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FTR analysis confirms tonnage surplus in U.S. trade with Mexico

BLOOMINGTON, Ind. — Although the U.S. goods trade deficit with Mexico is about $80 billion, the U.S. has a longstanding trade surplus with Mexico in terms of rail tonnage and a growing truck tonnage surplus over the past three years, according to just-completed analysis by FTR. Using the Freight•cast forecasting model, FTR translated value-based trade data published by the Bureau of Transportation Statistics into transportation tonnage and loadings to and from Mexico and Canada. The forecasting firm’s analysis of cross-border trade data has been ongoing for several months and happened to conclude around the time President Trump announced tariffs on all imports from Mexico, effective June 10. “With China continuing to be problematic, we know that there had been some shifting of sourcing to Mexico, so potential tariffs on Mexican imports raise important questions,” said Eric Starks, chairman and CEO of FTR. “Either we lose this freight, see increased costs, or both.” The U.S. rail sector has run a significant surplus of tonnage into Mexico for years, but U.S.-Mexico truck tonnage had been more balanced until 2016, when the U.S. trucking sector posted its first meaningful surplus since 2008. The picture looks a bit different regarding loads into and out of Mexico. Rail loadings are volatile year to year, but the U.S. runs a deficit of truck loads to the tune of about 800,000 a year. Rail movements into and out of Mexico represent about 3.2% of all U.S. rail moves, and that portion has grown steadily since 2009. Excluding intermodal, U.S.-Mexico traffic represents about 5.5% of total U.S. rail moves, and that number has nearly doubled since 2009. FTR estimates that truck loads into and out of Mexico make up just 1.5% of all U.S. truck loadings, but that share has risen by about 50% since 2009. “Rail is more exposed than truck even though it has a smaller portion of overall crossborder freight,” Eric Starks said. “Changes in freight would be felt quicker by the rail sector. If we assume a retaliation by Mexico, rail could be hit further because Mexico potentially has other ready sources for some of the most important rail exports to Mexico, such as fuel and grain.” With truck, while the share of overall truck volume dedicated to Mexico is small, a big piece of that are parts for vehicles, computers, and machinery. “If the trucking freight went away, that in itself would not be a death knell for trucking, but the broader issue is the exponential impact on U.S. manufacturing,” Starks said. FTR will discuss some of its top level findings during a complimentary State of Freight webinar on Key Issues in Transportation, scheduled for June 13. To register, visit http://www.ftrintel.com/webinars. A more comprehensive analysis will also be available later this month to subscribers of FTR’s State of Freight INSIGHTS series. For information on how to subscribe to State of Freight INSIGHTS and other FTR products, visit www.ftrintel.com or contact FTR by email at [email protected] or by phone at 888-988-1699, ext. 1.

May North American Class 8 orders take a tumble

Preliminary North America Class 8 net order data released by the two commercial vehicle organizations that track information both show a sharp decline in Class 8 orders for May. FTR reports preliminary Class 8 orders for May scraped the bottom of the order cycle, coming it a lowly 10,400 units, or 29% below the slow April activity. This is the lowest volume for Class 8 orders since July 2016 and the weakest month of May since 2009, reflecting a minus 71% year-over-year comparison. Class 8 orders for the past 12 months now total 360,000 units. ACT Research showed the OEM industry booked 10,800 units in May, dropping 27% from April, but down a more significant 70% from year-ago May. FTR’s Don Ake, vice president of commercial vehicles said May 2019 is basically the final period for ordering trucks to be built in 2019 and the low numbers indicate that fleets are simply trying to find any scarce build slots left for the year.  Backlogs should fall to the 220,000 range, just where they were a year ago when the fervent ordering for 2019 began. “May’s low orders were consistent with it being the last month in this year’s cycle. The 2019 order pattern was pulled ahead by three months, so May’s orders are similar to what you normally would see in August,” he said. “Ordering for 2020 is expected to begin in June, with several OEMs expected to start taking orders for next year.” OEM build rates remain at robust levels, Ake said. “The economy and freight growth are expected to ease throughout the year, applying some downward pressure on the truck market in the second half.  Orders for the next couple of months should be a good indicator of fleet confidence about 2020.” “Fraying freight market and rate conditions along with a still-large Class 8 order backlog contributed to the worst NA Class 8 net order performance since July 2016,” said Kenny Vieth, ACT’s president and senior analyst. “May saw NA Class 8 orders fall below the 15,900 units averaged through the year’s first trimester, and year-to-date Class 8 net orders have contracted 64% compared to the first five months of 2018.” For more information on FTR visit ftrintel.com. For more information on ACT Research, visit actresearch.net.      

Average on-highway price of gallon of diesel drops 1.5 cents

WASHINGTON — The average on-highway price of a gallon of diesel dropped 1.5 cents a gallon to $3.136 for the week ending June 3, according to the Energy Information Administration of the Department of Energy. All told the price has dropped 3.5 cents during the past four weeks. All regions of the country declined, led by California at 2.5 cents, followed by the total West Coast (Washington, Oregon, Nevada, Arizona and California) and 1.8 cents a gallon in both the Rocky Mountain states (Montana, Idaho, Wyoming, Utah and Colorado) and the Gulf Coast (New Mexico, Texas, Arkansas, Louisiana, Mississippi and Alabama). This week’s price is 14.9 cents a gallon lower than the comparable week last year. For a complete list of prices by region for the past three weeks, click here.  

FreightWaves acquires StakUp Inc., TCA inGauge’s software platform

ALEXANDRIA, Va. and CHATTANOOGA, Tenn. — FreightWaves, a data and content source for the freight markets, has acquired StakUp Inc. as part of a multi-faceted partnership with the Truckload Carriers Association that will build on a previously per a data and marketing agreement established in November 2018. StakUp is the developer of the “inGauge” online benchmarking platform used exclusively by the TCA Profitability Program (TPP) to compare and contrast financial and operational performance. As the exclusive software service provider for TPP, StakUp has built a significant database of carrier and brokerage profiles since its founding in April 2014 by then TCA Chairman Ray Haight and StakUp President Chris Henry. As of June 1, Henry will have dual roles. He will continue as TPP Program Manager and also serve as FreightWaves’ vice president of carrier profitability. In this role, he will enhance the data and features offered through the FreightWaves SONAR freight intelligence platform, promoting SONAR features specifically for North American truckload carriers. Jack Porter will remain as TPP managing director, and will work closely with Henry to achieve growth targets, enhance group meeting content, and strategic direction. This new partnership between TCA and FreightWaves further fuels TCA’s membership growth and enhances active participants in the TCA Profitability Program, according to TCA Chairman Josh Kaburick, who said the outlined goal is to increase TPP participants to 2,000 by the end of 2025. In addition to the value of a larger pool of participants, especially for the curation of best practices and new initiatives, TCA and FreightWaves will be emphasizing the importance of increased technological sophistication of member companies. In addition, FreightWaves and TCA will conduct research to improve the efficiency and profitability of North American trucking companies and their related supply chain partners. Quarterly research objectives will be established to leverage FreightWaves’ growing datasets and its data scientists. TCA’s gvernment affairs team will work closely with FreightWaves staff to establish the research objectives. Also, the two organizations have developed an incentive program, exclusively for TPP participants, to use the FreightWaves SONAR platform free for six months (limit of one SONAR seat per member, non-API access) that began June 1 and will end November 30. Carriers that join TPP after June 1, will receive access to SONAR beginning on their join date, and ending on November 30, 2019. Current TPP participants are strongly encouraged to activate their trial in order to maximize their evaluation period before the November 30 deadline. “Having previously established a close working relationship with TCA, this acquisition and partnership was the logical extension to build on each other’s strengths,” said FreightWaves’ Founder and CEO Craig Fuller. “TCA has established the premier benchmarking and knowledge-sharing platform in trucking. Our goal is to add features, services and data to enhance the value for current and future TPP participants. If you are a truckload carrier, this service is a no-brainer.” “FreightWaves has carved out a unique position in the North American transportation industry as the data and content provider of choice,” said Kaburick, who is CEO of Trekker Group of Companies. “The TCA Profitability Program is an exceptionally valuable service for participating carriers. Just like any other business, it is imperative that TPP stays relevant, and expands its services available to carriers of all sizes.”                          

Schneider named first two-time winner of Green Cross for Safety Award

GREEN BAY, Wis. — In 2006, Schneider created a first-of-its-kind sleep disorder screening program for all company drivers, providing treatment to those who test positive for obstructive sleep apnea (OSA). The carrier is now being honored for its pioneering work by receiving the 2019 National Safety Council’s Green Cross for Safety Innovation Award. In being named the winner, Schneider is breaking more new ground: It is the only company to consecutively win the Green Cross for Safety, following its 2018 Green Cross for Safety Excellence Award. “Being honored with the Green Cross for Safety Award in back-to-back years is an amazing accomplishment, underscoring our commitment to our No. 1 core value of Safety First and Always,” said Tom DiSalvi, vice president of safety, driver training and compliance at Schneider. “However, the biggest win is that our driver associates are more vigilant on the roadway and significantly healthier. We weren’t trying to be innovative. We were trying to save lives.” Schneider became the first large-scale employer to effectively and efficiently identify drivers at risk for OSA and get them the critical treatment needed to improve their health and safety. OSA is a sleep disorder that affects one out of five American adults and prevents restorative sleep, leading to excessive daytime sleepiness and long-term health issues. It is most commonly treated by using a continuous positive airway pressure device — commonly known as CPAP — to keep the air passage in throat open while sleeping. Schneider created a program that eliminated the barriers — specifically driver down-time and cost — by creating a nationwide network of sleep clinics. This allows driver associates to be tested while still under dispatch — either in the sleep lab or with a home sleep test in their truck sleeper berth. Their results are reviewed the next morning by a board-certified clinician. If a driver tests positive for OSA, a CPAP device is provided so the driver can be treated immediately and continue with their load delivery without losing any workdays – all at zero cost to the associate through Schneider’s health care benefits. Schneider has achieved several significant outcomes as a result of this program: Fatigue-related incidents improved by 44 percent Retention improved by 2.2 years of increased tenure for treated associates (30 percent above fleet average) Healthcare costs reduced by more than $300 per treated associate per month The NSC Green Cross for Safety Innovation award is given to a researcher, corporation, coalition or organization in recognition of a transformative approach to a long-held challenge in safety. Schneider is the first truckload carrier to be honored with this award. “National Safety Council award winners don’t just aim to check off a box for safety,” said Nicholas J. Smith, interim president and CEO of the National Safety Council. “These individuals and organizations understand that a successful day of work requires getting home safely, and they prioritize safety at every level of decision-making. We are proud to honor each of our nominees and our incredible winners, all of whom are committed to working alongside NSC to eliminate preventable deaths in our lifetime.” Schneider remains committed to sharing experiences and learnings with companies, government agencies and individuals to improve highway safety and assist in improving the health and safety of others, DiSalvi said. For more information on Schneider, visit schneider.com.  

Trailer orders continue down swing, but trend not sign of problem

The two major organizations that collect and analyze commercial vehicle data report that trailer orders remain subdued, but also indicate the lower numbers are not necessarily indicative of a problem. ACT Research’s Frank Maly, director-CV transportation analysis and research, said that trailer industry net orders have eased meaningfully since November of 2018, as year-over-year-comparisons have now been in the red for the last five months, but that the order weakness is not indicative of fleets’ unwillingness to invest. Don Ake, FTR vice president of commercial vehicles, said the low order level does not in any way reflect a softening of demand, but rather the fact that many large OEM’s have filled their order boards for 2019. Backlogs remain hefty, with robust production levels. Trailers orders for the past 12 months now total 364,000 units, he said. “Year-to-date net orders through April were just over 80,000 units, down 37% from last year, but despite this, current orderboards still stretch to nearly year-end for the total industry,” Maly said. “Order weakness is more a symptom of OEM reticence to fully open 2020 orderboards than fleets’ unwillingness to invest, as we’re hearing of OEMs actively gathering ‘verbal commitments’ for the first half of 2020, with some orders reportedly being posted as ‘price pending’.” Maly said softer new orders have been joined by higher cancellations in recent months, despite widespread implementation of cancellation penalties. “However, trailer production continues at robust levels, with March of 2019 as the second highest production month in industry history,” he said. “ACT anticipates strong production levels through the remainder of this year, but see OEMs continuing to be challenged by component and material issues, as well as staffing.” FTR reported preliminary trailer orders for April 2019 remained subdued for the second consecutive month coming in at 13,200 units, which is 40% below the same month in 2018. “We expect the backlogs to remain very healthy, supporting continued high build rates,” Ake said. “Orders likely will stay at low volumes through the summer, or until OEMs open the 2020 order boards. OEMs have been cautious about taking longer-term orders due to uncertainty over future costs. Right now, the Chinese tariff situation is just adding to an already cloudy outlook.”

DAT Solutions says spot van, reefer rates show signs of life

PORTLAND, Ore. — Spot truckload freight volumes continued to build during the week ending May 26 and improving van and refrigerated load-to-truck ratios contributed to higher rates on major lanes, said DAT Solutions, which operates the industry’s largest network of load boards. National average spot rates barely moved compared to the previous week, however: National average spot rates through May 26 include: Van: $1.80/mile, 1 cent lower than the April average Reefer: $2.16/mile, 1 cent higher than April Flatbed: $2.29/mile, 4 cents lower than April Reefer rates There was good news for reefer carriers as a surge in shipments ahead of Memorial Day weekend lifted rates on 44 of the top 72 reefer lanes. The national average reefer load-to-truck ratio jumped from 2.6 to 2.9, equal to where it was during the first week of May. Where rates are rising: California’s Central Valley seems to be building toward a typical June peak. Rising reefer volumes produced higher rates on lanes from Sacramento, California, and Fresno, California, including: Sacramento to Salt Lake City, up 39 cents to $2.62/mile Fresno to Denver, up 18 cents to $2.27/mile The bad news? A solid week of rain ahead of Memorial Day has devastated this year’s cherry crop, which was estimated to be more than 10 million cartons — a record. The California Farm Bureau said growers expect to lose nearly two thirds of that amount. Too much rain so close to harvest can cause cherries to split down the side or along the stem, rendering them unsalable except for processing. Van trends Rates were higher on 54 of the top 100 van lanes compared to the previous week and the national average van load-to-truck ratio improved from 1.6 to 1.8. That’s still below expectations for this time year. Where rates are rising: Atlanta, which boasted the highest number of van load posts in the country last week. Rates between Atlanta and Memphis rose in both directions, a hopeful sign that retail goods are on the move. On the other side of the country, two lanes out of Los Angeles drew notice: Los Angeles to Denver: $2.50/mile, up 17 cents Los Angeles to Seattle: $2.39/mile, up 13 cents, although pricing out of Seattle was weak; the Seattle-L.A. return trip fell 14 cents to $1.16/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 dat.com/trendlines and follow @LoadBoards on Twitter.

Price of diesel drops 1.2 cents to $3.151

WASHINGTON —  The average on-highway price of a gallon of diesel declined 1.2 cents a gallon to$3.151 for the week ending May 27, according to the Energy Information Administration of the Department of Energy. The prices were posted Tuesday instead of Monday because of the Memorial Day holiday. The price declined in all regions of the country led by a 1.5 cent a gallon drop in the Central Atlantic states (New York, New Jersey, Pennsylvania, Delaware and Maryland) and a 1.4 cent a gallon drop in both the Gulf Coast region (New Mexico, Texas, Louisiana, Arkansas, Mississippi and Alabama) and the West Coast minus California (Arizona, Nevada, Oregon and Washington). Every region of the country had a decline of at least one cent. The national average price is 13.7 cents lower than one year ago. For a compete list of prices by region for the past three weeks, click here.  

ACT Research: Used truck prices up 6% month-over-month

ACT Research: Used Truck Prices Rose 6% M/M and 12% YTD, with Unit Sales Dropping 6% M/M and 16% YTD COLUMBUS, Ind. — The average price of total used Class 8 trucks in April was up 6% month-over-month and 12% higher year-to-date, according to the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research. The report also indicated used Class 8 same dealer sales volumes fell 6% m/m and were 15% lower compared to April 2018. On a month-over-month basis, average mileage dropped 2%, while average age was down 4%. “While some dealers are reporting demand for used trucks continues to be strong and the market does not have enough trucks to meet demand, the frequency and degree of contrary reports is increasing,” said Steve Tam, vice president at ACT Research. “Following several months of slowing freight and freight rate growth, it appears the used truck market is poised at an inflection point, and although April data does not necessarily reflect a turn in the market, comments and activity during May are presumed to be an indication of the slowdown.” The report from ACT provides data on the average selling price, miles, and age based on a sample of industry data. In addition, the report provides the average selling price for top-selling Class 8 models for each of the major truck OEMs – Freightliner (Daimler); Kenworth and Peterbilt (Paccar); International (Navistar); and Volvo and Mack (Volvo). 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.          

Penske Logistics closing Indiana terminal, laying off 80

Reading, Pennsylvania-based Penske Logistics has indicated it plans to close its terminal in Fort Wayne, Indiana. The move will result in the layoffs of 80 workers, most of them drivers. A company spokesman said the closure is in response to a “recent local trucking contract termination.” The layoffs are scheduled to begin when the contract runs out July 20, according to the federal Worker Adjustment and Retraining Notification (WARN) that it filed with the Indiana Department of Workforce Development on May 18. The WARN Act requires employers with 100 or more employees to provide 60 days’ notice of a possible plant closing or mass layoffs. “All affected employees have been notified of their separation dates and have been told their separation from employment will be permanent,” Penske said in the WARN notice. The notice goes to say there will be no “bumping” rights for any of the affected employees, meaning none of them can displace another company employee somewhere else by virtue of seniority or some other perceived hierarchical advantage. However, in an email message to The Trucker, a company spokesman wrote: “This required WARN notice was issued by Penske Logistics in response to a recent local trucking contract termination. As we have extensive trucking operations, Penske Logistics is working to identify other potential employment opportunities for these employees at other locations within the company once this contract concludes July 20.”  

Robert Peiser resigns as chairman of the board at USA Truck

VAN BUREN, Ark. — Robert A. Peiser has resigned from his position as chairman of the board of USA Truck, Inc., effective immediately, the company reported in a filing with the Securities and Exchange Commission. The filing said his resignation  does not relate to any disagreement with the company on any matter relating to the company’s operations, policies or practices. “He has served as our chair since early 2012 and provided a lasting contribution to our company,” the filing said. “His dedication to creating value and protecting our stockholders’ interests helped bring USA Truck through some very difficult times and leaves us well positioned to prosper. We are grateful for his efforts on behalf of all USA Truck stakeholders.” The filing said Alexander D. Greene had assumed the role as chairman of the board. “He has been a thoughtful and trusted member of our board for many years and has the experience and perspective to guide and counsel the company as we continue our path forward,” the filing said. Greene has been a director of the company since May 2014 and currently serves on the boards of directors of Ambac Financial Group, a publicly held provider of financial guarantees and other financial services; Element Fleet Management Corp., a fleet management and services company; and GP Natural Resource Partners, a diversified natural resources company, as well as on a number of private company boards and committees. He also recently served as chairman of the board of Modular Space Corporation, a North American supplier of modular buildings and storage units, prior to its sale to Williams Scotsman in August 2018. Previously, Greene spent over 35 years in private equity, investment banking and commercial banking with firms including Brookfield Asset Management, The Carlyle Group, Wasserstein Perella & Co., and Whitman Heffernan Rhein & Co. Greene graduated from The George Washington University and is a volunteer firefighter and president of the Armonk Independent Fire Company. USA Truck provides comprehensive capacity solutions to a broad and diverse customer base throughout North America. According to its website, USA Truck trucking and logistics groups blend an extensive portfolio of asset and asset-light services, offering a balanced approach to supply chain management including customized truckload, dedicated contract carriage, intermodal and third-party logistics freight management services.  

PGT Trucking honors million mile drivers, safe driver honorees

ALIQUIPPA, Pa. — PGT Trucking recently recognized 56 Million Mile Drivers and 144 Safe Drivers at its annual awards event held at the newly-renovated Willows event center in Industry, Pennsylvania, May 18. These individuals set the standard for excellence at PGT Trucking and throughout the industry, according to Pat Gallagher, PGT Trucking CEO. “We value and support our Million Milers and Safe Drivers,” Gallagher said. “We are encouraged and excited by their professionalism and attitude, and we are honored to have these drivers represent our company with their knowledge, dedication, integrity and above all, their commitment to safety.” PGT’s Safe Drivers have driven for the company for more than five years, or less than one million miles, without a preventable accident and Million Mile Drivers have accomplished this pristine status by driving over a million miles without a preventable accident. “The Million Mile Drivers represent a very exclusive group of professional truck drivers,” said Gregg Troian, PGT Trucking president. “Exclusive, since the accomplishment includes a mix of hard work, constant attentiveness, pride, loyalty and commitment. It’s an honor to have them wear the PGT Proud Professional badge.” The Million Mile and Safe Driver Celebration is the premier event for PGT drivers and their guests. PGT has recognized its million mile and safe drivers for more than 20 years. The evening’s top award winners included Rick Franklin, recipient of the David Levin Award for Company Driver of the Year; Steven Dowler, recipient of the Harry “Buster” Barnes Award for Independent Contractor of the Year; Gwendolyn Campbell, PGT’s Rookie Driver of the Year; Mike Rowley, recipient of the Hobert Hill Award for Agent of the Year; Natalie Young, recipient of the Bill Wright Award for Team Player of the Year; Alan Harff, Safe Operations Manager of the Year; Cindi Janicki, PGT MVP of the Year; and Bill Hershey, President’s Award recipient. PGT also inducted three new million mile drivers into this elite group, including Peggy Glidewell, David Haynes and Tony Sheehan. Additionally, all Million Mile and Safe Drivers receive an award package that includes Ray Ban or Oakley sunglasses, a personalized cap and a gift of their choice from watches to tools, and lawn equipment to tires. Drivers at the event are entered into various raffle drawings, and this year, Four Million Mile Driver Glenn Gray took home the grand prize Ford Escape Titanium. Gallagher said PGT was honored to welcome internationally known guest speaker David Coleman to the event, who shared his thoughts on how teamwork, strong relationships and purposeful decisions influence the lives of drivers and their families each and every day. “We are so blessed to be able to have 200 of the nation’s top drivers within our fleet,” he said. “To recognize them each year at this event is just a small token of our appreciation for all that they do for PGT, our customers and the communities we service.” PGT Trucking is a multi-service transportation firm offering flatbed, dedicated, international and specialized services. PGT operates in excess of 1,000 power units and over 1,500 trailers and is headquartered in Aliquippa. For more information visit www.pgttrucking.com.

NACV to feature 3 Solutions Theaters to focus on trucking industry needs

ATLANTA — The North American Commercial Vehicle Show (NACV Show), the biennial B2B trucking industry event focusing on the needs of fleet owners, managers and decisionmakers, said Thursday that it will feature three new Solutions Theaters to showcase topical industry discussions on the show floor. The show organizers have partnered with leading industry publications to secure thought leaders and industry visionaries who will discuss a range of topics. All Solutions Theaters’ sessions are free for NACV Show 2019 registered attendees. “We expect the discussions that take place in our three Solutions Theaters will inform and empower all industry professionals who attend NACV Show 2019,” said Carmen Diaz, show manager for the NACV Show. “We are excited to present top industry leaders and visionaries during our on-floor education sessions to discuss both the challenges and opportunities confronting today’s fleet professionals.” Following is an overview of some of the NACV Show 2019 on-floor education sessions: Two panel discussions will take place in the Solutions Theater located in Hall A. The first panel is entitled “Finding the Data Driven Solutions That Work for You,” which will focus on how fleet owners can identify leading service challenges. Panel participants will provide insight into collecting and organizing the right data to help overcome these challenges. The second panel is entitled “How to Use Data to Improve Service Operations” that will highlight how to best utilize data — from fault code data to VMRS records — to reduce fleet downtime to improve operations. Also, in the Hall A Solutions Theater, three educational topics will be discussed, including a Class 8 panel discussion, a medium duty panel discussion and “Last Mile – Autonomous Delivery Startups” discussion. Two panel discussions will take place in the Solutions Theaters located in Hall B, including “Vetting Technology” and “Best use of Smart Technology.” Three educational sessions will also take place in the Solutions Theaters located in Hall B, including “Transitioning from AOBRDs to ELDs,” “Driver Retention” and “Rapid Pace of Technology Trucking.” The show organizers will announce additional conference and educational programming topics prior to the event, which takes place at the Georgia World Congress Center in Atlanta from October 28-31. The North American Commercial Vehicle Show is a B2B exhibition focused on fleet decision makers and key influencers in the commercial vehicle industry.      

FTR March Shippers Conditions Index shows positive momentum

BLOOMINGTON, Ind. — FTR’s March Shippers Conditions Index (SCI) rose two full points from February to a reading of 2.8 reflecting a continued easing of truckload and intermodal rates.  The outlook is for improved shipper conditions through 2019. However, some key areas to watch are fuel price increases and capacity utilization in trucking which can result in added costs for shippers, according to Todd Tranausky, vice president of rail and intermodal at FTR. “Shippers are benefiting from relatively stable fuel prices and weaker trucking capacity utilization than they experienced in 2018. But both of those metrics are expected to tighten up as the year progresses,” Tranausky said. “Diesel prices could move up in the fourth quarter ahead of the IMO 2020 fuel mandate, which could pressure fuel surcharges higher late in 2019.” The May issue of FTR’s Shippers Update, published May 8, 2019, details the factors affecting the March Shippers Conditions Index. Also included is data and analysis on load volumes, the capacity environment, rates, costs, and the truck driver situation. The Shippers Conditions Index tracks the changes representing four major conditions in the U.S. full-load freight market. These conditions include 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.    

Heartland Express opens new, remodeled terminals in Colorado, California

NORTH LIBERTY, Iowa — Heartland Express has opened a new terminal at Frederick, Colorado, and a remodeled terminal in Rancho Cucamonga, California. Just north of the Denver metro area, the Colorado facility offers a service shop with a truck wash, fully covered 24-hour fuel island and service lanes. The terminal features a driver lounge with 24-hour access and amenities that include restrooms with private walk-in showers and laundry room with full size washer/dryer units. Other comforts include sofas and recliner chairs, table seating, ice machine, coffee, and a large screen TV for entertainment. An RFID software system was installed for driver security and over five acres of parking with industrial Wi-Fi network available site wide. The opening of the Frederick terminal occurred shortly after the grand re-opening of the newly remodeled Southern California facility in Rancho Cucamonga. This 20-acre facility includes all of the amenities available in Frederick and utilizes solar power. Rancho Cucamonga is also one of 12 company locations that hosts driver orientation and soon we look forward to driver orientation at the Frederick facility. “I’m extremely proud of these new terminals and what we can offer to our drivers. We’ve invested significant time, capital, and environmentally conscious resources into these provisions and look forward to seeing growth of our market position in both locations respectively,” said Heartland Express CEO, Mike Gerdin. “These grand openings are just the start of great new things to come from Heartland. Including the completion of these two terminal projects, we are spending an estimated $40-50 million on terminal related capital projects during 2019.  These terminal projects are centered around upgrades, remodels, expansions and terminal amenities for the comfort and support of our drivers, including additions of truck wash facilities at certain locations. Our desire is to offer state of the art amenities to our drivers while they are away from home. The Frederick terminal is located at 9040 Bruin Blvd. The Rancho Cucamonga terminal is located at8566 Pecan Ave. Heartland Express is an irregular route truckload carrier based in North Liberty, Iowa, serving customers with shipping lanes throughout the United States. Heartland focuses on medium to short haul regional freight, offering shippers industry leading on-time service so they can achieve their strategic goals for their customers. For more information, visit www.heartlandexpress.com.

Dart Transit launches search for new president

EAGAN, Minn. — Dart Transit Co., in its 85th year as a nationwide transportation service provider, has begun a national search for the position of president. Donald G. Oren, who has led Dart for over 50 years, is currently serving as chairman and president of the company. Oren, along with Dart’s executive management team, will be overseeing the process of hiring a new president. “As we are commemorating our 85th year in business and being a part of an ever-changing and vital industry, we are focused on the future and seeking to best position our leadership team to meet the challenges ahead and make the most of our opportunities. We are looking forward to our search process for a new president and bringing in fresh viewpoints that will allow Dart to continue to move forward as a market leader and innovator,” Oren said. “I’m very proud of Dart’s history, but I am even more excited about Dart’s future.” Part of Dart’s history is the ownership by the Oren family. Dart was started in 1934 by Earl Oren, Don’s father, in St. Paul, Minnesota. The company, which is now headquartered in Eagan, Minnesota, has grown through the years to become a fleet comprised of 1,800 owner-operators and company drivers. In addition to its Eagan corporate campus and operating center, Dart has four strategically located operating centers which support over-the-road, regional, dedicated and local freight networks. Dart’s dry-van truckload operation ranks in the top 25 on multiple industry lists. In addition to truckload services, Dart offers logistics, warehousing, relay, storage and intermodal solutions throughout the U.S. “As an organization, Dart is looking for an established leader, experienced in the truckload industry. Our new president will be responsible for driving and executing strategic decisions that result in controlled growth while adhering to our organization’s values,” said Oren, who is the majority shareholder of the company which is owned by the Oren family. “As a family, we are looking forward to working with the new president and our management team in serving the next generation of customer service needs as well as the needs of owner-operators and company drivers. We believe it’s best for Dart at this point in time to find a strong leader who can bring an outside perspective and depth of experience into this position.”      

ATA For-Hire Truck Tonnage Index surges 7.4% in April

ARLINGTON, Va. — American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index surged 7.4% in April after decreasing 2% in March. In April, the index equaled 121.8 (2015=100) compared with 113.4 in March. “The surge in truck tonnage in April is obviously good for trucking, but it is important to examine it in the context of the broader economy,” said ATA Chief Economist Bob Costello. “February and March were particularly weak months, as evidenced by the 3.5% dip in tonnage due to weather and other factors, so some of the gain was a catch-up effect. In addition, the Easter holiday was later than usual, likely pushing freight that would ordinarily be moved in March into April. “I do not think the fundamentals underlying truck tonnage are as strong as April’s figure would indicate, but this may signal that any fears of a looming freight recession may have been overblown,” he said. March’s reading was revised up compared with our April press release. Compared with April 2018, the SA index increased 7.7%, the largest year-over-year gain since July. The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 117.7 in April, 1% above March level (116.6). 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.

ACT says trailer order volume soft in second straight month

COLUMBUS, Ind. — ACT Research’s preliminary estimate for April 2019 net trailer orders is 14,500 units. Final volume will be available later this month. ACT’s methodology allows the company to generate a preliminary estimate of the market that should be within +/- 3% of the final order tally. “Order volume was soft in April for the second straight month. Several factors appear to be in play. OEMs continue to be reticent to fully open 2020 orderboards. This is evident in our measurement of the extent of the industry’s backlog, which has remained in the November or December timeframe throughout the first four months of 2019,” said Frank Maly, ACT’s director of CV transportation analysis and research. “While we hear comments of some fleets anxiously awaiting the chance to snap up 2020 build slots, some also appear to be evaluating their existing commitments. Cancellations in April were the highest since August 2016 on both a unit and percent of backlog basis, and have remained elevated since December. That resulted in an interesting dichotomy in April orders; while new orders were actually up versus March, cancellations were significant enough to pull the net order number into the red month-over-month.” Maly said while down slightly from March, production continues at a brisk pace, although material/component availability and staffing continue to challenge OEMs. Seasonal patterns actually called for a slight increase for April production, so that small sequential decline likely confirms the impact of the aforementioned headwinds. “Additionally, our discussions indicate that red-tagged units continue to challenge OEM production efficiency,” he 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.

Price of diesel inches up three-tenths of a penny

WASHINGTON — The average on-highway price of a gallon of diesel increased three-tenths of one cent to $3.163 for the week ending May 20, according to the Energy Information Administration of the Department of Energy. The increase was precipitated by a 1.1-cent increase in the Rocky Mountain states (Colorado, Utah, Wyoming, Idaho and Montana) and a 1-center increase in the Central Atlantic states (New York, New Jersey, Delaware, Pennsylvania and Maryland). The largest decrease was five-tenths of a penny in the Lower Atlantic states (Florida, Georgia, South Carolina, North Carolina, Virginia and West Virginia). Two regions remained the same as last week. Overall, the price is down 11.4 cents a gallon lower than last year. For a complete list of prices by region for the past three weeks, click here.  

ES releases agenda for Success in Trucking Expo

MEMPHIS, Tenn. — ES, which offers capacity solutions and ownership opportunities within the trucking industry, has released programming details for the company’s inaugural Success In Trucking Expo (SITE), which will take place June 7-8 at the Indianapolis Motor Speedway complex. The two-day agenda for the SITE has been designed specifically for professional drivers, owner-operators and fleet owners who have a desire to explore ownership opportunities or grow current operations, according to ES CEO Paul Williams. Ellen Voie, the President & CEO of the Women In Trucking Association, is among an list of industry experts who have committed to participate in the SITE for 2019. Voie will be a part of an industry panel discussion that will bring together trucking experts, contract professional drivers, truck owners and fleet owners who are part of the ES Community. Among those joining Voie on the panel will be Brian McCoy, president of Stoops Freightliner, and Leah Shaver, the chief operating officer of the National Transportation Institute. The panel also will feature Chris Moran, Freightliner district sales manager, from Daimler Trucks of North America and Colton Lawrence, CEO of EQUINOX Owner-Operator Solutions. Anthony Muñoz, a member of the Pro Football Hall of Fame and an entrepreneur with a long record of success for making a positive impact within Cincinnati and the surrounding communities, will highlight the opening session for the SITE, serving as the keynote speaker on the evening of June 7. The panel discussions and the presentations by the carriers participating in the SITE will take place the following day. The ES Community motor carriers participating in the SITE will be FedEx Custom Critical, Forward Air and Panther Premium Logistics, a service of ArcBest. These three companies will be the exclusive motor carriers at the SITE, and each company will have a representative who will be making a presentation during the expo. Mike Abood, FedEx Custom Critical’s managing director of fleet operations, Nick Burch, Panther’s director of owner-operator recruiting, and Ryan Gilliam, Forward Air’s vice president of recruiting, have been chosen by their respective carriers as speakers for the 2019 SITE. The attendees also will hear a presentation from Paul Williams and ES President Jason Williams, which will take place prior to the event’s final ride-and-drive session, which will be hosted by 2019 SITE Title Sponsor Stoops Freightliner. “Over the past several months, we have been working very diligently to develop an event and programming for the Success In Trucking Expo that will be meaningful and have a positive impact for professional drivers interested in ownership as well as current owner-operators and fleet owners who are looking to grow their businesses,” said Jason Williams. “With the group of experts who will be coming to our SITE stage at the Indianapolis Motor Speedway complex, we are confident that everyone joining us for the inaugural edition of the SITE will take away the kind of knowledge and perspective that they will find helpful as they move forward in their trucking careers.” In addition to participating in the industry panel discussion, Voie will be hosting the June 8 edition of her Women In Trucking Radio Show live and on location from the SITE. The WIT Radio Show is broadcast live every Saturday on SiriusXM’s Road Dog Trucking Radio channel from 11 a.m. to 1 p.m. Eastern time. One of the unique features about the SITE is that ES is offering free hotel accommodations and free meals for pre-qualified expo registrants. A limited number of those slots are currently available for the event, and attendees receiving them will be chosen from the registration submissions ES receives. To learn more about registration for the SITE and the programming planned for the event, visit SuccessInTruckingExpo.com.