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Tonnage indexes show that April was dismal month for freight and manufacturing

Nobody expected April to be a good month for freight volumes, and it wasn’t. Almost all the economic indicators, from industrial production to retail sales, housing starts to unemployment claims, were headed in the wrong direction in April. The amount of tonnage hauled dropped significantly, along with spot freight rates. In Arlington, Virginia, American Trucking Associations (ATA) reported a 12.2% drop in its seasonally adjusted For-Hire Truck Tonnage Index. The index came in at 119.5 in March, meaning that March freight levels were 19.5% higher than the 2015 average of 100 that forms the base of the index. In April, that tonnage index fell to 104.9. That’s 11.3% lower than April of 2019. “April’s monthly decline was the largest in 26 years, said Bob Costello, ATA chief economist. “Considering that April factory output and retail sales plummeted, the large drop in truck freight is not surprising.” Costello pointed out that fleets hauling groceries and those hauling for online retailers generally did better than average, while others were hit harder. “Some fleets witnessed very large declines in freight last month,” he said. The ATA index is comprised of data reported by ATA member carriers and generally reflects contract freight hauled by medium to large carriers. The Cass Freight Index, which encompasses freight data from rail, ship, pipeline and other shipping modes as well as trucking, fell 15.1% in April from March tonnage, and 22.7% from April 2019. The Cass Trucking Index wasn’t quite as bad, declining 7.0% compared to April 2019. The Cass report wasn’t bullish on the coming months. “Consumer confidence remains very poor into May, as there is uncertainty over what happens next,” the report read. “We’ve never seen anything like this, so it is impossible to predict exactly what it will mean for freight as we move through the year,” was the conclusion. ACT Research released a report showing that orders for commercial vehicles and the engines that power them have plummeted. “Freight demand has fallen, global supply chains have been severely disrupted, and even before COVID-19, the world was shifting toward increased e-commerce,” noted Kenny Vieth, ACT president and senior analyst. “The pandemic’s impact has only hastened that trend. In March, e-commerce recorded a 50% increase in home goods sales, and a more than 200% jump in online food deliveries.” The news wasn’t any better at FTR, another industry analyst and advisor. In a May 18 “Monday Morning Blog,” writer Steve Graham said, “April was an awful month for the economy.” He noted that U.S. industrial production fell 11.2% in April and manufacturing fell even further, 13.7%. At the same time, retail sales fell 16.4% in the month, following an 8.3% decline in March. The two hardest-hit areas, the blog reported, were furniture sales, which declined 58.7%, and electronics and appliances, which dropped 60.6%. Graham’s blog also pointed to the high unemployment numbers as a further depressor of sales, saying, “Millions of Americans will be cautious about big purchases for some time.” Indeed, more than 38 million Americans have filed for unemployment since February. The unemployment rolls should begin shrinking as the economy opens. However, many retail businesses that are opening face occupancy restrictions, and customer numbers may not return to normal for quite some time. As freight volumes fell, freight rates followed suit and, like volumes, may have reached bottom in April. DAT’s “Trendlines” report showed a 79.6% increase in loads posted on the company’s load board in May. Despite being 8.5% lower than May 2019, the April-to-May increase not only reflects more available loads but will also drive rates higher. The same report showed an 11.8% decline in the number of trucks posted, possibly a reflection of small carriers parking their equipment in response to low freight rates. None of the trailer types (van, flat and reefer) have come anywhere near March rates. Spot freight rates for dry van and flatbed were lower than April rates, 2.4% and 1.7% respectively; however, rates began climbing in the second half of May. Refrigerated (reefer) rates climbed 4.6% compared to April, probably due more to seasonal crop harvests than economic activity. On June 3, the U.S. Census Bureau’s Report on Manufacturer’s Shipments, Inventories and Orders began with the words, “Due to recent events surrounding COVID-19, many businesses are operating on a limited capacity or have ceased operations completely.” The numbers that followed weren’t any rosier. After falling 11.0% in March, new orders for manufactured goods fell another 13.0% in April. Durable goods, those that generally remain in use for three years or more, fell 17.7%. The biggest loss in the durable goods category came from transportation equipment, which fell 48.3%. New orders for nondurable goods fell 9.0%, an indication that consumers are spending more on day-to-day items but aren’t investing in vehicles or appliances. Commodities such as petroleum and coal are also considered nondurable items, and helped pull the overall numbers down. According to the report, the number of shipments of durable goods dropped $42.4 billion, or 18.2%. April was the fourth consecutive month of declining shipments and, just as in the orders category, vehicle equipment lead the way. Shipments of nondurable goods fared better but still declined, dropping by $21.2 billion or 9.0%. Petroleum and coal products produced some of the heaviest declines. If there was any good news, it was that the unfilled orders-to-shipments ratio rose, from 6.7 in March to 7.62 in April. At the same time, inventories fell 0.4%, or $2.6 billion. Unfilled orders and low inventories can be an indicator of higher manufacturing and shipping activity to come as the economy reopens. That’s assuming businesses return to the same inventory levels as before the pandemic began. Some may choose to maintain lower inventories on the premise that the economy, and their sales, will not return to previous levels for a while. As the calendar turned to June and sales began to pick up, demonstrations that began in Minneapolis to protest the death of George Floyd while in police custody have spread to cities across the nation, some with violent results. Curfews, closures of interstate highways by protesters, and fear of crowd violence have caused some businesses that were reopening to close down until the violence ceases. Even when businesses and distribution centers are open, some drivers have refused to enter metropolitan areas because of safety concerns. Whether the protests, and the nation’s reaction to them, will be enough to dampen the economic recovery begun in May remains to be seen. “As the nation starts taking small steps toward reopening, we should see some modest improvements in the freight market, but the size of April’s decline gives us an idea of how long the road back may be,” Costello said.

Werner Enterprises goes live on Trucker Tools platform

RESTON, Va., and OMAHA, Neb. – Trucker Tools has announced that Werner Enterprises is now live on the Trucker Tools platform. Werner joins Beemac, Schneider and other logistics services in using the app to match truckers with available loads. The Trucker Tools app provides a variety of services to drivers, including routing and fuel optimization, truck stop guide, and food and services lookup. Drivers can also use the “Book it Now” features of the app to find and book loads from participating brokers, now including Werner. The carrier must be approved by the broker before the ability to see loads from that broker is activated, but once that’s done, no phone calls are necessary to book loads. Additionally, the driver can access loads from multiple brokers to find the best fit and rate. Check-in calls are eliminated, too, since the app reports truck location to the broker (and customer) every five minutes. The Trucker Tools app provides many of the same services offered by expensive satellite tracking subscriptions, at zero cost to the driver. Using the app, drivers can check parking availability on the route ahead, compare fuel pricing and even read reviews of truck stops, restaurants and other businesses. More than 130,000 owner operators and small carriers are active on the Trucker Tools app, according to the company’s website. That number includes a total of more than 750,000 participating drivers. Werner-approved carriers will now be able to access loads, and can also make their trucks visible in the Werner system so they can be matched with loads available in the area. At the same time, Werner’s logistics operation will have access to more independent owner-operators and truckers, expanding the company’s base of carriers. Although many small carriers prefer to access Trucker Tools through smartphones, the system does integrate with transportation-management system (TMS) software used by some carriers for dispatching and communication. Several TMS vendors are listed as partners on the Trucker Tools website. The number of apps available for truckers can be overwhelming. Many drivers and carriers have multiple apps downloaded and must go through each of them to obtain different information. The Trucker Tools app is designed to provide enough information that other apps aren’t needed. That’s something that isn’t lost on Andy Damkroger, Werner’s associate vice president of logistics. “We are very conscious of app-fatigue, it’s a common complaint from truckers,” he said. “So, while people are tired of constantly getting asked to download another app, they’re not tired of great apps. We are taking advantage of Trucker Tools leadership in the market in that regard.” Finding that next load, and the one after that, can be a confusing and time-consuming chore for a small carrier or owner-operator. Multiple phone calls are often necessary to find the right load; even then, it’s possible to miss out on a better load listed elsewhere. With Trucker Tools, drivers can have exposure to more loads by offered by more brokers. Free to download, Trucker Tolls is another tool in the small business trucking arsenal.

ATRI asks motor carriers to participate in annual operational costs data collection

Arlington, Va. — The American Transportation Research Institute (ATRI) is asking motor carriers to participate in the institute’s annual update to its Operational Costs of Trucking report. Among the for-hire fleet metrics being requested by ATRI are driver pay, fuel costs, insurance premiums, and lease or purchase payments. For-hire carriers and owner-operators are asked to provide full-year 2019 cost per mile and/or cost per hour data using ATRI’s data entry form, which is available for download here, by August 21. Confidential information is protected, and participating motor carriers will receive an advance copy of the full report. Now in its 12th year, ATRI’s annual Operational Costs of Trucking report collects cost information derived directly from trucking fleets and owner-operators, and ATRI states that the report is among the organization’s most requested research studies. ATRI’s annual analysis is used as a key benchmarking tool by motor carriers of all sizes. Public sector agencies also utilize ATRI’s real-world data analysis to make better-informed transportation planning and infrastructure investment decisions.

Schneider, Blue Yonder collaborate to help shippers achieve optimized supply-chain management

GREEN BAY, Wisc. — Schneider, a provider of trucking, intermodal and logistics services, has collaborated with Blue Yonder to deliver a new carrier marketplace within the Blue Yonder transportation-management solution. The new dynamic-capacity pricing solution provides an integrated, seamless experience for shippers that pairs the power of dynamic pricing and visibility with the comprehensive solutions of Schneider’s portfolio, with Schneider’s brokerage division leading the adoption. Using Blue Yonder’s dynamic pricing discovery solution, Schneider provides carriers and shippers with near-real-time matching of price and capacity, along with tracking capabilities, connected to and made available on Blue Yonder’s Luminate Platform. Powered by Microsoft Azure, the Luminate Platform combines data from both internal and external sources, spanning shippers’ digital supply-chain ecosystems, to leverage both artificial intelligence (AI) and machine learning (ML), enabling smarter and more actionable business decisions. “Our collaboration with leading providers like Blue Yonder delivers big wins for shippers who are seeking a higher level of access, agility and transparency,” said Erin Van Zeeland, senior vice president and general manager of logistics services for Schneider. “What’s really exciting is that these real-time insights and automation are just the beginning of our work to help shippers better identify opportunities to save costs and enhance overall efficiency.” The frictionless digital experience improves overall performance and speeds up the management of operations that are traditionally manual and time consuming (e.g., booking and tracking loads). “We’re always looking for ways to yield ongoing ROI improvements for shippers through real-time visibility and automation,” said Terry Norton, vice president of the 3PL (third-party logistics) business unit for Blue Yonder. “Collaborating with Schneider provides them with a best-in-class solution built on our Luminate Platform that leverages innovative technology with a transportation provider who can deliver dynamic pricing options along with needed capacity.”

Preliminary data for May shows depth of supply-chain disruption in commercial-vehicle industry, ACT says

COLUMBUS, Ind. — Preliminary North American Class 8 net orders in May were 6,700 units, up 56% from April but down 38% from a year ago. Living up to its “steady” moniker, the North American Classes 5-7 market saw orders improve 5.3% month over month, despite being down 57% from the 2019 May volume. Complete industry data for May, including final order numbers, will be published by ACT Research in mid-June. “Reflecting the state of the broader economy, there was little to cheer about in May’s industry order activity,” said Kenny Vieth, president and senior analyst for ACT. “Considering COVID-related lockdowns across the U.S. and North America at the start of the month, and a slow reopening occurring through May in most areas, it was not an exercise building customer confidence,” he continued. “Restarting the manufacturing sector from a full stop was only partly successful, as Mexico’s lockdowns remained in effect well after the U.S. began to reopen, resulting in challenging supply-chain dynamics and fragmented supplier sourcing.” ACT’s State of the Industry: Classes 5-8 Vehicles 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. The report differentiates market indicators by Class 5, Classes 6-7 chassis and Class 8 trucks and tractors, detailing activity-related 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. The Class 8 market is segmented into trucks and tractors, with and without sleeper cabs. The report includes a six-month industry build plan, a 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 this report.

Musket Corp. opens new DEF facility to serve customers in Orlando, Florida

HOUSTON — Musket Corp., the trading and logistics arm of the Love’s family of companies, has opened a diesel exhaust fluid (DEF) wholesale bulk rack in Orlando, Florida. The wholesale bulk rack is the company’s first DEF terminal in Florida and its 18th in the U.S. “Opening this facility in the Orlando market allows us to better service our customers,” said Brian Hoover, general manager of DEF for Musket. “It was critical to add more supply to our growing demand within the Southeast of the country. This facility will support truckers at regional Love’s Travel Stops, in addition to providing 24/7/365 reliable access to key market segments, such as wholesale oil and gas distributorships.” The Orlando production terminal has an associated seven-car rail spur and 250,000 gallons of storage capacity with room to add more as the market dictates. Earlier this year, Musket opened plants in Elmendorf, Texas, and Centralia, Washington. DEF converts harmful emissions to nitrogen and water. Widespread use of DEF began in response to the U.S. Environmental Protection Agency’s Clean Air Act of 2010. Since then, diesel engine manufacturers have relied on selective catalytic reduction technology to reduce emissions from exhaust gases. DEF, which is composed of 32.5% automotive grade urea and 67.5% de-ionized water, is injected into hot exhaust gas to convert it into nitrogen and water. Musket began producing DEF in 2014 to address increasing market demand. Musket’s mission is to offer a reliable product to meet customers’ growing demand in conjunction with reducing empty mileage driven to source the product. Musket offers a flexible 24/7/365 operation, stable supply and product integrity. The company’s DEF terminals use best-in-class procedures, producing the highest-quality product meeting the American Petroleum Institute (API) and the International Organization for Standardization (ISO) 22241 standards. DEF is available alongside diesel at Love’s Travel Stops nationwide.

Truckload market recovery speeds up during holiday week

According to DAT trendlines, spot market recovery sped up the week of May 25-31. Large increases in load-to-truck ratios indicated higher demand for dry van, refrigerated and flatbed shipments. Truckload rates followed suit, rising on most lanes and gaining momentum as the industry heads into June, typically a peak month for the spot market. The charts below, courtesy of DAT, show the national average rates for the month to date, including fuel surcharges.  

DAT Solutions acquires freight intelligence business from Chainalytics

PORTLAND, Ore. — DAT Solutions, an online freight marketplace, announced June 1 that it has entered into a definitive agreement to acquire the Freight Market Intelligence Consortium (FMIC) from Chainalytics Inc. FMIC is a subscription-based benchmarking and analysis service that leverages almost $50 billion in actual freight transactions from almost 200 companies across manufacturing, retail, wholesale and third-party logistics. The acquisition further extends DAT’s position in market and pricing intelligence, with $118 billion worth of global shipment data across multiple transportation modes that include truckload, less-than-truckload and ocean freight. FMIC’s world-class intelligence and rate-modeling expertise in the contract market, combined with DAT’s real-time spot market transaction pricing, uniquely positions the company to develop new paradigm-shifting products, services and insights with a 360-degree view of the transportation market. “More than a thousand shippers, brokers and carriers from across the globe directly contributing rates uniquely positions DAT to deliver the only near real-time view into freight pricing and global supply chain in North America,” said Claude Pumilia, DAT’s president and CEO. “This gives our customers unrivaled logistics insight and a stunning 360-degree view of the entire supply chain.” In addition to a go-to source for global freight intelligence, DAT’s acquisition of FMIC provides clients with a one-stop shop for transportation pricing and market intelligence solutions, including RateView, FMIC and Pulse products, and access to global market analytics on truckload, intermodal, LTL and other modes of transport. Model-based benchmarking techniques for transportation markets, enabling total geographic coverage across all lanes and modes, without exposing companies’ actual contracted rates. The team of industry-leading market experts includes Inam Iyoob, Ph.D, and Dr. Chris Caplice, executive director of MIT Center for Transportation and Logistics. “The combination of FMIC’s contract rate benchmarking and analytics with DAT’s spot market data and freight matching will provide unparalleled capabilities for analytics and forecasting on the global freight and supply chain markets,” said Gary Girotti, Chainalytics’ executive vice president of supply chain intelligence and technology products.

Compliance 10-4 provides compliance, regulatory services to logistics carriers

LAKELAND, Fla. — U.S. companies that are required to maintain a compliant Department of Transportation (DOT) number must fulfill specific, complex regulatory requirements, including demonstrating both safety in operations and a highly sophisticated administrative capability. While safety is the primary focus of operators, the record keeping and regulatory reporting can be confusing and time-consuming. “As part of getting America back to work, Compliance 10-4 has launched with the goal of freeing drivers and safety personnel of the administrative regulatory burdens so they can focus on moving freight as quickly and as safely as possible while still knowing their operating model is DOT compliant,” said Ernie Langston, one of Compliance 10-4’s three founding partners. Part of the launch includes rolling out a new Compliance Management System (CMS). “We have spent over six months and several million dollars building a state-of-the-art technology platform that puts Compliance 10-4 immediately at the front of vendors in this space, even during the 2020 pandemic while other companies have been laying off workers, we have been hiring as part of our commitment to delivering on the promise of getting America back to work,” said David Lady, another founding partner. In conjunction with full white-glove compliance services, Compliance 10-4 brings strong mobile and IoT technology to the table. “We are a technology company first, and in revisioning the steps and mechanism surrounding motor carrier safety, we have brought free technology to the market to assist in regulatory safety monitoring and reporting,” said Mark Rupert, the final of the three principles working to launch Compliance 10-4. Compliance 10-4, officially launched June 1, provides professional and administrative services to DOT-compliant logistics firms. Services include Driver Qualification File management, 49 CFR 395, 396 automation, MCS-150, IFTA, URC, HVUT | 2290, ELD and advanced file management technology.

Trimble, Kuebix launch next-generation Community Load Match capabilities to simplify finding, filling truckload capacity

Trimble and Kuebix have added new capabilities to the Community Load Match platform, a service that facilitates collaboration between shippers and carriers to optimize how freight moves throughout the supply chain. Kuebix was acquired by Trimble in January. The latest version of Community Load Match, the first milestone since the two companies joined forces, enables shippers to use advanced matching capabilities to more easily find available carriers for truckload shipments and leverage improved map visualization through Trimble MAPS. These capabilities give carriers direct access to Kuebix’s community of more than 20,000 shippers for matching shipment requirements with available truckload capacity. “Just four months post-acquisition, a joint Trimble-Kuebix team is releasing the next-generation capabilities of Community Load Match, powered by our community of shippers and a rapidly growing network of Trimble carriers,” said Dan Clark, Kuebix founder and Trimble vice president of product innovation and strategy. “This is an exciting first step as we pursue our vision of a truly connected supply chain.” Kuebix integrates with Trimble’s Innovative, TMW.Suite and TruckMate carrier transportation management systems (TMS), allowing shipment data to seamlessly flow between systems for maximum efficiency. Connecting Kuebix shippers with Trimble’s carrier network through a single integrated platform brings together two of the largest shipper-carrier ecosystems in North America. Community Load Match connects shippers with a rapidly growing carrier community from Trimble’s network of 1.3 million commercial trucks, digital freight-matching services and brokers to meet truckload needs on one platform. Shippers can easily request and receive rates from the carrier community, including their contracted carriers. Kuebix’s shipping community is composed almost entirely of direct shippers and manufacturers, resulting in a high-quality source of freight for carriers. Community Load Match provides the ability to designate preferred lanes, ensuring that carriers are only connected with shipping customers with requirements in lanes they are looking to fill. Kuebix also offers shippers complimentary rate assessments leveraging community carriers to optimize logistics operations and source new capacity. “Trimble’s acquisition of Kuebix is part of our strategy to enable a collaborative, fully connected supply chain,” said James Langley, senior vice president of Trimble Transportation. “The evolution of the Community Load Match platform represents a tangible step toward achieving this mission, making it easier for shippers and carriers to work together to identify capacity and more efficiently move freight.” Shippers can find more information, as well as how to start a 60-day free trial of Kuebix Business Pro TMS here. Carriers can find out about becoming a Kuebix Community Carrier here.

ATA study shows company drivers’ average pay increased by $6,000 between 2017-2019

ARLINGTON, Va. — The American Trucking Associations (ATA) on May 21 released the latest version of the association’s Driver Compensation Study, which showed average driver pay, including bonuses, rose nearly $6,000 in 2019 since the last study in 2017. “These results show that fleets did exactly what we would expect them to in the face of a tightening market for drivers. They raised pay and increased benefits in order to attract talent,” said Bob Costello, chief economist for ATA. According to the survey, which was based on data from 2019, the average pay for truckload national, irregular route solo van drivers was roughly $58,000, up $6,000 from 2017. “We saw large carriers hire more entry-level drivers in 2019, including drivers directly from driver-training school, which lowered the average pay for these carriers, but they did not reduce pay rates. It was just a different driver-experience pool,” Costello said. Fleets that responded to the survey also reported offering significant benefit packages, which included paid leave, insurance, meals and other incidentals, and retirement plans, to attract drivers. For example, more than 90% of truckload carriers, less-than-truckload carriers and private fleets surveyed said they offered drivers paid leave and health insurance. “What these figures show is that being a truck driver can be a path to a middle-class lifestyle for millions of Americans,” Costello said. “With the long-term impacts of the COVID-19 pandemic and subsequent economic crisis not yet fully clear, we can say that a career in trucking could be a well-paying solution for some of the millions of Americans who have lost their jobs so far this year.”

Fleet Advantage’s Griffin, McMahon earn National Private Truck Council’s CTP accreditation

FORT LAUDERDALE, Fla. — Fleet Advantage, a company that provides leasing solutions, asset management and strategic consulting for clients operating Class 8 truck fleets, congratulates James Griffin, the company’s chief operating officer and chief technology officer, and Brian McMahon, vice president of strategic fleet solutions, for achieving their 2020 Certified Transportation Professional (CTP) accreditation from the National Private Truck Council (NPTC). Griffin has more than 24 years of experience in technology development and strategic planning for technological and informational organizations. His expertise in software development helps him serve clients and provide them with the best solutions for lifecycle asset management. He works to lower overall costs for transportation fleets based on data and insight provided by Fleet Advantage’s analytics platform, ATLAAS (Advanced Truck Lifecycle Administrative Analytics Software). Progressing through multiple roles within Fleet Advantage, McMahon is now responsible for providing solutions for lifecycle asset management and financing of Class 8 tractors and trailers. Before becoming vice president of strategic fleet solutions, he held roles as a data analyst on the transaction management team, where he was responsible for all data analytics and pricing models. McMahon has completed fleet studies with millions of miles worth of data and helped build and structure opportunities based on the fleet’s performance data. CTP graduates are recognized yearly at NPTC’s annual conference; however, the 2020 group of graduates will be recognized at the 2021 conference due to the COVID-19 postponement. “The CTP accreditation sets the highest industry standards for transportation professionals,” said John Flynn, CEO of Fleet Advantage. “We take pride in the number of CTP-credentialed professionals we employ at Fleet Advantage, as we strive to continuously maintain the highest level of seasoned executives in the marketplace who can leverage their knowledge and expertise to support our clients and their needs,” he continued. “We are saddened that we had to forgo (NPTC’s) annual conference and awards ceremony this year but look forward to future NPTC events and the show in 2021.”

As repercussions of Celadon bankruptcy case continue behind the scenes, asset acquisitions and auctions go on amid pandemic

The aftermath of the closing and subsequent bankruptcy filing of Indianapolis-based carrier Celadon made for prominent headlines in trucking industry news from December 2019 until late February 2020. But that was before COVID-19 supplanted almost all news coverage ranging from major media outlets to industry-specific publications and digital media. The fallout from the Celadon bankruptcy continues, but those not following the story may have lost track of the complicated proceedings in a case involving multiple subsidiaries in numerous states and three countries. While proceedings may be moving a bit slower than usual during the global health crisis, plenty of action is ongoing behind the scenes. Celadon, among the largest carriers in the U.S. and the largest serving the U.S., Canada and Mexico, abruptly ceased operations without notice to employees over the weekend of Dec. 7-8, 2019. After sending announcement to drivers via the carrier’s in-cab messaging system shortly before midnight on Dec. 8, Celadon filed for bankruptcy just hours later. In the meantime, the carrier’s actions stranded drivers across the three countries. Fuel companies canceled driver cards, and reports indicated some equipment was repossessed. The initial confusion eventually cleared, and all drivers returned home with the assistance of other carriers and businesses. It then became apparent that Celadon’s Chapter 11 filing would spark the most significant truck carrier bankruptcy proceedings in U.S. history. The following is a summary of significant developments in the Celadon bankruptcy and wind-down since late February. PAM abandons acquisition of Celadon’s Mexico assets; new buyer found In February, Arkansas-based carrier PAM announced an agreement with Celadon’s bankruptcy oversight team to acquire the former carrier’s Mexico-based operations at the cost of $7 million. As an intracontinental carrier, before its bankruptcy Celadon managed several holdings in Mexico, including 100% of Celadon Mexicana and Jaguar Logistics & Leasing Servicios. The company also controlled 75% of Transporación Corprativos. The agreement included Mexico tax refunds due to Celadon for approximately $18.5 million. Following PAM CEO David Cushman’s retirement on May 1, reports emerged that PAM sought to renegotiate the terms of the agreement. The reports suggested the unforeseen impacts of COVID-19 on the trucking industry — and PAM operations — had created new market conditions. Celadon’s representatives showed no interest in renegotiating the deal and instead sought another buyer. White Willow Holdings of Newfields, New Hampshire, back by New York City investment firm Luminus Management LLC, provided the most viable offer for the Mexico assets. In early May, a press release announced the New Hampshire carrier would acquire Celadon’s Mexico business for $2.7 million. Terms included the $18.5 million in Mexico tax refunds and a commitment on the part of While Willow Holdings to invest $550,000 in the Mexico operations immediately. Assets included in the transaction included all former Celadon holdings, the most prominent being Jaguar Logistics & Leasing, previously valued at $23.4 million. White Willow is no stranger to the Celadon proceedings. The company purchased Celadon’s North Carolina-based carrier Taylor Express earlier this year at the cost of $14.5 million. Celadon spin-off assets acquired in a joint venture A joint venture including Chicago-based Hilco Global and New York City’s Colbeck Capital Management acquired assets associated with a former Celadon truck leasing affiliate on May 1. The terms of the agreement were not disclosed. Former Hilco Performance Solutions president Steven Tanzi is CEO of the new venture to be known as H19 Capital LLC. H19 Capital should not be confused with 19th Capital, a similar joint venture between Celadon and Toronto-based Element Fleet Management Corp. When Celadon formed Quality Companies to handle its truck-leasing business in 2015, it assumed a minority role in the venture, owning 49.99% of 19th Capital. Celadon sold its entire share to Element Fleet Management three years later. Quality Companies came under federal scrutiny when Celadon auditors raised questions about investment strategies. The investigation revealed that executive decisions and handling of assets cost stockholders more than $60 million. The executives involved in the dealing were eventually charged with federal crimes. In the May 1 agreement, H19 Capital LLC acquired assets that included thousands of trucks and trailers, all service and support machinery equipment, intellectual property, a portfolio of accounts receivable, and 600 existing truck leases. Real estate included in the transaction consists of two truck yard leases and a 136,000-square-foot maintenance facility in Indianapolis. The facility has a storage capacity of 1,700 trucks. Hilco Global intends to continue operating the truck-leasing company and hopes to expand operations during the anticipated post-pandemic economic resurgence. Element Fleet Management originally planned to close 19th Capital and disburse its assets after three years. Officials stated more recently that the deteriorating market for used trucks forced a change in its time line, resulting in the sale to H19 Capital LLC. Element Fleet Management and H19 Capital noted that the agreement would save “dozens” of jobs. Celadon assets among $43 million in auction proceeds In late April, Ritchie Brothers Auctioneers of Houston held a two-day auction that included trucks and trailers previously owned by Celadon. While the exact equipment and auction value for Celadon-specific assets are unknown, the sale included 370 trucks and 350 dry van, reefer and flatbed trailers. FreightWaves reported that the auction included “hundreds of trucks and trailers” previously owned by Celadon. Likewise, Ritchie Brothers indicated it would be selling more than 300 Celadon trucks and 1,400 trailers, including International ProStars, Kenworth T680s and Volvo VNL6702s. The Houston auction also included farm and oil-drilling equipment, making it difficult to estimate the portion of the $43 million in sales related to the trucks and trailers. Preregistered bidders totaled 8,600 from 62 countries worldwide. Of total sales, 93% went to U.S. bidders, primarily in Texas, California and Florida. Other buyers included companies or individuals in Peru, India and Italy. Stakeholders selected Ritchie Brothers to sell more than 1,700 pieces of Celadon equipment at auction during March, April and May at 19 locations in the U.S. and Canada. Ritchie Brothers delayed all but three auctions due to COVID-19. As of mid-May, Ritchie Brothers plans to sell 563 pieces of Celadon equipment in online auctions at 16 locations by the end of June. A schedule of auctions is available at www.rbauction.com/store/celadon. The website also provides instructions for bidders and guidelines for limited on-site equipment inspections. Ritchie Brothers describes its inventory with the note, “Celadon Group’s reputation for using best-in-class trucks, maintenance programs and technology over their 30 years in business is second to none, and the pride in ownership shows in every asset.” Former Celadon executive team members assume new roles with new firms Reliance Partners, a commercial insurance agency with several U.S. locations, has named Thom Albrecht, a former Celadon executive, as its chief financial officer and chief revenue officer. Albrecht, while lacking experience in the insurance sector, brings his reputation as a leading analyst of freight transportation to the company. Reliance headquarters in numerous states, including Tennessee, Alabama, Texas, Illinois, Wisconsin, California and Florida. Albrecht is the last of Celadon’s five-member executive team to assume a leadership role at another U.S. firm. In January, former Celadon CEO Paul Svindland assumed the same post with STG Logistics of Chicago. Celadon’s former executive vice president and general counsel joined Svindland at STG Logistics in March, accepting the role of chief administrative officer and general counsel. In late April, Celadon’s former vice president and chief accounting officer Vincent Donargo joined the Indianapolis tech start-up Novus Capital Corp., a company announcing its intent to go public with a $100 million offering. Previously Celadon’s chief operating officer before the company’s bankruptcy filing, Jon Russell left the company in November 2019 to join Indianapolis-based TVC Pro Driver, a provider of legal services to commercial truck drivers and fleets.

QuikQ offers simplified mobile CAT Scale payments through Weigh My Truck app

FRANKLIN, Tenn. — QuikQ LLC and CAT Scale have partnered to provide a convenient way for truck drivers to to pay for their weigh directly from the cab of their truck using the Weigh My Truck mobile app. QuikQ is a full-service fuel-payment solutions provider that offers a mobile app and other services. CAT Scale’s Weigh My Truck app allows drivers to weigh and then get the weights displayed on their mobile device without ever leaving the cab. The app will also email a locked PDF copy of the scale ticket to email addresses specified by the driver. After a driver creates an online account with Weigh My Truck, the app will store the driver’s QuikQ billing information, truck number, email preferences and historical weigh transactions. Fleets can also set up accounts that allow driver management and provide back-end data files. “QuikQ’s philosophy of improving efficiencies for fleets is enhanced by our partnership with CAT Scale,” said Dean Troester, CEO of QuikQ LLC. “Our customers have seen improved hours-of-service utilization when fueling with our SmartQ RFID cardless process. The addition of mobile scale payments will give our customers more time on the road and improve the driver experience.” Delia Meier, senior vice president of CAT Scale, said she is excited about the new partnership. “Drivers and fleets alike have been able to realize significant time savings using the Weigh My Truck app,” Meier said. We are pleased to now be able to offer QuikQ card users the opportunity to use and benefit from Weigh My Truck.”

April 2020 Class 8 truck sales barely half of those a year ago

April was the worst month for new Class 8 truck sales in the U.S. market in more than three years. To find a worse month, you’d have to go back 37 months to February 2017. A total of 12,986 new Class 8 trucks were sold in April, according to information received from ACT Research (actresearch.net), a decline of 47.6% from the 24,480 sold in the same month of 2019. April sales dropped 23.1% from 16,892 sold in March. Of those trucks sold this April, 8,156 were fifth-wheel-equipped tractors, down 30.1% from March sales of 11,673 and down 25.5% from April 2019 sales of 18,303. The remaining 4,830 trucks, or 37.2%, were vocational units equipped with dump, refuse or other bodies. The percentage of vocational trucks is typically 25% to 30%, so the higher percentage in April indicates that sales of over-the-road trucks are taking a bigger beating than sales of vocational trucks. The April number was 7.5% lower than March sales and 25.5% lower than April 2019 sales. The declining sales were not unexpected, as numbers were already running nearly 28.0% behind last year’s pace. A condition of overcapacity in the freight market and uncertainty over economic conditions had already combined to put a damper on the market. Then came COVID-19. The closing of overseas manufacturers slowed imports; then the shutdown of domestic businesses deemed “nonessential” depressed available freight levels to crisis proportions. May sales aren’t expected to be much better, if at all, despite the gradual relaxing of stay-at-home orders and the reopening of businesses. That’s because of the time it takes to restart an economy that has been virtually shut down. “It takes a lot of people marching at the same speed to turn the manufacturing sector back on,” said Kenny Vieth, president and senior analyst at ACT Research, noting that, even though a plant may reopen, the parts and materials needed to function may not be readily available. “With current inventories and supply chains, we can say that April will probably not be the ‘bottom’ of the economic downturn,” he said. In the used Class 8 truck market, sales volumes declined 8% in April compared to March, according to the latest preliminary release of State of the Industry: U.S. Classes 3-8 Used Trucks published by ACT Research. Average prices for used tractors in dealer-to-dealer sales also fell 8%, while the average used truck sold was 2% older. Compared to April 2019, average prices were down 20%, while the age of the average truck dropped 5% and the odometer miles declined 2%. As for new trucks, the manufacturer that has taken the biggest hit so far in 2020, on a percentage basis, is International, according to information received from Wards Intelligence (wardsintelligence.com). Sales of 7,499 Class 8 trucks on the U.S. market for the first four months of the year lag 41.9% behind the 12,902 units sold at the same point last year. Market share for the period has dropped from 14.8% to 12.5%. International was the only OEM to sell more Class 8 trucks in the U.S. market in April than in March, 1,961 to 1,886 for an increase of 4%. Compared to April 2019, however, sales declined 44.6% from 3,547 sold in that month. Freightliner’s April sales of 4,315 trucks showed a decline of 27.9% from March sales of 5,983 and were 47.4% behind the 8,209 sold in April 2019. For the year to date, Freightliner’s 22,202 Class 8 trucks sold on the U.S. market trails last year’s January to April sales by 11,593 units, or 34.3%. The company’s share of the U.S. Class 8 market has dropped from 38.9% at the end of April 2019 to 36.9% this year, and 34.1% for the month of April. To find the last month that Volvo Trucks sold fewer than 1,000 Class 8 units in the U.S., you’d have to go all the way back to January 2012. The OEM sold 951 trucks in April, a drop of 44.6% from March sales of 1,717. Compared to April 2019, sales dropped more than half (59.6%) from 2,199 trucks sold. For the year to date, Volvo sales are down 31.2%, slightly more than the decline for the entire market. Volvo-owned Mack Trucks outsold Volvo Trucks in the U.S. Class 8 market in April with delivery of 1,063 units, a 24.3% decline from March sales of 1,404 and 44.8% beneath April 2019 sales of 1,924. Mack has actually gained market share in 2020, going from 6.6% of Class 8 trucks sold at the end of April 2019 to 7.8% at the same point this year. April 2020 sales represented 8.4% of the market, which may be attributable to the heavy presence Mack has in the vocational market. Kenworth sold 2,290 Class 8 trucks in April, a 15.7% decline from March sales and 39.0% behind April 2019 sales. For the year to date, the company has sold 9,508 units, 20.5% behind last year’s pace of 11,955. As for market share, the company’s smaller-than-average sales declines have actually increased its share of the market, which climbed from 13.8% at the end of April last year to 15.8% at the same point this year and reached 18.1% for the month of April 2020. Peterbilt sales of 1,553 were 30.9% behind March sales of 2,247 and 59.6% beneath April 2019 sales of 3,842. For the year to date, Peterbilt sales nearly match the industry average, declining 30.3% compared to 30.7 for the entire industry.

FMCSA issues guidance on conducting compliance assessments during COVID-19 crisis

WASHINGTON — The Federal Motor Carrier Safety Administration (FMCSA) on May 19 released new guidance for motor-carrier compliance reviews under 49 CFR part 385, subpart A, during the COVID-19 public health emergency. The guidance is effective immediately and will remain in effect until the presidentially declared state of emergency is revoked. The guidance is not law, and is intended to clarify existing requirements under the law. Under the guidance, safety investigators may use technology to access a carrier’s information and records, allowing them to conduct evaluations without on-site visits, thus reducing potential exposure to the novel coronavirus. The guidance states, “Using the same standards otherwise applicable, FMCSA will assign safety ratings following a compliance review even if no on-site review activities have taken place. FMCSA will continue to apply the procedures in 49 CFR part 385, including the Safety Fitness Rating Methodology (SFRM) in Appendix B, prior to assigning a safety rating. This guidance does not apply to compliance reviews conducted under 49 CFR part 385, subpart B.” The FMCSA is required to conduct reviews to determine whether owners and/or operators of commercial motor vehicles are fit to operate safely, and safety ratings are assigned to motor carriers after in-depth examinations of the carriers’ records and operations. “Although the definition of ‘compliance review’ in 49 CFR 385.3 describes these reviews as ‘on-site,’ in practice, the advent of electronic recordkeeping and other technology now allows FMCSA to perform the same investigative functions remotely that it could perform previously only by in-person reviews of the motor carrier’s files,” the guidance continues. Carriers can securely upload documents directly to the FMCSA; records may also be transmitted via fax, email or telephone or video calls. In addition, email and telephone or video calls may be used in place of in-person meetings during a compliance review or when discussing the findings of a compliance review. The FMCSA noted in the guidance that “because safety investigators are able to follow all of the procedures in 49 CFR part 385 without physically visiting the motor carrier’s business premise, compliance reviews that do not include an ‘on-site’ component will limit exposure risk to COVID-19, consistent with current regulations, without compromising FMCSA’s safety mission.”

April’s preliminary net trailer orders hit all-time low volume

COLUMBUS, Ind. — Preliminary April net U.S. trailer orders were 250 units, an all-time monthly low for the industry, according to information released by ACT Research May 19. Volume was 97% down from March and 98% below the same month last year. That all-time low volume resulted from a combination of weak new order placement and disappointingly high cancellations. “The impact of COVID-19 pressure on commercial vehicle business conditions is obvious in these preliminary April results,” said Frank Maly, director of commercial vehicle transportation analysis and research at ACT Research. “Weak new order placement was the result of fleets swiftly moving to the sidelines, as freight volume and lower freight rates resulted in disappointing financial results,” he continued. “While some fleets continued to benefit from the movement of essential goods and materials, that support was beginning to wane as the month closed. Those fleets began to join the industrial, consumer goods, and retail-oriented carriers, where the lockdowns have depressed freight volumes.” Preliminary reports show that less than 6,000 new trailer orders were placed in April, according to Maly. “However, cancellations almost completely offset those new orders, as fleets backed away from prior commitments in a rapid reaction to the unprecedented business conditions generated by the economic shutdown. Indications are that both the dry van and reefer segments posted more cancellations than new orders in April,” he said. “Don’t expect any significant rebound in order placement until improvement in business conditions and an unwinding of the economic shutdown begins to improve freight volumes.”

American Trucking Association’s truck tonnage index plunged 12.2% in April

ARLINGTON, Va. — American Trucking Associations’ (ATA) advanced seasonally adjusted For-Hire Truck Tonnage Index contracted 12.2% in April after increasing 0.4% in March. In April, the index equaled 104.9 (2015=100) compared with 119.5 in March. “April’s monthly decline was the largest in 26 years, when there was a labor strike in April 1994,” said Bob Costello, chief economist for ATA. “Considering that April factory output and retail sales plummeted, the large drop in truck freight is not surprising,” he continued. “However, not all fleets saw large declines in April. Those hauling food for grocery stores and those involved in the online retail supply chain outperformed most other fleets. Some fleets witnessed very large declines in freight last month.” March’s gain was revised down to 0.4% from the 1.2% increase reported in ATA’s initial April 21 report. “These historic declines show just how much trucking was impacted by our national response to the COVID-19 pandemic,” Costello said. “As the nation starts taking small steps toward reopening, we should see some modest improvements in the freight market, but the size of April’s decline gives us an idea of how long the road back may be.” Compared to April 2019, the seasonally adjusted index contracted 11.3%, the largest year-over-year decline since early 2009. This drop was preceded by a 3.5% year-over-year gain in March. Year-to-date, compared with the same period in 2019, tonnage was down 1.3%. The not-seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 104.6 in April, 12.8% below the March level (120). In calculating the index, 100 represents 2015. 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. These preliminary figure are subject to change in the final report, which is issued around the fifth day of each month. The report includes month-to-month and year-over-year results, relevant economic comparisons and key financial indicators.