Retirement Survey was co-sponsored by the Employee Benefit Research Institute, the American Savings Education Council, and Mathew Greenwald & Associates, Inc.

WHY NOT OFFER A RETIREMENT PLAN?

Of the surveyed employers who don't have plans, 21% said that employees prefer wages and/or other benefits. That was the most important reason for not offering a plan. Another 18% said their top reason is high turnover or having a large portion of workers who are seasonal or part time. Uncertain revenue was the third most common reason, cited by 13% of respondents. Only 9% of employers said the cost of set up and administration is their key objection, while 8% said they don't have a plan because required company contributions are too expensive.

EXAMINE YOUR OPTIONS

Small businesses have a wide variety of choices when it comes to the types of retirement plans they can sponsor. Plan options have changed substantially in the last few years.

    Employee attitudes toward retirement saving are changing as well. With the amount of competition today for good transportation professionals, you may find that offering a retirement plan is a smart business move.

    If you haven't reviewed the alternatives lately, consult your accountant, financial advisor or insurance agent.

Most Important Reason to Offer Retirement Plans % of Employers
Competitive advantage in employee recruitment and retention 35%
Positive effect on employee attitude and performance 21%
Employers have an obligation to provide a plan for workers 13%
Tax advantages for employees 8%
Employees demand or expect it 5%
Tax advantages for key executives 5%
Availability of an employer tax deduction 2%



Types of Business Entities - Part 2 (part 1)
by William A. Gray, Esq.

    In the last article that we prepared for business INSIDER, we discussed several types of business entities, specifically sole proprietorships, general partnerships and limited partnerships. In this article we will discuss corporations, including Sub-S corporations, and limited liability companies (LLCs).

    You should always keep in mind that legal requirements vary by state depending on the business form chosen and the state law where the business entity is formed must be carefully reviewed. The following, however, are some general characteristics of corporations, including Sub-S corporations, and LLC's.

    Corporations. A corporation is a legally separate entity from its owners, with its own legal rights and responsibilities. One of the primary benefits of a corporation is that its owners (the corporation's shareholders) are not personally liable for debts of the corporation. The shareholders elect a board of directors to supervise the corporation and the board of directors hires officers to manage day-to-day matters. One of the primary disadvantages to a corporation is that its income is taxed twice: first on the corporation's income and then on payments made to the individual shareholders.

    Sub-S Corporations. A Sub-S corporation actually has some characteristics of a corporation and some of a partnership. Assuming certain tax rules are satisfied, income in a Sub-S corporation is taxed only when it is paid to the owners. Like other corporations, however, the owners are not personally liable for debts of the corporation.

    Limited Liability Company (LLC). An increasingly popular form of business entity is the limited liability Company (LLC), which combines some of the best traits of the other business entities. While the owners of an LLC (called members) generally have the kind of limited personal liability associated with limited partners, they have flexibility to participate in the management of the business if provided for in the governing document, called "articles of organization". The earnings of an LLC are treated similar to the earnings of a sole proprietorship or partnership, thereby avoiding double taxation.

    More detailed information concerning these types of business entities should be obtained from your accountant and/or attorney or from the author.

This article is not meant to provide legal advice or offer solutions to individual problems. Questions about individual problems should be addressed to the author.

William Gray is a partner in the Law Firm of Vuono & Gray, LLC, Pittsburgh, PA (412) 471-1800



Most Popular Features for Interactive Web Sites

We’ve been asking transportation intermediaries what they like most about the new interactive services made possible by the Internet. Based on input over the last year, we have put together a dozen of the most popular features

  1. Basic Loads and Trucks

  2. Bids and Routes

  3. Agent Levels

  4. Track Usage within the site

  5. Round Trip Maker - Takes agent loads and tries to find backhaul to origin

  6. Historical truck information - stores all truck postings as reference

  7. Instant Notification - Helps locate trucks posted and searching in the last 15 minutes

  8. Rate Range - rates at which you have listed your loads. Creates an average, high, and low across a lane by trailer type. (For Internal Use Only. This allows agents to see what freight has typically been moving at in a region or between two points.)

  9. Track and Trace

  10. On-line Rate Quotation

  11. On-line Ordering

  12. On-line mileage and fuel optimization

Do you have other personal favorites? If so, let us know and BI will share them with other brokers.



Publisher and Editor
Annette E. Petrick
540-459-8390
Fax - 540-459-3440
anetrick@shentel.net

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Editorial
Be Careful of Dot.Coms
by Annette E. Petrick

    I remember facilitating a Trust Forum once between brokers and carriers. It was a precedent-setting event that resulted in a list of ethical standards by which each should treat the other.

    Such standards would be welcome today for brokers with dot.com customers and clients. The first rule for the dot.coms would be - Thou shalt not go out of business and leave me holding the bag.

    There is tremendous allure about the Internet-based companies. Brokers are drawn to it, to use software and other Internet-based products, and to accept dot.coms as customers. We frequently receive calls from brokers and logistics companies asking our opinion about which are least likely to go belly-up. Would that we owned that crystal ball. We'd be rolling it up and down the highways of the U.S. and Canada, making a mint!

    Here's a statistic that will put it into perspective for you though. Among those mega-priced ads televised on last year's Super Bowl game, there were SEVENTEEN dot.coms. This year, there are TWO. Do the math.

    Choose your business partners carefully, transportation intermediaries. The allure disappears quickly when the clicks no longer get a response.

In the March/April issue:

• Selling Out - With Class by Steve Fernlund
• Web-Based Marketing - New Column on how to increase
      value and visibility of your web site
• Collaboration - New Behavior for Brokers

Letters to the Editor

businessINSIDER - One of the most informative publications I have read in a long time. Refreshing to find another publication other than TIA that focuses on professionals that arrange seamless freight shipments.

Don Lafferty
www.interconnectgroup.com

I appreciate the chance to write for your brain-child. It has been a long time coming. A voice of transportation professionals - non-denominational in creed, but inspirational in reaching out to the spirit of what we do.

I have an opinion to share and you give me a classy format in which to present it. I look forward to reading more of it!!

Rick Jones, CTB
www.meadowlarkco.com



Jeff Banning, CTB

Advisory Board Spotlight
Attitude and Heritage Combine for Success

    Jeffrey E. Banning, CTB heads Trinity Transport, Inc., a transportation brokerage in Bridgeville, DE. Through Jeff's leadership, the firm's volume has increased dramatically in the last three years. Responsible for more than 50,000 loads a year, Trinity is now in the top 5% of transportation intermediaries nationwide.

    Jeff heads a unique operation where family-friendly policies and community support are treasured corporate values. Commitments in these areas are evidenced by continuing education for staff members, in-house training, professional development and admirable opportunities for service and personal growth.

    The entire management team has recently earned the coveted designation as Certified Transportation Brokers (CTB). In the last year, employees have been trained in Spanish, to better communicate with drivers and customers, and in customer services, claims prevention, even CPR.

    Community service and corporate donations are managed by a Community Service Team that chooses recipients of Trinity philanthropy. In the last year, donations and support through human resources have been provided to the Boy Scouts, individual schools, the local food bank, the Heart Association and many more. For example, free Internet access was provided to a local school.

    Staff members adopted families for Christmas and provided gifts for 14 children and their parents. The company float in the Christmas parade won the top prize two years straight. Trinity personnel made apple fritters as participants in the annual Apple Scrapple Festival. The money earned was used to buy clothes to donate to Project Rachel, a Rape Crisis Project at a local hospital that provides free clothing for rape victims to wear when they leave the hospital.

    Such local activity has contributed to the reputation of Trinity Transport, Inc. as one of the best and most respected local employers. It allows Trinity to keep recruiting and keeping really fine personnel, even in an age of fast turn-over and a lack of corporate loyalty. Company benefits to employees include a full insurance plan, 401K plan, tuition reimbursement and continuing education in software, transportation and customer service.

    Work is done in teams; some functional, some cross-departmental. Ambassadors appointed quarterly from each department meet regularly to assure good internal communication, and immediate action on fast-changing employee interests, concerns or opportunities.

    Trinity is big on recognition for a job well done. Employees share financial rewards when goals are exceeded. Quarterly customer services awards are made. The annual Christmas party devotes considerable time to recognition of outstanding efforts - from Most Valuable Player type awards to Best Improved recognition.

    To present itself to its many audiences, Trinity publishes three different newsletters in alternating calendar quarters. One is directed to customers, another to carriers and a third to its internal network of some 50 people at corporate headquarters plus an agent network of more than two dozen offices throughout the country. Newsletters are filled with articles of interest to the specific audience. The latest internal newsletter contained ten pages of news, views and photo coverage of employee activities and achievements.

    Besides being distributed in print, the newsletters are posted on the company web site, which is also a company Intranet, connecting the various offices. Photos of company activities for the past year appear on the website's "What's New" section, demonstrating the dynamic, energetic company environment. Newsletters and website are produced for Trinity by Petrick Outsourcing, a management and marketing consultant to transportation companies (www.transportmarketing.com).

    The firm's operation has moved to Web-enabled transactions using Aljex transportation software. Dispatchers and sales personnel are carefully trained and retrained in the usage of the software. A previous upgrade to sophisticated transportation software was made three years ago. The decision to move to Web-based software was made late in 1999. Installation concluded in January of this year.

    Jeff Banning is a third generation transportation executive. The firm was started by his father, Ed Banning, who spent some fifteen years at the helm before turning it over to Jeff. Trinity's 20th anniversary was celebrated during the summer of 1999, when some 200 employees, agents and family members were brought in from all over the country to Hershey, PA for a three day celebration.

    Ed's father, Gil Banning, founded and ran Service Trucking Co. in the 1950s and 60s. He enjoyed tremendous respect and credibility with his employees. When an Old Tyme Truckers Reunion of Service Trucking Do. personnel was announced three years ago, former employees reminisced about special moments with Gil Banning as though they happened yesterday. The reunion was such a hit that it has become an annual event.

    Jeff's brothers, Darrel and Billy, are both in the business, operating divisions of the firm including warehousing, trucking and an LTL operation. Explaining his brother's work ethic, Darrel said of Jeff, "It's our heritage that helped make him the leader he is. We were brought up in a strong heritage - emotional, social and spiritual. It was passed down from my father and his father. This is why Trinity Transport, Inc. is so successful today.

    "A lot of people compare Jeff to my grandfather, Gil Banning - the most generous, caring person they knew. Jeff's work ethic and dedication to making his employees number one go beyond anyone's expectation."

    Jeff's wife, Ronda Banning, CTB, heads the accounting department of Trinity Transport. They are the parents of two little girls who attend private school locally.

    Jeff has just accepted a position on the board of directors of the Transportation Intermediaries Association. This national involvement is the next logical step in his own professional development.

    Keep an eye on Trinity Transport and Jeff Banning. They are quickly rising stars in the transportation field.

Details: www.trinitytransport.com

  What's Happening In The Industry
    • DAT Presents Two Wireless Services for Truckers
    • Megatrux Concludes 15th Anniversary Celebration with Fiesta
    • TruckTrax Internet Load-Posting Marks Service Milestone
    • McLeod Software Users' Conference Hosted - Biggest Ever
    • eTrucker.net Gaining Momentum and National Recognition
    • Express Technologies Opens New Headquarters
    • Shows Magic Touch
    • Transportation.com Drops Monthly Membership Fees
    • Schneider National, Inc. Rolls Out Web-enabled Carrier Portal
    • FleetXChange - New Online Community
    • Junonia Activewear Chooses Ryder for e-Commerce Solutions

A D V E R T I S E M E N T

A D V E R T I S E M E N T

DAT Presents Two Wireless Services for Truckers (back to top)

    DAT Services®, the original and largest freight exchange network, has announced that its owner/operator offerings now include wireless access to its 17,000-customer network via two separate services.

    DAT's Wireless Network of Truckers (WiNOT©) allows drivers to post their trucks for free to DAT's freight exchange network using wireless phone connectivity and a free truck-posting-only account.

    "WiNOT will help truckers make effective and economical business decisions in less than 10 minutes," said Galen Weaver, DAT Services product manager. "The more that independent truckers use WiNOT, the more they'll be able to reduce empty backhauls, pre-plan trips and become more efficient."

    For drivers who use DRIVERNet, a two-way wireless messaging service, DAT Services is now the exclusive provider of load information. DRIVERNet utilizes the HandSpring© Visor© PDA to offer a suite of driver services in a portable and easy-to-use technology.

    After revealing its WiNOT offering, DAT Services announced that it is working with Freightliner®, the leading heavy-duty truck manufacturer in North America, on a service that can be incorporated physically in trucks' cabs. The Truck Productivity Computer (TruckPC), which will enable wireless Internet access to DAT Services' freight exchange network, is designed to fit into any commercial truck with a single DIN radio slot. The TruckPC also features voice recognition software so drivers never have to take their eyes off the road.

    "From our offering owner/operators Web access with DATinternet to these new wireless offerings, we are continuing to add services that our customers use to make their businesses more efficient and profitable," said Weaver. "By partnering with Freightliner and DRIVERNet, DAT Services is showing its dedication to keep its offerings as mobile as its customers."

    Truckers who want the free WiNOT service may call the DAT Services' Customer Contact Center at 800-328-5317. TruckPC will be available to customers through Freightliner parts and service centers. DRIVERNet is available from DRIVERNet.



Rhonda Smith,
Theresa Bowyer
and Susie Perez


Megatrux Concludes 15th Anniversary
Celebration with Fiesta (back to top)

    As part of the year-long celebration of Megatrux' 15th anniversary, President Karen Pelle hosted a Fiesta Christmas luncheon for her staff. The Christmas tree was decorated with chili pepper lights. Cacti bloomed with poinsettia and colorful decorations included fiesta sunburst flowers and pinwheels.

    An individual pinata was hung over each person's desk, filled with gifts personally chosen for each team member. Sombreros were provided for everyone and a fajita luncheon was prepared in-house by a local chef.

    Each month throughout the year 2000, Megatrux staff, customers and vendors were treated to a new celebration for their part in the firm's success over a decade and a half.

Details: www.megatrux.com



TruckTrax Internet Load-Posting Marks Service Milestone (back to top)

    Fastrans Technologies has signed more than 4,000 subscribers since the load-posting service for TruckTrax has gone on the Web, in June of 1999. TruckTrax offers unlimited posting and searches, 24-hours a day, 7 days a week from any laptop or desktop computer for an annual charge of $200. Subscribers have real time access to fresh loads and trucks.

    TruckTrax has been built on a logistics platform established by Fastrans Technologies that uses web technology and a network efficiency system to match freight-hauling capacity and demand. The services creates a high-volume freight network that increases equipment utilization for fleets by reducing the number of layovers, empty miles and cheap freight.

    "Lately there have been a lot of stories about systems that are being set up to function as clearing houses where shippers, brokers and carriers can see and bid on loads," Fastrans President Alan Redszus observes. "The anticipation surrounding these announcements is interesting, when you consider that carriers desperately need to improve their profitability, rather than reduce their margins by bidding warfare. We've committed to improving carriers revenue and bottom line."

    Redszus states that most dry van truckload carriers run about 10% empty miles and have close to 100% annual turnover of drivers. "With better information and systems, the industry can haul substantially more freight with the same drivers and trailers, dramatically easing capacity constraints and reducing costs," he says,

    "The trucking industry is labor and capital intensive, with fixed costs that are not under our control which continue to rise. No one is going to come up with a fuel saving tractor anytime soon and the maximum capacity for trailers won't change. Trade-in values for equipment continues to decrease while insurance, fuel and labor costs continue to rise. Clearly the time has come to work smarter, not harder. TruckTrax helps level the playing field so companies can survive and thrive."

    Trucking industry analysts praise this type of arrangement, which they see as the antidote for much of what ails the truckload segment. According to a report published by James J. Valentine of Morgan Stanley Dean Witter in New York, "It's a major home run. From Wall Street's perspective, you have an industry that is extremely fragmented with tens of thousands of competitors. This technology accelerates industry consolidation." Details: www.trucktrax.com



McLeod Software Users' Conference Hosted
- Biggest Ever (back to top)


President of Tom McLeod Software addresses hundreds of
trucking company customers at the Opening Session.

    More than 600 of McLeod Software customers attended McLeod's largest Users' Conference to date at the Sheraton Birmingham Convention Center Complex. The 10th annual event provided information on management issues, hundreds of hours of free software training, the latest in McLeod Software development. and a trade show that featured leading technology vendors.

    "We were very pleased with the turnout." said Mark Stephens, Director of Marketing and coordinator of the three-day event.

    Conference participants Chris Ariotti and Chis Sacchia of Arrnellini Express Lines, Inc., said this about the McLeod Conference. "We both felt like the conference was excellent! We came away with considerably more information than we were initially seeking and valued greatly the general networking." Wiley Downing of Horney Truck Line, Inc. wrote McLeod Software, expressing his thoughts on the Conference, " ...this year's User Conference was a success, everyone from here thoroughly enjoyed the conference and received quite a bit of information from it."

    Some of the most prominent people in the trucking industry spoke at this year's Conference offering vital management information and experience. These speakers included TCA Chairman, Bob Hansen; TIA President, Robert Pulley; Alabama Trucking Association President and CEO, Frank Filgo; Industry Consultant, George Edwards, as well as Small Carrier University facilitators Tom Moore and Avery Vise, among others.

    McLeod had its largest Conference Trade Show with 41 leading technology exhibitors, such as Flying J, TCH, Comdata, Qualcomm, Terion, @Track Communications, Motient, Logistics.com, IDSC, JJKeller, DAT Services, Rand McNally, PC Miler,Lockheed Martin, Informix, and CarrierPoint.

    "Our customers really like how the trade show works in conjunction with the concurrent classes offered." Stephens goes on to explain, "The classes show how our software can seamlessly interface with the top technology service providers, and then the customers can immediately come out of a class to shop and compare the various features and services offered by the exhibitors...both the vendors and customers like this very much."

    The next McLeod Users' Conference will be held September 26-29,2001, at the Sheraton Convention Center in Birmingham, Alabama.

    McLeod Software is a global provider of dispatch and accounting software to the Truckload Carrier Industry McLeod' s LoadMaster TM products provide a completely integrated transportation management software system that interfaces with most popular mobile communication, mileage and fuel systems. In addition, McLeod has developed a Document Imaging System, an Interactive Voice Response System, a Private Network Notification Module, an EDI Editor Program, and an Internet Module for trucking companies.

Details: www.mcleodsoftware.com

A D V E R T I S E M E N T

A D V E R T I S E M E N T

eTrucker.net Gaining Momentum
and National Recognition (back to top)

    eTrucker.net has established itself firmly in the trucking industry in just over a year. According to its owner, Randall Publishing Co., it is "the leading news, information and lifestyle source for the trucking industry."

    eTrucker.net gained national exposure in the publishing industry at the November 2000 Folio: show in New York. Michael Newman, director of web development for Randall Publishing Co., was a key speaker at the show. Topics discussed included tactics for making it on the Internet, how to create successful online branding and how to generate revenue through subscriptions and distribution.

    Expanding its reach into the trucking industry, eTrucker.net was a major sponsor of industry seminars at the Great American Trucking Show held in Dallas. Internet business seminars and a ladies' forum, all sponsored by eTrucker.net, were held.

    The voting season was a busy time for eTrucker.net. The website launched a nationwide voting campaign urging drivers across the nation to vote by using absentee ballots or by casting ballots in their hometowns. eTrucker.net featured information on registering to vote and provided links to each state's contact for voting information. The website's efforts were covered by local media from Ohio to Alabama.



Express Technologies Opens New Headquarters (back to top)

    Express Technologies has opened its new high-tech headquarters in Wexford, PA, a suburb of Pittsburgh.

    The new facility has state-of-the-art technology which the company applies to the transportation and logistics industries.

    The relocation accommodates the growing staff of Express Technologies. The offices allow research, development, technical support, training, marketing, and administration to be under one roof. The facility boasts a sophisticated R&D lab, direct fiber backbone to the Internet, dedicated satellite tower, conference areas and training rooms.

    "This is an investment in our clients and in the future," noted Paul Maloney, president of the firm. "The new technology means that our software and upgrades provide more value to our clients. The expanded staff allows customers to receive better service and support. Clients who have visited our new offices really appreciate the investments we have made for them. The headquarters are our springboard for further growth."

    Wexford, PA is a suburb of Pittsburgh.

    Express Technologies provides software and systems for the transportation, distribution, and logistics industries. Two of the firm's flagship systems, LoadTech and TechWare, are among the leaders in the industry.

Details: www.xpresstech.com



Shows Magic Touch (back to top)

    To celebrate its 14th anniversary, MCD Transportation of Smyrna, TN invited customers to send in comments about the "magical qualities" of MCD service. The response was so impressive that quotes are reprinted on the company's web site. See www.mcdtrans.com

    The company also threw a gala celebration for customers and friends.



Transportation.com Drops Monthly Membership Fees (back to top)

    Transportation.com has announced elimination of its monthly membership fees. More than 6,000 transportation professionals who joined the online community can now access all applications and services for free, as well as new registrants.

    The portal web site has gone to a pay-as-you-go basis for services used on a transaction basis.

    Said a company spokesperson, "Going forward, we'll be expanding our focus to deliver more traditional logistics offerings requested by our customers. As a global transportation management company, our commitment is to help customers achieve greater efficiencies and profits both online and offline."

Details: Transportation.com



Schneider National, Inc. Rolls Out Web-enabled Carrier Portal (back to top)

    Schneider National, Inc. has announced the formal launch of its Web-enabled carrier portal, http://www.SchneiderCarriers.com where Schneider and its carrier partners meet via the Internet to match available freight to available capacity.

    The new site gives Schneider's more than 6,300 carrier partners access to a subset of Schneider's available freight; in turn, the site provides more capacity that will enhance and increase service to Schneider customers. This expanded capacity enables Schneider to cover overflow freight which does not fit the traditional flows in Schneider's network.

    The site initially launched Oct. 1, 2000 with freight search capability and has been drawing 47,000 hits per week. Now, the enhanced site, which opened a week ago, gives carriers additional tools to manage and utilize their capacity.

    Through the expanded site carriers can post their available capacity and rates on loads that interest them. Schneider provides not only real-time updates on available freight but also suggests loads to them -- all via the Internet.

    Here's how SchneiderCarriers.com works: Through a customized feature called "My Capacity," carriers post their available equipment. Schneider then automatically searches for loads that match that carrier's needs and posts them to the carrier's customized My Capacity page. After viewing load details, a carrier can post its required rates for that load or chat online real-time with a Schneider carrier representative, and can view whether their rate has been accepted or declined.

    Prior to developing the site, Schneider met with groups of its carrier partners to discuss what they needed from the site, said Linda Beth, vice-president of eBusiness Solutions for Schneider. "First, they said we had to have available loads, since most of the 125-plus transportation exchanges today do not have freight," Beth said. "And second, they said the site had to be fast and easy to use.

    "We combined Schneider's state-of-the-art technology with some of the leading Web designers and developers to ensure we met our carrier partners' second qualification: ensuring that the site was fast and easy to use," said Beth.

    Jeff Digby of Voyager Express Inc., a Colorado-based trucking company, said, "We have used SchneiderCarriers.com for the past five months and have found it is a user friendly site that is fast and precise. We especially like the online chat for rate negotiations. Schneider has helped keep our trucks rolling and eliminated our down time which has helped our driver retention."

    John Moore of intermodal carrier Comtrak Logistics said, "I like the Schneider Web site because it has up-to-date information. A lot of the other Web sites do not update their loads and there might be loads that have been gone for a couple of days that are still posted."

    Lesly-Ann Harris from Arrow Trucking, the largest trucking company based in Oklahoma, commented: "The Schneider Web site is very user friendly for finding loads for my trucks. I use several Web sites to find loads and I have had the best luck with SchneiderCarriers.com."

    Schneider National, Inc. is North America's largest truckload carrier with annual revenues of $3 billion. Schneider serves more than two-thirds of the Fortune 500 companies and a growing number of business-to-business e-commerce companies through its transportation and logistics services.

    Schneider National has a track record of using information technology to help its customers compete more effectively. Schneider is ranked within the top 100 companies on the current InformationWeek Top 500 List of Leading IT Innovators, and was recently named to the CIO-100 and InfoWorld Top 100 lists.

Details: www.schneider.com

A D V E R T I S E M E N T

A D V E R T I S E M E N T

FleetXChange - New Online Community (back to top)

    FleetXchange has designed the first online community for and driven by fleet professionals. The new venture brings trucking professionals together to share knowledge and expertise and combine purchasing power.

    "A Website Designed to Be Your Best Friend" is how Fleet Equipment magazine recently described FleetXchange. On FleetXchange, fleet managers can: find answers in the industry's largest online knowledge exchange, compare ratings and reviews on hundreds of fleet products and services, use the first community-driven purchasing system and compete for hundreds of dollars in weekly contests.

    Membership is free.

Details - www.fleetxchange.com



Junonia Activewear Chooses Ryder for e-Commerce Solutions (back to top)

    Ryder System, Inc. (NYSE:R), a global leader in logistics and transportation management solutions, announced it has been selected as a solutions provider by Junonia Activewear, a St. Paul, Minn.-based apparel company for women who wear activewear size 14 and up. Ryder will provide e-Commerce fulfillment support through its multi-customer e-Channel Solutions (eCS) operations.

    Under the contract, Ryder will provide business-to-consumer (B2C) fulfillment for sales of Junonia's 5,400 individual catalog and online style items through Ryder's high-speed, flow-through distribution center located in Alliance Industrial Park in the Dallas-Fort Worth metroplex. Alliance's on-site, multi-modal transportation system of air, rail and interstate highway provides efficient economic choices for moving products and goods throughout North America.

    Ryder will manage the inbound shipments, inspections and scanning of merchandise purchased from Junonia's 75 vendors. Ryder will check-in, tag and put-away merchandise items by product line, while maintaining optimal inventory levels to maximize sales demand.

    Ryder will also fill orders from both online and catalog sales and then schedule the most expeditious and cost-effective method of delivery to Junonia's customers. The shipment information will be maintained in the Internet tracking application, RyderFlow.com, providing real-time access of any order's status to

    Junonia and its customers. Users will have the ability to securely view product, inventory, order and receipt information from RyderFlow.com via an Internet browser. Additionally, Ryder will perform full return and exchange management, including pick-ups, inspections, re-packaging, return to inventory or vendors and disposition.

    "Partnering with Ryder will allow Junonia to improve service to its catalog and e-Commerce customers by using Ryder's expertise in logistics and warehouse management," said Anne Kelly, president of Junonia Activewear. "We can take advantage of its investment in state-of-the-art technology and equipment. This will allow us to focus our attention and resources on growing Junonia's customer base and increasing its product offerings."

    "It becomes increasingly important for companies to concentrate on their core competencies, especially as online sales continue to grow," said Sandy Orr, vice president of e-Commerce for Ryder. "Ryder is delighted to work with Junonia and looks forward to providing world-class fulfillment to Junonia as it continues to grow and expand internationally."

    Ryder's e-Channel Solutions provide a comprehensive, global network of e-Commerce capabilities for on-demand delivery, offering planning and execution of transportation and distribution services. The eCS technology is comprised of a fully integrated software suite that includes a Delfour warehouse management system (WMS), designed for speed and flexibility. One of the benefits of the Delfour WMS is its scalability, permitting inventory visibility through the Internet and management across multiple locations using a single system. This WMS will be used with an associated module for shipment management and an Internet tracking ability developed by Ryder.

    The eCS fulfillment solution serves over 80 percent of the U.S. population within 72 hours via over-the-road transportation from distribution facilities in Dallas, Texas; Los Angeles, Calif.; and Baltimore, Md. International fulfillment offerings through Ryder are also available in the United Kingdom and in Asia.

Details: www.ryder.com

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