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Participating merchants now offer fuel discount for truckers using WEX account

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.

Freight volumes, rates climbing back up, but progress is moving slowly

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.

Love’s Financial announces acquisition of Vero Business Capital, Foley Business Capital

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.

Treasury to loan $700 million to trucking company DOD sued in 2018

SILVER SPRING, Md. — A struggling trucking company once sued by the Department of Defense (DOD) is getting a $700 million loan from the U.S. government because the company “is critical to maintaining national security,” the Treasury Department said Wed., July 1. U.S. taxpayers will take a 29.6% stake in YRC Worldwide as a result of the deal, which was made as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The announcement by the Treasury Department did not mention that the DOD sued YRC in 2018 for overcharging the government for freight carrier services and making false statements. “This loan will enable a critical vendor to the Department of Defense to maintain significant employment while providing appropriate compensation to taxpayers,” said Steve Mnuchin, Treasury Secretary. The Treasury Department said the loan will enable YRC to maintain about 30,000 trucking jobs and continue to support the military supply chain and the transport of goods to more than 200,000 corporate customers in North America. The agreement requires YRC to maintain employment levels and limit executive compensation, dividends and share repurchases. The loan will be broken up into two payments, with the first $350 million going to cover short-term contractual obligations and pension and health care payments, YRC said. The second payment will be used to invest in tractors and trailers. Both loans are scheduled to be repaid by Sept. 30, 2024. Shares in the Overland Park, Kansas, company jumped nearly 70% to more than $3 after the announcement. YRC shares had lost nearly 90% of their value since early 2018, when they traded around $17.

Volume, age down for used-truck sales in May but price, miles up, ACT report shows

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.

Latest reports from ACT Research show COVID-19 impact continues but market shows signs of recovery

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.”

After April’s ‘worst reading in history,’ ACT’s May For-Hire Trucking Index rebounds to neutral territory

COLUMBUS, Ind. — The latest release of ACT’s For-Hire Trucking Index, with May data, showed significant improvement in all five diffusion index measures tracked. May’s Volume Index rose from 19.3 in April to 50.2, with capacity also at the neutral 50 mark, and pricing and productivity both in the mid-40 range. The ACT For-Hire Trucking Index is a monthly survey of for-hire trucking service providers. ACT Research converts responses into diffusion indexes, where the neutral or flat level is 50. “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 for 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.” May’s uptick in freight rates could signal the beginning of a return to “normal” for the industry. “The record 21.2-point recovery in May, also the largest month-over-month increase in survey history, to 43.0 means that despite effectively recovering all the ground lost in April, the pricing index remains in contraction territory,” Denoyer said. “And while still tentative, the trends of a strong rebound in freight volumes as a capacity tightening cycle has begun shows a bottoming process is well under way.” Denoyer also explored the overall picture for the trucking industry. “It may be difficult to discern from the chart, but the supply-demand equation rebalanced in May, returning to 50.2, from 26.9 in April, as recovering demand overwhelmed the more modest uptick in supply, and shrinking Class 8 retail sales suggest equipment capacity will continue to tighten, but with sidelined drivers likely coming back, and lenders extending loans, it may be a while before the market really tightens,” he said. “In short, given the magnitude of the economic shock from the pandemic, the road back might be a long one.” The ACT Freight Forecast provides forecasts for the direction of truck volumes and contract rates quarterly through 2020 with three years of annual forecasts for the truckload, less-than-truckload and intermodal segments of the transportation industry. For the truckload spot market, the report provides forecasts for the next 12 months. In 2019, the average accuracy of the report’s truckload spot rate forecasts was 98%. The ACT Research Freight Forecast uses equipment capacity modeling and the firm’s economics expertise to provide unprecedented visibility for the future of freight rates, helping businesses in transportation and logistics management plan for the future with confidence.

Jill Maschmeier awarded TCA’s 2020 safety professional of the year award

ALEXANDRIA, Va. — The Truckload Carriers Association (TCA) has named Jill Maschmeier, director of safety and compliance for National Carriers Inc., as the 2020 TCA Safety Professional of the Year – Clare C. Casey Award recipient. The announcement was made during TCA’s Virtual Safety & Security Meeting on Wednesday, June 24. This honor is bestowed upon a trucking-industry professional whose actions and achievements have made a profound contribution to enhancing safety on North America’s highways. “Jill’s motto is that every day we always can learn something that we can pass on to our co-workers and family,” shared Mike Rinehart, vice president of finance for National Carriers Inc, adding that the motto is especially true during the unprecedented COVID-19 global pandemic. “She is also working for education and safety awareness during the current COVID-19 crisis,” Rhinehart added. While Maschmeier had no prior safety or department of transportation experience before beginning her role as director of safety and compliance for National Carriers Inc. in 2000, Rhinehart said her work ethic has catapulted her into a knowledgeable safety expert. “National had an ‘unsatisfactory’ rating (when Maschmeier took the position), but within a year she invited the FMCSA back in and [we] earned a ‘satisfactory’ rating and a letter of recommendation from the DOT,” Rhinehart said. “Jill has led by example for the cause of highway safety for both the motoring public and in particular for freight transportation,” said Ed Kentner, director of National Carriers Inc. “Participating in multiple areas, she teaches, practices and promotes a strong safety culture in every environment she is involved in.” In addition to serving as a TCA Safety Council officer since 2019, Maschmeier has been named Kansas Motor Carrier Association’s 2016 Safety Professional of the Year. She has also served as a member of the Women in Trucking Image Team, served on the Southwest Kansas Safety Council and has partnered with Federal Motor Carrier Safety Administration (FMCSA) to educating others about electronic logging devices. Maschmeier is North American Transportation Management Institute (NATMI) and Occupational Safety and Health Administration (OSHA) certified (10- and 30-hour courses), as well as a certified purchasing manager and licensed insurance adjuster. She has spoken during TCA meetings, and she has also shared her extensive knowledge at the FMCSA’s Commercial Vehicle Safety Summit, the Women In Trucking Conference, the Transportation Mega Conference and more. “Jill has demonstrated that by partnering with the state and federal levels and improving communication and education, we all win,” Rinehart said. Jim Franck, president of National Carriers Inc., agrees. “Congratulations on your well-deserved honor,” he said. Nominees for TCA’s Safety Professional of the Year award must exemplify leadership and demonstrate the goals of protecting lives and property in the motor-transportation industry while serving their company, the industry and the motoring public. The award is named for Clare Casey, a safety professional who actively served TCA from 1979 to 1989. He was devoted to ensuring that truckload-safety professionals build a strong safety network and was instrumental in forming the first annual Safety & Security Division meeting in 1982. The first Clare C. Casey Award was presented in 1990, one year after Casey’s death. To learn more about the award, visit www.truckload.org/safety-professional-of-the-year.

ATA’s truck tonnage index falls 1% in May, 9.6% below May 2019

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.

Kenworth Sales Company-Las Vegas relocates to spacious, newly constructed facility

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.

May saw ‘significant’ improvement in U.S. trailer orders but number still 71% lower than 2019

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.”

YRC Freight recognized as NASSTRAC National LTL Carrier of the Year

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.

COVID-19 pandemic leaves mark on May commercial-vehicle market with ‘tepid’ activity, ACT says

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.

Ryder expands integrated partnership with Uber for Business, surpasses 100k rides

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.

TIA CEO Robert Voltmann out as of Sept. 30; Doug Clark takes lead as interim CEO

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.

Volvo Trucks dealer Northwest Equipment Sales adds first location in Washington State

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.

U.S. Class 8 Truck Sales fall to recessionary levels in May

As expected, U.S. sales of Class 8 trucks declined sharply in May, according to data received today (June 10) from Wards Intelligence. According to Wards, manufacturers reported that 9,165 Class 8 trucks were sold on the U.S. market in May. 3,472 fewer than an already down April for a decline of 27.5%. It was the first sub-10,000 sales month for the industry since February 2011. Compared to May 2019, sales plummeted from 24,424 in that month, dropping a whopping 62.5%. For the year-to-date, sales of 69,384 Class 8 trucks are 37.7% behind last year’s pace, when 111,332 trucks were sold in the first five months of the year. As the U.S. economy began to open in the month of May, it’s possible that June truck sales will begin to rise, but still aren’t expected to reach 2019 levels until the later months of the year, if at all. Individual OEMs showed mixed results, with Volvo being the only line to do better in May than in April. Volvo reported 1,084 trucks sold in May, a 14.0% improvement over April sales of 951 units. For the year thus far, Volvo sales lag 38.6% behind last year’s pace, close to the industry average. Kenworth saw a sales drop of 44.2% over April results with May sales of 1,277 trucks compared to 2,290 in the prior month. It was the worst month-over-month loss of the OEMs. Peterbilt was closer to the industry average at a 27.9% decline, 1,119 sold in May compared to 1,553 in April. The company leads the way, however, when compared with May 2019, when 3,855 trucks were sold. The 71.0% decline tops the OEM list for May. On a year-to-date basis, International is the biggest loser. Sales of 8,695 trucks are down 45.9% from 16,070 sold January through May last year. With the largest share of the new Class 8 truck market, Freightliner takes the biggest hit when it comes to sheer numbers. Sales this year are 17,006 behind the 2019 pace, a decline of 40.2%. In May, the company sold 3,104 trucks, a decline of 28.1% from April. Compared with May 2019, sales declined by 5,314 units, dropping 63.6%. Mack Truck has shown the greatest resilience to the sales drop with a decline of 25.7%, best among the OEMs with the exception of Western Star, whose sales declined 4.2%. Both produce a large number of vocational trucks, possibly making the difference in sales. Currently, Freightliner holds 36.5% of all 2020 U.S. Class 8 sales, down 1.5% from last year’s mark. At 8.1% of the market, Mack has climbed from last year’s 6.8%. Tiny-but-mighty Western Star, who achieved a 2.3% market share last year, has climbed to 3.5% this year and 5.5% in May. The good news that the economy has begun to reopen may be offset by the announcement that it is now officially in recession. Those two factors will undoubtedly impact new truck sales in the coming months. The reopening may have started a little late to rescue June sales, and some buyers may wait to determine if the recession will be a short one, as expected, or will last. Whether May turns out to be the worst month of the year, or sales sink even lower in June, it is apparent that full year 2020 sales will not be as robust as they have been in the last few years. It’s unlikely that sales will fall beneath the 94,978 of recession-year 2009, but there’s no doubt that manufacturers and dealers would like to see an increase from current levels.

Truck OEMs retool to keep employees on the job, fight COVID-19 pandemic

When COVID-19 rose to the forefront of the nation’s news early this year, the trucking industry found itself in high demand. Carriers, company drivers and owner-operators alike worked around the clock to deliver essential goods to all corners of the country. Consumers grabbed most of those goods before another delivery arrived. While the COVID-19 crisis put most available drivers and trucks on the road, at least for a while, the same didn’t hold true for operations at America’s largest truck-manufacturing plants. Demand for new Class 8 equipment had been trending downward since late 2018, and the pandemic erased industry executives’ hopes that the new decade would spur an increase in truck orders. However, the trucking industry employs some of the brightest engineers and technicians in the country. Likewise, they have the latest technologies at their disposal. It didn’t take long for several of top truck manufacturers to rethink their strategies and start working to help fight COVID-19. Over the past few months, numerous truck manufacturers have shifted priorities. International Truck, Volvo North America, Mack Trucks, Navistar and PACCAR Inc. took steps to retool and focus on battling the coronavirus. The companies worked to minimize layoffs, provided personal protective equipment (PPE) for truck drivers in need, and produced personal protective equipment for those high-risk workers outside the trucking industry. The ability of the nation’s major truck manufacturers to change gears on almost a moment’s notice is a testament to American ingenuity, company pride and corporate responsibility. First-quarter indicators PACCAR, parent to Kenworth Truck Co., Peterbilt Motors and DAF trucks, was the first major truck manufacturer to report first-quarter earnings. The impact of COVID-19 on revenue and profits was clear. While PACCAR’s companies claimed 38% of new Class 8 truck orders in March, inventories began to grow after the delivery of trucks ordered in 2019, suggesting a downturn in the market for new trucking equipment. On the other hand, PACCAR set a record for parts sales in the first quarter of 2020, an achievement likely caused by heavy use of older trucks in the early stages of the pandemic. Preston Feight, CEO of PACCAR, said the company’s primary concern is employee health. “Once we take care of that, we’ll ramp back up our production,” he said. PACCAR suspended operations at plants worldwide in late March, and three major U.S. facilities still remain closed. As these plants gradually reopen, PACCAR plans to take special precautions. All workers will be screened before entering PACCAR facilities and will be provided with personal protective equipment. PACCAR is also working to ensure its workplaces will allow for proper social distancing. Putting drivers first It is vital to deliver essential items such as food, paper products and health care supplies during any crisis. Still, carriers realize that unhealthy drivers will only delay deliveries. The first task for International Truck was to equip drivers with personal protective equipment to shield themselves from exposure to the virus. If exposed, the company hoped drivers would be healthy enough to self-quarantine and fight off COVID-19’s potentially deadly effects. International Truck joined forces with business partners Triumph Business Capital and TriumphPay to purchase and distribute $75,000 worth of personal protective equipment to International dealerships in the U.S. and Canada. The three companies realized the need for protecting drivers after hearing from truckers like Ingrid Brown, an owner-operator and company driver in Illinois. Brown has been a driver for more than 40 years. Throughout her career, she has been an advocate for the needs of drivers. “While large fleets have a solid distribution network to provide protection to their drivers, many drivers for smaller fleets and independent drivers, like myself, are on our own,” she said. Brown said that personal protective equipment, ranging from hand sanitizer to disinfectant wipes and masks, is hard to come by. International is doing an excellent service to drivers by helping them access essential safety items, she added. International Trucks also launched “International Cares,” a program that allows buyers to delay payments for six months on new purchases and offers free access to “International 360,” a tool to help carriers safely manage fleets. International has also provided its worry-free truck-maintenance program at no charge for up to nine months or 100,000 miles. In April, before launching “International Cares,” company service centers provided 10,000 meals to drivers who were working long hours to deliver COVID-19 relief supplies. Michael Cancelliere, president, Truck, Navistar, said his company’s efforts are just a few of many initiatives to help drivers whether the country is in crisis or not. “[PPE is] still sparse at stores,” he said. “This is just another way we can show that International cares, and we’re with you for the long haul.” Retooling to defeat an invisible enemy Companies such as the Volvo Group and its subsidiary, Mack Trucks, are using the slowdown in truck manufacturing to design, test and produce personal protective equipment to help medical facilities and workers in other high-risk occupations. “Our employees and communities are extremely important to Volvo Trucks,” said Peter Voorhoeve, president of Volvo Trucks North America. “We want to do what we can to help during the current situation.” Volvo has taken steps using engineers and assembly-line employees to design and manufacture personal protective equipment. The company has also provided financial and in-kind donations to nonprofits that are battling the crisis. Volvo’s facilities in Greensboro, North Carolina; Dublin, Virginia; and Hagerstown, Maryland, have taken the lead in the company’s efforts to use its ingenuity and technology to meet new challenges posed by COVID-19. In one plant, employees from various departments teamed to design prototype face shields in cooperation with medical professionals. The face shield, team leaders said, is one of the most challenging pieces of equipment to find in the area. With the help of 3-D printers, Volvo is now producing face shield headbands and ear guards. Employees working from home have access to 3-D printers and provide them for delivery to area hospitals and nursing homes. Likewise, Volvo is donating healthy snacks to childcare providers. “The ingenuity of employees at the Hagerstown facility has never been more evident than during COVID-19,” said the facility’s vice president of powertrain production, Marcus Minkkinen. Using the same 3-D printing technology, employees at other Volvo locations are also manufacturing personal protective equipment. In addition, Volvo recently donated $68,000 to nonprofits serving the area of its North Carolina facility. “It’s great to see the drive and commitment from our employees at several Volvo facilities,” Voorhoeve said. Like Volvo Trucks North America, Mack Trucks has been manufacturing personal protective equipment at its Lehigh Valley Operation (LVO) plant in Pennsylvania. “The Mack Team is committed to doing what we can to help the communities in which we live and work,” said Rickard Lundberg, vice president and general manager at LVO. He noted that producing PPE is just another example of the company rising to the challenges of fulfilling vital needs — problems it has accepted for over 120 years. Going beyond delivering freight The steps major truck manufacturers have taken in recent months may have taken their employees out of their comfort zones. Still, the trucking industry employs some of the brightest and most qualified professionals in the country, and they regularly adapt to changing government regulations for equipment and shifting market forces. Using the best of the best allows truck manufacturers to rise up and become a driving force when many carriers are sidelined. Independent truckers like Ingrid Brown not only inspire manufacturers to reach new heights but also support their efforts. With personal protective equipment hard to come by, Brown said knowing that truck manufacturers are assisting in taking care of drivers offers comfort. “I can protect myself, assist in slowing the spread of this virus and still do my job,” she said.

The timing is always right to improve fuel mileage

Fuel prices are down. Way down. That’s good, right? The price war waged by Russia and Saudi Arabia, coupled with worldwide bans on air travel and reduced shipping due to manufacturing shutdowns, has resulted in a steep drop in demand for petroleum products. The resulting glut of crude oil on the market depressed market prices to levels rarely seen since the early 1970s. Since the 1970s, only once, between November 1998 and January 1999, did the barrel price for crude drop below $20. Until COVID-19. When crude prices bottomed out in 1998 and 1999, trucking enjoyed national average diesel fuel prices below $1 per gallon, according to the U.S. Energy Information Administration. This time around, $2.39 was as good as it got nationally, with the lowest recorded price being $2.17 per gallon in the Gulf Coast region. With prices this low, it’s tempting to forget about all those fuel-conservation habits. Going few more miles per hour saves a little time, and idling, where legal, isn’t a problem, either, right? Unfortunately, freight rates have fallen faster than diesel prices. Spot market rates have dropped far enough to spark a three-week protest in Washington, D.C., and other shorter events in cities around the country. Some drivers have parked their trucks, waiting for rates to come back up to a level that permits them to at least break even. Those low diesel prices have another consequence. As fuel prices fall, so do fuel surcharge payments. In some cases, they’ve fallen to zero. For owner-operators who are leased to a carrier at a set rate per mile, low diesel prices can be a windfall they don’t often see, if they aren’t negated by fuel surcharge losses. For those paid by load-revenue percentage and those running under their own authority, cheap fuel is about the only positive news in a negative market. Still, fuel is very likely to be the greatest expense of an owner-operator’s business. A trucker that runs 10,000 miles per month (that’s 120,000 miles per year) and averages 6 miles per gallon of fuel will burn 20,000 gallons in a year’s time. At the current low national average of $2.39 per gallon, that’s still a whopping $47,800 per year in fuel cost. An increase in fuel efficiency of one-half mile per gallon lowers annual fuel consumption to 18,462 gallons. That’s 1,538 gallons of diesel someone doesn’t have to buy, and $3,676 that isn’t spent. That’s a set of tires with some change left over, or maybe a truck payment or two. Another way to look at cost savings is on a per-mile basis. A gallon of diesel fuel, at $2.39 and 6 miles per gallon, yields a fuel cost of $0.398 per mile. Increasing fuel mileage to 6.5 miles per gallon drops the fuel cost per mile to $0.368, saving three cents a mile. Lowering operating cost by three cents a mile provides a little more leeway on loads, and that can that can be profitable — very important when freight rates are at rock bottom. Many drivers can improve fuel mileage by .5 mile per gallon simply by adjusting their driving habits. Driving a little slower, minimizing time spent idling and using cruise control are helpful. Maintaining a proper following distance helps minimize how often the brakes are applied followed using the throttle to gain back speed. There are products on the market that help increase fuel efficiency, too. Wheel covers, flow-through mudflaps, and aerodynamic devices for wheels, according to manufacturers, are enough to provide up to 5% in fuel savings and pay for themselves before the first year of ownership is complete. Wind fairings, whether cab extenders or cab-top, help cut costs. Low-profile tires with reduced rolling resistance help, too. That $3,676 savings? When fuel prices go up — and they will — so do the savings. You’ll keep more of any fuel surcharges, too. It may be difficult to find the cash for aero improvements when rates are down, but improving fuel mileage isn’t a “now-or-never” proposition. Fuel efficiency should be considered in every purchase decision and in many driving decisions. Options that add weight to your truck also increase its fuel consumption. Chrome accessories can increase wind resistance, dropping fuel mileage. So, even though fuel is less expensive right now, it may be a good time to take a look at managing your fuel efficiency. Over time, a little savings can add up to big dollars.

Werner founder steps down after 65 years

OMAHA, Neb. — Many driving entrepreneurs experience the pride in seeing their name on the side of their truck. Imagine seeing it on more than 10,000 trucks. Only a few truckers reach that lofty status, and CL Werner is one of them. The Omaha, Nebraska-based company announced on June 4 that Werner is stepping down as Executive Chairman. The action was effective May 31, 2020. He will continue to serve as Chairman of the board of directors until his current term expires in May 2021. The board of directors appointed current President and CEO of the company, Derek Leathers to the position of Vice Chairman, effective May 31, 2020. Werner recommended that, at the end of his current term, Leathers be named Chairman. Like a few other trucking entrepreneurs, Werner started his company with one truck back in 1956. He replaced that truck with two more and continued to grow the fledgling company through the years. His creation has grown to its current size and also become the largest cross-border carrier with Mexico. “All I ever wanted to do was drive a truck,” said Werner. “As the first driver for our company, I know first-hand that professional drivers are, and have always been, the backbone of our country. America is witnessing that now more than ever. I’ve been proud to have created such a company.” Concerning his decision to step down, he said, “There comes a moment when you know it’s just time to move on. I’m in good health, and Werner has never been in a better position than it is today. So now is the time. I have the utmost confidence in Derek and his leadership team to continue to take Werner to the next level and beyond.” Werner Enterprises is known in the trucking industry for being a pioneer of paperless driver logs, implementing computerized logging for its drivers in the mid-1990s. Among its service offerings are dedicated, regional, expedited van and refrigerated hauling. The company has offices in Canada, Mexico and China, in addition to its U.S. facilities, providing service to every continent except Antarctica. Werner Enterprises’ can be found on the NASDAQ Global Select Market under the symbol “WERN.” For further information, visit the Werner website (werner.com).