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Freight moved among U.S., Canada, Mexico down in April from March

WASHINGTON — Total freight transported between the United States, Mexico and Canada totaled $104.5 billion in April, according to the Department of Transportation’s Bureau of Transportation Statistics. The figure represents an increase of 1.8% compared to April 2018, but a 2.5% decrease from March 2019 when $107.2 billion was moved among the countries. The most used mode of transportation was trucking, which moved $65.1 billion of freight, down 1% compared to April 2018 and down 3.4% from the $67.4 billion moved in March 2019. The second most used mode was rail, which moved $15.6 billion of freight, up 6.3% compared to April 2018, but down .04% from March 2019’s $16.2 billion of rail freight.. Trucks moved 62.3% of all transborder freight, broken down as follows: U.S.-Canada: $28.8 billion (55.5% of all northern border freight) U.S.-Mexico: $36.3 billion (68.9% of all southern border freight) Trucks moved $67.4 billion in March 2019. Compared to April 2018, U.S.-Canada freight was down 3.3%, U.S.-Mexico freight was up 1%. The three busiest truck border ports (43.3% of total transborder truck freight) included Laredo, Texas ($15.3 billion), Detroit ($8.6 billion) and El Paso, Texas ($5.3 billion). The top three truck commodities (48.9% of total transborder truck freight) included: Computers and parts, $13.6 billion Motor vehicles and parts, $9.9 billion Electrical machinery, $9.5 billion Those three categories also were the top three categories in March 2019.      

Dwight Bassett named president of Boyd Companies

CLAYTON, Ala. — Dwight Bassett has been named president of the Boyd Companies. Prior to this role, Bassett served as the  chief operations officer and chief financial officer for the Boyd Companies. Bassett has an extensive background as a leader in the trucking industry. Before joining the Boyd Companies, he served as the chief operations officer for Builder’s Transportation. In this role, he helped redesign the company’s information system which greatly improved productivity and accountability. Prior to Builder’s, Bassett worked for M.S. Carriers for 16 years. During his tenure, he held various roles within the organization such as dispatcher, controller, vice president of operations, and chief accounting officer. Under his leadership, the company’s fleet grew tremendously from 300 trucks to 4,000 trucks. “It is an honor to be named the president of the Boyd Companies,” Bassett said. “The people at Boyd make the difference. There is a mutual respect and admiration among all of us that is not easily replicated.” Chris Cooper, CEO of the Boyd Companies, said, “Dwight’s leadership will be important to the Boyd Companies and the Daseke organization moving forward. Dwight has a unique, intuitive and tactical mind for transportation and logistics. This has been shown in his leadership over the past six years as CFO and COO of the Boyd Companies.” The Boyd Companies include Boyd Bros. Transportation, WTI Transport, Mid Seven Transportation and Boyd Logistics. The Boyd Companies is part of Daseke Inc., the largest flatbed and specialized transportation and logistics company in North America. Boyd Bros. Transportation is the largest carrier in the Boyd Companies and is a flatbed truckload carrier that operates throughout the eastern two-thirds of the United States, hauling primarily steel products and building materials. For more information about Boyd Companies or career opportunities at Boyd Bros. Transportation, visit www.driveforboyd.com or call 888-485-8717.

Trailer orders down in May; June seen as pivotal month

The two companies that collect, analyze and publish data pertaining to the commercial vehicle market reported what might be called a significant decline in trailer orders for May. FTR reported preliminary orders for 11,700 units, the lowest total since May 2016. ACT Research reported preliminary new U.S. trailer orders of 15,500, down 16% month-over-month, but after accounting for cancellations, said net orders slid to 10.5k units, down 28% from April. FTR said orders for 2019 production have basically come to a halt, as most build slots for the year are already filled.  Trailer builds were hefty for the third straight month and should remain elevated in the short-term. However, production numbers in the second half will likely moderate due to expected slower economic and freight growth. The flatbed segment is already showing signs of weakening due to easing in manufacturing and industrial activity.  Trailers orders for the past 12 months now total 356,000 units. “Orders should rise in June as OEMs begin taking orders for 2020,” said Don Ake, FTR vice president of commercial vehicles. “June orders will be a good indication of how the larger fleets view the freight market for next year.  Carriers may be cautious as long as the tariff situation is disrupting freight flows and creating significant business uncertainty.” ACT Research said year-to-date, net orders are 40% below last year, according to this month’s issue of ACT Research’s State of the Industry: U.S. Trailer Report. Near-record backlogs have filled 2019 build slots for many OEMs, and there continues to be resistance toward booking orders into next year, resulting in the order volume contraction. “We’re now running into very difficult year-over-year comparisons, as OEMs are generally unwilling to accept orders for 2020,” said Frank Maly, director–CV Transportation analysis and research. “We hear that some OEMs may open their 2020 orderboards in June; if so, expect better comparisons in the months ahead. “However, given market pressures of strong capacity growth in the face of a slowing economy and tariff uncertainties, the anticipated order surge may not be as robust as many may assume.”                

Average price of gallon of diesel down 2.7 cents to $3.043

WASHINGTON —  The average on-highway price of a gallon of diesel dropped 2.7 cents a gallon to $3.043 for the week ending June 24, according to the Energy Information Administration of the Department of Energy. Since the week ending May 27, the price has dropped 12 cents a gallon. All regions of the country declined, led by a 4.2 cents a gallon drop in the Rocky Mountain states (Colorado, Utah, Wyoming, Idaho and Montana) and a 3.8 cents a gallon decline in California, where the average price is still the highest in the country at $3.968 a gallon. The lowest average price is in the Gulf Coast states (New Mexico, Texas, Arkansas, Louisiana, Mississippi and Alabama). For a complete list of prices by region for the past three weeks, click here.

Barr-Nunn creates new solo fleets, increased pay

GRANGER, Iowa — Barr-Nunn Transportation has created new solo fleets and increased pay. For drivers living in the northeastern United States, Ohio and some of Indiana and Kentucky there are now two options for home time. Drivers can be home every weekend for two days and earn a maximum starting pay of 60 cents per practical mile or drivers can be home every other weekend for three days and earn a maximum starting pay of 61 cents per practical mile. Barr-Nunn Transportation also offers an over-the road North fleet for those drivers living in West Virginia, Detroit, along with parts of Indiana, Wisconsin, and Iowa.  These drivers are home every 18 days for four full days and can earn a top starting rate of 62 cents per practical mile to start. In addition to these starting rates all company drivers receive CSA safety bonuses of $725 or $550 every 90 days plus PTO (vacation) along with the money.  Over-the-road company drivers can earn over two weeks of PTO (vacation) in their first year with Barr-Nunn and they start receiving this PTO after 30 days. Blue Cross Blue Shield Insurance, 401(k) matching program, extra pay per mile on shorter hauls and paid life insurance are added benefits at Barr-Nunn. For more information about Barr-Nunn Transportation visit their website at www.barrnunntruckingjobs.com or call 888-999-7576.

FTR’s Shippers Conditions Index took step back in April

BLOOMINGTON, Ind. — FTR’s April Shippers Conditions Index (SCI) took a step back in April to a reading of 1.9, close to a full point below March. The April SCI measure was negatively affected by stronger rail rates and higher fuel prices outweighing improved shipper conditions related to trucking. The outlook shows strong shipper conditions through 2019 as the rate environment is expected to become more favorable.  Key factors to watch include fuel prices, truck utilization, and rail service. “Shippers should continue to expect favorable conditions and an ability to easily get freight placed in the market,” said Todd Tranausky, vice president of rail and intermodal at FTR. “They will be aided by the relatively stable fuel prices through most of the rest of 2019 and somewhat slowing rail freight volumes.” 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. For more information about the work of FTR, visit www.FTRintel.com, follow us on Twitter @ftrintel, or call (888) 988-1699, ext. 1.    

ACT Research Trucking Index shows nearly across-the-board declines

COLUMBUS, Ind. — The latest release of ACT’s For-Hire Trucking Index showed nearly across-the-board declines, with capacity being the lone exception. The Pricing Index fell considerably to 38.8, in May on a seasonally adjusted (SA) basis, the lowest in survey history, from 45.4 in April. The Volume Index dropped further into negative territory hitting 46.7 (SA), from 49.5 in April. Fleet productivity/utilization slipped to 46.0 in May on a seasonally adjusted basis down from 49.4 in April, and capacity growth increased to 54.6, from April’s 54.3 reading. “May’s Pricing Index was the fourth consecutive negative number after 30 straight months of expansion. This confirms our expectation that the annual bid season is not going well for truckers,” said Tim Denoyer, ACT Research’s vice president and senior analyst. “We continue to believe rates are under pressure from weak freight volumes and strong capacity growth.” Volume in May fell for the sixth time in the past seven months, Denover said. “The softness coincides with several other recent freight metrics, with the drop likely due in part to rapid growth of private fleets and the slowdown in the industrial sector of the economy,” he said. “The supply-demand balance reading loosened to 42.1, from 45.3 in April. The past seven consecutive readings have shown a deterioration in the supply-demand balance, with May the largest yet.” 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 12 months. ACT is a publisher of new and used commercial vehicle (CV) industry data, market analysis and forecasting services for the North American market, as well as the U.S. tractor-trailer market and the China CV market. ACT’s CV services are used by all major North American truck and trailer manufacturers and their suppliers, major trucking and logistics firms, as well as the banking and investment community in North America, Europe, and China.    

Despite near-record highs, Class 8 market shows signs of decline

COLUMBUS, Ind. — According to ACT Research’s recently released Transportation Digest, Class 8 retail sales and build are starting the summer at near-record high levels, but evidence supporting a change in direction continues to accumulate. At the same time, the medium duty market was a study of contrasts in April, even as new trailer orders fell to a nearly two-year low. The report, which combines ACT’s proprietary data analysis across a wide variety of industry sources to paint a comprehensive picture of trends in transportation and commercial vehicle markets, also suggests that the U.S. economy will decelerate from the 2018 tax-cut-boosted vigorous growth of 2.9% to a real GDP forecast average of 2.4% this year and slightly below 2% next year. “The key message that has dominated our Class 8 outlook remains unchanged: The heavy-duty market is now at the inflection point we have been anticipating, and signs of decline will become apparent as we move through 2019’s second half,” said Kenny Vieth, ACT’s president and senior analyst. “Regarding other commercial vehicle segments, we saw medium duty build and sales falter sequentially in April, though longer-term comparisons remained positive, with orders growing month-over-month, but remaining below build rates in the longer term. Trailer volumes continued to be uninspiring in April, with new orders down 6% sequentially.” 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 says Class 8 cancellations continue on low side

COLUMBUS, Ind. —  According to ACT Research’s latest State of the Industry: Classes 5-8 Report, May’s Class 8 metrics generally aligned with expectations with the lone exception of cancellations, which continued to surprise on the low side. Additional data for the Class 8 market show still-large (but quickly shrinking) backlogs, weak orders, strong build, bigger inventories and good follow-through on sales. “Data continue to tell the same stories we have been reporting. First and foremost, the story remains one of current demand strength: The near-term backlog remains full and strong retail sales highlight good follow-through from previously booked orders,” said Kenny Vieth, ACT Research’s president and senior analyst. “The second story starts with softening freight metrics, pivots on robust build and sales, and ends at the nominal reality of a 78k Class 8 inventory. In a nutshell, freight growth is stagnating, while Class 8 population growth accelerates, planting the seeds for the end of the current up-cycle in demand.” “Medium duty metrics remained in-line with expectations again in May, with most metrics close to their prevailing trends, if displaying some fraying at the edges,” Vieth said. 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.    

UPS asks for exemptions from two parts of new driver training rule

WASHINGTON — United Parcel Service has applied with the Federal Motor Carrier Safety Administration for an exemption from two provisions of the entry-level driver training (ELDT) final rule published in December 2018 — (1) the requirement that a driver training instructor have two years’ experience and have held a CDL for two years as set forth in the definitions of behind-the-wheel (BTW) instructor and theory instructor and (2) the requirement to register each training location for a unique Training Provider Registry (TPR) number. The implementation date of the final rule in February 7, 2020. UPS told the FMCSA that it has a driver training school (DTS) that trains its employees to become driver instructors, describing the DTS as a success because it has trained hundreds of driver instructors, many of whom did not have previous CDL experience. UPS said its DTS instructors have on average 20 years of UPS experience, hold a CDL of the same (or higher) class and with all endorsements necessary to operate a CMV for which training is provided, have completed the DTS program, have maintained their DTS certification through quarterly additional training, and are employed by UPS as supervisors or managers. UPS said the DTS conducts an eight-week program designed to train supervisors and managers in UPS’ long-haul operations to deliver driver training to drivers at their “home” worksites with the curriculum covering all the topics set forth in the new ELDT rule. The UPS instructor trainees are assessed in progress reviews at days five, 10 and 15, and a current DTS instructor monitors the quality of the training and trainee progress. According to UPS, the DTS program produces highly qualified driver instructors. Additionally, all UPS driver instructors are required to be recertified every 90 days to demonstrate the same skill level shown for their original DTS certification. UPS further performs internal quality assessments to validate that instructor skillsets are maintained throughout the organization. In its request for exemption, UPS states that if it must comply with the instructor qualification requirements in the ELDT rule, it would not be able to use 25% of its current certified driver instructors, at minimum. Looking ahead two more years, that number would likely increase to 50% because of its changing workforce. UPS sees an increase in growth through volume demand, as well as an aging workforce that will lead to retiring CDL drivers and certified driver instructors. Without an exemption from the [ELDT] trainer requirements, UPS’s inability to use its current driver instructors will impede substantially its ability to meet the demand for new drivers, the request said. UPS said that the exemption is needed to meet union contractual requirements, as under its collective bargaining agreement with the International Brotherhood of Teamsters (Teamsters), six current UPS employees must be provided with a promotion opportunity for every new hire. As for the requirement to register each training location for a unique TPR number, UPS said training for new drivers takes place in many locations. In each location, instructors who have been trained in the same way pursuant to UPS’ DTS program will use a common FMCSR-compliant curriculum developed at a corporate level. UPS is operating a single training program in multiple locations. UPS said that it needs this exemption because of  the significant administrative burden that would result if it had to register every UPS location at which a new driver could be trained. In addition, having separate TPR numbers for multiple locations offering essentially the same training could create internal confusion for UPS, drivers, and the agency. UPS new driver training may occur at as many as 1,800 separate locations a year. UPS estimates that the cost to register all of these locations would be substantial, and that it would incur additional costs to keep track of the various registrations, file updates, and new driver registrations. UPS offered its “train the trainer” program within its DTS to assure an equivalent level of safety. According to UPS, its DTS produces highly skilled instructors who know how to drive tractor-trailers and how to teach others to operate tractor-trailers in a safe manner. UPS believes that graduates of its DTS training program are better prepared to impart knowledge and skills on new drivers than someone who has had two years of driving experience. The FMCSA is requesting comments on UPS’ request. To submit comment online, go to www.regulations.gov and put the docket number, “FMCSA-2019-0139” in the “Keyword” box, and click “Search.” When the new screen appears, click on “Comment Now!” button and type your comment into the text box in the following screen. Choose whether you are submitting your comment as an individual or on behalf of a third party and then submit. Deadline to submit comments is July 19.

Spot rates, volumes stay firm after International Roadcheck

PORTLAND, Ore. — The number of truck posts on the spot truckload freight market jumped 14% during the week ending June 16, said DAT Solutions, which operates the industry’s largest load board network. The increase is in line with expectations following CVSA’s International Roadcheck, the annual enforcement initiative, which tends to have a dampening effect on available capacity. With the number of load posts down 10% last week, load-to-truck ratios declined for all three equipment types. Still, national average spot rates were above May averages, and van and refrigerated freight volumes were each up nearly 20% compared to the previous week. National average spot rates through June 16 were: Van: $1.90/mile, 11 cents higher than the May average Reefer: $2.26/mile, 11 cents higher Flatbed: $2.32/mile, 4 cents higher Van trends The national average van load-to-truck ratio dipped from 3.8 to 3.0 and rates were lower on 61 of the top 100 van lanes by volume. However, several major van markets including Los Angeles, Dallas, Atlanta, and Chicago were up significantly in terms of available loads. Demand was strong in the Southeast and West. The average outbound van rate from Memphis, Tennessee, was up 8 cents to $2.33/mile, as was Los Angeles at $2.31/mile. Van lanes with gains included: Memphis to Columbus, Ohio, up 24 cents to $2.23/mile Stockton, California., to Portland, Oregon, up 18 cents to $2.86/mile Los Angeles to Seattle, up 15 cents to $2.72/mile Charlotte to Buffalo, up 15 cents to $2.54/mile It’s almost always good news when rates rise in both directions on lanes in the same region of the country, as they did on a handful of van lanes that connect Memphis, Charlotte, North Carolina, and Atlanta. Memphis to Charlotte paid $2.16/mile, up 6 cents, and Charlotte to Memphis paid $1.65, up 3 cents, for a roundtrip average of $1.91/mile. That’s up 9 cents compared to the previous week. Even when rates dropped in one direction, the roundtrips improved over the previous week’s averages. Memphis to Atlanta went for $2.50, up 10 cents, but Atlanta to Memphis paid $1.86/mile, down 3 cents. The roundtrip average was $2.18, up 7 cents compared to the previous week. Reefer trends While the national average reefer load-to-truck ratio dropped from 6.4 to 4.5, volumes increased out of both California and Texas, signs that produce season is on. Average outbound reefer rates were higher in Sacramento, California ($2.76/mile), Ontario, California, ($2.80/mile), and Fresno, California ($2.46/mile) — three of the top four California markets (Los Angeles fell 2 cents to $2.93/mile). Freight volumes were up more than 40% out of Nogales, Arizona, on the Mexico border. The largest reefer lane-rate increase was Nogales to Dallas, up 49 cents to $3.36/mile. 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 $60 billion in freight payments. DAT load boards average 1.2 million load posts searched per business day. For the latest spot market loads and rate information, visit www.dat.com/trendlines and follow @LoadBoards on Twitter.  

Cargo Transporters initiates Acres of Diamonds…Focus on Home Program

CLAREMONT, N.C. — Cargo Transporters, an asset-based transportation operation, Tuesday introduced its Acres of Diamonds…Focus on Home Program. The new recruiting and retention initiative will allow drivers to be closer to home when they finish a shift or have downtime in their schedules, and to take part in community and company events, according to COO Jerry Sigmon Jr. “Acres of Diamonds…Focus on Home is aimed at lowering our already low turnover rate of 42% because we believe that drivers who live in or near our terminal communities are more likely to stay with the company,” Sigmon said. “Just as importantly, the recruiting and retention campaign reflects our corporate culture that has always embraced the importance of focusing on home, family and community. By carrying that same way of thinking over to our drivers we know they will be more likely to stay with us.” With Acres of Diamonds…Focus on Home, Sigmon said Cargo Transporters makes it possible for drivers to get home in less time when their shift ends or to stay home for a few more hours before reporting to work. In addition, if there is a schedule change or scheduled vehicle maintenance, drivers who live closer to a terminal can go home and relax with their families. As part of the program, Cargo Transporters is offering a $2,500 bonus to any employee who refers a driver located near its terminal locations in Claremont, Rocky Mount and Charlotte, North Carolina. The name Acres of Diamonds refers to a motivational lecture by Russell Conwell, a popular public speaker in the 1800s. The story is about the misfortunes of seeking opportunities elsewhere instead of focusing on your own backyard. “Acres of Diamonds was mentioned by one of our drivers in an employee survey,” Sigmon said. “As soon as we heard its message about being open to the opportunities that are around us, we knew we needed to quit focusing on a national level and focus on hiring locally.” Based in Claremont, North Carolina, Cargo Transporters, Inc is an asset-based, transportation operation with 48-state intrastate and interstate common and contract authority. Cargo Transporters operates a fleet of 525 trucks and 1,700 trailers, and employs over 700 people. For more information, visit www.cargotransporters.com.    

ATA truck tonnage index declines 6.1% in May

ARLINGTON, Va. — American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index decreased 6.1% in May after jumping 7% in April. In May, the index equaled 114 (2015=100) compared with 121.4 in April. “As expected, tonnage corrected in May from the surprising surge in April,” said ATA Chief Economist Bob Costello. “The economy is still growing, but the recent volatility in truck tonnage fits with a broader economy that is showing more mixed signals. The good news is if you ignore recent highs and lows, tonnage appears to be leveling off, albeit at a high level.” April’s reading was revised down compared with our May press release. Compared with May 2018, the SA index increased 0.9%, the smallest year-over-year gain since April 2017. The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 119.1 in May, 1.5% above April level (117.4). 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.   ATA Chief Economist Bob Costello said the drop in the tonnage index shows the economy is still growing, but the recent volatility in truck tonnage fits with a broader economy that is showing more mixed signals.

Used truck volumes fall 14% month-over-month in May

COLUMBUS, Ind. — Preliminary used Class 8 volumes (same dealer sales) fell 14% month-over-month in May, the second consecutive sequential drop, according to the latest preliminary release of the State of the Industry: U.S. Classes 3-8 Used Trucks published by ACT Research. Additionally, the report indicated that longer-term comparisons yielded a 22% decline compared to May 2018, as well as a year-to-date drop of 16%. Other data released in ACT’s preliminary report included year-over-year comparisons for May 2019, which showed that average prices rose 5%, while average miles shed 1%, and average age increased 7%. “A spring slowdown is not uncommon, and sales generally increase a bit in the summer, but with the headwinds in the freight market, that is unlikely,” said Steve Tam, vice president at ACT Research. “Those who watch the industry closely have been expecting the strong pricing environment to soften this year, and based on preliminary May data, it appears as though that transition may have started.” Tam said in the context of lower unit sales and rising inventory levels, the slowing price appreciation is a strong indication that demand for used trucks in waning. Given a similar story in the freight market, the development makes sense. 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 is recognized as the leading 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. For more information about ACT’s Used Truck reports, visit www.actresearch.net.    

T.J. O’Connor named chief operating officer of YRC Worldwide

OVERLAND PARK, Kan. — YRC Worldwide has promoted T.J. O’Connor to chief operating officer effective immediately. O’Connor will report to YRC Worldwide Chief Executive Officer Darren Hawkins and will continue to serve as president of YRC Freight. “T.J. has a strong track record of delivering operational results throughout his career at Roadway Express, Reddaway and YRC Freight,” Hawkins said. “With our network optimization initiative, combined with the recently ratified five-year labor agreement that offers new operational flexibilities, this is the time to bring T.J. into the role of COO. His new position will help us drive performance objectives through enterprise-wide process improvement and accountability initiatives at all of our coast-to-coast terminal locations.” “This is a great opportunity to lead our terminal-based field teams as we collectively focus on service improvements and achieving operational efficiencies while operating with the highest degree of safety,” O’Connor said. “Throughout my three-and-a-half-decade career in the less-than-truckload industry, I have worked closely with many of our field employees. I’ve seen their dedication and commitment firsthand. I look forward to working with the Holland, New Penn, Reddaway and YRC Freight teams in this new role.” The YRC Worldwide COO position recently held by Darren Hawkins has been vacant since Hawkins was named CEO of YRC Worldwide in April 2018. As referenced during the YRC Worldwide May 8, 2019, first quarter earnings call, Scott Ware was named chief network officer of YRC Worldwide. Ware leads the YRC Worldwide network solutions, linehaul and property teams. T.J. O’Connor has over three-and-a-half decades of experience in the transportation industry. His career in transportation began at Roadway Express. O’Connor assumed positions of increasing responsibility at Roadway Express, ultimately being named Western Division vice president. O’Connor went on to be named president of Bestway Express and then president of Reddaway. He became president of YRC Freight in January 2018. O’Connor supports advancements in the transportation industry by serving on the board of directors of SMC3, a provider of data, technology and education as an integrated solution to the freight transportation community. He also provides leadership via community service. He has served as a member of The Robert W. Franz Leadership Cabinet of the Providence Cancer Center, a world-recognized organization engaged in the fight against cancer. O’Connor has served in various committee leadership roles for the California Trucking Association, Oregon Trucking Associations and the American Trucking Associations.  

May Class 8 truck sales total 24,424, a 1.7% gain over April

There were ups and oops when Wards Intelligence released data on the sale of new Class 8 trucks in May. On the up side, 2019 marked the first time since the boom year of 2006 that total Class 8 sales topped the 100,000 mark after only five months of the year as May sales were up 27.2% over the same month last year. On the oops side, the month-over-month gain of 1.7% followed more significant month-over-month gains of 15% in March and 5.2% in April. In all, there were 24,424 Class 8 trucks sold in May, bringing the yearly total to 111,332 compared with 88,674 after five months in 2018, a 25.6% bump. Four of the seven nameplates posted month-over-month gains in May topped by Western Star (24.6%) and Volvo (23.8%). All seven were up when compared with May 2018, led by Peterbilt (46.5%) and Freightliner (40.8). Year-to-date, International has the largest increase (36.2%) followed by Freightliner (34.3%).    

FTR Trucking Conditions Index improves slightly in April, still in negative territory

BLOOMINGTON, Ind. — FTR’s Trucking Conditions Index rebounded marginally in April to a -0.64 reading. Conditions improved slightly from the previous month, but TCI remains in negative territory as the rate environment continues to soften. Economic indicators linked to freight are generally weaker, and FTR expects that the index will remain in a narrow band of negative readings through 2019 and into the 2020 calendar year, FTR said. Details of the April TCI are found in the June issue of FTR’s Trucking Update, published May 31. The ‘Notes by the Dashboard Light’ section in the current issue includes an updated analysis of the current trade situation and the impact it is having on freight. 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. “Not that long ago, it seemed inconceivable that the good times in trucking would end, but here we are back down to earth,” said Avery Vise, vice president of trucking. “Growth in manufacturing — the most significant driver of trucking activity — has subsided, and residential construction remains stagnant. However, there are some near-term positives, such as lower diesel prices. Also, carriers are responding to flagging demand by ending their hiring spree, which could set the stage for firmer capacity utilization down the road.” The Trucking Conditions Index 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 that tracks the market conditions that influence fleet behavior. A positive score represents good, optimistic conditions. Conversely, 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, while readings high above zero spell opportunity. Readings near zero are consistent with a neutral operating environment, and double-digit readings (both up or down) are warning signs for significant operating changes. FTR has served as the industry source for freight transportation forecasting in North America for the shipping, trucking, rail, intermodal, equipment and financial communities for over 30 years. Our team of experts have over 250 years of combined experience in the transportation industry and leverage that knowledge to provide quantitative analysis with historical and modal-specific insights. The reports, data, commentary, and insights that FTR provides help our clients evaluate market risks, identify new opportunities, and make informed decisions. For more information about the work of FTR, visit FTRintel.com, follow on Twitter @ftrintel, or call (888) 988-1699, ext. 1.    

Survey shows wellness trends within transportation industry

GRAND HAVEN, Mich. — In the third white paper in a series of research examining demographic and wellness trends within the transportation industry, Atlas Injury Prevention Solutions reveals the correlation between certain physical and behavioral elements and the risks to employee health and wellness. The newly released white paper titled Relationship between Demographics and Wellness in the Transportation Industry details the results of a five-year study of 15,165 drivers and non-drivers employed in terminals, warehouses, shops and offices.. Factors measured include body mass index (BMI), tobacco use, age and gender and how these factors impact driver and non-driver health. The paper, an expansion of two previous papers in the series, outlines potential risk factors that contribute to health concerns facing drivers. Findings in the paper include: Increased risk for heart disease, stroke and diabetes. Of the 15,165 participants who completed biometric screening, 33% had at least three out of five conditions involved with metabolic syndrome (MetS), which includes hypertension, high blood sugar, excess body fat around the waist and abnormal cholesterol and triglyceride levels. Individuals who have a combination of three or more of these factors have an increased risk for heart disease, stroke, and diabetes. Increased percentage of MetS in younger drivers. Drivers between ages 40 and 59 years shared the same risks as their 60-plus year-old counterparts. Tobacco use and drivers. Drivers are 130% more likely to smoke than their non-driver counterparts. The need for targeted training/wellness programs. Addressing BMI as a medical condition, understanding health risks associated with aging, adopting smoking cessation programs, and targeting drivers for training/wellness programs can decrease development of MetS conditions and slow the rate at which MetS risks increase with age. “Our goal with this paper is to inform health and safety professionals in the transportation industry on how to identify and prioritize higher-risk drivers,” said James Landsman, president of Atlas IPS. “In the white paper, we use the results of our analysis to identify and justify recommendations to help companies reduce risk exposure and ensure better employee health and wellness.” To view the full Atlas white paper, titled Relationship between Demographics and Wellness in the Transportation Industry, visit http://atlas-ips.com/resources/research/relationship-between-demographics-and-wellness-in-transportation/.  

Spot market truckload volumes disappoint in May; June called pivotal month

PORTLAND, Ore. — Spot truckload freight volumes failed to meet expectations in May, said DAT Solutions, which operates the largest truckload freight marketplace in North America. The number of full-truckload van loads moved on the spot market declined 12% in May compared to April, according to the DAT Truckload Volume Index. Van load counts were down 10% compared to May 2018. Van trailers haul approximately 70% of all truckload freight. “Simply put, May was a disappointment in terms of load counts,” said DAT Senior Industry Analyst Mark Montague. “We’re accustomed to seeing higher volumes of retail goods, fresh produce, construction materials, and other seasonal spot truckload freight moving through supply chains at this time of year.” Uncertainty over trade agreements and slumping imports from China seemed to dampen truckload demand. Record rainfalls, flooding, and tornadoes also hampered freight movements in many parts of the country. Agriculture producers saw their supply chains disrupted by the weather, with many harvests ruined or delayed. As a result, refrigerated volumes declined 8.3% month over month and fell 12% year over year. Flatbed load volume, which includes heavy machinery and construction material, dropped 9.3% month over month and 3.1% year over year. Spot truckload rates continued to track well below last year’s record levels. Compared to April, the national average spot van rate was virtually unchanged at $1.80 per mile, including a fuel surcharge. That’s 35 cents below the average for May 2018. The average reefer rate was $2.15 per mile, 1 cent higher than April and 38 cents lower than May 2018. The flatbed rate averaged $2.27 per mile, down 5 cents compared to April and 45 cents lower year over year. “After a lackluster May, June is shaping up to be a pivotal month for trucking,” Montague said. “We will know soon whether the volumes we expected in May were simply delayed. If so, the pent-up demand could boost seasonal volumes at the close of Q2.” The DAT Truckload Freight Volume Index is based on load counts and per-mile rates recorded in DAT RateView, with an average of 3 million freight moves per month. Spot market information is based on transactions arranged by third-party logistics (3PL) companies, while contract volumes and rates are arranged between shippers and carriers, with no intermediary. DAT market trends and data insights are derived from 256 million annual freight matches and a database of $60 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.  

Mike Weindel appointed president of Dupré Logistics

LAFAYETTE, La. — Mike Weindel has been appointed as president of Dupré Logistics effective June 1. Reggie Dupré will continue to focus on his role as CEO, working closely with the entire executive team. “I have tremendous respect for Mike Weindel. He is being promoted to assure we live out our values, pursue our vision and deliver our mission as we continue to grow the company,” said Dupré said. “His leadership roles and experience in asset operations, human resources, risk management, dedicated and brokerage businesses have prepared him well to be a leader at Dupré Logistics.” Weindel has more than 20 years’ experience in the transportation and logistics industry. He joined Dupré Logistics in July 2016 as vice president of strategic capacity services. Dupré said that Weindel’s strengths in team building, developing and promoting good leaders and building a high-performance, people-focused culture played important roles in the decision to appoint him as president of the company. “Dupré Logistics’ motto of ‘always forward thinking’ along with our vision to become ‘the Ideal Place to Work’ has been an inspiration to me and goes to the core of who we are as a company. Working with and learning from Reggie and his great team has been a privilege,” Weindel said. “I am incredibly honored, humbled and energized to help lead the company into the next phase of forward thinking.” For more information about Dupré Logistics, go to www.duprelogistics.com.