Business

KNOXVILLE, Tenn. — Pilot Flying J will open three Pilot Flying J locations in Florida, Texas and Arizona by the end of August. The locations feature amenities for area residents and the traveling public, while adding 142 truck parking spaces, approximately 115 local jobs and other economic benefits to the communities. “We’re thrilled to serve the communities of Bartow, Florida, Odessa, Texas, and Tucson, Arizona, with the expansion of our network this month to deliver convenience, quality, great service and added value to local residents and professional drivers traveling the nation’s highways,” said Ken Parent, president of Pilot Flying J. “Our goal at Pilot Flying J is to connect people and places with comfort, care and a smile at every stop. The addition to our footprint of three new locations will bring the best service and amenities available on the road to travelers passing through these areas.” The Pilot Flying J locations offer many amenities: Pilot Travel Center #1128, 7990 State Road 60 E, Bartow, Florida — PJ Fresh, Arby’s, 38 truck parking spots, six diesel lanes, two RV lanes and 10 gas fueling positions, three showers, public laundry, CAT scale, Western Union and a drivers’ lounge. Pilot Travel Center #1161, 3145 Meteor Crater Road, Odessa, Texas — PJ Fresh, Dunkin Donuts Express, 93 truck parking spots, eight diesel lanes, two RV lanes and 12 gas fueling positions, Pilot Express #1178, 9255 South Rita Road, Tucson, Arizona — Subway, nine truck parking spots, four diesel lanes and 12 gas fueling positions, 10 Tesla charging stations, public laundry, CAT scale, Western Union and drivers’ lounge. The new facilities will bring Pilot Flying J’s network of stores in Florida to 30 locations, Texas to 78 locations and Arizona to 16 locations. Cumulatively, the new locations are expected to contribute $11.8 million annually in state and local tax revenues and will grow Pilot Flying J’s footprint to 795 locations, including dealers, card locks, Pilot Express and travel centers. Parent said guests can make the most out of their experience at Pilot and Flying J locations by saving time and money with the myPilot app. “Using the myOffers feature in the app, guests can save in-store with valuable weekly deals on food and beverages,” he said. “MyPilot app users also have access to trip planners and features for professional drivers including mobile fueling, parking and shower reservations.” The combined network of more than 750 Pilot and Flying J Travel Centers across North America serves more than 1.6 million customers daily. For more information on Pilot Flying J, visit www.pilotflyingj.com.

SOMERSET, Ky. — Super Service, a regional and dedicated full truckload carrier recently purchased by J&R Schugel Trucking, has announced a new pay increase with a performance plus pay program (P3), new equipment and huge sign-on incentive. In addition, Super Service employees and company drivers will be part of J&R Schugel’s Employee Stock Ownership Plan. “This is an amazing time for us. We’re offering the advantages that are really at the heart of what drivers want and need,” said Ronnie Presley, director of driver recruiting.  “Our pay is great, the new trucks coming in are fantastic and the $15,000 sign-on ($30,000 split for teams) is one of the most generous out there. It’s a great time to join us.” The carrier’s newest pay increase allows company drivers to earn up to 52 cents per mile, including P3. With P3, drivers determine how much more they are paid above the base rate based on safety (2 cents a mile); availability (1-cent per mile); miles per gallon (1-ent per mile); and service performance (1-cent per mile). Presley said Super Service has over 500 new trucks that will be put into operation through early 2019. “We have Kenworth T680s, International LTs and International ProStars that feature the latest technology on the road,” Presley said. “These trucks have everything but autopilot to make our drivers comfortable, safe and efficient.” One of the biggest advantages of being owned by J&R Schugel is that carrier’s Employee Stock Ownership Plan (ESOP), Presley said. After 1 year, employees are eligible to be vested in the program. “We have an industry leading retirement plan for our employees,” Presley said. “We like to say we take care of our drivers now and down the road. When the company succeeds, that’s more money invested in their future. We want to help our driving force plan ahead.” Super Service is currently hiring for students, company drivers, teams and independent contractors. Over-the-road and regional runs are now open. Super Service operates regionally in the Southeast, Midwest and Eastern United States and has many dedicated operations located throughout the Unites States. For more information on opportunities, earning potential, ESOP or other advancements, contact Super Service today at 877-560-7537 or visit www.driveforsuperservice.com. PHOTO CAPTION Super Service will put over 500 new trucks into operation through early 2019, including Kenworth T680s, International LTs and International ProStars. (Courtesy: SUPER SERVICE)

COLUMBUS, Ind. — The latest release of ACT’s For-Hire Trucking Index showed an increase in the supply-demand balance, rising to 58.0 seasonally-adjusted in July, from a 54.0 reading in June. “Both freight volumes and rates improved in July from June on a seasonally-adjusted basis. However, capacity growth also picked up, keeping the July supply/demand balance less tight than the 2017/2018 average. We see a gradual balancing taking place as the industry responds to strong demand,” said Tim Denoyer, ACT Research’s vice president and senior analyst. As part of this month’s survey, ACT Research queried fleets about their load turndowns, asking whether they are seeing more, less or the same number. “Results were split evenly overall, with a slight advantage in the ‘same’ column,” Denover said. “As one respondent put it, ‘We turn down so many loads for lack of capacity it is nearly impossible to keep track [and] it has been this way for nearly a year now.” The July fleet purchase intentions reading indicated an uptick in equipment demand, with 62 percent of respondents planning to buy trucks in the next three months. ACT Research believes the increase is related to the record order cycle of the past year starting to be built in greater numbers. Over the past 12 months, the buying index has averaged a strong 58% reading, on a seasonally-adjusted basis. For more information on ACT, please visit http://www.actresearch.net.

SHELBYVILLE, Tenn. — Truckload carrier Big G Express has made changes to it driver pay program. The employee-owned company plans to roll out a 2-cents per mile pay increase as well as switch to a PC*Miler practical miles pay program later this month. “Our drivers have been asking to be paid on practical miles for a while now and we’re listening,” said Randy Vernon, president of Big G Express. “Big G is constantly looking for ways we can maximize our drivers’ earning potential and we’re excited to make these major changes to driver pay.” The PC*Miler practical miles pay program compensates drivers according to the driving routes and distances they are most likely to take. Big G Express previously used the PC*Miler short miles program, which pays drivers on the most direct route possible. By using PC*Miler practical miles, Big G Express drivers can expect more accurate pay to the miles they actually drive, Vernon said. The company’s 2-cents per mile pay increase brings driver starting pay to 42 cents per mile with top out pay at 52 cents per mile. Both pay changes are now effective. “Not only will Big G drivers earn more than ever with these changes to pay, but they’ll also continue to receive our monthly mileage bonus of 1 cent per mile for every mile over 11,000,” Vernon said. “We’re also excited to share that the pay macro is back on Qualcomm as of today.” Other bonus pay opportunities available at Big G Express include a semi-annual fuel/performance bonus of .5-cent per mile in June and December and an annual .5-cent per mile safety bonus at the end of the year. Vernon said drivers at Big G Express also enjoy a competitive benefits package that includes life, disability, health, vision and dental insurance options; late model equipment and technology; retirement benefits; and a family-oriented atmosphere. Founded in 1995, Big G Express, Inc., is a 100 percent employee-owned, asset-based truckload carrier headquartered in Shelbyville, Tennessee. With over 600 tractors and 1600 trailers, Big G Express provides general commodity, irregular route, and dry van truckload services to customers nationwide. To learn more about the driving opportunities at Big G Express, call 1-800-684-9140, option 2, or visit www.driveforbigg.com.

PORTLAND, Ore. — Truckers posted 5.2 percent fewer trucks during the week ending August 25, which helped pump the brakes on a recent downward trend in spot truckload rates, said DAT Solutions, which operates the DAT network of load boards. The number of available loads increased 3.7 percent. The national average van, flatbed, and reefer rate fell 1 cent to $2.15/mile, $2.66/mile, and $2.49/mile, respectively. VAN TRENDS: The number of van load posts on DAT load boards edged up 2 percent while truck posts dropped 6 percent, pushing the national van load-to-truck ratio up to 7.1 loads per truck. While national van rates have slipped in August, the 100 most active van lanes on DAT load boards are showing signs of recovery. Forty-five lanes were up in pricing, 46 lanes down, and 9 were neutral. The most notable lane among the gainers: Chicago to Allentown, Pennsylvania, rose 15 cents to $3.04/mile. One year ago, that lane was in the $2.25 to $2.75 range. It’s a good example of the new-normal rate-level reset, DAT said. Van markets in Texas and the Southeast region are slipping, and nowhere has the trend been more evident than in Houston ($1.95/mile, down 6 cents). A slowdown in energy-related freight may be part of the story; also, one year after Hurricane Harvey hit the region, much of the recovery and rebuilding is complete. REEFER TRENDS: Reefer load posts on DAT load boards jumped 10 percent compared to the previous week. Truck posts fell by 5 percent, which pushed the load-to-truck ratio up to 9.6 loads per truck. The run-up to Labor Day weekend and the new school year typically leads to a surge in demand for transportation of fresh food. This year, the back-to-school grocery fest coincides with late-summer harvests: apples, pears, onions, and potatoes are rolling out of orchards and fields in the Upper Midwest, Pacific Northwest and parts of the Northeast. FLATBED TRENDS: After 10 weeks of declines, the national flatbed load-to-truck ratio edged up 3 percent last week to 28.2 loads per truck. Load posts were up 1 percent while truck posts dipped 2 percent. More lanes rose than fell last week in the top 78 flatbed lanes, and overall rates continued to slip but at a slower rate. All four of the top-gaining flatbed lanes were from Roanoke, Virginia, an indication of activity through East Coast ports. 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 www.dat.com/trendlines and join the conversation on Twitter with @LoadBoards.

COLUMBUS, Ind. — The average price of total used Class 8 trucks in July was virtually flat, down 1 percent, on a month-over-month basis, but fared better when compared to July 2017, according to the latest release of the ACT Research State of the Industry: U.S. Classes 3-8 Used Trucks. The report also indicated used Class 8 same dealer sales volumes rose 12 percent year-over-year, while average mileage was unchanged and average age declined 5 percent when compared to the previous July. When compared shorter term, same dealer sales volumes fell 7 percent month-over-month in July, their weakest month so far this year. “Dealers are reporting that the used truck market is strong,” said Steve Tam, ACT Research vice president. “Dealers are having a hard time finding used trucks to sell, which is supporting used truck prices. The strong market has also been a boon to finance companies actively looking to finance used trucks.” Individual market segments yielded mixed results last month. Tam said. “Retail and auction markets declined 9 percent and 5 percent, respectively, on a month-over-month basis in July, while sales via the wholesale channel recorded a 1 percent month-over-month gain. However, when compared longer term, the retail and wholesale markets show year-over-year increases of 18 percent and 3 percent, respectively, but the auction channel was down 10 percent compared to July 2017.” 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). For subscription information to the full report, please go to http://www.actresearch.net.

All spring and into the summer diesel prices have been on a slight decline — more or less — but Monday the national on-highway average hopped up 1.9 cents while all 10 of the Energy Information Administration’s (EIA) reporting regions came up, some just a smidgen but others more than 2 cents a gallon. EIA reported that the national average diesel price is now $3.226 a gallon, while in California diesel is selling for close to $4 a gallon at $3.945. In fact, truck drivers in all regions are seeing diesel prices hovering above $3-a-gallon and the Gulf Coast region, where the diesel is normally the cheapest, rang up at $3.004 a gallon, having increased 2.3 cents a gallon from last week, when diesel there was $2.981. Diesel in the Midwest sector increased 2.4 cents a gallon to $3.153, up from $3.129 the week prior. Benchmark U.S. crude edged up 0.2 percent to $68.87 a barrel in the New York. Brent crude, which is used to price international oils, gained 0.5 percent to $76.21 a barrel in London, The Associated Press reported. For details on diesel prices by EIA region, click here.

BLOOMINGTON, Ind. — FTR’s Shippers Conditions Index (SCI) for June at -9.5 improved by nearly three points from the previous month indicating the worst may be over for now. However, FTR cautions that conditions have not gotten that much better with rates still rising especially in the truckload sector. Total shipping costs for 2018 should be around 12 percent higher than 2017, with 2019 forecast to be up another 6 percent. Overall, there are some signs of stability coming into the market for drivers, capacity and rates. “While conditions have stabilized in the truckload and rail sectors, they remain far from where shippers would like them to be heading into the crucial peak season,” said Todd Tranausky, vice president for rail and intermodal at FTR. “Shippers should expect the service they have now to be the service they have through the balance of the year.” The August issue of FTR’s Shippers Update details the factors affecting the May Shippers Conditions Index, along with discussion on how a tight labor market could stifle growth because businesses cannot fill positions that are needed. The Shippers Conditions Index tracks the changes representing four major conditions in the U.S. full-load freight market. These conditions are: freight demand, freight rates, fleet capacity, and fuel price. The individual metrics are combined into a single index that tracks the market conditions that influence the shippers’ freight transport environment. A positive score represents good, optimistic conditions. A negative score represents bad, pessimistic conditions. The index tells you the industry’s health at a glance. In life, running a fever is an indication of a health problem. It may not tell you exactly what’s wrong, but it alerts you to look deeper. Similarly, a reading well below zero on the FTR Trucking Conditions Index warns you of a problem…and readings high above zero spell opportunity. Readings near zero are consistent with a neutral operating environment. Double digit readings (both up or down) are warning signs for significant operating changes.            

WASHINGTON — The National Retail Federation today urged the Office of the U.S. Trade Representative to reject tariffs on $200 billion of Chinese goods and released a new study that found tariffs on furniture and travel goods from China would cost American consumers nearly $6 billion a year. “By now the administration should know something it questioned several months ago: Tariffs will not get China to change its unfair trade practices,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said during testimony prepared for a USTR hearing this afternoon. “Instead, these tariffs threaten to increase costs for American families and destroy the livelihoods of U.S. workers.” Gold cited a new analysis prepared for NRF by the Trade Partnership that found 25 percent tariffs on furniture from China would lead to American consumers paying $4.6 billion a year more for furniture even if retailers switched their sourcing to other foreign countries or U.S. furniture makers. Similarly, 25 percent tariffs on travel goods such as luggage and handbags would cost consumers $1.2 billion a year even if the goods no longer came from China. At 10 percent, the impact would be smaller but still significant. “The threat that these tariffs could be imposed, and even expanded to include all consumer goods imported from China, has already started a scramble among importers to find alternative sources of supply, including in the United States,” Gold said. “While you may think this is a positive development, the administration needs to know that the scramble is already bidding up prices for consumer products from all possible alternative manufacturers. Therefore, even if the administration decides not to impose the tariffs, higher prices are already on the horizon for American families.” Gold said the tariffs are particularly burdensome for small businesses, citing a recent NRF survey that found nearly half (46 percent) of small retailers anticipate a negative impact on their businesses due to proposed or implemented tariffs. “The collateral damage to wide swaths of the U.S. economy will be significant,” Gold said. “This will only get worse as the additional tariffs take effect and retaliation escalates.” 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.  

ARLINGTON, Va. — The American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index rose 1.9 percent in July after decreasing 0.5 percent in June. In July, the index equaled 115 (2015=100), up from 112.8 in June. ATA revised the June decline from the originally reported 0.4 percent to 0.5 percent. Compared with July 2017, the SA index jumped 8.6 percent, up from June’s 7.7 percent year-over-year increase. Year-to-date, compared with the same period last year, tonnage increased 8 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 114.6 in July, which was 1.2 percent below the previous month (116.1). “Truck freight remained very strong in July when accounting for normal seasonality,” said ATA Chief Economist Bob Costello. “Both the month-to-month and year-over-year gains were the largest in three months. This robust growth stems from solid manufacturing, retail sales, and construction activity. The industry’s biggest challenge isn’t finding enough freight, but recruiting and retaining quality drivers.” 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.

EVANSVILLE, Ind. — Atlas Van Lines, the largest subsidiary of Atlas World Group, is implementing the “largest and most extensive” pay increase for owner-operators in the truckload freight division, which also significantly increased earnings for those in the special commodities division. The increases applied throughout the company’s contracts with corporate fleet drivers, coupled with new cost-saving initiatives, will result in a significant rise in compensation for its drivers, according to Phil Wahl, senior vice president and GM for Atlas Logistics. Effective immediately, the average mileage pay increases are $.06 per mile in the truckload freight division and $.10 per mile in the special commodities division. The addition of stop pay, detention pay and pay for in-van equipment counts and resets on truckload shipments will further increase overall pay, especially for Atlas drivers in the truckload division. Atlas is also paying additional mileage pay on all first-year miles to new drivers in its freight divisions. These revisions will equate to several more cents per mile for drivers in Atlas’ corporate fleet. “The heart of this pay increase revision is based on feedback we have received from our owner- operators,” Wahl said. “The success and financial stability of our owner operators is essential to the success of our fleet operations, and no one knows more about the biggest hurdles in reaching those individual goals than the owner operators themselves.” In addition, Atlas has revisited owner-operator expenses and implemented numerous policy changes to provide drivers thousands of dollars in cost savings. For instance, the company now accepts occupational accident coverage in addition to its previous requirement for worker’s compensation coverage. Furthermore, Wahl said, Atlas’ expanded corporate fuel discount program now includes seven major brands and over 1,300 locations nationwide, adding convenience and meaningful cost savings for fuel. Together, these changes will save owner operators nearly $10,000 annually. In the household goods division of Atlas Van Lines, the company has implemented a strategy to increase driver pay through service pricing increases. The rollout is underway and will continue through 2019. “We are extremely proud to implement this historic pay raise for the individuals who drive our company forward,” said Jack Griffin, chairman and CEO of Atlas World Group. “Atlas is committed to developing strategic initiatives to stay ahead of the driver shortage, all of which are focused on investing in the development and retention of the industry’s next generation.” For more information on owner operator career opportunities with Atlas Van Lines, visit www.driveatlas.com.

ACT Research and FTR both reported record preliminary trailer orders in July. ACT’s preliminary estimate net trailer orders is 29,300 units with final July volume available later this month. ACT said its methodology allows it to generate a preliminary estimate of the market that should be within +/- 3 percent of the final order tally. FTR said trailer orders set a record for the month of July coming in at a surprising 28,000 units. Trailer orders have now totaled an impressive 350,000 units for the past 12 months. Orders were up 109% year over year. “After a steady June, fleets came roaring back into the market in July,” said Frank Maly, ACT’s director of CV transportation analysis and research. “OEMs had their strongest July net order volume in history, breaking a record that was set in 1994. Net orders were 102 percent better than last July and 45 percent above June volume. Considering July is historically, the industry’s weakest order month, this performance is truly exceptional. Year-to-date, net orders of just over 200,000 trailers are up 30 percent from 2017.” Maly said when seasonally adjusted, July came in above 44,000 units, the second strongest monthly reading in industry history. “That converts to a stunning 528,000 seasonally adjusted annual rate,” he said. “Both dry vans and reefers paced overall performance, closing the month with backlogs that now stretch into March of next year. While strength was evident across all industry segments, it is noteworthy that cancellations remain low, indicating strong fleet confidence as we move through the rest of this year and into next.” Don Ake, FTR vice president of commercial vehicles, said OEMs have opened up some of the 2019 order boards, so fleets have started ordering a couple months early to reserve build spots and lock in prices. Carriers expect to add more trucks in 2019 and will need additional trailers for them. Freight growth continues to strain industry capacity, he said, adding refrigerated van orders were particularly strong, and dry van orders rebounded after a weak June. “This is a terrific order number for a month of July. Usually July is the lowest order month of the year, but not this year. This indicates the trailer market should continue to be robust in 2019,” Ake said. “Strong economic and freight growth is expected to continue and, as a result, trailer production is at record levels. Orders should stay elevated as fleets continue to place orders earlier than normal for 2019.”

LITTLE ROCK, Ark. — Maverick Transportation is initiating its fourth pay increase this year along with a new weekly guarantee pay. This new raise in pay is for its drivers in regional and over-the-road flatbed divisions. The weekly minimum guarantee pay applies to all flatbed, glass and temperature control over the road divisions. “Maverick is excited to announce another significant pay increase for our over the road drivers.” said John Culp, president of Maverick Transportation. “Our drivers are the backbone of our company and we are proud to offer them this industry leading pay package” The new pay increase, which goes into effect Sunday, will add $.05 per mile for flatbed regional drivers and $.03 per mile for flatbed over-the-road drivers, bringing the starting pay to $.54-$.58 per mile and student starting pay to $.52 per mile. Along with the pay increase, Maverick also announced a $1,000 per week guarantee pay which now applies to flatbed, glass and temperature control over the road divisions. Both the increase and the weekly guarantee pay are also scheduled to go into effect Sunday. Maverick Transportation recently received the prestigious recognition of being named as a Top Pay Carrier for 2018 by The National Transportation Institute (NTI). “Maverick has a strong reputation in the trucking industry for consistently offering one of the best compensation packages around,” Culp said. The Arkansas-based carrier rolled out a new pay for experience plan and student pay increase in June, temperature control division pay increase in April and glass and flatbed division increase last December. Maverick also announced per-diem pay and new sign-on bonuses in recent months. In addition, Maverick drivers also earn pay increases up to five years and up to a 6 cent per mile pay for performance bonus. Clup said other driver benefits include “excellent” home time, weekend guarantee pay, paid orientation and training, paid weigh station bypass and tolls, 401k plan + match, company-paid life insurance, health and dental insurance options, paid vacation and a driver referral bonus program. To learn more about driving opportunities at Maverick visit www.maverickdrivers.com or call (800) 201-7695. To learn more about Maverick Transportation visit www.maverickusa.com.

The national average van rate fell 6 cents to $2.18/mile during the week ending August 11, marking five straight weeks of declines after one of the most robust periods for spot truckload freight pricing in memory, according to DAT Weekly Spot Freight Market Brief. Likewise, the national flatbed rate dipped 6 cents to $2.69/mile and the reefer rate slipped 3 cents to $2.51/mile compared to the previous week. Rates remain roughly 20% higher compared to this time of year, however. The number of load posts on the DAT network of load boards edged down 5 percent last week while truck posts rose 3 percent. With more trucks competing for fewer loads, load-to-truck ratios softened for all three equipment types: Van ratio: 6.9 loads per truck, down 3 percent compared to the previous week Reefer ratio: 8.5, down 5 percent Flatbed ratio: 29.5, down 19 percent to near where it was at this time a year ago VAN TRENDS: Spot market volumes declined 1 percent last week compared to the week before, while truck posts increased 2 percent. Prices were down in most markets but rates held up the best out of the Midwest and in fact rose on a handful of regional lanes: Columbus, Ohio, to Buffalo, N.Y.: $3.77/mile, up 23 cents Buffalo to Allentown, Pennsylvania: $3.46/mile, up 11 cents Chicago to Los Angeles: $1.54/mile, up 9 cents Outbound rates in Dallas and Houston have fallen more than 10 percent in the past month and currently sit at $2/mile and $2.10/mile, respectively. Pipeline capacity is tight in the West Texas oilfields, leading to a slowdown in drilling, and steel tariffs have made new projects more expensive, since it’s not easy to source domestically, depending on the type of project. REEFER TRENDS: Reefer demand has been cooling down since its peak in June. The number of load posts on DAT load boards was down 3 percent last week, while truck posts increased 3 percent. The national reefer load-to-truck ratio is now below where it was at this time a year. One factor: shipments out of California have stalled, perhaps hampered by wildfires, and as a result these volumes weren’t there to offset declines in other parts of the country. Two lanes out of California showed significant declines: Fresno to Seattle dropped 24 cents to $3.41/mile Sacramento to Portland, Oregon, was down 21 cents but still averaged $3.90/mile Melon shipments did bolster load counts from McAllen, Texas. Apple season also boosted volumes out of the Midwest. 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 www.dat.com/trendlines and join the conversation on Twitter with @LoadBoards.

ST. LOUIS  — From both a volume and a pricing perspective, the U.S. freight economy continues to be extraordinarily strong, Cass Information Systems said in its monthly report issued Wednesday. “The Cass Freight Shipments and Expenditures Indexes are clearly signaling that the U.S. economy, at least for now, is ignoring all of the angst coming out of Washington about the trade wars,” said Donald Broughton, founder and managing partner of Broughton Capital, a deep data driven quantimental economic and equity research firm, and who authored the report. “Despite Wall Street’s concerns about the increased threat of inflation or interest rates hikes, these indexes are displaying accelerating strength on top of increasingly difficult comparisons. Demand is exceeding capacity in most modes of transportation by a significant amount. In turn, pricing power has erupted in those modes to levels that continue to spark overall inflationary concerns in the broader economy.” The Cass report said the organization does not fear long-term inflationary pressure as technology continues to provide multiple ways to increase asset utilization and price discovery in all parts of the economy, especially in transportation. “In fact, we are seeing more signs that electronic logging devices initially hurt the capacity/utilization of truckers (particularly small truckers), but many of the truckers most adversely affected are now beginning to get some of the loss in utilization back, especially in the dry van and reefer marketplaces. The flatbed segment of trucking, however, is continuing to struggle with productivity after the adoption of ELDs.” The report noted that both shipments and expenditures first turned consistently positive 19 months ago. “The current level of volume and pricing growth is signaling that the U.S. economy is growing, but that level of growth may have reached its short-term expansion limit. The 10.6 percent year-over-year increase in the July index is yet another data point confirming that the strength in the U.S. economy continues,” Broughton wrote. “We are confident that the increased spending on equipment, technology and people will eventually result in increased capacity in most transportation modes. That said, many modes are reporting limited amounts of capacity or even no capacity at any price shippers are willing to pay.” Cass said the first seven months of 2018 have clearly signaled that, barring a negative “shock event,” 2018 will be a very strong year for transportation and the overall economy. July, June, May, April and March 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. Broughton said that the year-over-year percentage change is notable because the freight recovery started in the second half of 2016 (i.e., tougher comparison) and because only when comparisons were weak (i.e., 2009-2010) were the percentage increases so high. “Said another way, we normally only see such high percentage increases in volume when related to easy comparisons,” he wrote. “That these percentage increases are so strong and strong against tough comparisons, explains why our outlook is so bullish, why capacity is so constrained, and why realized pricing is so strong.” Cass said consumers were starting to spend, albeit not as much with brick and mortar retailers, noting that millennials are starting to form households in earnest. “Long derided by critics as ‘wanting to live in their parent’s basement forever,’ we would note that instead they may have simply been doing the same as previous generations,” Cass said. “They are simply marrying later than their parents, who married later than their parents, who married later than their parents. As life expectancy and the percentage of population attaining higher education has increased, so has the age at which they first marry. We should also point out that household formation is an extremely strong driver of consumer spending, and that there are more millennials than baby boomers in the U.S.” The report said that with the surge in the price of WTI crude back above $45 a barrel in April 2016, the industrial economy’s rate of deceleration first eased and then began a steady improvement. Now with oil back above $67 a barrel, the U.S. oil industry is now fracking new wells in all major shale fields.”

Class 8 truck sales in the United States in July decreased slightly from June but were considerably above July 2017, according to information released by WardsAuto. Wards reported sales of 20,649 in July 2018 compared with 21,351 in June, a decrease of 3.3 percent, marking only the second time in the past six months a decline was reported. Only Kenworth (18.8 percent) and International (8.4 percent) posted gains in July over June. Every nameplate showed an increase in July 2018 over July 2017 led by Volvo (81.4 percent) and International (66.2 percent). Over-to-date sales in 2018 are 31.1 percent ahead of the same seven months in 2017. Again, International (63 percent) and Volvo (57.9 percent) were the largest gainers.

PORTLAND, Ore. — Spot market freight availability dropped sharply in July, returning to typical seasonal levels after an all-time peak in June, according to DAT Solutions, which operates North America’s largest load board marketplace and DAT Freight Index, a monthly indicator of spot market trucking. Spot truckload freight volume fell 29 percent month over month but increased 3.4 percent compared to July 2017. The decline brings freight levels in line with July volumes in 2017 and 2014, the previous record-holders on the DAT Freight Index “Spot market rates did not drop as much as we would expect in July,” explained Mark Montague, pricing analyst at DAT. “Going forward, rate trends are likely to follow a normal seasonal pattern but at a level that’s 25 to 30 percent higher than in 2017.” Compared to June, the national average spot van rate fell 2 cents to $2.29 per mile, while the flatbed rate slid 5 cents to $2.77. Rates for refrigerated (“reefer”) equipment dropped steeply, down 9 cents to $2.61 per mile, as produce season wound down in California. Spot reefer and flatbed rates both exceeded the comparable contract rates. The average contract reefer rate rose 3 cents to $2.59 per mile while the contract flatbed rate lost 5 cents to $2.73. Compared to July 2017, the average spot rate for van equipment was 51 cents per mile higher last month, the reefer rate was up 54 cents, and the flatbed rate was 60 cents higher. Established in 1978, DAT operates a network of load boards serving intermediaries and carriers across North America. For more than a decade DAT has published its Freight Index, which is representative of the dynamic spot market. The DAT Freight Index reflects load posting volume on the DAT network of load boards, and 100 on the Index represents the average monthly volume in the year 2000. Additional trends and analysis are available at DAT Trendlines. DAT operates the largest truckload freight marketplace in North America. Transportation brokers, carriers, news organizations and industry analysts rely on DAT for market trends and data insights derived from 270 million freight matches (2018 estimate) and a database of $57 billion in annual market transactions. Related services include a comprehensive directory of companies with business history, credit, safety, insurance and company reviews; broker transportation management software; authority, fuel tax, mileage, vehicle licensing, and registration services; and carrier onboarding. Founded in 1978, DAT Solutions LLC is a wholly owned subsidiary of Roper Technologies, a diversified technology company and constituent of the S&P 500, Fortune 1000, and Russell 1000 indices.  

WASHINGTON — With retail sales rising and retailers rushing to bring merchandise into the country ahead of proposed new tariffs on products from China, imports at the nation’s major retail container ports have set two new records this summer and are expected to set another this month, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates. “Tariffs on most consumer products have yet to take effect but retailers appear to be getting prepared before that can happen,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “We’re seeing new record levels every month this summer. Much of that is to meet consumer demand as tax reform and a thriving economy drive retail sales, but part of it seems to be concern over what’s to come. The good news for consumers is that avoiding tariffs holds off price increases that will inevitably come if the reckless and misguided trade war is allowed to continue.” “Global Port Tracker has only marginally downgraded imports for 2018 but we expect to see a larger downturn going into 2019 resulting from the trade war as well as an anticipated slowing of the economy,” Hackett Associates Founder Ben Hackett said. “The volatility and non-fact-based decisions coming from Washington have created uncertainty.” Ports covered by Global Port Tracker handled 1.85 million Twenty-Foot Equivalent Units in June, the latest month for which after-the-fact numbers are available. That was up 1.6 percent from May and up 7.8 percent year-over-year. A TEU is one 20-foot-long cargo container or its equivalent. July was estimated at 1.88 million TEU, up 4.4 percent year-over-year. August is forecast at 1.91 million TEU, up 4.4 percent; September at 1.82 million TEU, up 2.1 percent; October at 1.88 million, up 4.9 percent; November at 1.81 million TEU, up 2.6 percent, and December at 1.79 million TEU, up 4 percent. The June number set a new record for the number of containers imported during a single month, beating the previous record of 1.83 million TEU set in August 2017. The July estimate – which is subject to revision when the numbers become final – appeared to take the record higher and August should set yet another record. While cargo numbers do not correlate directly with sales, the record imports mirror strong results seen by retailers this spring and summer that are expected to continue through the remainder of the year. Retail sales as calculated by NRF – excluding automobiles, restaurants and gasoline stations — were up 4.2 percent year-over-year in June and up 4.4 percent on a three-month moving average. NRF is forecasting that total 2018 sales will be up between 3.8 percent and 4.4 percent over 2017. 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, 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. Hackett Associates provides consulting, research and advisory services to the international maritime industry, government agencies and international institutions. www.hackettassociates.com  

ADDISON, Texas — Daseke Inc., the largest flatbed, specialized transportation and logistics solutions company in North America, is being joined by Builders Transportation Co., a Memphis, Tennessee-based carrier of steel, aluminum and metal products. Builders Transportation operates a fleet of more than 300 company trucks and nearly 500 spread-axle trailers. The company is solely focused on traditional flatbed operations through the 48 contiguous states, primarily in the eastern two-thirds of the U.S., hauling coil steel, wire products, structural and sheet steel, aluminum products, building materials, cast iron, steel pipe and machinery. It has won Carrier of the Year awards from several of its core customers. Under the terms of the purchase agreement, Daseke acquired Builders Transportation for a total consideration of $53.8 million, which included $3.4 million in Daseke stock. For the trailing 12-month period ended June 2018, Builders Transportation did an estimated $72.4 million in revenue and an estimated $9.7 million in Adjusted EBITDA. “We’ve had Builders Transportation on our radar for quite some time — we’ve been impressed with the focus and family-rooted culture of the company,” said Don Daseke, CEO of Daseke. “They work with A-list customers, and like our other operating companies, have a passion for their people. The company has been in business since 1954 and it has a long legacy as a family-run operation. They will be a great addition to the Daseke family.” Builders Transportation has been family owned and operated since Frank Phillips Sr. purchased the six-truck operation in 1961 and, along with his sons, has steadily grown the business to where it is today. According to John Phillips, CEO of Builders Transportation, Daseke is the right fit, at the right time. “Over the years, we’ve had companies approach us, but we never took any of that seriously — we didn’t want to give up what our family has built,” he said. “We have a long history and are very protective of our heritage. We have people here who have been with us their entire career. Being with Daseke lets us continue being who we are, and that’s critically important to us.” “The group of operating companies we’re joining reads like the ‘who’s who’ in flatbed and specialized trucking,” said Gene Phillips, COO of Builders Transportation. “We’re looking forward to sharing best practices and comparing notes on business strategy with our new sister companies. The consolidated purchasing power, through Daseke Fleet Services, is also very compelling. We expect it will help us reduce our costs and make us even stronger.” Daseke Inc. offers services to many of the world’s industrial shippers through experienced people, more than 5,200 tractors, more than 11,000 flatbed and specialized trailers, and million-plus square feet of industrial warehousing space. For more information, visit www.daseke.com.  

COLUMBUS, Ind. — ACT Research reports that preliminary North America Class 8 net order data show the industry booked 52,400 units in July, setting a new all-time record in what is typically the weakest order intake month of the year. Complete industry data for July, including final order numbers, will be published in mid-August. “Preliminary NA Class 8 net orders rose 24 percent month-over-month to set a new all-time record of 52,400 units in July. The previous record was set in March 2006 (52,194). July’s activity was nearly triple (180 percent) that of July 2017,” said Steve Tam, ACT’s vice president. “The feat is made even more spectacular,” he said, “since July is typically the weakest order intake month of the year. Besides capturing the distinction of the best month in the current rally nominally, on a seasonally adjusted basis orders are also the best on record, outpacing the March 2006 order intake by 13,500 units, or 165,000 on a SAAR basis.” As to medium-duty orders, Tam said, “Medium-duty activity slowed decidedly in July, with preliminary NA Classes 5-7 net orders falling 27 percent month-over-month, to 19,500 units. Longer term, however, medium duty activity remained positive, up 18 percent year-over-year and 22 percent year-to-date. Seasonal adjustment boosts the Classes 5-7 orders moderately, relegating it to the best showing in the past seven months.” ACT is the recognized leading publisher of new and used commercial vehicle (CV) industry data, market analysis and forecasting services for the North American market, as well as 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. For more information on ACT, go to www.actresearch.net.