News, Interviews, and Happenings From The Trucking World
Friday Short Haul - JB Hunt's Wreaths Across America, Plus.ai butter run, states look for zero emissions
Carriers muster to pick up Celadon drivers, employees
Will Amazon's pay-per-day plan influence the industry?
Freight volume and rates downturn turns into a 'bloodbath'
Friday Short Haul - Independent contractors getting booted out of CA, winter weather resources, ransomware attack
Knowing when to say goodbye to an unprofitable shipper
Schneider donates trucks; Congress considers women-driver-friendly bill
Friday Short Haul - CTA files lawsuit against California, Highway Hero nominations sought, video of "Move Over" crash
Tesla announces new electric Semi model
Not everyone happy with potential FMCSA clearinghouse delay
Friday Short Haul - AI taking driving jobs, CRV scam, Truckers protest AB-5, ELDs quit working
Investigators cracking down on truck accident fraudulent lawsuits
So you want to start your own trucking company?
Friday Short Haul - FMCSA emergency exemptions, snow plows, FedEx employee bribery charges
Human smuggling via big rigs on the increase
Carriers, drivers look at ways to deal with California's AB-5
Friday Short Haul - Millennials and trucking, Truckers Christmas Group, Navistar settlement
Too many drivers still don't know to "Move Over"
Are trucker strikes a thing of the past?
Friday Short Haul - Passenger car drivers, spotted lanternfly, women drivers
OOIDA makes final push for better HOS rules
Car-truck crash fatalities continue to increase
Friday Short Haul - Amazon's fleet of day cabs, legislator's disclosure, WTA petition
ATA chief takes on truck-accident lawyers
Lonely on the road? Get a furry friend
Friday Short Haul - Lab-grown meat, fraudulent freight brokering, FMCSA HOS committee, FMCSA Clearinghouse
UPS takes giant leap in its drone delivery program
Female drivers are safer bet for trucking companies
Friday Short Haul - Embark gets financing, FMCSA announces safety grants, Covenant exits Mexico routes, and trucking statistics
Emissions standards battle heats up between the EPA and California
Smog checks in the future for California truck drivers
Friday Short Haul - Volvo Dynamic Steering, Meals for 18 Wheels, speeding crackdown, OOIDA opposes legislation
Telematics could be insurance-premium-saving boon for fleets
54 percent of survey respondents still not impressed with telematics technology
Friday Short Haul - Walmart video, it's churn, not shortage, California's independent contractor bill, hemp drivers plea
TCA honors three Highway Angels
Now they're talking about "smart" trailers
Friday Short Haul - Detention-time comments, truck orders decline, diesel fuel shortage
Berkeley study says reducing independent truckers can alleviate climate change
Clearing up concerns about the drug and alcohol clearinghouse
Friday Short Haul - Hurricane Dorian, Speed limiter bill, Thank a Driver campaign
Georgia jury awards $280 million for truck-driver-caused multi-fatality
Friday Short Haul - New eCascadias, Top cities for truck driver jobs, Push against driverless trucks
Decision on California drivers' employee/contractor status coming down to the wire
UPS jumps on autonomous bandwagon with TuSimple investment
FMCSA publishes proposed HOS rule changes
Fleets, drivers coming to like automated manual transmissions
CVSA asks for new truck crash study
Friday Short Haul - HOS revisions delayed, AEB mandate proposed, Koch sued for sex discrimination
Kodiak Robotics takes lead in autonomous truck industry race
New York City combats rash of cyclist/truck clashes
Friday Short Haul - CRST wins lawsuit, OOIDA opposes insurance hike, UPSNav
Mechanics shortage equals driver shortage in intensity
DOT announces almost 1$ billion in grants to fix infrastructure
Friday Short Haul - DOL on sleeper pay, UPS drone delivery, Geowiz ELDs
FMCSA takes a look at assault, harassment of female and minority drivers
It's hot out there, what's a trucker to do? Can't idle.
Friday Short Haul - Utah truck rollovers, aging truckers, lifetime CDL bans
Truck-mounted LED billboards coming under fire
Trucker 'drones on' with unique approach to teaching driving skills
Friday Short Haul - Rhode Island tolls, human smuggling, contractor vs employee status
ELD mandate deadline looming, many still not compliant
New "boot" device being deployed to threaten Walmart overnighters
Friday Short Haul - Prime Inc vs Amazon, mother fights HOS changes, truck drivers appreciation week
Proper way to fly the American flag on your truck this Fourth of July
Roundabouts are becoming popular; but are they best for trucks?
Friday Short Haul - Skills test proposal, driver shortage, hemp sentencing, driverless trucks
Experts warn of active wildland fire season
More states signing on to enlist truckers against human trafficking
Friday Short Haul - Shippers of Choice, insurance rates, wheel spikes, WIT award
Freight numbers not holding up to 2018's highs
Truck safety group urges purges of drug abuse drivers
Friday Short Haul - Self-driving certificate, truck platooning, trade war stacking up cargo
HOS waiver coming soon for fireworks haulers
FMCSA takes a further look at detention time
Friday Short Haul - Autonomous delivery, HOS rules changes, CDL retest
Roadcheck 2019 in effect this week
Hemp arrest prompts USDA memo
Friday Short Haul - Waymo big rigs, Move over sting, Under-21 comments
Severe weather prompts renewed emergency declaration
Memorial Day holiday is prime time for cargo thefts
Friday Short Haul - Hauling hemp, road rage fatality, new rules for autonomous vehicles
Autonomous trucks on USPS test run
Future era of cab-less trucks will be the end of HOS rules
Friday Short Haul - FMCSA under-21 comments, Tesla autonomous car crash, 24,000 drivers sign contract with YRC
Under-21 interstate drivers getting serious look by FMCSA
Trucker Buddy program matches drivers with a classroom; everyone wins
Friday Short Haul - Driver awarded $80 million, ODFL driver wins, loading dock black hole
Storm breaks out from Rockies, slams into Midwest, South
Capacity issues have shippers looking at private fleets
Friday Short Haul - HOS rules, dark skies, Falcon drivers
'Bug' permits now required for four eastern states
Simulator use is catching on for schools, carriers
Friday Short Haul - Thinking electric, Penske opens charging station, border crossing crisis, railroads taking trucking business
ELDs might not be the panacea that was hoped for
Truck drivers may soon see "phantoms" driving yard trucks
Friday Short Haul - Nikola big rigs, WIT welcomes Peterbilt, Oregon crashes, Border crossings
Carriers claim financial benefit of putting up drivers in hotels
Uber's IPO application reveals interesting data about its freight brokerage business
Friday Short Haul - CDL examiner arrested, tolls proposed for trucks, marijuana use on the rise
Smart Load Board will get carriers the loads they need
Huge lines and long wait times greet carriers at Mexico border
Friday Short Haul - Marijuana, ATA campaign, personal conveyance rules
Over-the-air downloads revolutionize parameter updates
Don't get scammed by skimmers
Friday Short Haul -- New Cascadias honored, motorist survey, U.S, Xpress awarded, rest stop parking
Legislators address underride collisions, propose more underguards for trucks, trailers
Motorists soon may encounter a different kind of truck convoy
Friday Short Haul -- Women in Trucking, irate motorist, FMCSA eases HOS, Safe-Cap
Recent survey shows cost of roadside repairs is rising
FMCSA announces drug and alcohol clearinghouse website
Friday Short Haul - Swift settlement, driver shortage myth, TCA Best Fleet award
The hidden danger of looking but not seeing
Accident scammers target trucks for financial payout
Friday Short Haul - Snow on the roof, bypassing toll road, Waze under fire
Retailers blame driver shortage for price increases
Drivers' smartphones may be clue to road roughness
Friday Short Haul -- Freight rates, HOS changes, tonnage reports
New tax changes hit drivers hard
FMCSA to implement under-21 interstate driver program for former military
Friday Short Haul -- Connecticut tolls proposed, hydrogen fuel-cell trucks, cell phone use
Congress committee looks at state of America's highways
Number of cargo thefts is down; but dollar value about the same
Friday Short Haul -- Crossing the border, CA sues FMCSA, Lobbying against larger trucks
Detention - A problem still in search of a solution
February Highway Angels honorees named
Friday Short Haul -- C.R. England announces pay raises, eCommerce impact on trucking, TCA announces best fleets
Is a guaranteed minimum pay the solution to the driver shortage?
Long CDL testing wait times cost economy billions of dollars; not helping driver shortage
Friday Short Haul -- Walmart hiring, Uber Freight App, Speed-limiter Law, America's Road Team
Cranking -- The Good, The Bad, and the Ugly
California survives challenge to its low-carbon fuel standards
Friday Short Haul - Highway robbery ... autonomous trucks ... new trailers
LithiumHub enters jump-starter market with Jumpbooster JP30
2019 Looks Good For The Transportation Industry
Raymond Burt named TMC Trainer of the Month for February 2018
TMC Transportation Announces Recipient of Prestigious Wheel Master Award
TMC Transportation Named The Home Depot’s Flatbed Carrier of the Year For Fourth Straight Year
Pay Raises & New Peterbilts for PAM Drivers
New DOT Drug Testing Rules Effective Jan 1, 2018
Amtrak Derailment: Trucks Haul 270,000 Pound Locomotive Engine During Cleanup
Pepsi Places Largest Order Yet For Tesla Electric Trucks
Kavin Hallett named Trainer of the Month for October 2017
Over 100,000 Truck Drivers Likely Have Undiagnosed Sleep Apnea And More Testing Is On The Way
Drivers Share Their Best Tips, Tricks, And Secrets For Life On The Road
Drivers Are Losing Money By Taking The Wrong Approach
Truckers and Guns: What Is and Is Not Legal
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The Truck Stop Survival Guide: Advice From Experienced Drivers
The Worst Cities For Traffic In The U.S. For 2017
We Ask Drivers How They Would Make The Logbook Rules Better
Self Driving Trucks Are Not Coming Anytime Soon
Will Amazon's pay-per-day plan influence the industry?
Last Updated: Tue, November 26, 2019
When Amazon began buying thousands of Prime branded semi-trailers a few years ago, and more-recently was reported to be taking delivery on a large number of branded day-cab tractors, there was no doubt among industry watchers that the online sales giant was going to become a player in the freight-hauling business.
Everybody knows that Amazon does things differently, virtually revolutionizing the way the world shops.
Now, the word is out that Amazon is taking a revolutionary approach to paying drivers who will be hauling their cargo … changing the way drivers have been paid since about the 1930s.
Long story, short – Amazon has been using a method for the past couple of years to pay drivers by the day, eschewing the almost century-long method of paying drivers by the mile.
This information comes by way of Business Insider, which got access to an Amazon internal company document outlining the pay plan.
In an interview with Business Insider an Amazon spokesperson confirmed the pay plan.
“This approach has been used for the past two years with the hundreds of line-haul service partners in Amazon’s carrier network who have driven millions of loads this year globally,” the representative told Business Insider.
“By offering a day rate, carriers are able to see exactly how much they’ll make and know they’ll be fully utilized and compensated,” the spokesperson added. “We’re proud of the positive partnership with our widespread carrier base who do a great job transporting packages for our customers.”
Drivers are paid for a day's work on a three-tier scale.
- Solo1 will pay drivers from $600 to $800 for each work day. The variable rate depends on where the driver's starting locations are at. For example, drivers running out of Bradley International Airport, Connecticut, and from locations in Philadelphia will receive the highest pay. Some cities like Miami and Jacksonville, Florida; and Mobile, Alabama, will be on the lower end of the pay scale.
- Solo2 drivers will make runs that require more than one day away from their starting locations. A two-day run in a sleeper cab with a 10-hour rest break will earn the driver from $1,360 to $1,750. Phoenix, Arizona, and Reno, Nevada, rank at the top pay for this tier, with Charlotte, North Carolina, ranking near the lower end of pay.
- The third tier of pay goes to team drivers. A team can earn from $7,545 to $10,000 for sharing driving during multi-day runs. The best location for earning the highest pay is for teams who make runs from Denver, while the lower pay scale goes to teams running out of Chattanooga, Tennessee, and Atlanta, Georgia.
Truckers are suspicious of how well this will work for them
Independent drivers and trucking companies that have previously signed up for Amazon loads say the sales giant pays on average about 18 percent less than prevailing spot rates, with a proportionally greater number of dead-head miles.
A New Jersey-based commercial carrier who experienced Amazon's pay-per-day told Invest Records that his take-home pay declined as a result of the change in payment method.
Another spokesman for a regional trucking company reported to Business Insider that, “We didn’t make it past the initial bid process because the rates were just ridiculous,” he said. “I love Amazon. I get all of my stuff off of Amazon, but I don’t want to do business with them.”
With these sentiments in mind, it is thought, Amazon logistics managers hope that changes brought about by the new kind of pay plan will entice drivers to sign up for loads, and apply in the future to be company drivers.
“My guess is Amazon may have had a hard time getting truck drivers, so they thought, ‘Let’s make it more attractive for trucking companies and to help us,'” Kevin Sterling, Global Securities’ managing director, told Business Insider. “It’s a win-win for everyone.”
The reason that Amazon drivers end up running more empty miles lies in the fact that so many loads are run from dedicated Amazon facilities to other Amazon facilities, often having no return load – and as every trucker knows, dead-head means no pay in the current pay-by-mile scenario.
Amazon is betting, too, that their new driver payment plan will align with the increasing clamor out there among drivers that they should be getting paid for work accomplished beyond miles rolling down the highway.
Court cases are becoming more frequent with drivers claiming that per-mile pay deprives them of mandated minimum pay for performing such non-driving tasks as waiting at detention, searching for empties and parking while taking mandated rest breaks while being fully responsible for the freight in their trailers.
One study by the U.S. Department of Transportation found that detention costs truck drivers up to $1.3 billion in pay each year.
Sources: Invest Records,
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