Business

WASHINGTON — U.S. consumer spending edged up a moderate 0.3 percent in August as sales of cars and other durable goods fell. A key gauge of inflation slowed slightly after its biggest annual gain in six years. The rise in spending represented a slowdown from gains of 0.4 percent in both June and July,  the Commerce Department reported Friday. Consumer spending is closely watched because it accounts for two-thirds of economic activity. Consumer spending is important to the trucking industry because more than 70 percent of the goods sold in the United States are transported by truck. The government reported Thursday that the overall economy, as measured by the gross domestic product, grew at an annual rate of 4.2 percent in the April-June quarter, the best in nearly four years. However, GDP is expected to slow in the second half of this year to around 3 percent. That pace would still be solid enough to boost growth for the full year to 3 percent, the best annual performance in 13 years. Economists said that they expected low unemployment to keep consumer spending growing at a solid pace for the rest of this year and into next year. “Improving household finances, fueled by solid wage gains and lower personal tax rates, will help bolster consumer spending for several quarters,” said James Bohnaker, associate director of the economic consulting firm IHSMarket. An inflation gauge closely watched by the Federal Reserve edged up 0.1 percent in August, a tiny gain which left prices rising 2.2 percent over the past 12 months, down from a 2.3 percent 12-month rise in July which had been the fastest pace in six years. The inflation slowdown will be welcomed at the Federal Reserve which raised its policy interest rate for an eighth time on Wednesday as it tries to make sure that unemployment which has fallen to near a 50-year low does not trigger unwanted inflation. Core inflation, which excludes energy and food, was up 2 percent for the 12-months ending in August. It has been at that level for the last 12 months. The Fed’s goal is to keep inflation at a 2 percent annual gain. The spending report showed that purchases of durable goods, a category that includes autos, fell by 0.1 percent in August which held back overall spending. Purchases of nondurable goods rose a sharp 0.5 percent, an increase that reflected in part rising gas prices, while purchases of services rose 0.4 percent. Incomes, which provide the fuel for future spending, were up a modest 0.3 percent for a second straight month although wages and salaries, the key component of incomes, rose a strong 0.5 percent, the best showing since January. The saving rate in August was unchanged at 6.6 percent of disposable income. CAPTION FOR PHOTO Cashier Liz Moore, right, checks out customers Christie Meeks, center, and Lisa Starnes, left, at a Kohl’s store in Concord, North Carolina. The Commerce Department issued its August report on consumer spending, which accounts for roughly 70 percent of U.S. economic activity. (Associated Press: CHUCK BURTON)

JACKSONVILLE, Fla. — Landstar System, a worldwide, asset-light provider of integrated transportation management solutions has revealed the winner of its Landstar Deliver to Win Truck Giveaway, the second truck given away in 2018. Landstar BCO Susan Coffer of Claremore, Oklahoma, is driving a brand-new Kenworth T680 after winning the semi-truck in a random drawing held September 12 in Rockford, Illinois. The truck giveaway was the highlight of Landstar’s BCO Appreciation Days, a two-day event held to thank the independent owner-operators leased to Landstar for providing excellence in safety and customer service. Coffer was one of five finalists randomly selected from more than 189,000 contest entries. Landstar business capacity owners (BCOs), the term for independent truck owner-operators who lease their equipment to a Landstar company, are eligible to earn entries to win throughout the year. “I really never expected to win. The entire experience was a whirlwind,” said Coffer. “I still can’t believe I won the truck.” Landstar President and CEO Jim Gattoni hosted the Landstar Deliver to Win Truck Giveaway, along with a representative from the giveaway sponsor, Comdata. “We realize that a brand-new truck can significantly and positively impact an owner-operator’s life,” Gattoni said. “Landstar business capacity owners are hardworking small business owners, committed to Landstar’s safety-first culture and providing excellence in customer service. Landstar is proud to give away a truck to a member of this most deserving group.” During each Deliver to Win contest period, BCOs earn entries by hauling safe and compliant loads. Additional entries are earned by BCOs who voluntarily participate in Landstar safety meetings, events and business classes, as well as monthly online contest entries through DeliverToWin.com. Landstar’s next truck giveaway will be in Jacksonville during the first BCO Appreciation Days event of 2019 which is set for January. PHOTO CAPTION Courtesy: LANDSTAR SYSTEM Landstar BCO Susan Coffer was one of five finalists randomly selected from more than 189,000 contest entries in the Landstar Deliver to Win Truck Giveaway.

BEAVERTON, Ore. — National spot truckload rates were neutral or slightly down during the week ending September 22 but remain roughly 20 percent higher year over year, said DAT Solutions, which operates the DAT network of load boards. The national average spot van rate fell 1 cent to $2.15/mile, the refrigerated rate dipped 1 cent to $2.53/mile and the flatbed rate declined 2 cents to $2.56/mile. The overall number of loads posted decreased last week as road closures and limited access to the Carolinas likely prevented stronger demand from forming. This situation will likely turn around as relief and replenishment supplies move in. One reason spot rates are higher is the price of fuel, DAT said. The national average price of on-highway diesel was $3.27 per gallon last week and is 23 percent higher compared to this time last year. Spot rates incorporate a fuel surcharge. VAN TRENDS: The number of van load posts on DAT load boards fell 17 percent and truck posts dropped 21 percent compared to the previous week. That resulted in a 5 percent increase in the national load-to-truck ratio, moving up to 7.0 loads per truck. Van rates increased on several lanes from the Northeast and Southeast into Charlotte, including Philadelphia to Charlotte, which jumped 21 cents to $2/mile compared to the previous week. REEFER TRENDS: Reefer load posts declined 19 percent while truck posts fell 21 percent last week. That resulted in a 3 percent increase in the load-to-truck ratio, from 7.7 to 8.0 loads per truck. The average rate tumbled on several produce lanes in the Midwest and Southeast: Green Bay, Wisconsin, to Des Moines, Iowa: $2.36/mile, down 39 cents Grand Rapids, Michigan to Philadelphia: $4.02/mile, down 18 cents Atlanta to Lakeland, Florida: $3.35/mile, down 13 cents FLATBED TRENDS: Last week flatbed load posts fell 12 percent but truck posts declined 23 percent on DAT load boards. That caused the national flatbed load-to-truck ratio to jump 14 percent from 23.3 to 26.6 loads per truck. Among the lanes showing strength: Cleveland to Houston: $2.05/mile, up 28 cents Baltimore to Charlotte, North Carolina: $1.91/mile, up 12 cents Tampa to Atlanta: $1.75/mile, up 17 cents DAT Trendlines is generated using DAT RateView, an innovative service that provides real-time reports on prevailing spot market and contract rates, as well as historical rate and capacity trends. RateView’s comprehensive database is comprised of more than $45 billion in freight bills in over 65,000 lanes. DAT load boards average 993,000 load posts per business day. For the latest spot market load availability and rate information, visit http://dat.com/trendlines and join the conversation on Twitter with @LoadBoards.

COLUMBUS, Ind. — The average price of total used Class 8 trucks in August was virtually flat, up 1 percent on a month-over-month basis, but fared better when compared to August 2017, according to the latest release of the State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research. The report also indicated used Class 8 same dealer sales volumes rose 19 percent year-over-year, while average mileage increased 4 percent and average age declined 3 percent from a year ago. When compared shorter term, same dealer sales volumes rose 17 percent month-over-month, ending a streak of three consecutive month-to-month declines. “Dealers are reporting that used truck sales continue to be better in terms of number of trucks sold and for pricing,” said Brian Armstrong, information systems manager. “So far, 2018 has seen very strong used truck pricing and insufficient used truck inventory to meet rising demand. This situation has led dealers to pay more for used trucks than what is considered normal.” Individual market segments yielded mixed results last month. Armstrong said. “Retail and wholesale channels were up month-over-month, 22 percent and 10 percent, respectively, while the auction channel fell 10 percent. On a year-over-year basis, retail rose 31 percent, but auction and wholesale markets fell, 14 percent and 2 percent, respectively. All three channels are in positive territory on a year-to-date basis.” The report from ACT provides data on the average selling price, miles and age based on a sample of industry data. In addition, the report provides the average selling price for top-selling Class 8 models for each of the major truck OEMs – Freightliner (Daimler); Kenworth and Peterbilt (Paccar); International (Navistar); and Volvo and Mack (Volvo).    

DETROIT — Tesla without Elon Musk at the wheel? To many of the electric car maker’s customers and investors that would be unthinkable. But that’s what government securities regulators now want to see. The Securities and Exchange Commission has asked a federal court to oust Musk as Tesla’s chairman and CEO, alleging he committed securities fraud with false statements about plans to take the company private. The agency says in a complaint filed Thursday that Musk falsely claimed in an Aug. 7 statement on Twitter that funding had been secured for Tesla Inc. to go private at $420 per share, a substantial premium over the stock price at the time. An SEC press release says the agency asked the U.S. District Court in Manhattan for a “bar prohibiting Musk from serving as an officer or director of a public company.” It also is asking for an order enjoining Musk from making false and misleading statements along with repayment of any gains as well as civil penalties. Ousting Musk, who has a huge celebrity status with more than 22 million Twitter followers, would be difficult and could damage the company. He’s viewed by many shareholders as the leader and brains behind Tesla’s electric car and solar panel operations. The stock market shuddered at the prospect. At the opening bell Friday, shares slid 10 percent. “Corporate officers hold positions of trust in our markets and have important responsibilities to shareholders,” Steven Peikin, co-director of the SEC’s Enforcement Division, said in a statement. “An officer’s celebrity status or reputation as a technological innovator does not give license to take those responsibilities lightly.” Musk, in a statement issued by Tesla, called the SEC action unjustified. “I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way,” the statement said. The complaint alleges that Musk’s tweet harmed investors who bought Tesla stock after the tweet but before accurate information about the funding was made public. Peter Henning, a law professor at Wayne State University and a former SEC lawyer, said it’s the first fraud case involving use of social media by the CEO of a public company. Musk and Tesla didn’t fully disclose details of the plan in the Aug. 7 tweet or in later communications that day as required, he noted. “You can’t make full disclosure in 280 characters,” he said, referring to the length limit of a tweet. Joseph Grundfest, a professor at Stanford Law School and former SEC commissioner, said Musk will likely want to settle before trial so that he could conceivably stay on as CEO, with some constraints such as prohibiting him from making public statements without supervision. But Musk also could agree to step down as CEO and instead take another title, such as chief production officer. The Wall Street Journal, citing people familiar with the matter, reported that Musk had been close to settling with the SEC but that he and his lawyers decided at the last minute to fight the case. Tesla did not respond to a request for comment on the report. Grundfest also said that the challenge for the SEC is to “appropriately discipline Musk while not harming Telsa’s shareholders.” According to the complaint, Musk met with representatives of a sovereign investment fund for 30 to 45 minutes on July 31 at Tesla’s Fremont, California, factory. Tesla has identified the fund as Saudi Arabia’s Public Investment Fund, which owns almost 5 percent of the company. Fund representatives expressed interest in taking Tesla private and asked about building a factory in the Middle East, Musk told the SEC. But at the meeting, there was no discussion of a dollar amount or ownership stake for the fund, nor was there discussion of a premium to be paid to Tesla shareholders, the complaint said. Musk told the SEC that the lead representative of the fund told him he would be fine with reasonable terms for a go-private deal. “Musk acknowledged that no specific deal terms had been established at the meeting and there was no discussion of what would or would not be considered reasonable. Nothing was exchanged in writing,” the complaint stated. The SEC alleged in the 23-page complaint that Musk made the statements using his mobile phone in the middle of a trading day. That day, Tesla shares closed up 11 percent from the previous day. Musk has said that he posted the go-private tweet while driving to the airport and that no one reviewed it. The statements, the complaint said “were premised on a long series of baseless assumptions and were contrary to facts that Musk knew.” Later in the month, Tesla announced that the go-private plan had been scrapped. In its complaint, the SEC said that Musk’s statements hurt short sellers, investors who borrow a company’s stock betting that it will fall. Then they buy the shares back at a lower price and return them to the lenders, pocketing the profit. In August, more than $13 billion worth of Tesla shares were being “shorted” by investors, the complaint said, as the stock was under pressure due to questions about Tesla’s finances and Musk’s erratic behavior. Mark Spiegel, a short-seller and constant Musk critic, applauded the SEC for pursuing what he predicted would be easy for the government to prove. Spiegel also echoed the concerns of corporate governance experts who have lambasted Tesla’s board for being too beholden to a CEO that they are supposed to oversee. “They should have fired him a long time ago. Will they now? I don’t know,” Spiegel said. There was no indication of that in a joint statement issued late Thursday by the company and its board. “Tesla and the board of directors are fully confident in Elon, his integrity, and his leadership of the company,” the statement said.  

COLUMBUS, Ind. — August trailer orders continued to reflect the early opening to the 2018-19 order season. Total trailer net orders of more than 38,000 units were up 31 percent month-over-month and 142 percent better than this time last year, according to this month’s issue of ACT Research’s State of the Industry: U.S. Trailer Report. “Seven of 10 trailer categories were in the black month-over-month (flats, heavy lowbeds and dump trailers trailed the pack), while year-over-year eight of 10 were better (bulk tanks and grain were in the red). YTD net orders are up 40 percent, led by a 110 percent gain in reefers, while dry vans are up 33 percent,” said Frank Maly, director–CV transportation analysis and research at ACT Research. “Although we expect trailer orders to be roughly 1.5 times Class 8 tractor orders over the long-run, the three month moving average of trailer orders has been declining since December, and slid below 1.0 in both July and August; that’s an indication of both fleet attitudes and their willingness to continue to invest in new equipment, with truck OEMs perhaps just a bit more willing to book longer-term commitments.” Additionally, the report noted that the industry continues to experience inventory-related issues. “Indications are that OEMs would have built more trailers but were limited by continuing component and material availability challenges,” Maly said. “Tires are frequently noted as a bottleneck, with undercarriage components and wheels continuing to be mentioned as well. Red-tags are also apparently continuing to occur, but less mention of them may indicate a bit less overall impact than in the second quarter. That said, we expect an attempt to clear some of those in the quarter-ending month of September.” ACT is a worldwide publisher of new and used commercial vehicle (CV) industry data, market analysis and forecasting services for the North American market, as well as the U.S. tractor-trailer market and the China CV market. ACT’s CV services are used by all major North American truck and trailer manufacturers and their suppliers, as well as the banking and investment community in North America, Europe and China. For more information on ACT, please visit http://www.actresearch.net.        

COLUMBUS, Ind. — The latest release of ACT Research’s For-Hire Trucking Index showed the supply-demand balance falling to 55.3 on a seasonally adjusted basis in August from 56.9 in July. The 3.9 percentage point decrease in the Volume Index more than offset a 2.5 percentage point decrease in the Capacity Index, relative to July. “The August result is below the 2017-2018 average of 61, and it appears that a gradual balancing is taking place as the industry responds to strong demand by adding capacity,” said Tim Denoyer, ACT Research’s vice president and senior analyst. “At the same time, a volume slowdown is increasingly evident. While expectations seem high for another strong year of rate increases in 2019, both accelerating Class 8 tractor production and slowing freight growth are likely to loosen the supply-demand balance from here.” As part of this month’s survey, ACT Research queried fleets about how peak season is progressing and their expectations for the holidays. “The majority of responders indicated that they are quite busy and anticipate a very active holiday season,” Denover said. “One even noted that it is ‘going to be hard to keep current customers happy.’” The August fleet purchase intentions reading indicated a downtick in equipment demand, with only about 55 percent respondents planning to buy trucks in the next three months. This is down from fleet purchase intentions around 60 percent in July. After record year-to-date orders, this series should remain strong as long as the trucks that have been ordered are built. ACT is a publisher of new and used commercial vehicle industry data, market analysis and forecasting services for the North American market, as well as the U.S. tractor-trailer market and the China CV market. ACT’s CV services are used by all major North American truck and trailer manufacturers and their suppliers, as well as the banking and investment community in North America, Europe and China. For more information on ACT, please visit http://www.actresearch.net.                

BLOOMINGTON, Ind. — With the exception of a higher reading in February of this year, FTR’s Trucking Conditions Index (TCI) for July, at a reading of 14.04, reflects the strongest conditions the industry has seen since early 2004. This current growth cycle is stronger in duration than the 2004 period. FTR predicts that the TCI has peaked and will moderate modestly for the balance of the year. Key freight generators – manufacturing, construction, and retail sales – remain strong, with a positive outlook for the coming months. The forecast risk in the near term is on the upside if holiday retail sales outpace expectations. Details of the June TCI are found in the September issue of FTR’s Trucking Update, published August 31, 2018. “Carriers might not see stronger conditions in the current cycle, but they shouldn’t lose too much sleep over it,” said Avery Vise, vice president of trucking. “We expect the TCI to remain in double-digit territory into 2019. With manufacturing and construction hot and the labor market tight, it would be very difficult for capacity growth to outstrip freight demand for quite some time.” The Trucking Conditions Index tracks the changes representing five major conditions in the U.S. truck market, including 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 exactly what’s wrong, but it alerts the industry 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.  

MEMPHIS, Tenn. — Expediter Services (ES), a provider of capacity solutions and ownership opportunities within the trucking industry, said last week that a collaborative program with the Women In Trucking Association to create 150 women-owned businesses in transportation is now one third of the way toward reaching its initial goal. In welcoming its 50th entrepreneurial participant, the 150 Business Challenge further established its credentials as an effective and reliable platform that offers accessible financing as well as operational and business support for women who have an interest in a career path within the trucking industry, according to Ellen Voie, president and CEO of the Women In Trucking. In using infrastructure developed through the expertise of Expediter Services (ES), women who would like to learn more about how they can start and grow a trucking operation now have the opportunity through the 150 Business Challenge to launch their own small businesses as owner-operators and fleet owners in a trucking market that, according to the latest industry estimates, has a shortage in excess of 50,000 people behind the wheel. Through the efforts of the Women In Trucking Association and ES, the 150 Business Challenge is opening the doors of opportunity for women professional drivers who have the desire to become owner-operators and fleet owners, Voie said. Participants in the 150 Business Challenge have access to competitive market-rate truck financing, a broad range of new equipment choices and fuel discounts. ES also provides participants with industry-leading support featuring a maintenance program and operational expertise as well as back-office services and business planning assistance. “The Business 150 Challenge is fast becoming the kind of impactful program that is beginning to shatter the glass ceilings that have existed for women entrepreneurs in the trucking industry,” Voie said. “Thanks to this program being facilitated by the excellent work of Expediter Services and the ES Community, the participants in the 150 Business Challenge are truly being empowered through the access to best-in-class resources and support. The businesses being established and those that are expanding in this program are being positioned for long-term success. We are now one third of our way to reaching our stated goal of helping to launch 150 women-owned businesses in transportation, and I believe this program will continue to make a life-changing difference for entrepreneurs while creating even more momentum across the industry as we move forward.” The gross revenue generated by the 50 new businesses established through the 150 Business Challenge is certainly one of the reasons for Voie’s optimistic outlook toward the program, she said, adding that when placed together as a group, the operations launched as a part of the 150 Business Challenge are generating a combined revenue total well in excess of $1 million per month, according to officials at ES. “Our main mission as a service provider is to make sure the participants in our programs, the members of our ES community, have every tool they need to achieve success in their business pursuits. We have tremendous respect for the Women In Trucking Association, and it’s been extremely rewarding for everyone at ES to see the response to the 150 Business Challenge and the results the participants in the program have realized so far,” said Jason Williams, president of Expediter Services. “The impact of the 150 Business Challenge has not just been limited to bringing women-owned trucking operations into the transportation industry. The great work of the entrepreneurs utilizing the program has created a series of ripple effects. The tight freight market is benefiting from much-needed additional capacity. This is especially important in the expedited market where the additional capacity is often called upon to make time-critical deliveries.” For more information on Expeditor Services visit www.ExpediterServices.com. For more information on Women In Trucking, visit http://www.womenintrucking.org or call (888) 464-9482. PHOTO CAPTION Courtesy: EXPEDITOR SERVICES Diana Jorgensen, one of the participants in the 150 Business Challenge, and her husband, Ed, get ready to hit the road in their new truck, which is part of the Panther Premium Logistics fleet. Panther Premium Logistics is a service of ArcBest.  

BLOOMING PRAIRIE, Minn. —  For more than three decades, Minimizer’s investment in the heavy duty trucking industry has produced what company officials says are among the toughest parts and accessories to answer the demanding needs of fleet’s and truck drivers. AS a result, Capital Partners making an investment in Minimizer. The two are joining forces to fast-track Minimizer’s growth strategy, with the goal to expand product lines and support the rapid growth of the company, including investing in people, equipment and the development of additional capabilities. “We are very excited about our new relationship with Capital Partners,” Minimizer CEO and President Christopher Thorpe said. “Over the last six months, we conducted an exhaustive search for the right investor, one who shared our cultural beliefs and plans for growth over the next five years.  Capital Partners is an ideal fit to help take Minimizer to the next level.” Former Minimizer CEO Craig Kruckeberg will remain invested in the company and participate on the management board. “This is the best of both worlds for me, personally. While I will remain very much involved with Minimizer, this partnership will allow me to pursue other interests, including the Bandit Big Rig Series,” Kruckeberg said.  “As a second-generation owner, I wanted a firm that knew our industry and has a history of looking after the people, so I was very happy we could move forward with Capital Partners.” Capital Partners, based in Connecticut, has a history of investing in heavy duty truck part companies. “Unlike most private equity firms, we use a low debt investment approach designed to support rapid growth,” Managing Partner Mark Allsteadt said.  “Minimizer is a tremendous fit for us, with a great owner in Craig Kruckeberg and a committed and talented management team, which remains in place as our partner.” For more information or to contact a Minimizer distributor, call us at (800) 248-3855 or email info@minimizer.com.

VAN BUREN, Ark. — USA Truck, a capacity solutions provider headquartered in Van Buren, Arkansas, has become a member of the Blockchain in Transport Alliance (BiTA). Launched by Craig Fuller, BiTA is a group of industry leaders who share a vision of influencing blockchain technology to develop standards and education for the freight industry. Blockchain is a technology that allows identifying and tracking transactions digitally along with sharing that data across a distributed network of computers. For the transportation industry, Blockchain enables monitoring of goods and freight across the supply chain more efficiently. “There is a great opportunity for the logistics industry to exploit the convergence of emerging innovative technologies to improve communication, foster collaborative efforts, and reduce cost across supply chain partnerships,” said USA Truck Vice President and Chief Technology Officer Kim Littlejohn. “Blockchain has the potential to be a catalyst for such alliances. We are excited to join the BiTA organization for the opportunity to influence and foster adoption of this technology.” Transportation service providers join because their participation in standards design is critical to the success of the technology. Blockchain allows companies to create new revenue streams for customers by enabling a system of complete transactions, track shipments, and manage fleets. BiTA has brought together companies in the transportation, manufacturing, and telecommunications industries generating over $1 trillion in revenue, becoming the largest commercial blockchain alliance in the world. “We believe blockchain is one of the emerging technologies that can be used to create a common framework to disrupt current logistics industry practices,” said USA Truck President and CEO James Reed. “We are especially excited to utilize the convergence of these technologies to meet our evolving customer service capabilities. As a member of BiTA, we will use our industry knowledge and experience to help determine the application of blockchain as part of the logistics platform and look forward to working with the alliance to benefit the entire trucking industry.” USA Truck joining BiTA introduces exciting possibilities involving blockchain technology for freight forwarding and logistics operations, Reed said. For more information, visit www.usa-truck.com or www.usatlogistics.com.

ARLINGTON, Va. —  The American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index decreased 1.8 percent in August after increasing 1.9 percent in July. In August, the index equaled 112.9 (2015=100), down from 115 in July. July’s final index was unrevised from our press release on August 21, 2018. Compared with August 2017, the SA index rose 4.5 percent, down from July’s 8.6 percent year-over-year increase. Year-to-date, compared with the same period last year, tonnage increased 7.6 percent, far outpacing the annual gain of 3.8 percent in 2017. The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 120.4 in August, which was 5 percent above the previous month (114.6). “Truck freight remained solid in August despite the monthly decline,” said ATA Chief Economist Bob Costello. “However, the year-over-year increase was the smallest since July 2017. The deceleration in the year-over-year increases has begun because of more difficult year-over-year comparisons. It was a year ago when freight began to surge. We should all expect smaller year-over-year gains going forward than we witnessed over the last year.” 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.

The on-highway diesel average inched up a penny today, the U.S. Energy Information Administration (EIA) reported, putting diesel at $3.268 a gallon compared with the $3.258 it cost last week. Of the EIA’s 10 reporting sectors, nine showed diesel price increases of from 4 tenths of a cent (Lower Atlantic) to 1.7 cents a gallon (Gulf Coast). Only the Rocky Mountain sector went down — 4 tenths of a cent — to $3.363 a gallon compared with $3.367 last week. Diesel in New England went up 1.2 cents a gallon, from $3.255 last week to $3.267 this week. Diesel prices remain in the $3-a-gallon range across the country, with California at the high end at $3.979 a gallon and the Gulf Coast on the lowest rung at $3.056. Amid fears that there will be more tariffs on Chinese goods to come and the pushback that will result, oil prices declined this afternoon, wiping out gains from earlier in the day. Benchmark U.S. crude lost 0.1 percent to settle at $68.91 a barrel in New York. Brent crude, used to price international oils, fell 0.1 percent to close at $78.05 a barrel in London, The Associated Press reported. For more details on diesel prices by region click here.

CHATTANOOGA, Tenn. — U.S. Xpress Enterprises, Inc., a leading, national trucking company, today announced the launch of “Full Ride,” a college scholarship program for drivers and their families that is the first of its kind in the trucking industry. The U.S. Xpress Full Ride scholarship program provides U.S. Xpress drivers the opportunity to earn a bachelor’s or master’s degree from an accredited school, Ashford University, at no cost in one of dozens of disciplines ranging from business and logistics to accounting or behavioral science. And, in a first for the trucking industry, children of U.S. Xpress truck drivers may earn their bachelor’s or master’s degrees from Ashford University as well, at no cost and courtesy of the company. Each driver may have a total of two family members enrolled in school at one time (either two dependents or the driver and one dependent). Dependents must be aged 17 to 26.  The benefit will also be available to drivers working for Total Transportation of Mississippi, LLC, a subsidiary of U.S. Xpress Enterprises Inc.  

WASHINGTON – With retail sales continuing to grow, imports at the nation’s major retail container ports are expected to remain strong this month after setting three new records this summer, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates. “More tariffs could come any day, and retailers have been bringing in record amounts of merchandise ahead of that in order to mitigate the impact on their customers,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “Retail sales are growing stronger than expected this year thanks to tax cuts and job creation, but tariffs are the wild card that threaten to throw away a significant portion of those benefits.” “The current boom in shipping can primarily be explained by importers’ response to the U.S. trade war with China,” Hackett Associates Founder Ben Hackett said. “Consumers appear to be spending money on goods ahead of the tariff price increases that will eventually come. But there could be a rocky road ahead as the impact of tariffs begins to be more fully felt.” Ports covered by Global Port Tracker handled 1.9 million Twenty-Foot Equivalent Units in July, the latest month for which after-the-fact numbers are available. That was up 2.8 percent from June and up 5.6 percent year-over-year. A TEU is one 20-foot-long cargo container or its equivalent. August was estimated at 1.92 million TEU, up 4.8 percent year-over-year. September is forecast at 1.83 million TEU, up 2.4 percent; October at 1.88 million, up 5 percent; November at 1.79 million TEU, up 1.7 percent, and December also at 1.79 million TEU, up 3.6 percent. January 2019 is forecast at 1.77 million TEU, up 0.4 percent over January 2018. August was the third month in a row to set a new record for the number of containers imported during a single month, following July’s 1.9 million TEU and June’s 1.85 million TEU. The previous record of 1.83 million TEU was set in August 2017. While cargo numbers do not correlate directly with sales, the record imports mirror strong spring and summer results expected to continue through the remainder of the year. Retail sales as calculated by NRF – excluding automobiles, restaurants and gasoline stations – were up 4.9 percent year-over-year in July and up 5 percent on a three-month moving average. NRF revised its annual spending forecast this summer to say 2018 sales are now expected to be up at least 4.5 percent over 2017 rather than the 3.8 to 4.4 percent previously forecast. The first half of 2018 totaled 10.3 million TEU, an increase of 5.1 percent over the first half of 2017. The total for 2018 is expected to reach 21.4 million TEU, an increase of 4.4 percent over last year’s record 20.5 million TEU. Global Port Tracker, which is produced for NRF by the consulting firm Hackett Associates, covers the U.S. ports of Los Angeles/Long Beach (shown above in a Fotosearch picture), Oakland, Seattle and Tacoma on the West Coast; New York/New Jersey, Port of Virginia, Charleston, Savannah, Port Everglades, Miami and Jacksonville on the East Coast, and Houston on the Gulf Coast. The report is free to NRF retail members, and subscription information is available at www.nrf.com/PortTracker or by calling (202) 783-7971. Subscription information for non-members can be found at www.globalporttracker.com. The National Retail Federation is the world’s largest retail trade association. Based in Washington, D.C., NRF represents discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and internet retailers from the United States and more than 45 countries. Retail is the nation’s largest private-sector employer, supporting one in four U.S. jobs — 42 million working Americans. Contributing $2.6 trillion to annual GDP, retail is a daily barometer for the nation’s economy. NRF.com Hackett Associates provides expert consulting, research and advisory services to the international maritime industry, government agencies and international institutions. www.hackettassociates.com

DAT Trendlines reports that August ended with average rates that were lower than those in June and July but were still about 20 percent higher than August 2017. The report said demand for flatbeds has returned to last year’s levels but reefer demand is strong in several Northern states as farmers harvest large late-summer crops of apples, potatoes and onions. The national average rate fell 1 cent per mile for vans and was down 2 cents for flatbeds, while reefer rates held steady. Spot market loads were down 3.0 percent for the last week in August compared with the week prior, while van load-to-truck ratios were down 5.9 percent for the same two weeks. Flatbed load-to-truck ratios were down 10 percent while flatbed spot rates were down 0.8 percent and reefer load-to-truck ratios were down 3.5 percent, while spot reefer rates were the same and fuel prices were up 0.6 percent over the same period. Year-over-year rates were all up for the period over 2017 numbers except for flatbed load-to-truck rates, which were down 0.8 percent. Spot market loads were up 27 percent over last year; spot market capacity was up 18 percent over August 2017; van load-to-truck ratios were up 29 percent; spot van rates were up 20 percent over last year; spot flatbed rates were up 21 percent; reefer load-to-truck ratios were down 9.1 percent; spot reefer rates were up 20 percent and fuel prices were up 24 percent compared with the period of 2017.

Twenty fleets operating more than 71,844 tractors and 236,292 trailers saved over $600 million in 2017 compared to the average trucks on the road. They achieved this by adopting a variety of fuel-efficiency technologies, according to the 2018 Annual Fleet Fuel Study released by the North American Council for Freight Efficiency (NACFE). Combined, these fleets reached an average fuel economy of 7.28 mpg compared to the average U.S. fleet number of 5.91 mpg, marking a 2 percent increase over 2017 and representing a return to the 2 percent eight-year average gain. The report contains the results of a deep-dive investigation into the adoption of various products and practices for improving freight efficiency among 20 major North American fleets. This is the sixth annual update of the 2012 inaugural study, which has been described as an important read for anyone working on improving fuel efficiency. Fleets providing data for this 2018 study were Bison Transport; Cardinal Logistics; CFI; CR England, Challenger Motor Freight, Crete, Frito-Lay, Hirschbach, Maverick, Mesilla Valley Transportation; NFI Industries; Nussbaum; Paper Transport; Prime; Ryder System Inc.; Schneider; United Parcel Service; and U.S. Xpress. “I look forward to this report and read it each year within days of it being published. It is important to Schneider’s efforts and it can be a critical resource to any fleet or owner-operators as well as manufacturers and others who are working to improve Class 8 efficiency,” said Rob Reich, senior vice president, equipment, maintenance and driver development at Schneider. “Each year the report has been published, it has been NACFE’s most downloaded report,” said Mike Roeth, NACFE executive director. “The findings of this report should prove invaluable to efforts to improve fuel economy.” The overall adoption rate for the 85 technologies studied in the report has grown from 17 percent in 2003 to 44 percent in 2017. Not all technologies could be applied to a single tractor-trailer, as some are clearly an either-or decision. For 2018 study, the technologies were kept consistent with the 2017 study. In 2016, many new technologies were added to the survey as technology developers brought new choices to the fleets for purchase. These included: Idle Reduction — Light color exterior paint, use of hotels, tractor solar and trailer solar panels Chassis — Tractor lift axles, trailer lift axles, high-efficiency alternators Powertrain — Mechanical turbo compounding, FA-4 low viscosity lubrication Tractor Aerodynamics — Drive tandem fairings, tractor gap reducers, vortex generators, and platooning capability, and Practices — Vehicle mpg data analysis, maintenance for fuel economy, real-time driver coaching. The largest gainers in adoption by these fleets, when comparing their purchases in 2017 to those in 2016, occurred with the following technologies: Cab extenders: 90 percent adoption in 2017, 21 percent gain year-over-year Lower viscosity engine oil: W-30, 87 percent in 2017, 29 percent year-over-year Shift to neutral: 57 percent in 2017, 28 percent year-over-year Direct drive transmission: 53 percent in 2017, 20 percent year-over-year, and In-cab cameras, 49 percent in 2017; 28 percent year-over-year. For the first time since the study’s inception, the NACFE team sought data from other organizations involved in Class 8 tractor-trailer efficiency. Data was received from ATBS, NPTC and FleetAdvantage, and compared to the NACFE results. All four studies show a solid increase in fuel efficiency over the past eight years. The North American Council for Freight Efficiency (NACFE) is a nonprofit organization dedicated to doubling the freight efficiency of North American goods movement. NACFE operates as a nonprofit in order to provide an independent, unbiased research organization for the transformation of the transportation industry. Data is critical and NACFE helping the industry with real-world information that fleets can use to take action. Learn more at www.nacfe.org.