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Kris Rutherford

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About Kris Rutherford
Since retiring from a career as an outdoor recreation professional from the State of Arkansas, Kris Rutherford has worked as a freelance writer and, with his wife, owns and publishes a small Northeast Texas newspaper, The Roxton Progress. Kris has worked as a ghostwriter and editor and has authored seven books of his own. He became interested in the trucking industry as a child in the 1970s when his family traveled the interstates twice a year between their home in Maine and their native Texas. He has been a classic country music enthusiast since the age of nine when he developed a special interest in trucking songs.

Posts by Kris Rutherford

Freight conditions, adverse weather negatively impact Werner’s Q1 numbers

By Kris Rutherford -

OMAHA, Neb.– Werner Enterprises’ first quarter results showed financial hits in all sectors. “Freight conditions remained challenging in the first quarter with persistent excess industry capacity driving broad pricing pressure combined with adverse weather and one-off expense headwinds. Despite these market challenges, we focused on controlling the controllables,” said Derek J. Leathers, Werner’s chairman and CEO. “We continued a favorable production trend in One-Way, grew revenue per truck in dedicated and realized outsized volume growth in our power only offering within Logistics. We generated solid cash flow, executed on additional cost takeout, reduced our debt and repurchased shares during the quarter.   Total revenue for the quarter rang in at $769.1 million, a decrease of $63.6 million compared to the prior year quarter, according to a company news release. This was due to a $37.2 million, or 6%, decrease in truckload transportation services (TTS) revenues and a decline in logistics revenues of $26.2 million, or 11%, Werner officials noted. A portion of the TTS revenue decline was due to $15.3 million lower fuel surcharge revenues. Net of trucking fuel surcharge revenues, consolidated total revenues decreased $48.3 million, or 6%, during the quarter.  TTS operating income decreased $30.1 million, and TTS adjusted operating income decreased $31.0 million. Logistics had an operating loss of $2.3 million, a decrease of $7.3 million, and Logistics had an adjusted operating loss of $1.2 million, a decrease of $7.5 million. Corporate and other (including driving schools) operating income decreased $0.4 million.  In the truckload sector, Werner reported revenues of $551.1 million, a decrease $37.2 million year-over-year. Operating income of $20.8 million decreased $30.1 million year-over-year. Average segment trucks in service totaled 7,935, a decrease of 626 trucks year-over-year, or 7%. Dedicated unit trucks at quarter end totaled 5,080, or 65% of the total TTS segment fleet, compared to 5,345 trucks, or 63%, a year ago. Average revenues per truck per week, net of fuel surcharge, increased 2.8% for TTS and increased 1.3% for dedicated.   During the first quarter of 2024, dedicated experienced net reduction in average trucks, down 4.1% year-over-year and down 1.7% sequentially. Dedicated average revenues per truck per week, net of fuel surcharge, increased 1.3% year-over-year, and despite a highly competitive environment and isolated fleet losses, pipeline opportunities remain healthy and client retention remains strong at more than 93%. One-way truckload volume during first quarter 2024 was steady and seasonally consistent, but revenues remained challenged by ongoing rate pressure. One-way revenues per total mile was down 5.1% and fleet size was smaller year-over-year (down 12.7%), offset with the fourth consecutive quarter of higher total miles per truck per week (up 11.3%). As a result, One-Way Truckload miles were down only 2.8% despite a more sizable fleet reduction year-over-year.  While we cannot control the macro,” Leathers said, “we are focused on our long-term strategy and structural improvements to position Werner well for capitalizing on a tighter market.” 

Cummins reports year-over-year net income increase after Atmus separation

By Kris Rutherford -

COLUMBUS, Ind. — Cummins’ first quarter 2024 revenue hit $8.4 billion, with a net income of $2.0 billion, according to a financial report. This represents all company sectors. A number of company components factored into the financials that reflected strong demand, according to Jennifer Rumsey, Chair and CEO.  “We delivered solid profitability and also completed the separation of Atmus (a filtration technology company), allowing Cummins to continue its focus on advancing innovative power solutions and positioning Atmus to pursue its own plans for profitable growth,” Rumsey said. “I am deeply appreciative of our Cummins employees across the globe, whose broad expertise and diverse perspectives are driving our ability to innovate for our customers and meet global demand.”  Cummins’ earnings before interest, taxes, depreciation and amortization (EBITDA) was 30.6% of sales, representing an increase year-over-year of 14.5%  Cummins separation with Atmus resulted in $1.3 million in revenue. As a result of the separation, the company is raising its expectations for full year 2024 revenue. First quarter revenues decreased 1% year over year, as did international revenues due to lower demand in China and Europe.  “We have raised our expectations on revenue and profitability for 2024 due to continued demand for Cummins’ products and services. We do still expect slowing demand in some of our key markets in the second half of the year,” said Rumsey. “Despite lower sales, Cummins is in a strong position to keep investing in future growth, bringing new technologies to customers and returning cash to shareholders.”  Based on the current forecast, Cummins projects full year 2024 revenues to decline year over year by 2%-5%. EBITDA guidance reflects an increase over the prior guidance of 14.4% and 15.4%.  In its distribution segment, sales were up 5% to $2.5 billion. EBITDA for the segment was $294 million or 11.6% of sales. Revenues in North America and internationally increased 2% and 14%, respectively, with higher revenues driven by increased demand for power generation products and pricing actions.  “Cummins plans to continue to generate strong operating cash flow and returns for shareholders and is committed to our long-term strategic goal of returning 50% of operating cash flow back to shareholders,” said Rumsey. “In the near term, we will focus on reinvesting for profitable growth, dividends and reducing debt.” 

RXO sees double-digit brokerage volume growth for fourth consecutive quarter 

By Kris Rutherford -

CHARLOTTE, N.C. — RXO, a trucking brokerage business, has reported in its first quarter earnings for 2024 that with four consecutive quarters of double-digit increases in brokerage volume, company-wide sales are the largest they have been in four years.  “In the first quarter, gross margin increased every month, and we enter the second quarter with improve momentum,” said Drew Wilkerson CEO at RXO. “We expect to deliver a significant increase in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) sequentially.”   Wilkerson noted that RXO continued to deliver exceptional brokerage volume and strong margin performance for the first quarter of 2024, achieving a gross margin of 14.2%. He added, “Our complementary services continue to perform well.”  Brokerage contract volume increased by 18% year-over-year in the first quarter. Full truckload volume growth registered 8% growth, while less than truckload volume growth increased 29%.  Company-wide, financial reports were not as encouraging, however. RXO’s revenue was $0.9 billion for the first quarter, compared to $1.0 billion in the first quarter of 2023. Gross margin was 17.4%, compared to 18.7% in the first quarter of 2023.  The company reported a first-quarter 2024 generally accepted accounting principles (GAAP) net loss of $15 million, compared to $0 of net income in the first quarter of 2023. The first-quarter 2024 GAAP net loss included $12 million in transaction, integration and restructuring costs. The adjusted net loss in the quarter was $4 million, compared to adjusted net income of $13 million in the first quarter of 2023.  As for the future, Wilkerson says, RXO is well positioned.  RXO is expected “to continue to outperform and deliver significant earnings growth when the market improves,” he said. 

Clean Harbors exceeds first quarter financial expectations 

By Kris Rutherford -

NORWELL, Mass. — Clean Harbors has reported its financial results for the first quarter, and the company exceeded expectations.   “Strong demand for our services resulted in a better-than-expected performance in the first quarter,” said Mike Battles, co-chief executive officer at Clean Harbors. “We delivered record Q1 Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) driving year-over-year margin improvement. Our Environmental Services (ES) segment once again led the way. ES continues to benefit from a growing interest in our broad array of services, high-value disposal and recycling waste streams, pricing execution and an expanding project pipeline, fueled by customer demand.”   Clean Harbors delivers a broad range of services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance and recycling services.   Revenues grew 5% to $1.38 billion compared with $1.31 billion in the same period of 2023. Income from operations increased to $125.5 million compared with $121.0 million in the first quarter of 2023.  Net income was $69.8 million, or $1.29 per diluted share compared with $72.4 million, or $1.33 per diluted share, for the same period in 2023, and $74.1 million, or $1.36 per diluted share on an adjusted basis in the prior year period.   Adjusted EBITDA grew 7% to $230.1 million compared with $215.1 million in the same period of 2023.  “Our ES segment delivered a 16% increase in Adjusted EBITDA and a 130-basis point margin improvement year-over-year on 10% revenue growth,” said Eric Gerstenberg, co-chief executive officer at Clean Harbors. “All of our ES businesses grew revenue from a year ago, led by Technical Services with growth of 11%. While incineration utilization came in as expected at 79%, average incineration price was up 6% reflecting pricing actions and higher-value waste streams into our network. Although landfill tonnage was down modestly from a year ago due to weather-related impacts on the West Coast, average price per ton increased 16% on healthy drum volumes and base business. Safety-Kleen Environmental Services continued its strong performance with revenue growth of 9%. On a mix of organic growth and contributions from acquisitions, our Industrial Services and Field Services grew 7% and 10%, respectively, as demand remained robust.”  In the second quarter of 2024, Clean Harbors expects Adjusted EBITDA to grow 7% to 8% from the second quarter of 2023. For full-year 2024, Clean Harbors expects:  Adjusted EBITDA in the range of $1.1 billion to $1.15 billion or a midpoint of $1.125 billion, which represents 11% growth year-over-year. This Adjusted EBITDA range is based on anticipated GAAP net income in the range of $376 million to $419 million.  Adjusted free cash flow in the range of $340 million to $400 million, or a midpoint of $370 million, which includes approximately $65 million of spending related to the Kimball incinerator and $20 million for its Baltimore expansion. This range is based on anticipated net cash from operating activities in the range of $740 million to $830 million.   “Underlying market conditions, such as reshoring and the regulatory environment, are driving favorable demand for our services, which should allow us to build on our ES momentum in the coming quarters,” Gerstenberg said. 

Merle Haggard’s Grandma Harp: The woman behind the lyrics

By Kris Rutherford -

“Grandma’s maiden name was Zona Villines….” Hardcore Merle Haggard fans will remember the opening line of his 1972 single, “Grandma Harp.” The song rose all the way to No. 1 on the Billboard Country Charts. By any musical standard, “Grandma Harp” is a short song. At just 2 minutes 18 seconds, there’s not enough time to reveal a whole lot about the life of the woman behind the song. It DOES tell us Grandma Harp lived at least 90 years (93, to be exact), and it insinuates she was the rock of Merle Haggard’s upbringing. But what’s the rest of the story behind the song? Well, if you’re ever driving Interstate 40 around Clarksville, Arkansas, and your dispatcher tells you to take Highway 21 to Harrison, you need to respond by questioning their sanity. While the route will take you through one of Arkansas’ most beautiful areas, it is the very definition of “Crooked and Steep” all the way. (In Arkansas Department of Transportation lingo, “Crooked and Steep” is only slightly better than “Impassable: Hairpin Turns Ahead.” Either way, you’ll have a tough time navigating the road as it descends into Boxley Valley. The valley is within the Buffalo National River corridor and is preserved by the National Park Service as a historic and enduring agricultural area. Boxley Valley is where Grandma Harp spent the first 30 years of her life. Her family scratched out a living in the 5-mile-long valley, which connects Boxley, Arkansas, with Ponca, Arkansas. Neither town makes much of a dent in the map, but the area is home to Arkansas’ elk herd, which makes it a popular tourist destination today. Back in 1875, when Martha Francis Arizona Belle Villines (later Harp), affectionately known as “Zona,” was born to Hosea and Patty Villines, not many people visited the valley who weren’t native to the area. In fact, in the two cemeteries at each end of Boxley Valley, hundreds of headstones engraved with the name Villines are testament to the family’s role in the valley’s evolution. The communities were close knit; in fact, Zona’s long name came from visitors her family received on the day she was born. Zona’s parents wanted all seven of their children to succeed. In late 19th-century Newton County, success meant living in a log cabin and operating a subsistence farm. There wasn’t a whole lot to spend money on in Boxley Valley, and the nearest town of any substance was Harrison, 25 miles away. Those living in the valley normally traveled to Harrison by wagon, pulled by a team of mules along a crooked, steep and rocky road. Zona was the oldest of the children, closely followed by Cynthia, born just two years later. As the girls matured, they wanted a taste of Boxley Valley’s form of success. But Zona’s parents weren’t going to let their daughters off easy. When the girls got it into their heads that independence meant a separate home from the rest of the family, their dad began marking two trees every day. It was the girls’ job to cut the trees to the ground (using an axe) before the day was out. This process went on until the two had enough timber to build a log cabin. By this time, Zona and Cynthia were so good at chopping down trees, they soon decided to add a second story, a luxury at the time. In 1901, as Haggard’s song tells it, Zona Villines married a fellow by the name of James Harp, a “city slicker” from Harrison (which, at the time, had a population of about 1,500). Rumor had it that he was attracted to Zona because of her log cabin. By 1902, the couple had their first child, Flossie. Records state that Flossie traveled with her family to California by wagon in 1906 — but by 1910, the family had migrated back east and lived in Beck, Oklahoma. Flossie married James Haggard in 1919 in Checotah, Oklahoma. The couple and their family, including Grandma Harp, traveled back to California during the Great Depression. The Harps settled near Bakersfield, California, a city that became known for its unique brand of country music, the “Bakersfield Sound.” Wynn Stewart pioneered the sub-genre of country music, followed by Buck Owens, who perfected it. It wouldn’t be long before Zona Harp’s grandson became one of the premier Bakersfield Sound artists and among the most successful country artists of all time. Merle Haggard was born to Flossie and James in 1937. In California, the Haggard family grew up in a converted railroad boxcar. Their father being an auto mechanic, Merle and his three siblings didn’t grow up with much, but he always credited Grandma Harp with helping to keep the family together. In an introduction to the song “Grandma Harp” he once offered during an interview, Haggard said: “I guess the thing I remember most about Grandma was her pretty blue eyes and trembling hands as she served the best baked apple pie that I’d ever ate. It always amazed me how, to the age of 75 years, she personally raised her own black-eyed peas and turnip greens that the old corner market just couldn’t match. One day, the old summer sun just got too much for her and she fell and broke her hip. After that she seemed to slow down for a while, but bless her heart, she lived to be 93. It was like she’d lived to see a thousand years of progress. The horseless carriage, two world wars, the first man walk on the moon. The times in which she lived were not what mattered. It was how she lived it. And that made it all worthwhile.” Grandma Harp lived until 1972, when she died in Bakersfield. It’s a shame she never made her way back to Boxley Valley, where she could have been laid to rest with her family and many close relatives. But that’s the way it was for so many Arkies and Okies who headed out to the west coast during the Dust Bowl years, never to return. Fortunately, Merle Haggard took the time to immortalize his grandmother in song, if for no other reason than “just to write a song for Grandma Harp.” Until next time, pay attention to those crooked, steep roads — and if there are impassable hairpin turns ahead, go no farther! Photo courtesy of MerleHaggard.com

CH Robinson reports Q1 year-over-year declines

By Kris Rutherford -

EDEN Prairie, Minn. — C.H. Robinson Worldwide released its 2024 first quarter financial results on May 1, and the company saw losses over the same period last year but has a plan for a bright future.  “Our first quarter results and adjusted earnings per share of $0.86 reflects a change in our execution and discipline, as we began implementing a new Lean-based operating model. And although we continue to battle through an elongated freight recession with an oversupply of capacity, I’m optimistic about our ability to continue improving our execution regardless of the market environment,” said C.H. Robinson’s President and Chief Executive Officer Dave Bozeman.   Comparing year-over-year financials with 2023, C.H. Robinson saw revenues shrink 4.3% to $4.4 billion. This decrease was primarily driven by lower freight rates in the truckload sector. The same factor resulted in profits decreasing 4.5% to $647.5 million. Operating expenses increased overall with the exception of personnel, which saw a 1 percent decrease as average headcount declined over 11%. Total income was down 21%, while net income followed, down 19.1% to $92.9 million. Bozeman said he hopes to see these statistics turnaround as the new operating model ramps up.  “Our new operating model is being deployed at the enterprise, divisional and shared service levels and is evolving our execution and accountability by bringing more structure to our continuous improvement cadence and culture,” Bozeman said. The model represents a new way of operating and includes greater discipline, transparency, urgency, and decision making to lead to better outputs.  Bozeman noted that the North American Surface Transportation (NAST) results showed similar declines to those previously listed. Total revenues were down 9.2% over the same period last year, as were adjusted gross profits (-6.9%) and income from operations (-18.7%).  “As a result of disciplined pricing and capacity procurement efforts, we executed better across our contractual and transactional portfolios in our NAST business, and in particular, in our truckload business in the first quarter,” Bozeman added. “This resulted in improved optimization of volume and adjusted gross profit per truckload, which improved sequentially despite an increase in our linehaul cost per mile for the full quarter versus the fourth quarter of 2023. Additionally, our first quarter truckload volume reflects growing market share, and we outpaced the market indices for the third quarter in a row.” Bozeman said that Robinson’s freight experts are responding to the challenge and embracing the new operating model and innovative tools that the company continues to arm them with. “Our people have a powerful desire to win, and I thank them for their tireless efforts,” Bozeman said. On the other hand, he didn’t shy away from addressing challenges that lie ahead.   “Everyone understands that we have a lot more work to do,” he said.   

For Stokes Trucking’s Jason Douglass, driver retention is key to a company’s success

By Kris Rutherford -

Jason Douglass of Stokes Trucking knows the importance of driver retention. The 36-year-old, who serves as director of recruiting and retention for Tremonton, Utah-based Stokes Trucking, began his career in the industry as a driver for a plumbing company before moving into warehouse management and dispatch, sales, safety management, and, finally, recruiting. Because he’s actively worked in so many facets of the industry, Douglass has first-hand knowledge of many of the challenges faced by employees. As a trucking executive, he also knows that many motor carriers are struggling to retain drivers and experiencing high turnover rates. While finding qualified drivers is vital, Douglass says the “retention” portion of his title is the main focus at Stokes — and that’s exactly the way he likes it. “Our turnover is super-low,” he told Truckload Authority. “Anybody can bring drivers in. The importance of my role is to keep people with the company.” When he was recruited by Stokes in 2022, he was impressed by the company’s culture and the mindset of working to retain valued employees. “Our cultures matched,” Douglass said. “Stokes’ culture is clear on its social media pages. It’s like we instantly clicked.” Currently the company, which specializes in transporting refrigerated foods, employs 55 drivers and operates 50 trucks and 112 refrigerated trailers — and it is working to expand. Drivers average 2,800-3,200 miles a week, with routes designed to allow drivers to enjoy home time weekly. Of course, he says, driver retention begins with smart recruiting and hiring. “If you recruit the right people, you don’t have to recruit as much,” he explained, adding that he’d rather have an empty truck than hire the wrong person to drive it. So, one might ask, how can recruiters make sure they find the right people? While there’s not a one-size-fits-all answer, Douglass shared his basic strategy. When interviewing prospective drivers, he says, the first few questions are friendly “get to know you” queries. Once he knows a little about the driver’s personality and goals, he says, he works to find out exactly what the driver is looking for in a company. Next, he asks about previous employers. In some cases, he says, a previous company’s culture simply wasn’t a good fit for a specific driver (or vice versa). “There are some people, some companies that I know are just bad fits,” he said. “Then there are companies I know have the same hiring criteria as us.” In short, he says, the initial interview needs to go far beyond the driver’s skills and qualifications. “Between those questions, I can pick up red flags. For instance, a recruit might ask if we do hair follicle drug testing,” he explained. “If they wince, that’s probably the biggest red flag I see. “I start asking qualifying questions,” he continued. “I get them to talk, and I get a feeling for their personalities. We’re not a fit for everybody — and everybody is not a fit for us.” In addition, Douglass says, he looks at the way a driver has quit previous jobs. “We won’t hire anybody unless they put in two weeks’ notice with their current company,” he said. “We don’t want anyone to do that to us.” When it comes right down to it, the question isn’t whether the driver wants to work for Stokes; it’s a question of whether the company wants to hire a particular driver. “We don’t just put butts in seats, so I ask questions,” he said. “Our motto is, ‘Do the right thing,’” That motto goes both ways. “What’s the right thing to you? What are your morals?” he said. “There’s no ‘secret sauce’ in our success. It’s just being genuine.” As noted earlier, Stokes has a low turnover rate (10% to 14%). More often a driver is let go rather than quitting, Douglass said. “We probably terminate more than quit because we have a high safety standard,” he explained. “You must have a high standard in this day and age. You’re always trying to protect assets.” Of course, a driver’s experience and safety record are also important, and Douglass says the recruiting team works closely with the company’s safety director. “We both know what we’re looking for in a good driver — and we know what the company’s looking for,” he said. “We won’t hire anybody without all of us meeting them.” Once the team is sure they’ve found a driver who’s a good fit for the company, the “real” work — retention — begins. At Stokes, Douglass says, the culture is designed to ensure the group works together as a team, with a common goal. Of course, pay is important, but there are other factors that result in loyal, happy employees. “Drivers’ checks don’t fluctuate more than 10% weekly, and we have some drivers that make up to $100,000 a year,” he said, adding that consistency in freight and miles goes a long way toward ensuring satisfied drivers. “In this market, drivers can work anywhere. So, especially for younger drivers, a carrier needs to be a place they WANT to work,” he said. Breaking down traditional business barriers is another key to success. “At so many companies, there’s a hierarchy,” Douglass said. “Drivers are at the bottom, and then there’s office employees. You must eliminate the hierarchy.” This involves making sure drivers have a voice in the company. In addition, he says, drivers appreciate a friendly environment and decent facilities. “You can’t make it like drivers are separated from the office,” Douglass said. “At many companies, management SAYS they have an open-door policy … but do they really mean it? Our owner sits with the dispatcher. “I’m very approachable. I want people to bring up concerns,” he continued. “However, it doesn’t do any good if there’s no action. I am proactive about what people bring me, and I follow up. Once that reputation is set, the job is easier. People depend on me.” While the goal of any business is to see a profit, the best companies are often known for having the “human touch.” “You have to have empathy in recruiting and retention,” Douglass shared. “Without it, you’re not of much use. You need to be able to put yourself in the potential employee’s position. Some people say, ‘Just tough it up and drive.’ Well, we’re not in that market anymore. We realize that good drivers can go work somewhere else.” Photo by Linda Garner-Bunch/Truckload Authority This article originally appeared in the May/June 2024 edition of Truckload Authority, the official publication of the Truckload Carriers Association.

Know what you’re paying for: Predatory towing fees are a growing issue in trucking

By Kris Rutherford -

Predatory towing. It’s a term with which all too many motor carriers and drivers are uncomfortably familiar. It’s possible your company has been a victim of the practice, which goes far beyond fees for towing a disabled vehicle from the side of the road. For example, let’s imagine one of your tractor-trailers is involved in a single-vehicle accident, such as a rollover. Law enforcement at the scene request a tow service, usually selecting the next towing company on a list used to spread the business among competitors. The company dispatches the equipment, spends about an hour and a half cleaning up the scene, and then disappears with both your equipment and cargo. In short order, you receive a bill for towing services that requests payment of tens or even hundreds of thousands of dollars for the release of your equipment. Predatory towing is an increasing problem in the trucking industry and has been brought to the attention of the Federal Trade Commission (FTC), which is studying deceptive business practices nationwide. Already, several state’s legislatures have passed or are considering bills to limit predatory fees. “When a truck driver’s vehicle is towed, they can’t earn a living until they get it back — leaving them vulnerable to predatory junk fees from towing companies,” said U.S. Transportation Secretary Pete Buttigieg. “We support FTC’s efforts to stand up for truckers by acting to ban junk fees and prevent predatory towing fees that can cause significant financial harm.” The Federal Motor Carrier Safety Administration (FMCSA) expressed sentiments about the issue in a letter to the FTC. “The proposed regulation may significantly benefit FMCSA’s regulated community, specifically as it relates to the predatory towing practices that have a substantial financial impact on CMV owners and operators,” wrote Sue Lawless, the agency’s acting deputy administrator. She went on to highlight the nature of predatory towing fees, the various ways a tow company calculates excessive fees, and the hidden charges many tow companies place on an invoice. In a Truckload Carriers Association (TCA) webinar on the issue, Gene Funk, general counsel for Cowan Systems, a Maryland-based trucking firm, said, “The towing companies send out these bills just hoping someone is not looking at them.” Funk, along with Renee Bowen, an attorney with the firm Franklin and Prokopik, provided several examples of invoices with excessive charges, one in which the towing company sought $202,000. “They’re a creative bunch,” Bowen said, referring to predatory towing companies. “(These fees are) made up. They’re fictitious. You have to challenge these charges,” said Funk in reference to some of the charges that show up on towing invoices. As an example, Funk pointed to a certain fuel surcharge. The line item had no relationship to the amount of fuel the tow company used in performing the work; instead, it was charged as a percentage of the total tow bill. In essence, a $100,000 invoice could have a $6,000 surcharge for fuel attached. Another major issue with predatory towing is “per-pound” billing. In this case, a tow company sets its fee based on the total weight of the vehicle, trailer, and cargo being hauled. Often, Funk said, companies will charge a minimum fee based on an 80,000-pound tractor-trailer — even when the vehicle involved only weighs 20,000 pounds. One example compared a per-pound billing invoice to an invoice for the same service charged at nonpredatory rates. When recalculated, the predatory $140,000 per-pound invoice dropped to $24,000. There are several problems with existing towing fee regulations, which vary from state to state. First, the tow companies hold all the power. They capitalize on a motor carrier’s need to retrieve its equipment and cargo. Despite statutes in place that require tow companies to release cargo, Funk and Bowen cited instances in which tow company managers simply ignored the requirement and essentially held equipment and cargo hostage. There is also a lack of enforcement of existing regulations. Often, law enforcement agencies are the ones who call a tow company — but they are unwilling to get involved in cases of excessive charges. In addition, there are cases in which a tow company sends the same invoice to various stakeholders (carriers, insurance companies, drivers, brokers, etc.). On occasion, multiple parties pay the same bill — and the towing companies simply reap the profits. To help trucking companies guard against predatory billing, Funk and Bowen offered some warning signs to look for before writing a check. One red flag is per-pound billing, a practice that is actually outlawed in some states. Excessive hourly rates and the number of hours personnel and equipment are on site should also be inspected. For example, a tow company may charge an hourly rate but have a minimum charge policy of four hours, even if less time is spent at the site. Some tow companies charge additional fees for equipment sent to the site, even if that equipment was neither requested nor necessary for the towing job. Finally, hidden surcharges are common tactics of predatory tow companies. Charges for weather conditions (temperatures over 80 degrees, for example), photos, and follow-up communications are common. One example of an invoice presented by Funk and Bowen even charged for “snacks.” And the snacks were charged at 2% of the total bill, resulting in a cost of $200 per employee. As far as solutions to the problem of predatory towing are concerned, Funk is not optimistic: “There are no good answers to solve the problem,” he said. However, Bowen did offer a few suggestions for truckers and carriers to follow when involved in a towing situation. First, no driver should sign any document presented by a towing company on site. Many times, the driver could be signing away rates and waivers. Drivers should take lots of photos of the site, towing operation, equipment, and personnel. “Photographs are incredibly important,” Bowen said. It is also recommended that carriers form relationships with towing companies in the areas in which they operate, have legal counsel available, and train staff in what to do in the case of a towing situation. Finally, Bowen says, carriers should join and support state trucking associations. These groups can be excellent resources when it comes to getting references for reputable towing companies nationwide. Ultimately, carriers must be aware that their drivers operate in different states — and there is no consistency in the regulations states place on the two companies in relation to towing fees. The FMCSA suggests the FTC provide guidance on how deceptive business practices related to towing would impact state and local laws that govern towing practices. Perhaps when federal guidance is available, tow companies will be willing to come to the bargaining table to establish fair and consistent rates. “The industry wants fair service for a fair price,” Funk concluded. This article originally appeared in the May/June 2024 edition of Truckload Authority, the official publication of the Truckload Carriers Association.

Will FMCSA’s latest study of driver detention generate results?

By Kris Rutherford -

When it comes to the topic of driver detention, Ed Nagle, president and CEO of Ohio-based Nagle Companies, is direct when expressing his displeasure with the time his company’s drivers spend waiting at shipping and receiving facilities. “It’s the biggest waste, and a real problem,” he said. “Right now, two hours of detention time is the standard before additional fees can be charged.” Detention costs carriers a tremendous amount of revenue — and the shippers and receivers responsible for the inefficient loading/unloading procedures that create the delay are often not interested in addressing the issue, he noted. In addition, the responsible parties are only willing to pay 50% to 70% of the revenue carriers lose while trucks remain idle. What’s the solution? Nagle believes one step in the right direction is to reduce “free” detention time to one hour rather than the current two. “The shippers and receivers pay their employees,” he explained. “Why should a carrier be expected to tell its drivers they are unpaid for time on the job?” Nagle is not alone. The issue of driver detention consistently ranks among the highest frustrations of trucking industry professionals. Many carriers agree the unnecessary time drivers spend waiting at shipping and receiving facilities exposes a major inefficiency. The Federal Motor Carrier Safety Administration (FMCSA) is studying the issue, focusing on the impact of detention time on highway safety. Based on public comments received by the FMCSA, the problem is deeper than government officials expected. In August 2023, the FMCSA posted a notice in the Federal Register (Docket No. FMCSA–2023–0172), inviting public comment on a proposed effort to collect data for a report titled “Impact of Driver Detention Time on Safety and Operations.” The FMCSA planned to analyze the data to determine the frequency and severity of the detention and assess the usefulness of existing intelligent transportation systems (ITS) solutions to measure detention time. The notice provided little background information for respondents and garnered a total of 176 comments. This initial comment period brought into focus several issues related to detention time — enough that the FMCSA organized comments into 11 categories. Based on the various issues identified, it is evident the agency had not anticipated the severity of detention time on the industry. The FMCSA’s categories are: The relationship between detention time and driver compensation; Organizational issues at the shipper/receiver, carrier, and/or broker; The relationship between detention time and pick-up/delivery appointment times; Examples of detention time characteristics as experienced by commenters; The relationship between detention time and hours of service regulations; The impact of detention time on logistics and the economy; The impact of detention time on driver welfare; The impact of detention time on driver and roadway user safety; Suggestions and support for detention time-related regulations; Considerations for defining and quantifying detention time and collecting necessary data; and General support for the study. In February 2024, the FMCSA once again opened the issue for public comment on the Federal Register. This time, the posting offered background on detention time along with a summary of comments received during the initial comment period. It also highlighted the 11 categories and provided a high-level summary of the concerns of respondents. The 2024 posting also included an overview of the data collection plan and outlined three primary objectives: Assess the frequency and severity of driver detention time using data that represents the major segments of the motor carrier industry; Assess the utility of existing ITS solutions to measure detention time; and Prepare a final report that summarizes the findings, answers the research questions, and offers strategies to reduce detention time. In addition, the FMCSA noted that the study would now encompass supply chain efficiency as well as highway safety. At the close of the comment period on March 19, 143 comments had been received. While FMCSA has not had time to analyze the responses to the most recent comment period, a review of the comments reveals a range of opinions from those involved in the industry. Numerous comments, assumably from drivers, provided anecdotal evidence of the problems created by detention time, with some offering suggestions on how to address the issue. Others noted that many drivers do not get paid for detention time, citing this as something carriers and shippers/receivers must address, and some claimed the use of ELDs exacerbates the issue. Other commenters — notably a few trucking organizations and insurance companies — simply offered support for the FMCSA’s approach. Comments from the Truckload Carrier’s Association (TCA) supported the study but highlighted previous studies on the issue and the failure of the FMCSA to act on the findings. “The FMCSA needs to act accordingly upon their findings, in which they did not do after the 2001 and 2014 detention time studies. While we appreciate the FMCSA’s commitment to further investigating issues related to detention time, we are concerned about potential delays in addressing new issues that may be identified. Given the length of the initial study, we are apprehensive that any new issues that arise may not be promptly explored, potentially leading to significant delays, like the decade-long interval observed in the past,” read a portion of TCA’s comment. TCA also focused on the need to use technology, such as ELDs, that was not available when previous studies were completed. In addition, the organization noted that the study should include insight on ways to mitigate detention time. Finally, TCA recommended that data obtained from the study be shared openly and transparently with the public — specifically with the motor carriers who are most impacted by the issue of driver detention. “FMCSA’s recommendations for lowering detention could serve as valuable guidelines for shippers, receivers, carriers, and drivers seeking to minimize delays and improve their operations,” TCA commented. As for Ed Nagle, when asked how detention time impacted driver safety, his response was simple: “It makes drivers tired,” he said. This article originally appeared in the May/June 2024 edition of Truckload Authority, the official publication of the Truckload Carriers Association.

TCA’s Profitability Program helps carriers survive, even thrive, regardless of market conditions

By Kris Rutherford -

There’s no doubt about it: The cost of trucking is on the rise. While increasing prices are pretty much par for the course, recent cost increases have exceeded those recorded in previous years. The American Transportation Research Institute (ATRI) reports that the average cost of operating a truck in 2022 was $2.251 per mile. That was the first time this average crossed the $2 mark since the organization began tracking data in 2008. Year over year, operating costs in 2022 increased 21.3% over 2021. Why? The reasons are many: Freight rates have fallen. Fuel costs have spiked. The cost of maintenance and repair on trucks has risen. In addition, driver wages are on the increase — which is not a bad thing in itself. Like ATRI, the Truckload Carriers Association (TCA) also tracks costs; however, TCA does so on a more frequent basis through its Profitability Program (TPP). The program is designed to share vital information with member carriers on a timely basis so companies can compare in-house results with how the rest of the industry is performing. These comparisons allow carriers to set benchmarks — standards against which companies’ performance is measured. Carriers tend to keep an eye on the successes of the top performers and learn what changes can be made in operations to move themselves into the “Best in Class” competition. As noted by Dave Broering, president of NFI Integrated Logistics, “In a softening market, with costs rising at an unparalleled pace, carrier benchmarking becomes more critical than ever.” In a February TCA webinar, “The Benefits of TCA’s Profitability Program and Benchmarking,” Jack Porter, TCA’s Profitability Program managing director, provided some insight into the association’s program, current trends, and suggestions for cost containment. The foundation of the TPP is for carriers to seek continuous improvement, set benchmarks for comparison, challenge business comfort zones, and navigate trucking cycles and challenges. Carriers that participate in the program share a primary component that is vital to improving a company’s profitability — a set of stated core values. Those core values go beyond simply making a profit; they set strategies and develop action items that stimulate progress. In addition, company management is dedicated to consistency. Everyone in these companies is aware of the core values, and management decisions can be clearly tied back to one or more values. Among the top data sources the TPP looks to is the Cass Freight Index. This index, updated monthly, shows deviation within the trucking business and is a gauge of supply and demand. Looking at the index over the past few years, trends indicate the trucking industry is returning to a historical level in terms of supply and demand. The COVID-19 pandemic created wide swings in the Cass Index, but since mid-2022, indicators have begun to drop. According to TCA’s Porter, the Cass index is all about capacity, and capacity reflects demand. In terms of the number of carriers in operation, the figure has been consistent. But COVID changed that. Many small (1-5 truck) carriers entered the market to handle spot demand, and carrier population skyrocketed. Of late, many of those small carriers have left the market, and the number is slowly coming down. During TCA’s webinar, Porter pointed out several market trends that are currently impacting the trucking industry: Rates are flat. Fleet capacity/brokerage is waning. Truck orders are stable. Equipment-associated costs are rising. Productivity is lagging, as figures such as miles per truck and gross margin per employee fall. Fortunately, signs indicate the industry is leaving a period of oversupply of truck capacity and entering one of balanced recovery. For carriers to remain competitive in a period of balanced recovery, Porter says they must adhere to several priorities: Maintain high-quality customer service. Know their networks — understand where their customers, drivers, and equipment are in the marketplace. Keep trailers full. Watch capacity fallout as small carriers leave the market. Monitor equipment costs. Likewise, in terms of business operations, carriers must be prepared to revamp customer service and sales departments, prepare their businesses for an upcoming recovery, enhance the workforce, align their networks, and reduce expenses. To help TCA member carriers not only survive, but also thrive, the TPP tracks over 400 industry benchmarks, allowing companies to compare performance against the standard in hundreds of ways. Currently, trends in some of the primary benchmark categories indicate the trucking industry is in the midst of change. In terms of operating ratio (a measurement of how well a company can pay off its liabilities with current cash flow), Porter said, “The best (carriers) are still doing pretty damn good. The rest have had a really tough couple of years,” adding that those who have followed the principles of the profitability program have likely “weathered the storm and are pretty well off for a rebound.” As far as revenue per truck is concerned, the current average is $3,800 to $4,900 per month, a reflection of demand and the subdued freight rates. Driver wages as a percentage of revenue are in the 19% to 28% range, although in several sectors the figure exceeds 30%. This benchmark hovered at 25% before the COVID-19 pandemic. Independent contractors rank lowest when considering income. Gross profit as a percentage of revenue is currently in the 12% range. The goal is typically 25%, and the current profit margin is far below the benchmark. Three years ago, profit averaged 20% to 25% but has yet to rebound. According to Porter, the benchmark for gross profit is the greatest challenge the industry currently faces. Likewise, gross profit per employee has experienced a decline. In 2021 and 2022, it hovered around $1,000. Today, the average is $700-$800. Finally, administrative expenses as a percentage of revenue are averaging 30%, although 50% is typical in some sectors. Porter notes that it’s vital that carriers compare themselves with benchmarks frequently — perhaps even on a weekly basis. Operating costs can change quickly, and variable cost factors are fluid. Successful carriers, he said, identify and stick to three primary objectives and ensure these objectives guide management decisions: Identify action items on an ongoing basis. Share results. Reward success. Benchmarking is something any industry should adopt as a primary practice, and the TPP is an example of a well-developed industry benchmarking system that carriers are invited to join. It allows carriers to evaluate the efficiency of previous performance, learn what is possible, identify success factors, and determine how a company compares to its peers. To find out more about the program, click here. This article originally appeared in the May/June 2024 edition of Truckload Authority, the official publication of the Truckload Carriers Association.

FMCSA plans to revise requirements for the Safe Driver Apprenticeship Pilot Program

By Kris Rutherford -

WASHINGTON — On April 4, the Federal Motor Carrier Safety Administration (FMCSA) issued an emergency request to the Office of Management and Budget (OMB) for approval of a revision to its previously approved request for comments on its Safe Driver Apprenticeship Pilot Program. Approval of the revision is requested by April 15, 2024. The revised language makes two changes to the original program requirements: The FMCSA may not require the use of inward facing cameras as a condition of the apprenticeship program. A motor carrier is not required to register an apprenticeship program with the Department of Labor before instituting the pilot program. Questions related to this information will be removed from applications and monthly reporting forms; however, participating motor carriers will still have the option of reporting such information. In the request, the FMCSA notes that drivers of commercial motor vehicles (CMVs) must be 21 years of age or older to operate a CMV in interstate commerce. It also points out that drivers under 21 can operate in intrastate commerce based on individual state laws and regulations. With the ongoing driver shortage, revisions to these requirements have been under consideration, and the FMCSA has been researching remedies. The Infrastructure Investment and Jobs Act (IIJA), enacted in November 2021, requires the development of an Apprenticeship Driver Pilot Program as a potential way to bring safe, qualified younger drivers into interstate commerce. The program proposes that 18-to 20-year-old apprentices complete two probationary periods. During these periods, the apprentices can operate in interstate commerce, but only under the supervision of an experienced driver, who must be in the passenger seat whenever the apprentice driver is behind the wheel. To be considered an “experienced” driver, a person must be at least 26 years old, hold a valid commercial driver’s license and have been employed for the previous two years and have a minimum of five years of interstate CMV driving experience. The first probationary period includes a minimum of 120 hours of on-duty time, 80 of which must be spent driving a CMV. To successfully complete the probationary period, the apprentice must demonstrate competency in the following areas: Interstate, city traffic, rural two-lane and evening driving. Safety awareness. Speed and space management. Lane control. Mirror scanning. Right and left turns. Logging and complying with regulations related to hours of service. The second probationary period comprises 280 hours, 160 of which must be spent driving a CMV. More advanced aspects of operating a CMV must be demonstrated during this period including: Backing and maneuvering in close quarters. Pre-trip inspections. Fueling procedures. Weighing loads, weight distribution and sliding tandems. Coupling and uncoupling. Trip planning, routes, map reading, navigation and permits. After successfully completing the second probationary period, the under-21 apprentice would be allowed to operate a CMV in interstate commerce unaccompanied by an experienced driver. The pilot program requires participating carriers to submit data to the agency about any incidents involving an apprentice driver, as well as reports about the apprentice drivers’ overall safety performance. Data collected will be used to determine the effectiveness of technologies and training provided through the program in improving safety; to compare the safety records of apprentice drivers to other CMV drivers; the number of apprentices dropping out of the program; a comparison of safety records of apprentices before, during, and after each probationary period; and a comparison of apprentices’ on-duty time, drive time and time spent away from their home terminals. The FMCSA expects a total of 14,830 responses to its original request for comments, 13,230 of those comments from CMV drivers. The request for approval of the revisions has been labeled as an emergency because FMCSA is likely to miss a mandated deadline if the required information is not received.

Sylvia helped set the female country music scene in the ‘80s

By Kris Rutherford -

A couple of weeks back, I was chatting with a fellow classic country music enthusiast, and the subject of early 1980s female artists came up. In those pre-Reba McEntire years, the likes of Barbara Mandrell, Crystal Gayle, Dolly Parton and the still-youthful Tanya Tucker dominated the female side of country music. There was also a handful of second-tier artists who had a few hits and then disappeared into obscurity. Charley McClain and Gail Davies immediately come to mind. But perhaps the most memorable of these female voices back in the day was that of an artist who billed herself as simply “Sylvia.” My friend even confessed to being a member of the Sylvia Fan Club. Sylvia Jane Hutton was born in 1956 and grew up in Kokomo, Indiana. She was a country music fan to the core and recalls singing in front of the mirror for years, practicing for the day there would be thousands of people looking back. All she ever wanted to do was perform, and shortly after high school graduation she moved to Nashville and took a job with Pi-Gem Records on Music Row. Sylvia found herself in the middle of the recording business. Her boss, Tom Collins, produced records for the likes of Ronnie Milsap and Barbara Mandrell. Unfortunately, Sylvia’s job was a bit outside of country music per se, but she still saw the chance to work for Pi-Gem as a blessing. According to Sylvia’s website, she spent her time at Pi-Gem answering phones, running errands, making coffee, singing demo songs and hanging out with people in the business. “What a magical thing that I happened to get a job working there!” Sylvia says. After working at Pi-Gem for four-and-a-half years, Sylvia auditioned for a spot in the pop trio Dave and Sugar. She didn’t get the job — but an RCA executive who heard the audition quickly signed her to a recording contract. Sylvia’s first two singles, “You Don’t Miss a Thing” and “It Don’t Hurt to Dream,” broke into the Top 40. But in those days, the music business didn’t hang on to a marginal artist for long. Sylvia needed a hit with her third single. She got that hit with the release of the No. 1 song “Drifter.” She followed that hit with “Tumbleweed,” “The Matador” and “Heart on the Mend,” all reaching the Top 10 on the charts. In 1979 and 1980, Sylvia was nominated for both the Country Music Association’s and Academy of Country Music Awards’ top new female artist. By 1982, Sylvia was a bona fide country music star, but she lacked that “signature song” that’s carried many artists to long-term careers. That all changed when she released the album “Just Sylvia.” Collaborating with songwriters Kye Fleming and Dennis Morgan, in June of 1982 Sylvia released the second song from the album, “Nobody.” “Nobody,” a wife’s perspective on her husband’s suspected love affair, became a worldwide hit. It shot to No. 1 on the U.S. and Canadian country charts and hit No. 2 in New Zealand. It even became a crossover hit, reaching No. 15 on the U.S. Billboard Charts. “Nobody” garnered a Grammy nomination for Best Female Country Vocal Performance. It received the song of the year award from BMI for the most radio airplay of any song in the U.S. Likewise, it earned Sylvia the award for Billboard’s top country female artist. Finally, “Nobody” allowed Sylvia to take home the coveted female vocalist of the year award from the Academy of Country Music. The success of “Nobody” carried Sylvia for several years, and through 1985 she charted six more Top 10 hits including “Snapshot,” “Like Nothing Ever Happened” and “Cry Just a Little Bit.” But she never reached the No. 1 slot again, and her award nominations dried up. After 1985, she released only four more singles, none of which garnered attention. During the height of her career, Sylvia had 11 Top 10 singles and sold over 4 million records. In the mid-80s, Sylvia’s contract with RCA may have been over — but her career was not. She focused on songwriting through the rest of the 1980s, and in 1988-1989, she regularly guest-hosted the popular country music cable television show “Crook & Chase.” She also hosted her own show, “Holiday Gourmet.” In 1996, Sylvia developed an independent label, “Red Pony Records.” While her album “The Real Story” was essentially ignored by country music, it did not go unnoticed in other circles. A People magazine review stated, “Sylvia always sang with more intensity and resonance than most country singers … and she can still sing a story song better than almost anyone around” Red Pony Records went onto to produce four more Sylvia albums over the years, including her first Christmas album. Sylvia credits much of her success to the connections she made while sweeping floors at Pi-Gem Records. She came to know many of the songwriters. “They knew me. They knew my voice,” she says. “I had a team of people who wanted to see me make it and have success.” During her career, Sylvia noticed that many of her fans were young people (such as my card-carrying Sylvia Fan Club member friend). Her affection for her young fans inspired her to conceive a project appropriate for both kids and adults. During her RCA years, she worked to develop the project, but it never came to fruition. But she didn’t give up. Thirty years later, the dream came true when she released the album “Nature’s Child.” She calls this album the most important work she has ever done. Despite her commercial success, Sylvia has never given up on developing her craft. She states on her website, that she has taken voice lessons for over 30 years. “People think the gift is that you are able to sing,” she explains. “But for me, the true gift is the deep desire to want to communicate through music, and that’s something that needs to be honed and practiced.” Sylvia may not have had a long country music career, but it was one of the more successful female efforts of the early 1980s. Until next time, turn your dial until you come across some of Sylvia and her female peers’ music from the period. It’ll take you back. Photo courtesy of Sylviamusic.com

No Barriers: Knight-Swift driver Richard Boehrer soars above challenges to drive big rig

By Kris Rutherford -

When Richard Boehrer, one of the Truckload Carriers Association’s (TCA) five 2023 Drivers of the Year, was a youngster, he dreamed of someday becoming a truck driver. For many years, however, it seemed that dream would remain unfulfilled. Even Boehrer’s uncle, who was a professional driver, couldn’t offer encouragement to the aspiring driver. “Impossible,” he told his nephew when asked about the possibility of driving a truck for a living. You see, Boehrer is deaf, and in those days, Federal Motor Carrier Safety Administration regulations required that all drivers be able to hear. Eventually, those restrictions were loosened, requiring the hearing impaired to pass a “whisper test.” Even this concession did Boehrer no good, because he is completely deaf. So, one might ask: How did Richard Boehrer become a TCA Driver of the Year? In 2011, Deaf Truckers United was formed, and the organization went to bat for people like Boehrer. Its argument was that the technology involved in trucking made concerns about deaf drivers immaterial. Their argument did not fall on deaf ears, so to speak. Two years later, the FMCSA created exemptions to the hearing portion of the CDL test, paving the way for Boehrer and others to prove their skills and become commercial drivers. Today, Deaf Truckers United has grown to an organization of over 1,000 drivers. Communication on the job requires a small adjustment, according to Boehrer, who says his carrier, Knight-Swift Transportation, has been quick to offer assistance. “My terminal manager and I communicate through a video relay service,” he said. “Another way we communicate is by texting.” But what about the nuances of driving a truck that one would think would require hearing? “I can’t hear air leaks,” Boehrer said. “I use a spray bottle to see if there’s any bubbles. If there’s a blowout, I can feel the vibration on the road.” Boehrer explained that when there is a problem, something just feels different in the truck. That “feeling” is something many people who are deaf describe. It’s a way the body compensates for lacking the sense of hearing. “My body can feel in a way I don’t think hearing people can,” Boehrer said. “Deaf people can feel things and know that something is wrong.” One area the FMSCA doesn’t give deaf drivers a pass on is safety. Deaf drivers must be just as safe as any other driver on the road. Boehrer says that he, like any other driver, is expected to follow regulations and conduct thorough pre-trip checks. “We have a lot of responsibility to take care of our trucks and to check everything and make sure everything is safe,” he said. “Safety is the most important thing.” In addition to support from his carrier, Boehrer says he is appreciative of the community provided by other drivers, as well as the support of Deaf Truckers United. “There are a lot of truckers with the Deaf Truckers United organization,” he said. “We’re focused on teamwork and communication and helping each other learn. Deaf Truckers United has a deaf truck show where we get together twice a year.” Unlike his uncle, Boehrer is able to encourage deaf people to reach for their goals. “I would like to let deaf people know that they can get involved,” he said. “They can become truck drivers. It just depends on people. You can’t discriminate against people. You have to let people do what they can do. The most important thing we need to do is work together, the deaf and the hearing. Communication is what it takes to have successful teamwork.” Boehrer adds that everyone faces different challenges. “There’s different kinds of challenges that hearing and deaf people who work this job have,” he said. “They can’t make any mistakes. I used to drive dry vans, but now that I drive reefers, I have more responsibility. There’s food, frozen goods, and meats. It’s a bigger responsibility to take care of the product for the customer.” Boehrer also said that driving reefers carries him across the country. “It keeps me going to different states,” he said. “I’ve been to 48 states and Canada. I’ve been working with Knight Transportation for 10 years.” As for the accolades he receives for a job well done, Boehrer is especially proud of achieving one goal in particular. “I was really happy to become a million miler,” he said. “And I’m just gonna keep going. I’m not gonna stop. I’m gonna keep going until I retire.” Boehrer is also glad to have added TCA Driver of the Year to his resume. “I feel really inspired to be a TCA professional driver of the year,” he said. “I’m real happy about that.” During the 2023 TCA Driver of the Year awards ceremony, held in Orlando, Florida, last March, Boehrer drew a standing ovation from the audience, complete with thunderous applause that he undoubtedly could feel through the planks of the banquet hall stage. “What I really enjoy is I get to go everywhere,” he said. That’s quite an accomplishment for someone who overcame the “impossible.” This article originally appeared in the March/April 2024 edition of Truckload Authority, the official publication of the Truckload Carriers Association.

Cliff Abbott’s lyrical storyteller style shines through in ‘How Much Longer?’

By Kris Rutherford -

Cliff Abbott is a storyteller who thumps an upright bass and strums an acoustic guitar. This combination, along with the words to the self-penned stories he writes, makes Abbott a lyrical storyteller in the vein of Tom T. Hall and Roger Miller. Abbott’s songs can swing between country, folk and rockabilly — or, as many like to call it, “Americana.” If the name Cliff Abbott sounds oddly familiar … well, it should. Abbott is a regular news writer for TheTrucker.com. He’s also a veteran of the trucking industry, having spent 13 years as an OTR driver (five of them as an owner-operator) and 25 years as a driver trainer, recruiter and safety manager. And, as if those accomplishments weren’t enough, he’s also a singer-songwriter with six CD releases under his belt. His latest collection, “How Much Longer?” firmly fits into the Americana genre. Abbott’s acoustic music and unpolished vocal style could easily make him a bluegrass performer. That bluegrass style is evident in several of the dozen songs on his latest CD. Each song is an original, never before recorded. His recording studio, BB Wolf Recording — billed as the “Best Little Studio in Rock Creek, Alabama — must have been made for Cliff Abbott. After all, it claims to specialize in country, bluegrass, rockabilly and, yes, Americana. A listen to the title track from “How Much Longer?” will remind you of the idyllic days of Norman Rockwell and how much America has lost since. No matter on which side you stand on the state of America in the 21st century (Abbott takes neither), his question of “How much longer?” will resonate. It’s a song of tradition and glamorous pastimes left behind, with a message that if we don’t clean up our act, it may be over far too soon. In the ballad “Tell Maureen (I won’t be coming home),” Abbott tells a touching story, set on the battlefields of the Civil War, of two solders from opposing sides laying aside their differences at a pivotal moment. Abbott reminds us that division within a nation is costly, and the ironic ending is enough to give anyone pause (you’ll just have to have a listen). This song is also a reminder that the story told in “How Much Longer?” could result in repeated history. Abbott also entertains with a couple of humorous songs to which almost any red-blooded Southerner can relate. “Dr. Whiskey (Dr. Beer and Nurse Tequila)” will point us in the right direction to cure our ails, while “That’s Gotta Hurt” reminds us of that friend we all have who just can’t seem to stay away from trouble. And, as Abbott sings, we recall with a little bit of fortunate glee that the shoe is not on the other foot. “I don’t claim to be a great performer or singer, but I do it to share my writing,” Abbot says. And he does so regularly on “The Dee Ford Show” on Talladega, Alabama’s WOTM TV 21. He’s also a frequent guest and emcee at the Sugar Creek Music Club in Hayden, Alabama, a venue he immortalizes in his newest CD’s opening number, “The Club on Sugar Creek.” What’s more, he’s co-founder of the Sugar Creek SongCrafters, a mentoring group for budding artists who want to learn about songwriting . With influences like Bobby Bare, Bob Dylan and John Prine — all storytellers in their own rights — Abbott is keen on what is going on around him. In his tune, “My Next Breakup Song,” he says, he was inspired by arguably the world’s most popular current entertainer, Taylor Swift, and her songs about her own exes. For one whose tastes lean a bit more to the country music side (apologies to Taylor Swift, as she is actually rooted in country), the song brings up memories of George Strait’s classic, “All My Exes Live in Texas.” Speaking of the Lone Star State, Abbott latest album includes a requisite for pretty much every country music collection — a song about Texas: “Long Gone to Texas.” Of course, he throws in an also-requisite gospel song, “I’m Not Resting,” and one paying homage to his mother in “Mama’s Silvertone.” As a trucker, one might expect Abbott to include a trucking song or two on his CDs — and he often does. In the case of “How Much Longer?” he skips that expectation, although previous songs from other CDs like “Lines on the Highway,” “Big Wheels Rolling Home,” “American Trucker” and “Highway State of Mind” can all be heard and downloaded on his website, www.cliffabbott.com. But “How Much Longer?” doesn’t pass up the transportation industry altogether. Perhaps my favorite song on the new CD is “Run Before the Wind.” One could say the tune covers intramodal shipping on the high seas. The singer’s ghostly encounter with “an ancient sailor” leads to a little advice, much like what Kenny Rogers picked up in “The Gambler.”      “Some days the wind’s behind you, and the wake trails from the stern,      Some days the wind’s against you, you must tack from turn to turn,      Some days the wind is calm, it’s to the oars you must attend,      And when the tempest roars, you must run before the wind,      While the storm is raging, you must run before the wind.” “Run Before the Wind” is a song to which anyone can relate if they stop and think about the various curve balls life has thrown them. We must all adjust to life based on our daily circumstances. For Cliff Abbott, “Run Before the Wind” offers the perfect moral to a group of tales that spring from a lifetime of living. That’s what Americana is all about, isn’t it? Photo by Sara Elizabeth Hall

Building a cohesive team is key to success, says Northern Logistics president Derek VanBlargan

By Kris Rutherford -

When a teenage Derek VanBlargan took a job delivering furniture following high school, he probably had no idea he was taking a big step toward a career firmly rooted in trucking. Today, as president of Michigan-based Northern Logistics, however, he can look back and see how his route steadily progressed beginning even earlier in life. “I grew up around heavy equipment through my grandfather’s logging business,” said VanBlargan, who holds a bachelor’s in marketing and logistics degree from Central Michigan University. “I had plans of working on the marketing side of my degree, until I realized I would have to move to a larger city to make that happen,” he continued. “I have always enjoyed Northern Michigan, so staying around the area weighed heavily in my decisions.” The road to Northern Logistics was a direct one. “I met the owner of Northern Logistics at a networking night in 2007 and worked out an internship opportunity in 2008. I was hired full-time in the fall of 2008 to do sales,” he said. “I am still heavily involved in and enjoy the sales side of our business, but I’ve worked in operations for most of the last 10 years.” VanBlargan says he enjoys the fast pace of operations, the internal and external relationships he has built, and Northern Logistics company culture. “They have kept me interested to this day,” he said. In his role as president of the carrier, VanBlargan works in all facets of the trucking industry, including safety, sales, and operations. Northern Logistics currently has 300 trucks dispersed at eight locations in Michigan. But it wasn’t always that way. The company started in the early 1980s as an air expedite company, VanBlargan says. In the 1990s and early 2000s, it moved into cargo expediting, operating 15 tractors, four box trucks, and two vans. At that point, the company was moving into less than truckload (LTL) and dedicated hauling. A 3PL division followed in 2010, and in 2013, Northern Logistics purchased a flatbed division. “Through the next 10 years, we acquired and opened additional terminals throughout Michigan, helping grow to where we are today,” he said. As for VanBlargan, he’s grown with the company, helping train, hire, and build a cohesive team of employees to complement management. In 2023, he moved into his current role of company president. “Before (becoming president), I worked in nearly all levels of our business, outside of driving and working on the trucks,” he said. “Here at Northern, we do not necessarily practice the traditional ‘corporate ladder’ or common infrastructure. We operate more laterally and in peer groups. “We truly do have some of the best in the business on our team throughout every level,” he continued. “I say it a lot, but the level of accountability and ownership from top to bottom is something to be jealous of, even in my role. I give a lot of credit to our great leadership, hard work ethic, and a never give up attitude to my success.” According to VanBlargan, Northern Logistics operates with the attitude that they’ll haul “anything that fits in their trucks,” but being in Michigan, auto parts make up a sizable portion of their business. The company’s 300 trucks log a total of 25 million miles annually delivering throughout the U.S. and Canada. The Midwest is the carrier’s primary business area, and 15 million of those 25 million miles are traversed within Michigan’s state lines. “We have a strong presence in Michigan and a passion for the state,” VanBlargan said. When asked what advice he’d offer other young executives, he points to a few character traits that are needed to succeed in the trucking industry. “Communication is always going to be the first, the foremost, and the hardest,” he said. He also lists patience, self-motivation, and ownership of issues as important for someone in his (or any) position. “You can’t play the blame game in this industry,” he said. “You have to work through the problems as they come and learn from them for the next time around. As it relates to his company’s success, VanBlargan places the most emphasis on customer service and driver relations. “Building a solid network of drivers, an operations team, and customers is the key. You can lean on each other through the good times and the bad,” he said. “I have been able to be a part of and watch our growth,” he continued. “When I started in 2008, we had an operations team of five, with 25 trucks in two locations running 1.75 million miles. We now have an operations team of nearly 50, 300 trucks, and 8 locations.” VanBlargan is quick to point out that his success is directly related to members of the Northern Logistics team. “Having an engaged operations team that takes ownership in the business every day is definitely our driving factor,” he said. “We also have an owner who is fully supportive and engaged. Every day is a new day. The fast-paced environment keeps you on your toes.” While VanBlargan enjoys his job, it does come with its challenges. “The growing market fluctuations are what I like least about the industry,” he said. “It seems like the separation between the shipper and the trucking company continues to grow. Continuing to build relationships directly with the shippers and having good partners will be something I think will separate companies in the foreseeable future for growth and success.” Assuming that the goal of a logistics business is delivering product to its final destination, VanBlargan says the front office staff plays a major role. “Support your drivers,” he advises. “Give them as much shipment information, good equipment, and good communication as possible. We are continually investing in technology and time/operations to help make sure our drivers have as much clear and clean direction as possible to succeed.” In addition, he says, it’s vital that a company — from the leadership down every last employee — should treat its customers, co-workers, and community with respect. “It will help you survive almost any situation,” he said. While VanBlargan is dedicated to his work at Northern Logistics, he says that spending time with his wife, Kelli, and their children, 11-year-old daughter Jordan and 7-year-old son Jarett, is what truly motivates him. He and the family enjoy upper Michigan and spend a lot of summers and winters there at one of their two cabins. As might be expected for the area, he does a lot of snowmobiling, but the summers are kept busy by his daughter’s traveling softball team. Derek VanBlargan is a highly successful businessman who has learned to strike a work-family balance – something a successful carrier like Northern Logistics encourages for all its employees. Photo courtesy of Derek VanBlargan This article originally appeared in the March/April 2024 edition of Truckload Authority, the official publication of the Truckload Carriers Association.

Political Debates: Trucking industry keeping an eye on key Congressional races

By Kris Rutherford -

While this year’s battle for the U.S. presidency will undoubtedly claim bragging rights as the most-watched political race, those in the trucking industry are keeping an eye on a handful of key Congressional races. Several issues are at the forefront of trucking executives’ concerns. From economic uncertainties to shifting demand, labor regulations, a driver shortage, and increased fuel prices, the industry faces uncertainty as it attempts to keep supply chains flowing. In most political races this cycle, concerns of the trucking industry are not contentious issues, although many incumbents are highlighting the projects brought to their states and districts through the bipartisan Infrastructure Investments and Jobs Act (better known as the Bipartisan Infrastructure Law, or BIL). Among the Senate races to watch, Montana tops the list, according to Missy Edwards of Missy Edwards Strategies and Richard Sullivan of State Federal Strategies. Edwards and Sullivan serve as political consultants for the Truckload Carriers Association (TCA). Montana’s three-time incumbent Sen. Jon Tester, a Democrat, faces challenges from political newcomer and former Navy Seal Tim Sheehy, a Republican, as well as a possible late run from Republican Congressman Mark Rosendale. Sheehy’s stance on transportation-related issues is unclear; however, he has stated he is committed to America’s independence when it comes to energy. Sheehy says he will seek to reverse Environmental Protection Agency (EPA) regulations that are driving up energy costs and hindering America’s energy independence. Tester, referred to by many as a champion for the trucking industry, touts his record in supporting trucker-related issues. Some of his early support for truckers included the Troops to Truckers Act in 2012, and he pressed for legislation to open the trucking industry to younger drivers. He was also among the leaders calling for the reopening of the border with Canada as the COVID-19 pandemic began to wane. More recently, he cosponsored the bipartisan Truck Parking Safety and Improvement Act, which designates $755 million over three years to develop safe parking areas for truckers. “Truckers spend long hours behind the wheel every day to make sure Montanans have the goods we need on our shelves,” Tester said. “It’s important we keep truckers safe and ensure supply chains are running smoothly to cut costs. I’m proud to have worked with folks on both sides of the aisle to improve truck parking infrastructure.” Among Tester’s major accomplishments in the Senate is his support for the bipartisan Infrastructure Investment and Jobs Act, a law setting aside $1.2 trillion to improve America’s infrastructure including roads, bridges, and other transportation and communications facilities. The act also promised to create hundreds of thousands of jobs for Americans. “We’ve all seen the impact that supply chain disruptions have on consumer prices and small businesses, which is why we’ve got to make sure our truck drivers have the resources and infrastructure they need to get goods where they need to go safely and efficiently,” Tester said. Currently, Tester is the only Democrat in the Montana congressional delegation, but he is considered a moderate and has an agricultural background that resonates with many of his state’s voters. However, fellow Montana Sen. Steve Daines, a Republican, is working with Senate Leader Mitch McConnell (R-KY) to unseat Tester and claim his seat for the Republican party. In another contested Senate race, Ohio’s incumbent Sen. Sherrod Brown, a Democrat, faces opposition from two Republican candidates in a state that former President Trump won by a 53%-45% margin in 2020. Brown has supported legislation to improve roads and bridges, ensure street safety, and upgrade airports and public transit. He has been particularly involved in rail safety since Ohio’s New Palestine train derailment in February 2023 spilled toxic chemicals and caused fires that burned for days. Brown’s chief opponent is Republican Matt Dolan, a state congressman who has worked to earmark $170 million in state funding for transportation. He supported an $8 billion bill to fund construction and maintenance of Ohio’s transportation system and has pressed for legislation to protect Ohio’s natural gas and petroleum resources from taxation. Republican Bernie Moreno is also on the ballot to unseat Brown. While the 15 points noted on Moreno’s website have little to do with the transportation industry, he touts himself as “a conservative, an outsider, and an entrepreneur.” A loss by either Montana’s Tester or Ohio’s Brown could flip a seat that’s vital to control of the Senate. In the House of Representatives, pundits are calling for those in the trucking industry to keep a close eye on three races. In New York’s District 17, encompassing the southeastern area of the state just north of New York City, incumbent Rep. Mike Lawler, a Republican, is vying for a second term. Lawler quickly rose to fame in 2022 after defeating Sean Patrick Maloney, then chair of the Democratic Congressional Campaign Committee, marking the first time a congressman holding the chairmanship has lost an election in 40 years. Lawler’s opponent in District 17 is former Congressman Mondaire Jones. Jones, a Democrat, represented the Hudson Valley in 2020 and was elected by his colleagues as the youngest member of the House leadership. He also was named the most legislatively active freshman in Congress. In terms of transportation, Jones helped negotiate the Infrastructure and Jobs Act that has brought tens of millions of dollars to the district he seeks to represent. In 2022, however, Jones lost in the Democratic primary. In North Carolina’s First Congressional District, incumbent Democrat Donald Davis is running for a second term in this primarily rural district. Davis’ activity in the transportation sector included his support for the Truck Parking Safety Improvement Act. His challenger is anticipated to be Republican Sandy Smith, a self-described “unapologetically America first, pro-life, pro-gun, pro-military, freedom loving, pro-Trump fighter.” Smith, the GOP nominee the past two election cycles, supports America’s energy independence and is a staunch opponent of the “Green New Deal.” “Energy independence is critical to safeguarding our national security,” Smith said. “Closing the Keystone pipeline killed thousands of good paying jobs and weakened the United States of America’s energy standing in the world.” Finally, in America’s northwest, Oregon’s Fifth District Congressional seat is currently held by Republican Lori Chavez-DeRemer. She is seeking a second term in her district that was won by President Joe Biden by 9 points in 2020. She is highlighting millions of dollars brought to her district by the Infrastructure and Jobs Act as part of her re-election campaign. The Democratic opponent expected to face off against Chavez-DeRemer is Janelle Bynum, a member of the Oregon House of Representatives. Bynum is a champion of legislation that made Oregon the “clean energy hub of America.” Many other races across America will have lasting repercussions for the transportation industry, and some of those will eventually impact supply chains, trucker safety, and the health of the industry. While TCA and the truckload industry, along with the rest of the nation, keep a close eye on numerous races, the end result remains a toss-up until the next Congress is seated. This article originally appeared in the March/April 2024 edition of Truckload Authority, the official publication of the Truckload Carriers Association.

ArcBest celebrated 100 years, saw second highest-ever revenue in 2023

By Kris Rutherford -

FORT SMITH, Ark. — In addition to celebrating 100 years in business during 2023, ArcBest saw one of its highest-ever revenue performances. The Arkansas-based company operates LTL carrier ABF Freight, along with ArcBest Technologies (an in-house IT solutions group), ABF Logistics, Panther Premium Logistics and FleetNet America. For the fourth quarter of 2023, ArcBest reported revenue from continuing operations of $1.1 billion compared to $1.2 billion in the fourth quarter of 2022. The company’s fourth quarter 2023 operating income from continuing operations was $64.3 million compared to $50.2 million in the fourth quarter of 2022, and net income from continuing operations was $48.8 million compared to $36.5 million, or $1.45 per diluted share, in the prior-year period. “2023 was a milestone year for ArcBest as we celebrated our 100-year anniversary and again delivered solid financial results,” said Judy R. McReynolds, ArcBest chairman, president and CEO. “In a year marked by market disruptions and increased supply chain complexity, our people remained a critical driver of our success, helping us achieve the second-best revenue performance in ArcBest’s history,” she continued. Excluding certain items in both periods, the company’s fourth quarter 2023 non‑GAAP (generally accepted accounting principles) operating income from continuing operations was $81.7 million compared to $81.6 million in the prior‑year period. On a non-GAAP basis, net income from continuing operations showed a slight drop at $60 million compared to $60.8 million in fourth quarter 2022. ArcBest’s full year 2023 revenue from continuing operations totaled $4.4 billion compared to $5 billion in 2022. Net income from continuing operations was $142.2 million compared to net income of $294.6 million in 2022. On a non-GAAP basis, ArcBest’s 2023 net income from continuing operations was $194.1 million compared to net income of $344.7 million in 2022. “In addition to significant operational and efficiency improvements in 2023, we are proud to have renewed our five-year labor agreement and received recognition for our innovation efforts and commitment to service excellence,” McReynolds said. “These achievements are supported by our customer-led growth strategy and focus on shareholder value. We look forward to accelerating growth, increasing efficiency and fostering innovation as we look ahead to even greater success in our next hundred years.”

Driver detention: FMCSA seeks input from carriers, owner-ops

By Kris Rutherford -

WASHINGTON — Detention time, a topic that regularly appears in the American Transportation Research Institute’s annual “Top Industry Issues” report is receiving attention at the federal level. The Federal Motor Carrier Safety Administration (FMCSA) is requesting public comment on the issue of driver retention time. Ultimately, the information collected will be published in an FMCSA report, “Impact of Driver Detention Time on Safety and Operations.” Comments are due March 18, 2024. According to the Information Collection Request (ICR) posted in the Federal Register on Feb. 16, data through collected through the ICR will relate to the safety and operational impact of detention time, why detention time occurs and potential mitigation strategies that can be used to reduce detention time. The FMCSA defines detention time as “the extra time CMV operators wait at shipping and receiving facilities due to delays not associated with the loading and unloading of cargo.” It is noted that drivers are often not paid for this extra time. Sometimes called “dwell time,” detention time typically occurs after a driver has spent more than two hours at a facility. Drivers have long ranked detention time among the top problems in the CMV industry. According to reports from drivers and motor carriers, detention time occurs frequently, resulting in lost revenue for both drivers and trucking companies. If detention time can be reduced, the FMCSA says, it believes costs for carriers will be cut, pay for drivers will be increased and ability to make deliveries on time will be improved. Likewise, drivers experiencing reduced detention time may drive more safely to reach their destinations while complying with hours-of-service regulations. In 2014, the FMCSA completed a study on the impact of detention time on CMV safety. Although this study provided valuable initial insights, it had several limitations, according to the Agency. Data collected in the new study will be used to “fill the gaps” left by the 2024 report and will reflect a broader sample of carriers. The new study will evaluate the impact of driver detention time on safety and CMV operations and will address three primary objectives: (1) assess the frequency and severity of driver detention time using data that represent the major segments of the motor carrier industry; (2) assess the utility of existing ITS solutions to measure detention time; and (3) prepare a final report that summarizes the findings, answers the research questions, and offers strategies to reduce detention time. In addition to shedding light on safety, the data collected may contribute to private sector decisions that will lead to reduced detention time and improvement in safety and efficiency in the CMV industry. The FMCSA is seeking public comment on any aspect of this information collection, including: Whether the proposed collection is necessary for the performance of FMCSA’s functions; The accuracy of the estimated burden; ways for FMCSA to enhance the quality, usefulness and clarity of the collected information; and Ways that the burden could be minimized without reducing the quality of the collected information. Comments and recommendations on the current ICR can be posted here or emailed to www.reginfo.gov/​public/​do/​PRAMain. The deadline for comment submission is March 18, 2024. At the time of this writing, six comments had been posted on the Federal Register ICR, including the following messages. Arctic King Express describes detention time as a “significant challenge” for drivers, noting that it impacts drivers’ compensation, safety and overall well-being. “We believe that addressing this issue requires a multifaceted approach, including changes to compensation structures, enforcement of regulations, and measures to improve safety,” the comment reads. “We advocate for a fair compensation system for drivers, based on an hourly rate. … Yet, even if this regulation is ultimately enforced, it will mean nothing if the FMCSA doesn’t strictly prohibit brokers from including clauses in carrier-broker contracts that encourage carriers to disregard the detention rule…. Small carriers, lacking leverage in the current market, are almost forced to sign such contracts. … Addressing detention time requires a comprehensive approach that includes fair compensation practices, strict enforcement of regulations, and accurate data collection. By prioritizing driver safety and well-being, we can improve the efficiency and sustainability of the trucking industry for all parties involved.” View the full comment here. Connor Spies wrote, “Long ‘detention time’ is not the biggest issue facing drivers today. There is little that can be done to prevent delays when hundreds of trucks per day arrive to certain delivery facilities. However, not having a law that allows owner-operators and other small carriers the right to easily collect a payment for excessive waiting after 2 hours, IS. As an owner-operator, I typically waited 4-6 hours to have the truck unloaded, and often the wait took upwards of 12-18 hours, impacted my ability to conduct the part of my job where I’m paid: driving. I would like to suggest that a law be created to ensure drivers and small owner-operators are guaranteed to be paid a fair wage for waiting. As a suggestion, $20/hour per driver, and $50/hour per truck. Not only would this guarantee rights to America’s largest group of under-represented workers, it would also ensure timely delivery of goods for the average American citizen, as warehouses take necessary steps to optimize the loading and unloading of trucks. Without this being written into law, truck driving will continue to become more about ‘sitting around and waiting,’ than ‘covering miles,’ and fewer qualified persons will be conducting the work.” FMCSA posted a preliminary request for comment on detention time on Aug. 24, 2023; this request garnered 171 comments.

Cummins posts record full year revenue and operating cash flow for 2023

By Kris Rutherford -

COLUMBUS, Ind.—On Feb. 8, Cummins Inc. reported its fourth quarter and full year 2023 financial results. In a news release, the company stated is had posted record full-year revenue and operating cash flow. “High global demand for Cummins’ diverse set of innovative products drove record full year revenues and operating cash flow in 2023,” said Jennifer Rumsey, chair and CEO of Cummins. “Excluding the impacts related to the agreement to resolve U.S. regulatory claims, 2023 was a record year for (earnings before interest, taxes, depreciation and amortization) EBITDA, net income and EPS for Cummins. Also, EBITDA percent improved year over year in the components, distribution and power systems segments. I want to thank all our employees for delivering high-quality products to our customers and making 2023 a successful year.” Fourth quarter 2023 revenues of $8.5 billion increased 10% from the same quarter in 2022, according to the news release. Sales in North America increased 8%, while international revenues increased 13%, reflecting strong demand across most of Cummins’ global markets during the period. In the fourth quarter of 2023, net loss was $1.4 billion, compared to net earnings of $631 million in 2022. The results reflect the recording of a charge related to the agreement to resolve U.S. regulatory claims previously announced in December of $2.04 billion; costs related to the voluntary retirement and separation programs of $42 million; and costs related to the separation of Atmus Filtration Technologies of $33 million. The fourth quarter of 2022 included $19 million\of costs related to the separation of Atmus. EBITDA in the fourth quarter of 2023 was a loss of $878 million, or negative 10.3% of sales, compared to positive $1.1 billion, or 14.2% of sales, a year ago. EBITDA for the fourth quarter of 2023 and the fourth quarter of 2022 included the costs noted above. Revenues for the full year 2023 were $34.1 billion, 21% higher than 2022. Sales in North America increased 22%, and international revenues increased 20% compared to 2022 due to the addition of Meritor and strong demand across most global markets. Based on its current forecast, Cummins projects full year 2024 revenues to decline 2% to 5% on a year-over-year basis and EBITDA to be in the range of 14.4% and 15.4% of sales. “In 2024, we anticipate that demand will slow particularly in the North America heavy-duty truck market, partially offset by strength in other key markets, and have already taken some actions to reduce cost. We will continue to monitor global economic indicators closely and will ensure we are prepared to adjust our business should economic momentum slow further,” Rumsey said. He concluded: “Consistent with how we have managed Cummins through prior cycles, and in alignment with our Destination Zero strategy, we will continue investment in new technologies and products in 2024. This sustained investment will ensure that the company will be positioned to generate strong growth and profitability in both the near- and long-terms.”

PAM Transportation Services reports slide in 2023 revenues

By Kris Rutherford -

LITTLE ROCK, Ark. — P.A.M. Transportation Services, of Tontitown, Arkansas, has reported is fourth quarter and year end revenues for 2023. For the quarter ended December 31, 2023, P.A.M. reported a net consolidated loss of $2.2 million, a diluted or basic loss per share of $0.10, according to a news release. Combined with the first three quarters of 2023, the fourth quarter resulted in a consolidated net income of $18.4 million for the year and a diluted or basic earnings per share of $0.83. Quarter-over-quarter, the numbers compare to a consolidated net income of $18 million and diluted or basic earnings of $0.81 for the same quarter in 2022. Year-over-year, in 2022, consolidated net income was $90.7 million, with diluted earnings per share of $4.04. In terms of consolidated operating revenues, P.A.M. was down 24.2% over 2022 for the quarter and 14.4% for the year. For 2023, the company showed a net operating loss of $0.8 million with total revenues down $180.2 million over 2022. Joe Vitiritto, President of P.A.M., commented, “Our consolidated operating results for the three and twelve months ended December 31, 2023, reflect a continued weak freight environment and the impact of the UAW strike against several customers in the automotive sector in which the Company has significant exposure. Unlike previous UAW strikes, the approach taken in the 2023 strike was impactful to the majority of our auto customer base including both auto manufacturers and suppliers. While the strike ended by mid-November, the negative impact carried on through the typical holiday shutdowns with no post-strike surge in automotive business that we have sometimes experienced after past UAW strikes. “These factors combined to create a challenging backdrop for our business for the quarter and year,” Vitiritto said. “Our team is working to constantly keep improving our results and we will continue to take advantage of opportunities to improve. We are staying focused on our longer-term objectives and seeing sustainable progress in areas that will put us in a position to get back to profitable growth that aligns with our expectations.” P.A.M. Transportation Services, Inc. is a holding company that owns subsidiaries engaged in providing truckload dry van carrier services transporting general commodities throughout the continental United States, as well as in the Canadian provinces of Ontario and Quebec. The company’s consolidated operating subsidiaries also provide transportation services in Mexico through its gateways in Laredo and El Paso, Texas, under agreements with Mexican carriers.