Business

WASHINGTON — Retail sales dropped in September by the largest amount in seven months, possibly signaling that rising trade tensions and turbulent markets are having an impact on consumer spending. Retail sales fell 0.3% last month following a 0.6% gain in August, the Commerce Department reported Wednesday. It was the first decline since a 0.5% drop in February. Retail sales are important to the trucking industry because trucks carry an estimated 75-80% of the merchandise sold at retail outlets. Consumer spending was strong in the spring and economists had been counting on continued strength to protect the U.S. economy as it is buffeted by the fallout from President Donald Trump’s trade war with China. The spending decline in October, which was unexpected, was influenced by special factors including a big 0.7% decline in sales at gasoline stations, a decline that likely reflected falling gas prices during the month. The overall economy grew at a 2% annual rate in the April-June quarter with much of that strength coming from a 4.6% surge in consumer spending, which accounts for about 70% of economic activity. That spending pace had been expected to slow in the July-September quarter but still remain strong enough to support economic growth near the 2% rate seen in the spring. But some economists are worried that a slowing global economy and the adverse impact of the U.S.-China trade war could slow overall growth so much that the country could see an increasing risk of a recession ending the current record-long U.S. expansion, which began in June 2009. “It looks like the trade war has claimed yet another victim, in addition to diminished business confidence and reduced investment spending, … consumers are starting to chicken out,” said Chris Rupkey,  chief financial economist at MUFG in New York. Many economists said the disappointing retail sales performance would make it more likely that the Federal Reserve will cut interest rates in October for a third time this year to buy more insurance against a recession when they meet later this month. Michael Pearce, senior U.S. economist at Capital Economics, said while there were special factors affecting the weak September sales performance, the report contained clear signs that consumption growth is slowing. He said the report was consistent with his view that the overall economy will continue to slow to a rate of just 1% by the final three months of this year. He said that will prompt the Fed to cut rates again but not until the December meeting. In addition to the drop in gasoline sales, sales of autos fell 0.9% in September after a solid 1.9% increase in August. Sales at department stores were down 1.4% while sales at general merchandise stores, which include chain retailers such as Walmart and Target, fell 0.3%. Sales also dropped at hardware stores, grocery stores and sporting goods stores. Clothing stores, restaurants and health care stores all saw increases. Sales in a retail control group which focuses on key components that go into computations of GDP were unchanged in September after a 0.3% gain in August.  

EAGAN, Minn. — Third-party logistics provider TA Logistics Tuesday said it is expanding its service capabilities and solution resources by adding to its portfolio asset availability from Transport America, as well as sister companies CFI, one of the nation’s leading truckload carriers, and CFI Logistics, a provider of integrated supply chain solutions. The businesses all are operating companies of TFI International Inc. TA Logistics, founded in 2000, has long provided third-party logistics services for manufacturing, industrial and retail-based business. By formally incorporating CFI and CFI Logistics into its solution set, the company gains broader capabilities to address customer needs for dedicated truckload capacity, freight brokerage, transportation management and network optimization, warehousing and distribution and supply chain engineering, according to Bill Carter, vice president of logistics for TA Logistics.  Additionally, the company maintains a relationship with and access to TForce, a provider of expedited same-day final mile delivery. “Customers increasingly want a logistics partner that can operate and deliver value across the broadest footprint of their supply chain,” Carter said. “Establishing more formal relationships and joint sales efforts with our sister companies – and the complementary capabilities they offer – allows us to leverage proven assets and services and significantly bolster our ability to meet more of our customers’ needs.” Carter said that bringing to market a portfolio of logistics management, same-day final-mile delivery, reliable middle-mile trucking, and over-arching supply chain optimization capabilities is critical for today’s evolving, high-velocity, eCommerce-driven supply chains. “Customers want to be able to choose a single element of service, a broadly integrated solution, or anything in between,” he said. “Yet the common denominator is to have those multiple capabilities within one organization that can flex and adapt. That’s a valuable differentiator that TFI companies enjoy.” TForce operates a network of 60 distribution and product staging centers in the U.S., with nearly 4,400 dedicated last-mile delivery trucks, covering 92 percent of communities in the U.S. TForce’s capabilities include expedited last mile service for parcel, package, freight and large-format goods delivered into homes or businesses. CFI is one of the nation’s leading truckload carriers with a fleet of over 2,300 trucks and 7,000 trailers providing on-demand as well as dedicated truckload service packages. CFI Logistics provides complimentary supply chain planning, optimization and transportation management services to ensure optimal network operations, asset deployment and utilization, and supply chain productivity. Importantly, Carter said, with CFI’s 35 years of experience and operations in Mexico, inbound cross-border goods from Mexico can now be seamlessly managed and expedited for delivery into TA Logistics distribution centers, where they can then be staged for order fulfillment and final-mile delivery via an owned intra-Mexico LTL network. Lastly, he said customers benefit from the convenience and efficiency of working with one service provider for multiple needs, and receiving a single, consolidated invoice. “Time is money for our customers, so ease and efficiency of doing business and not having to manage multiple carriers and invoices becomes a key advantage,” Carter said.  

WASHINGTON — The newly-elected president of the American Association of State Highway and Transportation Officials (AASHTO) says he plans to emphasize the need for surface transportation funding reauthorization and highlight transportation safety as the major focus areas of his one-year term. “We need to make clear the public benefit of federal surface transportation investment and its impact on the safety, mobility, health, and economic well-being of all Americans,” Patrick McKenna, director of the Missouri Department of Transportation since 2015, said in a statement reported by the Journal, AASHTO’s official publication. The expiration of the 2015 Fixing America’s Surface Transportation or FAST Act in September 2020 means reauthorizing surface transportation funding will occur in a presidential election year: “a tall task, but one that AASHTO and its members must fully embrace [as] state DOTs depend on the funding stability provided by multi-year transportation program,” McKenna said. Launching a national campaign focused on how “transportation is personal” that explains the many benefits transportation investment provides to all Americans is one tactic McKenna plans to spearhead during his term as AASHTO’s 2019-2020 president as part of the organization’s effort to get surface transportation funding legislation reauthorized. He also plans to place renewed focus on reducing transportation fatalities, which McKenna described as a “national public health crisis” in his remarks. “Despite tremendous advances in technology and millions invested in [driver] education, the annual loss of life on our nation’s roads is staggering,” he said, noting that the National Highway Traffic Safety Administration’s most recent estimates indicated that 36,700 people died on America’s roads in 2018. To help reduce those losses, McKenna said AASHTO will continue its role in the Towards Zero Deaths and Vision Zero national coalitions while “facilitating a conversation” with state DOTs and local communities to consider ways to deploy “innovative infrastructure designs and technologies” to more safely accommodate pedestrians, bicyclists, and scooter users. McKenna, who recently completed a one-year term as AASHTO’s 2018-2019 vice president, also served as president of the Mid America Association of Transportation Officials for 2017-2018 and is a member of the executive committee for the National Academy of Science’s Transportation Research Board. Victoria Sheehan will be AASHTO’s vice president in 2019-2020. Sheehan commissioner of the New Hampshire DOT in 2015 after a 10-year career in the Massachusetts Department of Transportation’s highway division, where she served in a number of roles including accelerated bridge program manager, bridge program consultant contracts administrator, and finally as manager of strategic planning and highway performance. Sheehan is originally from Northern Ireland. She is only the second woman to serve as vice president in the association’s 105-year history.    

COLUMBUS, Ind. — According to ACT Research’s latest release of the North American Commercial Vehicle OUTLOOK, the key risk to all vehicle market forecasts, as well as well as the U.S. economy broadly, remains the trade war with China. With manufacturers and farmers struggling to compete on the tilted global playing field, the key driver of growth into the mid-term outlook is the U.S. consumer, who remains well positioned to keep the economy out of the ditch. The N.A. CV OUTLOOK is a robust report that forecasts the future of the commercial vehicle industry, looking at the next one to five years, with the objective of giving OEMs, Tier 1 and Tier 2 suppliers, and the investment community the information they need for planning in a deeply cyclical industry. The report provides a complete overview of North American CV markets, taking a deep dive into relevant economic, freight and regulatory demand drivers, pivoting on current market activity (from orders and backlogs to production and sales), before arriving at unit forecasts for different CV vehicle classes. Information included in this report covers medium and heavy-duty trucks/tractors, and trailers, the macroeconomies of the U.S., Canada, and Mexico, information on carrier profitability trends, freight and intermodal considerations, and regulatory environment impacts. “While the subcomponents wiggled a bit, economic expectations remained unchanged this month, with growth expected to moderate in 2019 and again in 2020,” said Kenny Vieth, ACT’s president and senior analyst. “After growing 2.9% in 2018, the forecast calls for U.S. GDP growth to slow to 2.3% in 2019 and soften to below 2% growth in 2020.” Vieth said if President Donald Trump doubles-down on the China trade war, which seems to be happening, a greater global downturn could ensue, with the worst outcomes spreading beyond the impact of tariffs and into a global currency war. “Additional negative moves from this point would substantively increase the likelihood of a US recession in late 2020 or early 2021,” Vieth said. “That said, consumer fundamentals, job and wage growth and savings rates are all at healthy levels, supporting consumer confidence and spending for the time being.” ACT Research is a leading publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasts for the North America and China markets.      

COLUMBUS, Ind. — Since early 2018, ACT Research’s forecasts have called for the up-cycle in the Class 8 market to run out of steam around the third quarter of 2019, according to ACT’s latest release of the North American Commercial Vehicle OUTLOOK. The N.A. CV OUTLOOK is a robust report that forecasts the future of the commercial vehicle industry, looking at the next one to five years with the objective of giving OEMs, Tier 1 and Tier 2 suppliers, and the investment community the information they need for planning in a deeply cyclical industry. The report provides a complete overview of North American CV markets, taking a deep dive into relevant demand drivers, pivoting on current market activity (from orders and backlogs to production and sales), before arriving at unit forecasts for different CV vehicle classes. Information included in this report covers medium and heavy-duty trucks/tractors, and trailers, the macroeconomies of the U.S., Canada, and Mexico, information on carrier profitability trends, freight and intermodal considerations, and regulatory environment impacts. “Over the past couple of quarters, we have been beating the drum loudly so that our customers could be as well positioned as possible for when the downturn in industry activity inevitably occurred,” said Kenny Vieth, ACT’s president and senior analyst. “Starting around six weeks ago, we began to see announcements of staffing reductions and plant shutdowns from OEMs, as well as from major tier-one suppliers. Anecdotes suggest the lower tiers on the supply chain have experienced production volumes cuts since early in September.” Regarding heavy vehicle demand, Vieth said two metrics of note this month were the continued pull down of the Class 8 backlogs, owing to ongoing order weakness, and a fourth consecutive month of record new truck inventories. “From a net freight perspective (freight less productivity), growth falls from 4% in 2018 to 0.2% in 2019, as productivity has risen with a vengeance in response to the sharp run-up in freight rates in 2018,” he said. Regarding ACT’s medium duty forecasts, Vieth said, “In the near term (2019), there remains a bit of upward pressure on production, though it started abating in July. Based on the accumulation of inventory, we expect further slowing in medium duty build as the year progresses, a sentiment echoed by recent OEM layoff and production curtailment announcements.” ACT Research is a 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. — Truckload freight markets turned a corner in September. Demand remained strong throughout the month, while the combination of tighter capacity and fuel price increases pushed spot market rates higher. Volumes for dry van, refrigerated and flatbed freight declined from their August peaks but were higher than September 2018 numbers, according to the DAT Truckload Freight Volume Index. The index reflects changes in the actual number of spot market loads moved each month. “Truckload volume has been strong all year long, but pricing hasn’t always kept pace,” said Peggy Dorf, market analyst with DAT Solutions. “That’s because truckload rates are tied more closely to capacity than volume, and last month a number of events limited truck availability in key markets for shippers and freight brokers.” Hurricane Dorian disrupted supply chains early in the month, with the spot market kicking into action for resupply and recovery efforts along the Southeast coast. Flooding along the Gulf Coast after Tropical Storm Imelda stalled freight movements later in the month. Meantime, fall harvests and retail shipments spurred by Halloween kept trucks in high demand, and the close of the third quarter led to a spike in activity to end the month. Van rates averaged $1.84 per mile in September, up 4 cents from the prior month average. The average rate was 30 cents below the high prices of September 2018. Van volume fell 6.9 percent from August, but compared to last year, September van volume rose 15 percent. Fall produce harvests pushed reefer load counts 10 percent higher than they were in September 2018, despite the 7.6 percent decline from last month’s peak demand. Nationally, reefer rates averaged $2.16 per mile in September, a 2-cent increase over August but a 35-cent drop from September 2018. Flatbed markets have lagged in 2019 but spot market prices began to stabilize last month. The national average stayed at $2.19 per mile, the same as August, but 32 cents below the high rates from September 2018. Flatbed volume declined 8.2 percent compared to August but load counts remained 14 percent above where they were last year. “The spot market gained a lot of momentum heading into quarter four,” Dorf said. “We expect demand to remain elevated through the rest of the year, and the holiday shipping season should push van rate higher than we saw in quarter three.” DAT market trends and data insights are derived from 256 million annual freight matches and a database of $65 billion in annual market transactions. Related services include a comprehensive directory of companies with business history, credit, safety, insurance, and company reviews; broker transportation management software; authority, fuel tax, mileage, vehicle licensing, and registration services; and carrier onboarding.  

SUNRISE, Fla. — dexFreight, providers of a decentralized, blockchain-based logistics platform, said Thursday Jim Handoush will serve as its president and CEO. In his new role, Handoush will focus on strengthening and expanding the use of dexFreight’s technology. “dexFreight is shrinking the gap between shippers, carriers and brokers by continually  developing its blockchain solution and tools that reduce costs, improve productivity and increase revenue and profitability,” Handoush said. “I look forward to bringing dexFreight’s vision to supply chain stakeholders and to having a positive impact on transportation and logistics operations in markets around the globe.” Handoush brings to dexFreight a track record in technology, transportation and logistics industries building high-performance teams and leading complex organizations with Fortune 500 customers. Previously, he served as the executive vice president of Transportation and Logistics Solutions at Optym, a global software development company that provides optimization solutions to transportation companies; and held multiple executive roles in Landstar System, a worldwide, asset-light provider of integrated transportation management solutions. With the appointment of Handous, dexFreight CEO and co-founder Rajat Rajbhandari will assume the role of chief information officer and focus on market research and fostering relationships with governmental and academic institutions. “When we founded dexFreight in early 2018, we understood its enormous potential and knew that we would need leaders with a deep background in scaling and running multi-billion dollar companies, “Rajbhandari said. “As our technology continues to mature, the timing is perfect for someone like Jim Handoush to step in and take the helm. His keen interest in innovation and deep experience will drive our growth in the coming years.” dexFreight is a decentralized, blockchain-based logistics platform that allows shippers, carriers and other supply chain stakeholders to transact and collaborate more efficiently, transparently and securely. For information, visit dexfreight.io.      

COLUMBUS, Ind. — ACT Research released the October installment of the ACT Freight Forecast, U.S. Rate and Volume OUTLOOK report covering the truckload, intermodal, LTL and last mile sectors and after a less negative spot environment over the summer, ACT said it now expects excess capacity to exert more downward pressure on truckload spot rates. “The rebalancing trend is still valid for 2020, but we think fourth quarter spot rates will actually fall from third quarter this year, counter to the seasonal pattern, due to the supply/demand imbalance detailed in the Freight Forecast report,” said Tim Denoyer, ACT Research vice president and senior analyst. “We see the signs that capacity is beginning to come at the margin in some places, from company failures to lower for-hire employment data, but the industry still added about 5,000 net new tractors to the US highways last month. This reflects ongoing capacity additions by private fleets, as the for-hire sector isn’t the problem. This will change next year, but this rate of capacity addition will continue through year-end.” ACT said freight softened in recent weeks, following the September 1 tariff imposition, and after a brief respite earlier in the third quarter, the freight recession is showing signs of broadening amid weaker industrial indicators. “While holiday spending and pre-tariff inventory building may help volumes in fourth quarter, we continue to see heightened risk of weak freight volume in early 2020 as inventories draw down,” Denoyer said. ACT Research is a publisher of commercial vehicle truck, trailer and bus industry data, market analysis and forecasts for the North America and China markets. For more information, visit www.actresearch.net    

WASHINGTON — The Freight Transportation Services Index (TSI), which is based on the amount of freight carried by the for-hire transportation industry, rose 1.4% in August from July, rising to a new all-time high with the second consecutive monthly increase, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics’ (BTS). From August 2018 to August 2019, the index rose 4.1% compared to a rise of 5.5% from August 2017 to August 2018. The level of for-hire freight shipments in August measured by the Freight TSI (140.6) reached its all-time high. BTS’ TSI records begin in 2000. The July index was revised to 138.7 from 139.0 in last month’s release.  The June index was revised up 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 August Freight TSI increase was broad based, with increases in all sectors except the rail components — carloads and intermodal and took place against a background of mixed results for other indicators. The Federal Reserve Board Industrial Production Index grew in August, with increases in mining, manufacturing and utilities. Personal income increased by 0.4%, while housing starts grew by 12.3%. The Institute for Supply Management Manufacturing index decreased 2.1 points to 49.1, indicating contraction in the manufacturing sector. The August increase brought TSI to a record high level. The August increase followed an increase in July, leaving TSI 2.0 % over its June level, and 1.3% over its previous record high in November 2018. The record high level was reached even though the index grew in only five of the nine months since November. From a low point in March 2016, the index climbed 12.8% until reaching a new high in May 2018. From that point, the index has exceeded its levels in all months prior to May 2018. The July 2019 index was 48.3% above the April 2009 low during the most recent recession. For additional historical data, go to TSI data. For-hire freight shipments in August 2019 (140.6) were 48.3% higher than the low in April 2009 during the recession (94.8). The August 2019 level reached its all-time high.    

Amidst all the talk about the trucking industry being in a slow-down mode comes word that U.S. Class 8 truck sales appear to have hit an all-time record in September. Wards Intelligence reported September new truck sales of 28,258, an increase of 20.4% over August sales of 23,466 and a 19.5% increase of September sales in 2018 of 23,648. For certain, September sales were the highest since December 2006 when 26,462 units were sold and for sure is the highest since The Trucker began keep sales figure in 2000. Wards said that total U.S. sales in 2019 have reached 211,720, an 18.8% increase over 2018 year-to-date sales of 178,235. FTR said in a news release that sales had been strong and steady for the previous five months and September was expected to be similar but added that the September record activity was a surprise, even more so with fewer sales days in the month. Despite slowing freight growth, FTR said some fleets are still expanding and need more trucks. Sales were also boosted by fleets taking delivery of some large orders that had been sitting on OEM lots during the summer. In addition, carriers have cash to spend to replace older units. Reports indicate some OEMs are offering discounts to reduce record-high inventories, so now might be the ideal time to trade trucks in. A source told The Trucker that one OEM that drove the non-trend spike referred to increase it as pent-up sales: For whatever reasons, there were delays in getting trucks to market in the preceding months that got solved in September. FTR said Sales are expected to pull back considerably in October and November as the industry adjusts to the softer freight environment. FTR expects sales volume to drop more than 20% in 2020. “September should be considered a fluke as fleets delayed taking some deliveries in the summer and the sales all closed in September,” said Don Ake, vice president of commercial vehicles at FTR. “Still, it was great sales month for Class 8 trucks. It will be a much tighter market going forward as fleet expansion slows because of the weaker freight environment. The market is slipping back to replacement level, but fleets are still profitable, so this should stabilize sales.” Mack Trucks led month-over-month sales in September, selling 2,794 trucks in September compared to 1,773 in August, a 57.6% increase. Freightliner sold 11,654 trucks in September compared with 7,535 in August, a 54.7% increase. Based on available records, Freightliner’s September sales also reached an all-time monthly high. Year-to-date International has the largest percent increase with sales of 30,225 in 2019 compared with 24,306 for the same period in 2018, an increase of 24.4%. Freightliner is second at 21.7% and Mack is third at 21.5%            

ALEXANDRIA, Va. — William “Bill Giroux, executive vice president of presidential projects at the Truckload Carriers Association, died Friday, October 4, at his residence. Giroux dedicated 28 years to the association and has seen the evolution of trucking. During his tenure he was instrumental in ensuring that TCA’s membership received the best possible experience at on-site events. He acted as a staff liaison for TCA’s Bylaws, Carrier/Shipper Relations, and Nominating Committees. Giroux’s career in the nonprofit association world started in high school and soon thereafter led him to answer an ad seeking a director of meetings and education position with the Interstate Truckload Carriers Conference (ITCC), now the Truckload Carriers Association. “I love this industry and I would love to serve the membership as long as they’re willing to have me,” shared Giroux in the August 2015 edition of Truckload Authority magazine. “It’s just a great industry. I’ve been in this industry long enough to see the next generation take over, and I’m left with the kind of memories I will always cherish.” Giroux is survived by his spouse, Bob, a multitude of family and friends, and his beloved Sheltie. In the upcoming weeks TCA will share funeral information and obituary.        

SAN DIEGO — American Trucking Associations President and CEO Chris Spear Monday urged the federation to work together, and with anyone who is willing to work with trucking, to continue shaping a strong, positive future for the industry. “As an association that puts its members, industry and country first, we must always adhere to the value of working with anyone willing to work with us. Since becoming your president and CEO, ATA’s focus on your priorities has been relentless, posting key wins from federal tax reform to the preemption of California’s duplicative meal and rest break requirements,” Spear said during the president’s address at the ATA’s 86th Management Conference & Exhibition. “These results contribute to a growth environment.” Working with lawmakers and officials from both sides of the political divide, as well as with the many parts of an industry as diverse as trucking is critical to achieving success on behalf of the industry. “The fact is, the relationships ATA has with the House and Senate — and both governing parties — are real, strategic and impactful,” he said. “The right wing and left wing belong to the same bird. And as an association that puts its members, industry and country first, we must always adhere to the value of working with anyone willing to work with us. We do that and we soar.” In looking ahead, Spear said it was crucial to trucking, in addition to continuing to make progress key issues like trade and infrastructure, to address looming challenges now like the driver shortage, tort reform and relaxation of laws surrounding recreational marijuana, so ATA can shape solutions that benefit the industry. On the shortage, Spear said ignoring or denying the existence of the shortage is not an option, and there are a number of potential solutions including allowing younger drivers to obtain a commercial license with improved oversight and safety training, working to improve access to affordable health care and wellness programs that keep our employees healthy and recruiting drivers from underrepresented and nontraditional demographics. “Let me be clear, poaching talent from other carriers is not a sustainable growth strategy,” he said. Spear also cited new work to be done in the arenas of tort reform and the industry’s response to a number of states legalizing marijuana for recreational use. “Eleven states, D.C. and Canada have now legalized the recreational use of marijuana, all while our federal government turns a blind eye. You can just see the trial lawyers — sitting on the edge of their high, wing-back leather chairs — drooling over the thought of more legal ambiguity,” he said. “We can’t just sit back and hand them yet another opportunity to litigate our industry. That’s why we’re announcing the first meeting of ATA’s new Controlled Substances, Health and Wellness Subcommittee here in San Diego. We need a member-led policy platform that helps lawmakers, regulators and courts make informed decisions about the impact substance abuse is having on safety and interstate commerce.” Those decisions, he said, should include moving forward on completing the federal clearinghouse of drug and alcohol test results, hair follicle testing and research into a roadside test for impairment from marijuana. Finally, Spear told ATA’s members that the federation was making “tort reform a tier one priority at the state and federal level.” “We will continue to grow the ATA Litigation Center and increase the number of lawsuits. And we will back our state association executives that pursue ballot initiatives – going state-to-state to fight… until we have won,” he said.      

READING, Pa. — The Penske Logistics Premier Driver Recognition Program honored 44 safe truck drivers in the United States and Canada as part of the 2019 Platinum and Gold classes. The Platinum class requirements include 15 consecutive years of safe driving and the Gold class recognizes those with 10 consecutive years of safe driving. These are the 2019 Platinum honorees: Larry Alexander, Indiana; Jerome Baldwin, Ontario; Timothy Cote, Michigan; Raymond Culver, Kansas; Susan Fabian, Georgia; Jeffrey Farley, Michigan; Randall Fish, Kansas; Teddy Headley, Kansas; Kevin Johns, Ohio; Mike Lyle, Ontario; Juan Sixtos, California; Rebecca Stoots, Michigan; Ricky Taylor, Tennessee; and Michael Tosto, Michigan These are the 2019 Gold members: Jason Berger, Ohio; Robert Brooks, North Carolina; Kirk Brown, North Carolina; Richard Cannon, Louisiana; James Carr, Michigan; Jesse Coleman, Mississippi; James Comer, Michigan; Charles Council, Massachusetts; Timothy Davis, Michigan; George Denning, North Carolina;   Andre Dowe, New Jersey; John Ellis, New Jersey; Kent Forsyth, Ontario; Ronald Gibbs, North Carolina; Geoffery Gruenewald, Georgia; Denica Hawke, Ontario; Albert Hergott, Ontario; and     James Hicks, North Carolina. Also, Alan Kenney, Massachusetts; William Mendez, Texas; Dave Nelson, Michigan; Vincent Poole, North Carolina; Dave Rowe, Georgia; Charles Rumph, North Carolina; Billy Scott, Mississippi; Larry Vickery, Florida; Fred Vollmar, Ohio; Shawn Whitaker, North Carolina; Drew Whitlock, Ohio; and Torianzo Wright, Maryland. “Congratulations are in order to the 44 Platinum and Gold members of this year’s Premier Driver Recognition Program,” said Marc Althen, Penske Logistics president. “Their skillful driving records serve as a great example for our 5,500-plus dedicated truck drivers.” Penske Logistics provides dedicated contract carriage services through its expansive network in North America with over 5,500 professional drivers and a modern truck fleet integrated with advanced safety systems, transportation management and real-time freight tracking systems. Truck drivers from Penske Logistics handle deliveries for a variety of market-leading companies in industries including automotive, food, grocery and beverage, manufacturing, quick-service restaurants, and convenience store chains among them. Penske Logistics is a Penske Transportation Solutions company with operations in North America, South America, Europe and Asia.  

WASHINGTON — The for-hire trucking industry has lost 9,300 jobs the past two months, according to the Department of Labor’s monthly job report released Friday, which showed that overall, U.S. employers added a modest 136,000 jobs in September, but enough to help lower the unemployment rate to a new five-decade low of 3.5%. Data from the Bureau of Labor Statistics showed that for-hire trucking, which includes local, regional and over-the-road companies, lost 5,100 jobs in August and another 4,200 in September. The BLS said for-hire trucking has lost 4,700 jobs in the first nine months of 2019. “One reason for the decline is that private fleets have been adding capacity and that’s taking freight out of the fore-hire market,” said Kenny Vieth, president and senior analyst at ACT Research. “So, they are pulling freight out of an already slowing for-hire freight market.” ACT Research reported September 27 in the latest release of the ACT For-Hire Trucking Index, based on August data, trucking retrenched to contraction in all categories after the large and partly anomalous improvement in July. The Volume Index pulled back to 48.0 in August, from 56.7 in July (seasonally adjusted). The August Pricing Index, at 47.1 (seasonally adjusted), also returned to negative territory after stabilizing to 50.3 in July. “While the strong consumer plus pre-tariff inventory building could still help volumes into the holidays, it appears inconsistent in the for-hire market, due in part to the weak manufacturing sector,” said Tim Denoyer, ACT Research’s vice president and senior analyst. “We think the addition of private fleet capacity is also partly responsible. Our for-hire respondents have stopped adding capacity, yet retail tractor sales data tell us capacity is growing. This will likely keep peak season muted in the for-hire market, with seasonal strength still likely closer to the holidays.” Avery Vise, vice president of truck at FTR, said that as a result of the positive numbers in 2018, carriers began hiring, and that hiring reached a peak right as the demand for those drivers began to soften. “Since January, the industry has been in a holding pattern,” Vise said. He also pointed to trucking company failures as another reason the industry is losing jobs. “Through the first nine months of 2019, there have already been twice as many failures as all of 2018,” he said, pointing to rising insurance rates and companies that “didn’t handle the good times as well as they should have by not controlling costs” as two reasons for the higher number of failures. “Carriers threw a lot of pay at drivers when things were good, and when things get tight, you can’t take those pay raises back,” he said. Data on the long-distance segment of the for-hire trucking industry mirrors the rate for all for-hire trucking. In August, the latest month for which data is available, the long-distance segment, which is primarily over-the-road trucking, lost 4,700 jobs. As for the job market overall, hiring has slowed this year as the U.S.-China trade war has intensified, global growth has slowed and businesses have cut back on their investment spending. Even so, hiring has averaged 157,000 during the past three months, enough to absorb new job seekers and lower unemployment over time. Despite the ultra-low unemployment rate, which dropped from 3.7% in August, average hourly wages slipped by a penny, the Labor Department said Friday in its monthly jobs report. Hourly pay has risen just 2.9% from a year earlier, below the 3.4% year-over-year gain at the beginning of the year. The unemployment rate for Latinos fell to 3.9%, the lowest on records dating back to 1973. With the U.S. economic expansion in its 11th year and unemployment low, many businesses have struggled to find the workers they need. That is likely one reason why hiring has slowed since last year. But it’s likely not the only reason. The jobs figures carry more weight than usual because worries about the health of the U.S. economy are mounting. Manufacturers have essentially fallen into recession as U.S. businesses have cut spending on industrial machinery, computers and other factory goods. And overseas demand for U.S. exports has fallen sharply as President Donald Trump’s trade conflicts with China and Europe have triggered retaliatory tariffs. A measure of factory activity fell in September to its lowest level in more than a decade. And new orders for manufactured items slipped last month, the government reported. Persistent uncertainties about the economy in the face of Trump’s trade conflicts and a global economic slump are also affecting hotels, restaurants and other service industries. A trade group’s measure of growth in the economy’s vast services sector slowed sharply in September to its lowest point in three years, suggesting that the trade conflicts and rising uncertainty are weakening the bulk of the economy. The job market is the economy’s main bulwark. As long as hiring is solid enough to keep the unemployment rate from rising, most Americans will likely remain confident enough to spend, offsetting other drags and propelling the economy forward. But a slump in hiring or a rise in the unemployment rate in coming months could discourage consumers from spending as freely as they otherwise might during the holiday shopping season. Consumers are still mostly optimistic, and their spending has kept the economy afloat this year. But they may be growing more cautious. Consumer confidence dropped sharply in September, according to the Conference Board, a business research group, although it remains at a high level. Americans also reined in their spending in August after several months of healthy gains. The 0.1% increase in consumer spending that month was the weakest in six months. Other parts of the U.S. economy are still holding up well. Home sales, for example, have rebounded as mortgage rates have fallen, helped in part by the Federal Reserve’s two interest rate cuts this year. Sales of existing homes reached their highest level in nearly 18 months in August. And new home sales soared. Americans are also buying cars at a still-healthy pace. Consumers would typically be reluctant to make such major purchases if they were fearful of a downturn. The Associated Press contributed to this report.

The two organizations that collect, analyze and report Class 8 data said Thursday that month-over-month were up moderately, but that year-over-year September orders were considerably lower. FTR reported preliminary North American Class 8 orders for September at 12,100 units, up 13% month-over-month but down 72% year-over-year. ACT Research said its preliminary North America Class 8 net order data show the industry booked 12,600 units in September, up 13% from August. FTR said Class 8 orders continue to track in the 10,000-13,000-unit range for the fifth month in a row. Fleets are moving around, or canceling orders previously placed but are not ordering many new trucks for fourth quarter delivery. Carriers have not begun ordering for 2020 requirements yet, because of the tariffs and the economic uncertainty, FTR said, adding that Class 8 orders for the past 12 months have totaled 214,000 units. “Class 8 orders have been remarkedly consistent, unfortunately, they are stuck at the bottom of the cycle. It’s basically the same story as the last several months, all the orders needed for 2019 were placed months ago and fleets are now adjusting delivery dates and finalizing requirements,” said Don Ake, FTR vice president commercial vehicles. “Fleets are nervous. Freight growth continues to ease back. The latest manufacturing and construction numbers are concerning. The trade issue with China looms. In this environment, fleets see no reason to begin ordering for 2020 until the fourth quarter. However, we are returning to normal industry ordering trends after a tumultuous period, and orders should rise in October.” Steve Tam, ACT Research vice president said little had changed since August with respect to the freight market and freight rates, while uncertainties surrounding trade and tariffs continue to weigh on truck buyers’ psyches. “Fleet overcapacitization has led to reduced utilization, with all the foregoing considerations conspiring to undermine demand,” he said. Regarding the medium duty market, Tam explained, “Previously a picture of stability, the medium duty market marked a sixth consecutive month of below-trend net order activity in September, which is more a recognition of the outsized strength of the market in the not-too-distance past than a comment on its current state. Nonetheless, demand is slowing, setting up expectations for a small decline next year.”          

DOWNERS GROVE, Ill. — Roadrunner Transportation Systems Monday said it was downsizing its unprofitable dry van business, which is part of the company’s truckload segment. The downsizing includes reducing dry van company tractor and trailer fleets by over 50%, closing five terminal locations and eliminating approximately 450 positions. Employees subject to the workforce reduction will receive either severance or a 60-day notice. In conjunction with the downsizing activities, the company said it expected to incur one-time pretax operations restructuring costs of between $12 million and $16 million, excluding the gain or loss on the sale of equipment and the write-down of assets. The downsizing activities are expected to reduce lease obligations and debt and be substantially complete by year-end 2019, with workforce reductions effective over the next 60 to 90 days, the company said. The reduction in force represents approximately 10% of the company’s total workforce. “The decision to downsize the dry van business is a significant step in executing our strategy to emphasize our value-added logistics and asset-light LTL segments and increase our returns on invested capital,” said Curt Stoelting, Roadrunner CEO. “We factored in the impact of this downsizing as part of the strategic review of our Truckload segment. We believe downsizing the dry van business will improve operating margins and cash flow, reduce lease obligations and debt, improve internal controls and allow greater focus on the significant value-creation opportunities within our other businesses,” Roadrunner Transportation Systems is an asset-right transportation and asset-light logistics provider offering a full suite of services and solutions under the Roadrunner, Active On-Demand and Ascent Global Logistics brands. The Roadrunner brand offers less-than-truckload, over-the-road truckload and intermodal services. Active On-Demand offers premium mission-critical air and ground logistics solutions. Ascent Global Logistics offers domestic freight management, retail consolidation, international freight forwarding and customs brokerage. The downsizing comes some two months after the company said in its second quarter conference call that it was narrowing its strategic focus to the logistics and asset-light LTL segments. During the call, the company said it had: Revenues of $480.7 million in second quarter 2019 vs. $558.0 million in second quarter 2018. It said revenue declined primarily because of declines of $63.3 million in air and ground expedited logistics at Active On-Demand as well as reduced truckload shipment volumes and rate mix at Ascent and lower volumes at certain truckload operating units, while LTL revenues were flat. Operating loss of $137.8 million in second quarter 2019 vs. $11.4 million in second quarter 2018. Second quarter 2019 included $108.3 million of goodwill, intangible asset, software and asset impairment charges. Excluding impairment charges, the higher consolidated operating loss in the second quarter of 2019 was attributable to a decrease of over $10 million in operating results at Active On-Demand as well as declines in LTL and Ascent, partially offset by improved operating results in truckload. • A net loss of $141.9 million in second quarter 2019 vs. $42.0 million in second quarter 2018. The company said in addition to the consolidated operating loss explanations above, the consolidated net loss in the second quarter of 2019 was impacted by a decrease in interest expense of $29.6 million, due to the absence of interest on the company’s preferred stock, which was fully redeemed after completion of the company’s rights offering in February 2019, and a lower benefit from income taxes.

DALLAS — Ruth Lopez, director, transportation management, Ryder System has been named the ninth annual Influential Woman in Trucking award winner by Freightliner Trucks and the Women In Trucking Association. The award was presented during the WIT Accelerate! Conference & Expo here during the panel discussion “How Remarkable Women Unleash Their Leadership Potential.” The panel was facilitated by Angela Eliacostas, president and founder of AGT Global Logistics and 2018 WIT Influential Woman in Trucking. The award was presented by Kary Schaefer, general manager, product marketing and strategy, Daimler Trucks North America. “This is the second year I’ve had the pleasure of presenting the Influential Woman in Trucking award, and I have to say the caliber and contributions of all the nominees have left me in awe,” Schaefer said. Lopez was among six finalists for the award. The other finalists included Niki Bolton, senior truck auditor and executive projects officer, American Truck & Rail Audits; Kristy Knichel, CEO, Knichel Logistics; Kellylynn McLaughlin, OTR training engineer and professional driver, Schneider; Jodie Teuton, chairwoman, ATD/vice president, Kenworth of Louisiana; and Lidia Yan, CEO and co-founder, NEXT Trucking. “I am honored to present this award to Lopez whose leadership and influence in the transportation industry exemplifies everything that Women In Trucking is trying to accomplish,” Schaefer said. The Influential Woman in Trucking award recognizes women in the trucking industry who make or influence key decisions, have a proven record of responsibility, and mentor and serve as a role model to other women. The award was developed in 2010 as a way to honor female leaders in trucking and to attract and advance women within the industry. “As we receive more nominations each year, the process of choosing a winner gets progressively more difficult. All of these finalists are very deserving of the recognition and, we hope, thrilled to know they are among the top influential women in transportation,” said Ellen Voie, WIT president and CEO. “Ruth Lopez is an impressive and accomplished woman. This award is our way of thanking her for her commitment and service to the industry.” Lopez’s career with Ryder System spans 20 years. She currently serves as director of transportation management, leading teams in the U.S. and in Mexico. The teams are comprised of transportation planners executing lowest-cost/time-compliant shipments in accordance with the expectations of 56 external clients. Lopez, along with her team, creates specific execution plans with comprehensive strategies for Ryder’s key customer segments and new client implementations. Lopez has served as a co-chair for Ryder’s Women’s Leadership Forum, whose mission is to support the attraction, retention and development of women. She also was named a Supply Chain Excellence Award recipient for work recognized within the Supply Chain Solutions (SCS) division, which has over 8,000 employees. Lopez also received a Ryder Outstanding Award Recognition (ROAR) award.  It is given each quarter to an employee or team who consistently goes above and beyond in their duties and truly exemplifies the Ryder guiding principles. “The greatest recognition is when people say I have changed their lives,” Lopez said. The message Lopez gives to women in this industry is simple. “Passionately invest in others. Set aside time to do this and make it a priority. Spend the time to nurture them, teach them, and support them.  This, in turn, will allow you to reflect on investing in yourself.  Stay true to yourself and always do the right thing,” she said.

What’s Alaska’s nickname, “The Last Frontier”? Ryder System Inc. has recently placed a big footprint in that frontier, as the company opened its first full-scale maintenance facility in the state, centrally located in Anchorage. The state-of-the-art facility provides maintenance, rental, and leasing services for commercial vehicle fleets in one location. This new location will replace the existing maintenance facility originally built largely to service The Odom Corporation’s fleet, an 85-year-old family-owned beverage distributor and the facility’s largest customer. The facility conveniently is located just off the New Seward Highway and Walter J. Hickel Parkway, less than 1.5 miles from The Odom Corporation’s warehouse in a spot. The new facility was built to expand Ryder’s ability to provide commercial vehicle services in the growing Alaska market. “This expansion comes six years after we first established roots in Anchorage, and the demand for our services speaks to the strong partnership between Ryder and the local business community,” said John Diez, President of Fleet Management Solutions for Ryder. “This facility allows us to meet the growing economic needs of Anchorage, as well as strengthen our presence in other parts of the state, while ensuring our customers have the capabilities and resources they need to grow themselves.” The new facility was designed to meet the needs of Ryder’s customers in this challenging climate. With below freezing temperatures for nearly half of the year, the Anchorage facility offers indoor wash bays and 30 plug-in locations to keep engines warm and ensure quick starts. The new shop is three times larger than the old shop and will have triple the number of employees to assist with rentals, leasing, maintenance, and shop support. The location features six spacious work stations, which more than doubles the capacity of the former location. It also offers a sizable selection of rental trucks and trailers on a 6½- acre lot. Future plans for the location include above-ground fuel tanks to provide a one-stop-shop for Ryder’s customers. “The new maintenance facility offers us the means to more reliably serve our customers,” said John Odom, President and CEO of The Odom Corporation. “We’re thankful for the investment Ryder has made in the community, and we’re proud of how far our relationship has come since our very first truck rental from them in Spokane, Washington. We look forward to continuing to build on our footprint in the Northwest United States and the South Pacific.”

Spot truckload freight activity slowed for the week ending September 22 as Tropical Storm Imelda brought severe rain and flooding to Houston and disrupted supply chains across the South and Midwest, according to the DAT Spot Market Summary, released Thursday. The summary is a 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 composed of more than $65 billion in annualized freight payments. DAT load boards average 1.2 million load searches per business day. DAT reported that the number of loads posted dropped 25% compared to the previous week and the number of trucks posted fell 17%. The price of diesel, meanwhile, shot up 9 cents to $3.08 per gallon as a national average. National average spot rates for September (through Sept. 22) were as follows: Van: $1.84 per mile, 3 cents higher than the August average Flatbed: $2.19 per mile, 1 cent lower than August Reefer: $2.17 per mile, 3 cents higher than August According to DAT, the van load-to-truck ratio averaged 2.1, down from 2.4 the previous week. Spot van rates were higher on 41 of DAT’s Top 100 largest van lanes by volume, with few notable price swings. As noted, weather played a large part in van spot rates in various parts of the country. In Denver, van rates increased 6 cents to an average of $1.24 per mile. Rates were higher from Denver to Houston ($1.30 per mile, up 12 cents) and other markets like Oklahoma City that generally use Houston-based businesses in their supply chains. Suppliers in Denver helped pick up the slack. Meanwhile, as the effects of Hurricane Dorian continue to fade, demand for trucks fell in the Southeast. Atlanta to Charlotte dropped 17 cents to $2.21 per mile, and Atlanta to Miami fell 13 cents to $2.54 per mile Demand for reefer trucks edged lower, with the national average load-to-truck ratio slipping from 4.5 to 3.9. Spot reefer rates rose on 34 of DAT’s Top 72 reefer lanes. Rates were up in the Upper Midwest, as tree-fruit harvests continued to generate volume. Grand Rapids, Michigan, to Madison, Wisconsin, rose 26 cents to an average of $3.07 per mile. The return trip paid $3.55 per mile — for an average of $3.31 per mile for the 662-mile round trip between the two markets. Pumpkin season in Albuquerque, New Mexico, created opportunities for both van and reefer haulers. The van load-to-truck ratio there hit 15 to 1, with more than 2,400 loads available; the reefer ratio was 37 to 1 with more than 2,500 available loads. To see more, visit Dat.com/Trendlines.