Business

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. Heather Paraino serves as the senior corporate counsel for UniGroup C.A., the parent company of moving services such as United Van Lines and Mayflower. Paraino has worked in the trucking industry since 1997 when, she said, she “jumped at the chance to join the UniGroup team, an iconic St. Louis company, right out of school.” “As a history-buff, it was so interesting to learn about the background and context of our nearly a century-old industry,” she said. “Trucking is one of the rare ‘legacy’ industries that not only remain vital to our national economy, but that continues to innovate,” she continued. “There are few other industries with such a rich history and personal family-owned culture that’s also innovating to remain relevant and vital to the U.S. and even world economies.” In addition to the rich history of moving and trucking, Paraino said she loves the industry because of the amazing people. “Maybe it’s because there’s such a strong family — often multigenerational — engagement in much of the moving industry, but I have found there to be a real sense of pride among United’s and Mayflower’s network of movers,” she explained. “As a woman, I have found it to be a welcoming and supporting industry to establish my career.” When asked what advice she would give to other women interested in joining the industry, Paraino encouraged them to join. “The industry is a great place for talented people to establish and grow their careers,” she noted. “There are also plenty of industry veterans who are willing to be mentors/helpful to someone just beginning their careers. You need only ask.” Paraino has held several leadership positions within the transportation industry. She was appointed Chair of the U.S. Department of Transportation/Federal Motor Carrier Safety Administration’s Household Goods Consumer Protection Working Group, and has been invited by the U.S. government to speak at conferences sponsored by the U.S. DOT. In 1997, she was named UniGroup’s Woman of the Year. Before going to work at UniGroup, she was as a legislative assistant for a member of the U.S. Congress.

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. After a career in policy and public affairs, which included jobs working for the Louisiana Association of Business and Industry and the National Federation of Independent Business, Renee Amar joined the Louisiana Motor Transport Association (LMTA) in November 2020, serving as the organization’s executive director. “The trucking industry is important to our economy. (Everyone) is impacted by the trucking industry,” said Amar, who describes herself as a “huge advocate” for the business community. “I’m passionate about the impact (the trucking industry has) on the economy and telling that story,” she continued. “I don’t think people truly realize how much trucking impacts their lives.” Amar takes great pride in her job and the essential role that truck drivers play during crises, when making deliveries becomes especially difficult. During severe weather, such as the hurricanes that frequently impact Louisiana, she said it’s time to “put your problem-solving cap on” and figure out how to make deliveries when “roads don’t look like how they normally do, and you don’t have access to certain things.” When the nation was hit by crippling winter storms in February, Louisiana was dealt an ice storm that caused power outages, treacherous travel conditions and other crises. Amar’s role was coordinating water deliveries to Louisiana communities, a job she said she found rewarding. “I was a part of connecting some really great people with potable water — getting them in touch with members that will drop whatever they are doing to go pick up what is needed and have it delivered,” she said. “It’s incredibly moving to me. We’re not just integral as part of the process — this is a set of people that are unlike any other.” Amar encourages other women to join the trucking industry. “You’ll meet some of the best people you’ve ever met before,” she said, adding that the women in trucking are “some of the most tenacious, persistent, smart and sophisticated women that I’ve ever met.”

COLUMBUS, Ind. — According to the recently released North American Commercial Vehicle On-Highway Engine Outlook, published by ACT Research and Rhein Associates, the Biden administration’s focus includes prioritizing investment in new low-carbon technologies to strengthen the nation’s competitiveness, improve its air quality and add good-paying jobs in a growing economic segment. “The trucking industry has rebounded strongly, with spot freight rates at record highs and increased new truck order intake leading to strong industry outlooks for the medium and heavy-duty segments,” said Kenny Vieth, president and senior analyst for ACT. “The year-long shift to more home deliveries because of COVID continues to influence the trucking industry, and these reduced-distance routes and increasing last mile deliveries are ideal candidates for alternative powertrain adoption.” The report also notes that, while the trucking industry might escape short-term focus, longer-term efforts, such as infrastructure investment, will be good for truckers, particularly vocational trucks. In addition, analysts believe green initiatives will drive demand for zero-emission commercial vehicles. “In 2020, truck penetration peaked at just over 32% in a depressed Class 8 market. For smaller displacement engines, non-captive suppliers represented more than 90% market share,” said Andrew Wrobel, senior powertrain analyst for Rhein. “Captive engines account for almost 70% of Class 8 tractor applications, where engines over 14 liters continue to increase share, ending 2020 around 55% share.” When asked about alternative fuels, Wrobel commented, “Demand for natural gas-powered trucks has shown modest growth, with further slow growth anticipated, and despite the current pandemic, electric vehicle product development and new introductions continue.” The North American On-Highway Engine Outlook highlights power-source activity for commercial vehicle Classes 5-8, including five-year forecasts of engines volumes and product trends. The report is tied to ACT’s detailed monthly reports.

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. Tracy Brito Denora has spent nearly 20 years with the New Jersey Warehousemen & Movers Association (NJWMA), and she is now the first woman to serve as the company’s executive director. Denora first started working in the trucking industry when she was in high school during the 1980s, working for her family’s moving company, Apollo Moving & Storage a North American Van Lines Agent in Newark, New Jersey. After college, she worked as the production manager for a magazine publishing company for 10 years. “Moving is what I know best and love, and I enjoy helping New Jersey moving companies in any way I can, whether it’s assisting in their license renewals, tariffs or everyday moving issues,” Denora said, referring to her return to the industry. Her goal, she said, is to raise public awareness of the dangers of not using licensed public movers and prevent the risk of consumers falling victim to moving scams. Denora strongly encourages other women to pursue careers in the trucking and moving industry. “Go for it! Don’t be hesitant (because of) the stigma that this industry is predominately male. (It’s) simply not true,” she said. “In the last decade I have seen so many women work their way up to senior management and owners. (NJWMA has) two women on our board of directors that own their own moving company. We have created a NJWMA Women Moving Women Group, and the size of our group doubled by our second meeting this past February. “I am proud of every woman in this industry; they are fierce!” Denora said.

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 1981, Joyce Sauer Brenny, founder and CEO of Brenny Transportation Inc., began her career as a semi-truck driver, hauling railroad ties. In 1986, she transitioned into sales and management at a large carrier. A decade later, she founded her own logistics and trucking company, based in in St. Joseph, Minnesota. Brenny Transportation, a Certified Women Business Enterprise, has been named a Top Place for Women to Work by Women In Trucking. Brenny, who says she has a “definite passion for people,” has made it her personal mission to support other women at her company and in the transportation workplace. In addition, Brenny said she believes it is “her purpose to improve the trucking industry for those who have dedicated their life to serve in the noble profession of trucking and transportation.” During her career in the trucking industry, Brenny has held numerous leadership positions. She currently serves on the Minnesota Trucking Association board of directors and the American Trucking Associations safety policy committee. She was the first woman trucker to chair the Minnesota Trucking Association. In addition, Brenny serves as president of the St. Christopher Truckers Development and Relief Fund, a nonprofit organization that helps truck drivers and their families when an illness or injury causes them to be out of work. Brenny has also received recognition for her work in trucking. In 2012, she was named the most influential woman in trucking by WIT.

BLOOMINGTON, Ind. — FTR’s Trucking Conditions Index (TCI) rebounded in January to a +10.37 reading, roughly matching the November index reading. The December TCI was +8.51. Stronger freight rates and volume more than offset higher fuel costs in January, according to FTR. Rising fuel costs will have a more negative impact on the February TCI, but analysts believe the index will remain strong because freight market dynamics are solidly in carriers’ favor. “Market conditions are close to the best ever for trucking companies, and they should remain that way at least through this year,” said Avery Vise, vice president of trucking for FTR. “With stimulus from Washington, extraordinarily lean inventories, and a fading pandemic, solid freight demand is practically baked in. FTR’s latest forecast calls for stronger freight demand through 2021, and analysts expect positive trucking conditions through 2021 even if the current tight driver market loosens somewhat as the pandemic fades. “The bigger risk to good times is that driver capacity comes back too strongly as labor participation rebounds, but with the pipeline of new drivers constricted for the past year, that risk seems low,” Vise noted, adding that the strong freight volume “suggests that the principal issue is the supply of drivers, not demand for them.” The TCI tracks changes representing five major conditions in the U.S. truck market — freight volumes, freight rates, fleet capacity, fuel price and financing. The individual metrics are combined into a single index that reflects the industry’s overall health. A positive score is good, while a negative score represents bad conditions. Readings near zero are consistent with a neutral operating environment, and double-digit readings in either direction suggest significant operating changes are likely. Details of the January TCI can be found in the March 2021 issue of FTR’s Trucking Update, published February 26.

WASHINGTON — A report released by the U.S. Bureau of Transportation Statistics (BTS) March 8 showed a 13.3% drop in transborder freight in 2020 compared to 2019. According to report, which reflects freight moved by truck, rail, pipeline, air and vessel, the decline began at the onset of the COVID-19 pandemic and continued through November. December’s transborder freight saw a slight increase of 0.4%. Trucking was the most-used mode for transborder shipments, moving $695 billion (65.3%) of the year’s total of $1.06 trillion in freight, but still saw a 10% drop from 2019. Trucks crossing the U.S.-Canada border moved $309 billion, or 58.8% of all northern border freight, while truckers moved $386 billion between the U.S. and Mexico (71.1% of all southern border freight). Shipments between the U.S. and Canada saw a 9.9% drop, while U.S.-Mexico freight fell by 10.1%. The busiest truck border ports, accounting for 44.6% of total transborder truck freight for 2020, were Laredo, Texas ($163 billion); Detroit ($95 billion); and Buffalo-Niagara Falls, New York ($51 billion). The top three truck commodities, accounting for 48.3% of total transborder truck freight for the year, were computers and parts ($136 billion), electrical machinery ($110 billion) and motor vehicles and parts ($89 billion). Rail was the second-most-used mode for transborder shipments, moving $148 billion (14%) of all freight. The total amount of freight moved between the U.S. and Canada (both directions) by mode was: Truck: $309 billion; Rail: $79 billion; Pipeline: $48 billion; Air: $32 billion; and Vessel: $20 billion. Almost all (99.4%) of pipeline freight between the U.S. and Canada were mineral fuels, primarily oil and gas. Most of these freight flows were on pipelines linking Canada and the American Midwest. Between the U.S. and Mexico (both directions) total freight moved by mode was: Truck: $386 billion; Rail: $70 billion; Vessel: $48 billion; Air: $14 billion; and Pipeline: $5 billion. Of freight by vessel between the U.S. and Mexico, $22 billion, or 44.9% were mineral fuels, primarily oil and gas shipments between Gulf of Mexico ports in the U.S. and Mexico. More than half of those shipments went through Texas ports. Data in the BTS release is not seasonally adjusted and is not adjusted for inflation.

COLUMBUS, Ind. — The latest release of ACT’s For-Hire Trucking Index, which includes data for January 2021, showed a Driver Availability Index that has tightened to its lowest point in the past three years. Tim Denoyer, ACT Research’s Vice President and Senior Analyst commented, “The Driver Availability Index tightened to a new low in January, to 25.0 from 28.1 in December,” said Tim Denoyer, vice president and senior analyst for ACT. “For the second straight month, this was the tightest reading in the three-year history of this index. Rising driver pay for several months has yet to impact the tight driver market. The surge in pandemic cases, which is now reversing, and extended unemployment benefits, which are set to be extended further, are also supply constraints.” The ACT For-Hire Trucking Index is a monthly survey of for-hire trucking service providers; responses are converted into diffusion indexes, where the neutral or flat activity level is 50. “Though many driver schools did not reopen last year, and school capacity will likely be constrained into mid-2021, rising vaccinations and pay should help driver school output recover, along with some recent news of new schools,” Denoyer noted. “Still, demographics and the FMCSA Drug & Alcohol Clearinghouse are inhibiting driver re-engagement, though elevated spot rates and rising driver pay should have a larger effect going forward.”

GOTHENBURG, Sweden, and STUTTGART, Germany — Daimler Truck AG and the Volvo Group completed the formation of a fuel-cell joint venture, dubbed “cellcentric,” on March 1. The joint venture was designed to develop fuel-cell systems for use in heavy-duty trucks. Both companies’ goals are to begin customer tests of trucks with fuel cells in three years, with series production during 2025. The ambition is to make the new joint venture a leading global manufacturer of fuel cells, and help the world take a major step towards climate-neutral and sustainable transportation by 2050. “The common goal is for both companies to offer heavy-duty vehicles with fuel cells for long distance freight transport in series production in the second half of this decade,” said Claes Elliasson, senior vice president of media relations for the Volvo Group. “We believe that fuel cells will be one important solution in order to meet the EU CO2 target for 2030 and could also play an important role in other parts of the world. One key condition will be the availability of hydrogen infrastructure. In addition, EU-wide standardization and hydrogen infrastructure will be needed in order to fully capture the opportunity of carbon neutral transportation using hydrogen.” Eliasson said hydrogen fuel cells will be an “attractive solution” for powering electric trucks to carry heavy loads and in long-haul applications. In addition to trucks, the fuel-cell system may be applied to other products. The joint venture will develop a system with several power stages, including a twin system with 300 kilowatt continuous power for heavy-duty long-haul trucks. Based on demand in heavy-duty truck applications, the products are suitable for uses such as stationary power generation. “For us at Daimler Truck AG and our intended partner, the Volvo Group, the hydrogen-based fuel-cell is a key technology for enabling CO2-neutral transportation in the future,” said Martin Daum, chairman of the board of management for Daimler Truck AG, in a November statement. “We are both fully committed to the Paris Climate Agreement for decarbonizing road transport and other areas, and to building a prosperous jointly held company that will deliver large volumes of fuel-cell systems.” Daimler Truck AG and the Volvo Group have agreed to name the company cellcentric GmbH & Co. KG. The Volvo Group has acquired 50% of the partnership interests in the existing Daimler Truck Fuel Cell GmbH & Co. KG for approximately 6.3 billion in Swedish krona ($740,889,450) on a cash and debt-free basis. The Volvo Group and Daimler Truck AG own equal interests in the joint venture, but continue to be competitors in all other areas such as vehicle technology and fuel-cell integration in trucks. Following a presentation on electrification in its vehicles to the Paris Climate Protection Convention, Daimler Truck AG signed a binding agreement with the Volvo Group in November 2020. “In the future, the world will be powered by a combination of battery-electric and fuel-cell electric vehicles, along with other renewable fuels to some extent,” said Martin Lundstedt, President and CEO of the Volvo Group, in a November statement. “The formation of our fuel-cell joint venture is an important step in shaping a world we want to live in.” In addition to the fuel-cell venture, Daimler Truck AG and the Volvo Group partnered with Industrial Vehicles Corp., OMV and Shell to create hydrogen trucks in Europe. The goal is to achieve zero net emissions in Europe by 2050. The Volvo Group and Daimler Truck AG share the European Union’s Green Deal vision of a carbon natural Europe by 2050, according to Eliasson. “Transport and logistics keep the world moving, and the need for transport will continue to grow,” Daum said. “Truly CO2-neutral transport can be accomplished through electric drive trains with energy coming either from batteries or by converting hydrogen on board into electricity. For trucks to cope with heavy loads and long distances, fuel cells are one important answer — and a technology where Daimler has built up significant expertise through its Mercedes-Benz fuel cell unit over the last two decades.”

GREEN BAY, Wis. — Schneider is celebrating a milestone this year with the 30th anniversary of the company’s intermodal service. In 1991, in an effort to provide more options for its customers, Schneider launched its first intermodal route, between Chicago and Los Angeles, that combined road and rail modes for transporting freight. According to a company statement, both the carrier and its customers quickly grasped the benefits of intermodal shipping, and Schneider’s intermodal service grew exponentially. Schneider’s intermodal network now has more than 45 ramps with major railroads connecting intermodal containers across the U.S., Mexico and Canada. Intermodal has also opened a new wave of opportunities and innovations that Schneider continues to invest in. The company has approximately 22,300 intermodal containers and 20,600 intermodal chassis. “Thirty years ago, we chose to embrace change and deliver a better economic value for our customers by converting to intermodal,” said Mark Rourke, president and CEO of Schneider. “Today, we are a top intermodal provider, and I believe our best days are still in front of us as more and more customers look to transportation solutions that are environmentally friendly.” Intermodal transportation is a sustainable shipping option that uses less fuel and contributes much lower emissions, helping companies reduce their carbon footprint, according to Schneider’s statement. In addition, intermodal shipping allows larger capacity to ship more products in a cost-effective manner. With intermodal transport, the supply chain keeps moving at the borders of Canada and Mexico — Schneider containers pre-clear customs, giving nonstop, trucklike service. “Schneider’s intermodal business innovated and evolved to meet the needs of our customers,” said Jim Filter, senior vice president of intermodal operations for Schneider. “We reached this significant milestone because of the impact and success of an incredibly talented team of people. We are proud and look forward to more achievements to come.”

BEAVERTON, Ore. — Amid record freight volumes for the time of year, national average spot truckload van and refrigerated rates swung back up to early January levels during the week ending Feb. 28, according to DAT Freight & Analytics, which operates the industry’s largest load board network. The number of load posts on the DAT network was 24% higher and truck posts increased 11% compared to the previous week. Intermodal network disruptions pushed more freight into the spot markets as shippers sought to meet delivery deadlines with customers. For the month of February, load postings were up 162% compared to February 2020, when supply chains began to experience imbalances in demand due to COVID-19. National average spot rates for February, which include a calculated fuel surcharge, were $2.40 per mile for van, $2.56 per mile for flatbed and $2.69 per mile for refrigerated. Van and reefer pricing entered March much higher than these February averages. On March 1, the national average van rate was 18 cents higher at $2.58 per mile; the reefer rate was up 19 cents at $2.88. Trendlines Van volumes surge Dry van load post volumes surged 28% last week as supply chains continue to recover from a month of difficult weather. Truck posts increased 22% compared to the previous week, returning to more seasonal levels. The van load-to-truck ratio averaged 10.9 last week, up from 9.6 the previous week. The average ratio in February was 7.5, up from 1.8 in February 2020. The average spot van rate was higher on 91 of DAT’s top 100 van lanes by volume last week. Volume in those lanes increased 26.6%. Texas-bound loads increase Compared to the previous week, there was a 53% increase in load post volumes for flatbed freight coming into Texas markets. Reefer volumes increased 28%, and van volumes were up 25%. At $2.64 a mile, the average rate from Houston to Dallas was up 24 cents, while Dallas to Houston increased 35 cents to an average of $3.26 a mile. The number of loads moved each direction increased 226% compared to the prior week, although Dallas to Houston was the far busier lane. California keeps climbing Outbound load volumes from Los Angeles and Ontario, California, increased 18% and 36% week over week, respectively. The average outbound rate from Los Angeles rose 23 cents to $3.07 a mile, paced by L.A. to Dallas (up 43 cents to $2.94 a mile), Stockton (up 8 cents to $3.36), Seattle (up 18 cents to $3.45), Denver (up 17 cents to $3.83), and Phoenix (up 13 cents to $3.35). Reefer demand stays balanced Overall spot reefer volumes were up 15% compared to the previous week, balanced by a 15% increase in truck posts. The national average reefer load-to-truck ratio was up slightly to 21.2. The number of loads moved on DAT’s top 72 reefer lanes by volume was virtually unchanged compared to the previous week. The average spot reefer rate was higher on 56 of those lanes, lower on four, and neutral on 12. Compared to the same period in 2020, reefer load-post volume was up 306% last week. Demand for temperature-controlled equipment is exceptional for this time of year; we’re also entering a period where year-over-year comparisons will be skewed by the start of shutdowns in the U.S. due to the pandemic. Markets in the Midwest and West heat up Capacity continues to tighten in Twin Falls, Idaho, after a 13% increase in volume last week. The average outbound rate increased for the third week in a row, jumping 15 cents to $2.63 a mile. Volumes in this region are up 38% compared to the previous week and almost double from two weeks ago with growers reporting a shortage of trucks to haul apples, pears, onions, and potatoes, according to the USDA. A similar shortage of trucks was reported in the Imperial and Coachella valleys of California. Week over week, the average rate from Fresno gained 21 cents to $2.76 a mile, and Ontario was up 12 cents to $3.19. Outbound spot reefer loads from Green Bay, Wisconsin, and Grand Rapids, Michigan, both averaged more than $4 a mile last week. Green Bay increased 17 cents to $4.06, and Grand Rapids was up 19 cents at $4.07. 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.

ARLINGTON, Va. — American Trucking Associations’ (ATA) advanced seasonally adjusted For-Hire Truck Tonnage Index increased 1.4% in January after rising 1.2% in December. In January, the index equaled 114.6 (2015=100) compared with 113.1 in December. ATA recently revised the seasonally adjusted index back five years as part of its annual revision. “Over the last four months, the tonnage index has increased a total of 3.3%, which is obviously good news” said Bob Costello, chief economist for ATA. “However, the index is still off 2.8% from the high in March as tonnage plunged 9% in April alone. I continue to expect a nice climb up for the economy and truck freight as we get more economic stimulus and increased vaccination numbers.” Compared to January 2020, the seasonally adjusted index fell 2.1%, which was preceded by a 2.6% year-over-year decline in December. In 2020, the index was 4% below the 2019 average. The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 107.4 in January, 4.5% below the December level (112.4). In calculating the index, 100 represents 2015. ATA’s For-Hire Truck Tonnage Index is dominated by contract freight as opposed to spot market freight. ATA calculates the tonnage index based on surveys from its membership. This is a preliminary figure and subject to change in the final report, issued around the fifth day of each month. The report includes month-to-month and year-over-year results, relevant economic comparisons, and key financial indicators.

The U.S. Class 8 sales market started 2021 with a strong January that saw sales of 17,164 units, according to data received from ACT Research. Compared to December, which is usually the best sales month of the year, January sales declined 20.9% from sales of 21,700. Compared to January 2020, however, sales increased by 7.4%. Much of the increase came from sales of fifth-wheel-equipped road tractors. In January, 12,325 were sold, up 19.8% from 10,284 sold in the same month last year. Last January, 64.4% of the Class 8 trucks sold on the U.S. market were road tractors. This year, that figure rose to 71.8% of new trucks. The remaining percentages of Class 8 trucks went to vocational purposes such as dump, concrete, trash hauling or other purposes. “Those numbers aren’t seasonally adjusted,” said Kenny Vieth, president and senior analyst for ACT. “Normally, we’d expect around a 20% drop in sales from December to January, so this year is right in that ballpark.” As 2020 began, the industry was expecting to deal with an overcapacity situation. Truck sales in 2019 far outpaced growth in freight availability, and experts were predicting there would soon be too many, causing rates to stagnate. Then came COVID-19. With much of the country shut down due to the pandemic, e-commerce exploded as people who were stuck at home took to computers to order products. Spending hit bottom in April, but a round of stimulus checks from the government got people buying again. Soon there weren’t enough trucks rolling to handle it all, driving freight rates upward — and buyers snapped up available trucks to take advantage. They’re still buying. In fact, they’re buying at a faster clip than the trucks can be built. North American orders for new trucks in January were 42,309, down 1.8% from December orders but a whopping 146% higher than January 2020. That’s far more trucks than can be built in a month, increasing the backlog at manufacturing plants, which now stands at nearly six-and-a-half months. How soon that backlog can be addressed will depend on how quickly parts can be obtained. Global manufacturing has not yet fully awakened from COVID-19 shutdowns. One commodity in short supply is microchips, a problem impacting makers of vehicles of all sizes. Another is steel, with supplies dwindling as mills and foundries have stopped or slowed production due to the pandemic. In “normal” times, U.S. truck manufacturers can produce about 27,000 Class 8 trucks per month. That number could already be reduced due to workforce availability and COVID-19 restrictions. Shortages of microchips and steel products could curtail production further. In a Feb. 11 statement, Vieth noted, “While demand is strong, supply-chain impediments are accumulating, from steel production constraints created by global economic reengagement during a pandemic, to silicon chip shortages, and in late January, the Mexican government ordering oxygen producers to give medical demand precedence over industrial supplies.” Orders for new trailers followed a similar trajectory to trucks, with 29,100 ordered in January. That figure is down 33% from December order numbers but represents a 94% increase compared to January 2020. Production slots at trailer manufacturers are booked until late in the year. Trailer builders could suffer from shortages of parts, too, especially steel products. Used Class 8 tractors also fell from December, by 8%, but ran 14% higher than January 2020. The average price of a used tractor was down with the average age and odometer reading up, according to ACT’s latest State of the Industry: U.S. Classes 3-8 Used Trucks report. With the trucking industry poised for a year of growth and profit, fuel prices could provide a damper. The national average price for a gallon of diesel sat at $2.37 during election week last November, according to the U.S. Energy Information Administration (EIA). Since then, every week has brought another increase, up to $2.88 as of press time. That’s a 21.5% increase. President Joe Biden’s administration plans to cancel pipeline construction, halt drilling on federal lands and restrict fracking operations — all of which will add to fuel costs over time. Still, fuel surcharges offer protection from rising prices and the trucking industry won’t be impacted too severely. On an individual basis, some manufacturers did better than others in the first month of the year, according to data received from Wards Intelligence. January sales almost never exceed December’s, but that’s exactly what happened at Freightliner. The company sold 7,285 new, Class 8 trucks in January on the U.S. market, an increase of 306 units, or 4.4%, over December sales. Compared with January 2020, Freightliner sold 1,225 more trucks, a 20.2% increase. Western Star’s 418 trucks sold in January trailed December sales of 494 by 15.4% and were 5.2% behind sales of 441 in January 2020. Kenworth had an outstanding December with sales of 4,218, followed by a more normal January with 1,868 units moving in that month for a sales decline of 55.7%. Compared to January 2020 sales of 2,078, Kenworth sold 210 fewer units for a decline of 10.1% Peterbilt sales also declined in January, dropping from 3,270 in December to 2,753 to start 2021, a 15.8% decline. Compared to January 2020, sales improved by 3.1% Both of the PACCAR companies have introduced updated models for 2021. Peterbilt’s 579 model and Kenworth’s T680 both sport better aerodynamics, improved electronics and more. Volvo sales declined by 13.5 % in January, with 1,746 trucks sold compared with 2,018 in December. Compared with January 2020, sales improved by 278 units, or 18.9%, in a solid start for the company. Volvo-owned Mack Truck saw a sales decline of 1,068 trucks from December, from 2,150 to 1,082. Compared with January a year ago, however, Mack sales rose by 105 trucks (10.7%). International sold 1,691 Class 8 trucks in January, a decline of 25.6% from December’s 2,272. Sales were also down from January 2020 sales of 1,939 for a decline of 12.8%. The company should be in for an interesting year as new owner Traton SE, formerly Volkswagen Truck and Bus, begins its first full year of ownership. Traton also owns MAN and Scania brands in Europe, and Resende, Brazil-based Volkswagen Truck and Bus, with 2020 sales of about 242,000 vehicles. Look for powertrain components developed by MAN and Scania engineers to make their way into the International lineup. With a strong start and plenty of orders on the books, it’s looking like a strong 2021 for U.S. sales of Class 8 trucks.

THOMASVILLE, N.C. — Old Dominion Freight Line Inc. has expanded its network by adding nine service centers in new and existing markets, the company announced in February. With this growth, the less-than-truckload (LTL) carrier now has 245 service centers. According to a company statement, all nine new or renovated facilities are strategically placed for operational efficiency and will support capacity needs, improve shipping time and enhance delivery flexibility, allowing Old Dominion to better serve customers as demand continues to grow amid the COVID-19 pandemic. “Investment in our service center network is a hallmark of Old Dominion’s long-term strategic plan,” said Chip Overbey, the company’s senior vice president of strategic planning. “We measure capacity in three key areas — service centers, people and equipment. Each area is critically important to serve our customers and accommodate the growing demand for premium LTL services.” Each service center is constructed with best-in-class facilities to improve operational efficiencies. Old Dominion’s recent investments in innovative technology, such as tools for real-time track and traceability, allow the carrier to adapt to meet evolving customer needs while maintaining its premium service. “Shippers can expect to see improved transit times, faster response times and adequate capacity to meet their transportation needs,” Overbey said. “In each of these nine markets, our team worked together with the common goal of wanting to serve our customer and community better.” Old Dominion’s service center openings include: Brooklyn, New York The latest New York addition is strategically placed to provide easy access to the state’s Interstate 495 and Route 278. The Brooklyn service center will cover multiple tri-state area markets including Jackson Heights, Queens, Long Island and Flushing. The 30-door facility is supported by 21 local Old Dominion employees. Edinburgh, Indiana The Edinburgh service center is positioned near two major highways, Interstate 65 and Highway 31, to help support shippers in southern Indiana. This facility operates on 20.1 acres, with 63 doors and room to expand to a total of 120 doors in the future. Old Dominion hired 15 new employees to help serve the area. Grand Island, Nebraska Newly constructed and offering easy access to Interstate 80, the Grand Island service center is a 34-door facility that rests on 9.3 acres. With room for future growth of up to 40 doors, this facility will improve operational efficiencies for the agriculturally rich central Nebraska region. Two new employees were hired following the move. Louisville, Kentucky The Louisville service center was recently renovated to support growing capacity needs. The facility rests on 9.8 acres off Interstate 264, and is near Interstates 65, 71 and 64. Renovations to the facility included adding 37 doors, 4,000 square feet and a new office. The 96-door facility moves a variety of products across industries, including electronics, medical supplies, car parts, food and spirits, to name a few. Mansfield, Ohio The Mansfield service center sits on 20 acres of land owned by Old Dominion. Sharing a fence line with the Ohio Air National Guard Base, the 62-door facility is strategically positioned in the middle of several industry- and manufacturing-rich communities. With only 10 of the 20 acres developed and room for 38 additional doors, this service center has room for future growth. McDonough, Georgia The McDonough location is Old Dominion’s sixth service center in the Atlanta metro area, and the 27th in the Southern region. Located in the McDonough Industrial Park, the 75-door service center sits in a prime location by Interstate 75, Atlanta’s major interstate, near major retail distribution centers and industrial manufacturers. Mesa, Arizona This 63-door facility, which rests on 10 acres, has room to add up to 60 more doors, leaving plenty of room for future development to better support the East Valley. This service center brought 15 new jobs to the community. Old Dominion has four service centers across the state of Arizona. Milton, Pennsylvania The Milton location is a 22-door facility with the capacity to expand by an additional 20 doors. Located at the intersection of Route 80 West/East and Route 11/15 North/South, the service center moves freight such as food, warehouse inventory and health care-related products. With the addition of this facility, Old Dominion is reducing response times by nearly two hours, increasing the service center’s accessibility to shippers in north-central Pennsylvania. Olympia, Washington Relocated from its previous 20-door facility, the Olympia service center now has 55 doors, allowing Old Dominion to increase capacity and ability to add 92 doors in the future. The service center sits on nearly 16 acres and is located a quarter of a mile from Interstate 5. Seven new employees were hired to support the Olympia service center.

Although it’s just beginning its second year of existence, the Federal Motor Carrier Safety Administration’s (FMCSA) Drug and Alcohol Clearinghouse has become a major part of every CDL holder’s record. As of January 2020, carriers are required to run a pre-employment query at the Clearinghouse for each new driver — and another one every year the driver remains employed. Carriers are also required to report positive DOT tests for drugs or alcohol to the Clearinghouse, as well as return-to-duty (RTD) and follow up testing results. Although drug and alcohol testing has been part of trucking regulations for three decades now, some drivers still aren’t familiar with the Clearinghouse and their responsibilities as commercial drivers. Let’s look at some of the changes. For 30 years, employers maintained their own detailed files on drug and alcohol testing for drivers, in addition to the results of those tests and any follow up, such as return-to-work testing performed after a driver tested positive. However, there was a problem with the way the information was shared between companies. When a driver applied for a job, regulations required the carrier to ask all former employers (within the past three years) whether the driver in question had ever tested positive or refused to test. Some carriers would make the required queries, while others would not. In addition, some carriers never provided the information when it was requested. The result was that often a driver who tested positive could simply move on to another carrier and start driving, ignoring the FMCSA requirement to complete a return-to-work program administered by a qualified substance abuse professional (SAP). The Drug and Alcohol Clearinghouse is changing all that. Carriers are required to report all positive tests, refused tests and other categories, such as adulterated specimens, to the Clearinghouse. In addition, carriers must check the driver’s record at the Clearinghouse before putting that person behind the wheel. Since the Clearinghouse is only a year old and the regulations require the employer to inquire of all previous employers who performed DOT testing for three years, carriers will need to contact DOT employers the driver worked for prior to Jan. 6, 2020, but within the required three-year span. It’s important to note that carriers you apply to can’t check your record with the Clearinghouse without your permission. In order to grant that permission, you must be registered with the Clearinghouse. You’ll also be able to review and contest information in your Clearinghouse file. If you haven’t already, you’ll need to create an account at Login.gov. Make sure you remember the login info and password. When you apply for a job, you don’t want a delay while you scramble to find your login information. Once you have created a login, click the link back to the Clearinghouse. You’ll need your CDL number to sign up, along with other information. When you apply for a driving job, the employer will have two options for running a query of your Clearinghouse record. For a “limited” query, one that only confirms whether or not there are any violations in your file but does not provide specifics, you’ll be asked to sign a consent form. This form may include specific dates for which the query can be made, or a total number of queries the employer can make. For a “full” query, one that provides detailed information about violations in your account. you’ll need to log in to your Clearinghouse account and give your consent electronically. If your CDL has changed because, for example, you moved to a different state, be sure to update your file at the Clearinghouse. The same goes for any other information that changes, such as your email address. You can see what’s in your Clearinghouse file, free of charge, at any time. If you’re a self-employed driver, such as an independent owner-operator, you’ll need to register as an employer. You’ll be prompted to identify yourself as an owner-operator during the signup process. However, if you’re leased to a carrier and fall under that carrier’s drug and alcohol testing program, your driver registration should work. If you are not covered under another carrier’s drug and alcohol testing program, you’ll need to participate in a consortium, sometimes called a third-party administrator (TPA). Because you can’t select yourself for a “random” drug screen, your name is added to others in the TPA’s database, and you become part of a driver pool. The TPA will likely require an initial (pre-employment) drug screen and will notify you if you are selected for random testing. If you employ other drivers, the TPA will also be your contact for other forms of testing, such as reasonable suspicion, post-accident and return-to-duty testing. Be sure you choose one that is registered with the Clearinghouse, and don’t forget to ask about the network of collection sites used. If you’re selected for a random test, you’ll save time and effort if the collection site is nearby. Finally, if there’s a positive DOT drug or alcohol test, a refusal to test or other negative information in your Clearinghouse account, there is an FMCSA process you must follow before you can return to driving for ANY employer. Steps in the process include an evaluation by a SAP, completion of prescribed training or treatment, and passing a return-to-duty (RTD) screen. Additional follow-up testing may also be required. The RTD information is retained in your Clearinghouse file for five years or until you complete all follow-up testing. You can find more information about the Clearinghouse, including a Frequently Asked Questions (FAQ) section, at clearinghouse.fmcsa.dot.gov.

LAREDO, Texas — CFI Logistics and CFI Mexico are expanding into a new facility in Laredo, Texas, building on 36 years of operations in Mexico, providing expedited cross-border as well as in-country Mexico logistics and transportation services. The new office will serve as the sales, operations and administrative center for CFI Logistics services in and out of Mexico. The location is a shared facility with CFI Mexico, a service comprised of both CFI Logistica and CFI de Mexico, headquartered in the Guadalajara World Trade Center. “A majority of our customers have investments in business operations in the U.S. and Mexico, and they’re growing,” said Greg Orr, CFI president. “With our current and projected growth, and that of our customers seeking more services, it made sense to establish one convenient, central office for our principal U.S. and Mexico logistics management and operations teams to optimize communications, operations planning and customer service.” CFI Logistics is affiliated with U.S. truckload carrier CFI, an operating company of TFI International Inc. CFI Mexico is a service of CFI. CFI has 12 facilities in Mexico providing a wide range of in-country and cross-border logistics and freight transportation services. These include truckload and less-than-truckload (LTL) services, truckload and intermodal freight brokerage, warehousing, inventory management, fulfillment, and supply chain planning and engineering. “By establishing a more seamless and integrated operation we can do a better job of being flexible, agile and precise in responding to shipper needs, and in providing our carrier partners with consistent quality freight,” Orr said. A North American transportation solutions provider, these CFI affiliated services are also co-located in U.S and Canada with CFI’s truckload service centers and the company’s Joplin, Missouri, headquarters, according to Orr. CFI Mexico and CFI Logistics employ close to 200 associates. “At the end of the day, products still move in and out of warehouses, orders need to be fulfilled, transportation arranged, and trucks loaded,” he said. “We still need to manage the process, and have workers on site, protected with proper PPE and following all safety protocols. Doing this as efficiently as possible and meeting customer service needs is the imperative, but employee safety and health comes first.” Orr added that CFI Logistics has long-held relationships with truck lines in Mexico and the U.S, which are an increasing need as trucking capacity continues to tighten. While many employees currently work from home, the larger centralized office will accommodate anticipated workforce levels once pandemic restrictions are lifted and accommodate longer-term growth needs. CFI contracts with more than 80 C-TPAT certified carriers. In 2020, CFI Mexico handled more than 90,000 cross-border shipments with Mexico with an additional 19,500 LTL shipments within Mexico, serving some of North America’s commercial, industrial, manufacturing and retail businesses.  

During Black History Month, Trucking Moves America Forward (TMAF) is recognizing the achievements of professional truck drivers for their modern-day successes in the trucking industry. Jeff Greer, senior vice president of human resources for Memphis, Tennessee-based FedEx Freight Corp., is recognized as one of this year’s Black History Month leaders who are helping to move America forward every day. Greer is responsible for all human resources and safety functions at FedEx Freight, which employs 45,000 team members across the U.S., Canada and Mexico. An attorney by trade, Greer first started working for the FedEx organization more than 21 years ago and has since transitioned from law to his current role in human resources. Prior to joining FedEx, Greer worked for the Department of Defense’s Defense Logistics Agency. He refers to the career change as a “natural evolution” for him, adding that his work for the government was the “precursor to my interest in everything in logistics.” Greer said he enjoys working for the trucking industry. “Trucking touches almost every aspect of American life,” he noted. “We know that every single day we are making a difference … It’s nice to be part of a function that has such a vast impact.” When discussing diversity in trucking, Greer, who is a member of working groups on diversity in the trucking industry, said that diversity — the concept of having different people from different backgrounds — adds elements of success to any industry. “Diversity has got to be a key component of how we move forward in the trucking industry. We have got to make sure we are as diverse as the rest of America: that we mirror society as a whole,” he stated.

During Black History Month, Trucking Moves America Forward (TMAF) is recognizing the achievements of professional truck drivers for their modern-day successes in the trucking industry. LaQuenta Jacobs, chief diversity officer for XPO Logistics Inc., is recognized as one of this year’s Black History Month leaders who are helping to move America forward every day. Jacobs first joined XPO Logistics in 2018 as the head of human resources. Last year, the company appointed her as its first chief diversity officer. In this new role, she is responsible for helping her organization drive diversity, equity, and inclusion (DE&I). During her 23-year career, Jacobs has championed inclusivity while serving in senior human-resources roles with well-known companies such as Delta Air Lines Inc., The Home Depot Inc., Turner Broadcasting System Inc. and Georgia-Pacific. Jacobs describes herself as “solutions-driven” by nature. She said she enjoys working in the transportation industry because she likes “the solutions that we drive to our customers, shareholders and people in general.” “Transportation connects people, goods and communities,” Jacobs noted when discussing the industry. “I have found a unique connection between DE&I and the trucking industry,” she said. “In my opinion, the two share the same goals, which is the connection of people to resources. Logistics and supply chain are the vehicles that connect people to goods and services in the same way that diversity, equity and inclusion connect people to a company culture; they go hand in hand.” To learn more about Jacobs and what DE&I truly means for a company, check out this story from Truckload Authority.