Business Archives

TRATON partners with Hino, launches e-mobility venture to develop commercial electric vehicles

The Trucker News Staff - October 30, 2020

MUNICH and TOKYO — TRATON SE and Hino Motors Ltd. have signed a joint venture agreement to develop and produce electric commercial vehicles, the two companies announced Oct. 28. TRATON, a commercial-vehicle manufacturer and subsidiary of Volkswagen AG, and Hino, a Toyota Group company that produces commercial trucks and buses, plan to develop e-mobility solutions, including battery-electric vehicles (BEVs), fuel-cell vehicles (FCVs) and relevant components. In addition, the venture will include the creation and development of common electric-vehicle (EV) platforms, including software and interfaces. “TRATON’s mission is to carefully balance the interests of People, Planet and Performance. This new joint venture with our strong partner Hino is the next important step in electrification, pushing our mission further ahead,” said Matthias Gründler, CEO of TRATON, reiterating that TRATON has a goal of investing 1 billion euros in electrification until 2025. In the first phase of the venture, TRATON and Hino will form a team of advanced specialists from the two companies and launch activities in Sweden; the second phase will include implementing a team in Tokyo. “I am delighted that we can follow our procurement joint venture and further embodying our synergy with TRATON in e-mobility, helping to reduce global CO2 emissions and fighting global warming,” said Yoshio Shimo, president and CEO of Hino. “We will combine our strengths as leading commercial vehicle manufacturers to offer EVs with the highest value for customers, through joint planning of commercial EVs.” The agreement builds on a strategic partnership established by TRATON and Hino in 2018. The companies established a joint procurement venture in 2019 and consider this latest e-mobility agreement to be a solidification of their collaboration, according to a statement issued by the two companies.

Tying up loose ends: Knowledge is the key to making a successful career move

Cliff Abbott - October 29, 2020

Trucking companies are required by the Federal Motor Carrier Safety Administration (FMCSA) to investigate the background of anyone who applies for a driving job. Unfortunately, recruiters and drivers alike are often frustrated when that background check reveals negative information the applicant didn’t disclose. In too many cases, the applying driver wasn’t even aware the information was on the record. As a driver, you have access to most of the same reports the carriers obtain during a background check. Order your own reports and know what’s on your record — before you apply. Here are the reports you’ll need: Motor Vehicle Report (MVR) The state that issued your commercial driver’s license (CDL) keeps a record of your driving history. Some states record only traffic violations for which you have been convicted, while others may include warnings, nonmoving violations such as parking, accidents you were involved in and other information. Carriers are required by the FMCSA to obtain this information before allowing you to drive — and the report is checked every year after you’re hired. Every state has its own process for ordering an MVR. To make sure you know what’s on your record, contact the agency that issued your CDL to find out how to order a copy in your state. If you have moved to a different state in the past three years, you’ll need an MVR from your old state, too. If you recently acquired your CDL, you may need to order a separate MVR for the passenger vehicle license you had before your CDL. Pre-employment Screening Program (PSP) According to the FMCSA’s pre-employment screening web page, “your PSP record includes five years of crash and three years of roadside inspection data from the FMCSA Motor Carrier Management Information System (MCMIS) database.” Many carriers use the PSP when deciding whether to hire or lease a driver. Unfortunately, this system does a poor job of representing the driver’s actual record. It’s important to understand that any tickets you receive during a roadside inspection can show up on your PSP, even if you are eventually found not guilty or the ticket is dismissed. Worse, infractions that result in a written or verbal warning can also be shown as citations on your PSP. A common scenario goes like this: You get pulled over and the law-enforcement officer tells you that you were “going a little fast.” Luckily, you don’t get a ticket, but you do undergo an inspection while stopped. You might pass the inspection with flying colors and then later be shocked when a carrier says they can’t hire you because of the “speeding ticket” noted on your PSP for that date. Each carrier has its own policy when it comes to interpretation of the PSP. Some assign points to each item listed and use the resulting score in their hiring or leasing decisions. Some may ask for additional information, such as court records or accident reports, to help them understand the outcome of a citation or preventability of an accident. The important point is, the PSP can keep you from getting hired. Magnanimously, the FMCSA has a method for you to contest entries on your record — but you must initiate the action, it will take months to resolve and there’s no guarantee that a change will be made. Know what’s on your PSP before you apply with a new carrier. Order yours at psp.fmcsa.dot.gov/psp/public (click on “Request Your Records”). The cost is $10. If you find inaccurate information on your PSP, you can contest it by sending a Request for Data Review (RDR) to dataqs.fmcsa.dot.gov. Include any documentation that applies to the contested item, including court records, accident reports and any other documents that support your case. Always retain copies of accident reports and court records. They may be difficult to obtain on short notice later, when you need them. DAC reports and similar records HireRight’s “DAC” report is very likely the least-understood document for drivers, but it can be critical to getting hired. The DAC report is simply your employment history, as reported by carriers you previously worked for. The DAC report will show the start and end dates of your work period at each carrier, plus details such as the position you held, the type of equipment operated, whether your work record was satisfactory and whether you resigned or were fired. The report may also show any accidents you had while at that company and if those accidents were considered preventable. Not every carrier reports information to DAC, so the report may not show your complete history, but it is easily the most popular among carriers. Because HireRight collects and distributes information about individuals, they are a consumer reporting agency, just like any credit agency. By FMCSA regulation, you have the right to review the information in your report, to contest any errors you find and to have your rebuttal of the information included in your record. Go to hireright.com/background-checks and click on “Get a copy of your background report.” Then, follow the directions. You can obtain a free copy of your employment history every 12 months. If you can’t go online to order your report, call the HireRight customer service team at 800-381-0645. You can also mail your request to HireRight, Attn: Consumers Department, 14002 E. 21st St., Suite 1200, Tulsa, OK 74134. If you want to contest any information in your report, there is a link on the same page you ordered the report from. Once your dispute is received, HireRight will contact the former employer who reported it and notify them of your dispute. HireRight may also remove the information from your DAC report until the dispute is resolved. If a former carrier uses a reporting agency other than DAC for employment history, you have the same rights at that agency. Drug and Alcohol Clearinghouse The clearinghouse was created in January 2020 and has quickly become an important item in every driver’s information base. Any positive drug or alcohol tests — or refusals to test — are now reported to the clearinghouse. Carriers will still need to contact employers you worked for before Jan. 6, 2020, since those records won’t be in the clearinghouse. You’ll need to be registered with the clearinghouse for two reasons. First, any carrier you apply to must have your permission to access your record. They can’t do that if you aren’t registered. Second, like any record about you, it’s important you know what’s in the report in case it includes inaccurate information. To register, go to clearinghouse.fmcsa.dot.gov/register and follow the instructions. You’ll need to provide your CDL number and other information. Once registered, you’ll be able to check your record at no cost and to contest inaccurate information. By obtaining your own reports, you can be confident that you know what prospective employers will see on your record, smoothing the way to that new job.

Don’t let road expenses eat away at your take-home pay

Cliff Abbott - October 29, 2020

Driving professionally can be a rewarding experience, but just how rewarding often depends on choices the driver makes while on the road. For many drivers, making a living on the road means LIVING on the road. You’ll need to eat, sleep and shower, and you may need medicine, clothing, tools and even entertainment. How you deal with these needs can make a huge difference in your take-home pay. Let’s start with meals. If you plan to eat three meals a day at truck-stop restaurants, understand that you’ll be spending a large part of each week’s pay on food. Even a fast-food burger and fries will cost the better part of a $10 bill. A sit-down meal at a restaurant will very likely cost more than $10 — and you’ll need to add a tip for your server, too. Eat your meals in restaurants, and buy a couple of snacks for later on your way back to the truck, and you can easily drop $50 a day just on food. Almost every truck stop has a C-store (that’s a convenience store, for those new to the road). You’ll spend $2 for a soda here, $4 for a bag of chips there — and before you know it, another $10 bill is gone. Drivers who want to reserve the biggest possible payday for their families back home should have a plan for supplying themselves with affordable food, beverages and snacks while on the road. Stocking up is a good idea. A 12-pack of soda might cost $4.50 at the local grocery, but buying those 12 cans individually at truck stops will cost three or four times as much. A 24-bottle case of water costs $5 or less locally, but it’s rare to find a single bottle priced as low as $1 at a truck stop. Items such as candy and chips are cheaper at the grocery story, too. Even better, vegetables, like carrots or celery, and fruit are easier to find — and better for your health. As for meals, you can often find a box of four or more frozen breakfast sandwiches for the cost of one fast-food offering. Canned chili, stews and soups are about $2 each. A loaf of bread and a pound of your favorite lunch meat will provide several meals at a much lower cost than one at a restaurant. Another trick used by some drivers is to prepare and freeze meals while at home and then heat them while on the road. Meals on the road will require an investment in cooking/warming devices. The easiest to use is a microwave, but you’ll need a power inverter to run one. There are numerous 12-volt options that take longer to heat a meal but require less power. Try to avoid pots and cookers that need to be washed and instead, look for products that warm foods still in the container. Every driver should carry a first-aid kit while on the road. Bandages, tape and wound cleaner are a must, but it’s a good idea carry some routine medicines, too. Aspirin, heartburn tablets, allergy tablets and other medical supplies can be outrageously expensive at truck stops. Stock up at a local “dollar” store and be prepared, just in case. Personal items such as gloves, hats and sunglasses can also be expensive on the road. It’s always a good idea to have a box or bag of items you may need rather than buying them while traveling. An extra pair of shoes or boots is a wise choice, as is some cold-weather gear. No matter how well you prepare for the road, you’ll occasionally need cash. If you don’t bring enough with you to last, you might find it expensive to get more. Many carriers allow you to take advances using your company fuel card. Avoid expensive payday surprises by making sure you understand the fee system. Some transactions may be “free,” like drawing an advance in conjunction with a fuel purchase. However, some carriers limit the number of transactions per week, and the charges for obtaining cash without buying fuel can be high. Something else to remember about those carrier advances is that they are loans against your paycheck. They WILL be deducted from an upcoming paycheck. Some drivers are shocked to learn that most of a week’s check was eaten up by deductions for advances taken, making it difficult to pay bills that week. Use advances wisely. Other drivers depend on ATM cards to access the cash in their own bank accounts. ATM transactions on the road can result in two fees — one to the bank that owns the ATM and another to the bank that issued the card. Credit-card advances can cost even more if there’s an advance fee — plus interest and ATM fees. The best practice is to minimize the number of times you need to draw cash while on the road. If you must get cash on the road, try to get enough that you won’t need to make another withdrawal before you get home. Remember, a hot restaurant meal or an occasional treat can make road life more enjoyable. But if you want to make the most of your trucking paycheck, it’s wise to limit expenses and conserve your cash so you can spend it on the reason you’re on the road to start with — those waiting at home.

Driver shortage tops ATRI’s 2020 list of top trucking industry issues for motor carriers; insurance makes lists for first time since 2005

The Trucker News Staff - October 28, 2020

ARLINGTON, Va. — For the fourth year in a row, the driver shortage is the top overall concern for the trucking industry, according to a report released Oct. 27 by the American Transportation Research Institute (ATRI). The 2020 Top Industry Issues Report is ATRI’s 16th annual report, and identifies a number of the industry’s key concerns including the driver shortage, truck parking, driver compensation and retention, and — for the first time since 2005 — insurance costs. “For a number of reasons, 2020 has been a tremendously challenging one for our industry and our country, but as ATRI’s survey lays out, there are a number of issues we must address in addition to the ones put in front of us by this pandemic,” said Randy Guillot, chairman of the American Trucking Associations and CEO of Southeastern Motor Freight and Triple G Express Inc “From finding and keeping qualified drivers to the increased costs of insurance and burdens imposed on our industry by unwarranted lawsuits, ATRI has identified the issues our industry cares most about and outlines plans for how we can solve them,” he added. This year, for the fourth year in a row, the driver shortage was noted as No. 1 issue for the trucking industry. The driver shortage also topped the motor carriers’ list of concerns, highlighting the challenges fleets face in recruiting new talent and keeping current drivers. Driver retention was motor carriers’ No. 2 issue, and was sixth on the combined list. Truck parking climbed two spots this year to become the third-highest ranking issue of concern and achieving its highest ranking since first appearing on ATRI’s Top 10 list in 2012. Among the 1,000-plus truck drivers who responded to the survey, truck parking, driver compensation and detention issues were among the top concerns. In all, ATRI received responses from a combined total of 3,122 truck drivers, motor carriers and other industry stakeholders — an all-time record for the 16-year-old survey. “Having such a robust sample gives us a very accurate picture of what issues are of most concern to the trucking industry,” said Rebecca Brewster, president and COO of ATRI. “With this information, the industry can best target its resources to address trucking’s concerns.” This year, for the first time since 2005, insurance cost and availability appeared in the top concerns, hitting fifth in the combined Top 10 and fourth in the list of carrier concerns. In addition, tort reform appeared in the survey’s Top 10 for the first time since 2011, landing at seventh in the combined list and fifth in the carriers’ list. “The impacts of litigation and growth of nuclear verdicts in the trucking industry was really apparent in this year’s list of concerns,” Brewster said. “Earlier this year, ATRI quantified the growth in nuclear verdicts in the trucking industry, but even without that critical research, the fact that tort reform and insurance issues have resurfaced in the survey are a clear sign the industry is being impacted by rising costs related to litigation and insurance.” The complete results of the annual survey were released as part of American Trucking Associations’ 2020 Management Conference and Exhibition. The full report can be found on ATRI’s website.

New ACT report shows motor carriers enjoying volume growth, pricing power

The Trucker News Staff - October 28, 2020

COLUMBUS, Ind. — According to ACT Research’s recently released Transportation Digest, motor carriers, especially, are enjoying a period of volume growth and pricing power that would have been considered nearly impossible to achieve, though welcome, from an April 2020 vantage point. “While we were even then projecting a second half 2020 rebound, the slope of the upward trajectory that started in May has been as unexpected as it has been exponential,” said Kenny Vieth, ACT’s president and senior analyst. “Final confirmation will come as we make our way through Q3 earnings season, but even now many aspects of the rebound continue to deliver upside surprises.” Vieth noted that even though this year’s recession was “severe,” it was short-lived for some sectors of the nation’s economy, in particular, the transportation industry. “The voluntary and mandatory shutdowns of March and April triggered a downturn of unprecedented severity, but the corresponding relaxation has brought a strong revival. Other aspects of this very unique business downturn include easy credit, a substitution of spending on services to goods, lower energy costs, robust e-commerce and a home sales boom,” he said. “It is fair to question whether some of these trends will have legs that stretch beyond COVID and its cure or mitigation, but for now they are influential for commercial vehicle markets,” he concluded. The report, which combines proprietary ACT data and analysis from a wide variety of sources, paints a comprehensive picture of trends impacting transportation and commercial vehicle markets. This monthly report is designed as 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.

Recovery continues for new Class 8 truck sales; impact on commercial vehicle market from TRATON-Navistar deal remains to be seen

Cliff Abbott - October 28, 2020

The North American market for new Class 8 trucks continued to climb in September in response to record freight rates and solid shipment numbers. According to data received from ACT Research, 19,380 trucks were sold in September, outdistancing the 17,977 sold in August by 7.8%. Compared to September 2019, when 28,624 new trucks were sold, sales declined by 32.3%. However, considering that last September was the best September ever for new truck sales, the decline doesn’t look so bad. A better perspective might be that of the past 20 years, seven Septembers have been better and 12 have been worse. Of the trucks sold in September, 14,404 (74.3% of the total) were over-the-road tractors, while 4,976 (25.7%) were vocational trucks such as dump, trash or concrete. Last year, 73.1% of new Class 8 trucks were OTR models, but that percentage was lower than 70% for the first seven months of 2020, dropping as low as 54.6% in May. In ACT’s October upgrade to its North American Commercial Vehicle Outlook, Kenny Vieth, ACT’s president and senior analyst, explained that the current freight market is different than markets in the past. “We’re seeing a COVID-driven consumer and business substitution of spending from services to goods, and while a vacation or business trip doesn’t fit into a truck, lumber and technology do,” he said, noting that businesses will be rebuilding inventories that were depleted during COVID-19 shutdowns, resulting in a rebound of manufacturing. “By Q1 2021, the current manufacturing cycle will hit a nine-quarter downturn, suggesting a tightly coiled spring of pent-up demand, also good for freight and ultimately commercial vehicle demand,” he said. As sales of new trucks were rising, so were orders for future deliveries of new trucks. ACT reported 30,700 new orders for Class 8 equipment in September, up 37% from August orders — and an incredible 145% higher than September 2019 orders. Last fall, buyers were accepting large numbers of trucks they had previously ordered while slowing up on new orders in preparation for a difficult 2020. Despite shutting down production shifts and reducing workforces, manufacturers made progress on decreasing the backlog of ordered trucks “As orders rebounded to relatively healthy levels early in Q3, most of those orders were targeted at filling open 2020 build slots,” Vieth said. “With most of that work done by the end of August, we suspect the lion’s share of September’s orders were booked into 2021.” Sales of used trucks rose in September, too, according to ACT’s State of the Industry: U.S. Classes 3-8 used trucks report. Sales volumes at dealers rose 17% year to date compared to the first eight months of the year. While volumes were up, average miles and age both fell slightly, and average prices were still below last year’s pace. Of the new Class 8 trucks sold in September, 40.3% of them were Freightliners. The company moved 7,713 of them — 447 more than the 7,266 sold in August — according to data received from Wards Intelligence (wardsintelligence.com). For the year to date, Freightliner leads all OEMs with sales of 49,663 but still trails last year’s 78,591 in the first nine months by 36.8%. Kenworth’s 2,800 sold was second-best in the industry, besting the 2,385 sold in August by 17.4%. Compared to September 2019, sales declined 26.9%, the smallest decline of any of the OEMs. Peterbilt saw a 10.6% increase over August sales with 2,686 sold in September compared to 2,428 the prior month. Compared with September 2019, when 3,718 were sold, sales declined 27.8% Mack sold 1,319 trucks in September, an increase of 298 units representing 29.2% compared to August. It was the largest month-over-month gain on a percentage basis of all the manufacturers. Compared to September 2019, however, Mack sales dropped by 32.8%, also the largest drop of the manufacturers. Volvo fared better with sales of 1,960 trucks, 89 more than in August for a gain of 4.8%. Compared to September 2019, Volvo sold nine more trucks for a gain of 0.5%, the only year-over-year gain of any OEM. Western Star’s 391 trucks sold in September was 9.9% less than August and 45.5% lower than September 2019 sales, when the company moved 717 trucks. For the year to date, sales were 19.8% behind last year’s pace, the lowest decline of any OEM. Hino got on the scoreboard with sales of one truck in September, but the manufacturer sold twice that many in September 2019, so on paper it looks like a sales decline of 50%. The company’s XL model will be offered in both extended-cab and crew cab configurations in 2021 but still won’t have a sleeper option. Hino is known for medium-duty trucks used in local operations, and entered the Class 8 market last year. International lost ground compared to August, but not by much. The company sold 2,256 trucks in September, just 23 fewer than in August for a 1% decline. Compared with September 2019, sales dropped by 1,334 trucks for a 37.2% decline. On Oct. 16, TRATON SE, the commercial truck unit of Volkswagen AG, agreed in principle to purchase remaining Navistar shares for approximately $3.7 billion. TRATON, which also owns the European MAN, Scania and Brazil’s Volkswagen Caminhoes e Onibus (Volkswagen Truck and Bus), already owned 16.8% of Navistar stock. Volkswagen has long sought an entry into the North American Class 8 market, and the Navistar acquisition provides the dealer and service network — and manufacturing facilities — to make it happen. While it may be months before the deal is finalized, it remains to be seen how the announced acquisition will impact International truck sales for the remainder of the year. For the longer term, there almost certainly will be some integration of parts and technologies from other TRATON subsidiaries, provided the deal is finalized. Several factors could still influence sales of new trucks for the remainder of the year. Not the least is the national election, taking place just two days after this issue of The Trucker hits newsstands. Another government stimulus may or may not occur, and spikes in COVID-19 cases could cause further shutdowns or restrictions on businesses. For now, it’s looking like a big fourth quarter of 2020 for the new truck market followed by a solid start to 2021.

Rand McNally acquired by TELEO Capital, prepares to launch 3-year production plan

The Trucker News Staff - October 27, 2020

CHICAGO — Mapping company Rand McNally has been acquired by TELEO Capital Management, the companies announced Friday, Oct. 23. Joseph Roark has been named chairman of Rand McNally, which will continue to operate out of its Chicago headquarters, with warehousing in Kentucky and several global sourcing and development operations. During the past decade, Rand McNally, a 164-year company, has expanded into the commercial transportation and logistics software industry. The company now provides proprietary fleet-management solutions and mileage and routing software to carriers, shippers and third-party logistics providers, along with a suite of driver technologies that integrate into the fleet-management platform. TELEO Capital, a private equity firm, has headquarters in Boise, Idaho, and Los Angeles. According to a prepared statement, TELEO Capital is committed to investing in and growing Rand McNally’s position in the commercial and industrial transportation technology market. On the day of the sale closing, Roark was in Rand McNally’s Chicago office, diving into a full three-year product plan with engineers and managers. “We are extremely excited to support the Rand McNally team through this next stage of growth,” said Roark, an operating partner at TELEO Capital. “We fully intend to help grow Rand McNally through organic and acquisitive investment. Our focus will be on breakthrough products and solutions and first-class customer service.”

EPA orders 3 trucking companies to pay more than $400,000 for violating CARB’s pollution regulations

The Trucker News Staff - October 20, 2020

SAN FRANSISCO — Three interstate trucking companies must pay $417,000 penalties for violating the California Air Resources Board’s (CARB) federally enforceable Truck and Bus, Drayage and Transport Refrigeration Unit regulations, the U.S. Environmental Protection Agency (EPA) announced Oct. 16. The announcement highlighted separate administrative settlement agreements with three companies: Roadrunner Transportation Systems Inc. operated heavy-duty diesel vehicles that lacked the diesel particulate filters required by CARB’s Truck and Bus Regulation and operated unregistered, noncompliant drayage trucks. The company also hired carriers to transport goods in California without verifying that the vehicles complied with the Truck and Bus Regulation and dispatched drayage trucks without required record-keeping. As part of the settlement, the company will pay a $117,000 civil penalty and has agreed to use compliant trucks. Ruan Transportation Management Systems Inc. operated heavy-duty diesel trucks in California that lacked the required diesel particulate filters. Ruan also failed to verify that the carriers it hired to transport goods in California complied with CARB’s Truck and Bus Regulation. Ruan is the first company cited by EPA for failing to timely meet specified particulate-matter emission reductions in transport refrigeration equipment under State of California requirements. As part of the settlement, the company will pay a $125,000 civil penalty and will use compliant trucks. Boise Cascade Co. failed to verify that the carriers it hired to transport goods in California complied with the state’s Truck and Bus Regulation. As part of the settlement, the company will pay a $175,000 civil penalty and has agreed to use compliant trucks. “As trucks are one of the largest sources of air pollution in California, EPA will continue to ensure these heavy-duty vehicles have the needed pollution-control equipment and operate in compliance with the rules,” John Busterud, EPA’s Pacific Southwest regional administrator. “These companies have agreed to bring their trucks into compliance and operate more cleanly in all communities they serve.” According to a statement from the EPA, transportation is a primary contributor to the high levels of air pollutants in Southern California and the Central Valley. Diesel emissions from trucks are one of the state’s largest sources of fine particle pollution, or soot, which is linked to health issues including asthma, impaired lung development in children, and cardiovascular effects in adults. Many of these trucks are older models and emit high amounts of particulate matter and nitrogen oxides. For several years, California’s Truck and Bus Regulation and Drayage Truck Regulation have been part of the state’s federally enforceable plan to attain cleaner air. California requires trucking companies to upgrade vehicles they own to meet specific particulate matter and nitrogen oxides performance standards and to verify compliance of vehicles they hire or dispatch. Heavy-duty diesel trucks in California must meet 2010 engine emissions standards or use diesel particulate filters to reduce the diesel particulate emissions into the atmosphere by 85% or more. Owners and operators of drayage trucks operating in California must meet specific emissions standards and register these trucks with the state. Under California’s Transport Refrigeration Unit Regulation, owners and operators of transport refrigeration equipment that operate in the state must meet performance standards that reduce particulate emissions by at least 50% (or 85% by certain deadlines, depending upon the model year and horsepower of the equipment).

ATA truck tonnage index rebounds 6.7% from August to September, still lags behind 2019 figures

The Trucker News Staff - October 20, 2020

ARLINGTON, Va. — American Trucking Associations’ (ATA) advanced seasonally adjusted For-Hire Truck Tonnage Index increased 6.7% in September after declining 5.3% in August. In September, the index equaled 115.1 (2015=100) compared with 107.9 in August. “September had a nice recovery after a significant decline in August,” said Bob Costello, chief economist for ATA. “The truck freight market continues to be bifurcated, with strength in retail and home construction, but some continued weakness in industrial freight. During the third quarter, truck tonnage increased 2.4% over the second quarter, but fell 5.3% from a year earlier.” Compared to September 2019, ATA’s seasonally adjusted index contracted 2.7%, the sixth straight year-over-year decline. Year to date, compared with the same period in 2019, tonnage is down 3.3%. The not seasonally adjusted index, which represents the change in tonnage actually hauled by ATA member fleets before any seasonal adjustment, equaled 112.4 in September, 0.7% below the August level of 113.2. In calculating the index, 100 represents 2015. ATA’s For-Hire Truck Tonnage Index focuses on contract freight as opposed to spot market freight.

Fired truck driver to get $165,000 in gender bias settlement

The Associated Press - October 20, 2020

MINNEAPOLIS— A Twin Cities truck driver who was fired because she failed a strength test following a workplace injury has been awarded $165,000 from her former employer, a court document shows. U.S. District Judge Nancy Brasel on Friday, Oct. 16, approved the settlement of the May 2019 gender discrimination lawsuit filed by the Equal Employment Opportunity Commission on behalf of Alana Nelson. In addition to ordering Stan Koch & Sons Trucking to pay Nelson’s back wages, the settlement requires the trucking company to apologize to her either in person or via video hookup, the Star Tribune reported. The company also must put a written policy in place and train its front office employees about discrimination and retaliation. The settlement noted that Nelson, 56, of St. Paul Park, received “a separate private settlement” from Koch & Sons, but the amount was not listed in the court document.

August freight shipment down 1.3% from July, lags 7.3% behind all-time high in August 2019

The Trucker News Staff - October 19, 2020

WASHINGTON — The Freight Transportation Services Index (TSI), which is based on the amount of freight carried by the for-hire transportation industry, fell 1.3% in August from revised July, declining after two months of increases, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS). The Freight TSI measures month-to-month changes in for-hire freight shipments, categorized by mode of transportation in tons and ton-miles, and compiles the information into one index. This index includes data from a variety of for-hire modes of transportation, including trucking, rail, inland waterways, pipelines and air freight. From August 2019 to August 2020, the index fell 7.4% compared to a rise of 3.9% from August 2018 to August 2019 and a rise of 5.7% from August 2017 to August 2018. The level of for-hire freight shipments in August measured by the Freight TSI (131.1) was 7.4% below the all-time high level of 141.6 in August 2019. Last month, the BTS revised the July index up to 132.8 from 128.9, a 1.3% increase. Monthly numbers for May and June were revised up slightly, while March and April were revised down slightly. BTS attributes the 1.3% drop between July and August of this year to declines in water, pipeline and trucking, despite growth in rail intermodal, rail carload and air freight. The August decrease was preceded by three consecutive monthly increases; however, the Freight TSI declined in four of the eight months from January to August, resulting in a total decrease of 4% in 2020. The index remained 3.7% below its pre-pandemic level in February and 4.2% below its recent peak in January. However, it is 4.4% above its pandemic low point in April. It is now 7.4% below its all-time high in August 2019. The index was below the levels of every month from November 2017 to March 2020 for the fifth consecutive month. However, it was above every level before August 2017 when the index reached 129.0. For-hire freight shipments in August 2020 (131.1) were 38.1% higher than the low in April 2009 (94.9), during the recession. According to BTS, for-hire freight shipments are up 6.4% in the five years from August 2015 and are up 22.6% in the 10 years from August 2010.

EEOC files suit against USF Holland for discrimination against women in hiring practices

The Trucker News Staff - October 19, 2020

MEMPHIS, Tenn. — The U.S. Equal Employment Opportunity Commission (EEOC) is seeking a jury trial against USF Holland LLC, a subsidiary of YRC Worldwide, in a sex-discrimination case. USF Holland violated federal law by refusing for decades to hire qualified females for truck driving positions because of their sex, the EEOC charged in a lawsuit filed Oct. 13. USF Holland operates more than 50 terminals in the U.S. The EEOC alleges the discrimination occurred at Holland’s Olive Branch, Mississippi, terminal. According to the EEOC’s lawsuit, USF Holland has employed virtually no females as truck drivers at its Olive Branch location since that terminal opened in 1986. As of May 2016, USF Holland employed more than 100 truck drivers in Olive Branch, but none were women. The EEOC contends that qualified women with extensive truck-driving experience have applied over the years, but even when the women’s qualifications were equal or superior to those of male applicants, Holland hired men instead of women. Only one plaintiff, Marilyn Hervery, is named in the EEOC’s filing. According to court documents, in May 2015 Hervery applied for one of five open truck-driving position with USF Holland’s Olive Branch location. Hervery, who met all requisite qualifications listed for the position by Holland, was told during her scheduled interview that she needed a forklift certification; Hervery obtained the certification and notified Holland. However, she was not selected for the position — instead three male applicants were hired. The EEOC and Hervery contend that she is “at least as qualified or more qualified” than the men hired for the truck-driving positions. Such alleged conduct violates Title VII of the Civil Rights Act of 1964, which prohibits discrimination on the basis of sex. The EEOC filed suit (EEOC v. USF Holland, LLC, Civil Action No. 3:20-cv-00270) in U.S. District Court for the Northern District of Mississippi, after first attempting to reach a pre-litigation settlement through its conciliation process. The suit seeks monetary relief in the form of back pay and compensatory damages, as well as an injunction against future discrimination. “It is important for employers to understand that assumptions about gender roles have no place in employment decisions,” said Delner Franklin-Thomas, district director of the EEOC’s Memphis District Office, which has jurisdiction over Arkansas, Tennessee and portions of Mississippi. “Denying women equal employment opportunities in the workplace because of gender is illegal.”

Location-based authorization service designed to combat fleet fuel fraud

The Trucker News Staff - October 16, 2020

BRENTWOOD, Tenn. — Comdata Inc., a provider of payment solutions has launched the next generation of enhanced authorization controls, a digital solution designed to help prevent fuel fraud in the fleet industry. The system now combines real-time truck location, tank capacity and tank level data into the fuel card authorization process to help prevent financial losses related to card fraud and driver theft. “The trucking industry is especially vulnerable to fraud at the pump, costing businesses millions of dollars each year,” said Eric Dowdell, president of North America trucking for Comdata. “Our enhanced authorization system is reliable and trusted, and we look forward to enhancing these capabilities over time to help meet the evolving needs of our customers.” The new authorization feature makes the “invisible, visible” to fleet managers by integrating real-time GPS/ELD vehicle location, merchant location and vehicle diagnostic data seamlessly with Comdata’s fuel card authorization platform to help detect and prevent driver misuse and fraud. Fleet managers can set customizable “decision rules” that will automatically be applied when the system is triggered by suspicious activity, such as buddy fueling, skimming, fuel theft, card counterfeiting or other illegal activity. “Security and control is a top priority for fleet managers and our customers,” said Justin King, senior vice president of product and innovation for Comdata. “The combination of real-time data capture from the vehicle and our payment processing platform makes it that much easier for fleets to mitigate financial losses related to fraud and misuse.” The new product feature is part of Comdata’s fuel payment system and is available to fuel card customers.

TRATON makes offer to buy Navistar at $44.50 cash per share, total cost of nearly $3.7 billion

The Trucker News Staff - October 16, 2020

MUNICH — TRATON SE and Navistar International Corp. have reached an agreement “in principle” that TRATON will acquire by merger all shares in Navistar not already held by TRATON, at a price of $44.50 USD per Navistar share. TRATON already holds 16.8% of Navistar’s stock, and plans to purchase all outstanding shares of common stock not already owned by TRATON at a cost of nearly $3.7 billion USD. “We are pleased to have reached agreement in principle for a transaction after intensive negotiations with Navistar,” Matthias Gründler, CEO of TRATON. “We are looking forward to completing our due diligence and obtaining the necessary approvals in respect of this exciting deal in order to welcome the new TRATON family member.” The agreement was conveyed Oct. 16 in a letter from Gründler to Troy Clarke, Navistar’s executive chairman and remains subject to finalization of due diligence to the satisfaction of TRATON, agreeing on the conclusion of a merger agreement and related transaction documents, and the approval of the transaction by the executive bodies and committees of TRATON and Volkswagen, as well as Navistar’s board of directors and shareholder meeting.

Navistar counters TRATON’s ultimatum, acquisition could be on horizon

The Trucker News Staff - October 16, 2020

LISLE, Ill. — After receiving what amounted to an ultimatum from TRATON SE in an Oct. 14 letter that held firm to the German company’s offer to purchase Navistar International Corp. for $43 per share, the Navistar board of directors countered Friday, Oct. 15, with a letter stating the board would accept $44.50 per share. In the letter, addressed to TRATON’s CEO Matthias Gründler, Navistar’s Executive Chairman Troy Clarke asked that TRATON “promptly make a public announcement of the extension of your previously announced expiration of your offer to acquire Navistar to a date and time mutually agreed upon in order to proceed with the finalization of the definitive agreements for a transaction at U.S. $44.50 per share in cash.” Navistar’s letter noted that the price of $44.50 per share has the support of Icahn and MHR, two of Navistar’s largest shareholders. JP Morgan and PJT Partners are acting as Navistar’s financial advisors in negotiations, while Sullivan & Cromwell LLP is providing legal counsel and Brunswick is providing communication counsel.

TRATON puts brakes on Navistar negotiations; sets Oct. 16 deadline with firm offer of $43 per share

The Trucker News Staff - October 15, 2020

MUNICH — TRATON SE on Oct. 14 put the brakes on negotiations for a higher price per share for Navistar International Corp.. In January 2020, Navistar received an unsolicited proposal from TRATON to acquire the company for $35 per share for all outstanding shares of Navistar common stock not already owned by TRATON (currently, TRATON holds 16.8% of Navistar’s outstanding common shares). In September, that offer was upped to $43 per share in cash, a 23% increase that the Navistar board of directors said represented a “starting point” for negotiations. “TRATON has developed a strong strategic relationship with the company in recent years, and, in light of the 23% increase in their proposal, the board believes the best way for TRATON to appreciate the true value of a potential combination is to allow it to conduct due diligence and engage in further synergy discussions with the company,” Navistar said in a news release. TRATON this week responded, holding firm on the $43 per share offer and setting a deadline of 6 p.m. CET Friday, Oct. 16, for Navistar’s acceptance in a letter from TRATON’s CEO Matthias Gründler and CFO Christian Schulz, addressed to Navistar’s board of directors and Executive Chairman Troy Clarke. The letter states that, after performing due diligence on Navistar, TRATON leadership believes that the September offer “fully values the company” and is TRATON’s “best and final offer” (subject to approval by the relevant boards at TRATON and Volkswagen). “We still believe that this price of $43 per share reflects an extremely attractive premium to Navistar shareholders (a premium of 46% over Navistar’s 90-day volume weighted average price of $29.37 as of Sept. 9, 2020, and a premium of 79% over Navistar’s unaffected price on the day before our Jan. 30, 2020 proposal),” the letter reads. “This proposal will expire and be deemed withdrawn, with no further action on our part, on Friday, 16 October 2020, at 6pm CET, unless prior to that time you have notified us in writing of your willingness to proceed with discussions with a view to entering into a transaction at that price. If that is not the case, we will terminate discussions between the companies.” TRATON SE is a subsidiary of Volkswagen AG and a worldwide commercial vehicle manufacturer offering light-duty commercial vehicles, trucks and buses. Navistar is a holding company whose subsidiaries and affiliates produce International brand commercial trucks, proprietary diesel engines and IC Bus brand school and commercial buses.

Palmer Leasing Group named 2019 Kenworth franchise of the year

The Trucker News Staff - October 12, 2020

INDIANAPOLIS — Palmer Leasing Group has been named the 2019 U.S. Kenworth Franchise of the Year. In addition, the group received a Gold Award for customer service from PacLease. Palmer Leasing Group has been a PacLease franchise since 1981. “It’s an honor for our team to receive this Franchise of the Year award for 2019,” said Mark Fritcha, Palmer Leasing Group’s general manager. “We work hard to be good business partners with our customers in Indiana, Ohio, Kentucky and Illinois. I am privileged to lead our team and have the support of our owners and senior management team.” Palmer Leasing Group is a full-service lease and rental provider of Kenworth commercial trucks, as well as a contract maintenance provider for all makes of trucks and trailers. The team consists of nearly 100 employees from across Indiana, Ohio, Kentucky and Illinois. During the past several years, Palmer Leasing Group has expanded to meet the needs of the commercial truck market across the region. Beginning in 2021, the new Kenworth of Indianapolis-East facility will continue that pattern of growth. “We continue to innovate and offer new opportunities to our Palmer-Kenworth clients, utilizing the latest technology alongside the award-winning Kenworth product portfolio to meet the market’s fluctuations day-in and day-out,” Fritch said.

WIT names 2020 top companies for women to work for in transportation

The Trucker News Staff - October 9, 2020

PLOVER, Wis. — The Women In Trucking Association’s (WIT) Redefining the Road magazine on Oct. 2 released the association’s 2020 list of top companies for women to work for in transportation. According to Ellen Voie, president and CEO of WIT, the magazine created the award in 2018 to promote the accomplishments of companies that are focused on employing women in the trucking industry. Brian Everett, publisher of the magazine, said the companies recognized on the list are distinguished by several key features, including corporate cultures that foster gender diversity, competitive compensation and benefits, flexible hours and work requirements, professional development opportunities, and career advancement opportunities. “This is the third year for this award, which is largely driven by the marketplace,” Everett said. “The sheer number of individuals in the industry who participated in the process underscores the importance practitioners in the industry place on this award.” More than 13,000 votes were cast to identify the companies named to the list. The companies represent a diverse range of business sectors in the commercial freight transportation marketplace, including motor carriers, third-party logistics companies and original equipment manufacturers. These companies will be recognized at the upcoming virtual WIT Accelerate! Conference & Expo Nov. 12-13. Tennessee-based Averitt Express is one of the companies noted on the list. Elise Leeson, vice president of human resources for Averitt, said the company works hard to provide women drivers with safety and service on the road. “This recognition is very important to us at Averitt because we value our professional women in transportation so highly. It’s a priority for us to provide outstanding careers for women in trucking that offer a good living, room to grow and a supportive company atmosphere,” she said. “We have hundreds of safe, clean, convenient service centers throughout 21 states to make sure our women drivers can park safely nearly anywhere their route takes them.” PACCAR and Kenworth both made the list, along with Peterbilt. According to a statement from PACCAR, the corporation provides a number of resources for women in the industry, including a women’s association, diversity councils and specialized leadership training. “Kenworth has a strong commitment to provide and promote an environment of inclusivity and diversity in the workplace,” said Kevin Baney, vice president of PACCAR and general manager for Kenworth. “Our diversity program helps to foster a safe space for various perspectives and ideas. This empowers our employees to engage in dynamic discussions about the company’s innovative products, corporate culture and global business.” Another company on the list, Palmer Trucking, based in Indianapolis, employs about 80 women, including Donna Woodson, who serves as the company’s corporate training coordinator. “I stand by our core values, and believe the company does as well, to create a safe and welcoming environment for all. Talent is recognized, and team members inclusive of women are promoted from within,” Woodson said. “The family atmosphere, respect for all amongst the team, and fairness shown to each other make Palmer Trucks a truly wonderful place to work. I’m thankful to call this organization my home.” Also noted as a top employer of women by Forbes, Florida-based Ryder System Inc. has more than 1,300 women serving in leadership roles throughout the U.S. and Canada. “Embracing diversity of every kind is at the heart of Ryder’s culture, and we have seen the tremendous value of having diversity across every part of our business,” said Karen Jones, Ryder’s chief marketing officer. “Ryder is proud to be a company that values the impact that women have in our industry and we remain committed to fostering a culture of diversity and inclusion among all our employees. While there is always more work to be done, we are proud of what we have accomplished with advancing more women in the ranks of Ryder.” Kansas-based YRC Worldwide (YRCW) made the list for the third consecutive year. According to a company statement, YRCW actively seeks to attract and promote top female talent in a variety of roles within the company. “We are incredibly honored to see YRCW awarded the ‘Top Companies for Women to Work for in Transportation’ honor again from the Women In Trucking Association,” said Darren Hawkins, CEO of YRCW. “This is truly an accomplishment to celebrate company-wide and is an opportunity to recognize the incredible dedication and values of our employees and our leaders. They are the ones responsible for YRCW earning an award like this.” Other companies named to WIT’s 2020 “Top Companies for Women to Work for in Transportation” list include, in alphabetical order: AGT Global Logistics, American Central Transport, Aria Logistics LLC, Artur Express Inc., Auction Transport Services, B.R. Williams Trucking Inc., Bennett International Group LLC, Big M Transportation, Booster Fuel, Boyle Transportation, Brenny Transportation Inc., CalArk International Inc., Carbon Express Inc., Cargo Transporters Inc., Carter Express Inc., Carvana, Centerline Drivers, Certified Express Inc., CFI – Contract Freighters Inc., Clean Harbors, Cumberland International Trucks Inc., Day & Ross, Dedicated Systems Inc., Dot Transportation Inc., Dupré Logistics, Dynacraft (A PACCAR Co.), Epes Transport System LLC, EROAD, Estes Express Lines, FedEx Freight, Fifth Wheel Freight, Frito-Lay, Garner Trucking, Gulf Relay LLC, Herc Rentals Inc., J.B. Hunt Transport Services Inc., JF Moran, JR Kays Trucking Inc., JX Enterprises, Kenco, Knichel Logistics, Landstar System Inc., Matheson Trucking, May Trucking Company, McLeod Software, Michelin North America, NAPA Transportation Inc., National Carriers, Inc., Navajo Express, NFI Industries, Odyssey Logistics & Technology, Old Dominion Freight Line, Omnitracs LLC, OTR Capital LLC, Peach State Truck Centers, Penske Transportation Solutions, PGT Trucking Inc., Prime Inc., ReedTMS Logistics Inc., Rihm Family Companies, Riverside Transport Inc., Roehl Transport, RPM, Schneider, Sunrise Transport Inc., Sunset Transportation Inc., Total Transportation of Mississippi, Trailer Transit, Transfix, Transplace, Transport America, Transport Services Inc., Trimac Transportation Inc., Trimble, Tri-National Inc., Trinity Logistics Inc., Truckstop.com, U.S. Xpress, US AutoLogistics, Volvo Group North America, Wal-Mart Transportation, Waste Management and Werner Enterprises.

Consumer product levels on the rise, but other freight sectors still short

Cliff Abbott - October 5, 2020

Overall, the amount of available freight rose again in August, along with the rates paid to haul it. It’s gotten so good that carriers are complaining about the driver shortage again. However, each carrier’s experience can be different, depending on the type of freight and the company’s dependence on spot rates. Member carriers of the American Trucking Associations (ATA) reported in August that freight levels are down. The ATA For-Hire Truck Tonnage Index dropped 5.6% in August to 107.5 after declining 1.4% in July. The ATA Index uses 2015 data as a baseline, so the 107.5 Index (seasonally adjusted) was 7.5% higher than in 2015, but is trending downward. Bob Costello, chief economist for ATA, attributed the decline to “uneven freight,” explaining, “The trucking sectors that haul for the industrial and energy industries are not seeing the surge in freight like the consumer side of the economy. The industrial loads tend to be heavier, so they count more in a tonnage calculation than most consumer-related loads.” It should be noted that ATA often revises its index, as more carrier data comes in after the original deadline. For example, ATA originally reported that the July Index represented a 5.1% decline from June numbers. In the latest release, however, ATA announced that the decline had been adjusted to just 1.4%. Compared to last year, the ATA index was 8.9% lower than it was in August 2019. For the year to date, the ATA index is down 3.4% from last year’s pace. Another reason for the decline in freight hauled by ATA members is that many of them depend on a steady flow of new drivers from CDL schools to keep their trucks seated — and many of the CDL schools are either closed or activities are curtailed by social-distancing requirements due to COVID-19. At the same time, drivers leaving the industry after being laid off or furloughed don’t always return, and some older drivers have chosen to retire rather than deal with issues brought about by the pandemic. The For-Hire Trucking Index compiled by industry analyst and forecaster ACT Research shows a different trend. The August data showed ongoing volume and rate surges, with a component showing that driver availability deteriorated. The ACT index is based on the number 50, which represents flat activity, or no change. Anything higher than 50 represents growth, while a number less than 50 shows contraction. The ACT volume index for August rose to 67.9, a considerable jump from July data. Rates also leaped, with the rate index reaching a new two-year high at 66.4. Tim Denoyer, vice president and senior analyst for ACT Research (actresearch.net), called the driver shortage “acute,” and said he expected driver pay to start rising to counteract the shortage. “This process takes time,” he cautioned. “Meanwhile, the acute tightness of the past few months isn’t likely to ease much.” Cass Information Systems (cassinfo.com) publishes an index of its own that’s based on transportation invoices processed through the company’s services. The Cass Freight Index (CFI) for shipments measures total shipments in trucking, rail, pipeline, ship, barge, air and other methods, and is more of an indicator of production as a whole versus truck transportation. The CFI for shipping in August was 1.099, an increase of 8% from the July index of 1.018. Compared to August 2019, when the index totaled 1.190, shipments were down 7.6% Cass has been reporting increased shipments at West Coast ports, helping bolster both trucking and rail shipments. Perhaps the most positive news on the freight market is that rates are still climbing. Spot rates, more volatile than contracted rates, are experiencing their longest continuous rally in five years, according to DAT (dat.com). The firm reported national average van per-mile rates for August of $2.22 per mile, up 8.8% from the July average of $2.04. Refrigerated rates averaged $2.44, up 6.1% from July, while flatbed national average rates of $2.29 per mile were up 4.1%. All three categories continued to rise in September. A primary driver of the increased spot rates is that load-to-truck ratios continue their upward trajectory. In August, DAT reported that the van load-to-truck ratio had risen 20.8% compared to July and a whopping 135.4% compared to August 2019. Refrigerated loads had similar results, rising 6% over July and 108.3% compared to August 2019. Flatbed showed the largest increase in load-to-truck numbers, rising 9.6% from July — and 165.1% over the August 2019 ratio. The DAT “Trendlines” report credits supply-chain disruptions for pushing truckload shipments to the spot market. As we saw earlier, however, the difficulty of seating trucks due to the lack of driver availability has kept some carriers from accepting offered loads, pushing them to the spot market. Contract rates are expected to follow spot rates in upward movement, but there’s a caveat: Shippers are showing a reluctance to renew long-term freight contracts, fearing a repeat of the April and May scenario, when spot rates fell below contract rates. Shippers, locked into higher contract rates, weren’t able to take advantage of low spot market rates. The situation is reversed, for now, with contract rates not rising as quickly, but shippers are wary. “This month, feedback from carriers suggests that ‘mini-bids’ may shorten the lag between spot and contract rates in the coming months,” ACT’s Denoyer elaborated. He’s referring to an industry trend of signing shorter-term contracts with carriers that allow shippers to either renew the contracts or leave them for the more favorable spot rate market, depending on rate trends. As we enter the final months of the tumultuous year of 2020, eyes are on Washington, watching for news of the next stimulus bill as well as the leadership direction the country will be taking into 2021.

ATA predicts U.S. freight volumes will increase by 36% during next decade

The Trucker News Staff - October 2, 2020

ARLINGTON, Va. — Despite contraction during 2020, the long-term trend for both trucking and overall freight shipments remains positive, according to the American Trucking Associations’ (ATA) latest Freight Transportation Forecast: 2020 to 2013, released Sept. 28. The annual forecast is conducted by IHS Markit. “The COVID-19 pandemic has had an unprecedented impact on many parts of the economy and trucking is no exception,” said Bob Costello, chief economist for ATA. “However, despite significant contractions in 2020, the forecast makes it clear that the long-term trend for trucking, as well as for the overall freight economy is positive.” Among the findings in this year’s freight forecast: Total freight volumes in 2020 are likely to collapse by 10.6% to 14.6 billion tons, although truck freight volumes fall a smaller 8.8%. Trucking volumes are expected to rebound in 2021, rising 4.9% next year and then growing 3.2% per year on average through 2026. Overall freight revenues in 2020 will total $879 billion, rising to $1.435 trillion in 2031. “(The) Freight Forecast provides a roadmap for where our industry, as well as all modes of freight transportation, are going — which is why you can find it on the desks of industry executives and policymakers around the world,” Costello said.