Business Archives

Bergey’s Truck Centers becomes second Volvo Trucks Certified EV Dealer in New Jersey

The Trucker News Staff - January 26, 2023

GREENSBORO, N.C. — Volvo Trucks North America has named Bergey’s Truck Centers as the second Volvo Trucks Certified Electric Vehicle Dealer in New Jersey. The dealership’s Trenton, New Jersey, location is the first of its 17 locations to complete the necessary sales and service team training and facility upgrades to become a certified dealership, according to a news release. “Fleets in the dense urban regions along the East Coast of the U.S. are increasingly recognizing that the battery-electric Volvo VNR Electric is ideally suited for their local and regional distribution routes,” Peter Voorhoeve, president of Volvo Trucks North America, said. “We continue to expand our Volvo Trucks Certified EV dealership network to support fleets across North America to ensure they are choosing the right configuration of the Volvo VNR Electric for their own unique routes and doing so in the most cost-effective way, accessing all available grants and incentives.” Sales representatives at Bergey’s Truck Centers’ Trenton location are trained to help customers identify and apply for public funding on the federal, state and local levels to offset purchase costs. “The dealership group is prioritizing the certification process for areas with the most customer demand and available incentives, and currently has four other locations working on the rigorous certification process,” the news release stated. Bergey’s has 17 dealerships in Delaware, Maryland and Pennsylvania, as well as two additional locations in New Jersey. The Trenton location has two technicians. The dealership has also made the necessary facility upgrades to have two EV service bays with mobile chargers and advanced diagnostics tools to safely perform battery-electric truck maintenance and repairs for trucks in operation. Bergey’s has eight dedicated parts sales locations and maintains a stock of key parts and components for the VNR Electric model to minimize service times. “One of Bergey’s core values is a commitment to continuous improvement, and we wanted our sales and service teams to be ready to guide our customers as they look to start that next step in fleet sustainability,” Mark Brown, vice president of service at Bergey’s Truck Centers, said. “We plan to continue our training and facility upgrades in preparation for adding other Bergey’s Truck Center locations as demand for the battery-electric trucks continues to grow.” Volvo Trucks has certified EV dealers in California, Indiana, Massachusetts, Minnesota, New Jersey, New York, Ohio, Pennsylvania, Tennessee, Texas and Virginia, as well as in British Columbia, Ontario, and Quebec, Canada, with numerous dealerships across North America finalizing their certifications in 2023.

ACT Research: 245K used class 8 tractors sold in 2022

The Trucker News Staff - January 26, 2023

COLUMBUS, Ind. – Used Class 8 tractor retail volumes (same dealer sales) increased 16% month-over-month in December 2022. Average mileage was down 4% month-over-month, with average price and age down 2% and 3%, respectively, according to the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research. Longer term, average price and miles were lower, with age flat year over year. The report from ACT provides data on the average selling price, miles and age based on a sample of industry data. The report also provides the average selling price for top-selling Class 8 models for each of the major truck OEMs — Freightliner (Daimler); Kenworth and Peterbilt (Paccar); International (Navistar); and Volvo and Mack (Volvo). The report is used throughout the industry, including commercial vehicle dealers, to gain better understanding of the used truck market, especially as it relates to changes in near-term performance. “Activity typically sees a moderate increase in December, so the increase was directionally consistent with expectations,” Steve Tam, vice president at ACT Research, said. “We ascribe the relative strength to the elevated new truck sales in November and December, which helped to sate pent-up demand in the inventory-starved used truck market. Tam said that while the economy and freight markets are slowing, cooling used truck demand, there are many used truck buyers who have been forced to hold onto their trucks beyond their expiration dates. “Used Class 8 retail truck sales for December were still meaningfully weaker for longer-term comparisons, falling 30% year-over-year and 35% for all of 2022 compared to full year 2021,” Tam said. “We estimate the total Class 8 used truck market sales for 2022 were 245,000 units, down from 265,000 (-7.5%) in 2021.”

‘Safety cushion’ can mean life or death

Cliff Abbott - January 26, 2023

While driving, the space between your vehicle and the one in front of you is your only protection from a rear-end collision. Every professional driver understands this truth. Most are taught early in their careers that a fully loaded tractor trailer that’s going 60 mph needs more than the length of a football field to stop — and that’s when conditions are good. Yet, on any highway with moderate to heavy traffic, it won’t take long to spot someone driving an 18-wheeler and following the vehicle ahead too closely. The results can be deadly. A four-wheeler is no match for a large truck, and for a rig to tailgate the smaller vehicle is tantamount to a death sentence for the occupants if anything goes wrong. It’s a deadly practice, but some drivers either don’t understand or don’t care, or a combination of both. Not only is the practice a foolish one, but it can also cost a driver’s job or a career, even if there isn’t an accident. Following too closely is listed as a “serious violation” by the Federal Motor Carrier Safety Administration (FMCSA). Two serious violations within a three-year period are an automatic 60-day disqualification for the driver. Other violations listed as “serious” are excessive speeding (15 mph or more over the limit), reckless driving, and improper or erratic lane changes. The FMCSA doesn’t disqualify for a first offense, but many carriers consider serious offenses to be grounds for termination. You may not be fired until you’ve had your day in court — but you can be suspended without pay until your court date. Finding another driving job will be very difficult with a conviction for a serious violation on your record. Actually, you don’t even need to be convicted. A warning for a serious violation — or even a ticket for which you were found “not guilty” in court — can still appear on the Pre-Employment Screening Program (PSP) report ordered by the carrier you apply to. There’s a process for having a non-conviction removed, but it takes months … and your request may be denied. Part of the reason for this strictness is insurance, which is a big expense for carriers. That expense gets bigger when there are drivers with records of serious violations on the payroll. If litigation happens due to an accident, the plaintiff’s attorney will demand safety records from the carrier. If a carrier hires or retains drivers with serious violations on their records, lawyers can use that information to make a case that the carrier itself isn’t safe. Space is the key to helping a driver maintain a safe driving record. The space in front of your vehicle is most important — but it’s not the only space you should be aware of. It’s good practice not to allow other vehicles to travel alongside you for any length of time. A gust of wind, an object in the roadway or even a sneeze can make your rig swerve to the left or right, putting vehicles alongside yours in danger. Some defensive driving courses teach drivers to have an “escape route” they can take if traffic ahead stops suddenly. Your best escape route is the space ahead. Speed is another important piece in the safe-driving equation, and speeding is worse today than ever. Because of electronic logs, just-in-time shipping practices and a shortage of available parking in some areas, drivers attempt to make the most of their available driving time each day. Some drivers choose to exceed the speed limit in an effort to cover as many miles as possible before time runs out. Speeding is a practice that runs counter to safety principles, but many drivers feel that it’s a necessary part of earning a paycheck on the road. Aside from the risk of earning a serious-level violation because of excessive speeding, the faster you go, the more your stopping distance increases. Plus, traveling faster often has other results, such as the need to change lanes frequently to avoid slower traffic. When drivers can’t avoid traffic, they often wind up following other vehicles too closely. Keep in mind that it’s possible to “speed” even when driving at or below the speed limit. When road conditions are bad or visibility is impaired, you can be moving well under the speed limit but still driving too fast for conditions. If roads are wet or icy, the results can be catastrophic. Parking lots and shipper or receiver yards are also areas where speeding occurs. Drivers must be prepared and able to stop if a truck pulls out from a dock or a pedestrian walks in front of the vehicle. Speed is also related to the space around your vehicle — in fact, speed is usually how you adjust that space. If there isn’t enough space in ahead, slow down. Sure, someone might occupy that space, including cars that were behind you and passed. The reality is that they had to be traveling faster to pass your truck; if they don’t change speed, they will quickly pull away, giving you more following distance. If they don’t, however, it becomes your responsibility to reduce your speed until there is sufficient space in front again. Some truckers solve the problem by driving one or two mph slower than surrounding traffic, allowing faster vehicles to pass them. Other drivers, however, try to go a little faster, hoping to eventually get around the heavy traffic. The stress of driving a tractor-trailer is high enough. Trying to get ahead through a ton of traffic is a sure way to drive stress levels higher. Conversely, slowing down and letting the traffic do its thing is far more relaxing. Finally, remember this: No driver has ever emerged from an accident scene wishing they had been driving faster or following more closely.

ATA’s Truck Tonnage Index climbs 0.4% in December

The Trucker News Staff - January 25, 2023

WASHINGTON – American Trucking Associations’ (ATA) advanced seasonally adjusted For-Hire Truck Tonnage Index rose 0.4% in December 2022 after a 2.5% decrease in November. In December, the index equaled 115.2 (2015=100) versus 114.8 in November. “Despite the small gain in December, for-hire truck tonnage clearly decelerated during the final quarter in 2022,” ATA Chief Economist Bob Costello said. “In fact, tonnage outperformed some other key metrics that drive truck freight, like housing starts and factory output during the final month of the year. This is probably because contract truckload freight is still outperforming the spot market and less-than-truckload freight after underperforming both of those sectors in 2021.” For all of 2022, tonnage was up 3.4%, which was the best annual gain since 2018. “Despite weakening in the second half, 2022 overall was a solid year for truck freight tonnage,” Costello said. “The index’s yearly gains were primarily driven by strength in the first half of 2022, so despite a marked slowdown as the year ended, for the year as a whole, tonnage posted a very solid year overall.” November’s decline was unchanged from the Dec. 20 news release. Compared with December 2021, the SA index increased 0.3%, which was the 16th straight year-over-year gain, but the smallest over that period. In November, the index was up 0.8% from 2021. The not seasonally adjusted index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment, equaled 112.6 in December, 1.8% below the November level (114.6). In calculating the index, 100 represents 2015. ATA’s For-Hire Truck Tonnage Index is dominated by contract freight as opposed to spot market freight. Trucking serves as a barometer of the U.S. economy, representing 72.2% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled 10.93 billion tons of freight in 2021. Motor carriers collected $875.5 billion, or 80.8% of total revenue earned by all transport modes. ATA calculates the tonnage index based on surveys from its membership and has been doing so since the 1970s. This is a preliminary figure and subject to change in the final report issued around the fifth day of each month. The report includes month-to-month and year-over-year results, relevant economic comparisons and key financial indicators.

Trouble on the horizon: recession could make profits harder to come by in 2023, but still attainable

Cliff Abbott - January 25, 2023

Closing out 2022, the December Cass Freight Index for Shipments, published monthly by Cass Information Systems, indicated a decline of 3.9% in total shipments over December 2021. In the same report, shipping expenditures declined by 4.3% from December 2021, and by 4.2% from the previous month of November. The report noted that holiday shipping volumes were “flattish” compared to 2021. The Cass Indexes use data from Cass customers to report shipments from trucking, ship, rail, pipeline and other modes of transport. While trucking makes up a substantial share of the shipping data, other modes can impact the results. The issue for most truckers is what will happen with freight availability and rates. For the most part, it depends on what the economy does. Inflation had impacted budgets everywhere, from trucking business operations to the purchase of groceries back at home. In its December Commercial Vehicle Dealer Digest, ACT reported, “the longer inflation remains elevated, the more aggressively the Fed will respond with higher interest rates. This increases the chances of a sharper decline in economic activity, and 1) results in fewer commercial vehicles required to facilitate this subdued activity and 2) will likely exacerbate downward pressure on spot and contract rates, adversely impacting carrier profitability.” Alan Greenspan, who served as Federal Reserve Chairman under four U.S. presidents and who headed the U.S. Central Bank for almost 20 years, believes there is a recession coming. In an investment commentary released by his current employer, Advisors Capital Management, Greenspan said, “a recession does appear to be the most likely outcome at this time.” Anyone paying attention to the news knows post-pandemic inflation has raised consumer prices accordingly. In December, the annualized rate of inflation actually dropped to 6.5% after reaching a high of nearly 9% earlier in the year. To counteract the effects of inflation and slow the economy, the Federal Reserve raised its target interest rate from near 0% at the start of the year to the current 4.25% to 4.5%. Further increases are expected. The Cass report containing the indexes said, “After a long downtrend in 2022, the recent bounce in spot rates and tightening in the spot/contract spread suggest a bottoming truckload rate cycle.” The Cass Truckload Linehaul Index, based on the $37 billion in freight bills the firm handles annually, measures fluctuations in per-mile truckload linehaul rates. It does not factor fuel and accessorial costs. The report uses January 2005 as a baseline score of 100. The Cass Truck Linehaul Index for December was 150.5, indicating that freight rates were 50.5% higher than they were in January 2005. While that number seems positive, note that the index reached 168.6 back in May but has steadily fallen in the seven consecutive months since that high point. The good news for trucking businesses that depend on the spot market is that spot rates are holding steady — it’s contract rates that are expected to continue falling for the first half of 2023. As carrier-shipper contracts reach expiration dates, new contracts are being negotiated, many at rates closer to current spot rates. The storm cloud on the horizon is the looming recession. When the economy contracts, there is less freight to haul — and, thanks to a record-setting December for new Class 8 truck sales — more trucks to haul it. The law of supply and demand dictates that rates must fall. How far they’ll fall is a matter for debate. Spot rates, according to data received from DAT Freight and Analysis, have rebounded slightly. Average dry van rates that sank to $1.69 the second week of November ended the year at $1.94. Refrigerated rates followed a similar path, from a low of $2.02 in October to $2.34 at year-end. Flatbed rates hit $1.99 as December started but rose to $2.11 as the new year dawned. One factor in the spot rate increase was undoubtedly the holidays, when many truckers took time off, leaving fewer trucks for available shipments. During Christmas week, DAT reported the number of loads posted on their load board for every truck posted was 5.57 for van, 12.9 for reefer and 14.21 for flatbed. Another DAT report that sheds light on the subject is the DAT Aggregate Truckload Spot/Contract Rate Spread. The graph highlights a simple premise: The gap between average spot rates and contract rates often indicates the direction of the market as a whole. For example, when spot rates began falling in June, average contract rates were still climbing. Prior to the fall, spot rates had actually exceeded contract rates since the first quarter of 2000. As 2022 came to a close, that situation reversed, with contract rates jumping to more than 60 cents per mile higher. That gap shrank to about 45 cents at the end of the year. The DAT report calls this “a key signpost of this new stage of the cycle, even green shoots of a new rate cycle.” That could be welcome news for owners of small trucking businesses. As contract freight rates continue to fall and sales of new Class 8 trucks hit the expected decline, spot rates should begin strengthening. When asked about recession, Eric Crawford, vice president and senior analyst for ACT Research, says his firm is predicting a mild one. “For 2023 the key theme is going to be rebalancing, and rebalancing is going to come thanks to a recession,” he said. “We’re in the mild camp, given some of the good news that we’re seeing on inflation.” Those who may be wondering about trucking profits in 2023 might be cheered by another Crawford comment. “We’re still forecasting profitability to go down, year over year, by a wide by a wide margin,” he said, “but to contextualize where we’re going to be is still maybe the fourth best year on record, from a profitability perspective.”

Fleet Advantage expands senior leadership by promoting 2

The Trucker News Staff - January 24, 2023

FORT LAUDERDALE, Fla. – Fleet Advantage’s Katerina Jones has been promoted to chief marketing officer, and Matt de Aguiar has been promoted to chief operating officer. The announcements were made at the end of December. Jones has been a member of Fleet Advantage for more than eight years and has more than 20 years of “client-centric experience,” a news release stated. “She plays a role in Fleet Advantage through strategic campaigns and customer programs. Jones received numerous awards in 2022 and was recently named a 2022 Top Woman in Equipment Finance by Monitor magazine,” according to the news release. “In addition to her marketing responsibilities, Katerina will also continue to be involved with advancing the company’s business development and customer relations efforts.” De Aguiar was previously Fleet Advantage’s Chief Strategist to the CEO, where he was focused on increasing collaboration, workflow discipline and overseeing internal and external processes, the news release stated. He has experience with high growth companies with a background in private equity and public accounting. De Aguiar has been with Fleet Advantage for almost three years and “has helped the company to address some systemic challenges while fostering greater collaboration between teams and ongoing projects,” according to the company officials. In his new role, de Aguiar will be tasked with improving internal processes and ensuring the company has the systems and processes in place to support its growing business and provide exceptional customer service to clients. “We are extremely proud of Matt, Katerina, and our entire team, as their commitment to industry excellence has been on full display and are incredibly excited about the prospects of things to come in 2023,” Brian Holland, president and CEO of Fleet Advantage, said. “Matt has consistently demonstrated his business acumen and ability to simplify, streamline and enhance our workflows, having championed numerous process improvements; while Katerina has been instrumental in helping our sales team penetrate new accounts and secure multiple awards for the company.”

General Truck Sales becomes 1st Volvo Trucks Certified EV Dealer in Indiana

The Trucker News Staff - January 24, 2023

GREENSBORO, N.C. — Volvo Trucks North America dealer General Truck Sales has earned the Volvo Trucks Certified Electric Vehicle Dealer designation at two of its flagship locations in Toledo, Ohio, and Pendleton, Indiana. General Truck Sales’ Pendleton dealership is the first official Volvo Trucks Certified EV Dealer in Indiana, and its Toledo dealership is now the second in Ohio, according to a news release. “We are excited to start the new year adding another new state into our expanding network of certified EV dealerships, as well as to see the trend continue of our dealer partners certifying more than one location at a time,” Peter Voorhoeve, president of Volvo Trucks North America, said. “Our goal of developing a widespread electromobility ecosystem of support for our battery-electric trucks is happening at an incredible rate. We now have more than 20 Volvo Trucks Certified EV Dealerships in 11 U.S. states and three Canadian provinces supporting Volvo VNR Electric deployments.” General Truck Sales is a four-time Volvo Trucks Dealer of the Year award recipient, the news release stated. Additionally, the dealer’s service team has two technicians at each location that have been fully trained and equipped to safely perform battery-electric truck maintenance and repairs for trucks in operation. General Truck Sales also has a 50kW electric vehicle charger at each location with multiple outlets to provide flexibility in charging locations. “We see the freight transportation industry’s acceleration towards alternative fuel and zero-emissions vehicles and are excited to help Midwestern fleets as they move towards the future of heavy-duty transport,” Steve Bassett, president of General Truck Sales, said. “Achieving the Volvo Trucks Certified EV Dealer designation has been a guiding goal for our leadership team, so our two newest facilities in Pendleton and Toledo were actually designed to support a future expansion into electric vehicles. Our more progressive customers see the emerging need and value of reducing their carbon footprint and are getting increased requests from the shippers they work for to make the transition to zero-tailpipe emission battery-electric trucks.” Both the Pendleton and Toledo locations have two dedicated service bays with diagnostic tools to service battery-electric trucks, including the personal protective equipment for the technicians working with the high-voltage systems, according to the news release.

Freight trucking rates continue downward trajectory

The Trucker News Staff - January 24, 2023

COLUMBUS, Ind. — Volumes and supply-demand balance increased in December 2022 while freight trucking rates continued to decline, according to ACT Research’s latest release of For-Hire Trucking Index. The ACT For-Hire Trucking Index is a monthly survey of for-hire trucking service providers. “We’re now nine months into this freight volume soft patch with lower goods spending, overstocked retail inventories, and declining imports,” Tim Denoyer, vice president and senior analyst at ACT Research, said. “The good news is that from a historical perspective, that means we’re closer to the end than the start.” ACT Research converts responses into diffusion indexes, where the neutral or flat activity level is 50. “Pricing power clearly shifted to shippers in 2022, but the recent stabilization hints the bottoming process is beginning,” Denoyer said. “Capacity continues to grow, with pent-up equipment demand still red hot, and freight demand is down, leaving the market balance loose near-term.” Denoyer said the Driver Availability index remained at a cycle high of 57.7, reflecting medium and large fleets that act as safe havens in times like these. “We also find the sharp slowdown in BLS trucking employment data interesting with regards to the industry at large,” Denoyer said. He said the supply/demand balance reading of 40.8 is better than its worst levels of recent months in the 37-38 range, signaling the freight cycle is starting to bottom. “With capacity starting to slow and demand to recover eventually, the market should begin to rebalance in the not-too-distant future,” Denoyer said.

Juan Hernandez appointed to VP of sales, marketing at Fontaine Fifth Wheel

The Trucker News Staff - January 23, 2023

JASPER, Ala. — Juan Hernandez is now vice president of sales and marketing at Fontaine Fifth Wheel Company. He will be responsible for OEM and aftermarket sales and marketing in North America, according to a news release. “Even with the difficulties facing our industry these last few years, I understand that Fontaine maintained a strong global supply chain and offers customers the fastest lead times in the industry,” Hernandez said. “It is an honor to be part of this industry-leading team, and I look forward to helping Fontaine grow market share by listening carefully to customers and responding with innovative solutions to meet their needs.” Hernandez served in international leadership roles within the heavy-duty trucking industry prior to this position, most recently for Flexfab, Inc as heavy duty trucking business unit director. “We are delighted to welcome Juan to our team; he is a proven, innovative leader with broad industry experience serving OEM and Aftermarket customers,” Paige Petroni, president of Fontaine Fifth Wheel Company said. “His energy, enthusiasm and genuine commitment to customers make him a perfect fit at Fontaine.” For more information about Fontaine Fifth Wheel products and support contact Fontaine Customer Service at 800-874-9780 or email [email protected].

Kenworth, Platform Science partner to integrate Virtual Vehicle platform

The Trucker News Staff - January 23, 2023

KIRKLAND, Wash. — Kenworth and Platform Science have formed a partnership that will integrate Platform Science’s Virtual Vehicle program into Kenworth trucks using factory installed telematics hardware. “TruckTech+ has built a great foundation for the Kenworth connected vehicle since 2017,” Kevin Baney, Kenworth general manager and PACCAR vice president said. “Through this partnership Kenworth will expand its telematics system to provide customers with third party applications through the Virtual Vehicle platform. Fleets will benefit from enhanced operating efficiencies through access to software solutions, real-time vehicle data, and third party applications directly from their connected Kenworth trucks.” The Virtual Vehicle platform provides the following: Factory-installed telematics hardware enables fleets to maximize uptime by avoiding installation delays and costs for complementary hardware. Virtual Vehicle allows fleets to create a software experience catered to individual business needs through a growing pipeline of developer-created innovations. Virtual Vehicle leverages edge, cloud and in-dash data to optimize networks, keeping data available 24/7/365, even when fleets are offline. Users of participating applications on Virtual Vehicle benefit from usage-based billing. “Virtual Vehicle unlocks new ways for fleets to innovate with a platform that offers real-time insights and combines accessibility, flexibility and compatibility to ensure a driver-first experience,” Jack Kennedy, co-founder and CEO of Platform Science, said. “Kenworth is a long-time leader in designing, developing and manufacturing world-class transportation solutions, and we are proud to collaborate with their team to integrate this platform into their medium and heavy duty trucks.” The new suite of services will launch in 2024 for Kenworth’s Class 8 T680, T880 and W990 models and medium duty T180, T280, T380 and T480 models.

Montway Auto Transport, Auction Edge partner to of offer ordering on EDGE Pipeline

The Trucker News Staff - January 23, 2023

CHICAGO — Montway Auto Transport has partnered with Auction Edge. Through their partnership, Montway will provide integrated transportation ordering to more than 55,000 dealers and more than 175 auctions through Auction Edge’s national marketplace: EDGE Pipeline, a news release noted. EDGE Pipeline is a digital platform that connects auctions with their dealer partners to market and source inventory. “Digitalization of the supply chain is a trend that is here to stay,” Kaye Ceille, business solutions group president at Montway Auto Transport, said. “Integrating auto transport into a digital remarketing platform offers a full-service solution for dealers. Auction Edge will leverage Montway’s technology to seamlessly integrate with EDGE Pipeline and make booking auto transport for vehicles purchased at auctions anywhere in the country as easy as clicking a button.” Dealers continue to source vehicles from multiple outlets, a strategy that has been growing post-pandemic. “Montway is a pioneer in the transportation industry and shares our commitment to improving efficiency for dealers,” Dan Diedrich, CEO of Auction Edge, said. “The ability for dealers to have integrated ordering for long-haul transportation aligns perfectly with EDGE Pipeline’s vision to be the home of the dealer for auctions. We are excited to partner with Montway to deliver this seamless functionality.” Montway’s partnership with Auction Edge comes after the recent announcement of its merger with Auction Direct Transport (ADT), a nationwide automotive transport brokerage company. The two partnerships reinforce Montway’s commitment to strengthening its capabilities in dealer and auction transportation across the country.

More than 309k Class 8 tractors sold in 2022

The Trucker News Staff - January 23, 2023

COLUMBUS, Ind. — December Class 8 net orders were healthy for 2022, bringing total year-end ordering activity to a strong 159,000 (September through December). Units sold for 2022 equaled 309,615. Classes 5-7 orders declined 3% year-over-year to 17,464 units (-21% month over month), with seasonal adjustment trimming orders to 16,100, according to ACT Research’s latest State of the Industry: NA Classes 5-8 report. ACT’s State of the Industry: North American Classes 5-8 report provides a monthly look at the current production, sales and general state of the on-road heavy and medium duty commercial vehicle markets in North America. It differentiates market indicators by Class 5, Classes 6-7 chassis and Class 8 trucks and tractors, detailing measures such as backlog, build, inventory, new orders, cancellations, net orders and retail sales. Additionally, Class 5 and Classes 6-7 are segmented by trucks, buses, RVs and step van configurations, while Class 8 is segmented by trucks and tractors with and without sleeper cabs. This report includes a six-month industry build plan, backlog timing analysis, historical data from 1996 to the present in spreadsheet format, and a ready-to-use graph package. A first-look at preliminary net orders is also published in conjunction with this report. “For now, business activity in the truck industry rolls on, also seemingly unphased by higher interest rates, as pent-up demand remains for now,” Eric Crawford, ACT Research’s vice president and senior analyst said. “We expect this dynamic to shift in 2H’23, as the Fed continues its aggressive push to subdue inflation. Although there have been recent signs of inflation slowing, we do not expect the Fed to begin cutting rates in 2023.” Crawford said that Class 8 retail sales in December rose 19% year-over-year to a record 34,415 units. “The strong finish to the year led to a total of 309,615 units sold in 2022.” Crawford said. “Classes 5-7 retail sales (SA) rose 3.6% year-over-year to 19,000 units. Full year retail sales were 229,821.”

Navistar appoints Tobias Glitterstam to senior vice presidential role

The Trucker News Staff - January 20, 2023

LISLE, Ill. — Navistar executives have announced that Tobias Glitterstam is now a senior vice president, chief strategy and transformation officer at the company. Glitterstam will report to President and CEO Mathias Carlbaum, a news release stated. “Glitterstam will guide strategy implementation and accelerate sustainability efforts,” according to the news release. “He will lead corporate strategy, communication and government relations, as well as a newly established team for mobility solutions.” According to Navistar executives, mobility solutions “target opportunities in the future of zero-emissions transportation, with an immediate priority on charging solutions.” Carlbaum touted Glitterstam’s business acumen in such roles prior to his arrival at Navistar. “Tobias has led market expansion and strategic business growth initiatives with companies across North America,” Carlbaum said. “His background in green energy, sustainable commercial transportation and logistics solutions makes him well-suited to guide the Navistar team in implementing our strategy and furthering our progress on our journey to accelerate the impact of sustainable mobility.” Glitterstam holds a Bachelor of Science in business administration from the Lund School of Economics and Management, Lund University, in Sweden. “I am inspired by and aligned with Navistar’s sustainability vision and can see that the team is well-positioned to accelerate change,” Glitterstam said. “I’m looking forward to playing an important role in the transformation of the historic International brand and nearly 200-year-old company.”

Fleetworthy acquires fleet compliance solution provider Viastar

The Trucker News Staff - January 20, 2023

MADISON, Wis. — Fleetworthy has acquired Dallas, Texas-based Viastar, a provider of fleet compliance solutions. “We’re excited to welcome Viastar’s clients and employees to the Fleetworthy family,” Michael Precia, Fleetworthy’s CEO and president, said. “Fleetworthy leverages its broad set of automated solutions and deep industry experience to help commercial fleets connect and navigate a highly regulated, complex, and fragmented ecosystem that has historically relied on antiquated software, siloed applications, and manual processes.” Precia said Fleetworthy’s software platform and turnkey subscription-based managed services “provide fleets with real-time enterprise-wide visibility of transportation compliance, along with a single, unified source of truth for essential driver, asset and operational data.” “We’re looking forward to bringing Fleetworthy’s modern cloud-based solutions and full range of capabilities to Viastar’s clients to help them reduce costs, mitigate risks, and achieve significant ROI by improving asset and driver utilization rates, automating workflows, maintaining regulatory compliance, and operating safer and more efficient fleets,” he added.

Peterbilt, Platform Science team up to develop connected products

The Trucker News Staff - January 20, 2023

DENTON, Texas — Peterbilt officials say they plan to develop a new ecosystem of connected products for the company’s vehicles. The initiative will fall under the umbrella of the cooperation agreement recently signed between Platform Science, Inc. and Peterbilt parent company PACCAR Inc., according to a news release, The new services “will leverage Platform Science’s Virtual Vehicle platform, which enables customers to access fleet management functionality, ELD capabilities, truck-specific navigation and third-party applications directly from their vehicles,” the news release stated. “Today’s customers demand the highest level of uptime and complete integration with their existing fleet management solution” Jason Skoog, Peterbilt general manager and PACCAR vice president, said. “SmartLINQ and the PACCAR Solutions portal have provided a solid foundation to build this next-generation solution.” Jack Kennedy, co-founder and CEO, Platform Science, said that with Virtual Vehicle, “truck buyers can eliminate barriers to innovation, production, and safety and customize in-cab experiences with technology solutions that best meet their needs.” The new suite of services will launch in 2024 with class 8 Models 579 and 567 and the medium-duty Models 548, 537, 536 and 535. Multiple service packages will be available depending on the truck model and intended application. “The new services will leverage the existing connectivity solutions of our heavy- and medium-duty truck platforms” Bart Lore, senior director Global Connected Services, said.

Volvo-backed investment group helps fund tech company focusing on autonomous trucking

The Trucker News Staff - January 20, 2023

GOTHENBERG, Sweden — Volvo Group Venture Capital AB has invested in the Canadian company Waabi Innovation Inc. to develop new autonomous trucking technology. The investment “highlights the companies’ shared commitment to redefine the way goods are moved and accelerate the deployment of future transport solutions,” a news release stated. “The company Waabi is using advanced artificial intelligence technology to test, assess skills, and ultimately teach a virtual driver to maneuver safely and efficiently in a commercial-ready autonomous trucking solution,” President of Volvo Group Venture Capital Martin Witt said. “We are impressed by what they have accomplished and see that Volvo Group can add considerable strategic value to the development of their business. We are currently exploring ways to cooperate.” Freight movement is rapidly increasing, with the trucking industry moving the vast majority of the goods. Accommodating this growth pressure every part of the supply chain industry. Volvo Group believes fully autonomous trucking transports are key to provide additional capacity, better safety and improved efficiency but also support drivers in tiresome routes. “Partnerships and investments are key to commercializing autonomous transport solutions at scale,” President of Volvo Autonomous Solutions Nils Jaeger said. “We welcome Volvo Group’s decision to invest in companies like Waabi who are building the new transport ecosystem.” Waabi is developing next-generation artificial intelligence technology to solve autonomy at scale. The company unveiled the Waabi Driver, its core autonomous trucking solution, designed for large-scale commercialization and safe deployment. This solution is complemented by Waabi World, a scalable simulator exposing the Waabi Driver to the vast diversity of scenarios needed to hone its driving skills and paving the way to widespread adoption of autonomous trucking. “Autonomy will one day transform trucking and logistics, but the self-driving industry has not solved this challenge, yet,” Raquel Urtasun, founder and CEO of Waabi, said. “Our AI-first approach is the key to unlocking this reality at scale. Volvo Group’s investment in Waabi marks the next step in our journey, particularly around our shared commitment to safety.”

US trailer orders end 2022 with near-record levels

The Trucker News Staff - January 20, 2023

COLUMBUS, Ind. – December net U.S. trailer orders of 57,300 units were almost 46% higher compared to November and 115% more than December 2021, according to the January issue of ACT Research’s State of the Industry: U.S. Trailers report. “Discussions in the last 30 days continue to indicate 2023 is not yet fully open, despite OEMs expanding availability,” Jennifer McNealy, Director of Commercial Vehicle Market Research & Publications at ACT Research said. “Supply-chain concerns still linger, with some manufacturers sharing that the situation for some parts has actually deteriorated and they see no short-term improvement in sight. Regarding demand, most trailer makers continue to see demand exceeding capacity through the end of 2023; although, some have mentioned an erosion in confidence, but are also quick to note that this hasn’t appeared in the form of cancellations.” McNealy said that at 57,300 net orders, December 2022 was the second highest month since ACT Research started keeping track in 1996. “The year closed with 361,500 net orders placed, exceeding the previous year’s 249,400 level,” McNealy said. “Approximately 306k trailers were built in 2022, and our projections point to a continuation of that upward trend into 2023.”

Spot rates remain at pre-holiday amounts

The Trucker News Staff - January 20, 2023

BLOOMINGTON, Ind. — The spot market continues to unwind the capacity-driven rate surge of the final two weeks of 2022, according to data from Truckstop and FTR Transportation Intelligence for the week ended Jan. 13. The increase in truck postings was the largest since the first week of 2022. The Market Demand Index fell to 69.0, which is its lowest level in four weeks. Broker-posted refrigerated rates in the Truckstop system fell by the most in a single week in more than eight years while dry van rates dropped by the most since April. Spot rates in both segments remain above those prior to the holidays. Load activity also was down in both segments. Flatbed saw gains in both rates and volume. Load activity changed little overall as stronger flatbed volume offset weaker loads in dry van and refrigerated. Volume was up in the Southeast and South-Central regions but down elsewhere. The surge in dry van and refrigerated spot rates during the final two weeks of 2022 continued to unwind in the second week of 2023. Total spot volume barely changed at a 0.3% increase as stronger flatbed loads offset declines in dry van and refrigerated. Volume was nearly 55% below the same week in 2022 and nearly 11% below the five-year average for the week. Load activity was up in the Southeast and South Central but down in all other regions. Truck availability jumped by 29.8% for the largest increase since the first week of 2022. The Market Demand Index — the ratio of loads to trucks — fell to its lowest level in four weeks. Broker-posted refrigerated rates in the Truckstop system fell by the most in a single week in more than eight years while dry van rates dropped by the most since April. Spot rates in both segments remain above those prior to the holidays. Flatbed rates increased after two down weeks. Refrigerated spot rates plunged nearly 28 cents after falling nearly 19 cents in the previous week. The decrease was the largest since July 2014. Even so, refrigerated rates were still a little higher than they were for most of the fall before Thanksgiving. Rates were nearly 28% below the same 2022 week but 2% above the five-year average for the week. Excluding fuel surcharges, rates were about 36% below the same 2022 week. Refrigerated loads fell 18.9%. Volume was nearly 57% below the same 2022 week and nearly 7% below the five-year average for the week. Dry van spot rates fell about 11 cents after declining nearly 5 cents in the prior week. Rates were still about 8 cents higher than during the week before Christmas. Dry van rates were about 25% below the same week in 2022 and 0.6% above the five-year average for the week. Excluding a fuel surcharge, rates were 35% lower than in the same week in 2022. Dry van loads declined 6.1% after rising 30% in the prior week. Volume was more than 53% below the same 2022 week and essentially equal to the five-year average for the week. Flatbed spot rates increased nearly 3 cents. Rates were 13% below the same 2022 week but 10% above the five-year average for the week. Excluding an imputed surcharge, flatbed rates were about 21% below the same week in 2022. Flatbed loads rose 17.7% to the highest level since early October. Volume was almost 60% below the same 2022 week and about 26% below the five-year average for the week. The total broker-posted spot market rate fell more than 6 cents. Rates were almost 19% below the same 2022 week but 6% above the five-year average for the week. FTR estimates that rates excluding a calculated fuel surcharge were more than 27% below the same 2022 week.

Former USA Truck CEO James Reed takes COO role at Kodiak

The Trucker News Staff - January 19, 2023

MOUNTAIN VIEW, Calif. — Kodiak Robotics has announced the appointment of former USA Truck CEO James Reed to the role of chief operating officer. Reed has had roles in executive and financial leadership for companies in trucking, technology and finance over the past 25 years. “As the former CEO of USA Truck, James’s broad experience gives Kodiak an incredible advantage as we focus on accelerating growth,” Don Burnette, founder and CEO of Kodiak Robotics, said. “A trucking industry veteran with experience at tech companies like Intel, EMC and T-Mobile is a unicorn and a perfect fit for Kodiak. Leaders with James’ background don’t find themselves on the market very often; we’re fortunate to welcome him to the Kodiak team.” Reed joins Kodiak from USA Truck, where he spent nearly six years as chief executive officer. During his tenure, Reed led a turnaround of the company, culminating in the company’s acquisition by German transportation firm DB Schenker in September 2022. “Working within the trucking and logistics industry has been both professionally and personally rewarding, especially as the supply chain became a headline topic for the critical role it plays in the economy,” Reed said. “Kodiak has a well-established reputation as the leader in developing and rolling out autonomous trucks that deliver safely and effectively. I couldn’t pass up the opportunity to marry my trucking and tech industry experience to help Kodiak as it leads the trucking industry to its next major transformation.” Prior to his role with USA Truck, Reed was chief financial officer of Interstate Distributor Company, which was acquired by Heartland Express. Earlier, he held senior finance positions for tech companies including Intel, EMC, and T-Mobile and was Division CFO for Chase’s wamu.com business. Reed holds an MBA in Finance from Brigham Young University.

FleetPride website offers more than a million unique parts

The Trucker News Staff - January 19, 2023

IRVING, Texas — FleetPride is offering more than 1 million unique parts on the their e-commerce website, FleetPride.com. FleetPride also more than doubled the number of cross references to 10 million and added an AI-powered search engine. “Our customers told us they need more available products and more delivery options to keep their trucks on the road,” Darren Taylor, FleetPride senior vice president of marketing & digital, said. “They expect to find the right product fast and easily order it with confidence, and we listened to them. We see the success in customer surveys where they rate the shopping experience as ‘great’. This past year, FleetPride.com sales grew more than 400%.” FleetPride completed the following advancements to FleetPride.com in 2022: Added five times as many parts on the site, doubling the number of cross references to more than 10 million while also doubling the number of product images. Accelerated AI-powered search suggestions that improve every time used to deliver the most relevant results. Added “Complete The Job” feature, which helps customers find all the parts they need in one order based on actual technician repair data. Real-time stock availability is visible on parts carried by FleetPride’s network of more than 300 locations, helping customers find the parts they need when they need them. The site shows parts available for pickup or local delivery, and parts available for shipping to a location near them. eCash Rewards to customers, which includes cash back rebates on their online purchases and free standard shipping on select parcel orders of $200-plus. FleetPride continues to grow its online assortment. The search engine will continue to be refined, with a goal of making it the ultimate search tool for customers and employees.