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ATA’s Truck Tonnage Index decreases in July

WASHINGTON — American Trucking Associations’ (ATA) advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index decreased 0.8% in July after falling 0.3% in June. In July, the index equaled 112.9 (2015=100) compared with 113.8 in June, according to a news release. “Headwinds for freight remained in July, pushing the truck tonnage index lower,” said ATA Chief Economist Bob Costello. “As has been the case for several months, a multitude of factors have caused a recession in freight, including sluggish spending on goods by households as consumers traveled more and went to concerts this summer. Less home construction, falling factory output and shippers consolidating freight into fewer shipments compared with the frenzy during the goods buying spree at the height of the pandemic are also significant drags on tonnage.” June’s increase was revised lower from the ATA’s July 18 press release. Compared with July 2022, the SA index fell 3%, which was the fifth straight year-over-year decrease. In June, the index was down 3.2% from a year earlier. The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 111.5 in July, 5.5% below the June level (118). In calculating the index, 100 represents 2015. ATA’s For-Hire Truck Tonnage Index is dominated by contract freight as opposed to spot market freight.

Diesel prices continue upward charge

LITTLE ROCK, Ark. — The average price for a gallon of diesel fuel has risen for the fifth straight week. According to the Energy Information Administration, as of Aug. 21, the price sits at $4.389 per gallon across the nation. That’s up from $4.378 on Aug. 14 and $4.239 on Aug. 7. The Midwest is the only area of the country that saw a slight decline in prices — $4.302 per gallon, on average. To blame are rising oil prices, a slowdown at refineries due to a heatwave, as well as preparations for possible hurricanes, according to energy experts.

Bidding War: Old Dominion tops Estes Express’ offer for Yellow’s terminals

DOVER, Del. — Old Dominion Freight Line Inc. has topped an offer by Estes Express to purchase Yellow’s terminals out of bankruptcy. According to papers filed in a Delaware bankruptcy court on Friday, Aug. 18, Old Dominion has bid $1.5 billion. On Aug. 17, Estes Express filed paperwork to offer $1.3 billion for the terminals. That bid, known as a “stalking horse,” doesn’t allow anyone to bid lower than $1.3 billion but doesn’t prevent higher bids. The winning bidder will own more than 270 terminals. Yellow, which has 180 days to entertain higher bids for its real estate assets, also plans to sell its tractors and trailers. Yellow filed for Chapter 11 bankruptcy protection in Delaware and shut down operations in early August after financial woes and a lack of cash. None of the companies have offered comment on the pending deals.

CVSA’s Brake Safety Week begins Aug. 20

WASHINGTON — The Commercial Vehicle Safety Alliance’s (CVSA) Brake Safety Week is set for Aug. 20-26. During Brake Safety Week, commercial motor vehicle inspectors highlight the importance of brake systems by conducting inspections of their components and removing commercial motor vehicles found to have brake-related out-of-service violations from our roadways until those violations are corrected, according to the CVSA. Throughout Brake Safety Week, CVSA-certified inspectors will conduct their usual inspections; however, in addition, they will be reporting brake-related inspection and violation data to the Alliance. CVSA will compile that data and publish a press release this fall with the results. “The focus of this year’s Brake Safety Week is on the condition of the brake lining and pad,” said CVSA President Major Chris Nordloh with the Texas Department of Public Safety. “Brake lining and pad issues may result in vehicle violations and could affect a motor carrier’s safety rating.” When inspectors conduct the brake portion of a Level I or Level V Inspection, they will: Check for missing, non-functioning, loose or cracked parts. Check for contaminated, worn, cracked and missing linings or pads. Check for S-cam flipover. Listen for audible air leaks around brake components and lines. Check that slack adjusters are the same length (from center of S-cam to center of clevis pin) and the air chambers on each axle are the same size. Ensure the brake system maintains air pressure between 90-100 psi (620-690 kPa) and measure pushrod travel. Inspect for non-manufactured holes (e.g., rust holes, holes created by rubbing or friction, etc.) and broken springs in the spring brake housing section of the parking brake. Inspect required brake system warning devices, such as anti-lock braking system (ABS) malfunction lamp(s) and low air-pressure warning devices. Inspect the tractor protection system, including the bleedback system on the trailer. Ensure the breakaway system is operable on the trailer. Brake safety awareness, education and outreach are major elements of the Brake Safety Week campaign. CVSA has outlined the brake-system inspection procedure (noted above) so that drivers and motor carriers know exactly what inspectors will be checking during roadside inspections. “This transparency aims to remind drivers and motor carriers to take proactive steps to ensure their commercial motor vehicles are safe and compliant with Federal Motor Carrier Safety Regulations,” CVSA officials said. “Improperly installed or poorly maintained brake systems can reduce the braking capacity and stopping distance of trucks or buses, which poses a serious safety risk.”

Preliminary net trailer orders rise as ’24 books open

COLUMBUS, Ind. — July’s preliminary net trailer orders increased sequentially but were lower against longer-term comparisons, with 10,000 units, according to ACT Research. As the weakest order month of the year, July’s seasonally adjusted (SA) factor boosts the SA tally to 15,700 units. Final July results will be available later this month. This preliminary market estimate should be within +/-5% of the final order tally. Preliminary net orders, at 15,700 seasonally adjusted, rose more than 95% sequentially and were the highest seasonally adjusted level since March,” said Jennifer McNealy, director of commercial vehicle market research and publications at ACT Research. “With still high backlogs and 2024 orderboards only minimally open, it is still too soon for robust expectations.” Additionally, July’s preliminary data show cancellations, although still higher than desired, moderated after three months of broadly-based elevated cancellations, McNealy noted. “Backlogs remain healthy, if falling below year-ago levels for the first time this year in June,” she said. “Demand may be softening, but it’s far from falling off a cliff.” When asked about the backlog’s trajectory, McNealy said: “Using preliminary July orders and the corresponding OEM build plans from the July State of the Industry: U.S. Trailers report (June data) for guidance, we would expect the trailer backlog to decrease by around 14,800 units to about 157,000 units when complete July data are released. As this number is derived from estimated data, note there will be some variability to reported backlogs when final data are collected.”

Freight market begins rebalancing, ACT reports

COLUMBUS, Ind. — The rebalancing process in the U.S. freight market is being drawn out by reluctance to part with workers and significant private fleet capacity expansion, even as pressure on fleets worsened this month as diesel prices spiked, according to the latest release of the ACT Research Freight Forecast, U.S. Rate and Volume OUTLOOK report. “Although seasonality remains loose and demand soft, spot market dynamics have begun to shift since the end of operations at Yellow on July 31. While this is a game-changer for LTL rates, so far, the truckload market is still loose enough for rates to be largely unaffected. We see the impact growing over time, along seasonal patterns,” said Tim Denoyer, ACT Research’s vice president and senior analyst. The publicly traded for-hire fleets reduced their collective tractor count by 3% in 1H’23, but Class 8 tractor sales and production are still near maximum levels, adding considerably to the Class 8 tractor fleet. Private fleets are still growing and pulling freight from the for-hire market. “Class 8 orders will be very interesting over the next several months and, in our view, pivotal to setting the market tone for 2024,” Denoyer said.  

Average US diesel prices see continued spike

LITTLE ROCK, Ark. — Average U.S. diesel fuel prices are continuing their upward climb. According to the Energy Information Administration (EIA), as of Aug. 14, the price sits at $4.378, up from $4.239 on Aug. 7 and $4.127 on July 31. The highest prices can be found in California, where a gallon, on average, will cost drivers $5.518. That’s up from $5.339 on Aug. 7 and $5.158 on July 31. The lowest prices can be found along the Gulf Coast at $4.095 per gallon on average. Diesel prices have risen at a rate faster than crude oil partly because of a worldwide inventory pinch. Benchmark U.S. crude oil for September delivery fell 68 cents to $82.51 a barrel Monday. Brent crude for October delivery fell 60 cents to $86.21 a barrel.  

Opposition mounting to FMCSA’s rest break waiver proposal

WASHINGTON — Two major trucking groups are opposed to the Federal Motor Carrier Safety Administration’s (FMCSA) decision to consider petitions for waivers related to two states’ meal and rest break (MRB) rules, while a third says they are studying the proposal. In 2018, the FMCSA ruled that California’s MRBs for commercial motor vehicle drivers were preempted by federal hours-of-service regulations. The agency made the same determination in 2020 with regard to Washington state’s MRBs. Both states’ rules are stricter than federal regulations. Under the United States Code, states are prohibited from enforcing a law or regulation on commercial motor vehicle (CMV) safety that the Secretary of Transportation has determined to be preempted. Now, however, the FMCSA is accepting waivers that would allow those stricter state rules to be enforced as long as the petitioner “demonstrates to the agency’s satisfaction that a waiver from federal preemption is in the public interest and is consistent with the safe operation of CMVs.” Under the California Labor Code, employers must provide nonexempt employees a 30-minute meal break if they work more than five hours in a day, and employees who work a shift of 10 hours or more are entitled to a second 30-minute meal break. The California Code of Regulations states that employers are required to provide rest periods for non-exempt employees who work three-and-a-half or more hours in a day. Employees are entitled to a 10-minute rest period for each four hours, or a substantial fraction thereof, that they work in a day. To the extent possible, these breaks are to be taken in the middle of each four-hour period. California law provides that an employer shall not require an employee to work during a mandated meal or rest break and provides for additional pay as a remedy for violating that prohibition. Under the Washington Department of Labor and Industries’ regulations, employers must provide employees a meal period of at least 30 minutes that commences after the second hour and before the fifth hour after the shift commences. In addition, Washington’s MRB rules provide for a 10-minute rest period “for each four hours of working time” and must occur no later than the end of the third working hour. The rest period must be scheduled as near as possible to the midpoint of the 4 hours of working time, and no employee may be required to work more than three consecutive hours without a rest period. Federal hours-of-service rules require that drivers only be provided a 30-minute break after eight hours of driving time (instead of on-duty time) and allow an on-duty/not driving period to qualify as the required break. The Washington Trucking Association has contended that the stricter state regulations could make a lack of truck parking worse because drivers would have to spend more time looking for a place to shut down while they rest — or park in an unsafe area. The Truckload Carriers Association (TCA) and the American Trucking Associations (ATA) also oppose the state rules. “The Truckload Carriers Association opposes any effort to institute the California and Washington state meal and rest break laws and supports the implementation of the federal rules pertaining to meal and rest breaks,” said Dave Heller Sr. vice president of safety and government affairs at TCA. ATA President and CEO Chris Spear said the ATA is for “a singular, national standard of work rules for professional drivers is crucial to both safety and the supply chain.” “Federal law already mandates rest breaks for drivers,” he added. “Unnecessary and duplicative state laws are not grounded in safety and have been primarily enforced via private lawsuits designed to extort the trucking industry. Opening the door to this spurious litigation once again would impair the safe and efficient movement of interstate goods.” Spear said that the ATA “is fully prepared to oppose this effort that would result in a confusing patchwork of regulations. We will leverage all of our Federation’s resources to stop this in its tracks.” Meanwhile, the Owner-Operator Independent Drivers Association (OOIDA) hasn’t taken a firm stance on the issue. “OOIDA represents over 150,000 small business truckers across the United States, some who operate exclusively within their state borders but many more who have interstate operations,” according to a statement. “We are currently analyzing the waiver request from FMCSA based on OOIDA member feedback on intended benefits and potential unintended consequences.” The FMCSA requests that any waiver petition address the following issues, in addition to any other relevant issues: Whether and to what extent enforcement of a State’s meal and rest break laws with respect to intrastate property-carrying and passenger-carrying CMV drivers has impacted the health and safety of drivers. Whether enforcement of State meal and rest break laws as applied to interstate property-carrying or passenger-carrying CMV drivers will exacerbate the existing truck parking shortages and result in more trucks parking on the side of the road, whether any such effect will burden interstate commerce or create additional dangers to drivers and the public, and whether the applicant intends to take any actions to mitigate or address any such effect. Whether enforcement of a State’s meal and rest break laws as applied to interstate property-carrying or passenger-carrying CMV drivers will dissuade carriers from operating in that State, whether any such effect will weaken the resiliency of the national supply chain, and whether the applicant intends to take any actions to mitigate or address any such effect.

FMCSA seeking public input on CMV accident recordkeeping

WASHINGTON — The Federal Motor Carrier Safety Administration (FMCSA) is asking for public input on its decision to renew accident recordkeeping requirements for motor carriers. The notice, posted on Aug. 7, notes that the regulation doesn’t require trucking companies to report the data to FMCSA; however, the carrier must produce the information when requested by federal, state or local officials. The following information must be recorded for each accident: date, location, driver name, number of injuries, number of fatalities, and whether certain dangerous hazardous materials were released. In addition, the motor carrier must maintain copies of all accident reports required by insurers or governmental entities. Motor carriers must maintain this information for three years after the date of the accident. “By requiring motor carriers to gather and record information concerning CMV accidents, FMCSA is strengthening its ability to assess the safety performance of motor carriers,” the notice states. “This information is a valuable resource in Agency initiatives to prevent, and reduce the severity of, CMV crashes.” The public is asked to: Comment on any aspect of this information collection, including whether the proposed collection is necessary for the performance of FMCSA’s functions. Comment on the accuracy of the estimated burden. Comment on the ways FMCSA can enhance the quality, usefulness and clarity of the collected information. Comment on ways that the burden could be minimized without reducing the quality of the collected information.

Nikola issues voluntary recall for more than 200 electric rigs after fire

PHOENIX — Electric truck manufacturer Nikola has issued a voluntary recall of approximately 209 Class 8 Tre battery-electric vehicles (BEVs). The recall comes about two months after a single battery pack inside a Tre tractor sprung a coolant leak, causing a blaze at the company’s Phoenix headquarters, according to a Nikola news release. Nikola is currently in the process of filing this voluntary recall with the National Highway Traffic Safety Administration (NHTSA) and is placing a temporary hold on new BEV sales until a resolution is in place. These actions do not affect the hydrogen fuel cell electric vehicle currently in production as the truck’s battery pack has a different design, the news release noted. “Following an Aug.10 presentation of preliminary findings from Exponent, a reputable third-party investigator, a coolant leak inside a single battery pack was found to be the probable cause of the truck fire on June 23, 2023,” the news release stated. “The findings were further corroborated by a minor thermal incident that impacted one pack on an engineering validation truck parked at the company’s Coolidge, Arizona, plant on Aug. 10. No one was injured in either incident.” Internal investigations from Nikola’s safety and engineering teams indicate a single supplier component within the battery pack as the likely source of the coolant leak and efforts are underway to provide a field remedy in the coming weeks, Nikola officials said. Tre BEV trucks may remain in operation, but for optimal performance and safety, the Nikola team encourages all customers and dealers to immediately take the following actions: Place the Main Battery Disconnect (MBD) switch into the “ON” position at all times to enable real-time vehicle monitoring and safety systems operation. Consider parking trucks outside to allow for over-the-air updates and better connectivity with Fleet Command, Nikola’s truck monitoring system. “The company’s software systems are being used in real-time to monitor trucks in the field closely and continually assess risks,” according to the news release. “Thus far, only two battery packs have experienced a thermal event, out of more than 3,100 packs on trucks produced to date (less than 0.07%).” Additional information, updates and required customer actions will be announced in the coming weeks. “At Nikola we take safety very seriously,” said Steve Girsky, Nikola’s CEO. “We stated from the beginning that as soon as our investigations were concluded we would provide an update, and we will continue our transparency as we learn more.” The company’s initial statement on June 23 alluded to foul play as a possible cause of the incident, based on video footage showing a vehicle parked next to the impacted trucks and quickly pulling away after a bright flash and the commencement of the fire. Extensive internal and third party-led hypothesis testing, employee and contractor interviews, and hours of video footage review has since suggested foul play or other external factors were unlikely to have caused the incident.

Trucking industry forecasts move higher

COLUMBUS, Ind. – Following on the heels of rising economic expectations, ACT Research’s forecasts for Classes 5-7, Class 8 and trailer output in 2023 and 2024 move higher again this month, as published in the latest release of the North American Commercial Vehicle OUTLOOK. Expectations for economic growth in 2023 have improved, boosting economic support for a shallower Class 8 demand trough in 2024, teeing the industry up for even stronger demand into 2025. “With the economy gathering momentum into the second half of 2023, and with supporting backlogs in place, the risk to build rates into year-end is now essentially in the rearview,” according to Kenny Vieth, ACT’s president and senior analyst. “While the 2024 forecasts have risen, they continue to anticipate slowing into next year, as pent-up demand for the Class 8 and trailer markets will be largely consumed by the end of this year amid strong fleet growth in the weak 2023 freight demand environment.” Vieth noted that “an improving economic outlook is not a (remedy) to cure the freight industry’s sloshy capacity situation.” A less-bad freight market in 2023 and rising 2024 economic expectations are at least helping to boost one side of the supply-demand imbalance with which truck and trailer buyers are currently wrestling, he said. Adding even more new trucks into an already overcapacitized market risks keeping capacity looser for longer.

5 killed when RV blows tire, crashes head-on into tractor-trailer in Pennsylvania

CHAMBERSBURG, Pa. — A recreational vehicle blew a tire on an interstate highway in Pennsylvania, crossed the median and collided head-on with a tractor-trailer, killing four people in the RV and the truck driver, authorities said. The crash occurred around 8:50 p.m. Wednesday on northbound Interstate 81 near Chambersburg, in south-central Pennsylvania, state police said. The RV, which was heading south and towing a trailer, crossed a grassy median after the tire blew and struck the truck, which was towing double trailers. Four people in the RV and the truck driver were all pronounced dead at the scene, and no other injuries were reported. Those killed in the RV were identified as Donald Molander, Kimberly Molander, Miranda Molander and Dane Molander, all of Middletown, Pennsylvania. The truck driver was identified as James Shade, of Martinsburg, West Virginia. The stretch of road was shut down for nearly 10 hours as authorities investigated, and residual delays continued Thursday morning.

Georgia aims for flagship status in number of CMV hydrogen fueling stations

ATLANTA — Georgia Gov. Brian Kemp is aiming for his state to lead the nation in the number of commercial vehicle hydrogen fueling stations. According to a news release, Kemp has instructed the Georgia Department of Transportation (GDOT) to begin working with private sector partners on how best to approach deployment of such stations. As a first step, GDOT has issued a Request for Information (RFI) to seek feedback from businesses who use hydrogen-powered vehicles. “As the number one state for business with world-class institutions of higher learning, Georgia is on the cutting-edge of innovation and the jobs of the future,” Kemp said. “But as I always say, we can’t rest on our laurels. I want to thank GDOT and our partners in the private sector who will ensure that when it comes to hydrogen energy, we will do as we have in so many other areas — lead.” The news release notes that “hydrogen-powered electric fuel cells are a promising technology for commercial vehicles like large trucks. Applications include enabling long travel distances with a fast refueling process for heavy vehicles, which deliver goods throughout the state. These and other efforts are in line with Governor Kemp’s goal of making Georgia the e-mobility capital.” During the RFI process and ensuing planning discussions, GDOT will consider the full range of potential demand for hydrogen for transportation uses. This will include the option to bring down the cost of hydrogen refueling station development in Georgia. Other aspects to be considered include possible locations for hydrogen refueling station deployment, with initial primary consideration given to areas adjacent to Georgia’s ports, according to the news release. “The market for hydrogen as a transportation fuel is in the early stages of development in a few regions of the U.S.,” according to the news release. “It has already deployed successfully in several other economically advanced countries. Currently, hydrogen’s predominant commercial use is in the industrial sector and for fertilizer and methanol production, with the U.S. market consuming approximately 10 million metric tons of hydrogen annually. The total current value of the hydrogen market in the U.S. is estimated to be approximately $17 billion. By 2050, the total estimated revenue is projected to be more than $130 billion per year, meeting 14% of U.S. energy demand.” Truck manufacturers are working to develop hydrogen technology and improve hydrogen-powered vehicles. PACCAR and Toyota Motor North America Inc. (TMNA) recently announced plans to develop and produce zero emissions, hydrogen fuel cell electric (FCEV) Kenworth and Peterbilt trucks powered by Toyota’s next-generation hydrogen fuel cell modules. And Hyundai Motor Company has introduced a new Class 8 hydrogen fuel cell electric tractor for use in North America as part of the company’s initiative to move toward alternative energy sources for its vehicles. A recent North American Council for Freight Efficiency report found that hydrogen may be the harbinger of a new green industrial revolution, or just the progression from one fossil fuel-based energy carrier to another with greater emphasis on reducing emissions. Either way, the report notes, hydrogen will be a factor in future long-distance freight hauling in combination with battery electric vehicles for shorter range operations. The Trucker Staff contributed to this report.

Truckstop: Total spot rates rise for 1st time since May

BLOOMINGTON, Ind. — Fueled by solid gains in the van segments, the total broker-posted spot rate in the Truckstop system rose for the first time in 10 weeks during the week ended August 4 (week 31). After a tiny increase in the prior week, rates for flatbed equipment returned to their downward trend, although the decline was barely larger than the previous week’s increase. Spot volume’s modest growth was the strongest since April in a week not distorted by a holiday rebound or the International Roadcheck event. Loads available Total load activity rose 4% after easing 1% in the previous week. Volume was about 25% below the same week last year, which is the least negative year-over-year comparison in more than a year. Comparisons year-over-year going forward will be versus a market that had basically fully normalized from the pandemic-era stress. Load postings in the latest week were about 23% below the five-year average. Volume was higher week over week in all regions except the West Coast. Truck postings fell 5.6%, and the Market Demand Index – the ratio of loads to trucks – rose to its highest level since late June. Total rates The total broker-posted rate increased 3.4 cents after a decline of a fraction of a cent in the prior week. Total market rates had fallen for nine straight weeks. Rates were nearly 16% below the same 2022 week, which is the least negative year-over-year comparison since late last year. Rates were nearly 5% below the five-year average. The largest rate increase was for refrigerated equipment, so there is no indication that Yellow’s operational shutdown at the beginning of last week had any significant effect on the spot market. Nor would we necessarily expect a disruption in LTL service to have affected a spot market that is principally focused on truckload shipments. Higher fuel prices might have factored into higher rates, however. The national average price of diesel had risen 32 cents a gallon in the two weeks heading into last week’s market. Dry van Dry van spot rates rose more than 4 cents after easing just three-tenths of a cent in the previous week. Dry van rates, which had been down for the prior four weeks, were nearly 15% below the same week last year and about 10% below the five-year average. The year-over-year comparison in rates was the least negative since August of last year. Dry van loads ticked up 1.1% after increasing more than 2% in the prior week. A solid gain in the Midwest offset declines on the West Coast and South Central region. Volume was nearly 20% below the same 2022 week and about 16% below the five-year average. The year-over-year comparison was the least negative in more than a year. Reefer Refrigerated spot rates jumped more than 11 cents after rising nearly 4 cents in the previous week. Rates were about 11% below the same 2022 week for the least negative year-over-year comparison since June 2022. Refrigerated rates were nearly 6% below the five-year average. Refrigerated loads rose 14.4% after increasing about 3% in the previous week. Loads were up in all regions, ranging from nearly 4% higher in the South Central region to about 20% in the Midwest. Volume was about 10% below the same week last year and about 8% below the five-year average for the week. The year-over-year comparison was the least negative since May 2022. Flatbed  Flatbed spot rates declined 1 cent after ticking up less than a cent in the prior week. Rates have fallen in eight of the past 10 weeks. Flatbed rates were nearly 19% below the same 2022 week and more than 3% below the five-year average. Flatbed loads increased 2.7% after falling 5.8% in the previous week. Loads were down sharply on the West Coast but up in all other regions. Volume was nearly 37% below the same week last year and almost 39% below the five-year average for the week.

Diesel fuel prices continue to climb

LITTLE ROCK, Ark. — Average U.S. diesel prices are rising sharply. According to the Energy Information Administration (EIA), the average price as of Aug. 7 is $4.239 per gallon, up from $4.127 on July 31 and $3.905 on July 24. Economists say a combination of sweltering temperatures, rising oil prices and falling production are to blame. The cheapest average price per gallon for diesel fuel is along the Gulf Coast at $3.960 per gallon, EIA statistics show. The highest price is in California at $5.339 per gallon. In the Midwest, expect to pay an average of $4.195 per gallon, while along the East Coast, the average price is sitting at $4.248 per gallon as of Aug. 7.

Trucking giant Yellow Corp. declares bankruptcy after years of financial struggles

NEW YORK  — Trucking company Yellow Corp. has declared bankruptcy after years of financial struggles and growing debt, marking a significant shift for the U.S. transportation industry and shippers nationwide. The Chapter 11 bankruptcy, which was filed Sunday, comes just three years after Yellow received $700 million in pandemic-era loans from the federal government. While a Chapter 11 filing is used to restructure debt while operations continue, Yellow, like other trucking companies in recent years, will liquidate and the U.S. will join other creditors unlikely to recover funds extended to the company. Yellow fell into severe financial stress after a long stretch of poor management and strategic decisions dating back decades. In 2019 two trucking companies, Celadon and New England Motor Freight, file for bankruptcy protection and liquidated. Former Yellow customers and shippers may face higher prices as they take their business to competitors, including FedEx or ABF Freight, experts say — noting Yellow historically offered the cheapest price points in the industry. “It is with profound disappointment that Yellow announces that it is closing after nearly 100 years in business,” CEO Darren Hawkins said in a news release late Sunday. “For generations, Yellow provided hundreds of thousands of Americans with solid, good-paying jobs and fulfilling careers.” Yellow, formerly known as YRC Worldwide Inc., is one of the nation’s largest less-than-truckload carriers. The Nashville, Tennessee-based company had 30,000 employees across the country. The Teamsters, which represented Yellow’s 22,000 unionized workers, said last week that the company gave legal notice for a bankruptcy filing and shut down operations in late July following layoffs of hundreds of nonunion employees. Teamsters general president Sean O’Brien called the news “unfortunate but not surprising” in a July 31 statement — pointing to the financial chaos at Yellow. “This is a sad day for workers and the American freight industry,” he said. The Wall Street Journal and FreightWaves reported in late July that the bankruptcy was coming — noting that customers had already started to leave the carrier in large numbers and that the company had stopped freight pickups. Those reports arrived just days after Yellow averted a strike from the Teamsters amid heated contract negotiations. A pension fund agreed to extend health benefits for workers at two Yellow Corp. operating companies, avoiding a planned walkout — and giving Yellow “30 days to pay its bills,” notably a total of $50 million owed to the Central States Health and Welfare Fund. A Yellow spokesperson said Tuesday that the company previously request a short-term deferral of the pension contributions plus interest, but the funds denied that request. Yellow blamed the nine-month talks for the demise of the company, saying it was unable to institute a new business plan to modernize operations and make it more competitive during that time. The company said it has asked the U.S. Bankruptcy Court in Delaware for permission to make payments, including for employee wages and benefits, taxes and certain vendors essential to its businesses. Yellow has racked up hefty bills over the years. As of late March, Yellow had an outstanding debt of about $1.5 billion. Of that, $729.2 million was owed to the federal government. In 2020, under the Trump administration, the Treasury Department granted the company a $700 million pandemic-era loan on national security grounds. The Teamsters supported the $700 million loan when it was first announced. A congressional probe recently concluded that the Treasury and Defense departments “made missteps” in the decision and noted that Yellow’s “precarious financial position at the time of the loan, and continued struggles, expose taxpayers to a significant risk of loss.” As of June 30, Yellow had paid $67 million in cash interest on the loan, which is due in 2024, the company said. The financial chaos at Yellow “is probably two decades in the making,” Stifel research director Bruce Chan said ahead of the filing late last month, pointing to poor management and strategic decisions dating back to the early 2000s. “At this point, after each party has bailed them out so many times, there is a limited appetite to do that anymore.”

DAT Truckload Volume Index: June signals that spot rates have hit bottom

BEAVERTON, Ore., — Truckload freight volumes and spot rates held firm in June while contract rates fell to their lowest points in almost two years, according to DAT Freight & Analytics. “The gap between spot and contract rates was the narrowest since April 2022,” said Ken Adamo, DAT chief of analytics. “Spot rates for van and refrigerated freight increased for the third straight month, and volumes were almost unchanged from May. These are signs that spot truckload prices have reached the bottom of the current freight cycle.” The national benchmark contract rate for dry van freight has not increased for 12 consecutive months. At $2.58 per mile, the rate was 70 cents lower than a year ago. Volumes held steady in June The DAT Truckload Volume Index (TVI), an indicator of loads moved during a given month, decreased marginally for van and refrigerated (“reefer”) freight and increased slightly for flatbed loads: Van TVI: 230, down 1% from May. Reefer TVI: 167, down 3% from May. Flatbed TVI: 267, up 2% from May. Van, reefer rates improved On the spot market, the national benchmark rates for van and reefer freight rose while the flatbed rate declined compared to May: Spot van rate: $2.08 per mile, up 3 cents, the first increase in five months. Spot reefer rate: $2.47 a mile, up 3 cents. Spot flatbed rate: $2.61 a mile, down 4 cents. Van line haul rates averaged $1.65 a mile, up 4 cents compared to May, while reefer line haul rates averaged $2.01 a mile, up 5 cents. The flatbed line haul rate dipped 2 cents to $2.10 a mile. Line haul rates subtract an amount equal to an average fuel surcharge. Lower diesel prices in June pushed fuel surcharges to 17-month lows, averaging 43 cents a mile for van freight, 46 cents for reefers, and 51 cents for flatbeds. Load-to-truck ratios reflected seasonal demand Load-to-truck ratios reflect truckload supply and demand on the DAT One marketplace: The national average van load-to-truck ratio was 2.6, meaning there were 2.6 loads for every van posted to the DAT One. marketplace last month. The ratio was 2.5 in May and 3.9 in June 2022. The reefer ratio averaged 3.8, up from 3.6 in May and down from 7.0 in June 2022. The flatbed ratio fell to 9.7, down from 11.7 in May and 37.6 in June 2022. “Demand for truckload services typically slows at this time of year, but this could change quickly given the threat of strikes in the parcel and less-than-truckload sectors,” Adamo said. “Shippers are putting contingency plans in place and would look to freight brokers and carriers on the spot market to keep their line haul operations moving. Demand for trucks would jump, especially around Louisville, Memphis, Indianapolis, Dallas and other major parcel hubs.”

July Class 8 truck orders see July jump

COLUMBUS, Ind. — July preliminary North American Class 8 net orders were 16,000, jumping 45% year-over-year, while Classes 5-7 net orders were 16,600, up 21% year-over-year, according to ACT Research. Complete industry data for July, including final order numbers, will be published by ACT Research in mid-August. “As represented by seasonal factors, this is the time of the year when expectations for orders are low. For both the MD Classes 5-7 and HD Class 8 markets, July is the traditional low-water mark for monthly order placements,” shared Kenny Vieth, ACT’s president and senior analyst. “That low expectation is reconfirmed this year as both MD and HD 2023 backlogs, as measured by BL/BU ratios, are essentially full. In addition to already filled backlogs constraining order flows, 2024 orderboards are not yet, or just barely open, making the opportunity for bigger numbers elusive. All that said, July order activity was largely in line with or slightly above ytd trends.” On a seasonally adjusted basis, Class 8 orders were up 5.5% month-over-month at 20,700 units, and Classes 5-7 orders were up 1% month-over-month at 19,300 units.

Ohio police chief says K-9 handler was deceptive during probe of dog attack on surrendering trucker

COLUMBUS, Ohio — An Ohio police agency shared records Tuesday that showed an officer who released his police dog on a surrendering truck driver was repeatedly told not to keep talking about the incident before he was fired last week. Records provided to The Associated Press by the Circleville Police Department indicated Officer Ryan Speakman met twice with Chief Shawn Baer to discuss reports of Speakman crying, talking to employees, families and K-9 trainers and exhibiting stress-related behavior after the July 4 incident. The Circleville Police Department fired Officer Speakman last week, alleging that he “did not meet the standards and expectations we hold for our police officers.” Late last month, Baer wrote that Speakman had “released confidential information” and was deceptive when Baer sought information from him. A representative for Speakman’s union, the Ohio Patrolman’s Benevolent Association, said it would return a call by The Associated Press later. The organization filed a grievance last week on his behalf arguing he had been fired without just cause. During a July 19 meeting, Baer wrote, he met with Speakman over reports that he had been crying and speaking to colleagues about being stressed over the incident. Baer said he told Speakman that his conduct was not beneficial to himself or the agency, according to the documents the department provided. The two met again on July 20, following reports Speakman was still speaking with colleagues about the matter. Baer asked Speakman for a list of people he spoke to about the situation. After receiving the list, Speakman admitted to also sharing details of the incident with members of his family. According to the report, Speakman reportedly implored Baer to not “take his best friend from him,” meaning the police dog involved in the attack. The agency records also state Speakman provided a two-page list to investigators of the people outside the police department with whom he spoke following the attack. His firing came one day after the department said he had been placed on paid administrative leave, a standard practice during use-of-force investigations. The town’s civilian police review board found Speakman did not violate department policy when he deployed the dog, police said last week, although the review board lacks authority to recommend discipline. Speakman, who joined the Circleville department in February 2020, deployed his police dog following a lengthy pursuit involving the Ohio State Highway Patrol. Troopers tried to stop a truck that was missing a mudflap and failed to halt for an inspection, according to a highway patrol report. Circleville Police was asked to assist. Jadarrius Rose initially refused to get out of the truck and later defied instructions to get on the ground, according to the incident report and the body cam video. Rose eventually got on his knees and raised his hands in the air. The body camera video shows Speakman holding back the dog, and a trooper can be heard off-camera repeatedly yelling, “Do not release the dog with his hands up!” However, Speakman deployed the dog and it can be seen in the video attacking Rose, who said, “Get it off! Please! Please!” Rose was treated at a hospital for dog bites. He was charged with failure to comply, and hasn’t responded to an email sent last week seeking comment. Florida-based attorney Benjamin Crump announced last week that he would represent Rose. Crump did not immediately respond to a request for comment. It’s not clear why Rose refused to stop for police. Rose is Black, and Speakman is white. Rose told The Columbus Dispatch that he couldn’t talk about why he didn’t stop. But when asked about the video, told the newspaper: “I’m just glad that it was recorded. What you saw is what, pretty much, happened.” Audio recordings of 911 calls show Rose told emergency dispatchers that the officers pursuing him were “trying to kill” him and he didn’t feel safe pulling over. He also said he was confused about why the officers were trying to stop him and why they had their guns drawn after he briefly stopped the truck before driving away.

Diesel prices on the rise

LITTLE ROCK, Ark. — Average diesel prices are up once again. According to the Energy Information Administration, the price as of July 31 sits at $3.757 per gallon, up from $3.596 per gallon on July 24 and $3.559 on July 17. Oil inventories are beginning to fall in some regions as demand outpaces supply constrained by deep production cuts from OPEC leader Saudi Arabia, providing support for prices which are expected to rise in coming months. JP Morgan analysts said this month that oil inventories — which include crude and fuel products — now play a bigger role in determining oil prices than the U.S. dollar because Western sanctions on Russia have accelerated oil trading in other currencies. “We expect stocks to draw relatively aggressively in July, and by the end of August, we should be through the stock builds that we saw in the first half of the year,” said Christopher Haines, an analyst at Energy Aspects. “We are on the cusp of supply tightness. Saudi cuts are essentially accelerating the timeline.” Both the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) expect oil demand to outpace supply this year, leading to overall inventory draws to the tune of 400,000 to 500,000 barrels per day (bpd), mostly accounted for by the second half of the year. Although global oil inventories increased in May to their highest since September 2021, according to the IEA, driven by a substantial rise in non-OECD countries, analysts say signs of tightness are appearing, in the United States in particular. Stock declines have been geographically uneven so far, with inventory falls in the United States and Europe offset by increases in China and Japan. The declines have also been skewed more towards fuel than crude, although the supply of sour crude, typically priced lower than sweet crude, has tightened because of the cuts introduced by OPEC and its allies. “It appears that the voluntary cuts announced by eight OPEC+ countries in April plus the additional 1 million bpd of unilateral Saudi cut that just started in July are having the desired effect, with sour barrels becoming more scarce,” the JP Morgan analysts said. Refineries running harder to meet rising summer demand as people drive and fly more partly explains the fall in inventories, the bank said, along with a drop in Russian oil exports this month. The bank expects benchmark Brent prices, which traded around a three-month high of $84 a barrel this week, to rise to $86 a barrel by the end of the third quarter, before easing in the fourth quarter as inventories start to build again. UBS said it expected a rise to $85-$90 a barrel over coming months. Crude stocks at the Cushing storage hub in Oklahoma fell by 2.9 million barrels in the week to July 14, the steepest draw in more than a year and a half according to the U.S. Energy Information Administration (EIA), and shed a further 2.6 million barrels the following week, leaving them well below their five-year average. For fuel, data from consultancy FGE Energy on key hubs in the United States, northern Europe, Japan, Singapore and Fujairah in the United Arab Emirates, shows that overall stocks have been drawing aggressively so far this month, both onshore and at sea. Weekly stocks of diesel, jet fuel and fuel oil in the five regions are also currently below their five-year averages. U.S. gasoline stocks of 217.6 million barrels are at their lowest level for the time of year since 2015, according to EIA data, and 5 million barrels, or 5%, lower than the prior 10-year seasonal average. BIG CRUDE BUILDS IN ASIA Big crude builds in China and Japan have so far offset a drop in the Mideast Gulf, meaning there is no sign yet of an overall global onshore crude inventory drawdown, according to satellite analytics firm Kayrros. In fact, data from the firm shows that crude inventories in the week to July 20 reached a two-year high, with the world adding 200 million barrels into storage since Russia’s invasion of Ukraine in February 2022. This amounts to roughly 400,000 bpd over that time period, the daily oil consumption of Portugal. China accounts for the lion’s share of the gains, adding 700,000 bpd since mid-April, which Kayrros co-founder Antoine Halff noted was commercial rather than strategic. He attributed the build to weak Chinese industrial activity and the import of discounted crude from Russia, Iran and Venezuela. Crude inventories in Japan have added 25 million barrels, or 8%, since April to stand at their highest in nearly two years, according to Kayrros. China’s diesel inventories also rose sharply over Nov. 2022-Feb. 2023 and have remained at elevated levels since. MIDEAST GULF DRAWS Crude stocks in the Mideast Gulf and North Africa region have declined by 5 million barrels overall so far this year, according to estimates by Macquarie, although OPEC members in the region have drawn 10 million barrels. “I think Iranian barrels, both floating and onshore, had been making their way through different parts of Asia…and then ending up in China,” said Macquarie analyst Vikas Dwivedi about what could be driving the draw. Like JP Morgan, Dwivedi believes inventories will fall in coming weeks before starting to build again in the fourth quarter as refineries slow throughput and higher oil prices drive some OPEC+ members to exceed their production quota to maximise revenue. “We’re bullish right now. This is the first time we’ve been bullish for a long, long time. Over about 18 months we’ve been bearish,” he said. The Trucker Staff contributed to this report.