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TravelCenters of America honors veterans through various initiatives

WESTLAKE, Ohio — Throughout November, TravelCenters of America Inc. plans to honor all those who have served our country. TA is teaming up with Mobil Delvac to donate $50,000 to Folds of Honor, an organization providing educational scholarships for children and spouses of fallen or disabled American military service members and first responders. This is the sixth year in a row that TA and Mobil Delvac have come together to support Folds of Honor and pay tribute to fallen or disabled American military service members and first responders. To date, the companies together have donated a total of $300,000 to the organization. Additionally, TA is launching a Round Up campaign to support the Special Operators Transition Foundation (SOTF), an organization dedicated to assisting Special Operations Forces veterans with the successful transition from military service into their next career. From Nov. 1-30 guests at participating TA, Petro and TA Express locations will have the opportunity to round up their purchase to the nearest dollar, with the difference being donated directly to SOTF. “We are grateful to have the TravelCenters of America team so passionate about helping those who have served our country,” Tommy Stoner, CEO of SOTF, said. “Because of the efforts of TA and Petro team members nationwide, we will be able to meet our goal of helping over 200 Special Operations veterans make the transition from their military career to the next chapter of their life.  This support not only affects these very deserving veterans, but it also deeply impacts their families and the communities that they join.” In addition to collaborating with SOTF to recruit and hire veterans, TA works with RecruitMilitary and the Transition Assistance Program to help connect with veterans looking to enter corporate careers after serving our country. TA regularly hosts events at military bases to showcase the job opportunities available at the company. TA also supports Wreaths Across America, an organization committed to placing wreaths on the graves of all veterans in national cemeteries across the country. Additionally, TA will continue its tradition of inviting all active-duty military, veterans and reservists to enjoy a complimentary meal on Veterans Day at company-owned quick-service and full-service restaurants nationwide. “As a proud American company, we are honored to support those who have dedicated their lives for the freedom of others,” Jon Pertchik, CEO of TravelCenters of America, said. “Thank you to all who have served, including our many team members and the thousands of veterans who are now professional drivers and continue to dedicate their lives to keep our country strong.”

Preliminary North American Class 8 tractor orders up in October

BLOOMINGTON, Ind. — North American Class 8 tractor orders saw elevated numbers in October. FTR reports preliminary North American Class 8 net orders for October remained elevated for the second consecutive month, coming in at 43,200 units. October order activity was -23% month-over-month and +77% year-over year, with Class 8 orders now totaling 271,000 units for the last 12 months. ACT Research’s preliminary North American Class 8 net order report for October showed a slightly lower number at 42,500 units. “Net orders in October continue to solidify the notion that there remains a tremendous amount of pent-up replacement demand in the market due to the constricted production environment of the past two years that has limited many fleets from replacing aged equipment,” according to FTR. Charles Roth, commercial vehicle analyst for FTR, said that “OEMs are now filling build slots well into Q2 and the early part of Q3 2023. Component shortages continue to be a week-to-week issue; however, the overall sentiment from manufacturers is optimistic that improvements will be made in the coming months and throughout the first half of next year.” Roth said October was the turning point for the Class 8 market. “While we face headwinds in the freight market, overall fleet sentiment remains optimistic,” he said. “While some OEMs have indicated that they have implemented allocation plans for dealers, the retail channel is another segment of the market that has yet to be able to maintain sufficient levels of inventory due to the limited availability of supply.” Roth added that with two extremely strong months of net orders, there is the potential for a gradual decrease month over month in net orders at the close of the year. According to ACT, strength in orders reflects: OEMs having opened their order boards for 2023 more broadly. Ongoing pent-up demand, with tailwinds from strong carrier profitability and elevated fleet age proving resilient. “We continue to expect a freight recession, and an eventual economic recession (mild to medium in magnitude), but OEMs at this point have clear visibility to a strong (2023 barring any unforeseen cataclysmic events),” Eric Crawford, ACT vice president and senior analyst, said. “Manufacturer demand was solid, albeit against somewhat challenging comps. Over the past 12 months, the manufacturer demand has seen 234,200 orders booked.”

50 companies recognized on WIT’s 2022 list of ‘Top Companies for Women’

PLOVER, Wis. — The Women In Trucking Association (WIT) has named 55 companies to the 2022 list of “Top Companies for Women to Work For in Transportation,” according to the association’s Redefining the Road publication. The award was created in 2018 as part of WIT’s mission “to promote the accomplishments of companies that are focused on the employment of women in the trucking industry,” said Ellen Voie, president and CEO of WIT. This year’s list, announced Oct. 31, includes motor carriers, industry service providers, OEM manufacturers, third-party logistics companies, CDL training providers and more. Brian Everett, publisher of Redefining the Road, said companies recognized on the annual list display several important characteristics including corporate cultures that foster gender diversity; competitive compensation and benefits; flexible hours and work requirements; professional development opportunities; and career advancement opportunities. “These corporate attributes are essential to any successful enterprise that is serious about gender diversity,” Everett said, adding that all companies nominated for the list are carefully reviewed to ensure they meet the qualifications; then industry members vote to determine the final list. “This is the fifth year of this prestigious recognition program, and it garnered a record number of more than 22,000 votes to identify and validate the final companies named to the list,” he said. Companies named to the 2022 “Top Companies for Women to Work For in Transportation” list are: 160 Driving Academy AFS Logistics Ancora Education Armstrong Transport Group Arrive Logistics Averitt Express BCB Transport Bennett Family of Companies Big M Transportation Inc. Bob’s Discount Furniture Booster Boyle Transportation Bridgestone Americas Inc. Carter Express Inc. Centerline Drivers CFI Clean Harbors Convoy Covenant CPC Logistics Crowley Cumberland International Trucks Cummins Inc. Daimler Truck North America Dart Transit Co. Day & Ross Drivewyze Inc. Dupré Logistics Dynacraft, a PACCAR Company EASE Logistics Estes Express Lines Exxact Express FedEx Freight First Truck Centre FirstFleet Inc. GLT Logistics Halvor Lines Inc. Highway Transport Logistics Inc. J.B. Hunt Transport Services Inc. JX Enterprises Inc. Kenworth Truck Co. Leonard’s Express Marathon Petroleum Co. May Trucking Co. Merchants Fleet Michelin North America Inc. MOTOR Information Systems Navistar Inc. New West Truck Centres NFI Industries Old Dominion Freight Line PACCAR Engine Co. PACCAR Parts PACCAR Inc. Palmer Trucks Paschall Truck Lines Penske Transportation Solutions PepsiCo Peterbilt Motors Co. Pilot Co. Prime Inc. Quality Carriers Redwood Logistics ReedTMS Logistics Rihm Family Companies Roehl Transport Ryder SAIA LTL Freight Savage Schneider Skelton Truck Lines Solera Stericycle Sunset Transportation Swift Transportation The Erb Group of Companies The Evans Network of Companies The Pete Store LLC Thomas E. Keller Trucking Total Transportation of Mississippi TRAFFIX Transflo Tri-National Inc. (TNi) Trinity Logistics Triumph Business Capital Truckstop.com TrueNorth Transportation Tucker Freight Lines U.S. Xpress UPS US AutoLogistics Venture Transport Logistics Volvo Group North America Walmart Inc. Waste Management Werner Enterprises Inc. Wilson Logistics XPO Logistics Yellow Zonar All 55 companies will be recognized at this year’s WIT Accelerate! Conference & Expo, scheduled for Nov. 13-16 in Dallas, Texas. This year’s program is sponsored by Navistar.

TCA expands Professional Drivers of the Year nominations, prize pool

The Truckload Carriers Association (TCA) is recognizing best-in-class drivers through its revamped Professional Drivers of the Year awards program. TCA is looking for those exceptional drivers who have made a significant impact over the past year on the industry, their driver colleagues, their community, and the company that employs them. TCA Professional Drivers of the Year nominees should also have superior safety records, be strong role models and have inspiring stories that have made a difference in their lives and the truckload industry. New for this year’s contest is a reworked nomination process to make it easier to nominate, and an expanded the prize pool to $100,000. Also, the number of potential winners has increased to five; in previous years, the contest awarded two winners. TCA member carriers are encouraged to nominate their best drivers. Click here to find out more or to nominate a driver. Nominations will be accepted through Dec. 7. Winners will be recognized during TCA’s Annual Convention in Orlando, Florida, March 4-7, 2023.

Spot market rates see ‘notable changes’ in some areas but remain flat overall

Data from Truckstop and FTR Transportation Intelligence for the week ending Oct. 28 showed little overall change in spot market rates or volume. However, individual regions and segments saw notable changes. Flatbed and refrigerated spot rates saw only marginal declines, but the dry van segment saw its largest drop in broker-posted rates in seven weeks. Still, anaylists say, the decline was not “especially large.” Spot load activity increased 2% after a 2.5% gain in the previous week. Volume was about 47% below the same week in 2021 and nearly 2% below the five-year average. The West Coast led gains, and load activity went up in the Southeast and South Central regions, which offset declines elsewhere. Truck availability ticked up 0.6%, and the Market Demand Index — the ratio of loads to trucks — rose slightly after falling to its lowest level since May 2020 the previous week. The modest overall increase in spot load activity masks some variations at the regional level as the West Coast led gains with week-over-week growth of nearly 12%. The gains on the West Coast were uniformly strong, ranging from 10% for dry van to more than 19% for flatbed. Dry van spot rates fell nearly 5 cents, which is the largest drop in seven weeks. Rates were 26% lower than the same week in 2021 and nearly 2% below the five-year average for the week. FTR estimated that dry van rates excluding a fuel surcharge were more than 42% lower than in the same week in 2021. Dry van loads increased 2.9% after easing 1% in the prior week. The largest gains were in the South Central and Southeast regions while volume was down in the Northeast and Mountain Central regions. Dry van volume was about 48% below the same week in 2021 but almost 1% above the five-year average for the week. Refrigerated spot rates decreased nearly 2 cents after rising just more than a cent in the previous week. Rates were nearly 20% below the same week in 2021 but almost 7% above the five-year average for the week. Rates excluding fuel surcharges were nearly 33% below the same week in 2021. Refrigerated loads ticked up 1.3%. Sharp gains on the West Coast and in the Southeast and South Central regions were offset by weakness elsewhere, especially in the Northeast. Refrigerated volume was almost 52% below the same week in 2021 and nearly 2% below the five-year average. Flatbed spot rates eased three-tenths of a cent after falling 5.5 cents in the week before. Rates were nearly 7% below the same week in 2021 but more than 16% above the five-year average for the week. Excluding an imputed surcharge, flatbed rates were more than 19% below the same week in 2021. Flatbed loads edged up 1.2% after rising 8.5% during the previous week. Load activity was up sharply on the West Coast, offsetting weaker performance elsewhere. Flatbed volume was 52% below the same week in 2021 and 14% below the five-year average for the week. With the increase in truck postings not quite matching the gain in volume, the Market Demand Index ticked up slightly to 49.1 from the prior week, which had seen the lowest MDI since May 2020.

Inflation impacting freight economy

COLUMBUS, IN – ACT Research reported in its Commercial Vehicle Dealer Digest slightly lowered forecasts due to the Fed’s continued action toward inflation, disproportionally impacting the freight economy. “ACT’s forecasts into the medium term move incrementally lower this month on the continued deterioration of economic expectations: Inflation looks more stubborn and the Federal Reserve’s increasingly resolute rhetoric shows a willingness to do whatever is required to bring inflation to long-term targets of around 2%,” Kenny Vieth, ACT’s president and senior analyst, said. “On the freight economy.” He said that for an industry that relies on the manufacturing and distribution of goods, changes to economic expectations are even more impactful to the freight economy: ACT’s freight composite drops as rates sensitive economic sectors (durables, investment, housing) are disproportionally impacted. “Spot rates continued to edge lower in September. ACT’s aggregation of DAT’s rate data showed slight sequential deterioration in spot freight rates on an absolute as well as seasonally adjusted (SA) basis,” Vieth said. “September spot rates averaged $1.96 net fuel, down 3% from August, while the SA spot rate declined 4.0%. Anecdotes indicate that contract rate negotiations are running south of -10%.”  

ACT Research: Net trailer orders rise 47% in August

COLUMBUS, Ind. – September net U.S. trailer orders of 26,086 units were 47% higher compared to last August, but 8% below the year-ago September level, according to this month’s issue of ACT Research’s State of the Industry: U.S. Trailers report. “Discussions across the past month continue to indicate more OEMs opening 2023 build slots (some opening initial slots, others expanding into later in the year),” said Jennifer McNealy, director–commercial vehicle market research & publications at ACT Research, said. “OEMs’ fleet negotiations are now quickly moving to booked business.” McNealy said September is a quarter-ending month, and keeping with historical patterns, the clearing of red-tag units buttressed strong build and factory shipment data this month. “While manufacturers continue to wrestle with rolling supply-chain disruptions, as well as challenges on the labor front, tangible improvements are being made, as illustrated in the build data,” McNealy said. “September orders were mixed, with some categories virtually unchanged from August, others down double digits, and a few up triple digits. The explanation: 2022 backlogs are filled and build slot availability in 2023 varies widely by OEM, limiting customers’ ability to place orders.”  

Owner-operators to face more challenging conditions, new survey says

BOISE, Idaho — Moderating economic activity and normalizing supply chains have reduced the need for capacity and are driving the outlook for rates and demand lower, leaving higher cost carriers worried about turning a profit in the coming months, according to the latest Bloomberg Intelligence | Truckstop survey of owner operators. “Sentiment among survey respondents in the spot truckload market has turned significantly more bearish, according to survey respondents, about the prospects for demand and rates growth,” Lee Klaskow, senior freight transportation and logistics analyst at Bloomberg Intelligence, said. “Current spot conditions may likely force a rebalancing, forcing higher-cost carriers to reassess their operations.” The Bloomberg | Truckstop 3Q22 Truckload Survey shows: Pessimism among carriers has touched the pandemic lows seen in 1Q20: About 33% of respondents expect load growth to decline over the next six months, the lowest reading since 1Q20 and significantly higher than 3Q21 at 9%. Many carriers raised concerns over the strength of the upcoming peak season. Refrigerator carriers were the most optimistic, with only 10% of those surveyed projecting a volume decline in the coming months. Spot rates decline, impacting carrier sentiment: Spot rates excluding fuel surcharges have fallen 31% since peaking in late December, which has negatively impacted carrier sentiment. Only 26% of carriers expect the rates to rise in the next six months, the lowest level since 1Q20. About 38% of carriers expect a drop over the next 3-6 months. Total demand has taken a turn downward in 3Q: 74% of respondents noticed a drop from 2Q and about 57% said volume growth was down from a year earlier. The typical carrier reported an average decline of 30% in the number of loads available which is in line with the 37% drop in Truckstop’s Spot Market Demand Index. “The most important thing to Truckstop is that we continue to provide the tools and resources our customers need to keep their businesses moving forward, regardless of market conditions,” Kendra Tucker, chief executive officer at Truckstop, said. “Our platform and solutions help carriers perform the critical day-to-day functions needed to help ensure they can weather these types of market fluctuations and remain profitable.” The Bloomberg | Truckstop survey of owner-operators and small fleets provides timely channel checks into the health of the spot market. The sample size was 128, consists of dry-van, flatbed, temperature-controlled and specialized/diversified carriers. Of the respondents, 64% operate just one tractor. The complete survey is available to Bloomberg Terminal subscribers via BI.

Volvo Trucks enters 21st year of sponsoring America’s Road Team

GREENSBORO, N.C. — Volvo Trucks North America will enter its 21st consecutive year as the exclusive sponsor of the America’s Road Team public outreach program in 2023. Peter Voorhoeve, president of Volvo Trucks North America, made the announcement at the recent American Trucking Associations’ (ATA) Management Conference & Exhibition. Created by the ATA in 1986, America’s Road Team travels the country each year “representing the dedication, teamwork and critical role of America’s 3.6 million professional truck drivers in moving the nation’s economy and improving quality of life,” a news release stated. “Volvo Trucks has served as the exclusive sponsor since 2002.” Nominated to serve two-year terms as captains of this exclusive group, the members of America’s Road Team are selected for their outstanding driving skills, advocacy for safety and superior driving records — collectively logging millions of accident-free miles. The team serves to educate students, community groups, lawmakers and government officials on driving safety, as well as on the essentiality and sustainability of the trucking industry. “The professional drivers who make up America’s Road Team are the elite of their profession, and I am proud to honor them on behalf of Volvo Trucks North America,” Voorhoeve said. “As captains, these men and women represent the movers of our nation’s economy, and as we look forward to our 21st year as the exclusive sponsor, we salute their dedication to the values of safety and sustainability that are also at the heart of Volvo Trucks’ vision.” In support of the 2023 America’s Road Team campaign, Volvo Trucks will continue to provide a fully loaded Volvo VNL 760 to the program. “Volvo Trucks honors all the professional drivers who represent the hard work and values of the North American trucking industry, as well as America’s Road Team for its commitment to spreading our message of safety and sustainability,” Voorhoeve said. “These professional men and women deserve our respect and recognition for all they do to deliver essential goods and materials safely and securely, day after day.”

North American freight giant sees shipping slump ahead of holidays

DENVER, Colo. —The DAT Truckload Volume Index (TVI) declined for all three equipment types in September, indicating a muted shipping season ahead of the holidays, according to DAT Freight & Analytics, which operates the DAT One truckload freight marketplace and the DAT iQ data analytics service. The DAT TVI for van freight was 228, down 13.7% compared to an unusually active August but in line with prior years. The van TVI was 2.9% lower versus September 2021 and 1.8% higher than September 2020. The refrigerated (reefer) TVI fell 9.7% to 168, while the flatbed TVI declined 10.5% to 231. Peak season plateau The national average spot van rate fell 7 cents to $2.45 per mile, declining from August to September for the first time since 2015, according to DAT, which operates the largest truckload freight marketplace in North America, The average reefer rate was down 5 cents to $2.84 per mile, and the average flatbed rate dropped 14 cents to $3.64 per mile. Spot truckload rates are negotiated for each load and paid to the carrier by a freight broker. DAT bases its rate analysis on $137 billion in annualized freight transactions. “The usual peak period for van freight looks more like a mesa,” Ken Adamo, DAT chief of analytics, said. “The month-over-month decline in September truckload volume suggests that many retailers already have inventory in position, have tempered their expectations for the holidays, or some combination of the two.” Load-to-truck ratios decline The national average van load-to-truck ratio was 3.5, unchanged from August, meaning there were 3.5 available loads for every van posted to the DAT One load board network. The reefer load-to-truck ratio was 6.3, down from 7.1, and the flatbed ratio fell to 13.3, down from 14.1 in August. Demand for trucks increased ahead of Hurricane Ian making landfall on Sept. 28. The number of loads posted to the DAT One network headed to distribution hubs in the Southeast rose 20% during the week before the storm’s arrival. Contract rates dipped The national average shipper-to-broker contract van rate declined for the fourth consecutive month, falling 3 cents to $3.09 a mile. The average contract reefer rate was $3.40 a mile last month, unchanged from August, while the average contract rate for flatbed freight dropped 5 cents to $3.64 a mile.  

Used Class 8 retail sales drop 12% in September

COLUMBUS, Ind. – Used Class 8 retail tractor volumes (same dealer sales) were down 12% month over month, according to the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research. This is a larger drop than the 9% decline that ACT saw in its preliminary data for last month. Average miles were up 2%, with average price and age both down 3%, month-over-month. Longer term, the average price for used tractors was higher year-over-year and year-to-date, as were average miles, with price up 20% year-to-date in September, average miles 3% higher compared to the first nine months of 2021 and average age down 1% for the same period. The report from ACT provides data on the average selling price, miles and age based on a sample of industry data. In addition, the report 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). This report is utilized by those throughout the industry, including commercial vehicle dealers, to gain a better understanding of the used truck market, especially as it relates to changes in near-term performance. “Same dealer retail sales of used Class 8 trucks fell in September, shedding 12% m/m,” Steve Tam, vice president at ACT Research, said. “Used truck sales typically see a small decline in September, relative to August, but this drop exceeded expectations. As has been the case for the past several months, looking back at new truck production in the recent past has provided some meaningful insight into where used truck sales volumes may be headed in the near term.” Tam added that while July’s output lagged, it did not portend the magnitude of the pull back the used truck market eventually experienced in September. “That suggests in addition to supply, demand factors may have been at work,” Tam said. “That should not come as a surprise to anyone in the industry. Tam said it is worth noting is total used truck sales for September were 16% higher month-over-month. “This is due to outsized auction activity (104% month-over-month), which is not unusual at quarter end,” Tam said. “Rounding out the channels, wholesale transactions were 18% lower in September, relative to August, as dealers remain cautious about building inventory. Developments in the freight and freight rates market, and in particular the spot markets rather than the contract market, remain the best near-term indicator of not only used truck volumes, but also values.”  

Love’s donates $150K to Operation Homefront

OKLAHOMA CITY — Love’s Travel Stops has extended a $150,000 donation to Operation Homefront, a national nonprofit that aids military families. The donation will come from the sale of special edition Operation Homefront tumblers, combined with a gift from the company. “Veterans Day is a day for us to ‘pay it forward’ and say, ‘thank you’ to all current and former military members,” Jenny Love Meyer, chief culture officer and executive vice president of Love’s, said. “We always enjoy finding new ways to support our veterans and Operation Homefront for the dedicated and impactful work they do.” On Friday, Nov. 11, all who have served or those currently serving in the military can get a free roller grill item and fountain drink with the purchase of one roller grill item at participating locations. A special edition, 24-ounce Operation Homefront tumbler will also be available for purchase throughout the month of November, with $5 from each sale going directly to the organization while supplies last. “Our military families need our support, now, more than ever, and we are so grateful to Love’s for their steadfast commitment to help us build strong, stable, and secure military families,” Brig. Gen. (ret.) Robert Thomas, COO of Operation Homefront, said. “Veterans Day is the perfect time to show our military families that we are grateful for all they have done for our nation in its time of need and to work hard to be there for them in their time of need.” In effort of helping military families overcome short-term bumps in the road and avoid long-term chronic problems, Operation Homefront offers critical assistance in areas including rent-free housing, financial support, caregiver support and various other recurring support programs. For more information or to donate, visit https://operationhomefront.org/.  

PDA: Miles-related compensation issues rise among freight slowdown

BRENTWOOD, Tenn. — The two most mentioned concerns among professional truck drivers continue to be equipment and compensation. This is according to the latest data from data aggregator PDA. On Oct. 20, PDA officials compiled their most recent data from thousands of phone calls with professional truck drivers during the third quarter of 2022. The data was gathered as part of PDA’s efforts to help trucking companies curb turnover while providing accurate and actionable data for addressing their drivers’ concerns, according to a news release. In addition to concerns about equipment and overall compensation, miles-related compensation issues continued to rise due to the softening freight market. “While equipment concerns remain the top issue for drivers in Q3, PDA continues to see a shift in data connected to miles-related compensation issues,” Scott Dismuke, PDA’s vice president of operations, said. “Drivers’ concerns about miles continue to increase, up 12% since Q1, a clear indication of a slowing freight market.  In September alone, over half the drivers complaining about pay cited miles as the main reason.” Dismuke noted that the slowing freight market is not only increasing driver frustration with miles, but also causing a climb in turnover rates. “PDA has seen an uptick in turnover that began at the end of Q2 and continued in Q3,” Dismuke said. “For those drivers who have entered the market in the last two years, the slowing freight market is proving to be a frustrating wake up call. For veteran drivers who have enjoyed consistent freight over the last couple of years, the slowing freight market is a disappointing return to waiting longer for freight.” From a percentage standpoint, overall equipment issues dropped for the third quarter in a row, and mechanical/breakdown issues were also down from Q2 to Q3. Dismuke said that while the percentage of complaints has dropped, the number of drivers complaining about equipment has remained the same. “Equipment issues remained the top driver concern in Q3.” Dismuke said. “While the percentage has dropped nearly 5% from Q1, relative to other categories, the total number of complaints remained the same. So while we are hearing the equipment and parts shortage is letting up, the numbers aren’t yet reflecting that.” Dismuke remarked that the softening freight market will continue to be a challenge in combating turnover in Q4. “People are spending more on services right now, less on goods,” Dismuke said. “Diesel/gas prices are on the rise again, taking disposable income out of people’s pockets, interest rates continue to rise and some economists are expecting unemployment rates to go up; meaning the last quarter of 2022 could continue to be a challenge in reducing driver turnover.” Driver retention continues to be more important now than it has ever been. Reducing turnover and keeping drivers in trucks will continue to be a challenge. “Drivers who have entered the market in the last two years have not experienced a slowdown in freight,” Dismuke said. “Open and proactive communication with drivers will be essential in Q4, especially with new drivers who are struggling with miles in this market.” To see PDA’s full Q3 Data Download, click here.  

Trucking profitability likely to buoy new Class 8 trucks sales into 2023

U.S. sales of new Class 8 trucks remained strong in September with movement of 23,357 units reported by the manufacturers, according to data received from ACT Research. Compared with September of 2021, sales increased by 33%. September represented the fifth consecutive month of sales of over 20,000 units, after exceeding that threshold only once in 2021. Sales numbers did decline some from August to September — by about 2.5% — a drop that could be attributed to having one less business day in the latter month. Whatever the reason, it’s apparent the supply chain issues that plagued manufacturers for more than a year have abated somewhat. Trucks are being built. Orders for new trucks, which had fallen off earlier in the year, reached record levels in September as North American buyers ordered 53,700 new trucks. Some of the orders can be attributed to buyers canceling orders for 2022 models and replacing them with orders for 2023 models. Cancellations, however, remained low. The demand for new trucks remains high, despite declining rates and inflationary pressures. Another reason for the increased Class 8 orders could simply be timing. “The strength in orders reflects OEMs’ having fully opened their order boards for 2023 a bit earlier than normal, as the seasonally weak period for truck orders typically runs May-September,” said Eric Crawford, vice president and senior analyst at ACT Research in an early October press release. If it seems strange that carriers are ordering more trucks at a time when fuel costs are up and freight rates are declining … well, that’s because it IS strange. The trucking cycle seems to be in a weird exception to the usual process. “We weren’t able to oversupply the market like we normally would have,” Crawford explained. “So, 2022 is less than it otherwise would have been.” In a nutshell, what Crawford means is that when rates are up and freight is plentiful, carriers buy trucks while profits are easier to come by. The usual result is overcapacity — too many trucks to haul the available freight. This time, however, carriers couldn’t buy all the trucks they wanted because the manufacturers couldn’t build enough. The result, for trucking, is that rates remained high for longer than they normally would. Spot rates have declined, but contract rates are just beginning to come down. The end result is that carriers are still making money. “We expect (contract rates) to follow suit, but still, carriers are at near-record profitability, really healthy cash flow,” Crawford said. “We still we still think next year is going to be a pretty healthy year.” Carriers that are earning profits tend to invest some of those profits into new equipment. According to Crawford, ACT predicts sales of 296,000 new Class 8 trucks next year. New equipment provides another benefit: Newer trucks are generally equipped with the latest technology, providing better fuel mileage as well as improved safety due to ADAS (advanced driver assist systems) features on newer models. The proverbial fly in the ointment, however, is unemployment. “Unemployment hasn’t been lower than 3.5% since Neil Armstrong first set foot on the moon,” Crawford said. “We’re talking about a tight labor market and wage inflation. Wage inflation is the key driver for core inflation, and core inflation is what the Fed is trying to get rid of.” While low unemployment numbers seem like a great thing, the law of supply and demand applies to labor, too. With workers harder to come by, businesses are more willing to raise wages to keep their workforce, often raising the prices of their products to compensate. This process pushes the inflation rate upward. As for truck manufacturers, Freightliner sales of 8,395 Class 8 trucks on the U.S. market led all manufacturers in September, according to data received from Wards Intelligence. That number was down 1,388 trucks (14.2%) from August sales of 9,783, and was the largest decline by number of all manufacturers. Only tiny Western Star saw a larger decline by percentage, selling 392 trucks in September compared to 604 in August for a decline of 35.1%. International saw results trending in the opposite direction, selling 3,848 trucks in September, a 40% increase over August sales of 2,749. Compared with September 2021, International sales rose by 1,768 trucks — a whopping 85%. Volvo’s 2,432 trucks sold in September bested August sales of 2,243 by 8.4% and topped September 2021 sales of 1,713 by 42%. Volvo sibling Mack Trucks didn’t fare as well, with sales of 1,441 representing a decline of 9.6% from August sales of 1,594 — and a decline of 8.0% from September 2021 sales of 1,566. Kenworth reported a 5% sales decline, with August sales of 3,310 dropping to 3,146 in September. Compared with September 2021, however, sales numbers increased 19.8%. PACCAR sibling Peterbilt sold 3,317 Class 8 trucks on the U.S. market in September, rising 0.6% from 3,298 in August and showing an impressive 73.7% gain over September 2021 sales of 1,910. On a market share basis, Freightliner holds 38.1% of 2022 sales, down slightly from 38.3% at the same point last year, despite selling 5,695 more trucks. Peterbilt is next, with 15.1% compared to 14.8% at the same point last year. Kenworth is at 14.2% of U.S. Class 8 sales year to date, down from 14.8% at the same time last year, even though the manufacturer sold 1,207 more trucks. International is next with 12.4% of the Class 8 market, down from 12.6% at the same point last year but improved, with strong sales in the last several months. Volvo commands 11% of this year’s market, an improvement from 8.8% at the same point of 2021. Mack owns 6.3%, down slightly from 6.5% after the first three quarters of 2021. As a whole, the U.S. Class 8 market is 9.6% ahead of last year’s pace at the end of September and is performing better than predicted earlier in the year. As pundits continue to discuss an economic recession in the first half of 2022, Class 8 truck sales should continue to buck the trend by increasing. Lower freight rates, however, have already pushed more used trucks to the market, increasing the supply and beginning to push prices downward.

Ruan’s Van Alstine elected as ATA’s new chairman

SAN DIEGO — The American Trucking Associations’ (ATA) Board of Directors has elected Dan Van Alstine, president and COO of Des Moines, Iowa-based Ruan Transportation Management Systems, as the Federation’s 78th chairman. “I am humbled and truly honored to be here and to serve as your chairman of this great organization,” Van Alstine said. “It is an absolute privilege to represent the millions of Americans who move our country as part of the transportation and logistics industry.” Van Alstine succeeds Harold Sumerford Jr., CEO of Birmingham, Alabama-based J&M Tank Lines. “Dan is perfectly suited to be ATA’s next chairman. He listens, asks questions and then takes action – that’s leadership,” ATA President and CEO Chris Spear said. “His ability to get the best out of people by challenging and inspiring them is why he makes a difference, and we are fortunate to have him as our chairman.” Sumerford said: “I want to wish my friend and colleague Dan good luck as he starts this journey, which promises to be a truly special one. I also want to thank my fellow ATA members and the ATA staff for their support this past year, I could not have asked for a better year as chairman.” The Board also elected Andrew Boyle, co-president of Boyle Transportation, Billerica, Massachusetts, as ATA first vice chairman and, Darren Hawkins, CEO of Yellow, Overland Park, Kansas, as ATA second vice chairman. In addition, the Board named Dennis Dellinger, president and CEO of Cargo Transporters, Hickory, North Carolina, and Wes Davis, CFO of Big M Transportation, Blue Mountain, Mississippi, as ATA vice chairmen. In addition, the Board re-elected John M. Smith, chairman of CRST International Holdings LLC, as secretary and John A. Smith, president and CEO of FedEx Ground, as treasurer.    

Volvo’s electromobility tool to help customers make decisions on electric trucks

GREENSBORO, N.C. — Volvo Trucks North America has introduced a new electromobility total cost of ownership (TCO) tool to help potential customers decide whether purchasing and operating zero-tailpipe emission battery-electric trucks is right for them and their businesses. The TCO tool, now available for Volvo Trucks Certified Electric Vehicle Dealerships throughout North America, is part of Volvo Trucks’ “concierge approach to electromobility, which includes helping customers implement solutions that achieve both economic and environmental, social and governance goals,” a news release stated. “When evaluating the investment of deploying a truck into your fleet, the purchase price is only one factor,” Peter Voorhoeve, president of Volvo Trucks North America, said. “While battery-electric trucks currently require a higher up-front purchasing investment than traditional diesel trucks, customers can benefit from available funding and incentive programs. Additionally, electric trucks eliminate many of the standard maintenance requirements compared to diesel trucks and offer managed charging costs, and the ability to make meaningful progress toward sustainability goals. Our electromobility TCO tool helps customers to understand and evaluate the full impact of their fleet purchasing decisions.” Evaluating the TCO of operating a commercial vehicle requires the consideration of multiple fixed and variable costs throughout the vehicle’s lifetime, including purchase price, maintenance, fueling, funding, tax credits and other factors, according to Volvo. “Through the TCO tool, prospective electric adopters can see the bigger picture, allowing for better long-term purchasing decisions that help promote the decision to transition to zero-tailpipe emission transportation solutions,” according to the news release. “When all these factors are evaluated, the TCO tool provides fleets with a transparent projection and comparison of the lifetime cost between battery-electric trucks and their diesel counterparts — including costs for repairs and maintenance, the current price of diesel fuel and electricity, and the estimated cost to purchase and install fueling or charging infrastructure.” To learn more about Volvo Trucks North America and the Volvo VNR Electric, visit the company website.  

J.B. Hunt driver hits 5 million safe driving miles

LOWELL, Ark. – For just the second time in the company’s 60-plus year history, a driver for J.B. Hunt Transport Services Inc. has achieved 5 million safe miles driven without a preventable accident. Tony Broussard, a J.B. Hunt Intermodal driver who started with the company in 1987, surpassed the career-defining milestone on Oct. 21, according to a news release. As he pulled into the field office in Haslet, Texas, to end the day, Broussard was greeted with cheers from J.B. Hunt employees, company leadership and several family members, followed by a special ceremony highlighting his accomplishment. Broussard, a little surprised and always humble, addressed the crowd, who were still chanting his name. “All this celebration has made for a good day. I was surprised that my family was here!” Broussard said. “It just takes a team to get where I am. Hopefully, God willing and I’m in good health, seven years from now I’ll get that next million (safe miles).” Greer Woodruff, senior vice president of corporate safety, security and driver personnel at J.B. Hunt, was onsite to congratulate Broussard for joining the driving elite. “When you think about this, you just have to step back and say wow,” Woodruff said. “What an incredible accomplishment and an impressive tenure to be here 35 years. Tony, we admire you and appreciate you.” Throughout his 35-year career, Broussard has driven for multiple company business segments, always practicing a safety-first approach. He was part of the inaugural class of drivers in 1996 recognized for reaching 1 million-plus safe miles driven and participated in the company’s first Million Mile Celebration in 2001. Broussard will receive a $50,000 bonus for his achievement, bringing his career total in Million Mile safe driving bonuses to $125,000. “I am proud to celebrate Tony for his exceptional accomplishment as it is a rarity in the industry,” Nick Hobbs, chief operating officer and president of contract services at J.B. Hunt, said. “Tony’s strong sense of professionalism and dedication is one of the many reasons why he is being recognized today. Throughout his career, Tony’s commitment to safety has never wavered, which makes him one of the most elite drivers in company history.” Broussard will also be honored next year during the 2023 Million Mile Celebration at J.B. Hunt headquarters in Lowell. He will join Phil Fortin on the company’s Million Mile Wall as the only two drivers in company history to achieve five million safe miles, and, not coincidentally, the only two names on the wall marked with a big number five.

ACT Research: Class 8 Tractor Dashboard drops 5th time in 6 months

COLUMBUS, Ind. – Top line on the Class 8 Tractor Dashboard dropped in August to a -3 reading, according to ACT Research’s Transportation Digest. This is the fifth moderately downbeat reading in six months. “Dashboard readings to date suggest a more gradual deceleration in Class 8-focused metrics than was the case in our last three market downturns, the Great Recession in 2008, the popping of the global commodity price bubble in 2014, and most recently, the consequences of protectionist trade policy in 2019,” Kenny Vieth, ACT’s president and senior analyst, said. “Obviously, negatives are not positive, but the nearly unbroken string of -3 readings since March compares favorably to the double-digit Dashboard declines experience during those periods. We expect more and more negative readings are inbound, though they are not here yet.” Vieth said the trucking stock index pulled back into neutral territory, while residential construction expenditure deteriorated into negative territory, from neutral. “Of the 15 variables in the Dashboard, three were at ‘positive’ levels, down from four in July, while the number of variables in ‘negative’ territory increased from five to six,” Vieth said.

Women In Trucking Association names 2022 Influential Woman in Trucking finalists

PLOVER, Wis. — Women In Trucking Association (WIA) has announced the four finalists for the 2022 Influential Woman in Trucking award, sponsored by Daimler Truck North America. This is the 12th year for the award, which was developed in 2010 to recognize female leaders and to attract and advance women in the trucking industry. The award highlights the achievements of female role models and trailblazers in the trucking industry. The 2022 Influential Woman in Trucking award finalists are: Trina Norman, transportation operation manager, UPS. Jill Quinn, president, Centerline Drivers. Mari Roberts, vice president of transportation, Frito-Lay. Lindsey Trent, president and co-founder, Next Generation in Trucking Association.     Trina Norman has been with UPS for 32 years and “has proven to be a well-rounded leader and a global citizen,” according to a news release. “Her mission is to recruit, empower, mentor and encourage women to join the elite women behind the wheel at UPS.” Jill Quinn “drives business growth and performance excellence,” the news release stated. “With more than 25 years of leadership experience, Quinn leverages her knowledge and expertise to ensure customers receive the qualified drivers or skilled tradespeople they need to keep their businesses moving forward.” Mari Roberts leads a team of approximately 3,000 employees in both the field and headquarters organization responsible for the safety, cost and service performance of the 28 Traffic Centers in the U.S. and 3rd Party Carrier Operations. Lindsey Trent is the co-founder and president of the Next Generation in Trucking Association, a non-profit trade association with the mission to promote trucking as a positive career field, create trucking programs while encouraging training and employment of young people in the trucking industry and connect them to training and employment opportunities. “We’re impressed by the high caliber of finalists for this year’s award. All four demonstrate exemplary leadership and are making significant and positive contributions to their networks, workplaces, communities, and the transportation industry as a whole,” Ellen Voie, WIT president and CEO, said. “We applaud their passion and commitment to change the landscape in which women serve.” All four finalists will participate on a panel discussion at the WIT Accelerate! Conference & Expo held in Dallas on Nov. 13-16. The winner will be announced after the panel discussion on Nov. 15 at 9:15 a.m.  

Parade, TruckSmarter integrate for improved freight brokering

SAN FRANCISCO — Parade has announced a partnership with TruckSmarter that will give truck drivers real-time access to freight brokers. Brokers, in turn, can use the Parade platform to expand their carrier network and book freight with drivers via TruckSmarter, according to a news release. “TruckSmarter helps carriers and truckers find freight faster with its free load board,” the news release stated. “Users can act on their own volition and search by a variety of filters, including weight, distance, rates per mile, price, deadhead, pickup/drop-off radius and preferred brokers. Parade enables freight brokers to access TruckSmarter carriers through a single-click, zero-implementation integration.” A freight broker can immediately post freight to the TruckSmarter load board and begin receiving digital quotes on loads from interested carriers. Carriers can see all the available loads and book them based on their preferences, reducing the need for phone calls and manual activities. “TruckSmarter carriers get more bookings, while Parade freight brokerage customers get access to more carriers through the integration,” according to the news release. “There’s a sense of security you find with TruckSmarter that you can’t find with other load boards due to their invite-only system,” said Matt Newcomb, manager of carrier development at ARL Logistics LLC. “We can breathe easy knowing their quotes and carriers are not a part of the same logistics jungle most brokers are accustomed to.”