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Mid America Logistics initiates ‘transparent’ pay program

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Fenton, Missouri, based Mid America Logistics’ new pay provides guaranteed compensation exceeding $100,000 a year for solo Drivers and $250,000 for teams regardless of miles driven. (Courtesy: MID AMERICA LOGISTICS)

ST. LOUIS — Mid America Logistics has announced a new driver program called “No More Counting Miles” as what the company is calling a transparent driver pay model.

The program allows single or team drivers to choose 30-, 60- or 90-day tours and provide guaranteed compensation that escalates based on length of the tour.

Drivers have control of their start date of each tour and are not obligated to start another tour until they contractually commit to another tour.

“The biggest pain point in the trucking industry is staying competitive against over 500,000 registered trucking companies in the U.S.,” said Mid America Logistics’ Managing Partner and Co-Founder Sam Baisch. “Our logistics division has found new innovative ways to over double in size and we used that innovation to create a market disrupter for our trucking division.”

Baisch said in creating the program Mid-America addressed the two greatest irritants of drivers; driver payroll and control of personal time.

“This program gives the control back in the drivers hands,” he said.

Under Mid America Logistics’ new program, solo drivers are compensated a fixed gross amount of either $6,500, $14,000 and $24,000 for 30-, 60-, and 90-day tours, respectively.

Team drivers are compensated $17,000, $38,000 and $63,000 for the same respective tour periods.

Drivers are contracted on tours independently and entitled to the published amounts and paid weekly.

They are provided paid orientation for their first tour and issued a late model Freightliner Cascadia Tractor and trailer. If a driver wishes to continue driving for Mid America Logistics, they simply contract for an additional tour period. Mid America will entertain drivers under this program with a minimum of two years of long-haul driving experience and a clean driving and criminal record, Baisch said.

“Oftentimes drivers are lured away based on a promise of making six figures a year and never get the miles to do so,” said Ann Searles, the asset operations manager at Mid America Logistics. “Now we have the ability to provide a fixed model that is transparent where we pay drivers for their time while respecting their family lives”.

With offices in St. Louis, Cincinnati, Phoenix, Charlotte, North Carolina, Jacksonville, Florida, Nashville, Tennessee, Northwest Arkansas and Guadalajara, Mexico, Mid America has over 130 employees. It offers full truckload, less-than-truckload, and transportation technology services to clients in the food production, retail, CPG, industrial, and agricultural industries.

For more information, visit www.midamericalogistics.com.

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ACT Research For-Hire Trucking Index: Bottoming process under way?

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ACT Research Vice President and Senior Analyst Tim Denover said a recent surge in the For-Hire Trucking Index is being partially driven by strong consumer trends. (Courtesy: ACT RESEARCH)

COLUMBUS, Ind. — The latest release of ACT’s For-Hire Trucking Index with September data showed an even stronger surge than July with the Volume Index up to 59.6 (seasonally-adjusted) from 47.6 in August.

The September Pricing Index rebounded as well, if to a lesser degree, rising to 52.2 (SA), from 47.1 in August.

The ACT For-Hire Trucking Index is a monthly survey of for-hire trucking service providers. ACT Research converts responses into diffusion indexes, where the neutral or flat level is 50. In return, participants receive a detailed monthly analysis of the survey data, including volumes, freight rates, capacity, productivity and purchasing intentions, plus a complimentary copy of ACT’s Transportation Digest report.

“We remain mindful of shippers’ duty to manage tariff risk, but this surge is likely also being driven by strong consumer trends,” said Tim Denoyer, ACT Research’s vice president and senior analyst. “With still-aggressive private fleet growth and a weak U.S. manufacturing sector, choppy results will likely continue, but the past few months suggest a bottoming process is underway. It won’t be linear, as record U.S. Class 8 tractor retail sales in September tell us capacity is still being added rather quickly, but capacity rebalancing will unfold over the course of next year.”

Buying intentions pulled back materially in September, falling to 48.3% of respondents planning to buy trucks in the next three months, from 53.9% in August (SA).

Regarding purchase intentions, Denoyer said, “The unsustainable pattern of low orders with long backlogs supporting record purchasing is set to end right around the new year, and notably it’s the private fleets, not the for-hire carriers, that are still adding capacity.”

The ACT Freight Forecast provides forecasts for the direction of volumes and contract rates quarterly through 2020 with three years of annual forecasts for the truckload, less-than-truckload and intermodal segments of the transportation industry. For the truckload spot market, the report provides forecasts for the next twelve months. The ACT Research Freight Forecast uses equipment capacity modeling and the firm’s economics expertise to provide unprecedented visibility for the future of freight rates, helping businesses in transportation and logistics management plan for the future with confidence.

ACT Research is a publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasts for the North America and China markets.

For-hire trucking executives interested in participating in the For-Hire Trucking Index should email trucks@actresearch.net.

 

 

 

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DAT Solutions says spot loads declined 5% for week ending October 22

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Chart shows rates for three segments of the trucking industry for the past four months. (Courtesy: DAT SOLUTIONS)

PORTLAND, Ore. — Despite higher freight volumes in several key markets, load postings fell 5% nationwide and truck posts dipped 1% during the week ending October 22, said DAT Solutions, which operates the industry’s largest electronic marketplace for spot truckload freight.

National average spot van, refrigerated, and flatbed rates were mostly unchanged compared to the previous week.

National Average Spot Rates for October (through October 22) include:

  • Van: $1.81 per mile, 3 cents lower than the September average
  • Flatbed: $2.20 per mile, unchanged compared to September
  • Reefer: $2.12 per mile, 4 cents lower than September

Van Trends

Spot van rates were higher on just 33 of DAT’s Top 100 largest van lanes by volume. Chicago, Dallas and Los Angeles, three of the most important van markets, all showed higher volumes last week, although average outbound rates declined in each. The Los Angeles load-truck ratio hit 4.1 last Friday after starting the week at 2.5 (neutral) and dipping as low as 1.8 on Tuesday. It’s a sign that import traffic is moving eastbound.

Where rates were up: Volume from Seattle increased slightly and outbound rate gained 5 cents to $1.58 per mile. Key lanes included:

  • Seattle to Salt Lake City, up 7 cents to $1.94 per mile
  • Seattle to Los Angeles, up 6 cents to $1.36 per mile

Seattle is the only major van market where rates are higher over the past four weeks.

Reefer Trends

A combination of produce from Mexico and strong domestic agricultural shipments from California, Florida, Texas, and the Upper Midwest has pushed spot reefer volumes 9% higher over the past four weeks yet the national average rate has declined 3% at the same time.

Where rates were up: Reefer volumes from Nogales, Arizona, increased 68% compared to the previous week and the average outbound rate rose 7 cents to $1.75 per mile. McAllen, Texas, volume jumped 38% although the average outbound rate held at $1.95 per mile. Other high-volume markets last week also had plenty of trucks, which helped tame any changes in rates.

This weekly spot-rate snapshot is derived from DAT RateView, which provides real-time reports on spot market and contract rates, as well as historical rate and capacity trends. The RateView database is comprised of more than $65 billion in annualized freight payments. DAT load boards average 1.2 million load searches per business day.

For more information, visit www.dat.com/Trendlines.

 

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OIG to audit FMCSA’s oversight of compliance of state CDL programs

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In initiating the audit, the Department of Transportation Office of the Inspector General not that there had been an 11% increase in fatalities in crashes involving large trucks or buses. (©2019 FOTOSEARCH)

WASHINGTON — A fatal traffic accident in Massachusetts involving a tractor trailer has prompted the Office of Inspector General of the Department of Transportation to initiate an audit of the Federal Motor Carrier Safety Administration’s review of state commercial driver’s license programs to determine whether those programs comply with CDL regulations.

The OIG Tuesday notified the FMCSA of its intent.

The notice said that earlier this year, a fatal crash involving a commercial driver led to an internal investigation by the Massachusetts Registry of Motor Vehicles (RMV) that found that RMV had not systematically processed out-of-state paper notifications of driver convictions in about five years.

The OIG said that investigation also identified a software flaw that hindered RMV’s ability to process out-of-state electronic notifications in a timely manner.

Consequently, this past summer, RMV issued thousands of CDL suspensions, based on previously unprocessed out-of-state notifications.

“Accordingly, our objective for this self-initiated audit is to assess FMCSA’s oversight of state driver’s licensing agencies’ actions to disqualify commercial drivers when warranted,” wrote Barry J. DeWeese, assistant Inspector General for surface transportation audits. “We will begin the audit immediately and coordinate with your audit liaison to schedule an entrance conference. We will conduct our audit at FMCSA.”

DeWeese noted that the FMCSA’s primary mission is to reduce crashes, injuries, and fatalities involving large trucks and buses, but said that in recent years, the number of large trucks and buses on the roads has increased.

Similarly, he said, according to FMCSA data as of June 2019, fatalities in crashes involving large trucks or buses have grown from 4,455 in 2013 to 4,949 in 2018, an 11% increase.

A spokesman for FMCSA said as it always does, the agency would cooperate with the OIG to complete the audit.

 

 

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