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DAT Truckload Volume Index shows spot van, reefer rates set records

The Trucker News Staff - April 20, 2021

BEAVERTON, Ore. — Spot truckload van and refrigerated freight rates hit all-time highs in March, according to DAT Freight & Analytics. Demand for flatbed transportation, driven by strong construction and manufacturing activity, also soared into record territory. The total number of loads posted on the DAT network increased 22.3% month over month, while the number of available trucks was up 30.9%, indicating a return of traffic after being disrupted by winter storms in February. The DAT Truckload Volume Index, a measure of dry van, refrigerated (reefer) and flatbed loads moved by truckload carriers, was up 31% in March to the highest level since the index was rebalanced in January 2015. The previous high was September 2020, when shippers were positioning freight for holiday shopping. “The strength of truckload freight relative to the amount of capacity available in the market, combined with the willingness of shippers to pay high rates, indicates an urgency from businesses to fill orders and meet delivery schedules after a difficult February,” said Ken Adamo, chief of analytics at DAT. “All three equipment types that make up our Truckload Volume Index showed extraordinary growth at a time when capacity is tight and truckload prices are up.” Van and reefer rates hit highs The national average spot truckload van rate was $2.67 a mile, up 13 cents compared to February and almost 30 cents higher than the previous monthly average high in December 2020. The national average spot reefer rate was $2.95 per mile, up 25 cents compared to February and 20 cents higher than the monthly average contract rate. The national average reefer load-to-truck ratio was 12.2, down from 15.9 in February, meaning there were 12.2 reefer loads on the DAT network for every available truck. The van load-to-truck ratio averaged 5.8, down from 7.5 in February, with high ratios in February being exacerbated by the severe winter weather that impacted much of the country. Construction drives flatbed demand Spot flatbed truckload rates and load-to-truck ratios are at their highest points since the mid-2018. The national average flatbed load-to-truck ratio was 83.7% in March, and spot flatbed volumes increased 34% compared to February on the strength of improved manufacturing output, a booming single-family housing market, and seasonal construction activity. The national average spot flatbed rate was $2.78 per mile, 20 cents higher than February. DAT freight outlook The national average contract van rate was $2.60 a mile in March, 7 cents less than the average spot van rate. The contract reefer rate was $2.75 a mile, 20 cents less than the spot reefer rate. When spot rates exceed contract rates, truckload carriers typically shift capacity to the spot market, creating uncertainty for shippers. According to DAT analysts, year-over-year comparisons of truckload rates and volumes are now less relevant, given the effects of the pandemic on supply chains. The impact of federal stimulus checks; an accumulation in household savings; component shortages in manufacturing; constraints and surcharges in intermodal networks; low inventories; and other supply chain disruptions at ports, canals and elsewhere could push the cresting of contract van and reefer rates into late in the second quarter of 2021. A shortage of semiconductors and other components may delay production and delivery of heavy- and medium-duty trucks ordered in the fourth quarter of 2020 until late 2021 or early 2022, which would affect capacity. The March blockage of Egypt’s Suez Canal is expected to have a negligible impact on U.S. supply chains compared to backlogs processing containers at U.S. West Coast ports. Congestion at the ports of Los Angeles and Long Beach, California, persisted as imports surged in March, as shown by the number of anchored vessels waiting to be offloaded, in addition to tight drayage and intermodal capacity coming off the ports.

Attracted by high rates, truckers shift to the spot market

The Trucker News Staff - April 15, 2021

With truckload rates at historic highs, more carriers made their equipment available on the spot market last week, according to DAT Freight and Analytics, which operates the industry’s largest load board network. The total number of loads posted to the DAT marketplace jumped 4.7% during the week ending April 11 but the number of available trucks on the network was up 5.3%. Balanced growth in the number of loads and posted capacity kept spot truckload van and refrigerated truckload rates in check last week. At 5.3, the national average van load-to-truck ratio was unchanged from the previous week, meaning there were 5.3 available loads for every available truck. The reefer load-to-truck ratio slipped from 11.5 to 10.6 while the flatbed ratio fell from 96.2 to 94.7 last week but capacity remains tight. National Average Spot Rates, April Van: $2.66 per mile, 1 cent higher than the March average Flatbed: $2.88 per mile, 12 cents higher than March Refrigerated: $2.97 per mile, 3 cents higher than March These are national average spot truckload rates for the month through April 11 and include a calculated fuel surcharge. The national average price of diesel was unchanged at $3.14 a gallon compared to the previous week. Van volumes dip on top 100 lanes: The average spot rate increased on 50 of DAT’s top 100 lanes for van freight and was neutral on 19 lanes as the number of loads moved on those 100 lanes fell 4.6% week over week. Van lanes to watch: Los Angeles to Stockton averaged $3.79 a mile, up 11 cents over the previous week. In Los Angeles, capacity remains tight due to high volumes from the ports of Los Angeles and Long Beach. Van freight from Los Angeles increased 6 cents to an average of $3.38 a mile. Reefer volumes slide on major lanes: The number of loads moved on DAT’s top 72 reefer lanes by volume declined 2.5% compared to the previous week, although the average spot rate edged higher on 38 of those lanes and was neutral on 13. Florida reefer demand rising: Refrigerated equipment is in high demand in Florida. Miami outbound reefer loads averaged $2.86 a mile, up 15 cents compared to the previous week, while Lakeland averaged $2.59 a mile, a 16-cent increase. Ontario, California, remained a hotbed for outbound loads, with Ontario to Phoenix up 20 cents to an average of $4.49 a mile and Ontario-Stockton up 14 cents to $3.88 a mile. Flatbed volumes level off but capacity stayed tight: The average spot rate increased on 48 of DAT’s top 78 flatbed lanes by volume last week. Twenty lanes were neutral and 10 lanes declined. Flatbed capacity is especially tight in the U.S. southeast on the strength of construction, manufacturing and agriculture. Four of the top five flatbed lanes by volume originated in Texas last week. The country’s high-volume lane last week was Houston to Fort Worth, averaging $2.87 a mile, up 4 cents week over week. The return leg averaged $2.56 a mile.

U.S. economy, truck market now ‘as good as it gets,’ says ACT analyst

The Trucker News Staff - April 13, 2021

COLUMBUS, Ind. — According to ACT Research’s latest release of the North American Commercial Vehicle Outlook, the list of things to like — from the current economic, freight, and commercial vehicle demand perspectives — is long. “From the freight perspective, spot rates continue to post new record levels and are currently inverted relative to contract rates, a clear signal that contract rates will continue to rise. Additionally, low business inventories and backed-up ports on both coasts have created a backlog of freight, providing excellent forward visibility for continued strong demand for freight services,” said Kenny Vieth, ACT’s president and senior analyst. ACT’s Outlook report forecasts the future of the industry, looking at the next one to five years, with the objective of giving OEMs, Tier 1 and Tier 2 suppliers, and investment firms the information needed to plan for what is to come. The report provides a complete overview of the North American markets and takes a deep dive into relevant, current market activity to highlight orders, production and backlogs. Information included in the report covers forecasts and current market conditions for medium- and heavy-duty trucks/tractors and trailers; the macroeconomies of the U.S., Canada, and Mexico; publicly traded carrier information; oil and fuel price impacts; freight and intermodal considerations; and regulatory environment impacts. “From a commercial vehicle demand perspective, orders, from medium-duty trucks to heavy-duty tractors and trailers, remain elevated, and backlogs for tractors and van-type trailers, at current build rates, are beyond 12 months, meaning that overall backlog-to-build ratios extend well beyond traditional ranges,” Vieth said. “Our song remains the same — the current business environment for heavy-duty trucks is about as good as any we have seen in 35 years of monitoring heavy-duty market conditions at ACT Research,” he concluded.

Understanding Clearinghouse rules is essential for small trucking businesses

Cliff Abbott - April 9, 2021

Starting up your own trucking business with your own authority is a big step that adds complexity to your business. Growing your business from a single truck to multiple units adds even more complexity. The management side of the business changes — you now need to provide payroll, insurance and other services for the people who drive for you. One important change you may need to make is your relationship with the Federal Motor Carrier Safety Administration (FMCSA) Drug and Alcohol Clearinghouse. You may have already registered yourself as a driver; this allows any carriers you drive for to run preemployment and annual queries of your record at the Clearinghouse. Depending on your business model, you may now also need to register as an employer. Whether or not you need to register as an employer hinges on whether you operate under your own authority, using your own Department of Transportation (DOT) number, or under the authority of another carrier. If you’re going it alone, you’ll need to register as an employer, even if you’re the sole driver. If you’re leasing your equipment to another carrier, the employer functions of the Clearinghouse may be handled for you by the carrier, but you’ll need to make sure. Some consortium services are registered with the Clearinghouse and can help handle your registration for you. It’s important to be clear on exactly what services are offered. Carriers have, in the past, failed DOT audits because they incorrectly assumed the consortium they used was performing Clearinghouse duties. While a consortium can conduct a query for you, it can’t purchase a query plan. Before you (or the consortium) can run a query, you’ll need to pay in advance for the number of queries you expect to use in a year. Currently, the cost is $1.25 per query. If you need to register as an employer, go online to clearinghouse.fmcsa.dot.gov and click the “Register” button. You’ll need to have an account set up on login.gov to register. If you have previously registered as a driver, you may already have a login. You’ll need to designate a “Clearinghouse administrator” for your company. If your spouse or someone else handles the paperwork, it can be that person, or it can be yourself. The administrator is the person who makes queries of records and receives the results. You’ll also need to specify the drug and alcohol consortium or third-party administration (C/TPA). If you are leased to a carrier, you and any drivers you hire may be included in the list of names they draw from for random drug and alcohol testing. If you run as your own company and are the only driver, however, you can’t “randomly” draw names from a list of one. A consortium allows your name to be placed in a pool with the names of other drivers and owner-operators to create a large enough group to draw from. Once registered, you’ll need to run queries on any new drivers you hire before they can drive. You’ll also need to run annual queries on every person who drives for you. These queries must be maintained in a file that can be easily accessed by you if your business is audited by the DOT. There are two types of queries — limited and full. Limited queries only tell you if information exists in a driver’s Clearinghouse record. Full queries provide detailed information about violations contained in the record. The cost for either query is the same, $1.25. The biggest difference, however, is the type of driver consent you’ll need to obtain results. For a limited query, you can simply have the driver or applicant sign a consent form that’s kept in your files. The FMCSA provides a sample consent form, but as written, it’s good for only one limited query. You can add a certain number of queries or specify how long the consent is good for — for example, until termination of employment. If the limited query indicates that information exists in the Clearinghouse database for that driver, you can then order a full query at no additional charge. Full queries require the driver to register with the Clearinghouse and provide consent electronically. You’ll need a full query for every new driver. If the driver hasn’t registered with the Clearinghouse, he or she will need to do so, a process that can delay the hiring process. For this reason, some carriers have requested an exception to the Federal Motor Carrier Safety Regulations (FMCSRs) to allow them to order limited queries for new drivers, following up with a full query only if a record is indicated. Full queries disclose whether the driver has tested positive for controlled substances or alcohol or refused to test. If the driver has completed a return-to-duty program and can now legally perform safety-sensitive functions, that information will be provided, too. If a driver you employ tests positive for drugs or alcohol, he or she must complete a return-to-duty program before driving again. The program must be administered by a substance abuse professional (SAP) who is registered with the Clearinghouse. It is your responsibility to provide the employee with a list of SAPs, even if you intend to fire the driver; however, you aren’t required to pay for the treatment or follow-up testing. You can obtain a list of SAPs at saplist.com/find-a-sap. The return-to-duty program requires the driver to meet face-to-face with the SAP and to follow the recommended treatment plan, including return-to-duty drug or alcohol screens. There will also be follow-up testing that will occur once the driver is back at work. It’s important to note that if you hire a driver who is subject to follow-up testing, you’ll be responsible for making sure it is done in accordance with the SAP plan. Compliance with drug and alcohol requirements might satisfy the regulations, but there’s a liability side to the issue, too. Imagine what could happen if a driver you hired was involved in a serious accident and it was discovered that the driver had not been tested or, worse, had tested positive but did not complete the return-to-duty process. Operating a trucking business requires knowledge beyond what most drivers are familiar with. By making sure you understand your responsibilities under the Drug and Alcohol Clearinghouse, you can help your business remain in compliance and protect yourself from liability.

Oil, diesel prices expected to stabilize to pre-COVID levels

Cliff Abbott - April 6, 2021

Around the world, demand for oil continues to rise. The result is, as always, increased prices at the pump — and the trucking industry is feeling the pain. There are multiple reasons for the increase, including what seems the most popular explanation that President Joe Biden’s administration is responsible. While it’s true that Biden has taken some actions that could impact oil supply (and therefore pricing) in the future, other events have taken place that have had a much greater impact on oil futures. One of the largest impacts has simply been the return of demand for oil and fuel to pre-COVID levels. As the world economy slowly emerges from shutdowns and restrictions, more people are driving and flying. Ships are bringing overseas imports. Rail lines have more product to move. On Nov. 3, 2020, Election Day, the national average retail price of a gallon of highway diesel fuel was $2.37, according to data released by the U.S. Energy Information Administration (EIA). That same week, a barrel of “Brent” oil — the light, sweet crude that is the benchmark for oil pricing worldwide — sold for $36.81. By Inauguration Day, Jan. 20, 2021, diesel prices had risen for 12 consecutive weeks to an average of $2.70 per gallon, a 13.9% increase. The crude oil used to make the diesel rose in price to $47.62, an increase of 29.4%. As of the last week of March, the price of a gallon of diesel had reached $3.20 and a barrel of oil went for $61.55. That’s a 35% increase in diesel pricing, driven by a 67.2% increase in the cost of crude oil. The severe winter weather that hit Texas and the U.S. Gulf Coast, resulting in the coldest three-day stretch in recorded history, wreaked havoc on the oil industry. Crude oil pumped from the ground is accompanied by water and water vapor, which accompany the oil through pipelines and valves. Just as small ice particles can shut down fuel flow to a diesel truck engine, they can also plug valves and filters in oil pipelines. Pipelines stopped flowing and production was halted, or at least restricted, at multiple refineries, reducing supplies and pushing pricing upward. Then there’s OPEC. The Organization of the Petroleum Exporting Countries that started with only five members today has 14. Add 10 more countries, including Russia and Mexico, and the organization becomes OPEC+. Altogether, OPEC+ controls 55% of the world’s oil supply and 90% of its reserves. The organization exists to coordinate and unify the petroleum policies of its member countries. It does this by seeking agreements on oil production by its members, keeping the supply in balance with demand so that prices remain stable. OPEC+ agreed to slash oil production in May 2020 in response to pricing crashes caused by COVID shutdowns. The barrel price of oil had already dropped to around $20 per barrel in March before hitting rock-bottom in the third week of April 2020. In that week, the barrel price reached $9.06 before finishing another day in negative territory. Slowly, the organization has raised production levels, attempting to match world needs while maintaining prices. In early March of this year, the organization announced that it would continue present production cuts into April, raising concerns that oil supply will not grow along with demand as the world economy reopens. The EIA predicts that crude oil prices will stabilize as the market becomes more balanced, settling in at around $58 per barrel in the second half of 2021. The agency cautions, however, that future production decisions from OPEC+ could impact the prediction. Higher prices could also stimulate more production in the U.S., which would also impact the market. Many drilling operations and wells were shut down as demand fell during COVID-19, but higher pricing could incentivize reopening. Another event with the potential to impact oil pricing occurred in late March when a large container ship became lodged in the Suez Canal, blocking all ship movement for nearly a week. Oil tankers bound from the Middle East to Europe, Asia and the U.S. use the canal. With hundreds of ships waiting for the canal to reopen, some chose to re-route around the southern tip of Africa. Both the delays and extra miles add transportation costs to the products being shipped. Finally, let’s go back and look at that election. On Nov. 4, 2019, a year before the presidential election and months before COVID-19 began to impact the economy, the national average price of a gallon of oil was $3.06. It hadn’t changed much by mid-January 2020, a year before the Biden inauguration. As COVID-19 shutdowns and travel restrictions occurred, however, the price fell steadily for 19 consecutive weeks, reaching a low of $2.39 per gallon in mid-May. By the November 2020 election, after five months of the lowest diesel prices since 2016, it had fallen to $2.37. As the calendar turns to April 2021, diesel prices are only about 14 cents per gallon above where they were pre-COVID. Crude oil prices are currently at about the same level they were before the pandemic. To be sure, the Biden administration has taken some actions that could impact long-term petroleum pricing. Executive orders that stopped new drilling and fracking on public lands, as well as a review of leases due for renewal, could slow future production. The order halting construction of the XL pipeline has no effect in the short term, since no oil was being transported yet. As Canada continues to exploit its oil sands reserves, however, the loss of the expected pipeline could add costs as alternate shipping options are used. The administration’s commitment to electric vehicles will eventually have an additional impact on the petroleum industry, but that impact is years away. For the present, the prices of crude oil and the products made from it should soon stabilize, perhaps even declining slightly in coming months. In fact, the March 29 fuel pricing update from EIA showed the first decline in the national average price in 22 weeks. That’s a welcome outcome for trucking as carriers attempt to control costs even as they benefit from higher freight rates. Still, much depends on the pace of the COVID-19 recovery, including ongoing vaccination programs, no adverse actions by OPEC+ and an absence of world events that could upset the supply and demand balance.

February weather brought temporary setback to trucking volumes

Cliff Abbott - April 5, 2021

A polar vortex that invaded deep into the Southern U.S. hit freight volumes hard in February. Travel was halted on icebound Texas highways, oil and gas pipelines froze, and electricity was knocked out in much of the state as record cold temperatures lasted for nearly a week. A return of good weather, a growing vaccination program and a new round of economic impact payments from the federal government created optimism for better months to come. The American Trucking Associations (ATA) said truckload tonnage reported by member carriers fell 4.5% in February after gaining 1.8% in January. The For-Hire Truck Tonnage Index, which compares monthly tonnage volumes with averages from the year 2015 (2015=100), came in at 110 for February, down from 115.2 in the prior month. The February result represented a 5.9% decline from February 2020, when the COVID-19 pandemic was just getting started. Bad weather got the blame. “February’s drop was exacerbated, perhaps completely caused, by the severe winter weather that impacted much of the country during the month,” said Bob Costello, chief economist for ATA, in a March 23 statement. “Many other economic indicators were also soft in February due to the bad storms, but I continue to expect a nice climb up for the economy and truck freight as economic stimulus checks are spent and more people are vaccinated.” Cass Information Systems (cassinfo.com) reported a seasonally adjusted decline in freight volume in February, also blaming the weather event. The Cass Freight Index, which measures shipments across multiple modes of transport including truck, rail, ship, barge and pipeline, reported that shipment numbers declined 3.2% from January volumes. The decline negated a 3% increase in January. However, Cass reported that February volumes were 4.1% higher compared to the same month in 2020. That rate was less than half of the 8.6% increase in January-over-January 2020 results. Tim Denoyer, vice president and senior analyst at ACT Research and writer of the Cass report, thinks the setback is temporary. “The significant supply side issues will only temporarily belie the strong demand environment, and considerable acceleration in freight demand is still most likely,” he wrote. Denoyer pointed out that March, April and May 2020 saw the biggest hits to shipping as manufacturing shut down around the globe. “With much easier prior-year comparisons ahead, if the Cass shipments index just takes a normal seasonal pattern from here, it will be up over 25% year over year in Q2,” he stated. A potential fly in the ointment, Cass reported, is the current shortage of semiconductors and other vehicle parts that has resulted in a slowdown in production of trucks and automobiles, along with other products. Even if products are available to haul, carriers will have difficulty taking delivery of new trucks and hiring drivers to operate them. As the economy continues to reopen, however, the parts pipeline should begin operating smoothly again. In his March 22 “Monday Morning Coffee” blog for FTR, writer Steve Graham pointed out that February weather impacted industrial production, which fell 2.2% in the month. He cites a 5.4% decline in mining and a 3.1% drop in manufacturing as key factors in the production drop. While the amount of freight hauled was subdued in February, the rates paid to haul it continued to rise. According to reports from DAT Trendlines (dat.com/industry-trends/trendlines), national average spot freight rates on their load board climbed to $2.40 per mile, gaining back some of the January declines. Refrigerated rates rose to $2.69 per mile, the best of the year so far, and flatbed rates rose to $2.56 per mile. Rates for all three modes rose considerably higher as March unfolded. DAT’s Trendlines report said the flatbed sector is experiencing “the tightest capacity we’ve seen since the Great Recession.” DAT also reported that the February ratio of loads to trucks was 29.7% higher than in January, and a whopping 206.1% higher than February 2020, a sign that rates will continue climbing. A separate report from DAT, the “2021 Freight Focus” publication, noted that the percentage of freight moved on the spot market grew substantially in 2020, from about 13% of truckload freight hauled in previous years to nearly 22%. Surging e-commerce business was credited with major supply-chain changes, causing shippers to turn to the spot market to find capacity. One might expect that freight could return to “normal” as the economy reopens, but many employers who have discovered the advantages of work-from-home employees may permanently alter their staffing strategies. With fewer employees in the office, companies spend less on real estate, office furniture, maintenance and even parking. The surge in e-commerce that resulted from people staying at home may continue for quite some time. How quickly the economy reopens hinges largely on the speed at which COVID-19 vaccinations are administered to the population. President Joe Biden has pledged that vaccine will be available for all adults in the U.S. population by the end of May, which could bring the hoped-for “herd immunity” sooner than expected. Some states, such as Texas, Mississippi and Florida, have removed COVID-19 restrictions from their populations, a move Biden termed “reckless.” If a resurgence in COVID-19 cases occurs, restrictions could be reimposed, but for now the country is gradually getting back to pre-COVID-19 business practices. Freight levels are expected to continue growing. Carriers are confident there will be plenty of freight to haul and are ordering new trucks at a level that has created an eight-month backlog of new truck orders. Freight rates are expected to continue rising as carriers can’t buy trucks to expand fleets and can’t find enough qualified drivers to drive the trucks already in their fleets. Rising diesel fuel prices could dampen the enthusiasm, but recent increases have brought fuel prices within a dime per gallon of where they were prior to the pandemic. As March came to a close, the U.S. Energy Information Administration’s (EIA) weekly fuel price update reported the first decline in the national average price for a gallon of diesel fuel since election week in November, 2020, following a stretch of 21 consecutive weeks of price increases. All in all, the next few months should be good ones for trucking.

ATA report shows OTR driver turnover rate ‘held steady’ in Q4 of 2020

The Trucker News Staff - March 31, 2021

ARLINGTON, Va. — The annualized turnover rate for over-the-road truckload drivers held steady in the last three months of 2020, according to the American Trucking Associations’ Quarterly Employment Report. The turnover rate for truckload fleets with more than $30 million in annual revenue was unchanged at a 92% annualized rate during the year’s fourth quarter, while the churn rate for smaller truckload carriers dipped two percentage points to 72%. “With the continued tightness in the driver market, it may seem surprising that the turnover rate didn’t jump in the fourth quarter as economic activity and freight traffic increased,” said Bob Costello, chief economist for ATA. “However, paradoxically, strong freight demand may have actually contributed to turnover staying steady by keeping drivers — particularly those engaged in the dry van and temperature-controlled sectors — too busy to change jobs.” The turnover rate at less-than-truckload carriers, typically much lower than the rate at truckload fleets, dipped two percentage points in the fourth quarter to 12% on an annualized basis — one percentage point off the 13% turnover LTLs averaged in 2020. For the full year, the annualized turnover rate at large truckload carriers averaged 90%, down one point from 2019. The annual average rate at smaller truckload fleets was 69% in 2020, down from 72% in the previous year. “With the impact of recently passed fiscal stimulus, and the quickening pace of vaccinations in the U.S., we are likely to see continued improvement in the economy which will drive not just healthier freight volumes, but are likely to create even more demand for drivers, tightening the market, so motor carriers need to remain focused on driver retention,” Costello said. “While the driver shortage temporarily eased slightly in 2020 during the depths of the pandemic, continued tightness in the driver market remains an operational challenge for motor carriers and they should expect it to continue through 2021 and beyond.”

Different trailer types help to differentiate truck-driving jobs

Cliff Abbott - March 31, 2021

Spend some time on any highway that’s frequented by trucks and you’ll soon realize that trailers come in an amazing variety of shapes and styles. The jobs involved in pulling those trailers do, too. While many drivers prefer to stay with a single type of trailer, others keep their trucking careers fresh and interesting by trying something different. Here are some of the different trailer types and a few tips on what the drivers who pull them experience in their daily work. Dry van, or “box” trailers, are the most popular. The most common cargo is boxes of product, stacked on pallets or on “slip sheets” and loaded by forklift. Products that are too big for boxing, such as paper rolls, tires or carpet, can be placed as necessary to balance the weight properly. Some loads fill the trailer and don’t require securing, while smaller loads may require securing. When freight securement is necessary, many trailers are equipped with tracks in the sidewalls where straps can be anchored, helping prevent cargo from shifting during travel. Load locks, adjustable bars or pipes with rubber feet that are held in place by tension, are used in some trailers. Dry vans typically have wood floors so bracing can be nailed down to help minimize shifting. Even when secured by straps or load bars, some freight can suddenly shift during a hard stop or on a sharp curve. This can cause damage to the cargo or make unloading difficult and — if severe enough — cause the truck to roll over. Refrigerated trailers, or “reefers,” can help maintain either cold or warm temperatures for cargo. Temperatures can be set as needed to keep products frozen or simply refrigerated. Reefers are often used in winter to provide warmth, preventing sensitive products from freezing. Because the refrigeration units and the diesel tanks that power them add weight, refrigerated trailers can’t haul quite as much as a typical van trailer. One advantage, however, is that reefers can haul dry freight too, increasing the number of available loads. Drivers who work with refrigerated trailers are responsible for making sure cargo is kept at the temperature specified by the customer and for keeping enough diesel fuel to run the unit until delivery. Depending on the cargo, reefers can have a higher center of gravity than some dry vans, requiring caution on turns and curves. Many pickups and deliveries are to grocery warehouses and other locations where wait time can be excessive, and drivers are often called on to handle at least a part of the freight, or to contract with “lumpers” to load or unload. Flatbed trailers are typically used to transport construction materials, vehicles or anything too large or difficult to load in a van-type trailer. They can be loaded from the rear when backed into a dock, or from either side; flatbed trailers are frequently loaded by overhead crane. Drivers are responsible for safely securing whatever is loaded on the trailer, following Federal Motor Carrier Safety Regulations (FMCSR). Chains, straps and other methods are used. Heavy items such as steel coils or pipe can be deadly in an accident if not properly secured. Drivers must protect some cargo from water damage by covering it with a tarp, which must be tightly secured to make sure water can’t get in and to keep the cover from being pulled off or damaged in the vehicle’s wind stream. Securing and tarping cargo can require handling heavy tie-down equipment and climbing on the trailer. Physical strength and agility are important. Depending on the cargo and customer, loading and unloading can sometimes be quick, and flatbed drivers aren’t often required to handle the cargo itself. Other types of flatbed trailer include drop deck, double drop and removable gooseneck (RGN), commonly known as a “low boy.” These trailers are often used to haul vehicles or equipment that would be too large to legally transport on a flatbed. Driving with a flatbed requires constant monitoring for loose chains or straps and blowing tarps. Cargo that is over-dimensional or heavy may require extra permits and, depending on the jurisdiction, can be subject to special rules, such as daylight hours only. Tank trailers can be easy to load and unload, and there is often no line at the delivery point. Due to the high center of gravity, trailers tend to be top-heavy. Drivers must exercise caution on turns and curves. Additionally, liquids hauled in tanks can slosh (move from side to side) and surge (end to end), especially when the tank isn’t completely full. Either can exert force on the vehicle and could contribute to a rollover. Because many tank loads are hazardous materials, some jobs require a Haz-Mat (hazardous materials) endorsement and special rules may apply, such as a prohibition against using tunnels or certain bridges. Pneumatic tanks are used to haul dry, powdered or granular substances such as sand or popcorn, and baking products such as flour and sugar. A stream of pressurized air carries the product through tubes and hoses into silos or storage containers. These tanks can be dusty and noisy, but they load and unload reasonably quickly. Pressurized tanks are used for compressed gases such as propane, oxygen and more. Dump trailers are often used in construction for dirt, gravel and asphalt, but can also haul other dry products such as lime or fertilizer. Many unload through a tailgate but those designed to haul grain often “belly dump” through openings under the trailer. Dump trailers can be very unstable when the box is raised for unloading and can be top-heavy when driving, depending on the cargo. Loading and unloading is usually quick and easy. Auto haulers are often responsible for loading and unloading vehicles without damaging them. They must be loaded correctly for proper weight distribution, with each vehicle properly secured against movement. Deliveries are sometimes tricky, as the driver may have to park on or next to the highway when unloading. Livestock haulers must be knowledgeable about the animals they transport and able to ensure the animals’ safety and comfort during the trip. Pickups and deliveries are often in rural areas on roads not designed for tractor-trailers. Space doesn’t permit a more detailed explanation of each type of trucking, and there are other trailer types not listed here. Many drivers enjoy talking about their craft and will be glad to tell you all about the trucking niche they find most rewarding. All you have to do is ask.

Flatbed freight market jumps as vans, reefers level out week of March 21

The Trucker News Staff - March 29, 2021

BEAVERTON, Ore. — Truckload van and refrigerated freight volumes leveled off while the flatbed load-to-truck ratio jumped sharply the week ending March 21, according to DAT Freight & Analytics. The total number of loads posted increased 0.7% and the number of trucks dipped 1.3% week over week. Rates held steady for van and reefer freight, while flatbed pricing reflected strong demand for trucks. For the national average spot rates in March, vans were $2.68 per mile, 28 cents higher than the February average. Flatbeds were rated at $2.73 per mile, up 17 cents from last month, and refrigerated were rated 25 cents higher for $2.95 per mile. These include a calculated fuel surcharge. The national average price of diesel was $3.19 a gallon the week ending March 21, up 1.6% week over week. Flatbed load post volumes continue to build as construction activity and manufacturing pick up. The national average flatbed load-to-truck ratio was up from 77.6 to 86.5 the week ending March 21, and the average spot rate increased on 41 of DAT’s top 78 flatbed lanes by volume. Twenty-three lanes were neutral, and 14 lanes declined compared to the previous week. The country’s highest-volume flatbed lane during the week was Lakeland, Florida, to Miami, averaging $3.13 a mile, down 2 cents week over week. That’s better than the average outbound rate from Lakeland, $2.42 a mile. Houston to Dallas averaged $2.77 a mile, up 11 cents compared to the previous week and 14 cents higher than the average outbound rate from Houston. Los Angeles to Phoenix jumped 9 cents to $3.40 a mile, while Phoenix to Ontario was up 20 cents to $2.70 a mile. While rates are high for the time of year, data indicates a plateau in demand for trucks. Rates were lower on 55 of DAT’s top 100 lanes and higher on 24 lanes, and overall volume on those 100 lanes was up just 1% week over week. The national average van load-to-truck ratio fell from 5.4 to 4.8. The spot van rate from Los Angeles to Stockton, California, averaged $3.60 a mile for the week, 5 cents more than the previous week and up 24 cents compared to the last week of February. For all outbound loads, Los Angeles averaged $3.27 a mile, down 5 cents compared to the previous week. Allentown, Pennsylvania, to Boston, Massachusetts, averaged $4.98 a mile and has lingered around $5 for the last four weeks. The jump in rates from Memphis, Tennessee, to Charlotte, North Carolina, outpaced all major van lanes with an increase of 23 cents to $3.41 a mile for the week. Memphis averaged $3.35 a mile outbound for spot van freight. The number of loads moved on DAT’s top 72 reefer lanes by volume was up 2.7% compared to the previous week. The average rate was higher on 36 of those lanes, neutral on 16 and lower on 20 lanes. California continues to drive the reefer market, with Los Angeles outbound averaged $3.88 a mile on a 4.7% increase in volume compared to the previous week while Ontario averaged $3.63 per mile on 8.7% more volume. Stockton averaged $3.22 a mile, a 13-cent increase week over week on 6.7% more volume. Two major ports for temperature-controlled goods, Philadelphia, Pennsylvania, and Elizabeth, New Jersey, are producing strong rates to Boston, Massachusetts. Elizabeth to Boston averaged $6.05 a mile, a 15-cent increase week over week, while Philadelphia to Boston averaged $5.24 a mile, up 10 cents on similar volume. Atlanta to Lakeland, Florida, averaged $3.88 a mile, a 10-cent increase compared to the previous week. Load volumes from Tucson, Arizona, tumbled 7%, and the average outbound spot rate fell 13 cents to $2.86 a mile. National average spot rates are derived from DAT RateView, a database of $110 billion in actual market transactions and 249 million freight matches each year.

Women of Trucking: Volvo Group’s Mary Beth Halprin ‘born into’ transportation industry

The Trucker News Staff - March 26, 2021

In honor of International Women’s Day and Women’s History Month, Trucking Moves America Forward (TMAF) recognizes the growing number of women who are supporting the trucking industry and working to keep America moving forward. Mary Beth Halprin, who serves as vice president of public relations and corporate affairs for Volvo Group North America, joined the company in 2019. However, her roots in the transportation industry — and in marketing and communications — go back more than two decades. Raised in Michigan, Halprin grew up in the heart of the automotive industry. Her father was a car designer for Ford Motor Co., and his career inspired three of his daughters, including Halprin, to join the transportation industry. “I was born into the industry. I got my passion and foundation from growing up around so many who worked in various parts of the business,” Halprin shared, adding that she was also inspired by her sisters. One sister was an electrical engineer and one was a regional field rep for Ford dealers; both were among only a handful of few women in their career fields at the time. Working in the trucking industry is a passion for Mary Beth. “It’s something I truly enjoy,” she said. “I am humbled by how important trucking and transportation is to the U.S. economy. The industry itself is truly a global village.” Halprin said she is proud of the trucking industry’s philanthropic outreach, citing the role of many companies, including the Volvo Group, in helping those in need during the COVID-19 pandemic, as well as the most recent industry relief efforts to help Texans recovering from severe weather. “To me, (my job is) fulfilling on so many levels because, I can see the way the industry impacts people’s lives,” she said. In addition, Halprin said she enjoys being a part of the innovations taking place within the trucking industry, adding there is a “need for all types of talent, skills and experiences.” “This is one of the best times to be part of the trucking industry,” she explained. “We are driving many new emerging technologies. We are reshaping how transportation of the future will look, be powered and how we will improve our environment. That’s exciting!” One of the items on Halprin’s bucket list is to earn her commercial driver’s license and have the chance to drive a truck on the open road.

ACT’s February for-hire index points to another new low in truck driver availability

The Trucker News Staff - March 25, 2021

COLUMBUS, Ind. — The latest release of ACT Research’s For-Hire Trucking Index, which includes February data, showed a Driver Availability Index that has tightened to another new low point in the past three years. The ACT For-Hire Trucking Index is a monthly survey of for-hire trucking service providers. ACT Research converts responses into diffusion indexes, where the neutral or flat activity level is 50. The index tightened to a new low in February, to 23.6 from 25.0 in January, according to Tim Denoyer, ACT Research’s Vice President and Senior Analyst. “As fleets often like to be gearing up for springtime volume growth in February, the tightness in the driver market feels acute,” Denoyer said. This is the third straight month that the index had the tightest reading in the three-year history of its development. “The latest stimulus is yet another factor on a long list of driver constraints keeping the truckload market tight,” Denoyer said. “Demographics and the Federal Motor Carrier Safety Administration (FMCSA) Drug & Alcohol Clearinghouse are also factors inhibiting driver re-engagement, even in response to record spot rates and rising driver pay. “Significant additions to capacity this year are unlikely,” he concluded. The ACT Freight Forecast provides forecasts for the direction of truck volumes and contract rates quarterly through 2020 with three years of annual forecasts for the truckload, less-than-truckload and intermodal segments of the transportation industry. For the truckload spot market, the report provides forecasts for the next 12 months. In 2019, the average accuracy of the report’s truckload spot rate forecasts was 98%.

Women of Trucking: Rikki Shinkle discovers ‘second family’ in trucking industry

The Trucker News Staff - March 25, 2021

In honor of International Women’s Day and Women’s History Month, Trucking Moves America Forward (TMAF) recognizes the growing number of women who are supporting the trucking industry and working to keep America moving forward. Rikki Shinkle has worked for MTS for more than 15 years. In her role as fleet manager of the Dayton, Ohio, terminal, she oversees the company’s trucking operations, including managing on-time deliveries and pickups, ensuring the safety of drivers and making sure customers are happy. Shinkle, whose father, uncle and husband are all professional truck drivers, said a career in trucking “fell into my lap” more than 25 years ago when she took a summer job at a small distribution center in West Virginia that was owned by a family member. Later, after a friend suggested that Shinkle apply for a job in trucking as a full-time career, she transitioned into dispatch while working for Meyer Distribution. When asked what she loves most about working the trucking industry, Shinkle said it is working with the drivers. “I love hearing their stories,” she said. Rikki encourages other women who are interested in joining the trucking industry to strongly consider doing so. “I would tell them that the trucking industry is a second family and home,” she said.

Women of Trucking: Natashia Gregoire inspired by ‘front-row view’ of trucking industry

The Trucker News Staff - March 24, 2021

In honor of International Women’s Day and Women’s History Month, Trucking Moves America Forward (TMAF) recognizes the growing number of women who are supporting the trucking industry and working to keep America moving forward. As the managing director of communications and culture for FedEx Freight, Natashia Gregoire oversees FedEx’s corporate communications, including internal and external communications, as well as the company’s culture; diversity, equity and inclusion; and citizenship efforts. Gregoire started at FedEx in 2012 and has supported the FedEx global business through a number of communications roles. In 2019, she transitioned to her current role in 2019, an opportunity she says allows her “to truly learn more about the day-to-day operations up close.” “Over the past two years at (FedEx) Freight, it’s been remarkable to be among our incredible team members who move the goods we consume and show up day after day to transport essential supplies during the pandemic,” Gregoire said. “I feel so lucky to have this front-row view to how trucking moves our economy.” The best thing about working in the trucking industry, she said, is getting to know people and hear their personal stories. “Every day, I get to hear and learn so much about our drivers — the places they have been, the experiences they have and the impacts they are making for our customers and communities,” she explained. “It is truly amazing work, and I am excited to be a part of telling those stories every day.” Gregoire encourages other women to consider the diverse career opportunities available to women in the trucking industry, from driving commercial vehicles to serving in support and leadership roles. “Trucking, like any other industry, needs professionals of all types — HR, finance, marketing, etc.,” she said. “I encourage women to explore the opportunities that trucking has to offer and find their lane. “I know some amazing, trail-blazing women in the industry who are paving the way from the cabs of our trucks to the executive offices of companies like FedEx Freight,” she continued. “Ten years ago, I would not have envisioned myself working in trucking, but today I’m serving in a leadership role that is helping to shape the culture of the organization.”

New truck orders far outpacing current production levels

Cliff Abbott - March 23, 2021

If you plan to order a new Class 8 truck in 2021, waiting may not be wise. That’s because each new month brings more orders for new trucks than can be built, and the backlog is growing swiftly. As the backlog grows, there will also be more demand for used trucks, at a time when fewer are being traded in. In February, 15,727 new Class 8 trucks were sold on the U.S. market, according to data received from ACT Research (actresearch.net). That’s down 8.4% from January sales of 17,164, and it’s down 0.5% from February 2020 sales figures. At the same time, orders for new trucks have skyrocketed. North American orders for new Class 8 equipment totaled 43,800 in February, up 212% from February 2020 — and far ahead of the industry’s current production rate. As of March 1, the backlog of trucks that have been ordered and are waiting to be built stands at 228,000. At February’s build rate, it would take 11.2 months just to clear the backlog if no other orders were placed. “For perspective, in the seven-month period of January through August 2020, manufacturers averaged nearly 31,000 trucks per month,” offered Kenny Vieth, president and senior analyst for ACT. “In February, they built just over half that amount.” It isn’t that manufacturers wouldn’t like to build more trucks. One issue is staffing. Some workers affected by the COVID-19 pandemic haven’t returned to work yet, but even those who have face challenges. “Growing staff while trying to social distance and follow prescribed safety rules is difficult,” Vieth noted. The bigger issue, however, is parts. OEMs are limited by the supply of vehicle components they can buy. That’s a common issue when any industry ramps up production. If more trucks are built, more tires, engines, seats and so forth are needed. More steel is required, in the form of engine blocks, axles and frame rails. Suppliers also need to ramp up production, and they need more materials from their own suppliers. Typically, it takes a month or two for suppliers to meet the increased demand. Perhaps the most critical parts shortage is semiconductors, or “chips.” As people stayed home due to COVID closings and layoffs, they got on their computers and ordered stuff. They bought new laptops and tablets, PlayStations, phones, games, vacuum cleaners and more. Nearly everything they ordered is built using semiconductors. New vehicles require dozens — sometimes hundreds — of chips. Every component, from wheel sensors to turn signals to the engine electronic control module (ECM) requires semiconductors. Even tires contain chips. Most of the automobile makers have already announced reductions from their first-quarter production goals this year. Some are building vehicle components as opposed to entire vehicles, and stockpiling the unfinished products until semiconductors are available. A Feb. 21 Forbes article by Stephen McBride pointed out that more than 70% of the world’s “top shelf” semiconductors are made by one company, Taiwan Semiconductor Manufacturing Co. (TSMC), where manufacturing is already booked out into the fall. “Semiconductors are now the most important resource in the world,” McBride wrote. The demand isn’t going away any time soon. Electric vehicles, some say, are destined to replace fossil fueled transport. Each electric vehicle built contains more than 3,000 semiconductors. Trailer manufacturers are having the same issues with components such as axles and with steel to manufacture them. ACT’s Trailer Components Report, issued March 1, reported that January’s order numbers were 66% higher than current build rates. The firm reported 24,200 trailer orders in February, with dry van and refrigerated trailers leading the way. “Discussions have indicated supply issues include castings, forgings, sheet metal, wood products and tires,” said Frank Maly, director of commercial vehicle transportation analysis and research for ACT. “Many of the vendors for these items, excluding wood, are seeing strong demand from the truck side of the CV market as well, and these limitations have tempered our forecasts.” On an individual truck builder basis, Freightliner sold 1,038 fewer Class 8 trucks in February than in January, according to information received from Wards Intelligence (wardsintelligence.com). Freightliner sold 6,247 new trucks in February, down 14.2% from the prior month. Compared to February 2020, however, sales increased by 403 trucks (6.9%). Peterbilt reported sales of 2,335 for the month, down 418 (15.2%) from January’s 2,753 and down 80 units (3.3%) from February 2020 sales. PACCAR sibling Kenworth reported 2,132 sold, up 14.1% from January’s 1,868 but down 12.0% from February 2020 sales of 2,424. International sales fell by 172 trucks (10.2%), with 1,519 sold in February versus 1,691 in January. Compared to February 2020, sales dropped by 194 (11.3%). Volvo Truck sales of 1,607 declined 8.0% from January but grew 21.2% from 1,326 sold in February 2020. Volvo-owned Mack Truck’s 1,182 trucks bested January sales by 100 trucks for a 9.2% gain. Compared with February 2020 however, Mack sales declined 7.6%. Western Star reported 347 sold in February, a drop of 17.0% from January’s 418 and 24.4% down from February 2020 sales of 459. At the end of February 2021, Class 8 market shares on the U.S. Market are as follows: Freightliner, 40.6%; Peterbilt 15.2%; Kenworth 13.9%; Volvo 10.5%; International 9.9%; Mack 7.7%; and Western Star at 2.3%. With the U.S. economy poised to rebound, a shortage of parts is slowing production of trucks and trailers as new orders push the backlog higher each month. When buyers can’t get new trucks, they’re forced to hold on to older equipment longer, driving demand — and pricing — for used trucks higher. Since freight is expected to remain strong, a capacity crunch might push rates back into record territory. March stimulus payments, designed to help the economy, could create more freight than the trucking industry can handle, and new trucks won’t be available in numbers large enough to handle the increase. Talk of tax increases from Washington could possibly offset temporary economic gains from the stimulus, but a new tax structure could be months away. While trucks may be harder to come by in the coming months, those who can find them may capitalize on freight rates that are expected to remain strong. Those who wait may find that trucks are more expensive — if they can find them at all.

Women of Trucking: Sherri Garner Brumbaugh follows father’s footsteps into trucking, ATA leadership

The Trucker News Staff - March 23, 2021

In honor of International Women’s Day and Women’s History Month, Trucking Moves America Forward (TMAF) recognizes the growing number of women who are supporting the trucking industry and working to keep America moving forward. In addition to serving as president of Ohio-based Garner Transportation Group — a company founded by her parents, Fern and Jean Garner, in 1960 — Sherri Garner Brumbaugh is the current chair of the board of the American Trucking Associations (ATA). She is the second member of her family to be elected ATA chair. Her father led the federation from 2002-2003. When Brumbaugh was elected as chair by ATA’s board of directors during the association’s Management Conference & Exhibition, she spoke at the conference through a video message, sharing the story of her involvement in the trucking industry. Trucking became a part of Brumbaugh’s life at a young age, when she rode along with her father. During her pre-teen and teenage years, she helped with the family business; ultimately returning to her roots as part of a trucking family as an adult. Brumbaugh said one of the many issues that’s important to her is supporting the trucking industry’s efforts to combat human trafficking. She works closely with Truckers Against Trafficking (TAT), and trains every new employee at Garner Trucking with the TAT training resources to identify human trafficking. America’s truck drivers, described as “our eyes and ears on the road,” are uniquely positioned to identify and report suspected cases of human trafficking. Employees at Garner Trucking are empowered to recognize the signs of human trafficking during their first orientation session. Throughout her almost 35 years of experience in the trucking industry, Brumbaugh has served in a variety of leadership positions, including the board of directors of the Ohio Trucking Association, the Indiana Motor Truck Association and Truckload Carriers Association. She also served as the acting Secretary of the Advisory Committee on Human Trafficking for the U.S. Department of Transportation; the committee provided recommendations to former Secretary Chao to address human trafficking issues as they relate to all U.S. transportation sectors. Brumbaugh said she hopes to be a role model for other women, bringing more women into trucking as both drivers and executives. Garner Trucking has received numerous recognitions in recent years, including being awarded as a Top Trucking Company for women to work for in transportation.

Truckload prices jumped as February’s winter weather stressed fragile supply chains

The Trucker News Staff - March 22, 2021

PORTLAND, Ore. — According to the DAT Truckload Volume Index, freight pricing rose and national average load-to-truck ratios for dry van and refrigerated freight hit record highs in February as severe weather across much of the U.S. distressed supply chains and disrupted transit times. The Index, which measures dry van, refrigerated and flatbed loads moved by truckload carriers, declined 9.8% from January to February, reflecting a reduction in freight movement for the month. However, demand for truckload capacity tightened as contracted carriers struggled to fulfill service commitments. During the week of Feb. 21, DAT achieved record network volumes with more than 10 million loads posted, an increase of 42% from the previous high recorded in June 2018 — and a 174% improvement over the same period in February 2020. Nationally, the van load-to-truck ratio averaged 7.5 in February compared to 4.3 the previous month, and the reefer ratio was 15.9, up from 8.2 in January. The flatbed ratio jumped from 47.9 in January to 62.2 last month. The impact on truckload pricing was significant, according to DAT analysts. Dry van spot rates averaged $2.41 per mile in February, up from $2.36 in January and 63 cents higher than in February 2020. Increases were even greater in the temperature-controlled sector, where reefers were in demand to keep traditional dry freight from freezing. Reefer spot rates averaged $2.70 a mile, up 9 cents month over month and 62 cents year over year. “The scope of the weather system and impact on people and infrastructure at once constricted freight volumes and made it more expensive to move goods long distances over the road,” said Ken Adamo, chief of analytics at DAT. “After a decline in January and early February, pricing unexpectedly shot back up to post-holiday levels and strained fragile supply chains.” In addition to record-level spot market volumes, intermodal network disruptions pushed more freight into the spot markets as shippers sought to meet delivery deadlines with customers. At $2.58 per mile, the national average spot flatbed rate hit its highest point since August 2018 as the movement of building products and raw materials for manufacturing increased. The flatbed load-to-truck ratio was 62.2 compared 47.9 in January and 20.4 in February 2020. Load-to-truck ratios reflect the number of available loads on the DAT network of load boards relative to the number of available trucks and indicate levels of supply and demand in the truckload marketplace. The DAT market outlook in March is for spot rates and truckload freight volumes to fall from record highs but remain elevated as they track a more normal pattern of activity. Strong import volumes continue to put pressure on supply chains as shippers try to replenish their inventories. Demand for refrigerated trailers will continue to build as shippers move domestic and imported produce. Supply chains are adjusting to more than $600 million in weather-related agricultural losses across Texas, including citrus crops; cold- and warm-season vegetables; livestock grazing materials such as oats, rye grass and triticale; and landscape plants, according to agricultural economists at Texas A&M University. The start of produce season in southern Florida will further tighten capacity. Flatbed carriers are benefiting from high demand for farm and construction machinery. The Port of Baltimore is the No. 1 roll-on/roll-off (RoRo) port in the U.S. and handles the majority of the East Coast’s market share of imported RoRo cargo annually. Last month, total tonnage of RoRo equipment was up 301% year over year compared to February 2020. “Starting in March, you can give far less weight to year-over-year comparisons because you’re going to see some pretty wild numbers,” Adamo said. “Shifting consumer demand and imbalanced supply chains in 2020 make it more important than ever to rely on the industry’s best analysis and historical data, going back multiple years, as you forecast the rest of 2021 and into 2022.”

Pennsylvania-based PGT Trucking opens new terminals in Arizona, Arkansas

The Trucker News Staff - March 22, 2021

ALIQUIPPA, Pa. — PGT Trucking Inc. on March 18 announced the official opening of two new locations, one in Phoenix, Arizona, and one in Fort Smith, Arkansas. PGT, which is celebrating its 40th year in business this year, has more than 30 company and agent locations across the U.S. The addition of the Phoenix terminal and the relocation of the Poteau, Oklahoma, staff to Fort Smith will allow PGT to expand its transportation solutions to meet the growing needs of current customers and new business, according to a company statement. The Phoenix terminal, located on the north side of the Phoenix Sky Harbor International Airport at 2625 East Air Lane, extends PGT’s footprint westward. “We are excited to offer additional shipping solutions into the Southwest by way of our new Phoenix location,” said Chad Marsilio, COO for PGT. “Our terminal is made up of experienced drivers and staff who are ready to provide capacity to our diverse customer base.” The relocation of the Poteau terminal to 3315 Cavanaugh Road in Fort Smith, Arkansas, provides a convenient, accessible hub positioned closer to the carrier’s customers. “The (Fort Smith) terminal is conveniently located right off of Interstate 540 and U.S. Highway 71, making it more accessible to our drivers,” Marsilio said. “It is closer to PGT’s customer network, which gives us more freight options. The on-site shop provides drivers with direct maintenance support, and the terminal is run by the same great staff we had in Poteau.”

Women of Trucking: Mandy Graham believes trucking is truly the ‘backbone of America’

The Trucker News Staff - March 22, 2021

In honor of International Women’s Day and Women’s History Month, Trucking Moves America Forward (TMAF) recognizes the growing number of women who are supporting the trucking industry and working to keep America moving forward. As far as career aspirations went, Mandy Graham said that as a girl, she knew she wanted a lifelong career that was full of adventure and allowed her to make a difference. Joining the trucking industry provided the opportunity for both. Graham has had various roles in trucking during the past two decades, beginning her career as a dispatcher and eventually moving into the commercial insurance side of the industry. From providing relief during national disasters to delivering medical supplies and groceries, she said she is honored to be a part of the trucking industry, adding that each day brings new challenges and opportunities. As a dispatcher, she learned firsthand the dedication, hard work and sense of duty that truck drivers share. Later, her journey at Great West Casualty Co. started in underwriting support. With experience and education came new positions, bringing more direct involvement with motor carriers and the industry. In 2017, she was promoted to her current position of chief operating officer for Great West Casualty Co. Working with the people of the trucking industry is the highlight of her career, according to Graham. “Our industry is driven by family-owned businesses, entrepreneurs, owner-operators, you name it. There is no single ‘right recipe’ for a motor carrier,” she explained. “They vary in size, specialty, service area, the list goes on. Every trucker has their own unique story, yet they all play an important part in our industry and share the qualities of dedication and resiliency. Graham said she has always been amazed at truck drivers’ commitment to service, regardless of what is thrown at them, adding that trucking truly is the backbone of America. She believes that anyone who is looking for a career that provides daily adventure with a sense of purpose and community, they can find a professional home in trucking. “I would encourage anyone, including women, who are considering joining the industry to do so,” she said. “It is much more diverse than one might think and that is a large part of what makes it special.”

XPO dubs planned spinoff company GXO, plans to complete transaction later this year

The Trucker News Staff - March 19, 2021

GREENWICH, Conn. — XPO Logistics Inc., which in December 2020 announced plans to spin off the logistics segment of its existing business, on March 18 announced the planned name for the new company — GXO Logistics Inc., with a marketing tagline of “Logistics at full potential.” “Today, we took an exciting step forward on our path to spinning off our logistics segment,” said Brad Jacobs, chairman and CEO of XPO. “The new company is called GXO — three letters that stand for the game-changing opportunities we’re bringing to the table for customers, employees and shareholders, with a nod to our XPO heritage,” he continued. “GXO will take this legacy into the future as an independent public company, with countless ways to deliver logistics at full potential.” Once the planned spinoff is complete, XPO and GXO will operate as separate pure-play businesses, focused separately on transportation and logistics. XPO will remain a global provider of freight transportation, primarily less-than-truckload and truck brokerage, while GXO will be the second largest contract logistics provider in the world. Malcom Wilson, XPO’s CEO for European operations, has been selected to serve as CEO of the newly formed GXO. “The new company’s brand identity captures the qualities that make us an industry leader — our ability to deliver faster, leaner, smarter logistics for customers at lower cost, using advanced automation and data science,” Wilson said. “I’m looking forward to leading our global team to the many new opportunities in our future.” XPO on March 18 also announced it has filed a confidential initial Form 10 registration statement with the U.S. Securities and Exchange Commission for the planned spinoff of its logistics business. The transaction is expected to be completed during the second half of 2021.

Women of Trucking: Jana Jarvis encourages other women to explore careers in industry

The Trucker News Staff - March 19, 2021

In honor of International Women’s Day and Women’s History Month, Trucking Moves America Forward (TMAF) recognizes the growing number of women who are supporting the trucking industry and working to keep America moving forward. Jana Jarvis, who joined the Oregon Trucking Associations as president in February 2015, was first exposed to the trucking industry early in her career while working for a battery manufacturer, and she quickly recognized how critical trucking is to the economy and U.S. supply chain. Jarvis said she has always had a positive impression of trucking and a deep respect for truck drivers. When, as a young woman she first began traveling alone, her father advised her, “If you need help, let a truck driver help you.” That positive impression eventually led to her current position with Oregon Trucking Associations. “I always knew that trucking was integral to economic growth and opportunity in our country. Our country moves the majority of all our goods and products through trucks,” she said, adding that there are many things she loves about working in the trucking industry. “It’s hard to pinpoint one thing. The people are fabulous. From the business owners to our association’s members, to the staff to the drivers,” she said, adding, “There’s a lot to be proud of within this industry.” The importance of the trucking industry is especially evident during times of crisis and recovery, she said, pointing to truck drivers across the nation who have continued to deliver essential goods throughout the COVID-19 pandemic. “I don’t know what industry could have possibly made me prouder as I watched the trucking industry’s work during the pandemic,” she said. Women who have an interest in trucking should definitely explore careers in the industry, Jarvis said, noting that she is proud to see the increasing number of women in trucking. “There’s a lot of opportunity for women in this industry. From driving a truck, to working at a trucking company, to running one, to being in an association, there’s tremendous opportunity for women,” she said. “We tend to think of the industry in masculine terms but it’s going through a bit of a transformation,” she continued. “When I say there’s opportunities for women in the industry, I mean it. It’s important we let women know that opportunities exist for them in trucking through a variety of jobs and career opportunities.”