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Multi Service Fuel Card’s Jessica Dotson appointed to WIT Foundation board

OVERLAND PARK, Kan. — Jessica Dotson, director of business development for Multi Service Fuel Card, has been appointed to the board of directors for the Women In Trucking Foundation. The Women In Trucking Foundation, an arm of the Women In Trucking association, is a nonprofit organization that supports ambitious students, drivers and professionals in the trucking industry who seek to grow their skills through classroom and vocational training. “I am truly honored and excited to join the Women In Trucking Foundation board,” Dotson said. “This opportunity not only allows me to contribute to a cause I’m deeply passionate about, but it also empowers me to be a catalyst for change amongst women within the industry. I’m eager to roll up my sleeves and drive meaningful change alongside my fellow board members.” Dotson, who is co-owner of Dotson Transportation and the wife of an owner-operator, joined Multi Service Fuel Card in 2018 to spearhead the development of the company’s account management team. A statement from Multi Service Fuel Card describes Dotson as a professional who has a passion for the trucking industry and has a mission to foster positive change and growth within the trucking industry. “I’m incredibly proud to see Jessica Dotson appointed to the Women in Trucking Foundation Board,” said Aaron Decker, CEO of Multi Service Fuel Card. “Her dedication to fostering diversity and inclusion within our industry aligns perfectly with our company’s values. I have no doubt that she will bring invaluable insights and leadership to the board, further advancing the cause of gender equality in trucking.”

PGT Trucking honors more than 150 safe drivers

ALIQUIPPA, Pa. — More than 150 safe drivers were recognized by PGT Trucking Inc. during the company’s annual awards event, held at the Acrisure Stadium in Pittsburgh, Pennsylvania, May 18. For more than 20 years, PGT has hosted the ceremony to honor the company’s drivers, office staff and their guests. Honorees included 46 Million-Mile Drivers, 104 Safe Drivers and 24 Premier Professionals. According to a statement released by the carrier, these drivers are “prime examples of excellence at PGT Trucking and throughout the transportation industry.” To achieve Million-Mile status at PGT, drivers must drive 1 million miles or more without a safety incident. PGT’s Safe Drivers are those who have driven for the company for more than five years, but less than 1 million miles, without a safety incident. Drivers honored as Premier Professionals are the safest, most reliable drivers in the company’s fleet, who consistently maintain superior performance levels. “Every year, we honor the numerous proud Professional Million-Mile and Safe Drivers who play a significant role in the overall success of PGT,” said Pat Gallagher, CEO of PGT Trucking. “No matter the circumstances, these drivers remain committed to delivering each load in a safe and timely manner. It is their hard work and dedication that gives PGT the reputation we have today.” This year’s top award winners include: Bob Cowart, Terminal Manager of the Year; Sam Thompson-Graves, recipient of the Bill Wright Award for Team Player of the Year; David Legendre and Cole Welham, PGT’s MVPs of the Year; Paul Vargo, recipient of the President’s Award; Angelo Villavicencio, Safety Professional of the Year; Ross Tindall, recipient of the David Levin Award for Company Driver of the Year; Bogdan Yakimiv, recipient of the Harry “Buster” Barnes Award for Independent Contractor of the Year; Josh Myers, Rookie Driver of the Year; Dustin Show, Certified PRO Trainer of the Year; and Steve Corfee, recipient of the Terry “Kuz” Kusniar Award for Premier Professional Driver of the Year. Three new Million-Mile Drivers were recognized this year: Keith Ackerman, Raymundo Barboza and Ken McKinney. In addition, Million-Mile Driver William Redding won this year’s grand prize — a brand-new Ford-150 pickup. “Our Million-Mile and Safe Drivers show an unwavering commitment to safety, setting the standard for excellence across the PGT fleet,” said Gregg Troian, president of PGT Trucking. “These proud professionals stand above the rest at PGT, and I am immensely proud of their accomplishments.”

Institute a comprehensive safety plan to help ensure fleet safety – Part 2

I’m sure my riveting column about strategically interviewing candidates as part of your comprehensive safety plan is what’s drawn you back for the highly anticipated Part 2. (Thanks to both of you for contributing to my delusions of grandeur.) But on to business. Now that you eliminated some of the knuckleheads through the recruiting process discussed in Part 1 (if you missed it, click here), let’s talk about safety training. I’ve taken the liberty of anticipating some of the most-asked questions on the topic. If you have additional thoughts or questions, let me know. When should safety training start? I don’t pretend to be the most tech-savvy person, but like many people my age, I’ve allowed myself to be dragged along by the younger generation. I’ve been assured the constant change and updates to our technology is an inevitable part of being a successful business. While I will not give specific recommendations on systems, I’m aware many training platforms now offer the option of assigning videos and training materials before candidates even show up to orientation. Drug testing is more commonly completed in advance now too. However, training in advance might seem like a heavy, and even wasteful, administrative burden. “Why would I invest in training up front when 20% of my candidates may not even show up to orientation?” you ask. That’s a fair point — but let’s debate it for a minute. Human nature dictates that the more time we invest in something, the more committed we become to seeing it through. In addition, when exposed to the same information multiple times, we’re more apt to like it, to believe it and (this is very important) remember it. We see this in advertising, news, music and popular culture in general. So, do I believe providing safety training before orientation could improve your show rate with more prepared candidates who better understand and are interested in the work you’ll ask them to do? Absolutely. “I thought this was a safety article, not a psychology article!” I can hear you saying. Right! Let’s get back on track. Next question…. What topics make sense for advance safety training? Training materials showcasing your unique safety protocols for your company’s equipment and freight would be a great introduction. This shows recruits how you stand out and starts drilling the information they’ll need to have to be successful at your specific company. These are things they very likely did not learn in CDL school or at another company. For more general training, Smith System training or DOT regulation training can benefit drivers at any company. Providing these training opportunities in advance also reinforces to candidates that you have a core value for safety. Ideally, it also helps further narrow your pool to those who share a value for safety or at least for learning. If the training is presented by your safety team with photos or videos, you have the added benefit that it will acquaint your future drivers with your team early on, making them more accessible and familiar. How many times have you had a driver make a costly mistake because they were afraid to call the safety director and admit they didn’t know what to do? The more familiar employees are with your safety team members, the less intimidating it will be to make that call in the future. On the other hand, I wouldn’t be worth my salt as a lawyer if I didn’t caution you to be VERY thoughtful when choosing what you put into writing or record as you prepare these materials. While it’s great for your safety team to be personable and approachable, your company should never seem cavalier about safety. Any safety training you provide could be scrutinized in the event of a lawsuit. You should be comfortable with showing any piece of your training (possibly cut down and taken out of context) to a jury. Getting the opinion of an attorney who’s knowledgeable in transportation lawsuits and verdicts could save you from making a well-intentioned mistake when attempting to connect with your drivers. How will we make sure these materials are even completed? Well, that depends on your systems and your company culture. Some training platforms can track a student’s progress and determine whether a video session was played in its entirety or was closed out early. You could also build out quizzes to measure trainees’ comprehension. As far as incentives go, I’m a “use-a-carrot-instead-of-a-stick” guy. Perhaps those who complete their videos are first up to be placed in a truck, or get first pick of a truck. Maybe they get a bonus at the beginning or end of orientation, or maybe offer a free shirt or hat or other item that will be useful on the truck. If you’re more of a “stick” person (with the word stick meaning reprimands, not the drawing) and can build the administration to track it, you might require that training be completed before scheduling orientation or purchasing the applicant’s transportation to orientation. You’ll certainly want to work out this piece before you get started. There is no sense developing safety training no one will complete. One last note: While I’m writing these articles in the order a candidate enters and moves through your company, this is not necessarily a step-by-step chronological guide for implementation. If you enhance your safety-mindedness at any step in the career of an employee at your company, I’m sure you’ll reap benefits. If you missed Step 1, which offers suggestions for interviewing prospective employees, I recommend you click here to catch up. It’s important to find out about a candidate’s attitude about safety in addition to checking their safety history. Watch for Step 3 in the next Ask the Attorney column. 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. 

Cargo thefts trending up, could get worse this weekend

JERSEY CITY, N.J. — While many are looking forward to the three-day Memorial Day weekend, thieves see the holiday as a chance to cash in on unsuspecting victims. According to a report from CargoNet, 25 cargo thefts were reported in first quarter of 2024. That is  a 46 percent increase from 2023’s third quarter and a 10% jump from last year’s fourth quarter reporting period. CargoNet says reasons for such an uptick in theft include fewer employees working and shipments sitting for longer periods during the extended weekend which “creates a tempting time for hijackers to strike.” Trucking businesses must be prepared to protect themselves against heists this MDW, especially when last year’s data found there has been a rise in thefts during the holiday over the last five years. More troubling trends include a total of $154.6 million worth of goods were stolen during the first quarter of 2024. CargoNet states that from 2018-2022, there were 125 cargo thefts specifically reported during Memorial Day Weekend. And it is a nationwide trend with the top targeted statesi include California (with a +72% year-over-year increase), Illinois (with a +126% year-over-year increase), and Texas (with a +22% year-over-year increase).

Hyundai, Plus to build 1st autonomous fuel cell Class 8 electric tractors in US

LAS VEGAS & SEOUL, South Korea — Hyundai Motor Company and autonomous driving software firm Plus have unveiled what they are billing as the first Level 4 autonomous Class 8 hydrogen fuel cell electric truck in the U.S. The truck made its debut on May 22 at the Advanced Clean Transportation (ACT) Expo in Las Vegas. The Level 4 autonomous XCIENT Fuel Cell truck is undergoing initial autonomous driving assessments in the U.S., making it the first-ever Level 4 self-driving test on a Class 8 fuel cell electric truck to take place in the country, a news release states. “The collaboration seeks to show that autonomous hydrogen fuel cell trucks can help make trucking safer, more efficient and more sustainable,” the Hyundai and Plus said in a joint statement. Level 4 vehicles can intervene if things go wrong or there is a system failure. In this sense, these vehicles do not require human interaction in most circumstances. However, a human still has the option to manually override. Level 4 vehicles can operate in self-driving mode. But until legislation and infrastructure evolves, they can only do so within a limited area (usually an urban environment where top speeds reach an average of 30 mph). This is known as geofencing. “We are excited to showcase our collaboration with Plus to test Level 4 autonomous driving technology with our Class 8 XCIENT Fuel Cell truck,” said Martin Zeilinger, executive vice president and head of commercial vehicle development at Hyundai. “Hyundai Motor has been driving the energy transition paradigm with our advanced fuel cell technologies. By adding autonomous capabilities to our world’s first mass-produced hydrogen-powered XCIENT Fuel Cell truck, Hyundai is looking forward to providing fleets and vehicle operators additional solutions that enhance road safety and freight efficiencies thanks to Plus’s industry-leading autonomous driving technology.” First introduced in 2020, Hyundai Motor’s XCIENT Fuel Cell truck has conducted commercial operations in eight countries worldwide. According to the Hyundai, the truck has established a successful track record of real-world applications and technological reliability. At last year’s ACT Expo, Hyundai introduced XCIENT Fuel Cell tractor, the commercialized Class 8 6-by-4 fuel cell electric model, powered by two 90kW hydrogen fuel cell systems and a 350kW e-motor, providing a driving range of over 450 miles per charge even when fully loaded. Plus’s SuperDrive solution is being deployed across the U.S., Europe and Australia. The system uses a combination of cutting-edge sensors, including LiDAR, radar and cameras, to provide surround perception, planning, prediction and self-driving capabilities. “We are thrilled to collaborate with Hyundai Motor Company on this important initiative to create more sustainable and safe transportation options. A decarbonized future with autonomous hydrogen fuel cell electric trucks that also improve safety and efficiency is one that Plus is proud to support with our cutting-edge autonomous driving technology,” said Shawn Kerrigan, COO and Co-Founder at Plus. Below is a video about the truck.  

ACT Research: Spot rates remain below year-ago levels

COLUMBUS, Ind. — Slowing US Class 8 tractor fleet growth, while roughly a year later than price signals suggested, will help move the cycle forward, and how quickly it affects rates will depend mainly on freight demand and fleet productivity, according to the latest release of the Freight Forecast: U.S. Rate and Volume OUTLOOK report from ACT Research. “Goldilocks economic conditions of strong growth and disinflation are largely holding, and a rising tide should eventually lift all boats, but at the moment, the freight growth being generated by the economy is being handled by private fleets and railroads,” said Tim Denoyer, ACT Research’s vice president and senior analyst. “Private fleets have added more than the industry’s net capacity growth in the past year as the for-hire sector has contracted. The productivity of this new capacity is now being tested. Most private fleet operations are one-way, and though some are adept at filling backhauls in the for-hire market, most are not.” Denoyer also noted that to the extent that private fleets are successful filling backhauls, it is further delaying the for-hire rate recovery, and this is likely a factor in lingering spot market softness. “Backhauls are not mission critical for private fleets, and as a result, the lower productivity of this equipment as seasonal volumes pick up should support higher spot volumes,” he shared. Denoyer said that spot rates moved up a bit more than normal during Roadcheck this year, but except for two days last week, spot rates remain below year-ago levels. “The load/truck ratio is now up year-over-year, and the trend of the past six months has improved as capacity has contracted,” Denoyer said. “And even as private fleet capacity has come in more recently, spot volumes are starting to pick up. While we don’t see a tight market, these tighter dynamics suggest further increases in spot rates.”

Spot rate gains during Roadcheck ‘were weakest in years,’ Truckstop reports

BLOOMINGTON, Ind. — During the week ended May 17, week-over-week gains for dry van and refrigerated broker-posted spot rates were the smallest since 2020, while van rates saw their weakest posting since 2017. And for flatbeds? Spot rates there were sluggish as well, according to Truckstop’s latest report. “Broker-posted spot rates in the Truckstop system increased during the week ended May 17 (week 20), but the gains in each of the three main equipment types were smaller than typical for a week that includes the International Roadcheck inspection event,” a Truckstop news release states. “International Roadcheck, which this year was held May 14-16, disrupts the spot market because the additional roadside inspection activity during the annual event sponsored by the Commercial Vehicle Safety Alliance (CVSA) results in many drivers taking time off to avoid the hassle and scrutiny.” Timing complicates an analysis of Roadcheck’s effect on the market over time a bit, Truckstop notes. “Before 2020, Roadcheck always occurred during the first week of June,” the news release states. “CVSA had planned to move Roadcheck to May in 2020, but lockdowns postponed the event until after Labor Day. The 2021 Roadcheck was in early May, and the event has been in mid-May since 2022.” Total load activity increased 11.6% during the week. Total volume was 5.5% below the same 2023 week and more than 24% below the five-year average for the week. The Roadcheck week volume increase was not as strong as it was last year, but it was comparable to the load activity gains in 2021 and 2022. Total truck postings declined 3%, and the Market Demand Index (MDI) — the ratio of load postings to truck postings in the system — rose to its highest level since the beginning of 2023. The jumps in the MDI were especially pronounced in dry van and refrigerated, which saw larger load posting increases and larger truck posting decreases than did flatbed. Total rates The total broker-posted rate increased just under 3 cents for the smallest gain in a Roadcheck week in at least a decade except for 2020 when rates were basically flat week-over-week. Rates were more than 5% below the same 2023 week and more than 6% below the five-year average for the week. Although the three principal equipment types saw weaker rate gains than usual for a Roadcheck week, specialized saw its largest increase for a Roadcheck week since 2014. However, specialized represents a very small portion of the market. Dry van rates Dry van spot rates rose 7.5 cents for the largest increase since the final week of 2023 but far smaller than the jump of more than 16 cents during Roadcheck week last year. Rates were nearly 3% below the same 2023 week and 8% below the five-year average. Dry van loads rose 20.6% from the previous week for the largest gain since the first week this year. Volume was more than 6% below the same 2023 week and about 19% below the five-year average for the week. Refrigerated rates Refrigerated spot rates rose just under 13 cents for the second largest week-over-week gain this year. The Roadcheck week spot rate increase last year was 29 cents. Rates were 2% below the same 2023 week and nearly 3% below the five-year average for the week. Refrigerated loads rose 24.2% for the largest increase since the week after Thanksgiving last year. Volume was nearly 13% below the same 2023 week and almost 25% below the five-year average for the week. Flatbed rates Flatbed spot rates increased just under 2 cents for the smallest Roadcheck week gain since 2016 except for 2020 when rates were basically flat week-over-week. Last year’s Roadcheck week increase was 4 cents. Rates were almost 6% below the same 2023 week and more than 6% below the five-year average for the week. Flatbed loads increased 5.3% for the largest increase since mid-March. Volume was 3% below the same week last year and about 30% below the five-year average for the week.

PepsiCo set to expand Tesla Semi fleet across California

PURCHASE, N.Y. — PepsiCo Beverages North America (PBNA) is expanding its electric-powered fleet across The Golden State. In the next several months, 50 Class 8 Tesla Semi trucks will operate out of its manufacturing and distribution facility in Fresno, California, and 75 Ford E-Transit electric vans will step-change the electrification of its equipment services fleet across the state, according to a news release. PepsiCo officials say the electric vehicle deployment will help the company progress toward its ambitious pep+ (PepsiCo Positive) goal to reach net zero emissions by 2040. “Our fleet electrification is an important part of our pep+ (PepsiCo Positive) strategy and illustrates how sustainability is a core business strategy at PepsiCo — good for the planet, good for our business, and good for the communities we serve,” said John Dean, President for PepsiCo Beverages North America, West Division. PBNA’s Fresno location is a 170,000-square-foot manufacturing facility with a fleet operation that distributes PepsiCo products including Pepsi, STARRY, Gatorade, Rockstar, Aquafina and more. At the facility, eight 750-kilowatt Tesla chargers and two Tesla Megapack Battery Energy Storage Systems have been installed onsite to power the electric Semis. Across all of PBNA’s 13 locations in California, PBNA is deploying 75 Ford E-Transit electric vans, which will serve a variety of applications, including sales deliveries and service support. The deployment of electric vehicles in Fresno also kicks off a job training program for students enrolled in Reedley College and Duncan Polytechnic High School. The program educating over 100 students, annually, focuses on developing hands-on job training in the field of electric trucks and infrastructure maintenance. “PepsiCo’s participation in the North American Council for Freight Efficiency’s (NACFE) 2023 Run on Less Electric Depot demonstrated the ability to seamlessly integrate electrified Semis into PBNA’s business through the Tesla Semis operating out of PBNA’s Sacramento facility,” according to the news release. “Frito-Lay North America (FLNA) also has a fleet of Tesla Semis that operate out of their Modesto, Calif. facility, and FLNA’s Queens, New York, facility participated in NACFE’s 2023 Run on Less with a fleet of Ford E-Transits.” Expanding PBNA’s electric fleet is supported by a grant provided by the California Air Resources Board, the San Joaquin Valley Air Pollution Control District, and the California Energy Commission as part of their California Climate Investments, a statewide initiative that puts billions of Cap-and-Trade dollars to work.

Freight conditions, adverse weather negatively impact Werner’s Q1 numbers

OMAHA, Neb.– Werner Enterprises’ first quarter results showed financial hits in all sectors. “Freight conditions remained challenging in the first quarter with persistent excess industry capacity driving broad pricing pressure combined with adverse weather and one-off expense headwinds. Despite these market challenges, we focused on controlling the controllables,” said Derek J. Leathers, Werner’s chairman and CEO. “We continued a favorable production trend in One-Way, grew revenue per truck in dedicated and realized outsized volume growth in our power only offering within Logistics. We generated solid cash flow, executed on additional cost takeout, reduced our debt and repurchased shares during the quarter.   Total revenue for the quarter rang in at $769.1 million, a decrease of $63.6 million compared to the prior year quarter, according to a company news release. This was due to a $37.2 million, or 6%, decrease in truckload transportation services (TTS) revenues and a decline in logistics revenues of $26.2 million, or 11%, Werner officials noted. A portion of the TTS revenue decline was due to $15.3 million lower fuel surcharge revenues. Net of trucking fuel surcharge revenues, consolidated total revenues decreased $48.3 million, or 6%, during the quarter.  TTS operating income decreased $30.1 million, and TTS adjusted operating income decreased $31.0 million. Logistics had an operating loss of $2.3 million, a decrease of $7.3 million, and Logistics had an adjusted operating loss of $1.2 million, a decrease of $7.5 million. Corporate and other (including driving schools) operating income decreased $0.4 million.  In the truckload sector, Werner reported revenues of $551.1 million, a decrease $37.2 million year-over-year. Operating income of $20.8 million decreased $30.1 million year-over-year. Average segment trucks in service totaled 7,935, a decrease of 626 trucks year-over-year, or 7%. Dedicated unit trucks at quarter end totaled 5,080, or 65% of the total TTS segment fleet, compared to 5,345 trucks, or 63%, a year ago. Average revenues per truck per week, net of fuel surcharge, increased 2.8% for TTS and increased 1.3% for dedicated.   During the first quarter of 2024, dedicated experienced net reduction in average trucks, down 4.1% year-over-year and down 1.7% sequentially. Dedicated average revenues per truck per week, net of fuel surcharge, increased 1.3% year-over-year, and despite a highly competitive environment and isolated fleet losses, pipeline opportunities remain healthy and client retention remains strong at more than 93%. One-way truckload volume during first quarter 2024 was steady and seasonally consistent, but revenues remained challenged by ongoing rate pressure. One-way revenues per total mile was down 5.1% and fleet size was smaller year-over-year (down 12.7%), offset with the fourth consecutive quarter of higher total miles per truck per week (up 11.3%). As a result, One-Way Truckload miles were down only 2.8% despite a more sizable fleet reduction year-over-year.  While we cannot control the macro,” Leathers said, “we are focused on our long-term strategy and structural improvements to position Werner well for capitalizing on a tighter market.” 

ATA reports April slide for Truck Tonnage Index

WASHINGTON — The American Trucking Associations’ (ATA) advanced seasonally adjusted For-Hire Truck Tonnage Index for April shows a decline of 1.2%. This comes after a decrease of 2.2% in March. The April index equaled 111.7 (2015=100) compared with 113.1 in March. In calculating the index, 100 represents 2015. “The truck freight market remained soft in April as seasonally adjusted volumes fell for the second straight month,” said American Trucking Associations Chief Economist Bob Costello. “With a rebound in freight remaining elusive, it is likely that additional capacity will leave the industry in the face of continued softness in the market.” Compared with April 2023, the index fell 1.5%, which was the 14th straight year-over-year decline. In March, the index was down 1.3% from a year earlier. The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 112.2 in April, 1.7% below March. ATA’s For-Hire Truck Tonnage Index is dominated by contract freight as opposed to spot market freight. Trucking serves as a barometer of the U.S. economy, representing 72.6% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled 11.46 billion tons of freight in 2022. Motor carriers collected $940.8 billion, or 80.7% of total revenue earned by all transport modes. The ATA notes that “these are preliminary figures and subject to change in the final report issued around the fifth day of each month. The report includes month-to-month and year-over-year results, relevant economic comparisons, and key financial indicators.”

ACT’s final April numbers on Class 8 tractor orders show uptick

COLUMBUS, Ind. — It’s been a bumpy ride for for-hire carriers, as evidenced by a 14-year low in net income among publicly traded truckload carriers. But things may soon be looking up, according to ACT Research’s latest State of the Industry: North American Classes 5-8 report. “After a year of cost-defying buying by private fleets, we project this month is likely the last for above replacement-level U.S. Class 8 tractor capacity additions,” the report states. Final North American Class 8 net orders totaled 15,850 units in April, 16,900 seasonally adjusted, up 32% against last year’s easiest comparison. U.S. Class 8 tractor orders fell 25% year-over-year in April. Total Classes 5-7 orders rose 1.9% year-over-year to 18,863 units, or 19,300 seasonally adjusted. “April orders reinforce our belief that in addition to weak for-hire market conditions, private fleet expansion is slowing,” according to Kenny Vieth, ACT’s president and senior analyst. ”This would be welcome news for the beleaguered for-hire market, as the journey back to healthier financials starts with capacity restraint.” Vieth added that the DAT van load-to-truck ratio, thanks to contracting spot market equipment levels, has pushed up to 4.0, seasonally adjusted, from an average of 3.3 in 2023.

Behind the scenes: DAT’s Erika Voss, Lisa Henshaw seek to create innovative solutions

In some ways, Erika Voss and Lisa Henshaw of DAT Freight and Analytics are as different as night and day. In all the ways that matter most, however, both executives are cut from the same cloth. Both are innovative leaders who are attracting national attention in their respective fields of expertise as they work to keep data and people safe. In addition, both Voss and Henshaw are excelling in what is traditionally a man’s industry, reflecting changing perceptions throughout trucking. Voss, who just this year became DAT’s vice president of information security, took a circuitous route to her role, beginning her professional life as a corrections officer before breaking into information technology, a field that’s almost as male-dominated as trucking. Henshaw, a career human resources professional, has been a fixture at DAT since 1999. In her 25 years with DAT, she’s been a part of building the Portland, Oregon-based freight load board and data analytics agency into a leader in its field. She now serves as the firm’s vice president of human resources. “I have to admit to being fairly fortunate to come into an industry where human resources was seen as a business partner from the very beginning,” said Henshaw. “Going back to when I started, I think the key thing that employees were looking for was stability more than anything else. That was something we were able to offer. “DAT has been kind of a rock in this industry for a while, and I mean that in a good way,” Henshaw continued. “Employees wanted us to be clear as to what the expectations were, and then come to work and do a good job. It was fairly simple. Also, we were smaller, so we were able to operate more like a family, all in one building.” If Henshaw represents the foundational elements of the company’s growth, Voss is absolutely a product of the digital age, working to foil hackers and other cyber threats on a daily basis. In so doing she finds herself singing familiar refrains when it comes to deflecting the assaults by the bad guys, even as it applies to future technologies. “It doesn’t matter what company it is, and I don’t think it matters what vertical it is. At the end of the day, you’ve got to nail the basics,” Voss said. “You’ve got to have good cyber ‘hygiene.’ You’ve got to manage your passwords. You’ve got to have multifactor authentication on the apps you use. You’ve got to understand what actually happens when you click on a link.” As an industry, Voss said, trucking stakeholders need to be better about educating drivers about cybersecurity, including the increasing role of artificial intelligence in various systems. “Artificial Intelligence is the future, but it’s no different than any other emerging technology: You want to have ethical use and ensure things are done in a secure fashion,” Voss said. “But it’s also recognizing that for every good thing, there’s also a bad actor waiting to come and hack it and use it against you. “You have to realize that phishing attacks are going to be harder, smarter, faster, more efficient,” she continued. “It’s really continuing that education, awareness and training journey that actually matters.” Both Henshaw and Voss are working in their respective fields to make innovations in the industry. One of Henshaw’s latest projects has been updating and recasting the company’s corporate culture into a codified set of values. While a lot of effort goes into identifying and writing the values, she says, this is actually the “easy” part of the process. The challenging part is consistently reinforcing those values until they become routine for the firm’s employees. This is accomplished by various means. “(The word) ‘culture’ means different things to different people,” she explained. “These (values) are what help define DAT’s culture: Acting with integrity, executing with excellence, delivering customer value, innovating, and growing and together we thrive.” Henshaw says DAT works to support its core values in a variety of ways. “We have a Spot Award program, and those are made public. On an annual basis, at minimum, we call out those who have truly performed well and recognize them in a public online/in-person all-hands setting,” she said. “We also do quarterly reviews and the only questions that we really use to assess performance are the five core values.” Similarly, Voss is working to leverage the company values to develop a new facet of corporate culture — one that solidifies IT security protocols as routine. Doing this is an imperative not only internally, she says, but also in interactions with external vendors and clients, who may not have such robust data security practices. “If you look at the broker dynamic, they are more sophisticated because they have people who do network security, or they might have a security engineer or a director of information security,” Voss said. “If you think about the shippers and the carriers, many of these are one-off, mom-and-pop shops where the husband is driving the rig down the road and the wife is sitting at home at a kitchen table telling him where to go next. “(If you just) put a smartphone in their hands and say, ‘Here’s multifactor authentication. Here’s a code. Here’s how you click a link,’ they don’t understand what that shit is — and they don’t want to,” she continued. Therein lies the “million-dollar problem,” according to Voss. “How do you reach those people and teach them good cyber hygiene and cyber best practices? That’s where we need to be better about teaching people password management and password health in general,” she explained. A native of Washington state, Voss holds a doctoral degree in cybersecurity from Northcentral University in Arizona. She has previously worked for Fortune 500 companies Capital One, Salesforce and Microsoft. She was also recently recognized by Nasdaq as one of five women making cybersecurity history. Henshaw earned a bachelor’s degree in applied mathematics from the University of California-San Diego, and she holds certificates in human resources management and compensation. She is a sought-after presenter for national conferences as well as a frequent guest on national podcasts on the topics of leadership and innovation in human resources.

Cummins reports year-over-year net income increase after Atmus separation

COLUMBUS, Ind. — Cummins’ first quarter 2024 revenue hit $8.4 billion, with a net income of $2.0 billion, according to a financial report. This represents all company sectors. A number of company components factored into the financials that reflected strong demand, according to Jennifer Rumsey, Chair and CEO.  “We delivered solid profitability and also completed the separation of Atmus (a filtration technology company), allowing Cummins to continue its focus on advancing innovative power solutions and positioning Atmus to pursue its own plans for profitable growth,” Rumsey said. “I am deeply appreciative of our Cummins employees across the globe, whose broad expertise and diverse perspectives are driving our ability to innovate for our customers and meet global demand.”  Cummins’ earnings before interest, taxes, depreciation and amortization (EBITDA) was 30.6% of sales, representing an increase year-over-year of 14.5%  Cummins separation with Atmus resulted in $1.3 million in revenue. As a result of the separation, the company is raising its expectations for full year 2024 revenue. First quarter revenues decreased 1% year over year, as did international revenues due to lower demand in China and Europe.  “We have raised our expectations on revenue and profitability for 2024 due to continued demand for Cummins’ products and services. We do still expect slowing demand in some of our key markets in the second half of the year,” said Rumsey. “Despite lower sales, Cummins is in a strong position to keep investing in future growth, bringing new technologies to customers and returning cash to shareholders.”  Based on the current forecast, Cummins projects full year 2024 revenues to decline year over year by 2%-5%. EBITDA guidance reflects an increase over the prior guidance of 14.4% and 15.4%.  In its distribution segment, sales were up 5% to $2.5 billion. EBITDA for the segment was $294 million or 11.6% of sales. Revenues in North America and internationally increased 2% and 14%, respectively, with higher revenues driven by increased demand for power generation products and pricing actions.  “Cummins plans to continue to generate strong operating cash flow and returns for shareholders and is committed to our long-term strategic goal of returning 50% of operating cash flow back to shareholders,” said Rumsey. “In the near term, we will focus on reinvesting for profitable growth, dividends and reducing debt.” 

Ongoing freight recession pressures Schneider’s Q1 earnings 

GREEN BAY, Wisc. — Schneider National has reported sagging operating revenue in its first quarter results for the three months ended March 31. “The enterprise continued to feel the pressures of the ongoing freight recession in the first quarter,” said Mark Rourke, President and Chief Executive Officer of Schneider. “However, we did recognize some signs of progress in market dynamics and in our commercial efforts, and performance of all segments improved through the quarter.”  Rourke said the company is “taking actions to improve asset productivity, maintain price discipline and execute on our cost initiatives.” Schneider reported operating revenues of $1.3 billion, down from $1.4 billion for the same period in 2023. Income from operations, reported at $28.7 million, was down from $114.6 million in 2023.  Truckload revenues (excluding fuel surcharge) for the first quarter of 2024 were $538.1 million, an increase of $1.1 million, compared to the same quarter in 2023. Results were driven by dedicated organic and acquisitive growth, offset by lower network pricing and volumes year over year. Truckload revenue per truck per week was $3,853, a decrease of 4% compared to the same quarter in 2023.  In the Truckload segment, income from operations was $14.9 million in the first quarter of 2024, a decrease of $47.7 million, or 76%, compared to the same quarter in 2023. This decrease was accredited to pricing and volume pressures in the Enterprise network, as well as lower gains on the sale of equipment, costs related to dedicated new business start-ups, and ongoing inflationary costs. Truckload operating ratio was 97.2% in the first quarter of 2024 compared to 88.3% in the first quarter of 2023.  “The value of our scale, diversity, partnerships and technology continues to be recognized across our broad shipper base, and our commercial approach is focused on delivering returns commensurate with the value provided. We believe our actions, combined with ongoing operational efforts and strategic investments in our multi-modal portfolio, position us well to be advantaged in the recovery,” Rourke said.  Schneider National has reported that its Q1 2024 operating revenues are down slightly from 2023 numbers. (Courtesy: Schneider National)

Arkansas Trucking Association installs new chairman, director

LITTLE ROCK, Ark. — John Culp and Ross Hoover have been elected as the new chairman and director, respectively, of the Arkansas Trucking Association (ATA). The election was held at the ATA’s annual conference on May 8-10 in Rogers, Arkansas. Culp, who is currently serving as the president of Maverick Transportation since 2016, is also serving a term as chair on the board of the Truckload Carriers Association. “Jeff has offered leadership, friendship and encouragement throughout the last two years while we faced economic, regulatory and supply chain challenges,” said ATA President Shannon Newton. “We thank him for sharing his passion for the industry with us. We look forward to working with John Culp to continue promoting, protecting and serving the trucking community in Arkansas.” Hoover currently holds the general manager position at Rush Truck Centers. He is a former chairman of ATA’s Maintenance & Technology Council (MTC) and has served as chairman of the truck technician committee for the Arkansas Technician Championship. He is also a leader in MTC’s two committees: The Technician Curriculum Advisory Committee and the Carl Tapp Memorial Scholarship, which support the future technician workforce. ATA’s board of directors includes 21 executives who have full-time careers at various carriers and allied companies. “Arkansas has a storied history of trucking companies who have not only shaped the industry in our state but also in our country,” Culp said in his remarks during the conference. “I am proud to be part of Team Arkansas Trucking and can assure you our board of directors and staff will continue to work diligently to serve you and represent our industry.”

April ’24 net trailer orders top last year’s, ACT reports

COLUMBUS, Ind. — Preliminary net trailer orders saw very little change from March to April. At 13,700 units, orders were higher compared to last April, up 21% year over year, according to ACT Research. Seasonal adjustment boosts April’s tally to 17,300 units. Final April results will be available later this month. This preliminary market estimate should be within ±5% of the final order tally, ACT reports. “Against year-ago data, with pent-up demand beginning to wane and supply-chain congestion, for the most part, cleared, order activity continues to meet expectations,” said Jennifer McNealy, director of commercial vehicle market research and publications at ACT Research. Despite the positive year-over-year comparison, net orders remain challenged by a backdrop of weak for-hire trucker profitability, albeit with some green shoots of improvement beginning to show, McNealy noted. “Anecdotal commentary from trailer manufacturers and suppliers through the past several months have indicated this slowing, as they have shared that orders are coming, but at a more tepid pace when compared to the last few years,” she said. Fleets are due to starting to make more money later this year, which will increasing their equipment buying abilities, according to ACT. But “the impact likely will be muted for the trailer industry, as we continue to expect their willingness to spend those available dollars will lean toward the purchase of new power units ahead of the EPA’s implementation of 2027 regulations, which we believe has already begun,” McNealy shared. McNealy said that additional anecdotal information that ACT has gotten wind of from those on the front lines of the trailer industry is that the pause button is expected to remain pressed during this year of transition. “The industry’s largest segments remain under pressure, cancellations are anticipated to continue their oscillation into and out of elevated territory as dealers and fleets recalibrate their inventory and immediate needs, and external forces like the U.S. and Mexican presidential elections and interest rates remain on the closely watched list,” McNealy concluded.

Kutzler Express partners with Netradyne on driver safety

SAN DIEGO — In an effort to enhance safety and efficiency among their fleet drivers, Kutzler Express is using artificial intelligence (AI) powered fleet safety firm Netradyne’s dual-facing safety cameras and driver-coaching technology. According to both companies, the adoption of Netradyne’s technology has resulted in a noticeable safety impact. The average GreenZone Score — a number between one and 1,000 that corresponds to a driver’s safe driving habits — of Kutzler’s fleet rose from 924 in 2023 to 949 in 2024, and driving time without an alert is around 95.5%, a news release notes. Kutzler drivers receive roughly 10 times more DriverStars — points awarded for good, safe and skilled driving behaviors — than severe hard-braking events. Based on the 1.2 billion miles analyzed by Netradyne, Kutzler ranked as one of the safest transportation companies in the U.S. compared to the top 40 truckload companies, the news release states. “Our team’s safety and well-being are critical to our operations and Kutzler’s commitment to excellence is evident in everything we do, including the partners we choose to work with,” said Matt Winkler, safety manager at Kutzler Express. “Netradyne’s safety cameras add a critical level of security for our drivers. Access to our driver’s data helps us maintain a high standard of excellence by quickly identifying and addressing behaviors that need to be improved and rewarding safer driving behaviors.” In addition to improving driver safety and allowing the company to operate at a higher standard, Kutzler officials say that Netradyne’s technology helps protect against theft, vandalism, fraud and abuse from accident-related incidents. “We love working with customers like Kutzler who are committed to safety as an organization because it illustrates the best outcomes that can be delivered through our GreenZone scoring system and the true impact that safety can have on the bottom line,” said Adam Kahn, president of Netradyne. “Through Netradyne’s industry-leading Driver•i, Kutzler has curbed distracted driving, improved driver safety and secured crucial evidence for insurance cases, lowering their claims in addition to the secondary benefits of lower turnover.”

RXO sees double-digit brokerage volume growth for fourth consecutive quarter 

CHARLOTTE, N.C. — RXO, a trucking brokerage business, has reported in its first quarter earnings for 2024 that with four consecutive quarters of double-digit increases in brokerage volume, company-wide sales are the largest they have been in four years.  “In the first quarter, gross margin increased every month, and we enter the second quarter with improve momentum,” said Drew Wilkerson CEO at RXO. “We expect to deliver a significant increase in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) sequentially.”   Wilkerson noted that RXO continued to deliver exceptional brokerage volume and strong margin performance for the first quarter of 2024, achieving a gross margin of 14.2%. He added, “Our complementary services continue to perform well.”  Brokerage contract volume increased by 18% year-over-year in the first quarter. Full truckload volume growth registered 8% growth, while less than truckload volume growth increased 29%.  Company-wide, financial reports were not as encouraging, however. RXO’s revenue was $0.9 billion for the first quarter, compared to $1.0 billion in the first quarter of 2023. Gross margin was 17.4%, compared to 18.7% in the first quarter of 2023.  The company reported a first-quarter 2024 generally accepted accounting principles (GAAP) net loss of $15 million, compared to $0 of net income in the first quarter of 2023. The first-quarter 2024 GAAP net loss included $12 million in transaction, integration and restructuring costs. The adjusted net loss in the quarter was $4 million, compared to adjusted net income of $13 million in the first quarter of 2023.  As for the future, Wilkerson says, RXO is well positioned.  RXO is expected “to continue to outperform and deliver significant earnings growth when the market improves,” he said. 

New study highlights impacts of inefficient freight movement

ENCINITAS, Calif. — A new study by Flock Freight and Drive Research shows that in 2023, 43% of truckloads moved partially empty, with an average of 29 linear feet of unused deck space. That equals one in four truckloads moving completely empty. The study, titled “Wasted Space, Wasted Dollars: The Economic Impact of Inefficient Freight,” surveyed 1,000 transportation decision-makers in the U.S. from various industries, providing a comprehensive view of the challenges and strategies employed to drive efficiency. “Historically, the U.S. truckload market has been locked into a binary concept of ‘full’ or ‘empty’ when it comes to trailer capacity. We are challenging both Shippers and Carriers alike to rethink this,” said Chris Pickett, chief operating officer at Flock Freight. ”With 43% of truckloads moving only partially full, there’s a massive opportunity for businesses to maximize trailer utilization and reduce overall transportation spend with our Shared Truckload solution.” According to Flock Freight, the new research highlights the hidden costs of LTL shipping, with the average enterprise shipper incurring up to $6.3 million annually in damage and loss claims. Additionally, unexpected accessorial fees and the time spent by employees managing these issues add to the financial burden on businesses. “Exiting a deflationary phase of the truckload freight cycle in 2024, the industry braces for heightened economic impacts,” a news release states. “As a result, 90.8% of shippers have raised their budgets by 1 to 10% to navigate the expected market shifts.” The study also uncovered growing concerns around fraud and theft within the freight industry. In 2023, 89% of shippers were affected by these issues, with one in every 43 shipments impacted. This not only leads to direct financial losses but also causes a ripple effect of reduced earnings, unexpected fines and a decline in customer satisfaction. To read the full report, click here.

Clean Harbors exceeds first quarter financial expectations 

NORWELL, Mass. — Clean Harbors has reported its financial results for the first quarter, and the company exceeded expectations.   “Strong demand for our services resulted in a better-than-expected performance in the first quarter,” said Mike Battles, co-chief executive officer at Clean Harbors. “We delivered record Q1 Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) driving year-over-year margin improvement. Our Environmental Services (ES) segment once again led the way. ES continues to benefit from a growing interest in our broad array of services, high-value disposal and recycling waste streams, pricing execution and an expanding project pipeline, fueled by customer demand.”   Clean Harbors delivers a broad range of services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance and recycling services.   Revenues grew 5% to $1.38 billion compared with $1.31 billion in the same period of 2023. Income from operations increased to $125.5 million compared with $121.0 million in the first quarter of 2023.  Net income was $69.8 million, or $1.29 per diluted share compared with $72.4 million, or $1.33 per diluted share, for the same period in 2023, and $74.1 million, or $1.36 per diluted share on an adjusted basis in the prior year period.   Adjusted EBITDA grew 7% to $230.1 million compared with $215.1 million in the same period of 2023.  “Our ES segment delivered a 16% increase in Adjusted EBITDA and a 130-basis point margin improvement year-over-year on 10% revenue growth,” said Eric Gerstenberg, co-chief executive officer at Clean Harbors. “All of our ES businesses grew revenue from a year ago, led by Technical Services with growth of 11%. While incineration utilization came in as expected at 79%, average incineration price was up 6% reflecting pricing actions and higher-value waste streams into our network. Although landfill tonnage was down modestly from a year ago due to weather-related impacts on the West Coast, average price per ton increased 16% on healthy drum volumes and base business. Safety-Kleen Environmental Services continued its strong performance with revenue growth of 9%. On a mix of organic growth and contributions from acquisitions, our Industrial Services and Field Services grew 7% and 10%, respectively, as demand remained robust.”  In the second quarter of 2024, Clean Harbors expects Adjusted EBITDA to grow 7% to 8% from the second quarter of 2023. For full-year 2024, Clean Harbors expects:  Adjusted EBITDA in the range of $1.1 billion to $1.15 billion or a midpoint of $1.125 billion, which represents 11% growth year-over-year. This Adjusted EBITDA range is based on anticipated GAAP net income in the range of $376 million to $419 million.  Adjusted free cash flow in the range of $340 million to $400 million, or a midpoint of $370 million, which includes approximately $65 million of spending related to the Kimball incinerator and $20 million for its Baltimore expansion. This range is based on anticipated net cash from operating activities in the range of $740 million to $830 million.   “Underlying market conditions, such as reshoring and the regulatory environment, are driving favorable demand for our services, which should allow us to build on our ES momentum in the coming quarters,” Gerstenberg said.