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MINNEAPOLIS — The U.S. Bank Freight Payment Index, a tool designed to assess the current state of the freight industry in the United States, showed signs of a spending rebound compared to the third quarter in 2018, with indications that growth will continue, but at a slower rate in 2019. Solid holiday sales, increases in wages and employment and better-than-expected container volumes into West Coast ports contributed to the rebound, according to Bob Costello, a freight industry analyst and chief economist for the American Trucking Associations. Costello found that higher shipping and spending volumes into West Coast ports were likely a result of companies ordering their imports from China earlier than usual, as tariffs on many goods were expected to rise from 10 percent to 25 percent in early 2019. Many shippers had already imported products in the last quarter of 2018 to avoid paying the higher rate in the new year. “The nice rebound from the slower third quarter shows that the current economic growth cycle is not at risk of ending soon,” said Costello. “However, the indexes still indicate that trucking, as well as the broader economy, should expect decelerating growth rates in the quarters ahead due to tariff tax increases, driver shortages and possible interest rate hikes.” The Northeast saw an increase in shipments and spending in the last quarter of 2018, which can be attributed to holiday sales volumes in this population dense region. The Midwest, Southeast and Southwest regions had declines in shipments due to a variety of factors such as lower than expected construction activities and predictions of moderate auto production in 2019. Specific regional data can be found in the index. “Freight companies have dealt with a variety of industry challenges throughout the year, and the index reinforces what we’ve heard from customers and what uncertainties we can see in 2019. At U.S. Bank, we have the benefit of working with customers from industries of all types, and can put that knowledge and insight to work for our transportation customers. Now is the time to think ahead and position businesses in a way that makes the uncertainty less of a factor on the end results,” said Bobby Holland, U.S. Bank vice president and director of Freight Data Solutions. U.S. Bank pioneered electronic freight payment more than 20 years ago. The U.S. Bank Freight Payment Index measures quantitative changes in freight shipments and spend activity based on data from transactions processed through U.S. Bank Freight Payment. The business processed more than $27.6 billion in 2018 for some of the world’s largest corporations and government agencies.  

PORTLAND, Ore. — Truckload capacity continues to build in the first weeks of 2019, and national average spot rates for dry van, reefers, and flatbeds continue to decline. In a typical seasonal slump, the number of trucks on the spot truckload freight market increased 7.4 percent while the number of loads dipped 10 percent during the week ending January 19, said DAT Solutions, which operates the DAT network of load boards. National average spot rates declined for the second straight week: Van: $2.01/mile, down 4 cents Flatbed: $2.38/mile, down 4 cents Reefer: $2.37/mile, down 5 cents VAN TRENDS Van truck posts on DAT load boards increased 8 percent compared to the previous week, while load posts declined 13 percent. That caused the van load-to-truck ratio to drop 19 percent from 4.6 to 3.7 loads per truck. That’s the lowest van load-to-truck ratio in eight months. The worst drops in rates in the past month have been from the West Coast, where average outbound spot rates from Los Angeles and Seattle are down double digits since December. This is not unexpected, as the threat of higher tariffs pushed higher ocean volumes to U.S. shores during the fourth quarter of 2018. FLATBED TRENDS Flatbed load posts on DAT load boards fell 2 percent while truck posts increased 13 percent. The national flatbed load-to-truck ratio fell from 25.1 to 21.7 loads per truck. REEFER TRENDS Last week truck posts increased 5 percent while load posts fell 15 percent, which caused the load-to-truck ratio to drop from 6.1 to 4.9 loads per truck. It’s been more than six months since the load-to-truck ratio has been below 5 loads per truck. Average spot rates were down on several key regional reefer lanes and major markets across the country. Los Angeles: $2.92/mile, down 11 cents after an 18-cent decline the previous week Atlanta: $2.56/mile, down 5 cents Lakeland, Florida: $1.46/mile, down 9 cents McAllen, Texas: $2.24/mile, down 7 cents Philadelphia: $2.90/mile, down 5 cents Chicago: $2.80/mile, down 14 cents after falling 13 cents the previous week 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 http://dat.com/trendlines and follow @LoadBoards on Twitter.

COLUMBUS, Ind. — According to the recently released ACT Research’s Transportation Digest, the Class 8 truck market started 2019 with powerful positive momentum from a remarkable and record-setting 2018. In the Classes 5-7 market, the truck segment made yet another out-sized contribution to the total medium duty market, perpetuating its growth. In other news, same dealer sales of used Class 8 equipment took a larger-than-expected hit in November, and trailer orders, while solid, are not following a normal seasonal path. The report, which combines ACT’s proprietary data analysis across a wide variety of industry sources to paint a comprehensive picture of trends in transportation and commercial vehicle markets, also showed that U.S. economic growth in 2019 is expected to decelerate as monetary policy and supply have become less accommodating even as the benefits of the Tax Cut and Jobs Act diminish. “While economic pressures and uncertainty have caused some to raise the specter of a recession, starting in 2019, we think that projecting a recession at this point is premature,” said Kenny Vieth, ACT’s president and senior analyst. “Even though there are signs of weakness, there are also signs of continued strength, not least is the robust December labor market report. That said, we are not suggesting there is no basis for concern, but the weakness of economic activity we project has led us to expect ‘sectoral recessions’” Regarding the Class 8 market, Vieth said the heavy-duty truck market is maintaining its momentum, but the critical question at this point regards cycle duration. “We are working to interpret the meaning of falling stock markets, the flight to safety in bonds, the downward spiral in energy and industrial commodity prices, and accumulating evidence of a global slowdown, which have caused the perspectives on the next six to eight quarters to become hazy, with downside risks,” 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. More information can be found at www.actresearch.net.

ARLINGTON, Va. — American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index increased 6.6 percent in all of 2018 – the largest annual gain since 1998 (10.1 percent) and significantly better than the 3.8 percent increase in 2017. That annual gain was realized despite a decrease of 4.3 percent in December to 111.9, down from November’s level of 116.9. “The good news is that 2018 was a banner year for truck tonnage, witnessing the largest annual increase we’ve seen in two decades,” said ATA Chief Economist Bob Costello. “With that said, there is evidence that the industry and economy is moderating as tonnage fell a combined total of 5.6 percent in October and November after hitting an all-time high in October.” November’s change over the previous month was revised down to -1.3 percent (+0.4 percent was originally reported in our press release on December 18). Compared with December 2017, the SA index increased 1.4 percent, the smallest year-over-year increase in 2018. In November, the index was 5.8 percent above the same month in 2017. The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 107.8 in December, which was 7.8 percent below the previous month (117). In calculating the index, 100 represents 2015. Trucking serves as a barometer of the U.S. economy, representing 70.2 percent 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 percent 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 10th day of the month. The report includes month-to-month and year-over-year results, relevant economic comparisons and key financial indicators.

COLUMBUS, Ind. — The latest release of ACT Research’s For-Hire Trucking Index showed the Volume Index still in negative territory below the 50 neutral mark in December at 48.1. The supply-demand balance turned down even further, hitting 44.3 on a seasonally-adjusted basis. “The volume softness was likely due in part to the unusual tariff-related inventory build that sat at near-port warehouses,” said Tim Denoyer, ACT Research’s vice president and senior analyst.  “After tightening a bit in October, the November and December readings show the loosest industry supply-demand balance since April of 2016. Both accelerating Class 8 tractor production and slowing freight growth are likely to loosen the supply-demand balance as we approach the 2019 contract rate season.” The December fleet purchase intentions reading indicated a drop in equipment demand, with 51.6  percent of respondents planning to buy trucks in the next three months, down from 64.1 percent (SA) in November, Denover said. “After record orders last year, this series should rebound as long lead-time truck orders are built and hit the highways,” he said. ACT is a publisher of new and used commercial vehicle (CV) industry data, market analysis and forecasting services for the North American market, as well as the U.S. tractor-trailer market and the China CV market. For more information, visit www.actresearch.net.

CHATTANOOGA, Tenn. — U.S. Xpress Enterprises says it is planning to exit its U.S.- Mexico cross border investment as part of its ongoing capital allocation and profit improvement initiatives. When fully implemented, the plan is expected to reduce current and planned invested capital by approximately $40.million, improve the company’s consolidated operating margin, and offer customers continued access to cross border service through a variable cost alternative, according to Eric Fuller, president and CEO. In connection with this plan, as well as the disposition of its remaining 10 percent equity investment in a former subsidiary, the company expects to record an approximate $12.3 million non-cash, pre-tax loss on equity investments for the fourth quarter of 2018. These changes mark the latest step in the company’s continued execution of its strategic overhaul designed to drive operational improvement as U.S. Xpress strives to deliver its third consecutive year of margin improvement in 2019, Fuller said, adding that the plan will be executed in stages over the next several months. “As part of our ongoing initiatives to improve profitability and enhance shareholder returns, we evaluated our aggregate investment in our U.S.-Mexico operations, including investments south of the border, in Laredo, Texas, and in U.S. assets and personnel required to service this business,” Fuller said. “We concluded that these operations required a comparatively high level of fixed investment per unit of revenue and created lane inefficiency in the U.S., because serving freight to and from the border did not maximize revenue per mile or meet our other network planning priorities. During 2018, the combined Mexico and allocated U.S. operations failed to keep pace with improvements in the Company’s U.S. OTR and Dedicated truckload operations. As a result, the decision to exit this operation was identified as a relatively high return, simple execution initiative. This strategic decision reflects the latest step in the company’s transformation as we methodically evaluate our capital allocation, improve our operational execution, and target industry-leading profitability.” The company’s cross border business consists of 95 percent equity ownership in Xpress Internacional, S.A. de C.V. In addition, to serve the business the company maintains fixed investments in the United States consisting of a trucking terminal in Laredo, Texas, approximately 700 incremental dry van trailers, and tractor capacity allocated toward serving freight to and from the border. Including the allocated cost of the U.S. investments and personnel, the cross-border business generated approximately $50 million in revenue but insignificant operating income in 2018. Fuller said as part of U.S. Xpress’s ongoing transformation, the carrier made the decision to exit its fixed cost investment in the cross border business and sold its investment in the Mexican entity to the existing managers. The operational transition is expected to be complete during the second quarter of 2019. The exit involves the following components, which will be executed over the next several months: Sale of the company’s 95 percent equity ownership of Xpress Internacional S.A de C.V., for an estimated $4.5 million in cash and an additional $8.5 million in cash to be received over 8.5 years. The equity sale has been completed. Closing and sale of the company’s trucking terminal in Laredo, Texas, and disposition of approximately 700 dry van trailers allocated toward the Mexico business as these trailers complete the transition phase. The terminal is valued at an estimated $7 million, and the trailers had been slated for replacement over the next two years at an estimated cost of $20.0 million. This operational transition is anticipated to be completed during 2019. Repositioning approximately 300 domestic tractors from loads to and from the border to more profitable loads through network optimization over a transition period, while continuing to offer customers ongoing access to cross-border service on a variable cost basis through relationships with our former partners, anticipated to be completed in the first half of 2019. Fuller said U.S. Xpress expects to record a non-cash, pre-tax charge of approximately $12.3 million in the fourth quarter of 2018 to reflect the write down of the total investment in Xpress Internacional, which U.S. Xpress had operated since 2007. In addition, the company expects to incur one-time expenses during the first quarter of 2019 related to the transition plan to shut down its domestic infrastructure that supported the cross-border business, this expense is not expected to exceed $4.0 million on a pre-tax basis.

ADDISON, Texas — Daseke, a flatbed and specialized transportation and logistics provider in North America, has named Chris Easter as the company’s chief operating officer. Easter brings Daseke more than 30 years of operational leadership serving in key transportation and logistics roles with the United States Army, Walmart and Schneider National. For the past six years, he served as CEO of Keen Transport, a specialized transportation, warehouse, and logistics company focused on serving the industrial equipment market. During more than a decade with Walmart, he was responsible for overseeing the transportation of goods from around the world. Easter graduated from the United States Military Academy at West Point; he then served in the U.S. Army, where he was a leader in heavy machinery logistics. Easter was awarded the Bronze Star during Operation Desert Storm. Believing in giving back to the industry, he serves the industry on the Board of Directors for the Specialized Carriers and Rigging Association (SC&RA). As COO, Easter will be responsible for overseeing the industry-leading scale that Daseke has built over the last decade-plus, according to Don Daseke, chairman and CEO. His efforts will be geared towards driving organic revenue growth, expanding EBITDA margins and maximizing free cash flow, Daseke said. “Chris Easter’s in-depth knowledge of flatbed and specialized transportation, broad background in large- scale logistics, and proven ability to build and lead teams gives me great confidence in the bright future for both Chris and Daseke,” Daseke said “He has gained my respect, as we have built our relationship over the past several years. Daseke has the deepest management talent bench in flatbed and specialized transportation. Chris is the right person to lead our operations and develop our people’s talent as we fully leverage the scale we have built.” “I’ve watched Don and the Daseke team build an exceptional organization focused on flatbed and specialized transportation and logistics, to where Daseke is uniquely positioned and respected in the marketplace,” Easter said. “I am excited to work with the entire team to enhance our growth while continuing to deliver superior customer service.”  8

ST. LOUIS — December was a month of growing uncertainty and severe declines in the U.S. financial markets as equity valuations fell (the Dow Jones fell from 25,826 on December 3 to as low as 21,792 on December 24), most commodity prices continued to be weak (oil, copper, lumber, etc.), and interest rates declined (after peaking at 3.24 percent on November 8, the 10-year Treasury yield fell from 3.01 percent on November 30 to 2.56 percent on January 3). Large multi-national companies lowered guidance and blamed slowing rates of activity in Europe and — to a lesser extent — Asia. Trade talks with China continued without resolution, and indications that the Chinese economy is beginning to suffer began to leak out. But despite all the “hand-wringing” on Wall Street, the transportation economy continues to signal economic expansion, according to the December Cass Information Systems Freight Index Report prepared by Donald Broughton, founder and managing partner of Broughton Capital, a deep data-driven quantimental economic and equity research firm. “The uninfluenced-by-human-emotion hard data of physical goods flow confirms that people are still making things, shipping things and buying/consuming things, perhaps not at the scorching pace attained earlier this year, but still at an above-average pace,” Broughton wrote. The report said industry stakeholders were not yet alarmed about the volume of shipments going negative for the first time in 24 months (-0.8 percent in the month of December), in part because December 2017 was an all-time high for the month, and in part because of the stabilizing patterns seen in almost all of the underlying freight flows. “However, we would be negligent if we did not acknowledge as we did in last month’s report two storm clouds on the economic horizon,” Broughton said. Those are: The tariffs and threats of even higher tariffs with China, the world’s second-largest economy (even though the latest headlines and tweets suggest that there may be a resolution). Tariffs have throttled volumes in some areas of the U.S. economy, most notably agriculture exports and other select raw materials. The decline in WTI crude in December to as low as $42.50 a barrel. “This did not fall below the marginal cost of production for fracked crude in almost all areas of the U.S., but it made it less profitable and significantly lowered the incentive to drill ever more holes, effectively slowing the rate of growth in the industrial economy,” Broughton said, noting that crude’s recent rally (above $52 in mid-January) gives transportation a momentary sigh of relief. “Continued strength in the price of crude makes us more confident in our positive outlook for the U.S. industrial economy and less worried about global demand,” Broughton said. “With all of 2018 ‘in the record books,’ it is clear that 2018 was an extraordinarily strong year for transportation and the economy,” Broughton said. “Every month from March to October exceeded all levels attained in all months in 2014 (a very strong year), while February was roughly equal to the peak month in 2014 (June 2014 – 1.201 vs February 2018 – 1.198), which is extraordinary.” The Cass Expenditures Index is signaling continued overall pricing power for those in the marketplace who move freight. Demand is exceeding capacity in most modes of transportation by a material amount. In turn, pricing power has erupted in those modes to levels that spark overall inflationary concerns in the broader economy. With the Expenditures Index up 10.0 percent in December, Broughton said, Cass understood the concerns about inflation, but are comforted by four factors: Almost all modes of transportation are using the current environment of pricing power to create capacity, which will first dampen and eventually kill pricing power Spot pricing (not including fuel surcharges) in all three modes of truckload freight (dry van, reefer, and flatbed) has already been falling for six months The cost of fuel (and resulting fuel surcharges) is included in the Expenditures Index, and the cost of diesel was up 6.6 percent in December (but has been steadily falling in recent weeks, suggesting lower fuel surcharges in coming weeks), and Whether driven by capacity addition/creation or lower fuel surcharges — or a combination of both (our best guess) — the Expenditures Index was sequentially declining, before sequentially improving slightly (up 1.9 percent in December). The November Index was already down 4.9 percent from its peak in September, and down 2.4 percent from October. To view the full report, click here.          

COLUMBUS, Ind. – The desire to get Class 8 trucks built and out the door for 2018 taxation benefits drove a build plan beat in December, according to ACT Research’s (ACT) latest State of the Industry: Classes 5-8 Report. “Heavy-duty build rose 4,500 units above the plan in December, and we assume the surge was largely overtime based,” said Kenny Vieth, ACT Research president and senior analyst. “Indicative of current market strength, cancellations, which had been elevated, dropped to a five-month low.” The report also noted that macro-economic indicators are flashing yellow, with concerns ranging from tariffs and trade wars to a global economic slowdown and falling commodity prices, as well as a flat yield curve, quantitative tightening, and sharply lower equity valuations. OEMs experienced their best month of 2918 in December when the sale of 26,083 Class 8 trucks pushed the 2018 total to 250,627 units, an increase of 30.4 percent over 2017 when 192,243 units were sold, according to data provided by WardsAuto. Regarding the medium duty markets, Vieth commented, “An in-line build rate allowed the medium duty backlog to end the year at a 12-plus year high, with benign cancellations. Unlike the heavy-duty segment, however, medium duty inventories remain elevated.” 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.          

This article first appeared in Truckload Authority, the magazine of the Truckload Carriers Association. The Freymiller family must be sorry to see 2018 come to an end. It was a milestone year, the 50th anniversary of Don Freymiller buying his first truck, a livestock hauler. Today, Freymiller, Inc. specializes in refrigerated cargo, with a fleet of about 540 units operating nationwide. Don Freymiller is still on board as company chairman. His son Dennis Freymiller is vice president of sales and marketing, daughter Diane is billing and accounts receivable manager, daughter Denise is facilities manager, while David Freymiller serves as president and CEO. The company can also claim the rare distinction of having three TCA past-chairmen in its midst: Don Freymiller; along with Shepard Dunn, who recently came on board as chief operating officer; and Gary Baumhover. This past year has been a time to celebrate and to reflect, David Freymiller said, and he is happy to share the company history — or is it the family history? The two are intertwined. “Trucking is all we know,” he said. “Trucking is all dad taught us.” The learning never ends as the company has grown and the industry evolves. But there’s something at the core of Freymiller, Inc., a value system that has remained constant. After 50 years, the celebration is both for what’s changed and what hasn’t. Don Freymiller grew up on a dairy farm in Wisconsin. “It was a hard life,” David Freymiller said. “He and his father farmed about 200 acres of rock, as Dad would describe it.” After high school, Don Freymiller did a stint in the Army. After his discharge, he reluctantly returned to run the family farm. During a winter slowdown, David Freymiller said, “he took a side job, hauling livestock to Milwaukee.” “The guy said, ‘you drive a truck?’ Dad said, ‘yeah,’ — Dad never drove a truck in his life. And the guy said, ‘Good, show up tonight and take this load to Milwaukee.’” Don Freymiller eventually bought that truck. Then he bought a few more. In the early ’70s, he bought his first refrigerated unit, which he used to haul canned hams to California. Over the next few years, Freymiller, Inc. transitioned entirely over to reefers. But it wasn’t a straight line to the company that exists today. “In 1980 we moved from Shullsberg, Wisconsin, to Bakersfield, California,” Freymiller said. The company had 53 trucks at the time, but they struggled over next decade, eventually going into bankruptcy in the early ’90s, pushing them almost back to square one. They moved the company headquarters to Oklahoma City, and “In October of ’96 we basically started back up again with 10 trucks,” Freymiller said. “We’ve gone from nothing to something, back to nothing, and then back to something again.” Specializing in reefers has its advantages and its challenges, Freymiller explained, and both have to do with the fact that the vast bulk of reefer freight is food. “We’re extremely heavy in protein,” Freymiller said. “We haul a lot of meat, whether it be chicken, whether it be steaks.” Protein accounts for more than half the tonnage they haul, followed by frozen pies and pastries, then produce. During economic downturns, people may cut back on a lot of things, Freymiller said, but, to put it bluntly for effect, “People gotta eat.” “Whether times are good or bad, they’re going to eat. So refrigerated, with no pun, is somewhat insulated from the economy.” Everyone needs food, but most meat processing is done in the Midwest, he explained. That means long hauls to get it everywhere in the country. In an era when average length-of-haul is going down industrywide, “our average length-of-haul is right at 1,000 miles,” he said. And they consistently run heavy. Freymiller estimated that about 90 percent of their loads bump right up against that 80,000-pound limit. And those long, heavy hauls must stick to schedule. “If you’re hauling washers and dryers, and you’re six, eight, 10 hours late because the truck broke down, it’s not a big deal,” Freymiller said. “But if you’re hauling a load of meat, and it’s being exported and you miss the boat, that meat is pretty much junk.” And as they keep one eye on the clock, the other is on the thermometer. If the temperature inside the trailer is off by just a few degrees, it can ruin the entire load. Today’s telematics make a world of difference in monitoring and regulating the refrigeration in their trucks, he said. But as much as technology continues to enhance efficiency, Freymiller said, it’s still the people operating that fleet that hold the key to a successful operation. A reefer can cost up to three times as much as a dry van, Freymiller said, and a company can realistically run a dry van for 10 years or more. Freymiller turns its trailers every five years. “We run pretty much Peterbilts and Kenworths,” Freymiller said. “They got all the bells and whistles.” His father shakes his head at some of the amenities in today’s sleeper cabs. “A lot of it is the kind of stuff that does nothing to help business, except that it makes for happier drivers.” Employee satisfaction is a top priority, Freymiller said. “We are the truckers’ trucking company. That goes back to Day One.” His dad started in the business as a driver, he said. And he still has his CDL. For his 80th birthday, Don Freymiller’s present to himself was to take a load out. Both David and his brother Dennis drove when they started. Their perspective on the business was first formed behind the wheel. “Without the driver, we’re nothing,” Freymiller said. “Their job is the only job in the company that generates the revenue. The rest of us are overhead.” A lot of companies like to refer to their staff as a “family.” Freymiller, Inc. is literally a family company, and it has always been a priority to extend that sense of family to everyone on the staff. Don Freymiller has a longstanding tradition of calling every driver on their birthday, David Freymiller said, and their doors are always open for any driver who needs to hash something out. “A lot of times, if you listen to a driver, you don’t have to fix anything, you just have to listen to them. And when they walk out, they’re happy.” For the sake of their employees’ wellbeing, the company also has its own in-house pastor. Olen Thompson holds chapel every Sunday, and he is available for consultation the rest of the week. Freymiller said the way he sees it, it’s much better to have drivers take to the road in tune with their spiritual side rather than “mad at the world and filled with road rage.” “He was a truck driver, so he can relate to the drivers because he’s been in their shoes,” Freymiller said. Not too many companies pass successfully from one generation to the next, Freymiller said. “Usually, the second generation screws it up.” It appears he and his siblings have pulled it off, even as the company grows and the industry and its technology evolve. As David Freymiller explains it, the key is keeping up with the changes while having the confidence and the humility to know that even when you are the decision-maker, outcomes depend on a lot of factors. “It’s just good luck, perseverance, the Good Lord and all of our employees, because you can’t do it without the foundation.”

By CLIFF ABBOTT/The Trucker Staff “Did you see that idiot?” Drivers who still use CB radios often hear things like that. Chances are you have said something like that about another motorist. Or, maybe it was, “Those #&%@* four-wheelers!” Increasingly, you’ll hear statements about other professional drivers, usually with a label of “steering wheel holder” or worse. Chances are someone has made a similar comment about your driving, too. Years of defensive driving training have taught us to anticipate the actions of other drivers and to take measures to keep them from involving us in a collision. We are indoctrinated to drive defensively. A paradigm shift begins to occur when we remove the negative thoughts from our assessment of other drivers. While it may be true that the driver of that “#&%@* four-wheeler” does not possess driving skills on par with our own, it might also be true that the driver is having a serious emotional problem. Or it could be an elderly person who doesn’t have the eyesight or reflexes he once had. Or it could be a person driving under the influence who made a bad decision or two. If you’re thinking that those circumstances don’t excuse their unsafe driving, you’re right. The point is, until the robots take over, every driver is also a person, a person who might be a mother, father. They could be someone’s wife or child, a friend, relative, mentor or fiancée – YOUR friend, relative or loved one. If you took a poll asking people to rank their driving skills as “above average,” “average” or “below average,” it’s doubtful the results would mirror their actual driving skills. Few drivers would admit that their abilities are “below average,” but, mathematically we know that at least half the drivers on the roads are average or below. If our mindset changes from one of “defending” ourselves from these drivers to one of protecting everyone, including ourselves and those other drivers, we can make the roads safer for everyone. One aspect of this mindset is to understand how our actions might be perceived by other drivers. A left turn in front of oncoming traffic is an example. We might assume that the drivers coming towards us see our vehicle and will, if necessary, slow down to avoid a collision. But, what if they don’t? Could an oncoming driver be fatigued or under the influence of some substance? Could they be distracted by a passenger, pet, or even a text message? We can argue, after the fact, that their actions contributed to the collision, but it’s still a collision we might have prevented. Another example might be the ubiquitous merging onramp. We know that oncoming traffic should yield to our vehicle and is usually, legally required to yield. We know that some won’t, rolling down the ramp until a collision is imminent before cutting in front of our vehicle or braking and falling in behind. Those drivers cause muttering and sputtering and negative comments, and sometimes they cause accidents, too. But, again, we can anticipate the actions of the other driver and take action to protect ourselves and the driver and occupants of the other vehicle from a collision. A lane change or a speed adjustment might make the situation safer for everyone, even if the other driver is at fault for causing the situation. Traveling in the center lane of a three-lane Interstate highway is another example. Many drivers believe, and are trained to believe, that the center lane is safest because the right lane is left open for merging traffic and the left is available for faster traffic to pass. Except we know that some will pass on the right. It’s wrong and it’s dangerous – and it happens all the time. And those other vehicles that are changing lanes multiple times to get around our tractor-trailer are causing a hazardous situation for others. Once outside of an urban area, it might be safer for everyone to choose the right lane. Every professional driver encounters these and other situations daily. Some will scoff at these simple examples and may even be moved to send emails or letters to the editor, explaining the right and wrong of each situation. The reality, however, remains. When someone dies in a collision, does it really matter who had the right of way? The safety people, insurance companies and courts will ultimately decide who was at fault, but no driver wants to spend a lifetime knowing that a death occurred that he or she could have prevented, even if the deceased person was “wrong.” If you can do so without endangering yourself, let the other driver “win.” It’s doubtful they’ll appreciate your actions or even notice, but you’ll know.  You’ll have more than the knowledge that you defended yourself against an accident. You’ll know that your decision(s) may well have saved lives. You’ll know that you helped the kids in the back seat of that “#&%@* four-wheeler” get home safely, even if you don’t respect the driving skills of the person behind the wheel. Because when we all get home safely, everybody wins.

COLUMBUS, Ind. — Preliminary used Class 8 volumes (same dealer sales) slipped for a second consecutive month in December with a 7 percent decline, marking the first time since January 2016 that same dealer sales have fallen below 2,000 units, 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 this is not particularly concerning, in and of itself. Other data released in ACT’s preliminary report included year-to-date comparisons for December 2018, which showed that volume was up 8 percent compared to the end of 2017. The average price rose 13 percent year-to-date, while average miles were flat. Average age improved but was still 3 percent below year-to-date December 2017. “Stories of a white-hot market abound, with many dealers commenting that they do not have sufficient inventory to meet demand,” said Steve Tam, vice president at ACT Research. “However, in the context of increasing general economic uncertainty, slowing freight growth, and softening new truck demand, lower used truck sales beg the question of whether demand is waning, supply is wanting, or the reality lies somewhere between. If used truck pricing is any indication, and we believe that it is, demand is still easily outpacing supply.” 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).    

PORTLAND, Ore. — The number of available trucks on the spot truckload freight market jumped 77 percent during the week ending January 12, well ahead of the 9 percent gain in available loads, according to DAT Solutions, which operates the DAT network of load boards. The surge in capacity and less urgency on the part of shippers knocked down national average rates for dry van, refrigerated and flatbed freight: Van: $2.05/mile, down 6 cents Flatbed: $2.42/mile, down 4 cents Reefer: $2.42/mile, down 5 cents Lower fuel surcharges also contributed to the decline in rates. The average price of on-highway diesel was $2.97 per gallon on Jan. 14, down 4 cents compared to the previous week. Van Trends Van truck posts on DAT load boards surged 83 percent while load posts declined 5 percent. The van load-to-truck ratio dropped 48 percent from 8.9 to 4.6 loads per truck. Rates were lower on 84 of the top 100 van lanes by volume. Average outbound van rates from Philadelphia (-6.4 percent), Stockton (-5.6 percent), Los Angeles (-6.6 percent), and Seattle (-6.5 percent) were all trending lower; notably, these markets handle ocean cargo. Flatbed trends Flatbed load posts on DAT load boards increased 44 percent last week while truck posts surged 94 percent. As a result, the national flatbed load-to-truck ratio fell 26 percent from 33.7 to 25.1 loads per truck. Reefer trends Reefer capacity bounced back last week as truck posts jumped 57 percent. The number of load posts declined 3 percent, however, which caused the reefer load-to-truck ratio to fall 38 percent from 9.8 to 6.1 loads per truck. Average spot rates were down on 62 of the top 72 reefer lanes, and average outbound rates fell sharply in many major markets: Los Angeles: $3.03/mile, down 18 cents Atlanta: $2.60/mile, down 14 cents McAllen, Texas: $2.33/mile, down 15 cents Dallas: $2.20/mile, down 19 cents Philadelphia: $2.96/mile, down 11 cents Chicago: $2.93/mile, down 13 cents Nogales, Arizona, which borders Mexico, was a big gainer the previous week, but saw lane-rates drop significantly: Nogales-Dallas: $2.51/mile, down 86 cents Nogales-Brooklyn: $2.56/mile, down 51 cents Nogales-Los Angeles: $2.53/mile, down 47 cents Volumes will likely continue to trend at lower levels until produce season breaks in southern California, Florida, and other key markets. 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 http://dat.com/trendlines and follow @LoadBoards on Twitter.    

FORT SMITH, Ark. — ArcBest has named its less-than-truckload carrier ABF Freight’s has named members of the 2019 ABF Freight Load Team. The ABF Freight Load Team is an elite group of freight-handling professionals from service centers throughout North America, according to Andy Upchurch, ABF vice president-service center operations. The 2019 ABF Freight Load Team members  Jim Bavolacco, Stratford, Connecticut; Gordon English, Dallas, Texas; Jeffrey Fuller, Sacramento, California; John Gibson, Charleston, West Virginia; Eugene Gray, Memphis, Tennessee; Russell Holland, Fort Worth, Texas; Rich Jones, South Bend, Indiana; Gyah Kekula, Atlanta, Georgia; Johnny Ketelaar, Little Rock, Arkansas; Michael Krause, South Chicago, Illinois; Chris Martin, Dayton, Ohio; Stacy McKinsey, Norfolk, Virginia; Darrell Mielke, Albuquerque, New Mexico; Mike Meyer, Denver, Colorado; Adam Myers, Carlisle, Pennsylvania; Dan O’Connell, Omaha, Nebraska; Randall Ross, Kansas City, Missouri; Martin Ruiz, Salt Lake City, Utah; and Roy Word, Winston-Salem, North Carolina. “Again this year, our Load Team members provided us with some great suggestions to improve our cargo handling, including some tips we intend to incorporate into our new hire training,” Upchurch said. “I could not be more pleased with the can-do, customer-driven attitude that this team exemplifies every day.” ABF Freight Load Team members are chosen based on their safety records, their involvement in the Quality Process, their personal integrity and their ability to load trailers in an optimal fashion. ABF Freight established its Load Team in 1994 to honor outstanding performance and draw upon dock employees’ expertise regarding dock procedures, training and equipment. A new team is chosen annually. For more information, visit www.arbc.com.

PORTLAND, Ore. — The number of spot truckload freight posts jumped 18 percent during the week ending January 5, outpacing the 11 percent gain in the number of truck posts, said DAT Solutions, which operates the DAT network of load boards. Tighter capacity led to a 3-cent increase in the national average spot rates for dry van, reefer, and flatbed freight. The trend may be brief, however, as lower fuel surcharges and weaker rates on many high-traffic lanes may impact rates. Van trends: The number of van load and truck posts increased 11 percent compared to the previous week, which included the Christmas holiday. The load-to-truck ratio was unchanged at 8.9 loads per truck last week. Rates moved higher on 41 of the top 100 van lanes while prices fell on 53 lanes. The other six held steady. The three largest lane-rate increases were out of Denver: Denver to Albuquerque jumped 28 cents to $2.35/mile Denver to Oklahoma City gained 21 cents to $1.41/mile Denver to Chicago added 20 cents to $1.52/mile DAT said Denver is a big beer-producing market, with large-production breweries and craft brewers shipping beer in vans and reefers. It’s possible that NFL playoff games and college bowl games increased demand from bars, restaurants, and grocery stores. Elsewhere, average outbound rates from major van markets drifted lower after a strong week to close the year. Among them: Los Angeles: $2.61/mile, down 2 cents Memphis: $2.32/mile, down 3 cents Atlanta: $2.25/mile, unchanged Philadelphia: $2.01/mile, down 7 cents Columbus, Ohio: $2.48/mile, down 4 cents Flatbed trends: The number of flatbed load posts soared 60 percent after a 44 percent fall the previous week. Truck posts rose 24 percent, which helped push the national flatbed load-to-truck ratio from 26.1 to 33.7 loads per truck. Reefer trends: Reefer load-posting volume was unchanged last week while capacity increased 8 percent. The reefer ratio dropped to 9.8 loads per truck. Among the top reefer lanes, 24 moved higher and 46 were lower. One of the hottest markets is Nogales, Arizona, led by Nogales to Dallas (up 61 cents to $3.38/mile) and Nogales to Brooklyn (a 44-cent increase to $3.08/mile). 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 $57 billion in freight payments. DAT load boards average 1 million load posts per business day. For the latest spot market load availability and rate information, visit http://dat.com/trendlines and follow @LoadBoards on Twitter.  

BLOOMINGTON, Ind. — FTR’s Trucking Conditions Index for November rebounded by more than 2.5 points from October to a reading of 5.84. The improvement was primarily because of a slightly firmer rate environment and lower diesel prices. The 2018 November TCI was basically unchanged from a year ago, in spite of the volatility affecting the index over the past 12 months. The future outlook for the index is generally a more stable path in 2019 culminating in a near neutral reading by mid-year, FTR reported. Details of the November TCI are found in the January issue of FTR’s Trucking Update, published December 20. The ‘Notes by the Dashboard Light’ section in the current issue reviews new orders to analyze the future durability of the manufacturing sector. Along with the TCI and ‘Notes by the Dashboard Light,’ the Trucking Update includes data and analysis on load volumes, the capacity environment, rates, costs, and the truck driver situation. “We would anticipate that trucking conditions will be relatively stable through the first quarter of 2019 and perhaps a bit beyond that, but the second half of the year should be noticeably weaker due to factors such as lower active truck utilization and increased cost of capital,” said Avery Vise, vice president of trucking. “At this point we expect trucking conditions still to be slightly positive by the end of the year, although the downside risks clearly seem greater than the upside.” The Trucking Conditions Index tracks the changes representing five major conditions in the U.S. truck market. These conditions are: freight volumes, freight rates, fleet capacity, fuel price, and financing. The individual metrics are combined into a single index that tracks the market conditions that influence fleet behavior. A positive score represents good, optimistic conditions. Conversely, a negative score represents bad, pessimistic conditions. The index tells you the industry’s health at a glance. In life, running a fever is an indication of a health problem. It may not tell you exactly what’s wrong, but it alerts you to look deeper. Similarly, a reading well below zero on the FTR Trucking Conditions Index warns you of a problem, while readings high above zero spell opportunity. Readings near zero are consistent with a neutral operating environment, and double-digit readings (both up or down) are warning signs for significant operating changes.