Business Archives

Stertil-Koni adds DeLyn Wirkus as national account manager

Erica N. Guy - July 24, 2024

STEVENSVILLE, Md. — Stertil-Koni, a provider of heavy-duty vehicle lifts, announced July 24 that DeLyn Wirkus is joining the company as national account manager. In this position, Wirkus will focus on serving national accounts in the transit, agriculture and airline market segments. “DeLyn is a focused, successful pro in our industry, and we look forward to his contributions in expanding Stertil-Koni relationships in key national accounts across North America,” said Steven Plomin, Stertil-Koni’s director of national accounts. With over three decades of diverse experience in the vehicle service industry, from senior planning and management to hands-on engagement with shop owners, Wirkus has established his skills and leadership in the field. Wirkus lives in Idaho, where he is an active volunteer with local, regional and national Skills USA teams, which mentor high school and college students who are pursuing careers in vehicle service.

New Class 8 truck sales dropped sharply in June, but not enough to relieve overcapacity

Cliff Abbott - July 24, 2024

June U.S. sales of new Class 8 trucks fell 24.7% from the level seen in June 2023, according to data received from Wards Intelligence. Total reported sales of 18,134 trucks brought the year-to-date total to 113,567 trucks, 16.4% behind last year’s pace. The long-predicted sales decline is beginning to pick up steam and orders for new trucks are finally slowing as the wait for new equipment continues to decline. FTR Transportation Intelligence reported preliminary North American Class 8 net orders at 13,100 for June, the lowest month of the year so far. Previous months, however, have been higher than corresponding months last year, so the June decline won’t mean much unless following months are also low. Truck orders typically fall off in June anyway as some carriers choose to wait until orders for next year’s model are accepted by manufacturers, typically in August. At the same time that orders are falling, inventory levels that include trucks at dealerships, in transit and those at truck body manufacturers such as trash, dump, tank and so on, have risen to record levels. “On ACT’s calculated basis, the Class 8 inventory rose to an all-time high close to 92,500 units in June, versus the 85,400 units reported,” said Kenny Vieth, president and senior analyst at ACT Research. “Our calculated inventory surpasses August 2019 on the ‘we’ve got an inventory problem’ list.” High inventories may help hold down pricing for buyers, as dealers might be more willing to offer deals; however, the tightened credit market won’t help. Credit is harder to come by as creditors, still smarting from defaulted loans that occurred when record high freight rates crashed, have generally increased down payment amounts while toughening credit requirements. Buyers that are able to find financing are paying higher interest rates, too. So, what’s the good news? The good news is that slower sales of new trucks will help ease the industry’s overcapacity issue. As the number of trucks available to haul freight shrinks, competition among shippers looking for transportation for their products increases, driving freight rates higher. While better rates would certainly be attractive to truckers, it will take more months of reduced truck sales to see it happen. But there’s a catch. Some buying activity is attributed to “pre-buying” — stocking up on equipment to avoid the cost increases and potential maintenance issues expected for the 2027 model year when new EPA standards for mileage and emissions go into effect. While buying earlier model trucks may help carriers avoid cost issues, those new trucks also delay the return to a balanced freight market by adding to the current overcapacity issue. Freight rates won’t go up until truck numbers come down. Both ACT and FTR commented that sales of vocational trucks (those equipped with dump, trash, concrete and other body types) actually increased in June. Since those trucks won’t be running on the highways hauling OTR freight, that’s good for the capacity issue. On the used truck market, ACT Research reported a 2% decline in same-dealer sales from May and a 4% decline from June 2023. At the same time, the price of the average Class 8 used truck has declined by 20% in the past year; that same average truck Is also 3% younger and has 3% fewer miles. That’s good news for used truck buyers, if they can qualify for financing. “A lack of traction in freight and freight rate improvement, coupled with still-high interest rates, remains the largest hurdles to better used truck sales performance,” said Steve Tam, ACT’s vice president and senior analyst, pointing out that used truck sales are typically “lackluster” in July but tend to increase in August. What are the top sellers? Individual truck manufacturers — with one exception — are selling fewer trucks this year. That exception is Western Star. With reported sales of 5,176 trucks for the year, the company is 40.9% ahead of its pace last year. Freightliner, sibling builder to Western Star, isn’t doing as well on a percentage basis. The company has reported U.S. sales of 40,933 Class 8 trucks in 2024, down 22.7% from nearly 53,000 at the halfway point of last year. While Freightliner still holds a commanding lead with its 36% share of the new Class 8 market in the U.S., they’ve lost 2.9% of their market share so far this year. Navistar (International) has lost even more market share. At the mid-point of 2023, the company held 14.1% of the U.S. market for Class 8 trucks, falling to 14.0% at year end. As of June 2024, their share of the market has dropped to 9.9% as total Class 8 sales declined from 19,145 to 11,228 from mid-2023 to mid-2024. International sales have declined by 41.4% from last year’s level, the highest decline of any manufacturer. Kenworth and Peterbilt combined (PACCAR) are responsible for 32% of the new Class 8 market in the U.S. this year. Together they reported sales of 36,335 units, compared to Freightliner’s 40,933. Kenworth’s 17,706units are running 5.4% behind sales of last year (that’s still considerably better than the 16.4% decline of the industry as a whole). Peterbilt, on a percentage basis, is doing even better. Sales of 18,629 Petes are down just 0.9% from last year’s pace as the OEM has gained 2.6% of the market share. Both Volvo and Mack have experienced sales declines but both companies still managed to beat the industry average. Volvo sales of 11,943 are down 11.6% from the mid-point of 2023, but the company has increased its share of the U.S. Class 8 market by 0.6%. Mack sales of 7,859 are 11.8% behind last year’s mid-point but are still good for a 0.4% increase in share. Tiny OEM Hino, known mostly for Class 5-7 cabover straight trucks used for local deliveries, has increased sales of its Class 8 tractor to 93 units after reporting sales of just 7 last year. Since the Hino models are not sleeper equipped, they are mostly used for local and regional applications.

ATA for-hire truck tonnage index dropped 1.6% in June

Erica N. Guy - July 24, 2024

WASHINGTON — The American Trucking Associations’ (ATA) advanced seasonally adjusted For-Hire Truck Tonnage Index decreased by 1.6% in June after increasing by 3% in May. In June, the index equaled 113.5 (2015=100) compared with 115.3 in May. “While giving back some of the gain from May, it appears that truck freight tonnage is slowly going in the right direction since hitting a recent low in January,” said Bob Costello, chief economist for ATA. “Despite June’s decline, the second quarter average was 0.2% above the first quarter and only 0.2% below the second quarter in 2023, which are good signs that truck freight might be finally turning the corner.” May’s increase was revised down from the association’s June 18 press release. Compared with June 2023, the index decreased 0.4%. In May, the index was up 1% from a year earlier, which was the first year-over-year gain since February 2023. The not-seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 113.1 in June, 5.5% below May. ATA’s For-Hire Truck Tonnage Index is dominated by contract freight rather than traditional spot market freight. In calculating the index, 100 represents 2015. ATA calculates the tonnage index based on surveys from its membership. This is a preliminary figure and is subject to change in the final report, which is issued around the fifth of each month. The report includes month-to-month and year-over-year results, relevant economic comparisons and key financial indicators.

Fuel retailers applaud House legislation to extend the biodiesel tax credit

Bruce Guthrie - July 23, 2024

ALEXANDRIA, Va. —The entension of a biodiesel tax credit approved recently by lawmakers drew praise from a group of fuel retailers including NATSO, who represent America’s travel centers and truck stops, fuel marketer SIGMA and the National Association of Convenience Stores (NACS). The group commended the bipartisan effort for officially introducing the “Biodiesel Tax Credit Extension Act of 2024,” which would extend the biodiesel blender’s tax credit. The legislation is sponsored by Representatives Mike Carey (R-Ohio), Claudia Tenney (R-NY), Ann Kuster (D-NH), and Rep.Mariannette Miller-Meeks (R-Iowa). H.R. 9060 would extend the biodiesel tax credit for one year at the blender level. According to a release issued recently by NATSO, extending the biodiesel blender’s tax credit would “immediately incentivize fuel retailers nationwide to buy and blend more gallons of biodiesel, which is far better for the environment than petroleum-diesel.” The release added that since 2004, the biodiesel tax credit has effectively spurred fuel retailers to invest in the necessary infrastructure to sell low-carbon alternative fuels while encouraging consumers to buy renewable fuel blends due to their lower cost. The biodiesel tax credit helps create jobs, reduce the transportation sector’s greenhouse gas emissions, and enables fuel retailers to offer more competitively priced diesel fuel. “Renewable diesel and biodiesel represent a vital component of any sound strategy for lowering transportation sector emissions. Trucks are harder and more expensive to electrify than cars, and while we pursue aspirational goals, we still must capitalize on economically viable solutions that help us lower emissions today,” said David Fialkov, Executive Vice President of Government Affairs for NATSO and SIGMA. “We commend Representatives Carey, Kuster, Tenney and Miller-Meeks for recognizing the critical role that renewable diesel and biodiesel play in lower fuel costs for consumers by supporting an extension of the Biodiesel Blender Tax Credit. We urge Congress to extend this successful policy as soon as possible.” “This legislation is key to supporting our industry’s continued investment in advanced renewable fuels,” said Paige Anderson, Director of Government Relations at NACS. “We applaud Congressman Carey for demonstrating leadership on this issue and encourage all Members of Congress to support this bill, which will extend fuel supply and incentivize fuel retailers to invest in low-carbon alternative fuels at a cost that is attractive to consumers.” A diverse group of stakeholders support this policy because it lowers the price consumers pay to fuel their vehicles and heat their homes. Biodiesel historically has been the most widely consumed biofuel for use in commercial trucking and represents the best opportunity to reduce carbon emissions from the nation’s commercial trucking fleet for the foreseeable future. The biodiesel tax credit lowers the price that truck drivers pay for diesel fuel, which in turn lowers the cost of shipping and therefore the price consumers pay for products that are moved by truck. Extending the biodiesel tax credit will safeguard the ability of motor carriers to reduce carbon emissions in the nation’s existing commercial fleets while lowering fuel prices and the cost of goods for consumers. The biodiesel blender’s tax credit has worked successfully to build a robust renewable diesel industry inÂ the United StatesÂ while decreasing carbon emissions associated with transportation fuel. The U.S. biodiesel and renewable diesel market has grown to approximately 4 billion gallons in 2023 from roughly 100 million gallons in 2005. Biodiesel and renewable diesel eliminated 15 million metric tons of CO2 in California alone in 2020, the equivalent of taking more than 3 million passenger cars off the roads. Compared with petroleum-based diesel, renewable diesel and biodiesel reduce greenhouse gas emissions by up to 80 percent.Â The California Air Resources Board recently underscored their important role in reducing carbon emissions, announcing that renewable diesel and biodiesel constitute more than half of the diesel supply in California.

Want to own your own trucking business? Here’s what you should know

Cliff Abbott - July 23, 2024

Buying and operating their own truck is an option many commercial drivers take advantage of. Before taking the plunge and shelling out money on a tractor, however, there are several things to consider. There are multiple ways to obtain a truck and there are several options for how you’ll run it once you own it. One of the first choices you’ll need to make is whether your business will be completely on its own or you’ll enter an agreement as an independent contractor (IC). In a strange twist of words, you’ll be far more “independent” operating under your own authority than if you lease your truck as an IC. However, if you’re buying your first truck, It might be best to start with the structure of a large carrier. Carriers provide numerous services. There’s a management hierarchy of course, starting with the CEO or president and working down to individual fleet managers or dispatchers. If you decide to operate completely independently, you’ll be responsible for fulfilling the roles of all of these positions … and that’s only the beginning. A large carrier will have a sales department that keeps relationships going smoothly with existing customers while seeking out new ones. A customer service team works with customers to secure more loads and make sure everything is running smoothly. There’s a billing or collections team that sends out bills and collects payments, including someone to contact customers that don’t pay on time. Aso, an accounts payable department keeps the bills paid. A carrier’s safety department does a lot more than conduct meetings and discipline drivers who’ve made mistakes. They’ll make sure the carrier is in compliance with regulations and utilize technology and driver training to help keep accidents down and help the company secure the most favorable insurance rates. The team that registers trucks and obtains needed permits is usually attached to the safety department, but not always. Compliance with drug and alcohol testing requirements usually falls under safety as well. Don’t forget the maintenance division. They’ll work on trucks, deciding when to farm out work to vendors if projects are more than their technicians can handle. They’ll also keep a network of vendors for on-road repairs when necessary. Often, maintenance keeps track of fuel cards and develops a network of fueling locations. There’s also a driver recruiting department. Of course, if you’re driving your own truck you won’t need a recruiting department — but recruiting isn’t all they do. This team is generally responsible for checking the background of new driver applicants, making sure the files are complete for each one. And don’t forget human resources and benefits teams that make sure benefits are administered properly. Human resources is often involved in selecting the insurers that provide health, dental, vision and other coverages for employees. Once you purchase your own truck, you’ll be responsible for the tasks performed by all these departments. It takes a lot of work — and more importantly, it takes knowledge and experience to become good at all of them. After all, if you’re busy chasing down payment for a reluctant customer, setting up an account with a new one and verifying that you’re in compliance with drug and alcohol regulations, it can be difficult to work time into your schedule to actually pick up and deliver freight. That’s why some truck owners choose to enter into a lease agreement for their equipment. The lease agreement basically says that the carrier can use your truck to haul their freight, but you must provide a driver and take care of the costs of operating a trucking business, such as fuel and repairs. In return, the carrier supplies loads for which you are paid an agreed amount per mile or a percentage of load revenue. You’ll be gaining the benefit of the work of all those other departments — but keep in mind that the carrier shares the revenue earned with you. Being an IC does have its downside. One large drawback you’ll face as an IC is that you won’t be paid employee benefits like health insurance, retirement accounts and vacation or holiday pay. Since you’re working for your own company, you’ll be responsible for providing those benefits for yourself. Some ICs benefit from a spouse that earns those benefits at a job. Another drawback is that you’ll need to pay self-employment tax. Company employees benefit because the employer pays half of their Social Security and Medicare taxes. As an IC, however, you’ll pay both the employee and employer shares of this tax. Being an IC offers benefits, too. As an IC, you should have freedoms that employee drivers don’t have. You can choose the hours you work, the routes you take, fueling locations and more. You can even choose which loads to take and which to refuse, or what areas of the continent in which you want to run. A word of caution: Your relationship with the carrier is important. If you only take the best loads, or if you aren’t available when needed, your carrier may think you’re difficult to work with. When that happens, the loads you’re offered could change or be harder to come by at all. Think about the kind of service you want from businesses you might deal with, such as a plumber or maintenance shop. If your plumber isn’t available when needed, or doesn’t perform the work on schedule or presents a bill much higher than the original estimate, you might be tempted to use a different one next time. Think of the carrier to which you’re leased as your customer, and provide the level of service to them that you expect from others. Are you ready to take on the responsibilities? If you make the decision to obtain your own operating authority and manage your own business, you ARE a carrier. Many carriers have logistics departments; these are actually freight brokerages, so you can still run the carrier’s freight without a lease agreement. You can select one trusted broker to deal with or deal with a different one every day if you like. Even better, you can develop your own relationships with shippers and avoid brokered freight altogether. Running your own trucking company means different things to different owners. The more independence you seek, however, the more responsibility you’ll take on. Some owners have a spouse that takes care of the administrative work while they focus on the driving, while some do it all themselves. It’s not unusual for an owner to start a lease to a carrier and then obtain authority as they learn more about their business, and themselves.

Estes releases its annual sustainability report

Erica N. Guy - July 23, 2024

RICHMOND, Va. — Estes has released its inaugural Annual Sustainability Report, a summary of the company’s corporate responsibility efforts during 2023. “Sustainability is our roadmap to success and the lens through which we evaluate the entirety of our operations,” said Webb Estes, the company’s president and COO. “We are committed to managing our operations responsibly now and for the future, which means taking good care of our people, customers, communities, the planet, and our business. At our core, Estes operates for good.” Since the launch of its sustainability program in January 2023, the company has focused on developing a solid foundation for this vital initiative throughout Estes. By connecting and collaborating with all areas of the business, as well as building deeper relationships with climate experts, ESG consultants, industry leaders, its customers, and employees, Estes ensures these efforts are based on knowledge-sharing and commonalities around the issues that affect everyone. According to a July 17 press release, Estes’ sustainability efforts are rooted in the company’s “Estes for Good” philosophy and thes four pillars: Uplift people – Estes believes that helping others leads to fuller and happier lives. Serve our customers – Estes’ commitment to serving its customers goes hand in hand with its dedication to working for the greater good. Focus on our planet – Estes believes that finding creative solutions, measuring its impact on the environment, and supporting others on the company’s mutual sustainability journeys will lead to better outcomes for everyone. Live our principles – As a debt-free, privately held company, Estes’ focus on taking care of its customers and employees hasn’t wavered, operating its business responsibly and with integrity. “This report is a testament to our unwavering commitment to environmental stewardship, social responsibility, and economic resilience,” said Sara Graf, Estes vice president of sustainability, culture and communications. “It’s remarkable to look at all our team accomplished and the impact those efforts have had on our company, customers and communities. We thank everyone for joining us on our journey toward a more sustainable future, where we balance prosperity with the health of our planet and social equity.” To review Estes’ 2023 Sustainability Report, click here.

UPS agrees to buy Mexican shipping company

Bruce Guthrie - July 23, 2024

ATLANTA — According to multiple reports from a variety of news outlets, UPS announced that it has entered into an agreement to acquire Estafeta, a leading Mexican express delivery company. This acquisition is a key part of UPS’s ‘Better and Bolder’ strategy, aimed at becoming the world’s premium international small package and logistics provider. “Moving our world forward by delivering what matters” “Global supply chans are shifting, Mexico’s role in global trade is growing, and Mexican SMB and manufacturing sectors are looking for reliable access to the US market. There is no better way to capitalize on these trends than by combining the size and scale of UPS with Estafeta,” said Carol Tomé, UPS chief executive officer. “As the shift to nearshoring continues, our combined business will give customers in Mexico unprecedented access to global markets with seamless service and greater efficiency.” According to reports, the acquisition is an evolution of a commercial agreement established between the two companies in 2020. When the two companies are combined, customers can rely on UPS’s integrated solutions that link small package, healthcare logistics and end-to-end supply chain solutions, creating a differentiated ‘One UPS’ advantage. “We’re excited to combine Estafeta’s proud, 45-year logistics legacy, and our expertise with that of UPS, a company that shares our values of service excellence, investing in people and community engagement,” said President and CEO of Estafeta Jens P. Grimm. “Today’s announcement is a testament to the hard work and dedication of our people and the trust of all our customers, vendors and suppliers across Mexico. This is the right time to accelerate our growth, and UPS will help connect our customers to new, global opportunities, and strengthen the connection of Mexico’s growing economy to the rest of the world.” The transaction is targeted to close by the end of this year, subject to customary closing conditions and regulatory approvals. The value and terms of the transaction are not being disclosed at this time.

ACT Research reports declining trailer orders

Bruce Guthrie - July 23, 2024

COLUMBUS, Ind. – Orders for trailers dropped sharply in the month of June. According to ACT Research, June net trailer orders, at 6,300 units, were 19% lower than this time last year, however, orders were 275 units above May’s intake. June’s order tally brings net orders in the fiscal year’s second quarter to 26,000 units which is a 14% drop from the second quarter of 2023. and closes the first half of 2024 with 74.5k net orders placed, according to ACT Research. ACT Research’s State of the Industry: U.S. Trailers report provides a monthly review of the current US trailer market statistics, as well as trailer OEM build plans and market indicators divided by all major trailer types, including backlogs, build, inventory, new orders, cancellations, net orders, and factory shipments. It is accompanied by a database that gives historical information from 1996 to the present, as well as a ready-to-use graph packet, to allow organizations in the trailer production supply chain, and those following the investment value of trailers, trailer OEMs, and suppliers to better understand the market. The first-half tally was 24% lower than the intake of the first half of 2023. A faster paced order environment, lingering pent-up demand, and a still moderately congested supply chain, were mitigating factors according to this month’s issue of ACT Research’s State of the Industry: U.S. Trailers report. “Seasonally adjusted, June’s orders were more than 8,100 units compared to a 7,100 SA rate in May,” said Jennifer McNealy, Director–CV Market Research & Publications at ACT Research. “On that basis, orders increased 14% m/m. Dry van orders contracted 56% y/y, while reefers and flats were significantly higher than their respective tepid net order tallies last June. Build outpaced orders again in June, by 15.3k units, with backlogs shrinking more than 14% sequentially. While down considerably m/m, the backlog was significantly lower y/y, down 48% against 2023’s firmer backdrop.” McNealy concluded, “Despite continual monitoring, little changed in Q2, and despite hopes of the contrary, it was not expected to do so. US trailer manufacturers and suppliers continue to navigate choppy waters, but unlike the past few years, they are on the ebb tide of weaker demand, rather than the flow of congested material supply chains and labor shortages.”

FMCSA removes four ELDs from legal registered list

Erica N. Guy - July 23, 2024

WASHINGTON — On Tuesday, July 23, the Federal Motor Carrier Safety Administration (FMCSA) announced its decision to remove four electronic logging devices (ELDs) from the registered list of ELDs. The four devices include: CTE-LOG ELD ELD VOLT POWERTRUCKS ELD TFM ELD The reason for the removal of the four ELDs was the failure of the ELD providers to meet the minimum requirements in 49 CFR part 395, subpart B, appendix A. The four ELDs now appear on FMCSA’s Revoked Devices list. Motor carriers and drivers who use the ELDs listed above must take the following actions: Discontinue using the revoked ELDs and revert to paper logs or logging software to record required hours of service data. Replace the revoked ELDs with compliant ELDs from the Registered Devices list before Sept. 21, 2024. It was stated that motor carriers will have up to 60 days to replace the now-revoked ELDs. Failure to do this will land the motor carrier in violation of 49 CFR 395.8 (a)(1) — receive a “No record of duty status,” and the drivers will be placed out-of-service in accordance with the Commercial Vehicle Safety Alliance (CVSA) OOS Criteria. The reinstatement of the ELDs is possible if the providers correct the identified deficiencies for their devices, which will place them back on the registered list of ELDs. FMCSA encourages motor carriers to take the actions listed above as soon as possible to avoid potential compliance issues.

UPS boosts volume in US for first time since 2022, but profit and revenue slide

The Associated Press - July 23, 2024

AP — UPS boosted its volume in the U.S. for the first time since 2022 during its second quarter, but profit and revenue fell short of Wall Street expectations, partly due to a hefty charge. Shares dropped more than 7% before the market opened on Tuesday. CEO Carol Tome said the package delivery company returned to volume growth in the U.S. during the quarter for the first time in nine quarters. “This quarter was a significant turning point for our company,” Tome said in a prepared statement. Total U.S. domestic package volume edged up in the quarter thanks to an improvement in ground deliveries. For the three months ended June 30, United Parcel Service Inc. earned $1.41 billion, or $1.65 per share. Stripping out one time costs, earnings were $1.79 per share. This was well below the $1.98 per share that analysts polled by Zacks Investment Research were calling for. UPS said that the quarter included a charge of $120 million, or 14 cents per share, made up of of a one-time payment of $94 million to settle an international regulatory matter. The period also included transformation and other charges totaling $26 million. Total operating expenses increased about 3% in the quarter, which included a 2.7% rise in expenses tied to compensation and benefits. In September the Teamsters voted to approve a tentative contract agreement with UPS, putting a final seal on contentious labor negotiations that threatened to disrupt package deliveries for millions of businesses and households nationwide. The contract included pay raises for full- and part-time union workers. Quarterly revenue was $21.82 billion, short of Wall Street’s estimate of $22.31 billion. The Atlanta company now anticipates full-year revenue of about $93 billion. Its previous outlook was for revenue in a range of approximately $92 billion to $94.5 billion. Analysts surveyed by FactSet expect revenue of $92.77 billion.

Diesel prices fall sharply for the second straight week

Bruce Guthrie - July 23, 2024

According to the numbers released by the Petroleum Administration for Defense District, diesel fuel prices are continuing to move downward. Overall prices have dropped for the second straight week from an average of $3.826 per gallon to $3.779. The largest decrease in prices came from the Gulf Coast. Prices fell nearly 10 cents. from $3.551 to $3.461. The East Coast and Lower Atlantic regions dropped sharply. The Lower Atlantic region fell five cents per gallon from $3.829 per gallon to $3.778 California’s diesel prices had the sharpest decline from $4.932 per gallon to $4.874. The two west coast regions’ prices also fell by nearly six cents per gallon.

DAT One load posts dip; truck posts unchanged

Dana Guthrie - July 22, 2024

BEAVERTON, Ore. — According to the latest numbers from DAT One and DAT IQ, load posts on DAT One dipped by 12% and truck posts were virtually unchanged for the week of July 14-20. “The average linehaul rate on DAT’s Top 50 van lanes, based on the volume of loads moved, was $2.06 a mile, down 2 cents week over week and 41 cents higher than the national average,” said Dean Croke, DAT Principal Analyst. According to Croke, the national average reefer linehaul rate decreases consistently as produce volumes trail off over the summer. Last week, reefer linehaul rates were flat at $2.00 a mile for the second week, a penny higher than last year and 3 cents higher than the three-month trailing average. “Even though flatbed load post volumes dropped by 8% last week, they remain 17% higher than last year,” Croke said. “Directionally, flatbed linehaul rates are following solid seasonal trends. Last year, flatbed spot rates decreased by 19 cents from this point to mid-November.” The number of loads posted on DAT One decreased by almost 12% to 1.87 million last week, a sign of summer seasonality. The total number of loads was 2% higher year over year. Total truck posts increased 0.7% to 330,208. Dry Vans ▼ Van loads: 870,955, down 14.2% week over week ▲ Van equipment: 217,675, up 1.1% ▼ Load-to-truck ratio: 4.0, down from 4.7 ▼ Linehaul rate: $1.65 net fuel, down 2 cents week over week Reefers ▼ Reefer loads: 414,710, down 12.8% week over week ▼ Reefer equipment: 65,491, down 3.0% ▼ Load-to-truck ratio: 6.3, down from 7.0 — Linehaul rate: $2.00 net fuel, unchanged Flatbeds ▼ Flatbed loads: 586,513, down 8.3% week over week ▲ Flatbed equipment: 47,042, up 4.3% ▼ Load-to-truck ratio: 12.5, down from 14.2 ▼ Linehaul rate: $2.02 net fuel, down 2 cents One load posts dip; truck posts unchanged

Mack Dealer Vision Truck Group opens new $20 million Canadian location

Erica N. Guy - July 22, 2024

GREENSBORO, N.C. — Mack Trucks dealer Vision Truck Group recently invested $20 million to open a new facility in Brantford, Ontario, Canada, according to a press release issued July 22 by Mack Trucks. “Congratulations to Vision Truck Group for opening another location to better service and support Mack customers,” said Jonathan Randall, president of Mack Trucks North America. “Vision’s investment in the construction of this state-of-the-art facility as well as the Mack brand is evidence that like Mack, Vision is committed to its customers.” Vision broke ground on the 52,000 square-foot facility March 1, 2023, and the dealership opened its doors April 15, 2024. “The City of Brantford has been growing significantly during the past several years and is a strategic location based on transportation traffic in Ontario,” said John Slotegraaf Jr., president of Vision Truck Group. “The area has been underserved by OEMs before we opened this new Mack facility for our customers.” The Brantford site features 22 service bays and is a Mack Certified Uptime Dealer, meaning it received the accreditation because it has met stringent requirements to improve uptime for customers. Mack Certified Uptime Dealers feature “uptime bays” reserved specifically for trucks with service and repair needs requiring less than four hours of work. Customer vehicles needing a quick repair are rapidly diagnosed and returned to operation, improving dealership efficiency and customer ROI. Vision’s Brantford location is a natural gas-certified facility, and the team is currently working toward becoming a Mack Certified Electric Vehicle Dealer. Vision will employ about 70 people at Brantford, building toward 40 technicians, with 12 being master techs. The Brantford site offers $2 million in parts inventory. Vision Truck Group began in 1993, when Slotegraaf’s father, John Slotegraaf Sr., acquired a dealership in Cambridge, Ontario. Slotegraaf Jr. took over the business in 2008. In addition to Brantford and Cambridge, Vision has locations in Brampton, Etobicoke, Stoney Creek and London, Ontario. Vision also offers a body shop and parts distribution center at its Cambridge location. Each Vision location offers a complimentary vehicle pick-up and drop-off service.

Microsoft outages still impacting your drivers’ ELDs? Here’s what to do

Erica N. Guy - July 22, 2024

WASHINGTON — Many companies in the transportation industry are still experiencing the after-effects relating to last week’s Microsoft application outrage, including malfunctioning electronic logging devices (ELDs). The Federal Motor Carrier Safety Administration (FMCSA) reminds carriers to follow the proper steps as soon as an ELD malfunction is reported. The first step is to give your ELD provider a call — and be sure drivers are equipped to temporarily record activities using paper logs in accordance with regulations. According to FMCSA, if a motor carrier is experiencing malfunctioning on their ELD, the individual must: Correct, repair, replace or service the malfunctioning ELD within eight days of discovering the condition or a driver’s notification to the driver, whichever comes first; and, Ensure its driver status (RODS) if the malfunction hinders the accuracy of the recording of the driver’s hours of service data until the ELD is back in service. The website indicates that drivers are permitted to submit a request for an ELD malfunction extension to the FMCSA Division Administrator corresponding to the state of the driver’s main place of business. The request must be submitted within five days following the driver’s notification of the malfunction to the motor carrier, must bear the motor carrier’s signature, and must contain the information mandated by 49 CFR 395.34(d)(2). For more information about actions to take in the event of ELD malfunctions, click here.

TCA welcomes Olympic Transport as first Mexican carrier member

Dana Guthrie - July 22, 2024

ALEXANDRIA, Va. — The Truckload Carriers Association (TCA) has welcomed Olympic Transport, as its first carrier member from Mexico. “We are thrilled to welcome Olympic Transport to the TCA family,” said Jim Ward, President of TCA. “Their inclusion not only marks a significant milestone in our association’s history but also strengthens our position as a dynamic North American trade association.” According to a TCA press release, the significant expansion underscores TCA’s role as a truly North American trade association that actively serves members across Mexico, the USA and Canada. “Joining the TCA is a proud moment for all of us at Olympic Transport,” said Fernando Paez, Olympic Transport CEO. “This partnership signifies our commitment to enhancing the efficiency and safety of North America’s freight transportation network. We look forward to contributing to and benefiting from TCA’s extensive resources and advocacy efforts, further enabling our growth and operational excellence across borders.” Founded in 1990 by Paez, Olympic Transport has become a pivotal player in cross-border logistics. Headquartered in Monterrey, Mexico, with strategic terminals in Nuevo Laredo, Monclova, Queretaro, Laredo, and San Antonio, Texas, the company excels in providing seamless and regulatory-compliant services across North America, according to the TCA. The company’s journey began with Fernando’s first truck purchase in San Antonio, Texas, from a Freightliner dealership, which set the foundation for what has become a highly regarded operation known for its efficient, straightforward cross-border transport solutions. “With Olympic Transport, we enhance our advocacy and representation of carriers across all of North America, ensuring a more connected and efficient cross-border trucking landscape,” Ward said.

Dart Transit names David Oren as CEO; Mike DelBovo as president

Dana Guthrie - July 22, 2024

EAGAN, Minn. — Dart Transit, one of the longest-serving companies in trucking with 90 years of history, has announced the appointment of David Oren as the CEO of the company. Mike DelBovo will be joining David Oren on the Dart Transit Executive Leadership Team as the company’s president. Don Oren will remain as Chairman and Consultant. “I am extremely grateful to my son, David, and the team he is putting together that will continue to move Dart Transit into the future,” said Don Oren, the company’s Chairman of the Board. “David, Mike and their team are developing a strong plan for our company that will continue to carry the Dart Transit name and legacy forward, and they have my full support.” An industry veteran who began his trucking career in 1979, Oren launched and has successfully led Dart Express for six years. Operated as an independent business entity and separate from Dart Transit, Dart Express has made its mark within the trucking industry by specializing in providing shippers with fast relay service within defined traffic lanes. With nearly 40 years of transportation experience, including a significant amount of time within senior leadership positions, DelBovo will be serving as the President of Dart Transit effective August 5. According to a company press release, DelBovo is familiar with the long history of the company as well as the tradition of excellence and innovation by the Oren family over the years.  “I am both incredibly humbled and truly honored to have the opportunity to serve as the CEO of Dart Transit,” said David. “I will be working to do my best to continue the legacy that our family and everyone involved with Dart has built over the company’s long history. For me, this is more than leading a company into the future. It’s a passion and a labor of love that I am undertaking with the highest degree of focus to make informed and thoughtful decisions as we study today’s market and how we view the market moving forward.”

ACT Research says freight market facing overcapacity; spot rates slightly raised over 2023 lows

Dana Guthrie - July 22, 2024

COLUMBUS, Ind. – The freight market continues to be characterized by overcapacity, and with private fleets engaging in spot activity more than in past cycles, spot rates remain only slightly above the late-2023 lows, according to the latest release of the Freight Forecast: U.S. Rate and Volume OUTLOOK report. “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, ACT Research’s vice president and senior analyst. “This fits the definition of a prebuy to a tee.” According to Denoyer, mid-July rates have exceeded seasonal patterns by around four cents due to a temporary boost from Hurricane Beryl. The storm hit during a seasonally soft period for the truckload spot market. Storms during stronger seasonality may have a larger impact on rates.” “Freight market conditions are usually soft in early July, but DAT’s load/truck ratio rose meaningfully in the days following Beryl and have remained stronger than normal seasonality since,” Denoyer said. “Of course, the surge will likely be short-lived. But in our view, a seasonally adjusted DAT load/truck ratio at 7 signals a market closing in on balance, if still not quite there yet. We need to see this measure at an 8 or 9 to push rates up much.” The DAT load/truck ratio isn’t exactly a scale of 1 to 10. It can go further than 11. It reached the mid-teens in 2017 and early 2018 and the high teens during 2021, peaking above 20. The monthly 58-page ACT Freight Forecast report provides analysis and forecasts for a broad range of U.S. freight measures, including the Cass Freight Index, Cass Truckload Linehaul Index, and DAT spot and contract rates by trailer type. The service provides monthly, quarterly, and annual predictions for the TL, LTL, and intermodal markets over a two- to three-year time horizon, including capacity, volumes, and rates.

Transflo partners with Predictive Coach to provide groundbreaking driver safety technology

Dana Guthrie - July 19, 2024

TAMPA, Fla. — July 17 Transflo, has formed a formal strategic partnership with Predictive Coach in order for the companies to offer telematics-based coaching driven by real data to its trusted customers.   “As Predictive Coach continues to innovate and refine its proprietary technology, we have sought a partner to elevate our business to unprecedented heights,” said CEO of Predictive Coach, Jerome Toliver. “Transflo’s unwavering dedication to enhancing customer value has shown that they are the ideal collaborator to help us achieve our ambitious objectives.” According to a July 17 press release, Predictive Coach provides game-changing behavior-based driver training to coach drivers and automate safety programs with the use of a fleet’s existing telematics data. Unlike many comparable driver education programs, Predictive Coach automatically assigns driver training based on the tendencies captured by GPS and video telematics.  Predictive Coach provides concise, interactive micro-training lessons that are accessible on any device, significantly reducing the training workload for management. The company effectively addresses three major pain points often faced by fleets of all sizes: Tailored Coaching: Unlike traditional one-size-fits-all approaches, Predictive Coach customizes training based on individual driver behavior and existing data. Efficiency: Courses are designed for swift completion, easy assignment, and streamlined documentation, saving valuable time and resources. Measurable Impact: Predictive Coach ensures clear and demonstrable ROI and results from driver safety programs, giving fleets the insights they need to drive continuous improvement. “Transflo is thrilled that its customers will now have the ability to take advantage of Predictive Coach’s trailblazing driver coaching for significant fleet safety improvements and cost savings,” said CEO of Transflo, Renee Krug,

Institute a comprehensive safety plan to help ensure fleet safety — Part 4

Brad Klepper - July 19, 2024

In Part 4 of this series, I am finally getting to the team no one thinks of when it comes to building a comprehensive safety plan: the safety team (insert tongue in cheek here — and yes, this is why they pay me the big bucks!) I am also going to address the importance of a mentorship program that works in conjunction with the safety team. The First Year While not all carriers hire fresh Class-A CDL graduates, many carriers DO hire drivers with less than one year of experience. Many companies have adjusted down their experience requirement in the past decade — but how much have their safety programs changed in response to the needs of less-experienced drivers and heightened regulations? Studies show that, regardless of age, drivers with less than one year of driving experience pose the greatest safety risk in terms of violations and crashes. Providing these inexperienced drivers with mentorship from experienced drivers during the first year — on top of additional coaching or training from your safety team — is highly recommended. So, what does that look like? My favorite answer to give (and the one all lawyers are trained to provide) is, “It depends.” It depends on your company’s safety challenges, company culture and the resources you have available in manpower, technology and training development skills. Any of this can be outsourced, but maintaining your company values and unique policies in these programs will still take some manpower from your safety team in guiding the external team and reviewing their work. Mentorship Programs that Actually Work For a mentorship program to work, your mentors must be engaged and shining examples of your company’s culture. Just as with your road trainers, it’s vital to regularly connect with your mentors and give them a voice in program development and a voice in changes they would like to see in the company. You certainly want mentors who are passionate about developing others, but in order for this to be viewed as a professional part of their job, you should provide some type of compensation for their time and efforts — and specify goals to which you can hold them accountable in order to receive their compensation. Mentors having a minimum of one year of experience driving and a fantastic safety record is an obvious must, but they should also have a positive view of your safety team. Mentors further establish your company’s values and when/how the mentees should engage with office employees. The same can be said for the safety technology on the trucks. Mentees are likely to adopt a similar perspective to their mentors have regarding the tech your safety team has carefully chosen. Ideally, your mentors share the same convictions your safety team has. After all, they are acting as your safety team in the field! When pairing mentors to mentees, carefully consider each person’s background, personality and hobbies. Those with similar interests will be most likely to result in a productive and happy match. Depending on the nature of how your freight moves, you may want to develop a mentorship “hotline” that gives newer drivers an opportunity to reach another mentor if their assigned mentor is unavailable. Another option would be to have a 24/7 on-call safety member who can either answer the question or look up another mentor who may be available. Effective Safety Teams For your safety team to be most effective in your fleet, developing relationships and trust is key. Sometimes having the right title and/or experience can garner enough respect to get someone to truly listen to you and help change their life, but this is rare. Most often, the people we trust have our individual best interest at heart are the ones who change our lives. For example, even with my impressive J.D. degree and decades in trucking (placing tongue firmly in cheek here while pausing for dramatic effect), I still expect those of you who have met me are far more likely to consider my advice in these articles. For your drivers to believe you genuinely care about them, they need to feel they know you and that you understand and appreciate the challenges of their job. The first year, when less-experienced drivers are your highest risk, is the most impactful time for you to be calling, listening to what they’re facing and coaching them weekly (or monthly, depending on the size of your fleet). Important advice: Listen first, coach second. This is coming from someone who loves to talk, but I also love to learn — and learning comes from listening. This is likely to positively affect your retention as well. Another option is to assign regular training goals using a system that lets you monitor completion rates. Incompletion must have consequences! Why is this important? First, it shows you believe your program is important and makes a difference. If you don’t, why should the drivers believe in it? Second, if a driver gets into an accident and you must turn over records showing that the driver has not completed any assigned safety training for months, it paints a poor picture of both the driver’s and the company’s commitment to safety. For the most effective training, you’ll need to measure the causes of accidents and violations at your company. I encourage you to share in your training some metrics to show how serious these mistakes are for the company and for other drivers. How much are these accidents/violations costing the company? How much downtime does a driver experience following this type of accident? How are these safety issues impacting the company’s and drivers’ CSA scores? What does it mean for the company and drivers if you hit intervention levels in that category? If you can reduce it by X%, what do you estimate the savings will be? These topics are really great for your entire fleet. Also, if you love a good debate like me — and can take the time to reinforce you’re all on the same team — share the experience level of the drivers having these accidents. Most often, experienced drivers are certain it’s always the new “whippersnappers” having all the accidents. While we do see drivers in their first year have the most accidents, they are far from the only ones having accidents. In fact, share the most common accident in each band of experience. Everyone can be part of reducing accidents, and no one is immune from having one. If you can share metrics that apply to each driver and can convince them that each individual action matters, you are more likely to get their attention. It can also be a good tactic to recruit for mentors. Speaking of metrics … Part 5 in this series is focused entirely on building powerful assessments and metrics to bolster your safety program and direct ongoing changes for the better. This applies at every step in your program. You cannot build a safety program that works if you are not unbiased in measuring its impact and continuing to adjust as the demographics, technology and needs in your fleet evolve. Part 1 Part 2 Part 3 Disclaimer: The contents of this article are intended to convey general information only and not to provide legal advice or opinions. The contents of this article should not be construed as, and should not be relied upon for, legal or tax advice in any particular circumstance or fact situation. The information presented here may not reflect the most current legal developments. No action should be taken in reliance on the information contained in this article, and we disclaim all liability in respect to actions taken or not taken based on any or all of the contents of this site to the fullest extent permitted by law. An attorney should be contacted for advice on specific legal issues.

ACT Research: June Class Eight data reflects current market doldrums

Dana Guthrie - July 18, 2024

COLUMBUS, Ind. — After May’s anomalous order number, June’s activity offered a more reflective view of current market conditions, as published in ACT Research’s latest State of the Industry: NA Classes 5-8 report. “The Class 8 backlog fell 15,516 units m/m in June to 127,917 units,” said ACT’s president and senior analyst, Kenny Vieth. “With two fewer production days, June’s build rate increased to an incredibly strong 1,609 units per day. Given where we are on the calendar, stronger build than orders should continue to push the backlog lower in the coming months.” Final North American Class 8 net orders totaled 14,604 units in June (18.2k seasonally adjusted), down 13% y/y as we move through the weakest period of the year for orders. According to Vieth, a plant fire in April that caused the red tagging of numerous units continues to require some reading between the lines regarding Class 8 inventories. On ACT’s calculated basis, the Class 8 inventory rose to an all-time high close to 92,500 units in June, versus the 85,400 units reported. Our calculated inventory surpasses August 2019 on the ‘we’ve got an inventory problem’ list.” “Class 8 retail sales were 24,267 units, or 22.8k seasonally adjusted, down 19% y/y,” Vieth said. “The decline was more than covered by tractors, which fell 26% y/y, even as vocational units held their own, rising 2.7% y/y. On that seasonally adjusted basis, June’s retail number was the weakest since February 2022, back when supply chains were constraining the market.”