Mitigating Risk For The Hardwood Lumber Fleet Operators–And Their Drivers
By Mike Zdrojewski, Loss Control Consultant at Pennsylvania Lumbermens Mutual Insurance Company
The commercial auto sector generates almost $1 trillion in revenue for the U.S. economy and transports nearly 75 percent of freight (by weight) across U.S. highways, including hardwood lumber, per the American Trucking Association (ATA). With approximately 350 billion miles driven nationwide by more than 3.5 million drivers, safety is a paramount issue with very real, very serious consequences for people, equipment and product.
Given the volume of freight, drivers and miles traveled, accidents are inevitable with nearly 170,000 reported in 2023 according to the Institute for Safer Trucking. Driver error was cited as the cause in about 90 percent of these incidents, per the National Highway Traffic Safety Administration.
Insurance claims within the commercial auto insurance sector have risen dramatically in the course of the past decade. AM Best reports an underwriting loss of $4.9 billion for this segment, marking its 14th consecutive year of losses.
Contributing factors include social inflation—highlighted by significant jury verdicts—escalating claim severity, and a shortage of experienced commercial drivers. Given these persistent challenges, prioritizing a comprehensive risk mitigation strategy is critical for hardwood fleet operators to counter rising claim severity, including proactive investments in driver development and operational improvements.
The First Step Toward Fleet Safety: Driver Training
At the core of fleet safety is a robust driver training program that puts an emphasis on developing structured programs for recruiting, screening and training new drivers.
Overall, the effectiveness of any safety program is measured not just by its initial design but also by its ongoing development through a model of continuous improvement. Training programs that remain unchanged will struggle to keep pace with evolving circumstances—such as innovative technologies, updated regulations or emerging industry trends— thus becoming ineffective or outdated.
We also recommend instituting scheduled reviews and updates of safety policies and procedures that will specifically target risk reduction for drivers, with every element contributing to measurable improvements.
Additionally, training programs should address real-world challenges, comply with all regulatory standards, incorporate human factors and move beyond minimum requirements by implementing solutions that genuinely improve driver performance. Key facets of a robust training program might include:
• Entry-level driver training: Compliance starts with a thorough understanding and adherence to both federal and state regulations. A critical aspect of this is entry-level driver training (ELDT), which is mandatory for all new commercial license applicants. An appropriate training program ensures drivers receive not only the necessary theoretical instruction but also practical behind-the-wheel experience, provided by regulatory specialists and listed on the Federal Motor Carrier Safety Administration’s Training Provider Registry.
• A behavioral shift and defensive driving: Merely having knowledge is not sufficient; successful driver training also addresses unsafe habits and encourages drivers to adopt safe decision-making practices. Emphasizing defensive driving techniques—equipping drivers with skills to foresee hazards, effectively managing space and speed and side-stepping potentially dangerous situations, among others—is critical. This strategic approach significantly decreases accidents, collisions and the long-term costs associated with fleet management.
• Format flexibility and learning methods: Contemporary training programs achieve greater effectiveness when they are adaptable. Blended learning formats, including online courses, virtual reality simulations, classroom instruction and practical experiences, accommodate diverse learning preferences and logistical needs. This flexibility ensures the training initiative remains accessible for all drivers, while upholding stringent safety standards and regulatory compliance.
• One size does not fit all: Driver training programs should encompass a hardwood business’s specific fleet vehicles, operational environments and risks. We believe operators who assess their needs and adapt training content accordingly will benefit from both maximum safety and effectiveness.
Leveraging Technology in Fleet Safety
Technology continues to transform the fleet management industry, making it increasingly efficient. The ability to analyze vast amounts of information through telematics and artificial intelligence (AI), for instance, enables managers to gain valuable insights and improve fleet efficiency, reduce costs and optimize performance.
From real-time analytics to driver safety management, AI is already transforming how fleets are managed. The use of GPS tracking, electronic logging devices and route planning supports both driver and safety objectives. These tools help to form part of a broader safety initiative aimed at ensuring both drivers and vehicles are better prepared to tackle the challenges faced on the road. A few of these new advancements include:
• Dash cameras: Equipped with GPS tracking capabilities, these devices allow companies to monitor their fleet’s activities, record incidents and verify travel routes. This technology not only strengthens safety measures but also encourages drivers to follow best practices while on the road. The adoption of onboard cameras with video evidence to regularly coach drivers and address risks can also be used to protect against legal disputes and identify potential insurance fraud.
• Advanced driver assistance systems (ADAS): An increasing number of commercial vehicles are now being fitted with ADAS, which encompasses features like forward-collision warnings, lane-departure alerts and blind-spot detection. These systems gather real-time data and provide immediate feedback to drivers, helping them react appropriately in different driving scenarios. The adoption of ADAS technology is already delivering considerable safety improvements today. These systems help businesses protect their most valuable asset—their employees—by reducing vehicle-related accidents and enhancing overall worker safety.
• Training and implementation: In addition to one-on-one training, ongoing driver training is often facilitated through mobile platforms, enabling access to updated materials, refresher courses and safety briefings at the driver’s convenience. This continuous education ensures drivers are well-equipped to effectively utilize modern technologies.
Safety should be a non-negotiable priority for any fleet. Committing to a culture of continual improvement and accountability, integrating strong policies, providing proactive training and implementing cutting-edge technologies will combine to strengthen an organization’s safety framework and help ensure everyone on the road benefits from these advancements.
