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Report shows used Class 8 volumes grew, prices fell month over month

COLUMBUS, Ind. — Preliminary used Class 8 volumes (same dealer sales) increased 21% month over month in February, according to the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks published by ACT Research. Longer-term, volumes also rose by double digits, up 24% year over year and 12% year to date. Other data released in ACT’s preliminary report included month-over-month comparisons for February 2020, which showed that average prices, miles and age of used Class 8 trucks all dropped, down 3%, 2% and 4%, respectively. ACT’s Classes 3-8 Used Truck Report provides data on used trucks’ 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. According to Steve Tam, vice president at ACT Research, “Although same dealer sales rose 21% from January, it is important to keep in mind that most of February’s activity was likely unaffected by COVID-19. Seasonality accounts for about half of the sequential increase, and the catalyst for the remainder of the gain is elusive, but may be the result of the continued drop in prices.” Commenting on the impact of COVID-19 to this market, Tam noted, “The recent cancelation of events, ranging from public school and university classes to college and professional sporting events to industry trade shows, is expected to have a chilling effect on the economy and by extension, the truck industry. Besides washing your hands, the best advice is to closely monitor this incredibly fluid situation.”

Truckload rates dip as expected; COVID-19 set to disrupt seasonal freight patterns

PORTLAND, Ore. — After a relatively strong January, truckload rates and volumes declined for dry van, refrigerated and flatbed equipment in February. The decreases are consistent with normal seasonal trends and not necessarily attributable to factory closures during the COVID-19 coronavirus outbreak in China, according to information released by DAT Solutions. Import traffic was already in a scheduled lull for Chinese New Year, but since the gap in traffic extended longer than anticipated, truckload demand in West Coast port markets is likely to be slow to rebound. “Ocean and air cargo was affected immediately by the coronavirus-related cutbacks,” said Peggy Dorf, senior market analyst at DAT. “That will certainly affect truckload freight later, but for now carriers are busy helping retailers restock empty store shelves.” Coronavirus threat will cause price volatility. DAT freight forecasts show that truckload rates will be higher than last year beginning in spring or early summer, but prices may not stay consistent with normal seasonality. “The impact of the coronavirus will add volatility to freight flows, as surges in consumer demand alternate with potential constraints on imports, exports, and industrial production,” explained Ken Adamo, chief of analytics at DAT. “Our predictive models continue to update, anticipating and accounting for these atypical trends when forecasting demand, capacity, and rates in the coming months.” February puts freeze on rates. Including fuel surcharges, spot van rates averaged $1.79 per mile nationally in February, down 8 cents from January and down 9 cents from February 2019. At $2.10 per mile, the national average reefer rate lost 14 cents compared to January and fell 11 cents from February 2019. National average flatbed rates dropped 2 cents month over month to $2.15 per mile, an 18-cent decline from February 2019. Volumes fell 7% for both vans and reefers month over month, while flatbed load counts edged down 3%. Compared to February 2019, however, volumes increased for all three equipment types. Vans gained 10%, reefers added 11% and flatbed volume rose 4%. About the DAT Truckload Volume Index The DAT Truckload Volume Index reflects the change in the number of loads with a pickup date during a specified month; the actual index number is normalized each month to accommodate any new data sources without distortion. The baseline of 100 equals the number of loads moved in January 2015 as recorded in DAT RateView, a database of rates paid on an average of 3 million loads per month. DAT national average spot rates are derived from RateView and include only over-the-road lanes with lengths of haul of 250 miles or more. Spot rates represent the payments made by freight brokers and 3PLs to the carriers.

J&J Exhibitors and Motor Service to sell transportation fleet through online marketplace

BETHESDA, Md. — J&J Exhibitor and Motor Service has partnered with Liquidity Services to sell J&J’s entire fleet of transportation assets through negotiated sales and online auction. The sale includes late-model and low-mileage transportation assets such as tractors and trailers, scooters, forklifts, pallet lifts, passenger vehicles, step-decks and specialty vans. All items are up for auction at AllSurplus (www.allsurplus.com), Liquidity Services’ online auction marketplace for business surplus. J&J Exhibitors is a family-owned, full-service trade-show provider and special-event contractor that operated from 1927-2019 in the heart of Chicago. The company is offering for sale its entire fleet, which includes 35 truck tractors, more than 200 trailers, 13 scooters, 10 forklifts three pallet lifts and three passenger vehicles from manufacturers such as Freightliner, Mack, Peterbuilt, Sterling and International. “In our 93 years of operating, J&J has always taken great pride in the quality and maintenance of our assets. As we close our doors, we have full trust in Liquidity Services to find new users that will put our entire fleet of transportation assets back into service,” said Cathy Chambliss, co-owner of J&J Exhibitors. “This is a unique opportunity for other exhibitors, small moving or delivery companies, and small fleet operators to have quick access to a full fleet of assets owned and maintained by an established family-owned business,” said Chris Register, vice president of corporate services for Liquidity Services. “Working together with J&J, all assets are available on our new marketplace, AllSurplus, and provide business buyers with detailed information and photos for each asset as well as a trusted and secure platform to transact.” Interested buyers can view the items through Liquidity Services’ network of marketplaces, including AllSurplus and its legacy marketplace, Go-Dove. All assets from J&J Exhibitors can be found by entering “J&J” in the keyword search tool. Bidding will be open through 5 p.m. EST on March 24.

Daimler Trucks delivers its 200,000th Western Star truck in U.S.

PORTLAND, Ore. — Daimler Trucks has reached the 200,000 mark in Western Star truck deliveries in the United States. The iconic trucks, with their striking front-end design and characteristic chrome look, are used in North America predominantly as special vehicles and construction-site vehicles in the vocational trucks segment. Western Star trucks are generally custom-made vehicles manufactured specifically in accordance with the body requirements of the customers, and the tractors are particularly well known for their robustness and resistance under harsh conditions. The anniversary vehicle — a Western Star 4700 SB with a waste-water disposal body — was handed over to the customer, Joe Johnson Equipment, at the Western Start plant in Portland on March 10. Western Star was founded in 1967 in Cleveland as a manufacturer of trucks for use in the wood and oil industries. In 2000, Daimler Trucks North America took over the brand. The first 100,000 vehicles were sold by Western Star over the course of 39 years, and 100,000 more have been sold to customers since 2006.

Mckinney Trailer Rentals opens trailer-sales division

BREA, Calif. — Mckinney Trailer Rentals, a provider of over-the-road trailer rentals and leases, recently announced the launch of Mckinney Trailer Sales, a new division focusing on trailer sales. “Mckinney Trailer Rentals prides itself on being a solutions provider to the transportation industry,” said Dave Tavares, president at McKinney. “We have listened to our customers’ need for used late-model trailers. When renting or leasing is not an option for our customers, Mckinney will be able to source and sell equipment directly to our valued customers.” Mckinney Trailer Sales, led by Winston Madrigal, director of trailer sales for the company, is located at 10641 Calabash Ave. in Fontana, California.  Available trailers include late-model reefers, dry vans and specialty equipment. “At Mckinney Trailer Rentals, our core values include honesty, integrity and outstanding customer service. Taking care of our customers is always at the forefront of what we do at Mckinney,” said Madrigal. “We are confident that our trailer-sales division will enable us to better serve our existing customer base and bring new customers into the Mckinney family.”

APUs add comfort to life on the road, reduce fuel costs

Idling your truck’s engine is expensive and can burn a gallon of fuel per hour or more. At $2.85 per gallon, the national average diesel fuel price posted by the U.S. Energy Information Administration March 2, idling through a 10-hour rest break will cost about $28.50. Do that five nights a week, and after a year that’s $7,125 spent on fuel that didn’t move the truck a single inch. Then there are added maintenance costs, along with the increasing possibility of fines. Thirty-one states now have anti-idling laws on the books. Increasingly, truck and fleet owners are turning to Auxiliary Power Units (APUs) to lower fuel costs; however, choosing an APU can be an intimidating experience. The first decision is whether your APU will be battery-powered or have its own engine. Battery-powered APUs burn zero fuel but are limited by the amount of electricity stored in batteries. They can provide sleeper air conditioning and electricity for accessories for eight to 15 hours, but extreme temperatures drastically reduce run times. Some are paired with fuel-burning bunk heaters to increase efficiency. Battery-powered APUs operate very quietly — a plus for light sleepers. Electric APUs can be an attractive option for drivers who use them primarily during 10-hour breaks. Using accessories such as microwave ovens, refrigerators or coffee makers will also deplete the batteries quickly and idling the truck may be necessary to recharge batteries long before the end of a 10-hour rest period. Diesel-powered APUs can provide full power for as long as fuel remains in the truck tanks. Most provide ample power and can keep the truck engine warm for quick startup later. Drawbacks include noise levels, cost of fuel, and maintenance time and expense. In some jurisdictions, where idling is illegal, running diesel-powered APUs is also prohibited. If the business plan calls for trips to the Northeast or California, expect anti-idling laws that apply to the APU. It’s also important to accurately predict the need for power when parked. In states with climates that are warmer or colder than average, it will require more power to heat or cool the sleeper area when the truck isn’t running. Ten-hour breaks in the heat of the day will require more power for air conditioning, and breaks taken when it’s dark may call for more heating. The length of a typical break matters too. A driver who routinely resumes work as soon as the 10-hour break is finished might prefer an electric-only model. Drivers whose business requires more time parked may be limited to diesel models. Drivers who prepare most of their meals in the truck may need additional power for refrigerators and microwaves. TVs and other electronics need power but typically not as much as other appliances. The more power needed, the more likely it is that it will take a diesel unit to provide it. Noise levels are a consideration. Although APU motors are much smaller than truck engines, they can be very noisy. Every APU will require regular maintenance of some sort. Diesel units need to be serviced just as truck engines do, including oil and filter changes. Electric units don’t need the same level of service, but batteries need periodic replacement. Initial cost is often the most important factor to buyers. A high-quality name-brand APU can run $10,000 or more, and dealers often offer financing options. However, the fuel savings start immediately, and those savings can more than make up the cost of a monthly payment. Look at the $7,125 annual idling cost noted earlier. A diesel APU will burn 25% to 50% of the fuel burned by the truck engine for the same amount of time, so buying fuel for the APU would save $5,344 in a year ($445 per month). The monthly payment for a five-year $10,000 loan at 8% interest is less than half that: $203. The same amount financed for three years calls for a $314 monthly payment, still below the monthly savings. APUs can have a huge impact on the bottom line of a trucking business. How big an impact might come down to purchasing the right unit for the job.

Stay Metrics helps carriers retain drivers

Dave: Hi, this is Dave Compton from the Trucker News Channel and joining me today is Tim from Stay Metrics. Tim, welcome to the show. Tim: Dave, thanks for having us. We appreciate the opportunity. Dave: It’s our pleasure. So Tim, for those that don’t know about Stay Metrics, tell us a little bit about the company, how it got started and so on. Tim: Sure. So I’m a 30 year veteran in the trucking industry. Started out as about as low as you can go, as a fleet driver for fleet owner. So I’m always been passionate about drivers. I spent 30 years in the business on the, on the trucking side, but 10 years ago we figured out that really nobody was having the driver’s voice out there and that driver wasn’t being heard or recognized and rewarded. So we built a platform in 2012 out of University of Notre Dame that did two things. One is a suite of surveys that many of the drivers that watch you have taken out there that allow us to tell a carrier what’s going on with that company and where the turnover is happening. And then the other thing that we do is we recognize and reward drivers with kind of private labeled reward programs. So that’s the concept of the company. It’s working out really well. Dave: So it’s like a carrier going to the doctor for their company. Tim: Yeah. Yeah, pretty much. And sometimes we’ll prescribe a rewards program, sometimes we’ll do deeper dives into the surveys. But yeah, the whole concept is pretty simple as to while that carrier is getting smarter about what is going on in their company and they’re making adjustments, that driver’s feeling more recognized and rewarded than he or she’s ever done. Right. So, you know, the theory was the kind of proved out, you put those two together, you’re going to end up with better culture, better retention. Dave: So you know, I’m familiar with the company, we quote you often in the news. Tim: We appreciate it. Dave: And is there any new innovations coming out? You guys are always innovating. Is there anything new? Tim: Yeah, for sure. So there’s a talent optimization product that we’re very, very proud to be partnering with a company by the name of Predictive Index. It’s a 60 year old company. But when they built a system that can really help a company understand where their talent is in the company today from the C suite, all the way down to the dispatch level and how they should think about positioning people and bringing people in to make sure that they have the right people in the right seats. In 35 years of my being a culture freak, it’s the best product I’ve ever seen. So we’re super excited about repping that product. Dave: Very cool. So if I’m a carrier and want to find out more about Stay Metrics, where do I go? Tim: Staymetrics.com that’s the easiest way to do it. Dave: Thanks for joining us, Tim. Everybody, you got to check it out. That’s Stay Metrics, and this is Dave Compton with the Trucker News Channel back to you in the studio.

COVID-19 impacting North America’s commercial-vehicle market, report says

COLUMBUS, Ind. – According to ACT’s March 10 release of the North American Commercial Vehicle OUTLOOK, the global spread of the coronavirus, COVID-19, required ACT Research to do a foundational reassessment of near-term economic expectations, and by extension, North American commercial-vehicle demand. 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 and 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. “Starting in the second half of February, COVID-19 went from a China containment story to one of spiraling pandemic,” said Kenny Vieth, president and senior analyst at ACT Research. “And six weeks after shutting down for the Spring Festival, China is only now starting to return to work. While they weren’t working, the Chinese weren’t spending either, and as the planet’s largest consumer of commodities, China’s downturn is hitting commodity prices across the board. “While demand-side weakness will continue to unfold, the front-and-center impact from a freight perspective presently is on the supply side: Domestic port and rail volumes have just begun to reflect the drop in Chinese output,” Vieth continued. “Being a supplier of intermediate and finished goods, there are major implications for a number of freight-intensive economic sectors, and we are just on the cusp of feeling that pinch.” Regarding demand for commercial vehicles in North America, Vieth said, “While we reserve the details of our forecasts for ACT subscribers, I can tell you that COVID-19 has undermined expectations across the board in 2020. Starting with lower expectations for economic output, medium-duty, heavy-duty and trailer forecast have all been trimmed to reflect the drop in economic activity. Beyond substantive changes in the immediate near term, our longer-term assumptions are unchanged presently, with expectations that markets will recover to trend starting in 2022.”

Industry’s lukewarm gains, moderate slowdowns could improve by midyear

The amount of available freight hauled by the trucking industry grew in January, but not by much. That’s the consensus among industry analysts and forecasters. American Trucking Associations (ATA) reported growth of 0.1% in its monthly, seasonally adjusted For-Hire Truck Index, the second consecutive month of increase. The index is compiled from data submitted by ATA member carriers and is based on year 2015 averages. January’s index of 117.4 represents a 17.4% increase over the 2015 data. Compared to January 2019, the index increased by 0.8%. “Over the last two months, the tonnage index has increased 0.6%, which is obviously good news,” said ATA Chief Economist Bob Costello. “However, after our annual revision, it is clear that tonnage peaked in July 2019 and, even with the recent gains, is down 1.8% since then.” Costello blamed softness in manufacturing and elevated inventories for the 2019 declines. Contract freight dominates the ATA tonnage data. ACT Research also indicated growth in January with its For-Hire Trucking Index registering 53.9. For the ACT index, 50 is the baseline, so anything higher indicates growth while anything below 50 indicates decline. The index is compiled from answers to a monthly survey ACT sends to carriers and may include some carriers that are also ATA members. The ACT index, like the ATA’s, showed two consecutive months of increase, with the larger increase coming in December. A key difference in the ACT report is that a separate index is maintained for freight rates. The news on the rate front is not as cheerful, as ACT reported an index of 44.8, 10.4% below the “neutral” score of 50. Capacity remains the culprit. The near-record Class 8 truck-buying spree in 2019 resulted in more available trucks, but freight volumes haven’t grown as quickly. With more trucks competing for freight, rates have been dropping for months in the spot market, and decreases are reaching the contract freight market, too. As freight levels continue to increase and truck sales have slowed, the freight market could soon return to something like equilibrium, according to many analysts. “We see encouraging signs in improving volume and utilization trends that the freight downturn is in its late stages and the market will rebalance in 2020,” said Tim Denoyer, vice president and senior analyst at ACT Research. “The good news is that capacity additions have just stopped at the Class 8 tractor level, which we think will take pressure off rates as the year progresses.” Similar news was reported from Cass Information Systems in its January report. The Cass Freight Index for shipments, which includes freight moving by rail, ship and other modes, dropped 9.4% from January 2019. The report notes that elevated inventory levels are partly responsible for the drop in shipments, usually a symptom of a slowing economy, as adjustments to manufacturing capacity lag behind sales. Inventories could get some unexpected help from the unlikeliest of sources — the coronavirus. As overseas factories close their doors in response to illness or quarantines, inventories shrink when retailers sell off the stock on their shelves. A release by the American Association of Port Authorities predicted cargo volumes at U.S. ports in the first quarter could be down by 20% or more from 2019 due to disruptions caused by the virus. Cass maintains a Truckload Linehaul Index that measures per-mile linehaul rates in what Cass calls “the largest (and most fragmented) market in the domestic transportation landscape. This index showed a decline of 6.3% this January compared to last year, after falling 3.3% in December. The report blames loosened capacity (trucks coming back into service after being idle during the holidays) for the decline. The news from industry analyst and forecaster FTR seems to point the economy in the same direction. A Feb. 24 blog entry by analyst Steve Graham said, “At the recent Stifel Transportation & Logistics Conference, the common outlook from industry executives was that supply and demand should find equilibrium around midyear, at which point spot rates should resume their premium to contract rates and give contract rates room to rise again in 2021.” Graham’s March 2 “Monday Morning Coffee” blog entry was titled, “The Coronavirus has Emerged as the Latest Economic Threat.” In it, Graham noted that stock prices were falling in markets worldwide as number of victims continued to grow. The consensus from all sources seems to be that the current slowdown won’t last and that world economies — and the U.S. trucking industry — will be better off in the second half of the year.

Spot truckload market rates makes small gains ahead of uncertain March

National average spot truckload rates were in line with seasonal expectations and load-to-truck ratios inched higher during the final week of February, according to DAT Solutions, which operates the industry’s largest load board network. Stable rates and ratios at this time of year are signs that shippers are emerging from a typical mid-winter lull. There were no specific indications that supply-chain disruptions due to the COVID-19 outbreak affected spot truckload freight in a significant way during the week ending March 1. This may change in the coming weeks depending on import levels, how quickly Chinese ports can reduce their backlogs and when those delayed sailings start to arrive in the U.S. National average spot rates for February were $1.79 per mile for van, $2.09 per mile for reefer and $2.14 per mile for flatbed. National average rates were higher at the end of the month and entered March at $1.88 for vans, $2.15 for reefers and $2.35 for flatbeds. Van trends The national average van load-to-truck ratio increased from 1.9 to 2.1 last week, part of a five-week upward trend. Load-to-truck ratios were up in the Los Angeles market during February and ended the month at a high of 2.6 loads per truck for van equipment, although van capacity is plentiful, and rates continue to be inconsistent. The impact at West Coast ports and outbound lanes will be felt this month. The Port of Los Angeles said container volumes in February would drop 25% due to the economic impact of the coronavirus as well as lower imports in general, and container ship operators have canceled 40 sailings from Asia to Los Angeles in February and March. Flatbed trends Rates for open-deck equipment have ranged from $2.15 to $2.17 per mile as a national average since October. One flatbed-market indicator to watch is the price of oil. High crude prices are a boon to trucking companies in markets like Texas because they spur demand for truckload capacity, which in turn leads to higher rates. Oil prices have fallen about 20 percent since late January to their lowest point since December 2018, near $50 a barrel, and forecasts are being lowered as the coronavirus outbreak cuts into travel and other activity in Asia. Should the price of oil drop below the marginal cost of production in the U.S., estimated at $35 to $40 per barrel, producers may curtail drilling. This would reduce demand for domestic ground transportation, especially for flatbeds and rail intermodal equipment, in key markets like Houston, Dallas and west Texas, leading to looser capacity and declining rates. DAT’s market trends are based on RateView, a database of $68 billion in annual market transactions. As the industry standard in truckload pricing, DAT’s freight rate database also provides the settlement prices against which trucking freight futures contracts are traded. For information, visit dat.com/trendlines.

Steep insurance premiums lead another carrier to cease operations

HUDSON, Wisc. — A week ago, RCX Solutions of Little Rock, Arkansas, ceased operations in part due to skyrocketing insurance premiums resulting from a lawsuit against the company. Just seven days later, another carrier, 101 Transport, of Hudson, Wisconsin, has decided to follow suit. Tom Dahlberg, owner of 101 Transport, said increasing insurance premiums and maintenance cost forced his hand In an interview with Freightwaves, Dahlberg said, “Insurance is making it untenable to do business.” For 101 Transport, the point of “untenable” was reached after one of his company’s trucks was involved in a serious accident in Utah. Following the accident, 101 Transport saw its insurance premiums increase by 70%. “The government has got to step in on this issue before more companies go out of business,” he said. Dahlberg said he founded 101 Transport in 2007, and the company’s mission could be summed up in three words, “back to basics.” The basics for 101 Transport, in a longer, 14-word format, are “pick up and deliver freight on time, bill it correctly and do it safely.” While RCX Solutions was a comparatively small carrier, Transport 101 employed 72 company drivers and owned a similar number of trucks. When Dahlberg saw his insurance premiums increase last fall, he had to cut back operations to remain financially solvent. At that time, he prepared for what he saw as inevitable by laying off drivers and returning equipment. He turned to owner-operators as a substitute and had contracts with 32 haulers when he decided to close business. Dahlberg said his company was trying to trim costs and maintenance expenses, but maintenance averaged $10-15,000 every time a truck required repairs. Those costs, coupled with insurance rates, outweighed what it took to keep 101 Transport a sustainable company in a period of uncertainty in the freight markets. Great West Casualty Company, the insurance carrier providing liability coverage for 101 Transport, insured the company for $1 million, well above the required $750,000. Information from the U.S. Department of Transportation indicates that coverage was canceled effective March 1, 2020. DOT also indicates 101 Transport lost its authorization as a contract carrier effective March 9. The DOT database lists the reason as “involuntary revocation.” Based on the contents of the 101 Transport website, the company placed a priority on taking care of its drivers “It’s not about hauling freight; it’s about people hauling freight,” is the homepage slogan and the company’s testament to its commitment. With owner-operators having replaced company drivers, 101 Transport offered three promises in its recruitment efforts: great miles, home time, and respect.  The company claimed its owner-operators averaged 135,000 miles annually, could get home time when they wanted or needed it, and stated that its drivers were a top priority. In 2018, company drivers combined for a reported 7.9 million miles. Drivers were informed of the pending closure on February 29, Dahlberg said. By that date, he had cut all company drivers and contracted with 32 owner-operators. And based on what has happened since Dahlberg announced 101 Transport’s closing, the company commitment to drivers rings true. Dahlberg said another carrier, which cannot be named at this time, has agreed to hire all owner-operators working under contract with 101 Transport. He said that assuming the drivers pass mandated background and safety checks, their unemployment window will be brief. In fact, most are expected to be driving for the new carrier as early as Wednesday (March 11, 2020). 101 Transport was primarily involved in hauling general freight, beverages, and paper items. It also contracted with the U.S. Postal Service to deliver mail to various postal destinations. The closure of 101 Transport represents an ongoing trend in the trucking industry that saw well over 800 carriers cease operations in 2019. Recent closures also include BK Transport of Arlington Heights, Ill.; Howard Baer, Inc. of Nashville, Tenn.; Cold Carrier Logistics and its three affiliated company of Lakeland, Fla.; and both California’s Michael Dusi Trucking, Logistics, and warehousing and Rodgers Trucking. In comparison to 2019 closures including Celadon and Fleetwood Transportation, the five carriers listed are but a few blips on the carrier closings and bankruptcies radar screen. But, as the number of companies ceasing operations since January 2019 nears 1,000, the collective impact could soon reach what analysts consider “crisis levels” in the trucking industry.

We interview new TCA Chairman Dennis Dellinger

Wendy Miller: Hi, this is Wendy Miller with The Trucker News Channel, and we’re here at the TCA Convention in Orlando for Truckload 2020. And I’m joined with incoming chairman Dennis Dellinger, and we’re going to talk a little bit about his upcoming term. But first, how do you think the convention’s going right now? Dennis Dellinger: Wendy, I think the convention has been great. This morning we had Cal Ripken, Jr., which was excellent. Yesterday, the committee meetings, the board meetings went very well. I’m just excited to be here and to be a part. Wendy Miller: That is awesome. So how long have you known that you’re going to be assuming the chairman’s position this year? Dennis Dellinger: It’s kind of a transitional, as you come in as an at-large officer, you have multiple people ahead of you, and for me it was about an eight year adventure. So when I say adventure, there were a lot of good things, a lot of learning, a lot of people helping and involved. And as I worked through the second vice chair, the first vice chair, the time, it seemed like was a long ways off, but yet it came so fast. Wendy Miller: So Josh talked a little bit about some of the initiatives that he’s been leading, and he mentioned advocacy as being something that TCA is really focusing on. Do you think that that’ll continue under your leadership with the board? Dennis Dellinger: Very much so. The association is member-driven, and the members told the association that we need to be involved in advocacy. And so it’s been a process that started as a concept and moved forward a couple of years ago with Dan, with Josh, and definitely it will be one of the platforms that I work from and work with. Wendy Miller: That’s great. Are there any other initiatives that you want to see started? Dennis Dellinger: Well not as much as started, but it’s a continuation of past chairs, past leadership, that we want to be involved in and take care of the advocacy but also education. And I got involved in the association actually through the image programs. And image to me is very important in our industry because it’s about our drivers. My passion for the industry is our drivers and taking care of them and making them feel a part of an organization, a company they work for, but also providing them a better life and a better lifestyle where we can affect and do that. Wendy Miller: And that’s really great to hear. So you sound really passionate about the industry and also about the drivers. So where does that passion come from? Dennis Dellinger: I’ve always looked at myself as being a people person and maybe didn’t have some of the other skills other than working with people as being a strong suit. And I realize that we like to say that we’re in the trucking business, but we’re in the people business, and so learning people, understanding people, helping people, helping them to grow is just something that’s always been a part of my makeup. Wendy Miller: That’s really great to hear. I wish you the best of luck in your new role, and you will be officially inducted into that position tomorrow night? Dennis Dellinger: Actually, tomorrow morning I give my speech, so I’m excited and ready to take on the role. Wendy Miller: Awesome. Well congratulations, and we’ll be there for that, so I wish you the best. Dennis Dellinger: Thank you very much, Wendy. Wendy Miller: Thank you. And this has been Wendy Miller for The Trucker News…  

Cal Ripken Jr talks trucking and baseball

Our own Wendy Miller caught up with “The Ironman,” Cal Ripken Jr at the recent TCA convention. Cal tells why setting his record is a lot like being a truck driver.  Take a listen. Wendy Miller: Hi, this is Wendy Miller with the Trucker News Channel. And I’m joined today by Cal Ripken Jr. baseball’s Ironman. How are you doing today? Cal Ripken Jr: I’m doing very well. I don’t look at myself as an Ironman anymore, but. Wendy Miller: Oh, well you jumped right over to my next question. You’re coming up on the 25th anniversary of setting that record. How do you feel about that? And you say you aren’t baseball Ironman anymore? Cal Ripken Jr: Well, I think when you’re finished playing, all you have is time to sit back and remember. And the good part about that is that most people remember all the good stuff. They don’t remember any of the bad stuff. The Ironman record was something that I loved to play. I was resilient enough to go out there and play. Mentally, I was strong enough to meet the challenges every day, so I’m very proud of that. It’s been 25 years since that record breaking night. And I think September 6th this year in Camden Yards, they’re going to do a nice little celebration. So anytime you celebrate an anniversary of 25 years, it’s pretty special. Wendy Miller: I bet it is. I bet it is. So you just delivered a great message about perseverance. How do you think that that translates to the trucking industry, and to drivers who are out there on the road every day? Cal Ripken Jr: Well, the beautiful part of going through 95 and celebrating the streak was how everyone else related to the principles of showing up. And so everybody would tell me their streaks. And so many times there were truckers that say, “I’m on the road, like you are as a baseball player. We have challenges like you do as a baseball player. But it’s important for us to meet those challenges each and every day.” Cal Ripken Jr: And that’s the principle that I love. I mean, kids would say, “I haven’t missed a school since kindergarten. I had perfect attendance all the way through.” People that worked at plants would say that it’s important you show up even when you’re not at your best, when things happened in your personal life. The value of showing up. And there were many different truckers that had the same sort of attitude, and approach that we baseball players have. And the challenges are very similar that you are away from home, and you are juggling time schedules and then deadlines to meet and then those sorts of things. Cal Ripken Jr: And I was just thought it was good that the principle of showing up and the work ethic is right there with all the truckers and with America in many ways. And I enjoy hearing those stories. Wendy Miller: That’s really great. Are there any of the qualities that you mentioned a little while ago that you think specifically pertain to truck drivers? Cal Ripken Jr: Yeah, some friends that, there were many baseball players that washed out, went into the trucking industry. So a couple of guys that we came back for anniversaries like in 1980, in Charlotte we had a championship team. There was two on that team, I think that drove a truck. It’s the grinding out mentality. It’s the stubbornness sometimes. It’s the standing up for what you believe in. And sometimes doing things that aren’t expected of you. And so to me, if I remember correctly, those two guys that turned out to go into the trucking industry, they were talking about the need to grind it out mentally, and physically, each and every day is almost the same. Wendy Miller: That’s very true. And those guys and girls do it every day. So do you have a specific message you’d like to give to them? Cal Ripken Jr: No, I mean, it made me feel really good that you could be counted on each and every day by your teammates to play. And I think that’s a principle and value that all of us should hold on to. And I know that we count on the trucking industry, many people counting on the trucking industry. And in some ways you don’t want to let anyone down. And so it’s that, you can rely on me, you can count on me. I’ll be there. Wendy Miller: Great. Well, thank you for being here today, and I really appreciate it. And this is Wendy Miller for the Trucker News Channel.

We sit down with the outgoing TCA Chairman Josh Kaburick

Wendy Miller: This is Wendy Miller from the Trucker News Channel and we’re here live at the TCA Convention, Truckload 2020 in Orlando and I’m joined with outgoing chairman, Josh Kaburick. How are you doing today? Josh Kaburick: I’m doing great, Wendy. How are you? Wendy Miller: I’m doing great. How do you think the convention is going so far? Josh Kaburick: I think it’s going really well. We’ve got a great turnout and participants. We’ve had a great showing of everybody at our round table meetings, our executive panels and our general session this morning. So, so far the feedback that we’re hearing from everybody has been very positive, so far so good. Wendy Miller: That’s awesome. So in the position of chairman, what are some of your greatest accomplishments from this past year? Josh Kaburick: Well, several years ago there were several of us chairman that had made the decision that we wanted to have a longer term strategic plan. In the past the chairman could pick, call it a topic if you will, or something that they wanted to see accomplished for the industry, let’s say image. And our decision was to be more strategic for the association and industry as a whole. And so, it started off with Russell Stubbs, Rob Penner, Dan Doarn, and myself. And instead of changing direction every year for the staff, we just knew what the agenda needed to be and we set it and as we’ve transitioned from chairman to chairman, we continue to just keep moving the ball forward on each of the topics and things that membership are asking for. So in my case, membership has asked for advocacy and we’ve brought that along ways in the past 12 months. So very pleased with what we’re doing on that side of it and the recognition that we’re getting out on Capitol Hill, so we’re pleased. Dave Heller and Kathryn Sanner are doing an amazing job. Wendy Miller: That’s awesome. So what do you hope that the incoming chairman, Dennis Dellinger, what do you think you would like to see his largest initiatives for the ongoing year tying into the strategic plan? Josh Kaburick: Well, I think continue to stay focused on what we have at hand that are critical to the association and to our industry. The hours of service is still quite frankly unresolved. And we need to continue to move the bar on that and get split in there and get it done the way that it helps our drivers be safe and successful. Detention at shippers and receivers is an issue that needs to be addressed. So we’ve started those conversations out on Capitol Hill and I think that’s a couple things that Dennis needs to continue to move forward on as those kinds of initiatives for all of us. Wendy Miller: Great. As you shift into a past chairman’s role, what will your responsibilities with TCA be then? Josh Kaburick: As far as in the leadership role, I’ve become chair of the nominating committee, so we’ll put together a committee of those that are part of what’s called the executive committee, past chairman and then some other members and we’ll scour the association for potential new officers to come in and go through the process of vetting them and then bring them to the board to be voted on. Wendy Miller: That’s great. You seem like a really passionate guy. Where does your passion for trucking come from? Josh Kaburick: I grew up in the business, so in my case, this is a great chance to be a grown man but get to play with trucks every day, all day. So I started off very little running around our shop and our office and when I was a teenager my dad had me cleaning out trucks and sweeping the floors in the shop and all those things. So just, just grew up with it and loved it. Wendy Miller: That’s awesome. Do you think that having that history helps you to keep drivers in mind with everything that you’re doing? Josh Kaburick: Absolutely. Being in it so long and seeing the transition of our industry, dealing with the various regulations that have been brought out, brought upon us and seeing what our drivers go through and have lived it and had numerous conversations with them and you see how it affects them as well as the business. For me, it’s easy to put myself in their position to hopefully make the right decisions for our business but when you have these opportunities to be involved in a great association like TCA is to also try to get policy in place that helps our drivers. Wendy Miller: That’s awesome and I wish you the best. Josh Kaburick: Well thank you very much. Wendy Miller: And this has been Wendy from the TCA Convention in Orlando for Truckload 2020.

Another month; another carrier shutters its doors

LITTLE ROCK, Ark. — RCX Solutions Inc., a carrier based in Little Rock, Ark., has announced that, effective March 2, it has ceased operations. Founded in 2001, RCX Solutions employed seven drivers and contracted 24 owner-operators who leased their trucks to the company. The shut-down is the latest in a string of closings and bankruptcies of small and large carriers across the U.S. over the previous 12-18 months. As reported by FreightWaves, RCX president Randy Clifton Jr. said, “We got everyone home, and they were all taken care of  [Feb. 28].” For a man whose father founded the company and whose grandfather once owned Pacific East Transportation in North Little Rock, Ark., in Clifton’s words, closing RCX Solutions was “gut-wrenching.” “We were able to find our drivers some good homes, which was important to me because we are more like a family,” Clifton said. “Some of them are already rolling for their new companies.” RCX Solutions’ fate took hold in 2017 when it was on the losing end of a lawsuit that awarded the plaintiff damages of $23 million. Even after an appeal that resulted in the U.S. Fifth Circuit Court of Appeals lowering the damages to $7.5 million, it was not enough to save the company. RCX’s downfall began in early January 2015 when, according to Clifton, one of the company’s trucks broke down while transporting a load of cosmetic cases for L’Oreal. Clifton, also the owner of the freight-brokerage company Sunset Transportation, worked with Ronald Brown, an owner-operator driving under the company name About Tyme Transport Inc., to finish delivering the load.  Clifton arranged for a trailer interchange with Brown, who would then haul the load to L’Oreals’ central Arkansas location. Long before arriving in Arkansas, Brown’s tractor-trailer was involved in an accident near Refugio, Texas. The vehicle and trailer first hydroplaned before crossing the median and jackknifing. The tractor-trailer struck a pickup truck, resulting in a fire. Brown died at the scene, while the pickup’s driver sustained third-degree burns and numerous broken bones. The surviving victim and his wife filed a lawsuit against Brown’s company and Xtra Lease, owner of the trailer. After receiving a million dollars from About Tyme Transport, the couple extended its lawsuit to RCX Solutions, the company leasing the trailer from Xtra Lease. RCX was on the losing end of the lawsuit in 2017, with the jury awarding a “nuclear verdict.” While the definition of “nuclear” is relative to the assets of a company, in RCX Solutions’ case, it was $23 million. The Court of Appeals ruled the amount as excessive and lowered it to $7.5 million. Clifton said that even with the lowered liability amount, it was too late for RCX to survive financially. “Our insurance rates tripled,” he said. With his company paying the increased premiums for more than three years, Clifton said the economy hasn’t been strong enough to help RCX Solutions through the difficult times. Clifton said he had hoped things would turn around for the carrier, noting that RCX’s insurance premiums would soon be lowered. When a bank refused to extend the company’s credit line, however, it signaled the end. He immediately called his drivers and contractors home, closed RCX’s doors and helped the drivers find new companies to work with. Nuclear verdicts are increasing as an issue of concern to both freight carriers and companies that insure them. Unfortunately, for RCX Solutions, the company will no longer be in business when — and if — large liability verdicts reverse course and become less the rule and more the exception.

Alabama Motor Express grows with acquisition of Powell Transport Solutions

ATLANTA — Alabama Motor Express (AMX), a trucking and third-party logistics company, recently announced the acquisition of substantially all the assets of Powell Transport Solutions, a trucking asset firm specializing in refrigerated freight, and its affiliates. The deal, announced in February, adds 35 refrigerated trailers to the AMX fleet, helping the company achieve its goal to expand its service offerings to a wider customer base and become the most prominent freight company in the Southeast. “We’re on a clear path forward. This acquisition is an exciting step as we bolster our position as a leading full-service, logistics provider in the region,” said Taylor White, AMX vice president. “We are very pleased to add Paul Powell, the Powell Transport Solutions employees and their accomplished drivers to our team. Paul has developed excellent relationships with his company’s long-time customer base, and we look forward to building on that base.” “We are delighted to join the AMX team,” said Paul Powell, Powell Transport Solutions president. “Our focus on customer service and our ability to achieve the highest service standards will be enhanced by the resources and scale provided through AMX.” Powell will serve as the leader of AMX’s refrigerated-services division. All Powell Transport Solutions employees and drivers are expected to retain their positions with AMX. In addition, AMX has access to Powell’s customer base, offering them a broad range of truckload and 3PL services. “We’re in the middle of Freight Alley, where refrigerated freight demands continue to grow,” said White. “Now we can meet the diversified needs of our customers using more of our own trucks, drivers and 3PL services. And we’re gaining the support of a savvy, experienced team that knows temperature-controlled freight, understands its customers and wants to grow with us in the sector. We’re capitalizing on our long-term growth strategy and ready to grow with new opportunities.” The acquisition is the latest in a series of growth-focused decisions designed to broaden the scope and reach of AMX, which began with the recently opened branch offices in Atlanta and Savannah, Ga. The acquisition puts AMX’s sister company, AMX Logistics, in the heart of major distribution hubs where it can streamline communications with customers and shippers in the region. AMX continues to add drivers, logisticians and other transportation professionals to accommodate its ever-growing business portfolio. In addition, AMX has invested in innovative technology platforms to ensure optimal service for its customers, carriers and drivers. Terms of the transaction were not disclosed.

Safety Series: Thinking ahead can help drivers avoid distractions behind the wheel

Does it take your eyes and/or your mind from the road? If it does, it’s a distraction. Chances are that your day is full of them. Little things, like turning on the radio or adjusting the air conditioning can take your focus away from driving. If we’re being realistic, many of the tasks done behind the wheel take very little time to do. If you’re familiar with your vehicle, you might be able to turn on windshield wipers or set the cruise control without looking at all. But then there’s the other extreme. There are tasks that are done while driving far too often. A lot of them require a cell phone. Dialing a phone number or reading or composing a text while driving are unnecessary and stupid. In many states, it’s illegal to even talk on the phone without a hands-free device. But this isn’t about phones or radios or cruise control. It’s about allowing your focus to go from the road to, well, anything other than driving. That’s a decision that every driver must control, all day, every day. The consequences of diverting your attention from the road for even a few seconds can be devastating. Most people in the non-metric world think of speed in terms of miles per hour. Thinking of speed in feet per second adds perspective to the distraction issue. You could use a calculator and multiply your speed in mph by 1.46666666666667 to convert to FPS. Or, you could “ballpark” the answer by simply multiplying by 1.5. So, 30 mph is roughly 45 FPS. At 50 mph, you’re covering the length of most tractor-trailer combinations every second. At 67 mph, you’ll travel end zone to end zone on a football field in three seconds flat. If you’re traveling at the speed limit in a 70-mph zone, you’re covering 105 feet each second and nearly a tenth of a mile every five seconds. How long does it take for conditions in front of your vehicle to completely change? How long does it take to dial a phone number? So, when you make the decision to dial, you’re really making the decision to travel a few hundred feet without looking at the road. You can apply that logic to anything else you decide to do behind the wheel. We know that it’s impossible to expect to never be distracted. Sometimes, even traffic distracts us from other traffic. That’s why we’re taught to keep moving our gaze, scanning near and far, right and left, including the mirrors. We can’t control billboards, traffic signs and construction barrels or other things that attract our attention on the road. We do, however, have control over things in our cab. Phones and tablets are obvious distraction items, but what about the ELD? How about the control touchscreen built right into the dash? The GPS? And lunch? Anyone who thinks a driver should never, ever eat while behind the wheel has never kept the schedule of most over-the-road drivers. Fortunately, you can minimize the distractions you face while driving. For example, by unpacking the burger and fries, putting the straw in the drink and the drink in the holder, all before leaving the parking lot, you’ll minimize the time you’ll be distracted while eating. If something falls to the floor, it stays there until the next stop. Most phones can be set up so they can be answered with a single button, often one on the side of the phone that your finger naturally finds when you pick it up. Every driver should be using a Bluetooth headset, but even if you aren’t you can minimize the attention needed to answer a call. With a little thought, most drivers can identify any number of things that can be prepared before putting the truck in motion. Every carrier has rules about distractions. And, every carrier has a dispatcher or two that expects an instant answer to a satellite message or whatever communication service used. You can get fired for using a cell phone while driving, but your dispatcher wants a call right now? Hopefully, the safety culture at your carrier, if you work for one, extends from the top management of the company down. The safety culture in your truck, however, is up to you. Too many carriers are spending millions of dollars each year to find qualified drivers to put up with a carrier that preaches safety and practices something else. Make the safety rules in your truck and stick to them. Somebody’s family might be very glad you did. Maybe yours.