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The Great Recovery … Or NOT

The Great Recovery … Or NOT. A Trucking Company’s Prospective Harold Sumerford, Jr., CEO J & M Tank Lines, Inc . March, 2011. Energy Cost Equipment & Component Cost Government Regulations and Laws Driver Shortage. M ajor Issues Hindering Recovery. Anybody's Guess?

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The Great Recovery … Or NOT

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  1. The Great Recovery…Or NOT A Trucking Company’s Prospective Harold Sumerford, Jr., CEO J & M Tank Lines, Inc. March, 2011

  2. Energy Cost • Equipment & Component Cost • Government Regulations and Laws • Driver Shortage Major Issues Hindering Recovery

  3. Anybody's Guess? • Increase in Fuel Prices • Reconstruction of Japan • Fuel is 33.7% higher than last year Energy Cost

  4. Higher demand for metals to make equipment • Truck cost increased about 30% since the 2007 EPA engines • Increased Tire Cost • Possible 20% increase this year • Low supplies due to the economy • Extreme weather & aging trees: limited supply of natural rubber • Tsunami in Japan shutdown many tire manufacturers • China buying a larger portion of the tire manufactured in China • Cost of natural rubber is up almost 100% since August 2010 Equipment & Component Cost

  5. Highway Bill • Truck Size and Weight • Mandating Onboard Truck Technology Changes in Government Regulations & Laws

  6. Onboard Trucking Technology: People Net • Enforcement of the Hours of Service • Inexpensive to use as compared to paper logs • Low cost of entry into an e-log system • One reason not to use the e-log: to run illegally Changes in Government Regulations & Laws

  7. FMCSA: Proposed Changes in the H.O.S. • Trucking productivity would go down about 5% • Cost to Shippers will increase probably 1% to 3% • Driver pay will have to increase a minimum of $2,500 per year Changes in Government Regulations & Laws

  8. CSA 2010 • Drivers and Companies are held accountable • Accident: Driver at no fault; score increase • Pre-employment Screening Program (PSP) • Help identify the problem drivers • Probably force out more drivers than the CDL program and Drug Testing Changes in Government Regulations & Laws

  9. Driver Shortage • Leaving industry during the recession • Leaving due to CSA 2010 • Drivers’ pay down compared to other industries • Trucking companies replenishing their fleets, not increasing the size Truck Drivers & Capacity

  10. Harold A. Sumerford, Jr. Chief Executive Officer J & M Tank Lines, Inc. 7051 Meadowlark Drive Suite 102 Birmingham, AL 35242 1-800-456-8265 www.jmtank.com Any Questions?

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