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Trailer Tracking: Background Trailer Tracking: Background IssuesIssues

Dan MurrayDan MurrayJanuary 8, 2008January 8, 2008

ATRIATRI

501(c)(3) charitable research organization501(c)(3) charitable research organizationGoverned by 15 member Board of Governed by 15 member Board of DirectorsDirectorsRAC:RAC:

Freight CarriersFreight CarriersFederal/State GovernmentFederal/State GovernmentLaborLaborSuppliers/vendorsSuppliers/vendorsAcademiaAcademia

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Board of DirectorsBoard of Directors

Key RealitiesKey Realities

TruckingTruckingProfit Margins of 3.6%Profit Margins of 3.6%Highly CompetitiveHighly Competitive

640K Carriers with U.S. DOT; 100K in last 3 years640K Carriers with U.S. DOT; 100K in last 3 yearsCompetitive edges are neededCompetitive edges are needed

Cargo Claims up/costlyCargo Claims up/costlyInsurance costs have increased substantially since 2000Insurance costs have increased substantially since 2000

Asset Costs up/costlyAsset Costs up/costlyTruck Tractors = $100K +Truck Tractors = $100K +Trailers = $20K Trailers = $20K -- $40K$40K

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Why Track?Why Track?

Operational IssuesOperational IssuesCargo Management / Shipper RequirementsCargo Management / Shipper RequirementsCongestionCongestion

Asset ManagementAsset ManagementTrailers = JIT StorageTrailers = JIT StorageLost trailers = Lost revenueLost trailers = Lost revenueReplacement costs = Lost profitReplacement costs = Lost profit

Safety/SecuritySafety/SecurityPrePre--9/11 Security = Cargo Theft9/11 Security = Cargo TheftPostPost--9/11 Security = National Security9/11 Security = National SecurityBlended Confusion Examples: Fuel and CyanideBlended Confusion Examples: Fuel and Cyanide

The Cost of CongestionThe Cost of Congestion

Idled trucks cost industry $7.8 Idled trucks cost industry $7.8 billion/243 million hours in 2004 billion/243 million hours in 2004 In 2006 industry spent $103.3B on In 2006 industry spent $103.3B on diesel fuel; 2007 estimate: $110.9Bdiesel fuel; 2007 estimate: $110.9B

22ndnd highest operating expensehighest operating expenseAs much as 25% of total operating costsAs much as 25% of total operating costs

No No ““congestion creditcongestion credit”” in HOSin HOS

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Top Industry Issues: 2005 Top Industry Issues: 2005 vsvs 20062006

Top Industry Issues – 20051. Fuel Costs2. Driver Shortage3. Insurance Costs4. Hours-of-Service5. Tolls/Highway Funding6. Tort Reform/Legal Issues7. Overlapping/Burdensome

Regulations8. Congestion9. Environmental Issues10. Truck Security

Top Industry Issues – 20061. Driver Shortage2. Fuel Issues3. Driver Retention4. Hours-of-Service5. Congestion6. Government Regulations7. Highway Infrastructure8. Tort Reform9. Tolls/Highway Funding10. Environmental Issues

2007: Drum Roll Please2007: Drum Roll Please……

Top Industry Issues Top Industry Issues -- 20072007

1.1. HoursHours--ofof--ServiceService2.2. Driver ShortageDriver Shortage3.3. Fuel IssuesFuel Issues4.4. CongestionCongestion5.5. Government RegulationGovernment Regulation6.6. Tolls/Highway FundingTolls/Highway Funding7.7. Tort ReformTort Reform8.8. Truck Driver TrainingTruck Driver Training9.9. Environmental IssuesEnvironmental Issues10.10. OnOn--Board Truck TechnologyBoard Truck Technology

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American Transportation American Transportation Research InstituteResearch Institute

www.atriwww.atri--online.orgonline.org

Dan MurrayDan Murraydmurray@trucking.orgdmurray@trucking.org

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Trailer Vulnerabilities to TheftTrailer Vulnerabilities to TheftTrailer Vulnerabilities to TheftUnattended Trailers

Trailer Stockpiling

Lengthy yard checks

Erroneous pickups

Increased opportunities for theft

Lack of in-transit visibility Subcontracting to trucking companies to haul certain loads, losing trailer visibility at the switch

Delays at shippers when trailers are empty

Unattended Trailers Unattended Trailers Trailer Stockpiling Trailer Stockpiling

Lengthy yard checksLengthy yard checks

Erroneous pickupsErroneous pickups

Increased opportunities for theft Increased opportunities for theft

Lack of inLack of in--transit visibility transit visibility Subcontracting to trucking companies to haul certain Subcontracting to trucking companies to haul certain loads, losing trailer visibility at the switchloads, losing trailer visibility at the switch

Delays at shippers when trailers are empty Delays at shippers when trailers are empty

Untethered Trailer Tracking System Project Purpose

UntetheredUntethered Trailer Tracking System Trailer Tracking System Project PurposeProject Purpose

“…leverage existing technology and develop an untethered trailer tracking and control system that will provide real-time trailer identification, location, geo-fencing, unscheduled movement notification, door sensors, and alarms.”

– Department of Transportation and Related Agencies Appropriations Bill, 2003

“…“…leverage existing technology and develop an leverage existing technology and develop an untethereduntethered trailer tracking and control system that trailer tracking and control system that will provide realwill provide real--time trailer identification, location, time trailer identification, location, geogeo--fencing, unscheduled movement notification, fencing, unscheduled movement notification, door sensors, and alarms.door sensors, and alarms.””

–– Department of Transportation and Related Agencies AppropriationsDepartment of Transportation and Related Agencies Appropriations Bill, 2003Bill, 2003

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Project PartnersProjectProject PartnersPartnersIndustry Expert Panel

LandstarJB HuntGeologic SolutionsSkybitz

Federal Agency Review TeamTSADODMARADFHWAPHMSA

Industry Expert PanelIndustry Expert PanelLandstarLandstarJB HuntJB HuntGeologic SolutionsGeologic SolutionsSkybitzSkybitz

Federal Agency Review TeamFederal Agency Review TeamTSATSADODDODMARADMARADFHWAFHWAPHMSAPHMSA

Pilot Test OverviewPilot Test OverviewPilot Test Overview3-month pilot test

3 Scenarios:Truckload Dry Van

High Value

Truckload Explosives

75 Trailers

33--month pilot testmonth pilot test

3 Scenarios:3 Scenarios:Truckload Dry Van Truckload Dry Van

High Value High Value

Truckload ExplosivesTruckload Explosives

75 Trailers75 Trailers

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Baseline Typical Operations Baseline Typical Operations Baseline Typical Operations Lengthy time of unknown status

Untethered: 2-7 days where its status was unknown to all carriersCargo In transit: 1-2 days where the visibility into cargo status was limited or non-existent Not at company locations: Trailer locations or status related to cargo unknown to one carrier

Site operations5-6 hours spent searching for one particular trailer3-10 days before trailers were picked upUp to 25 trailers sitting idle and unavailable to the carrier

Lengthy time of unknown statusLengthy time of unknown statusUntetheredUntethered: 2: 2--7 days where its status was unknown 7 days where its status was unknown to all carriersto all carriersCargo In transit: 1Cargo In transit: 1--2 days where the visibility into 2 days where the visibility into cargo status was limited or noncargo status was limited or non--existent existent Not at company locations: Trailer locations or status Not at company locations: Trailer locations or status related to cargo unknown to one carrierrelated to cargo unknown to one carrier

Site operationsSite operations55--6 hours spent searching for one particular trailer6 hours spent searching for one particular trailer33--10 days before trailers were picked up10 days before trailers were picked upUp to 25 trailers sitting idle and unavailable to the Up to 25 trailers sitting idle and unavailable to the carriercarrier

Trailer Mobile Communications and SensorsTrailer Mobile Communications and SensorsTrailer Mobile Communications and Sensors

Terrestrial UTT SystemGPS and cellular communications antennas

Rechargeable battery

Terrestrial UTT SystemTerrestrial UTT SystemGPS and cellular GPS and cellular communications antennascommunications antennas

Rechargeable batteryRechargeable battery

Magnetic Door SensorMagnetic Door SensorMonitors when a trailer door Monitors when a trailer door is opened or closed is opened or closed

Ultrasonic Cargo SensorUltrasonic Cargo SensorDetects cargo status change Detects cargo status change from empty to full and full to from empty to full and full to emptyempty

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Geo-fencing and Trailer Connection Status

GeoGeo--fencing and Trailer Connection fencing and Trailer Connection StatusStatus

Geo-fencing

Notification of a trailer moving outside of its geo-fence

Capability to increase the position-polling rate after geofence violation

GeoGeo--fencingfencing

Notification of a trailer moving Notification of a trailer moving outside of its geooutside of its geo--fencefence

Capability to increase the Capability to increase the positionposition--polling rate after polling rate after geofence violationgeofence violation

Trailer connection and Trailer connection and disconnection statusdisconnection status

Security BenefitsSecurity BenefitsSecurity BenefitsTheft reduction

Notifications of door opening and cargo status changes

Ability to track and recover stolen trailers

Improved unauthorized trailer movement detection

Information about unauthorized disconnections or connections

Visibility into trailer locations

Theft reduction Theft reduction Notifications of door opening and cargo status Notifications of door opening and cargo status changeschanges

Ability to track and recover stolen trailers Ability to track and recover stolen trailers

Improved unauthorized trailer movement Improved unauthorized trailer movement detectiondetection

Information about unauthorized disconnections or Information about unauthorized disconnections or connections connections

Visibility into trailer locationsVisibility into trailer locations

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Operational Efficiency BenefitsOperational Efficiency BenefitsOperational Efficiency BenefitsImproved asset management

Ability to find trailers and expedite deliveries through knowledge of trailer arrivals, unloading, and loading

Collection of detention charges with system data

Enhanced visibility of trailers and their cargo

Less time needed to rotate trailers for deliveries, which prevents the use of trailers as storage

Reduction of trailer to tractor ratios

Improved asset managementImproved asset managementAbility to find trailers and expedite deliveries through Ability to find trailers and expedite deliveries through knowledge of trailer arrivals, unloading, and loading knowledge of trailer arrivals, unloading, and loading

Collection of detention charges with system data Collection of detention charges with system data

Enhanced visibility of trailers and their cargo Enhanced visibility of trailers and their cargo

Less time needed to rotate trailers for deliveries, which Less time needed to rotate trailers for deliveries, which prevents the use of trailers as storage prevents the use of trailers as storage

Reduction of trailer to tractor ratiosReduction of trailer to tractor ratios

New Systems TodayNew Systems TodayNew Systems TodayImproved mapping (Google)

Custom polygonal landmarks

New trailer applications (flatbed, tanker, reefer, container)

Solar charging system

Smart sensor departure and arrival data

Idle time reports

Custom reporting

Improved mapping (Google)Improved mapping (Google)

Custom polygonal landmarksCustom polygonal landmarks

New trailer applications (flatbed, tanker, New trailer applications (flatbed, tanker, reefer, container)reefer, container)

Solar charging systemSolar charging system

Smart sensor departure and arrival dataSmart sensor departure and arrival data

Idle time reportsIdle time reports

Custom reportingCustom reporting

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Thank you for your attention!

Contact Information:

Thank you for your attention!Thank you for your attention!

Contact Information:Contact Information:

Amy Houser

amy.houser@dot.gov

(202) 385-2382

Amy HouserAmy Houser

amy.houser@dot.govamy.houser@dot.gov

(202) 385(202) 385--23822382

Celadon Trucking Services

(800) CELADONwww.celadontrucking.com

Tuesday, January 8, 2008

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About Celadon

Trucking Operations:– 2,900 tractors (including 350 Canadian, 250 Mexican)

– 8,100 trailers

950 Miles Average Length of Haul52% Domestic/U.S.48% Crosses Mexican or Canadian borderStrong Driver BaseSafety FocusTechnology FocusNon-Asset Based Businesses

Trailer Tracking Objectives

Decrease in Trailer Idle Time CostsDecrease in Fuel Costs Searching for TrailersIncrease in Trailer Detention BillingImprove Truck ProductivityIncrease Trailer and Cargo Security

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Current Deployment

Installed on 3,000+ units

All units deployed with cargo sensor

Full integration with operational system

Exception Based Integration

Trailer ConnectTrailer DisconnectCargo LoadedCargo EmptyGeo-FenceStatus Report (Pings)Low BatteryBattery Replacement

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Exception Based Alerts

Connect– Tractor not assigned to trailer that it is being

connected to

Disconnect– Tractor disconnecting at an unauthorized

location– Trailer disconnected at a customer location

not identified as a drop location

Exception Based Alerts

Loaded

– Trailer loaded detected but order is not generated in system

Empty

– Tractor attached to trailer specified as a drop location

Geofence

– Trailer being pulled by non-Celadon equipment

– Trailer departing geo-fence is not assigned on an order

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Trailer Tracking Benefits

Improved business operations and customer serviceReduced wasted fuelImproved driver and tractor productivityEnhanced detention billingIncreased trailer and cargo securityIncreased visibility of freight during third-party movesOptimized trailer inventory pools and reduced yard checksProvides mechanism for auto arrive and depart

Implementation Hurdles

In order to recognize a connect or disconnect, the tractor must have a special in-line fuse.Coordination of equipment installationsQuality control and diagnostic checks prior to trailer being released to the fleetTraining of maintenance staff to troubleshoot potential hardware issuesSystems integrationTraining of Operations staff in handling alert events

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t h e r o a d t o s u c c e s s

LANDSTAR

Model DefinitionLandstar is a non-asset based provider of transportation capacity delivering safe, specialized transportation services to a broad range of customers utilizing a network of agents, third party capacity owners and employees.

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Business ModelNetwork Connection

Information Flow

LandstarCapacity Agents

Customers

Business ModelThird Party Capacity Network

Business Capacity Owners (BCOs)

Broker carrier capacity

Railroads

Air cargo carriers

Ocean cargo carriers

Warehouse Capacity Owners (WCOs)

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Business ModelThird Party Capacity Network

BCOs

7,800 8,0118,516

9,2058,7288,677

2004 2005 2006

Number of BCOs

Number of Trucks Supplied by BCOs

Business ModelThird Party Capacity Network

Turnover Rate

34.9%31.5%

27.5%

Turnover Rate - Trucks Supplied by BCOs

2004 2005 2006

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Business ModelDOT Recordable Accidents

0.60

0.640.58

0.510.47

0.160.170.180.250.22

0.710.75 0.77 0.74

0.83

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

2002 2003 2004 2005 2006

All D.O.T. Preventable D.O.T. Industry Frequency

Business ModelThird Party Capacity Network

Truck Broker Carriers

18,221

22,511 23,821

2004 2005 2006

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Landstar’s Search for a Tracking SystemLandstar started looking at tracking systems in 1997: – Landstar’s purpose of finding a tracking system was to

better track and control our assets – Landstar researched the advantages and disadvantages of

a tethered and an untethered system– Landstar weighed the advantages and disadvantages of

GPS versus Cellular– Landstar leased 300 Xtra-leases trailers equipped with a

tethered Terrion tracking system as a test subject

Landstar’s Search for a Tracking SystemResults of Landstar’s Research:

– In 2002, Landstar decided at that time that an untethered tracking system would fit our needs best. There were several reasons:Make up truck fleet

– Most model year tractors built around 1997 or before did not have constant power to the center pin on the seven way, which is necessary to recharge a tethered units battery.

At least half the fleet was to be retrofitted and we needed an application the could be installed easily on a loaded trailer.

– Ease of install– Small and Covert– Preferred a device that limited warranty issues by manufactures such as

penetrating the skin of the trailer with a tethered systems antenna.– Data from device must be able to be integrated into Landstar’s system.– Landstar needed an upgradeable system which can change with our

business environment

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Benefits of Utilizing a Tracking SystemIncreased revenue and loads per trailer due to improved utilization of equipmentAllows Landstar to service their customers in an efficient mannerHelps improve safety and complianceAssists in retention efforts with Business Capacity OwnersAble to manage maintenance schedules of equipmentAssists in theft prevention and recovery of lost or stolen equipmentSkybitz System allows Landstar agents to utilize Brokerage Carrier Partners

Skybitz: Future BenefitsTrack and Trace; shows the tractor id when it is hooked and when it unhooks from a trailerSmart sensor trackingDoor sensors; it allows Landstar to see when the trailer doors are opened or closedThe use of cargo sensorsSkybitz is able to be upgraded to help meet our changing business environmentCustomers will have the ability to track their shipments on their schedule

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SKYBITZ TRACKING SYSTEM

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Presentation SummaryHelps improve safety and complianceHelps service our customers more efficientlyImproves utilization of Landstar equipmentAssists in the recovery of missing or stolen trailersHas allowed Landstar to utilize our Brokerage Capacity PartnersSkybitz is a covert systemSkybitz is an upgradeable systemHas allowed Landstar to increase the loads per trailer, which has increase revenue through better utilizationManage maintenance repairs and inspection schedules more efficiently

t h e r o a d t o s u c c e s s

LANDSTAR

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UNTETHERED TRAILER TRACKING SYSTEMS

UNTETHERED TRAILER UNTETHERED TRAILER TRACKING SYSTEMSTRACKING SYSTEMS

FMCSA Office of Analysis, Research and Technology

Tuesday, January 8, 2008

Contact:

Amy.Houser@dot.gov

FMCSA Office of Analysis, Research and TechnologyFMCSA Office of Analysis, Research and Technology

Tuesday, January 8, 2008Tuesday, January 8, 2008

Contact:Contact:

Amy.Houser@dot.govAmy.Houser@dot.gov