Business Archives

KBX Logistics/Georgia-Pacific named Paper Transport’s CPG Dedicated Carrier of the Year

Dana Guthrie - June 17, 2024

DE PERE, Wisc. — KBX Logistics/Georgia-Pacific Paper Transport (PTI) has been awarded the 2023 CPG Dedicated Carrier of the Year award. “To be the best dedicated carrier for one of the largest companies in America is huge,” said Vice President of Operations Wes Kornowske. “That is the top of the mountain.” The company has received the award 10 times during its history. Kornowske highlighted the impressive work of the drivers and collaborative efforts made by the entire team. “We are a bigger company now than ever, but we all still touch that customer in some way,” Kornowske said. CEO Ben Schill also praised the team. “Everybody is working together to create an excellent experience for our customer,” Schill said. “Our goal has always been to be an extension of the KBX Logistics team who handles the transportation for Georgia Pacific. Through the years, we have made each other stronger, and this award is a testament to the valuewe provide year after year.” According to PTI, a top 100 for-hire truckload carrier, its best-in-class drivers are committed to providing outstanding service. Their driver coaching and hiring practices prioritize performance and safety, further enhancing supply chain efficiency. In its 30+ years, Paper Transport has established a notable national presence, offering both asset and non-asset solutions through strategic partnerships and versatile logistics capabilities.

Gerstenslager joins Utility Trailer Manufacturing

Dana Guthrie - June 17, 2024

CITY OF INDUSTRY, Calif. — Utility Trailer Manufacturing Company LLC has announces the addition of Matt Gerstenslager in a new dual role. Gerstenslager will head new dealer development, in addition to improving regional sales support for the east. He comes with seven plus years of experience with Hendrickson International, in various sales and marketing management capacities, and most recently as director of marketing for their suspension products. “Many of us know Matt and we welcome his technical and sales experience, and knowledge of our industry and the competitive landscape,” said Utility’s Chief of Sales Mark Glasgow. “His experience and understanding of our products will prove invaluable in providing excellent service to our dealers and widening our reach to underserved areas. We are thrilled to have him as part of our team.” Gerstenslager will be based out of Canton, Ohio. The hiring comes as Utility continues to strengthen its sales and service support to its extensive and growing dealer network.

Federal judge orders Houston company to pay wages, damages to fired truck driver

Dana Guthrie - June 14, 2024

HOUSTON, Texas — A federal administrative law judge has upheld the Department of Labor’s (DOL) finding that Crane Masters Inc., a Houston crane and rigging services provider, violated federal law by firing a company truck driver on June 5, 2020, for refusing to exceed safe driving limits set by the Federal Motor Carrier Safety Administration. An investigation by the DOL’s Occupational Safety and Health Administration (OSHA) determined the driver, employed by Crane Masters, told their employer that, after working 19 hours on June 4, 2020, it would be unsafe for them to operate a commercial vehicle as they had not had the legally required amount of time off before returning to work. The company responded by terminating the driver. “Congress enacted the world’s first whistleblower protections in 1778 to ensure that people who come forward to report illegal behaviors or actions don’t suffer for doing what’s right,” said Eric Harbin, Dallas OSHA Regional Administrator. “In this case, Crane Masters Inc. was held accountable for retaliating against an employee who acted responsibly by raising their concerns about endangering themselves and others by operating a commercial vehicle without sufficient rest.” OSHA determined thata the company illegally fired the employee for exercising their protected rights under the federal Whistleblower Protection Program. The department’s Regional Solicitor in Dallas presented its case during a formal hearing in Houston Oct. 14, 2022. On May 13, 2024, the judge issued a decision upholding OSHA’s findings and ordered Crane Masters to pay the former truck driver $14,945 in back pay, interest and compensatory damages. The company must also expunge the former employee’s record and post a notice to employees. “Once again, the Department of Labor has vigorously enforced the rights of employees who report safety or regulatory violations,” said Regional Solicitor John Rainwater. “Whistleblower rights are crucial to the safety of employees and the public at-large. A federal judge upheld the department’s contention that Crane Masters wrongly retaliated against a hard-working employee for doing what’s right.” OSHA’s Whistleblower Protection Program enforces the whistleblower provisions of more than 20 whistleblower statutes protecting employees from retaliation for reporting violations of various workplace safety and health, airline, commercial motor carrier, consumer product, environmental, financial reform, food safety, health insurance reform, motor vehicle safety, nuclear, pipeline, public transportation agency, railroad, maritime, securities, tax, antitrust and anti-money laundering laws, and for engaging in other related protected activities. For more information on whistleblower protections, visit OSHA’s Whistleblower Protection Programs webpage.

DAVCO ‘goes West,’ names industry veteran Tim West as company president

Dana Guthrie - June 14, 2024

SALINE, Mich. — DAVCO Technology has named Tim West as new company president. DAVCO is owned by Michigan-based Clarience Technologies, a global transportation technology provider. “I am excited to join the DAVCO team,” West said. “DAVCO has provided an excellent engineered product that has been well received in the industry for decades. I’m looking forward to utilizing my background to help drive continued product development and growth across multiple market segments.” West joins DAVCO after nearly 12 years with the Commercial Vehicle Group Inc., where he most recently served as vice president of seating and structures for the vehicle solutions division. He previously held a number of titles with the Group, including vice president of customer success; vice president of warehouse automation; senior director and product line manager for global truck seating; director and product line manager for off-road seats, trim and wipers; and director of product line management for global wire harness. Before that, he held a variety of program manager and engineering positions with companies including Honeywell, MicroMetl, American Boa and ArvinMeritor. West holds a bachelor of science degree in mechanical engineering from Purdue University. “Tim’s leadership and well-rounded experience with on and off-highway applications will help accelerate DAVCO’s growth plan and product offerings to new, exciting industries, while continuing to provide the industry-leading solutions that our customers have come to expect,” said Mark Bara, Clarience Technologies’ president of performance solutions.

SupplyTech names Transflo’s Renee Krug as CEO of the year

Dana Guthrie - June 14, 2024

TAMPA, Fla. — Transflo CEO Renee Krug has been named the SupplyTech Company CEO of the Year. “I’m overwhelmed with this honor from SupplyTech Breakthrough, and I want to thank my entire team at Transflo,” Krug said. “I think success comes from consistently prioritizing two key questions, ‘What is the best experience for the client?’ and ‘How can we make their day easier?’” The award was presented as part of the annual SupplyTech Breakthrough Awards program. The honor has been awarded by SupplyTech Breakthrough, a leading independent market intelligence organization that evaluates and recognizes standout technology companies, products, and services in the supply chain technology and logistics industries around the globe. “Going forward, Transflo will maintain a focus on innovation and leadership in the transportation sector,” Krug said. “Our journey, characterized by a blend of pioneering spirit and strategic leadership, stands as a testament to our enduring commitment to technological advancement and customer-centric solutions.” A statement from Transflo notes that, since its inception in 1991, the company has been at the forefront of technological innovation in transportation, including its introduction of document scanning technology and the development of one of the industry’s first smartphone applications for digital document scanning, Transflo Mobile+. With a clear vision and a commitment to technological advancement, Krug has propelled Transflo’s digital transformation forward, the statement continues. She has led Transflo through a renaissance, reimagining the company’s vision and strategy. Under her strategic leadership, Transflo has embraced and pioneered the application of artificial intelligence and machine learning in transportation. Under Krug’s leadership, the company has created a platform that enables companies to achieve up to 90% productivity gains, and her leadership style has advanced the company’s mission and encouraged staff and customers to reach their fullest potential. Recently named one of the Top 50 Women Leaders in SaaS, Krug says she identifies opportunities by approaching business with a customer-focused mindset. Her leadership style is characterized by a willingness to embrace innovative approaches and a methodical attitude toward risk-taking. This combination has been a key driver in Transflo exceeding $100 million in annual revenue. The mission of the annual SupplyTech Breakthrough Awards program is to conduct the industry’s most comprehensive analysis and evaluation of the top technology companies, solutions and products in the supply chain and logistics industry today. This year’s program attracted thousands of nominations from over 15 different countries around the world. “Renee Krug epitomizes the ideal blend of entrepreneurial spirit and visionary leadership,” said Bryan Vaughn, managing director of the SupplyTech Breakthrough Awards. “In taking the helm of a company already known for its pioneering advancements, she faced the complexities inherent in existing technologies and client relationships. Her courage and perseverance have been instrumental in Transflo’s transformation into a SaaS leader,” he continued. “Under Renee’s guidance, Transflo has achieved significant milestones in revenue and product development. Her journey is a powerful example of how identifying opportunities for innovation, taking calculated risks, and demonstrating courage and perseverance can lead to remarkable achievements.”

RXO Connect software earns top honors from SupplyTech Breakthrough

Bruce Guthrie - June 14, 2024

CHARLOTTE, N. C. — RXO, a provider of asset-light transportation solutions, has been named the Top Digital Freight Brokerage Software of the Year by SupplyTech Breakthrough, a leading independent market intelligence organization. “It is an honor to be recognized as industry leaders in technology, especially for RXO Connect,” said Yoav Amiel, chief information officer for RXO. “We are constantly providing updates to the platform and are always searching for ways to better serve our customers and carriers. We remain committed to transforming the transportation industry with innovative solutions and best-in-class technology.” According to a statement from RXO, the recognition underscores a commitment to innovation and excellence in the industry through cutting-edge technology and by providing customers with unique solutions. The award spotlights RXO’s cutting-edge technology platform, RXO Connect, which transforms the shipping process by finding smart solutions to move freight. RXO Connect offers a suite of features that automates steps in the freight booking process, resulting in an easy experience for both shippers and carriers. With more than 10,000 reliable carriers, RXO Connect streamlines transactions for brokerage customers as well as other RXO services, provides unparalleled visibility on the movement of freight and is powered by robust AI and machine learning capabilities to better serve customers and carriers.

Though still negative, FTR’s trucking conditions index improved in April

Bruce Guthrie - June 13, 2024

BLOOMINGTON, Ind. — While the numbers are trending in the right direction, FTR’s Trucking Conditions Index (TCI) indicated a more hospitable environment for carriers in April but remained negative at a reading of -1.95. However, that reading was up from -7.25 in March, according to a release issued this week. Both freight rates and financing costs were less negative, and freight volume improved. The TCI has not been positive in any month since early 2022 and likely will be mostly mildly negative for the rest of the year. The index could see some outlying positive readings as it moves closer to neutral territory. “Better days are in sight for trucking companies, but the market still needs to work through the tough combination of too much capacity and sluggish freight demand,” said Avery Vise, vice president o trucking for FTR. “The May payroll jobs figures for trucking offered some encouragement that this transition is underway, but a healthier situation for carriers will require continued rightsizing of capacity and stronger volume,” he continued. “We still do not expect consistently favorable market conditions for carriers until early next year.” Details of the April TCI can be found in the June issue of FTR’s Trucking Update, published May 31, 2024. Additional commentary in the June edition analyzes the lingering excess trucking capacity among both small and larger carriers. The Trucking Update includes data and analysis on load volumes, the capacity environment, rates, and the economy.

CII to honor Port Houston’s Roger Guenther, GSC’s Scott Taylor

Dana Guthrie - June 13, 2024

MIDDLETOWN, N.J — The Containerization and Intermodal Institute (CII) will present its 2024 Connie Award to Roger Guenther, executive director of Port Houston, one of the largest ports in the United States and a vital gateway for international trade in the Gulf Coast region. In addition, Scott Taylor, CEO and chairman of the board of GSC, will be honored with the Lifetime Achievement Award in recognition of his many years of experience in the supply chain and logistics industry as a leader and innovator. They will be honored at the Connie Awards dinner Sept. 11 at the Marriott Long Beach Downtown Hotel in Long Beach, California. Guenther was chosen following an industry-wide poll and was announced by CII President, Chris Brooks. The prestigious Connie Award is awarded to industry leaders whose contributions to the advancement of containerization and intermodalism are the result of innovation, entrepreneurialism and influential leadership. Recipients of this award are not only recognized for their ongoing contributions, but for specific initiatives that have impacted the industry. Guenther has served as the executive director of Port Houston since January 2014, leveraging his 36 years of experience within the organization to steer its operational excellence. As the head of the port, Guenther elevated Port Houston to its current position as a top five container port in the U.S. He oversees a diverse range of import and export operations, including container, general cargo, breakbulk and bulk commodities, ensuring the efficiency of Port Houston’s public facilities. Under his leadership, Port Houston continues to thrive alongside more than 200 public and private facilities, collectively supporting an annual economic value of $906 billion. Guenther’s tenure at Port Houston, which began in 1988, has been marked by significant contributions to facilities management, including the master planning of the Bayport Container Terminal and the redevelopment of the Barbours Cut Terminal. His expertise extends to procurement, having overseen the acquisition of container handling cranes and equipment over the past three decades. “Roger Guenther has demonstrated unparalleled leadership and unwavering dedication to excellence in maritime operations,” Brooks said. “His visionary stewardship has propelled Port Houston to the forefront of global trade, ensuring its vital role in facilitating commerce while upholding the highest standards of efficiency and reliability. The Connie Award not only recognizes Roger’s outstanding achievements but also celebrates his enduring commitment to advancing the industry and driving economic prosperity for generations to come.” CII’s Lifetime Achievement Award recipient, Scott Taylor, CEO and chairman of GSC, has over 50 years of supply chain expertise. Under his leadership, GSC evolved from its early adoption of computers to pioneering state-of-the-art technology, becoming one of the largest drayage providers in Northern California and the Pacific Northwest, with expansions to the East Coast in 2023. Taylor’s commitment to innovation and client relationships led GSC to become a preferred transportation provider for Fortune 100 retailers, with notable acquisitions like MacMillan-Piper bolstering their service offerings along the West Coast. Taylor co-founded GSC in 1988, leading to its growth of more than 500 employees across more than 12 locations. Under his guidance, GSC evolved from a small operation to a major player in drayage and logistics, serving Fortune 100 clients. “GSC’s growth into a prominent nationwide 3PL powerhouse reflects Scott’s vision and dedication to excellence in the industry,” Brooks said. “His contributions over the course of five decades are noteworthy and make him the epitome of a deserving recipient for the Lifetime Achievement Award.” The Lifetime Achievement Award is considered for individuals who have played a long-standing, significant, supporting role in the industry. CII was founded in 1960 and has been presenting the Connie Award since 1972. It has become the most coveted honor in the field of containerization and its ancillary industries. Among the more than 70 recipients to date are containerization founder Malcom McLean, The Honorable Mario Cordero, Gene Seroka, Bill Shea, Ron Widdows, Joe Gregorio, the late Evergreen Group Chairman Y. F. Chang, James McKenna, Bob Sappio, John Wolfe, Richard Steinke, Captain S.Y. Kuo, Matthew Cox and Robert Pfeiffer. At the event, CII will carry out its industry education mission by presenting scholarships to students studying logistics as well as the institutions that are educating our future leaders. Under its auspices, CII has awarded some $1 million toward scholarships since 1972. Companies have the opportunity to support ongoing industry education by purchasing scholarships through CII, starting at $1,000. Information about funding a 2024 named scholarship is available from CII Executive Director, Lisa Aurichio at 917-476-8366 or email [email protected].

Georgia ports traffic continues to rise

Dana Guthrie - June 13, 2024

SAVANNAH, Ga. — A strengthening retail market combined with business from new customers is driving substantial growth at the Port of Savannah. The Georgia Ports Authority handled 490,330 twenty-foot equivalent container units in May, an increase of 22%, or nearly 90,000 TEUs, over the same month a year ago. “Major retail customers tell Georgia Ports they have increased their orders to rebuild inventories and to meet rising consumer demand,” said GPA President and CEO Griff Lynch. “Additionally, we’ve seen an increase in trade among Tier 1 suppliers for the new Hyundai Meta Plant, which also added to our May container volumes.” While there have been reports of congestion at Southeast U.S. ports, Lynch said there is no congestion in Savannah. He added that GPA is benefiting from source shifting, as more manufacturers establish production facilities in Southeast Asian locations that favor delivery via Savannah. The Port of Savannah has achieved an increase in container trade for every month of Calendar Year 2024, compared to 2023. GPA’s May performance improved on its April numbers by 11 percent. Lynch said June is also expected to be strongly in positive territory, with more than 320,000 TEUs of import cargo destined for Savannah currently on the water. In intermodal cargo, the Appalachian Regional Port accomplished a record May, with the inland rail terminal moving 3,600 containers. Forty-foot boxes moved by rail at the Port of Savannah’s Garden City Terminal reached 44,000 last month, an increase of 2 percent or 900 containers. For the calendar year to date, GPA has handled 2.2 million TEUs in total cargo, up 12.7 percent over the same period in 2023. “The teamwork among our GPA employees and our supply chain partners delivers unmatched service for our customers,” said GPA Board Chairman Kent Fountain. “In order to press Georgia’s logistical advantage, the Board is investing significantly in new capacity across our docks, container yards, truck gates and rail connections.” For the calendar year through May, the Port of Savannah has handled 770 vessels, an increase of 36 compared to the same period last year.

NMFTA urges SCAC renewal by June 30

Dana Guthrie - June 13, 2024

ALEXANDRIA, Va. – The National Motor Freight Traffic Association Inc. (NMFTA) is reminding those with a Standard Carrier Alpha Code (SCAC) that the renewal date is fast approaching. The NMFTA assigns SCAC codes for all companies except those used for identifying freight containers not operating exclusively in North America, intermodal chassis and trailers, non-railroad-owned rail cars and railroads. Current SCACs expire between June 30 and July 7. “SCAC identification codes have existed since the mid-1960s and were developed to facilitate computerization in the transportation industry,” said NMFTA client senior manager Debra Edwards. “It’s a unique two to four-letter code utilized to identify various transportation companies properly, and while certain groups of a SCAC are reserved for specific purposes, overall, the code is recognized by various organizations.” An SCAC is required when doing business with all U.S. government agencies and with many commercial shippers including: U.S. Food and Drug Administration (FDA). U.S. Customs and Border Protection (CBP). Automated Commercial Environment (ACE). Automated Manifest (AMS). Pre-Arrival Processing (PAPS) Systems. Carriers who use the Uniform Intermodal Interchange Facilities Access Agreement (UIIA) are also required to maintain a valid SCAC. “We understand that some industry professionals are uncertain of whether SCAC needs to be implemented in their daily process,” Edwards said. “To confirm that information, NMFTA has created a SCAC infographic to help determine if SCAC is necessary, what the specific reason for utilizing one is, and to what degree it should be incorporated.” As the renewal date approaches, the NMFTA desires to ensure that industry professionals have all the knowledge and resources available to make accurate decisions regarding the codes to avoid possible setbacks. To renew or apply for an SCAC code, visit the SCAC website for real-time integration into the computer system. The NMFTA publishes all codes and the data is available via an online search engine through SCAC Online after purchasing a subscription. If a data download is required, SCAC data is also accessible daily or quarterly by email or FTP. Both are provided in UTF8 encoded ASCII format with a record length of 254 characters.

Bestpass releases new integrated toll data

Bruce Guthrie - June 13, 2024

Bestpass Inc., which touts itself as “the leader in toll management solutions and major innovator in safety and compliance solutions for commercial fleets,” recently issued a press release announcing it has added new integration features within the Geotab ecosystem that will enable Geotab customers to access new insights regarding toll activity to more effectively manage tolls and identify opportunities to reduce toll expenses. According to Shay Demmons, chief product officer for Bestpass, this “Phase 2” version of the integration with Geotab further enhances the information and tools Bestpass and non-Bestpass customers can use to learn more about toll activity, be proactive with their toll data, and manage toll-related tasks within the MyGeotab interface. “A new and exciting feature this integration update with Geotab provides is the ability for mutual customers to forecast their future toll spend,” said Demmons. “This feature allows fleets of all sizes to predict future toll spend by taking into account items such as upcoming rate changes, vehicle adds or deletes, and current travel patterns. This is a first-of-its-kind feature that allows fleets to predict future spend based on these unique data points offered between Geotab and Bestpass.” Demmons continued, “We have also given customers the unique ability to manage their transponders directly from the interface. This makes fleet hygiene, as it relates to toll management, a breeze and will ensure proper device choices for vehicles to maximize savings and reduce potential violations.” With this feature, fleet managers can replace or re-assign vehicle transponders and order transponders for new vehicles directly through Geotab. In addition to other reporting tools already available through the Bestpass – Geotab integration, this feature will help fleets more effectively manage toll violations and losses caused by incorrectly assigned, missing, lost, or misused transponders, the release stated. For Geotab customers not using Bestpass, there is now a new toll estimate tool that fleets and owner-operators can access to receive free Bestpass toll savings estimates. By enabling this tool, Bestpass will create an accurate toll savings estimate based on vehicle GPS coordinates, fleet size, toll pricing, and other relevant data shared between Geotab and Bestpass. This tool is an industry first that illustrates the benefits and toll cost savings Bestpass can provide.

April ’24 TSI trending downward

Dana Guthrie - June 13, 2024

WASHINGTON — The Freight Transportation Services Index (TSI), which is based on the amount of freight carried by the for-hire transportation industry, fell 1.1 percent in April from March, falling for the second consecutive month, according to the U.S. Department of Transportation Bureau of Transportation Statistics (BTS). From April 2023 to April 2024 the index fell 1.3 percent. The level of for-hire freight shipments in April measured by the Freight TSI (134.9) was 4.5 percent below the all-time high of 141.2 reached in August 2022. BTS’ TSI records began in 2000. The March index was revised to 136.4 from 136.7 in last month’s release. BTS will release the passenger and combined indexes for April in July, due to the fact that air passenger travel continues to deviate from regular seasonal patterns, as it adjusts to the effects induced by the COVID-19 pandemic. The March passenger and combined indexes are available on the BTS website. Air freight for April is also a statistical estimate. Since air freight makes up a smaller part of the freight index, the freight TSI is being released as scheduled with the air freight estimate included. The Freight TSI measures the month-to-month changes in for-hire freight shipments by mode of transportation in tons and ton-miles, which are combined into one index. The index measures the output of the for-hire freight transportation industry and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight. The TSI is seasonally-adjusted to remove regular seasonal movement, which enables month-to-month comparisons. According to an analysis of the trends, the Freight TSI decreased in April due to seasonally adjusted decreases in trucking, air freight, rail carload, rail intermodal, pipeline and water. The April decrease came in the context of mixed results for several other indicators. The Federal Reserve Board Industrial Production (IP) Index was unchanged in April, reflecting increases of 2.8 percent in utilities, while mining declined by 0.6 percent and manufacturing was down 0.3 percent. Housing starts were up 5.7 percent and personal income increased by 0.3 percent. The Institute for Supply Management Manufacturing (ISM) index was down 1.1 points to 49.2, a return to contraction in manufacturing after growth in the previous month. A reading above 50 indicates an expansion of U.S. manufacturing, while a reading below 50 indicates a contraction. Although the April Passenger TSI is being withheld because of the previously cited difficulty of estimating airline passenger travel and other components, the March index is now being released. The index increased 1.6 percent from February to March. Seasonally adjusted transit, rail and air passengers all increased. The Passenger TSI has now exceeded its level in March 2020 —the first month of the pandemic— for thirty-four months in a row but remains below its pre-pandemic level (February 2020) for the 49th consecutive month. Trend analysis also shows that the April freight index decrease was the third in four months, leaving the index 2.4 percent below its level in December 2023. It followed a decrease in March, leaving the index 2.5 percent below its level in February 2024. The index increased 1.4 percent since August 2021. The April Freight TSI exceeds the pandemic low in April 2020 by 8.6 percent. The index increased month-over-month in 26 of the 48 months since that low. For additional historical data, go to TSI data. Index highs and lows: For-hire freight shipments in April 2024 (134.9) were 42.0 percent higher than the low in April 2009 during the recession (95.0). The April 2024 level was 4.5 percent below the historic peak (since 2000) reached in August 2022 (141.2). Year to date: For-hire freight shipments measured by the index were down 2.4 percent in April compared to the end of 2023. Long-term trend: For-hire freight shipments are down 2.2 percent in the five years from April 2019 and are up 11.9 percent in the 10 years from April 2014. Same month of previous year: April 2024 for-hire freight shipments were down 1.3 percent from April 2023. The TSI has three seasonally-adjusted indexes that measure changes from the monthly average of the base year of 2000. The three indexes are freight shipments, passenger travel and a combined measure that merges the freight and passenger indexes. See Seasonally Adjusted Transportation Data for numbers for individual modes. TSI includes data from 2000 to the present. Release of the May 2024 index is scheduled for July 11, 2024. Revisions: Monthly data has changed from previous releases due to the use of concurrent seasonal analysis, which results in seasonal analysis factors changing as each month’s data are added. BTS research has shown a clear relationship between economic cycles and the Freight and Passenger Transportation Services Indexes. See a study of this relationship using smoothed and detrended TSI data. Researchers who wish to compare TSI over time with other economic indicators, can use the FRED database, which includes freight, passenger and combined TSI and which makes it possible to easily graph TSI alongside the other series in that database. See TSI data on FRED. For charts and discussion on the relationship of the TSI to the economy, see Transportation as an Economic Indicator: Transportation Services Index. A BTS report explaining the TSI, Transportation Services Index and the Economy, is available for download. The Transportation Services Index (TSI) is a measure of the month-to-month changes in the output of services provided by the for-hire transportation industries. The freight index measures changes in freight shipments while the passenger index measures changes in passenger travel. The TSI shows how the output of transportation services has increased or decreased from month to month. The index can be examined together with other economic indicators to produce a better understanding of the current and future course of the economy. The movement of the index over time can be compared with other economic measures to understand the relationship of changes in transportation output to changes in Gross Domestic Product (GDP). The freight transportation index includes: For-hire trucking. Railroad freight services (including rail based intermodal shipments such as containers on flat cars). Inland waterways transportation. Pipeline transportation (including principally petroleum and petroleum products and natural gas) and air freight. The index does not include international or coastal waterborne movements, private trucking, courier services, or the US Postal Service. The passenger transportation index includes: Local transit. Inter-city passenger rail. Passenger air transportation. The index does not include intercity bus, sightseeing services, ferry services, taxi services, private automobile usage or bicycling and other non-motorized transportation. The TSI includes only domestic “for-hire” freight and passenger transportation. For-hire transportation consists of freight or passenger transport services provided by a firm to external customers for a fee. The TSI does not include taxi services, paid ride services in personal motor vehicles (e.g., Uber, Lyft, etc.), intercity bus services, in-house transportation (vehicles owned and operated by private firms for their own use) or noncommercial passenger travel (e.g., trips in the household car).

ATA applauds House appropriators for cargo theft action

Dana Guthrie - June 12, 2024

WASHINGTON, D.C. — The American Trucking Associations (ATA) applauded the House Appropriations Committee’s report language for the fiscal year 2025 Department of Homeland Security funding bill, which included a provision directing Homeland Security Investigations (HSI) to establish a Supply Chain Fraud and Theft Task Force, as well as $2 million to fund the initiative. The report language was championed by Congressman David Valadao (R-CA) and will counter the sharp rise in cargo theft and broader supply chain fraud, addressing one of ATA’s strategic priorities. “The trucking industry takes great pride in delivering America’s freight safely and on time,” said ATA Senior Vice President of Legislative Affairs Henry Hanscom. “The billions of tons of goods transported by trucks to every American community have increasingly become a prime target for organized crime, putting truck drivers at risk and raising costs for consumers. “ATA commends the House Appropriations Committee and Congressman Valadao for directing Homeland Security Investigations to leverage its unique cross-border authorities to address this alarming trend,” he continued. “This provision will strengthen the partnership between the government, law enforcement, motor carriers, and our supply chain partners to strike an effective blow against these organized theft groups.” Mark Savage, chairman of the ATA’s Law Enforcement Advisory Board (LEAB) and director of connected truck solutions at Drivewyze, noted that cargo thefts were less prevalent during his time with the Colorado State Patrol, but he says that has changed drastically. “Unfortunately, in recent years, organized theft groups have been systematically targeting our nation’s supply chains and using increasingly sophisticated techniques to steal cargo in transit,” Savage said. “LEAB is already working with the trucking industry, as well as with the Cargo Theft Task Force in Florida and the California Highway Patrol, to help raise awareness and connect local officers with federal resources. We support this appropriations provision that will strengthen law enforcement’s ability to crack down on criminals and protect drivers and motor carriers from future thefts.” The appropriations report language allocates $2 million for Homeland Security Investigations, a subset of Immigration and Customs Enforcement, to consult with state, local and federal law enforcement agencies, as well as relevant private sector stakeholders to ensure the Task Force “employs a coordinated, multi-agency, intelligence-based and prosecutor-led approach to identifying, disrupting and dismantling organizations primarily responsible for the theft and theft-related violence in the American supply chain.” According to CargoNet, cargo theft spiked by 57% in 2023 compared to the prior year. Thefts have continued at a rapid pace, increasing another 10% in the first three months of 2024. In Q1, there were 925 documented incidents of cargo theft with an average loss of $281,757 per stolen shipment. California, Texas and Illinois had the highest incidents of cargo theft, accounting for 61% of all cases. Motor carriers are not required to report these robberies, so actual cases are likely much higher. Cargo theft not only disrupts the supply chain for American consumers, but it also endangers the lives of truck drivers and law enforcement. In light of this troubling trajectory, ATA added security — including cargo theft and cyber threats — to its list of strategic priorities earlier this year.

Accelera venture between Cummins, DTNA, PACCAR changes name, hires new CEO

Erica N. Guy - June 12, 2024

Accelera, the battery joint venture by Cummins, Daimler Truck North America (DTNA) and PACCAR, is now known as Amplify Cell Technologies. Amplify will be able to advance zero-emissions technology for electric commercial vehicles and industrial applications by localizing battery cell production and the supply chain nationwide, according to a news release announcing the new name and partnerships. Amplify has also named Kel Kearns its new CEO. He will help the company produce lithium-iron-phosphate (LFP) battery cells, “adding value for commercial vehicle customers in North America” “Cummins’ power solutions are at the heart of the economy, and we have the responsibility to decarbonize in a way that meets our customers’ varied needs as they navigate the energy transition,” said Jennifer Rumsey, Chair and CEO at Cummins. “Amplify Cell Technologies will enable Accelera by Cummins and our partners to deliver solutions that best serve our customers and the planet. This is a significant step forward as we lead our industry into the next era of smarter, cleaner power.” Amplify will soon begin construction of a 21-gigawatt hour (GWh) factory in Marshall County, Mississippi, with potential for further expansion as demand grows, according to the news release. The factory is expected to create more than 2,000 U.S. manufacturing jobs and is targeting the start of its production operations in 2027. John O’Leary, President and CEO of Daimler Truck North America, said, he is keeping a focus on cost and smart capital allocation. Those, he noted, will be key to succeeding in sustainable transportation. “This partnership enables economies of scale beyond Daimler Truck,” O’Leary said. “It is a key puzzle piece of our battery industrialization strategy, ensuring access to the right battery cell technology at the right cost and right time for our customers.” Preston Feight, PACCAR’s chief executive officer, said that Amplify Cell Technologies “will enable PACCAR to offer customers cost-effective premium quality battery electric powertrains that meet their operational and sustainability need.” “We are pleased to begin this exciting venture with these world-class partners,” he concluded.

Arpin International wins ‘Excellence’ award

Erica N. Guy - June 12, 2024

WEST WARWICK, R.I. — Arpin International Group recently received Relocate Global’s prestigious award, the 2024 Excellence in Environmental, Social, and Governance (ESG) award. Caroline Curik, Director of Business Development from Arpin’s German office, accepted the award for the company at the ceremony on June 6 at Two Temple Place in London. “We are honored and deeply appreciative to be recognized by Relocate Global with the 2024 Excellence in ESG award,” said Karen Bannon, the director of marketing and ESG, expressing gratitude for receiving the award.”At Arpin, devoting time and resources to environmental causes is central to our culture. Our commitment to responsible growth, emphasizing the triple bottom line, drives all our business decisions and underscores Arpin’s commitment to maximizing our positive contributions to the world.” The Relocate Global-hosted annual “Think Global People and Relocate Awards” aims to recognize and reward organizations that provide unique customer experiences and showcase responsive, resource-efficient, and cost-effective services that distinguish them from the competition. “People have always been at the heart of our sector,” said Fiona Murchie, Relocate Global’s managing editor. “It is inspiring to see that along with striving for and achieving excellence, all our award winners are embracing opportunities and focusing on creating diverse, skilled, and well-supported people.” The Think Global People and Relocate Awards are highly esteemed in the relocation and global mobility sector. They encompass all facets of the international mobility supply chain, including HR and commercial property.

Truckstop names new CFO

Erica N. Guy - June 12, 2024

BOISE, Idaho — Truckstop issued a press release announcing Joe Pergola’s appointment as its new Chief Financial Officer. “As a valuable member of the Truckstop leadership team, Pergola will oversee global financial operations, financial planning and analysis, controllership in accounting and taxes, investor relations, investments, capital structure, and growth strategies,” the release stated. “I am honored to join Truckstop at such an exciting time in its growth journey,” said Pergola. “I look forward to working closely with the talented team to drive financial excellence, strengthen operational efficiencies, and unlock new opportunities for sustainable growth and value creation.” Pergola brings over 25 years of experience as a CFO in business and financial leadership. He contributes a vast array of expertise to Truckstop. Before his current role, he served as the CFO for Connatix and Integral Ad Science, significantly contributing to the latter’s public offering in 2021, which established the company’s value at $3.8 billion. Throughout his career, Pergola has spearheaded and revolutionized finance, accounting, mergers and acquisitions, corporate development, business and sales operations, as well as real estate for more than six Fortune 500 media and advertising technology companies, such as Amazon, Criteo, The Weather Company, Yahoo, and Time Warner. “Joe’s extensive financial experience will prove invaluable as we deepen our dedication to being a trusted partner in the freight transportation industry,” said Kendra Tucker, chief executive officer of Truckstop. “His impressive track record of delivering results and creating value will further advance our growth strategy and customer’s success.”

Major changes for NMFC take effect in 2025

Erica N. Guy - June 12, 2024

ALEXANDRIA, Va. — Changes are coming. The National Motor Freight Traffic Association, Inc. (NMFTA)™ announced during its Summer Meeting in Louisville, KY, that major National Motor Freight Classification (NMFC)® changes will take effect in the first quarter of 2025. These changes will impact carriers, shippers, and 3PLs. To ensure a smooth transition across the supply chain, NMFTA will host three LTL Listening Sessions in August, each dedicated to a specific industry sector: Carriers Only LTL Listening Session: 2:00-3:00 pm ET on Tuesday, August 6; 3PLs Only LTL Listening Session: 2:00-3:00 pm ET on Wednesday, August 7; and Shippers Only LTL Listening Session: 2:00-3:00 pm ET on Thursday, August 8. “From the upcoming changes, NMFC users will notice that we truly prioritized simplifying the classification system by utilizing a standardized approach based on density, handling, stowability, and liability,” said Keith Peterson, Director of Operations for NMFTA. “We also focused on enhancing the user experience to make it easier to both use and understand the NMFC. These changes will increase efficiency, making it easier to classify freight accurately on the first try.” Peterson added that the goal of the changes taking place in 2025 is to reduce any friction between carriers, shippers, and 3PLs. To ensure that NMFC updates aren’t occurring at once, NMFTA has implemented a phased approach, with the first changes coming in Docket 2025-1. The upcoming phases that will be incorporated by the NMFC consist of: Standardized density scale for LTL freight when handling, stowability and liability issues are not present; Unique identifiers for freight with special handling, stowability, or liability needs; Condensed and modernized commodity listings; and Improved usability of the ClassIT® classification tool. As 2024 progresses, the process is set to become more intensive, informative, and inclusive. Both the NMFTA and NMFC expect the changes to streamline workflows, enhance communication and visibility, and increase the overall satisfaction of everyone involved. “We estimate to move as many as 3,500 single-class items to 13 subcategories,” said Nate Ripke, Director of Commodity and Standards development for NMFTA. “With Docket 2025-2 and thereafter, additional changes are likely to be made, which is why we’re scheduling LTL Listening Sessions this Summer.” The LTL Listening Sessions will allow industry professionals to gain in-depth insight into the reimagination process, ask questions directly to NMFTA representatives, and share direct experiences that can help shape the future of the NMFC. All professionals interested in attending can visit the NMFTA LTL Listening Sessions page to learn more about the sessions and access additional NMFTA resources to help prepare for the upcoming changes.

California’s 9th Circuit upholds AB5 law

John Worthen - June 12, 2024

SAN FRANCISCO — The California worker classification law, commonly known as AB5, has been upheld by the U.S. Court of Appeals for the Ninth Circuit. The 11 judges who make up the court’s full panel handed down the ruling on Monday, June 10. According to California officials, AB5’s goal was to prevent businesses from misclassifying workers as independent contractors. However, many in the trucking industry disagreed. The California Trucking Association and Owner-Operator Independent Drivers Association (OOIDA) recently filed an appeal to the Ninth Circuit over AB5. “The California Trucking Association and OOIDA have argued that AB5 imposes undue burdens on interstate commerce in violation of the dormant Commerce Clause,” OOIDA said in a statement. “In addition, OOIDA and the state trucking group have said that the law’s decisions on who it exempts violate the U.S. and California constitutions’ equal protection clauses.” AB5 was signed into law in 2019 after Lydia Olson and Miguel Perez, — drivers for Uber and Postmates — filed a lawsuit that same year. The Ninth Circuit on June 10 unanimously upheld a lower court ruling that said Uber failed to show that the 2020 state law known as AB5 unfairly singled out app-based transportation companies while exempting other industries. AB5 was originally designed as a general labor law that would cover a variety of industries, including trucking, app-based delivery companies and journalism. Exemptions were later granted to workers in multiple fields. Opponents, such as OOIDA, contend that the law now targets gig workers and the trucking industry. They argued AB5 violates the Equal Protection Clause. A federal court previously ruled that AB5 applies to some 70,000 truck drivers who can be classified as employees of companies that hire them instead of independent contractors, giving them a right to overtime, sick pay or other benefits. Judge Jacqueline Nguyen wrote in her June 10 opinion that AB5 does not directly classify any particular workers as employees or independent contractors. “Rather, under AB5, as amended, arrangements between workers and referral agencies that provide delivery or transportation services are automatically subject to the ABC Test adopted by the California Supreme Court,” the judge wrote. The ABC Test says that a worker is considered an employee unless three factors are established: A — The company does not control or direct what the worker does, either by contract or in actual practice. B — The worker performs tasks outside of the hiring entity’s usual course of business. C — The worker is engaged in an independently established trade, occupation or business. “Under the deferential rational basis standard, the en banc (full panel) court concluded that there were plausible reasons for treating transportation and delivery referral companies differently from other types of referral companies, particularly where the legislature perceived transportation and delivery companies as the most significant perpetrators of the problem it sought to address — worker classification,” Nguyen wrote.

Total load activity jumps 14.2% after Memorial Day slide, Truckstop reports

John Worthen - June 11, 2024

BLOOMINGTON, Ind. — Truckstop is reporting that total broker-posted spot rates in its system “barely changed” for the second straight week while total load activity saw a modest spike. These numbers represent the week ended June 7. According to a Truckstop news release, flatbed spot rates increased for the fourth straight week — the first such streak since January — but dry van and refrigerated spot rates were down from the previous week. Load postings rose sharply after a drop during Memorial Day week. The week-over-week moves in rates and volume were roughly in line with seasonal expectations for each equipment type. Total loads Total load activity rose 14.2% after falling 17% during the holiday week. Total volume was more than 1% below the same 2023 week and about 30% below the five-year average for the week. Total truck postings rose 4% during the holiday week, and the Market Demand Index — the ratio of load postings to truck postings in the system — increased. Total rates The total broker-posted rate ticked up two-tenths of a cent, reversing a decline of the same scope during the previous week. Rates were about 4.5% below the same 2023 week and nearly 8% below the five-year average for the week. The total market rate was marginally closer to the prior-year level than it has been over the last four weeks, but the comparison with the five-year average was the most negative since the beginning of this year. Dry van rates Dry van spot rates declined by 2.5 cents after holding nearly flat during the prior week. Rates were nearly 2% below the same 2023 week and more than 10% below the five-year average. Dry van loads increased 8.5% after falling nearly 14% during the holiday week. Volume was just under 1% below the same 2023 week and nearly 27% below the five-year average for the week. Refrigerated rates Refrigerated spot rates decreased about 4 cents after falling about 11 cents in the previous week. Rates were nearly 3% below the same 2023 week — the weakest year-over-year comparison since week 12 — and almost 8% below the five-year average for the week. Refrigerated loads rose 12.6% after falling nearly 19% during the holiday week. Volume was more than 4% below the same 2023 week and nearly 31% below the five-year average for the week. Flatbed rates Flatbed spot rates rose more than 1 cent after gaining about the same amount during the prior week. Rates were almost 5% below the same 2023 week and more than 7% below the five-year average for the week. Flatbed loads jumped 18% after falling nearly 20% during the holiday week. Volume was about a little more than 1% below the same week last year and more than 34% below the five-year average for the week.

Montgomery Logistics names 2024 Q1 Carrier of the Quarter

Erica N. Guy - June 11, 2024

BIRMINGHAM, Ala. — Montgomery Logistics has selected APS Transport as its 2024 Carrier of the Quarter for quarter one. Since 2020, APS Transport has been a partner of Montgomery’s, according to a news release. “Throughout our four-year relationship, APS Transport has provided invaluable service to us in a niche market, delivering building materials in Maryland and the greater Northeast,” said Maria Smith, Montgomery’s customer service representative. “Their prompt updates, consistent high-level capacity, and industry-best service have proven them to be an excellent partner. Even in downtimes when freight is slow, APS is consistently a team we can rely on, day in and day out.” Montgomery Logistics anticipates continued market growth and mutual success in 2024 through its business alliance with APS Transport, the news release notes. “Transportation is a high-stress industry, but working with Montgomery Logistics has been a wonderful experience. They have an awesome team, just great people,” said Kelvin Chacon of APS Transport.