Business Archives

ALAN urges caution during Debby event

Bruce Guthrie - August 5, 2024

LAKELAND, Fla. – As Hurricane Debby has made landfall in Florida, the American Logistics Aid Network (ALAN) is urging residents of the Southeast to heed emergency management officials’ warnings about everything from safely evacuating to sheltering in place — and asking members of the logistics community to be ready to help. “In addition to high winds and a significant storm surge, Hurricane Debby has the potential to bring huge amounts of rain and significant flooding to many parts of Florida, Georgia and the Carolinas. That has us especially concerned, because flood waters are often the deadliest and most underestimated effect of a hurricane,” said Kathy Fulton, ALAN’s executive director. According to Fulton, ALAN has already begun meeting with many of the non-profit agencies that will lead early relief efforts, and it is poised to provide them with logistics support as needed. “As always, most of their requests for support will arrive after the storm has passed, because that’s when safety officials and first responders will have a chance to get into the area, assess the damage and determine what’s needed,” she said. “We’ll be posting these requests on our Disaster Micro-Site as soon as we receive them, and we encourage people to visit it often in the days and weeks ahead.” Businesses that wish to offer their assistance now can visit ALAN’s web site at: https://www.alanaid.org/offer-inkind-services-or-equipment or make a financial donation to ALAN. They can also view current information about Hurricane Debby’s path and the storm’s supply chain impacts via ALAN’s Supply Chain Intelligence Center or the Helpful Links portion of ALAN’s Disaster Micro-Site. “We’ll provide more specific updates, including information about what’s needed most, as the storm progresses,” Fulton said. “Meanwhile, please join us in holding good thoughts for the many people who are in Hurricane Debby’s cone of concern.”

ACT, FTR differ on rate of Class 8 sales decline

Bruce Guthrie - August 5, 2024

Two reporting agencies are a bit conflicted when posting preliminary stats for North American Class 8 net orders for July. Reports from both ACT Research and FTR Transportation Intelligence were released Friday, Aug. 2. While the numbers are a bit different, the consensus remains that numbers down. According to the ACT report, July preliminary North America Class 8 net orders were 13,400 units, down 8% month to month and 13% year to year. “Class 8 orders remained at directionally and seasonally expected levels in July,” shared Kenny Vieth, ACT’s president and senior analyst. “Historically, July is the worst month of the year for Class 8 orders, so is awarded the biggest seasonal factor, nearly 24% this year. Applying that seasonal factor boosts July’s seasonally adjusted intake to 17,500 units, which results in a narrower 3.7% month-over-month decline.” Vieth added that the headwinds that have been buffeting the US portion of the NA commercial vehicle industry did not diminish through the first half of 2024, and were arguably a touch worse at the start of the year’s second half. “Preliminary results of public TL carriers’ [second quarter] performance are only encouraging in the sense that the nominal results were up from [first quarter],” he said. “To this we add surging and record-level inventories, in both the medium and heavy-duty markets. … we have been repeatedly surprised to the upside on order activity. As was the case in June, July’s orders were more closely aligned with data-driven expectations.” ACT’s final report for July will be released in mid-August. While FTR agreed with much of Veith’s analysis of the market, the numbers were a bit askew from what ACT reported. FTR reported that Class 8 preliminary net orders in July totaled 12,400 units, down 6% month over month and 7% year over year. Class 8 orders for the past 12 months have now totaled 272,900 units. July’s orders are somewhat below seasonal expectations with the market on a year-to-date (YTD) basis now performing slightly below replacement demand levels with an average of 19,400 net orders per month, according to FTR’s released statement. The decline is unsurprising given the strong order performance in the first five months of the year and the typically weak seasonal order period. After averaging nearly 16,000 units from April to June, orders have slowed to just under 15,000 units in the most recent three months, FTR’s report stated. Build slot fulfillment for Class 8 trucks continues to decline as a result. Orders are now lower on a y/y basis for the second consecutive month, but due to the strong performance earlier in the year, net orders for 2024 year to date remain up 18% year over year. “OEMs experienced a somewhat mixed market this month with vocational markets mildly underperforming conventional, but the overall picture was steady,” said Dan Moyer, senior analyst, commercial vehicles at FTR. “Despite stagnant freight markets, fleets continue to invest in new equipment, albeit at a slowing pace. Year-to-date order levels are just marginally below historical averages and seasonal expectations, and the market fundamentals remain relatively consistent based on these preliminary orders. We expect to see further reductions in backlogs once the final Class 8 market indicators are released later this month as well as continued growth in an already-record level of inventory. The pressure on OEMs to reduce build rates continues to grow.” FTR will also release finalnumbers in mid-August.

USDOT withdraws rule allowing testing of oral fluids in Clearinghouse

Dana Guthrie - August 2, 2024

WASHINGTON — After receiving negative comments, the U.S. Department of Transportation (USDOT) on Aug. 1, 2024, published a notice in the Federal Register withdrawing a direct final rule (DFR) that was published on June 21 regarding procedures for transportation workplace drug and alcohol testing programs. “Because DOT received adverse comments on the DFR, the rule has been withdrawn, and the provisions of the DFR will not take effect,” according to an Aug. 1 press release. In May 2023, the DOT announced changes to the program to allow for the inclusion of oral fluid testing. The DFR was not intended to replace current drug testing collection methods but to add to the choices employers and drivers have when taking an agency-issued test. The final rule, established June 21, 2024, stated that the USDOT would be making a series of technical amendments to its drug testing procedures rule, which was effective June 1. According to the USDOT, the purpose of the technical amendments was “to clarify certain provisions of the rule and address omissions of which we have become aware since the publication of the final rule. ” The original proposed rule stated that the USDOT was proposing to revise its drug and alcohol testing procedures to provide temporary qualification requirements for mock oral fluid monitors, provide for consistent privacy requirements by identifying which individuals may be present during an oral fluid collection, and clarify how collectors are to specify that a sufficient volume of oral fluid iscollected. According to the Aug. 1 notice, the USDOT is simultaneously publishing the revision of its drug testing regulation as a direct final rule without a prior proposed rule. If no adverse comments are received, the agency says it will not take further action on the proposed rule. The DOT received 19 comments on the rule, including one from the National Drug & Alcohol Screening Association. “NDASA previously submitted opposition to the final rule and now submits a detailed response that directly addresses problem areas for this proposed change,” the NDASA said. To view all the comments submitted on the rule, click here.

Despite a soft freight market, XPO reports strong results companywide

Dana Guthrie - August 2, 2024

GREENWICH, Conn. — XPO has announced its financial results for the second quarter 2024 noting that in North American LTL, the company improved damage claims ratio to 0.2% – a new company record. “We reported a strong second quarter of earnings growth, underpinned by a year-over-year increase in revenue of 9%. Companywide, we grew adjusted EBITDA by 41% and adjusted diluted EPS by 58%,” said Mario Harik, chief executive officer of XPO. “In North American LTL, we continued to deliver service at record levels, with the best damage claims ratio in our history at 0.2%. This helped drive above-market yield growth, exfuel, of 9%, and a 3.4% increase in tonnage per day, with 4.5% more shipments per day. We also operated more cost efficiently, reducing purchased transportation and increasing labor productivity. As a result, we reported a 51% increase in adjusted operating income and improved our adjusted operating ratio by 440 basis points to 83.2%. In addition, we’ve now opened 14 of the 28 service centers we acquired in December, with another 10 expected this year.” The company reported diluted earnings from continuing operations per share of $1.25, compared with $0.27 for the same period in 2023, and adjusted diluted earnings from continuing operations per share of $1.12, compared with $0.71 for the same period in 2023. “Our strong performance demonstrates the steady progress we’re making toward becoming the LTL service leader in North America,” Harik said. “We’ll continue to build our service offering, invest in capacity ahead of demand and operate more efficiently. This strategy is creating a long runway for future margin expansion.” Second Quarter Highlights According to the release, for the second quarter 2024, the company generated revenue of $2.08 billion, compared with $1.92 billion for the same period in 2023. The year-over-year increase in revenue was due primarily to higher yield and tonnage per day in the North American LTL segment. Operating income was $197 million for the second quarter, compared with $107 million for the same period in 2023. Net income from continuing operations was $150 million for the second quarter, compared with $31 million for the same period in 2023. The year-over-year increase in net income from continuing operations includes a one-time tax benefit of $41 million related to the reorganization of the company’s legal entities in the European business. Diluted earnings from continuing operations per share was $1.25 for the second quarter, compared with $0.27 for the same period in 2023. Adjusted net income from continuing operations, a non-GAAP financial measure, was $135 million for the second quarter, compared with $83 million for the same period in 2023, and excludes the $41 million tax benefit. Adjusted diluted EPS, a non-GAAP financial measure, was $1.12 for the second quarter, compared with $0.71 for the same period in 2023. Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), a non-GAAP financial measure, was $343 million for the second quarter, compared with $244 million for the same period in 2023. The release added that the company generated $210 million of cash flow from operating activities in the second quarter and ended the quarter with $250 million cash and cash equivalents on hand, after $184 million of net capital expenditures. Results by Business Segment North American Less-Than-Truckload (LTL): The segment generated revenue of $1.27 billion for the second quarter 2024, compared with $1.14 billion for the same period in 2023. On a year-over-year basis, shipments per day increased 4.5%, tonnage per day increased 3.4%, and yield, excluding fuel, increased 9.0%. Including fuel, yield increased 7.8%. Operating income was $203 million for the second quarter 2024, compared with $129 million for the same period in 2023. Adjusted operating income, a non-GAAP financial measure, was $214 million for the second quarter, compared with $142 million for the same period in 2023. Adjusted operating ratio, a non-GAAP financial measure, was 83.2%, reflecting a year-over-year improvement of 440 basis points. Adjusted EBITDA for the second quarter 2024 was $297 million, compared with $208 million for the same period in 2023. The year-over-year increase in adjusted EBITDA was due primarily to higher yield, excluding fuel, and an increase in tonnage per day. European Transportation: The segment generated revenue of $808 million for the second quarter 2024, compared with $781 million for the same period in 2023. Operating income was $10 million for the second quarter, compared with $12 million for the same period in 2023. Adjusted EBITDA was $49 million for the second quarter 2024, compared with $46 million for the same period in 2023. Corporate: The segment generated an operating loss of $16 million for the second quarter 2024, compared with a loss of $34 million for the same period in 2023. The year-over-year improvement in operating loss was due primarily to a $6 million reduction in transaction and integration costs and a $4 million reduction in restructuring costs. Adjusted EBITDA, a non-GAAP financial measure, was a loss of $3 million for the second quarter 2024, compared with a loss of $10 million for the same period in 2023, reflecting a year-over-year improvement from the company’s continued rationalization of corporate overhead costs. Adjusted EBITDA, a non-GAAP financial measure, was a loss of $3 million for the second quarter 2024, compared with a loss of $10 million for the same period in 2023, reflecting a year-over-year improvement from the company’s continued rationalization of corporate overhead costs.

CH Robinson to focus on growing market share and expanding operating income margins

Dana Guthrie - August 2, 2024

EDEN PRAIRIE, Minn.— C.H. Robinson Worldwide, Inc. has released its financial results for the quarter that ended June 30 showing fourth consecutive quarters of growth and commends its staff for embracing changes aimed at delivering high quality and consistent performance levels. “Our second quarter results reflect a higher quality of execution and performance, as we continue to implement the new Robinson operating model, “said Dave Bozeman, C.H. Robinson’s president and Chief Executive Officer. “And although we continue to fight through an elongated freight recession, we are winning and executing better at this point in the cycle. Our truckload business grew market share for the fourth consecutive quarter, and we took share the right way, with margin improvement in mind. And our adjusted income from operations increased 32 percent year-over-year for the full enterprise.” Second Quarter Key Metrics: Gross profits increased 3.0% year-over-year to $676.5 million and increased 4.5% sequentially. Income from operations increased 34.3% year-over-year to $178.1 million and increased 40.1% sequentially. Adjusted operating margin (1) increased 600 basis points to 25.9%. Diluted earnings per share (EPS) increased 29.6% to $1.05. Adjusted EPS (1) increased 25.0% to $1.15. Cash generated by operations decreased by $58.4 million to $166.4 million provided by operations. “I also want to commend our people for continuing to embrace the changes that we’re making to deliver a higher and more consistent level of performance and for the high quality second quarter results that they delivered in what continues to be a challenging market,” said Bozeman. “With ongoing efforts to improve the customer experience and our cost to serve, we continue to focus on ensuring that we’ll be ready for the eventual freight market rebound, with a disciplined operating model that decouples headcount growth from volume growth and drives operating leverage.” According to a press release, Bozeman said that all the changes the company is making are aimed at generating incremental operating income and delivering higher highs and higher lows over the course of freight market cycles. “We will do this by focusing on two main fronts, growing market share and expanding our operating income margins,” said Bozeman. “We’ll continue to grow market share by leveraging our robust capabilities to power vertical-centric solutions, by reclaiming share in targeted segments, and by expanding our addressable market through value-added services and solutions that drive new volume to our four core modes. We’ll also be more intentional with our go-to market strategy to drive additional synergies and cross-selling across our portfolio.” Summary of Second Quarter of 2024 Results Compared to the Second Quarter of 2023 Total revenues increased 1.4% to $4.5 billion, primarily driven by higher pricing in our ocean services, partially offset by lower pricing in our truckload services. Gross profits increased 3.0% to $676.5 million. Adjusted gross profits increased 3.3% to $687.4 million, primarily driven by higher adjusted gross profit per transaction in truckload and less than truckload (“LTL”) services. Operating expenses decreased 4.4% to $509.3 million. Personnel expenses decreased 4.3% to $361.2 million, primarily due to cost optimization efforts. The average employee headcount declined 10.0%. Other selling, general and administrative (“SG&A”) expenses decreased 4.8% to $148.1 million, with reductions across several expense categories. Income from operations totaled $178.1 million, up 34.3% due to the increase in adjusted gross profits and decrease in operating expenses. Adjusted operating margin (1) of 25.9% increased 600 basis points. Interest and other income/expense, net totaled $21.5 million of expense, consisting primarily of $22.9 million of interest expense, which decreased $0.3 million versus last year, due to a lower average debt balance, and a $0.5 million net gain from foreign currency revaluation and realized foreign currency gains and losses. The effective tax rate in the quarter was 19.4%, compared to 14.9% in the second quarter last year. The higher rate in the second quarter of this year was driven by lower benefits from foreign tax credits, a higher foreign tax rate, and the impact of higher pretax income, partially offset by higher U.S. tax credits and incentives. Net income totaled $126.3 million, up 29.7% from a year ago. Diluted EPS of $1.05 increased 29.6%. Adjusted EPS (1) of $1.15 increased 25.0%. “We’ll expand our operating income margins by embedding Lean practices, removing waste and expanding our digital capabilities,” Bozeman said. “This will enable us to strengthen our productivity and optimize our organization structure in order to be the most efficient operator, in addition to the highest value provider. We’ll optimize our gross profit by monitoring key input metrics and responding faster to error states and changing market conditions with countermeasures and innovative technology that improves our execution. As we take action on all of these fronts, I’m excited about the work that we’re doing to reinvigorate Robinson’s winning culture and to instill discipline with our new operating model. The operating model is helping us execute a solid strategy even better, and we expect further improvement as we continue to cascade the new operating model deeper into the organization and as our team continues to embrace it and build operational muscle. I know from my past experiences of implementing Lean operating models, that improvement isn’t always linear, and we still have a lot of grass to cut. I’m confident in the team’s willingness and ability to drive a higher level of discipline in our operational execution.” North American Surface Transportation (NAST) Results According to the release, second quarter total revenues for the NAST segment totaled $3.0 billion, a decrease of 2.9% over the prior year, primarily driven by lower truckload pricing, reflecting an oversupply of truckload capacity compared to freight demand. NAST adjusted gross profits increased 4.8% in the quarter to $419.7 million. Adjusted gross profits in truckload increased 7.9% due to a 6.5% increase in adjusted gross profit per shipment and a 1.5% increase in truckload shipments. Our average truckload linehaul rate per mile charged to our customers, which excludes fuel surcharges, decreased approximately 2.0% in the quarter compared to the prior year, while truckload linehaul cost per mile, excluding fuel surcharges, also decreased approximately 3.5%, resulting in an 8.0% increase in truckload adjusted gross profit per mile. LTL adjusted gross profits increased 6.5% versus the year-ago period, driven by a 1.5% increase in LTL volume and a 5.0% increase in adjusted gross profit per order. NAST overall volume growth increased 1.5% for the quarter. Operating expenses decreased 1.5%, primarily due to lower technology expenses and cost optimization efforts, which were partially offset by higher variable compensation. NAST average employee headcount was down 9.7% in the quarter. Income from operations increased 19.7% to $141.1 million, and adjusted operating margin expanded 420 basis points to 33.6%. Global Forwarding Results Second quarter total revenues for the Global Forwarding segment increased 18.1% to $921.2 million, primarily driven by higher pricing in our ocean services. Adjusted gross profits increased 2.7% in the quarter to $184.1 million. Ocean adjusted gross profits increased 8.6%, driven by a 4.0% increase in shipments and a 4.5% increase in adjusted gross profit per shipment. Air adjusted gross profits decreased 8.9%, driven by an 18.0% decrease in adjusted gross profit per metric ton shipped, partially offset by a 11.0% increase in metric tons shipped. Customs adjusted gross profits increased 6.1%, driven by a 6.0% increase in transaction volume. Operating expenses decreased 4.3%, primarily due to lower technology expenses and due to cost optimization efforts. Second quarter average employee headcount decreased 11.0%. Income from operations increased 38.2% to $41.0 million, and adjusted operating margin expanded 580 basis points to 22.3% in the quarter. All Other and Corporate Results Second quarter Robinson Fresh adjusted gross profits increased 5.2% to $39.9 million due to an increase in integrated supply chain solutions for retail and foodservice customers. Managed Services adjusted gross profits decreased 0.7%. Other Surface Transportation adjusted gross profits decreased 20.3% to $15.1 million, primarily due to a 23.3% decrease in Europe truckload adjusted gross profits. Other Income Statement Items Interest and other income/expense, net totaled $21.5 million of expense, consisting primarily of $22.9 million of interest expense, which decreased $0.3 million versus the second quarter of 2023 due to a lower average debt balance, and a $0.5 million net gain from foreign currency revaluation and realized foreign currency gains and losses. The second quarter effective tax rate was 19.4%, up from 14.9% last year. The higher rate in the second quarter of this year was driven by lower benefits from foreign tax credits, a higher foreign tax rate, and the impact of higher pretax income, partially offset by higher U.S. tax credits and incentives. For 2024, we expect our full-year effective tax rate to be 17% to 19%. Diluted weighted average shares outstanding in the quarter were up 0.1%. Cash Flow Generation and Capital Distribution Cash generated from operations totaled $166.4 million in the second quarter, compared to $224.8 million of cash generated from operations in the second quarter of 2023. The $58.4 million decrease in cash flow from operations was primarily related to a $166.7 million decline in cash provided by changes in net operating working capital, due to a $23.1 million sequential increase in net operating working capital in the second quarter of 2024 compared to a $143.7 million sequential decrease in the second quarter of 2023. In the second quarter of 2024, cash returned to shareholders totaled $76.4 million, with $72.7 million in cash dividends and $3.7 million in repurchases of common stock. Capital expenditures totaled $19.3 million in the quarter. Capital expenditures for 2024 are expected to be toward the lower end of the previously provided range of $85 million to $95 million.

Schneider National operations income for Q2 2024 drops 50% compared to 2023

Dana Guthrie - August 2, 2024

GREEN BAY, Wis.—Schneider National Inc. has announced financial results for the three months ending June 30 which showed a 50% drop in operations income as compared to the same time in 2023. “The second quarter showed continued progress toward market equilibrium as evidenced by moderate seasonality and a tightening spot market,” said Mark Rourke, president and CEO of Schneider. “Enterprise results benefited from our continued emphasis on cost containment and asset efficiency, contributing to sequentially improved performance across our multimodal platform of Truckload, Intermodal and Logistics.” Enterprise Results According to an Aug. 1, 2024, press release, enterprise income from operations for the second quarter of 2024 was $51.0 million, a decrease of $52.8 million, or 51%, compared to the same quarter in 2023. Diluted earnings per share in the second quarter of 2024 was $0.20 compared to $0.43 in the prior year. Gains on the sales of transportation equipment were $9.9 million lower compared to the same quarter in 2023. Cash Flow and Capitalization By June 30, Schneider had $265.0 million outstanding on total debt and finance lease obligations compared to $302.1 million as of December 31, 2023. The company had cash and cash equivalents of $103.2 million and $102.4 million as of June 30, 2024 and December 31, 2023, respectively. The company’s cash provided by operating activities for the second quarter of 2024 increased year over year, while net capital expenditures were lower year over year largely due to reduced purchases of transportation equipment. As of June 30 year to date free cash flow increased $93.5 million compared to the same period in 2023. “We have maintained pricing discipline in a highly competitive bid season, and while certain elements of our portfolio achieved positive contract pricing during the second quarter renewals, the rate and pace of the change to date are below our expectations,” Rourke said. “For the second half of the year, we anticipate movement towards more typical freight replenishment and seasonality trends, contributing to continued improvement in margin performance across our operating segments.” According to the release, In February 2023, the company announced the approval of a $150.0 million stock repurchase program. As of June 30, the company had repurchased 3.6 million Class B shares for $91.9 million under the program to date. In April 2024, the company’s Board of Directors declared a $0.095 dividend payable to shareholders of record as of June 7, which was paid on July 9. On July 29 the company’s Board of Directors declared a $0.095 dividend payable to shareholders of record as of September 13 expected to be paid on October 8. As of June 30, the company had returned $33.3 million in the form of dividends to shareholders year to date. Results of Operations – Reportable Segments Truckload Truckload revenues (excluding fuel surcharge) for the second quarter of 2024 were $540.3 million, an increase of $7.6 million, compared to the same quarter in 2023. Results were driven by organic and acquisitive growth in dedicated, partially offset by lower network pricing and volumes year over year. Truckload revenue per truck per week was $3,933, a decrease of 2% compared to the same quarter in 2023. Network revenue per truck per week increased 3% from the prior quarter, while Dedicated revenue per truck per week improved 2%. Truckload income from operations was $30.7 million in the second quarter of 2024, a decrease of $34.1 million, or 53%, compared to the same quarter in 2023 primarily due to lower network pricing and volumes, as well as decreased gains on the sale of transportation equipment. Truckload operating ratio was 94.3% in the second quarter of 2024 compared to 87.8% in the second quarter of 2023. A level of seasonal freight volumes as well as targeted productivity actions favorably impacted operating ratio, which improved 290 basis points from the first quarter of 2024. Intermodal Intermodal revenues (excluding fuel surcharge) for the second quarter of 2024 were $253.1 million, a decrease of $7.9 million, or 3%, compared to the same quarter in 2023, largely due to lower revenue per order compared to the same quarter in 2023. Volumes were up slightly compared to the same period a year ago. Intermodal income from operations for the second quarter of 2024 was $14.6 million, a decrease of $9.1 million, or 38%, compared to the same quarter in 2023. Results were primarily due to lower revenue per order, partially offset by network management, operational and dray cost improvements. Intermodal operating ratio was 94.2% in the second quarter of 2024, compared to 90.9% in the second quarter of 2023. Volume growth and productivity actions favorably impacted operating ratio, which improved 300 basis points from the first quarter of 2024. Logistics Logistics revenues (excluding fuel surcharge) for the second quarter of 2024 were $318.8 million, a decrease of $24.6 million, or 7%, compared to the same quarter in 2023, driven by decreased revenue per order and 4% lower brokerage volume compared to the same quarter in the prior year. Power Only continued to recognize volume growth year over year as well as momentum from the prior quarter. Logistics income from operations for the second quarter of 2024 was $11.2 million, a decrease of $1.6 million, or 13%, compared to the same quarter in 2023 primarily due to lower brokerage volumes and decreased net revenue per order. Logistics operating ratio was 96.5% in the second quarter of 2024, compared to 96.3% in the second quarter of 2023. Effective gross margin management contributed to the 180 basis point improvement in operating ratio compared to the first quarter of 2024. “Our results for the second quarter reflected progress in both external market dynamics and our continued internal efforts to restore margins,” said Darrell Campbell, executive vice president and Chief Financial Officer of Schneider. “We are approximately three quarters of the way through the freight allocation season in our network businesses and those outcomes have shifted the timing of achieving the level of pricing improvements that we previously anticipated. As a result, we are updating our full year 2024 adjusted diluted earnings per share guidance to a range of $0.80 – $0.90, as well as net capital expenditures guidance to a range of $300 – $350 million.”

Freight trends from DAT One and DAT iQ show declining load posts; spot rate drops

Dana Guthrie - August 1, 2024

BEAVERTON, Ore. — According to DAT Freight & Analytics, load posts declined 3% while spot rates slumped. According to a press release, summer seasonality continued to take hold in the spot truckload freight market. The number of loads posted on DAT One fell for the second straight week, dropping by 3% to 1.83 million last week, down 7% year over year. Truck posts decreased 6% to 324,253. “At 4.1, the national average dry van load-to-truck ratio is the highest for Week 30 in eight years, except for the pandemic year of 2020, when it was 4.2,” said DAT principal analyst Dean Croke. “The national average dry van linehaul spot rate has decreased by 6 cents per mile in the last month. The average rate of $1.64 per mile is almost the same as last year.” Croke added that On DAT One’s Top 50 van lanes (based on the number of loads moved), the average rate was $2.03 a mile, down 3 cents week over week. “At $1.96 per mile, the average reefer linehaul rate was 3 cents lower year over year and 2 cents lower than the three-month trailing average,” Coke said. “Weak produce shipments have affected demand for reefer trucks: the U.S. Department of Agriculture reports that truckload produce volumes for Week 30 are among the lowest in 10 years.” Dry Vans ▼ Van loads: 863,599, down 1.9% week over week ▼ Van equipment: 212,812, down 6.2% ▼ Linehaul rate: $1.64 net fuel, down 1 cent week over week ▲ Load-to-truck ratio: 4.1, up from 4.0 Reefers ▼ Reefer loads: 409,340, down 3.8% week over week ▼ Reefer equipment: 64,446, down 7.5% ▼ Linehaul rate: $1.96 net fuel, down 4 cents ▲ Load-to-truck ratio: 6.4, up from 6.3 Flatbeds ▼ Flatbed loads: 559,343, down 5.6% week over week ▼ Flatbed equipment: 46,995, down 4.2% ▼ Linehaul rate: $2.00 net fuel, down 2 cents ▼ Load-to-truck ratio: 11.9, down from 12.5

Semi-Finalists announced for the 2024 Transition Trucking: Driving for Excellence Award

Dana Guthrie - August 1, 2024

WASHINGTON, D.C.— Kenworth, Fastport, and the U.S. Chamber of Commerce Foundation’s Hiring Our Heroes initiative has announced the semi-finalists for the 2024 Transition Trucking: Driving for Excellence Award. “This year’s group of ‘Transition Trucking: Driving for Excellence Award’ semi-finalists are inspiring examples of accomplished military veterans who are making a successful transition into the trucking industry,” said Kenworth director of marketing, Kyle Kimball. “Kenworth is honored to mark our ninth year of participation in the program with FASTPORT and the U.S. Chamber of Commerce Foundation’s Hiring Our Heroes initiative. I look forward to meeting all the esteemed semi-finalists this fall and presenting the T680 keys to a deserving veteran in Washington, D.C. at the end of the year.” Launched in 2016 to recognize the achievements of veterans transitioning into the transportation industry, this year’s program semi-finalists represent multiple branches of the United States Military, including National Guard and Reserve components. The semi-finalists include: Jadarion Blakemore, U.S. Army (E-5), CRST – The Transportation Solution Inc. (Trained by Troops Into Transportation) Quantae Dozier, U.S. Army (E-4), Epes Transport System, LLC (Trained by Troops Into Transportation) Richard Flirt III, U.S. Navy (E-4), Legacy Express (Trained by Fox Valley Technical College) Brian Ferguson, U.S. Army and U.S. Army National Guard (E-7), Melton Truck Lines (Trained by Troops Into Transportation) Justin Sisler, U.S. Marine Corps (E-2), Prime Inc. (Trained by Roadmaster Drivers School) Douglas Couch, U.S. Navy (E-5), Roehl Transport, Inc. Mark Joseph, U.S. Navy and U.S. Army National Guard (O-3), Stevens Transport (Trained by Troops Into Transportation) Cory Troxwell, U.S. Army (E-7), Stevens Transport (Trained by Phoenix Truck Driving Institute) Shawn Haley, U.S. Marine Corps (E-4), Veriha Trucking LLC (Truck Driver Institute) William Taylor, U.S. Coast Guard (E-7), Werner Enterprises (Trained by Roadmaster Drivers School) According to a press release, the grand prize is a Kenworth T680 truck, equipped with a 76-inch sleeper and the PACCAR Powertrain featuring the PACCAR MX-13 engine rated at 455 horsepower, PACCAR TX-12 automated transmission and PACCAR DX-40 tandem rear axles. The Kenworth T680 features a Diamond VIT interior in slate gray with madrona accents and includes the latest in driver amenities. Both the driver and passenger seats are GT703 leather seats that are fully heated and cooled. The 76-inch sleeper includes space for a microwave and TV, a factory-installed fridge, and a rotating worktable. The T680 also includes the latest in driver assistance systems, including Kenworth’s Digital Mirrors, Bendix Fusion Adaptive Cruise Control (ACC) Stop and Auto Go, and Lane Keeping Assist with Torque Assisted Steering, according to the release. “The Transition Trucking award campaign highlights the impact veterans are making in the transportation industry and introduce a new generation of veterans to the real economic opportunity a career in trucking can represent,” said president of Hiring Our Heroes and a vice president of the U.S. Chamber of Commerce, Eric Eversole. As part of the ninth annual award program, each semi-finalist will attend a ceremony at the National Veterans Memorial and Museum on Sept. 25th in Columbus, Ohio. The following day will include a tour of the Kenworth Chillicothe manufacturing plant where semi-finalists will be recognized, and finalists will be announced. “We are immensely proud to recognize this diverse group in the program’s history, including a large number of drivers in Registered Apprenticeship Programs,” said president of FASTPORT, Inc., Brad Bentley. “These remarkable drivers assure us that the future of this industry is in excellent hands, and we look forward to saluting the heroes who navigate the highways of opportunity that trucking offers.” Finalists and the ultimate winner will be part of a greatly expanded veteran-focused week that includes a Veteran-Ready Summit on (December 11-14) the Transition Trucking: Driving for Excellence Award announcement on December 13th, Employment Support of the Guard and Reserve (ESGR) Statement of Support Signing Ceremony later that afternoon, and Wreaths Across America on December 14th. According to the release, a public vote will occur online from November 1st until Veteran’s Day. This voting is an important determiner for the award’s Selection Committee, which makes the ultimate choice for the next Transition Trucking award winner. For more information, visit the Transition Trucking website.

US Bank Freight Payment Index shows less contraction, regional bright spots

Bruce Guthrie - August 1, 2024

MINNEAPOLIS — Finally a small amount of positivity shined through a recent U.S. Bank report. Truck freight volumes and spending continued to drop in the second quarter, but at a slower pace than recent quarters, according to the latest U.S. Bank Freight Payment Index. Shipments increased in three regions – the West, Northeast and Southeast – on a quarterly basis, the first time multiple regions have experienced increased volume in more than a year. “Our data is showing some signs that the very challenging freight market could be nearing a bottom,” said Bobby Holland, director of freight business analytics, U.S. Bank. “There are still headwinds for carriers, but at least in terms of volume, there are some bright spots across the country.” In the second quarter, shipments nationally dropped 2.2% while spending contracted 2.8% on a quarterly basis. The declines were less severe than the first quarter, when spending fell 16.8% and shipping volume dropped 7.8%. Still, second quarter shipments were down 22.4% compared to a year earlier and spend was off 23.5%. “Trucking companies are facing a triple challenge of lower volumes due to consumer preference to spend on experiences versus goods, suppressed rates and higher costs,” said Bob Costello, senior vice president and chief economist at the American Trucking Associations. “This situation is likely to cause further capacity reductions in the industry.” The U.S. Bank Freight Payment Index measures quantitative changes in freight shipments and spend activity based on data from transactions processed through U.S. Bank Freight Payment, which processes more than $42 billion in freight payments annually for shippers and carriers across the U.S. The Index insights are provided to U.S. Bank customers to help them make business decisions and discover new opportunities. National Data Shipments Linked quarter: -2.2% Year over year: -22.4% Spending Linked quarter: -2.8% Year over year: -23.5% Regional Data West Shipments Linked quarter: 1.5% Year over year: -19.8% Spending Linked quarter: -2.3% Year over year: -25.5% This marked the first sequential volume gain for the West since the first quarter of 2022. Seaport volume as well as truck-transported exports and imports in the region have increased, which boosts truck freight. Southwest Shipments Linked quarter: -13.6% Year over year: -26.8% Spending Linked quarter: -1.4% Year over year: -25.5% The Southwest truck freight market has struggled the last several quarters after outperforming other regions in parts of 2022 and 2023. The 1.4% quarterly spending drop was much better than the first quarter, when spending was down -16.5%. Cross border trucking in the region has been one of the few bright spots for the market. Midwest Shipments Linked quarter: -2.7% Year over year: -20.3% Spending Linked quarter: -6.0% Year over year: -23.1% One of only two regions to post a quarterly decline in volumes, the Midwest experienced sequential declines in five consecutive quarters. The findings align with flat or slightly declining economic indicators in the region. Northeast Shipments Linked quarter: 2.7% Year over year: -25.2% Spending Linked quarter: -0.1% Year over year: -26.9% This was the first time in two years the Northeast experienced a quarterly increase in shipments. According to the Federal Reserve’s Beige Book, spending on goods have held steady in the region, which supports truck freight. Southeast Shipments Linked quarter: 1.8% Year over year: -22.9% Spending Linked quarter: -0.9% Year over year: -20.3% Southeast shipments increased for the first time in three years. The region is experiencing improved home construction, retail demand and seaport volume.

Truckstop and Bloomberg Intelligence survey shows stronger demand may be around the corner

Bruce Guthrie - August 1, 2024

BOISE, Idaho — It is semi-annual survey time again, and the latest version offered a glimmer of hope: The Bloomberg Intelligence/Truckstop semi-annual freight broker survey shows “brokers are hopeful that demand could pick up in the latter half of the year,” according to a recent media release. “Though freight brokers continued to face challenging demand and rates in the first half of the year, there are some signs that the worst may be over,” said Lee Klaskow, senior freight transportation and logistics analyst at Bloomberg Intelligence. “We believe a return to seasonal demand, higher import levels and inventory restocking will help drive a recovery later this year.” The first-half 2024 broker survey shows brokers are hopeful that the market may be finally moving toward equilibrium; stronger demand may be around the corner, according to the results of the survey. Those results further show that most brokers appear optimistic that volume growth is just around the bend, despite demand challenges. Of those surveyed, about 49% project a volume increase in the next three to six months, 31% expect flat loads and 20% anticipate a decline Results also show a belief that spot rates may have hit a trough, according to the results. It appears that an increasing number of brokers believe that rates have hit bottom, with 76% of respondents projecting rates to stay flat or increase over the next three to six months, three percentage points higher than the second half of 2023. Truckstop’s Market Demand Index, a measure of relative demand in the North American trucking market, rose 24% on average in the second quarter of last year Survey takers also believe that broker margins remain under strain. In fact, results show that about 44% of respondents noted lower gross margins in the first half of 2024 compared to that same time frame in 2023 which is 13 percentage points worse by comparison than what brokers indicated the last survey at the end of 2023. Brokers are not optimistic about margins for the rest of the year as 30% expect margins to deteriorate over the next six months, seven percentage points more than in last year’s survey. Increased use of tools powered by artificial intelligence could help boost margins by improving pricing, productivity gains and network optimization. The brokerage industry is still in the early stages of AI adoption — just 36% of respondents are deploying such tools within their operations. “Despite the improved outlook over the past six months, brokers remain skeptical about their ability to increase gross margins,” said Kendra Tucker, CEO of Truckstop. “Truckstop remains dedicated to providing tools that help brokers operate with speed and confidence, enabling them to move faster, gain efficiencies and grow profits.” The BI Truckstop survey of freight brokers provides timely channel checks into the market’s health. The most recent sample size was 113, consisting of freight forwarders, third-party logistics providers and broker agents, as well as asset and non-asset-based brokers. Most respondents (70%) have 1-50 employees. Of those surveyed, non-asset-based brokers made up the biggest group (44%), followed by broker agents (25%) and third-party logistic providers (16%).

Knight-Swift Transportation grows LTL offerings with acquisition of Dependable Highway Express

Bruce Guthrie - August 1, 2024

PHOENIX, Ariz. — In a move that was effective on Wednesday, July 31, Knight-Swift Transportation Holdings Inc. has acquired the operating assets, and assumed certain liabilities of the non-union regional less-than-truckload (“LTL”) division (“DHE”) of Dependable Highway Express Inc., according to a press release. Dependable Highway Express is based in Los Angeles, California. The acquisition is expected to be immediately accretive to Knight-Swift’s earnings per share. Knight-Swift CEO Adam Miller said the acquisition was a move for growth. “We are excited to take the next step toward building a nationwide LTL business, and especially to grow our network to include the key Southwest markets of California, Arizona and Nevada,” he said. “This transaction increases our LTL terminal and door counts by approximately 10% and brings our network’s coverage of the US population to approximately 70%. The strategic value of acquiring a strong Southwest competitor like DHE is meaningful given the impact to our coverage area significantly expands the customers we can serve as well as the difficulty of building or acquiring LTL facilities in many of these locations. DHE will connect with our existing AAA Cooper and MME businesses to provide seamless coast-to-coast service to our customers.” “I want to welcome the DHE employees to the Knight-Swift family and look forward to working together to deliver creative solutions and excellent service to even more customers,” Miller added. “Coupling the proud DHE brand with our resources, network, and scale should represent expanded opportunities for employees and enhanced offerings for customers. We are grateful for the efforts of many at Knight-Swift, AAA Cooper, and DHE who have worked to bring this transaction to fruition and who will continue to work together to ensure a smooth transition for all employees and customers.” “The entire Massman family is immensely proud of the legacy built by the DHE LTL team and thankful for their efforts over our many years in business. While we never intended to sell the division, we have watched with admiration as Knight-Swift set about building a leading national LTL business,” Dependable CEO Ronald Massman added. “When the Company approached us about a transaction, we immediately saw the strategic merit of the Dependable LTL division joining the platform. Additionally, we felt the entire Knight-Swift organization epitomized our core values of Integrity, Service and Diversity in every way. We could not have asked for a better steward of the business and look forward to watching the combined LTL business grow from here.” Financial terms were not disclosed though the company estimates that DHE generated approximately $122 million in total operating revenue over the past twelve months with an operating margin of approximately 10%. According to the report, the DHE associates and assets will operate as a separate brand under the AAA Cooper corporate group. Joe Finney served as Chief Operating Officer of DHE prior to the transaction and will continue leading DHE as its President after the transaction. Scudder Law served as legal advisor to Knight-Swift. Houlihan Lokey served as financial advisor to Dependable, and Proskauer served as legal advisor to Dependable.

FleetPulse receives new funding from NFI Ventures

Erica N. Guy - July 31, 2024

CHICAGO — Customer focus is about to get extra attention at FleetPulse, who announced recently via media release that it has received additional funding from NFI Ventures, which will be used to enhance the development of its customer-focused innovations and expedite product commercialization. “The trailer must be a strategic, digital asset in our rapidly evolving industry,” said Carl-Christoph “CCR” Reckers, CEO of FleetPulse. “This additional funding is a vote of confidence from forward-looking and highly respected partners in the trucking and venture capital industries, and these relationships will deepen our understanding of customer needs as well as enable us to tap into valuable networks to accelerate commercially.” Following its recent separation from Great Dane and an $11M seed funding round, FleetPulse continues to attract strategic and financial investments. NFI, an early adopter of FleetPulse trailer telematics, has been instrumental in pilot programs and technology design partnerships, the release stated, aimed at improving safety, cargo security, and fleet performance. “Working together with Fleet Pulse will enable us to provide richer data and insights to our customers,” said Jim O’Leary, vice president of fleet services at NFI. “We go beyond providing transportation services and enable our customers to make data-driven decisions about their business.” Ironspring Ventures, an early-stage, sector-focused venture capital firm with expertise across the industrial supply chain, also backed FleetPulse, given its rapid trailer deployment and commercial progress since launching as an independent company earlier this year. “FleetPulse delivers crucial visibility and data-driven insights into trailers, a key asset in the supply chain that has been underserved,” said Ty Findley, general partner at Ironspring Ventures. “We were impressed by the team’s ability to rapidly deploy the FleetPulse product commercially onto what is now tens of thousands of trailers all across the U.S., Mexico and Canada. And we’re thrilled to catalyze our network in support of the company’s incredible early momentum.”

Nominations now open for WIT’s 2024 Influential Woman in Trucking award

Erica N. Guy - July 31, 2024

ARLINGTON, Va. — The Women In Trucking Association (WIT) and Daimler Truck North America (DTNA) are now accepting nominations for the “2024 Influential Woman in Trucking” award. Created in 2010, the award honors women in the transportation industry who make or influence key decisions in corporate, manufacturing, supplier, owner-operator, driver, sales or dealership settings. The women also have a proven responsibility and mentorship record and serve as role models to other women in the industry. “Celebrating the successes of women in the transportation profession is a key part of the mission of Women In Trucking,” said Jennifer Hedrick, president and CEO of WIT. “It’s an honor each year to share the stories and successes through this award.” “The Influential Woman in Trucking award highlights the incredible contributions of women in our industry and aligns with our commitment to creating a more inclusive and diverse workforce,” said Angela Lentz, Chief People Officer at DTNA. “We have seen the representation of women in the truck industry grow at all levels, from the driver’s seat to the C-suite, and we believe that by celebrating the accomplishments of women in trucking, we can continue to drive positive change and innovation in our industry.” Nominations will be accepted through September 11 at https://witawards.secure-platform.com/site. The winner will be announced at the WIT Accelerate! Conference & Expo held in Dallas, Texas, Nov. 10-13, 2024. Each finalist will be asked to serve as a panelist for the coffee chat discussion on Nov. 12. The winner will receive a two-hour virtual coaching session with keynote speaker Ankha Marza prior to the Accelerate! Conference & Expo. Past recipients of the Influential Woman in Trucking Award include: 2023 – Shelley Simpson, president, J.B. Hunt Transport Services Inc. 2022 – Trina Norman, Southern California feeder operations manager, UPS 2021 – Lily Ley, vice president and chief information officer, PACCAR 2020 – Kristy Knichel, president of Knichel Logistics, and Jodie Teuton, co-founder of Kenworth of Louisiana 2019 – Ruth Lopez, director, transportation management, Ryder System, Inc. 2018 – Angela Eliacostas, founder and CEO, AGT Global Logistics 2017 – Daphne Jefferson, principal and executive coach, Jefferson Consulting Group, LLC (former deputy administrator, FMCSA) 2016 – Ramona Hood, president and CEO, FedEx Custom Critical 2015 – Kari Rihm, president, Rihm Kenworth 2014 – Marcia Taylor, CEO, Bennett International Group 2013 – Rebecca Brewster, president & COO, American Transportation Research Institute 2012 – Joyce Brenny, president, Brenny Transportation Inc./Brenny Specialized Inc. 2011 – Rochelle Bartholomew, CEO, CalArk International

Daimler Truck Financial Services appoints Kevin Bangston as president and CEO

Erica N. Guy - July 31, 2024

LEINFELDEN-ECHTERDINGEN, Germany — When Sept. 1 rolls around on the calendar, Daimler Truck Financial Services North America (DTFA) will have a new president and CEO. That’s the date Kevin Bangston is scheduled to step into the role, according to a July 31 press release. Bangston is currently president and CEO of Thomas Built Buses and Freightliner Custom Chassis Corp. In his new position, he will be responsible for DTFS in the U.S., Canada and Mexico. He has over 25 years of experience in the transportation industry and is well-equipped to lead the DTFS North American business into the next era. He started his career at Daimler Truck North America (DTNA) in 2001, working in corporate finance. His success in various roles led to international leadership positions in Germany, Indonesia, and Japan. “I am extremely happy and proud that we can bring Kevin into the Daimler Truck Financial Services leadership team,” said Stephan Unger, CEO of Daimler Truck Financial Services GmbH. “With his leadership skills, his experience and deep knowledge of the transportation industry, Kevin will further develop our business and lead our transformation in North America from purely financial to a complete commercial vehicle service provider.” The current president and CEO of DTNA, John O’Leary, voiced his support for Bangston being his successor. “Kevin’s proven leadership track record and broad experience across both DTNA and the larger Daimler Truck organization positions him well for success in his new position,” O’Leary said. “We look forward to having him as a member of our DTNA Operating Committee (OpCom) and working together to continue provide our customers and dealers the industry-leading service and support they expect and deserve.” Bangston succeeds Richard Howard, who will retire effective July 31 after a successful career at DTNA and DTFS. Over a span of more than 31 years, Howard held leadership positions in Africa, Asia, Europe and North America. “We cannot express how thankful we are for Richard´s achievements during his whole career. His leadership, motivation, dedication, and deep knowledge of the truck industry have always been essential for our culture and our success. We wish him all the best for his future,” said Unger and O`Leary. Bangston’s successor at Thomas Built Buses and Freightliner Custom Chassis Corporation has yet to be named; however, Bangston will continue to support both businesses on an interim basis.

Banyan Technology noted on 2024 list of top workplaces

Erica N. Guy - July 31, 2024

CLEVELAND — In a recent media release, Banyan Technology announced its appearance on the prestigious Top Workplaces 2024 list by the cleveland.com website and The Plain Dealer newspaper. The ranking is derived exclusively from employee feedback collected via a third-party survey conducted by Energage, LLC, an employee engagement technology partner. This confidential survey distinctively evaluates the employee experience, focusing on various aspects such as respect, support, growth opportunities, and empowerment to perform tasks, among others. “At Banyan Technology, we take pride in empowering our employees by sharing the company’s vision and involving them in our success. We believe this approach, along with continued employee development efforts, is what fuels Banyan’s inclusion year-over-year on the Top Workplaces 2024 list,” said Brian Smith, CEO of Banyan. “We are proud to be at the forefront of freight software and deeply appreciate the dedication of our employees and their commitment to our core values of: Client Centric, Ingenuity, Tenacity and Transparency.” Its release states that the organizational culture and strategic goals at Banyan are deeply rooted in the principles of the Entrepreneurial Operating System (EOS), which encourages companies to adopt process enhancements, acknowledge personal and professional achievements, and set attainable and realistic business targets. “Earning a Top Workplaces award is a badge of honor for companies, especially because it comes authentically from their employees,” said Eric Rubino, Energage CEO. “That’s something to be proud of. In today’s market, leaders must ensure they’re allowing employees to have a voice and be heard. That’s paramount. Top Workplaces do this, and it pays dividends.”

Diesel prices continue downward trend for third straight week

Bruce Guthrie - July 31, 2024

While not quite as drastic as last week’s diesel plunge, prices did tick downward again for the third consecutive week according to information released July 29. According to the numbers released by the Petroleum Administration for Defense District, diesel fuel prices are continuing to move downward nationally by an average of 1.1 cents from $3.779 to $3.768 per gallon. It was last week that prices dropped the sharpest in the latest continuous downward trend that saw prices fall from an average of $3.826 per gallon to $3.779. The largest decrease in prices came from the Gulf Coast week. This week prices actually went slightly up from $3.461 to $3.468. The Midwests’ prices fell nearly 10 cents last week from $3.551 to $3.461. That ever-so-slight uptick did not sway the trend or affect the national average. The East Coast and Lower Atlantic regions dropped sharply again. The Lower Atlantic region fell by nearly three cents per gallon from $3.778 to $3.751. Meanwhile the East Coast dipped nearly three cents as well from $3.872 to $3.844. California’s diesel prices declined again from $4.874 per gallon $4.831 The two west coast regions’ prices also fell by nearly two cents per gallon. The Midwest did not enjoy as much of the relief as many did, but did edge downward by about a half cent from $3.732 to $3.727.

Van spot rates ease as seasonally stronger period approaches, FTR report shows

Erica N. Guy - July 30, 2024

BLOOMINGTON, Ind. — When it comes to spot rates, the trend recently has been downward. That trend continued this week. According to a press release issued recently, FTR Transportation Intelligence reported that the broker-posted spot rates in the Truckstop system declined for the third straight week during the week ended July 26, following holiday-related strength in early July. As noted in previous reports, rate softness in July is the norm, but spot rates for van equipment — especially refrigerated vans — are on the verge of a typical firming period heading into Labor Day. Van spot rates remained higher year-over-year in the latest week, although their positive comparisons tightened. Flatbed spot rates were marginally below the same 2023 week. According to the release, the total load activity bounced back a bit increasing by 2.5% after declining 6.5% during the previous week. Additionally, total volume was nearly 11% above the same 2023 week but more than 24% below the five-year average for the week. Total truck postings increased more than 5%, and the Market Demand Index — the ratio of load postings to truck postings in the system — declined to its lowest level since February except for the week that included the Fourth of July holiday. Data also showed that the total broker-posted rate eased just over 1 cent after decreasing nearly 3 cents in the previous week. Total rates were nearly 1.4% above the same 2023 week but about 7% below the five-year average for the week. Although rates usually decline week over week during week 30, decreases are less reliable than they are for week 29. Total rates typically stabilize around early August as gains in van rates start to offset declines in flatbed rates. Week 31 usually sees week-over-week increases in van spot rates but declines in flatbed rates. Dry van spot rates decreased 1.6 cents after falling nearly 6 cents in each of the two most recent weeks as well, according to the release. Rates were up 1.6% year-over-year — the smallest positive comparison in the last four weeks — but were still down almost 11% versus the five-year average. Dry van loads eased 1.1%with the volume standing at more than 8% below the same 2023 week and 30% below the five-year average for the week. Refrigerated spot rates decreased nearly 3 cents after falling 4.6 cents during the previous week. Rates had risen week over week during each week 30 between 2020 and 2023. Refrigerated rates were about 2% above the same 2023 week but more than 8% below the five-year average. Refrigerated loads decreased 3.1%. Volume was about 7% below the same 2023 week and nearly 30% below the five-year average for the week. Flatbed spot rates declined nearly 2 cents, decreasing more than 1 cent during each of the two most recent weeks. Rates, which usually decline during week 30, were down 0.2% from the same 2023 week and nearly 7% below the five-year average. During week 29, the flatbed saw its first positive year-over-year spot rate comparison in nearly two years. Flatbed loads rose 5.3%. Volume was nearly 38% above the same week last year — the strongest year-over-year comparison since the end of 2021 — but about 23% below the five-year average for the week.

Despite positive signs, freight rates remained stagnant in June

Cliff Abbott - July 30, 2024

Overcapacity continues to suppress the freight market, holding down rates — but are we nearing the long-awaited uptick in the cycle? Most of the analysts think so, but there’s little agreement on how soon it will happen. Despite the evidence that there are still too many trucks available to haul the freight being offered, new trucks are selling. “Class 8 tractor backlogs are thinning, but retail sales remain above replacement, more than two years after the spot market turned down,” said Tim Denoyer, vice president and senior analyst at ACT Research. Dean Croke, principal analyst for DAT IQ, had a slightly different view. “I’m seeing an exodus of capacity from the market,” Croke said. “New trucks are still selling, but much of the sales activity is from private fleets, including dedicated fleets at some carriers. Private fleets are a hedge against higher freight rates. Manufacturers that depended on the spot freight market to move their products were severely impacted by the record spot rates reached in the waning days of the COVID-19 pandemic. Increased shipping costs ate into corporate profits. In response, manufacturers increased the size of their private fleets so they could deliver more of their own product. In some cases, the costs associated with operating a private fleet exceed those of a for-hire carrier, especially when freight rates are so low. However, those costs are more acceptable when compared with market shipping expenses when rates are high. Larger private fleets harm the spot market in two ways. First, the freight that manufacturers used to send to the spot market is now being hauled on their own trucks. Second, some of those fleets look to increase the efficiency of their trucking operations by picking up backhauls from the spot market. Another reason new truck sales remain strong is the current equipment pre-buy. As the 2027 model-year approaches, more carriers are buying trucks now to avoid buying the 2027 models. The cost of a new Class 8 tractor is expected to rise $25,000-$30,000 due to the newer technology and government-mandated longer warranty periods. Buyers might be willing to spend more if they’re guaranteed that repairs made necessary by the new technology will be covered under warranty, but there’s still the issue of down time while waiting for those repairs. New trucks are expected to use larger amounts of diesel exhaust fluid (DEF), which has been shown to leave deposits in the exhaust system. Cylinder deactivation may be used to increase fuel mileage. “I get nervous any time you talk about cylinder deactivation and DEF fluid,” Croke said. “I own a Caterpillar engine, and heat is a problem.” Whatever the reasons for buying, the more trucks that are sold, the longer freight rates will take to recover. The June Cass Freight Index for Shipments showed a decline of 1.8% from May levels, while expenditures for shipping dropped 3% for the same time period. Compared to June 2023, shipments were down 6% and expenditures down 9.4%. The Cass indexes are compiled using payment data from Cass customers. “Owner-operators ae as resilient as ever, but ongoing private fleet capacity additions are putting less freight into the for-hire market in a slowing economy,” explained ACT’s Tim Denoyer, who writes for the Cass index. Expectations in the Motive Monthly Economic Report were more positive. The software distributor compiles market information based on GPS and other data that tracks visits to warehouses of the top 50 U.S. retailers. Motive’s Big Box Retail Index jumped 10.8% over May and rose 16% over July 2023. “We’re seeing particularly strong momentum in brick-and-mortar retail as these stores anticipate a very strong summer peak season,” Hamish Woodrow, head of strategic analytics for Motive, wrote in the report. “For example, department stores, electronics, and apparel retailers with brick-and-mortar locations saw a 13.8% jump heading into July, representing a 33% YoY (year over year) climb.” The largest retail gains were in department stores, apparel and electronics and in home improvement, according to the Motive release. Woodrow summarizes the report by saying, “Rising trucking rates, trucking transportation job stability, and what we predict to be a very strong July across retail sales, especially brick and mortar, are all pointing to a rebounding freight market. We predict this momentum will continue through the summer.” As the 2024 holiday season approaches, analysts predict retailers will need to increase inventories in preparation. Doing so will be more expensive if freight rates rise before orders are placed. Other factors that could impact freight markets are delays in the Red Sea, potential labor troubles at East Coast and Gulf ports, and the predicted active hurricane season. Houthi rebels continue to harass shipping in the Red Sea, which is on the route to and from the Suez Canal. A disabled ship completely blocked the canal in 2021. Shippers concerned about potential loss due to rebel activity are re-routing ships, resulting in longer transit times. The International Longshoremen’s Association, which represents 45,000 dockworkers at seaports from Maine to Texas, has threatened to strike if a new deal isn’t reached by the expiration of the current contract on September 30. A strike would cause major disruptions to trucking in and out of the ports, as well as down-line destinations served by rail. The National Oceanic and Atmospheric Administration (NOAA) has predicted an above-normal hurricane season in the Atlantic due to La Nina and warmer ocean temperatures. One major hurricane has already made its impact felt, reaching Category 5 status before weakening due to wind shear and striking the Yucatan Peninsula as a Category 2 hurricane. The same storm made landfall near Matagorda, Texas and slowly weakened as it moved all the way to Ontario. The outer bands of the storm spawned tornadoes in Texas, Arkansas, Kentucky, Indiana, New York and Ontario. Carriers that depend on the spot market for their revenue should pay close attention to rate fluctuations in different regions, as there may be opportunities to book higher rates when markets are impacted by outside forces. Overall, however, it will be more of the same as the trucking industry continues to wait for better days.

IdriveAI launches NEXUS fleet managment platform

Erica N. Guy - July 30, 2024

SANTA BARBARA, Calif. — Technology advancements in trucking are becoming more the norm than the exception. The latest is the IdriveAI announcement of the launch of its cutting-edge fleet risk management platform, NEXUS. According to a media release, the NEXUS video-based IoT platform is designed “to revolutionize fleet safety operations. It leverages advanced AI-driven insights from both edge and cloud computer vision models and real-time data analytics to provide fleet managers worldwide with an unparalleled understanding of risk.” “We are excited to introduce NEXUS to the market,” said Calin Mihalascu, chief revenue officer at IdriveAI. “Our new platform is designed to empower fleet managers with the tools they need to make informed decisions, streamline operations, and enhance overall fleet performance. NEXUS represents a significant leap forward in fleet safety management technology, combining real-time data and AI to deliver actionable insights that drive results.” NEXUS offers a comprehensive suite of features, including real-time video analytics, vehicle tracking, driver behavior monitoring, predictive risk alerts, and customizable reporting. “This state-of-the-art platform is set to redefine fleet management by enhancing operational efficiency, reducing costs, and improving safety standards across the board,” the release states. Key features of NEXUS include: AI-Driven Insights: Harness artificial intelligence to gain deeper insights into fleet operations and optimize performance. Real-Time Tracking: Monitor vehicle locations and movements in real time for enhanced visibility and control. Driver Behavior Monitoring: Analyze driver habits and provide feedback to promote safer driving practices. Customizable Reporting: Generate tailored reports to meet specific business needs containing action items for a more efficient operation. “Constructed using the most advanced technology from Amazon Cloud, NEXUS boasts theoretical infinite scalability and the ability to process data at unparalleled speeds,” according to the release. “A standout feature is its intelligent custom reports, crafted to save fleet managers time and allow them to concentrate on their primary duties. From the beginning of IdriveAI, we have diligently refined our offerings and heeded the feedback from our clients and partners. NEXUS stands out as a revolutionary tool for real-time fleet risk management.” Starting in August, all existing customers will receive a complimentary upgrade from IRIS to NEXUS.

Georgia Ports Authority sees decline in Savannah, growth in Brunswick

Bruce Guthrie - July 30, 2024

SAVANNAH, Ga. — According to a report issued Tuesday from the Georgia Ports Authority, experienced a slight decline in traffic in Savannah’s port location. President and CEO Griff Lynch reported to its Board of Directors that the GPA handled 5.25 million twenty-foot equivalent container units in fiscal year 2024, which ended June 30, 2024. The performance constitutes a decrease of 2.3 percent or 123,000 TEUs compared to the previous year. “While we experienced lower container volumes, we have been through cycles before and are optimistic about the future,” Lynch said. Lynch added that compared to the pre-pandemic year of FY2019, GPA’s fiscal performance equates to a 3 percent compound annual growth rate. Despite the slight decline in volumes, Lynch says in a Tuesday media release that the Georgia Ports continues to have one of the nation’s best connectivity rankings in the nation with 35+ vessels calling every week in Savannah. The Authority recently completed construction of its new Garden City Terminal West facility and continues to add new Ship-to Shore cranes and Rubber Tire Gantry cranes built by the Finnish company, Konecranes. Georgia Ports is the only operator in the U.S. using 100 percent Konecranes in its fleet. Georgia Ports’ long-term vision to support future growth is closely coordinated with the Georgia Department of Transportation’s (GDOT) integrated roadway efforts. Governor Brian Kemp announced a $1.5 billion Transportation Infrastructure Investment including a $500 million freight program for 18 freight carrying infrastructure projects that improve efficiency, safety and reliability for the transportation of goods across Georgia. “At Georgia Ports, our philosophy is to continue investing for the future, even during slower periods, so that we are ready for the next up cycle,” said GPA Board Chairman Kent Fountain. “That’s how we have built one of the most reliable operations in global logistics.” Also at the board meeting, Chairman Fountain reported that Georgia Gov. Brian Kemp had reappointed Vice Chairman Alec L. Poitevint, II, Secretary-Treasurer Christopher C. Womack and members David J. Cyr and Don A. Grantham, Sr. to the Georgia Ports Authority Board. Meanwhile, the Ports of Brunswick experienced unprecedented growth reporting a record year in Roll-on/Roll-off cargo, handling 876,000 units of autos and high/heavy machinery in FY2024, an increase of 21 percent or 152,435 units compared to FY2023. Reported growth factors included demand from American consumers, growing import-export trade with both Europe and Asia, new car manufacturers choosing Brunswick, and diverted cargo from Baltimore during April and May. Last fiscal year, GPA brought online 120 acres of Ro/Ro storage at Colonel’s Island. Another 300 acres are available for expansion, giving Colonel’s Island more room to grow than any other U.S. auto port. GPA has also added 640,000 square feet of warehousing and processing space. Annual capacity at Colonel’s Island has now increased 40 percent to 1.4 million units.