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Echo, TruckPark partner to offer discounted parking for commercial drivers

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.

Spot rates rise as number of available trucks drops

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.

First week of May shows signs of recovery for truckload volumes

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.

ACT offers predictions on COVID-19 impact on global economies, commercial-vehicle demand

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.”

Fleet Advantage’s sale-leaseback program offers flexibility, financial relief for fleets

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.

Can the COVID-19 crisis serve as a ‘vaccination’ against nuclear verdicts in trucking?

The COVID-19 crisis isn’t the type of tunnel a nation enters with expectations of an ever-brightening light ahead. After all, an enemy with the ability to kill millions and destroy the global economy isn’t something a nation can look beyond. But in terms of the trucking industry and its executives, drivers and support personnel, history may view the current crisis as a turning point. 2020 could go down as the year truck drivers attained a status similar to what first responders received after 9/11 — heroes, or at least doers of heroic deeds. The shift in public opinion has been a long time coming. Not since the 1970s, when public opinion of truckers was based more on myth than reality, have truck drivers been as popular as they are today. Crisis situations tend to pull the veil from decades of misconceptions and negative publicity. Public-opinion surveys as recent as last October deemed tractor-trailers and their drivers as menaces of highways. But as the COVID-19 crisis spread, anecdotal evidence sprung up signaling a change of opinion. The vital role the trucking industry plays in the nation’s economy shone brightly, and Americans have recognized it. Billboards offering thanks to truckers have popped up along interstates and highways, and testaments of drivers being personally thanked by strangers are numerous. Small businesses are even making special efforts to ensure drivers have what they need to keep them safe as they make the deliveries that will help save the economy. An early April White House ceremony sang the praises of truck drivers. President Trump stated that “America’s truck drivers are the foot soldiers carrying us to victory,” a reference to the many drivers working seven days a week to complete deliveries of essential freight. Ultimately, if the trucking industry is truly to be thanked for its efforts, the evidence may first be seen in the legal system, where juries have increasingly returned “nuclear” verdicts against the industry. Americans aren’t known for their sympathies for insurance companies. After all, dealing with an insurance company can bring 10 times the aggravation of being involved in a car accident. When the insurer does meet its obligations, it frequently sends its “thank you” in the form of a skyrocketing premium or outright cancellation of a policy. Insurance companies are not blameless in the high costs of driving a vehicle, and they share the blame for the crippling premiums truck drivers and carriers pay to fulfill their “heroic” roles. Still, insurance companies increase premiums to remain viable, cover costs and turn a profit. Maintaining the benefits insurers once provided for their customers became more difficult when personal-injury lawyers factored into the equation. Their ability to convince juries to return “nuclear” verdicts against the trucking industry played no small role in building the negative public opinion of the trucking industry in recent decades. The hundreds of personal-injury lawyer billboards lining the roadways of any large American city are hard to miss. For every billboard thanking truck drivers, a hundred continue to encourage motorists to speed to the nearest law firm if they have even a minor run-in with a tractor-trailer. The personal-injury attorneys specializing in incidents involving trucks on the highways are masters at twisting information and statistics to convince motorists and juries that trucks are the bane of highway traffic. Take for instance the statistics involving rear-end collisions. When a rear-end collision happens, fault is seldom placed on the leading vehicle or its driver. After all, it’s a matter of following distance. If the proper distance is maintained, the trailing vehicle’s driver will be able to stop before hitting the lead vehicle. The basic safety measure is as sure as the law of gravity, and every state has traffic laws against “following too close.” A personal-injury attorney is skilled at convincing a jury that a traffic law that’s almost as sure as the law of gravity does not apply in the case of a rear-end collision involving injury or death. The attorney’s arguments deem basic traffic laws insignificant; in fact, any actions of the lead vehicle’s driver are immaterial. And the arguments can result in the type of nuclear verdicts that juries are returning with increasing frequency. The tactics an attorney uses to reverse fault in the case of a rear-end collision are simple. One law firm, known to motorists for its countless billboards vilifying tractor-trailers, openly explains the approach on its website. Fault in such an accident, according to what is posted on the firm’s site as of April 17, 2020, does not rest with either driver; instead, the vehicle itself is at fault. For instance, if the tractor-trailer was equipped with “truck under ride guards” (TUG), shields intended to prevent vehicles from becoming trapped beneath a trailer, the number of accidents involving injuries or fatalities would plummet. Currently, the website claims that federal safety standards require TUGs on trucks weighing over 10,000 pounds. But it also states that the FMCSA is considering strengthening requirements to include TUGs on the front, rear and sides of all trucks. In other words, the attorney’s argument is that the law does not necessarily require TUGs in all situations, but it should. That’s enough for juries to return large judgments in favor of the plaintiffs. While insurance companies are busy defending lawsuits against freight carriers, the seemingly improved public image of truck drivers on jury verdicts remains to be seen. In July 2019, Rep. Matt Cartwright (D-Penn.) introduced a bill that would increase the minimum liability insurance a trucking company must carry from $750,000 to $4.5 million, an increase of 500%. If passed, the bill would force many small carriers to cease operations under the weight of increasing insurance premiums. To date, Rep. Cartwright’s bill has not gained traction, possibly in part to Rep. Cartwright history as an attorney with a reputation for suing freight carriers. His family still operates a law firm, so in debate, the question of conflict of interest would weigh heavily on the bill’s chances of advancing. For many, Rep. Cartwright’s bill will be viewed as a means of providing “reptile” attorneys access to the riches held in every tractor-trailer on the road — rolling ATM machines, if you will. Then again, the public already has negative perceptions of personal-injury lawyers, yet jurors still return nuclear verdicts rewarding their efforts. Secretary of Transportation Elaine Chao said at the White House event honoring truck drivers, “Truckers are playing a heroic role in helping America cope during this crisis and will play a critical role in economic recovery.” It is too soon to determine the impact of the public’s sudden and dramatic positive view of truck drivers in the past several weeks. But with government officials and business owners lauding them as heroes, will juries continue to view the industry a rolling ATM machine? For the time being, those monitoring the tractor-trailer versus personal-injury-attorney battle may find counting billboards to be the most accurate barometer. [Photo Credit: AP Photo: Matt York]

Bergstrom appoints Dan Giovannetti as president and CEO

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.

Will spring produce stabilize trucking?

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.

Preliminary market report for April shows COVID-19’s negative affect on truck sales deepening

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.

Joint research by ATRI, OOIDA, identifies COVID-19 impact on trucking, offers recommendations

ATLANTA — The nation’s truckers provide vital resources during COVID-19 pandemic but the crisis has still had a negative impact on the industry as a whole, according to a report released today (May 5) by the American Transportation Research Institute (ATRI) and the Owner-Operator Independent Drivers Association (OOIDA). According to the report, the global crisis has affected all aspects of trucking operations, including deliveries, travel times, detention and truck parking. The report also provides recommendations and guidance on future strategies should another national disaster strike. “The trucking industry has weathered national disasters in the past and is doing so again through the current COVID crisis,” said Rebecca Brewster, ATRI president and COO. “However, this latest data quantifies the challenges motor carriers and drivers are facing during this pandemic to keep essential goods moving.” Key findings of the joint research effort include: Long-haul trips are down considerably as container imports at ports dried up. At the same time, local trips under 100 miles increased by more than 100%. While certain segments of the industry, such as medical devices, perishable foods and paper products, saw solid COVID-19-related increases in truck traffic, nearly 50% of respondents described freight levels as “somewhat” to “much” lower due to COVID-19. Nearly 70% of specialized and tank truck operations were negatively impacted. In nearly every instance, smaller fleets reported greater negative impacts than larger fleets. More than 40% of respondents said truck parking was not any worse due to the COVID-19 pandemic, but categorized by fleet size, the larger fleets did describe truck parking as more difficult to find during the pandemic. The research confirmed that driver detention generally did not change due to COVID-19; however, owner-operators and small fleets experienced much worse detention delays relative to larger fleets. In terms of disaster planning, almost 80% of owner-operators and small fleets do not have any plan in place for managing operations during natural disasters. The trucking industry generally has a favorable attitude towards state and federal responses, policies and programs set up to address the pandemic, with the federal response viewed as more favorable than the state responses. “This research puts solid numbers to what we otherwise only suspected,” said Andrew King, research analyst for OOIDA. “While we may be turning the corner on the COVID pandemic, we’re not out of the economic woods yet.” To download the full report, click here.

Pilot Co. introduces rebranded fuel card with new fleet benefits

KNOXVILLE, Tenn. — Pilot Co., which operates Pilot and Flying J travel centers, has rebranded its commercial-fleet credit card and rewards program. The new Axle Fuel Card promises quick credit approvals and enhanced payment terms, money-back rewards, and loyalty benefits for fleet drivers. “In the current environment, trucking companies and their drivers are facing unprecedented challenges as they work incredibly hard to supply our country. The majority of goods that we rely on every day are transported by truck, and we are committed to doing everything we can to keep them moving,” said Jimmy Haslam, CEO of Pilot Co. “Through the new Axle Fuel Card, we’re able to extend much-needed credit to the industry with added rewards for fleets and professional drivers. Our goal is to provide fleets of all sizes with a reliable credit solution that fuels their business and enables them to focus on the road ahead.” The Axle Fuel Card is accepted at more than 950 locations in the U.S. and Canada, including Pilot and Flying J travel centers, the One9 Fuel Network and Pilot Flying J Truck Care Service Centers. The card can be used for fuel purchases, truck care services and select truck merchandise, as determined by each fleet. Pilot Co. says the Axle Fuel Card has no transaction, account management, annual or other hidden fees and that money-back rewards earned go toward fuel purchases. In addition, users have access to an enhanced online account portal. Drivers using the Axle Fuel Card will earn one bonus loyalty point per gallon at Pilot and Flying J locations and two bonus loyalty points per gallon at One9 Fuel Network locations. In addition, cardholders can receive savings at Pilot Flying J Truck care centers, including $30 off any tire or service and 10% off the service center’s hourly rate, and there is no callout fee for roadside service. For more information, visit pilotflyingj.com/axle-fuel-card.

FMCSA launches Crash Preventability Determination Program, allows crash-fault disputes for CSA scores

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.  

Research explores impact of COVID-19, recovery on nation’s transportation, commercial-vehicle markets

Columbus, Ind. — In the release of its Commercial Vehicle Dealer Digest, ACT Research reported that the North American commercial-vehicle market, as well as the global economy, addressed the spiraling pandemic with shutdown announcements, but the report continued by preparing readers for the restarting phase to come. The report, which combines ACT’s proprietary data analysis from a variety of industry sources, paints a comprehensive picture of trends impacting transportation and commercial-vehicle markets. This monthly report includes a relevant, high-level forecast summary, complete with transportation insights for use by commercial-vehicle dealer executives, reviewing top-level considerations such as for-hire indices, freight, heavy- and medium-duty segments, the total US trailer market, used-truck sales information and a review of the nation’s macro economy. “There has been a level of incrementalism to date in shutdown announcements by state and manufacturing entities, and generally speaking, to date we have seen one and two-week extensions to the initial timing of planned shutdowns, with many ‘playing this by ear’,” said Kenny Vieth, ACT’s president and senior analyst. “The immediate challenge, of course, is saving lives, but the next challenge is saving livelihoods, as the globe does not have the luxury of waiting a year or two for a , to be developed before the solution itself becomes the cause that risks lives.” Vieth elaborated on the subject of restarting the nation’s economy, noting that “new layers of safety and testing protocols” will be needed “throughout an already complex supply chain, from the lowest to highest tiers and throughout the logistics and warehousing components, not just for new builds, but also for the aftermarket side of the business.” “It is one thing for the automotive/commercial/off-road industries to get supply chains up and running; it is another entirely to get buyers to market when the economy has so recently cratered and going outside poses an existential risk,” he said. Vieth concluded, “In a nutshell, the extent of the damage to the US economy will be directly proportional to the time it takes to bring the virus under control. Although no one really knows, with new COVID cases starting to level and vaccine trials underway, we hope that the herculean efforts of the past month or so have made a difference and life as we knew it can begin to return as the situation is de-risked.”

Report shows used-truck sales up year to date but price, other factors decline for long term

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.”  

Freight rates, volumes slip, according to latest For-Hire Trucking Index

COLUMBUS, Ind. – Last week ACT Research released the latest For-Hire Trucking Index, which included March data. The index showed contraction in both volumes and freight rates, now at 42.4 and 43.2, respectively. Productivity, while neutral at 50.0, was likely supported by the temporary pantry-stocking phenomenon. “Because of the talk surrounding a surge in freight driven by pantry stocking, the volume index decline was somewhat surprising, but likely reflects the start of shutdowns late in March,” said Tim Denoyer, vice president and senior analyst for ACT. “COVID-19 is adding a new level of pricing pressure due to the sharp decline in load volumes into an already overcapacitized market,” he said regarding the drop in freight rates. “Our for-hire carriers continue to show better capacity discipline than the industry at large, which we see as a good leading indicator of tighter capacity down the road.” Denoyer noted that, in looking at the overall picture, the drop in the supply-demand balance reading accelerated in March at 44.9 after a “modestly negative” seasonally adjusted reading of 48.8 in February. “The cyclical bottom that was being built prior to COVID-19 has been laid low by the health crisis,” he said. “Fleets are taking aggressive actions to protect their people, including following CDC (Centers for Disease Control and Prevention) guidelines, implementing virtual meetings and orientations, limiting the use of cash, and finding creative ways to procure sanitizer.” In other market-research news, ACT’s Alternative Fuels Quarterly shows that retail sales of Class 8 natural gas trucks in U.S. and Canada showed gains for January and February 2020. “Sales of natural gas-powered vehicles as reported by the six major truck OEMs, who account for approximately 60% of the heavy-duty natural-gas market, were mixed in the December 2019 through February 2020 time period,” said Steve Tam, vice president of ACT Research. “Through the first two months of 2020, reporting manufacturers of natural gas-powered Class 8 units rose 29% year to date compared to the first two months of sales in 2019. For comparison, total U.S. Class 8 sales were down 23% for the same period.” Tam continued, noting that researchers had expected the 2020 natural-gas market to drop on a unit basis but increase in penetration because of the shrinking of the Class 8 market. “However, COVID-19 is wreaking havoc on both the economy and the commercial vehicle market, leading ACT to cut not only the total Class 8 forecast, but also the Class 8 natural-gas unit sales as well,” he said.    

Kentucky carrier increases hazard pay for drivers in response to COVID-19

Somerset, Ky. – In response to the COVID-19 pandemic, CoreTrans LLC, based in Somerset, Ky., has recently announced an increase of 5 cents per mile (CPM). The company says this boost is to compensate and thank drivers for the potential risk of infection as they work to keep America’s supply chain connected. With this increase, drivers can earn up to 49 CPM while also enjoying a full range of benefits and advantages. CoreTrans drivers can make up to 49 CPM (based on experience) plus an additional 5 CPM Hazard pay. In addition to the pay increase, CoreTrans offers $2,000 paid orientation, a $5,000 sign-on bonus, and excellent equipment. Other advantages feature full benefits including health, dental, vision, life, 401k and paid vacation; 100% no-touch freight; no forced dispatch to NYC; and a pet and rider policy. Drivers have additional earning potential with CoreTrans’ $3,500 referral bonus and .5 CPM raises every six months with no cap.

Full COVID-19 impact not reflected in ‘transitional’ March commercial-vehicle report, says ACT

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.

PennFleet named HDA Truck Pride’s truck service expert of the year

ST. LOUIS — HDA Truck Pride, an independent provider of parts and service to the commercial vehicle aftermarket, has named PennFleet as its 2019 Truck Service Expert of the Year. Based in Boothwyn, Pennsylvania, PennFleet has been a truck service expert since 2016 and is sponsored by Triple R Truck Parts. An April 20 announcement from HDA Truck Pride states that PennFleet is a great example to the industry on employing progressive concepts to a thriving business, adding that the company’s approach to business is deeply rooted in its core values. The statement continues, noting that partnership, integrity, financial responsibility, optimism, communication and respect are part of PennFleet’s daily operations. The shop runs 100% on solar power and is heated using recycled motor oil. The company is grid-free and works constantly to reduce its carbon footprint. In addition, PennFleet uses technology in all aspects of the business, including inventory control, tool usage and diagnostic hookups. “To say PennFleet has led its marketplace would be an understatement,” said Tina Hubbard, president of HDA Truck Pride. “Their dedication to their customers, their suppliers and the industry shines through in everything they do,” she continued. “Most recently, when Pennsylvania rest stops were affected by the coronavirus pandemic, PennFleet opened their parking lot and offered not only a place for drivers to stop and rest but also offered complimentary food, beverages and sanitation stations. They recognized a need in their area and didn’t stop until it was fulfilled.” Jim Kolea, president of PennFleet, said the distinction is an honor for the organization. “We’re humbled to be named the 2019 TSE of the Year. Our team has worked hard, and this recognition is so well deserved for them,” he said. “I would not be where I am today as a businessman without the main motivating factor in my life, Jesus Christ,” Kolea continued. “Thank you to our distributor, Triple R Truck Parts, for treating us as a partner, and to HDA Truck Pride for providing valuable resources for businesses like ours.”