Business

CHATTANOOGA, Tenn. — U.S. Xpress Enterprises said Monday that it has closed its initial public offering of 18,056,000 shares of its Class A common stock and the full exercise of the underwriters’ option to purchase 2,708,400 additional shares, at an initial public offering price of $16 per share. U.S. Xpress sold 16,668,000 shares and the selling stockholders named in the registration statement sold 4,096,400 shares, including the shares sold upon exercise of the underwriters’ option to purchase additional shares. Total net proceeds to U.S. Xpress from the offering, after deducting underwriting discounts and commissions but before expenses, were approximately $250.0 million. The Company’s Class A common stock began trading on the New York Stock Exchange under the symbol “USX” on June 14, 2018. BofA Merrill Lynch and Morgan Stanley acted as lead book?running managers for the offering. J.P. Morgan and Wells Fargo Securities acted as additional book?running managers, and Stephens Inc., Stifel, and Wolfe Capital Markets and Advisory acted as co?managers for the offering. The offering of these securities was made only by means of a prospectus. Copies of the final prospectus relating to the offering may be obtained from BofA Merrill Lynch, NC1?004?03?43, 200 North College Street, 3rd Floor, Charlotte, North Carolina 28255?0001, Attention: Prospectus Department, or by email at [email protected] and Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014. Founded in 1985, U.S. Xpress Enterprises is the nation’s fifth largest asset?based truckload carrier by revenue, providing services primarily throughout the United States, offering a broad portfolio of services using our own truckload fleet and third?party carriers through its non?asset?based truck brokerage network.

WASHINGTON — An official with the National Retail Federation today warned that President Donald Trump’s tariff plans will unravel the good done by tax reform and saddle consumers with higher prices. Federation President and CEO Matthew Shay made the statements after the Trump administration announced it will issue tariffs on $50 billion of Chinese imports. “Tariffs are taxes on American consumers, plain and simple,” Shay said. “These tariffs won’t reduce or eliminate China’s abusive trade practices, but they will strain the budgets of working families by raising consumer prices. “Tax reform has increased the paychecks of American workers, encouraged U.S. companies to expand and invest in their workforces, and unleashed the strongest levels of consumer confidence in a generation. Unfortunately, these tariffs and the retaliation China has promised put all this economic progress at risk. Once again, we urge the administration to change course and develop a clear and comprehensive strategy to hold China accountable.” A federation news release cited a study commissioned by NRF and the Consumer Technology Association that found tariffs on $50 billion of Chinese imports, coupled with the impact of retaliation, would lead to four job losses for every job gained and reduce U.S. gross domestic product by nearly $3 billion. NRF testified before the Office of the U.S. Trade Representative during a hearing last month to share the retail industry’s concerns over tariffs. And in an NRF television ad, economist and actor Ben Stein reprised his role in “Ferris Bueller’s Day Off” to explain why tariffs are bad economics. The NRF is the world’s largest retail trade association. Retail supports 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, the release said.

CHATTANOOGA, Tenn. — U.S. Xpress Enterprises Wednesday said the pricing of its initial public offering of 18,056,000 shares of Class A common stock at $16 per share. U.S. Xpress is issuing and selling 16,668,000 shares and the selling stockholders named in the registration statement are selling 1,388,000 shares. The Company’s Class A common stock began trading on The New York Stock Exchange under the symbol “USX” Thursday. The offering is expected to close on June 18, 2018. In addition, the selling stockholders have granted the underwriters a 30-day option to purchase up to an additional 2,708,400 shares of Class A common stock at the initial public offering price, less underwriting discounts and commissions. The company expects to receive net proceeds, after deducting underwriting discounts and commissions but excluding offering expenses, of approximately $250 million from the offering. Bank of America Merrill Lynch and Morgan Stanley are acting as lead book-running managers for the offering. J.P. Morgan and Wells Fargo Securities are acting as additional book-running managers, and Stephens Inc., Stifel, and Wolfe Capital Markets and Advisory are acting as co-managers for the offering.

LAFAYETTE, Ind. —  Wabash National Corp., a producer of semi-trailers and liquid transportation systems, said that Brent L. Yeagy, president and chief operating officer of the company, has assumed the role of president and CEO. Yeagy follows Richard J. Giromini, who stepped down from his role as Chief Executive Officer on June 1 as part of a planned succession announced on December 15, 2017. “On behalf of the board of directors, I extend my sincere gratitude and admiration for Dick’s many contributions in his 11 years as CEO,” said Dr. Martin Jischke, chairman of the board. “As CEO, Dick changed Wabash National from being primarily a dry van manufacturer to the growing, diversified manufacturer it is today. The board is confident that Yeagy — a talented, energetic and experienced leader — will build on the foundation Dick put in place and carry Wabash National’s legacy of innovation and growth into the future.” Yeagy has been with Wabash National for more than 15 years, most recently serving as president and COO since October 1, 2016. Yeagy joined Wabash National in 2003 and held a number of positions with increasing responsibility, including vice president of manufacturing, vice president and general manager – commercial trailer products, and senior vice president and group president – commercial trailer products. Prior to Wabash National, from 1999 to 2003 Yeagy held various positions within human resources, environmental engineering and safety management for Delco Remy International. He served in various plant engineering roles at Rexnord Corp. from December 1995 through 1999. He also served in the United States Navy from 1991 to 1994. “I’m honored and humbled to be named the president and CEO,” Yeagy said. “I’m fortunate to have spent the last 15 years at Wabash National under the leadership of Dick Giromini. He created a strong foundation. The next chapter at Wabash National will capitalize on the pillars Dick implemented: focus, lean manufacturing, company culture, and a strategic plan for growth and diversification. In the spirit of continuous improvement that Dick brought to Wabash National, we will now shift toward acceleration of our strategy as we look to provide greater value for all of our stakeholders.” Giromini will remain with the company serving in the role of executive advisor through June 1, 2019, following which he will retire.

Two organizations that report truck orders have said the latest data indicates that the new truck market is still strong. ACT Research said its preliminary North America Class 8 net order data show the industry booked 35,600 units in May. FTR reports that preliminary North American Class 8 orders for May continue to show exceptional strength, coming in at 35,200 units. “Preliminary net order data indicate that demand for Class 8 trucks continued in robust fashion in May,” said Kenny Vieth, ACT’s president and senior analyst. “During the month, North American Class 8 net orders rose 2.5 percent from April, and May’s order volume more than doubled the year-ago take, rising 110 percent from last May. “Seasonal adjustment begins to inflect positively this month. When adjusted, May’s Class 8 net order volume rises to 39,800 units.” Seasonally adjusted and annualized, Class 8 orders have been booked at a 475,000 unit rate through year-to-date May. FTR said the 35,200 units represented the third highest May on record. Orders have averaged morethan 40,000 units for the past six months, volumes never seen before in the industry. FTR said Class 8 orders exceeded expectations again as fleets order in huge numbers attempting to keep up with burgeoning freight demand. North American Class 8 orders for the past 12 months have now totaled 386,000 units. “This is the tightest capacity crunch ever. Long-time veterans in this industry are saying this is the best freight market they have ever seen. Fleets cannot add capacity fast enough and as long as the economy and manufacturing are going great, this capacity crisis will continue,” said Don Ake FTR’s vice president of commercial vehicles. “There is a shortage of truck parts and components, so OEMs have been slow to deliver. This just exacerbates an already bad situation. Fleets are now grabbing every available build slot, hoping to get some more trucks by the end of the year. Some orders now are even spilling into the first quarter of next year. It is a red-hot market.” In a related development, CFI, a North American full-truckload carrier and subsidiary of TFI International Inc., said it has increased its 2018 fleet purchase plan from 500 to 600 new Kenworth T680 over-the-road long-haul tractors. Delivery of the additional 100 tractors is expected by year end. The additional new tractors represent the latest investment in a two-year modernization program, begun in 2017, that by the end of this year, will have replaced 65 percent of CFI’s North American power fleet with the new Kenworth tractors. CFI operates 1,897 company-owned power units and 7,365 53-foot dry-van trailers, and employs about 350 owner-operators. “This investment is good news for our customers as well as our professional drivers,” said Greg Orr, CFI’s president. “We are accelerating our program to refresh and modernize our fleet with one of the most advanced power units on the market, which features excellent fuel economy and the latest safety systems.” Orr noted that drivers will enjoy operating new equipment that has many of the most-requested driver comfort features available, as well as a reputation for reliability, minimizing downtime and maximizing driver miles and pay. For the customer, the new assets support CFI’s mission to provide superior service that is ultimately safe and reliable, consistently delivering shipments on-time, he said. The company expects to begin taking delivery of the new tractors this summer and will concurrently retire older units as new ones enter the fleet through the end of the year.  

Spot rates rose ahead of the Memorial Day weekend, DAT Trendline reports. The number of spot market loads on DAT load boards went up 1.3 percent while truck posts rose 2.2 percent the week ended May 26. However, the report pointed out, there were still signs of tighter capacity ahead of the holiday weekend. The national average van rate remained unchanged while both the refrigerated and flatbed rates increased. Van rates were $2.15 a mile, unchanged; flatbed was $2.73 a mile, up 1 cent; and reefers were up 2 cents at $2.51 a mile, DAT’s weekly brief reported. Van load posts gained 6 percent while truck posts increased 1 percent, pushing the van load-to-truck ratio 5 percent higher to 7 loads per truck. The Houston to New Orleans route gained 25 cents to total $3.20 a mile while the Atlanta to Charlotte route was up 29 cents to $3.36 a mile. Los Angeles outbound spot van freight averaged $2.67 a mile, up 13 cents compared with the previous week and the Los Angeles to Denver route increased 27 cents to an average of $3.25 cents a mile. Houston showed rates at $2.24 a mile, a gain of 7 cents, while Dallas was also up 7 cents a mile to $2.12 a mile. Memphis went up 9 cents to $2.76 and Atlanta went up 11 cents a mile to $2.55. DAT reported that the flatbed-to-truck ratios went down to 89.9, but noted that number is still historically high. The number of flatbed load posts fell 4 percent while the truck posts were up 4 percent. In key lanes, Raleigh to Baltimore was $4.33 a mile, up 57 cents; Dallas to El Paso was $2.07 a mile, down 19 cents; Cleveland to Roanoke was up 20 cents to $4.25 a mile and Las Vegas to Los Angeles was up a whopping 77 cents to $3.93 a mile.    

BLOOMINGTON, Ind. — The March Shippers Conditions Index reading from FTR released Thursday remained in double digit negative territory at -10.5 reflecting the continued tough environment facing shippers. Conditions remain highly unfavorable with tight capacity and rising rates in both truckload and intermodal sectors, FTR said, adding that shippers may see some relief after the second quarter and conditions may improve further during the fourth quarter. One bright spot for shippers is that the hard enforcement of the ELD regulation, based on spot-market data, does not appear to have had a major impact, FTR said. “Economic indicators look solid, freight demand continues to rise, and FTR sees no significant slowdown through 2019 for these conditions,” said Jonathan Starks, chief intelligence officer at FTR. “Indeed, spot market rates are setting new record highs as the peak shipping season comes into full swing.” “Although negative conditions persist for shippers, the latest month saw some stabilization,” said Todd Tranausky, senior research analyst at FTR. “However, the combination of tight truck capacity and challenging rail service is unlikely to abate in the near term. Shippers need to plan on coping with these difficult conditions for a sustained period.” 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 Shippers 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.

ARLINGTON, Va. — The American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index increased 2.2 percent in April after easing 1 percent in March. In April, the index equaled 112.5 (2015=100), up from 110.1 in March. ATA revised the March decline slightly from the originally reported 1.1 percent to 1 percent. Compared with April 2017, the SA index surged 9.5 percent, which was the largest year-over-year increase since October 2017. Year-to-date, compared with the same four 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 109.2 in April, which was 4.8 percent below the previous month (114.7). “Truck freight tonnage remains robust,” said ATA Chief Economist Bob Costello. “And I don’t think we’ve even seen the traditional spring freight season yet. People are just getting around to buying grills, lawn mowers and yard tools. Plus, the produce season was also delayed due to a cold snap in early spring. Longer-term, strength in consumption, factory output, and construction should keep truck freight tonnage solid for the quarters 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.

Class 8 truck sales in the United States dropped 2.2 percent from March to April, but remain very, very strong for the year, according to data provided by WardsAuto. A total of 18,950 trucks were sold in April, compared with 19,384 in March, but for the year, sales are up 36.9 percent with 69,479 trucks sold to date in 2018 compared with 50,764 at this time in 2017. Of all the OEMs, International has made the biggest gains this year. The Illinois-based manufacturer was up 84 percent in April compared with the same month last year (2,826 vs. 1,535), up 31.9 percent over March 2018 (2,826 vs. 2,143) and up 68.7 percent year-over-year (9,372 vs. 5,554). All OEMs were up in April 2018 over April 2017; Mack, International, Kenworth, Peterbilt and Western Star were up in April 2018 over March 2018.      

  ARLINGTON, Wash. — Smokey Point Distributing (SPD) has announced an over-the-road salary pay program for its over-the-road flatbed drivers. Effective June 1, the carrier will pay solo OTR flatbed drivers a $65,000 salary not including mileage, safety, and referral bonuses. Team drivers will each receive $75,000 plus bonuses. CEO Dan Wirkkala said, “Historically the trucking industry has always punished the driver financially for their lack of sales, operational efficiencies or delays due to breakdowns and maintenance requirements. They [other employees] all receive their paycheck regardless, but If the driver does not move a mile because of them, the driver’s paycheck is directly affected. That is not right.” Smokey Point has been named as one of the “Best Fleets to Drive For” in 2017 and 2018. Not surprisingly, Smokey Point reported that its OTR drivers are “on board” with the changes. “My wife is extremely happy for the first time in my driving career. We can plan and maintain a budget, which means happy wife, happy life,” said Darrin M., a Smokey Point driver. Currently hiring flatbed drivers, SPD hopes that this announcement will be something that will help to recruit drivers to the company. A former driver and manager of driver services Sean McManama said, “Finally, some true stability in an OTR truck driver’s life, without the ultra-lows of the cyclical pay that surrounds a driver’s ability to support his or her family.” “The last two years I have had yearly mileage totals that were outstanding. According to the new salary bonus award, I will not only have a stable dependable check; I am looking at an annual award of almost $12,000. That is something to think about, is it not?” For more information on SPD and its services, go to https://www.spdtrucking.com/ or contact recruiting at (360) 474-5899.  

BLOOMINGTON, Ind. — FTR’s Trucking Conditions Index for March dropped from the previous month of 15.41 to a reading of 10.30, FTR said. This is, however, not indicative of any fundamental change in the current freight demand climate, accoeding to Jonathan Starks, chief intelligence officer at FTR. Indeed, the year-over-year Trucking Conditions Index remains more than triple the 2017 reading of 2.97, he said, adding that the carrier-favorable environment is not expected to see any real change at least through 2018 with even more positive conditions during the second and third quarter. FTR forecasts conditions for carriers stabilizing at a high level into 2019 as fleets continue to add capacity and the supply-chain adjusts to the electronic logging device regulation. “While diesel prices increases are a negative for the carriers, the relatively modest uptick in recent fuel costs is more than offset by significant gains in pricing and overall strong demand for transportation,” Starks said. “The Market Demand Index published by Truckstop.com and FTR shows that the spot market is once again tightening, rising each of the last four weeks to 58.1 in week 18. It is likely to hit new record highs as we approach the summer shipping season at the end of May.” Avery Vise, vice president of trucking research added, “The latest data suggests that the capacity crunch has stabilized somewhat following the electronic logging device implementation, but it certainly has not abated. The most recent jobs report serves as a warning that carriers might find adding capacity tougher in the months ahead, an outcome that could help maintain margins but limit revenue opportunities.” The Trucking Conditions Index tracks the changes representing five major conditions in the U.S. truck market. These conditions include 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.      

    PORTLAND, Ore. — Spot truckload freight volume had the strongest April on record despite slipping 6.8 percent lower compared to March, a common seasonal trend.  Compared to the same month in 2017, freight availability rose 32 percent, according to the DAT North American Freight Index. Flatbeds contributed disproportionately to the volume increase, with a 59 percent boost compared to a year ago. The Freight Index, a monthly measure of demand for spot market freight, is published by DAT Solutions, which operates North America’s largest load board marketplace. Flatbed freight rates set another record in April, at $2.65 per mile, including fuel, a 12-cent increase over the previous record in March. Flatbed rates were a full 58 cents higher in April than in the previous year. Van rates rose to $2.16 per mile, a 2-cent increase compared to March. Rates for refrigerated or “reefer” cargo were up 3 cents to $2.43 per mile month over month. Rates gained 49 cents per mile for both trailer types, compared to April 2017. Rates continued to rise sharply through the first week in May, as weather improved in the Northeast and Midwest, and produce harvests added to pressure on truck capacity in the Southern band of states, especially Georgia and Florida. “May and June are typically peak season for agriculture and construction, and retail freight appears to be expanding, as well,” said DAT industry analyst Mark Montague. “Seasonal demand should keep rates high at least through the end of the second quarter.” 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. Referenced rates are the averages, by equipment type, based on $45 billion of actual transactions, as recorded in DAT RateView. Reference rates per mile include fuel surcharges, but not accessorials or other fees. 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.com/trendlines. DAT operates the largest truckload freight marketplace in North America. Transportation brokers, carriers, news organizations and industry analysts use DAT for market trends and data insights derived from 179 million freight matches in 2017, and a database of $45 billion of 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. Go to DAT.com for more information.      

CHATTANOOGA, Tenn. — By the end of April, 44 teams triggered Covenant’s new $40,000 Teaming Bonus program by eclipsing 60,000 paid miles together and collecting $2,000 per team. Collectively, April’s recipients collected $88,000 in bonus money thanks to the program which launched February 1, and company leaders expects those same results or better in May, as hundreds of team drivers are on track to eclipse their first 60,000 miles together by the end of the month, according to Rob Hatchett, vice president of recruiting. The $40,000 Teaming Bonus is structured to pay $2,000 in bonus money to each driving team that eclipses 60,000 paid miles together, until the team reaches a total $40,000 in bonus money. Hatchett said that in the midst of a nationwide driver shortage, the teaming bonus program is designed to reward new and existing team drivers, and prove Covenant is the premier employer of team drivers, as well as a national leader in team freight and miles. “We specialize in teams, and we created this program to not only cement our place as the leading team carrier in the country, but also to prove to our people that we value them and want them here,” Hatchett said. “Now, our folks and others in the industry are seeing this program isn’t just an empty promise, this is real.” Other Covenant leaders said the teaming bonus sets Covenant apart in a market characterized by across-the-board hikes in driver pay and promises. “Teaming is our niche, and has been since day one,” said Joey Hogan, president. “We want to always attract and retain top talent, and we want to do that by putting real rewards in our peoples’ hands. And with this program, that’s what we’re doing.” Driving professionally is an increasingly tough job, Hogan said, which is why the teaming bonus is aimed at rewarding those driving the success of the company. “Professional drivers are our front line,” he said. “They make sure our customers are happy, and that we do what we promise. So this is our way of thanking them for their hard work, loyalty and commitment.” For more information about Covenant Transport, visit www.covenanttransport.com.    

CHATTANOOGA, Tenn. — U.S. Xpress Enterprises said Monday it had begun the process of pursuing an Initial public offering of its Class A common stock by submitting a registration statement on Form S-1 to the U.S. Securities and Exchange Commission. The number of shares of Class A common stock to be offered and the price range for the proposed offering have not yet been determined, the company said in a news release. U.S. Xpress intends to list its Class A common stock on The New York Stock Exchange under the symbol “USX.” BofA Merrill Lynch and Morgan Stanley will act as lead book-running managers for the proposed offering. J.P. Morgan and Wells Fargo Securities will act as additional book-running managers, and Stephens Inc., Stifel, and Wolfe Capital Markets and Advisory will act as co-managers for the proposed offering. The proposed offering of these securities will be made only by means of a prospectus. Copies of the preliminary prospectus, when available, may be obtained from BofA Merrill Lynch, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, North Carolina 28255-0001, Attention: Prospectus Department, or by email at [email protected] and Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This news release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Founded in 1985, U.S. Xpress Enterprises is the nation’s fifth largest asset-based truckload carrier by revenue, providing services primarily throughout the United States. The carrier offer customers a broad portfolio of services using our own truckload fleet and third-party carriers through our non-asset-based truck brokerage network. Its modern fleet of tractors is backed up by a well-maintained terminal network and information technology infrastructure and the latest safety technology, the company said.          

    WASHINGTON — Imports at the nation’s major retail container ports are expected to grow steadily throughout the summer despite the prospect of heavy tariffs on goods from China, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates. “With proposed tariffs yet to be officially imposed, retailers are stocking up on merchandise that could soon cost considerably more,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “If tariffs do take effect, there’s no quick or easy way to switch where these products come from. American families will simply be stuck paying higher prices and hundreds of thousands of U.S. jobs could be lost.” “Despite the threats and risks to trade, we continue to see solid expansion and our models are projecting this to continue throughout the year,” Hackett Associates Founder Ben Hackett said. “This is driven by a high level of confidence as the economy remains strong and unemployment is at its lowest level in nearly two decades.” Ports covered by Global Port Tracker handled 1.54 million Twenty-Foot Equivalent Units (TEU) in March, the latest month for which after-the-fact numbers are available. That was down 8.6 percent from February because of Lunar New Year factory shutdowns in Asia but down only 0.7 percent year-over-year. A TEU is one 20-foot-long cargo container or its equivalent. April was estimated at 1.73 million TEU, up 6.4 percent year-over-year. May is forecast at 1.82 million TEU, up 4.3 percent from last year; June also at 1.82 million TEU, up 6.1 percent; July at 1.9 million TEU, up 5.5 percent; August at 1.92 million TEU, up 4.6 percent, and September at 1.82 million TEU, up 2.1 percent. The numbers forecast for July and August would each set new records for the number of containers imported in a single month, beating the previous high of 1.83 million TEU in August 2017. The first half of 2018 is expected to total 10.4 million TEU, an increase of 5.8 percent over the first half of 2017. The total for 2017 was 20.5 million TEU, up 7.6 percent from 2016’s previous record of 19.1 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, Virginia, Charleston, Savannah, Port Everglades, Miami and Jacksonville on the East Coast, and Houston on the Gulf Coast. NRF is the world’s largest retail trade association, representing 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.  

The price of diesel rose for the seventh consecutive week On-highway diesel prices rose again in the past week, with the national average standing at $3.171, up $0.014 from a week ago, according the Energy Information Administration (EIA). This is the seventh consecutive week in which average diesel prices have risen, and it places the current price per gallon at $0.606 above the price a year ago. Once again, every one of the EIA’s reporting sectors saw prices go up this week. The Rocky Mountain Region saw the largest increase, at $0.034, to $3.18 per gallon. The Midwest and Gulf Coast regions had the smallest increase, $0.009 per gallon each. At its current $2.955, the Gulf Coast remains the only region in which the price of diesel remains under $3 per gallon. Prices on the West Coast continue to be by far the highest, at $3.662 overall after a $0.022 increase this past week. Taken separately, the price of diesel in California stands at $3.863, with a year-to-year gain of $0.936 per gallon, the highest in the country. Overall, diesel prices on the East Coast are at $3.178, only slightly higher than the national average. However, the price in the Mid-Atlantic region rose to $3.336, after a weekly increase of  $0.015. Benchmark U.S. crude oil rose $1.01 to end at $70.73 a barrel on the futures market in New York on Monday, pushing above the $70 threshold for the first time since November 2014. The international standard, Brent crude, was up $1.30 to $76.17 in London. For more about diesel prices, click here.

WASHINGTON — U.S. employers stepped up hiring modestly in April, and the unemployment rate fell to 3.9 percent, evidence of the economy’s resilience amid the recent stock market chaos and anxieties about a possible trade war. Job growth amounted to a decent 164,000 last month, up from an upwardly revised 135,000 in March. The unemployment rate fell after having held at 4.1 percent for the prior six months largely because fewer people were searching for jobs. The overall unemployment rate is now the lowest since December 2000. The rate for African-Americans — 6.6 percent — is the lowest on record since 1972. For hire trucking added 4,900 jobs in April, bringing the total for the year to 22,600. Many employers say it’s difficult to find qualified workers. But they have yet to significantly bump up pay in most industries. Average hourly earnings rose 2.6 percent from a year ago. The pace of hiring has yet to be disrupted by dramatic global market swings, a recent pickup in inflation and the risk that the tariffs being pushed by President Donald Trump could provoke a trade war. Much of the economy’s strength, for the moment, comes from the healthy job market. The increase in people earning paychecks has bolstered demand for housing, even though fewer properties are being listed for sale. Consumer confidence has improved over the past year. And more people are shopping, with retail sales having picked up in March after three monthly declines. Workers in the private sector during the first three months of 2018 enjoyed their sharpest average income growth in 11 years, the Labor Department said last week in a separate report on compensation. That pay growth suggests that some of the momentum from the slow but steady recovery from the 2008 financial crisis is spreading to more people after it had disproportionately benefited the nation’s wealthiest areas and highest earners. The monthly jobs reports have shown pay raises inching up. At the same time, employers have become less and less likely to shed workers. The four-week moving average for people applying for first-time unemployment benefits has reached its lowest level since 1973. The trend reflects a decline in mass layoffs. Many companies expect the economy to keep expanding, especially after a dose of stimulus from tax cuts signed into law by Trump that have also increased the federal budget deficit. Inflation has shown signs of accelerating slightly, eroding some of the potential wage growth. Consumer prices rose at a year-over-year pace of 2.4 percent in March, the sharpest annual increase in 12 months. The Federal Reserve has an annual inflation target of 2 percent, and investors expect the Fed to raise rates at least twice more this year, after an earlier rate hike in March, to keep inflation from climbing too far above that target. The home market, a critical component of the U.S. economy, has been a beneficiary of the steady job growth. The National Association of Realtors said that homes sold at a solid annual pace of 5.6 million in March, even though the number of houses for sale has plunged. As a result, average home prices are rising at more than twice the pace of wages.

    Both major commercial vehicle data collection agencies — ACT Research and FTR — say that preliminary orders for Class 8 trucks in North America fell to the mid 30,000 range in April. “In ACT’s 30-plus years of collecting industry statistics, the Class 8 market has never had four consecutive months in which orders exceeded 40,000 units,” said Kenny Vieth, president and senior analyst. “Preliminary data indicate that the wall remains in place as 34,800 Class 8 net orders were booked in April, stopping the latest string of 40,000-plus order months at three.” Seasonal adjustment boosts the month’s orders to 35,200 units, Vieth said. “To put the April results into perspective, while we saw a nearly 12,000-unit drop from March to 34,700 units in April, the figure is still above the average month for the fourth quarter of last year. This remains a very elevated market,” said Jonathan Starks, FTR chief intelligence officer. “These order levels will continue to put pressure on the OEMs and suppliers to increase production and output. The market will stay red-hot into 2019. The question remains: How hot can they run?” Demand for trucks remains at record levels and fleets are still attempting to add capacity as fast as possible in this market, Starks said, adding that North American Class 8 orders for the past 12 months have now totaled 368,000 units. Veith said preliminary North America Classes 5-8 net order data show the industry booked 59,600 units in 2018’s fourth month. Vieth said after the order results posted in the seasonally strong first quarter, there was only one direction for orders to head in April — down. While below any of the first three months of 2018, a goodly portion of the decline was related to seasonality. “On that basis, April’s orders (60,000) were bigger than any month in 2017 as activity in both the medium- and heavy-duty vehicle markets remained strong,” Vieth said. “Our preliminary look at North American Classes 5-8 net orders for April show that orders rose 40 percent year-over-year. Seasonally adjusted, April’s orders fell 12 percent from March.” Vieth said solid medium-duty order activity continued into April, if below levels seen through the first quarter. In April, preliminary North American Classes 5-7 net orders rose 33 percent year-over-year to 24,800 units. “There is virtually no seasonality in April for the medium-duty market,” Vieth said. “As a result, and while orders were down 16 percent nominally from March, on a seasonally adjusted basis, Classes 5-7 orders were 24,900 units, up 200 units/0.8 percent month over month.”              

  On-highway diesel prices are edging up, posting Monday at $3.157 for the national average compared with $3.133 for the week of April 23, a gain of 2.4 cents a gallon. The U.S. Energy Information Administration (EIA) showed diesel prices in all 10 of its reporting sectors increasing, with the Midwest sector up 3.6 cents at $3.083; the Rocky Mountain region up 3.4 cents from last week at $3.215 a gallon; and New England up 3.2 cents a gallon at $3.203. California still has the highest diesel at $3.834, although prices only went up there 1.9 cents a gallon. The Gulf Coast sector was the only area Monday to have diesel prices below the $3-a-gallon mark ($2.946). Monday’s national average surpassed last week’s national average, which was the highest price since the week of January 5, 2015. Analysts for some time have predicted an upswing in oil prices, and as oil continues to increase, so will diesel, an oil distillate. Benchmark U.S. crude rose 86 cents to $68.94 per barrel Monday, The Associated Press reported. One analyst predicted oil will ramp up to $80 per barrel by July. If so, diesel prices will rise right along with it. So stay tuned. For more details on diesel prices click here.

    THOMASVILLE, N.C. — Old Dominion Freight Line, Inc. April 30 announced it has appointed Kevin M. “Marty” Freeman, currently the company’s senior vice president, sales, to serve as the company’s executive vice president and COO, effective May 16. Freeman has served in his current role since 2011 and has assumed ever-increasing roles and responsibilities in customer relations, sales and operations since joining the Company in 1992. He brings 39 years of transportation industry experience to his new position, which includes responsibility for the company’s operations, sales, human resources and customer service functions. Greg C. Gantt, the company’s president and COO, said, “I am pleased to announce Marty’s promotion, which will be effective upon my previously announced transition to the combined role of president and CEO. Marty has played a significant part in shaping Old Dominion into the industry-leading company it is today. We are fortunate to have such a strong and vibrant leader who is deeply committed to our history and culture, while also focusing on our strategic opportunities and goals. He has consistently demonstrated his passion and dedication to our Company, and his promotion will provide him with an even greater opportunity to further enhance Old Dominion’s performance. We will all benefit from Marty’s leadership and continued commitment to our long-term success.” Freeman said, “I am honored to accept this new role and look forward to working with Greg, our Board of Directors and our entire OD Family of employees as we continue to grow our great Company. I am excited about this opportunity, and I promise that we will not waver from our commitment to providing on-time and claims-free service to our customers. I am proud to be a part of Old Dominion and look forward to our future accomplishments.”