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Solid freight activity not enough to keep spot rates from falling

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The number of flatbed load posts fell 7 percent while truck posts were down 5 percent compared to the previous week. (Courtesy: GREAT DANE)

PORTLAND, Ore. — Spot truckload rates tumbled during the week ending January 26 despite increases in van and refrigerated load-to-truck ratios, according to DAT Solutions, which operates the DAT network of load boards.

The national average van rate fell below the $2 per mile mark for the first time since September 2017. National average spot reefer and flatbed prices moved lower for the third straight week.

Following are the national average spot truckload rates:

Van: $1.97/mile, down 4 cents

Flatbed: $2.37/mile, down 1 cent

Reefer: $2.34/mile, down 3 cents

Low fuel prices have contributed to recent spot-rate declines (spot rates include a surcharge for fuel). The national average price of on-highway diesel was $2.96 per gallon last week, unchanged from the previous week.

Van Trends

The number of posted dry vans on DAT load boards fell 8 percent compared to the previous week while the number of posted loads held steady, a sign that freight volume remains solid.

Indeed, the van load-to-truck ratio increased to 4.0 loads per truck; it hit a 20-month low of 3.7 the previous week.

However, spot van rates continue to weaken especially in the West. The sharpest drop has been from Los Angeles, where the average outbound rate fell 13 cents to $2.12/mile. That’s down 19 percent over the past four weeks. The average rate from Los Angeles to Chicago was down 19 cents last week to just $1.30/mile.

Flatbed Trends

The number of flatbed load posts fell 7 percent while truck posts were down 5 percent compared to the previous week. As a result, the national flatbed load-to-truck ratio slipped from 21.7 to 21.2 loads per truck.

Reefer Trends

Reefer load posts increased 4 percent while truck posts fell 8 percent, which caused the national reefer load-to-truck ratio to move up from 4.9 to 5.6 loads per truck. Average outbound prices softened in many key markets:

Grand Rapids, Michigan: $3.30/mile, down 7 cents

Chicago: $2.73/mile, down 7 cents

Atlanta: $2.55/mile, down 1 cent

Dallas: $2.06/mile, down 4 cents

Elizabeth, New Jersey: $1.99/mile, down 7 cents

What to watch this week: the effect of extreme weather on spot rates.

Winter storms cause trucking operations to slow, which has the effect of reducing available capacity. The weather also affects shippers and receivers who may have trouble maintaining staffing levels and schedules. Restricted capacity can drive rates up, while slowdowns in business and consumer activity can push rates down. Ultimately, the timing and severity of this current winter storm will determine the impact on rates.

DAT Trendlines are generated using 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 $60 billion in freight payments.

DAT load boards average 1.2 million load posts searched per business day.

For the latest spot market load availability and rate information, visit http://dat.com/trendlines and follow @LoadBoards on Twitter.

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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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