Business Archives

Landstar recognizes Customer of the Year, Safety Officer of the Year

The Trucker News Staff - June 11, 2021

JACKSONVILLE, Fla. — Landstar System Inc. recently recognized its 2020 MUST Customer of the Year, as well as its Safety Officer of the Year. Southwire Co. LLC, headquartered in Carrollton, Georgia, is the Overall Landstar MUST Customer of the Year. Landstar’s Mutual Understanding of Safety Together (MUST) program involves an extensive on-site review of a customer’s facility, followed by discussion and analysis of safety and securement practices. Traditionally presented during Landstar’s annual agent convention, this year Landstar President and CEO Jim Gattoni made the announcement during a presentation to independent Landstar agents via a conference call. During the announcement, Gattoni also recognized Landstar Agent Lisa Nestor, owner of Success Transportation Inc., the independent Landstar agency that provides Southwire with transportation logistics services. “Together, Landstar and Southwire Co. LLC reviewed carrier safety and securement procedures at the facility to support our mutual commitment to a safety-first culture,” said Mike Cobb, Landstar Transportation Logistics’ vice president of safety and compliance. “Lisa, her agency and Landstar’s safety personnel did a great job creating a system to increase security at the customer’s facility, designed to confirm the identity of each driver, truck and trailer arriving to the plant.” During a separate conference call, Landstar named Mohammad “Mo” Chatila, managing partner at Let’s Move It LLC in St. Augustine, Florida, as the Landstar Safety Officer (LSO) of the Year. Mo Chatila serves as the designated LSO for the independent agency, which is owned by Yosseff Chatila. The designated LSO for each of Landstar’s approximately 1,200 independent agent locations promotes safe, secure and compliant driving, participates in Landstar’s network-wide monthly Safety Thursday conference call and supports customer safety initiatives. Each month, Landstar names one LSO of the Month; the LSO of the Year is selected from this group. Chatila was selected as 2020 LSO of the Year because of his outstanding support of the Landstar safety culture. The Let’s Move It agency did not experience a single preventable accident in 2020. With more than 6 million Landstar business capacity owner miles booked, Let’s Move It increased its revenue 22% in 2020 compared to 2019, all while improving the agency’s safety results. Cobb commended Chatila on receiving the Landstar Safety Officer of the Year Award. “Mo promotes safety at the agency by always communicating about safety and security procedures with carriers and customers,” Cobb said. “The agency promotes Landstar’s Complete and Accurate Dispatch process and supports customers with Landstar safety initiatives.”

April freight levels dropped slightly from a robust March but rates still excellent

Cliff Abbott - June 11, 2021

Strong freight rates continued to drive trucking revenues upward in April, despite some loss of volume, according to reports received from several sources. The Cass Freight Index for Shipments, which measures shipments across a variety of transportation modes including rail, pipeline, ship, air and truck, fell by 1.5% from March shipment numbers. A part of that drop is cyclical. Final months in each quarter (like March) are usually strong, while the following month are typically less so. As the economy rallies back from COVID-19 shutdowns, however, there are additional issues this year. Shortages of semiconductor chips and other products are creating a drag on manufacturing, while record prices for steel and other commodities are slowing assembly lines, particularly in the automotive and heavy-duty truck sectors. Automotive shipments via railroad dropped about 20% from March to April, according to the Cass report. Steel supplies took a hit when India, the world’s second-largest steel producer, experienced a rash of COVID-19 cases. Oxygen needed for steel production was instead sent to hospitals to treat the growing number of patients. Another factor is that some of the March shipping was a carryover from February’s polar vortex, pushing March shipment numbers higher than they otherwise would have been. Compared to 2020, however, the economy is roaring back. The Cass Freight Index of 1.178 in April was 27.6% higher than in April 2020, when the economy was nearing its lowest point. Compared to April 2019, when nobody had even heard of COVID-19, the shipment index dropped by 1.3%. Without commodity shortages, it’s likely this year’s shipments would have equaled or exceeded 2019 numbers. While shipments struggle to reach pre-pandemic numbers, the amount of money spent on shipments continues to rise. For example, the Cass Expenditures Index set its fourth new record in five months, coming in a whopping 45.1% higher than the April 2020 index. The Cass Trucking Index measures freight demand and truck supply. The April index showed a decline from March; however, the index was into positive territory for the 11th consecutive month. Shippers are having difficulty finding enough trucks to haul their products and are paying high rates for those they find. The trucking industry has experienced difficulty in adding trucks, due to decreased production, as well as drivers, due to worsening shortages. Parts shortages continue to slow truck builders, while the driver shortage continues to grow worse. The American Trucking Associations (ATA) reported its Truck Tonnage Index fell by 0.3% in April from March levels, losing some of March’s 2.3% increase. The ATA index was 114.7 in April, compared to 115.1 in March. Bob Costello, chief economist for ATA, sees good days ahead. “The outlook is solid for tonnage going forward as the country approaches pre-pandemic levels of activity, with strong economic growth in key areas for trucking — including retail, home construction and even manufacturing,” he said. Homebuilding is likely to slow in the coming months due to record lumber prices, along with higher costs for steel and other construction materials. Costello echoed industry capacity concerns. “Trucking’s biggest challenges are not on the demand side, but on the supply side, including difficulty finding qualified drivers,” he explained. The list of carriers that have implemented pay raises to attract more drivers (and keep the ones they already have) is growing every week. While pay raises stimulate driver turnover as drivers leave for better pay, they aren’t enough to attract new drivers to an industry that has seen the average age of its workforce climb each year for more than a decade. DAT’s Truckload Volume Index fell 5% in April from March levels, but it’s important to note that March’s index was a record. According to DAT Freight and Analytics, April was still the second-busiest month on record. The DAT index measured 225 in April. A baseline of 100 reflects freight volume in January 2015, so the April score is 125% higher. “It’s not unusual to see a decline from March to April, but truckload freight activity remained at historic levels compared to previous years,” explained Ken Adamo, chief of analytics at DAT. “Trucking companies are in the driver’s seat with respect to pricing power.” According to DAT, the national average spot rate for van loads posted on its load board dropped by 8 cents per mile from March levels, coming in at $2.59 per mile. While it’s normal for spot rates to decline when freight volumes do, the April figure was still the second-highest on record. Refrigerated rates declined too, but only by 2 cents per mile to $2.93. Flatbed rates went against the trend, rising 18 cents per mile to $2.96. Spot rates rose sharply in the second half of 2020 with contract rates expected to follow. They did. DAT reported that average contracted rates — those negotiated in advance of shipment needs — rose to $2.66 for van freight. The increase represented the 12th consecutive month of growth. The average contract rate for refrigerated freight also grew, but at $2.78 it still lags behind the average spot rate. Average flatbed rates for the month were the same for both spot and contract freight, $2.96 per mile. An interesting statistic reported by DAT showed nearly 96 loads (95.7) for every available truck posted on their board. “Spot and contract rates are high as we enter a period when truckload capacity is only going to tighten, as produce and retail goods move ahead of the July 4 holiday and back-to-school shopping season,” Adamo said. A strange dynamic is in play for rates in the coming months. At some point, commodity shortages will ease, and prices for steel, lumber and other products will come down. Order backlogs are occurring at manufacturers that are experiencing reduced production due to shortages. When production increases, and while truck capacity is still restricted by shortages of new trucks and drivers, rates should experience another bump. In the meantime, signs are still pointing to a robust period for trucking for at least the next few months. Carriers large and small can make money while being more selective about cargoes and lanes.

Women In Trucking names Casey Stone member of the month for June

The Trucker News Staff - June 8, 2021

PLOVER, Wis. — The Women In Trucking Association (WIT) has named Casey Stone as its June 2021 member of the month. Stone is the customer solutions manager for Michigan-based Specialized Heavy Transport. Stone has been in the logistics field for more than six years, and has served in several roles with Specialized Heavy Transport before moving into her current position. As the customer solutions manager, Stone helps businesses of all sizes solve problems within their freight departments and works to build trust along the way. She strongly encourages working to develop the relationships needed between clients and carriers within the trucking industry. Teaching other women in the industry about relationship building is a passion for Stone. “I truly believe that selling is no longer about the end goal of getting that sale. Rather, it is always about the beginning goal of building trust,” she said. Casey notes that the trucking and logistics industry has always had some challenges around building relationships, especially for women. She suggests addressing those challenges in the following ways: Find a common interest before calling a prospect. Check the prospects’ social media accounts. Always focus on the truth, not the sale. Be the problem solver, not the product pusher. Stone is also a reiki practitioner, massage therapist, and aromatherapist. When she is not working with a client, she enjoys spending time with her five children and her 7-year-old grandson.

Many roads to a driving career are soon to merge

Cliff Abbott - June 2, 2021

A common argument among commercial truck drivers pits drivers who were taught to drive by a relative or friend, or who learned by bouncing around the farm while operating a variety of equipment, against those who graduated from a CDL training school. Whether it’s a discussion on the CB or comments on social media, every story of a hapless rookie making a mistake seems to be draw a wealth of criticism from drivers who learned “the right way” — either self-taught or from an experienced driver who passed on his or her considerable skills. The comments often accuse others of being “steering wheel holders” who are, of course, far beneath the professional driver status of the commenter. Whether self-taught or privately trained drivers received training that was superior to those who attend a CDL school has long been argued, but there are merits to both methods. Self-taught drivers learn from experience, sometimes driving a variety of equipment on a farm or other operation. Some states allow younger drivers to work in agriculture or other industries. Privately trained drivers often benefit from their relationship with the trainer. Whether a family member, spouse or friend, the trainer has an emotional bond with the trainee that can promote a greater interest in their performance. Without a specified course length, training can continue as long as necessary to make sure the trainee, in the trainer’s judgment, is ready. Some CDL schools, on the other hand, can be geared towards passing state testing requirements in the shortest possible time. Stories abound of schools that graduate students in as little as 10 days or two weeks, often teaching just enough to let students pass the tests — while skipping important information about the job. None of those scenarios are true of all situations, however. There are no qualification standards for private trainers. “Uncle Fred” might represent the epitome of highway professionals, but he could also be a highway menace — albeit an experienced menace — or he could be an excellent truck driver but have horrendous training and teaching skills. Qualification standards exist for CDL schools, but they are mostly voluntary. CDL training schools that are part of a community or technical college must meet standards set by the college or accrediting organization. Private schools, however, can range from the owner of a dilapidated semi operating in a rented parking lot to programs that rival college-level training in length and content. Some CDL schools are certified by the Professional Truck Driver Institute (PTDI), which issues standards for curriculum quality and standardization. PTDI schools are closely monitored to ensure compliance with set standards. Another organization, the Commercial Vehicle Training Association (CVTA), provides an instructor certification program. Larger carriers that hire graduates of CDL schools almost always provide additional training through a “driver finishing” program. These programs pair recent graduates with experienced driver trainers who help new drivers sharpen the skills learned in CDL school while learning the rest of the truck driver’s job. Training in route planning, company paperwork, dealing with customers and more are added until the new driver is judged to be ready to operate without supervision. Some carriers provide access to driver-mentors or special fleet managers for months after the training. On Feb. 7, 2022, the argument will officially end for most new drivers. That’s the date the new entry-level driver training (ELDT) requirements mandated by the Federal Motor Carrier Safety Administration (FMCSA) will go into effect. Included in the MAP-21 highway bill passed in June 2012, the FMCSA ELDT rule became final in December 2016. Under the new regulations, those who want to obtain a Class A or B CDL for the first time, upgrade a Class B CDL to a Class A, or add a passenger, school bus or hazardous materials endorsement to an existing CDL will be required to complete a specified training program. Although the regulations don’t specifically state that training must be conducted by a CDL school, the training organization must be certified by the FMCSA and listed in the newly created Training Provider Registry. The training can be provided by a school, employer, union or even Uncle Fred — provided the trainer is certified. Certification is achieved by submitting an Entry-Level Driver Training Provider Registration Form through the TPR website and obtaining a unique TPR number. The ELDT requires specific training curricula that closely follows training presently required by PTDI certified schools. The curricula are listed in 49 CFR 380, Appendix A, and include classroom or “theory” subjects such as control systems, inspections, communication and maintenance. Behind-the-wheel (BTW) training includes range maneuvers and on-the-road driving. While the hours spent in training are not specified, training providers must report the number of hours spend on each listed topic. Instructors must have at least two years of experience as either a driver or a trainer, and must have a CDL with endorsements in the area being taught. The instructor’s CDL cannot be suspended or restricted. Training program graduates will be issued certificates that carriers will be required to verify before hiring. Some current drivers will receive a “Certificate of Grandfathering” from the carriers that employ them. Drivers who obtain a commercial learner’s permit (CLP) before Feb. 7, 2022 will not have to comply, as long as they obtain their CDL before the expiration date of the CLP. Drivers who are planning to train with a spouse, relative or someone else should make sure they obtain their permit in time. Current drivers who have never had a hazardous materials endorsement should know that training will be required once the ELDT becomes effective. Currently, drivers are required to pass a written test that they can study for online or using state CDL study materials. Drivers who plan to get the endorsement might want to take care of it before Feb. 7, 2022. The requirement to pass a background check to obtain the hazmat endorsement hasn’t changed. First-time passenger or school bus endorsements will also require training. It won’t be long before stories of learning to drive a truck on the farm at age 15 fade into history. Whether government involvement in the training process improve safety, creates more bureaucratic hurdles or a combination of both will be seen in coming years. And truck drivers will soon have to find a different topic to argue about.

Fuel outlook: Availability and pricing should be stable through summer months

Cliff Abbott - June 1, 2021

Trucks powered by electricity may be making the headlines, but trucks burning old-fashioned diesel fuel are still moving the freight. As summer approaches, diesel fuel pricing and availability are on the minds of a lot of truckers. President Joe Biden’s newly installed administration has received plenty of criticism related to increasing fuel prices, especially when it was announced he had signed an executive order halting construction of the Keystone XL Pipeline, which was slated to bring crude oil from Western Alberta, Canada, to U.S. refineries. The administration also announced its intent to stop issuing new leases for oil exploration and drilling on public lands, and to decline renewals on current leases. A look at the historical data, however, suggests that Biden’s policy isn’t to blame. According to reports from the U.S. Energy Information Administration (EIA), the national average diesel fuel price was $2.37 per gallon Nov. 2, 2020, the day before the U.S. presidential election. Each Monday for the next 20 weeks, the EIA reported that the average price had increased. Diesel prices had already risen for 11 consecutive weeks before Biden’s inauguration. More likely, diesel fuel prices were simply rebounding from the recession caused by the COVID-19 pandemic. As of the first week of May this year, the national average price of diesel was $3.14 per gallon. A year ago, in the worst of the recession, the average was $2.40. Go back another year however — to the first week of May 2019 — and the average fuel price of $3.17 was similar to today’s market. In 2018, it was $3.16 per gallon. It’s doubtful the upcoming summer will bring diesel fuel prices of $2.43 per gallon (that was the 2020 summer average). In the summer of 2019, fuel averaged $3.02. In 2018, summer prices averaged $3.23. While Biden’s policies could eventually slow future fuel production, pushing prices upward, significant increases aren’t likely in the short term. For the longer term, Biden has clearly outlined a desire to move the country away from petroleum fuels and toward newer technologies. The fuel market is not, however, without threats. In May, a Russian hacking group claimed credit for launching a ransomware attack against Colonial Pipeline, the largest mover of petroleum products in the U.S. Typical ransomware attacks entail encrypting the owner’s files so they can’t be accessed, meaning the programs that operate the pipeline can’t be run. Colonial Pipeline owners immediately shut down the line, which runs from the Gulf Coast through the Southeast and into New England, to prevent further damage. Within hours of the shutdown announcement, panic-buying was widespread, and many gas stations and truck stops were running out of fuel. Colonial’s 5,500 miles of pipeline carry about 100 million gallons of refined petroleum products per day. Replacing the pipeline’s capacity would require about 12,500 trucks pulling tank trailers, or 3,100 rail car deliveries, every day. Longer trips would require multiple days to complete, adding to the number of trucks needed. Another potential threat to fuel pricing is the shortage of available drivers. The majority of petroleum delivery positions are local, home-every-night jobs that could be popular among over-the-road drivers who want more time at home. But the negatives can add up quickly. Work schedules often include 12- to 14-hour days with few days off falling on the weekends. Many routes are subject to heavy traffic congestion in metro areas, and some venture into neighborhoods where protests have erupted into lawlessness over the past year. In addition, qualifying for the job isn’t easy. Because of the physical aspects of the job, like lifting and carrying hoses and climbing the ladder to the top of the trailer, many carriers require a physical agility test prior to hire. A hazmat endorsement is mandatory, which requires testing, completion of a background check and extra expense. Compensation, often paid per completed load, can be considerably less than drivers earned over the road, adding to the difficulty of finding and keeping drivers. Weather can also play a role in diesel availability and pricing. In February this year, a polar vortex shut down Texas and Louisiana refineries when freezing water vapor in petroleum pipelines fouled valves and filters. Fortunately, the deep freeze only lasted a few days, but it was enough to slow production and put pressure on prices. According to the National Oceanic and Atmospheric Administration (NOAA), the “official” hurricane season begins June 1 and continues through November. Last year brought a record 30 named storms, including two tropical storms that formed in May. A total of 12 made landfall in the U.S., with six of those reaching Category 3 or higher. The storms broke another record, racking up damages to the tune of nearly $65 billion. A large number of refineries are located along the Gulf Coast in Texas and Louisiana, with a few more in Mississippi and Alabama. Proximity to the Gulf makes refineries accessible to tankers bringing in crude or leaving with refined products. It also makes them vulnerable to hurricane damage. Even temporary, precautionary shutdowns could impact the fuel supply. Recent unrest in the Middle East could be another factor. If the conflict escalates to include oil-producing countries in the region, the world oil supply could be impacted. Finally, summer months are known for Americans hitting the road. After a year of COVID-19 shutdowns and sheltering at home, the highways may be crowded this year with people eager to make up for vacations they missed last year. More jet fuel will also be needed, for those who prefer flying. The increased number of travelers this summer, especially during peak travel times such as holidays, could increase demand for petroleum products and push prices higher. Truckers will do their part, too. The current economic recovery is different than those of the past. In a typical recession, manufacturers keep plants open, stockpiling products to sell when things are better. This recession brought shutdowns everywhere, with no chance to increase inventories. Depending on the product, some inventories were taken down to zero while suppliers were closed. As the economy rebounds, record shipment numbers are expected throughout the summer, keeping trucks busy — and consuming diesel fuel. Despite the threats, fuel should remain plentiful and prices stable through the summer months.

Lower availability, higher prices for new Class 8 trucks can be expected

Cliff Abbott - May 26, 2021

U.S. sales of new Class 8 trucks declined in April, according to data received from ACT Research. Sales of 19,714 trucks were 12.4% lower than the 22,512 sold in March. The March number, however, may have been artificially high due to February’s bad weather, which could have delayed some deliveries until the following month. Compared to April 2020, Class 8 truck sales increased by 51.8% over last year’s 12,965. Of the trucks sold, 14,347 were road tractors (72.8% of the total), and 5,367 were vocational trucks equipped with dump, trash, concrete or other bodies. That’s a significant difference from April 2020, when more than a third (37.2%) of Class 8 trucks sold were vocational. Freight levels at the time were free falling due to COVID-19 shutdowns, slowing sales of new tractors. For months there have been predictions of production slowdowns due to shortages of various parts and materials needed to manufacture new trucks. With April sales nearing 20,000 units, it might appear that the industry is doing fine. Not so fast, said Kenny Vieth, president and senior analyst for ACT. “We should be on our way to building 30,000 trucks in a month,” he said. The year 2006 saw record Class 8 sales for the trucking industry. Wards reported sales of 284,004 in that year, an average of 23,667 per month. The Wards report, however, excludes some manufacturers of vocational trucks used for delivery of concrete, trash collection, firefighting and applications such as truck-mounted cranes, making total production numbers higher than reported. Vieth explained where the trucks are coming from. “We have seen inventories continue to creep down,” he said. “The Class 8 inventory in April, on a North American basis, is at 39-month low 49,800 units.” It’s evident that some of the new trucks being sold are coming from OEM and dealer inventories rather than hot off the assembly line. As inventories dwindle, new trucks are harder to find — and more expensive to buy. Shortages of parts and commodities may not have had much impact on April production, but don’t be fooled. “Every month, it’s something else hitting the fan,” Vieth said. “In January, it was chip (semiconductor) shortages. In February, it was plastics.” As the deep freeze of Winter Storm “Uri” caused power outages in much of the state of Texas, plastics manufacturers were forced to shut down, according to Plastics News. Sudden shutdowns can result in molten plastics solidifying in lines and machines, resulting in considerable time being needed for restart. The end result is that manufacturers of plastic products destined for new truck builders experienced difficulty obtaining materials. Then, there’s steel. Prices for steel have increased by more than 40% since the year started and remain at record levels. Just as worldwide production was ramping up, India, the world’s second-largest producer, shut down steel production as oxygen used by the plants was diverted to hospitals to treat a massive surge in COVID-19 cases. Shortages typically result in higher prices, which are often passed on to consumers. On May 11, Reuters reported that ArvinMeritor, a supplier of auto and truck parts, would begin charging a monthly surcharge to help offset surging steel prices. It’s highly likely that truck manufacturers will again impose a commodity price surcharge in the near future, as they did during the recovery from the Great Recession of 2008. Truck orders actually declined in April, coming in at 33,600 — down 16% from March but still more than OEMs can build in a month. The backlog is now approaching 10 months at current production levels as 2021 building slots are nearly gone. If the build rate slows further due to parts shortages, it will take even longer to clear the backlog. Those planning on turning to the used truck market to avoid new truck prices are likely to be disappointed, too. ACT Research’s “State of the Industry: U.S. Classes 3-8 Used Trucks” release reported that sales of new trucks in April were 51% higher than a year ago, and average prices were 45% higher than on the COVID-depressed market of 2020. Prices rose 5% over the March average. Among the individual OEMs, all except Mack Truck sold fewer Class 8 trucks in April than in March, according to data received from Wards Intelligence — 1,649 Bulldog brand trucks were moved in the month, 16 more than in March and 586 more than in April 2020. Volvo’s 1,934 sold in April lagged 540 trucks behind March sales of 2,474, a 21.8% decline. International sold 2,192 Class 8 trucks in April, down 102 (4.4%) from March sales. Kenworth sales of 3,005 were down by 35 from March for a 1.2% decrease, but were 715 trucks (31.2%) better than April 2020 sales. Peterbilt sold 2,990 in April, down 191 trucks (6%) from March. Freightliner sales declined by 1,774 trucks in April, a drop of 20.1%, but it’s important to note that March was an exceptional month for the company with 8,839 trucks moved. Western Star sold 477 in April, down 27 (5.4%) from March sales. Market share for the OEMs hasn’t changed much. To date, Freightliner has 40% of U.S. Class 8 sales, up 3.1% from 36.9% at the same point last year. Peterbilt’s 15.3% is next, up 0.5%, followed by Kenworth’s 13.7% which is down 2.1% from the 15.8% of the market last year. International has also dropped market share. This year, 10.5% of the Class 8 trucks sold were Internationals, compared to 12.5% at the same point in 2020. Volvo has picked up 1.5% of the market and sits at 10.6% for the year to date. Mack dropped 0.3% of its share, from 7.8% at this time last year to its current 7.5% of the market. For at least the next few months, trucks will be harder to find and more expensive when found. Strong freight rates may provide incentive to pay more for equipment, but current owners may decide to spend to keep their current stock running a while longer instead of trying to replace it.

DAT Truckload Volume Index slips 5% in April, falling from all-time high in March

The Trucker News Staff - May 21, 2021

PORTLAND, Ore. —Truckload freight activity declined in April, but the month was still the second busiest month on record for shippers, freight brokers and motor carriers, according to DAT Freight & Analytics. The DAT Truckload Volume Index (TVI) registered 225 in April, down 5% from the all-time high set in March. The index is an aggregated measure of dry van, refrigerated and flatbed loads moved by truckload carriers. A baseline of 100 reflects freight volume in January 2015. “It’s not unusual to see a decline from March to April, but truckload freight activity remained at historic levels compared to previous years,” said Ken Adamo, chief of analytics at DAT. “The April TVI was 39% higher than it was in April 2020 and April 2018, and 26% higher than in April 2019, indicating unusually strong demand for truckload capacity last month. Trucking companies are in the driver’s seat with respect to pricing power.” At $2.59 per mile for April, the national average spot rate for van loads on the DAT One load board network was 8 cents lower than the March average, but was the second-highest monthly average van rate on record. The national average spot reefer rate was $2.93 per mile, 2 cents lower than in March, while the spot flatbed rate averaged $2.96 per mile, 18 cents higher month over month. Contract rates for truckload services — scheduled and planned transportation where the rate is negotiated well in advance and part of a larger commitment to move goods — were historically high in April. The average contract van rate was $2.66 per mile and increased for the 12th consecutive month. In addition, the average contract rate for refrigerated freight was $2.78 a mile, 15 cents below the average spot reefer rate. The national average contract rate for flatbed equipment, which is used to haul construction materials, heavy equipment and a variety of other industrial goods, was $2.96 per mile, or $1.03 higher than in April 2020. On the spot market, the flatbed load-to-truck ratio averaged 95.7, meaning there were more than 95 loads posted for every available truck last month. “There’s a feeling among businesses that they are at their ceiling for the price of logistics,” Adamo said. “Spot and contract rates are high as we enter a period when truckload capacity is only going to tighten, as produce and retail goods move ahead of the July 4 holiday and back-to-school shopping season.” DAT’s outlook for May 2021: Supply chain imbalances due to commodity shortages for manufacturing and the reopening of long-shuttered offices and service businesses have led to increased use of the spot market. In most years, 12% to 15% of truckload freight moves on the spot market; that figure is closer to 25% today. During the first week of May, the volume of load posts on DAT One was 36% higher compared to the same period in 2018, when spot truckload freight activity followed a more typical pattern. Expect demand for refrigerated trailers to increase as domestic produce harvests expand north beyond the U.S. southern border. The national average price of on-highway diesel was $3.13 a gallon in April. Spot rates include a calculated surcharge that fluctuates with the price of fuel, which is expected to rise following the cyberattack on the Colonial Pipeline.

Bulk foods carrier Oakley Transport is first in industry to receive ISO certifications twice

The Trucker News Staff - May 20, 2021

LAKE WALES, Fla. — Oakley Transport Inc. is the only bulk food transporter in its industry to be certified twice with the International Standards Organization (ISO) for its ISO 9001:2015 and ISO 22000:2018. The ISO certifies management systems and operation processes, and services must meet all requirements for standardization and quality assurance. In 2015, Oakley started preparing for ISO certification. When the goal was achieved in 2017, Oakley became the first — and only— bulk food transporter to be certified to such standards. Oakley was awarded recertifications to the newest versions of ISO certifications ISO 9001:2015 and ISO 22000:2018 in March 2021. ISO 9001:2015 and ISO 22000:2018 are stipulations that certify superior operations management, food safety and food defense. Both ensure Oakley’s consistency in operations and services, as well as the company’s ability to meet and exceed all customer and regulatory requirements. “Being ISO certified demonstrates Oakley’s ability to follow procedures and processes,” said Thomas Oakley, president and CEO. “It empowers employees with clear direction and the ability to drive improvement. It ultimately is an affirmation to customers of our focus on their cargo, our services, food safety and defense.” The accomplishment reflects Oakley’s dedication to customer satisfaction and the integrity of customers’ products throughout the entire transportation process, according to Oakley. “We feel these certifications add such a value to our customers,” said Bob Osburn, chief operation officer for Oakley. “They know our diligence in maintaining the safety and integrity of their cargo. From the groves to the processor, the distiller to the bottler, and its final mile onto store shelves and into the homes of the American consumer.”

Spear to serve another 5-year term as ATA president and CEO

The Trucker News Staff - May 19, 2021

SAN ANTONIO — The board of directors for the American Trucking Associations (ATA) voted Monday, May 18, to renew the contract for association president and CEO Chris Spear for an additional five-year term. “We are pleased to announce that the ATA board has approved an extension of ATA president and CEO Chris Spear’s contract,” said ATA Chair Sherri Garner Brumbaugh, president and CEO of Garner Transportation Group, during the association’s 2021 mid-year management session, held in San Antonio. “Chris has proven himself as an exceptional leader of the ATA during the past five years, elevating the organization and providing tremendous vision for our industry at a critical time,” Brumbaugh continued. “We look forward to how he will chart the course for the association in the years ahead.” According to a statement released by ATA, since becoming association president and CEO in July 2016, Spear has achieved a record of success in advocating on behalf of the industry, both in the legislative and regulatory arena, and has increased the organization’s visibility. Spear has been a vocal advocate on Capitol Hill and in the media on the industry’s issues, including infrastructure, lawsuit abuse and highway safety. “I’m grateful for the confidence and support of the ATA board, and I’m excited to take on the challenges that lie ahead,” Spear said. “I am honored to work on behalf of this incredible industry, and I look forward to continuing to strongly advocate for trucking, as well as grow ATA’s impact and influence.” ATA Treasurer John A. Smith, president and CEO-elect of FedEx Ground applauded the renewal of Spears’ contract. “We have been fortunate to have Chris at the helm during the past five years,” Smith noted. “Chris’ strong, smart leadership has benefitted the ATA immensely, and we look forward to how his passion and innovative thinking will continue to position the association and the industry for success.”

As demand remains steady, rates rise but number of drivers falls

Cliff Abbott - May 14, 2021

After a brief slowdown due to severe weather in February, freight levels roared back in March and are expected to continue climbing in the coming months. The American Trucking Associations’ (ATA) For-Hire Truck Tonnage Index was the outlier, falling by 5.1% in March after a 2.3% decline in the prior month. However, the freight mix for carrier members of the ATA leans toward contract loads for the manufacturing sector, the one segment of the economy that is recovering more slowly than the rest. For months, economists have warned of shortages of parts and materials, because manufacturers are limited by supplies available from their suppliers, who often rely on suppliers of their own. Microchips are a prime example of a product in very short supply. When manufacturing slows, shipments of manufactured products also slows. “March’s drop comes as somewhat of a surprise,” said Bob Costello, chief economist for ATA. “That said, this surprise to the downside does not change my positive outlook going forward.” The March ATA results were particularly disappointing because the final month of each quarter of the year is typically strong as publicly held corporations position for their upcoming quarterly financial reports. Final-month spending or selling can adjust inventory and profit numbers for the quarter. Compared with March 2020, the March 2021 Index of 106.8 represented a decline of 9.5%. As more data is submitted by ATA members, the index is often revised upwards. That could happen to the March numbers as well. Costello spoke of what’s to come. “Household spending power is strong, and I believe there is plenty of pent-up demand for consumer spending,” he said. “Single-family home construction and stronger manufacturing output, even with the supply chain issues, will help support tonnage through this year and beyond.” Other tonnage reports were more positive. ACT Research’s Trucking Supply-Demand Balance Index rose to 68.2 in March. In the ACT Index, anything above 50 indicates more available freight than truck capacity to haul it. The index rose 8.1 points over February and has been in positive territory for 10 consecutive months. One of the reasons capacity remains tight is that the number of available drivers continues to fall. ACT’s Driver Availability Index fell to 16.7, reaching a new low point for the fourth consecutive month. Any number lower than 50 indicates a deteriorating condition. Tim Denoyer, vice president and senior analyst at ACT, cautioned that the economic recovery could be impacted. “In addition to the raft of constraints on driver capacity, from demographics to unemployment benefits to the FMCSA Drug & Alcohol Clearinghouse, constrained Class 8 production and tight vehicle inventories are also likely to limit the pace of recovery this year,” he said. The Cass Freight Index for Shipments, which represents freight volumes in multiple modes of transportation such as trucking, rail, ship, barge, pipeline and air, rose by 5.8% over February numbers and topped March 2020 numbers by 10.0%. ACT’s Denoyer, who wrote the text for the Cass Info release, noted that the shipments index was just 0.1% below the March 2019 pre-pandemic level, indicating that shipping volumes have fully recovered. There’s more to come, however. “If the Cass shipments index just takes a normal seasonal pattern from here, it will be up over 30% year over year in Q2,” Denoyer wrote. As shipment volumes continue growing faster than the trucking industry’s available capacity, truckers continue to benefit from higher rates. That’s a condition that is expected to continue for at least the rest of 2021. The Cass Truckload Linehaul Index, which includes both rates and capacity, was 2.0% higher in March and 10.1% higher than in March 2020. Truckstop.com, a provider of load board and other services, is reporting record spot rates from postings on the site. “We are in an unprecedented market,” said Brent Hutto, Truckstop.com’s chief relationship officer. “Rates have never been this high for this long — ever.” Hutto is bullish on rates for the near future. “We see rates remaining super-strong throughout 2021 and an overall increase of 2% to 3% for 2022,” he said. “We’ve never had an entire country, an entire world, coming out of a pandemic-induced recession like we’re seeing now.” Kenny Vieth, president and senior analyst at ACT Research, wrote in an April 28 press release about ACT’s Commercial Vehicle Dealer Digest: “Combining record levels of freight demand with the constrained ability to bring supply to bear, carrier profitability is projected to rise to record levels in the coming quarters,” adding that profitable carriers typically invest in new equipment. Don Ake, commercial vehicle equipment expert for FTR, addressed the unique character of the current economic recovery in an April 30 blog posting in which he described the country’s mood as “euphoric.” Ake pointed out that, in most recessions, inventories build as manufacturers continue production, stockpiling products to sell when the economy reopens. The latest recession, however, was different. “The economic shutdown in March-May 2020 created enormous pent-up demand in the economy,” Ake wrote. “It produced a ‘slingshot effect,’ where commercial activity was held back and then propelled forward rapidly. Therefore, substantial pent-up demand built up during the economic lockdown and was unleashed in the restart.” In this case, there wasn’t a “pent-up supply” available when commercial activity resumed, because so many manufacturers had slowed production or shut down entirely. Ake refers to the Institute for Supply Management (ISM) Indexes, which reported the highest manufacturing index in 37 years for the month of March. “The result is surging demand combined with pent-up demand, matched up against constricted supply,” Ake explained. FTR is forecasting 2021 GDP growth of 6.1%. The U.S. Bureau of Economic Analysis reported an annualized GDP of 6.4% for the first quarter. With an economy that’s roaring back, plenty of stimulus dollars being spent, and spot freight rates at record levels, 2021 is poised to be a great year for trucking. Shortages of both new trucks and drivers may limit profit amounts, but there is money to be made in the coming months.

‘Insurance act’ brings discussion of safety measures to lower rates

Cliff Abbott - May 13, 2021

To no one’s surprise, Rep. Jesus “Chuy” Garcia (D-Ill.) in mid-April reintroduced his “Insurance Act” that would increase minimum liability insurance coverage mandates for motor carriers. The bill is designed to bring coverage minimums in line with what sponsors claim are current medical costs. The current $750,000 financial responsibility requirement, implemented in 1980, would need to rise to nearly $4.9 million to keep pace with medical cost increases since that time, sponsors say. Additionally, the bill calls for periodic adjustment of the minimum based on medical cost inflation. Garcia had previously introduced the bill in 2020, with an amended version included in the failed Democrat infrastructure “Moving Forward” bill that was not considered in the Republican-controlled Senate. This year, with Democrats having control of both houses of Congress and the White House, backers are confident of approval. Although the text of Garcia’s current bill was not yet available at press time, the details of the reintroduced bill are presumed to be the same as last year’s attempt. The bill, co-sponsored by eight other representatives, is backed by the usual assortment of safety organizations. Many carriers already have coverage higher than the legal minimum to comply with customer requirements or Federal Motor Carrier Safety Administration regulations for hazardous materials or other hauling. Regardless of the coverage, or the amount paid for it, there are actions that every carrier, large or small, can take to keep insurance costs as low as possible. “The biggest factor is to keep losses low,” explained Brian Runnels, director of safety at Reliance Partners, a provider of insurance services. “Zero is best. The longer you’ve been in business with low or no losses, the better.” If you’re an owner-operator, leasing to another carrier often means you’re covered by that carrier’s liability policy rather than your own — and that could be a problem later. Obtaining and running under your own authority can result in higher insurance premiums because, despite your experience, your company is considered “new.” “If the DOT number listed on the policy keeps changing — that’s what they look at — the underwriters can consider it as a new business each time,” Runnels said. Other factors can also cause higher premiums for owner-ops. Larger carriers have safety programs that monitor driver performance and offer regular training. When you’re on your own, there is no safety department … or is there? “Consider the value-added services agencies can provide in areas like safety, claims, CSA (compliance, safety, accountability) and regulations,” Runnels said. “For example, we can assist with Data Q requests for CSA. We’ll be able to tell you that we can help or that you’re kind of stuck with whatever is on your record.” Insurance agencies can often help with training and recordkeeping, too. The DOT is strict on which documents belong in driver files, for example, and a good agency may be able to provide guidance. Mark Murrell, co-founder of CarriersEdge, a marketer of online training, content creation and record keeping, says there is no reason a small trucking company can’t have a strong safety presence. Murrell and partner Jane Jazrawy created and administer the “Best Fleets to Drive For” program. “Have a safety program documented, and don’t think you can’t do it because you’re a small fleet,” Murrell emphasized. “Don’t get the idea that that’s something that’s only for big companies.” Documentation is essential for convincing insurance underwriters that a safety program is in place, according to Murrell. “The biggest challenge for the fleet, when it comes time to dealing with the insurance company, is that they don’t have any documentation of the things that they’re doing,” he said. Runnels agrees. “You might be a safe driver, but your safety program, even if it is only for yourself, matters,” he said. “Are you reviewing available information? Are you keeping up with best practices, through safety videos, subscriptions to safety publications, reviewing data from cameras and ECMs (engine control modules)?” There are resources that can be used to achieve some of the benefits of a safety department. The internet, for example, has made training accessible to anyone who has a smartphone or computer. “For smaller companies, for $20 a month, you can be having a service like ours,” Murrell said. CarriersEdge offers more than 80 training titles, with new titles added regularly. A solo operator can obtain a subscription and participate in a couple of modules per month. “We pitch our service as ‘Netflix for training,’” Murrell explained. “It’s cost-effective enough that you can show that you’re diligent and doing something.” CarriersEdge keeps a record of training provided for its clients. “When it comes time for insurance renewal or when they’re shopping around for policies, it’s very easy for the insurance people to come in and look at the history and see those records, and it’s way cleaner and way more organized and having to pull together a pile of papers,” Murrell said. Reviewing data from cameras and ECMs, as Runnels suggested, requires documentation. For example, you can review each “saved” video on your dash cam — those triggered by an impact, hard stop or other action — to see if your actions in each case could have been improved upon. A list or table of the date reviewed, incident type and what you learned could help convince an insurance company that you have a program for continuous improvement in place. “The very first thing that’s pulled after an accident is ECM data,” Runnels explained. “You should be using the data to get better. If you’re solo, look at the data, use it to make yourself better.” Again, the date of the review and other information must be documented to show that a review occurred. “Document reviews and actions taken, even if it’s only on yourself,” Murrell said. That documentation helps demonstrate an effective safety-management strategy and can help on insurance rates and even in litigation, should you need a defense after an accident. “It looks different with one truck than it does with 200, but if you’re doing something that says, ‘Here’s my process for figuring out my problem and making improvements, and here’s where I’ve made changes as a result,’ that’s a good story for the insurance people,” he continued. There may not be many truckers in favor of paying higher insurance premiums, but any trucker can take steps to keep liability insurance costs as low as possible.

Convoy releases first corporate sustainability report

The Trucker News Staff - May 7, 2021

SEATTLE — Digital freight network Convoy on May 4 released its first corporate sustainability report. According to a company statement, report underscores Convoy’s commitment to shipping responsibly and highlights the company’s accomplishments across key environmental and social areas in 2020, as well as new goals and commitments for 2021 and beyond. The report, titled “Ship Responsibly,” summarizes key areas of focus for Convoy, including innovation, internal culture, reducing greenhouse gas emissions and improving the lives of America’s 3 million truck drivers. Convoy’s commitment to sustainability includes the following goals for 2021: Preventing 3 million pounds of carbon emissions from entering the atmosphere in 2021, an 87% increase in the amount of carbon emissions saved by Convoy in 2020. Continuing to operate with net zero emissions, implementing decarbonization strategies and neutralizing any remaining emissions with carbon offsets. Fostering diversity, equity and inclusion in Convoy’s network by investing in a dedicated supplier diversity program to help diverse carriers gain access to more business. “A big part of what we do every day is figure out ways to reduce waste in trucking because that’s better for the environment, shippers, and millions of truck drivers. I am very proud to share our first corporate sustainability report,” said Dan Lewis, co-founder and CEO of Convoy. “Sustainability is core to our company culture and baked into our mission of reaching zero unnecessary waste in transportation. We look forward to building on this for years to come.” Additional highlights of the 2020 Ship Responsibly report include details about Convoy’s commitment to truckers, shippers and the public. In 2020, Convoy launched a series of partnerships designed to improve the lives of hundreds of thousands of people in an unprecedented year, including: Joining forces with Salesforce to haul 500,000 COVID-19 testing swabs to San Francisco area hospitals in the early days of the pandemic. Launching new collaborations focused on improving the lives of truck drivers, including partnerships with the National Minority Supplier Development Council and the Women’s Business Enterprise National Council. Partnering with Land O’Lakes Inc. and other shippers to haul the equivalent of more than 1.5 million pounds of donated food to Feeding America food banks, the largest hunger-relief organization in the U.S., to help those in need. Helping Jazwares, global toy company, haul 22,000 donated toys to the Boys & Girls Clubs of King County, Washington. Convoy is partnered with Emitwise, a software platform for running climate programs, to measure the company’s carbon footprint to learn where Convoy is emitting greenhouse gases. “Now we have the data and insights to build a net zero emissions plan for our business operations,” said Jennifer Wong, head of sustainability at Convoy. “We’ve already made significant progress to help our customers reduce emissions and ship responsibly, but the time has come for us to bring that same rigor and mission-driven focus to our operating model. The trucking industry’s effects on climate change are undeniable and this commitment is a crucial next step in leading the industry forward.” According to Convoy, medium- and heavy-duty vehicles, powered by diesel fuel, represent only 5% of the vehicles on the road but currently account for more than 20% of transportation emissions in the U.S., because trucks are typically driven for much greater distances than passenger cars. Because of this, Convoy is championing the effort to create a more efficient trucking infrastructure.

DAT: One year after touching bottom, spot truckload rates are soaring

The Trucker News Staff - May 7, 2021

BEAVERTON, Ore. — Spot truckload rates remained near all-time highs during the week ending May 3, one year after bottoming out as U.S. economies closed during the pandemic., according to a report from DAT Freight & Analytics. The seven-day average line-haul rate for dry vans was $2.27 a mile for the week, 95 cents higher than the same period one year ago (line-haul rates exclude a fuel surcharge). Spot refrigerated freight averaged $2.61 per mile, up 94 cents compared to the same week a year ago. The average flatbed rate was $2.62 per mile, a 93-cent increase year over year and 30 cents higher than the same period in 2018, when flatbeds rates were at their previous peaks. With a fuel surcharge, the national average spot van rate was $2.68 a mile during the first three days of May. The reefer rate was $3.10 per mile, and the flatbed rate $3.02. Trends to watch There are more than 102 flatbed loads for every available truck. Flatbed load post volume on the DAT network increased 3% week over week, while the number of available trucks fell 7%. The flatbed load-to-truck ratio topped 100 for the first time this year to reach 102.7, meaning there were more than 102 available flatbed loads for every available truck on the DAT network. The number of loads was more than four times higher than the same week last year, and 21% higher than the highest level reached in 2018. Rates rose despite lower volume. In the 10 largest flatbed markets, the rate increased by 18 cents per mile on average compared to the previous week, despite a 7% decline in available loads. In Houston, flatbed volume was down 5% week over week, yet the average outbound spot line-haul rate increased 17 cents to $2.70 per mile. Dry van volume increased 5%. The number of van loads on the DAT network increased 5% during the week ending May 3 as shippers cleared their docks of month-end freight. Truck posts dropped by the same amount, leaving the van load-to-truck ratio largely unchanged at 4.9. The average line-haul rate for dry van freight was $2.27 per mile last week, up 3 cents compared to the previous week. Van rates declined in large markets. At $2.45 per mile, the average spot rate in the 10 largest van markets fell 1 cent, although the number of available loads was up 2%. Atlanta was the top market for available van loads, as volume increased 9% compared to the previous week. Reefer load posts increase 11%. After falling for the previous three weeks, the national average reefer load-to-truck ratio increased to 10.7 loads per truck. The number of available reefer loads was up 11% last week and capacity tightened with 6% fewer trucks posted. Mother’s Day shipments were in bloom. Mother’s Day is May 9, and the National Retail Federation said U.S. consumers plan to spend an average of $220.48 on gifts and other items for a total of $28.1 billion. Using NAICS (North American Industry Classification System) codes to convert retail revenue into tons, Mother’s Day spending equates to around 150,000 truckloads using $12,000 per ton as a rough guide. In the two weeks leading up to May 9, roughly 70 truckloads per day head north from Miami where 80% of all floral volume is handled by just three carriers. Last week, outbound reefer volume from Miami was up 31%. On the heaviest lanes, including New York City, three-day spot line-haul rates averaged around $3.70 mile last week; Miami to Chicago averaged $2.74 per mile; Miami to Atlanta averaged $2.77 per mile; and Miami to Los Angeles averaged $1.86 per mile excluding fuel.

DOL withdraws ‘independent contractor’ rule; trucking industry weighs in

Linda Garner-Bunch - May 6, 2021

WASHINGTON — Effective May 6, the U.S. Department of Labor (DOL) has withdrawn the Independent Contractor Rule. When the DOL initially published the rule in the Federal Register Jan. 7, 2021 — during the final days of Donald Trump’s presidency — the agency noted that it was “revising its interpretation of independent contractor status under the Fair Labor Standards Act (FLSA) to promote certainty” for stakeholders, including the trucking industry, as well as in an effort to reduce litigation and “encourage innovation in the economy.” The Jan. 7 rule sought to define the difference between an employee and an independent contractor, noting, “The ultimate inquiry is whether, as a matter of economic reality, the worker is dependent on a particular individual, business, or organization for work (and is thus an employee) or is in business for him- or herself (and is thus an independent contractor).” In a May 5 announcement, the DOL said the withdrawal of the Independent Contractor would maintain workers’ rights to minimum wage and overtime compensation under the FLSA. In addition, the DOL cited the following reasons for the withdrawal of the Jan. 7 Independent Contractor Rule: The independent contractor rule was in tension with the FLSA’s text and purpose, as well as relevant judicial precedent. The rule’s prioritization of two “core factors” for determining employee status under the FLSA would have undermined the longstanding balancing approach of the economic realities test and court decisions requiring a review of the totality of the circumstances related to the employment relationship. The rule would have narrowed the facts and considerations comprising the analysis of whether a worker is an employee or an independent contractor, resulting in workers losing FLSA protections. “By withdrawing the Independent Contractor Rule, we will help preserve essential worker rights and stop the erosion of worker protections that would have occurred had the rule gone into effect,” said U.S. Secretary of Labor Marty Walsh in the DOL’s May 5 announcement. “Legitimate business owners play an important role in our economy but, too often, workers lose important wage and related protections when employers misclassify them as independent contractors. We remain committed to ensuring that employees are recognized clearly and correctly when they are, in fact, employees so that they receive the protections the Fair Labor Standards Act provides.” Because the Independent Contractor Rule was never implemented, its withdrawal should have negligible impact on the trucking industry. The Owner-Operator Independent Drivers Association (OOIDA) on May 5 expressed “disappointment” in the withdrawal of the rule, noting that it could have provided security for owner-operators who want to retain their status as independent contractors rather than being reclassified as employees in certain situations. “The Department’s final rule, for the most part, would have helped provide new certainty and clarity to owner-operators. While there were certainly some provisions that needed to be fixed, this could have been done without the wholesale withdrawal of the rule,” said Lewie Pugh, executive vice president of OOIDA. Pugh pointed to California’s Assembly Bill 5 (AB5), which uses a three-pronged test to determine a worker’s status, as an example of the issues that could arise. “As we’ve seen with the disastrous roll out of the ABC Test in California, the implementation of one-size-fits-all rules for worker classification just won’t work in the trucking industry,” he added. “The Independent Contractor Rule issued by the Trump administration would have provided some protection against this from happening on a national scale, and we’re disappointed that the rule is being withdrawn.” Teamster’s union General President Jim Hoffa in a written statement praised the axing of the rule, which the union contends would enable companies to misclassify employees as contractors, relieving the companies of any obligation to pay federal minimum wage or overtime. “The American worker’s quest for dignity and respect in recent years has fallen largely on deaf ears. While the Teamsters and other unions have been active in protesting the continued misclassification of workers and have found some success at the state level, too many federal elected officials have refused to intervene,” Hoffa said. “Thankfully, that is now changing.” Hoffa described the Jan. 7 Independent Contractor Rule as an “anti-worker proposal,” adding that by rescinding the rule, President Joe Biden’s administration “has the back” of America’s workers. “This nation is at its best when workers can work one job that allows them to support their families,” Hoffa said. “President Biden understands this, and we look forward to working with him so he can continue to forge a path towards creating a bigger and better middle class.” Chad Fowler, an Arkansas-based owner-operator, said he doesn’t expect the independent contractor versus employee debate to affect his business or livelihood. However, he noted, owner-operators participating in lease-purchase programs such as the ones offered by many larger motor carriers, will probably find themselves being classified as employees. “I own my truck. It’s paid for, and I book my own loads,” he explained, adding that this holds true even though he is leased to a small carrier. “He says I’m an independent contractor, which I am, because I don’t answer to anybody.” For Fowler, the primary factor in determining a driver’s status boils down to the driver’s ability to select, accept or refuse a load. Fowler said building relationships with brokers, as well as checking load board postings, has ensured his ability to secure loads on his own terms rather than relying on the carrier’s resources. “If you have to answer to anybody, or you have a dispatcher, or they tell you, ‘Hey, go get this’ and you don’t have a choice, you’re an employee,” he explained.

Three finalists revealed for WIT’s Distinguished Women in Logistics Award

The Trucker News Staff - May 6, 2021

PLOVER, Wis. — On May 3, the Women In Trucking Association (WIT) announced three finalists for the 2021 Distinguished Woman in Logistics Award (DWLA), which recognizes a woman who has demonstrated superior leadership within her company as well as with other professional, educational or philanthropic organizations. This year’s finalists are Angela Eliacostas, president and founder of AGT Global Logistics; Nicole Glenn, president and CEO of Candor Expedite; and Jeana Hysell, senior safety consultant for J.J. Keller & Associates Inc. Finalists for the seventh annual DWLA were selected from a group of high-performing women representing third-party logistics, supply chain management and related functional disciplines. Sponsored by the Transportation Intermediaries Association (TIA) and Truckstop.com, the award promotes the achievements of women employed in the North American transportation industry. The award highlights the crucial roles of leading women in the dynamic and influential field of commercial transportation and logistics, which encompasses logistics service providers as well as motor carriers. The winner of the 2021 award will be announced during the TIA Capital Ideas Virtual Conference on Wednesday, May 12. About the finalists: Angela Eliacostas Eliacostas has more than 30 years of experience in transportation management. During this time, she has built a business based on honesty, integrity and diligence — things she learned while being raised in a trucking family. She has developed a proprietary three-tier carrier-rating system designed to reward drivers and companies who perform at the highest standards. She has carved out a niche for herself in the energy and utilities sector as a 3PL with 24/7 all-access and service. Her employees are not only experienced with trucking (many have experience operating commercial motor vehicles); most are HazMat certified. Certified by Minority and Women-Owned Business Enterprise (MBWE), Eliacostas promotes diverse spends by using MBWEs as vendors and in her contracts. Eliacostas lives in Homer Glen, Illinois. She has four sons, three stepchildren and 11 grandchildren. Nicole Glenn Glenn started working in the logistics industry at age 18 and says she truly grew up in it. After 21 years, she has learned the ins and outs of the industry, including building teams, brokerages and fleets. In 2017, Glenn became the founder and operator of Candor Expedite. Candor Expedite is a woman-owned and -operated provider with offices in Illinois and Texas. She was recognized by Trucker Tools as a Diamond Performer and noted as a 2021 Women in Transportation Top Woman to Watch in Transportation. Glenn lives in Dallas, where she opened Candor Expedite’s second location, along with her husband, Jay, her daughter, Mataya, and her twin boys, Andrew and Landon. Jeana Hysell Hysell is driven by a passion for keeping drivers and highways safe across North America. As a safety consultant with J.J. Keller & Associates Inc., she helps drivers reshape their behavior to ensure they return home safely to their families. Hysell understands the challenges drivers face — she began her career as an owner-operator and has been in the trucking industry for over 40 years. The change she inspires helps protects drivers as well as businesses in the transportation industry, which are best positioned to succeed when meeting complex regulations. Her involvement and giving spirit led Women In Trucking to establish its scholarship foundation to help women pursue logistics careers.

Common sense, caution offer protection against cargo theft

Cliff Abbott - May 6, 2021

There’s a lot to consider when planning a route, from transit times to fueling, weather, rest breaks, tolls, personal time for meals and showers, and so much more. Good drivers leave as little to chance as possible, planning in advance for everything they can. One item that often isn’t included in the plan is cargo security. For the vast majority of drivers, the specter of losing a cargo, or a portion of it, has never been encountered. However, cargo theft is big business — and it’s getting bigger. CargoNet, a Jersey City, New Jersey information-sharing system, recently released cargo-theft data for 2020. The CargoNet report stated that 1,676 “supply chain risk events,” involving a theft or attempted theft were reported in 2020, a 16% increase over 2019 events. The totals include events that happened on docks or in warehouses, in addition to cargo stolen from trucks. Of the total number of events, 61% involved theft or attempted theft of cargo; nearly half (48%) included theft or attempted theft of a commercial motor vehicle, including tractors, trailers and intermodal containers. The average cargo theft in 2020 was valued at $166,334, up $27,045 from 2019, according to CargoNet. Five counties were responsible for about 25% of all reported thefts — Dallas County (Dallas), Texas; Cook County (Chicago), Illinois; San Bernardino County (Fontana), California; Los Angeles County (Los Angeles), California; and Shelby County (Memphis), Tennessee. The report states that truck stops and parking lots at retailer locations were the most common locations for theft. Of the cargos stolen, household goods such as appliances, cleaning supplies, furniture and toilet paper were the most common. Food and beverage commodities, especially alcoholic beverages, were also popular among thieves. COVID-related supplies such as pharmaceuticals and hand sanitizer were also targeted, along with an entire truckload of ventilators. Whatever the cargo, there are a few common-sense actions drivers can take to help prevent becoming a victim of cargo theft. Using seals and locks can help keep amateur thieves out of the trailer, but professional thieves can defeat these quickly. Even so, the heavier and stronger the lock, the more likely thieves will be deterred. Parking areas are important. Public, well-lit areas are generally best. Choose a space close to the truck stop or the street. The back row may be quieter, but that isolated location also gives thieves a dark and quiet opportunity to open trailer doors. If possible, back the trailer doors up to a wall, light pole or other object — anything that will prevent criminals from opening the doors more than a few inches. Two trailers parked tail to tail can work — as long as both trucks remain parked. Unfortunately, some cargo thefts occur when thieves physically confront the driver. If this happens to you, remember that absolutely no cargo is worth your life. Thieves are growing more sophisticated, and often gather a great deal of information before planning a theft. Some receive inside information from shippers through friends that work inside or from others. Some may even gather information by posing as drivers, calling in for load details, and some talk to drivers, either in person or on the CB radio. The best practice is to never talk about your cargo to anyone outside of the shipper, your company or law enforcement. Never discuss your load over the CB, as conversations can be heard by anyone with their own radio. Be very suspicious of anyone asking questions about your cargo, pickup or delivery location, shipper or consignee. What seems like an innocent conversation could actually be information-gathering by potential thieves. If someone appears to be more interested in your trip or cargo than usual, protect yourself. Get a description. Take a photo, if you can do so discretely. Call the police, if necessary. Criminals often know which warehouses or distribution centers are destinations for high-value loads. They make a point of knowing the routes in and out of those facilities, sometimes better than the arriving drivers. They may even know which truck and trailer to watch for, and have a good spot planned to make a theft attempt. If you suspect you’re being followed, call the police. Provide as good a description as you can, both of the vehicle and the people in it. Don’t stop in a secluded area unless you can’t safely continue. Find a place that’s well-lit and as public as possible, even if it means stopping in the street. Pull in to the scale house or park in front of a police headquarters. Finally, a word about weapons: Using a firearm or other weapon to protect cargo is not considered self-defense in most jurisdictions. Some states and municipalities mandate automatic jail time for mere possession of a weapon. Use of a weapon, even a “tire thumper” or pepper spray, could put much more at risk than your cargo. Consider use of weapons carefully. Cargo theft can happen anywhere. By taking a few precautions, drivers can help protect against becoming victims.

Attitude is key to minimizing distraction hazards when driving

Cliff Abbott - May 3, 2021

Every driver understands the danger of being distracted while driving. At the same time, every driver gets distracted. The results can be deadly. The National Institute for Occupational Safety and Health (NIOSH), part of the Centers for Disease Control (CDC), reported that 14% of all motor vehicle crashes in 2018 involved a distracted driver, resulting in 2,841 deaths. NIOSH also reported that “research suggests that distraction is present during 52% of normal driving.” For the driver of a commercial motor vehicle, even a minor accident caused by distraction can result in loss of a job or commercial driver’s license (CDL). It’s important to understand how distractions occur so they can be avoided. For the professional truck drivers, however, there’s more. It’s important to understand that OTHER drivers can — and will — be distracted, and to know how to avoid the hazards those other drivers create. NIOSH groups distractions into three distinct categories, although there is some overlap and some distractions fit into more than one. Visual distractions Visual distractions can be anything that takes your eyes off of the road, such as reading a text message, looking for directions or the ever-popular “rubbernecking” when passing an accident (or another truck that’s been pulled over by law enforcement). Road signs can be a visual distraction, as can billboards or business signs. Even dashboard gauges can be a distraction. When considering visual distractions, it helps to think of speed in terms of feet per second (fps) rather than miles per hour (mph). To make the conversion, multiply your current speed by 1.466535; you can also just multiply your speed by 1.5 for a rough, but close enough, estimate. Traveling at 60 mph is nearly 90 fps (actually 87.99). If you’re heavily loaded and traveling 60 mph, and your eyes focus on a distraction, you’ll cover 90 feet without seeing the road ahead for each second you’re distracted. A four-second glance covers 360 feet, just 10 feet short of the distance needed to stop a truck at that speed. A lot can happen in the road ahead during those four seconds. Depending on the direction of your gaze, you may gain some benefit from your peripheral vision — but will it be enough to warn you in time? Billboards are designed to attract and hold your attention. Artwork and catchy phrases keep your eyes on the sign just a little longer, perhaps long enough to memorize a phone number or website. Billboards in high-traffic areas often present multiple messages through mechanical displays or video, increasing the attraction. They key to minimizing visual distractions is to keep up an active eye scan. Most humans have a field of vision that covers about 190 degrees, but only 12 or 13 degrees are in focus at any one time. Turning your head, or moving your eyes, allows you to see more in one direction while “hiding” information in another. Don’t allow your eyes to rest anywhere for more than a second or two. Manual distractions Manual distractions are those that take your hands away from the steering wheel. Reaching for objects, eating or drinking, and even using dash switches or knobs are included in this category. Functions such as shifting gears, turning on lights or wipers, and adjusting climate controls are a part of the driving job. Those tasks can’t be avoided, but drivers can sometimes alter the timing a bit. For example, most drivers turn on the headlights before it gets too dark to see. Adjusting the air-conditioner setting can wait for the right moment — which is when you’re not in heavy traffic. Preparation is often the solution to manual distractions. Eating, for example, is best done when the vehicle is stopped, but if you choose to eat while driving, unwrap food items and place them within easy reach before starting out. Put straws in drinks, have napkins handy and minimize the number of things you’ll have to do while the vehicle is moving. Other preparation, such as using pre-set radio stations or pre-setting temperature controls so that only small adjustments are needed later, is helpful. Cognitive distractions Cognitive distractions take your mind from your primary purpose of safely driving the vehicle. Intense conversations, either on the phone or with a passenger, or even thinking about how angry you are with your dispatcher, are examples of cognitive distractions. Cognitive distractions are often emotional in nature. Even if you’re using a hands-free device for your phone, it’s a good idea to pull over if a conversation gets emotional. If you’re dealing with an upset spouse, fuming over a traffic stop or planning to give a fleet manager a well-earned piece of your mind, it’s better to park first. Anyone who is likely to call you should know that they should ask you to park and call back if the conversation is likely to be emotional. If they don’t, you should take control of the conversation, and tell them you’ll call back when your attention isn’t needed for driving. Finally, remember that motorists around you are subject to the same types of distractions, and then some. Teenage drivers are more likely to use cellphones while driving. Young parents may be trying to deal with disruptive children. Couples could be arguing — or getting amorous — while the vehicle is in motion. Professional drivers have seen just about everything going on in a four-wheeler at one time or another. Since a part of driving safely is anticipating the actions of other drivers, it only makes sense to be prepared for those actions. The word “assume” has some negative connotations, but it’s an important part of anticipating hazards. Assume that car on the shoulder will pull out suddenly. Assume that person looking at her phone will weave, possibly leaving her lane. Assume that guy looking at the accident across the median isn’t aware of your presence. Assume — and then protect yourself by leaving space and being prepared to react when the hazard occurs. Much of safety performance comes down to attitude. Those who believe they are so highly skilled that attention to distractions isn’t necessary will one day regret that attitude. Those who understand that they, too, are susceptible to distractions and take steps to minimize the hazards will be rewarded with more miles of safe driving.

Driver availability index hit new low in March, says ACT

The Trucker News Staff - April 30, 2021

COLUMBUS, Ind. — The to the latest release of ACT Research’s For-Hire Trucking Index, which includes data for March, shows the Driver Availability Index has tightened to another new low point in the past three years, the fourth in a row. According to Tim Denoyer, vice president and senior analyst for ACT, the Driver Availability Index for March was 16.7, down from 23.6 in February. However, he noted, freight volumes in March were beginning to recover from a drop caused by February’s winter storms. “Capacity remained very tight. The Supply-Demand Balance rose to 68.2 in March, from 60.1 in February,” he said. “In addition to the raft of constraints on driver capacity, from demographics to unemployment benefits to the FMCSA Drug & Alcohol Clearinghouse, constrained Class 8 production and tight vehicle inventories are also likely to limit the pace of recovery this year,” he noted.

Truckers fall under California gig economy law, court says

The Associated Press - April 29, 2021

SAN FRANCISCO — California’s gig economy law applies to some 70,000 truck drivers who can be classified as employees of companies that hire them instead of independent contractors, giving them a right to overtime, sick pay or other benefits, a federal appeals court ruled Wednesday, April 28. The 9th U.S. Circuit Court of Appeals in San Francisco overturned a ruling last year by a federal judge that said federal interstate transportation law pre-empted 2019’s Assembly Bill 5. In overturning that decision, the appellate court’s 2-1 decision found that AB5 doesn’t conflict with federal law because it is “a generally applicable labor law that affects a motor carrier’s relationship with its workforce and does not bind, compel, or otherwise freeze into place the prices, routes, or services.” According to a statement from the International Brotherhood of Teamsters, the ruling is “a massive victory for California’s truck drivers, who for far too long have faced exploitation and misclassification at the hands of trucking companies that place corporate profit ahead of drivers’ safety and well-being.” But the California Trucking Association, which sued over the law, said it would take “whatever legal steps are necessary to continue this fight on behalf of independent owner-operators and motor carriers operating in California.” The association had argued the law could make it harder for independent drivers who own their own trucks and operate on their own hours to make a living by forcing them to be classified as employees. The case could wind up before the U.S. Supreme Court, especially since in 2016 the 1st U.S. Circuit Court of Appeals in Boston ruled that a similar Massachusetts law did conflict with federal law. AB5 expanded a California Supreme Court ruling that limited businesses from classifying certain workers as independent contractors. The law is one of the strictest in the country for determining when a company must treat its workers as employees with benefits such as minimum wage, overtime and sick days. Last year, California voters passed Proposition 22, which exempted app-based ride-hailing and delivery services from AB5. The measure was the most expensive in state history with Uber, Lyft and other services pouring $200 million in support of it. A federal lawsuit by a labor union and some drivers is challenging the proposition.

New Class 8 truck sales aren’t expected to continue at March pace

Cliff Abbott - April 28, 2021

In March, U.S. sales of Class 8 trucks achieved a spectacular rebound from February results with sales of 22,512 units, according to data received from ACT Research. It was the best sales month since December 2019, and the second-best March since 2006 when massive “pre-buying” took place as owners avoided new engine requirements from the U.S. Environmental Protection Agency (EPA) that went into effect for 2007. Compared with February 2021 sales of 15,727, sales in March increased by a whopping 43.1%. A large part of that increase is attributable to February sales being suppressed by “Uri.” That’s the name given by the National Weather Service to the polar vortex event that wreaked havoc on much of the U.S. at mid-month. Snow and ice caused the shutdown of highways, and massive power outages in Texas and other states closed businesses for days, severely disrupting the freight cycle. Because of this, March sales were enhanced by “a little pent-up demand from the sales that did not happen due to February’s ugly weather,” according to Kenny Vieth, president and senior analyst at ACT. Sales were up 33.3% from the 16,892 units sold in March 2020. Weather did not have an impact on that increase, but the economy did. “Compared to last year, you have to remember that in the first quarter of 2020, the Class 8 market was still overcapacitated,” Vieth said. “There were just too many trucks chasing too little freight.” Of the new Class 8 tractors sold, 16,631 (73.9%) were road tractors compared to 5,881 (26.1%) destined for vocational uses such as dump, trash, concrete or other uses. While sales climbed substantially, orders for new Class 8 trucks on the North American market fell by 9.4% from February, with 40,049 orders recorded for March compared to 44,200 in February. Compared with last March, when just 7,600 orders were placed, orders increased by a whopping 427%. Those orders have resulted in a backlog of 237,700 trucks waiting to be built. “At March’s build rate, that’s about 9.4 months,” Vieth explained. The March bump in sales does not dispel predictions of production slowdowns due to parts shortages, especially semiconductors. A number of parts and materials are in short supply. “If it wasn’t about semiconductors, it would be about steel,” said Vieth, explaining that the parts and materials suppliers the industry relies on take time to ramp up, too. For example, to increase truck production, the plant supplying the axles has to increase production, and the mill supplying steel for the axles, and the mine supplying the ore to make the steel. There are similar supply-chain woes for other components, too. As each supplier ramps up production, lag time is built into the system. A lot of things need to happen for truck builders to increase production. In an April 15 blog post, Don Ake, vice president of commercial vehicles for FTR, explained it this way: “Unfortunately, the restarts in many industries have been difficult. Manufacturers had to install COVID safety protocols. Workers have been reluctant to return to jobs either based on personal health concerns or generous government assistance. The result is surging demand combined with pent-up demand, matched up against constricted supply.” Like automobile manufacturers, several OEMs announced at least temporary shutdowns during the month of April due to parts shortages. Unions play a role, too. On April 16, members of the United Auto Workers went on strike at Volvo Truck’s New River Valley plant in Dublin, Virginia, after an extension of the current labor agreement expired. The strike is not expected to spread to other Volvo or Mack facilities, as the New River Valley plant is under a separate contract. However, workers at other locations will undoubtedly be watching for the results of the work stoppage in Dublin. As for new truck prices, increases or potential surcharges are a possibility. While no official announcement has been made as of press time, market conditions are favorable. Used Class 8 truck sales rose in March according to ACT, by 29% over February numbers and by 31% over March 2020 sales. Average unit prices rose by 6%, while the average odometer reading and age both dropped. Trailer orders also rose, with more than 29,500 new trailers ordered in March, a 12% increase over February orders and more than three times the orders placed in March 2020. All of the major truck manufacturers experienced increased U.S. Class 8 sales in March, according to data received from Wards Intelligence. Freightliner’s 8,839 topped the list, a 41.5% increase over February sales and 47.7% better than March 2020. Peterbilt was next with sales of 3,181, an increase of 36.2% from February and 41.6% better than March 2020 sales numbers. PACCAR sibling Kenworth sold 3,040 Class 8 trucks in March, 42.6% more than in February and 11.9% more than in March 2020. Volvo experienced the largest increase of the big builders in terms of percentage with sales of 2,474, up 54.0% from February sales of 1,607 and 44.1% higher than March 2020 sales. Mack’s 1,663 trucks sold topped February sales by 38.2% and bested March 2020 sales by 16.3%. International rebounded with sales of 2,294, an increase of 51.0% over February sales of 1,519. Compared with March 2020, sales increased by 21.6%. Western Star sales of 570 were a 64.3% improvement from February sales of 347 and 9.2% better than the 522 sold last March. For the year to date, Freightliner holds 41.2% of the U.S. Class 8 market with sales of 22,371 trucks. Peterbilt follows with sales of 8,269 (15.2%), followed by Kenworth with 7,040 sold for 13.0%. Next is Volvo with 10.7% of sales volume from 5,827 units moved, followed by International with 10.1%. Mack trails with 7.2% of the market, while Western Star brings up the rear with 2.5%. Although truck sales are expected to remain strong in coming months, availability of parts will likely suppress manufacturing and the backlog of units waiting to be built isn’t likely to begin shrinking any time soon. Those who are interested in purchasing a new or late-model used Class 8 truck aren’t likely to benefit by waiting.