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Today, we take a look at the close ties between the Port of Houston and the family of Colonel Ghadafi, the embattled leader of Libya.

Gas prices are pushing through the $4 a gallon limit; however some pundits are predicting $5 gas by the end of the year. One reason for rising gas prices is the concern over the safety of oil supplies from the Middle East, which includes the war torn Libya. As President Obama gave the order for a no-fly zone to be implemented, and in conjunction with coalition allies, launched a strong series of plane and missile strikes against key targets in rebel-held areas of Libya, it has comes as a shock to learn that the Port of Houston has been forging extremely strong ties with the ruling Ghadafi clan.

Khamis Ghadafi Photo Session with Port of Houston Officials

Roll back the clock to January 2011, and the Port of Houston was playing host to a very important person’ Khamis Ghadafi, the Libyan ruler’s son.  A photo session was held with Port of Houston chairman, Jim Edmonds, and the man which the US administration is calling a ‘bloodthirsty special forces commander…[who] used mercenaries to massacre civilians”  in Libya.

The close ties between the Ghadafi clan and the Port of Houston stem from a proposed contract for the construction of five port facilities in Libya.  The Port of Houston was involved in negotiations for over two years, which also included offers to share technology and information on security practices.

Remember this is Libya – a terrorist state which has been responsible for numerous atrocities carried out on American citizens, including the Lockerbie bombing of a Pan Am 747 which crashed in Scotland.

So far, the Houston taxpayer has forked out over $60,000 in airfares alone, to woo the Libyan leadership, which includes a $12,000 plane ticket.

The January visit by Khamis was prematurely ended because of the increasing unrest in Libya, which has spilled over into outright civil war. The no-fly zone has now been implemented and Ghadafi’s military forces are being pushed back by the rebels who have held and retaken key installations and cities in the country.

The first issue is that all the taxpayer money expended has been lost. No contracts will be honored or entered into whatever the outcome of the civil war in Libya, and even if Ghadafi remains in power he is not likely to hand over cash to any US entity after the US military has bombed the country. The second question is though diplomatic tensions have eased between the two countries, just what was going on with the Port of Houston getting into bed with a bunch of terrorist killers?

Today, Houston Truck Deals will focus on the leasing and some of the advantages of buying a semi trailer or tractor unit through financing.

Leasing holds many advantages to would be purchasers of commercial vehicles and equipment. Outright purchase of a tractor trailer unit is impossible for many operators, however even where you have the funds available to pay for a vehicle outright there are compelling financial and business reasons not to do so.

Leasing has several advantages which we shall take a look at here:

Zero or Low Upfront Costs

Even if you are buying a used trailer, or a very old tractor unit, you are going to be shelling out a lot of cash. With a lease you can get yourself behind the wheel of a reliable and up-to-date model without the need for a large deposit. Many lease deals do not need you to come up with any money upfront and those that do require some payment upfront require at most only a fraction of what you would need to pay if you were buying a truck outright.

If you are buying equipment outright you are tying substantial sums of money up in fixed assets which will no longer be available to your business should you need it. By keeping your capital liquid you reduce the risk to your business – ultimately running out of cash is fatal to any business.

Tax Breaks

If you take on a lease you gain a double bonus from the IRS. First of all, you will either be able to claim tax depreciation on the tractor trailer equipment or the finance company granting the lease will do it for you and pass the benefit on to you through reduced lease payments. Either way, you have all the tax breaks as if you had gone out and bought the equipment yourself and put it on your company balance sheet.

The second major tax break with a lease is that the interest element is tax deductible, which means you are able to reduce your tax liability even further. This is something you cannot do with an outright cash purchase.

Break Clauses

If you buy a tractor unit and then a year later decide you do not need it or financial circumstances arose such that you need to get your money back out of the unit, unless you can sell the equipment you are stuck with it. If you lease equipment you can ask for lease breaks or break clauses to be included in the agreement. A break clause will allow you to cancel or break the lease and return the equipment, usually without any financial penalty being incurred. In essence, you are passing on some of the business risk to the finance company and ensuring your business maintains its options.

Greenstar, the Houston-based waste disposal and recycling company has fired two employees it claims diverted business from it to their own company.  It is also claimed the two misused company resources to enrich the trucking company they had an ownership interest in.  The sums claimed are unknown at this time, however punitive damages are also being claimed in what is quite probably a multi-million dollar law suit.

Greenstar recycles over 2 million tons of waste each year, and the alleged wrong doing stems from the contract the company has with San Antonio. Greenstar claims to be the largest recycling company in the US & Canada and operates 14 recycling and waste disposal plants.  Two plants provide services to San Antonio and Greenstar has a revenue sharing arrangement with the city which saw the taxpayer receive $3.7 million in exchange for paying only $1.9 million in return to Greenstar.  San Antonio’s director of Solid Waste Management declined to comment stating only that they were unaware of the legal dispute.

The two ex-Greenstar employees are Timothy Haecker and Mark Freiermuth, who are named along with several companies as co-defendants including Maverick Waste Solutions along with LoAmJo, the successor company to Maverick.  Also named as a co-defendant is LoAmJo Enterprise’s principal, John Linder.  The defendants claim no wrongdoing and intend to countersue.

Haecker worked as a financial analyst for Greenstar until dismissal over this incident. It is alleged that he and Freiermuth overrode management controls to direct Maverick to haul recycling waste, but Greenstar’s own trucks and drivers did the work (without Greenstar being paid for it).  It is part of Greenstar’s business practice for other carriers to be contracted in waste and recycling haulage.  The defendants deny they controlled Greenstar’s trucks and were not employed by Maverick nor benefitted in any way.

The lawsuit claims Maverick was paid $250,000 to dispose of waste residue, 6,000 tons of which ended up back at Greenstar’s own plant.  An investigation was commenced by Greenstar after suspicions were raised at their Cornerway plant. The lawsuit is filed in Bexar County and will probably be heard later this year, though a ruling is unlikely until 2012.

In an unrelated matter, Greenstar is looking at a $53,000 fine from the Occupational Safety and Health Administration in respect of citations due to its disposal workers not being properly protected while disposing of hypodermic needles and other hazardous waste.

There have been several issues affecting the Houston trucking community in December 2010, bringing forth news announcements which are worth taking notice.  We’ll provide a monthly roundup of issues and announcements here at Houston Truck Deals so you stay abreast of developments in one place.

If you have an announcement to make, or an issue you want covered, then shoot us an email or leave us a comment on the blog.

We’re happy to oblige.

Gulf Diesel Prices

Gulf Coast area diesel prices have risen by more than 5 cents a gallon to $3.132 for the first week of December (price source: US Department of Energy).

The US Department of Energy (DOE) publishes a monthly energy bulletin, Short-Term Energy Outlook, which is forecasting a national average gas price of $3.23 for 2011.  Higher crude oil prices and oil companies seeking to take higher profits are the two key components behind the price hike.  The bulletin also noted that average gas prices are 35 cents higher this winter ($3.14) compared to winter 2009.

Houston Gets New Black Oil Terminal

Battleground Oil Specialty Company, based in Houston, has announced a new black oil terminal is to be constructed in 2011.  The terminal will increase Houston’s capacity to handle a wide range of oils and byproducts including crude and slurry oil.  The development will provide 2 deepwater docks, one dozen barge slots, one dozen rail slots, crude pipeline and 7.8 million barrels of additional oil storage.  In addition, additional planned development will further enhance the terminal capacity with two more deepwater docks, 8 barge slots and a further 2.5 million barrels of oil storage.

The facility is expected to become fully operational by early 2013 with construction commencing end 2011.

County Judge Ed Emmett to Discuss Houston Transportation Issues

Judge Emmett was a member of the influential Transportation Committee during his tenure in the Texas House of Representatives between 1979 through 1987.  In addition, Judge Emmett acted on several other state and national committees handling transportation issues prior to his appointment by President H.W. Bush as a commissioner on the Interstate Commerce Commission in 1989.

Judge Emmett will be the key speaker and panelist at a meeting of the Transportation Club of Houston, to be held on January 19, 2011.

Westway Terminal

Westway Terminal Company also announced the expansion of two new terminals in Houston. Construction has started on one terminal with 4 oil tanks providing 4.2 million gallon storage capacity. Terminal 2 is at Phase 5 stage of development and has also started construction. Phase 5 will add 4 new storage tanks providing an additional 2.5 million gallon capacity.  Both terminal developments are scheduled to be completed the second half of 2011.

“There is more credit and satisfaction in being a first-rate truck driver than a tenth-rate executive”

B.C. Forbes

Forbes was the Scottish born founder and editor of Forbes Magazine; the glossy pages detailing the wants and lives of the luxury and business set.  Back in 1917 when he said this, maybe being a tenth-rate executive was still OK – it probably meant you didn’t end up in the trenches of Europe during the First World War for a start!

Today, many truckers are actively pursuing a career over the road instead of an office job. This applies even to college graduates – and you will be surprised at how many do take up trucking as a career and lifestyle choice.

Let’s take a hard look at trucking as a career option.

The Basics

To be a commercial trucker you must possess a CDL – Commercial Drivers’ License.

Getting this can be expensive and you have two options – sign on with a carrier who agrees to put you through driver training, but on the condition you remain with them for a period of time afterwards so they can recoup the cost of training you for your CDL.  A good example is the Schneider National program

The alternative is you pay for it yourself.

CDL driver schools range in quality and are not cheap so the former option is usually taken up by rookies.

A CDL requires you pass a series of tests, both written and on the road, involving trucking rules, road regulations and your ability to handle a commercial vehicle.  There are different classes of license depending on the type of rig you intend to drive and you will also need a learner’s permit.

In Texas, all CDL applicants and holders are deemed to have given permission to be tested for drug and alcohol use.

Get a copy of the Texas Drivers Handbook and use this as your bible through driver training.  You can also get a free copy from the any of the DPS offices (for the Houston offices just follow the link here).

Life on the Road

Before starting down the road on a trucking career, you need to consider what life will really be like.

Typical salaries for a rookie on a driver training contract will be around $40,000, though conditions and benefits vary widely. Second year earnings can be expected to be in the $55,000 to $65,000 range as a driver.

You will spend a lot of time away from home.  By a lot of time, we mean most of your life – both waking and sleeping.  Married applicants and those with a need to be close to home and family will find the greatest difficulty in adjusting to a life on the road. This must be carefully considered because taking time off for family events creates scheduling difficulties for carriers and adversely affects their profitability.

After graduating from trucking school and heading into the “real world” to work as a trucker for a company, you’re probably not at the end of your training. Instead, the company you work for is most likely going to assign you a trainer to help get you started. Once the trainer feels like you’re ready to hit the road, then you’ll be able to get behind the wheel of a big rig on your own. Even seasoned truck drivers may have to go through additional training if they change companies or are being considered for a promotion.

As a trainee, you’re entering into a complex relationship where it is easy to step on toes. You might be worried that your trainer knows less than you do, or you may be hesitant to have someone “tell you what to do” or “boss you around,” but there are a few things that you can do to make the situation better for both you and your trainer.

First, you can realize that the trainer might actually have something to teach you. If you’re fresh out of driving school you might have all the by-the-book answers, but your trainer knows a lot more about actually driving a truck. In addition, your trainer will be able to give you advice about the company you’re working with,such as their rules and regulations.

Newbiedriver.com, a web site for new truck drivers, urges drivers in a trainee-trainer situation not to challenge trainers to “a war of who knows more.” Also, the web site advises new truckers not to forget what they learned in trucking school, as the trainer might suggest, but just add to it.

As a trainee, you might be feeling frightened or apprehensive about driving a truck for the first time outside of driving school, but letting those feelings come out as anger or frustration with your trainer is not the best way to deal with it. If you do that, it will just make your frustration even worse and your adjustment even harder.

Microsoft Streets & Trips 2009

Like the recent release of the Beatles re-mastered tracks, there’s nothing better than an update on an old classic. That’s why Microsoft’s Streets & Trips needs no introduction, save to say that truckers have been using the program for years, and they love it. If you’re not convinced, check out Amazon.com’s reviews to get a better picture of how many truckers love this program. A majority gave it five out of five stars, and only 30 reviewers out of nearly 200 ranked it at under three stars. And for only $35 for the newest release of the program, truckers should be excited. Students who use Microsoft Office products for their schools often have to pay well over $100. But if cost and popularity won’t convince you, here are some stats that might.

This user-friendly product makes navigating your trip easier than other software, which requires truckers to take an extended amount of time to familiarize themselves with the product. Despite the fact that this product was described as “by far” the most user-friendly trucker software among comparable packages, at least one reviewer on Amazon argues that the program tends to only get negative reviews from people who do not know how to use it. So while it does require some experience to get everything right, this product can be used by truckers who don’t have degrees in computer design.

In addition to being user friendly, Microsoft Streets and Trips is accurate, and genuinely helps truckers do their jobs with less stress than they would without the software. Truckers can choose to automatically start their GPS when the program begins running, and the smart program also offers automatic rerouting should truckers encounter construction, traffic, or other hazards along the way. Of course, these options can be turned on and off in order to customize the software for the trucker’s own personal use.

This innovative GPS software gives truckers 3D maps of the streets that they are traveling, along with indications of points of interest, such as truck stops, large parking lots, and rest areas. If you’re driving with Microsoft Streets and Trips 2009, you can rest assured that you’re going to get where you are going faster, easier, and with a helpful navigator. And since you’re getting all of this from a name you can trust – Microsoft – you know that you’ll really be heading in the right direction. The popular, inexpensive, and accurate software is available from Amazon.com, where you can read more about its features and popularity among truckers. But if you’re looking to nab a copy of this re-mastered classic, you can do this at Amazon.com too, and with the integrity of Amazon, the worldwide retailer that has been offering Internet to home sales for years.

What are some simple things that have made our lives infinitely easier?  People often used the phrase, “the best thing since sliced bread.” It’s true, how often has sliced bread made life easier for you on the road? You grab a couple of slices and some lunchmeat or PB&J and you’ve got a quick, easy snack.  Sliced bread makes us see that sometimes the simplest inventions are what makes our lives the easiest.

The same lesson can be learned from the Accutire Digital Tire Gauge.  It’s a simple stick that is about as long as an eyeglass case.  Costing under $30, it’s not the most expensive invention. Surely, it’s not as life changing to the over the road trucker as the GPS system or the laptop. But the Accutire Tire Gauge does make life a whole lot easier.

Using a traditional tire gauge can be the last straw in the life of a frustrated trucker who has had a long day.  Stopping to get fuel, you want to get in and out and back on the road as fast as possible, but you have to check the air in your tires.  You want to meet the standards set by environmental agencies, transportation groups, and your employer. You also want to make sure you’re not driving on flat tires, using more fuel than necessary and paying for that used fuel.

But using a traditional tire gauge makes you bend to try to see the numbers indicated, stooping uncomfortably while you try to keep the gauge on the tire. Because you already have to do so much stooping, bending, sitting, and lifting when you’re delivering a load from one place to another, stooping to check the tire pressure is just one more ache and pain you don’t need.  And if you’re trying to fill that tire, the frustration, stooping, bending, and attempting to read gets even worse.

Because the Accutire displays the tire pressure in bright, red, large numbers that are easy to see—no more stooping.  And since the Accutire is just that, accurate, you don’t have to worry about whether or not you got the tire pressure right.  Going from wheel to wheel checking tire pressure gets to be frustrating when you’re driving a semi-truck.  Even if you have an automated tire pressure gauge in your cab, having an Accutire is a smart decision, making checking tire pressure incredibly easy if you have malfunction.  And for under $30, this invention should go right in your box of on-the-road necessity.

 Accutire, or a similar model, is also sold at truck stops and automotive stores across the country.  Picking one up is simple, easy, and will save you a great deal of frustration in the long run.

Driver Etiquette

For some drivers, being alone in a cab can be a much-needed relief from social life. Being alone gives some drivers time to reflect and think that others working 9-5 jobs in cubicles rarely get. But just because drivers are alone in their cabs, this doesn’t mean that they are exempt from extending professional courtesies to their fellow drivers. Like most other jobs, these courtesies are things that can be learned from being on the job. Thankfully, one web site, Newbie Driver , has compassion for the new driver.

According to Newbie Driver, some of these courtesies are slowly dying out, but they are still good ways to show that you are a professional, kind driver. For instance, Newbie Driver states that truckers sometimes wave at each other on two lane roads, reminiscing back to before the CB radio, when truckers would communicate important information.

Many courtesies are designed with safety in mind. For instance, a trucker will flash his or her lights when another truck has passed him or her in order to tell the other trucker that it is OK to re-enter the lane. The passing truck might respond by flashing the taillights or saying “thanks” over the CB radio. Other safety courtesies include using turn signals and four-way flashers to communicate turning, changing lanes, merging, or slow movement.

Other courtesies are intended to relieve frustration and make sure that truckers can get good rest and then get quickly on their ways. These courtesies include keeping headlights off in truck stop parking lots at night, only using the horn in an emergency at a truck stop, and pulling into a parking spot at a truck stop instead of blocking the fuel line.

While many of these things seem like common courtesies, it would be easy for a trucker to break some of these commandments of the road if he or she did not know their importance. Because you probably wouldn’t want a trucker waking you up with a horn or a bright set of lights, it’s good to avoid those kinds of things when encountering other truckers. New truckers can discover more about this topic or unwritten rules of the road at Newbie Driver.

Trucking News

KANSAS CITY, MO (June, 2009) Arrow Truck Sales, Inc., North America’s leading  pre-owned truck source, announces an unprecedented 4-year / 400,000 mile comprehensive engine warranty option on pre-owned units.  This program provides extended protection for the equipment purchaser who wants to take the worry out of buying used. With the addition of this new coverage plan, Arrow now offers the widest coverage of extended warranties for medium and heavy duty trucks in the industry.

Unlike other used truck warranties in the marketplace, Arrow’s warranty includes full coverage (not just major components) during the entire 4 year period. In fact, Arrow’s warranty option is longer than many manufacturers’ standard new truck engine warranty. This new extended warranty plan is available on 2005 and newer Volvo VNLs with less than 500,000 miles.

“Arrow Truck Sales continues to be a true innovator and cutting-edge leader in the used truck industry,” said Carl Heikel, Arrow’s President and CEO. “We have continually led the charge in providing extended warranty options to the used truck buyer. Buyer satisfaction, and exceeding our customers’ expectations, have truly been the key to Arrow’s success in the industry for nearly 60 years.”

“We have always led the industry in this area,” said Lee Wallace, Arrow’s Vice President of Sales and Marketing. “We began including a free 30-day warranty on our trucks in 2003 and started offering a 3 year/300,000 mile warranty program in 2007. Today, we offer an extended warranty that’s unmatched by any of our competitors. Our goal is take the worry out of buying used equipment.”

Founded in 1950, Arrow is headquartered in Kansas City, MO and has 16 retail locations throughout the U.S. and Canada.  Today, Arrow is North America’s leading source of pre-owned heavy and medium-duty trucks. Arrow carries all makes and models, maintaining a diverse inventory of more than 2,000 over-the-road tractors, vocational and specialty vehicles, and trailers.

Arrow Truck Sales, Inc. is part of the Volvo Group of companies. The Volvo Group is one of the world’s leading manufacturers of trucks, buses and construction equipment, drive systems for marine and industrial applications, aerospace components and services, and is one of the world’s leading producers of heavy-diesel engines (9-16 liter). The Group also provides complete solutions for financing and service. The Volvo Group, which employs about 100,000 people, has production facilities in 19 countries and sells their products in more than 180 markets. Volvo Group sales for 2008 amounted to over 46 BUSD. The Volvo Group is a publicly-held company headquartered in Gothenburg, Sweden. Volvo Shares are listed on NASDAQ OMX Nordic Exchange and are traded OTC in the US.

Don Mueller
Director of Marketing & Advertising
Arrow Truck Sales, Inc.
816.627.4919
dmueller@arrowtruck.com

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