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Study notes significant increase in pace of carrier pay increases

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The National Transportation Institute’s quarterly study  notes that some recruiters are beginning to take the viewpoint that guaranteed pay and transition bonuses are a better reflection of a driver’s value. (Courtesy: NATIONAL TRANSPORTATION INSTITUTE)

KANSAS CITY, Mo. — The National Transportation Institute (NTI), which following compensation trends in the trucking industry, says it has noticed a significant change in the pace of pay moves by carriers and historic mileage pay rates within the findings shared in its National Survey of Driver Wages report (NSDW) for the first quarter of 2019.

Featuring a process that includes proprietary research tracking more than 70 unique attributes, the NSDW is distributed exclusively to NTI subscribers.

In its quarterly study of key driver compensation categories for over-the-road and regional fleets, NTI said it found that, while the acceleration of pay moves has decreased, the pay changes that were made do rank as substantial.

According to NTI, the trends from first quarter of 2019 point to the continued difficulty in attracting and keeping highly qualified drivers.

Those findings make note that the industry is reaching unchartered territory in the area of mileage pay, with rates of up to 65 cents per mile for solo drivers.

LEAH SHAVER

GORDON KLEMP

“Our subscribers tell us that, while freight has dropped and driver churn has increased, the need to monitor driver pay attributes that produce desired outcomes remains especially high,” said NTI COO Leah Shaver. “Some of these outcomes include referrals, safe, productive driving and fair compensation for down time. We’re in a market with near full employment, and driver expectations are raised after a record year in 2018. In these conditions, the driver situation changes rapidly.”

The NSDW also reports on trends related to guaranteed pay and sign-on bonuses.

While the sign-on bonus continues to hold a traditional spot in the driver recruiting toolbox, the first quarter NSDW notes that some recruiters are beginning to take the viewpoint that guaranteed pay and transition bonuses are a better reflection of a driver’s value.

“Our observation is that in first the size of signing bonuses continues to decrease, although the number of carriers offering bonuses continues to remain fairly high. At the same time, carriers that are utilizing some form of guaranteed pay are seeing a positive impact on turnover and hiring,” said NTI CEO and founder Gordon Klemp.

The 2019 Q1 National Survey of Driver Wages report is available through a subscription.

To learn more about the report and how to subscribe, visit DriverWages.com.

 

 

 

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FTR Trucking Conditions Index for July improved to reading above neutral

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FTR said although some positive trucking conditions index readings are possible over the next year, the outlook is for primarily negative to neutral readings throughout the time frame. (The Trucker file photo)

BLOOMINGTON, Ind. — FTR’s Trucking Conditions Index for July improved slightly to a just above neutral reading of 0.28.  Lower diesel prices offset the effects of lower capacity utilization pushing the reading into positive territory for the first time since January. Although some positive readings are possible over the next year, the outlook is for primarily negative to neutral readings throughout the time frame.

Details of the TCI for July are found in the September t issue of FTR’s Trucking Update, published August 30. The “Notes by the Dashboard Light” section issues readers a warning about the possibility for slower growth ahead.

Along with the TCI and “Notes by the Dashboard Light,” the Trucking Update includes data and analysis on load volumes, the capacity environment, rates, costs, and the truck driver situation.

“Although it has become common to hear dire warnings about the state of the trucking industry, the truck freight market as a whole is hardly collapsing,” said Avery Vise, vice president of trucking. “Rapid cooling from last year’s extraordinarily strong market certainly has left many weak carriers exposed, but freight volume and rates are holding up reasonably well – certainly if viewed in a longer-term context. Still, most of the near-term risks to our outlook are on the downside.”

The TCI tracks the changes representing five major conditions in the U.S. truck market, including freight volumes, freight rates, fleet capacity, fuel price and financing.

The individual metrics are combined into a single index indicating the industry’s overall health. A positive score represents good, optimistic conditions. Conversely, a negative score represents bad, pessimistic conditions. Readings near zero are consistent with a neutral operating environment, and double-digit readings (up or down) suggest significant operating changes are likely.

In addition to the monthly updates on trucking conditions, FTR offers a weekly Trucking Market Update in the State of Freight Podcast.

The weekly update, hosted by Avery Vise, covers spot market and economic indicators and major industry developments. To listen to recent episodes and download the indicators that are covered, go to www.FTRintel.com/podcast.

To learn more about FTR visit www.FTRintel.com or call 888-988-1699 or email  or email FTR@FTRintel.com.

 

 

 

 

 

 

 

 

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Average on-highway gallon of diesel up 1.6 cents, but crude oil up 12.97%

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The average price of a gallon of on-highway diesel for the week ending September 16 was 28.1 cents lower than the comparable week in 2018. (The Trucker file photo)

WASHINGTON — The average on-highway price of a gallon of diesel rose 1.6 cents a gallon to $2.987 for the week ending September 16, according to the Energy Information Administration of the Department of Energy.

It was the first weekly increase since the week ending July 8 when the price went up 1.3 cents a gallon to $3.055.

What, if any, impact did the attack on the Saudi oil facility have on the price this week is hard to determine since the attack occurred only early last Saturday.

“Our team is keeping a close eye on the impact of the Saudi oil fire on the diesel market,” said a spokesperson for Pilot Flying J. “We have already seen the market react, but it’s too early to predict the extent of the impact. Our No. 1 priority remains getting our guests from point A to point B as quickly and conveniently as possible.”

The price of West Texas Intermediate crude rose 12.97% to $61.93 Monday.

All regions of the country increased with the exception of the Central Atlantic States (New York, Pennsylvania, Maryland, Delaware and New Jersey) where the price dropped nine tenths of a penny to $3.013.

The largest increase was in the West Coast minus California at 3 cents top $3.161. The next largest increase was 2.6 cents in the overall West Coast region (California, Arizona, Nevada, Oregon and Washington) and the Rocky Mountain states (Colorado, Utah, Wyoming, Idaho and Montana.

The price for the week ending September 16 was 28.1 cents lower than the comparable week in 2018.

For a complete list of prices by region for the past three weeks, click here.

 

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DOT’s freight transportation index rises to new all-time high in July

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The Freight TSI measures the month-to-month changes in for-hire freight shipments by mode of transportation in tons and ton-miles, which are combined into one index. (The Trucker file photo)

WASHINGTON — The Freight Transportation Services Index (TSI), which is based on the amount of freight carried by the for-hire transportation industry, rose 0.9% in July from June, rising to a new all-time high after declining for two consecutive months, the Department of Transportation’s Bureau of Transportation Statistics’ (BTS) said Thursday.

From July 2018 to July 2019, the index rose 2.9% compared to a rise of 6.0% from July 2017 to July 2018.

The Freight TSI measures the month-to-month changes in for-hire freight shipments by mode of transportation in tons and ton-miles, which are combined into one index. The index measures the output of the for-hire freight transportation industry and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight. The TSI is seasonally-adjusted to remove regular seasons from month-to-month comparisons.

The BTS said the Uly increase was broad based with increases in rail carloads, rail intermodal, trucking, pipeline and air freight. There was a small decline in water transportation.

The TSI increase took place against a background of mixed results for other indicators.

The Federal Reserve Board Industrial Production Index declined in July, reflecting decreases in mining and manufacturing and an increase in utilities. Personal income increased by 0.1%, while housing starts declined by 4.0%. The Institute for Supply Management Manufacturing index decreased 0.5 points to 51.2, indicating continued but slowing growth.

The BTS said despite small decreases in both May (-0.1%) and June (-0.3%), the July index was 0.6% over its April level and 0.2% over its previous record high in November 2018.

The record high level was reached even though the index increased in only four of the eight months since November. From a low point in March 2016, the index climbed 12.8% until reaching a new high in May 2018. From that point, the index has exceeded its levels in all months prior to May 2018. The July 2019 index was 46.6% above the April 2009 low during the most recent recession.

For-hire freight shipments in July 2019 (139.0) were 46.6% higher than the low in April 2009 during the recession (94.8). The July 2019 level reached its all-time high.

For-hire freight shipments measured by the index were up 2.1% in July compared to the end of 2018.

For-hire freight shipments are up 15.4% in the five years from July 2014 and are up 41.4% in the 10 years from July 2009.

 

 

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