WHEN asked how he got started in the tank truck industry, Greg Price has a simple answer: He grew up in it.
The basic lessons in running a trucking company came from his father, Keith, who started Oklahoma Tank Lines in 1966 with several partners. Prior to that, Keith had worked for Western Commercial Transports, a Texas-based interstate tank truck carrier. The company moved to its current location in Oklahoma City, Oklahoma, in 1969.
Greg recalls that he and his brother Kevin spent a lot of time at the Oklahoma Tank Lines terminal as they were growing up. “When I was 12, my job was to take the loading tickets and hand-stamp them with the name of the loading rack, wash trailers, and change tires,” he says. “By 16, I was occasionally driving transports hauling gasoline. It was a looser time. We had to make sure those Kerr-McGee stations didn't run out of fuel. I still carry a CDL (commercial driver license), but I don't make any runs today. I'll ride or drive with one of our drivers, and I ride more than drive.”
He adds that Oklahoma Tank Lines ran Internationals during his teen-age years. The fleet included both conventionals and cabovers outfitted with 250-horsepower Cummins engines and 13-speed Roadranger transmissions. Greg learned to speed-shift without using the clutch.
As an Oklahoma-based intrastate trucking company, Oklahoma Tank Lines operated in what was essentially a deregulated market. Carriers needed a permit, and rates were set by the state corporation commission, but access was relatively open. Oklahoma had 400 statewide trucking permits at a cost of about $25,000 each. It was a good training ground for the competitive environment that emerged following federal deregulation of the trucking industry in the 1980s.
Following high school, Greg spent a couple of years in Florida working at a AA baseball franchise that his father and a friend owned for about 13 years. From there, he went on to the University of Oklahoma, where he earned an accounting degree. He spent two years with Arthur Young, one of the top accounting firms.
Throughout all of that, Greg never lost touch with the trucking side of the family business. He also decided that he didn't want to live anywhere but Oklahoma. “The state has 3.5 million people and a little over 9 million cows,” he says. “I like that ratio.”
He helped his father expand the fleet operation into regulated markets in Kansas and Texas using their United Petroleum Transports (UPT) subsidiary that was started in 1980. They expanded more aggressively in the wake of federal deregulation, and eventually changed the whole company to the UPT name.
From the very early days, Keith Price was a strong proponent of industry association membership and participation. With his marketing background, Keith focused primarily on petroleum marketing groups, both state and national.
Greg was more interested in trucking groups, and Keith encouraged his son to get involved. The carrier joined the American Trucking Associations in the late 1980s, and Greg's first ATA meeting was in 1986 in Hawaii. Greg was already active in the Oklahoma Trucking Association and served as chairman in 1988.
“I don't remember what got me into National Tank Truck Carriers (NTTC) initially,” he says. “It was probably where they were having their meeting. We always go to nice places. I was intrigued that an association existed just to advocate for our industry. I always enjoy meeting other people in this business. I like to see how they do the same sort of thing I do.
“As president of this company, I sometimes feel like I'm in a vacuum. One value of bringing in managers from outside is that my company benefits from what they learned while working for other tank truck carriers. They enrich our organization and make it better.”
The drive to learn as much as possible from other in the tank truck industry encouraged Greg to take an active role at NTTC. After rising through the ranks of the association, Greg served as NTTC chairman during the past year.
During a recent interview with Bulk Transporter, Greg discussed some of what he's seen and learned about the tank truck industry over the course of a career that has spanned nearly 40 years. He reviewed the current condition of the tank truck industry and outlined key concerns for the future.
BT: How would you characterize the current state of the tank truck industry?
Price: We've enjoyed a good economy for the past several years. However, it looks like the first part of this year will be touch and go. I'm more optimistic about the second half of the year. I'm cautiously optimistic.
BT: Have you seen a fall-off in loads?
Price: Bad winter weather caused some disruption, but I don't think there has been any real reduction in shipments. Business has been soft, and some shippers started out more slowly at the beginning of the year.
We haven't seen much of an impact at United Petroleum Transports, though. Refined fuels just keep moving no matter what the economy does.
BT: How are rates holding up this year?
Price: We had some success in rate improvement last year. They went up some, but expenses also went up. The good shippers out there realize that good transportation service requires investment and a partnership. They are willing to pay for good, reliable service.
We want to work for shippers that are forward-thinking and understand that driver safety comes first at our company. We fired some shippers that didn't share our commitment.
BT: What do you think the new Democrat leadership in Congress means for the tank truck industry?
Price: We're probably looking at some higher taxes. We have to make sure that the taxes they collect are used for road maintenance and construction. The Democrats aren't interested in higher sizes and weights for trucks, but neither are some of the people in our industry.
Nobody wants to have to buy a whole new trailer fleet. Nobody wants their existing fleet to become obsolete all of a sudden. We could handle a small weight increase — to say 86,000 pounds — with existing tank trailers. Going to 97,000 pounds would be bad for the industry.
BT: Will we see more hostility toward trucking from the Democrats?
Price: Not necessarily. We'll just have to do a better job of telling them about the safety successes this industry has had. We want to make sure we don't get overpowered by the anti-trucking groups that highlight just the negatives of the trucking industry.
BT: What is likely to happen with regard to efforts by some state governments to sell toll roads to private owners, including some foreign companies?
Price: We have to be wary of this move by government to sell off our infrastructure.
BT: What trends do you see for freight volumes in 2007?
Price: We see no major changes in demand for the refined fuels that we transport. We're seeing more movement of biofuels, such as ethanol. That is bringing opportunity for carriers. The fleets are either transporting ethanol from the plants or they are transloading the product. That's business that didn't exist before.
I am leery about problems we might encounter with shipments of gasoline/ethanol blends. I remember the gasohol we transported in the past, and the water contamination and phase separation issues that we had.
BT: What would you say the key issues are in 2007 for the tank truck industry?
Price: Everything starts with safety. All of the good carriers are concerned that every driver has a safe day every day. Going from there, there is a litany of other factors that are important.
Hours-of-service regulations are an issue, and we know there are groups that have filed lawsuits to throw out the current rules. We have to be concerned about aspects of the hours-of-service rules that may affect safety. Naps are a problem right now. As the rules stand now, drivers have to take a full break if they need a nap. It can't be interrupted.
Some changes in the rule may be needed. However, it's not practical to do what CRASH (Citizens for Reliable and Safe Highways) wants, which is to return to the old rule. That's backward thinking.
Security is another issue. In the past, our main concern was to ensure that no one tampered with the cargo that we were hauling. That included our own people, as well as other individuals. Security has taken on a whole new focus today. We have to be aware of so many different factors now: unusual circumstances, people taking pictures of our equipment, people asking our drivers questions about the shipment.
The federal government has added a whole new layer of security requirements. This includes the TWIC (transportation worker identification credential) card that affects drivers operating at US ports. We know it will be rolled out industrywide at some point. Common sense has to come into play at some point. It's simply not practical to have a whole bunch of redundant security clearances for drivers.
BT: Is it likely that eventually we will see a uniform, universal security card for everyone and that it will include the commercial driver license hazmat endorsement?
Price: I would hope that intelligent minds would be able to understand that this would be the most practical approach. It would enable creation of a single database at DHS (Department of Homeland Security). We would no longer have multiple databases spread among a bunch of agencies. All local, state, and national enforcement officials would have access to the same national database.
We need a more uniform security registration system — one that won't impair productivity and commerce. It would be a major problem if the driver has to take time off and be out of service repeatedly because all of his security documents are coming due for renewal at different times.
Let's put some logic in all of this. We really need a single regulatory body that is in charge of all the security and hazmat background check activities. We need an agency to take responsibility and manage the processes. I'm not overly optimistic, though.
BT: What should we expect for federal fleet security requirements that are currently under consideration?
Price: I believe they will mandate some type of vehicle tracking device for companies that transport hazardous materials. You'll have to know the location of your equipment. I think the equipment will be relatively simple, at least initially. Capabilities such as geofencing would make the systems much more expensive.
I don't have any problem with on-board recorders as long as the regulation is designed properly. I like what I've read so far. It would be unacceptable for the technology to be used as a way to punish a carrier, though. After all, the objective should be to make us safer and more secure.
We also have to see which carriers will fall under the rule. I'm hopeful that PHMSA (Pipeline and Hazardous Materials Safety Administration) and TSA (Transportation Security Administration) will do a decent job of narrowing the scope of cargoes that fall under the rule. We've heard that they are working to reduce the list to focus on the shipments that really do need to be tracked.
BT: From what you've heard so far, would you expect the technology to include electronic driver log capability?
Price: Yes. I believe the feds want the system to identify the driver and tell how many hours the truck has been in certain modes — driving, idling, stopped. They want to be able to track those activities. I'm surprised the truck manufacturers haven't taken the lead and added that to their on-board systems.
BT: DOT has published a proposed rule that would require electronic driver logs for problem carriers. Should it apply to the whole industry?
Price: It would be easy to say that DOT should mandate electronic driver logs for every carrier. However, 98% of the trucking companies in the United States have less than 20 trucks. Many are capitalized on a thread. They are buying and financing their trucks through the local truck dealer. Electronic on-board recorders cost a lot of money for those carriers.
BT: Do we still have a driver shortage?
Price: There is definitely still a shortage of qualified tank truck drivers. Every successful carrier is focusing more on driver retention. We, (NTTC) have started a program, Project Driver Attract, hoping to help attract experienced drivers from other segments of the industry to consider coming to the tank truck industry.
BT: Some studies have suggested that significant numbers of CDL holders are choosing not to drive trucks right now. What could be driving that?
Price: Here in our geographic part of the world, we compete against the oilfield. We can't pay what the oilfield pays. We believe that most people who quit us do so to make a lot more money. It's not because of the working conditions.
I admire the people who choose to make a living as professional drivers, because they have made the decision to work in an 8×8 piece of metal that goes up and down the highway. This is someone who likes that sense of freedom, that sense of adventure, and has a dislike for sitting in an office. You can't recruit just anybody for this profession.
BT: Is driver pay where it needs to be today?
Price: Driver compensation overall — not just pay, but also benefits — needs to be reviewed. We have to show more value for what these professional truck drivers do. We are making progress in this area, but we can't let up.
BT: What do you think of the ATA's program to bring in military veterans as truck drivers?
Price: I think it's great. It's been successful with us. We target guys that are leaving the military, especially in certain markets. We also target particular ethnic groups. We've found that when we build trust with these people, they draw in friends and relatives. That has helped us keep our family atmosphere as we have grown.
One problem we have with attracting new driver candidates to the industry is that truck driving is still classified as an unskilled job. That's just ridiculous. It is a profession, and drivers need certain training and licenses to qualify for a job. Security clearances are needed.
It's up to trucking companies individually, and the industry as a whole, to change the perception of truck driving as an unskilled job. One thing we have to do is talk to the state employment agencies to let them know what truck driving requires.
BT: Where do we stand on mechanic shortages in the tank truck industry?
Price: We certainly have a problem with that also. Fortunately, we are able to recruit potential truck mechanics at an earlier age than truck drivers. Some good programs are in place at the local level to sponsor students at vocational-technical schools.
BT: Are there adequate numbers of dispatchers and fleet managers in the tank truck industry today?
Price: We have shortages of both. Fleet manager is a very challenging career. In many operations, the fleet manager is also the customer service rep, the order taker, and the load planner. They wear lots of different hats and have to be very organized.
BT: Returning to truck drivers, what factors impact them most in petroleum hauling?
Price: Working conditions play a big role. Unfortunately, that's something we can't always control. Pipeline and refinery loading terminals are a big challenge. We — and our drivers — are at their mercy. We need to bring that part of the petroleum distribution process into the 20th century.
Petroleum transport drivers are essentially warehouse pickers. They go into a rack, and they have to figure out who to load on, what commodity to load, and put it in the trailer. This is the only part of trucking that I know of where the driver has 24-hour access to the warehouse. They can go in and load on anybody's account that they're authorized for. It's efficient, but I think we need to take that decision out of the hands of drivers and give it to our customers or to our fleet managers.
New drivers have a difficult time at the loading racks. There is confusion, and they are making mistakes. No two racks are the same. They are all different.
The problem is the petroleum terminals have no incentive to change. They have no incentive to speed up the loading process and get rid of the long lines of trucks at the racks.
BT: Is this one of the reasons that NTTC worked with the Independent Liquid Terminals Association (ILTA) to create a working group to study loading rack issues?
Price: Yes. However, it hasn't moved too far at this point. We've found some people who are interested and want to help us work through some of these issues. I'll attend the ILTA annual meeting in Houston (Texas) in June. We need to work with terminal executives to make progress.
BT: Do you see more chaos today with regard to the variety of fuel blends being shipped from loading racks?
Price: I think so, and it's getting worse. This is complicating the driver shortage for petroleum haulers. Unfortunately, I don't think the pipeline and terminal operators will address the problem until product doesn't get moved. Unfortunately, we do such a good job that it probably will never happen.
Still, loading problems cost drivers, create errors, and increase the paperwork burden. In many respects, the loading rack side of this business hasn't changed all that much from the 1960s. We're asking a lot of our drivers, and we need to reduce that load.
BT: How did things go with the shift to ultra low sulfur diesel?
Price: It was pretty much a non-event. That was a great outcome. I think it became a non-event because we elevated the discussion. The various participants in the supply chain talked together, and we did a lot of research. I think NTTC did a great job of helping us communicate with carriers, customers, pipeline terminals, and others. In the end, we were able to determine that we wouldn't need dedicated trailers and trailer compartments.
BT: Is the wetlines issue dead at last?
Price: As John Conley said: it's in a coma. It's not dead. I don't think it will ever be completely dead. We need to be prepared with the reasons why a wetlines rule isn't justified.
BT: What is the industry doing in the area of rollover prevention?
Price: At our company, we are installing roll stability systems on all of our new trucks. It's a relatively inexpensive option. The cost-benefit is very favorable. While it won't totally prevent rollovers, it should significantly reduce the potential. It will help drivers avoid possible rollovers when they have to react to the actions of another vehicle on the highway. However, I don't think the system will prevent a rollover if the driver runs off the shoulder of sort of narrow highways we encounter in Oklahoma.
We also put (Eaton's) Vorad (collision avoidance system) on our tractors. That costs almost $2,000 per vehicle. We don't have statistical proof, but drivers tell us the system is preventing accidents.
BT: What do you think about the effort by the American Trucking Associations to promote a requirement for speed limiters on trucks?
Price: I'm not really in favor of mandates. I don't think you reduce accidents by having different classes of vehicles moving at different rates of speed on the same highway. I don't have a problem with the 68-miles-per-hour speed that ATA recommends. That's plenty fast for anyone pulling a tank.
BT: What does the future hold for the family-owned tank truck carrier?
Price: I think the future is bright. I like the idea that we still retain a family atmosphere in a tank truck fleet. At the same time, these carriers are able to grow large enough that the managers they hire can attain their professional aspirations and goals.
This industry is still so fragmented that the largest tank truck carriers have a relatively small share of the overall market. I don't know that this is either good or bad for the industry. We still hear stories of individuals starting new trucking companies. Even a small fleet can be a core carrier in today's market.
BT: Have federal regulations begun to limit who can get into the business?
Price: I don't think so. We need to make sure the regulations are applied across the board, but we don't need federal barriers to entry. I do agree with efforts by the Department of Transportation to tighten entry requirements for new carriers. The new companies need to show that they can be viable and that they really do have an effective safety program.
BT: How did you end up in Australia earlier this year?
Price: My son, Matt, was in Australia working as an intern for Scot Corporation, which operates Chemtrans and Bulktrans. I visited him at the end of his internship. The Scot Corporation carriers Matt worked with are primarily chemical transporters and haul a lot of chemicals used in mining and steel foundries. They also handle a lot of tank containers used in international shipments.
Matt was working with them on a project to move to a new computer system. His job was to transfer some of their rates and charges from the old system to the new.
He found the opportunity on the Internet. He had just completed a political internship in South Africa and wanted to travel on to Australia. I suggested he find an internship with something practical like a truck line while in Australia. It would be even better if he could work for a bulk carrier. Well, he found just the right opportunity. Scot Corporation had never had an intern program.
BT: What was your impression of the way these Australian carriers operate?
Price: The equipment looked more European in style. I saw a lot of three-axle trailers and cabover tractors. I also saw some big conventionals. They run a lot of Freightliner, Western Star, and Scania trucks. The tanks are big — over 10,000 US gallons probably. A lot of the equipment looks relatively new.
The carriers in Australia face a lot of the same issues we do — driver retention and such. They have a driver shortage. It appears that Australian drivers get paid a little more, and fleets get higher rates.
Safety is a big focal point. I found it interesting that truck drivers in Australia have to wear a uniform that is bright neon yellow or bright neon orange. I guess it's for visibility. We had to wear orange vests just to walk around the yard at the terminal. They have very extensive fall protection at their tank cleaning and tank repair facilities. It's a standard operating procedure in that country.
BT: Returning to the United States, why is it still important for tank truck carriers to join NTTC?
Price: Because it is the only single organization with the ability to be an advocate for our industry. It is our protection against those agencies and groups that want to promulgate regulations that are detrimental to the way we operate and our viability.
NTTC membership is a worthwhile investment for any company that wants to be a serious participant in this business. NTTC also gives fleet owners and executives an opportunity to help shape the rules and regulations that govern the industry. It's impressive the way the members of this association work together on common issues. Also, we get a free membership directory every year.
John, Tom (Lynch), and Fritz (Mead) are always looking for programs, seminars, and other ways to help our members deal with the challenges they face in their day-to-day operations. The NTTC staff has improved the web site (nttc.org) to make it more user-friendly.
John is doing a great job as NTTC president. In addition, I want to commend the entire staff of NTTC for the outstanding job they do for our membership and our industry.