TheTrucker.com

Papé Kenworth opens fifth parts and service facility in Central California

TURLOCK, Calif. — To meet the growing needs of local truck fleets, owner-operators and those traveling through Central California, Papé Kenworth has opened a new 12,500 square-foot parts and service facility in Turlock. Papé Kenworth provides parts, and service support for Kenworth heavy and medium duty trucks. Papé Kenworth operates five dealerships in Central California, including Bakersfield, French Camp (Stockton), Fresno, Santa Maria, and now Turlock; eight Oregon dealerships in Donald, Eugene, Klamath Falls, Medford, Portland, Redmond, Roseburg and Tangent; and one in Kelso, Washington. In addition, Papé Kenworth Northwest operates six dealerships in Washington: Aberdeen, Bellingham, Lakewood, Marysville, SeaTac, and Yakima; and two dealerships in Alaska: Anchorage and Fairbanks. The new Papé Kenworth–Turlock, at 3200 Commerce Way, features a 5,000 square-foot service department equipped with five service bays and a 5,800 square-foot parts department that includes a 1,100 square-foot area dedicated to retail display. Located on a one-acre site, Papé Kenworth–Turlock offers ample room for drivers to maneuver and park their rigs. It also has convenient access to Highway 99. The facility includes a customer lounge to provide drivers a comfortable place to relax and catch up on paperwork while their trucks are serviced. With steady population growth in the surrounding area, the new facility will help meet the increasing needs of trucking in the area. Hours of operation are 8 a.m. to 5 p.m. Monday through Friday. The phone number is 209-252-8114. Papé Kenworth is headquartered in Eugene, Ore., and is part of The Papé Group Inc. For more information, visit www.papekenworth.com.

FTR’s Shippers Conditions Index improves again in June up two point to 8.8

BLOOMINGTON, Ind. — FTR’s Shippers Conditions Index (SCI) rose to a good positive reading in June of 8.8, up two points from the updated May measure.  The June SCI reading is the strongest since February 2016. Freight-related indicators are mixed, FTR said. Manufacturing is growing very slowly, and construction is weaker. However, consumer spending remains strong.  Truckload rates are about 7.5% below 2019 with spot rates down nearly 18% whereas less-than-truckload rates have been higher this year. Both are expected to decline in 2020.   Intermodal rates continue to be soft with rail expecting 5% growth in 2019. “The relatively weak rate environment for truckload allows it to compete more effectively with intermodal,” said Todd Tranausky, vice president of rail and intermodal at FTR. “Intermodal volumes have been stymied by trade headwinds, changes in rail service offerings, overall rail service levels, and the weak truck market. International and domestic intermodal each struggled in June with weak results.” The Shippers Conditions Index tracks the changes representing four major conditions in the U.S. full-load freight market. These conditions are: freight demand, freight rates, fleet capacity, and fuel price. The individual metrics are combined into a single index that tracks the market conditions that influence the shippers’ freight transport environment. A positive score represents good, optimistic conditions. A negative score represents bad, pessimistic conditions. The index tells you the industry’s health at a glance. In life, running a fever is an indication of a health problem. It may not tell you exactly what’s wrong, but it alerts you to look deeper. Similarly, a reading well below zero on the FTR Trucking Conditions Index warns you of a problem…and readings high above zero spell opportunity. Readings near zero are consistent with a neutral operating environment. Double digit readings (both up or down) are warning signs for significant operating changes.                        

Descartes Systems Group acquires BestTramsport.com for $11.2 million

WATERLOO, Ontario — Descartes Systems Group, a global company that unites logistics-intensive businesses in commerce, said it had acquired BestTransport.com Inc. (BestTransport), a cloud-based transportation management system (TMS) provider focused on flatbed-intensive manufacturers and distributors. BestTransport has been connecting shippers and carriers to streamline transportation processes for more than 15 years. Shipper and carrier customers leverage BestTransport’s platform to more efficiently manage numerous shipments each year across North America and Europe, according to Andrew Roszko, executive vice president of global sales at Descartes, adding that the company offers a full TMS suite of solutions from contract rate management through to load building, shipment execution and freight payment, with extensive capabilities for flatbed transportation moves. “Moving goods in the flatbed market requires domain expertise and special equipment, and the associated transportation management processes have some unique characteristics,” Roszko said. “BestTransport has built a great business by creating a platform that addresses these unique characteristics with solutions available for both shippers and carriers.” “BestTransport, like Descartes, sees the value in creating a common platform for multiple constituents to collaborate and manage the lifecycle of shipments,” said Edward J. Ryan, Descartes’ CEO. “By combining BestTransport’s platform with our Global Logistics Network, we can offer additional solutions to the community, such as Descartes MacroPoint Visibility and Capacity Matching. We welcome the BestTransport team of domain experts and community of customers to Descartes.” BestTransport is headquartered in Columbus, Ohio. Descartes acquired BestTransport for $11.2 million, net of working capital, satisfied from Descartes’ existing line of credit.                

ATA Freight Forecast projects 25.6% increase in tonnage by 2030

ARLINGTON, Va. — The American Trucking Associations Wednesday released its latest ATA Freight Transportation Forecast: 2019 to 2030, an annual projection of the state of the freight economy, showing continued growth in the industry. “America’s trucking industry, and the overall freight transportation industry, are poised to experience strong growth over the next decade as the country’s economy and population grow,” said ATA Chief Economist Bob Costello. “Our annual Freight Forecast is a valuable look at where we are headed so leaders in business and government can make important decisions about investments and policy.” Among the findings in this year’s Freight Forecast: Overall freight tonnage will grow to 20.6 billion tons in 2030, up 25.6% from 2019’s projection of 16.4 billion tons. Freight industry revenues will increase 53.8% to $1.601 trillion over the next decade. Trucking’s share of total freight tonnage will dip to 68.8% in 2030 from 71.1% this year, even as tonnage grows to 14.2 billion tons in 2030 from 11.7 billion tons. Truckload volume will have an average annual expansion of 1.5% a year through 2024 and 2.1% for 2025-2029. Less than truckload volume will have an average annual expansion of 1.8% through 2024 and 2% for 2025-2020. Private carrier volume will have an average annual expansion of 1.5% percent year through 2024 and 2.2% per year for 2025-2029. In 2019, truckload will handle 71.1% of truck freight volume, LTL 0.9% and private truck 35.1% Trucking and total rail transportation will lose relative market share, even as revenues and tonnage grows, while intermodal rail, air and domestic waterborne transportation will show modest growth and pipeline transportation will experience explosive growth – surging 17.1% in tonnage and 8.6% in revenue over the next decade. As with any industry, forecasts are in part based on what’s happening with the U.S. economy. The executive summary of the Freight Forecast notes that the forecast is being released when the U.S.  economy is experiencing some volatility as uncertainties mount. “Despite prospects for solid trend-like growth in the U.S. in 2019, investor concerns over rising risks of a downturn after 2019, stoked by developments abroad and policy concerns, resulted in sharply worsening financial conditions in late 2018. “Helped by a dovish pivot in Federal Reserve Board monetary policy, a recovery in financial conditions is now supporting Gross Domestic Product (GDP) growth above trend. The second estimate of first-quarter 2019 U.S. GDP growth was 3.1%, up from 2.2% in the fourth quarter of 2018 and in line with the strong 2.9% economic growth for 2018. The healthy economy in 2018 resulted in a very strong freight market for the year. “The robust first-quarter pace of 2019 economic growth is expected to be temporary, as it was driven by two sources of strength that could easily reverse later this year: inventory investment and net exports. Both components are volatile and rarely indicative of underlying momentum in the economy. “Real 2019 GDP growth is expected to moderate beginning in the second quarter, and we look for a 2.7% increase for calendar year 2019. We predict annual real GDP growth will slow further to 2.1% in 2020 and 1.8% in 2021, with implications for slower growth in freight transportation demand. “Freight Forecast clearly lays out why meeting challenges like infrastructure and workforce development are so critical to our industry’s success,” said ATA President and CEO Chris Spear. “It belongs on the desk of every decision maker in our industry and in the supply chain.”

ATA Truck Tonnage Index surges 6.6% in July, 7.3% higher than July 2018

ARLINGTON, Va. — American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index increased 6.6% in July after falling 1.2% in June. In July, the index equaled 122.7 (2015=100) compared with 115.1 in June. “Tonnage in 2019 has been on a rollercoaster ride, plagued with large monthly swings, which continued in July as tonnage surged after falling significantly in May and June,” said ATA Chief Economist Bob Costello. “However, take out the month-to-month noise, and you see that truck tonnage is still on a nice upward path. It is important to note that ATA’s tonnage data is dominated by contract freight, which is performing significantly better than the plunge in spot market freight this year.” June’s reading was revised down compared with our July press release. Compared with July 2018, the SA index surged 7.3%, the largest year-over-year gain since April. The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 122.8 in July, 4.5% above June level (117.5). 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.

Average price of gallon of diesel drops below $3 for first time since February

WASHINGTON — The average on-highway price of a gallon of diesel declined 1.7 cents a gallon to $2.994 for the week ending August 19, according to the Energy Information Administration of the Department of Energy. It marked the first time since the week ending February 11, 2019, that the price has been below $3, and it marked the sixth consecutive week of a decline. All regions of the country showed a drop led by a 2.5 cent a gallon decline in the New England states (Maine, Vermont, New Hampshire, Massachusetts, Connecticut and Rhode Island) and a 2.4 cent a gallon drop in the Midwest states (North Dakota, South Dakota, Nebraska, Kansas, Oklahoma, Missouri, Iowa, Minnesota, Wisconsin, Illinois, Tennessee, Kentucky, Indiana, Ohio and Michigan). California declined 2.2 cents a gallon. The price for the week ending August 19 was 21.3 cents a gallon for the comparable week in 2018. For a complete list of prices by region for the past three weeks, click here. For a list of the states by region, click here. https://www.eia.gov/petroleum/gasdiesel/diesel_map.php

July trailer sales up slightly, but below last year; used Class 8 sales fall again

The nation’s two organizations that track and analyze data about the commercial motor vehicle market both note that trailer orders were up in July as compared to June but were still far below when compared with the same month last year. One of the two organizations reported used Class 8 sales fell for the fourth consecutive month. ACT Research said preliminary estimate for July 2019 net trailer orders is 9,900 units. Final volume will be available later this month. This preliminary market estimate should be within +/- 3% of the final order tally. FTR reported preliminary trailer orders for July at 9,000 units, up 61% from dismal June numbers but 68% below July 2018. FTR said trailer orders continue to show weakness during the summer months after experiencing a record run in the second half of last year, noting that van fleets already have their orders in for 2019 and have not started ordering yet for 2020. Although currently, production remains robust at near-record levels, some easing of build rates is expected as backlogs fall significantly to where they were at the start of 2018, FTR said. Trailer orders for the past 12 months now total 324,000 units. “While net trailer order volume improved significantly from June’s dramatically disappointing results, the industry’s year-over-year performance continued to be extremely weak. While net orders jumped 65% versus an amazingly weak June, they were 66%  below this point last year, a tough comparison to the first month of the record-setting order run-up of last summer and fall,” said Frank Maly, ACT’s director of CV transportation analysis and research. “While some fleets made investment commitments in response to the opening of some 2020 order boards, their overall response was lackluster. A few months ago, there was strong interest to push commitments into next year, but uncertainty over the economy, freight volumes, and capacity has now caused many fleets to move to the sidelines as they re-assess their true needs for either replacement of older equipment or additions to fleet capacity next year.” On a positive note, Maly said the cancellation pressures of recent months appeared to ease a bit in July. However, any cancels are likely impacting fourth quarter production slots, so there is still some churn in order board occurring before year-end. “That results in a fairly soft foundation for early next year. Also worth noting is that production continued at a solid pace in July, although OEMs definitely slid back from June’s frantic pace,” he said. Don Ake, FTR vice president of commercial vehicles, said trailer orders should stay subdued in August but start to revive in September, as fleets determine their needs for next year. The environment remains uncertain, with freight growth slowing and the tariff situation in flux. “The July order volumes continue to demonstrate a possible return to normalcy in the equipment markets. The low total is representative of a typical slow summer order month, and is very close to the July 2016 number,” he said. As for the used truck market, Steve Tam, ACT’s vice president of research, said preliminary used truck sales fell 2% month-over-month, the fourth consecutive sequential drop. Other data released in ACT’s preliminary report included sequential comparisons for July 2019, which showed that average prices fell 4%, while average miles climbed 2%, and average age was up 4%. “Used truck prices are the hottest topic in the industry right now,” Tam said. “Many dealers are experiencing significant softening in prices, but the erosion is not uniform. Depending on a host of factors, experiences vary and a few factors that impact prices include customer, equipment specifications, location, and vehicle condition.” ACT’s Classes 3-8 Used Truck Report provides data on the average selling price, miles, and age based on a sample of industry data. In addition, the report provides the average selling price for top-selling Class 8 models for each of the major truck OEMs – Freightliner (Daimler); Kenworth and Peterbilt (Paccar); International (Navistar); and Volvo and Mack (Volvo).

ACT Research: Key risk to CV market forecasts is China trade wars

COLUMBUS, Ind. — According to ACT Research’s (ACT) latest release of the North American Commercial Vehicle OUTLOOK, the key risk to all commercial vehicle market forecasts remains the on-again trade war with China. “This month’s chart, the U.S. dollar to Chinese yuan (RMB) illustrates why trade wars are neither good, nor easy to win,” said Kenny Vieth, ACT’s president and senior analyst. “As can be seen, after the U.S. fired the latest salvo in the trade war on August 1, the Chinese responded with in-kind tariffs and a 3% currency devaluation — so far. Since the first ‘shots’ of the trade war were fired on March 1, 2018, the RMB has fallen 12% versus the U.S. dollar. “So, tariffs imposed by the U.S. have been met with in-kind tariffs from China, and the Chinese government has allowed the yuan to devalue, thereby offsetting the U.S. tariff impact, while simultaneously making US goods even more expensive in China.” Vieth said the bigger risk, especially to emerging economies is that in order to compete with China, they will have to devalue their currencies, making US goods more expensive in more countries and raising the risk of a deeper global downturn. ACT Research is a publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasting services for the North American 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. More information can be found at www.actresearch.net.

ACT Research: Heavy duty markets at the edge of the precipice

COLUMBUS, Ind.  – According to ACT Research’s latest release of the North American Commercial Vehicle OUTLOOK, current data and anecdotes make a strong case that the heavy-duty vehicle markets are at the edge of the precipice. “Since the start of this demand up-cycle in late 2017, we have targeted this year’s third quarter as the point at which the industry was likely to see production rollover,” said Kenny Vieth, ACT’s president and senior analyst. “That targeting was largely derived from historical precedent, with historical peak-level build lasting between 13 and 15 months. For the current cycle, we date peak build rates to June 2018, so August represents the 15th month of peak-level production.” Regarding heavy vehicle demand, Vieth said, “At the heart of our cycle duration prediction, carrier profitability and production peaks always lag the freight cycle, so capacity building always accelerates relative to freight growth at exactly the wrong time, every time. “Large new inventories and deteriorating freight and rate conditions suggest erring on the side of caution remains the right call, and we are warning those in the industry to be prepared for down weeks starting as early as fourth quarter.” ACT Research is a publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasting services for the North American 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. More information can be found at www.actresearch.net.          

FTR’s June Trucking Conditions Index up slightly but still negative

BLOOMINGTON, Ind. — FTR’s revised Trucking Conditions Index (TCI) showed a significant improvement in June but remained in slightly negative territory at a reading of -0.82, according to FTR. Strengthening freight demand and lower diesel prices were offset by weak truckload rates and easing capacity utilization plus some higher financing costs that negatively affected carriers during the month. FTR’s forecast for the TCI is for it to remain in low single-digit negative range into 2020, but some positive readings are possible during 2019. Details of the revised TCI for June are found in the August issue of FTR’s Trucking Update, published July 31. The ‘Notes by the Dashboard Light’ section in the current issue explains how FTR’s July 2019 Freight•cast model update affects key FTR metrics on the trucking industry, including the TCI. Along with the TCI and ‘Notes by the Dashboard Light,’ the Trucking Update includes data and analysis on load volumes, the capacity environment, rates, costs and the truck driver situation. “Although rates remain weak for carriers, they appear at least to be stabilizing,” said  Avery Vise, vice president of trucking. “Meanwhile, freight demand appears firmer in recent weeks than in early spring, but the outlook is far from rosy given a softening industrial sector. Our biggest near-term concern, however, is the potential impact of the trade war with China on consumer spending and business investment.” The TCI tracks the changes representing five major conditions in the U.S. truck market. These conditions are freight volumes, freight rates, fleet capacity, fuel price, and financing. The individual metrics are combined into a single index indicating the industry’s overall health. A positive score represents good, optimistic conditions. Conversely, a negative score represents bad, pessimistic conditions. Readings near zero are consistent with a neutral operating environment, and double-digit readings (up or down) suggest significant operating changes are likely. As noted, FTR in July completed a major update of its Freight•cast model, including both updated data and enhancements to the methodology. FTR traditionally has treated the TCI as a contemporaneous assessment of overall conditions at a point in time, so we have made very few changes to historical TCI readings. However, given the noticeably different freight volume and utilization metrics following the model update – especially during 2014 through today – we have restated the TCI back to January 2014. The historical revisions also reflect a more robust measure of market rates that FTR adopted in the spring of 2018. Directionally, the old and new TCI are largely correlated since mid-2016, but the updated TCI shows peak conditions occurring earlier in 2018 than the prior metric. Moreover, that peak range was not as strong and was shorter than previously indicated.                            

MVT Solutions offers no cost fuel efficiency reports

LAS CRUCES, N.M. — MVT Solutions, a provider of fuel economy testing and design and development services for the trucking industry, Thursday said that the test reports for its Certified Products are now available on a no-cost subscription basis. “Receiving MVTS Certification is a mark of fuel efficiency excellence for a product and we feel strongly that the industry should have that information and the supporting test data in a timely manner and at no cost,” said Daryl Bear, lead engineer & COO at MVT Solutions. “In addition, the suppliers of the certified products have confidence that their results are being delivered by a trusted source to companies that are interested in their technologies.” While MVT Solutions Certified Products’ Test Reports with the detailed test data on the latest fuel efficiency solutions for transportation companies are posted on the company’s website, the new subscription service ensures results are delivered automatically as soon as they are available giving fleets the ability to have the most up-to-date information, Bear said, adding that fleets currently relying on MVTS results include Hirschbach Motor Lines, Penske Truck Leasing, Nussbaum Transportation, Mesilla Valley Transportation, C.R. England and Charger Logistics. Certified fuel economy testing by MVT Solutions was developed from race car engineering and advanced vehicle test methods using sensors and recording systems that collect data on fuel consumption, aerodynamics, rolling resistance, driver behavior and other variables that affect fuel consumption. The data is analyzed using proprietary methods. Subscribing can be done via the MVT Solutions website or by following the company on LinkedIn. MVT Solutions test reports for custom and developmental testing done for fleets or suppliers are released only with the permission of the company and are not part of the subscription service.      

Don Daseke to retire as CEO and chairman of Daseke Inc.

ADDISON, Texas — Don Daseke will retire from his roles as chief executive officer and chairman of the board of Daseke Inc., effective immediately, the company said Thursday. He will continue as a member of the board of directors with the title of chairman emeritus. Daseke is the largest flatbed, specialized transportation and logistics solution company in North America, the company said in a news release announcing Daseke’s retirement. Daseke’s board has appointed Chris Easter, currently chief operating officer as interim chief executive officer. Daseke will work with Easter in an advisory capacity to help ensure a smooth transition while the board conducts a search for a permanent CEO. The company also said the board has appointed Brian Bonner as executive chairman. Within the fleets of Daseke companies there are approximately 6,000 tractors and 13,000 flatbed and specialized trailers, and a million-plus square feet of industrial warehousing space. Smokey Point Distributing, E.W. Wylie, J. Grady Randolph, Central Oregon Truck Company, Lone Star Transportation, Bulldog Hiway Express, Hornady Transportation, The Schilli Companies, Big Freight Systems, The Steelman Companies, The Roadmaster Group, TSH & Co., Moore Freight Service, Inc., Aveda Transportation and Energy Services, Builders Transportation and The Boyd Companies — including Boyd Bros. Transportation and WTI Transport — are the operating companies of Daseke Inc. “I am incredibly proud of what we have built over the last decade,” Daseke said. “Daseke remains a truly unique company, with a platform designed to support future growth on both the top- and bottom-lines.  I am leaving the company in the hands of a very strong and deep leadership team across the organization.  Investing in people has always been my guiding principle and we have invested in this team, which makes me very confident that they will help Daseke achieve its full potential.” Easter has been Daseke’s chief operating officer since January 2019. His background includes more than 30 years of operational leadership serving in key transportation and logistics roles with the United States Army, Walmart and Schneider National. For the past six years, he served as CEO of Keen Transport, a specialized transportation, warehouse and logistics company focused on serving the industrial equipment market.  During more than a decade with Walmart, he was responsible for overseeing the transportation of goods from around the world. “We have an industry leading specialized and flatbed platform that is truly unique in the transportation industry,” Easter said. “I’m grateful to Don for his vision and leadership in building that platform. I am fully committed to this role as we pivot our strategy towards long-term operational excellence.” Bonner has served as a member of the board of directors of Daseke since February 2015. He served as vice president and chief information officer of Texas Instruments, a publicly traded company, from January 2000 to May 2014. In that role, Bonner managed the business and technology aspects of IT operations and was a member of the company’s Strategy Leadership Team.  Over a 33-year career at Texas Instruments Mr. Bonner held a broad range of executive positions in business line management, global marketing, sales and new product development.      

Truckload van freight volume falls 3%, rates slip lower

PORTLAND, Ore. — Spot truckload freight volume increased 1.2% during the week ending August 11, with the availability of spot reefer and flatbed freight making up for a decline in van loads, said DAT Solutions, which operates the industry’s largest network of load boards. Nationally, the number of available trucks increased 3.7% compared to the previous week. Average spot rates in August remain below July averages. National average spot rates through Sunday, August 11, include: Van: $1.81 per mile, 3 cents lower than the July average Flatbed: $2.28 per mile, 5 cents lower than July Reefer: $2.14 per mile, 5 cents lower than July Van trends Van volume slipped 3% last week, and 57 of DAT’s top 100 van lanes by volume had lower rates. Among the few positive markets was Buffalo, where van freight volume increased 3% compared to the previous week and the average outbound rate rose 7 cents to $2.08 per mile. Otherwise, spot van volumes have been sliding over the past four weeks, especially in large Southeastern freight hubs: Atlanta, down 8% over four weeks Charlotte, North Carolina down 5% Memphis, Tennessee, down 7% Houston, down 5% The national average van load-to-truck ratio dropped from 2.2 to 2.1. That’s nearly a full point lower than the August 2018 average. Reefer trends Demand for reefer trucks trailed off in California and Texas last week, and the majority of high-traffic reefer lanes paid lower last week. There were early signs of activity shifting northward, as significantly higher volumes from Denver (up 34%) and Grand Rapids, Michigan, (up 71%) helped elevate the national average reefer load-to-truck ratio from 4.2 to 4.3. While apple harvests won’t kick in strongly until the end of August, demand for trucks sent rates higher on key Midwestern lanes: Grand Rapids, Michigan, to Cleveland surged 62 cents to $3.71 per mile Grand Rapids, Michigam, to Atlanta added 31 cents to $2.59 per mile Chicago to Atlanta rose 20 cents to $2.77 per mile Chicago to Philadelphia was up 16 cents to $3.03 per mile Chicago to Denver increased 13 cents to $2.40 per mile Key takeaways Fewer reefer loads out of California meant truckload capacity was more available elsewhere. Reefer load volume out of Los Angeles fell 10% last week, Sacramento, California, was down 5%, and Ontario declined 3%. The national average spot van rate is 20% lower year over year, when the average rate was $2.31 per mile. There’s still uncertainty over how shippers will react to shifting tariff deadlines on Chinese imports. So far in August, spot van volumes indicate a lack of urgency to move goods ahead of the Sept. 1 deadline for additional taxes to take effect. DAT Trendlines is a weekly snapshot of month-to-date national average rates 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 $65 billion in annualized freight payments. DAT load boards average 1.2 million load searches per business day. For the latest spot market loads and rate information, visit dat.com/trendlines and follow @LoadBoards on Twitter.    

Class 8 truck sales climb 7.1% in July compared with June

The analysts keeping saying the industry is going to see a downturn in Class 8 truck sales this year, but a review of July’s activity indicate it (1) isn’t going to happen or (2) in still a way down the highway. According to Wards Intelligence, July sales totaled 25,164, a 7.1% increase over June sales of 23,500 and 21.9 percent over June 2018 sales of 20,649. It’s also interesting to note that July 2018 sales were down 3.3% from June 2018. All OEMs except Mack Truck showed an increase in July 2019 over June 2019 with Volvo leading the way with a 19,.9% gain on sales of 2,486 compared with 2,073 in June. Volvo was the only nameplate with at least a double digit increase. International posted the largest increase over the same month last year with sales of 3,713 in July 2019 compared with 2,701 in July 2018, a 37.5% increase. International also has the biggest increase to date in 2019 compared with 2018. Sales thus far in 2019 were 23,333 compared with 16,996 the first six months of 2018 for an increase of 36.7 percent.    

Truckload spot rates slip seasonally, but uncertainty looms

PORTLAND, Ore. — Shipments of dry van freight, the most common type of truckload shipment, rose 6.8 percent in July compared to June, according to the DAT Truckload Volume Index, which reflects the change in the actual number of spot market loads moved each month. The national average van rate declined from June to July, however, a seasonal trend, said Peggy Dorf, Market Analyst with DAT Solutions, which operates the largest electronic marketplace for spot truckload freight. “July often marks the beginning of a downward turn for truckload rates,” Dorf explained. “That has less to do with volume than the fact that, after the close of Q2 and the end of the Fourth of July holiday, shippers feel less urgency to get deliveries made by a specific date.” While those trends may have been predictable, the announcement of new tariffs on Chinese imports beginning Sept. 1 could disrupt typical late-summer freight patterns. “There was an uptick in activity at the end of July, and that could carry over into August,” said Dorf. “Shippers may rush to move imports ahead of the new tariffs, which could disrupt what would normally be the summer doldrums for pricing.” The national average van rate in July was $1.84 per mile, which includes fuel surcharges. While that was a 5-cent decline from the June average, it was otherwise the highest monthly average for vans since March. Year over year, the national average rate was 43 cents lower than the historic highs set in July 2018, even though volume this July was up 13 percent compared to last year. Harsh weather curtailed and/or delayed many produce harvests this year. That disrupted refrigerated (“reefer”) shipments, but improved yields out of California contributed to an 8.7 percent increase in reefer volume from June to July. Reefer rates averaged $2.19 per mile nationally, a 6-cent drop from June but otherwise the highest monthly average since February. The July 2019 average was down 41 cents from July 2018, even though volume increased 12 percent compared to last year. Flatbed volume also rose in July, up 6.6 percent month over month, although the national average flatbed rate fell to $2.27 per mile, 3 cents below the June rate and 50 cents below the sky-high average of July 2018. Compared to last year, flatbed volume was up 18 percent. “Truckload pricing followed normal seasonal patterns in July, despite uncertainty in some segments of the economy,” said Dorf. “Moving forward, the new tariffs are a wild card, on top of the potential risks to supply chain operations during hurricane season.”  

ACT Research says forecast of freight downturn persists

COLUMBUS, Ind. —  ACT Research has released the August installment of the ACT Freight Forecast, U.S. Rate and Volume OUTLOOK report covering the truckload, intermodal, LTL and last mile sectors. ACT Research maintained its view that truckload and intermodal contract rates will fall this year, because of overcapacity and weak freight demand. “There seems to be a misperception that a capacity correction is under way in trucking,” said Tim Denoyer, ACT Research’s vice president and senior analyst. “Although truck order intake is down, capacity additions will continue at least through year-end. We estimate the active tractor fleet will grow 2.5% in the second half of 2019.” Denoyer said truck production remains near record levels, and though backlogs are dwindling quickly, elevated retail sales are set to continue for several months. “Low Class 8 net orders bode well for an eventual upturn in the truckload spot market, but continuing capital discipline and ongoing economic growth, supporting a recovery in freight in 2020, are necessary conditions. Recent trade policy developments have increased the risk of a broad recession. “The Truckload Rate Gauge remains in a significant excess capacity position, favoring shippers. But based on our expectation for a decline in U.S. Class 8 tractor build rates later in the year, the supply side should begin to bring it a little more into balance,” he said. The Truckload Rate Gauge is ACT’s measure of industry supply/demand, balancing changes in the number of active trucks and the amount of available freight. The current gauge gives a good directional feel for spot today and contract in about six months, and the Six-Months-Out Gauge tells us about spot in six months and contract in about a year,” Denoyer said. The ACT Freight Forecast provides quarterly forecasts for the direction of volumes and contract rates through 2020 and annual forecasts through 2021 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. ACT Research is a publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasting services for the North American and China markets. More information can be found at www.actresearch.net.                  

Daimler names Paul Romanaggi chief of new customer experience program

PORTLAND, Ore. —  As a critical component of Daimler Trucks North America’s ongoing commitment to a complete customer experience (CX) transformation, it has created an entirely new CX organization and named Paul Romanaggi as Chief CX Officer. “It is not enough to offer the best commercial vehicles available,” said Roger Nielsen, president and CEO of DTNA. “We are fully embedding a focus on customer culture into the DTNA organization. I believe strongly in changing the customer experience and I will continue to prioritize from the top-down. Paul’s leadership and team will be integral to driving this transformation.” DTNA launched its CX transformation in 2017 with the creation of a Customer Experience Day. During the now annual event, employees and customers from across North America are brought together to collaboratively brainstorm solutions to fully embed customer experience into the DTNA organization and culture.  As a result of the sessions, new channels for customer engagement have been established and DTNA has developed a new metrics suite focused on the processes that are directly linked to customer satisfaction. The new CX organization will lead future transformative efforts across the DTNA business, including Freightliner, Western Star and Detroit Diesel for new truck sales, used truck acquisitions, and aftermarket service. The group aligns multiple departments, including aftermarket Fleet Service, Warranty, Call Centers, Aftermarket Service Products, and Service Systems to provide an unprecedented level of streamlined customer communication and support. Romanaggi is a 34-year veteran of the company, who brings industry expertise, leadership and experience from having served in numerous customer advocacy senior management roles, including parts, service, warranty, quality, production supply chain, logistics, PDI centers and new product launch/changeover. Romanaggi’s appointment is effective immediately and he will report directly to Stefan Kurschner, senior vice president of aftermarket for DTNA. “It’s our priority to transform the organization, whose focus has primarily been operational-excellence, to one that is equally as focused on customer service-excellence,” Kurschner said. “Everyone at DTNA is passionate about our customers and has the full support of the organization to take personal ownership of the customer experience.”            

Schneider bulk launches electronic driver report form

GREEN BAY, Wis. — Schneider, a premier provider of truckload, intermodal and logistics services, launched an electronic Driver Report Form (eDRF) in its Bulk division. Technology plays a large and critical role in the transportation and logistics industry, and Schneider continues to launch tools on its technology platform to improve the driver and customer experience, according to Mike Degeneffe, vice president of technology solution delivery at Schneider. This new tool dramatically improves what had been a tedious and time-consuming experience for both drivers and shippers in the liquid commodity bulk transportation segment, he said. The eDRF, which is required at most pick-ups and deliveries, includes many time-saving advantages over the previous paper report. Pre-populated fields created at order creation improve the accuracy of the report, and the electronic version is available on the Schneider portal seconds after a driver submits the completed form from their tablet. Schneider drivers no longer spend valuable time traveling to a facility or truck stop to transmit the paperwork and can use those driving hours more efficiently to move customers’ freight. “We are chartered to leverage technology to create the best driver experience possible,” Degeneffe said. “This is a preview of other upcoming driver paperwork processes that have been digitized since we began assigning tablets to drivers in 2018. Our continued investment in technology innovation is directed to eliminate non-driving administrative tasks to help drivers maximize their driving potential and improve their experience away from home.” Schneider has been an early adopter of many technology developments. Most recently, the company began rolling out Samsung Galaxy tablet devices to its drivers to make their lives easier both in and out of the truck. Like the eDRF, Schneider’s tablets lay the foundation for future capabilities. As technology evolves, Schneider can quickly accommodate additions and changes to the suite of new system tools. In addition to accessing the eDRF, Schneider drivers are already utilizing other improvements since use of tablets have begun: Track work Get customer information Complete training without a facility stop Look up bonus info Weather and road conditions Turn-by-turn GPS directions Read news, messages, videos and more “We have upgraded the in-cab communication system and provided new capabilities outside of the truck for drivers,” said Mark Rourke, president and chief executive officer at Schneider. “We’ve listened and heard from drivers on how tablets are making their lives easier. Putting technology in the palm of a driver’s hand is one of many ways we’re enhancing their experience.” To learn more, visit Schneider.com.   S  

Freight environment weak but still growing slightly, FTR says

BLOOMINGTON, Ind. — Although initial Gross Domestic Product (GDP) figures for the second quarter of 2019 show economic growth at 2.1%, the components of GDP linked to demand for and transportation of goods was far weaker, according to an analysis by FTR Transportation Intelligence. FTR estimates that the GDP Goods Transport Sector rose at a seasonally adjusted annual rate (SAAR) of just 0.5% in second quarter 2019 from the first quarter of the year. To put this into context, the GDP Good Transport Sector grew 3.2% in 2018 and 5.7% in 2017. “It’s a slow growth environment now, but it feels worse than that because the freight markets were so extraordinarily hot in 2018,” said Eric Starks, FTR’s chairman and CEO. “However, while freight volumes are holding up as of now, most of the risks seem to be on the downside, especially with tariffs and the overall trade climate. We’re getting mixed signals on manufacturing at the same time that construction is weak. Consumer spending remains strong, although we’re finally starting to see a slight deceleration in job growth. Also, Midwest flooding earlier this year likely will hurt grain volumes. After a couple of years of constant pressure on the transportation system we’re just in a more volatile and dynamic environment that requires shippers, carriers and intermediaries to be especially vigilant.” GDP figures released by the Bureau of Economic Analysis (BEA) include economic activity in both goods and services. Also, while exports naturally count positively in the government’s GDP calculation, imports are counted negatively. For example, the surge in imports of Chinese goods in anticipation of a January 1, 2019, tariff increase was a significant reason why GDP in 2018Q4 was just 1.1%. This accounting is logical for the entire U.S. economy, but the transportation sector obviously benefits from import activity as well as exports. Although GDP for the Goods Transport Sector was not strong in the fourth quarter of last year, it did outpace overall GDP, rising 1.8%. Data for the second quarter did bring some encouraging news for the freight demand outlook. It may seem counter-intuitive, but the inventory decline seen during Q2 has potential benefits down the road. Inventories count positively in the GDP calculation, but they tend to depress future freight volumes. When we exclude the impact of inventories, GDP for the Goods Transport Sector in 2019Q2 rose at an SAAR of 2.0% over the first quarter, significantly better than the overall results indicate. Growth of 2% in GDP for the Goods Transport Sector is typically seen as the minimum level needed to keep the freight markets stable.