TheTrucker.com

No spring break for spot van, reefer rates

PORTLAND, Ore. — National average spot van and refrigerated freight rates slipped again during the week ending April 13 as the number of load posts fell 4% while truck posts increased 3%. The arrival of produce season in several southern markets failed to make up for the effects of more capacity in the spot market and bad weather across much of the country, said DAT Solutions, which operates the DAT network of load boards. Here are the national average spot rates: Van: $1.83/mile, 2 cents lower than the March average Flatbed: $2.37/mile, 3 cents higher than March Reefer: $2.15/mile, 2 cents lower than March Van trends How soft are spot van rates? Pricing was lower on 76 of the top 100 van lanes last week. Only 23 lanes saw rates rise and one lane was neutral. Van load-to-truck ratios have not held up after a promising start to April, with the national average sitting at 1.3 loads for every available truck. The good news is that load counts rose nearly 5% in Chicago and Houston, and more than 3% in Los Angeles last week—major markets for spot van freight. Markets to watch: Outbound rates were down from Los Angeles, Columbus, Ohio, Philadelphia, and Charlotte, North Carolina. Charlotte to Allentown, Pennsylvania, gave up 13 cents to $2.08/mile, and rates fell on two Buffalo-inbound lanes: Columbus to Buffalo, down 19 cents to $2.66/mile, and Chicago to Buffalo, off 19 cents to $2.31/mile. Reefer trends Prices rose on 38 of the top 72 reefer lanes last week. Thirty-one lanes were lower and three were neutral. Higher volume in Florida and California was balanced out by lower volume from the Upper Midwest and Texas, which hurt spot reefer pricing overall. Markets to watch: Lakeland, Florida, volumes spiked nearly 27% last week while the average outbound rate climbed 2 cents to $1.57/mile. Let’s see if Lakeland rates trace the pattern in Miami, where a big jump in volume two weeks ago was followed by a nice gain in the average outbound rate ($1.80/mile, up 13 cents). Meanwhile, several lanes from Florida and California produced strong rates: Fresno, California, to Denver up 40 cents to $2.24/mile Fresno to Boston gained 19 cents to $2.23/mile Miami to Baltimore up 29 cents to $2.00/mile Miami to Elizabeth, New Jersey, rose 15 cents to $1.82/mile The Imperial Valley is underperforming for reefer freight: last week the average outbound rate from Ontario, California, was $2.51/mile, down 8 cents, on 9% lower volume. DAT Trendlines are generated using 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/trendines and follow @LoadBoards on Twitter.

March used truck sales down 14% from last year

COLUMBUS, Ind. — Preliminary used Class 8 volumes (same dealer sales) jumped 25% month-over-month in March, following a modest decline in February, according to the latest preliminary release of the State of the Industry: U.S. Classes 3-8 Used Trucks published by ACT Research. However, the report indicated that longer-term comparisons yielded a 14% decline compared to March 2018. Other data released in ACT’s preliminary report included year-over-year comparisons for March 2019, which showed that average prices rose 7%, while average miles contracted 2%, and average age was 8% higher. “We continue to hear from dealers that the lack of inventory is a limiting factor inhibiting sales volumes, an observation corroborated by the current demand and pricing environment,” said Steve Tam, vice president at ACT Research. “Despite the impressive sequential increase, volumes remain well below last year’s year-to-date level. It is important to note that slowing growth in the freight market is also a likely contributor to the lower sales. Truckers may be getting to the point where they have the trucks necessary to meet their needed freight demand.” 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 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.    

Diesel prices continue to climb nationwide

The average price for a gallon of diesel nationwide rose 2½ cents for the week ending April 15, to stand at $3.118 per gallon, according to the U.S. Energy Information Administration (EIA). The average price for diesel is now the highest it’s been since the week before Christmas. The price increase was felt in every region of the country, although not evenly, as prices in the western third of the nation jumped considerably more than in the rest of the country. The West Coast was hit the hardest, seeing diesel prices rise 6 cents, to end the week at $3.651 per gallon. California, which usually is responsible for the heft of price increases on the West Coast, actually had less of an increase, $0.057 per gallon, than the remainder of the West Coast, where the price jumped a nation-leading $0.063. California continues to edge closer to the $4 per gallon plateau. With this week’s increase, the average price for a gallon of diesel in the Golden State is $3.967 per gallon. The Rocky Mountain region wasn’t far behind the West Coast, seeing a price increase of $0.054 per gallon, to $3.082. Heading east, the price jumps are decidedly smaller, the largest being the Gulf Coast, where diesel rose 2 cents, to finish at $2.899. The Gulf Coast continues to hold its claim to the lowest diesel prices in the nation. It is now the only region in the country where diesel remains below $3 per gallon. The Midwest and Lower Atlantic regions crept back over $3 per gallon during the past week. In both regions, diesel prices rose 1.7 cents, to finish at $3.010 in the Midwest and $3.015 in the Lower Atlantic. Elsewhere on the East Coast, diesel rose $0.018 in the Central Atlantic, to $3.342, while New England saw the smallest increase of the week, $0.012, to finish at $3.205. The average price of diesel across the entire East Coast is now $3.153. Despite this week’s increase, the year-to-year price comparison actually improved across the board, as diesel prices spiked 6.1 cents a year ago at this time. After seesawing for a couple of days, crude oil prices started Tuesday on an upswing. Brent crude, the international benchmark for oil, was up 8 cents by 9 a.m. Eastern Time,  to $71.26 a barrel, while U.S. crude gained 25 cents, to stand at $63.65. Click here for a complete list of average prices by region for the past three weeks.

Dennis Dillinger named president and CEO of Cargo Transporters

CLAREMONT, N.C. — John Pope, chairman of Cargo Transporters, said Monday Dennis Dellinger had been promoted to president and chief executive officer. “Dennis has served the company for over 30 years in various capacities,” Pope said. “Year after year, he has proven to be an outstanding leader in our organization as well as the industry. He has a vision for what his operation should be and how to achieve those goals.” Dillinger joined the company in 1986 at which time Cargo Transporters operated 36 tractors.  Previously, he held the office of president, vice president, director of operations, fleet leader, among others position. Along with his current duties at Cargo Transporters, Dillinger serves on the board of directors and is a past chairman for the North Carolina Trucking Association. He is first vice chairman and sits on the board of directors for Truckload Carriers Association. He holds two positions within the American Trucking Associations — vice president at large on the board of directors and vice chair of the Safety Policy Committee. He also sits on the advisory board of The Trucking Alliance. Dennis Dellinger, in his newly appointed position as president and CEO of Cargo Transporters announced multiple promotions within the company. Jerry Sigmon Jr. is now the chief operating officer. Sigmon joined the Cargo team in 2000. He is responsible for all the-day-to day operations, including the staff, equipment and operating systems. He has six direct reports, and is responsible for operations, recruiting, customer service and logistics. In addition to his role at Cargo Transporters, Sigmon serves on the board of directors for the North Carolina Trucking Association, where he currently holds the office of chairman. Adam Heavner has assumed the role of vice president of sales. Heavner began his career with Cargo in July 2008 after attending University North Carolina at Charlotte. Heavner will have four direct reports and is responsible for accounts receivables, pricing, rating and billing. He has previously been involved in all these areas. Jerry Sigmon, Sr. will continue, in the role of executive vice president. He will be responsible for general operation analytics, strategic planning, budgets, models and macro pricing. He began his career with Cargo Transporters in 1982 as one of the original employees of the truckload carrier and was the company’s first manager of operations.  He and his wife, Janice live in Claremont. They are the parents of two sons, Jerry Jr. and Scott and the grandparents of four. Cargo Transporters is a truckload carrier operating 525 trucks serving the continental U.S. Based in North Carolina, the company operates terminals in Claremont, Charlotte and Rocky Mount. The company employs over 700 people. For more information visit www.cargotransporters.com  

Celadon Group disposes most assets used in its Logistics business division

INDIANAPOLIS — Celadon Group said Monday that it had disposed of substantially all of the assets used in its Logistics business division in an all cash transaction. The carrier said the move was a continuation of its strategic plan to streamline operations, reduce total debt and focus on its core trucking business by completing the sale of logistics Monday with an effective financial transfer date of April 1, 2019. The purchaser was TA Services, a PS Logistics, LLC. PS Logistics is said to be a rapidly growing full-service provider of asset-based transportation, brokerage, 3PL, and supply chain services. The Celadon Logistics Division, which provides a full spectrum of freight brokerage, transportation management and warehousing solutions, contributed approximately $139 million in revenue to the company in the fiscal year ended June 30, 2018. The proceeds were used to pay transaction expenses, to reduce borrowings under the Company’s revolving credit agreement, and to provide additional liquidity. Paul Svindland, Celadon chief executive officer, said the transaction will include an ongoing strategic relationship under which Celadon will have access to the logistics platform to continue to serve customers’ needs on a revenue sharing basis as well as a commitment for the Company not to conduct independent brokerage operations. The transition of customer relationships, IT and other activities will be ongoing. Jon Russell, Celadon’s president chief operating officer and former president of Logistics, will remain a member of the company’s senior management team, while serving as a consultant to TA Services through the transition process. Post-transition, Russell is expected to become part of TA Services management team. “The sale of Logistics marks another important milestone in executing our strategic plan to simplify our business and reduce debt,” Svindland said. “Over the past several quarters, we have divested the former Quality business, the joint venture with Element, our flatbed business, our West Coast dedicated business, A&S/Buckler and now Logistics. Giving effect to these dispositions, the go-forward Celadon has returned to its roots as an asset-based truckload carrier serving the North American market, with particular focus on the eastern half of the United States and cross border traffic with Mexico and Canada.  On a pro forma basis, we remain one of the largest industry competitors, with key locations in approximately a dozen states and provinces and a consolidated annual revenue run rate of approximately $550 million. “From a leverage perspective, this transaction and our recent sale of our A&S Kinard and Buckler subsidiaries have reduced our outstanding borrowings and capital leases by approximately $185 million.  We continue to work with existing and new financing sources toward both an extension of our current facility and a longer-term capital structure that will support our ongoing operational and financial improvement efforts.” Svindland said he expected that TA Services’ significant existing footprint and resources, combined with Russell’s expertise, would provide an excellent platform for Logistics’ continued growth and dedication to excellent customer service. “We look forward to the ongoing strategic alignment between our companies and are confident in delivering continued value to our customers as well as an excellent new home for the Logistics employees.”    

Trailer orders year-over-year down, analysts report

Two U.S. companies that track, analyze and report data on the commercial vehicle industry both say preliminary data show trailer orders continue to be down year-to-date. ACT’s preliminary estimate for March 2019 net trailer orders is 15,600 units. Final volume will be available later this month. Our methodology allows us to generate a preliminary estimate of the market that should be within +/- 3% of the final order tally. FTR reports preliminary trailer orders for March 2019 at 13,500 units, plummeting to the smallest monthly total since September 2016 and the lowest March since 2008.  Recent comparisons were also very negative -43% month over month and -52% year over year. Trailers orders for the past 12 months now total 371,000 units, FTR said. “It appears that the industry entered a bit of a holding pattern in March, as order volume declined significantly from both the previous month and this time last year. Net orders dropped 35% from February and were approximately 48% below a year ago,” said Frank Maly, ACT’s director of CV transportation analysis and research. “Although current backlogs consume the majority of available build slots this year, particularly in the dry van and reefer segments, we continue to hear that OEMs are reluctant to fully open the 2020 orderboards. Their concerns center around materials and component pricing, which would obviously have measurable impact on future pricing. While some fleets appear to be willing to extend commitments, others might be waiting, monitoring current market conditions. Also worth noting, given extended backlogs, OEMs are pushing to deliver trailers as quickly as possible; preliminary information indicates production crossed the 30k unit mark last month for only the second time in industry history.” FTR said dry van orders were particularly low, with few build slots available left in 2019.  Vocational trailer orders also continue to fall.  The low level of trailer order activity in March should result in backlogs finally beginning to move down from record levels. “This low order number is not surprising,” said Don Ake, FTR vice president of commercial vehicles. “Backlogs had fallen little so far in 2019, and are at unreasonable levels. Fleets still need more trailers, based on the robust production, so demand has not changed in the short run. The weak orders are totally the result of the lack of available production openings. However, cancellations will continue to be a factor due to a large, fluid, backlog.” For more information on ACT Research, visit www.actresearch.net. For more information about the work of FTR, visit www.FTRintel.com, follow on Twitter @ftrintel, or call (888) 988-1699 Ext. 1.  8      

Trucker Tools reaches milestones, launches new feature

ORLANDO, Fla. — Trucker Tools has released what the company called “several growth milestones” and introduced new, customer-inspired features for its Smart Capacity platform and Mobile Driver App. The new features improved the platform’s predictive freight-matching, real-time capacity visibility, automated load tracking, shipper intelligence and driver support tools for independent truckers and small fleet operators, freight brokers and 3PLs, according to Prasad Gollapalli, founder and chief executive of Trucker Tools. The company announced two growth milestones. The Trucker Tools Mobile Driver App, launched in 2013, surpassed 600,000 downloads. The smart-phone-based, GPS-enabled app provides automated load-tracking and streamlined load tendering for drivers and has 16 of the most sought-after features drivers use to manage their business while on the road.  The number of “micro carriers – small fleet operators mostly with 10 trucks or less – using the app and portal also crossed the 125,000 threshold, providing brokers with a critical mass of connected, independently-operated truckload capacity, on a secure platform. In addition, since March 2018, Trucker Tools doubled the number of freight brokers and 3PLs contracted on the Smart Capacity platform, utilizing its tools for capacity and load visibility and planning, predictive freight-matching, carrier relationship development and building reliable small-carrier capacity. Gollapalli said the mobile driver app, combined with Smart Capacity’s planning functionality and real-time, accurate information on available loads and trucks, gives brokers precision intelligence on when and where trucks are available today and days into the future. The platform’s intuitive workflows dramatically compress the cycle to reliably match truck to load, saving time, and giving brokers collaboration tools with which, they can build trusted relationships with independent truckers and small fleets to improve capacity. “The significant growth of users for both our mobile app and the Smart Capacity carrier-management platform and portal demonstrates our traction in the market. We are working with our customers – carriers and brokers – to create solid technology solutions to real-world business problems they face today — and will continue to face in a market that’s evolving and changing and an unprecedented pace,” Gollapalli said. “Our focus is to be the technology provider of choice, a trusted partner that listens to [carrier and broker] needs, understands their business issues, and then develops the software applications necessary for them to adapt, grow and continue stay ahead of competitors – and their customer’s needs,” he said. Through ongoing engagement and feedback, Trucker Tools learned that drivers and brokers on the platform continually cited the need for a more automated process to shorten the cycle to find, match and accept a load with a truck. In response, Trucker Tools built and introduced “Book it Now” as the latest new feature of Smart Capacity and the mobile driver app. Book it Now is a fully automated process, preferred by carriers.  With this feature, a driver or dispatcher reviews (on their smart phone or tablet) a list of participating brokers’ available loads (with pricing) that match available capacity and are in that fleet’s or driver’s preferred lanes.  Each entry has a “Book it Now” button next to it. Once the driver/dispatcher clicks on Book it Now, the load is booked and recorded in the broker’s TMS, a confirmation email is issued to the driver/dispatcher, and the load is scheduled for pickup.  A broker’s intervention is needed only if the driver and broker want additional conversation. The broker has the option of selecting what loads go through the automated Book it Now process. They also have the option to engage with the process and more closely monitor and manage a Book it Now load, which could include talking to the carrier, confirming the rate or checking other details. “The broker can still call the carrier to confirm things like type of equipment, availability, timing and other details. However, the intelligence and process algorithms we built into the system fully automates the process.” noted said Murali Yellepeddy, Trucker Tools chief technology officer.  These and other Smart Capacity enhancements are helping brokers and carriers cover more loads in far less time than with more manual methods. “That’s time they can use to book more loads.  And drivers liked it, too, for ease of use, simplicity, transaction speed and accuracy,” he said. As part of the load-matching and auto-booking process, the Smart Capacity system continually “learns” about the carrier’s and broker’s preferences, analyzing historical data and trends, such as preferred lanes, loads and shippers. Using that intelligence, with every Book It Now confirmation email sent to the driver/dispatcher, the system also sends a suggested list of future available loads-for-tender, which reflect the driver’s preferences and are in proximity to where the current load will be delivered. “They get an advance look at available future loads, ranked with best on top, according to their history and preference,” Yellepeddy said. “It’s a tremendous advantage for the driver to know, with certainty, before even their current load is delivered, what reliable options there are for the next load down the road and when it’s available. And then to be able to accept and secure that load in advance.” This saves time and expense for the driver, who otherwise would be sitting and waiting and not making any money. Instead, the driver can plan forward and have the next load confirmed without delay. Detention time, waiting for a load or unload – without being paid — at the shipper’s facility, is the bane of every trucker’s existence. To help drivers, carriers and brokers better manage this problem, Trucker Tools has built and implemented a Detention Alerts feature. “The moment the carrier arrives and stops at the shipper’s facility, a time-stamp is issued, and a clock starts tracking wait time,” explained Yellepeddy. “This can be configured for whatever time period the broker wants, typically one or two hours. Once the wait time reaches the trigger, and alert is issued to the broker, so the broker can call the shipper and help expedite getting the driver loaded or unloaded and released.” Detention alerts can be set up with any driver on the Trucker Tools Mobile Driver App. Phase 2 of this feature, Detention Scorecards, is under development and will be implemented in June.  Scorecards will let drivers assess and grade their interactions and experience with a shipper, integrating other driver reviews, comments and photos of the shipper’s facility and loading docks. The scorecard also will incorporate historical detention trends, and driver feedback on shippers’ detention practices. “Detention history and grades will be available to anyone on the platform,” said Yellepeddy. “So, someone tracking a load, or considering an available load, can look up a current review on that shipper’s location. Drivers and dispatchers to make better informed decisions on which loads to take – avoiding those shippers who make drivers wait excessively. It also will help brokers educate shippers on where they need to improve to get a better grade and make themselves more attractive to carriers.” For more information on Trucker  Tools Smart Capacity, and the recent functionality improvements and additions, visit www.truckertools.com, call (703) 955-3560, or email us at [email protected]

Landstar names Ike Tate as 2018 Safety Officer of the Year

JACKSONVILLE, Fla. — Landstar System, a worldwide, asset-light provider of integrated transportation management solutions, presented the 2018 Landstar Safety Officer of the Year Award to independent Landstar Agent Ike Tate during Landstar’s Annual Agent Convention held recently in Marco Island, Florida. Landstar requires each of its 1,300 independent agents to name an individual responsible for the safety performance of their agency. The designated Landstar Safety Officer (LSO) promotes safe, secure and compliant driving, participates in Landstar’s network-wide monthly Safety Thursday Conference Call and supports customer safety initiatives. Each month, Landstar names one LSO of the Month, from which the Landstar Safety Officer of the Year is selected. Tate, of Charlotte Express Center, based in Charlotte, North Carolina, was first recognized as a LSO of the Month in May 2018 after hosting a Landstar safety meeting focused on the dangers of distracted driving. Charlotte Express Center also conducted three Mutual Understanding of Safety Together or M.U.S.T. customer visits during 2018. And, with more than 2.6 million Landstar business capacity owner (BCO) miles booked in 2018, the agency had no preventable accidents or cargo claims on any shipments it arranged during the year. During a ceremony held April 6, 2019, Mike Cobb, Landstar Transportation Logistics vice president of safety and compliance, presented the award to Tate. “Ike is a prime example of a true leader in safety,” Cobb said. “His agency supports its customers and community with Landstar’s safety initiatives.” Cobb said Tate, like the 11 other 2018 LSO of the Month finalists, represents an agency with an impeccable safety record, very low accident and cargo loss frequency rates, and a staff that continuously looks for ways to improve safety. “He demonstrates a constant commitment to safety by regularly participating in safety initiatives and following Landstar’s Complete and Accurate Dispatch procedures,” Cobb said.      

ACT: Freight recession possible, rate recession likely

COLUMBUS, Ind. — A freight recession is possible and a rate recession is likely, ACT Research said in a new monthly report focusing on the future of the U.S. trucking industry. The report covers the truckload, intermodal, LTL and last mile sectors. “Truckload spot rates are set to soften further because of tractor capacity additions, pulling the contract rate market down by mid-year. LTL rates will be most resilient and continue to rise due to the unique dynamics in that market, but TL and intermodal rates are heading lower,” said Tim Denoyer, ACT Research’s vice president and senior analyst. Dry van rates, net fuel, fell 15% year-over-year in the first quarter and are likely to drop 20% year-over-year in the coming months, Denover said. Freight growth has slowed materially, and it’s not just timing effects from shippers positioning around tariff threats. The headwinds to for-hire freight volumes in 2019 include tariffs, tighter financial conditions, the industrial slowdown, housing and auto softness, and fast private fleet growth, he said. “While this presents risk of a freight recession in 2019, we do expect the U..S consumer to keep volumes growing, just very slowly,” Denover said. “Critically, this slowdown in freight is happening just as truckload capacity is accelerating. After growing less than freight for most of last year, truckload capacity has accelerated to 7% year-over-year growth in early 2019. We think this is the key story behind lower spot rates and why the pricing pendulum is starting to swing to the shipper.” ACT’s Freight Forecast also includes a last mile section, which argues changing supply chains are beginning to impact equipment purchasing, though the Class 8 tractor sleeper is having quite a strong cycle. 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. For more information about ACT’s Freight Forecast, U.S. Rate and Volume Outlook click here.      

March new Class 8 truck sales up 15% over February

The decline in Class 8 truck orders the first three months of the year is not evident in the sales figures yet as OEMs continue to work through a backlog of orders that may not be filled until late this year, if even then. In March, OEMs and their dealers sold 22,884 Class 8 trucks in the United States, an increase of 15% over the previous month and 17.8% over the same month last year when sales totaled 19,384, according to WardsAuto. To date in 2019, sales are up 24.5% with 62,884 units being sold thus far compared with 50,529 for the same period in 2018. Mack recorded the largest gain month-over-month with sales of 1,623 compared with 1,163 last month, an increase of 39.6%. International had the increase in March 2019 compared to March 2018 with 3,476 sold in 2019 compared with 2,143 in March 2018. International also has the largest year-to-date increase at 43.1% with sales of 9,365 the first three months of 2019 compared with 6,546 during the same period in 2018. Freightliner leads in market share in 2019 at 40.7%, up from 37.7% the first three months of 2018.  

Employers add solid 196,000 jobs in March, but trucking loses 1,200

WASHINGTON — Hiring rebounded in March as U.S. employers added a solid 196,000 jobs, up sharply from February’s scant gain and evidence that many businesses still want to hire despite signs the economy is slowing. The Labor Department says the unemployment rate stayed at 3.8 percent, near the lowest level in almost 50 years. Wage growth slowed a bit, as average hourly pay increased 3.2 percent from a year earlier. That is down from February’s gain of 3.4 percent, which was the best in a decade. The figures suggest that February’s meager job growth, which was revised to 33,000 from an initial 20,000, was a temporary blip and that businesses are confident the economy remains on a firm footing. Still, the U.S. faces several challenges, including cautious consumers, slower growth in business investment, and a U.S.-China trade war that is contributing to slower growth overseas. For-hire trucking lost 1,200 jobs in March after gaining a meager 100 in February.

Spot van, reefer rates fall from February averages

PORTLAND, Ore. — Spot truckload freight posting volume was virtually unchanged during the week ending March 31 while the number of truck posts increased 5 percent, keeping van and reefer rates in check during the final week of March and first quarter of 2019. Last week’s relatively quiet freight market was in keeping with the rest of the month, said DAT Solutions, which operates the DAT network of load boards. National average spot rates for March 2019: Van: $1.86/mile, down 3 cents from the February average Refrigerated: $2.18/mile, also down 3 cents from February Flatbed: $2.35/mile, up 2 cents compared to February’s average Van trends The national average van load-to-truck ratio climbed to 2.3 at the end of last week but with ample capacity to meet demand, rates failed to rise. Typically the van ratio has to climb above 2.5 to 3.0 before there is sustained upward pressure on spot prices. Meanwhile, average rates on 56 of the top 100 van lanes were lower while only 38 rose. Six lanes were neutral. Markets to watch: Freight volumes out of Denver plunged yet the average outbound rate rose because of sharp increases on two high-volume lanes: Denver to Chicago increased 11 cents to $1.23/mile Denver to Phoenix gained 10 cents to $1.32/mile Reefer trends The lack of spot reefer freight is hurting prices. On the top 72 reefer lanes last week, 42 lanes were down, 24 were up, and six were unchanged. The average reefer load-to-truck ratio in March was 2.9, down from 3.7 in February. Markets to watch: Volume from the Lakeland, Fla., market gained more than 20 percent last week, and the average outbound rate ticked up 2 cents to $1.49/mile. The story was similar in Elizabeth, N.J., where higher freight volumes pushed the average outbound rate up 3 cents to $1.88/mile. The lane from Elizabeth to Boston jumped 15 cents to $3.88/mile. Weather in the Midwest and Plains is taking a toll on agricultural production and transportation. The average outbound rate from Grand Rapids, Mich., fell 19 cents to $3.06/mile, and two lanes keyed last week’s slump: Grand Rapids to Cleveland was down 31 cents to $3.83/mile Grand Rapids to Atlanta dropped 22 cents to $2.51/mile Flatbed trends At $2.39/mile, the national average spot flatbed rate has risen for five consecutive weeks. In the top 78 flatbed lanes, rates moved higher on 36 lanes while 42 were lower, although flatbed rates have increased 4 percent overall in the past two weeks. Markets to watch: Plenty of flatbed markets in the South and East experienced rising spot rates last week, and one lane in particular caught our attention: Houston to Oklahoma City jumped 38 cents to $2.55/mile. That’s a good sign for oil and gas activity. DAT Trendlines are generated using 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 load availability and rate information, visit dat.com/trendines and follow @LoadBoards on Twitter.

Orders for new Class 8 trucks dip below 16,000

Orders for new Class 8 trucks dipped below 16,000, according to the two companies that track and analyze such data. ACT Research said preliminary North America Class 8 net order data show the industry booked 15,700 units in March, dropping a moderate 6.7 percent from February, but down 66 percent from year-ago March. FTR reported preliminary North American Class 8 orders for March at 15,200 units, remaining below the 20,000 threshold for the third consecutive month.  March 2019 was the lowest March for orders since 2010. March orders were 8 percent below February and down 67 percent yuear-over-year. Class 8 orders for the past 12 months have now totaled 397,000 units, FTR said. “March marks the fourth consecutive month of orders meaningfully below the current rate of build. Over that four-month period, Class 8 orders have been booked at a 194,000 seasonally adjusted annual rate (SAAR), compared to a 489,000 SAAR for the same period a year ago,” said Steve Tam, ACT’s vice president. “Even though demand is a shadow of its former self, slowing order intake belies current conditions. Admittedly, economic and freight growth are slowing, but both are still growing. And in the context of retreat from record levels, it is no wonder truck buyers continue to pursue incremental profits, as evidenced by the number of unbuilt units in the backlog.” Don Ake, FTR vice president of commercial vehicles, said demand is still strong, but supply is limited with all of the choice build slots for 2019 filled. Fleets that need trucks are basically taking whatever is available.  Backlogs are rapidly declining, as the market tries to rebalance and establish some semblance of normality. “These are extraordinary market conditions. Most fleets ordered well in advance of their need for trucks in 2019,” Ake said. OEM production slots were scarce in 2018 and supplier constraints caused disruptions in supply, so fleets didn’t want to get shutout this year. Now so many build slots have been reserved, fleets that are currently placing orders for delivery this year don’t have many options. “Even though the economy and freight growth appear to be slowing, it has not impacted OEM line rates as of yet. Fleets are still putting more trucks in service and competing in a still decent freight market. It is expected that Class 8 sales will moderate sometime before the end of the year, as industry capacity begins to catch up with the freight surge that began in 2018.”

California federal judge dismisses lawsuit challenging independent contractor definition

SACRAMENTO, Calif. – While two trucking groups have maintained in lawsuits that a California high court’s recent decision on what constitutes an independent contractor violates federal law, makes it nearly impossible for the owner-operator model to work in the Golden State and will make their business costs skyrocket, a federal judge on March 29 dismissed one of the group’s legal challenges. Judge Morrison England of the U.S. District Court for the Eastern District of California dismissed a suit by the Western States Trucking Association, and the group said it will appeal the decision. In its 2018 Dynamex decision, the California Supreme Court established the ABC test, which says all workers are employees unless exacting requirements are met: A. That they are free from the control and direction of the hirer in the performance of their work; B. that the worker performs duties outside the normal course of the hirer’s business; and C., that the worker is usually engaged in an independently established trade, occupation or business of like nature as the work he or she is performing. Western States said in its lawsuit that those determinations are impossible for trucking companies to meet and the 2018 decision “discarded decades of settled California law,” casting doubt on “the legality of the entire trucking industry in California.” On the other hand, England wrote, nothing in the Dynamex decision “precludes a motor carrier from hiring an independent contractor for individual jobs or assignments and the increased costs alone don’t mean federal law is pre-empted.” Trucking groups and entities have argued that the Federal Aviation Administration Authorization Act (FAAAA) of 1994 prohibits states from enacting laws that affect a carrier’s prices, routes and services. But England said the argument that increased costs may result is an indirect affect on rates, not a direct one, and thus isn’t pre-empted by FAAAA. Western States said it is “looking forward to our legal arguments being heard on appeal” shortly and is “perfecting” its appeal. The association said it remains “committed to taking this question to the U.S. Supreme Court if necessary.”    

Average on-highway price of gallon of diesel drops two tenths of one cent

WASHINGTON — The average retail on-highway price of a gallon of diesel dropped two tenths of one cent to $3.078 for the week ending April 1, according to the Energy Information Administration of the Department of Energy. Nine of the U.S. regions posted declines with the largest being 1.8 cents in the New England states (Rhode Island, Connecticut, Massachusetts, New Hampshire, Vermont and Maine). Had it not been for a 3.3 cent increase in the Rocky Mountain states (Colorado, Utah, Wyoming, Idaho and Montana) the decrease would be been larger. The April 1 price is 3.6 cents higher than one year ago. For a complete list of prices by region for the past three weeks, click here.    

Bison Transport acquires Wisconsin-based H.O. Wolding

WINNIPEG, Manitoba, Canada — Bison Transport has acquired Amherst, Wisconsin-based H.O. Wolding (HOW), a 320-truck, dry van fleet with truckload operations in the midwest, northeast and southeast regions of the United States. “We are very pleased to welcome the drivers, staff and partners of HOW to the Bison family,” said Bison’s Executive Chairman Don Streuber. “From the first conversation we had with Don and Dick Wolding, I knew there was a lot our two organizations had in common surrounding drivers, customers, safety, and doing what is right.” Rob Penner, Bison Transport’s president and CEO said the HOW acquisition represented a strategic investment in U.S. domestic transportation services that will work alongside Britton Transport, another of our U.S. subsidiaries, to add scale and provide a wider breadth of services to our customers. “Our goal as the new owner is to empower HOW leadership with access to our expertise, resources and cost models. The people at HOW have built a great reputation for how they serve their customers and their team of professional drivers and we want to see that continue to thrive and grow,” Penner said “I am happy to announce that Marc Wolding has accepted the role of president of HOW. Marc, a third-generation Wolding, grew up in this business and has clearly demonstrated his leadership skills and business acumen as he helped build HOW’s reputation as a go-to carrier and an employer of choice in its operating regions.” “When Dick and I first discussed selling, we agreed that the most important factors in our decision would be the cultural fit and the commitment to the future of our people,” said Don Wolding, past-president and CEO of HOW. “In early discussions with Rob, Don and Bison Transport’s leadership team, it was clear to us that Bison was the right fit. They care about and invest in their people and they are highly focused on providing best-in-class service with reputation as being North America’s safest fleet.” Financial details of the transaction have not been disclosed. Bison Transport is one of the largest carriers in Canada, offering full truckload service, full-service logistics, intermodal, LTL, dedicated fleet operations, yard management, and warehousing and distribution. Founded by Herbert Wolding in 1935, H.O. Wolding has grown from a one-man milk route to a national dry van carrier operating across the continental U.S. with a 320-truck fleet. Family-run and operated for almost 85 years by four generations of the Wolding family.  

Bestpass expanding coverage to S.C.

ALBANY, N.Y. – Bestpass, a company that provides streamlined nationwide toll management service to commercial fleets, is expanding its coverage to South Carolina through a partnership with the Southern Connector Toll Road while simultaneously launching a powerful tolling data visualization tool. Bestpass, which already covers nearly every tolled facility in the United States, is expanding its coverage to include the Southern Connector Toll Road (I-185), a 16-mile highway that allows traffic to move more quickly and efficiently through Greenville County in upstate South Carolina. “The Southern Connector is one of the most convenient routes in the region, and as a result, we see a significant amount of commercial traffic,” said Pete Femia, president of the Southern Connector. “Partnering with Bestpass makes sound business sense. We know that they will take care of our commercial users, and we can focus our attention on other priorities.” “We were able to directly integrate with the Southern Connector’s back office, which allows us to move payments and toll data in a streamlined process that significantly benefits both the tolling authority and our thousands of customers that use the highway,” said John Andrews, president and CEO of Bestpass. Bestpass has been testing coverage on the Southern Connector with several customers and expects to make the coverage available to all users by the end of April 2019. The company is actively engaged with other tolling authorities to expand back office integration and payment processing, ultimately improving commercial toll management for both providers and end-users. Bestpass has also launched Empower, a new reporting and analytics platform that transforms vast amounts of tolling data into meaningful charts and graphs to help customers identify tolling activity trends or anomalies and make strategic business decisions. Empower takes raw tolling data and helps users visualize toll charges over time, violation occurrences, toll usage by authority, and high plate toll vehicles, with the opportunity to drill down on many other detailed data sets. “No matter the size of your fleet, the sheer volume of toll data that is available can quickly become overwhelming. We’ve always provided great value to our customers by making their toll data more manageable, and Empower is the next level of toll data management,” Andrews said. Several Bestpass customers are already using Empower, and the company expects to roll the new platform out to all its fleet customers by the end of June 2019.    

ZF enters into agreement to acquire Wabco

FRIEDRICHSHAFEN, Germany — ZF Friedrichshafen AG, a global technology group and supplier of mobility systems for passenger cars, commercial vehicles and industrial technology, has entered into a definitive agreement to acquire Wabco for $136.50 per share. The planned acquisition has been approved by ZF’s management board and supervisory board and Wabco’s board of directors. Together, ZF and Wabco will form a global integrated mobility systems provider for commercial vehicles, creating added value for ZF’s commercial vehicle customers. The combined company will have sales of approximately $44 billion. Wabco is a global supplier of braking control systems, technologies and services that are designed to improve safety, efficiency and connectivity of commercial vehicles including trucks, buses and trailers. Its diverse products and services include integrated braking systems and stability control, air suspension systems, transmission automation controls, as well as aerodynamics, telematics, and fleet management solutions. Wabco generated $3.7 billion in revenues in 2018 and has some 16,000 employees in 40 countries. “We believe that, together with Wabco, ZF can form the world’s leading integrated systems provider for commercial vehicle technology, creating long-term value and security for its customers, employees and owners,” said Wolf-Henning Scheider, CEO of ZF. “For ZF the acquisition of a specialist and leader for commercial vehicle braking systems means adding a stable and growing business segment and enables our existing commercial vehicle division to expand its expertise in vehicle dynamics control. This will create the foundation for ZF to offer comprehensive systems for safe and automated mobility solutions for passengers and goods to our customers.” Jacques Esculier, chairman and CEO of Wabco said joining forces with ZF will create a leading global technology company well positioned to capitalize on future demand for autonomous, efficient and connected commercial vehicles. “We have a long history of successful collaboration to develop innovative technologies with ZF with both companies sharing an uncompromising drive for excellence, passion for innovation, and exceptional customer focus,” he said. Scheider said the planned acquisition is part of ZF’s Next Generation Mobility strategy and will expand the company’s expertise to include commercial vehicle braking solutions for the first time. “This plays a central role for the control of automated driving functions – including emergency braking maneuvers of trucks and trailers,” he said. Following the acquisition, customers of both companies will have a partner in ZF who can offer them a fully integrated system approach, new drive systems for E-Mobility and autonomous driving functions, the company said in a news release, adding that ZD expects that automated driving functions will primarily be implemented for commercial vehicles and in areas with low complexity and traffic (e.g. factory sites, airports, agriculture). The combination of both businesses is expected to further accelerate the development of new technologies to enable autonomous commercial vehicle functions, making ZF less dependent on the economic cycle of the passenger car industry. The planned strategic acquisition of Wabco is consistent with ZF’s goal to develop and deliver technology solutions that make cars and commercial vehicles see, think and act in order to reduce emissions and increase road safety. While ZF already has sensor systems and computing technology for its “see“ and “think” competence, together with Wabco ZF will in future be completing the portfolio for commercial vehicle technologies to offer solutions to allow vehicles to “act”. ZF is already a leading supplier in the area of steering and driveline technology.