Business Archives

OOIDA to FMCSA about broker transparency: ‘Deck is stacked’ against small-business truckers

Dana Guthrie - February 3, 2025

WASHINGTON — In a detailed comment on the Federal Motor Carrier Association’s (FMCSA) proposed rulemaking on broker transparency submitted Jan. 21, the Owner-Operator Independent Drivers Association (OOIDA) urged the agency to take action and help protect the livelihood of small carriers and owner-operators. “The deck is stacked against carriers in numerous ways, yet truckers persevere and deliver for the American people. It’s time to level the playing field,” said Todd Spencer, president of OOIDA. “It’s time to restore fairness in the freight market. It’s time to give small-business truckers a leg up. It’s time for broker transparency.” Following are a few points from OOIDA’s comments: 48-hour deadline The rulemaking would amend FMCSA property carrier broker rules in response to petitions for rulemaking from OOIDA and the Small Business in Transportation Coalition (SBTC). OOIDA requests that FMCSA require property brokers to provide an electronic copy of each transaction record automatically within 48 hours after the contractual service has been completed and prohibit explicitly brokers from including any provision in their contracts that requires a motor carrier to waive its rights to access the transaction records. SBTC requests that FMCSA prohibit brokers from coercing or otherwise requiring parties to brokers’ transactions to waive their right to review the record of the transaction as a condition for doing business. SBTC also requests that FMCSA adopt regulatory language indicating that brokers’ contracts may not include a stipulation or clause exempting the broker from having to comply with the transparency requirement. Background For decades, small-business truckers have expressed frustration that 371.3 regulations designed to provide transparency are routinely evaded by brokers or simply not enforced by FMCSA, according to OOIDA. In May 2020, OOIDA submitted a Petition for Rulemaking with FMCSA to improve broker transparency on two fronts: Require brokers to automatically provide an electronic copy of each transaction record within 48 hours after the contractual service has been completed. Explicitly prohibit brokers from including any provision in their contracts that requires a carrier to waive their rights to access the transaction records as required by 49 CFR §371.3. “Over the next four years, OOIDA and its membership submitted hundreds of comments to FMCSA, conducted meetings with DOT/lawmakers, and participated in public listening sessions supporting the push for transparency,” OOIDA said. “These efforts culminated in the agency publishing the Notice of Proposed Rulemaking (NPRM) last November.” Demand for Broker Transparency “We agree with (FMCSA’s) assertion that, ‘broker transparency is intended to enable efficient outcomes in the transportation industry by providing material information necessary for the transacting parties to make informed business decisions,’” OOIDA said. “Over the last few years, motor carriers have been increasingly victimized by freight fraud, unpaid claims, dubious charges, unpaid loads, double brokered loads, and load phishing schemes. The absence of legitimate broker transparency limits carriers’ ability to combat these problems.” Provisions OOIDA is requesting a number of provisions to improve broker transparency. Provision 1 – Brokers Must Keep Records in an Electronic Format. We completely endorse this provision. We agree with FMCSA that requiring records in an electronic format would eliminate this loophole brokers utilize to conceal transaction information from motor carriers. Provision 2 – Revisions to the Required Contents of Brokers’ Records. This provision can help remedy a broken claims process that costs carriers both time and lost earnings. We support a comprehensive record so as much information as possible is available to all parties when problems with a shipment arise or the compensation amount differs from the contractual amount. These records will assist disputes get resolved fairly and efficiently. Provision 3 – Brokers Must Provide Records Upon Request. We applaud FMCSA for amending 371.3 language that clarifies and strengthens the regulatory obligation for brokers to provide transaction records. The proposed language leaves no question about what brokers must provide upon request. We are less sure that the amended language will dissuade brokers from using contractual waivers to evade transparency rights. We disagree with FMCSA’s reasoning for not including an explicit ban on waivers of 371.3 requirements. If brokers can continue manipulating these types of waivers, then that defeats the well established purpose of the NPRM. We urge the Agency to reconsider permitting contractual waivers that undermine broker transparency as the rulemaking process moves forward. FMCSA should not allow stakeholders to waive compliance provisions of federal motor carrier safety regulations. Provision 4 – Records Must Be Provided Within 48 Hours of Request. The proposed window of 48 hours to provide requested records would benefit motor carriers by ensuring access to transaction information in a reasonable timeframe. We seek clarification about when this 48-hour period would officially begin following a request. As a matter of consistency, FMCSA must alter the proposed 371.3(c) regulatory. Automatic Disclosure and Retaliation “Our 2020 petition sought a provision making disclosure of the records automatic,” OOIDA said. “We believe automatic disclosure is necessary to prevent selective retaliation. We disagree with the Agency’s position that an automatic disclosure provision is unnecessary and could be excessively burdensome to brokers. Brokers are increasingly employing monitoring and vetting services to contract with carriers. These companies use “automated websites” to “research, qualify and monitor the insurance, operating authority and safety ratings of owner-operators and trucking companies. Automatic disclosure of records will close the asymmetry of information gap.” Compliance and Enforcement The Notice of Proposed Rulemaking (NPRM) does not propose stricter penalties than are currently approved by regulations,” OOIDA said. “Nor does FMCSA sufficiently address how they will achieve better enforcement and compliance under these provisions. A final rulemaking must address these critical details. FMCSA must levy and enforce a structured fine system for 371.3 violations that would penalize noncompliance with broker regulations. The Agency should suspend or revoke the authority of unscrupulous brokers that exhibit a pattern of noncompliance. FMCSA must create an enforcement mechanism where it issues an order to a broker that violates the regulations. FMCSA’s order must assess a civil penalty of $500 per day for each violation where a broker fails and/or refuses to provide a complete response to a party’s request for documentation in the time and manner required by § 371.3.” According to a press statement, OOIDA plans to coordinate with the U.S. Department of Transportation’s new leadership team and lawmakers to ensure that broker transparency remains a priority for the Trump administration and the 119th Congress.

Trucking industry reacts to Trump tariffs, agriculture and middle class to be hit hardest

Dana Guthrie - February 3, 2025

WASHINGTON, LANSING, Mich. — With President Donald Trump already enacting tariffs, the trucking industry is responding. “As the trucking industry recovers from a years-long freight recession marked by low freight volumes, depressed rates, and rising operational costs, we have concern that tariffs could decrease freight volumes and increase costs for motor carriers at a time when the industry is just beginning to recover,” said Chris Spear, American Trucking Associations president and CEO. “A 25% tariff levied on Mexico could see the price of a new tractor increase by as much as $35,000. That is cost-prohibitive for many small carriers, and for larger fleets, it would add tens of millions of dollars in annual operating costs.” Spear noted that the United States-Mexico-Canada Agreement was a major achievement of President Trump’s first administration. “The American Trucking Associations worked hand in glove with all three countries to reach this historic deal, and we look forward to doing so again during the USMCA review,” Spear said. Agriculture Unfairly Targeted Michigan Department of Agriculture and Rural Development (MDARD) Director Tim Boring is concerned about the affect tariffs could have. “We’ve had extensive conversations with farmers and other stakeholders, and I echo their concerns about these imposed tariffs,” Boring said. “While there are still a lot of unknowns, it’s important to remember two things: Canada and Mexico are our biggest export destinations, and the last time this happened retaliatory tariffs specifically targeted agriculture. We have to expect tariffs will immediately threaten agriculture jobs, our rural economies and ultimately what it costs to put food on the table.” Jobs at Risk Michigan Governor Gretchen Whitmer has also weighed on Trump tariffs. Whitmer noted tariffs will raise costs on goods and services critical to Michiganders, like groceries, home heating, and cars, and put more than a million Michigan jobs at risk. “Michiganders are already struggling with high costs—the last thing they need is for those costs to increase even more,” Whitmer said. “A 25 percent tariff will hurt American auto workers and consumers, raise prices on cars, groceries, and energy for working families and put countless jobs at risk. Trump’s middle-class tax hike will cripple our economy and hit working-class, blue-collar families especially hard.” Trucking Industry Could Suffer “Trucks move 85% of goods that cross our southern border and 67% of goods that cross our northern border, supporting hundreds of thousands of trucking jobs in the U.S. The trucking industry understands the crises motivating these tariff proposals, which is why we have been a leader in efforts to fight drug and human trafficking.” Spear said. “We firmly support policies that will secure our borders and protect legitimate trade, but we also recognize the unintended consequences that substantial tariffs could have over the long-term, including higher consumer costs on the wide range of goods that cross our borders by truck, including food, automobiles, televisions, computers, furniture, and other key manufacturing inputs.” Middle Class Families to be Hit Hardest “Because companies pass tariff costs on to the consumers, Trump’s middle-class tax hike will mean Michigan families pay more to heat their homes as they face below freezing temperatures, fill their gas tanks, and get affordable housing at a time when inflation is already high,” Whitmer said. “It will harm our auto industry, driving up the cost of cars and slowing production lines.” Whitmer added that she is proud of the progress Michigan has made to bring supply chains home, grow auto manufacturing, and ensure Michigan’s talented workers build the future of cars and components. “I’ll be glad to work with him, and anyone, to protect Michigan’s auto manufacturing, lower costs, and fight for Michigan’s working families,” Whitmer said. Mexico Responds Emarketer Principle Analyst, Latin America, Matteo Ceurvels has also provided his thoughts. “Mexico’s economy is entering uncharted territory as tensions escalate with its largest trading partner,” Ceurvels said. “The US’ 25% tariff on Mexican imports threatens to upend three decades of trade integration, dampening retail growth and adding pressure on businesses. We now expect Mexico’s retail sales to grow 3.3% this year to $404.83 billion—down from our previous forecast of 4.5%. However, the impact on ecommerce sales will be short-lived, as private companies adapt to the new realities of the Trump 2.0 administration. For Claudia Sheinbaum, managing this economic rift will be one of the biggest tests of her presidency, as she balances the interests of Mexico’s key industries and consumers.”

Schneider National ends Q4 on a positive note

Dana Guthrie - February 1, 2025

GREEN BAY, Wis. — Schneider National Inc. is announcing its financials for the fourth quarter of 2024. “In the second quarter of 2024, signs of seasonality returned to the freight market and were even more evident in the fourth quarter,” said Mark Rourke, president and CEO. “The year ended positively as carriers continued to exit the market and demand aligned more closely to seasonal expectations.” Year-Over-Year Improvement “The fourth quarter reflected the cumulative effects of actions we have taken to expand margins, which resulted in year over year earnings improvement across all our reportable segments for the first time since the second quarter of 2022,” Rourke said. “Intermodal achieved its second consecutive quarter of year over year earnings growth with continued improvement in volume and revenue per order. Our Dedicated business delivered resilient results through organic fleet growth and continues to have a strong new business pipeline.” Cowan Acquisition “In December, we successfully completed our third Dedicated acquisition in as many years,” Rourke said. “Bringing Cowan Systems into our family of companies aligns with our long-term strategic vision to provide customer-centric dedicated solutions as the cornerstone of our Truckload segment and broaden our presence to provide greater value to our customers. As of the end of the year, with the Cowan acquisition, Dedicated represents 70% of our Truckload segment.” Enterprise Results Enterprise income from operations for the fourth quarter of 2024 was $42.4 million, an increase of $11.1 million, or 35%, compared to the same quarter in 2023. Diluted earnings per share in the fourth quarter of 2024 was $0.18 compared to $0.15 in the prior year. Adjusted diluted earnings per share was $0.20 in the fourth quarter of 2024 compared to $0.16 in the same period a year ago. Compared to 2023, non-GAAP items in the fourth quarter included $1.4 million of transaction costs related to the acquisition of Cowan Systems. In 2024, Schneider achieved significant reductions in our DOT reportable accidents, attaining an all-time low accident frequency. At the same time, the industry overall has seen a surge in litigious activity, including litigation funding, nuclear verdicts, and inflated settlements which has increased the cost and volatility of claims reserves, as well as insurance premiums. Refinement of reserve estimates, primarily relating to three accident claims from prior years, resulted in approximately $7.0 million of expense in the quarter, a $0.03 earnings per share impact. Cash Flow and Capitalization At December 31, 2024, the Company had $526.8 million outstanding on total debt and finance lease obligations compared to $302.1 million as of December 31, 2023. The Company had cash and cash equivalents of $117.6 million and $102.4 million as of December 31, 2024, and December 31, 2023, respectively. The Company’s cash provided by operating activities for 2024 increased slightly year over year. Net capital expenditures were lower compared to the same period a year ago primarily due to reduced purchases of transportation equipment. Despite freight market conditions, we have generated strong free cash flow. For 2024, free cash flow increased $199.6 million compared to the same period in 2023. In February 2023, the Company announced the approval of a $150.0 million stock repurchase program. As of December 31, 2024, the Company had repurchased a total of 3.8 million Class B shares for a total of $95.5 million under the program. In October 2024, the Company’s Board of Directors declared a $0.095 dividend payable to shareholders of record as of December 13, 2024, which was paid on January 8, 2025. On January 27, 2025, the Company’s Board of Directors declared a $0.095 dividend payable to shareholders of record as of March 14, 2025, expected to be paid on April 9, 2025. As of December 31, 2024, the Company had returned $66.6 million in the form of dividends to shareholders year to date. Truckload Truckload revenues (excluding fuel surcharge) for the fourth quarter of 2024 were $560.1 million, an increase of $9.4 million, or 2%, compared to the same quarter in 2023 due to the acquisition of Cowan Systems, Dedicated organic new business growth, and a higher Network rate per total mile, partially offset by lower Network volumes. Dedicated average truck count increased 8% year over year due to the Cowan Systems acquisition and new business growth, while Network average truck count was down 13%. Truckload revenue per truck per week was $4,100, an increase compared to the same quarter in 2023, as both Network and Dedicated revenue per truck per week improved year over year. Truckload income from operations was $19.8 million in the fourth quarter of 2024, an increase of $1.0 million, or 5%, compared to the same quarter in 2023 primarily due to Dedicated organic new business growth and the acquisition of Cowan Systems, partially offset by increased insurance expense. Operating ratio was 96.5% in the fourth quarter of 2024 compared to 96.6% in the fourth quarter of 2023. Intermodal Intermodal revenues (excluding fuel surcharge) for the fourth quarter of 2024 were $276.2 million, an increase of $15.6 million, or 6%, compared to the same quarter in 2023 primarily due to volume growth of 3% and higher revenue per order. Revenue per order was $2,536, an increase of $52, or 2% year over year, partially due to changes in freight mix which impacted length of haul. Intermodal income from operations for the fourth quarter of 2024 was $17.2 million, an increase of $11.0 million, or 177%, compared to the same quarter in 2023. In addition to the volume growth and increased revenue per order mentioned above, internal cost actions, network optimization, and improved dray productivity contributed to the increase in earnings. Intermodal operating ratio was 93.8% compared to 97.6% in the same quarter in 2023, an improvement of 380 basis points. Logistics Logistics revenues (excluding fuel surcharge) for the fourth quarter of 2024 were $323.9 million, a decrease of $18.2 million, or 5%, compared to the same quarter in 2023 primarily due to lower brokerage revenue per order and volumes, which were down 6% and 5%, respectively, year over year, partially offset by the Cowan Systems acquisition. Income from logistics operations for the fourth quarter of 2024 was $8.5 million, an increase of $2.4 million, or 39%, compared to the same quarter in 2023 primarily due to higher brokerage net revenue per order and the Cowan Systems acquisition, partially offset by lower brokerage volume noted above. Logistics operating ratio was 97.4% in the fourth quarter of 2024, compared to 98.2% in the fourth quarter of 2023, an improvement of 80 basis points. “I would like to recognize our associates, particularly our professional drivers, for their unwavering dedication and commitment throughout the year. I would also like to thank our customers and stakeholders for their support,” Rourke said. “As we look ahead to 2025 and what we believe will be a year of improving freight market conditions, we expect to build on the momentum of the fourth quarter with a focus on restoring margins and positioning the business for through-cycle growth.”

BlueGrace Logistics names Elisabeth Miller Director of Parcel

Dana Guthrie - January 31, 2025

TAMPA, Fla. — BlueGrace Logistics (BlueGrace) is announcing the appointment of Elisabeth Miller as Director of Parcel. “We understand the increasing need for multimodal logistics solutions in today’s fast-paced market,” said Jason Lockard, senior vice president of managed logistics. “Elisabeth’s leadership ensures we continue delivering freight services that optimize costs and efficiencies for our clients.” Director of Parcel Miller will lead the company’s established parcel services department, enhancing its capabilities and integration with existing Less-than-Truckload (LTL) and Truckload (TL) offerings. “Recognizing the growing demand for single-sourced managed transportation solutions, BlueGrace Logistics is reinforcing its commitment to innovation by bolstering its Parcel division,” BlueGrace said in a press release. “This department focuses on procurement, contract negotiation, systems integration, service audits, and business intelligence—all aimed at streamlining operations and delivering exceptional customer experiences.” Logistics Veteran Miller brings over 20 years of expertise in supply chain, logistics, and e-commerce. She has spearheaded TMS development, strategic pricing, and managed 3PL customers while developing parcel resale programs. Her experience includes enhancing CRM systems, expanding market reach, and improving customer engagement. Known for fostering innovation and building strategic partnerships, Miller will spearhead efforts to drive growth and enhance BlueGrace’s ongoing parcel operations. “Elisabeth’s strategic vision and extensive experience are invaluable as we strengthen our Parcel division,” said Bobby Harris, CEO. “By fully integrating parcel with LTL, truckload, and Managed Logistics, we can deliver even greater efficiency and cost savings for our customers. Elisabeth’s leadership ensures seamless, multimodal solutions for the evolving needs of the businesses we serve.” Under Miller’s direction, BlueGrace’s Parcel division will deepen partnerships with carriers, refine integration of BlueShip TMS and EVOS PlanTools, and perform thorough audits of service and invoicing. Enhanced business intelligence will empower clients with actionable insights for decision-making, underscoring BlueGrace’s commitment to be a trusted freight partner for businesses of all sizes, according to the release.

C H Robinson logs impressive year-over-year advances

Dana Guthrie - January 31, 2025

EDEN PRAIRIE, Minn. —  C.H. Robinson Worldwide is reporting significant year-over-year increase in profitability for Q4. According to a company press release, the increase was driven by disciplined execution, a focus on quality of volume and improvement in gross profit margin, productivity and operating leverage. “We’ve talked extensively over the past year about our new Robinson operating model and the disciplined execution that the model is enabling, as well as how we’re leveraging our industry leading talent and technology to raise the bar in logistics,” said Dave Bozeman, president and CEO. “The benefits of these efforts were never more evident than in the significant year-over-year improvement in our fourth quarter financial results.” Fourth Quarter Highlights Gross profits increased 10.4% to $672.9 million. Income from operations increased 71.1% to $183.8 million. Adjusted operating margin increased 940 basis points to 26.8% . Adjusted operating margin, excluding restructuring and loss on divestiture, increased 1,020 basis points to 26.9%. Diluted earnings per share (EPS) increased 369.2% to $1.22. Adjusted EPS increased 142.0% to $1.21. Cash generated by operations increased by $220.6 million to $267.9 million. “In what continues to be a historically prolonged freight recession, with market growth in 2024 that did not materialize as had been projected, the difference in our execution versus last year is stark,” Bozeman said. “Our people are embracing the discipline needed to generate higher highs and higher lows across market cycles, resulting in a higher quality of volume, greater productivity, and an expansion of our gross profit and operating profit margins.” Full-Year Key Metrics Gross profits increased 5.8% to $2.7 billion. Income from operations increased 30.0% to $669.1 million. Adjusted operating margin(1) increased 440 basis points to 24.2% . Adjusted operating margin, excluding restructuring and loss on divestiture, increased 630 basis points to 27.5%. Diluted EPS increased 41.9% to $3.86. Adjusted EPS(1)increased 36.7% to $4.51. Cash generated by operations decreased by $222.9 million to $509.1 million, due to an increase in net operating working capital related to higher ocean rates. Greater Value for Customers “In a trucking environment where the cost of purchased transportation increased in the fourth quarter due to a decline in industry capacity, our dynamic costing and pricing tools, our revenue management practices and our cost of hire advantage enabled us to provide greater value to our customers, and at the same time, improve our NAST gross profit margin both year-over-year and sequentially,” Bozeman said. Summary of Fourth Quarter of 2024 Results Compared to the Fourth Quarter of 2023 Total revenues decreased 0.9% to $4.2 billion, primarily driven by lower volume and pricing in truckload services, partially offset by higher pricing in our ocean services. Gross profits increased 10.4% to $672.9 million. Adjusted gross profits increased 10.7% to $684.6 million, primarily driven by higher adjusted gross profit per transaction in our truckload and ocean services. Operating expenses decreased 2.0% to $500.8 million. Personnel expenses decreased 2.1% to $354.4 million, primarily due to cost optimization efforts and productivity improvements, partially offset by higher variable compensation. Average employee headcount declined 9.5%. Other selling, general and administrative (“SG&A”) expensesdecreased 2.0% to $146.4 million, primarily due to a $12.6 million favorable adjustment to the loss on the planned divestiture of our Europe Surface Transportation business, which was partially offset by impairments related to reducing our facilities footprint. Income from operations totaled $183.8 million, up 71.1% due to both the increase in adjusted gross profit and decrease in operating expenses.Adjusted operating margin of 26.8% increased 940 basis points. Interest and other income/expense, net totaled $15.4 million of expense, consisting primarily of $18.8 million of interest expense, which decreased $2.8 million versus last year due to a lower average debt balance and lower variable interest rates, and a $3.3 million net gain from foreign currency revaluation and realized foreign currency gains and losses. The effective tax rate in the quarter was 11.4%, compared to 55.3% in the fourth quarter of 2023. The lower rate in the fourth quarter of 2024 was driven by the impact of non-recurring discrete items, higher U.S. tax credits, and increased tax benefit related to stock-based compensation, partially offset by lower foreign tax credits. Net income totaled $149.3 million, up 382.1% from a year ago. Diluted EPS of $1.22 increased 369.2%. Adjusted EPS of $1.21 increased 142.0%. Team Effort “As I reflect on the noteworthy progress that we made in 2024, I’d like to thank the Robinson team for all the work they’ve put in to get to this point,” Bozeman said. “I don’t take their efforts and dedication for granted, and I commend them for helping us get more fit, fast and focused and for embracing the discipline that the new operating model demands. On my first earnings call in August of 2023, I said that I looked forward to leading this great company to new heights and sharing our progress with all of you along our journey. While there’s still more grass to cut, I believe we’re on the right path, and I’m pleased with the progress we’ve made on evolving our strategy and improving our execution by instilling discipline with our new operating model.”

Georgia governor lays out tort reform package to be considered by state legislature

Bruce Guthrie - January 31, 2025

ATLANTA – Georgia Governor Brian Kemp, joined by Lieutenant Governor Burt Jones, Speaker Jon Burns, Commissioner John King and leaders from industries across Georgia, unveiled his tort reform package that he said “levels the playing field in courtrooms, bans hostile foreign powers from taking advantage of consumers and legal proceedings, aims to stabilize insurance costs for businesses and consumers, increases transparency and fairness, and ensures Georgia continues to be the best place to live, work, and raise a family.” “As I said in my State of the State address earlier this month, our legal environment is draining family bank accounts and hurting job creators of all sizes in nearly every industry in our state,” Kemp said. “After months of listening to our citizens, businesses, and stakeholders across the spectrum, it is clear the status quo is unacceptable, unsustainable, and jeopardizes our state’s prosperity in the years to come. This tort reform package protects the rights of all Georgians to have access to our civil justice system, and ensures that those who have been wronged receive justice and are made whole. I look forward to working with our partners in the General Assembly to pass this comprehensive and commonsense package, and achieve meaningful progress on this important issue during this legislative session.” “My position on this important issue has always been the same,” said Lt. Governor Burt Jones. “If we want to continue to be the No. 1 state in which to do business, we must foster a business-friendly climate. We have to work together to ensure that we put families and consumers first by tackling the hidden costs we all pay thanks to Georgia’s current tort laws. I look forward to working with those in the General Assembly to move these bills through the legislative process.” “For a long time now, I’ve said that Georgia’s legal climate amounts to a hidden tax on families and small businesses, driving up costs and threatening our long-term future,” said Commissioner John King. “That’s the message we’ve heard across the entire state, too. The plan Governor Kemp is rolling out today will tackle a failed status quo, level the playing field in our courtrooms, and help ensure Georgia’s long-term prosperity and security. I’m all-in to help him get it across the finish line.” “For an unprecedented eleven consecutive years, Georgia has been named the Number One Place to do Business,” said Speaker of the House Jon Burns. “Because of Governor Kemp’s leadership and efforts to maintain that designation, we have heard from countless businesses of every size across the state about the issues they are facing—and the consensus is clear. Our current legal environment is in need of common-sense reform. The House is looking forward to working alongside Governor Kemp and stakeholders throughout Georgia to balance the scales of justice in our courtrooms and return stability to our insurance markets—all while respecting the rights of our citizens with legitimate claims to be made whole.” Below are the specific policy areas addressed by the legislation: Reevaluates the Standard for Negligent Security Liability (“Premises Liability”): Ensures businesses should only be liable for what they directly control. If signed into law, the legislation would hold property owners liable for failures to keep their property safe for their customers and the public, but protect establishments for simply opening their doors and employing hardworking Georgians in communities and neighborhoods that need them. Truthful Calculation of Medical Damages in Personal Injury Cases (“Phantom Damages”): Requires the plaintiff to only seek damages in the amount actually paid (or will be paid in the future) for a medical bill, rather than the inflated amount that is currently introduced in evidence – ensuring Georgians who are successful in their litigation are made whole, and have their costs covered, while protecting consumers from inflated costs being passed on to them. Eliminates the Ability to Arbitrarily Anchor Pain and Suffering Damages to a Jury (“Anchoring”): Prohibits the use of anchoring tactics by attorneys in closing arguments so the jury can use their own discretion—rather than artificial benchmarks like the cost of fighter jets, or the number of miles a truck drove, or the salary of a professional athlete—all of which are real examples from cases. This bill does NOT place ANY limit on the jury’s discretion. In fact, the Governor’s legislation protects the jury’s decision making from irrelevant and improper arguments from counsel – empowering the jury to decide an award amount on their own. Bifurcated Trials: Permits a party in a case to move for bifurcation of the trial, so that liability must be established before the jury hears evidence detailing the extent of the plaintiff’s damages. This clarifies important procedure in the courtroom and gives both sides of a case the same opportunity to have their arguments heard. Allow a Jury to Know Whether the Plaintiff Wore Their Seatbelt (“Admissible Seatbelt Evidence”): Remove the current exclusion from the evidence code that prevents the defendant from showing evidence the plaintiff was not wearing his or her seatbelt in an auto accident. Allowing admission of seatbelt evidence at trial may be used by the defense to mitigate damages, particularly where the plaintiff’s failure to use this essential safety feature results in significantly worse injuries for the plaintiff. Eliminate Double Recovery of Attorney’s Fees: Closes an important loophole that allowed plaintiff’s counsel to recover their fees twice for the same lawsuit. Courts will remain able to award attorney fees—but only once. Eliminate Plaintiff Dismissal During Trial: Amends the timeline for voluntary dismissals – putting an end to the practice of plaintiffs dismissing a case and refilling in or “cherry pick” a more favorable jurisdiction to them after the defense has already racked up the cost of preparing and beginning the trial. Motion to Dismiss Timing Changes: Changes the civil practice act to allow a defendant to file a motion to dismiss in lieu of an answer – cutting down unnecessary discovery expenses while a motion to dismiss is pending. Reforming and Bringing Transparency to Third Party Litigation Funding: First, the legislation bans hostile foreign adversaries from using our litigation climate to undermine our vital security and economic interests – protecting Georgia businesses and consumers from foreign actors who may fund litigation to obtain trade secrets or advance their own political interests against the interests of the citizens of this state. Second, the legislation protects consumers from predatory lenders that want to take advantage of litigants in vulnerable situations by prohibiting litigation funders from having any input into the litigation strategy or from taking the plaintiff’s whole recovery and making sure plaintiffs are aware of their rights. Third, increases transparency for all parties—the courts, opposing litigants, and the plaintiffs themselves.

Trucking groups applaud bipartisan effort to crack down on freight fraud in moving industry

Dana Guthrie - January 31, 2025

WASHINGTON — The Owner-Operator Independent Drivers Association (OOIDA) and other freight industry leaders are applauding a bill introduced on Thursday to help fight freight fraud. Congresswoman Eleanor Holmes Norton and Congressman Mike Ezell will reintroduce a bipartisan bill to equip the Federal Motor Carrier Safety Administration (FMCSA) with the necessary tools to protect consumers from fraud perpetrated by scammers in the interstate transportation of household goods. “Freight fraud committed by criminals and scam artists has been devastating to many small business truckers simply trying to make a living in a tough freight market,” said Todd Spencer, OOIDA president. “OOIDA and the 150,000 small-business truckers we represent applaud Senator Fischer, Senator Duckworth, Representative Holmes Norton and Representative Ezell for their bipartisan and bicameral leadership to provide FMCSA better tools to root out fraudulent actors, which are also harmful to consumers and highway safety. Because of the broad industry support for these commonsense reforms, we hope this bipartisan legislation will move through the committee process without delay.” Rise in Freight Fraud The bill was written to address a growing type of fraud involving entities that charge an up-front fee, pack and hold consumers’ household goods, then demand more funds to deliver or release the items. The companies involved have launched websites with fake 5-star reviews, and when negative reviews are submitted, the scammers simply close down the existing companies and open new ones, repeating the original scheme under a new FMCSA license. Last Congress, the House Committee on Transportation and Infrastructure passed the bill by a vote of 62-2. U.S. Senators Deb Fischer and Tammy Duckworth are introducing the Senate companion bill. “Shipping fraud is among the most frequent complaints FMCSA receives,” Norton said. “This bill would provide FMCSA with explicit authority to assess civil penalties for violations of commercial regulations, and crucially, to withhold registration from applicants failing to provide verification details demonstrating they intend to operate legitimate businesses. Americans moving across state lines need to be able to have confidence in FMCSA-licensed companies transporting their physical belongings, and I’m proud to introduce this bill with Rep. Ezell to strengthen protections, and I thank my colleagues, Senators Fischer and Duckworth for leading this bill in the senate.” The bill has been endorsed by the Transportation Intermediaries Association (TIA), American Trucking Associations’ Moving & Storage Conference (ATA-MSC), OOIDA, the National Association of Small Trucking Companies (NASTC), Commercial Vehicle Safety Alliance (CVSA), Institute for Safer Trucking (IST) and Road Safe America. Protection for Consumers “The Household Goods Shipping Consumer Protection Act aims to tackle fraudulent practices in the moving and shipping industry that damage consumer trust and disrupt our national supply chain,” Ezell said. “By holding dishonest actors accountable, we’re not only safeguarding consumers but also supporting reputable businesses and their workforce. I’m proud to co-author this important legislation to combat fraud and strengthen order within our economy.” According to OOIDA, professional truckers have been telling the U.S. Department of Transportation for decades about inadequate broker regulations that are rarely, if ever, enforced. This has resulted in an inequitable economic environment for truckers, especially small-businesses who are victimized by unscrupulous brokers and other fraudulent entities. The current regulatory framework limits fraud enforcement. It enables bad actors to operate with impunity, and forces out drivers who want to build sustainable trucking careers. Tools to Fight Freight Fraud “We cannot allow bad actors in the shipping and moving industry to violate consumer trust and harm our nation’s supply chain,” Fischer said. “Our bipartisan, bicameral legislation will give the Federal Motor Carrier Safety Administration the tools they need to hold these thieves accountable. I look forward to working with my colleagues in both the House and the Senate to get our bill signed into law.” OOIDA noted that the Household Goods Shipping Consumer Protection Act restores and codifies FMCSA’s authority to issue civil penalties against bad actors. The legislation also requires that brokers, freight forwarders, and carriers provide a valid business address to FMCSA in order to register for authority. Scammers Held Accountable “Bad actors are constantly developing new ways to defraud hardworking Americans, so it’s critical we keep our legislation up to speed so we can protect our constituents from the latest scamming techniques,” Duckworth said. “Moving is stressful enough without worrying about whether your movers are actually scammers trying to steal your money and belongings. I’m proud to help introduce this bipartisan legislation to help ensure FMCSA has the tools it needs to shield American consumers from these thieves.” According to Chris Burroughs, TIA president and CEO, fraud continues to wreak havoc on the supply chain and in turn, hurts consumers and the U.S. economy. “We thank Congresswoman Norton and Congressman Ezell for re-introducing the Household Goods Shipping Consumer Protection Act in the 119th Congress,” Burroughs said. “Re-introducing this bill shows their commitment to implementing strong anti-fraud laws, which could markedly reduce fraud in the supply chain, minimize financial losses to small business and restore integrity to the nation’s freight sector. This bill is good for the industry, consumers and the American economy.” Easing Stress while Relocating “When individuals and families begin the stressful process of relocating, the last thing they should have to worry about is being exploited by unscrupulous companies charging exorbitant rates and holding their household goods hostage,” said Henry Hanscom, ATA senior vice president of legislative affairs and Dan Hilton, ATA Moving & Storage Conference executive director. “We commend Representatives Eleanor Holmes Norton and Mike Ezell for taking action to help prevent consumers from becoming victims of moving fraud and protect the reputations of legitimate moving and storage companies and their hardworking employees. By creating additional tools to crack down on scammers, their legislation will help Americans have greater confidence that the moving professionals they entrust with their valuable possessions are experienced, honest, and reliable.” Fraudsters Put on Notice “The National Association of Small Trucking Companies appreciates the reintroduction of the Household Goods Shipping Consumer Protection Act, said David Owen, NASTC president. “In particular, we thank Representatives Norton and Ezell and Senator Fischer for their leadership on the challenge of freight fraud, an epidemic that continues to plague the trucking industry. NASTC heartily supports this legislation. It takes steps to ensure that fraudulent brokering by criminals and criminal enterprises gets caught and the fraudsters held accountable. This bill requires a tangible place of business in order to register, which should throw up barriers to many of the frauds who exploit the ability to constantly shift their online brokering schemes. NASTC looks forward to working with these lawmakers to move this bill forward in this Congress.”

DHL freight opens logistics terminal in Berlin

Bruce Guthrie - January 30, 2025

BERLIN, Germany — One of Europe’s top freight providers, DHL Freight, officially inaugurated its new terminal in Berlin-Marienfelde. With a footprint of 5,200 square meters, 48 loading docks and cutting-edge infrastructure, the site replaces the existing facility in Berlin, which has reached the limits of its capacity. Thanks to its central location and sustainable technology, the new terminal sets standards in logistics and environmental awareness for the region in and around Berlin. The opening ceremony was attended by representatives from politics and industry as well as project partners, including Dr. Ann-Kathrin Biewener, Head of Economic Development for the Tempelhof-Schoeneberg District, Berlin, Dr. Thomas Vogel, CEO DHL Freight DACH, UK & IE, and Goetz Hanningsmann, Area Manager North DHL Freight, Real Estate Developer Marc Urbatsch, Managing Director of Operatio GmbH, Project Lead Frank Gottschalk, Bremer Berlin-Brandenburg GmbH. “The new city terminal in Berlin not only expands our capacities, but also reflects our commitment to more sustainable logistics. In addition to various alternative drive technologies such as electric trucks, at the site itself we have placed importance on measures such as photovoltaics, wind turbines and the latest in water management,” explains Dr. Thomas Vogel, CEO DHL Freight DACH, UK & IE. “With modern technologies and optimized processes, we can contribute to making the transport of goods in the region not only more efficient but also more sustainable. This creates double value for our customers and our environment.” Cutting-edge technology and sustainable operations The terminal was built in accordance with DHL’s sustainability strategy, with a holistic concept for more sustainable logistics clearly in focus: in terms of local transport, the vehicle fleet is being converted to alternative drives – from electric forklifts to natural-gas powered trucks to battery electric trucks that are already being used for deliveries on the last mile. The technical infrastructure of the terminal itself is consistently aligned toward energy efficiency: a heat pump system ensures the right temperature control, while a rainwater cistern optimizes water consumption. An energy-saving LED lighting system is installed as standard. Charging stations with electricity from renewable sources are available for both cars and trucks used for local and long-distance transport. The holistic energy concept is also supported by a photovoltaic system and wind turbines. Strengthening DHL Freight’s European network The new terminal in the Marienfelde district is part of DHL Freight’s long-term growth strategy. Through its location in south Berlin, the terminal improves not just the efficiency and quality of services for customers in and around Germany’s capital, but also strengthens the entire European network. In addition to handling LTL and FTL transports, the site will also test innovative logistics solutions to better serve future needs. Background and project history The terminal was built on a former industrial site located on Buckower Chaussee in the south of the city. The project was developed and implemented by Operatio GmbH and Bremer Berlin-Brandenburg GmbH. Ground was broken on the site in November 2023. Within just 14 months, a modern freight forwarding facility was built on the 20,000 square meter site that replaces the previous downtown terminal. In addition to the Marienfelde terminal, DHL Freight operates another site in the region in the town of Wustermark. Together, the two sites provide an ideal starting point for logistics services in the Berlin-Brandenburg region.

Canada Cartage to acquire Walmart Canada’s fleet business

Dana Guthrie - January 30, 2025

TORONTO, ON — Canada Cartage is acquiring Walmart Fleet ULC. “Our acquisition of Walmart Fleet reflects our commitment to expanding our network and bringing dedicated fleet transportation solutions to more customers across Canada,” said Scott Lane, president, Canada Cartage. “This move positions us for long-term growth while providing the talented employees joining us from Walmart Fleet with more opportunities to develop long-term careers and thrive in a fleet-focused environment.” Growth Goals Headquartered in Mississauga, Ontario, Walmart Fleet transports local goods to support communities across Canada and services Walmart’s more than 400 stores from coast-to-coast. Canada Cartage was chosen by Walmart Canada to acquire its fleet business so it can focus on its ambitious growth strategy of expanding its stores and supply chain across Canada. This acquisition allows Canada Cartage to strengthen its dedicated fleet capabilities and accelerate its growth in Canada. According to a media release, Canada Cartage will operate the fleet as a dedicated operation, ensuring business continuity for Walmart Canada while building on its reputation as a trusted provider in the dedicated transportation industry. For the retailer, the divestiture reflects a strategic focus on its future growth plans in Canada. The expansion across the country will better serve its customers. Focused Strategy “This decision is part of our broader growth ambitions and strategy to focus on what we do best: delivering value to our customers,” said Matt Kelly, vice president, supply chain, Walmart Canada. “We are confident fleet employees will benefit greatly from Canada Cartage’s leadership. They’re very well-respected, and we know their culture is the right fit for fleet employees and our business.” The acquisition underscores both Canada Cartage and Walmart Canada’s commitment to long-term growth in Canada, and positions both companies for sustained success in an evolving market. The transaction to acquire Walmart Fleet ULC is expected to close in the coming weeks. It is subject to the satisfaction of customary closing conditions.

Industry veteran Matt Dyer appointed as new CEO of Merchants Fleet

Dana Guthrie - January 30, 2025

Merchants Fleet is appointing Matt Dyer as its new CEO. “Matt is an exceptional leader with deep fleet expertise and a proven track record of driving transformative change,” said Brad Burgess, interim co-CEO of Merchants Fleet. “His bold vision, collaborative spirit, and commitment to excellence make him the ideal person to guide Merchants into its next chapter. We’re excited to work together to shape a dynamic future for our company and clients.” Extensive Leadership Experience According a to a company media release, Dyer brings decades of industry leadership and expertise to the role, including four years as CEO of LeasePlan USA. Dyer’s extensive career includes leadership roles across the global fleet management industry. As CEO and president of LeasePlan USA, he improved the company’s client net promoter score, implemented scalable operations, launched a portfolio of products, and invested in tech innovations which resulted in historic growth for the company. Following the successful sale of LeasePlan USA, Dyer played a role in the integration of the business with Wheels. “Merchants’ unwavering dedication to its clients lies at the core of its success, inspiring bold innovation and a distinctive ability to think beyond conventional boundaries,” Dyer said. “I value this client commitment very highly and see it as an important vision for our business. I am honored to join the company at such a pivotal and exciting moment in its evolution, and to collaborate with some of the brightest minds in the business as we redefine what’s possible for our employees, clients, and partners.” International Background Prior to his leadership in the U.S., Dyer served as CEO of LeasePlan UK, overseeing the corporate, public sector, and SME markets. His tenure with LeasePlan also included senior roles as CCO in the UK, and as managing director of LeasePlan International for LeasePlan Corporation. In addition to his industry experience, Dyer has also served as chairman of the UK trade association for the vehicle rental and leasing sector. Dyer holds a BSc in Managerial and Administrative Studies from Aston University in the UK and currently resides in Atlanta, Ga., with his wife and their two daughters. Dyer’s appointment succeeds interim co-CEOs Brad Burgess and Kirk Hoffman who will return to their roles as senior vice president of Sales and Marketing and Senior Vice President & Chief Financial Officer respectively. Merchants’ Executive Leadership team and Board of Directors extend their heartfelt gratitude to both gentlemen for their contributions and leadership during the company’s CEO search.

XPO salutes safety superstars: 246 drivers reach 1 million+ accident-free miles

Dana Guthrie - January 30, 2025

GREENWICH, Conn. — XPO is saluting 246 of its professional truck drivers who achieved million-mile safe driving milestones in 2024. “I want to congratulate our 246 drivers who reached one million or more consecutive accident-free miles last year,” said Mario Harik, CEO. “I am grateful for everything they do to serve our customers and keep our roads safe, and I look forward to recognizing many more drivers in the coming year.” Collectively, they have driven over 308 million consecutive accident-free miles, equivalent to roughly 12,379 trips around the Earth. Safety Superstars Of the 246 drivers, 199 reached one million consecutive accident-free miles, while 35 drivers surpassed two million miles. Additionally, XPO celebrated nine drivers for achieving three million consecutive accident-free miles, including the 100th driver in company history to accomplish this feat. Three drivers were recognized by XPO for reaching four million consecutive accident-free miles last year: Dale Williams of Knoxville, Tennessee; Doug Phelps of Clearfield, Pennsylvania; and Darrell Thompson of Indianapolis, Indiana. Four million miles is the equivalent of driving to the moon and back over eight times. Dale, Doug and Darrell have a combined 116 years of accident-free driving at XPO.

ATRI: Traffic congestion costs trucking industry nearly $110 billion each year

Dana Guthrie - January 29, 2025

Traffic congestion has a significant impact on the U.S. economy, global supply chains, and the trucking industry in particular — to the tune of $108.8 billion. According to the American Transportation Research Institute’s (ATRI) Cost of Congestion Report: 2024 Update, the nation’s highways are the trucking industry’s backbone. It helps facilitate the efficient movement of freight from warehouses to manufacturers and from farms to markets. When traffic volumes along critical freight corridors exceed highway capacity, the ensuing congestion impedes freight movement and creates inflationary increases in the cost of goods and services. “Prior to the COVID-19 pandemic, the congestion costs borne by trucking had been on a steady rise, reaching more than $87 billion annually in 2018,” ATRI said. “The pandemic offered a small reprieve in congestion costs as the number of vehicles on the road hit record lows in 2020 due to mandatory office, school and retail closures. Since that time, however, drivers have returned to the road and traffic has slowed. In 2021, congestion costs exceeded $94 billion. In 2022, congestion’s impact on the trucking industry was more than $108 billion annually.” Infrastructure Investment and Jobs Act Since the passing of the 2021 Infrastructure Investment and Jobs Act (IIJA), congestion has been a focal point for collaboration between industry advocates, government, and local communities. In 2022, the federal government spent $52 billion on highways through a variety of programs, several of which were established by IIJA specifically to target congestion. State and local governments spent an additional $180 billion on highways during the year. New York has recently been at the center of a controversial congestion pricing issue. “It is clear through past research that investment in a modern interstate system is critical to the economic success of the United States,” the report said. “Recent research affirms that, in addition to improving supply chain efficiency, infrastructure spending is an effective fiscal stimulus.However, infrastructure investment must adequately target traffic congestion hotspots and bottlenecks. This report expands the existing literature by detailing the cost of congested highways to trucking as well as providing rationale for continued investment in strategic freight corridors and bottlenecks.” Cost of Congestion Research The report is a continuation of ATRI’s ongoing Cost of Congestion research. The Cost of Congestion initiative began in 2012 when ATRI’s Research Advisory Committee (RAC) ranked an ongoing analysis of congestion costs as a top research priority. In 2024, the RAC requested that staff update the Congestion research to capture any effects of transportation investments and/or economic fluctuations. Data Inputs for Measuring Congestion Costs To measure the cost of congestion to the trucking industry, three data inputs are utilized. These are average truck speeds, truck volumes and operational costs in trucking. Average Speed. Average highway speeds for combination trucks by geographic and temporal segment identify the deviation from free flow speed (and thus additional travel time). These data are derived from ATRI’s substantial truck GPS database. Truck Volume/Vehicle Miles Traveled (VMT). The volume of combination truck traffic by geographic and temporal segment measures the number of trucks that are impacted by delay. Truck VMT is the total of all truck miles traveled in a given year in the U.S. Truck VMT can be segmented by metropolitan area, state or region. These data are derived from the Federal Highway Administration (FHWA) Highway Statistics Series. Operational Costs. The marginal unit cost per hour to operate a Class 7/8 combination truck can be multiplied by hours of delay to produce a total congestion cost for the relevant location. The operational costs data are derived from ATRI’s annual Operational Costs of Trucking study. Average Speed In 2022, the average truck speeds at the expanded bottleneck areas increased slightly to 52.41 mph from 51.95 mph in 2021. The 2022 average speed remained below the sharp 2020 increase – when COVID-19-related workplace closures and quarantine orders significantly reduced personal vehicle traffic – but was still more than one MPH faster than average speeds in the period from 2016-2019. This trend was largely consistent across the country. Only six states saw slower average truck speeds in 2022 than in 2021: Indiana, Nebraska, New Hampshire, North Dakota, Michigan, and Kentucky. The latter was the only state in which speeds slowed by more than 1 percent. By itself, the increase in nationwide average speeds indicates a slight reduction in congestion. The cost of congestion, however, is also impacted by truck volumes and operational costs. Truck Volume/Vehicle Miles Traveled Truck VMT dipped slightly from 195,616 million miles traveled in 2021 to 195,049 million miles traveled in 2022. As a result, the number of truck miles impacted by congestion in 2022 went down slightly. This year-over-year decrease was driven by a softening freight market during the second half of 2022; that said, truck volumes remained well above pre-Covid levels. Operational Costs The most critical factor for the cost of congestion in 2022 was increased operating costs. “The marginal costs to operate a truck include line-items such as fuel, truck and trailer purchases/leases, repair and maintenance, tires, insurance premiums, tolls, permits and licenses, and truck driver wages and benefits,” the report said. “These costs reflect a wide range of economic factors such as freight demand, global oil production, litigation and labor markets.” In 2022, per-hour operational costs soared by 21.6 percent to a then-record high of $90.78. This steep rate of increase was driven by an array of internal and external factors, often unique to individual line-items: The price of diesel rose sharply following the U.S. prohibition on new domestic drilling leases in early 2021 and later the Russian invasion of Ukraine in February 2022. Limited availability of new Class 7/8 truck tractors and components following the COVID19 pandemic – due to production backlogs and supply issues for parts like computer chips – continued to drive prices up in the new, used, and leased truck markets. Limited access to equipment meant that fleets had to run trucks longer than usual, resulting in significantly higher repair and maintenance costs. Growing inflation and backlogs further increased parts prices, while a diesel technician shortage drove up the cost of technician labor. A highly competitive U.S. labor market also fueled a 12.3 percent increase in total driver compensation (wages plus benefits). Rising wages in industries that compete with trucking for labor, a spike in inflation, and overall growth in the trucking industry all exerted upward pressure on driver wages. Consequently, it was costlier to do business in the trucking industry in 2022; high hourly truck operating costs made congestion delays more costly for trucking. National Findings The national cost of congestion rose to $108.8 billion in 2022, a 15% increase over 2021’s congestion cost of $94.6 billion. “While truck VMT and truck speeds had modest fluctuations, extreme inflation had a major impact on operational costs,” the report said. “As a result, the upward shift in the national cost of congestion for trucking between 2021 and 2022 was largely driven by the historic 21.6 percent increase in truck operating costs.” Slight fluctuations in speeds and truck volume resulted in a 5.4% decrease in the total hours of congestion. After hitting a high of 1.27 billion hours in 2021, total congestion time dropped to 1.20 billion hours in 2022. Though the hours lost to congestion decreased, each hour lost was significantly more expensive when compared to the prior year. The congestion-related loss of 1.20 billion operating hours in a single year is, of course, a massive drain on supply chain productivity. One consequence of this wasted time is inefficient workforce utilization. The total congestion delay in 2022 was equivalent to 435,686 truck drivers remaining idle for the entire year, equating to idling 22% of all Class-A licensed commercial truck drivers. ATRI estimates that individual carriers and owner-operators saw a congestion cost of $7,588 per truck in 2022, or 2.8% of the average annual per-truck revenue in the truckload sector. Regional Findings “Following the national trend, the cost of congestion grew again in each of the five regions tracked in 2022,” ATRI said. “While the exact total for each region primarily reflects differences in size, the relative change from year to year can be instructive.” The Southeast, where congestion costs grew at the highest rate in 2021, was outpaced by the Midwest and South Central regions in 2022. Congestion costs in the Midwest rose at the second-highest rate, closing the gap between it and the Northeast. The West, after two years in which high port activity had fueled higher congestion costs in that region, was surpassed by the Midwest once again. Economic growth exerted partial influence on the changes in regional congestion costs. The Southeast experienced the greatest regional growth in GDP between 2021 and 2022, at 3.5%. That is consistent with its status as the region with the fastest-growing congestion costs. State Findings “Texas reclaimed the top spot in the state ranking of highest congestion costs in 2022, while California fell to second,” ATRI said. “This was due to a large increase in truck volumes in Texas, coupled with a decrease in truck volumes in California. It is notable that Hawaii experienced a near doubling of congestion costs between 2021 and 2022.” Twenty-five U.S. states experienced a decrease in total hours of congestion between 2021 and 2022 (more than 1% decline). Conclusions Based on this analysis, the cost of congestion to the trucking industry is at its highest level to date. In 2021 the annual cost of congestion to the U.S. trucking industry reached an all-time high of $94.6 billion. Congestion costs in 2022 surpassed this level, with a national cost of $108.8 billion – an increase of 15% year over year. This was an increase in annual costs of more than $14.1 billion. The 2022 national congestion of 1.2 billion hours of delay is equivalent to 435,000 truck drivers sitting idle for one year. On average, annual congestion costs per truck were $7,588, an increase of 11.1% per year. These congestion delays generate fuel and environmental consequences. This report estimates that in 2022, 6.424 billion additional gallons of diesel were wasted due to congestion, costing the industry more than $32 billion. The CO2 production associated with additional fuel use is substantial at 65.4 million metric tons. The congestion cost increases experienced by individual states were primarily driven by operational costs. At the state level, the four states with the highest congestion costs were ranked as follows: 1. Texas 2. California 3. Florida 4. New York These four states alone make up 29.6% of national congestion costs. Congestion costs were highest in the New York City, Miami and Chicago metropolitan areas. Though congestion cost increases in these leading metros were only slightly higher than the industry-wide operational costs increase. Several smaller metro areas had costs increase at a much greater rate. Those include New Orleans (37.1%), Buffalo (28.6%) and El Paso (27.8%). These cities contain ports that experienced growth in international trade following the COVID-19 pandemic. To read the full report, click here.

Truckstop & Bloomberg: Survey exhibits optimism for future of trucking industry

Bruce Guthrie - January 29, 2025

BOISE, Idaho — Is there optimism in looking at the future of trucking? One survey gives some cause to be optimistic. The Bloomberg | Truckstop semi-annual freight broker survey shows brokers are optimistic about this year as demand and spot rates improved significantly in the second half of 2024, according to a recent release. “Most brokers believe demand, rates and margins are poised to keep getting better,” said Lee Klaskow, senior freight transportation and logistics analyst at Bloomberg Intelligence. “They also anticipate that the new administration could drive load growth, while higher rates and technological advancements may continue to support margin expansion.” The Bloomberg | Truckstop second half 2024 Broker survey shows: Brokerage volume having some relief: Demand appears to have rebounded for freight brokers in the second half of 2024, with 55% of respondents noting that load volume rose year over year, 26 percentage points better than in the first half of 2024. That’s led brokers to be more optimistic about load volume in 2025, with 77% expecting it to be up in the next 3-6 months, 28 percentage points more than in the first half of 2024. Spot rates could edge higher this year: Freight brokers are more optimistic about spot rates with 52% of survey respondents expecting them to rise in the next 3-6 months, an 18-percentage point hike from the first half of 2024. Market conditions are still tightening, with Truckstop’s Market Demand Index up 28% on average in 4Q24 from 4Q23. Margins may expand: Brokers’ gross margins had a reprieve in the second half of 2024, with around 31% of respondents noting margin expansion – 7 percentage points better than the first half of 2024– which is set to extend in 2025. About 67% expect margins to improve in the next six months, 30 percentage points better than the prior survey. “Brokers are showing growing optimism for the year ahead, with our latest survey revealing that 52% of brokerages plan to expand their teams and 89% feel better equipped to combat fraud,” said Kendra Tucker, chief executive officer, Truckstop. “Truckstop is committed to delivering solutions that empower brokers to work with speed and confidence, helping them streamline operations, fight fraud and increase profitability.” The most recent sample size was 159, consisting of freight forwarders, third-party logistics providers and broker agents, as well as asset and non-asset-based brokers. Most respondents (64%) have 1-50 employees. Of those surveyed, non-asset-based brokers made up the biggest group (30%), followed by third-party logistic providers (26%) and broker agents (23%).

Georgia Ports report significant growth

Bruce Guthrie - January 29, 2025

SAVANNAH, Ga. – Georgia Ports Authority is reporting growth in two of its ports, according to a release issued this week. The Georgia Ports Authority reports that it handled more than 2.8 million TEUs in fiscal year-to-date 2025 (July 1 – Dec. 31), an increase of 11.4 percent or nearly 300,000 TEUs in the Port of Savannah. In December, GPA handled more than 442,000 TEUs, an increase of 4.7 percent or 19,850 TEUs compared to December 2023. “We’ve seen twelve consecutive months of year-over-year container volume growth and we’re on track for a strong fiscal year that ends June 30th, 2025,” said Griff Lynch, President and CEO of Georgia Ports Authority. The Appalachian Regional Port (ARP) also helped boost GPA’s performance, with an increase of 4,368 TEUs fiscal year-to-date or 13.5 percent over the previous period. December volumes were 6,084 TEUs an increase of 20.6 percent over the previous period. Lynch reported the Garden City West Terminal storage yard will see its cars in containers project come to completion in February 2025 as the customer shifts cargo to RoRo service in the Port of Brunswick. Four new ship-to-shore cranes from the Finland-based company, Konecranes arrived at the port on January 25, 2025 for installation. Other projects include the Blue Ridge Connector in Gainesville, GA which is 50% complete and opens in 2026 as an inland port, serving a fast-growing region. And, a $40 million expanded U.S. Customs inspection facility, financed by GPA that doubled in size and opens in March 2025 to support faster service within Garden City Terminal. The other major project is the Savannah Container Terminal which is currently in the permit process. “We continue to focus our infrastructure renovation efforts on getting all our facilities into top shape for customers and their long-term needs,” said Kent Fountain, Chairman of the Georgia Ports board. We’d like to thank our customers, Gateway Terminals, the ILA, our Trucking community and our business partners who make Savannah and Brunswick supply chains work so well.” Port of Brunswick In autos and heavy equipment, GPA handled 443,763 units of Ro/Ro cargo, an increase of 7.5 percent or 31,125 units fiscal year-to-date at the Port of Brunswick. In December, 69,000 units of Roll-on/Roll-off cargo were handled, a decrease of 7 percent or 5,200 units. (These numbers reflect total RoRo at Colonels Island- autos, machinery, static cargo, boats, vehicles). GPA completed $262 million in improvements at the Port of Brunswick in 2024, adding new warehousing and processing space, as well as 122 acres of Ro/Ro cargo storage. Construction has started on a new railyard on Colonel’s Island, while a fourth Ro/Ro berth is in the engineering phase. Colonel’s Island was also the new site for the official opening of Wallenius Wilhelmsen’s new Southeast port hub on January 21, 2025. Mayor’s Point Terminal The Mayor’s Point operation in Brunswick handled 22.5k tons in December, up 33.8%, and 164.7k tons in fiscal year-to-date 2025, up 61.4% compared to FYTD2024. East River Terminal & Lanier Dock Supported by 189.1% growth in December, bulk cargo at East River Terminal & Lanier Dock was up 44.9% to 793.5k tons in FYTD2025, mainly due to increased exports of wood pellets and peanut pellets.

Simplify tax season with Truckstop’s comprehensive checklist

Dana Guthrie - January 29, 2025

In an industry where uncertainties are the norm, one thing remains consistent – tax season. “Many truck drivers and independent owner-operators can feel overwhelmed because they most likely did not sign up to do loads of paperwork and play CPA in their spare time, it is imperative to know the basics and be prepared when the IRS comes knocking,” Truckstop said. “It doesn’t have to be stressful. When you know the deductions owner-operators are allowed to claim, keep track of your expenses throughout the year with some basic record keeping, and plan ahead, you can face tax time with a lot more confidence and a lot less dread.” Additional Taxes for Owner-Operators “You can’t manage your business if you’re not keeping track of it throughout the year….keep up with it every day, every month, and at the end of the year,” said Todd Amen, president and CEO at ATBS. In addition to state and federal income taxes, truck owner-operators are required to pay the trucking fuel tax known as IFTA, the International Fuel Tax Agreement. As an owner-operator, you must register in your base state and report and pay that state accordingly. IFTA taxes can be confusing, so make sure you understand the ins and outs. “You can always hire a tax professional to help you, depending on your comfort level,” Truckstop said. “Even so, careful and thorough record keeping on your part will ensure a smooth process and help you avoid over-paying or owing money when you least expect it.” Most Common Tax Deductions If you’re an employee of a trucking company and receive a W-2 at the end of the year, your job-related expenses are not tax deductible. If you’re a self-employed owner-operator, however, you can and should deduct all your work-related costs. As an owner-operator, at the end of the year you will get a 1099 tax form from customers that paid you more than $600 throughout the year. Those forms, plus your own records of income and expenses, are what you report and file along with your 1040. Again, keeping good records and careful documentation will help you back up your deduction claims to ensure you get the full tax benefits and help you avoid an audit. Vehicle-related Expenses The IRS considers your equipment—your semi-truck, van, flatbed, reefer, or other type of vehicle used in your trucking operation—to be a qualified non-personal-use vehicle. You can claim all the actual expenses of operating the vehicle as deductions. Fuel costs: Any fuel costs you pay on the road hauling loads, along with the fuel taxes you’re responsible for when filing your quarterly IFTA report are tax deductible. You can also claim work-travel-related fees like tolls and parking. Maintenance and repairs: Since your truck is considered a qualified non-personal-use vehicle, you can deduct 100% of all vehicle expenses for truck repair and maintenance. A simple rule of thumb is “if you repair it, you can deduct it.” Maintenance and repair expenses on your truck, including labor, parts, oil, tires, tools, and getting your truck washed and detailed can be deducted in full the same year you paid for it. Make sure you keep every receipt, whether the expense is large or small. They all add up come tax time, and you can’t claim it if you didn’t document it. Truck payments or leases: Whether you have truck payments on a vehicle you’re working to own or if you lease your work vehicle, those payments are fully deductible. If you own your truck, you can claim depreciation. “Straight-line” depreciation is the standard schedule for a new Class 8 truck, and it’s spread evenly over several tax years. Accelerated depreciation takes a percentage of the truck’s value in a couple of years and a less rate after that. Insurance premiums: Business-related insurance premiums, including equipment insurance, can be deducted from your taxable income. This includes commercial liability insurance, property damage insurance, business interruption insurance, and loss of cargo insurance. Registration fees and taxes: Any expense directly related to your independent owner-operator business is tax deductible. This might include vehicle registration fees, permits and licenses and taxes, including the Heavy Highway Vehicle Use Tax and the cost of maintaining your CDL . Travel expenses Lodging (hotels, motels): If you’re working away from home long enough to need overnight accommodations, you can claim the lodging bill as a tax deduction. You can also claim expenses incurred with furnishing your sleeper berth. Items that fall under this category might include a mini-fridge, coffee maker, window coverings, bedding, food storage items and first-aid supplies. Meals (subject to partial deduction): If you’re an owner-operator driver subject to hours of service regulations, you can claim 80% of meal expenses purchased on the road. You have two options. You can either keep all your food and restaurant receipts and claim your actual meals expenses, including tax and tips, or you can use the per diem allowance. Per diem is the daily non-taxable reimbursement the federal government allows to cover meals and incidentals on the road. The IRS uses the official General Services Administration per diem rates. Note: Effective October 1, 2024, the U.S. per diem rate for a full day increased to $80, up from the previous rate of $69, which was in effect from January 1 to September 30, 2024. This means that when you file your 2024 taxes, you will calculate your per diem rate using two different rates. Shower fees at truck stops: Many truck stops are conveniently equipped with showers for on-the-road hygiene purposes. Some charge, some don’t. If you pay for this convenience, you can claim it as a tax deduction. Equipment and supplies Devices: Today’s mobile technology is essential to running an efficient and compliant trucking operation and helps independent owner-operators compete with large carrier companies. From GPS devices to tablets, smartphones, and laptops, the cost of these business tools is a tax deduction that will lower your tax bill. If you use the technology for both business and personal reasons, deduct the portion that’s work-related. Logbooks: If you keep a manual record of any business transactions, expenses, hours of service, or any other work-related topic, you can deduct the actual cost of the journal or logbook. Safety equipment: Any specialized safety gear required for your job, like safety goggles, steel-toed boots, a back brace, or other article designed to protect you while working, can be deducted. Work-related clothing and laundry: Everyday clothing (such as jeans and a t-shirt) cannot be deducted, even if you wear it while driving. However, specialized clothing, like coveralls, specialized footwear, or protective headwear can be deducted. A company logo shirt or other garment that represents your company can be deducted. Home office and communication expenses Cell phone bills: If you have a separate cell phone that you use exclusively for your trucking business, you can deduct the entire cost of the plan. If you use one phone for both personal and business use, you can deduct a portion of the cost. You will need to determine what percentage of the time you use it for your trucking operation and deduct that portion. Today’s owner-operators rely on trucking-related apps to run their businesses and find loads. Any and all apps you use to handle any portion of your business can be written off as a tax deduction. Again, keep a record of your purchases and related costs so you can easily itemize them and take the deductions at tax time. Internet services for work purposes: If you have Wi-Fi at home or in your cab, you can deduct the cost on your taxes. Wi-Fi in your cab lets you work from anywhere—whether it’s planning your next haul, finding loads, or handling other online tasks. Home office supplies: If you conduct portions of your business from home, like most owner-operators do, make sure you deduct office supplies. Items like printer paper, printer ink, staplers, notebooks, and pens and pencils may seem like small deductions, but they all add up to help keep your tax bill as low as possible. Health and medical expenses. DOT physicals: As a condition of employment, you may be required to get regular medical exams, as required by the DOT. You can deduct any out-of-pocket expenses for these required physical exams. Sleep apnea tests or other medical tests related to your job: You can claim any out-of-pocket medical expenses that are work-related. This might include sleep apnea tests, Health insurance premiums (if self-employed): If you cover the cost of your own health insurance, you can deduct it from your taxes. It’s not considered a business expense, but there’s a designated section on your tax return to claim health insurance payments. Professional Fees License renewals: You can deduct the cost of renewing any licenses required to conduct your business, including state and local government-required business licenses. Association memberships: If you belong to any trucking-business-related or freight-industry organizations that charge a membership fee, that fee is tax deductible. Subscriptions to industry publications: If you subscribe to any magazines or websites focused on the trucking industry, you can deduct the full cost of those subscriptions. Non-deductible expenses While most business-related expenses are deductible, some are not. The following are not deductible. Reimbursed expenses: If someone else pays you back for your expenses, you can’t turn around and claim that expense on your taxes. Home or personal cell phone: A landline or personal cell phone not used for business purposes cannot be claimed as a tax deduction. Commuting expenses: If your truck is not parked where you live, you can’t claim the mileage you drive between home and where you start your work trips. Local route meals: If you’re driving local routes close to your home, daily meals are not deductible. Everyday clothing: Even if you wear it while driving, everyday clothing like jeans and T-shirts cannot be deducted. Personal trips: You cannot deduct the costs associated with personal trips or vacations, even if you’re using your business vehicle. For tax deductions to apply, the trip must be for the sole purpose of actively working. Best ways for tracking deductions Use a dedicated business bank account and credit card. Keep your work and personal finances separate. This is the easiest way to track your income and business-related costs. It will make taxes easier for you or any tax professional assisting you. Implement a digital receipt management system. Keeping track of physical receipts can get messy. Using a digital receipt management system can simplify receipts. Utilize mileage tracking apps. Mileage tracking apps are an excellent way to keep track of your mileage. This eliminates the need to manually write down your mileage, which can be time-consuming, less accurate, and subject to human error—like forgetting! Maintain a detailed logbook (physical or digital). Documentation is key. Whether it’s manually or using a digital solution, you’ll have no regrets when tax time rolls around. If you use a physical logbook, consider one with a pocket insert or built-in folder to keep your receipts organized. Set up a filing system for organizing receipts and documents. A good rule of thumb is to organize receipts and documents by year. It’s recommended to keep records up to three years back. This is a good way to easily retrieve what you’re looking for at any given time. Use accounting software designed for truckers. Keeping track of paperwork and staying on top of finances can be time-consuming and daunting. Consider using accounting software specifically for trucking. It dramatically reduces paperwork, automates tedious processes and frees you up to focus on finding loads and driving. Consider hiring a bookkeeper or accountant familiar with the trucking industry. If you’re in the market for a bookkeeper or accountant, seek one with freight industry knowledge and/or experience, like ATBS. This will ensure you claim all the deductions you can, minimize your taxes, and avoid an audit. “Get an accountant and get a system that tells you what your actual number should be based on what you’re actually earning,” Amen said. “An easy thing to do is save 20% of what you get every week, what your net is, and put it in an account that you’re not going to touch. And that’s ultimately what you’re going to pay in taxes and use that for your quarterlies.” Tips to minimize your taxes Maximize retirement contributions (e.g., IRA, SEP IRA, Solo 401(k)). Take advantage of per diem rates for meals and incidental expenses. Keep detailed records of all business-related expenses. Stay informed about tax law changes affecting the trucking industry. Consider incorporating your business or forming an LLC. Plan major purchases strategically (Section 179 deduction). Consult with a tax professional specializing in trucking industry. “If you can do it, take 10% of every dollar you make and put it in a retirement account,” Amen said. “It’s tax deductible and saves you money on taxes. It’s also going to grow with what it’s invested in. A retirement account is a great thing to do. Be disciplined and put 10% of what you make in a retirement account, and you’ll retire early.” Important reminders Keep all receipts and documentation for at least 3 years. Separate personal and business expenses. Be aware of the difference between deductible and non-deductible expenses. Stay up-to-date with IRS guidelines for truck drivers. We strongly recommend making estimated quarterly tax payments to avoid steep penalties and unwelcome surprises. Experts suggest setting aside 20 to 30% of your income for taxes. For the full checklist click here.

Winter’s chill on logistics: Spot rates and volumes take a hit

Dana Guthrie - January 29, 2025

BEAVERTON, Ore. — Harsh winter travel conditions across the country constrained capacity, but not enough to heat up national average spot truckload rates, according to DAT Freight & Analytics. “At $1.76 a mile, last week’s national average dry van rate was 1 cent lower year over year on a nearly identical volume of loads,” said Dean Croke, DAT iQ industry analyst. “DAT’s Top 50 van lanes by loads moved last week averaged $2.09 a mile, down 5 cents compared to the previous week and 9 cents lower over the last two weeks.” ▼ Van rate: $1.76 net fuel, down 5 cents ▼ Reefer rate: $2.11 net fuel, down 5 cents ▼ Flatbed rate: $2.01 net fuel, down 2 cents Unprecedented weather caused capacity to tighten significantly in Gulf Coast markets, pushing spot linehaul rates higher compared to the previous week. Weather in Texas and Louisiana were major factors in spot truckload rates. New Orleans Market Van: $1.77 a mile, up 8 cents. Reefer: $1.88 a mile, up 12 cents. Houston Market: Van: $1.68 a mile, up 5 cents. Reefer: $1.85 a mile, up 9 cents. California Wildfires “The impact of fires on California’s agricultural freight could be substantial,” Croke said. “Crop production in Kern, Los Angeles, Monterey, Orange, Riverside, San Bernardino, San Luis Obispo, Santa Barbara and Ventura counties employs nearly 87,000 people and accounts for 27% of the country’s fruit, 24% of its melons and vegetables, and 19% of its tree nuts, according to IMPLAN.” Harvest activity typically picks up from now through March and peaks in June. Last week, reefer rates increased modestly from DAT markets that include these nine counties: San Francisco market: $2.19 a mile, up 2 cents. Fresno market: $2.07 a mile, up 5 cents. Los Angeles market: $2.39 a mile, unchanged. Ontario market: $2.41 a mile, up 1 cent.

Volvo Trucks North America celebrates 2024 U.S. Dealer Group of the Year

Dana Guthrie - January 29, 2025

Volvo Trucks North America is recognizing the outstanding achievements of South Texas Truck Centers as the recipient of the prestigious 2024 U.S. Dealer Group of the Year award. “The trucking industry is demanding and the need to deliver uptime and exceptional service to our customers is the top priority for every employee at South Texas Truck Centers,” said Mike Stricker, dealer principal, South Texas Truck Centers. “We’re proud of our partnership with Volvo Trucks North America, Volvo Financial Services and the best-in-class products and services that we can bring to our customers through that partnership. But we couldn’t have won this prestigious award without all of the hardworking men and women at our South Texas Truck Centers locations who choose to deliver excellence every day.” According to a company press release, the recognition underscores their exceptional contributions in critical areas, including sales volume, market share, investments, and commitment to exemplary customer service. South Texas Truck Center This year’s winner is South Texas Truck Centers, a growing dealer from the Southwest Region. Led by dealer principal, Mike Stricker, its remarkable performance includes a market share of 22% within their area of responsibility. It also hit a 104% parts objective achievement and significant investment in their Volvo franchise. South Texas Truck Centers began Volvo operations six years ago as a single line dealer in Corpus Christi, Texas. It added locations in Pharr and Laredo shortly after. They are strong supporters of the Laredo Motor Carrier Association and Texas Trucking Association. Their utilization of Volvo’s captive finance company, Volvo Financial Services, is evidenced by a lease line and floorplan services. More than 76% of their Volvo business financed through Volvo Financial Services. As a result of this strong performance and commitment to the Volvo brand, South Texas Truck Centers achieved two additional accolades: the Volvo Financial Services Dealer Group of the Year and Southwest Region Dealer Group of the Year. Enhancing Volvo Trucks “South Texas Truck Centers has been instrumental in enhancing Volvo Trucks’ market presence and customer satisfaction, demonstrating unwavering commitment to delivering top-notch sales and service,” said Peter Voorhoeve, president, Volvo Trucks North America. “Given their remarkable performance in all criteria, we are thrilled to recognize South Texas Truck Centers as the 2024 U.S. Volvo Dealer Group of the Year.” The winners of the U.S. Dealer Group of the Year Award were unveiled at Volvo Trucks’ recent annual awards dinner in New Orleans. The ceremony also included the recognition of regional winners, highlighting outstanding performances across the U.S.: Central Region: Kriete Truck Centers Northeast Region: Stykemain Trucks Southeast Region: General Truck Sales & Service Southwest Region: South Texas Truck Centers West Region: TEC Equipment VTNA will recognize their Canadian Dealer Group of the Year at a ceremony in Mississauga this February. This event will highlight the exceptional performance of Canadian dealers who have demonstrated excellence in sales, service and customer satisfaction.

Truckstop & FTR: Van spot rates continue to normalize

Dana Guthrie - January 29, 2025

Data from Truckstop and FTR Transportation Intelligence for the week ending January 24 showed a spot market that continued to move back toward normal seasonal patterns following the spike in broker-posted spot rates for van equipment that always occurs in late December. Spot rates for both dry van and refrigerated equipment continued the settling that began in the previous week as flatbed rates moved higher, which also is typical for a comparable week of the year. Year-over-year comparisons were weaker than they have been due to the disruptions of freight networks and a sharp increase in spot rates that had occurred during the same 2024 week due to extreme winter weather. Spot rates during the current week (week ending January 31) typically would decline further for dry van and refrigerated but rise for flatbed. A sharp drop in load postings due at least in part to a federal holiday, coupled with a slight increase in truck postings, produced a Market Demand Index of 70.5, the lowest level in four weeks. Total Spot Load Availability Total load activity fell 15.4%, although the federal holiday might have played a role. Volume was nearly 12% below the same 2024 week and about 31% below the five-year average for the week. Total truck postings ticked up 1%, and the Market Demand Index – the ratio of load postings to truck postings in the system – fell to its lowest level in four weeks. Total Spot Rates The total market broker-posted spot rate decreased 2 cents for the fourth straight weekly decrease. Aside from 2024, spot rates for van equipment have fallen during every week 3 since 2011. Rates were down 5% from the same 2024 week, which had seen weather-related strength, and were 7.5% below the five-year average for the week. Rates excluding a calculated surcharge also were down 5% y/y. The market will face an easier y/y comparison during the current week. Dry Van Spot Rates Dry van spot rates decreased more than 3 cents after falling more than 7 cents in the previous week. Rates were more than 2% below the same 2024 week and about 7% below the five-year average for the week. Rates excluding a calculated fuel surcharge were down 1.6% y/y. Dry van loads fell 17.2%. Volume was close to 22% below the same 2024 week and nearly 36% below the five-year average. Refrigerated Spot Rates Refrigerated spot rates fell more than 11 cents after dropping more than 15 cents during the prior week. Rates were 7.5% below the same 2024 week and more than 7% below the five-year average for the week. Rates excluding a calculated fuel surcharge were down 8% y/y. Refrigerated loads decreased 9.0%. Volume was more than 28% below the same 2024 week and almost 33% below the five-year average. Flatbed Spot Rates Flatbed spot rates were basically unchanged after increasing 3 cents in the previous week. Rates were nearly 5% below the same 2024 week and more than 7% below the five-year average for the week. Rates excluding a calculated fuel surcharge were down by roughly the same degree that broker-posted rates were. Like dry van, flatbed loads fell 17.2%. Volume was less than 2% above the same 2024 week but nearly 36% below the five-year average.

PACCAR’s 2024 financial results second best in company history

Dana Guthrie - January 28, 2025

BELLEVUE, Wash. — PACCAR is reporting a record setting year with its financial results being the second best in company history. “PACCAR reported strong annual revenues and net income in 2024,” said Preston Feight, CEO. “PACCAR’s results reflect the enhanced profitability of the latest generation of DAF, Peterbilt and Kenworth trucks, record PACCAR Parts revenue and profit, and good financial services performance. I am very proud of our employees and dealers who delivered outstanding trucks and transportation solutions to our customers. In 2025, PACCAR is celebrating the 120th anniversary of the company’s founding in 1905 by William Pigott.” PACCAR achieved quarterly revenues of $7.91 billion in the fourth quarter of 2024, compared to the $9.08 billion reported in the same period in 2023, according to a company media release. The company earned $872.0 million ($1.66 per diluted share) in the fourth quarter of 2024, compared to $1.42 billion ($2.70 per diluted share) earned in the fourth quarter of 2023. PACCAR achieved strong revenues of $33.66 billion in 2024, compared to revenues of $35.13 billion in 2023. The company earned $4.16 billion ($7.90 per diluted share) in 2024, compared to $4.60 billion ($8.76 per diluted share) in 2023. Included in 2023 was a $446.4 million after-tax, non-recurring charge related to civil litigation in Europe. Harrie Schippers, president and CFO noted, “PACCAR’s financial results in 2024 were the second best in company history.” PACCAR Increases Regular Quarterly Dividend PACCAR declared cash dividends of $4.17 per share during 2024. This included a $3.00 per share year-end cash dividend paid on January 8, 2025. In December 2024, PACCAR announced a 10% increase to its regular quarterly cash dividend, to 33 cents per share, payable on March 5, 2025. “PACCAR has generated excellent financial results and shareholder returns for many years due to its premium quality vehicles, and strong performance by PACCAR Parts and PACCAR Financial Services,” said Mark Pigott, executive chairman. Business Highlights – 2024 PACCAR earned its 86th consecutive year of net income. PACCAR delivered 185,300 vehicles worldwide. PACCAR launched Amplify Cell Technologies, its U.S. battery manufacturing joint venture. DAF Trucks was honored as Fleet Manufacturer of the Year in the U.K. Kenworth celebrated the 50-year anniversary of its Chillicothe, Ohio truck factory. Peterbilt earned the 2024 Environment + Energy Leader Award for sustainability. PACCAR Parts celebrated the 30-year anniversary of its TRP aftermarket parts brand. PACCAR Parts opened a new Parts Distribution Center in Massbach, Germany. PACCAR was honored as a 2024 Top Company for Women to Work for in Transportation. Financial Highlights – Fourth Quarter 2024 Highlights of PACCAR’s financial results during the fourth quarter of 2024 include: Consolidated revenues of $7.91 billion. Net income of $872.0 million. PACCAR Parts revenue of $1.67 billion. PACCAR Parts pretax income of $428.2 million. PACCAR Financial Services pretax income of $104.0 million. Cash provided by operations of $1.45 billion. Financial Highlights – Full Year 2024 Highlights of PACCAR’s financial results during 2024 include: Consolidated revenues of $33.66 billion. Net income of $4.16 billion. After-tax return on revenues of 12.4%. Record PACCAR Parts revenue of $6.67 billion. Record PACCAR Parts pretax income of $1.71 billion. Financial Services assets of $22.41 billion. Financial Services pretax income of $435.6 million. Cash provided by operations of $4.64 billion. Dividends declared of $2.19 billion. Medium-term note issuances of $3.65 billion. PACCAR invested $1.25 billion in capital projects and research and development. Global Truck Markets “Infrastructure spending is driving steady demand for Kenworth and Peterbilt’s industry-leading vocational trucks,” said Laura Bloch, PACCAR senior vice president. “The less-than-truckload segment is also performing well.” Kenworth and Peterbilt achieved excellent U.S. and Canada Class 8 retail sales market share of 30.7% in 2024. U.S. and Canada Class 8 truck industry retail sales were 268,000 units in 2024 and are estimated to be in a range of 250,000-280,000 trucks in 2025. Kevin Baney, PACCAR executive vice president, noted that Kenworth, Peterbilt and DAF trucks deliver premium quality, industry-leading fuel efficiency and low operating costs to our customers. PACCAR is investing in the next generation of diesel and alternative powertrains, and aftermarket transportation solutions, that enable customers to achieve their operational and environmental goals.” “Customers appreciate the industry-leading fuel efficiency and driver comfort of DAF trucks,” said Harald Seidel, DAF president. “DAF trucks have a competitive advantage in the European truck market due to an innovative, aerodynamic design with a spacious, luxurious cab interior.” European above 16-tonne truck industry registrations were 316,000 trucks in 2024 and are estimated to be in the range of 270,000-300,000 trucks in 2025. The South American above 16-tonne truck market was 119,000 vehicles in 2024 and is estimated to be in the range of 115,000-125,000 trucks in 2025. “Kenworth and DAF premium heavy-duty trucks deliver the durability and reliability required for the challenging operating environments of South America,” said Mike Dozier, PACCAR executive vice president. PACCAR Parts Achieves Record Annual Revenues and Record Profits PACCAR Parts achieved quarterly pretax income of $428.2 million, compared to $432.4 million earned in the fourth quarter of 2023, according to the release. Fourth quarter 2024 revenues were $1.67 billion compared to $1.61 billion reported in the fourth quarter of 2023. PACCAR Parts achieved record annual pre-tax income of $1.71 billion, compared to $1.70 billion earned in 2023. Annual revenues were a record $6.67 billion, four percent higher than the $6.41 billion achieved in 2023. “PACCAR Parts provides strong profitability through all phases of the business cycle,” said Bryan Sitko, PACCAR vice president and PACCAR Parts general manager. “PACCAR Parts’ excellent long-term growth reflects the growing population of connected PACCAR vehicles with PACCAR MX engines, and the benefits of investments that increase customer vehicle uptime. These investments include new parts distribution centers (PDCs), Fleet Services, and Managed Dealer Inventory programs.” PACCAR’s PDCs support over 2,000 DAF, Kenworth and Peterbilt dealer sales, parts and service locations, and more than 350 TRP stores. These independent, well-capitalized dealers provide excellent service to customers, complementing the premium quality of DAF, Kenworth and Peterbilt vehicles. PACCAR opened its new, 240,000 square-foot PDC in Massbach, Germany, in November 2024. This PDC supports DAF’s growth in Germany, Europe’s largest truck market, by enhancing parts delivery to dealers and customers. PACCAR Financial Services Achieves Good Annual Results PACCAR Financial Services (PFS) achieved pretax income of $104.0 million in the fourth quarter of 2024, compared to $113.0 million earned in the fourth quarter of 2023. Fourth quarter 2024 revenues were $544.3 million compared to $484.8 million in the same quarter of 2023. PFS earned $435.6 million of pretax profit in 2024, compared to $540.3 million earned in 2023. Revenues were $2.10 billion in 2024 compared to $1.81 billion achieved in 2023. “PFS achieved good annual results due to its strong portfolio quality,” said Todd Hubbard, PACCAR vice president. “(It is) a leader in the market with its superior Kenworth, Peterbilt and DAF vehicles, innovative technologies that provide seamless credit application and loan servicing processes, and its support of customers in all phases of the business cycle.” PFS has a portfolio of 237,000 trucks and trailers, with total assets of $22.41 billion. PacLease, a major full-service truck leasing company in North America and Europe with a fleet of approximately 41,000 vehicles, is included in this segment. “PACCAR’s strong balance sheet, complemented by its A+/A1 credit ratings, enables PFS to offer competitive retail financing to Kenworth, Peterbilt and DAF dealers and customers in 26 countries on four continents,” said Craig Gryniewicz, PACCAR Financial Corp. president. “PACCAR Financial Services has excellent access to the debt markets, issuing $3.65 billion in medium-term notes during 2024.” Capital and R&D Investments in Products, Technologies and Facilities PACCAR’s excellent long-term profits, strong balance sheet and consistent focus on quality have enabled the company to invest $8.6 billion in new and enhanced facilities, innovative products and new technologies during the past decade, according to the release. PACCAR invested $796 million in capital projects and $453 million in research and development expenses in 2024. The company estimates that it will invest $700-$800 million in capital projects and $460-$500 million in research and development expenses in 2025. “PACCAR is investing in its truck factories, including expansions at Kenworth Chillicothe, Ohio, PACCAR Mexico and the DAF electric truck assembly plant in Eindhoven, Netherlands. Investments in PACCAR’s global engine business include additional manufacturing and remanufacturing capacity,” said John Rich, PACCAR senior vice president and chief technology officer. “In addition to the capital and R&D investments, the company expects to invest a total project amount of $600-$900 million in its battery joint venture, Amplify Cell Technologies.” PACCAR is a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates, according to the release. PACCAR also designs and manufactures advanced powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.

59% of drivers say they earned less in 2024 than in 2023

Dana Guthrie - January 28, 2025

BRENTWOOD, Tenn. — Conversion Interactive Agency and People. Data. Analytics.(PDA) have released their joint Q4 2024 Driver Recruiting & Retention Data Download Report showing a decline in drivers’ wages. “As the freight economy rebounds, driver recruiting is becoming even more competitive,” said Kelley Walkup, CEO of Conversion. “To win in this environment, carriers must embrace technology and tools to improve efficiency and reduce costs while addressing driver needs head-on.” Driver Pay a Top Consideration Driver pay remained a top concern in recruiting and retention, with 59% of drivers reporting they earned less in 2024 than in 2023. Transparent and predictable pay structures were the most common reasons drivers sought new opportunities, while inconsistent miles and non-competitive pay rates continued to be leading causes of voluntary turnover. “Carriers that tackle operational frustrations – from equipment problems to communication breakdowns – will see measurable improvements,” said Scott Dismuke, vice president of operations at PDA. “Transparency, proactive communication, and technology adoption are critical to building driver loyalty and trust.” Beyond pay, retention challenges were heavily influenced by equipment and operational issues. Equipment-related frustrations, particularly with tractor assignments, increased for the third consecutive quarter. Communication breakdowns with dispatchers and planners further compounded the problem, negatively impacting driver satisfaction and contributing to turnover. Critical Industry Trends According to a media release, the in-depth report sheds light on critical trends shaping the trucking industry as the freight economy rebounds, providing actionable strategies for carriers to attract and retain drivers in an increasingly competitive landscape. The Q4 report reveals that economic improvements are driving intensified competition for truck drivers. Unique driver job postings increased by 12.5% quarter-over-quarter, reflecting a tightening labor market. New Tech Aiding Recruitment and Retention The report underscores the game-changing role of technology in driver recruiting and retention efforts. Advanced tools such as AI automation in the Lead Assist platform helped carriers reduce their cost-per-hire by 27% in Q4 2024, making technology a crucial component in maintaining a competitive edge. Social media also emerged as a powerful channel for driver lead generation, with Facebook Reels generating 32% of all social media leads in Q4 2024, a significant leap from 5.6% in Q4 2022. Looking Ahead As the industry prepares for 2025, the report stresses the importance of carriers adopting a holistic approach to recruitment and retention. Leveraging AI and automation to streamline processes, implementing transparent and predictable pay structures, improving communication practices, and addressing operational pain points are all critical strategies for success in an increasingly competitive market. “By leveraging the latest technologies, improving pay transparency, and addressing operational pain points, fleets can position themselves for long-term success,” Walkup said.