Business Archives

Black History Month leaders: LaQuenta Jacobs champions inclusivity in transportation industry

The Trucker News Staff - February 19, 2021

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.

Daimler Trucks North America picks O’Leary to succeed Nielsen as president and CEO

The Trucker News Staff - February 16, 2021

PORTLAND, Ore., and STUTTGART, Germany — The board of management of Daimler Truck AG has appointed John O’Leary, 60, as the next president and CEO of Daimler Trucks North America (DTNA), effective April 1, 2021, the company announced Feb. 16. DTNA brands include Freightliner Trucks, Western Star Trucks, Thomas Built Buses, Freightliner Custom Chassis Corp. and Detroit Diesel Corp. According to a prepared company statement, O’Leary started at DTNA with Freightliner in 2000. After establishing internal transformation-processes, he led the U.S. school bus business as president and CEO of Thomas Built Buses. In 2010, O´Leary became the senior vice president for the company’s aftermarket business before becoming CFO of DTNA in 2012, serving under then-president Martin Daum (2009-2017) and Roger Nielsen (2017 to 2020). Since September 2020, O’Leary has served as chief transformation officer for Mercedes-Benz Trucks in Germany. In this role, he also led the Mercedes-Benz Truck organization until Karin Radström took over the position in February 2021. “John O’Leary has more than 20 years of experience at DTNA and knows the North American commercial vehicle business like no other,” said Martin Daum, president and CEO of Daimler Truck AG and member of the board of management for Daimler AG. “As CFO of DTNA, and lately as chief transformation officer of Mercedes-Benz Trucks, he has proven that his experience and knowledge make him just the right person to successfully lead DTNA into the future.” O’Leary follows DTNA’s Roger Nielsen, 60, who will retire April 30, 2021, after 35 years in the company, the last four years as its president and CEO. Under Nielsen’s leadership, DTNA started several customer trials with the Freightliner eCascadia and eM2 and launched the Thomas Built Buses Jouley school bus to pave the way to CO2-neutral transport at DTNA. In addition, Nielsen renewed the Western Star product lineup and the vocational truck business and made DTNA the most successful truck OEM in the U.S. “I would like to extend my heartfelt gratitude to Roger Nielsen for his dedication to the success of DTNA and his successful positioning of our brands Freightliner, Western Star and Thomas Built Buses,” Daum said. “Besides his passion for our business and unprecedented customer orientation, he is the embodiment of responsible people leadership.”

Black History Month leaders: Brandon Bibbs works to promote inclusion in trucking industry leadership

The Trucker News Staff - February 15, 2021

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. Brandon Bibbs, regional vice president of sales for Chicago-based U.S. Xpress Inc., is recognized as one of this year’s Black History Month Leaders who are helping to move America forward every day. Bibbs is also a member of the American Trucking Associations’ current LEAD ATA class. While working at Hellmann Worldwide Logistics in 2015, Bibbs was introduced to the world of trucking through a development program. He says he has not looked back since. Following his passion, he went on to work for Schneider; then he joined the U.S. Xpress team almost a year ago. “When I heard that U.S Xpress was not only a trucking company but a digital and tech organization, as a millennial, that mattered to me,” he said, adding that his favorite part of the trucking industry is all of the moving parts. “I am a communicator,” he said, “I enjoy cross-department collaboration, knowing we have the common goal of bringing a positive impact on so many people.” Brandon is a member of the Diversity and Inclusion Council at U.S. Xpress, where he is able to work with a group to bring positive change to his company and the industry. He is dedicated to changing the narrative within the HBCU (historically Black colleges and universities) community by speaking to classes to enlighten students about the career opportunities the trucking industry has to offer. It is Bibb’s mission to continue to bring awareness of inclusion in leadership among the trucking industry. He is an inspiration to many within trucking, from drivers, to other leaders. “I want to be a resource,” he said. “I have had many drivers call me to let me know they appreciate my presence and leadership. It made them feel like they have a voice.”

Spot rates regain footing after slippery weeks in January, DAT says

The Trucker News Staff - February 11, 2021

BEAVERTON, Ore. — National average spot truckload van and refrigerated rates were virtually unchanged during the week ending Feb. 7, a sign of price stability after January’s declines, according to DAT Freight & Analytics, which operates the industry’s largest load board network. During the first week of February, average van rates were $2.29 per mile, with flatbed coming in at $2.47 per mile and refrigerated at $2.55 per mile (including a calculated fuel surcharge). DAT analysts point to the following trendlines for 2021 thus far. Van demand pulls up Dry van load post volumes increased 7% and the number of posted trucks was virtually unchanged the first week of February, compared to the previous week. The average van load-to-truck ratio was 4.5, up from 4.3 the previous week and 3.2 the week before. The average rate was higher on 58 of DAT’s top 100 van lanes by volume last week. Port market volatility Port markets across the country have experienced huge swings in demand for trucks recently. Volumes in Elizabeth, New Jersey, increased 7% compared to the previous week, and the average outbound rate rose 3 cents to $1.90 per mile. On the West Coast, outbound load volume from Los Angeles dropped 14% week over week; in Ontario, the decline was 8%. Tighter capacity in both markets lifted the average outbound rate by 2 cents to $2.35 a mile and $2.43 a mile, respectively. Temperature-controlled trailer demand The number of spot reefer load posts on the DAT network increased 13% last week with very little change in the number of trucks posted. The national average reefer load-to-truck ratio edged higher from 8.6 to 9.9 as a result. One driver of reefer demand is that shippers needed temperature-controlled trailers to keep loads from freezing as cold winter weather hit much of the country last week. The number of loads moved on DAT’s top 72 reefer lanes by volume was up 1.8% compared to the previous week. The average spot reefer rate was higher on 19 of those lanes, lower on 39 and neutral on 14. Spring harvests It’s peak season for winter strawberries in Florida. In 2020, growers shipped 76% of their annual volume between Jan. 25 and March 28 at an average of 72 truckloads per day, according to the U.S. Department of Agriculture. Last year, Valentine’s Day was the busiest shipping day of the year for winter strawberries. Flatbed demand rises Flatbed load and equipment posts each increased 2% last week, leaving the national average flatbed load-to-truck ratio virtually unchanged at 52.8. Load post volumes in DAT’s top 10 flatbed markets increased by just under 1% compared to the previous week. However, the number of loads moved on the top 78 flatbed lanes was up 13.2%, and the average spot rate was higher or neutral on 59 of those lanes. Residential construction is helping. The U.S. Census Bureau reported a 1% increase in construction spending during the month of December compared to November, but that doesn’t tell the whole story. Residential activity was up 3% month over month while nonresidential construction spending declined 1.7%. Contract rate dynamics Contract freight represents about 85% of all truckload freight hauled. Changes in contract rates typically lag behind spot rates by four to six months, and the extent to which contract rates rise is driven by how long spot rates are at elevated levels. Shippers put out a lot of RFPs (request for proposal) late in the third quarter and throughout the fourth quarter last year when spot rates were at record highs. Those 2021 contract rates are now making their way into routing guides — the rates that carriers bid on certain lanes and how much capacity they commit to provide throughout the year. Higher contract rates will mean lower spot market rates over time, and high diesel prices can erode margins further. It’s still a good pricing environment for truckers, but the price of fuel and the gap between contract and spot rates bear watching. National average rates are derived from DAT RateView.

YRC Worldwide returns to roots as Yellow Corp.; LTL brands retain existing names

The Trucker News Staff - February 9, 2021

OVERLAND PARK, Kan. — YRC Worldwide Inc. has changed its name to Yellow Corp., a nod to the company’s origins as Yellow Transit, and will be traded under the NASDAQ ticker symbol YELL. The announcement was made Feb. 4 in conjunction with the company’s fourth-quarter 2020 report. The company’s less-than truckload brands — which include YRC Freight, Holland, New Penn, Reddaway and HNRY Logistics — will continue to operate under their existing names. “As we continue our transformation into a super-regional, LTL freight carrier, it is the right time to reintroduce the Yellow Corp. name and modernize the holding company brand,” said Darren Hawkins, CEO of Yellow Corp. “Once we announced our plans to rebrand, our customers and employees shared their excitement. The Yellow brand is synonymous with the LTL industry and we are honored to continue its proud legacy of service with one of the largest, most comprehensive logistics and LTL networks in North America,” he continued. “Migrating to one Yellow technology platform and creating one Yellow network are the key enablers of our enterprise transformation strategy, which is to provide a superior customer experience under one Yellow brand.” According to the company’s fourth-quarter report, Yellow Corp. had an operating revenue of $1.165 billion, up from $1.160 billion during the fourth quarter of 2019, and an operating income of $13.7 million — a marked jump from $9.8 million in 2019. Operating revenue for full year 2020 was $4.514 billion and operating income was $56.5 million, which included a $45.3 million net gain on property disposals. This compares to full year 2019 operating revenue of $4.871 billion and operating income of $16.2 million, which included a $13.7 million net gain on property disposals and $8.2 million for a non-cash impairment charge related to the write-down of an intangible asset. Yellow Corp.’s net loss for the fourth quarter 2020 was $18.7 million (37 cents per share) compared to net loss of $15.3 million (46 cents per share) in the fourth quarter of 2019. Full year net loss for 2020 was $53.5 million ($1.28 per share), compared to a full year net loss in 2019 of $104 million ($3.13 per share), which included a $11.2 million loss on extinguishment of debt associated with a refinancing of the company’s term loan agreement. “During the fourth quarter volume and pricing continued to improve in a tighter capacity environment. As the industrial and retail segments of the economy rebound a shortage of drivers is keeping a lid on LTL capacity. Overall, the industry is stable and well positioned for a strong 2021,” Hawkins said. “During a challenging and unprecedented 2020, our nearly 30,000 employees persevered, continuing their essential service for our customers and the communities we serve with a proud sense of patriotism. They are heroes and their dedication and commitment are greatly appreciated. I have never been prouder of our team,” he concluded.

Knight-Swift takes majority stake in software provider Eleos

The Trucker News Staff - February 8, 2021

PHOENIX — Knight-Swift Transportation Holdings Inc. last week announced it has acquired a majority ownership position in Eleos, a Greenville, South Carolina-based software provider. Eleos offers an independent, programmable mobile driver workflow platform for trucking fleets and drivers. This platform, which integrates with a variety of telematics, fleet management, and dispatch systems, is used by numerous North American fleets, including Knight-Swift. “The Eleos team and their software platform have been invaluable in creating a driver digital experience that enables safety, productivity, and low driver turnover. We especially appreciate the data privacy Eleos assures each customer, and such privacy will continue for each individual customer in the future,” said Dave Jackson, CEO of Knight-Swift. “This transaction is built on the strong foundation of trust and respect that Eleos has long held for the Knight-Swift leadership team; a team that, in my view, possesses a powerful combination of business skill and integrity,” added Kevin Survance, CEO of Eleos. “Now, backed by the strength of Knight-Swift, Eleos is well-equipped to achieve the goal of being the most trusted platform for mobile driver workflow in the transportation industry. I can say with complete sincerity that we are humbled and honored to join the Knight-Swift family of companies.”

Both freight rates and volumes ended the year strong but could falter if the economy does

Cliff Abbott - February 5, 2021

Freight numbers rose in December as rates continued their upward climb. The American Trucking Associations (ATA) For-Hire Truck Tonnage Index rose 7.4% in December following a 3.2% increase in November. The index came in at 120 for the month, meaning reported freight volumes in December were 20% higher than they were in the baseline year of 2015. After a similar gain in September, the index fell in October before rallying for the final two months of the year. “Tonnage ended last year on a high note,” said Bob Costello, chief economist for ATA. “The index not only registered the largest monthly gain since June, but it also had the first year-over-year increase since March.” The index was 2.3% higher than in December 2019. The year-over-year comparison, however, wasn’t as positive. For all of 2020, the index was 3.3% lower than the full year 2019. Considering the dismal second quarter of 2020, a 3.3% decline is smaller than most of the analysts predicted. “Because of the pandemic, 2020 was obviously a very challenging year for the economy overall, and that is reflecting in the tonnage index’s dip from the previous year,” Costello said. “Despite that, truck tonnage clearly outperformed the broader economy as freight continued to move in the face of a myriad of COVID-related challenges faced by the country.” Costello noted that consumer consumption, inventory restocking by retailers and single-family home construction helped keep shipment volumes high. He also credited the recent stimulus checks and the possibility of another payout for helping keep freight levels high during December and into 2021. ACT Research also publishes For-Hire Trucking Indexes that measure both volume and freight rates reported in surveys of their customers. Index scores above 50 indicate the market grew, while scores below 50 show a contracting market. ACT’s Volume Index came in at 55.5 in December, down from 60.4 in November. In the prior six months, the index averaged 67.4, so freight volumes, though slowing, were positive for a total of eight consecutive months. On the rate side, the Pricing Index for December was 64.2, down 3.6 points from November but still well into positive territory. Lack of capacity continued to buoy rates, although the rate has been slowing for three months now. The ACT report credits driver hiring and pay increases with helping the industry seat more trucks, creating more capacity and slowing rate increases. The release notes, however, that additional rounds of stimulus and increased unemployment benefits could reduce the number of available drivers, tightening capacity and pushing rates upward again. ACT also issues a Driver Availability Index, which reached its lowest point ever in December at 28.1. It was the sixth consecutive month of deteriorating driver availability. Rising driver pay and vaccinations may help alleviate the shortage of drivers in 2021, but likely will not be enough. Cass Information Systems publishes an index too, and like ACT, the breakouts report by volume, rates and other factors. A key difference is that the Cass Freight Index incorporates shipments from different modes of transportation, including rail, ship, barge, air and even pipeline. In December, the Cass Freight Index for shipments was 1.12, 6.7% better than December 2019 and 1.1% better than November on a seasonally adjusted basis. Cass also measures freight rates calculated by customer spending and shipping volumes. In December, rates grew faster, 6.0% better than in December 2019. November numbers also bested last year’s November, by 3.0% Economists at ACT Research, a partner of Cass Information, are predicting a 3.9% growth in GDP for 2021. Spot rates, which had reached record levels in preceding months, remained high in December, according to DAT Trendlines. Van rates averaged $2.46 per mile for the month, while refrigerated rates fell by three cents to $2.67. Flatbed rates averaged $2.48 on DAT load boards. Rates for all three categories fell off towards the end of the month as shipping slowed for the holidays. As the pandemic winds down, both rates and volumes are expected to remain strong at least through the first half of 2021. Consumers are still ordering and buying products, keeping sales high and merchandise moving. The Census Bureau reported fourth-quarter GDP at 4.0%, ending 2020 on a strong note. Durable spending, however, declined in both November and December, but another round of stimulus checks may have added a bounce to begin the new year. At the time of this writing, the Biden administration has proposed a third round of payments, with Biden saying he wants to move quickly on $1,400 checks to individuals. His proposal includes more money for supplemental unemployment compensation and other benefits to the public. Republicans have proposed a less expensive round of benefits, but the Democrats in Congress have made clear their intention to move quickly, with or without bipartisan support. A major issue that will certainly impact market recovery is the speed with which vaccinations against COVID-19 can be distributed and administered. The manufacturing and service industries are expected to begin recovery as soon as enough people can get back to work — but that has to happen before yet another round of stimulus is needed to keep the economy going. Vaccinations will impact driver numbers, too. As CDL schools reopen or expand to pre-COVID capacity, there should be more new drivers coming into the industry. At the same time, increases in driver compensation may slow the rate drivers are leaving. As it stands, conditions are good for truckers to make money, at least for the first six months of 2021. Those conditions, however, are fragile and could rapidly change if the economy falters or there is a resurgence of COVID-19 cases.

Daimler to split truck segment into separate company, focus on zero emissions

The Trucker News Staff - February 3, 2021

STUTTGART, Germany — Daimler on Feb. 3 announced plans to split its passenger car and commercial truck/bus segments into two independent “pure-play” companies. An announcement from Daimler calls the split a “fundamental change” in the company’s structure, adding that the division will “unlock the full potential of its businesses in a zero-emissions, software-driven future.” A significant majority stake in Daimler Truck will be distributed to Daimler shareholders. The truck business will operate under fully independent management and have stand-alone corporate governance including an independent chairman of the supervisory board, and is targeted to qualify as a DAX company. The passenger-car segment will be renamed as Mercedes-Benz “at the appropriate time,” the announcement notes. “This is a historic moment for Daimler. It represents the start of a profound reshaping of the company. Mercedes-Benz Cars & Vans and Daimler Trucks & Buses are different businesses with specific customer groups, technology paths and capital needs,” said Ola Källenius, chairman of the board of management of Daimler and Mercedes-Benz. “Daimler Truck supplies industry-leading transportation solutions and services to customers,” Källenius noted, adding that both the car and commercial truck industries are on the brink of “major” changes. “Given this context, we believe they will be able to operate most effectively as independent entities, equipped with strong net liquidity and free from the constraints of a conglomerate structure,” said. As part of a more focused corporate structure, both Daimler Truck and Mercedes-Benz will also be supported by dedicated captive financial and mobility service entities, driving sales with tailor-made financing, leasing and mobility solutions. In this process, the company plans to assign resources and teams from today’s Daimler Mobility to both Daimler Truck and Mercedes-Benz. “We have confidence in the financial and operational strength of our two vehicle divisions. And we are convinced that independent management and governance will allow them to operate even faster, invest more ambitiously, target growth and cooperation, and thus be significantly more agile and competitive,” Källenius said. According to the company’s Feb. 3 statement, Daimler Truck intends to generate value for its shareholders by accelerating the execution of its strategic plans, raising its profitability and driving forward with the development of emissions-free technologies for trucks and buses. “This is a pivotal moment for Daimler Truck. With independence comes greater opportunity, greater visibility and transparency,” said Martin Daum, member of the board of management of Daimler and chairman of the board of management of Daimler Truck. “We will grow further and continue our leadership in alternative powertrains and automation. We have already defined the future of our business with battery-electric and fuel-cell trucks, as well as strong positions in autonomous driving. With targeted partnerships we will accelerate the development of key technologies to bring best-in-class products to our customers rapidly.” Daum also stated that Daimler truck has a solid financial base and a “robust” business model. “We will continue to work on our cash-flow management, and we know how to deal with industry market cycles — we have proven that again in the significant COVID-related global market reduction,” he continued. “We have clear strategies to raise our financial performance and accelerate our execution. We will use our strong and well-known global brands, our scale and our exceptional technology to deliver industry-leading returns.” The intended structure of the transaction would involve Daimler transferring the majority of Daimler Truck to its shareholders on a pro rata basis in accordance with existing shareholdings, but it intends to retain a minority shareholding. Representation of Daimler in the Daimler Truck Supervisory Board will be in line with the intended deconsolidation, according to Daimler’s Feb. 3 statement. Further details of the intended spin-off are expected be presented to company shareholders at an extra-ordinary shareholder meeting during the third quarter of 2021, to obtain their mandatory approval to the plan. A company presentation of the restructuring plan is available here.

A tax advisor can help you navigate confusing laws

Cliff Abbott - February 2, 2021

As if 2020 didn’t bring enough problems, your tax bill for the year could be impacted. Consulting a professional tax preparer between now and April 15 — one that is familiar with trucking — is a good idea. Whether you operate your own trucking business or drive for someone else, your tax liability could be different this year. Since many drivers suffered a reduction in income for 2020, a tax surprise when filing could be devastating. First, the good news. Any economic impact payments you received aren’t taxable unless your total income was more than $75,000 (single) or $150,000 (married). That includes both the $1,200 per person payments sent out in April and the second payment of $600 that was distributed in late December. The amounts will be listed as both income and a tax credit on your tax return. There’s more good news for those who pay the 15.3% Self-Employment tax. Under the CARES Act, up to 50% of the amount earned between March 27 and Dec. 31 can be deferred. Because so many people worked from home during the pandemic, you may also be able to claim a deduction for using a part of your residence for work. Be careful, however, if your work and your residence are in different states. It’s possible you worked at a different location enough days for a second state to claim you as a resident. Your tax professional can help you sort it out. Many people were helped by the $600 per week supplement to unemployment compensation included in the CARES Act (Coronavirus Aid, Relief and Economic Security). The supplement, along with the state’s normal unemployment amount, is taxable on federal returns and on most state returns. Under legislation signed by former president Donald Trump on Dec. 27, a second round of Paycheck Protection Program loans will soon be available for businesses with less than 300 employees, sole proprietorships and self-employed individuals. Since President Joe Biden was inaugurated Jan. 20, more relief related to the pandemic may be in the works. A tax professional can help you take advantage of any new breaks or benefits. Even though 2020 has ended, there’s still time to help your tax preparer and yourself. Make sure you’ve gathered receipts for all your expenses. Keep in mind that some of those receipts won’t of the paper variety received from stores and fuel stops. If, for example, you have a separate meter for electricity used in your shop or you pay for a dedicated phone line for your business, you’ll need evidence of those expenses. Vendors you’ve bought from online often save the invoices indefinitely, so you may be able to retrieve any you’ve misplaced. Credit card bills are often available for a year or more and can be accessed online. Even a review of your checkbook register, whether paper or online, could help you identify tax-deductible expenses. Another review that could be important is your records-of-duty status. This can mean poring through a year’s worth of log books or reviewing printouts from an ELD. The IRS allows a deduction of up to 80% of the cost for meals and incidentals. There’s a standard deduction that can be used instead of actual expenses, but you’ll need proof that you were on the road for each day you claim. Those meal deductions will be even more important in 2021, since the December stimulus bill increased the deduction percentage from 80% to 100% for truckers. A large deduction that can confuse owners is depreciation of equipment. The value of your truck is spread out over its perceived useful life. Once the depreciation is written off, it can’t be claimed again. If your income suffered substantially last year, it might be possible to defer the depreciation deduction until 2021. Your tax professional can help you determine what options are available. It’s not too late to make important business decisions for 2021. As the pandemic winds down, lower fuel prices caused by lowered demand will undoubtedly end. Environmental policies enacted by the Biden administration could drive prices upward. The time may be right to invest in aerodynamic treatments for truck or trailer, or in other equipment needs. Finally, if you don’t have a tax advisor who is knowledgeable about the unique circumstances of trucking, it’s a good time to find one. You might easily find someone that can complete tax forms, but you should be confident that your advisor is taking advantage of every opportunity to save you money on the taxes you pay this year while helping you prepare for the next. Editor’s note: The advice offered in this article is not that of an accountant or tax attorney. The intent of this article is to offer helpful tips — not apply tax law and accounting processes to every situation.

2020 ‘one-quarter’ bad for heavy-duty truck market, says ACT

The Trucker News Staff - February 1, 2021

COLUMBUS, Ind. — According to ACT Research’s recently released Transportation Digest, 2020 wasn’t all bad for truck transportation and the heavy-duty market. It wasn’t even half bad. It was one-quarter bad — namely, the second quarter, from April to June. “The shock and magnitude of the second quarter economic decline was without precedent in post-World War II history, forcing a reach to the Great Depression for parallels,” said Kenny Vieth, president and senior analyst for ACT. “But the remarkable rebound of the economy and in truck freight began in the summer and gained momentum into autumn. Even during the worst of the trough in April and May, we forecast a second half rebound.” ACT’s Transportation Digest combines proprietary ACT data and analysis from a variety of sources to paint a comprehensive picture of trends impacting transportation and commercial vehicle markets. The monthly report provides a quick look at transportation insights for use by fleet and trucking executives, reviewing top-level considerations such as for-hire indices, freight, heavy- and medium-duty segments, the U.S. trailer market, used truck sales information, and an overview of the U.S. macro economy. “The direction of the second half (of 2020) was correctly called. But the slope of the recovery’s path, and the speed and strength of the freight rebound (and the associated skyrocketing of freight rates), caught us off guard,” Vieth said. “The lessons we learned from underestimating the market snapback are important in the formation of our current view,” he continued. “Some of the impacting factors in the second half of 2020 included the capacity squeeze, the goods-for-services substitution, expanded migration to e-commerce, low fuel prices and a housing boom, just to name a few.”

Spot van rates, volumes continue month-long slide, DAT report shows

The Trucker News Staff - January 28, 2021

BEAVERTON, Ore. — The number of available loads on the spot truckload freight market continued to slide during the week ending Jan. 24, according to DAT Freight & Analytics, which operates the industry’s largest load board network and freight data analytics service. Van prices declined on most major trucking lanes. The national average spot rate for van and refrigerated freight is now lower than the average contract rate as price increases negotiated between carriers and shippers late last year come online and spot rates dip seasonally. The difference between spot and contract van rates was as high as 14 cents a mile in September; for reefer freight, the gap hit 20 cents a mile in November around Thanksgiving. While spot rates are strong relative to past years, higher contract pricing tends to draw capacity out of the spot market. National average spot rates for Jan. 1-24, based on actual transactions negotiated between carriers and brokers or shippers were: Van: $2.40 per mile, 6 cents lower than the December average; Flatbed: $2.48 per mile, 1 cent higher than December; and Refrigerated: $2.64 per mile, 4 cents lower than December. Trendlines Fuel prices keep climbing: The average price of on-highway diesel was $2.37 per gallon to start November, the low point for the year; last week, the price averaged nearly $2.71 a gallon. Van volume dips: Dry van load-post volume fell 12% compared to the previous week as seasonality started to set in. Less than 1% more trucks were posted, pushing the van load-to-truck ratio down from 3.6 to 3.2. While the number of loads moved on DAT’s top 100 van lanes by volume declined by 0.7% compared to the previous week, the average spot truckload rate fell on 93 of those 100 lanes. The rate increased on just one lane and was neutral on six. On DAT’s top 10 markets, dry van load post volumes dropped by 10% last week; spot rates fell an average of 11 cents a mile in these markets. California correction: DAT analysts are seeing a major correction underway as spot market volumes in Southern California markets return to pre-pandemic levels. Los Angeles averaged $2.80 a mile last week, down 18 cents compared to the previous week and 31 cents lower since the first week of the year. Key lanes last week were: Los Angeles to Chicago: $2.23 a mile, down 48 cents since the beginning of January. Los Angeles to Dallas: $2.50 a mile, down 43 cents. Los Angeles to Atlanta: $2.31 a mile, down 48 cents. Reefers slow: Nationally, the average reefer load-to-truck ratio dropped from 6.5 to 5.9 last week as the number of load posts fell 11% with very little change in truck posts. The number of loads moved on DAT’s top 72 reefer lanes by volume increased 10% week over week, although the average rate was lower on 67 of those lanes. Load post volumes dropped in most of the top 10 markets, however. Domestic produce shipment fall: According to the U.S. Dept. of Agriculture, domestic truckloads of produce were down 37% year over year for the week ending Jan. 16, but up 13% year over year for imported truckloads. The decrease in domestic volumes is significant and driven by persistent, devastating conditions in the food-service business. At $659 billion, restaurant and food-service industry sales were 27% below expectations and more than 110,000 eating and drinking places closed for business temporarily, or for good, in 2020, according to the National Restaurant Association. Florida volumes pick up: In Florida, winter produce volumes are providing backhaul opportunities for carriers that ventured into the Miami and Lakeland markets where volumes increased by 19% and 23%, respectively, compared to the previous week. Higher volumes and outbound rates in Savannah, Jacksonville, and Tifton were incentives for carriers to stay in southern Georgia, keeping capacity tighter for outbound Florida loads.

How 2020 changed the job outlook from the driver’s seat

Cliff Abbott - January 28, 2021

Anyone who’s followed the trucking industry knows that carriers who complain about a driver shortage are often regarded with the same disdain as the boy who cried “wolf.” It’s been suggested by many that more pay and better working conditions might attract enough new drivers to the industry to alleviate any perceived shortage. This year, however, is different — and that could be good news for drivers everywhere. When a handful of COVID-19 cases exploded into a pandemic in the U.S. back in March and April 2020, freight levels dwindled as manufacturing plants shut down or severely restricted output. Imports plummeted as factories in other countries did the same. Many carriers reduced their driving staff with furloughs or layoffs. By May, things started picking up. But a funny thing happened with those out-of-work drivers. They didn’t come back. Some of them who were nearing the end of their trucking careers simply retired. Those who intended to return to trucking were given an incentive to delay their return by the U.S. Congress: A $600 per week supplement to unemployment compensation was included in a stimulus package passed near the end of March. The government helped other drivers stay home in a different way. In January, before the onset of the pandemic, the Federal Motor Carrier Safety Administration’s Drug and Alcohol Clearinghouse went into effect. The intent of the Clearinghouse is to consolidate drug and alcohol testing information so it’s more readily available to carriers who are considering a driver hire when compared to the older process of contacting each of a driver’s past employers and hoping for an answer. An added benefit of the Clearinghouse is that drivers who test positive or refuse to test can’t return to work without complying with the terms of a return-to-duty program monitored by a substance-abuse professional. To the surprise of many, a huge percentage of drivers who have tested positive in the Clearinghouse have chosen to simply leave the trucking industry rather than undergo a treatment program. And, with many states legalizing the sale and use of marijuana — the substance responsible for the largest number of positive tests — the problem won’t go away any time soon. For 2020, the Clearinghouse reported 51,998 drivers with at least one violation (positive, refusal, etc.). Of those, 34,769 (nearly 67%) did not even attempt the return-to-work process. Add in the number of those who started but did not complete the process, and the total of drivers lost to drug and alcohol testing in 2020 climbs to 45,475 (87.5%) of all drivers with violations. As the industry was losing drivers last year, the pipeline that creates new drivers for the industry slowed to a trickle. CDL schools nationwide either shut down entirely or reduced enrollment in response to the COVID-19 pandemic. New drivers who found a school to attend found that many states had closed down driver-testing facilities, causing huge delays in issuing new commercial driver’s licenses (CDLs). As the number of drivers available to hire continues to shrink, some drivers who are staying in trucking still impact the driver shortage by moving to different types of jobs. As the economy rebounded from its April low point, freight levels have grown faster than available trucks, pushing freight rates to record levels. Drivers who want to own their own trucks find these higher rates attractive. Until 2020, monthly registrations for new authority (government permission to operate a trucking company) only reached 4,000 a few times. According to DOT statistics, registrations topped 5,000 for six consecutive months as truckers opted to strike out on their own. (Note: Drivers who become owner-operators don’t necessarily leave the industry, but they exacerbate the driver shortage because they are no longer available for carriers to hire to fill their own trucks.) COVID-19 has caused another change to trucking: The pandemic has resulted in many people staying home, and those people are purchasing goods like never before. According to the Bureau of Labor Statistics, the number of parcel and local delivery jobs grew by more than 8% in 2020. Some drivers took advantage, exchanging over-the-road positions for jobs that paid well and allowed them to be home every night. While a driver shortage is a huge concern for carriers that are trying to keep a fleet of expensive trucks rolling, it can actually be a boon to drivers. Many carriers turn to pay increases to attract and retain drivers, while others implement large sign-on bonuses. Some offer expanded vacation options, better equipment or other perks. All of these, and more, are expected in 2021 as competition intensifies for qualified drivers. Figuratively and literally, that puts trucking professionals right where they belong — in the driver’s seat.

US Xpress makes ‘significant’ financial investment in autonomous trucking

The Trucker News Staff - January 27, 2021

CHATTANOOGA, Tenn. — U.S. Xpress Enterprises Inc. announced last week that the company has made a “significant” financial investment in TuSimple, a self-driving technology company working to market an autonomous solution for long-haul freight transportation. In addition, Eric Fuller, president and CEO of U.S. Xpress, has joined TuSimple’s Executive Advisory Board. “We’re passionate about finding innovative solutions to industry challenges, and investing now will give us a clear advantage when this technology matures in the years to come,” Fuller said. “Additionally, the Executive Advisory Board is bringing together market-specific insight from across the industry to help drive the development and adoption of this important technology.” U.S. Xpress has been working with TuSimple since 2019 and recently began testing the autonomous technology on select shipping lanes for some of its major customers. From this testing, TuSimple can gather information and benchmark safety and efficiency standards that will help bring the technology to market safely and reliably. “U.S. Xpress has been a valuable partner in the testing of our autonomous technology and Eric will continue to provide expert guidance in helping drive the adoption of autonomous trucks as a member of our Executive Advisory Board,” said Cheng Lu, CEO of TuSimple. Although the industry will always have a need for professional drivers, shortages caused by reduced CDL school graduates and the Drug & Alcohol Clearinghouse is impacting the industry in both the near- and long-term, according to U.S. Xpress’s most recent economic forecast. Last year, U.S. Xpress introduced its tech-enabled fleet, Variant, and in coming months, will be rolling out a new brokerage offering. “U.S. Xpress remains focused on transforming from a traditional trucking company to a true digital transportation solutions provider and this TuSimple partnership is another example of the company’s innovation,” according to a prepared statement from the company.

Epes Transport celebrates nearly a century in trucking

The Trucker News Staff - January 26, 2021

GREENSBORO, N.C. — Epes Transport System LLC, the largest private truckload van carrier based in North Carolina, is celebrating its 90th anniversary this year. During nearly a century in business, Epes has overcome many challenges and continues to grow. The company attributes its success and longevity to the hard work, dedication and experience of its employees, as well as to its customer base. “The culture at Epes is a function of its people. Whether it’s Year 1, Truck 1, or Year 90, Truck 1,600, the people make Epes Transport special,” said Phil Peck, COO of Epes. “What has never wavered or been lost during good times of growth, or challenging times in the industry, is the trust, honesty and transparency that each person shows to their fellow Epes associate. At every level of the organization, and with every opportunity, we lean on each other, we count on each other, and we invest in each other.” Epes Transport was founded in 1931 in Blackstone, Virginia, as a tobacco hauler with three trucks. Originally known as The Transport Co., it began as a family-owned business and continued that way for more than 55 years. In 1987, the company was by Epes Carriers Inc. in Greensboro, North Carolina; then, in 2018, Penske Logistics, based in Reading, Pa., acquired Epes Transport System. Today, Epes operates more than 1,550 tractors and more than 7,100 trailers. The company has been noted on the lists of Top Workplaces, Best Fleets to Drive For, Most Valuable Employer Military Winner, and Top Companies for Women to Work for in Transportation, among many others. According to a company statement, over the next 90 years, Epes will continue to build relationships with its associates, its communities and the industry at large. The company pledges to remain dedicated to delivering outstanding results, striving for excellence in providing transportation solutions for its customers, and maintaining the highest standard of safety and business ethics.

ATA’s truck tonnage index sees solid gains at year’s end, but 2020 totals still lag behind 2019

The Trucker News Staff - January 26, 2021

ARLINGTON, Va. — American Trucking Associations’ (ATA) advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index jumped 7.4% in December after rising 3.2% in November. In December, the index equaled 120 (2015=100) compared with 111.7 in November. November’s gain was revised down slightly to 3.2% from ATA’s Dec. 22 press release. “Tonnage ended last year on a high note,” said Bob Costello, chief economist for ATA. “The index not only registered the largest monthly gain since June, but it also had the first year-over-year increase since March. Freight continues to be helped by strong consumption, a retail inventory restocking, and robust single-family home construction. With the stimulus checks recently issued and with a strong possibility of more in the near future, I would expect truck freight to continue rising.” Compared to December 2019, the SA index rose 2.3%. For all of 2020, compared with the same 12-month period in 2019, tonnage was down 3.3%; 2019 had an annual increase of 3.3%. “Because of the pandemic, 2020 was obviously a very challenging year for the economy overall, and that is reflecting in the tonnage index’s dip from the previous year,” Costello said. “Despite that, truck tonnage clearly outperformed the broader economy as freight continued to move in the face of a myriad of COVID-related challenges faced by the country.” The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 115.9 in December, 5.4% above the November level (109.9). 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. Trucking serves as a barometer of the U.S. economy, representing 72.5% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled 11.84 billion tons of freight in 2019. Motor carriers collected $791.7 billion, or 80.4% of total revenue earned by all transport modes. ATA calculates the tonnage index based on surveys from its membership. The numbers presented here are preliminary, and are subject to change in the final report.

New Class 8 truck sales start weak in 2020 but finish strong

Cliff Abbott - January 26, 2021

As expected, U.S. sales of new Class 8 trucks finished the year with a strong December, making 2020 a better sales year than initially expected. According to data received from industry analysts at ACT Research (actresearch.net), 21,700 new Class 8 tractors were sold on the U.S. market in December. That’s down 7.5% from the 23,456 sold in December 2019 — but in the context of a 30.5% drop in sales for the full year, the final month of 2020 was a strong one. Context is important in a year-over-year comparison, too. While it’s true 2020 sales of 195,728 represent a decline of 30.5% from 2019 sales of 281,461, it’s important to note that 2019 was the best sales year in the last 13, and the second-best of the young 21st century. Only 2006 sales were higher, when carriers were “pre-buying” large numbers of trucks to avoid new, untested EPA emissions technology. Since the year 2000, an average of just over 192,000 new Class 8 trucks have been sold each year. That puts 2020 sales at 1.9% better than average. A total of 15,630 (75.8%) of the Class 8 trucks sold in December were fifth-wheel equipped tractors, while 6,070 were vocational trucks equipped with dump, trash, concrete or other bodies. That’s the highest percentage of tractors of the year, which reached a low in May when only 54.6% of those sold were road tractors. For the full year, 72% of U.S. Class 8 sales were road tractors, compared to 28% destined for vocational work. Orders for new trucks remained very high, with 43,100 submitted in December, according to ACT. That’s nearly double the number of trucks actually sold in the month. The total number of orders climbed to more than 142,000 for the fourth quarter, the second-best ever for orders. Because more orders came in than can be built in a month, the backlog of orders continued to grow. Currently it would take more than seven months for the industry to build all the trucks now on order — and that’s with manufacturing facilities returning to pre-COVID production levels. Of course, new tractors need trailers to pull, and the industry was ordering large numbers of those, too. ACT reported 42,500 new trailers were ordered in December, 140% of the total ordered in December 2019. The robust market for new trucks is impacting the used truck market, too. ACT’s preliminary release of its State of the Industry: U.S. Classes 3-8 Used Trucks report showed that used Class 8 sales volumes rose 11% in December over November numbers and were 25% higher than December 2019 numbers. The average sales price for used Class 8 trucks in 2020 was down 8% from the 2019 average. The average age of used trucks sold dropped by 8%, while the average mileage dropped 4% compared to 2019. The U.S. Department of Transportation reported record numbers of registrations for new trucking authority in 2020, indicating that more drivers than ever made the decision to start their own companies. There were enough available used trucks, however, that the additional sales weren’t enough to drive pricing higher. On the new truck sales front, Freightliner led the way for December as well as for the year, according to data received from Wards Intelligence (wardsintelligence.com). The company sold 6,979 Class 8 trucks in December, 32.6% of all Class 8 trucks sold. That was a decline of 730 (9.5%) from November sales of 7,709 and also a decline of 655 (8.6%) from sales in December 2019. Freightliner was the only OEM to sell fewer trucks in December than in November. For the year, Freightliner sold 71,683 Class 8 tractors, good for 37.4% of the U.S. heavy-duty market. Kenworth had a great December with sales of 4,218, besting November’s 2,588 by 63% and slightly better than December 2019, when 4,148 Kenworths were sold. Kenworth captured 19.7% of sales in December and took 15.7% of the Class 8 market for 2020. Peterbilt showed a more modest increase with December sales of 3,270, up 22.1% from 2,588 sold in November. Compared to December 2019, sales were down 591 for a 14.8% decline. Peterbilt’s 15.3% market share for the month was a little higher than its 14.7% market share for the year 2020. Together, Peterbilt and Kenworth captured 30.4% of the Class 8 market in 2020 for parent company PACCAR. On a percentage basis, Mack had a huge December. Sales of 2,150 units more than doubled November sales of 1,057 for an increase of 103.4%. Compared to December 2019, however, sales decreased by 868 for a decline of 28.8%. Mack claimed 10% of the new Class 8 market in December and 7.5% for the full year. Volvo also saw a good December, selling 2,018 trucks compared to November’s 1,430 for an increase of 41.1%. Volvo’s 9.4% of the market in December was down from 9.7% for the full year. International sold 2,272 trucks in December, 425 more than November for an increase of 23%. The company claimed 10.6% of the market in December, down from its 2020 average of 12.1% (which was a decline from its 2019 average of 13.7%). Western Star ended the year with December sales of 494, just two trucks more than November’s 492 for a 0.4% increase. Compared to December 2019, when 775 Stars were sold, sales were down 36.3%. The OEM’s market share of 2.5% in 2019 declined to 2.3% in 2020. Large numbers of truck purchases and orders for more seems an indication that the trucking industry is bullish on the 2021 economy. Kenny Vieth, president and senior analyst for ACT, certainly is. “When I look at the economy, the areas poised for the largest growth are those that provide freight,” he explained. “I’m extremely bullish. I would argue that trucking conditions in the coming year could be the best ever.” In the meantime, a new administration in Washington could help — or hinder — industry growth. Some Democrats have complained about recent changes by the Federal Motor Carrier Safety Administration changes to relax hours-of-service requirements. Under the leadership of Biden appointee Pete Buttigieg as Secretary of Transportation, regulations could be revised and re-tightened. Further, Biden has announced plans for additional economic stimulation, potentially resulting in more freight than is currently available. In short, while no one can predict with certainty how the trucking industry will fare in 2021, indicators point to a very good year.

UPS puts $800 million price tag on trucking divisions in sales agreement with TFI International

The Trucker News Staff - January 25, 2021

ATLANTA and MONTREAL — UPS and TFI International Inc. on Jan. 25 announced a definitive agreement to sell UPS Freight (UPSF) to TFI International for $800 million, subject to working capital and other adjustments. UPS Freight includes the company’s less-than-truckload (LTL) and truckload (TL) divisions. The agreement between UPS and TFI International allows UPS Freight to use UPS’ domestic package network to fulfill shipments for five years. Approximately 90% of the acquired business will operate independently within TFI International’s LTL business segment under its new name, “TForce Freight,” while acquired dedicated TL assets will join TFI’s TL business segment. The transaction is subject to usual and customary closing conditions, including regulatory approvals. “We’re excited about the future and the opportunities this creates for both UPS and UPS Freight as part of TFI International Inc. The agreement allows UPS to be even more laser-focused on the core parts of our business that drive the greatest value for our customers,” said UPS CEO Carol Tomé. “We are pleased to announce this highly strategic transaction that will strengthen our service offerings to customers as well as our ongoing relationship with UPS. Our strategy of operating independent business units with a high degree of accountability is well-suited for building on UPS Freight’s strengths and improving margins over time,” said Alain Bédard, chairman, president and CEO of TFI International. “TForce Freight will continue to serve UPS’ ongoing LTL distribution needs, and UPS will continue to provide freight volumes and other services to TForce Freight after the transaction for a base term of five years. We also look forward to offering expanded strategic network opportunities to UPS in Canada. This transaction is a ‘win-win’, allowing TFI to continue our strategic expansion across the US and aligning with UPS’ ‘Better not Bigger’ strategic positioning.” The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close during the second quarter of 2021. UPS expects to recognize a noncash, pretax impairment charge of approximately $500 million on its statement of consolidated income for the year ended Dec. 31, 2020. With an operating history of more than 85 years, UPS Freight is one of the largest LTL carriers in the U.S., offering a full range of regional and long-haul solutions and an on-time delivery guarantee for all LTL shipments. Under the agreement, UPS will retain responsibility for all pre-closing pension obligations, taxes, and accident and workers’ compensation liability claims and costs. TFI intends to make targeted investments in the LTL fleet in the first 12 months following the transaction, lowering maintenance costs, improving both efficiency and safety, and enhancing customer service and driver satisfaction, according to a company statement. Goldman Sachs & Co. LLC is serving as financial advisor, and King & Spalding LLP is serving as legal advisor to UPS. Morgan Stanley & Co. LLC and RBC Capital Markets are serving as financial advisors to TFI. Scudder Law Firm, P.C., L.L.O. is serving as legal advisor to TFI.

Schneider takes stake in autonomous trucking tech as company CEO joins TuSimple advisory board

The Trucker News Staff - January 25, 2021

GREEN BAY, Wis. — Schneider announced last week that company president and CEO Mark Rourke will join TuSimple’s newly established Executive Advisory Board. TuSimple is a global self-driving technology company developing a commercial-ready Level 4 (SAE) fully autonomous driving solution for long-haul heavy-duty trucks. “The Executive Advisory Board brings together an impressive mix of industry and regulatory leaders from the freight logistics and transportation fields,” said Cheng Lu, CEO of TuSimple. “Our advisors will play a critical role in shaping our go to market strategy and correlating public policy efforts so we can safely and reliably introduce self-driving trucks at scale.” In addition to providing leadership and a test fleet to shape the future of autonomous trucking, Schneider will have a nominal investment stake in TuSimple, allowing shippers to benefit from Schneider’s growing involvement in this space. “Schneider always has been — and will be — in the lead at understanding the potential of new technology that can change or impact our industry,” Rourke said. “TuSimple is a leader in developing autonomous technology for the long-haul trucking industry. There will always be a need for well trained and safe professional drivers, and it’s important that we play a key role in safely developing and testing this technology to be the most prepared.” The carrier has worked to test, develop and deploy new truck technologies for decades, and continued investment in emerging technology that makes its associates safer and improves the overall delivery experience is vital to Schneider’s ongoing success, according to a company statement. In recent years, Schneider has invested in advanced driver assistance systems (ADAS) such as collision mitigation and adaptive cruise control, which are the foundation of autonomous vehicle technology. “While fully autonomous vehicles still have development and regulatory work ahead, we are encouraged by the advances in autonomous technology such as braking and other systems that are helping drivers make our roads safer,” Rourke said. “Schneider will work to test and understand over the coming years how this technology will complement our professional over-the-road driver associates and provide new, innovative opportunities for shippers.”

RoadOne IntermodalLogistics acquires DDI Transportation

The Trucker News Staff - January 20, 2021

RANDOLPH, Mass. — RoadOne IntermodaLogistics, a single source intermodal, distribution and logistics services company, has acquired DDI Transportation, an established, 38-year-old drayage and trucking business based in Ashland, Virginia. This investment will bolster RoadOne’s domestic drayage capabilities on the U.S. East Coast and serve as the foundation for further expansion of this service portfolio. DDI provides rail and port drayage, full truckload and logistics services. “I’m extremely pleased to welcome DDI to the RoadOne family of companies. Together, we will work to expand our domestic drayage services nationwide,” said Ken Kellaway, CEO of RoadOne. “This is a perfect complement to our strong, comprehensive international drayage service network. Our end game is always to provide the best in intermodal logistics and transportation services to our customers to enable reliable supply chain performance.” DDI will be known as DDI IntermodaLogistics, consistent with RoadOne’s family of brands, and will remain under the management direction of current CEO Fred Huennekens and company president Dan Bugas. “We are excited to join a company like RoadOne that shares our entrepreneurial approach to running and growing our business,” Huennekens said. “We were most impressed with their commitment to customer service and safety, as well as the deployment of new technology that will drive growth in our domestic intermodal and regional truckload operations.” As part of RoadOne, DDI will be supported by RoadOne’s strong fuel, truck and insurance purchasing capabilities, national warehousing and depot services, as well as advanced, end-to-end TMS TrueVision technology platform. DDI has a total of 13 locations on the U.S. East Coast — four in Florida, one in Maryland, one in North Carolina, one in New Jersey, four in Pennsylvania and two in Virginia. “We are enthusiastic and eager to join forces and become an integral part of the RoadOne Team,” Bugas said. “RoadOne’s national exposure will allow new growth opportunities within multiple industry segments and will greatly enhance our existing domestic intermodal platform and regional truckload services. We are very excited about the future.”

Pilot Co., RTS Financial launch fuel-factoring partnership

The Trucker News Staff - January 18, 2021

KNOXVILLE, Tenn. — Pilot Co. and RTS Financial (RTS) in mid-January launched a fuel and factoring partnership to help trucking companies grow their business. Pilot Co. operates the Pilot Flying J travel center network, while RTS offers factoring services. The two companies will work together to provide customized fleet solutions that combine fuel savings, maintenance and tires, loyalty perks and other services. “We are focused on initiatives that deliver savings, efficiency and convenience to our fleet customers,” said Shameek Konar, CEO of Pilot Co. “We’re thrilled to partner with a highly regarded provider like RTS to offer an integrated service solution for factoring and fuel that helps trucking companies access the resources they need to succeed and grow.” Dedicated teams from Pilot Co. and RTS will work with fleets to provide funding, fuel and essential services at competitive rates. By combining Pilot Co.’s cross-network bundle of fuel savings, credit, truck maintenance and loyalty rewards with advance rates and same-day funding services from RTS, fleets of all sizes will be able to streamline their business. “Through this partnership, RTS and Pilot Co. will be able to provide even greater value to the trucking industry,” said Bill Ryan, founder and CEO of Shamrock Trading Corp., the parent company of RTS. “Together, we’re excited to help trucking companies grow their businesses so they can provide for their families, stay on the road and enhance their operations.” In addition to fuel and factoring solutions, customers will be supported with: Dedicated, multilingual account and sales representatives; Back-office services to streamline paperwork; Easy-to-use mobile and web account management and credit analysis with RTS Pro; Enhanced Pilot Co. customer portal to manage fuel accounts; and Access to more than 1,000 fueling locations across the Pilot Flying J Travel Center network and One9 Fuel Network. For more information, click here.