Business Archives

GreatWest Kenworth opens new parts, service dealership in Balzac, Alberta

The Trucker News Staff - August 9, 2022

BALZAC, Alberta – GreatWest Kenworth recently opened a new parts and service dealership in Balzac, Alberta, Canada, to support fleets and truck operators serving the greater Calgary and Airdrie markets. Balzac is located approximately 14.9 miles north from Calgary. The newly constructed 32,000 square-foot dealership sits on an 8.4-acre site, features 10 service bays and a nearly 2,300 square-foot parts display area supported by a well-stocked 8,000 square-foot storage space. GreatWest Kenworth – Balzac had temporarily operated at another company-owned facility since December while awaiting construction completion of its new facility. GreatWest Kenworth – Balzac’s new location is at 292217 Prime Avenue, in Balzac, just off Highway 2, a major truck route that begins at the U.S. border and runs north, connecting Calgary and Edmonton. Hours of operation are 7 a.m. to 5 p.m. Monday through Friday. The phone number is (587) 319-5950. GreatWest Kenworth operates five Kenworth dealerships in Alberta including, Calgary, Clairmont, Lethbridge, Redcliff and Red Deer. For more information about GreatWest Kenworth, visit www.greatwestkenworth.com.

Nikola announces 3 new California hydrogen dispensing stations

The Trucker News Staff - August 4, 2022

PHOENIX — Nikola Corporation will open three California hydrogen stations to advance and scale up its long-term hydrogen distribution solutions to service market demand, company officials announced this week. “Nikola’s integrated energy and zero-emissions truck portfolio will be underpinned by developing hydrogen supply and refueling infrastructure, an essential step in helping to decarbonize the heavy-duty transport sector,” according to a news release. The three California refueling stations and logistics infrastructure will be in the cities of Colton, Ontario and a location servicing the Port of Long Beach. To further support truck demand, plans for additional stations are in progress and will be announced soon. California is a launch market for Nikola, and the company says that these stations will support key customers and advance the state’s efforts to decarbonize the transport sector. “This marks an important step in Nikola’s ability to deliver innovative solutions and the infrastructure needed to decarbonize the transportation industry,” Nikola Energy President Pablo Koziner said. “Our hydrogen refueling stations, along with a comprehensive energy supply, will provide customers the support needed to transition their fleets to zero-emissions.” The Ontario location is part of Nikola’s previously announced collaboration with TravelCenters of America. “TA is committed to providing viable infrastructure to support the nation’s shift toward alternative fuels, and this collaboration with Nikola reflects our ongoing commitment to this goal,” Jon Pertchik, chief executive officer of TravelCenters of America, said. “The success of the transportation industry’s transition toward alternative fuel adoption is dependent, in part, on collaborations like this.” There are a number of distribution centers in the city of Colton, making it “an ideal location for future Nikola FCEV (fuel cell electric vehicles) customers,” the news release stated. “The establishment of a ‘clean fuel’ facility for heavy-duty commercial vehicles, such as semi-trucks, is a huge step forward in seeing the trucking industry move towards these types of vehicles,” Mario Suarez, planning manager of City of Colton, California, said. “Actions like these are building blocks to cleaner air for Colton residents and the surrounding region and we are proud to support initiatives that align with our vision,” The ports of Long Beach and Los Angeles are major global commercial transportation hubs and are focused on leading decarbonization. Our station servicing port customers will be a critical anchor of our hydrogen dispensing infrastructure. “The Nikola hydrogen refueling stations represent an important step forward to enable zero-emissions logistics solutions in Southern California,” Mike Bible, chief executive officer of TTSI, said. “The Port of Long Beach station is an ideal location to support ocean drayage solutions for TTSI and other logistics providers. “TTSI is excited about the prospects of hydrogen fuel cell technology as a viable solution to decarbonize the freight trucking industry.”

Fyda Freightliner Columbus opening new location on Aug. 8

The Trucker News Staff - August 4, 2022

COLUMBUS, Ohio — Fyda Freightliner Columbus will be opening its doors to customers at its new location in West Jefferson, Ohio, on Aug. 8. The dealership will now be located on 88 acres off I-70 at 2700 NE Plain City Georgesville Road, just a few miles west of its current location. “We have been planning for and working toward this day for quite some time,” Gary Tiffan, general manager of Fyda’s Columbus and Zanesville operations, said. “We are extremely excited about being able to serve our customers at our new location. Having everyone working together in one building will help us provide a more seamless and convenient experience for our customers.” In its current location, Fyda Freightliner Columbus has five buildings that house truck sales, parts & service teams, a body shop, detailing service, its vehicle finance partner Highway Commercial Services, and its corporate employees. The new 180,000-square-foot. facility will provide more service and body shop bays, larger parts inventory, more parking options and expanded capabilities and amenities such as gated parking, trailer parking, detailing services, walking paths, a four-acre pond stocked with several types of fish, a dog park and more. “We will continue to offer 24/7 parts and service, as well as regular hours for body shop and detailing services when the new dealership opens,” Tiffan said. “And we are still looking to fill several open positions for this relocation.”

Gabrielli truck sales becomes Volvo Trucks Certified EV dealer

The Trucker News Staff - August 1, 2022

GREENSBORO, N.C. — Volvo Trucks North America has designated Gabrielli Truck Sales, one of the largest and oldest commercial truck dealers in the Northeast, as a Volvo Trucks Certified Electric Vehicle Dealer. Gabrielli Truck Sales recently completed the required sales and service training, as well as the necessary facility updates to its Jamaica, New York, location, which is centrally located to support the New York City region, including John F. Kennedy International Airport. “Volvo Trucks continues to make meaningful progress on the path toward wide scale commercial deployment of VNR Electrics from coast to coast with our second Certified EV Dealer in New York State and the third in the Northeast region — a signal to the market that local and regional freight transport can be reliably accomplished with zero-tailpipe emissions,” Peter Voorhoeve, president of Volvo Trucks North America, said. “Gabrielli Truck Sales is in a key location to support fleets that operate in the boroughs covered by EV incentive programs, including the New York City Clean Trucks Program and the NY Truck Voucher Incentive Program, both of which are helping to make this region a growing hot spot for electromobility in the U.S.” The Volvo VNR Electric is specifically designed for local and regional distribution and was designed as a zero-tailpipe emissions transport tractor for fleet operators. Volvo says it’s suitable for drayage, pickup and delivery and food and beverage distribution in urban areas. “The densely populated neighborhoods in New York City will also benefit from the nearly silent battery-electric Volvo VNR Electrics, enabling off-hour deliveries without impacting the local community,” according to a news release. “Gabrielli’s experienced sales team is prepared to consult with fleets in the region on how battery-electric trucks fit in their operation and ensure the right Volvo VNR Electric configuration based on their fleet’s application,” the news release continued. “This includes evaluation of routes to determine which are the most ideal for electromobility, what to consider when investing in charging infrastructure, and available grants and incentives to offset project costs. Gabrielli is also installing high-powered EV charging infrastructure to service the VNR Electric and provide charging capabilities to local fleets as they begin adopting battery-electric vehicles.” The Jamaica, New York, location has a dedicated EV service bay equipped with the diagnostic tools needed to service the VNR Electric model. Two technicians have completed the robust technical training to service electric drivetrains and components. The technicians have also been equipped to safely perform battery-electric truck maintenance and repairs and have been outfitted with personal protective equipment for working with high-voltage systems. The dealership also maintains a stock of key parts and components for the VNR Electric model. “Gabrielli wants to be on the leading edge of the EV movement, and we have been seeing increased interest in battery-electric trucks from our customers,” Andrew Kanas, director of business development at Gabrielli Truck Sales, said. “We are one of the largest dealerships serving New York City, and we wanted to ensure we are ready to assist fleets locally and throughout the Northeast region with their transition to electric trucks.” Volvo Trucks now has certified EV dealers in California, Massachusetts, New Jersey, New York, Pennsylvania, Tennessee, Texas and Virginia, as well as in Quebec, Canada, with several dealerships across North America finalizing their certifications throughout 2022.

GLS US expands LTL services to Colorado

The Trucker News Staff - August 1, 2022

AURORA, Colo. — GLS US, a shipping company that offers parcel and freight delivery services to nine states across the West, will be expanding its less than truckload freight services to the Colorado market, the company announced on July 28. The move will allow Colorado’s population of more than 5 million consumers to access the company’s modern approach to regional next-day LTL services, the news release stated. “We are incredibly thrilled to announce our expansion,” GLS US Chief Operating Officer for Freight Service Joe Bartone said. “The need for reliable, quick shipping services is felt across the nation, and the GLS US team is dedicated to fulfilling it in the best way possible. The Colorado move was a pivotal one for our LTL offering. Colorado is the gateway to the West and this expansion helps solidify our West Coast Terminal Network.”

Time to buy? Class 8 sales strong in June but higher prices, interest rates are on the horizon

Cliff Abbott - July 29, 2022

In June, U.S. sales of new Class 8 trucks experienced the best month of the year to date, according to data received from ACT Research. Only one month — December 2021 — has seen higher sales numbers since the pre-pandemic month of December 2019. Manufacturers reported sales of 22,850 in the month, an increase of 1,578 trucks (7.4%) over May sales, which were the previous high for this year. Compared with last year’s June sales of 20,369, the increase was 12.2%. June was the second-best month since 2019. Only sales in December 2021 exceeded June 2022. “We had the best production month in the entire cycle in June,” said Kenny Vieth, president and senior analyst for industry forecaster ACT Research. “June was materially above the build rate trends.” The increased sales may be an indication that supply chain issues, such as the difficulty in obtaining semiconductors and parts that contain them, may be easing up. That doesn’t mean supply-chain issues are over, however. “We don’t know if whether this is an upside breakout due to parts becoming available on a steady basis or it is as simple as a couple of shipments came in, allowing the OEMs to catch up, temporarily,” Vieth said. Inflationary pressures could also be partly responsible. As consumers spend a greater portion of their income on food and fuel, it leaves less money available for purchase of products that contain semiconductors — which then become available for use in vehicle manufacturing. Of the Class 8 trucks sold in June on the U.S. market, 5,250 (22.5%) of the total sold were vocational trucks equipped with dump, trash, concrete or other bodies. That’s only a 2.8% increase over sales a year ago in June 2021, while sales of over-the-road, fifth-wheel-equipped tractors rose by 16%. According to Vieth, “If Daimler is having trouble getting parts and materials, Joe’s body shop is, too.” Another reason is the price of steel, including tariffs imposed by former president Donald Trump and left in place by Joe Biden. It takes a lot of steel to manufacture some types of truck bodies. The economy plays a part, too, according to Vieth. “Certainly what’s going on in the economy right now is more likely to impact vocational markets sooner than the over the road market,” he said. Vieth thinks the truck market will remain strong, at least for a while. “Vehicle demand remains healthy, if moderating from here, with pent-up demand expected to push into 2023,” he explained in a recent ACT press release. “Finally, some prebuy activity is anticipated prior to the implementation of CARB’s Clean Truck mandate, helping to support activity next year.” In the meantime, the number of orders placed for 2022 model equipment exceeds the industry’s ability to build them before switching over to 2023 models. “The North American Class 8 market ended June with a backlog of roughly 223,000 units,” Vieth said. “200,000 units are scheduled for build by the end of this year.” Since OEMs generally begin building new model year trucks on Jan. 1, many of the current orders for 2022 models will need to be canceled and reordered as 2023 models. Buyers can also expect increasing prices resulting from rising costs of parts and components. Those who finance new equipment will see an increase in the cost of borrowing as interest rates continue climbing. On June 15 the Federal Reserve raised its benchmark interest rate by three-quarters of a percentage point, the largest such hike since 1994. Economists expect further hikes by the end of the year, with some predicting another one-half to three-quarter percent rise at the FED’s July meeting. “That’s certainly one of the big headwinds we see in 2024 and then to 2024,” Vieth said. “Most of the big fleets tend to be cash buyers, so the smaller guys will be impacted most.” According to data from Wards Intelligence, of the individual truck manufacturers reporting, Freightliner led the way with U.S. sales of 8,129 trucks, good for 36.4% of new Class 8 sales during June. Sales increased 11.2% over May’s 7,309 and 9.5% over sales of 7,426 in June 2021. Kenworth and Peterbilt sales combined gave PACCAR 29.6% of the U.S. market in June. Kenworth’s 3,194 sold was an increase of 13.9% over May sales of 2,803 and 16.4% higher than sales of 2,743 in June 2021. Peterbilt sales of 3,418 were up 1.3% from May’s 3,375 and 19.9% higher than June 2021 sales of 2,851. Volvo and Mack combined for 19% of U.S. truck sales in June. Sales of 2,679 Volvo trucks were 5.2% higher than the 2,546 sold in May, while they were a whopping 82% higher than the 1,472 sold in June a year ago. Mack sold 1,560 trucks in June, an increase of 13.7% over May’s 1,372 but a decline of 3.8% from June 2021 sales of 1,704. International reported sales of 2,927 in June, up 4.6% over May sales numbers but down 3.8% from the 3,043 sold in June 2021. The company sold 13.1% of the new Class 8 trucks sold on the U.S. market in June. Western Star’s 451 trucks sold in June represent just 2% of the U.S. market — and a decline of 60 trucks or 11.7% from May sales of 511 trucks. Compared to June 2021 when 601 trucks were sold, sales declined by 25.0% Truck sales are typically stronger in the last month of each quarter, a fact that very likely contributed to the higher June numbers. July, being the first month of the new quarter, usually sees sales numbers that are somewhat lower. With the number of variables presented so far this year, however, no sales prediction is foolproof. The availability of more parts and components could push production closer to capacity. Another variable are trucks already built, waiting on the lot for one or two final parts to be installed before being sold. If the parts come in, those trucks could be sold without a production increase on the assembly line. Finally, it’s nearly time for manufacturers to begin producing 2023 model trucks. Buyers could choose to wait for the new models to come out, or could rush to buy 2022 models before prices go up.

HOS rules/logging devices knowledge is vital

Cliff Abbott - July 29, 2022

Love ’em or hate ’em, electronic logging devices (ELDs) are here to stay for the majority of drivers of commercial vehicles. Once ELDs became mandatory (for most drivers) in December 2017, tracking and reporting of drivers’ hours of service (HOS) was changed forever. Those changes began in the U.S. Legislature with the passage of a 2012 transportation funding bill known as Moving Ahead for Progress in the 21st Century Act, or MAP-21. A portion of that bill was the Commercial Motor Vehicle Safety Enhancement Act, which mandated the ELD rule. As directed, the Federal Motor Carrier Safety Administration (FMCSA) issued the final rule in December 2015, and the rule was fully enacted four years later. Drivers are still required to fill out paper logs if their ELD system isn’t working or when driving vehicles that aren’t ELD equipped, or if they have ELD systems that can’t accept data from the system in a previously driven truck. There is a limit of eight days of operation unless the truck or the work is exempted. Another issue is that drivers can come to depend on warnings and alerts from the ELD rather than mentally tracking their hours. Those drivers may need a refresher on the hours-of-service rules when paper logs are used. The basics haven’t changed much in a decade or more. Drivers of property-carrying vehicles can’t drive after 11 hours of driving or after 14 hours of combined driving and working (on-duty, not driving). There are exceptions to both rules, such as additional time allowed if the driver encounters adverse driving conditions that could not have been reasonably known at the beginning of the shift or trip. The driver must take a 30-minute break before or at the eight-hour driving mark. Thanks to a September 2020 change to the rule, the break can be used for non-driving activities such as fueling or inspections, as long as no driving is done. Before this change, the driver had to log off-duty, sleeper berth or a combination of the two for the break. Drivers can’t drive after 60 hours of driving or working in a seven-day period, or after 70-hours in an eight-day period. The 70-hour rule is typically used for trucking operations that run seven days a week, while the 60-hour rule is used by operations that regularly shut down on specific days each week, such as weekends. When the limits are reached, drivers must wait until the hours fall under the limit or take a 34-hour restart to reset those hours at zero before driving again. It’s important to note that the 14-hour rule and the 60 in seven and 70 in eight rules do not prohibit working beyond the set limits. The rules prohibit driving until the requirements are met, but non-driving work such as loading or unloading aren’t restricted. Drivers can work as many hours as they like, as long as no driving is done until the driver has had 10 hours off-duty or in the sleeper berth or the total hours fall below 60 or 70, depending on the rule used. The adverse weather provision is often misunderstood and misused. In order for a driver to drive extra hours under the rule, the circumstances causing the adverse conditions cannot have been reasonably known before the driving period began. For example, predicted rain can result in flooding over the roadway, or in certain conditions can quickly turn to snow and ice. An argument that those conditions could not have been reasonably known might be a solid one. However, if weather reports predicted freezing precipitation for several days, it becomes harder to argue that the driver couldn’t have known the roads would be bad. In another example, a traffic jam caused by an accident can’t be known beforehand — but claiming adverse driving conditions because of rush hour in a large city might not work as well. There are also specific regulations that govern ELDs. The first is that the device used must be registered with the FMCSA. That’s a process that begins with the manufacturer following the necessary registration steps, including a “self-certification” that the ELD meets all the requirements. The carrier must verify that the device is registered; if the carrier is a one-truck owner-operator business, the owner/driver has the responsibility. Registration can be done online at eld.fmcsa.dot.gov/list. The page includes a list of more than 800 registered devices and also includes a link to a list of devices for which the registration has been revoked. Also, it’s helpful to make sure the most current version of the ELD software is being used. Check with the manufacturer for updates. There may be a current problem with ELDs that depend on cellular networks to transmit data. The 3G network has been retired by every major carrier except Verizon, and even that one will be retired in December. Owners of ELDs that depend on the Verizon network should make sure their devices will operate on 4G or 5G networks. Smaller cellphone carriers such as Cricket, Pure Talk or Consumer Cellular contract to use the networks of larger carriers, so a phone-based ELD that works through another carrier could still use the Verizon network. There are rules that govern ELD capabilities, too. The device must be able to transfer the driver’s record-of-duty status (RODS) electronically to an inspector during a stop, confirm successful transmission and allow the safety official to enter a comment. During an inspection, some officials will be satisfied with looking at the driver’s record on the screen of the ELD, but many will want either a printout or a copy of the record. This can be accomplished in several ways. The safety official can connect via Wi-Fi or Bluetooth, or the ELD system can transmit via fax or email. Another option is to record the data on a thumb drive that the official inserts into his or her own device. Instructions for operating the ELD, and for transmitting data must be carried by the driver and provided to the safety officer on demand. Often, written instructions are included in the ELD program so that it isn’t necessary to carry printed materials. Knowing the provisions of the HOS rules and the workings of the ELD that records them is a vital part of any driver’s job.

Drivers need to be sure braking systems are in compliance before hitting the road

Cliff Abbott - July 28, 2022

One thing that large trucks and small automobiles have in common — at least since 1994 — is that each one sold in the U.S. is required to have self-adjusting brakes. The comparison ends quickly, however. Drivers of automobiles aren’t required to inspect the adjustment of their brakes before driving. They are under no obligation to check brake lines to make sure they’re secured and that no “chafing” is occurring. There’s no form to complete, attesting that the brake fluid level was checked and is satisfactory. For the most part, they hop into their four-wheelers and drive. On the other hand, drivers of commercial motor vehicles (CMVs) deal with all these things. There’s even a special week set aside during which law enforcement concentrates on brake safety, performing inspections nationwide to identify brake issues on CMVs. This year, the Commercial Vehicle Safety Alliance (CVSA) will be conducting its annual Brake Safety Week August 21-27. The special focus this year will be brake hose chafing, although inspections will also include brake components and adjustment. CVSA is a partnership between government agencies, law enforcement and trucking industry businesses. The CVSA determines inspection parameters, including what constitutes a minor violation versus one serious enough to put the vehicle out of service (OOS). The organization develops inspection techniques and provides guidance to law enforcement personnel so they know what, and how, to inspect. Many company drivers have an attitude that the truck owner (the carrier) is responsible for keeping the equipment in peak operating condition. Drivers who own their trucks know what their responsibilities are — but inspection of brake components is time-consuming and often dirty work, crawling underneath the vehicle to inspect components that can’t be seen from above. It’s easy for a driver to become complacent about brake issues, assuming they’ll be checked out and repaired during the truck’s next maintenance visit. However, because of the potential for catastrophic damage if brakes on a CMV aren’t working at full capacity, it’s important the driver be fully confident the entire braking system is in good shape. During Brake Safety Week 2021, a total of 35,764 CMVs were inspected in 50 North American jurisdictions (some states and) provinces did not participate). Of the total inspections, 12% were placed OOS for brake-related violations. Other violations resulted in warnings or citations but weren’t serious enough to warrant an OOS order. Keep in mind that inspection results data reflects only the percentage of trucks that are actually stopped and checked. Some media outlets regularly (and incorrectly) assign those number to all of the CMVs on the road. Trucks are chosen for inspection for different reasons, ranging from totally random selection to deliberate selection of trucks with visible issues, older trucks or even trucks from a particular industry, like logging or trash hauling. Some inspectors deliberately select trucks that appear more likely to have violations. That’s good for highway safety, but can reinforce public perception that trucks are dangerous. To ensure a positive experience during an inspection and to maximize the vehicle’s safety, the driver needs to know the condition of the entire braking system, including its individual parts. Because of vehicle movement, reinforced rubber or thermoplastic hoses are used where the lines are expected to move around. Supports and brackets are often used to keep them separated so they cause damage, known as chafing. These supports and brackets can break or move. In addition, lines used to replace old or damaged lines may not be of the same length as the original, allowing for more movement or contact with other hoses or parts of the vehicle. Identifying chafing isn’t difficult, but frequent inspections should be made. This may require a flashlight to see lines in shadowy areas or at night. Lines that contact an object, including other lines, should be moved or adjusted to prevent contact. Lines should be replaced when chafing become obvious. Air leaks are another issue that is easy to overlook, especially on trailers. Service brake lines are charged with compressed air when the brake pedal is depressed or a hand brake, if equipped, is pulled. Unfortunately, an air leak in a service line toward the rear of a trailer can be difficult to hear from the cab of the truck. To compensate for this, try opening the cab windows while depressing the brake pedal and listening for leaks. It’s even better if two people work together, one depressing the brake while the other listens. Brake hoses that are kinked or that have improper repairs are also cause for concern. Occasionally an emergency brake line repair might consist of a splice made with a piece of metal pipe and a couple of heater-hose clamps. While such a repair might be enough to get the brakes working and get the truck out of the road, they can be dangerous and are cause for being placed OOS during an inspection. Beneath the truck, slack adjusters should be checked for proper travel when brakes are applied. Travel distances can differ based on the size and the manufacturer of the parts, so the driver may need to research to determine the correct travel measurement to look for. The National Transportation Safety Board (NTSB) and most manufacturers recommend that adjusters that fail NOT be adjusted to bring them into compliance. If they are out of adjustment, they should be replaced. The thickness of brake shoes or pads is another item that can result in an OOS order. Generally, brake shoes must have a quarter-inch remaining. Pads for disc brakes can be an eighth of an inch. On many trucks, the pads are exposed and easily visible. On others, there may be an inspection plate that must be removed to observe thickness. Check drums and rotors for cracks, too. Small “check” cracks in the drum surface that contacts brake shoes are normal, while any cracks elsewhere can be grounds for being place out of service. Knowing the condition of the braking system can help ensure drivers are getting maximum stopping power and help them keep rolling in the event of an inspection.

Fleet Advantage partners with Kids in Distress to host back to school backpack drive

The Trucker News Staff - July 27, 2022

FORT LAUDERDALE, Fla. – Fleet Advantage will be hosting a Back-to-School Backpack Drive Wednesday, Aug. 3, in partnership with Kids In Distress (KID), a 501(c)(3) nonprofit organization providing early intervention and treatment for abused, abandoned and neglected children. Through its Kids Around The Corner Foundation, Fleet Advantage will visit Kids In Distress’s main campus, the Leo Goodwin Foundation Campus (819 NE 26 Street, Ft. Lauderdale, FL 33305) from 10 a.m. to 11:30 a.m. Eastern Standard Time to supply backpacks with school supplies for children and their families who rely on Kids In Distress’s foster care, education and family strengthening support. Fleet Advantage also supplied Kids in Distress with a mural for their preschool building back in 2014, as well as a financial contribution in 2020. “Fleet Advantage’s support in our Fort Lauderdale community is more than appreciated, not only by our entire staff, but the families and children we care for each and every day,” Mark Dhooge, president and CEO, Kids in Distress, said. “Kids In Distress is incredibly thankful to have school supplies provided for our children and we can’t wait to have them start the school year successfully.” Elizabeth Gomez, marketing manager for Fleet Advantage, said that the company is “proud to continue our long-standing relationship with Kids in Distress and our employees recognize the importance of giving back to our local community. Since 2014, our Kids Around the Corner Foundation has helped over 30 charities since inception, donating more than $220,000, and we look forward to continuing our commitment of bringing hope and lasting change to the children and their families.”

In for a rough ride: Signs point to higher fuel costs, lower freight rates and a possible recession

Cliff Abbott - July 27, 2022

June tonnage reported to the American Trucking Associations (ATA) rose by 2.7%, bucking the industry trend as reported by other sources. Much of that increase is due to carriers picking more loads from customers they have contracts with, according to ATA’s Chief Economist Bob Costello. “Essentially, the market is transitioning back to pre-pandemic shares of contract versus spot market,” Costello said in a July 18 press release. “ATA’s tonnage index is dominated by contract freight, so while the spot market has slowed as freight softens, contract carriers are backfilling those losses with loads from shippers reducing spot market exposure.” For much of the past year, the industry has seen spot rates rise to record levels. Contracted rates, following the usual cycle, were slow to catch up. With supply chain constraints and manufacturing slowdowns, many carriers kept their trucks moving by finding loads on the spot market. Now, we’ve entered a later stage of the cycle. Spot rates are trending downward, while carriers who negotiated new contract rates with their customers are seeing those efforts pay off. The 2.7% increase in June follows a 0.3% May increase. ATA’s June index equaled 120.1, putting the month 20.1% ahead of the 2015 baseline used by ATA. On a seasonally adjusted basis, the June result was the 10th straight year-over-year gain. The Cass Freight Index, which measures shipping volumes and expenditures from multiple modes of transportation, declined 2.6% in June from May values. Compared to June 2021, freight volumes fell 2.3%. The Cass release indicates shipments have been down four of the six months reported this year and notes that inventory has shifted from “a major tailwind” to a more neutral posture but could become a headwind later this year. That’s an indication that retailers and manufacturers that previously couldn’t get enough products have reached inventory levels and slowed ordering for new products. Decreased consumer demand, fueled by inflation, has caused reductions in shipping orders. The Cass Freight Index measures freight hauled by rail, truck, ship, barge, pipeline and air. In FTR’s “Mid-Year Lookaround,” released on June 30, Steve Graham, analyst at FTR, said, “We are living in strange times. First, a 100-year pandemic that brought out the best and worst of humanity. Some of the policy responses could be up for debate.” He cautions that we should not ignore the reality of inflation. He also mentioned recession, saying, “The probability of a recession emerging in the next year is about even, or 50/50.” Inflationary pressures abound, with higher prices for food and fuel taking a larger chunk of consumers’ paychecks. People have to eat, and they need gas to get to work. They can, however, do without new computers, appliances and other nonessential products. The result is that shipment numbers come down, bringing spot freight rates down too. According to the latest “Trendlines” report from DAT Services, spot loads posted in June on the country’s largest load board declined by 20.2% from May; in June 2021, the decline was 26%. A decline of more than one-fifth of the number of posted loads in only one month is huge. Fewer loads means more competition for the loads that remain — and lower rates too. Spot rates for van freight declined 0.9% in June from May rates but are still 0.5% higher than they were in June 2021, just a year ago. Flatbed rates peaked a little later than van and refrigerated rates on the DAT board. For June, they were 0.1% lower than in May but were still 9.5% higher than June 2021. Refrigerated rates declined a full percentage point from May and were 1.6% lower than in June 2021. Rates are still at a comfortable level compared to 2020, when the market plunged due to COVID before rebounding quickly. There is, however, another issue — fuel. Nationwide average diesel prices reached a peak of $5.72 per gallon on June 20, according to the U.S. Energy Information Administration (EIA). During that same week, diesel prices averaged $6.92 in California, with multiple retailers charging over $7 per gallon. Diesel prices have been falling since then, but are still over the $5 mark at the time of this writing. During the same week of 2021, a gallon of diesel sold for $3.29. A year before that it was $2.42. Carriers large and small have issues coping with higher fuel costs. Combining higher fuel cost with lowered freight rates on the spot market can have devastating results on the smallest carriers. To help keep inflation in check, the Federal Reserve announced an increase in its most favorable interest rate of 0.75%. The group indicated at the time that a second increase of the same amount was likely to be imposed at the July meeting toward the end of the month. A poor inflation report in July, however, has them talking about the possibility of a full 1% increase. While such action may slow the economy, the total cost of homes, cars and other items that require financing will rise considerably, as will finance costs for new and used trucks. Trucking enjoyed a strong market with favorable freight rates for almost two years, but the downcycle has begun. Expect a rough ride for the rest of the year.

HDVI brings safety data-driven insurance option to Arizona fleet owners

The Trucker News Staff - July 27, 2022

CHICAGO — High Definition Vehicle Insurance (HDVI) announced Tuesday its expansion into Arizona, where, company officials say, its telematics-based insurance solutions and safety coaching “can now be used by small and midsize trucking fleets to lower their insurance costs.” Approximately 85% of Arizona communities depend exclusively on trucks to move their goods, according to research compiled by the American Transportation Research Institute, which noted that the trucking industry paid about $719 million in federal and state roadway taxes during 2019, almost half of all taxes owed by Arizona motorists. Trucking companies in the state are small and locally owned served by a wide range of supporting businesses. “The trucking industry is a vital pillar of the economy despite an extremely challenging business environment consisting of historically high fuel costs, driver shortages and increasing insurance premiums,” said HDVI co-founder and CEO Chuck Wallace. “Our sophisticated safety and risk-management tools help these small to midsize fleets protect their drivers, operate more efficiently, and save on insurance costs.” HDVI Shift, the first-of-its-kind dynamically priced commercial trucking insurance coverage, uses onboard telematics data to provide small to midsize fleets real-time risk models — advanced tools that are usually only available to mega-fleets. Rather than wait years for a traditional insurance company to recognize and potentially reward safety gains, HDVI Shift helps fleets save up to 12% on their monthly premium based on real-time driver safety. During the first year of HDVI Shift, and based on 20 million miles of telematics data, fleet customers earned better than average safety scores with 30% fewer predicted crashes, a news release stated. Additional quantifiable results show that over 75% of its customers saw an improvement in speeding or hard braking in the first six months. This number rises to over 90% after nine months of becoming an HDVI Shift policyholder. “HDVI delivers connected and tailored services by providing safety insights through its fleet portal and personalized monthly meetings that identify actions based on telematics data to improve safety and reduce insurance costs,” according to the news release. “Drivers are also engaged through the HDVI Driver+ mobile app, where they receive valuable safety information. HDVI Shift policies pay for hardware, installation, and subscriptions for a wide range of suppliers of video telematics devices.” “HDVI Shift and Driver+ are just the first of many coverage and product innovations we will bring to the industry,” Wallace said. “As we look ahead, we’re already working on developing Shift 2.0, which will use data to reward fleets for safety gains already achieved right from the start of the policy.” Backed by a workforce that has doubled over the past year, the company primarily serves small and midsized trucking fleets in 15 states: Alabama, Arizona, Arkansas, Florida, Georgia, Illinois, Indiana, Michigan, Minnesota, Missouri, Ohio, South Carolina, Tennessee, Texas and Wisconsin. That number will grow to 25 by early 2023. For more information, visit https://hdvi.com.

US trailer order placement continues to be choppy

The Trucker News Staff - July 26, 2022

COLUMBUS, Ind. – June net U.S. trailer orders of 25,444 units were 31% higher compared to last month, and nearly 122% above the year-ago June level, according to this month’s issue of ACT Research’s State of the Industry: U.S. Trailer Report. “Order placement remained choppy in June, with dry van and bulk tank net orders sequentially increasing by double digits and responsible for the total industry uptick. On the other hand, reefers and flats saw double-digit drops compared to May’s net order levels,” Jennifer McNealy, director–CV market research and publications at ACT Research, said. “OEMs continue to negotiate with fleets, and as some 2023 order boards have opened, those efforts are quickly moving from staged/planned orders to booked business.” McNealy said that while some OEMs have opened part of their 2023 build slots, discussions indicate that others are holding to their plans to wait just a bit longer. “Trailer manufacturers continue to face supply-side challenges, material availability and labor, but are now reporting improvements in both,” she said. “Demand remains strong, despite increased pricing, and cancelations, although ticking upward, are insignificant, as fleets in queue need the equipment and plan to stay in queue until orders are converted to deliveries. The industry closed June with a 7.6-month backlog-to-build ratio, which commits the industry, on average, into early 2023.”

ACT Research: Used Class 8 Retail sales, prices, miles, age climb in June

The Trucker News Staff - July 26, 2022

COLUMBUS, Ind. – According to the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research, used Class 8 retail volumes (same dealer sales) were 1% higher month-over-month. Longer term, volumes dropped 44% y/y and were 34% lower ytd. Average price and miles were down 6% and 1%, respectively, compared to May, but average age rose 5% m/m. Longer term, average price was higher y/y and ytd, as were average miles and age, with price up 74% ytd June, average miles 3% higher compared to the first six months of 2021, and average age 6% older for the same time 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 held almost steady in June,” Steve Tam, vice president at ACT Research, said. “The gain is smaller than expected, at least as far as typical seasonality is concerned. Normally, volumes are about 5% larger in June, relative to May. In the grand scheme, June sales are very average, meaning almost no seasonal adjustment is necessary to account for buying habits and/or patterns.” Tam said seasonality is not the over-arching driver of volumes in the current market. “The picture is much more dependent upon what is happening in the economy, freight markets, and with new truck production and sales,” Tam said. “Clearly, there are concerns in the economy that have direct implications on the used truck market. As the economy and freight begin to cool from their torrid pace over the past two years, it is logical and expected to see demand for commercial vehicles, both new and used, slow. However, demand is not all about what is happening today. As new and used truck buyers were denied access to equipment because of the supply-chain crunch, they were forced to extend their trade cycles and age their fleets. While this is a short-term tactic, it is a situation that needs to be rectified. It is that replacement of older trucks that will sustain the industry through the trough of the current cycle.”

Yellow Corporation opens tuition-free driving academy in Detroit

The Trucker News Staff - July 25, 2022

NASHVILLE — Yellow Corporation is opening its 21st Driving Academy in Detroit, the company’s first in Michigan, to train semi-truck drivers. After receiving a license, students are offered a driving position with additional on-the-job training at Yellow. Students will also learn the operations side of the trucking and logistics business while being paid an hourly wage throughout the program. “Our Driving Academies open the door to an entirely new career for men and women who want to earn a good living with benefits,” Tamara Jalving, vice president of safety and talent acquisition at Yellow, said. “Training our own drivers is also the best way to tackle the driver shortage in America “We’re thrilled to own and operate 21 permanent Driving Academies throughout the United States. In the last year, we have opened nine new Academies, with more scheduled to open later this year in other parts of the country.” Addressing the nationwide shortage of qualified professional truck drivers, estimated at 80,000 by the American Trucking Associations, is at the forefront of Yellow’s Driving Academy strategy. “We’re not only bringing in new drivers but we’re also meeting more diverse candidates as we aim to train 1,000 new drivers this year,” Darren Hawkins, CEO of Yellow, said. “We’re introducing a wider and broader audience to the trucking industry.” Each of Yellow’s Driving Academies is certified as a Department of Labor (DOL) apprenticeship program, which is designed to provide paid on-the-job instruction for workers as they prepare for a career that is in high demand. Click here to learn more about the apprenticeship program. Yellow was recently named a DOL Apprenticeship Ambassador to help to promote, expand and diversify other skilled apprenticeship programs across the country. “Yellow Corporation has been a strong partner in the Department of Labor’s work to champion Registered Apprenticeships as a valuable workforce strategy that expands access to underserved communities to high-demand industries, such as trucking,” Secretary of Labor Marty Walsh said. “The success of Yellow’s CDL Driving Academy in producing some of the safest drivers on the road reflects the benefits of high-quality, earn-as-you-learn training that connects drivers to good jobs, and strengthens our nation’s supply chains.” “We’re honored to serve as a DOL Apprenticeship Ambassador,” Hawkins said. “Our Driving Academies serve as a model for other employers looking to train professionals for careers in transportation and logistics.” Learn more about Yellow’s Driving Academies at https://www.myyellow.com/us/en/careers/driving-academy.

ACT Research: Class 8 Tractor Dashboard remains downbeat

Joseph Price - July 25, 2022

COLUMBUS, Ind. — According to ACT Research’s recently released Transportation Digest, the top line on the Class 8 Tractor Dashboard was unchanged in May, the third month of moderately downbeat readings. “Our interpretation of the recent Tractor Dashboard reading is a gradual erosion of Class 8 market demand into the second half of 2022, but no ‘spiral down’ and certainly not a ‘cliff event’,” Kenny Vieth, ACT president and senior analyst, said “With a recession in 2023 now our base case, we think the dashboard reading, while negative, still suggests a better outcome for Class 8 than was the case in our last two recessions (COVID 2020 and the 2008-09 Great Recession), as supply constraints have kept the industry from overbuilding in the leadup to the downturn.” Vieth said that disaggregating the dashboard reveals the most pronounced adverse trends in the freight segment, with four of five indicators in negative territory. “The readings from the economic and ACT State-of-the-Industry data sets are more of a mixed bag of positives, neutrals and negatives,” Veith said. “For readers who are new to this framework or want a refresh, we believe that the dashboard offers a three to six-month forward-looking metric for conditions in the tractor market.”

KLLM adds to company portfolio with acquisition of Georgia-based reefer company

The Trucker News Staff - July 22, 2022

JACKSON, Miss. — KLLM Transport Services (KLLM) has acquired Cartersville, Georgia-based refrigerated transporter Quest Global Inc. “The acquisition of Quest Global Inc. will enhance KLLM’s premium service offerings now with expedited, temperature-controlled shipping nationwide,” KLLM CEO Jim Richards said. “Quest Global Inc. has been a well-run, safety-driven company for years. Their culture and values are a great fit with our family of companies, and we’re thrilled to have them as part of the KLLM family.” The operation will continue to run out of the Cartersville location and be branded as KLLM Expedited Services, a news release stated. “Building Quest Global, Inc. has been my life’s work, and I could not have found a better home than KLLM for the Quest family,” Jason Dickerson, CEO of Quest Global, said. “Within five minutes of meeting Jim Richards, I knew KLLM was a perfect fit because of their family values, respect for their employees, and dedication to providing the best customer service possible. As a family-oriented company, my goal was to find the best home for our people for years to come, and I look forward to being part of the team to ensure a smooth transition.”

Love’s new location in Pennsylvania adds 130 truck parking spaces

The Trucker News Staff - July 21, 2022

OKLAHOMA CITY – Love’s Travel Stops is now serving customers in Brookville, Pennsylvania, thanks to a travel stop that opened Thursday. The store, located off Interstate 80, Exit 81 (1373 Route 28), adds 130 truck parking spaces and 55 jobs to Jefferson County. “Opening our seventh location in Pennsylvania, means giving customers the Highway Hospitality they know they’ll get when they stop at Love’s,” Greg Love, co-CEO of Love’s, said. “The new travel stop in Brookville will help professional drivers and four-wheel traffic get back on the road safely and quickly while providing plenty of amenities and fresh food and drink options.” The location is open 24/7 and offers many amenities, including: More than 12,000 square feet. Wendy’s. 130 truck parking spaces. 79 car parking spaces. Seven RV parking spaces. Nine diesel bays. Speedco. Seven showers. Laundry facilities. CAT scale. Bean-to-cup gourmet coffee. Brand-name snacks. Fresh Kitchen concept. Mobile to Go Zone with the latest GPS, headsets and smartphone accessories. Dog park. In honor of the grand opening, Love’s will donate $2,000 split between the Pine Creek Fire Department and the Jefferson County 4-H Club.

Pilot, Bridgestone introduce fleet tire monitoring, service network

The Trucker News Staff - July 21, 2022

NASHVILLE, Tenn. — Bridgestone Americas and Pilot Company are collaborating on an advanced tire monitoring and service network for commercial fleets at select travel center locations. “This collaboration leverages Bridgestone Fleet Care mobility solutions and Pilot Company’s network of travel centers to provide more convenient, frequent and actionable fleet tire intelligence,” a news release stated. “The initial trial phase will begin this summer with a rollout of the tire monitoring technology at 200 Pilot and Flying J locations.” Each router currently being installed in the fuel canopies of select Pilot and Flying J travel centers is linked to the Bridgestone tire pressure monitoring solution, IntelliTire and transmits real-time tire data in two minutes or less from trucks and buses to fleet managers. “IntelliTire combines durable hardware with a software application to allow fleet operators to proactively address specific tire issues and mitigate unplanned maintenance, reducing downtime and improving driver safety,” according to the news release. “Fleets using this technology will have access to critical data such as tire inflation pressure and temperature, enabling them to continually monitor the health of each tire throughout its lifecycle.” Chris Ripani, president of Commercial Tire Group at Bridgestone Americas, said that “physical, on-the-ground touchpoints are critical elements to the success of digital, data-driven fleet solutions, and together they enable synergies to improve mobility. With a robust footprint and strong fleet relationships, Pilot Company is the perfect partner to help us develop a connected network that is designed to allow our shared customers to minimize downtime, save on costs and improve driver safety now and in the future.” Shameek Konar, Pilot Company CEO, said: “With the safety of our customers in mind, we are leveraging our network of Pilot and Flying J travel centers to help deliver IntelliTire technology to the road—making it easy for fleets and drivers to maintain their trucks and minimize downtime during routine fuel stops. This project is part of our larger focus to add new technologies and services to make road travel better, safer and more efficient for our guests.” For more information on Bridgestone commercial solutions, visit bridgsetoneamericas.com. For more information on Pilot Company’s nationwide network of travel centers, visit pilotflyingj.com.

Shelley Simpson announced as new J.B. Hunt president

The Trucker News Staff - July 21, 2022

LOWELL, Ark. — J.B. Hunt Transport Services Inc., one of the largest supply chain solutions providers in North America, will soon have a new leader. The board of directors elected Shelley Simpson, 50, as company president effective Aug. 1, according to a news release, which noted that the vote in favor of Simpson took place on Wednesday. Over Simpson’s 28-year career at J.B. Hunt, she has served 15 years in executive leadership roles, most recently as chief commercial officer and executive vice president of people and human resources, in addition to leading international services and corporate marketing, the news release stated. John N. Roberts III will remain chief executive officer and a member of the J.B. Hunt board of directors — a new management structure for the company, J.B. Hunt officials said. “Over her tenure at J.B. Hunt, Shelley has worn multiple hats across our business, bringing a data-driven, experienced-based approach to every area she has led,” Roberts said. “If you look at the most disruptive areas of our company, from new technologies to global commercialization to investments in our people, Shelley’s innovative leadership has always guided us toward positive results.” Simpson will take charge of oversight of all management duties and performance for all company business units, emerging technology, developing services and people and human resources. In 2007, Simpson was named president of integrated capacity solutions (ICS), a business unit she helped to create. Simpson assumed sales and marketing executive responsibilities in 2011 as chief marketing officer. She took on additional leadership in 2014 as president of J.B. Hunt’s Truckload business segment. Simpson was named chief commercial officer and president of highway services in 2017 and led the strategic direction and launch of J.B. Hunt 360°®. In 2020, Simpson added responsibilities for people and human resources. “Simpson’s career at J.B. Hunt reflects the company’s progression as an innovative leader in the transportation and logistics industry, a tradition that started with company founders Johnnie Bryan and Johnelle Hunt in 1961,” the news release stated. Since 2017, the company has nearly doubled in revenue and reported revenue of $14 billion in the trailing 12 months. Simpson praised Roberts’ tenure as president, saying that she is grateful for his “continued leadership and growth mindset.” Simpson added: “As our year-long 60th anniversary comes to a close, I can’t help but reflect on our company’s storied history of innovation. From leading the way as the industry’s first asset-based intermodal service provider to leveraging the benefits of technology for shippers and carriers through J.B. Hunt 360, our people have and will continue to fuel our growth through a cycle of innovation that is intrinsic to our organization. “We have an exceptional executive leadership team in place with an average tenure of more than 25 years at the company. As I take on this new role, I remain committed to empowering our people to continue to disrupt, adapt and accelerate and fiercely focused on driving value for our customers, with financial discipline and dedication to our mission to create the most efficient transportation network in North America.” In addition to these changes, Brad Hicks will continue as president of highway services and will take on additional responsibilities as executive vice president of people. Hicks has been at the company for 26 years and has served in executive roles since 2017. Spencer Frazier will assume the role of executive vice president of Sales and Marketing. Frazier has been with the company for 21 years, most recently serving as senior vice president of Sales, a role he has held for the past 11 years. J.B. Hunt operates one of the largest company-owned fleets in North America with approximately 111,000 intermodal containers, 20,000 tractors and 40,000 trailers.

ArcBest gives update on environmental, social and corporate governance initiatives

The Trucker News Staff - July 20, 2022

FORT SMITH, Ark. — ArcBest has announced an update on the progress the company has made advancing its environmental, social and corporate governance (ESG) priorities. This update follows the release of ArcBest’s third annual ESG report in June. “The actions we’ve taken already this year demonstrate ArcBest’s commitment to investing in and advancing ESG initiatives that are critical to our business, our customers’ businesses, and the world we live in — and we are not slowing down,” said Judy R. McReynolds, ArcBest chairman, president and CEO. “As we press forward, we are investing in innovative technologies, developing our talented and hardworking employees, enhancing ArcBest’s capabilities and service for customers, and focusing on the sustainability of our operations and supply chains across the world. We are confident that our proactive approach will differentiate ArcBest as a sustainable investment opportunity and an industry leader.” ArcBest made notable progress in several areas throughout the first part of 2022: Purchased electric straight trucks to pilot at its ABF Freight service center in San Bernardino, California: The company purchased a pair of electric “Lion6” Class 6 straight trucks from Lion Electric. Early testing will assess where electric vehicles fit best in less-than-truckload operations and options for charging infrastructure. The company also recently purchased Orange EV electric yard tractors, soon to be in operation at ABF service centers in San Bernardino, California; Dallas, Texas; and Salt Lake City, Utah, as well as Mitsubishi lithium-ion battery electric forklifts in operation ABF’s Kansas City, Missouri, service center. Joined with partners across the transportation industry to end human trafficking: ArcBest has been a long-time supporter of the fight against human trafficking through its partnerships with Truckers Against Trafficking and Polaris. In June 2022, ArcBest expanded its human rights efforts by signing the U.S. Department of Transportation (DOT) Transportation Leaders Against Human Trafficking (TLAHT) pledge. The pledge calls transportation industry leaders to a joint effort to eliminate this crime by educating employees to recognize and report human trafficking and raising awareness in the public transportation sector. Earned second consecutive EcoVadis Bronze medal for sustainability: Following the completion of a sustainability assessment in the first quarter of 2022, and for the second consecutive year, ArcBest received the EcoVadis Bronze medal. EcoVadis, a provider of holistic business sustainability ratings, benchmarks the quality of companies’ ESG performance across 21 indicators in four categories: environmental, labor and human rights, ethics and sustainable procurement. This rating recognizes ArcBest’s sustainability performance in the top half of all companies and industries rated across the world. Named a 2022 Inbound Logistics Green (G75) Supply Chain Partner for the 11th year: ArcBest was also once again selected as a 2022 Top Green Supply Chain Partner by leading industry publication Inbound Logistics. The annual G75 list recognizes the top 75 companies that are dedicated to developing and implementing best practices that leave a positive footprint on the world — going above and beyond to ensure their global supply chains are sustainable and their operations are socially and environmentally friendly.