Business

One of the most difficult things about owning and operating a small trucking business is cash flow. Company drivers and owner-operators who are leased to carriers benefit from a regular settlement check. Whether the cash comes weekly, bi-weekly, monthly or on some other schedule, it arrives somewhat regularly. Owner-operators who have their own customers don’t get that benefit. They often wait 30, 60, 90 days or more for payment to arrive from their customers. While they wait, the bills keep coming, the fuel tank needs filling and the other expenses of operating a trucking business continue unabated. That’s where factoring can make a major difference. “There has never been a more important time to take advantage of factoring,” said Jennifer Lickteig, president and CEO of TBS Factoring Services. “A factor provides cash flow on a regular basis.” According to Lickteig, the economic turmoil caused by businesses around the world shutting down for the COVID-19 pandemic has had a severe impact on payment for services such as trucking. “The pandemic is causing business failures, and those that stay in business, their credit lines might be suffering,” she explained. “Some are experiencing longer cycle times, meaning the owner-operator has to have more cash to continue operating until the customer or broker pays.” Factoring services like TBS pay the owner-operator for loads hauled, taking on the responsibility of billing the customer and collecting. For these services, the factor keeps a small percentage of the load revenue. “The primary service is to act as the owner-operator’s billing and collections representative,” Lickteig explained. “We’ll calculate and mail the invoice and follow up with any collections activity necessary.” Lickteig is straightforward about the use of a factoring service. “I’ll tell you first that the best scenario is to not need the factor,” she said. “If you do have sufficient funding to keep your business operating without a factor, that’s good.” Keeping as much revenue as possible in the business is a best practice, but the amount of money lost by unpaid invoices can cause serious damage. There are two main types of factoring, broken down by how much responsibility the owner-operator is willing to accept. “Recourse” factoring means that the factor can ask the owner-operator to pay back cash received if the factor can’t collect from the customer. In “nonrecourse” factoring, the factor pays the owner-operator and assumes all responsibility for collection. If the customer doesn’t pay, the factor loses out, not the trucker. “When you use [TBS] services, we’re going to pay you, even if we don’t get paid, and we’re not going to come back and ask you to pay it back,” Lickteig said. One thing to look for in a factor is whether the service allows “spot” factoring. Some factoring services require the owner-operator to turn over collection of every load hauled. TBS allows its clients to factor some while keeping others, according to Lickteig. “If you have a customer that you know pays within, say, six days, why would you want to factor that?” she asked. Ancillary services offered by factoring companies add more value to the service. Checking the credit of a potential customer or broker can be critical. Lickteig said TBS provides free credit checking to its clients, helping ensure they are doing business with customers that have a solid reputation for paying. TBS also offers fuel cards with discounted fuel pricing and services such as tax information and even guidance applying for a COVID-19 stimulus payment. While those services are helpful, “the main reason for someone to use us is cash flow,” said Lickteig. The difficult economic climate caused by COVID-19 leads some truck owners to take financial risks they otherwise wouldn’t, and that’s another area where a factor can help. “A common practice we’re seeing is owner-operators using high-interest credit cards to pay for fuel and operating expenses,” Lickteig explained. “If you’re relying on credit cards right now, something is broken in the cash flow process.” For many, it may make more sense to sacrifice a small percentage of load revenue to obtain cash, using that to operate rather than credit cards with much higher interest rates. Lickteig cautioned against another operating pitfall, merchant cash advances (MCAs). “It’s an alternative lending scheme that I consider a predatory financial platform,” she said. MCAs are often advertised using terms like “get cash now” or “same day cash.” They’re a source of fast operating money — at a cost that can be crippling. Many require access to bank accounts and debit cards, so that lenders can make sure they are paid first. If the money isn’t there, fines and fees start adding up and interest rates are hiked. The situation can become hopeless in a short amount of time. Lickteig suggests that owner-operators ask for assistance from their factors in such situations. “If you need cash, call your factor and ask them to help you before you take on an MCA,” she said, adding, “We work with a partner that manages workout programs to get drivers out of those debts.” Most factoring services can help when unexpected expenses arise, too. For example, TBS “also provides a no-interest solution for business needs like engine repairs or an insurance renewal, if the client has a good record and can provide the documentation we need,” Lickteig explained. “We don’t charge any interest and we’ll spread the repayment out on a mutually agreed upon schedule.” Some factoring services won’t go so far as to help out with a loan, but Lickteig said most factors know that things can happen. “We understand that if the driver can’t drive, they can’t factor with us,” she said. “We’ll work with a lot of conditions that other factors would turn away from.” In addition to encouraging owner- operators to employ a factoring service when needed, Lickteig had one more message. “I want to say thank you to the drivers for what you do,” she said. “Everything we enjoy about our daily lives is due to truck drivers.” When it comes to keeping the business operating, factoring services can be an important ally.

PORTLAND, Maine — WEX, a provider of financial technology services, recently notified its trucking customers that they now have access to WEX’s fuel discount network. Through the fuel discount network, participating WEX merchants offer savings on truck fuel purchases at thousands of participating locations across the U.S. The network, part of WEX’s new WEX EDGE business savings network, helps reduce costs for trucking companies as they continue to make deliveries during the COVID-19 pandemic. “We know how challenging these times are for many businesses,” said Tim Hampton, senior vice president and general manager of WEX’s over-the-road business. “We’re thrilled our merchant partners came together to offer this discount network to our trucking customers who are providing such a critical service by continuing to deliver goods and services to all of us right now.” WEX EDGE, launched in May, is a business savings network designed to provide small businesses with savings offers that are typically only available to larger companies. Through the network, businesses can purchase products and services at discounted prices, using their existing WEX fuel account to pay for these services.

As expected, May freight level reports were mixed, with some showing improvement over April and some remaining near April’s dismal levels. The American Trucking Associations (ATA) For-Hire-Trucking Index actually fell a percentage point in May, following a 10.3% drop in April. The May Index was 106.1. The ATA calculates its index using data from 2015 as a baseline. A score of 106.1 means freight levels reported by ATA members were 6.1% higher than the 2015 average. While that would appear to be a good thing, it’s important to note that the May index for 2020 was 9.6% lower than what was recorded for May 2019. For the year to date, including pre-COVID-19 months of January through March, tonnage was down 2.6% compared to the same period of 2019. While tonnage fell in May, even though other economic indicators such as retail sales and housing starts rose, Bob Costello, ATA chief economist, said he is not “overly concerned.” “First, while down over 10% sequentially in April, truck tonnage did not fall as much as other economic indicators that month,” he explained. “This means that any rebound is tougher since tonnage didn’t fall substantially to begin with. Second, there are indications that freight continues to improve as more and more states and localities lift lockdown restrictions.” New restrictions being announced to combat a resurgence of COVID-19 could have a negative impact on tonnage, but the amount is hard to predict. The For-Hire Trucking Index published by ACT Research showed a different result, with significant improvements. In the ACT index, 50 represents neutral movement in the market. Higher is good; lower represents declines. The May ACT index came in at 50.2 — not spectacular, but certainly an improvement over the April volume index, which was 30.9 points lower. “After the worst reading in survey history in April, the Volume Index increased 30.9 points in the largest month-over-month increase in survey history in May,” said Tim Denoyer, vice president and senior analyst at ACT Research. “While we’d characterize this as neutral territory, and it may be supported by inventory rebuilding following the draw-down in March and April, it is nonetheless a much more stable volume environment.” The Cass Freight Index, which includes shipments moving by rail, air, pipeline, ship and more, came in at 0.938. The shipments index grew by 1.6% from April but was still 23.6% beneath May 2019 numbers. “We are now close to 80% through the second quarter of 2020, and we see volumes down double-digits for most carriers across most modes in the U.S., including truckload, LTL, intermodal, and rail,” the Cass report noted. As the economy reopens and freight volumes begin to rebound, many truckers are keeping an eye on rates. Low freight volumes have increased the competition for available loads, driving rates downward and causing some owners to park their trucks and spurring other owner-operators to protests in Washington, D.C., and elsewhere. The good news is that freight rates are coming back — but they still have a way to go before reaching pre-COVID-19 levels. Rates were already experiencing downward pressure earlier this year due to excess capacity in the marketplace when declines were accelerated by the slowdown of imports from Asia, followed by manufacturing shutdowns in the U.S. As June came to an end, DAT Services reported spot rate increases across the board. Van spot rates gained 6.7%, reaching an average of $1.79 per mile compared to the May average of $1.60. Flatbed rates rose, too, reaching an average of $2.06 per mile for June compared to May’s $1.90. Reefer rates rose for the second consecutive month, responding to harvest time for early produce. The June average of $2.14 was 12 cents per mile higher than May’s $2.02 and 21 cents above the April average of $1.93 per mile. Fuel prices remained well below where they were a year ago, in many cases 60 cents or more. Fuel-price declines, however, are somewhat offset by reductions in paid fuel surcharges, sometimes negating the benefit to the carrier. Overall, DAT reported that truck postings on its board were down 3.6% from the prior month while load posts grew by 16.2% Part of this is due to carriers that were using the spot market to make up for contract freight lost from their customers but are now leaving the spot market. Cass Freight Systems, in its index report, said, “We believe the spot market (as well as the contract market) has bottomed and that the rebound in rates will depend on the strength of the recovery coupled with the pinch of industry supply from factors besides just truck production, such as rising insurance costs and limited driver supply.” FTR’s June 30 “Monday Morning Coffee” blog by Michael Starks noted that some states were imposing business restrictions in response to a surge in coronavirus cases. The previous Friday, average stock prices fell in response to the news. “With new cases of COVID-19 cases rising,” Starks wrote, “few businesses will want to expand operations and there are risks of localized restrictions being put back in place.” Starks noted that more than a million people are still applying for unemployment benefits each week. Personal income fell 4.2% in May, but that was expected since the April personal income figures included government stimulus checks. Starks said the U.S. economy may not get fully rolling until a vaccine for the coronavirus is widely available. ACT Research’s Tim Denoyer may have summed it up best. “In short, given the magnitude of the economic shock from the pandemic, the road back might be a long one,” Denoyer said. ACT President and Senior Analyst Kenny Vieth was cautiously optimistic in a June 25 blog entry. “We continue to anticipate a transition into a slow recovery, that will gain speed as we proceed through the second half of this year and into 2021, with the caveat that there are still many unanswered questions about the trajectory of the virus and the impending recovery,” Vieth said. As truckers attempt to stay above the waterline, better days are coming. How much better — and how long the wait will be — will likely be determined by a virus and the reaction to it.

OKLAHOMA CITY — Love’s Financial, a member of the Love’s Family of Companies, announced July 1 that it has acquired two freight factoring companies: Vero Business Capital of Memphis, Tennessee, and Foley Business Capital of Omaha, Nebraska. “We’re excited to welcome Vero and Foley and their customers to the Love’s Family of Companies,” said Shane Wharton, president of Love’s. “This transaction aligns with our strategic vision of growing our financial services business,” Wharton continued. “We look forward to continuing the Vero and Foley commitment to serving their customers with value-added factoring services while combining that commitment with the entire suite of Love’s products and services.” Loves operates a nationwide network of travel stops with more than 520 locations and 390 truck service centers, including Love’s Truck Care and Speedco. Through its financial services company, Love’s Financial, the company provides recourse and nonrecourse freight factoring solutions in addition to other services for customers, such as fuel and tire discounts, My Love Rewards points and no-fee credit lines on Love’s Express for fuel, tires, maintenance, cash advances and in-store purchases. For more information about Love’s Financial, click here.

COLUMBUS, Ind. — According to the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research, used Class 8 same dealer sales volumes dropped 12% month over month in May, with longer-term sales down 20% year over year compared to May 2019. Year-to-date sales through May are up an incremental 2%. The report also indicates that used Class 8 average price and miles rose from April’s levels, up 2% and 1%, respectively, with average age 1% lower than the previous month. Longer term, average price, miles and age all contracted year over year, as well as year to date, down respectively from the first five months of 2019 by 16%, 2%, and 6%. “Dealers are reporting that low used truck prices and high inventories were challenges before COVID-19 struck and they continue to be an issue,” said Kenny Vieth, president and senior analyst at ACT Research. He continued, “The upside for people buying trucks is that there are bargains available.” ACT’s State of the Industry: U.S. Classes 3-8 Used Trucks report provides data on the average selling price, miles and age based on a sample of industry data. In addition, the report provides the average selling price for top-selling Class 8 models for each of the major truck OEMs: Freightliner (Daimler); Kenworth and Peterbilt (Paccar); International (Navistar); and Volvo and Mack (Volvo). This report is used by those throughout the industry, including commercial vehicle dealers, to gain a better understanding of the used truck market, especially as it relates to changes in near-term performance. “Not surprisingly, most sales reps are reporting their business as much slower now than in early March, with some saying they are doing well with dump trucks and other vocational truck types, while aerodynamic sleepers continue to be grossly oversupplied,” Vieth said.

COLUMBUS, Ind. — While the shockwaves of the COVID-19 recession continue to depress both the North American and global economies, ACT Research’s recently released Transportation and Commercial Vehicle Dealer digests show signs of recovery. The reports, which combine proprietary ACT data and analysis from a variety of sources, paint a comprehensive picture of trends impacting transportation and commercial vehicle markets. The monthly report serves 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.’s macro economy. Transportation Digest According to ACT’s Transportation Digest, June marked the fourth month of what will go down in the record books as the most severe business cycle downturn since the Great Depression. The report noted that the extent of the shock was a near total surprise to businesses and forecasters in the months of March and April. “In February, when the impact of the coronavirus was still viewed skeptically, ACT Research anticipated a 33% drop in Class 8 North American retail sales in 2020, but of course that worsened as the full impact of the virus began to reveal itself,” said Kenny Vieth, ACT’s president and senior analyst. “The impact of COVID-19 was to take a flattish economy and push it over the cliff.” At the onset of the COVID-19 crisis, freight surged as stay-at-home orders created a rush on food items, common household supplies and technological products needed to work from home. The delivery of much-needed medical supplies also spurred a growth in freight during March. “As the recession tightened its grip, April marked the low point for freight, with daily indicators on loads, tender volumes and freight rates hitting bottom,” he continued. “That said, even as high-level macro indicators, like employment and industrial production, showed decline, freight started to recover in late April and into May, reflecting the nascent revival of supply chain activity. These same daily indicators showed improvement and growing momentum all through May.” Vieth said he remains cautiously optimistic that there is an end in sight economically. “We continue to anticipate a transition into a slow recovery, that will gain speed as we proceed through the second half of this year and into 2021, with the caveat that there are still many unanswered questions about the trajectory of the virus and the impending recovery,” he added. Commercial Vehicle Dealer Digest ACT Research’s Commercial Vehicle Dealer Digest showed a marked improvement compared to a month ago. This change could be attributed to the reopening that is under way in most states. “The reopenings that have been occurring since late April represent the first steps in the march toward economy recovery and green shoots are sprouting thanks to massive stimulus from Congress and the Federal Reserve,” said Vieth said. “Despite that investment, which is helping to put the economy back on track, the pandemic remains a ticking clock for many Americans whose unemployment benefits will start expiring in September.” Vieth said he expects the economy to expand rapidly in 2021, continuing the forward momentum the commercial vehicle industry is now seeing. “Demand recovery beyond replacement levels is a process that takes quarters to achieve. We see the economy expanding rapidly in 2021, creating an imbalance between effective capacity, the ability to get drivers back into seats in real-time, and freight demand,” Vieth said. “When that imbalance comes, it will be the match that lights the long fuse on a meaningful volume recovery,” he continued. “At that point, on top of market-driven demand, short-trade cycle fleets will have considerable pent-up replacement demand. That replacement activity will be supported by strong demand for desirably-spec’d late-model vehicles.” Vieth also noted that the current economic crisis is unlike those previously faced by the global community. “While it is hard to see silver linings presently, we note that this economic downturn was not triggered by the usual supply and demand considerations, bubbles, financial issues, etc., but by a disease,” he said. “Coupling an otherwise structurally-sound pre-COVID economy, with strong Federal Reserve and Congressional support, and rising pent-up demand, there is a case to be made that the economy will respond strongly into 2021,” Vieth said, concluding, “We believe that the maturing millennials will be the key to pushing the economy forward as they resume their transition to marriage, kids, and mortgages.”

Arlington, Va. — American Trucking Associations’ (ATA) advanced seasonally adjusted For-Hire Truck Tonnage Index contracted 1% in May after falling 10.3% in April. In May, the index equaled 106.1 (2015=100) compared with 107.2 in April. “While tonnage fell in May, even though other economic indicators like retail sales and housing starts rose, I’m not overly concerned,” said Bob Costello, chief economist for ATA. “First, while down over 10% sequentially in April, truck tonnage did not fall as much as other economic indicators that month,” he said. “This means that any rebound is tougher since tonnage didn’t fall substantially to begin with. Second, there are indications that freight continues to improve as more and more states and localities lift lockdown restrictions.” Compared to May 2019, the seasonally adjusted index contracted 9.6%, the largest year-over-year decline since 2009 during the depths of the Great Recession, although the index is not falling quite as much as during that economic downturn. For example, in April 2009, the index was off 14% from a year earlier. The latest drop was preceded by a 9.4% year-over-year drop in April. Year to date, compared with the same period in 2019, tonnage is down 2.6%. “While the overall economy will likely take more than a year to recover, assuming the pandemic doesn’t spike again, the trucking industry could recover back to pre-COVID levels before many other industries because it hasn’t fallen as much,” Costello said. “As retail sales improve and housing starts recover, that will help trucking. The risk for trucking is that the virus surges again and places start to shut back down again.” The not-seasonally adjusted index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment, equaled 109.8 in May, 2.8% above the April level (106.9). 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 71.4% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled 11.49 billion tons of freight in 2018. Motor carriers collected $796.7 billion, or 80.3% of total revenue earned by all transport modes. ATA calculates the tonnage index based on surveys from its membership. The figures noted above are preliminary and are subject to change in the final report, which will be issued around July 5. The report includes month-to-month and year-over-year results, relevant economic comparisons and key financial indicators.

NORTH LAS VEGAS, Nev. — Kenworth Sales Company-Las Vegas, a full-service dealership, has relocated to a larger, newly constructed facility to meet increasing Kenworth customer demands due to residential and commercial growth in the greater Las Vegas area. The 67,000-square-foot facility features a 27,500-square-foot service department with 26 service bays and two-hour truck diagnosis through Kenworth PremierCare ExpressLane; 24-hour towing service is available. The 3,300-square-foot visual parts display is supported by a large, fully stocked parts warehouse that offers ample inventory. In addition, the new facility features an indoor truck showroom and a comfortable lounge for drivers, indoor truck showroom. There is also a fuel island on site that is available to customers and the general public. “As Kenworth Sales Company celebrates its 75th anniversary as a commercial truck dealer, it’s fitting that we’re moving our Las Vegas dealership to a brand-new facility that will better serve our customers operating in the surrounding Las Vegas area,” said Kyle Treadway, Kenworth Sales Company president. “Our new state-of-the-art facility is nearly four times larger than our previous location and offers more than double the number of service bays, which will assist our efforts in maximizing uptime for our customers, while providing a better overall experience for those who visit the dealership.” Kenworth Sales Company-Las Vegas is now located at 4830 Donovan Way in North Las Vegas, approximately 3.5 miles from the old location. The new dealership is on an 18-acre site and is highly visible and accessible from Interstate 15, a major trucking route that connects Las Vegas and Los Angeles. Kenworth Sales Company, founded in 1945, operates a total of 23 locations in Idaho, Montana, Nevada, Oregon, Utah, Washington and Wyoming.

COLUMBUS, Ind. — May net U.S. trailer orders of 3,107 units were a significant improvement from April, but net orders remain below May 2019’s level, down 71%. Before accounting for cancellations, new orders of 7.4k units for May were up 29% compared to April, according to this month’s issue of ACT Research’s State of the Industry: U.S. Trailer Report. ACT’s U.S. Trailers report provides a monthly review of the current U.S. trailer market statistics, as well as trailer OEM build plans and market indicators divided by all major trailer types, including backlogs, build, inventory, new orders, cancellations, net orders and factory shipments. “Although up from April’s record low, May’s net orders will still rank as the second weakest in industry history. There is little incentive for fleets to invest in new equipment right now,” said Frank Maly, director of commercial-vehicle transportation analysis and research at ACT Research. “While there has been a general reopening of the U.S. economy and some post-quarantine consumer-generated surges have been reported, caution continues to be the watchword,” he continued. “Significant apprehension is being expressed about small-to-medium fleets, and the concern is that the PPP lifelines many may have grasped will run out before a post-lockdown economy generates freight at sufficient volumes and profitable rates, which will have serious implications for both trailer OEMs and dealers.”

OVERLAND PARK, Kan. —YRC Freight has been named National LTL Carrier of the Year for 2019 by the National Shippers Strategic Transportation Council (NASSTRAC). This marks the fifth time YRC Freight has earned the honor. Through its annual Carrier of the Year awards program, NASSTRAC recognizes carriers that demonstrate excellence in transportation, and at the same time helps shippers identify the best of the best in carrier performance and value. YRC Freight’s selection for this award indicates the carrier’s focus on providing superior LTL freight services. “It’s truly an honor when a customer spotlights a job well done with ‘Carrier of the Year’ recognition,” said Jason Bergman, YRC Worldwide’s chief customer officer and President of HNRY Logistics. “It’s especially humbling when our transportation and logistics peers in NASSTRAC award our superior customer service.” YRC Freight also earned NASSTRAC’s Carrier of the Year title in 2018, 2017, 2012 and 2009. NASSTRAC selects recipients for its annual awards based on an online survey of association members, who were asked to rank carriers in five key areas of performance — customer service; operational excellence; delivery flexibility, billing accuracy and claims resolution; business relationship effectiveness; and technology leadership. YRC Freight was also recognized by Women In Trucking as a Top Company for Women to Work for in Transportation for 2019 and was noted as a Top 100 Trucker by Inbound Logistics magazine. In addition, YRC Freight was recognized as GlobalTranz 2019 Carrier of the Year, Cross-Border LTL; DICK’s Sporting Goods Carrier of the Year; and Freight Center Diamond Partner of the Year.

COLUMBUS, Ind. — According to ACT Research’s latest State of the Industry: NA Classes 5-8 Report, the economy continues to reopen with some very big numbers being reported on easy comparisons, after falling sharply the past few months. The report provides a monthly look at the current production, sales and general state of the on-road heavy- and medium-duty commercial vehicle markets in North America. It differentiates market indicators by Class 5, Classes 6-7 chassis and Class 8 trucks and tractors, detailing measures such as backlog, build, inventory, new orders, cancellations, net orders and retail sales. Additionally, Class 5 and Classes 6-7 are segmented by trucks, buses, RVs and step van configurations, while Class 8 is segmented by trucks and tractors with and without sleeper cabs. The report includes a six-month industry build plan, backlog timing analysis, historical data from 1996 to the present in spreadsheet format, and a ready-to-use graph package. A first look at preliminary net orders is also published in conjunction with the report. “Hand in hand with the reopening, states across the country continue to reach new highs for COVID-19 cases. While we do not anticipate shutdowns á la April, the reacceleration in cases around the country is a reminder that the economic recovery currently underway is thin and heavily subsidized,” said Kenny Vieth, ACT Research’s president and senior analyst. “The pandemic’s stamp can be seen across May’s commercial vehicle statistics, with tepid Class 8 order activity, soft production, and falling sales that illustrate weakness from the beginning to the end of the demand spectrum.” Vieth said that despite May’s improvements, sales and build for commercial vehicles remained far behind figures recorded in May 2019.

MIAMI — Ryder System Inc., a provider in supply chain, dedicated transportation and commercial fleet management solutions, recently announced its 100,000 ride using Uber for Business. By integrating directly into Uber for Business’ application programming interface, Ryder can request, manage and pay monthly for rides for its customers and employees at scale while providing an enhanced customer experience. Since the Ryder’s partnership with Uber for Business in August 2018, rental, service and maintenance managers at Ryder in the U.S. and Canada have used Uber for Business to access transportation for drivers and technicians to and from both Ryder and customer locations, resulting in less customer downtime and a predictable cost per mile structure. “Surpassing 100,000 rides through Uber for Business is a testament to the value this partnership has offered our customers,” said Rich Mohr, chief technology officer for Ryder’s fleet management solutions business. “From improving routing, planning and productivity to decreasing fuel costs and downtime, the platform has provided a customer-centric approach to modern commercial transportation services. We’re looking forward to deepening our partnership with Uber for Business to meet the evolving needs of our customers.” The deployment of Uber for Business has improved the overall efficiency of Ryder’s operations. Through this partnership, Ryder has gained critical insights, such as the average time and distance of each ride, enabling the company to better allocate staff time and resources and be more flexible in meeting customer demands. “Customer experiences matter more than ever right now. We’re incredibly proud of our partnership with Ryder, and the advancements we’ve been able to make in terms of maximizing efficiency and delivering the best possible guest experience,” said Ronnie Gurion, global head of Uber for Business. “This milestone represents a significant technical achievement for Uber’s enterprise capabilities as we continue to rapidly innovate in order to help move what matters.” Ryder customers who ride with Uber for Business do not need to have an Uber account or install the Uber app on their phones to use the service; Ryder directly coordinates the details on behalf of riders via Uber for Business. Uber for Business allows Ryder to manage invoice and payment processes centrally and offers access to clear information on ride-level data to bill customers for specific rides or charge internal cost centers. Ryder can also identify opportunities to better manage pickup and delivery, as well as transportation of Ryder customers’ drivers to a replacement vehicle in situations when roadside assistance is needed, or to help with rental pickup and drop off.

ALEXANDRIA, Va. — Personnel changes are taking place at Transportation Intermediaries Association (TIA) as long-term president and CEO Robert Voltmann announces he is leaving the organization effective Sept. 30. Douglas G. Clark, current chair of TIA’s Legacy Committee and former chair of the board of directors, took the reigns as interim CEO, effective June 10. Voltmann joined TIA as CEO in June 1997. During his 23-year tenure, the organization’s annual budget multiplied by more than 10 times and now stands at $7.5 million. Membership in TIA more than tripled, and the organization now claims to represent nearly 80% of the broker market by value. In addition, Voltmann helped establish the TIA Political Action Committee to further the group’s lobbying efforts, and the TIA Foundation, which provides educational resources to members. The TIA Services Corp. provides insurance as well as legal guidelines, model contracts and best-practices advice. No announcement has been made about Voltmann’s future plans. Voltmann commented, “It is time for me to continue to change and grow myself by taking on a new challenge and for TIA to transition to a new leader.” Voltmann was the subject of much criticism from owner-operators and small business truckers recently as he issued a series of statements, some on video, defending brokers against allegations of price-gouging. Many were angered by his assertion that the carriers are actually to blame for low rates because they accept the rates. Also at issue was brokers’ evasion of the requirements of 49 CFR 371.3, which mandates that brokers disclose information about the load, including how much they were paid by the customer, when requested by any party to the transaction. Brokers have long avoided doing so by requiring carriers to waive their right to review the information in the contract and/or making review of the contract so difficult as to dissuade review. Truckers were incensed when Voltmann issued a letter to TIA’s membership, advising them to continue the practices. New interim CEO Doug Clark takes control as accusations of broker malfeasance continue to fester and investigations continue at the U.S. Department of Justice. In the release announcing Clark’s appointment, he had this to say: “As interim CEO, I am committed to continuing to support policies and strategies that expand our relationships, educate our members and most importantly support, the 3PL industry as a whole.” Clark, an honorary lifetime member of TIA, has served in multiple roles within the organization. He was also vice president of business development for the Allen Lund Co. until 2016, when he became a transportation consultant. Clark will serve as interim CEO while the TIA board searches for a permanent replacement.

BURBANK, Wash. — Volvo Trucks North America dealership Northwest Equipment Sales has expanded its operations through the opening of a new location near the Tri-Cities, a growing metropolitan area comprising the greater Kennewick, Richland and Pasco communities in southeast Washington State. The state-of-the-art facility, located at 171 Gateway Road in Burbank, Washington, marks the fourth overall site owned by the dealership. “Northwest Equipment Sales is a valuable part of the Volvo Trucks family, and we appreciate its dedication in supporting the success of our customers over the years,” said Jeff Lester, senior vice president of sales at Volvo Trucks North America. “The dealership’s investment in the Tri-Cities area will help to support overall economic growth at a time when it’s needed most.” The 30,000-square-foot facility, situated on 10 acres off U.S. 12, features four drive-through service bays and an end bay, and has the ability to accommodate up to 15 trucks. The dealership currently has eight service technicians and expects to have 18 employees total by the end of the year. The facility also offers $250,000 in parts inventory, with plans to increase that amount over the next few months. Construction at the Tri-Cities facility began in March 2019 but was suspended March 23, 2020, due to state restrictions as a result of the COVID-19 pandemic. However, the dealership was eventually deemed an essential business by the state of Washington, and construction resumed March 31. “We are pleased that we were able to move forward with opening our new facility in one of the fastest growing areas in Washington, despite the challenges created by COVID-19,” said Jesse Hibler, vice president of operations at Northwest Equipment Sales. “We look forward to continuing to deliver the highest level of customer service at all four of our locations.” Northwest Equipment Sales first opened its doors in 1981 in Twin Falls, Idaho, as a used-truck facility. Since then the company purchased a Volvo Trucks franchise and expanded to include locations in Boise, Idaho, in 1995 (also its corporate headquarters) and Hermiston, Oregon, in 2007. The dealership offers comprehensive transport solutions, including new/used trucks and trailers, as well as aftermarket parts and service, financing, leasing and rental. “The investment made by Northwest Equipment Sales in this modern facility, advanced service and diagnostics tools, and highly trained technicians will provide Volvo Trucks customers with a welcoming and professional state-of-the-art experience,” Lester said. For additional store information, click here.