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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.

CHICAGO — Echo Global Logistics Inc., a provider of technology-enabled transportation management services, and TruckPark Inc., a provider of truck parking and travel guidance services, announced a strategic partnership to offer EchoDrive Preferred members access to TruckPark’s network of overnight commercial truck-parking resources at a discounted rate. The goal of the partnership is to provide an efficient and cost-effective way for truck drivers to find, reserve, and pay for guaranteed, secure parking in real time. EchoDrive Preferred is a complement to Echo’s proprietary EchoDrive web portal and mobile app that gives carriers real-time access to search, bid, manage, track and get paid on freight hauled for Echo. The platform’s load-management tool and document-upload capabilities streamline operations, keep dispatchers organized and help drivers get back on the road faster. Through the partnership with TruckPark, EchoDrive Preferred members will be eligible for parking at discounted rates, including 50% off for owner/operator fleets of one to five trucks and 25% off for company drivers and carriers with six or more trucks. “At Echo, we’re continuously working to simplify the lives of those in our carrier and driver community, especially during these unprecedented times,” said Dave Menzel, the company’s president and chief operating officer. “As the effects of COVID-19 continue to impact truck drivers across the country, we’re proud to partner with TruckPark to help EchoDrive Preferred members save time and money when searching for parking.” Jay Gustafson, senior vice president of marketplace solutions for Echo, said the company realizes that finding safe, secure overnight parking is not always an easy task for drivers. “A recent survey of Echo drivers showed that on average, they spend about 11 hours a month looking for parking, a substantial amount of time they could instead be using to earn money on the road,” Gustafson said. “By reducing the time it takes for drivers to secure parking, this partnership can truly help EchoDrive Preferred members earn more money over the course of a year.” Echo’s management said the addition of TruckPark’s services will strengthen the relationships Echo has with its network of more than 50,000 transportation providers and help to attract new carriers as well. “At TruckPark, our company is predicated on providing the best experience for truck drivers, which includes the health and safety of drivers as well as the security of their payloads,” said TruckPark CEO Anthony Petitte. “Having access to Echo’s vast carrier network gives us the ability to greatly enhance the driver experience.” Joshua Walls, chief operating officer for TruckPark, concurred. “Through this partnership with Echo, we’re excited to continue our mission to revolutionize the trucking industry by providing even more drivers with our comprehensive app,” he said.

According to information released by DAT on May 19, spot market metrics continued their upward trend the week of May 11-17, with ratios on the DAT One network climbing in response to seasonal demand. As some states attempt to return to normal life and produce enters supply chains, the increased demand brings some relief for carriers that have struggled with low rates during the COVID-19 crisis. For the latest freight forecasts in response to COVID-19, visit DAT.com/COVID-19. For more info on lane rates, check out the Rate Trend of the Week on the DAT blog. The charts below show the national average rates for the month to date, including fuel surcharges.

For the first time since late March, rates rose on most high-traffic lanes during the week of May 4-10, according to a report by DAT. Load posts on the DAT One network also continued to climb, with businesses reopening in some states and produce season increasing the demand for truckload shipments. Prices and load-to-truck ratios remain low, but freight markets appear to have turned the corner. The charts below, courtesy of DAT, show the national average rates for the month to date, including fuel surcharges.

COLUMBUS, Ind. — Recovery for global economies and North America’s commercial-vehicle demand should begin in 2021, according to ACT Research’s latest release of the North American Commercial Vehicle Outlook. According to the report, 2021 is being forecast as the transition year as economies move from COVID-19’s negative impacts into a meaningfully better situation in 2022. The North American Commercial Vehicle Outlook forecasts the future of the industry, looking at the next one to five years, with the objective of giving OEMs, Tier 1 and Tier 2 suppliers, and investment firms the information needed to plan accordingly for what is to come. The report provides a complete overview of the North American markets. In addition, the report takes a deep dive into relevant, current market activity to highlight orders, production and backlogs, shedding light on the forecast. Information included in the report covers forecasts and current market conditions for medium- and heavy-duty trucks/tractors and trailers; the macroeconomies of the U.S., Canada and Mexico; publicly traded carrier information; oil and fuel price impacts; freight and intermodal considerations; and regulatory environment impacts. “Without clear forward visibility on the COVID-19 endgame, the crystal ball is particularly opaque, as the economy begins to reemerge from its medically induced coma,” said Kenny Vieth, ACT’s president and senior analyst. “Even as we work through the logic and implications of bigger picture issues, more practical considerations for 2021 forecasts arise,” he said. “History shows that even from the lowest lows, the manufacturers can’t snap their collective fingers and bring production up immediately. Returning to normalized production levels is a process that is hard to rush.” Vieth continued, “Coupling an otherwise structurally sound pre-COVID economy, with strong governmental support and rising pent-up demand, there is a case for the economy to rebound into 2021. We believe maturing millennials will be the key to pushing the economy forward as they resume their transition to marriages, kids and mortgages.” Regarding North America’s commercial vehicle demand, Vieth commented, “Underlying fundamentals for the medium-duty market took a direct hit from COVID-19, as it impacted the consumer portion of the economy severely. The heavy Class 8 and trailer markets are seeing falling orders, rising cancellations, and backlogs getting pushed to later build dates. When the economy ultimately rebounds, accessible capacity is likely to be short, leading to strong rebounds in freight rates, carrier profitability and ultimately unsated vehicle replacement demand.”

FORT LAUDERDALE, Fla. — Fleet Advantage, which provides truck and trailer financing options, has launched a new sale-leaseback program to infuse cash and flexibility into transportation fleets. This program is designed to help fleet organizations substitute for lost revenues during the ongoing COVID-19 pandemic. Through the sale-leaseback program, a company selects assets from its fleet that are older, inefficient and less reliable. Fleet Advantage will purchase those assets and lease them back to the fleet for an interim period; then the fleet can transition to new equipment when ready. This practice enables organizations to generate cash in the near term, which can be critical because of the COVID-19 pandemic and the strain the crisis has placed on companies and the economy. The cash gained by the sale-leaseback program can be used for immediate internal needs or to simply provide extra working capital. “We’re launching this program to help our clients with transportation fleets realize an immediate infusion of cash and flexibility into their organizations,” said John Flynn, CEO of Fleet Advantage. “Having additional cash on hand is critical for today, but the flexibility to upgrade to newer truck technology with advanced safety features tomorrow will help fleets come out of the pandemic with a significant competitive edge through financial and operational efficiencies gained.” For more information about Fleet Advantage’s sale-leaseback program, click here.

ROCKFORD, Ill. – Bergstrom Inc., a designer and manufacturer of cab climate systems for heavy-duty commercial trucks, off-highway machines, and specialty vehicles, recently announced that the company’s board of directors has appointed Dan Giovannetti as president and chief Executive Officer. Giovannetti has been serving as interim CEO since November 2019. “The board and I are confident that Dan is the right person to continue to lead the company,” said Dave Rydell, chairman of Bergstrom. “He is a seasoned leader with significant experience within Bergstrom, operating efficiently at scale and delivering value to the company. His experience in finance, quality, business systems and operations, along with having a great knowledge of Bergstrom’s product line and global outreach, will serve Dan well in the year ahead. We are lucky to have him as our CEO.” Giovannetti has been with Bergstrom for 16 years and brings valuable experience to the position. In his last role as chief operating officer, he was responsible for global manufacturing and quality in addition to overseeing all financial and IT operations. “I am incredibly excited to assume this new role and for the future of the company,” said Giovannetti. “We have an exceptionally talented team at Bergstrom that is focused on taking decisive actions to transform the business, continuing to innovate our products in new and diverse ways, and unlocking future growth opportunities.” Giovannetti has worked in several capacities since joining Bergstrom in 2004 including chief financial officer where he was responsible for overseeing financial and IT functions and chief business systems management officer where he led Bergstrom’s global quality and information technology initiatives. Prior to that, he served as the Global Vice President of Quality & 6 Sigma, to which he was responsible for overseeing Bergstrom’s quality and continuous improvement activities. Prior to joining Bergstrom, Giovannetti worked for Pactiv Corporation. He served in various operational and financial roles during his 19 years with Pactiv including manufacturing manager, director-consumer/food service division and division controller.

This guest opinion, written by industry pricing expert Mark Montague, was originally posted on DAT’s blog on April 21. Recent news has been all about the downturn in freight volumes, and the lower rates that accompany smaller volumes. Whenever freight markets go soft, we analysts like to look at changes that can help pull us out of the current pattern. In the midst of much gloom about the freight marketplace, we look for some positives that can help us through the next couple of months. With much manufacturing like the automotive supply chain shut down, a lot of additional capacity is in the spot marketplace. Some shippers are shopping the spot market for bargains, which erodes contract volumes. There is a lot of pressure on truckload rates and, also on freight accessorials. As we transition into summer, the normal pattern is for volumes on the West Coast to improve. Even with many businesses closed, we are seeing the underlying pattern repeat in data. First, as a nation we are not going to run out of food. The biggest issue right now is that production which went into foodservice has no place to go, because of the closure of restaurants for dining. Foodservice companies are trying mightily to transition into becoming retail grocery suppliers. This isn’t as easy as making a sale. The types of products and size of the packaging often isn’t suitable for retail grocery operations. Given time, the foodservice supply chain will adapt. Trucking companies that focused on moving foodstuffs under contract for retail chains are doing better than most. The US does grow about 70% of the food consumed in this country, and the next highest supply comes from Mexico via gateways in Texas, Arizona and California. In some cases, meat-packing plants have been shut down due to illness from the coronavirus, so there is a possibility of spot food shortages of certain items. California harvests look strong. Second, there have been concerns about the labor supply responsible for harvesting our fresh fruit and vegetables. According to multiple sources, issues with migrant labor have been resolved and under the H-2A visa, guest workers are being welcomed as essential workers. Additional positive news states that California agriculture looks to be in good shape, neither too wet nor too dry. In fact, many crops look to have outstanding seasons, including strawberries, blueberries and stone fruit. Strawberries are under harvest at the time of this writing from Oxnard, Calif, (19% of California market share), with more coming from Santa Maria (35% market share). By early May, expect Watsonville (45% market share) to hit peak numbers. This should be ongoing through the Fourth of July. West Coast freight has been in dire straits, with current rates are worse than in the 2009-2010 time period in some cases, so any increases in volumes will help shore up pricing. Florida freight takes a hit. On the East Coast, things have been less promising. Much of the Florida produce goes into the food-service supply chain. There are numerous reports of dumping vegetables and milk products due to lack of appropriate demand. The Northeast experienced a cold snap around Easter, which further cut the consumption of produce. Who wants to have watermelon when temps are in the 30s? The good news, if there is any, is that traffic on Interstate 95 and other area roads serving the Northeast has been low, facilitating transit with fewer delays. A third concern has been driver safety. Reports from the field indicate few instances of drivers becoming ill. Contact with shipping personnel has been minimal. With many shippers and receivers instituting distancing, drivers are not allowed on docks, and paperwork is placed in a remote location. But drivers are having trouble finding available restrooms and sanitizer. Many trucking companies have now been able to secure masks and gloves, although that was a challenge at first. Carriers appear up to the task, with ready and willing drivers, so food and essential groceries continue to move. Seasonal produce should be on the shelves in increasing volumes the next couple months. DAT forecasts anticipate volumes to at least stop declining as we transition into May and has the potential to build as we approach June, especially if key industries can be reopened at least on a limited basis. Mark Montague recently retired as DAT’s Industry Pricing Analyst. Montague worked for DAT for more than a decade and was instrumental in developing the spot market rates database and analysis tools in DAT RateView. Prior to joining DAT, Mark applied his expertise in logistics, rates and routing as a logistics manager and analyst for carriers, 3PLs and shippers. Mark holds an MBA in transportation management from Indiana University’s Kelley School of Business.

COLUMBUS, Ind. — Preliminary North American Class 8 net orders in April fell to 4,100 units, down 46% from March and 72% lower than an easy year-ago comparison, according to information released May 5 by ACT Research. Complete industry data for April, including final order numbers, will be published in mid-May. “April represents the first full month of COVID-19 impacts on the trucking industry, and given broadly halted economic output leading to a sharp drop in freight volumes and rates, as well as more empty miles from fragmented supply chains further impacting carriers’ profitability, a negative order number was within the realm of possibilities,” said Kenny Vieth, president and senior analyst for ACT Research. “We suspect that, as was the case in March, instead of canceling, order holders are content to move orders from close-in to later build dates, as they analyze the ongoing COVID impact,” he said. “From a seasonal perspective, April is a relative neutral Class 8 order month, and as such, seasonal adjustments adds little to actual data. On that basis, April was the weakest Class 8 order month since September of 1995, which actually produced a negative net order number.” 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. It 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 more. A first look at preliminary net orders is also published in conjunction with the report.

WASHINGTON — The Federal Motor Carrier Administration announced Friday (May 1) that the agency has launched its Crash Preventability Determination Program (CPDP), giving motor carriers to improve their CSA (compliance, safety, accountability) scores. Under the program, motor carriers may submit a request for data review for eligible crashes that occurred on or after Aug. 1, 2019. Those requesting data review must also provide the police accident report, along with supporting documents, photos or videos, through the DataQs website. The CPDP stems from the Crash Preventability Demonstration Program the FMCSA started in July 2017, which proposed to evaluate the preventability of eight categories of crashes through submissions of Requests for Data Review to its national data-correction system (DataQs). On Aug. 5, 2019, based on experiences with the demonstration program, FMCSA proposed a new CPDP with a streamlined process. Based on comments received in response to the August 2019 proposal, FMCSA established the CPDP, which expands the types of eligible crashes, modifies the Safety Measurement System to exclude crashes with “not preventable” determinations from the prioritization algorithm, and notes “not preventable” determinations in the Pre-Employment Screening Program. The following crash types are eligible for participation in the program: Struck in the rear type of crash when the commercial motor vehicle (CMV) was struck: In the rear; or On the side at the rear. Wrong direction or illegal turns type of crash when the CMV was struck: By a motorist driving in the wrong direction; or By another motorist in a crash when a driver was operating in the wrong direction; or By a vehicle that was making a U-turn or illegal turn. Parked or legally stopped type of crash when the CMV was struck: While legally stopped at a traffic-control device (e.g., stop sign, red light or yield); or while parked, including while the vehicle was unattended. Failure of the other vehicle to stop type of crash when the CMV was struck: By a vehicle that did not stop or slow in traffic; or By a vehicle that failed to stop at a traffic control device. Under the influence type of crash when the CMV was struck: By an individual under the influence (or related violation, such as operating while intoxicated), according to the legal standard of the jurisdiction where the crash occurred; or By another motorist in a crash where an individual was under the influence (or related violation such as operating while intoxicated), according to the legal standard of the jurisdiction where the crash occurred. Medical issues, falling asleep or distracted driving type of crash when the CMV was struck: By a driver who experienced a medical issue which contributed to the crash; or By a driver who admitted falling asleep or admitted distracted driving (e.g., cellphone, GPS, passengers, other). Cargo/equipment/debris or infrastructure failure type of crash when the CMV: Was struck by cargo, equipment or debris (e.g., fallen rock, fallen trees, unidentifiable items in the road); or crash was a result of an infrastructure failure. Animal strike type of crash when the CMV: Struck an animal. Suicide type of crash when the CMV: Struck an individual committing or attempting to commit suicide. Rare or unusual type of crash when the CMV: Was involved in a crash type that seldom occurs and does not meet another eligible crash type (e.g., being struck by an airplane or skydiver or being struck by a deceased driver). For more information about and links to resources for the FMCSA’s Crash Preventability Determination program, click here. Image courtesy of FMCSA.  

COLUMBUS, Ind. — Used Class 8 same-dealer sales volumes saw just a 1% drop month over month in March, with longer term sales rising 5% year over year compared to March 2019 (12% year to date), according to the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research. The report also indicated that used Class 8 average price, miles and age in March were essentially unchanged compared to 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 three months of 2019 by 15%, 1% and 7%. The 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. “Dealers are reporting that there are more trucks than buyers, which is not new news. This has kept downward pressure on prices, particularly for late model aerodynamic sleepers,” said Steve Tam, vice president at ACT Research. “Some dealers are saying they just want to get rid of inventory and take their losses. Dealers had become accustomed to getting more money than what is normal for used trucks in 2018 and early 2019,” he added, “When trucks are overvalued, sellers can ask for higher pricing on their used trucks, as long as demand supports higher-than-normal prices. Unfortunately, when the market adjusts, taking big losses is the only solution. The good news for buyers in a falling used-truck market is that there are some very good bargains to be had.”  

COLUMBUS, Ind. — According to ACT Research’s latest State of the Industry: NA Classes 5-8 Report, truck transportation showed relatively strong performance on restocking activity into the end of March, making the month’s data largely transitional rather than representative of activity expected in coming months due to the global COVID-19 pandemic. “The most obvious signs that the pandemic is starting to impact data can be found in March’s Class 8 orders and cancellations,” said Kenny Vieth, ACT Research president and senior analyst. “Deteriorating new-order activity and meaningfully higher cancellations dropped Class 8 net orders to their lowest level in over 10 years.” ACT’s State of the Industry: NA Classes 5-8 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. This 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 this report. “In addition to the fall of Class 8 net orders, cancellations rose to an 18-month high, and with the freight surge subsiding, freight rates fell sharply into early April. Added to the clifflike decline in economic activity over the past six weeks, there is nothing to suggest any near-term improvement in order conditions,” Vieth said in regard to the heavy-duty market. Regarding the medium-duty markets, he commented, “Similar to Class 8, medium-duty orders and somewhat elevated cancellations are the only places to find clues in March of the COVID-19 impact. Net orders were down at about half the Class 8 rate, and like Class 8, the pandemic hits a medium-duty market sporting very large new-vehicle inventories.” For more information about ACT’s State of the Industry: Classes 5-8 Report click here.