Business Archives

Don’t miss TCA’s Bridging Border Barriers event Nov. 20

Linda Garner-Bunch - October 28, 2024

Motor carriers who engage in cross-border transport face a unique set of challenges. Join the Truckload Carriers Association (TCA) and industry experts in Mississauga, Ontario, Canada, November 20 to discuss current and potential cross-border issues that are facing the truckload industry. This year’s agenda features informative and educational sessions: The Power of Benchmarking and Improving Your Operations Benchmarking is a valuable process for organizations seeking to improve their performance and achieve strategic goals. In this session, you’ll hear from TCA member company executives who are fully engaged in the process. They’ll talk about the key benefits from benchmarking which include performance improvements, competitive advantage gains, goal setting and strategy development and how they were able to take their benchmarking participation and implement its benefits back into their operations. The panel, moderated by TCA President Jim Ward includes Trevor Kurtz, general manager of Brian Kurtz Trucking; Kevin Erb, senior director of U.S. operations for Erb Transport Ltd.; and Dave Martin, vice president of Eastern operations for Bison Transport. Embracing the Freight Market and Preparing for Better Times Broken into separate sessions for small/medium-size carriers and large carriers, this panel features insights from truckload carrier C-level executives about the current freight market and the strategies and initiatives that they’ve implemented to help weather the current storm and position themselves for better times. The Small Carrier Panel, moderated by Peter Stefanovich, president of Left Lane Associates, includes Mark Bylsma, president of Spring Creek Carriers Inc.; Julie Tanguay, president and CEO of EG Gray Transportation; and James Steed, president of Steed Standard Transport Ltd. The Large Carrier Panel, moderated by John G. Smith, vice president of editorial for Newcom Media Inc., includes David Tumber, COO for Kriska Transportation Group; Craig Germain, COO of XTL Transport Inc.; and Steve Brookshaw, senior executive vice president of TFI International. Economic Update Hear insights about recent data from Nathan Janzen, assistant chief economist for RBC. Janzen is a leader in the macroeconomic analysis group, with a focus is on analysis and forecasting macroeconomic developments in Canada and the U.S. Regulatory and Safety Update Dave Heller, TCA’s senior vice president of safety and government affairs will share the latest updates on regulatory compliance and safety issues. In addition, he’ll share his insights from the U.S. presidential election and what the results might mean for trucking. For information or to register, visit truckloadbbb.com.

Arpin International Group wins 2024 Cartus Commitment to Excellence Platinum Award

Dana Guthrie - October 26, 2024

WEST WARWICK, R.I. – Arpin International Group has received the Cartus 2024 Commitment to Excellence Platinum Award in the International Moving Services category for its its top-tier global service provider network for delivering exceptional service to customers and clients worldwide. “Our supplier partners are true leaders in their fields, demonstrating professionalism, innovation, a strong work ethic, and an unwavering commitment to service excellence. We are proud to have such a remarkable network supporting Cartus,” said Tina Frausto, vice president of Transformation and Supply Chain. “When it comes to serving our clients and their relocating families, Arpin International Group consistently delivers the highest standard of excellence, and I want to congratulate them on this well-deserved recognition.” According to a company media release, the award was presented virtually on Oct, at the Cartus Corporation’s Global Network Conference. The award is the highest award a supplier can achieve through service performance and recognizes a supplier’s measurable commitment to excellence and is presented to Global Network service providers who have distinguished themselves by achieving critical performance metrics. “We are truly honored to receive the Commitment to Excellence Platinum Award from Cartus,” said Stephen Crooks, senior vice president of Arpin. “This recognition highlights our steadfast commitment to delivering excellence, fostering innovation, and working together to bring outstanding value to our customers and stakeholders. We sincerely thank Cartus for their trust and support and look forward to strengthening our partnership in the future,” said Senior Vice President Stephen Crooks of Arpin International Group.” According to the release, Arpin’s commitment to continuous improvement in business productivity and streamlined operations is driven by a dedication to exceptional customer service. By freeing up staff capacity, customer service personnel can focus on what matters most: building deeper connections with customers, ensuring seamless shipment management and enhancing work/life balance. “With less time spent on inefficient processes, we dedicate more energy to improving our services, refining our processes, and ultimately delivering a superior customer experience,” Arpin said in the release. “This freedom allows us to go above and beyond in serving our customers. Arpin International Group is proud to be a part of the Cartus Global Network and receive this prestigious recognition.”

M&K Truck Centers and Volvo VNL prove a top choice for Orozco Trucking; company orders 25 new trucks

Dana Guthrie - October 25, 2024

Volvo Trucks North America dealer M&K Truck Centers has recently secured an order of 25 new Volvo VNL’s for their customer Orozco Trucking. “M&K Truck Centers continues to deliver unmatched customer value with innovative solutions, and their success is reflected in the order of more than 500 all-new Volvo VNLs since sales started earlier this year,” said Jeremy Taylor, regional vice president – Central, Volvo Trucks North America. “The all-new Volvo VNL sets a new standard with impressive gains in fuel efficiency, integrated safety features, and enhanced driver comfort—key benefits that M&K continues to showcase to their customers. We applaud M&K’s dedication to customer service and their initiatives to expand service and maintenance programs, which are crucial in supporting a broad range of trucking solutions. Their commitment ensures that their customers receive not only innovative vehicles but also the ongoing support needed to maximize uptime and operational efficiency.” According to a media release, with its advanced aerodynamics, enhanced fuel efficiency, cutting-edge safety features, and superior driver comfort, the Volvo VNL is redefining what fleets can achieve, driving down operating costs and boosting productivity. M&K Truck Centers operates 28 dealership locations in six states: Illinois, Indiana, Michigan, Pennsylvania, Ohio and West Virginia. With more than 35 years of supporting their customers, M&K has a reputation of being a forward-thinking dealership group known for retaining and supporting some of the industry’s most experienced and knowledgeable parts specialists, salespeople and certified technicians, according to the release. “M&K representatives participated in the immersive and interactive launch events hosted by Volvo Trucks, which provided dealer staff and customers a deep dive into the 90% redesigned all-new Volvo VNL,” the release said. “These events offered hands-on opportunities to experience the all-new Volvo VNL and explore its packaging options and trim levels, guided by Volvo Trucks experts in the areas of fuel efficiency, safety, connectivity, uptime and driver focus. M&K’s sales and service representatives also have access to the extensive competency development through e-learning and in-person courses from Volvo Academy to be fully trained in supporting the all-new Volvo VNL.” Additionally, M&K completed the comprehensive sales and service training to establish three Volvo Trucks Certified Electric Vehicle Dealership locations, with a fourth location in process, which support a broad array of customer solutions from the all-new Volvo VNL to the battery-electric Volvo VNR Electric. “M&K is committed to supporting our customers with comprehensive trucking solutions tailored to meet the unique demands of their operations,” said Andy Schulze, director of fleet sales at M&K Truck Centers. “We had the opportunity to see the all-new VNL up close this summer and knew immediately that it would be unmatched in the customer value it provides,” “We’ve experienced incredible customer interest particularly in learning more about the state-of-the-art connectivity, which will serve to maximize uptime with the all-new VNL. Customers are also eager to experience up to a 10% fuel efficiency increase as well as all of the features that keep their drivers safe, comfortable and productive.” The release noted that with the launch of the all-new Volvo VNL, Volvo Trucks introduced a new spec’ing process, offering packaging options for interior and exterior trim levels, powertrain, technology, amenities, and safety. This consultative approach to configuring and ordering —an industry first— streamlines and enhances the configuration and ordering process, enabling Volvo Trucks to deliver added value and cost savings compared to the conventional a la carte spec’ing process. M&K uses the cutting-edge online Volvo VNL configurator to help customers select the features and benefits of each trim level and cab option, as well as an ultra-realistic 360-degree view of the truck’s interior and exterior. The configurator tool helped Orozco Trucking customize the optimal trucks for their operations. Orozco Trucking, which has been in business for more than 25 years in the trucking and logistics industry, recently ordered 20 of the flagship long-haul sleeper VNL 860 model with the Edge interior and exterior trim. The trucks include the proprietary Volvo Active Driver Assist (VADA) package, which comes standard across all VNL models and includes forward collision avoidance technology to assist drivers in maintaining safe speeds and distances. The standard VADA package also offers adaptive cruise control and a new forward pedestrian detection feature that alerts the driver to pedestrians or bicyclists in their path. The fleet also ordered five of the VNL 660 models, which provide maximum load capacity along with a luxurious living space for drivers, according to the release. Orozco Trucking opted for the VADA Plus option in these models, which includes short-range detection to sense pedestrians and bicyclists in the truck’s blind and can activate frontal automatic emergency braking when objects are directly in the path of travel. “We are proud to be one of the safest fleets in the industry and appreciate the quality and safety of newer equipment that is regularly maintained,” said Konstantin Shaposhnykov, chief executive officer, Orozco Trucking. “We currently have more than 350 Volvo trucks in our fleet, which make up the majority of our vehicles,” . “M&K demonstrated all the features of the all-new Volvo VNL and the benefits it will bring to our fleet, and we decided to add a variety of configurations and features, including the advanced safety package, to determine what worked best for our operations.” According to the release, Orozco Trucking’s drivers deliver loads throughout 48 states, so driver comfort was also a key consideration. “The all-new Volvo VNL is designed with the driver in mind to optimize comfort, efficiency, and safety when working, living and resting,” the release said. “It features Volvo Trucks’ most efficient idle management tool to help reduce or eliminate engine idling when the vehicle is stopped or parked. The new ultra-quiet, proprietary, integrated Volvo Parking Cooler is a climate-control option that utilizes the onboard 24-volt battery system to power the cab’s HVAC when parked, reducing emissions, engine wear, and fuel costs. The Volvo Parking Cooler enhances the resting experience by eliminating noise and vibration from idling. For drivers parked in areas where idling is prohibited, the integrated Volvo Parking Cooler maintains a comfortable climate to maximize driver health, safety, and well-being.”

CVSA releases 2024 Brake Safety Week results

Dana Guthrie - October 25, 2024

Certified inspectors in Canada, Mexico and the U.S. conducted 16,725 inspections on commercial motor vehicles as part of the Commercial Vehicle Safety Alliance’s (CVSA) North American Brake Safety Week, Aug. 25-31, which revealed that approximately 87% of the commercial motor vehicles inspected did not have out-of-service violations and were deemed safe and permitted to proceed on roadways. “Out of the 16,725 commercial motor vehicle inspections conducted, 2,149 of those vehicles had brake-related out-of-service violations, which is a 12.8% out-of-service rate,” the CVSA said in a press release. “A vehicle is placed out of service when critical vehicle inspection items are identified during an inspection as conditions found in the North American Standard Out-of-Service Criteria (OOSC). When a vehicle is placed out of service, it is restricted from further travel until all out-of-service violations have been corrected. CVSA’s out-of-service criteria identifies critical vehicle inspection items and details the criteria that prohibit a motor carrier or driver from operating a commercial motor vehicle until the violations have been addressed.” According to the release, of the 2,149 commercial motor vehicles placed out of service, 1,355 (63.1%) had stand-alone out-of-service brake violations and 217 (10.1%) had steering axle brake out-of-service violations. Also, 1,216 (56.6%) failed the 20% defective brakes criterion, which states that a vehicle is out of service if the number of defective brakes is equal to or greater than 20% of the service brakes on the vehicle or combination. Note: a vehicle may have more than one violation type. The focus area for this year’s Brake Safety Week was on lining/pad violations. Throughout the week, inspectors looked for loose, missing or worn brake lining/pads, as well as cracks, voids or contamination. Inspectors found 382 lining/pad violations on power (tractor) units and 272 on towed (trailer) units, for a total of 654 brake lining/pad violations. Sixty-one jurisdictions participated in this year’s Brake Safety Week. In Canada, inspectors conducted 1,926 inspections and discovered 243 brake-related out-of-service violations, which is a 12.6% out-of-service rate. Forty-four power units and 49 towed units had lining/pad violations. In Mexico, inspectors conducted 107 inspections and discovered six brake-related out-of-service violations, which is a 5.6% out-of-service rate. One power unit and five towed units had lining/pad violations. In the U.S., inspectors conducted 14,692 inspections and discovered 1,900 brake-related out-of-service violations, which is a 12.9% out-of-service rate. Lining/pad violations were found on 310 power units and 172 towed units. Eighteen states with performance-based brake testers (PBBT) participated in this year’s Brake Safety Week by conducting 452 inspections using their PBBTs. There were 26 failures, which is a 5.75% out-of-service rate. Brake Safety Week is part of the CVSA’s Operation Airbrake Program, a comprehensive program dedicated to improving commercial motor vehicle brake safety throughout North America. The goal is to reduce the number of crashes caused by faulty braking systems on commercial motor vehicles by conducting roadside inspections and educating drivers, mechanics, owner-operators and others on the importance of proper brake inspection, maintenance and operation. Next year’s Brake Safety Week is scheduled for Aug. 24-30, 2025.

DAT iQ surpasses $1 trillion in freight transaction data

Dana Guthrie - October 25, 2024

KANSAS CITY, Mo. — DAT Freight and Analytics reports that the value of freight transactions analyzed by its DAT iQ platform now exceeds $1 trillion, affirming its position as the industry’s most comprehensive dataset for forecasting and benchmarking truckload, less-than-truckload and intermodal pricing. “DAT pioneered truck-transportation analytics in 2010 when we started collecting invoice data to produce benchmark rates and forecasts based on real transactions for loads moved,” said Jeff Clementz, DAT president and CEO. “Today, we have $1 trillion in verified freight transactions—real loads that moved. Where other analytics services fill gaps with proxy data, we deliver the clearest picture of past performance, current conditions, and future trends.” According to a press release, using invoices submitted by freight shippers and brokers, DAT iQ analyzes anonymized transactions to help freight brokers, shippers, and carriers understand and anticipate trends in market demand and pricing. The data comes from nearly 670 million separate invoices covering tens of thousands of transportation lanes over almost 15 years of market cycles. “Having the industry’s largest set of transaction data allows our models to learn the complexities of freight pricing, reduce bias and errors, and produce more accurate predictions,” said Ken Adamo, DAT chief of analytics. “It also allows us to reliably infer rates where no data exists or the data is sparse, which is ideal for those low-volume lanes that shippers depend on brokers to cover.” The release noted that the $1 trillion dataset powers DAT iQ RateView, the industry’s most popular truckload pricing tool, and DAT iQ Benchmark, the transportation procurement intelligence service for shippers. Using advanced machine learning and artificial intelligence, DAT iQ gives all parties in the freight transaction a single source of truth, or at least a starting point from which they can validate if their pricing is aligned with market trends today and into the future. DAT iQ models consume new data daily. An increasingly diverse pool of truckload, less-than-truckload, and intermodal transportation data sources mitigates the risk of any single provider or type of freight significantly influencing the results. “With the trust and cooperation of customers collectively sharing invoice data, DAT iQ has become the leader in actionable intelligence and the starting point for honest negotiations,” Clementz said. “We’re proud of this milestone and grateful for our contributors.” DAT announced its $1 trillion milestone at its DATCON24 user conference taking place this week in Kansas City, Missouri. For more information about DAT iQ, visit www.dat.com/iq.

A new force awakens: Thermo King West acquires Thermo King Central Carolinas; rebrands as Force TK

Dana Guthrie - October 24, 2024

TOLLESON, Ariz. — Thermo King West, an authorized Thermo King sales, service and parts dealership, has acquired Thermo King Central Carolinas and its affiliated companies including Thermo King of Roanoke, Triad Thermo King, Mountaineer Thermo King and Mr. Truck Parts; the company will also rebrand as Force TK. “We are ecstatic to add the Thermo King Central Carolinas family to our team,” said Jeff Riley, Thermo King West president. “Thermo King Central Carolinas is recognized as one of the premier Thermo King dealers in North America. This is a natural alignment for us, as we are all committed to the highest level of service. Together, we’ll be able to elevate our solutions even further and provide additional support for customers.” According to a company press release, Thermo King West, which also operates Thermo King Chesapeake, now has 13 locations across nine states providing refrigeration equipment and uptime support for the transportation industry: Arizona, New Mexico, Texas, Wyoming, Maryland, Delaware, North Carolina, Virginia and West Virginia. The company now has more than 300 employees, 132 of which are Thermo King Certified Technicians. Nine of the 13 locations have been designated Blue Track Select by Thermo King Corporation. “We have always regarded Thermo King West as a leading Thermo King dealer, said Jim Christian, Thermo King Central Carolinas president. “We are eager to become a critical part of the organization.” A New Brand Takes Shape Amid this acquisition, Thermo King West has made the strategic decision to rebrand as Force TK. The new name encompasses the diversified solutions and regions the company serves. The rebrand will reinforce that all employees and customers across numerous business lines operate as a cohesive unit. “As we have diversified throughout the years, we needed a single brand that unifies our teams and makes it easier for our customers to understand our business model and benefits,” Riley said. “This rebrand reflects the expertise and innovation of everyone here, aligning our identity with the diverse talents that power our company.” Thermo King West was founded in 1999 by William Riley, as an authorized Thermo King sales, service and parts provider in Arizona and New Mexico. Within three years, the company added locations in Texas and Wyoming. Operations were expanded into Maryland and Delaware in 2005, operating as Thermo King Chesapeake. The company has been headquartered in Tolleson, Arizona since 2014. In addition to refrigerated transportation solutions, Force TK offers specialized equipment and services for spotter trucks, utility vehicles and more. For more information about solutions, services and upcoming announcements, visit ForceTK.com.

Strong new truck sales delay capacity adjustment in the freight market

Cliff Abbott - October 24, 2024

U.S. sales of new Class 8 trucks were stronger than expected in September when 21,813 trucks were reported sold by manufacturers, according to Wards Intelligence. Strong truck sales would seem to be bad news for a freight market that’s plagued by overcapacity, keeping rates low. There is, however, good news in the numbers. Large numbers of the new trucks being sold are going to vocational purposes. “The clean energy transition and AI are driving utility infrastructure investment, while government programs such as CHIPS and BIL have boosted public infrastructure and reshoring projects,” said Kenny Vieth, president and senior analyst at ACT Research. The CHIPS and Science Act of 2022 (CHIPS) provides $50 billion for research, development and manufacture of silicone chips used in electronics and other applications. The Bipartisan Infrastructure Law (BIL), passed in November 2021, provides $1.2 trillion for infrastructure projects. Those projects require trucks — and lots of them. Grants for projects under these bills are just getting started and will continue for years. Companies involved in these construction projects are stocking up on equipment such as day-cab tractors to pull dump trailers and Class 8 trucks fitted with dump, concrete or other bodies. OTR freight segment still awash with available tractors The number of sleeper-equipped Class 8 tractors going to the freight hauling segment of trucking is declining, but at an excruciating low pace. “The U.S. and Canadian tractor markets remain awash in capacity, allowing rates to rise only incrementally over the past year,” Vieth said. “The result has been for-hire carrier profitability at the lowest levels since the global financial crisis (2007-2008).” Vieth describes current levels as “the current worst-in-15-years depression in carrier financial conditions.” September is typically a big month for new truck orders as the next year’s models are announced in August. FTR reports that preliminary North American Class 8 orders in September reached 30,000. That figure is way up from August but represents a decline of 4% from September of 2023. The figure was revised to 3,3000 units as more data came in. Dan Moyer, FTR’s senior analyst/commercial vehicles, also points to the vocational market as a driver of the orders. “The vocational market considerably outperformed the conventional sector, driving most of the month-over-month improvement,” Moyer said. Carriers are still buying, but they’re not expanding their fleets. “Despite stagnant freight markets, fleets continue to invest in new equipment, albeit at replacement demand levels in 2024 to date,” he said. On the used Class 8 market, ACT Research reported a robust month, with dealers reporting an 11% increase over August and a 13% increase over September 2023 numbers. The average used truck was 11% cheaper than it was a year ago and about the same age with 4% more miles on it. ACT’s Steve Tam, vice president and senior analyst says lower interest rates may have sparked some of the increase as well as confidence in freight rates. Carriers ordered trailers in September, too, but not at the levels at which they ordered tractors. FTR reported sales of 11,532 orders for new trailers, down 63% from September 2023. It was the worst September for trailer orders since 2016, the report said. “This divergence suggests that some fleets are prioritizing spending on new power units over trailers, possibly due to reduced profitability or shifting trade cycles,” Moyer said. OEM sales for September 2024 Freightliner led the way in U.S. new Class 8 truck sales in September, reporting movement of 8,137 units for a 6.3% increase over August sales. Compared with September 2023, sales increased 3.4%. For the year to date, Freightliner’s 64,286 trucks sold is 16.0% behind last year’s pace but good for 36.2% of the new Class 8 market in the U.S. Daimler sibling Western Star topped sales of 1,000 for the second consecutive month, reporting 1,006 sold. Although the company’s 8,098 trucks sold represents just 4.6% of the U.S. Class 8 market year to date, the number represents a 40.4% increase over last year’s first nine months — the only percentage increase for any of the major truck manufacturers. International is going in the other direction for the year to date, with 18,835 Class 8 trucks sold compared with 28,973 at the same point of 2023 — a decline of 35%. U.S. sales of 2,705 in September represented an increase of 3.6% over August but lagged behind September 2023 sales by 15.5%. The company has seen its market share drop from 14.3% a year ago to its current 10.6%. Peterbilt reported 3,088 Class 8 trucks sold in September, just 27 fewer than in August (0.9%) and down 10.6% from September 2023 sales. For the year to date, Peterbilt ‘s 28,366 is 2.3% behind sales at the same point as last year, but as a share of the total Class 8 market has risen by 1.6% and currently sits at 16.0% for the year. Kenworth’s 3,176 sold in September was 1.8% higher than its August sales and 5.9% higher than a year ago September. Year to date, the company has sold 27,491 Class 8 trucks, 15.5% of the total market for 2024 and 3.3% ahead of last year’s pace. Volvo reported U.S. sales of 2,514 Class 8 trucks, up 44.9% from August’s sales numbers. For the year, 18,331 Class 8 Volvos have been sold, down 8.2% from last year at the same point. According to reports, 10.3% of the new Class 8 trucks sold this year have been Volvos, down 0.5% from the 2023 pace. Mack took the largest sales drop in September with sales of 1,168 compared with 1,391 in August for a decline of 16.0%. Compared with September 2023 sales declined by 28.0%. For the year so far, Mack’s 11,898 sold represents an 11.9% decline from its 2023 pace for the first nine months. Its share of the Class 8 market remains the same as last year’s at 6.7%. How truck sales finish out the final quarter of 2024 will help determine how 2025 will begin for carriers. For freight rates to increase, more trucks must come out of the market — but that process may be delayed further if new truck sales remain strong.

2024-25 WIT Index: The rise of women in trucking roles and what it means for the future

Dana Guthrie - October 24, 2024

ARLINGTON, Va.– The Women In Trucking Association (WIT) has released findings of its 2024-25 WIT Index which is the industry’s barometer to benchmark and measure the percentage of women who make up critical roles in transportation. According to a WIT press release, these roles include corporate management (C-Suite), those who serve on boards of directors, management and supervisory roles and functional roles such as operations, technicians, HR/talent management, safety and professional drivers. “From August 2023 through April 2024, WIT conducted a survey of organizations of all sizes in transportation to gather percentages of women in their workforce,” WIT said in the release. “The respondents were asked to report data that included demographics, status of the company’s diversity and inclusion policy, and percentages of females in various roles within the company.” Approximately 350 respondents reported their organizations’ gender diversity statistics in the WIT Index (2024-25) survey. A majority of them (51.5%) represent for-hire motor carriers or companies with private fleets as part of the organization’s operations. Of those respondents representing organizations with fleet assets, 38% are for-hire motor carriers of various types (full truckload, less-than-truckload, refrigerated, flatbed, expedited and liquid) and 13.5% are manufacturers, retailers, distributors, and other company types with private fleets. Another 13.5% of respondents are intermediary companies, including third-party logistics companies, truck brokers, and intermodal marketing companies (IMCs). “The 2024-25 WIT Index survey found a substantial number of women in influential leadership roles,” WIT said. “Approximately 28% in C-Suite/executive positions are women, 34.5% in supervisory leadership roles are women, and 29.5% of those who serve on boards of directors are women.” A significant percentage of women also hold roles in these functions: 74.5% in human resources/talent management, 38.5% in dispatcher roles, and 38.5% in safety. However, only 4% of truck diesel technicians are women. “It has been a common assumption for years that the size of companies with for-hire or private fleets have a correlation to the percentage of professional truck drivers who are women,” WIT said. “For the first time, the 2024-25 WIT Index reported percentage of professional truck drivers who are women based upon company workforce size. According to this year’s WIT Index, micro/small companies with less than 500 employees report that 12.5% of their overall professional driver population who hold CDLs are women. Large/medium enterprises with 500 to 4,999 employees report that approximately 10.5% of their overall professional driver workforce who hold CDLs are women. Giant/major enterprises with more than 5,000 employees report that approximately 7% of their truck driver population who hold CDLs are women. It’s important to note that these percentages reflect professional truck drivers who hold CDLs and are driving medium- to heavy-duty commercial trucks, not last-mile or delivery vans or other vehicles that are not heavy-duty trucks.” Click on the following links to review specific data. Percentages of company types Percentages of C-Suite/executives Percentages of supervisory leadership Percentages of boards of directors Percentages of HR/talent management Percentages of dispatchers Percentages of safety professionals Percentages of technicians Percentages of female professional drivers

Molin brings expertise to Rand McNally as new Global Head of Engineering, CTO

Dana Guthrie - October 24, 2024

BOISE, Idaho – Rand McNally, has named Hans Molin as its global head of engineering and chief technology officer (TCO), citing his extensive experience and pivotal role in leading the company’s technology and engineering initiatives, setting the course for its next phase of customer-centric innovation. “Hans is a serial innovator with over 30 patents to his credit,” said Doug Phillips, Rand McNally CEO. “His extensive experience in telematics and connectivity solutions with SafetyDirect, has made him an invaluable asset to Rand McNally. Combined with his long record of leading global, cutting-edge product teams, that also made him the obvious choice to direct the development of our customer-focused solutions.” According to a company media release, Molin joined Rand McNally through the acquisition of SafetyDirect. In his role as CTO, Molin will oversee product planning, development and lifecycle across Rand McNally’s entire portfolio. With decades of experience in the technology and transportation sectors, Molin brings a wealth of knowledge and a unique perspective. His journey began in Sweden at Volvo Cars, where he led the development of pioneering safety advancements, including the world’s first roll stability control system for SUVs. After moving to the U.S., he continued his work on connectivity and safety technologies, ultimately becoming one of the founders of SafetyDirect in 2008. “Safety has always been at the heart of my work,” Molin said. “It’s not just about technology—it’s also about saving lives on the roads. I’m excited to expand on Rand McNally’s principles of safety, simplicity, and trust to deliver innovative solutions for our customers. Our agile team and advanced technology stack position us perfectly for significant strides forward.” Prior to joining Rand McNally, Molin led the SafetyDirect business at Bendix, driving connectivity, data collection, and SaaS solutions, according to the release. His new responsibilities now encompass the full scope of Rand McNally’s technology and engineering initiatives, reinforcing his focus on end-to-end innovation and strategic development. “I’ve known Hans for a while now and I continue to be impressed by the skillset he brings to every situation,” said Jeff Westover, CRO. “His focus on customer needs and impactful innovation, while staying aligned with our revenue goals, makes him the ideal partner for our go-to-market strategy.” Outside of his professional work, Hans enjoys mountain biking, trail running and any kind of music. He resides in Mission Viejo, California, with his wife, Ulrika, who runs her own photography business, and their two daughters.

Old Dominion’s latest financials paint picture of soft economy

Dana Guthrie - October 24, 2024

THOMASVILLE, N.C. — Old Dominion Freight Line’s financial results for the three-month and nine-month periods ended September 30 show a continued softness in the domestic economy. All prior-period share and per share data in this release have been adjusted to reflect the Company’s March 2024 two-for-one stock split. “Old Dominion’s third quarter financial results reflect ongoing softness in the domestic economy,” said Marty Freeman, president and CEO of Old Dominion. “The challenging operating environment, and strong comparable results for the third quarter of 2023, resulted in the first year-over-year decrease in our quarterly revenue and earnings per diluted share this year. Our market share and volume trends, however, remained relatively consistent with the first half of this year while our yield continued to improve. The consistency in our market share and yield performance continued to be supported by our best-in-class service, as we once again provided our customers with 99% on-time service and a cargo claims ratio of 0.1% during the quarter.” Freeman noted in a company press release that revenue for the third quarter decreased by 3.0%, due primarily to a 4.8% decrease in LTL tons per day that was partially offset by a 1.5% increase in LTL revenue per hundredweight. We also had one additional operating day as compared to the third quarter of 2023. The decrease in LTL tons per day reflects a 3.4% decrease in LTL shipments per day and a 1.4% decrease in LTL weight per shipment. LTL revenue per hundredweight, excluding fuel surcharges, increased 4.6% as compared to the third quarter of 2023, as the company maintained its long-term and disciplined approach to pricing. The company will continue to focus on consistently improving yields to offset cost inflation and support ongoing investments in capacity, technology, and the OD Family of employees. “Our operating ratio increased by 210 basis points to 72.7% for the third quarter of 2024,” Freeman said. “The decrease in revenue had a deleveraging effect on many of our operating expenses, which contributed to the 110 basis point increase in our overhead costs as a percent of revenue. Direct operating costs also increased as a percent of revenue despite our team operating very efficiently during the third quarter. The increase in our direct operating costs as a percent of revenue was primarily due to an increase in costs associated with our group health and dental plans. The combination of the decrease in our revenue and the increase in our operating ratio resulted in the 7.1% decrease in earnings per diluted share to $1.43 for the third quarter.” Cash Flow and Use of Capital Old Dominion’s net cash provided by operating activities was $446.5 million for the third quarter of 2024 and $1.3 billion for the first nine months of the year, according to the release. The company had $74.2 million in cash and cash equivalents at September 30, 2024. Capital expenditures were $242.8 million for the third quarter of 2024 and $600.4 million for the first nine months of the year. The Company expects its aggregate capital expenditures for 2024 to total approximately $750 million, including planned expenditures of $350 million for real estate and service center expansion projects; $325 million for tractors and trailers; and $75 million for information technology and other assets. Old Dominion continued to return capital to shareholders during the third quarter of 2024 through its share repurchase and dividend programs. For the first nine months of this year, the Company utilized $824.8 million of cash for its share repurchase program, including a $200.0 million accelerated share repurchase agreement that will expire no later than November 2024, and paid $168.2 million in cash dividends. “During the third quarter, Old Dominion continued to execute on the same long-term strategic plan that has guided our success for many years, Freeman said. “This plan is centered on our ability to deliver superior service at a fair price, which has helped us create a best-in-class value proposition. We continue to believe that the consistency and quality of our service performance has differentiated Old Dominion in the marketplace and driven our long-term profitable growth. This is why our team is incredibly motivated to keep delivering on our promise to provide superior service and value to our customers, as we believe executing on the fundamental aspects of our business plan will win additional market share and drive increased shareholder value.”

NATSO expands board with appointment of Gary Hoogeveen

Dana Guthrie - October 24, 2024

ALEXANDRIA, Va. — NATSO has appointed Gary Hoogeveen, President of Pilot Energy, to the association’s board of directors, bringing the board to a total of 19 directors. “We are pleased to welcome Gary Hoogeveen to our Board of Directors,” said Lisa Mullings, NATSO president and CEO. “Gary’s deep experience in the energy sector will be invaluable to NATSO and its membership as we pursue our member-driven policy priorities in the coming year as part of our mission to serve the nation’s truck stops and travel center industry.” According to a media release, Hoogeveen was named president of Pilot Energy in April 2024, and oversees the company’s integrated fuel supply chain, including upstream infrastructure and asset management, business development, procurement, logistics, and transportation. In addition, he and his team lead the ongoing development and innovation of electric and alternative energy solutions. “NATSO has been the voice of our industry for more than 60 years, and I’m honored to be appointed to their board of directors,” said Hoogeveen. “I look forward to being part of the conversation to drive education, innovation and progress on behalf of our industry.” Hoogeveen previously served as the president and CEO of Rocky Mountain Power. He also was president of Kern River Gas Transmission Company for four years and has held various leadership positions at Berkshire Hathaway Energy since 2000. He currently serves on the Salt Lake City Chamber of Commerce Board of Governors, the EDCUtah board of advisors, the Envision Utah board of directors and the Utah Sports Commission board of trustees. Hoogeveen earned a Bachelor of Science degree in physics from the University of Northern Iowa and a Ph.D. in space physics from Rice University. The complete 2024 NATSO board of directors includes: Joe Zietlow, Chairman of the Board, Kwik Trip Inc. Jim Hays, Immediate Past Chair, Dodge City Petro Matt Mildenberger, Chair Elect, Mittens Travel Center, Oakley Kansas TA Heather DeBaillie, NATSO Foundation, Chairman of the Board, CAT Scale Co. and Iowa 80 Group Lisa Mullings, president and CEO, NATSO, representing America’s truck stops and travel centers Marko Zaro, Secretary/Treasurer, Road Ranger Ted Augustine, At-Large Director, 24/7 Travel Stores Debi Boffa, Chain Director, Travel Centers of America Damon Borden, At-Larger Director, Broadway Truck Stops Ted Giles, Allied Director, Wynn’s Grain & Spice Herb Hargraves, At-Large, Sprint Mart Victoria Hendon, At-Large Director, Danny’s Truck Wash & Service Center Gary Hoogeveen, Chain Director, Pilot Energy Frank Love, Chain Director, Love’s Operating Companies, Inc. Bruce Morgan, Chain Director, QuikTrip Corp. Andrew Richard, At-Large Director, Sapp Bros. Inc. Raina Shoemaker, At-Large Director, Shoemaker’s Travel Centers Elizabeth Waring, At-Large Director, Busy Bee David Young, Allied Director, Valvoline

Analysts say trucking conditions will begin to improve — but slowly

Cliff Abbott - October 24, 2024

For several months, there have been hints that the freight market is beginning to turn. Unfortunately, spot freight rates have been bouncing along the bottom for so long that smaller carriers — and some larger ones, too — weren’t able to hold on. Those that remain should see market improvement, but analysts say it may be excruciatingly slow. The Cass Freight Index showed a 1.7% decrease in shipments for September, following a 1.0% August increase. September shipments were down 5.2% from the same month of 2023. The Cass Freight Index for Expenditures, however, rose 2.4% in September from August levels. Shippers paid more for freight transportation, even though diesel fuel costs declined during the month. The Cass Inferred Freight Rates, calculated from the total expenditures and shipments, showed a 4.2% month-over-month increase. While the rates are averaged from multiple modes of transportation and not taken from actual published rates, the trend is encouraging. The Cass report, written by Tim Denoyer of ACT Research, points out that private fleets have helped prolong the down cycle in freight rates. Companies that were severely impacted by record high freight rates during the pandemic increased the size of their own fleets, putting less of their product on the spot market while taking loads that would have been hauled by for-hire carriers. Denoyer mentions another event that could impact freight rates: The Federal Motor Carrier Safety Administration’s mandated automatic downgrade of CDLs when a driver is in a “prohibited” status takes effect Nov. 18, 2024. Under the “Clearinghouse-II” rule, states are required to downgrade CDLs to non-CDL status when drivers fail a drug or alcohol screen, refuse to test or are otherwise disqualified. As of Nov. 18, all licensing agencies are required to be connected to the Clearinghouse database. As a result, states that were not previously connected could find drivers who are currently in a prohibited status but still driving. There’s no way to estimate how many drivers might lose their CDL privileges as a result, but the number could be significant enough to push freight rates upward — at least temporarily. DAT Freight & Analytics, which operates the largest U.S. load board, began its October report by saying that September freight volumes and rates “signaled that the usual cyclical demand for truckload capacity is on the upswing.” DAT reports that its Truckload Volume Index (TVI) declined for dry van, refrigerated and flatbed segments in September — but the declines were seasonal. They happen every September. The good news is that all three equipment types saw increases over September 2023. Van volumes increased by 6% and refrigerated by 12%, while flatbed volumes rose a more modest 2%. “September showed we’re firmly into a new freight cycle after nearly 22 months of rather extreme expansion and 27 months of contraction,” said Ken Adamo, DAT’s chief of analytics. “We expect seasonality to provide some tailwinds over the next few months, and hopefully modest improvements in rates coupled with retail freight volumes and stable fuel prices can get the motor carrier base on more solid footing.” The American Trucking Associations’ (ATA) Truck Tonnage Index fell 2.1% in September. Like the DAT information, the results were due more to the season than trends. “Freight has been very choppy this year, but despite the latest drop, tonnage is up 1.8% since hitting a low in January,” explained Bob Costello, ATA’s chief economist. “No doubt, the climb up has been slow and difficult as manufacturing activity remains flat, but the trend is up, not down.” Low freight rates are only one of the problems facing carriers. Inflation has hit everyone hard, and small trucking businesses are no exception. The cost of trucks, parts, repairs and just about everything else has risen in the past few years. The exception is diesel fuel, which has declined in price. While the rate of inflation has slowed, the cost increases brought about by higher inflation remain. Without a recession to “reset” the economy, prices won’t be going down; they just won’t be going up as fast as they were. Financial services provider Deloitte, in its economic forecast for the third quarter of 2024, said that “robust consumer spending, high business investment and lower interest rates” have created optimism about the U.S. economy. The firm predicts that federal adjustments to interest rates will succeed in keeping inflation around 2.2% toward the end of the year. For 2025, an inflation rate of 1.5% is forecast. The Fed’s Open Market committee meets again in early November and is expected to reduce interest rates another .25%. Deloitte predicts total cuts for 2024 of 1%, with another 1% through 2025. The economic wild card for trucking could be the cost of diesel fuel. Military conflicts are ongoing in both the Middle East and in Ukraine — and both are regions that produce petroleum. Should either conflict escalate, crude oil prices could rise quickly. Another potential issue could come as a result of the presidential election in the U.S. Both major candidates — former President Donald Trump and current Vice President Kamala Harris — have discussed the possibility of imposing or increasing tariffs on foreign goods. When tariffs are involved, imports and exports are impacted. The result can be changes in the amount of available freight, pushing rates up or down. The short-lived labor stoppage at U.S. East Coast ports has been settled, for now. The International Longshoremen’s Association and the U.S. Maritime Alliance agreed to a tentative deal, extending their current contract to January 15, less than a week prior to the inauguration of the next U.S. president. Expected freight shortages throughout this year’s holiday season have been averted. The agreement calls for a 61.5% pay increase for workers with other issues to be ironed out in negotiations by the January 15 deadline. Perhaps the largest issue to resolve is that of automation. The U.S. lags behind other countries in the degree of automation used. The 85,000-member union seeks to preserve jobs, while port operators look to increase efficiency and reduce costs. The months ahead should see trucking conditions improve, but slowly.

Drivers Legal Plan gets endorsement from NCTA

Bruce Guthrie - October 23, 2024

OKLAHOMA CITY, Okla. — Drivers Legal Plan (DLP), a national law firm specializing in CDL ticket defense for commercial truck drivers, announced a formal endorsement by the North Carolina Trucking Association (NCTA), the non-profit organization representing the trucking industry in the state. According to a press release issued recently, the partnership “reinforces both organizations’ commitment to supporting the trucking community and advocating for the rights of professional drivers.” With a successful track record in defending commercial drivers against a wide range of traffic violations, DLP has consistently delivered favorable outcomes for its clients. The NCTA added that its endorsement “is a testament to DLP’s expertise, reliability, and dedication to protecting the livelihoods of professional drivers and therefore the interests of trucking companies.” “The recent severe storms in North Carolina have had a devastating impact on our state, and the trucking industry has been hit hard,” said Ben Greenberg, President and CEO of the North Carolina Trucking Association. “It’s more crucial than ever to support our members and help protect their interests. We are proud to endorse Drivers Legal Plan, and their extensive experience in our industry makes them an ideal partner for our members.” “We’re honored to announce our partnership with the North Carolina Trucking Association and have committed a portion of our revenue from NCTA members back to the organization,” stated Marilyn Surber, Vice President of Sales and Marketing at Drivers Legal Plan. “We’re committed to offering our comprehensive legal services to NCTA members, providing them with the peace of mind and legal protection their drivers deserve on the road.”

FTR’s Trucking Conditions Index improves in August but remains negative

Dana Guthrie - October 23, 2024

Bloomington, Ind. — FTR’s Trucking Conditions Index improved in August to -1.39 from the reading of -5.59 in July; a return to consistent decreases in fuel prices was the biggest factor in better market conditions for carriers in August, although all factors improved at least minimally. “Trucking is en route to more favorable conditions next year, but the road remains bumpy as both freight volume and capacity utilization are still soft, keeping rates weak,” said Avery Vise, FTR’s vice president of trucking. “Our forecasts continue to show the truck freight market starting to favor carriers modestly before the second quarter of next year.” FTR forecasts TCI readings to remain mostly negative to neutral through the beginning of 2025. According to a FTR press release, details of the August TCI are found in the October issue of FTR’s Trucking Update, published on September 30. Additional commentary discusses the likely divergence of active trucking capacity and the number of employee truck drivers. The Trucking Update includes data and analysis on load volumes, the capacity environment, rates, and the economy. “The TCI tracks the changes representing five major conditions in the U.S. truck market,” FTR said in the release. “These conditions are: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. The individual metrics are combined into a single index indicating the industry’s overall health. A positive score represents good, optimistic conditions. Conversely, a negative score represents bad, pessimistic conditions. Readings near zero are consistent with a neutral operating environment, and double-digit readings in either direction suggest significant operating changes are likely.”

Sentence handed down for trucking owner’s illicit deals

Dana Guthrie - October 23, 2024

UTAH —Alexsander Vasiliyevich Barsukov, who pleaded guilty to conspiracy to commit wire fraud, was sentenced to 3 years of probation, including six months of home detention, $1,378,702 in restitution, $6,754,845 in forfeiture and a $100 special assessment for his role in a bribery scheme involving Salt Lake Trucking Group (SLTG). “Barsukov, along with others, owned SLTG, which is comprised of several trucking companies that contract to carry packages for FedEx Ground (FXG),” said the U.S. District Court of Utah. “The investigation revealed that SLTG paid bribes to FXG employees who manipulated FXG’s process governing the awarding of new runs. An employee also helped the co-conspirators grow their business larger than FXG allowed by submitting false information to FXG. During the approximate 10-year conspiracy, SLTG received about $108 million in FXG revenue.” DOT-OIG conducted this investigation with the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, and the Defense Criminal Investigative Service. The case was prosecuted by the U.S. Attorney’s Office for the District of Utah.

Class 8 orders jump to a strong start in September, according to ACT Research

Dana Guthrie - October 23, 2024

COLUMBUS, Ind. – ACT Research reports final North American Class 8 net orders totaled a strong 37,100 units in September, kicking off the beginning of “order season.” According to a media release, while the top line flatters, the underlying numbers point to a bifurcated market with softness in tractors and considerable strength in vocational, as published in ACT Research’s latest State of the Industry: NA Classes 5-8 report. “Tractor orders were down 32% y/y at 17,000 units, as a weak for-hire market weighs down capital budgets. Vocational orders surged in September to 20,000 units and were up 71% y/y,” said Kenny Vieth, ACT’s President and Senior Analyst. “With production capacity constrained in recent years, lingering pent-up demand and string end markets—still-plentiful stimulus money from CHIPS, IRA, IIJA projects, construction in Mexico, and utility investments—provide strong tailwinds in vocational.” Regarding backlog, Vieth also noted that the Class 8 backlog rose 10,600 units m/m in September to 116,034 units. :Despite orders outpacing build for only the second time this year, the backlog-to-build ratio remained unchanged at 4.2 months on a nominal basis,” Vieth said.

PACCAR achieves excellent quarterly revenues and profits

Dana Guthrie - October 23, 2024

BELLEVUE, Wash. — PACCAR achieved net income of $972.1 million ($1.85 per diluted share) in the third quarter of this year compared to $1.23 billion ($2.34 per diluted share) earned in the same period last year. Third quarter revenues were $8.24 billion, compared to $8.70 billion reported in the third quarter of 2023. “PACCAR achieved excellent revenues and net income in the third quarter of 2024,” said Preston Feight, chief executive officer. “PACCAR’s truck and Parts operations achieved robust quarterly sales and profits due to industry-leading trucks and strong aftersales performance. PACCAR Financial Services achieved good results due to its high quality portfolio. I am very proud of our employees for producing the highest quality trucks and transportation solutions for our customers.” According to a press release, PACCAR reported net income of $3.29 billion ($6.25 per diluted share) for the first nine months of 2024, compared to $3.18 billion ($6.07 per diluted share) earned in same period last year, which included a $446.4 million after-tax, non-recurring charge related to civil litigation in Europe. Excluding the non-recurring charge, the company earned adjusted net income (non-GAAP)1 of $3.63 billion ($6.92 per diluted share) in the first nine months of 2023. Net sales and financial services revenues for the first nine months of 2024 were $25.76 billion, compared to $26.05 billion achieved last year. Financial Highlights – Third Quarter 2024 Highlights of PACCAR’s financial results for the third quarter of 2024 include: Net sales and revenues of $8.24 billion. Net income of $972.1 million. Global truck deliveries of 44,900 units. PACCAR Parts revenues of $1.66 billion. PACCAR Parts pretax income of $406.7 million. PACCAR Financial Services pretax income of $106.5 million. Cash generated from operations of $1.29 billion. Stockholders’ equity of $18.66 billion. Financial Highlights – Nine Months 2024 Highlights of PACCAR’s financial results for the first nine months of 2024 include: Net sales and revenues of $25.76 billion. Net income of $3.29 billion. PACCAR Parts pretax income of $1.28 billion. PACCAR Financial Services pretax income of $331.6 million. Capital investments of $567.7 million and R&D expenses of $337.6 million. Cash generated from operations of $3.20 billion.

FTR, ACT report preliminary net trailer orders at lowest level for the month since 2016

Dana Guthrie - October 23, 2024

According to ACT Research, preliminary net trailer orders rose about 4,400 units from August to September, but at 12,100 units, were lower compared to last September, down 61% y/y. Seasonal adjustment (SA) at this point in the annual order cycle lowers September’s tally to 10,700 units, but that’s nearly 13% above August’s seasonally adjusted intake. Final September results will be available later this month. This preliminary market estimate is typically within ±5% of the final order tally. “Since September is the traditional start to the order season, this month’s uptick was expected, said Jennifer McNealy, director CV Market Research and Publications at ACT Research. “It’s also no surprise that the data is significantly below the September 2023 intake, given the soft demand recorded throughout this year. September’s data brings ytd 2024 US trailer net orders to 101,600 units, a 34% contraction when compared to the first nine months of 2023, and puts Q3’24 net orders at just 27,000 units, 51% lower than the same quarter last year.” According to McNealy, despite the sequential order improvement, September data continue to bear witness to our expectations of weaker demand against the backdrop of elevated order velocity the past few years, continuing weak for-hire truck market fundamentals, and already-filled dealer inventories. An order uptick showcasing demand, or the lack thereof, depends not just on one month, but on the next few months as OEMs more fully open their 2025 books. “Industry anecdotes suggest that the ‘pause button’ is expected to remain pressed through the remainder of 2024, and those on the frontlines are expressing concern about 2025,” McNealy said. “The timing and size of 2025 order bookings is the wildcard. Additional indicators supporting the lack of optimism include still-elevated cancellations and backlogs lower than we’ve seen in a decade. Despite positive momentum in the US economy, lingering weak carrier profitability suggests little support for trailer orders to bolster 2025 backlogs into the end of 2024.” FTR reported much the same as ACT Research. According to FTR, September U.S. trailer net orders rose by 75% month-over-month (m/m) from a low base to 11,532 units but were down 63% year-over-year (y/y). Net orders were the lowest for a September since 2016. Despite the opening of 2025 order boards, the industry’s net orders fell well below expectations, raising concerns for the upcoming order season. “Although trailer orders were weak in September, Class 8 orders slightly exceeded expectations at nearly 33,000 units for North America,” said Dan Moyer, senior analyst, commercial vehicles. “This divergence suggests that some fleets are prioritizing spending on new power units over trailers, possibly due to reduced profitability or shifting trade cycles. Higher-than-ideal trailer inventories at dealerships, lower fleet capital expenditures on trailers, and shrinking backlogs likely will put downward pressure on trailer build rates for the rest of 2024. If trailer orders for 2025 don’t pick up soon, some OEMs may extend or expand production cuts into next year.” The challenging truck freight environment in 2024 is continuing to suppress U.S. trailer demand, according to FTR. Year-to-date (YTD) for 2024, total trailer net orders fell 31% y/y, reaching 92,642 units, averaging just 10,294 units per month. Total trailer build decreased by 11% m/m and 40% y/y in September, totaling just 15,617 units – the lowest monthly output since July 2020. “In September, total net orders were once again below production levels, causing backlogs to drop by 4,255 units to just over 82,750 units,” FTR said in a media release. “The larger m/m decrease in production compared to backlogs pushed the backlog/build ratio up to 5.3 months. Despite this increase, it remains the second-lowest reading since July 2020 and is about 0.6 months below the pre-2020 historical average. This ratio suggests that manufacturers still have incentive to slow production further.”

ATA: Truck tonnage index plunged 2.1% in September

Linda Garner-Bunch - October 22, 2024

WASHINGTON — The American Trucking Associations’ (ATA) advanced seasonally adjusted For-Hire Truck Tonnage Index decreased 2.1% in September after rising 1.7% in August. In September, the index equaled 113.2 (2015=100) compared with 115.6 in August. “After increasing a total of 2.1% in July and August, tonnage fell by that amount in September,” said Bob Costello, ATA’s chief economist. “Freight has been very choppy this year, but despite the latest drop, tonnage is up 1.8% since hitting a low in January,” he said. “No doubt, the climb up has been slow and difficult as manufacturing activity remains flat, but the trend is up, not down.” August’s increase was revised down slightly from ATA’s Sept. 24 press release. Compared with September 2023, the index fell 0.9%, after rising 0.6% in August from a year earlier. The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 111.6 in September, 6.4% below August. ATA’s For-Hire Truck Tonnage Index is dominated by contract freight as opposed to traditional spot market freight.

Spot rates up across the board on Truckstop according to FTR

Dana Guthrie - October 22, 2024

The aftermath of Hurricane Milton likely was a factor, but regional data suggests broader market strength as broker-posted spot rates in the Truckstop system rose for all equipment types during the week ending October 18 (week 42). “Dry van spot rates increased for a fourth straight week for the first time since May 2021, and refrigerated spot rates saw their second-largest gain since May,” said FTR in a press release. “Flatbed spot rates were positive y/y – barely – for only the third time this year.” The nearly 25% increase in load postings versus the same 2023 week represented the strongest y/y comparison since early 2022, and volume even slightly exceeded that in the same 2022 week, according to FTR. With the increase in volume exceeding the increase in truck postings, the Market Demand Index rose to 72.0, the highest level in 13 weeks and exceeded the five-year average. Total Spot Load Availability Total load activity rose 6.8% after barely moving during the previous week. Load postings were nearly 25% higher than the same 2023 week – the strongest y/y comparison since early 2022 – and even exceeded volume in the same 2022 week slightly. Loads were about 14% below the five-year average for the week. Total truck postings increased 3.9%, and the Market Demand Index – the ratio of load postings to truck postings in the system – rose to its highest level in 13 weeks, exceeding the five-year average for the week slightly. Total Spot Rates The total broker-posted rate increased 2.7 cents after declining more than 1 cent in the prior week. The rate increase was the first in a week 42 since 2016. Rates were 1.7% above the same 2023 week for the second-strongest y/y comparison this year but were more than 5% below the five-year average. Spot rates excluding a calculated fuel surcharge were more than 10% higher than the same 2023 week and were positive y/y for all equipment types. The current week (week 43) usually sees lower overall rates week over week, but history varies by equipment type. Dry Van Spot Rates Dry van spot rates increased 6.5 cents after moving up just over 1 cent during the previous week. Rates were 3.5% above the same 2023 week for the strongest y/y comparison since March 2022 but were nearly 9% below the five-year average for the week. Excluding an imputed fuel surcharge, rates were 15% higher than during the same 2023 week. Dry van loads rose 9.9%. Volume was about 2% above the same 2023 week – the strongest y/y comparison since July – but about 30% below the five-year average. Refrigerated Spot Rates Refrigerated spot rates rose 10.5 cents after easing almost 1 cent in the prior week. Rates were nearly 4% above the same 2023 week – the strongest y/y comparison since July – but about 5% below the five-year average. Rates excluding an imputed fuel surcharge were up 12.7% y/y. Refrigerated loads rose 15.9% for the strongest weekly gain since the weather-impacted week 3 this year. Volume was nearly 13% above the same 2023 week – the strongest y/y comparison since January – but more than 22% below the five-year average for the week. Flatbed Spot Rates Flatbed spot rates increased 1.3 cents after falling nearly 3 cents in the previous week. Rates, which increased for only the second time in a week 42 in 12 years, were 0.4% above the same 2023 week but more than 5% below the five-year average for the week. Rates excluding an imputed fuel surcharge were up 8.3% y/y. Flatbed loads increased 3.8%. Volume was more than 47% above the same week last year – the strongest y/y comparison since August 2021 – but more than 6% below the five-year average.