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N.A. Class 8 orders in June down considerably from one year ago

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FTR reported backlogs should fall under 200,000 units for first time since May 2018. Class 8 orders for the past 12 months now total 331,000 units. Pictured is the Volvo New River Valley, Virginia, manufacturing plant. (Courtesy: VOLVO TRUCKS NORTH AMERICA)

The two organizations that collect, analyze and report data on new truck sales both report June Class 8 orders in the 13,000 range, considerably below the same month in 2018.

ACT Research said preliminary North America Class 8 net order data show the industry booked 13,100 units in June, gaining 20% from May’s three-year low, but down a significant 69% from year-ago June’s very tough comparison.

FTR reports preliminary North American Class 8 orders for June at 13,000 units, up 24% from May, but continuing to track well below 20,000 units. Including June activity, this is the weakest six-month start to a year since 2010.  Most orders for 2019 delivery have already been placed. Fleets are moving around previously placed orders and adjusting delivery times according to business conditions and smaller fleets and dealers are placing small fill-in orders, as production slots become available in the near term.  Backlogs should fall under 200,000 units for first time since May 2018. Class 8 orders for the past 12 months now total 331,000 units.

“Weak freight market and rate conditions across North America and a still-large Class 8 backlog continue to bedevil new Class 8 orders,” said Kenny Vieth, ACT’s president and senior analyst. “Seasonal adjustment lifts June’s Class 8 net orders to 15,100 units, and through the first half of 2019, Class 8 net orders were booked at a 181,000 seasonally adjusted annual rate.”

Don Ake, FTR vice president of commercial vehicles, said “The orders are truly a mixed bag. One OEM reportedly started to take orders for 2020, but the other OEMs apparently did not. Without the 2020 orders, the total would have dipped below the 10,000-unit mark. Most OEMs are reluctant to quote future trucks due to uncertainty over material costs. Until the tariff situation is resolved, it is risky to quote prices for 2020. Fleets are also reluctant to accept material surcharges with this much ambiguity present.”

The economy and freight are still growing, but the latest manufacturing data is not promising, Ake said.

“The consumer sector is sturdy, but freight growth is expected to moderate the rest of the year. As a result, Class 8 truck build rates should begin to decrease in the coming months,” he said.

 

 

 

 

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ATA Truck Tonnage Index falls 1.1% in June, but 1.5% higher than June 2018

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Compared with June 2018, the SA index increased 1.5%, the smallest year-over-year gain since April 2017.

ARLINGTON, Va. — The American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index decreased 1.1% in June after falling 4% in May. In June, the index equaled 115.2 (2015=100) compared with 116.5 in May.

“Tonnage continues to show resilience as it posted the 26th year-over-year increase despite falling for the second straight month sequentially,” said ATA Chief Economist Bob Costello. “The year-over-year gain was the smallest over the past two years, but the level of freight remains quite high. Tonnage is outperforming other trucking metrics as heavy freight sectors, like tank truck, are witnessing better freight levels than sectors like dry van, which has a lower average weight per load.”

May’s reading was revised up compared with our June press release.

Compared with June 2018, the SA index increased 1.5%, the smallest year-over-year gain since April 2017.

The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 117.6 in June, 3.3% below May level (121.7). In calculating the index, 100 represents 2015.

Trucking serves as a barometer of the U.S. economy, representing 70.2% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled 10.77 billion tons of freight in 2017. Motor carriers collected $700.1 billion, or 79.3% of total revenue earned by all transport modes.

ATA calculates the tonnage index based on surveys from its membership and has been doing so since the 1970s. This is a preliminary figure and subject to change in the final report issued around the 5th day of each month. The report includes month-to-month and year-over-year results, relevant economic comparisons, and key financial indicators.

 

 

 

 

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JK Moving modernizes moving with mobile app and virtual AI estimating options

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The JK mobile app enables clients to go onto the app to receive and review estimates; accept and edit estimates; make payments; communicate with their sales consultant and move coordinator; and prepare for the move day. (Courtesy: JK MOVING)

STERLING, Va. — JK Moving Services, a global moving, storage, relocation and logistics enterprise, says it has added new technologies to further modernize the move experience for customers, including a mobile app to help the customer manage the move process and software to do virtual estimates with either a real person or by an artificial intelligence interface.

“Great technology makes for better moves and that’s why we invest in cutting-edge solutions. Mobile apps and AI are now part of our customer tool kit,” said CEO Chuck Kuhn. “Giving clients choices in how they work with us helps us meet a variety of customer needs and styles.”

Kuhn said JK’s tech team had created a downloadable mobile app that enables clients to go onto the app to receive and review estimates; accept and edit estimates; make payments; communicate with their sales consultant and move coordinator; and prepare for the move day. The app is monitored 24/7 by the JK team.

Since this custom app was developed in-house, JK is able to incorporate feedback and improvements quickly, Kuhn said, adding that the mobile app complements new estimating software that clients can use to get a virtual estimate.

The client gives a tour of their house with their phone to their choice of a real or AI representative. The AI estimating software recognizes shapes of objects and makes an inventory list. From that tour, JK can provide an estimate and send it to the mobile app. Estimators still are available to come to someone’s house if that is what the client prefers.

“Going mobile improves our customer offerings since many clients want products that are seamless, easy and quick. We’re receiving terrific feedback for our new mobile app and virtual estimating. These tech advancements put us at the forefront of the residential moving business,” said David Cox, executive vice president, residential, JK Moving.

Cox said the mobile app also reduces the use of paper, which is good for the environment. Environmental stewardship is part of the JK culture and a consideration in many of the company’s innovations.

“In fact, JK was one of the first on many environmentally friendly practices, including: ordering Tesla semi moving trucks, embracing new technologies that will further its aggressive carbon emissions-reduction goals, leading with box-less moves and major recycling efforts, and starting a chemical free community farm,” he said.

Another recent modernization includes the addition of dashcam technology in its whole fleet. These cameras are installed in the truck cabs. When a trigger event happens, such as a sudden stop or jostling movement, a 12-second video clip gets sent to DriveCam, a third-party vendor that monitors and evaluates the incidents. DriveCam sends JK feedback when opportunities arise to improve driving behaviors, enabling JK to provide customized training to drivers. The dashcams have resulted in employees improving their driving skills and experiencing fewer triggering events, resulting in fewer accidents and a reduction in claims.

 

 

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Reddaway celebrates centennial anniversary while continuing its evolution

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One hundred years after its founding, Reddaway operates with 5,000 trailers, 1,500 tractors, and is now part of YRC Regional Transportation, along with Holland in the Midwest and Southeast, and New Penn serving the Eastern United States (Courtesy: REDDWAY)

TUALATIN, Ore. — Reddaway, the longest continuously operating Oregon-based regional less-than-truckload carrier, is celebrating its 100-year anniversary this year.

Founded in 1919 in Oregon City, Reddaway continues to advance its services for the 21st century while remaining the premier service provider in the Western United States and Canada, according to Reddway President Bob Stone.

Reddaway’s founder, William Arthur Reddaway, began the company with one Ford Model T truck primarily serving Portland and Oregon City. One hundred years later, Reddaway operates with 5,000 trailers, 1,500 tractors, and is now part of YRC Regional Transportation, along with Holland in the Midwest and Southeast, and New Penn serving the Eastern United States.

“It’s humbling to think about the legacy of innovation, continuous improvement, exceptional reliability and the personalized support that have not only carried us through the past 100 years, but have allowed us to thrive,” Stone said. “I have had the pleasure of witnessing it firsthand for the past 25 years. I’m honored to work alongside the dedicated people who make Reddaway a company that our customers enjoy doing business with. It’s this culture and our people who help us continue to thrive into the next century.”

As part of the company’s 100-year celebration, Reddaway will be hosting appreciation events in the Tualatin office as well as field offices to recognize and thank the thousands of loyal employees who work hard to take care of the customers they serve, Stone said.

The western U.S. provider of LTL services, Reddaway currently employs over 2,800 people and operates more than 40 service centers. With high on-time reliability and one of the lowest claim ratios in the west, Reddaway continues to lead the industry in customer satisfaction.

Reddaway has earned multiple distinctions over the years, including these recent awards such as the 2018 West Coast Regional Carrier of the Year from Worldwide Express, 2018 LTL Carrier of the Year from DHL Supply Chain and the 2018 Carrier of the Year, West Regional, by GlobalTranz.

For more information, visit www.reddawayregional.com.

 

 

 

 

 

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