Business Archives

Fleet Advantage announces 2022 milestones

The Trucker News Staff - February 23, 2023

FORT LAUDERDALE, Fla. – Fleet Advantage announced Feb. 13 several milestones it achieved over the last 12 months, including exceeding more than $760 million in lease originations. The company now totals $2.4 billion in assets under management and serves as the largest independent lessor for heavy-duty Class-8 trucks, according to a news release. The company has now purchased, financed, managed and disposed of more than 30,000 Class 8 vehicles with a current fleet size over 19,000. New leadership in 2023 Fleet Advantage enters 2023 under the leadership of Brian Holland, who previously served as the company’s president and CFO, succeeding John Flynn, who announced his retirement in December. Through an annual donation toward education and curriculum, Flynn will launch the John J. Flynn Scholarship Program later in 2023. Continued focus on business agility, flexibility “During 2022, Fleet Advantage placed an emphasis on helping its portfolio of corporate transportation fleets remain nimble and agile in their business operations due to the persistently changing economic climate,” the news release noted. “The company continued to help inject more flexibility into its clients’ operations, while helping them pay closer attention to their truck’s Life Cycles to understand where they can save money by optimizing and shortening replacement cycles. This resulted in a significant increase in customer satisfaction levels, along with the adoption of flexible leasing and shorter life cycles. This focus Life Cycle Cost Management (LCCM) has also enabled Fleet Advantage to ensure that 98% of its trucks are equipped with the latest safety features and technology.” Focusing on bridging to alternate fuel technologies Over the last 12 months, the company announced a new program that helps corporate truck fleets certify their greenhouse gas emissions output, that would be mandated under a proposed rule issued by the Securities and Exchange Commission. It also recently announced it will be placing orders for 200 – EV Class 8 tractors for deliveries commencing in calendar year 2023. Additionally, Fleet Advantage has equipped several clients with electric yard tractors, as well as electric trailers for certain applications. “With Fleet Advantage’s help, companies have vastly improved their environmental footprint by reducing CO2 emissions by over 1,000,000 metric tons,” the news release noted. Strong emphasis on serving local communities Through Fleet Advantage’s Kids Around The Corner program, the company made charitable donations to 18 organizations in 2022. In addition to well-deserving local organizations, Fleet Advantage partnered with GP Transco and became part of the Trucking and Logistics Partners for Ukraine. GP Transco and Fleet Advantage were both recognized as 2022 Humanitarian Logistics Award Winners. The company also partnered with truckersfinalmile.org for a second year and became the official sponsor of the program with a contribution that helps secure a total of 20 college education savings accounts to help children that experience a loss of a parent truck driver out on the road and away from home. The Fleet Advantage team also came together and collected supplies to assist in the Hurricane Ian Disaster Relief efforts. “I could not be more proud of our team, whether it’s serving our corporate partners or individual communities with important causes, we have the most dedicated and committed staff in the industry,” Brian Holland, CEO of Fleet Advantage, said. “The economic challenges look to remain ahead of us in 2023, but we are equipped with the most advanced analytics, innovative data-driven insights, and flexible solutions available in the transportation industry to help our partners remain agile in running their businesses with the lowest possible operating costs. We are grateful that our clients continue to choose Fleet Advantage as their trusted advisor.”

Transportation stakeholders call for repeal of WWI-era excise tax

The Trucker News Staff - February 22, 2023

WASHINGTON — A group of transportation and trucking stakeholders are calling for Congress to repeal the Federal Excise Tax on heavy-duty commercial vehicles. According to a letter from the American Trucking Associations, American Truck Dealers and Zero Emission Transportation Association, the century-old tax is impeding the deployment of cleaner, more environmentally friendly trucks on the nation’s roads. The joint letter was sent to congressional leadership on Feb. 21. The heavy-duty excise tax was established in 1917 to defray the costs of World War I and today adds 12% to the cost of a new truck, creating a major disincentive for trucking fleets small and large to modernize their equipment and replace older tractors with new, low-emission power units. The FET can add more than $50,000 to the price of the latest low- or zero-emission vehicle, making these investments cost-prohibitive for smaller fleets. Over 90% of U.S. motor carriers operate six or fewer trucks. “If Congress is serious about safety, the environment and jobs, then repealing the FET should be front-burner,” ATA President and CEO Chris Spear said. “It’s time to shelve this World War I era tax and starting putting the best equipment on our roads.” “The federal government wants heavy-duty trucks to be cleaner or emission free, but slaps a 12 percent tax on the newest, greenest trucks. If the goal is to reduce emissions, repealing the counterproductive FET is a good place to start,” Scott McCandless, ATD chairman and president of McCandless Truck Center LLC of Aurora, Colorado, said. “The federal excise tax harms American truckers and fleet operators by inflating the cost of heavy-duty trucks and limiting access to the many economic and public health benefits that come with transportation electrification,” Albert Gore, executive director at ZETA, said. “Medium and heavy-duty trucks account for 24% of all transportation carbon emissions in the United States but represent only 4% of vehicles on the road. It is time to accelerate our movement towards modernized transportation fleets, and we must enable our nation’s fleet operators and truckers to join in this effort.” In the 117th Congress, U.S. Senators Todd Young (R-Ind.) and Ben Cardin (D-Md.), and Representatives Doug LaMalfa (R-Calif.) and Chris Pappas (D-N.H.) introduced the Modern, Clean, and Safe Trucks Act (H.R. 8116/S. 2435), bipartisan and bicameral legislation to repeal the tax.

Inaugural bulk loads conference gives voice to often-unheard industry segment

Linda Garner-Bunch - February 22, 2023

SPRINGFIELD, Mo. — On Feb. 8-9, members of the bulk loads freight industry gathered at the Bass Pro Shops White River Conference Center to share ideas, discuss issues and learn new strategies unique to the segment. Nearly 200 people — including drivers, owner operators, business owners, dispatchers, service providers and others — attended the exclusive inaugural event, hosted by Springfield, Missouri-based BulkLoads. Jared Flinn, operating partner at BulkLoads, told The Trucker he was pleased with the turnout and response from attendees and sponsors. “To my knowledge, (this conference) was the first one ever for just bulk freight,” he said, adding that he’s attended trade shows and conventions for trucking and for agriculture, but none that tied the two together specifically for the bulk loads industry. On Feb. 8, attendees enjoyed a chance to network and enjoy cocktails and appetizers before and after the introductory session. “This is where carriers, brokers and shippers in the bulk industry all got to network,” said Tyler Allison, marketing director for BulkLoads. “Most of these guys have done business with each other online or via email for years. During this conference, they were able to meet face-to-face.” The conference featured a variety of presentations covering topics such as smart freight funding, electronic logging devices (ELDs), team building and more. The two panel discussions, one centering around issues faced by the bulk loads segment and the other focusing on technology in the industry, were well-received, according to Flinn. “We actually talked about issues that need to be talked about,” Flinn said. “I think the highlight of the conference was our panel discussions. We had so much engagement from our audience.” A few of the topics covered include driver recruiting, double brokering, safety and compliance, insurance premiums and fuel hedging. “They were talking about their real struggles. ‘How do we solve this? How do we solve detention? How do we do this?’” Flinn said. “I heard so many people say afterwards, ‘I’m so glad they got up there. They said what I’ve been feeling all along – the struggles and pains. I’m glad people are bringing a voice to this.’” In addition, attendees heard from two keynote speakers, trucking industry expert Tim Brady and sales trainer and coach Greg Martinelli. BulkLoads plans to host its second annual conference early next year. In addition to operating a load board exclusively for the bulk loads industry, Bulkloads provides a network for bulk commodities and transportation, connecting and interacting through community-drive load boards, forum discussions, instant messaging and member directories. Event sponsors included Konexial, Bulk Insurance Group, Smart Freight Funding, Bulk TMS, Cover 3 Consulting, Ingredient Logistics Services Inc., Spirit Factory Promo Products and GrainWorx.

Container Port Group opens new terminal at JaxPort

The Trucker News Staff - February 22, 2023

CLEVELAND, Ohio – Container Port Group (CGP) has opened a new terminal in Jacksonville, Florida. A CPG statement said the new terminal reflects the company’s commitment to growth in strategic markets and expands the company’s existing footprint in the Southeast region. “The Jacksonville Port Authority (JaxPort) continues to invest in their facility, and several of our commercial partners already utilize the port for both imports and exports, making now the perfect time for us to plant our flag in this market,” Joey Palmer, president of CPG, said. “We are confident that we will swiftly establish ourselves as the premier trucking outfit in the Jacksonville market, strengthening our position in the Southeast and furthering our vision of covering every port and every rail across the US.” CPG officials lauded the city of Jacksonville, saying that it “provides an ideal geographic location to capture additional market share in the Southeast region. Its recently completed harbor deepening project provides a 47-foot-deep channel, which can accommodate newer and larger post-Panamax vessels. And with three major highways, three major railroads, and 152 million square feet of space near the port for distribution and warehousing, CPG and its customers can be assured that their freight will move quickly to and from the port.” CPG intends to expand its fleet by contracting drivers who are certified to handle hazardous materials and tankers. To facilitate the rapid growth of the CPG fleet in the market, the Jacksonville terminal will have a fleet of private chassis on site, elevating driver efficiency in and out of ports and terminals. Drivers can also utilize DrayPal, CPG’s custom mobile app, to help streamline their day-to-day operations and improve the efficiency of their business. “We are already seeing a spike in driver applications as word of our new terminal spreads and they hear about the experience and tools we provide to help them succeed, like DrayPal, private chassis, our family-like atmosphere, and more,” CPG Terminal Manager Dawn Cline said. “Our expansion plans include helping NVO and BCO partners who need a drayage provider with nationwide network strength that is properly equipped to handle all of customers’ dray business. Ultimately, our goal is to leverage this terminal to move more volume throughout the entire Southeast region.” CPG said that “investing in its new Jacksonville terminal highlights commitment to delivering coast-to-coast drayage services to customers and expanding driving opportunities for independent contractors in the region. Recently, CPG has reinforced its commitment to designing custom solutions for customers with the introduction of Dedicated Services, providing reliable capacity and delivering exceptional intermodal services.”

Freight rates should rise in second half of year, but rising fuel costs could offset gains

Cliff Abbott - February 22, 2023

Shipments declined by 3.2% in January from December levels, but no more than they usually do, according to the latest Cass Freight Index for Shipments, part of a monthly report issued by Cass Information Systems. The Cass report called the January results “better than expected” and credited mild weather, along with improved auto production, for the results. The index rose 4.3% from January 2022 levels; however, COVID was rampant at that time and shipment levels were depressed. Cass Indexes are compiled from customer data and cover multiple modes of transportation, including truck, rail, pipeline, ship and air. The Cass Truckload Linehaul Index, which the company refers to as a “broad market indicator,” fell by 0.9% from December and was down 5.6% from January 2022. That’s an indication of spot rates that fell last year and contract rates that are still declining. The report noted, “With spot rates already down significantly, the larger contract market is likely to continue adjusting down more gradually but in the same direction.” The Cass report, which includes comments by ACT Research Vice President and Senior Analyst Tim Denoyer, predicted a mild setback for freight volumes: “Although LTL and intermodal volumes are down significantly, outperformance in truckload volumes shows the freight downturn is still likely to be mild overall. We believe an accelerated bottoming process has begun in the freight rate cycle, with spot rates further below operating costs than ever before.” As the Cass report was coming out, ACT Research released its own analysis, using their For-Hire Trucking Index. Tim Denoyer commented on this report too, saying, “We’re now nine months into this freight volume soft patch with lower goods spending, overstocked retail and declining imports. The good news is that from a historical perspective, that means we’re closer to the end than the start.” Denoyer noted that in 2022 the power to set rates shifted to shippers as freight levels remained stagnant and the industry’s capacity continued to grow. As noted in the truck sales story on Page 19, carriers continue ordering both trucks and trailers at a brisk pace, anticipating profitable conditions in the market despite lowered rates. It may seem difficult to believe, but freight rates coming out of the COVID slowdown were so good that, even after declining, conditions are still good for profitability. “With capacity starting to slow and demand to recover eventually, the market should begin to rebalance in the not-too-distant future,” Denoyer said. Another release by ACT Research on Feb. 13 was even more optimistic. Entitled, “Best Recession Ever for Class 8 Trucking,” the report quoted from ACT’s latest “North American Commercial Vehicle OUTLOOK.” “We continue to expect a recession in the first half of this year leading to an incremental year-over-year decline in 2023 Class 8 build from 2022 as freight market weakness increasingly weighs on demand into the year’s second half,” said ACT President and Senior Analyst Kenny Vieth. He noted that rising interest rates probably won’t be high enough to impact truck buying. The typical freight-truck cycle is expected to enter a new phase in the second half of the year as truck production falls off. If the recession is short-lived, freight availability will increase as capacity, the number of trucks available to haul freight, tightens. At that point, rates will begin rising again. Dean Croke of DAT, in an interview with The Trucker, said he also feels that market is nearing bottom. His reasoning comes from the gap between contract and spot rates, which DAT measures and reports on. That gap has been shrinking, with contract rates continuing to decline to a point closer to spot rates. When an inversion occurs, when spot rates become higher than contract rates, it usually indicates a bottoming of the market. “At some point in the middle of the year, you could expect an inversion, maybe certainly in the second half of the year, so it looks like from a just a national average rate perspective that we we’ve reached the bottom link,” Croke said. Of course, no estimate of freight markets is complete without information about fuel pricing. According to the U.S. Energy Information Administration, the national average price for a gallon of diesel fuel was $4.44 as of this writing. That’s down considerably from the $5.23 per gallon price during the week of Thanksgiving in November 2022, but still higher than pre-COVID pricing. Further declines would certainly be welcome news by the trucking industry. Croke, however, thinks the demand for crude is bound to rise, causing price increases to levels we haven’t seen yet. “China is the second largest economy in the world and the largest importer of crude, and that economy is not open yet,” he said. “So, when it opens up fully, and the expectation is that you’d have to think that’ll put a drag on global crude supplies over the summer, and that could see diesel prices increase again.” While a mild recession might be welcome news and there’s a chance that freight rates will begin increasing, rising fuel costs could put a damper on the enthusiasm. It could be a twist on a classic saying — “one step forward, one step back.”

ATA President: California should not set nation’s emissions standards

The Trucker News Staff - February 21, 2023

WASHINGTON — American Trucking Associations President and CEO Chris Spear told Congress on Feb. 15 that the industry needed realistic national timelines and targets to reduce emissions, rather than allowing California and other states to drive standards. “The trucking industry starts with ‘yes,’ Spear testified before the Senate Environment and Public Works Committee. “ATA worked with the Environmental Protection Agency, producing Phases I and II emission reduction rules, as well as the SmartWay Transport Partnership – which has been a model of public-private cooperation. To date, 98.5% of all emissions have been removed from our tailpipes. In fact, 60 trucks today emit what one truck emitted in 1988.” Spear emphasized the gains — which include reductions of millions of tons of carbon, nitrogen oxide and particulate matter emissions — were the result of collaborative regulatory processes and realistic goals. “This is not a debate about if we get to zero, but when.” Spear said. “We’ll get there, just not on the timelines proposed by California. By excluding our industry in a mad dash to zero makes their timeline and targets not only unachievable, but guarantees they will fail. To get to zero, we must be honest and transparent about the road ahead. Sourcing rare minerals needed for millions of 5,000 pounds of truck batteries, the infrastructure needed to charge them and the additional electricity needed to power our trucks – full scale – doesn’t yet exist and won’t if you allow California to set the nation’s standard.” Spear said if California’s proposals are allowed to set targets and timelines for emissions reductions, it will certainly impact the industry and the supply chain – and Americans will feel those disruptions. “Over the next decade, trucks will be tasked with moving 2.4 billion more tons of freight than they do today – the moment that slows or stops, Americans, your constituents, will want answers,” he said. “The responsible approach is also the realistic approach. Achievable timelines and targets matter. We’re committed to a cleaner environment – we’ve proven that. We simply ask that we be realistic about the path forward. Do that, and we’ll post the best environmental gains possible.”

BlueGrace Logistics promotes Bonnie Beckmann

The Trucker News Staff - February 21, 2023

TAMPA, Fla. — BlueGrace Logistics announced Feb. 14 the promotion of Bonnie Beckmann to vice president of commercial operations and audit. In this new capacity, “Beckmann will lead audit and freight claims companywide, while pursuing innovative ways to leverage additional business opportunities across BlueGrace,” according to a news release. “Bonnie’s impact at BlueGrace is immeasurable and I am excited to see what new strengths she can bring to her role as vice president,” Adam Blankenship, chief operating officer and president of managed logistics at BlueGrace Logistics, said. Prior to BlueGrace, Beckmann worked for Centratech, eMDee Technology and Aerosonic in accounting and purchasing for the military aerospace industry working with customers, as well as vendors, such as Lockheed Martin, General Dynamics, Raytheon and Northrup Grumman.

Ascend partners with Volvo for autonomous transportation

The Trucker News Staff - February 21, 2023

ATLANTA, Ga. — Ascend has formed a partnership with Volvo Autonomous Solutions, which will make Ascend the first asset-based truckload carrier to reserve capacity for V.A.S.’s hub-to-hub autonomous transportation offering in the first lane planned for operation. “We are excited to begin testing autonomous, long-distance linehaul options within our network,” said Scott Stowers, President of Ascend Dedicated. “This partnership with V.A.S. closely aligns with Ascend’s continued efforts to transform the regional truckload sector by leveraging technology, building density, and offering driver-friendly routes and policies, all with the goal of providing unparalleled service to our customers.” Ascend Dedicated, the firm’s newest arm, is being built upon Dedicated Transportation Solutions LLC, which was acquired last year. Ascend Dedicated will pick up customer loads and transport them to V.A.S. hubs in Dallas and Houston, Texas. From there, V.A.S. will complete the onward linehaul movement to its destination hub, from which Ascend drivers will transport loads to their final destinations. “Whether it is additional capacity, keeping drivers closer to home, or improving road safety, autonomy holds enormous potential to transform the transportation industry,” said Nils Jaeger, President of Volvo Autonomous Solutions. “At Volvo Autonomous Solutions, we believe that the way to autonomy is through collaboration and the creation of solutions that are tailor-made for the specific needs of our customers. We are excited to collaborate with Ascend to better understand carrier needs and challenges while bringing all the benefits of autonomy to their business.” By working with V.A.S. and supporting the real-world development of this technology, the collaboration seeks to accelerate the advancement of autonomous driving technology. Central to this is ensuring vehicles have comprehensive capabilities to safely operate in their intended operational domain, and for the foreseeable future, all vehicles operated autonomously have a qualified driver on board. For more information about Ascend’s dedicated transportation offerings, please visit dtsolutions.net. For general information about Ascend, please visit ascend.net.

Uber Freight launches first electric truck pilot program

The Trucker News Staff - February 21, 2023

CHICAGO — Uber Freight, WattEV and CHEP have announced a joint effort to deploy electric trucks on select routes in Southern California. As part of this collaboration, WattEV will provide electric trucking capacity to Uber Freight shippers, starting with CHEP, according to a news release. “The pilot serves as an important milestone in electric freight transportation and establishes Uber Freight’s first EV deployment,” the news release noted. “As the industry experiments with sustainable alternatives to complement traditional capacity, this pilot will provide stakeholders with valuable insight into the logistical complexities of electrifying freight transportation. It will combine Uber Freight’s expansive network of digitally-enabled carriers with WattEV’s innovative electric fleet and charging infrastructure network. CHEP will be the first shipper to participate in the pilot, prioritizing electric capacity on the Southern California route.” Marisa Sánchez Urrea, director of Global Supply Chain Decarbonisation at Brambles, CHEP’s parent company, said that her company’s business relies on heavy-duty road transport, calling it “one of the biggest challenges to transition our value chain to net-zero emissions by 2040, CHEP’s long-term decarbonisation goal.” “This first electric truck pilot in the U.S., in partnership with Uber Freight and WattEV, is a step in the right direction as we move towards a net positive impact,” she added. “We are proud to partner with our carriers and our customers as we together scale up electrification opportunities and deliver on our shared decarbonization goals.” WattEV officials say their mission is to develop a nationwide network of heavy-duty charging facilities that will serve fleets of electric trucks. Via the Uber Freight platform, CHEP will be able to book, schedule and complete loads, track status and load KPIs and manage paperwork all in one place. “We are proud to be a zero emission transport solution of choice for Uber Freight and their customers,” said Salim Youssefzadeh, CEO of WattEV. “Combining our transport business and our Truck-as-a-Service model, we are able to use Uber Freight’s digital platform to serve the shippers and their customers with our zero-emission truck routes and services.” As electric trucks hit the road, environmentally-conscious shippers and customers are turning to electrified capacity to meet their transportation needs and achieve their sustainability commitments. In addition to the benefits of zero emissions and the absence of engine noise and fumes, widespread adoption of electric trucks will decrease the reliance on non-renewable fuels with volatile prices and reduce maintenance costs. “Electric trucks are finally here, and we’re proud to partner with WattEV to offer Uber Freight shippers even more ways to move freight more sustainably,” said Uber Freight Head of Sustainability Illina Frankiv. “Electric trucks will have a profound impact on logistics, and we’re excited to build the technology platform to enable their seamless integration into supply chains”

Weak heavy-duty orders in January, but strong medium-duty sales

The Trucker News Staff - February 21, 2023

COLUMBUS, Ind. – January’s heavy-duty orders were relatively weak, according to ACT Research‘s latest State of the Industry: NA Classes 5-8 report. It remains to be seen whether this represents a pause after robust year-end orders or the beginning of a broader pullback in demand. However, both HD and medium-duty seasonally adjusted retail sales were robust. “Heavy-duty retail sales rose 29% year-over-year to 29,200 units (23,765 nominal),” said Eric Crawford, Vice President and Senior Analyst at ACT Research. Crawford also stated that the 1,389 unit-per-day (UPD) rate was 22.9% higher than the year-ago rate, 15.5% higher than the full-year 2022 average, and up 4.5% month-over-month. He further noted that retail sales for classes 5-7 rose 6.1% year-over-year to 20,800 units (17,669 nominal), with a 993 UPD rate that was 1.0% higher than the year-ago rate, 10.3% higher than the sales rate averaged throughout 2022, and up 15.1% month-over-month. “Business activity in the truck industry rolls on, with retail sales seemingly unfazed by higher interest rates, as pent-up demand remains, for now,” Crawford said. “We expect this dynamic to shift in the second half of 2023, as the Fed continues its aggressive push to subdue inflation.”

ACT Research: Preliminary net trailer orders dip in January

The Trucker News Staff - February 20, 2023

COLUMBUS, Ind. — Preliminary net trailer orders dipped in January, with 24,200 units (22,000 seasonally adjusted) projected to have been booked during the month, according to ACT Research. Final January results will be available later this month. This preliminary market estimate should be within +/-5% of the final order tally, according to a news release. “We expected net orders to slow in January, after the explosion of orders in 2022’s final quarter,” ACT Research Director CV Market Research & Publications Jennifer McNealy said. “Despite the anticipated sequential decline, preliminary net orders were only 9% lower compared to the same month last year. This month’s data are simply a return to more normal levels, following the year-end surge.” McNealy said that nearly as soon as a build slot is available, there is a fleet ready to fill it with an order. She said demand remains strong, and with the backlog-to-build ratio near the 10-month mark, on average, fleets needing trailers continue to stay the course.” “Using preliminary January orders and the corresponding OEM build plans from the January State of the Industry: U.S. Trailers report (December data) for guidance, the trailer backlog should decrease by around 400 units when complete January data are released,” McNealy said. “That said, with orders being preliminary and the build number a projection, there will be some variability in reported backlogs when final data are collected.”

Love’s plans 25 new travel stops, renovations to existing stores in 2023

The Trucker News Staff - February 20, 2023

OKLAHOMA CITY — Love’s Travel Stops is planning major expansion work in 2023, adding 25 new stores and remodeling several existing locations. According to a news release, the company will also open 15 Love’s Truck Care and Speedco locations and add services and partnerships with top brands. “What Tom Love started in 1964 has evolved into more than a store that offers gas, and we’ll continue to push the envelope with the addition of new services, amenities and partnerships,” said Shane Wharton, president of Love’s. “Being innovative and strategic with what we do adds reasons for customers to choose us and we’ll continue to find new ways to offer good value at competitive prices across the Love’s Family of Companies.” In addition to opening 25 new locations in 2023, Love’s will soon announce plans to remodel existing stores over the next several years, “strengthening the company’s commitment to maintaining safe and clean locations. The plans include everything from bathroom updates to complete remodels. Stores undergoing updates will remain open during the process,” the news release stated. Customers will also see the continued expansion of Love’s-branded snacks and food items including trail mixes, beef jerky, cold-pressed juices and fresh food items like mac and cheese, quesadillas and BBQ offerings this summer. Love’s will also add 30 new restaurants, continuing to be one of the top restaurant providers in the U.S. with more than 1,100 locations. In addition to new food options, customers will see the expansion of Love’s RV network with the addition of 30 RV locations and 1,000 hookups bringing the total to more than 1,300 hookups across the country; the company will also add 80-100 additional Amazon Lockers bringing the total to more than 200; and new and exclusive deals for customers through the Love’s Connect app including the recently announced 10-cent-per-gallon fuel discount for gasoline and casual diesel drivers. The company recently announced exclusive partnerships with Interstate Batteries to offer customers Interstate-branded batteries, along with Daimler Truck North America to provide light mechanical warranty work on Freightliner vehicles adding another service point for customers.

Platform Science adds CAT Scale apps to services catalog

The Trucker News Staff - February 20, 2023

SAN DIEGO and WALCOTT, Iowa — Platform Science is adding CAT Scale’s Weigh My Truck and CAT Scale Locator Apps to its catalog of solutions, the two companies announced last week. “Platform Science’s new collaboration with CAT Scale empowers fleet operators to save drivers’ time and unlock new efficiencies as they weigh their trucks,” said Emilie Campbell, director of partner management at Platform Science. “With the addition of CAT Scale’s apps to Platform Science’s growing app catalog, fleets will have the flexibility to deploy a solution that makes the process of getting truck weights faster and easier in conjunction with other tools in the catalog and customize the platform to meet their specific needs.” CAT Scale’s Weigh My Truck app allows drivers to weigh and receive the results via their mobile device at any CAT Scale location — without having to leave the cab. A locked PDF file of the scale ticket is emailed to addresses specified by the driver for future reference. The app stores the driver’s payment information, trucking company name, truck number, trailer number, email preferences and historical weight transactions. Fleets can also set up accounts that allow driver management and provide back-end data files. The CAT Scale locator app, as the name suggests, helps drivers locate the nearest CAT Scale using their mobile device and plan their route. Drivers may also save their favorite CAT Scale locations. “We understand that time is money. The Weigh My Truck app and our CAT Scale Locator app are designed to help drivers use their time more efficiently,” said Heather DeBaillie, vice president of operations and marketing for CAT Scale. “With CAT Scale now a part of the Platform Science app catalog, fleets have the opportunity to make sure all their drivers have access to the tools that help streamline the weighing process.”

Roadrunner expands Smart Network with inbound service to Denver

The Trucker News Staff - February 17, 2023

DOWNERS GROVE, Ill. — Roadrunner is expanding its Smart Network with new inbound service to Denver. It marks the first new market opening in years, “continuing the momentum from recently announced transit time reductions across 130 major lanes and the launch of the next-business-day service Southern California-to-Chicago and Chicago-to-Southern California,” a news release stated. “Our first priority is our customers,” Phil Thalheim, chief linehaul network engineer at Roadrunner, said. “We constantly ask ourselves how we can enhance our network to better service their needs, and this resulted in us offering service to Denver. We are thrilled to expand our network to Denver, giving our customers one more destination to enjoy our fast transit times, minimal rehandle of freight, and outstanding customer service.” The Roadrunner team utilizes proprietary optimization technology to build direct loads and eliminate rehandling. According to the news release, “the company focuses on assuring the integrity of custodial control of customer freight through the use of its Driver Teams that execute over-the-road moves (with no customer freight ever moving on rail) via the most direct route possible, eliminating the need to re-handle and thereby reducing the risk of loss or damage.” The service to Denver marks the first step of new market expansions, with openings of Kansas City and Portland planned for 2023. “At Roadrunner, our value proposition is long haul metro-to-metro shipping,” Tomasz Jamroz, head of technology, operations and linehaul, said. “Opening Denver fits our strategic goal of becoming the best carrier moving freight directly from one part of the country to another and is really an important step in optimizing our network and further reducing transit times.”

BP reaches $1.3B deal to buy TravelCenters of America

The Trucker News Staff - February 17, 2023

HOUSTON – BP Products North America Inc. has announced that it has reached an agreement to purchase TravelCenters of America for $1.3 billion. The acquisition is subject to regulatory and TA shareholder approval, according to a news release. The transaction was unanimously approved by the TA Board of Directors. Citigroup acted as exclusive financial advisor to TA and Ropes & Gray as TA’s legal advisor in connection with the transaction. “TA’s network of highway sites will complement BP’s existing off-highway convenience and mobility business, enabling TA and BP to offer fleets a nationwide service.,” the news release stated. “In addition, BP’s global scale and reach is expected to bring advantages in fuel and biofuel supply as well as convenience offers for consumers.” The purchase will provide options to expand and develop new mobility offers including electric vehicle charging, biofuels, renewable natural gas and later hydrogen, both for passenger vehicles and fleets. By 2030, BP officials say they are aiming for around half of the company’s annual investment to go into these transition growth engines. Over 2023-30, it aims that around half of its cumulative $55-65 billion transition growth engine investment will go into convenience, bioenergy and EV charging, the news release stated. “This is BP’s strategy in action,” Bernard Looney, CEO BP, said. “We are doing exactly what we said we would, leaning into our transition growth engines. This deal will grow our convenience and mobility footprint across the US and grow earnings with attractive returns. Over time, it will allow us to advance four of our five strategic transition growth engines. By enabling growth in EV charging, biofuels and RNG and later hydrogen, we can help our customers decarbonize their fleets. It’s a compelling combination.” The acquisition is expected to bring around 280 TravelCenters of America sites, spanning 44 U.S. states nationwide, into the BP portfolio. These travel centers, which average around 25 acres, offer a full range of facilities for vehicles and fleet trucks, including more than 600 full-service and quick service restaurants, as well as truck maintenance and repair services. Around 70% of TA’s total gross margin is generated by its convenience services business, almost double BP’s global convenience gross margin. “Subject to approvals, we look forward to welcoming the TA team to BP,” Dave Lawler, chairman and president of BP America, said. “TA’s amazing nationwide network of on-highway locations combined with bp’s more than 8,000 off-highway locations have the potential to offer travelers and professional drivers a seamless experience for decades to come.” BP announced Feb. 15 that it plans to invest $1 billion in EV charging across the US by 2030. As part of the transaction, TA will enter into amended lease agreements with Service Properties, establishing long-term real estate access. BP looks forward to continuing TA’s existing strong relationship with SVC. The acquisition price of $1.3 billion, or $86 per share, represents a multiple of around six times based on last 12 months’ TA EBITDA. It is expected to add EBITDA for BP immediately, growing to around $800 million in 2025. “Today’s announcement that BP is acquiring TA for $86 per share is a result of the successful implementation of our turnaround and strategic plans,” TA CEO Jonathan M. Pertchik, said. “We have improved our core travel center business, expanded our network, launched eTA to prepare for the future of alternative fuels and improved our operating and financial results, none of which we could have accomplished without the hard work and dedication of our employees at every level.” It supports delivery of BP’s convenience and EV charging growth engine target of more than $1.5bn EBITDA in 2025 and aim for more than $4bn in 2030. BP expects the acquisition to be accretive to free cash flow per share from 2024 and to deliver a return of over 15%.

ACT Research: CVSA Road Check could be litmus test for spot rates

The Trucker News Staff - February 16, 2023

COLUMBUS, Ind. – The latest release of the ACT Freight Forecast, U.S. Rate and Volume OUTLOOK reported truckload spot rates, insights on the upcoming Commercial Vehicle Safety Alliance (CVSA) Road Check and freight cycle bottoming. “DAT dry van truckload spot rates are tracking toward $1.74 per mile, net fuel, in February, down from $1.83 in January,” Tim Denoyer, ACT Research vice president and senior analyst, said, “Against the prior-year period, dry van rates are down 34%, a cycle low, but we expect the declines to start to moderate from here as the bottoming process continues.” CVSA’s 2023 Road Check is scheduled for May 16-18 this year and will be a litmus test for spot rates, Denoyer said, adding that further declines in rates will accelerate the emerging capacity correction. “Truck driving is a very tough job, so it won’t be too hard to convince people to find something else to do as the financial stress of these low spot rates grows,” Denoyer said. “Just as the cure for high prices is high prices, the cure for low prices is low prices. While industry conditions are broadly loose, cost economics will drive a supply/demand balance shift in the spot market first, perhaps as soon as Road Check.” Denoyer added that the bottoming process is ongoing, and layoff announcements by transportation companies have begun. He said it will take time, but ACT Research predicts that labor attrition will begin this year and will be key to a stronger rate environment in late 2023. “The cycle-bottom phase features slowing capacity and thinning marginal capacity amid lower rates, preceding an early-cycle tight market,” Denoyer said. “We think both the cycle-bottom and early-cycle phases are possible in 2023.”

Mack Defense awarded contract for U.S. Army Common Tactical Truck program

The Trucker News Staff - February 15, 2023

ALLENTOWN, Pa. – Mack Defense has been awarded a contract to design, build and deliver trucks for the prototype and testing phase of the U.S. Army’s Common Tactical Truck (CTT) program. The prototypes will be tested and evaluated to determine the final requirements for the next generation of trucks to begin modernization and replacement of the Army’s fleet of approximately 35,000 heavy tactical trucks, according to a news release. The U.S. Army’s requirements for the CTT program dictate a modern, scalable commercial-based platform with advanced safety technologies, increased off-road mobility, advanced cybersecurity, open systems architecture, improved fuel efficiency and commonality across truck variants to promote enhanced sustainability. “We were confident in our ability to meet the needs outlined by the U.S. Army when we submitted our initial bid,” David Hartzell, president of Mack Defense, said. “Being chosen for the prototype phase of this program confirms that the Army recognizes Mack Defense has the experience in adapting our commercial based products, technologies and global value chain needed to meet the strict requirements outlined for the CTT.” Mack Defense will provide three prototype vehicles to the U.S. Army by January 2024 to be tested by the Army. “The vehicles include an on-road tractor, an off-road tractor, and a load-handling system truck each based off our commercial-based vehicle platforms and technologies modified to meet the strict requirements of CTT,” Jack Terefinko, CTT program manager at Mack Defense, said. Upon completion of the prototype evaluations and testing in 2025 the Army is expected to launch a separate competition for a production contract for the modernization of the heavy tactical vehicle fleet. Army officials have stated that an initial production contract could be over 7,000 trucks valued at more than $5.1 billion. Mack Defense is performing two major defense programs of record, each with a scope that directly aligns with the CTT. Both projects use modified, commercial-based vehicles from the extensive global Volvo Group network.

Arpin International Group acquires Florida-based Stephens Moving Services

The Trucker News Staff - February 14, 2023

WEST WARWICK, R.I. – Arpin International Group has announced its acquisition of Stephens Moving Services of Cape Coral, Florida. This acquisition “will facilitate the continued growth of Arpin’s transportation management solutions in North America,” a news release stated. “Arpin is excited about its continued expansion into Canada,” Peter Arpin, president of Arpin International Group, said. “The U.S. and Canada are each other’s largest trading partners, representing $125 million in cross-border moves annually. The acquisition of Stephens Moving Services enables Arpin to provide its world class moving services and bonded warehouses to major Canadian markets — especially in the provinces of Alberta, British Columbia, Ontario, and Quebec,” Arpin said the company’s long-term growth strategy includes maintaining a diversified portfolio, adding that “the acquisition allows Arpin International Group to establish a stronger foothold in the highly competitive cross-border private residential market.” “After more than 45 years servicing United States/Canada cross-border relocations, I cannot think of a better partnership for our clients and customers than Arpin International Group,” Tom Stephens, president of Stephens Moving Services, said. “My long-standing relationship with the Arpin’s — as a former vice president and agent before launching Stephens Moving Services — assures me that Arpin International Group is unmatched in talent and resources with a proven track record in the international moving market.” Tom Stephens will work with Arpin’s management team to facilitate a smooth and successful transition.

ACT Research: 2023 looking healthy for Class 8 sales — so far

The Trucker News Staff - February 14, 2023

COLUMBUS, Ind. – ACT Research continues to see healthy sales and build trends for Class 8 into 2023, despite apparent stumbling freight picture, higher financing costs and increasingly restrictive credit availability. Pent-up vehicle demand and still elevated carrier profits in early 2023 continue to provide a supportive environment for new equipment, ACT’s latest release of the North American Commercial Vehicle OUTLOOK reported. “We continue to expect a recession in the first half of this year leading to an incremental year-over-year decline in 2023 Class 8 build from 2022 as freight market weakness increasingly weighs on demand into the year’s second half,” Kenny Vieth, ACT president and senior analyst, said. “While the Fed may continue raising interest rates in 25-basis point increments longer into 2023 than currently envisioned, we do not believe the pace of rate hikes will be aggressive enough to sharply impact commercial vehicle market performance.” Vieth said the industry is entering 2023 with a fair amount of visibility, thanks to a robust backlog. “While down year-over-year, the December-ending Class 8 backlog represents the fourth highest year-end backlog on record,” Vieth said. “With this as context, our call for strong production in 2023 is hardly a stretch. That said, we do expect softening, as lower freight volumes and rates, higher costs, improved equipment availability, and the gradual exhausting of pent-up demand begin to exert downward demand pressure.”

Teamsters ready to ‘fight like hell’ in upcoming negotiations between TForce, ABF

The Trucker News Staff - February 13, 2023

WASHINGTON — The International Brotherhood of Teamsters is getting ready to “fight like hell” in upcoming national negotiations on new collective bargaining agreements with TForce Freight and ABF Freight. The outcome will affect more than 15,000 Teamsters who drive for the companies. The current ABF agreement expires June 30, and the TForce agreement expires July 31. “Our freight members are one of the Teamsters’ biggest priorities, and we are ready to fight like hell at the table to get the very best contracts at TForce and ABF,” said Teamsters General President Sean M. O’Brien. “The day our administration took office was the day concessions to the freight industry ended. We’re eager to get to work on negotiating contracts that raise standards and rebuild this industry for workers.” TForce Freight is a subsidiary of Canadian-based TFI international which purchased UPS Freight for approximately $800 million. The sale caught the Teamsters by surprise, leaving many concerned for their future. Pensions earned so far are protected by law and the current contract. TForce Freight is responsible for making contributions for the life of the contract. Teamsters are concerned because future accruals and benefits will be on the table during the negotiations, with the possibility they could be frozen or reduced. Another concern for the Teamsters is the company’s national base wage and national wage increases. Teamsters said they are concerned about CEO Alain Bedard’s comments about regionalizing wage rates, turning away from the current regional model. “If you compare the base salary versus the other two unionized carriers TForce has the most expensive salary,” Bedard said. “But, what I see though, is that in some markets our base salaries are too low and other markets they are too high. This is because it’s a kind of national grid that we have that done because the last negotiation was done mostly by UPS people.” Bédard noted on Feb. 6 that TFI International is also interested in operational combinations with the U.S.-based less-than-truckload carrier ArcBest Corp, which owns ABF. The Teamsters National Freight Industry Negotiating Committee met in Washington, D.C., yesterday to review the union’s proposals for upcoming contract negotiations with TForce Freight. “We are ready, we are militant, and we will win strong national contracts for Teamster members at TForce and ABF this year,” said Teamsters Freight Division Director John A. Murphy. “Our negotiating team isn’t going to back down. We have a plan and a vision focused entirely on getting our freight members what they deserve.” O’Brien and Murphy will chair national negotiations. The negotiating committees will be made up of leaders from around the country as well as rank-and-file members. The Teamsters Freight Division also will enter national negotiations with YRC Freight in 2024.