Business

LOWELL, Ark. — J.B. Hunt Transport Services, Inc., one of the largest supply chain solutions providers in North America, has announced that its subsidiary, J.B. Hunt Transport, Inc., acquired the assets of RDI Last Mile Co. on December 31, 2019. The transaction was funded using J.B. Hunt’s existing revolving credit facility. “Growing our final mile delivery capabilities is a priority, and the acquisition of RDI further extends our expertise in furniture delivery,” said John Roberts, president and CEO of J.B. Hunt. Founded in 1987, RDI provides home delivery services of big and bulky products in the Northeast region of the U.S. RDI utilizes contract carriers to perform primarily furniture deliveries and generates annual revenue of $35 million. “Providing our customers with a comprehensive, high-quality delivery experience drives our final mile services,” said Nick Hobbs, executive vice president and president of Dedicated Contract Services at J.B. Hunt. “RDI is a reputable furniture delivery provider, and we are excited to welcome them to J.B. Hunt.” Final Mile Services is a division of J.B. Hunt’s Dedicated Contract Services business unit and operates one of the largest nationwide, commingled cross-dock operations with the ability to serve 100% of the contiguous United States. RDI is the company’s third acquisition in as many years. J.B. Hunt acquired Cory 1st Choice Home Delivery in 2019 and Special Logistics Dedicated in 2017. With the RDI acquisition, Final Mile Services will expand its home delivery capabilities and grow to include more than 104 locations and 3.2 million square feet of warehouse and facilities space.

ST. PETERSBURG, Fla. — Recent research from Brandon Hall Group shows that the use of virtual reality (VR) as a training modality is growing rapidly in “high-consequence” industries —those in which operator mistakes can cause significant property damage or fatalities or both. According to the study, nearly one third of surveyed companies in such industries identified VR tools as a top learning priority over the next 24 months — a 60% increase over two years. “We’re definitely seeing that in the motor freight industry,” said John Kearney, CEO, Advanced Training Systems, a company that designs and manufactures virtual simulators for driving training among other applications. “Trucking companies, driving schools and the general public are increasingly aware that simulation training — that is to say, virtual reality — helps produce drivers who are better prepared to deal with any situation they might encounter.” Simulation, Kearney said, solves a classic training dilemma: how do you safely prepare trainees to deal with dangerous or extraordinary situations? Once dismissed as a toy, VR has been objectively shown to offer measurable improvement in the performance of tasks as disparate as flying advanced jets and handling dangerous chemicals. This, Kearney said, makes it a natural for truck drivers. The Department of Labor’s Bureau of Labor Statistics cites vehicle crashes as the leading cause of workplace deaths in the United States. Over 90% of such accidents, according to the National Highway Safety Administration, are at least partly because of driver error. Training with simulators is relatively new to the trucking industry compared to other professions and Kearney said his firm has been at the forefront of advocating for simulation to be a training standard among the trucking industry for years. “Pilots are required to train via simulation — professional truck drivers should, too,” he said. “With all the high technology, this is a new era of CDLs.” In addition to enhancing driver safety performance, simulation, by reducing the required amount of on-the-road training students must spend with a single instructor, and expediting instruction success, is helping attract more women to the truck driving field, Kearney said. Advanced Training Systems helped with a Fox Business report on a Women In Trucking story in December 2019. According to the American Trucking Associations, the number of women truckers in the U.S. has increased by about a third since 2003. Through community college-based commercial driver’s license programs, which increasingly include simulator training, the industry is also actively recruiting new drivers from the ranks of industries where employment is sagging, such as laid-off miners in Appalachia, Kearney said. Beyond reduced training cost and improved safety preparedness, Kearney noted, simulation offers long-term financial benefits to trucking companies. A trainer for an oilfield service company in Texas, for example, says simulator training has resulted in both fewer rollovers and fewer overall accidents. A Canadian bulk commodity hauler reports that by teaching correct driving technique, simulation training has reduced the company’s fuel cost by an average of 30%. “All in all,” Kearney said, “simulation training is doing two important things for trucking. First, it is producing better-trained, safer, and more cost-effective drivers. Second, by helping open trucking to people who might not previously have considered it as a profession, it is providing at least a partial solution to a chronic driver shortage. My colleagues and I are proud of our work and delighted to do our part to help this great—and essential—industry.”

Camden, N.J. — NFI, a supply chain solutions provider, recently completed the acquisition of G&P Trucking Company, Inc. (G&P), a logistics provider specializing in asset-based transportation, port drayage, and non-asset brokerage solutions in the Southeast. The acquisition further establishes NFI’s position as a premier transportation provider, strengthening NFI’s asset and non-asset solutions and expanding its southeast footprint. G&P, headquartered in Columbia, South Carolina, has more than 83 years of experience in providing transportation services for customers across its 14 locations. The addition of G&P enhances NFI’s network density in the Southeast and increases the company’s footprint to more than 300 locations throughout North America, employing more than 12,600 associates. Further, G&P deepens NFI’s industry expertise throughout diverse industries such as automotive, tires, retail, and textiles. “Powered by the same philosophies as G&P, NFI will allow for greater opportunities for our employees, partners, and customers,” said Clifton Parker, President and General Manager of G&P. “We look forward to the future and are eager to continue our growth and success with NFI.” G&P’s asset-based transportation solutions include dedicated, regional, long haul, and Mexico border crossing. With G&P’s 370 tractors and 3,000 trailers, NFI’s asset-based transportation fleet, predominantly providing dedicated contract carriage solutions, will grow to more than 3,000 tractors and 12,500 trailers. With the addition of G&P, NFI’s asset-based fleet will be operated by 2,700 company drivers and utilize the services of 400 owner operators. Operating at the ports of Savannah, Norfolk, and Charleston, G&P will expand NFI’s drayage presence in those ports. With the addition of G&P’s 120 owner operator partnerships, NFI’s drayage fleet will grow to more than 1,500 tractors. NFI’s expansive drayage presence spans major ports, terminals, and logistics hubs across the U.S., offering a full suite of supply chain solutions that includes transloading, consolidation, deconsolidation, and customs exams. The acquisition will also enhance NFI’s brokerage service offerings. “G&P is a well-respected, family-owned transportation company with a deep-rooted history, and our shared values of family and integrity create a perfect cultural fit,” said Sid Brown, CEO of NFI. “Unifying the talents of both NFI and G&P teams, we are excited to bring even greater value to our customers through our robust suite of solutions. Together, our combined footprint will distinguish us as one of the largest dedicated transportation providers in North America.”

COLUMBUS, Ind. – According to ACT Research’s recently released Transportation Digest, carrier profitability and by extension Class 8 demand are heading toward tougher business conditions in 2020. Succumbing to the slowing economy, forward-looking metrics in the medium duty Classes 5-7 markets were awash in a sea of red ink in October, although moderate growth persists in build expectations. The report, which combines ACT’s proprietary data analysis from a wide variety of industry sources, paints a comprehensive picture of trends impacting transportation and commercial vehicle markets. This monthly report is designed as a quick look into transportation insights for use by fleet and trucking executives, reviewing top-level considerations such as for-hire indices, freight, heavy and medium duty segments, the US trailer market, used truck sales information, and an overview of the U.S. macro economy. “After peak sales and build in 2019, significant declines are ahead in 2020, as heavy-duty sales and build follow the net orders trend down. But if our forecast of ongoing (but slower) economic expansion holds in 2020, the drop will be a correction (along the lines of 2015 and 2016), not a devastating recession (as in 2008 and 2009),” said Kenny Vieth, ACT’s president and senior analyst. Regarding the medium duty market, Vieth commented, “Given its traditional status as the strongest medium duty order month of the year, October’s disappointment suggests further softening of customer demand. Following September’s bow shot, the downward trajectory of the seasonally adjusted annual rates in the past two months suggests the slowing of build rates the past two months are looking more like a new paradigm, rather than a pause that refreshes.”

Columbus, Ind. – The latest release of ACT’s For-Hire Trucking Index, with November data, showed relatively neutral readings on for-hire freight volumes and rates, with 51.5 and 50.9 respective diffusion index readings. With a slight contraction in for-hire capacity, the supply-demand balance remained in modestly positive territory for a fifth straight month. However, the Productivity Index fell to 48.4 in November, from 53.9 in October. “With some key caveats, we think the string of positive supply-demand results is a positive leading indicator for a capacity rebalancing in 2020,” said Tim Denoyer, ACT Research’s vice president and senior analyst. “The first caveat is that private fleets, the other half of the industry, are not showing the same capacity discipline as the for-hire fleets. The second is that the freight volume outlook remains muted, with a soft manufacturing sector and trade-related inventory overhang likely outweighing relief from the China phase-one deal, which is yet to be signed.” He continued, “Tractor utilization has been choppy all year, amid soft freight and overcapacity, but the biggest surprise in this month’s survey was the sharp reversal in tractor productivity, a signal that while the freight recession is likely in the late-innings, the trucking industry is still staring at difficult conditions in the near-term.” The ACT For-Hire Trucking Index is a monthly survey of for-hire trucking service providers. ACT Research converts responses into diffusion indexes, where the neutral or flat level is 50. Email  [email protected] if you are a for-hire executive interested in participating. In return, participants receive a detailed monthly analysis of the survey data, including Volumes, Freight Rates, Capacity, Productivity and Purchasing Intentions, plus a complimentary copy of the Transportation Digest report. The ACT Freight Forecast provides forecasts for the direction of truck volumes and contract rates quarterly through 2020 with three years of annual forecasts for the truckload, less-than-truckload and intermodal segments of the transportation industry. For the truckload spot market, the report provides forecasts for the next twelve months. The ACT Research Freight Forecast uses equipment capacity modeling and the firm’s economics expertise to provide unprecedented visibility for the future of freight rates, helping businesses in transportation and logistics management plan for the future with confidence. For more information, visit www.actresearch.net.

Arlington, Va. — American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index decreased 3.5% in November after falling 0.7% in October. In November, the index equaled 113.5 (2015=100) compared with 117.6 in October. “It’s tough to sugar coat November’s reading,” said ATA Chief Economist Bob Costello. “It was the third decrease in the last four months and the index is down 7.2% since July. Additionally, November was the first month to see a year-over-year drop in the index since April 2017. While disappointing, it fits with the expected soft gross domestic product reading expected in the fourth quarter and reports of a soft fall freight season.” It is important to note that ATA’s tonnage data is dominated by contract freight. October’s reading was revised down compared with ATA’s November press release. Compared with November 2018, the seasonally adjusted index fell 2.1%, the first year-over-year decline since April 2017 and the largest drop since February of that year. The index is up 3.3% year-to-date compared with the same period last year. The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 115 in November, 7.9% below the October level (124.8). In calculating the index, 100 represents 2015. Trucking serves as a barometer of the U.S. economy, representing 70.2% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled 10.77 billion tons of freight in 2017. Motor carriers collected $700.1 billion, or 79.3% of total revenue earned by all transport modes. ATA calculates the tonnage index based on surveys from its membership and has been doing so since the 1970s. This is a preliminary figure and subject to change in the final report issued around the 5th day of each month. The report includes month-to-month and year-over-year results, relevant economic comparisons, and key financial indicators.

COLUMBUS, Ind.  – After an anomalous sequential gain in October, used Class 8 same dealer sales volumes returned to trend in November, falling 35% month-over-month, according to the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research. Longer term, sales were down 9% year-over-year and 16% year-to-date compared to the first 11 months of 2018. The report also indicated used Class 8 average miles decreased month-over-month, down 5%, and were up a mere 1% year-to-date, while average age rose 3% compared to October and 5% on a year-to-date basis. Average price also grew 5% month-over-month, while flat year-to-date. The report from ACT 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 utilized 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 used truck sales are lagging, inventory is building, prices are falling, and the used truck market remains a buyer’s market,” said Steve Tam, vice president at ACT Research. He continued, “While all of this is not welcome news for finance companies, truckers trading trucks, truck OEMs or dealers, it is good news for people who are buying trucks. Customers are finding that there are bargains available for all makes and models of used trucks, and there are some fantastic buys.” ACT Research is recognized as the leading publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasts for the North America and China markets. ACT’s analytical services are used by all major North American truck and trailer manufacturers and their suppliers, as well as banking and investment companies. For more information, visit www.actresearch.net.

PORTLAND, Ore. — Trucks are busy in these final weeks before the holidays. Spot van freight volumes were up more than 25% during the week ending December 15 and the national average spot van rate for December is $1.91 per mile, 9 cents higher than November, reported DAT Solutions, which operates the industry’s largest electronic marketplace for truckload freight. Van trends The average van rate increased on 26 of DAT’s top 100 van lanes by volume. Forty-three lanes were lower and 31 stayed the same. The national average van load-to-truck ratio declined from 4.0 during the previous week to 2.9, meaning there were 2.9 available loads for every truck posted on the DAT network. That’s higher that the average ratio in November (2.3) and October (1.7). Outbound freight volume rose steadily on 89 of the top 100 lanes, and the abundance of loads has helped keep rates high. Rate increases were concentrated in markets and lanes associated with retail freight, including: Buffalo, New York, to Charlotte, North Carolina: $2.11 per mile, up 11 cents Philadelphia to Boston: $3.88 per mile, up 12 cents. The return trip increased 9 cents to $1.99 per mile. Memphis to Atlanta: $2.52 per mile, up 9 cents Atlanta to Dallas: $1.64 per mile, up 1 cent. This is the highest rate on this lane since July. Reefer trends At the national level, reefer rates are not backing away from pre-Thanksgiving highs. The national average spot reefer rate in December is $2.23 per mile, 5 cents higher than the November average. The load-to-truck ratio fell from 7.4 to 4.9. Rates rose on high-volume lanes out of Elizabeth, New Jersey, home to the largest seaport on the East Coast, a sign of high demand to move imported produce. McAllen, Texas, also had rising rates due to imports. This weekly spot-rate snapshot is derived from DAT RateView, which provides real-time reports on spot market and contract rates, as well as historical rate and capacity trends. The RateView database is comprised of more than $68 billion in annualized freight payments. www.dat.com/trendlines    

DUBLIN, Va. — Roughly 700 assembly-line workers at Volvo’s New River Valley plant in Dublin, Virginia, will be laid off beginning the week of January 20, 2020. This reduction in force is said to come from a pullback in production which is reflective of the downturn in orders of new Class 8 trucks.  “We regret having to take this action, but we operate in a cyclical market, and after two years of extremely high volumes, we have to adapt to reduced market demand,” a Volvo spokesperson said. “You might recall we confirmed back in June, around the time we announced our $400 million investment in NRV, that we expected to have to lay people off around year-end.”  This investment will be unaffected by the announcement of layoffs and will include an expansion of the company’s industrial footprint and installation of a variety of state-of-the-art equipment. Over the next six years, the expansion is expected to create 777 new jobs at the facility.  Virginia’s Pulaski County has granted Volvo 222 acres of adjacent property to expand the campus and providing $500,000 toward site improvements.  November sales numbers for the Swedish truck maker indicate a decrease of 30.5% for November 2019 from November 2018. Year-to-date, Volvo’s sales have seen a 1.2% decrease. From October to November, the company’s sales have decreased by 32%.  “We expect the total North American truck market to be down nearly 30 percent, or about 100,000 trucks, in 2020,” a Volvo spokesperson said. “And we expect one of Volvo’s core segments, the long-haul truck market, to represent a significant part of that reduction.”  Only two months ago, some 3,500 United Auto Workers members at Volvo-owned Mack Trucks participated in a strike for first time in 35 years in October. The 12-day strike at six locations across three different state ended with a new four-year agreement that covered 3,500 employees at six facilities in Pennsylvania, Maryland and Florida.  Volvo isn’t the only truck manufacturer to experience layoffs. Just three months ago, Daimler Trucks North America eliminated 450 jobs each at two North Carolina plants citing a downturn in the market demand for production.  A spokesperson for Volvo said that outplacement support meetings led by the company and UAW representatives will be provided for all employees affected by the layoffs and employees will also be provided information about support available through the Virginia Employment Commission. 

Two organizations responsible for tracking and analyzing data about the U.S. commercial motor vehicle market both note that trailer orders have declined for November as compared to October. A cautious approach to truck ordering is likely connected to the decline in trailer sales, according to leaders of both research organizations. FTR Transportation Intelligence reports that preliminary trailer orders for November is at 20,200 units, with is a 34% decrease from October, as fleets are becoming more cautious about freight conditions in 2020. On a year-over-year comparison, orders were also down 55% from November 2018, when limits on OEM capacity resulted in carriers placing huge orders to lock in build slots throughout 2019.  Trailer orders for the last twelve months total 215,000 units. “Fleets are being more cautious with their truck orders, so it makes sense that trailer orders would follow suit,” said Don Ake, FTR vice president of commercial vehicles. “There is no reason to order in large quantities like last year. The supply of trailers has almost caught up with the demand for trailers, so ordering levels are flattening out and fleets are watching the market closely. There is still too much uncertainty regarding the economy, trade, tariffs and politics for companies to have a great deal of confidence right now for 2020.” OEMs have plenty of capacity to handle a more stable freight and trailer demand environment in 2020, so fleets are placing smaller orders and only ordering a few months out. Production continues to fall moderately on a per-day level, as freight growth has stalled. There is still a decent demand for dry vans and reefers, but the vocational segments, especially flatbeds, continue to weaken. “It is expected that orders will track in this range for a while, as fleets continue to place modest-sized orders for short-term needs,” Ake said. “OEM lead times are much shorter than a year ago, so ordering patterns will be much different, and more stable, than last year’s cycle.” ACT Research’s preliminary estimate for November indicates that trailer manufacturers booked 19,500 net orders to their order boards last month, which is a 39% decline from October’s volume. Activity was 56% below November of 2018, while year-to-date net orders are just under half that of last year. “The sequential decline in November broke a four-month streak of monthly gains,” said Frank Maly, Director of CV Transportation Analysis and Research at ACT Research. “That ran counter to the industry’s normal order patterns, which point to November typically ranking as the best order month of the year.” Before accounting for cancellations, new orders of 21,100 trailers were off 43% month-over-month and 54% below last year. Although a final volume report is not yet available, this preliminary market estimate is expected to be within +/- 3% of the final order tally. “The cautious stance toward 2020 cap-ex spending is evident in both the level and pattern of fleet trailer orders as we approach year-end,” Maly said. In this data, however, a decrease in cancellations for November as compared to the month before is a positive indicator for the year to come. “One positive take-away from the November stats is a significant easing in cancellations compared to previous months,” Maly said. “That’s an indication that, while lower, the commitments on the order board appear to be firming as we close the year. Discussions with trailer OEMs also indicate that, although they are encountering pricing pressure, quote activity remains solid, so any change in fleet confidence could quickly result in an order rebound.”      

For many truck owners, independence means freedom. When you own your own tractor, you can go for the bigger engine. The dual exhaust. The long hood and the fancy chrome bumper. Truck owners have more freedom in how they choose to drive, too. Company idle standards don’t apply, and in many cases, neither do company speed limits. One advantage those carriers have with their plain vanilla tractors is that they can maximize fuel efficiency. That’s something that savvy truck owners should be thinking about, too. There are a lot of reasons why saving fuel is important to a small trucking business, but one you may not have thought about is maximizing fuel surcharge payments. Many drivers look at fuel surcharges as another line on their settlements without realizing that the payment can help them reduce their out-of-pocket per-gallon fuel cost. Every truck owner, whether operating under their own authority or leased to a carrier as an independent contractor, should be aware of the exact amount of the surcharge for each load. Many carriers accomplish this with a surcharge chart that allows each owner to determine the surcharge payment for each mile. These are usually based on average diesel fuel prices published each Monday by the U.S. Energy Information Administration (eia.gov/petroleum/gasdiesel/). As fuel prices rise and fall, so do fuel surcharges. It’s important to understand that carriers and shippers calculate fuel surcharges based on an average miles per gallon (mpg) figure. In simple terms, if the fuel surcharge is based on a fleet average of 7 mpg but your truck achieves more than the average, you’re generating additional revenue for your business. That’s because the surcharge amount is calculated based on trip miles – it doesn’t change based on your truck’s fuel consumption. When fuel prices are high and surcharges are at a peak, it’s possible to cut your out-of-pocket fuel cost in half, or even lower. Consider a 1,000-mile trip. If your truck achieves 7 mpg, you’ll burn 143 gallons of fuel. If the price of diesel fuel is $2.55, your fuel cost for that trip, at 7 mpg, would be $364.65. If you receive a fuel surcharge of $0.15 per mile, you’ll get $150.00 in fuel surcharge for that trip, reducing your fuel cost to $214.65. But, if your tractor achieves 9 mpg, you will only consume 111 gallons of fuel for the dispatch. At $2.55 per gallon, your initial cost would be $283.05, a savings of $81.35 from our example above. Subtract the $150 total fuel surcharge from $283.05 and you’ll get $133.05. That’s your final cost for the 111 gallons of fuel you burned on the 1,000-mile trip. That’s a fuel price of less than $1.20 per gallon. The secret to making fuel surcharges pay is getting better fuel mileage than the fleet average used to calculate the surcharge.. If you can increase your fuel efficiency, you’ll burn less fuel AND you’ll pay less for the fuel you burn. The higher the price of fuel, the greater the potential savings to the owner-operator. In fact, when fuel prices are highest, it’s possible to realize a final fuel cost of ZERO. Taking full advantage of surcharges, however, means adopting many of the practices of the larger carriers. Reducing speed and keeping idle time to a minimum can have a huge impact on fuel mileage. Out of route miles don’t generate revenue and they don’t generate fuel surcharge income, either. The most efficient route is usually the best one. Trucks with sloped hoods, wind fairings, low-profile tires and aftermarket aero treatments like flow-through mud flaps and hub caps will generally get better mileage. If you lease equipment to a carrier and you’ll be pulling their trailers, ask how the trailers are equipped for aerodynamics. Trailers that aren’t equipped with side skirts, undercarriage “scoops” or collapsible “tails” will require more fuel to pull, at your expense. When leasing to a carrier or signing an agreement with a customer, be sure you understand how the fuel surcharge is calculated, what it’s based on and when you’ll be paid. Unfortunately, some carriers can be very ambiguous about how the fuel surcharge is paid, so be careful about leasing equipment to a carrier who can’t clearly explain the surcharge. The fuel surcharge was developed to help carriers and shippers cope with fluctuating fuel prices. By understanding how it works and making it work to your advantage, you can add revenue to your bottom line.  

WASHINGTON — The Freight Transportation Services Index (TSI) that is based on the amount of freight carried by the for-hire transportation industry, rose 1.3% in October from September, up after a one-month decline, according to the Department of Transportation’s Bureau of Transportation Statistics’ (BTS). From October 2018 to October 2019, the index rose 0.5% compared to a rise of 6.8% from October 2017 to October 2018. The level of for-hire freight shipments in October at 138.6 was exceeded by three previous months and was 1% below the all-time high level of 140.0 in August 2019. Records date back to 2000. The September index was revised to 136.8 from 136.6 in last month’s release.  Monthly numbers for June through August were revised down slightly. The Freight TSI measures the month-to-month changes in for-hire freight shipments by mode of transportation in tons and ton-miles, which are combined into one index. The index measures the output of the for-hire freight transportation industry and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight. The TSI is seasonally adjusted to remove regular seasons from month-to-month comparisons. The October TSI was broad based with increases in trucking, water, pipeline and air freight. Both rail carloads and rail intermodal declined. The TSI increase took place against a background of mixed results for other indicators. The Federal Reserve Board Industrial Production Index declined in October, reflecting decreases in all major industry groups. Personal income increased by less than 0.1%, while housing starts increased by 3.8%. The Institute for Supply Management Manufacturing index increased 0.5 points to 48.3, indicating contraction in the manufacturing sector but not as much contraction as in September. The Freight Index’s 1.3% increase in October was the largest one-month Freight TSI increase since September 2018. Following a decrease of 2.3% in October, TSI was 1.0% below its record high of 140.0 in August. However, it remained above any level it had reached before the high of November 2018 and in all but one month prior to January 2019. The Freight TSI rose 15.8% from 120 in March 2016 to a level of 139.0 in November 2018, but has been essentially stable (declining by 0.3 %) since then. The October 2019 index was 46.2% above the April 2009 low during the most recent recession. For-hire freight shipments measured by the index were up 1.9% in October compared to the end of 2018. As for the long-term trend, for-hire freight shipments are up 13.3% in the five years from October 2014 and are up 40.4% in the 10 years from October 2009.

COLUMBUS, Ind. —  According to ACT’s latest release of the North American Commercial Vehicle OUTLOOK, expectations for the Class 8 and trailer production volumes have been trimmed for 2020, and expectations of a recovery starting in 2021 have been tempered. Meanwhile, ACT’s December installment of the ACT Freight Forecast, U.S. Rate and Volume OUTLOOK report covering the truckload, intermodal, LTL and last mile sectors came with this headline: “Freight forecast: Lowering truckload spot rate forecasts on freight demand; what could drive rates up in 2020?” As for the tempered Class 8 outlook, ACT President and Senior Analyst Kenny Vieth pointed to three factors. “Broadly, there are three components to the forecast cuts for 2020 and 2021: Supply, demand, and timing,” Vieth said. “Some, like overcapacity, have been on the radar for a long time. Others, like the growing weakness in manufacturing and the broader economy, have come on slowly and inexorably over several months. The past six months have been marked by a continued loss of traction in manufacturing. Despite the GM-impacted payroll increase in November, most recent evidence from the sector suggests that recovery is likely to come later, rather than sooner.” The North American Commercial Vehicle OUTLOOK is a robust report that forecasts the future of the industry, looking at the next 1-5 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, as well as takes a deep dive into relevant, current market activity to highlight orders, production, and backlogs, shedding light on the forecast. Information included in this report covers forecasts and current market conditions for medium and heavy-duty trucks/tractors, and trailers, the macroeconomies of the US, Canada, and Mexico, publicly-traded carrier information, oil and fuel price impacts, freight and intermodal considerations, and regulatory environment impacts. As for the freight forecast, Tim Denoyer, ACT Research’s vice president and senior analyst, said, “This is the largest year-over-year drop in container imports since the Great Recession, aside from holiday timing. While partly because of the comparison against pre-tariff inventory building last year, we see evidence that trade issues will continue to drag the freight cycle through the mud. We’ve been forecasting a lengthy freight recession, but October imports, down 8% year-over-year, and fourth quarter rail volumes, down 7% year-over-year, are missing low expectations. In addition to a turn for the worse in our Spot Leading Indicator, this led us to modestly lower our spot rate forecasts for the first half of 2020.” ACT Research also lowered Class 8 tractor sales forecasts today, supporting the beginning of the bottoming process for truckload rates, and this month’s report provides analysis of the factors that could pull forward the eventual rate recovery, from both a spot and a contract perspective. “We expect capacity to rebalance over the course of 2020, but we caution not to jump to the conclusion that capacity is tightening because of carrier failures,” Denover said. “While our thoughts go out to the affected employees, even the largest bankruptcy in truckload history this week accounts for just 0.2% of the active fleet, or about 3% of the Class 8 tractor capacity that was added over the past year, and the equipment will be remarketed.”

SAVANNAH, Ga. —  The Port of Savannah moved 363,000 twenty-foot equivalent container units in November, a 5.4% increase over the same month last year, or an additional 18,460 TEUs. For the fiscal year to date (July-November), the Georgia Ports Authority has handled nearly 2 million TEUs, an increase of 109,000 TEUs, or 5.8%. The positive numbers achieved last month mean Savannah’s Garden City Terminal has marked year-over-year increases for five consecutive months, and 34 out of the past 36 months. “After nearly three full years of cargo growth, with dozens of monthly records, it is frankly surprising to see our numbers continue to grow upon such a large base,” said GPA Executive Director Griff Lynch. “The streamlined movement of containers from vessel to departing rail in 24 hours and capacity increases built into Garden City Terminal have helped to increase volumes and improve efficiency.” GPA Board Chairman Will McKnight said that the authority’s Mid-American Arc initiative, targeting markets from Memphis, Tennessee, to Chicago and the Ohio River Valley, is also starting to pay dividends with customers moving more cargo in direct shipments from Savannah to the Midwest. “Chicago plays such an important role in the nation’s logistics, not only as a major market, but also as a cargo hub,” McKnight said. “Breaking into that market with a new routing option that provides Savannah’s world-class terminal efficiency and customer service holds amazing potential to win new business. With all the opportunities before us, it’s a great time to be a Georgian.” In Roll-on/Roll-off traffic, Colonel’s Island at the Port of Brunswick and Ocean Terminal in Savannah moved a combined 62,146 units of cars, trucks and heavy equipment in November, an increase of 5 percent, or 2,850 units. GPA has handled 281,547 Ro/Ro units, up 2,030 units or approximately 1%, through the first five months of the fiscal year. Georgia’s deepwater ports and inland barge terminals support more than 439,000 jobs throughout the state annually and contribute $25 billion in income, $106 billion in revenue and $2.9 billion in state and local taxes to Georgia’s economy. The Port of Savannah handled 8.5% of U.S. containerized cargo volume and 10 percent of all U.S. containerized exports in FY2017.