Business

FORT SMITH, Ark. — ArcBest, a logistics company, said all supplemental agreements to the ABF National Master Freight Agreement with the International Brotherhood of Teamsters have been fully ratified, and that all of the agreements have a July 29 implementation date. The 63-month agreement covering Teamster-represented employees at ABF Freight, ArcBest’s LTL subsidiary, runs through June 30, 2023, and is retroactive to April 1, 2018. The ABF National Master Freight Agreement with the IBT was initially reached on March 28, 2018, and was ratified on May 10, 2018, along with a majority of the regional supplements. Major economic provisions of the master agreement include: Restoration of a vacation week, which begins accruing on anniversary dates that begin on or after April 1, 2018, with the new vacation eligibility schedule being the same as the applicable 2008-2013 supplemental agreements Wage increases in each year of the contract, beginning July 1, 2018 A $1,000 ratification bonus for full-time active employees and $500 for qualifying casual employees, payable within 30 days of ratification Contributions to multiemployer pension plans to remain at current rates for each fund Continuation of existing health coverage at no cost to represented employees Changes to purchased transportation provisions with certain protections for road drivers Profit-sharing bonuses upon ABF Freight’s achievement of annual operating ratios of 96 percent or below for a full calendar year during the contract period The combined contractual wage and benefit rate, including the ratification bonus and additional vacation time, increases approximately 2 percent on a compounded annual basis throughout the contract period.  The additional week of vacation will be expensed as it is earned for anniversary dates that begin on or after April 1, 2018. The ratification bonus will be expensed over the 63-month contract beginning April 1, 2018. “The full ratification of our labor agreement with the Teamsters is a very positive step forward for ABF Freight and ArcBest, and we thank all of our employees for their dedication to serving our customers while the process was underway,” said Chairman, President and Chief Executive Judy R. McReynolds.  “Our goal was to achieve a contract that was fair to employees and affordable for the company. Our Teamster employees are the best-compensated in the industry in terms of wages and benefits including healthcare and pension. This agreement provides stability for our employees and for our customers at a time when the logistics industry continues to undergo rapid change.” “This important agreement for ABF gives us a strong foundation for another five years and provides additional opportunities for us to grow,” said ABF Freight President Tim Thorne. By focusing on our customers who value our well-regarded LTL service and the additional supply chain solutions that ArcBest offers to solve complex logistical challenges, we are well positioned for the future.”

COLUMBUS, Ind.  — The average price of total used Class 8 trucks in June was flat on a month-over-month basis, but fared better, rising 15 percent, when compared to June 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 13 percent year-over-year, while average mileage fell 1 percent and average age declined 2% when compared to the previous June. “Dealers are reporting that used truck sales are very strong, which is good news for dealers, OEMs, finance companies and truckers trading for new trucks,” said Steve Tam, vice president at ACT Research. “The problem is the used truck market is so strong that truck dealers are struggling to find enough trucks to cover the demand they have. As the year progresses, an increasing supply, because of increasing new truck sales, along with a softening in demand will likely lead to slowing price appreciation.” Individual market segments yielded mixed results last month. “Retail and wholesale markets declined 5 percent and 25 percent, respectively, on a month-over-month basis in June, while sales via auctions recorded a 23 percent month-over-month gain. However, when compared longer term, the auction and retail markets show year-over-year increases of 41 percent and 23 percent, respectively, but the wholesale channel was down 18% compared to June 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).

ARLINGTON, Va. — American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index fell 0.4 percent in June after rising 0.4 percent in May. In June, the index equaled 113 (2015=100), down from 113.4 in May. ATA revised the May increase from the originally reported 0.7 percent to 0.4 percent. Compared with June 2017, the SA index increased 7.8 percent, up from May’s 7.4 percent year-over-year increase. Year-to-date, compared with the first half of last year, tonnage increased 7.9 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 116.3 in June, which was 1.1 percent below the previous month (117.6). “In the second quarter, we saw the tonnage index jump 1.8 percent from the previous quarter and 8.4 percent from a year earlier,” said ATA Chief Economist Bob Costello. “This robust growth fits with what is likely to be a very strong GDP reading for the second quarter. I expect the growth in tonnage to moderate, but remain at very high levels in the months ahead.” Trucking serves as a barometer of the U.S. economy, representing 70.6 percent of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled nearly 10.5 billion tons of freight in 2016. Motor carriers collected $676.2 billion, or 79.8 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. ATA is the largest national trucking trade association, with a federation of 50 affiliated state trucking associations and industry-related conferences and councils.  

JOPLIN, Mo. — CFI, a North American full-truckload carrier and subsidiary of TFI International, is increasing mileage pay for experienced over-the-road long-haul drivers, as well as making additional enhancements to its overall compensation package for professional company drivers and independent contractors. Effective July 22, 2018, current company OTR drivers will receive a per-mile pay increase of between $0.01 and $0.03. The increase for which a driver qualifies is based on accumulated career driving miles with the company. CFI is also accelerating the time it takes for a driver to reach top mileage pay, condensing the previous steps in mileage attainment and enabling drivers to reach higher pay levels faster. Independent contractors are included with a $0.03 cent per mile increase. “It is time to reward our professional drivers for their dedication and superior performance,” said Greg Orr, CFI’s president. “By collaborating with our customers, we increased network efficiency to provide record productivity for our drivers to run more miles. “We’re pleased to share the success with our drivers. This includes pay, amenities, support programs and benefits that demonstrate our driver-first culture.We believe the overall package and work environment we offer makes CFI the best choice for experienced professionals, as well as those looking to start a career in trucking.” Orr said CFI recently added its first-ever CFI Per Diem Program in response to tax law changes for 2018. The program enables drivers to pay a low fee for CFI to administer the per diem program as part of the payroll process, which enables drivers to maximize potential tax savings from on-the-road meal deductions and keep more of their earnings. Orr said that CFI’s high-productivity performance also was supporting additional earnings opportunity for drivers. “We are doing an excellent job of getting our drivers quality miles, turning them quickly from one load to the next, maximizing fuel and route efficiency, and improving revenue per truck,” he said. “That’s a testament to the skill and professionalism of our drivers and the operations team that supports them. And, it also means that our drivers are capturing up to 200 more miles a week, which equates to some 10,000 miles a year in extra productivity-based miles earned.” Other amenities available to CFI experienced drivers include competitive health benefits, a 401(k)-retirement plan with company match, a pet-companion policy, free passenger passes, paid parking, a destination ownership program, a referral program, reimbursement for showers and rewards for safety performance. The company also provides tuition reimbursement or tuition assistance for new drivers learning the trade and operates a driver-finishing program for those entering the business with minimal driving experience. CFI also actively recruits U.S. military veterans, enrolling them in specialized veteran-focused driver orientation and training. With modern equipment, Orr said CFI operates one of the industry’s youngest fleets, posting an average tractor age of just under two years. CFI is continuing to refresh its fleet with 600 new Kenworth T-680 over-the-road tractors in the company’s signature “Viper Red” color. All these programs and investments, supported by a family-friendly culture, reinforce CFI’s goal to be the driver-preferred truckload carrier in the industry, Orr said. “Professional truckload drivers provide an invaluable service that underpins the growth and prosperity of our economy,” he said. “We recognize this and focus on helping our drivers enjoy a compensation package that’s among the industry’s best, and a work environment that supports the best possible quality of life for drivers and their families.” CFI currently has over 600 current drivers who have reached the 1-million mile mark.

Sales of Class 8 truck in the United States in June scored a triple crown, topping the previous month, the same month last year and year-to-date sales, according to WardsAuto. June sales totaled 21,351, an increase of 11.2 percent over May 2018, 23.3 percent over June 2017 and 30.5 percent year-to-date. Sales in May had totaled 19,195, sales in June 2017 reached 17,310, and 2018 year-to-date sales of 110,025 is 25,703 sold for the same time period in June 2017 when 84,322 had been sold as of June 30. Three nameplates posted gains of over 26 percent in June 2018 compared with May 2018 — Freightliner at 26.6 percent (7,672 in June 2018 compared with 6,050 in May), Peterbilt at 26.4 percent (3,328 compared with 2,632) and Mack at 26.1 percent, 2026 compared with 1,607). Volvo (56 percent) and International (45.7 percent) lead the gains category compared with June 2017. The strongest year-to-date increases belong to International (62.4 percent) and Volvo (54.2 percent).

CHATTANOOGA, Tenn. —Covenant Transportation Group (CTG) has completed the acquisition of Landair Holdings of Greeneville, Tennessee, the holding company for Landair Transport and Landair Logistics. Landair is a dedicated and for-hire truckload carrier, as well as a supplier of 3PL transportation, warehousing and logistics inventory management services. Under the terms of the agreement, CTG purchased 100 percent of Landair’s outstanding stock in exchange for approximately $83 million in cash. At closing, Landair also had approximately $15.5 million of debt, which CTG has refinanced. GTG’s Chairman and CEO David R. Parker, released highlights of the transaction, including: Landair is expected to be immediately accretive to CTG’s earnings John Tweed will continue to lead the Landair business as its president CTG expects to maintain Landair’s Greeneville, Tennessee, headquarters, and Landair’s employees and customers should notice little change moving forward. Landair was founded in 1981 by Scott Niswonger and Ed Sayler. Presently, Landair operates approximately 430 trucks and 900 trailers, as well as managing 12 distribution facilities covering approximately 1.8 million square feet of warehouse space. Covenant currently has 2,559 tractors and 7,134 trailers. Landair also has a safe and experienced corps of professional drivers, Parker said. Landair generated approximately $121 million in total revenue for the year ended Dec. 31, 2017. Approximately $60 million of Landair’s fiscal 2017 total revenue related to dedicated truckload operations, $41 million related to managed freight services, and the remaining $20 million related to one-way truckload operations. “We are very pleased to welcome the entire Landair team to the Covenant family,” Parker said. “We pursued Landair because of their proven record of growth and profitability in the dedicated and 3PL markets, their talented management team led by John Tweed, and the quality and integrity of their culture represented by their co-founder, Scott Niswonger. Landair is a perfect fit with our strategy to grow in areas where we can get closer and more heavily integrated with customers. We believe the backing of CTG will provide additional resources to expand Landair’s dedicated truckload operations to best meet the needs of its strong customer base, as well as improve profit margins through identified cost synergies. Additionally, Landair’s existing managed freight business is expected to immediately improve CTG’s collective managed freight service offering, adding experience, human capital and important additional systems capabilities.” “Today is the start of the next chapter in the Landair story,” Scott Niswonger said. “We are blessed to have identified a strategic buyer that was founded on faith-based principles and is committed to continued investment in our business and people.” Tweed said he was excited about the combination of the companies because it would give Landair and its customers access to, and the benefit of, the comprehensive resources of CTG. “Continued growth at the pace we are experiencing requires access to the resources and support of a strong partner like CTG. The alignment in company cultures should enable a smooth integration of the two well-respected organizations,” he said. CTG’s estimate of Landair’s pro forma fiscal 2018 EBITDA is a range of $18.5 to $19 million. The transaction is expected to add in the range of 4 cents to 8 cents per diluted share to CTG’s consolidated earnings for the second half of fiscal 2018, and 16 cents to 20 cents per diluted share to consolidated earnings for the full fiscal 2019 year. Tweed said cost reduction opportunities at Landair have been identified in equipment, fuel, workers’ compensation and casualty insurance, over-the-road services, and other areas. “The range of earnings accretion expectations should narrow as additional information becomes available concerning the allocation of intangibles and determination of the magnitude of non-cash amortization associated with the acquisition, as well as the pace at which we will be able to drive cost and revenue synergies through the combined organization,” he added. For more information about the acquisition, visit www.covenanttransport.com/investors. Covenant Transport Services is a registered tradename of Covenant Transport Inc., Covenant Transport Solutions Inc., Southern Refrigerated Transport Inc., Star Transportation Inc. and Landair Transport and Landair Logistics of Greeneville, Tennessee.    

For the week ended July 7 freight rates reached record highs at the end of June, only to shoot even higher during the July 4th holiday week, DAT Trendlines reports. The national average van rate rose to a new record of $2.45 per mile and the national reefer rate jumped to $2.77 per mile. The national flatbed rate held steady at $2.82 per mile, but the flatbed load-to-truck ratio declined for the fourth week in a row. Load-to-truck ratios declined for vans and reefers, as well, due partly to holiday vacation schedules the DAT report said. When compared to the previous week, spot market loads were down 32 percent; van load-to-truck ratios decreased 16 percent; spot van rates were up 5.6 percent and flatbed load-to-truck ratios were down 23 percent. Spot flatbed rates, however, stayed the same, while refrigerated load-to-truck ratios were down 29 percent and reefer spot rates were up 3 percent. Fuel costs were up six tenths of a cent for the week.

The two research companies that provide data on North American truck sales have reported June orders in excess of 40,000, one calling the number the highest June ever recorded. ACT Research reported that preliminary North America Class 8 net order data show the industry booked 42,200 units in June. FTR reported preliminary North American Class 8 orders for June at 41,800 units, making it the highest June ever recorded, 140 percent above a year ago. North American Class 8 orders have now exceeded 40,000 units in four of the six months in 2018, FTR said. “Preliminary net order data indicate that demand for Class 8 trucks continued to be strong in June, improving 133 percent compared to year-ago June orders,” said Kenny Vieth, ACT’s president and senior analyst. “As June is typically a weak order month, the robust actual order volume boosts June’s seasonally adjusted volume to the best of the cycle and second best of all time at 48,200 units. Through year-to-date June, Class 8 orders have been booked at a 492,.000 seasonally adjusted annual rate.” FTR’s Don Ake, vice president of commercial vehicles, said fleets are ordering such large numbers of trucks that the OEM production cannot keep up with demand because of component shortfalls. The backlogs are being moved out further, which is pushing fleets to get orders in sooner rather than later so they can find a build slot, Ake said, noting that North American Class 8 orders for the past twelve months have now totaled 411,000 units. “There is an enormous demand for trucks because of burgeoning freight growth and extremely tight industry capacity. However, supply is severely constrained because OEM suppliers cannot provide the needed parts and components required to build more trucks fast enough. This bottleneck is causing fleets to get more orders in the backlog in hopes of getting more trucks as soon as they are available,” Ake said. “Fleets are desperate for more equipment, but trucks are in short supply due to the supplier constraints. This is creating a surge in orders as fleets react to this unusual situation.  If OEMs were producing at capacity, the truck build this year could have been as high as 360,000. As for medium duty orders, Vieth said solid medium duty activity continued in June, if below levels seen through the first quarter. For the month, preliminary NA Classes 5-7 net orders rose 23 percent year-over-year, to 26,400 units. With a favorable boost from seasonality, June’s seasonally adjusted order volume jumped to 29,100 units, bringing Classes 5-7 orders booked through the first half of 2018 to a 320,000 seasonally adjusted annual rate, Vieth said.  

WASHINGTON — U.S. employers kept up a brisk hiring pace in June by adding 213,000 jobs, while trucking added 2,500 jobs, a sign of confidence in the economy despite the start of a potentially punishing trade war with China. Trucking had gained 3,600 jobs in May. The job growth wasn’t enough to keep the unemployment rate from rising from 3.8 percent to 4 percent, the government said Friday. But the jobless rate rose for an encouraging reason: More people felt it was a good time to begin looking for a job, though not all of them immediately found one. The growing optimism that people can find work suggested that the nine-year-old U.S. economic expansion — the second-longest on record — has the momentum to keep chugging along. Yet its path ahead is uncertain. Just hours before the monthly jobs report was released, the Trump administration imposed taxes on $34 billion in Chinese imports, and Beijing hit back with tariffs on the same amount of U.S. goods. “The tariffs jumble things about what we should expect to see in the next few months,” said Cathy Barrera, chief economist at ZipRecruiter, the online jobs marketplace. Some companies are likely to respond to the tariffs by putting their hiring plans on hold until the trade picture becomes clearer. Major U.S. stock indexes were mostly higher in early trading Friday after the jobs report was issued, keeping the market on track for a weekly gain after two weeks of losses. The June jobs data showed an economy that may be on the cusp of producing stronger pay growth, something that could be disrupted if additional tariffs are imposed. Trump has suggested that more than $500 billion worth of Chinese imports could be taxed in his drive to force Beijing to reform its trade policies, which he insists have unfairly victimized the United States. Average hourly pay rose just 2.7 percent in June from 12 months earlier. That relatively modest increases means that, after adjusting for inflation, overall wages remain nearly flat. But the average was skewed downward in June because the influx of job seekers was due mainly to those with only a high school education or less, who are generally paid lower wages. The ranks of unemployed people seeking jobs jumped by 499,000 in June, which caused the unemployment rate to rise from its previous 18-year low. With 93 straight months of job growth — a historical record — many employers have said they’re feeling pressure to raise wages. But significant pay gains have yet to emerge in the economic data. Manufacturers added 36,000 jobs last month; the education and health sector added 54,000. But retailers shed 21,600 jobs, with the losses concentrated at general merchandise stores. In its report Friday, the government revised up its estimate of job growth in May and April by a combined 37,000. Over the past three months, the economy has produced a robust average monthly job gain of 211,000. The broader U.S. economy appears sturdy. Economists are forecasting that economic growth accelerated to an annual pace of roughly 4 percent during the April-June quarter, about double the previous quarter’s pace. Signs of strength have helped bolster hiring despite the difficulty many employers say they’re having in finding enough qualified workers to fill jobs. Manufacturers and services firms have said in recent surveys that their business is improving despite anxiety about the tariff showdown between the United States and China. Housing starts have climbed 11 percent so far this year. Retail sales jumped a strong 0.8 percent in May in a sign that consumers feel secure enough to spend. Though economic growth appears to be solid, the gains have been spread unevenly. President Donald Trump’s tax cuts have provided a dose of stimulus this year, but the benefits have been tilted significantly toward wealthy individuals and corporations. Savings from the tax cuts enabled companies in the Standard & Poor’s 500 stock index to buy back a record number of shares in the first three months of 2018. Yet the tax cuts have done little to generate substantial pay growth. Most economists say they still think the low unemployment rate will eventually force more employers to offer higher pay in order to fill jobs. The economy also faces a substantial threat from the Trump administration’s trade war with China and from other, ongoing trade disputes with U.S. allies, including Canada and Europe. Any escalation in the conflict with China could disrupt hiring as companies grapple with higher import prices and diminished demand for their exports. On Thursday, Trump floated the prospect of imposing tariffs on more than $500 billion in Chinese imports. The Trump administration has also applied tariffs on steel and aluminum from allies like Canada and Mexico and has threatened to abandon the North American Free Trade Agreement with those two countries. Trump has also spoken about slapping tariffs on imported cars, trucks and auto parts, which General Motors has warned could hurt the U.S. auto industry and drive up car prices. Automakers added 12,000 jobs in June, but the tariffs could weigh on that industry’s job growth in the coming months.

WASHINGTON — The National Retail Federation (NRF) today warned consumers that U.S. tariffs on $34 billion in Chinese goods set to take effect Friday will drive up prices for a broad range of products, destroy jobs and hit the public directly in the pocketbook. “With tariffs against China taking effect, American consumers are one step closer to feeling the full effects of a trade war. These tariffs will do nothing to protect U.S. jobs, but they will undermine the benefits of tax reform and drive up prices for a wide range of products as diverse as tool sets, batteries, remote controls, flash drives and thermostats,” an NRF news release said. The NRF urged President Donald Trump’s administration to abandon its plans for tariffs “on another $200 billion in Chinese imports,” which it said, “will destroy thousands of American jobs and raise prices on virtually everything sold in our stores.” “Reining in China’s abusive trade policies is a goal shared by many countries, but a strategy based on unilateral tariffs is the wrong approach and it has to stop,” the release added. NRF is the world’s largest retail trade association. Based in Washington, it 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. NRF says retail is the nation’s largest-private sector employer, supporting one in four U.S. jobs — amounting to 42 million working Americans and contributing $2.6 trillion to the annual Gross Domestic Product or GDP.

WASHINGTON — The average on-highway price of a gallon of diesel increased 2 cents to $3.236 for the week ending July 2, according to the Energy Information Administration of the Department of Energy. The increase ends a four-week run of declines, which had been preceded by 10 straight weeks of increases, the EIA reported. The average price for the week of July 2 is 76.4 cents a gallon higher than one year ago when the price was $2.472. Every section of the country showed an increase topped by a 3.7 increase in the Rocky Mountain region and a 2.8 cent increase in the Midwest. The lowest increase was in New England where the average price went up one-tenth of a penny. Click here for a complete list of average prices by region for the past three weeks.  

KNOXVILLE, Tenn. —Knoxville-based specialty chemicals transportation company Highway Transport is celebrating 70 years of operation with the launch of a special commemorative video. Additionally, Highway Transport is experiencing growth, expansion in the southeastern US, and 75 new Mack Anthem trucks are being added to the fleet. “Specialty chemical companies are demanding that we expand our 2018 capacity, particularly throughout the southeastern corridor of the U.S. where many chemical manufacturers are located,” said Marshall Franklin, president & CFO. “Specifically, Highway Transport’s Geismar, Louisiana, location will expand. Our professional truck drivers are excited about the arrival throughout summer of 75 of the newest model of Mack Trucks Anthem model being added to our fleet.” “As our new video illustrates, Highway Transport chemical tanker truck drivers are an elite class of truck driver with a high level of skill,” said Director of Linehaul & Recruiting Joe Sheldon.  “They are everyday heroes with the deepest concern for others and the safest fleet on the road. Logistical planning is so much more sophisticated today. Routes are intentionally designed to provide shorter out-and-back runs preferred by family-minded drivers. Highway Transport’s service centers are strategically located so that drivers enjoy more home time than ever. System drivers are at the heart of Highway’s growth strategy.” The new Mack Anthems are being allocated to system drivers, Franklin said, adding that drivers who are willing to run throughout Highway Transport’s system will be greatly rewarded. This includes: A pay upgrade. Highway Transport is increasing all mileage scales by an average of 4.5 percent and is also increasing hourly detention and loads below 150 miles rates by $1 per hour. A new per diem program. This program will allow drivers to have $63 of daily pay become nontaxable when they are away from home. Driver “net” or “take home” pay will be higher utilizing this plan. Additional incentive pay for system drivers. There is a system driver premium of 5 percent of pay. This is paid in a quarterly lump sum. It reflects Highway Transport’s desire to reward the additional flexibility and sacrifice made by the system drivers who stay away from home for longer periods of time, Franklin said. Sheldon said with an intense focus on safety, Highway Transport’s 70-year chemical tanker legacy allows the company to offer executive-style pay and benefit packages to CDL drivers with chemical tanker experience and HazMat certification. Potential drivers can discover higher-than-average wages when applying on the company’s recruiting website at www.drive4highway.com. “Chemical companies ask us to extend our capacity into other parts of the country, and we do what it takes to serve those customers,” said Rick Lusby, vice president of safety. “The key to Highway Transport’s success is that we achieve growth while maintaining an impeccable safety record. We recruit top driving talent and offer truck drivers the best equipment.” Highway Transport has a presence in Knoxville; Chattanooga, Tennessee; LaPorte, Texas; Freeport, Texas; Garland, Texas; McDonough, Georgia; Croydon, Pennsylvania; Florence, Kentucky; Joliet, Illinois; Wyandotte, Michigan; and Geismar, Louisiana.

GREEN BAY, Wis. — Operating a fleet of over 10,000 tractors that travel along the same highways and byways as the motoring public means caution needs to be exercised every minute and every mile of the way. Schneider, a provider of transportation, logistics and intermodal services, follows its No. 1 core value of “Safety First and Always” in everything it does, and has been awarded the National Safety Council’s esteemed Green Cross for Safety Excellence Award. Schneider is the first truckload carrier to be honored with this award. Schneider has long believed in investing in proven technology that enhances roadway safety. This award recognizes the successes of the company’s collision mitigation initiatives and affirms the company emulates its safety core value, according to Tom DiSalvi, Schneider’s vice president of safety and loss prevention. With its proven success, Schneider encourages others – original equipment manufacturers, fleets and truck owners – to add collision mitigation technology on all new trucks, making highways safer for all motorists, he said. “To be recognized by the National Safety Council is a tremendous honor – this is the gold standard for recognition in safety, and we are proud our focus on safety shines through in all we do,” DiSalvi said. “It’s important to transport our customer’s materials on time, but it’s even more important to do it safely. We have now operated more than 3 billion miles with our collision mitigation system, and continue to work with original equipment manufacturers and component manufacturers to make the technology even better.” In 2012, Schneider was one of the first large-scale carriers to implement a collision mitigation system on its fleet. This system reduced rear-end crash frequency by 68 percent and severity by 95 percent. The NSC presents the Green Cross for Safety Excellence Award to organizations that show an unrelenting pursuit of exceptional, transferable safety. Organizations that uphold the best safety practices, programs, professionals, advocates and innovations advance NSC’s mission. “Our award winners recognize that safety is a journey rather than a destination. These individuals and organizations constantly ask, ‘What more can we do?’ We are proud to honor the winners and to recognize all the outstanding nominees that share the council’s goal of eliminating preventable deaths and injuries in our lifetime,” said Deborah A.P. Hersman, president and CEO, National Safety Council. For more information on Schneider visit www.schneider.com.

WASHINGTON — The economic impact of Trump administration tariffs imposed on a number of goods, but especially steel and aluminum, continues to generate growing concern – especially regarding the cost of infrastructure projects. The American Institute for International Steel, for example, noted that U.S. steel-using manufacturers are encountering product price increases of 50 percent or more and are experiencing difficulty in obtaining the steel they need, regardless of whether they buy domestic-sourced or imported steel. “We continue to hear from many members that they are experiencing significant increases in the prices they are paying for steel and aluminum products. Some are even getting reports that delivery schedules will be delayed, Brian Turmail, spokesman for the Associated General Contractors of America trade group, told the American Association of State Highway and Transportation Officials Journal. “While we are all for expanding domestic steel and aluminum production, tariffs and the broader damage they inflict on the economy are not the right approach,” he said. “A better solution is to boost domestic production by increasing long-term infrastructure funding.” “Infrastructure in this country is already expensive – communities struggle not only to have new projects built, but also existing ones properly maintained,” Rep. Pete Olson, R-Texas, a member of the House Energy and Commerce, told the Journal via email. “Every increase in costs makes it harder to get to work and keep Americans and commerce moving,” he said. “It also makes it more likely that smaller projects get left behind as the price tag for the highest profile ones starts to inflate.” On May 31 when the tariffs were first imposed, Olson noted in a statement that “while I respect the president’s goal of seeking a better trade balance for our nation, trade is critically important to our economy and I have substantial concerns about this action.” He explained that “past precedent” has shown tariffs have “unintended consequences” on consumers and businesses across the country, raising prices on everything from a new car or truck to a new pipeline or petrochemical plant, and could also trigger broader and more damaging trade disruptions. “”We don’t know for sure and that’s what makes a trade war so dangerous,” Olson told the Journal. “Americans could face everything from less infrastructure to more expensive cars. Businesses that export – and the Americans who work for them or form their supply chain – could find themselves facing retaliation that hurt American competitiveness. Tariffs are taxes, but without the certainty that comes with each April 15.” The AIIS and two of its member companies – SIM-TEX, LP, of Waller, Texas, and Kurt Orban Partners, LLC, of Burlingame, California – are pursuing a broader legal tactic as well. They filed a lawsuit June 27 in the U.S. Court of International Trade over the “constitutionality” of the statute under which President Trump imposed a 25 percent tariff on imported steel, as well as a court order preventing further enforcement of the tariff as well. They allege that the statute being used to impose the tariffs – Section 232 of the Trade Expansion Act of 1962 – violates the constitutional prohibition against Congress delegating its legislative powers to the president because it lacks any “intelligible principle” to limit the discretion of the president. Section 232 allows the president to impose unlimited tariffs or create other trade barriers at his unfettered discretion if he believes they are needed so that “imports will not threaten to impair the national security,” which AIIS said is “too expansively defined” in Section 232. “Our complaint asks for a declaratory judgment and an injunction against its enforcement – meaning that the tariffs will no longer be collectable,” said Alan Morrison, lead counsel for the plaintiffs, during a press conference in Washington on June 27 regarding the lawsuit. “We are not seeking monetary damages at this time [because] most of the [AIIS] members do not pay the tariffs themselves – they are harmed because their businesses are reduced. That’s why we need an injunction; the harm is irreparable,” he said. “We’re also not debating wisdom of the tariff policy, because we think Congress is the forum for doing that.”

The expansion of e-commerce is changing delivery methods and freight patterns, which is adding “complexity” to the design of transportation networks, according to Leslie Richards, secretary of the Pennsylvania Department of Transportation (PennDOT), the Journal of the American Association of State Highway and Transportation Officials (AASHTO) reports. “Freight transportation is a major public policy issue and one that is becoming more visible to the general public,” Richards said in her prepared remarks for the Eastern Pennsylvania Freight Summit, held June 21-22 at Lehigh University in Bethlehem, Pennsylvania. “Goods movement is becoming more complex — e-commerce consumers are increasingly demanding goods and services that require shorter supply chains and global reach,” she added. “Just-in-time manufacturing and delivery practices have turned motor carrier fleets into rolling warehouses, with drivers who are faced with a limited supply of truck parking for required safety breaks.” PennDOT sponsored the summit along with several of its regional planning partners, including the Lehigh Valley Planning Commission, the Delaware Valley Regional Planning Commission and the Tri-County Regional Planning Commission. Richards said, changes in the retail industry in particular — because of e-commerce — will have “significant overall effects” on U.S. businesses, society and the nation’s transportation system. “Consumers are benefitting, but our aging freight infrastructure is struggling to keep up,” she said. Added to that are shifts in freight patterns being driven by e-commerce — shifts that include more localized delivery and more reliance on small fleets that use smaller vehicles, the Journal article stated. For example, Amazon announced on June 28 a new effort to help “entrepreneurs” build set up and manage delivery businesses operating fleets of up to 40 delivery vehicles delivering its online-ordered goods, providing “technology and operational support” of up to $10,000 per candidate to help acquire vehicles, branded uniforms, fuel, and comprehensive insurance coverage. “Customer demand is higher than ever and we have a need to build more capacity,” said Dave Clark, Amazon’s senior vice president of worldwide operations, in a statement. “As we evaluated how to support our growth, we went back to our roots to share the opportunity with small- and medium-sized businesses. We are going to empower new, small businesses to form in order to take advantage of the growing opportunity in e-commerce package delivery.” The pressure on transportation networks from e-commerce activity is expected to continue to grow, according to two research companies that monitor that sector. “E-retailing and logistics companies are increasingly focusing on expanding their presence in the North American markets, to extend their reach to remote customers,” said consulting firm Research & Markets in an April 26 report, which predicts that the market for “last-mile” logistics services in the U.S. will experience a compound annual growth rate of 12.76 percent between 2018 and 2022. “North America is witnessing extensive growth of online retailing or e-retailing, due to the growing volume of consumers preferring online stores. Consumers are increasingly ordering large volumes of goods online and shifting from brick and mortar stores for their purchases,” the firm said. “The demand for last mile delivery of large merchandise has witnessed strong growth during the past few years, driven by the growing consumer confidence in buying large and valuable goods from online shops,” added logistics research company Technavio in a May 7 report. “The scale of delivery network and the delivery efficiency plays a major role in vendor selection for delivery, due to which the service providers are focusing on expanding their geographical presence.”

GREENSBORO, N.C. — Peter Voorhoeve, currently the president and CEO of Volvo Group Australia, has been named president of Volvo Trucks North America, effective September 1. He succeeds Göran Nyberg, who left the company in April. Per Carlsson will continue to serve as acting president until September 1. Voorhoeve has led Volvo Group Australia since 2013, prior to which he held several senior management positions in the areas of aftermarket support, supply chain management and parts logistics during his nearly 20 years with the Volvo Group. Originally from the Netherlands, Voorhoeve holds an MS degree in industrial engineering and management science from the University of Technology in Eindhoven. He will be headquartered in Greensboro, North Carolina, and will report to Volvo Trucks President Claes Nilsson. “Peter Voorhoeve is a dynamic leader with a proven track record of success,” Nilsson said.  “His drive and intense focus on customer satisfaction will help us build on the success of the exciting new products and services we’ve recently introduced to the important North American market.”

NEW YORK — Just a month ago oil surged to its highest price in three years, and some investors were wondering if crude was again on its way to $100 a barrel. Instead, the price has tumbled. Reports say OPEC plans to support an increase in production at this week’s meeting, revamping an agreement that had capped production since late 2016. Trade tensions have also played a part in the slide, as investors feel that escalating rounds of tariffs and disputes could impede global economic growth. U.S. crude is now 8 percent below the $72 a barrel it reached in mid-May, although it’s still far higher than it was a year ago. Mark Hackett, chief of investment research at financial services firm Nationwide, says the worst of that volatility might be over, but that investors should watch out for rough periods for oil and other commodities in the months ahead.Q: Oil prices are somewhat volatile anyway. Has the recent period been worse?A: The oil markets are always much more volatile than the equity markets. There are so many moving parts right now that I’m not particularly surprised by the volatility. I was more surprised that we saw the jump earlier this year than the reaction down. Three of the major incremental players in the market right now are Saudi Arabia, Iran and Russia. If you think about the relationships between those countries and their relationships with other countries, it’s relatively tenuous and it’s not surprising you’ll see some degree of breakdown. Q: What do you expect to happen next? A: It seems unlikely (the production) agreement can persist indefinitely. So many countries need prices to go higher. In terms of the balance between upside and downside risk, we think most of the risks fall on the downside. That being said, $65 a barrel is still a pretty good number. Oil companies are doing just fine at $65, they would be doing fine at $60. We think a lot of the real volatility is going to take a step back at this point. We’d like to see a stable high-$50s to high-$60s number. At that level we think oil companies and companies using oil both do reasonably well. Of all the risks, up and down side, there are heavier risks on the downside. Q: What are some good ways for investors who want to be involved in commodities to hedge their exposure? A: The natural hedge to that is owning consumer companies. They would benefit if oil prices go down. If oil prices go down, the consumer spends money on everything else. Consumer discretionary companies benefit twice in that a lot of them are hotels, casinos, entertainment companies that do much better when oil prices go down. An airline does much better financially. Because prices start coming down, people travel more. Q: What is your broader outlook for commodities? A: There’s a lot of differentiation in commodities. You can’t treat it as one entity. I think a lot of this trade war stuff is going to end up resolving itself, and that’s going to lead to a lot of US commodities being exported to China. So that’s going to be liquefied natural gas, oil perhaps, buy also soybeans and other agricultural commodities. I think the trade war stuff will be a possibility. It’ll be messy getting there, but over the next six to 12 months it’s going to be a positive for global trade. That’s going to help agricultural commodities by and large. Most agricultural and exportable commodities have upside pressure because of both the likelihood of trade but also the expense of transportation, but some of these commodities that have been held hostage have downside pressure.

BLOOMINGTON, Ind. — FTR’s Trucking Conditions Index (TCI) for April at a reading of 11.5 reflects strong freight demand and continued tightness in capacity, FTR officials said Thursday. Carriers can expect the favorable conditions to improve further into the third quarter and stay elevated well into 2019. The tight labor market, including a shortage of drivers, is holding carriers back from taking full advantage of the higher rate environment even as it increases their labor costs, FTR said. “The latest jobs report suggests that carriers’ aggressive driver recruiting efforts are paying off but additional growth in freight volumes, continued impact from electronic logging device implementation, and extreme tightness in the overall labor market should keep conditions highly favorable for carriers,” said Avery Vise, vice president of trucking research. “The TCI will remain at near record levels until at least the fourth quarter, when the market may begin to stabilize due to additional truck capacity.” The Trucking Conditions Index tracks the changes representing five major conditions in the U.S. truck market. These conditions are: freight volumes, freight rates, fleet capacity, fuel price and financing. The individual metrics are combined into a single index that tracks the market conditions that influence fleet behavior. A positive score represents good, optimistic conditions. Conversely, a negative score represents bad, pessimistic conditions. The index tells you the industry’s health at a glance. In life, running a fever is an indication of a health problem. It may not tell you exactly what’s wrong, but it alerts you to look deeper. Similarly, a reading well below zero on the FTR Trucking Conditions Index warns you of a problem, while readings high above zero spell opportunity. Readings near zero are consistent with a neutral operating environment, and double-digit readings (both up or down) are warning signs for significant operating changes. For more information about the work of FTR, visit www.FTRintel.com, follow on Twitter @ftrintel, or call (888) 988-1699, ext. 1.

Spot truckload rates on the DAT network of load boards rose again during the week ending June 16 and are on track to achieve the highest-ever monthly average for van, refrigerated (“reefer”), and flatbed freight, according to DAT Solutions. Despite a 6 percent drop in posted loads and 5.4 percent jump in the number of available trucks (capacity typically increases during the week after Roadcheck), national average rates gained for all three equipment types. The flatbed rate set a record while van and reefer rates were just shy of their all-time high, with van at $2.30/mile, up 1 cent; flatbed at $2.82/mile, up 1 cent; and Reefer at $2.70/mile, up 1 cent. Van load posts fell 5 percent while truck posts increased 4 percent compared with the previous week. The van load-to-truck ratio declined 8 percent to 10.3 loads per truck. The number of available loads increased by double-digit percentage points in key markets including Los Angeles, Dallas, Chicago, and Atlanta. Looking at spot rates, most of the top-gaining van lanes were in the West, including: – Stockton, Calif., to Seattle, up 31 cents to $3.80/mile – Stockton to Salt Lake City, up 30 cents to $2.87/mile – Los Angeles to Seattle, up 23 cents to $3.75/mile Houston to Dallas retreated 14 cents to $2.83/mile last week. Flatbed load posts slipped 7 percent and truck posts increased 7 percent last week, which pushed the flatbed load-to-truck ratio down to 88.7. It was 109 the previous week. Reefer load posts fell 9 percent, truck posts increased 6 percent, and the reefer load-to-truck ratio dipped from 14.7 to 12.6 loads per truck. Last week’s increase in capacity had a bigger impact on reefer markets than on dry vans. While the national average reefer rate ticked upward, many high-traffic lanes had lower prices. Among them: – Dallas to Houston fell 3 cents to $3.57/mile – Elizabeth, N.J. to Boston was down 11 cents to $4.52/mile – Chicago to Kansas City declined 16 cents to $2.56/mile DAT Trendlines is generated using DAT RateView, a service that provides realtime reports on prevailing spot market and contract rates, as well as historical rate and capacity trends. RateView’s comprehensive database comprises more than $45 billion in freight bills in over 65,000 lanes.  

ARLINGTON, Va. — The American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index rose 0.7 percent in May after rising 2.7 percent in April. In May, the index equaled 113.8 (2015=100), up from 113 in April. ATA revised the April increase from the originally reported 2.2 percent to 2.7 percent. Compared with May 2017, the SA index increased 7.8 percent, down from April’s 9.9 percent year-over-year increase. Year-to-date, compared with the same five months 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 118 in May, which was 7.6 percent above the previous month (109.7). “This continues to be one of the best, if not the best, truck freight markets we have ever seen,” said ATA Chief Economist Bob Costello. “May’s increases, both sequentially and year-over-year, not only exhibit a robust freight market, but what is likely to be a very strong GDP reading for the second quarter. However, in the near-term, look for moderating growth rates for freight simply due to more difficult year-over-year comparisons, not from falling tonnage levels.” Trucking serves as a barometer of the U.S. economy, representing 70.6 percent of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled nearly 10.5 billion tons of freight in 2016. Motor carriers collected $676.2 billion, or 79.8 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. American Trucking Associations is the largest national trade association for the trucking industry. Through a federation of 50 affiliated state trucking associations and industry-related conferences and councils.