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Trucking industry feels impact of Key Bridge collapse even as bypass channel opens

Trucking industry feels impact of Key Bridge collapse even as bypass channel opens

The Associated Press -

BALTIMORE — A tugboat pushing a fuel barge was the first vessel to use an alternate channel to bypass the wreckage of Baltimore’s collapsed Francis Scott Key Bridge, which had blocked traffic along the vital port’s main shipping channel. The barge, which was supplying jet fuel to the Department of Defense, left late Monday, April 1, and was destined for Delaware’s Dover Air Force Base, though officials have said the temporary channel is open primarily to vessels that are helping with the cleanup effort. Some barges and tugs that have been stuck in the Port of Baltimore since the collapse are also scheduled to pass through the channel. Officials said they’re working to open a second channel on the southwest side of the main channel that will allow for deeper draft vessels, but they haven’t said when that might open. On Tuesday, Maryland Gov. Wes Moore visited one of two centers that the Small Business Administration opened in the area to help companies get loans to assist them with losses caused by the disruption of the bridge collapse. U.S. Sen. Ben Cardin, a Democrat who accompanied Moore in meetings with potential loan applicants, said he spoke with truck drivers who relied on the port to supply their cargo. They are among those feeling the immediate economic effects of the collapse, he said, but the ripple effects will be widespread — especially for small businesses, which he called “the growth engine of our nation.” For Alex Del Sordo, who owns a marina and waterside restaurant near the collapse site, said the future economic landscape is largely a mystery. So far, his businesses have been busy servicing boats involved in the recovery and salvage operation and offering discounted meals for first responders. He said he and his partner are considering applying for a low-interest loan. He anticipates a decrease in pleasure boating because boats moored in Baltimore’s harbor are temporarily trapped there. But he said rebuilding the Key Bridge will likely bring a large influx of labor and maritime traffic into the area, which could help some local businesses stay afloat. “I think small businesses will have to be creative in what they offer,” he said. Shipping costs and commute times will also increase for the working-class, water-oriented communities on either side of the bridge. In Annapolis, a hearing was scheduled for Tuesday afternoon for a bill authorizing use of the state’s rainy day fund to help port employees who are out of work because of the bridge collapse and aren’t covered under unemployment insurance while the port is closed or partially closed. The bill also would let the governor use state reserves to help some small businesses avoid laying people off and to encourage companies that relocate to other ports to return to Baltimore when it reopens. Lawmakers are working to pass the bill quickly in the last week of their legislative session, which ends Monday, April 8. Crews are undertaking the complicated work of removing steel and concrete at the site of the bridge’s deadly collapse after a container ship lost power and crashed into a supporting column. On Sunday, dive teams surveyed parts of the bridge and checked the ship, and workers in lifts used torches to cut above-water parts of the twisted steel superstructure. Authorities believe six members of a road construction crew plunged to their deaths in the collapse, including two whose bodies were recovered last week. Two other workers survived. Moore, a Democrat, said at a Monday afternoon news conference that his top priority is recovering the four remaining bodies, followed by reopening shipping channels. He said that he understands the urgency but that the risks are significant. Crews have described the mangled steel girders of the fallen bridge as “chaotic wreckage,” he said. “What we’re finding is it is more complicated than we hoped for initially,” said U.S. Coast Guard Rear Adm. Shannon Gilreath. Meanwhile, the cargo ship Dali, which struck the bridge March 26, remains stationary, and its 21 crew members remain on board for now, officials said. Other vessels are also stuck in Baltimore’s harbor until shipping traffic can resume through the port, which is one of the largest on the East Coast and a symbol of the city’s maritime culture. It handles more cars and farm equipment than any other U.S. facility. Jim Roof, a longtime tugboat captain, said he’s waiting for a deeper channel to open before he can leave the harbor. He shook his head, thinking about the thousands of ships that have passed under the Key Bridge during his career. “The system we have is pretty good,” he said, noting that in this case, the absolute worst possible timing caused large-scale disaster. The local nonprofit Baltimore International Seafarers’ Center has been in contact with the crews of some stationary ships. The organization offers support to crew members docked in Baltimore, including transportation for shopping trips and other excursions. Volunteer Rich Roca said seafaring is a challenging job even in the best of times. Crew members often leave their homes and families for months at a time. Some of those stuck in Baltimore are halfway around the world with no return in sight. President Joe Biden is expected to visit the collapse site Friday, April 5, to meet with state and local officials. He has already promised significant federal resources to help the response effort. The bridge fell when it was struck by the Dali, which lost power shortly after leaving Baltimore on its way to Sri Lanka March 26. The ship issued a mayday alert, which allowed just enough time for police to stop traffic, but not enough to save a roadwork crew filling potholes on the bridge. The Dali is managed by Synergy Marine Group and owned by Grace Ocean Private Ltd., both of Singapore. Danish shipping giant Maersk chartered the Dali. Synergy and Grace Ocean filed a court petition Monday seeking to limit their legal liability, a routine but important procedure for cases litigated under U.S. maritime law. A federal court in Maryland will ultimately decide who is responsible and how much they owe. The filing seeks to cap the companies’ liability at roughly $43.6 million. It estimates that the vessel itself is valued at up to $90 million and was owed over $1.1 million in income from freight. The estimate also deducts two major expenses: at least $28 million in repair costs and at least $19.5 million in salvage costs. By Lea Skene, The Associated Press. Contributing to this report were Associated Press journalists Brian Witte in Annapolis; Tassanee Vegpongsa in Baltimore; Sarah Brumfield in Washington; Michael Kunzelman in College Park, Maryland; and Rebecca Boone in Boise, Idaho.

UPS to become the primary air cargo provider for US Postal Service

UPS to become the primary air cargo provider for US Postal Service

The Associated Press -

ATLANTA — UPS will become the primary air cargo provider for the U.S. Postal Service (USPS), replacing FedEx Corp. Following a transition period, UPS will move the majority of air cargo in the U.S. for the postal service, according to UPS. The Atlanta shipping company said April 1 that it had received an air cargo contract from the U.S. Postal Service that significantly expands an existing partnership between the two. Financial terms of the deal were not disclosed. The USPS’s current air cargo contract with FedEx Corp. is set to expire in late September. The agency said in a statement that its contract with UPS will be for a minimum of five and a half years. FedEx said in a regulatory filing that it wasn’t able to reach an agreement on mutually beneficial terms to extend its contract with USPS. The company said negotiations ended on March 29 after extensive talks. FedEx Express will continue to provide air transportation services domestically and to Puerto Rico until the contract expires Sept. 29. UPS’s contract with USPS takes effect the next day. During FedEx’s third-quarter conference call on March 21, Chief Customer Officer Brie Carere said the company had provided its services to USPS for more than two decades and that the two sides were still in negotiations. USPS announced a four-year extension of its air cargo network contract with FedEx in 2020. The mail and delivery service said that the contract provided for domestic air transportation for U.S. Mail, Priority Mail and Priority Mail Express. In recent years USPS has focused increasingly on lowering costs, and (one) avenue is through transitioning from air freight to ground transportation. In February, USPS Postmaster General Louis DeJoy said the USPS is looking to reduce its overall transportation costs by $3 billion over the next two years, which includes $1 billion cost savings already achieved in air freight. While the USPS is looking to move more to ground shipments as a cost-saving tactic, air cargo shipments have been rising globally. Last month the International Air Transport Association said total demand for air cargo, which is measured in cargo ton-kilometers, climbed 18.4% in January compared with the prior-year period. That’s the highest annual growth in the figure since the summer of 2021. Shares of United Parcel Service Inc. dipped slightly in afternoon trading April 1, while FedEx’s stock declined nearly 3%. By Michelle Chapman, Associated Press Business Writer

Be prepared: CVSA’s International Roadcheck is especially important for truck owners

Be prepared: CVSA’s International Roadcheck is especially important for truck owners

Cliff Abbott -

The Commercial Vehicle Safety Alliance’s (CVSA) 2024 International Roadcheck is coming soon to an inspection location near you. This year’s inspection blitz is set for May 14-16. While it’s important for every driver to be prepared for inspection, it could be critical if you’re the owner-operator of a single truck or a small fleet. There’s no question that being pulled around behind the scale or getting stopped at another location for an inspection is an inconvenience. In fact, some truck owners avoid any possibility of getting inspected during the CVSA’s annual inspection event by scheduling a vacation during the Roadcheck dates. After all, during an event when 14 trucks and buses are inspected every minute of the day, the chances that your vehicle will be one of them is higher than usual. Whether you’ll be on the road or not, however, it pays to prepare for Roadcheck. To help truck owners and drivers avoid unpleasant surprises during inspection, the CVSA announces the Roadcheck dates well in advance, along with the focus areas for each year’s campaign. This gives you an opportunity for you to check your own operation and equipment, focusing on areas that inspectors have on their list. Of course, in reality, inspectors are out every day — and it pays to be ready for inspection at any time of the year. During this year’s Roadcheck, the CVSA is focusing on drug and alcohol possession, along with tractor protection and anti-bleedback systems. While the first would seem to be easy to comply with — don’t have controlled substances or alcoholic beverages in the truck, and don’t operate under the influence of them — there are additional steps to take. For example, if you have prescription medications, make sure they’re in the original container with a label showing they are legally prescribed for your use. Also, make sure that you’re taking the medications as prescribed, and that you’re not driving if you aren’t supposed to be. Another part of the drug and alcohol inspection focus will be a check of your record with the Federal Motor Carrier Safety Administration’s (FMCSA) Drug and Alcohol Clearinghouse. As an owner-operator, if you are not leased to a carrier and subject to the FMCSA’s controlled substances program, you’ll need to be enrolled in a consortium for random testing. If you haven’t changed jobs or leases in the past few years, it’s possible you aren’t registered with the Clearinghouse at all — and it’s time to find out. If you’re not registered, visit the Clearinghouse website and do so. This can save delays during an inspection. In addition, you’ll already be in the system should you decide to seek new employment or another lease situation. The Roadcheck’s other focus area is mechanical in nature and covers an area of your equipment that you should be checking anyway. Inspectors will be paying particular attention to air lines, looking and listening for leaks and other issues. If you’re driving, you’ll be asked to disconnect the gladhands to test the tractor’s protection valve. Gladhands are notorious for leaking because seals deteriorate with age and exposure to air. It’s a good idea to have a couple of extra seals on hand, especially if you drop and hook different trailers often. If a gladhand leak is found, you may need to replace a set on the spot. Regular in-cab checks of the air system should be part of your pre-trip routine anyway, but it’s especially important to perform them before an official inspection. Always chock the wheels before beginning. Test for leaks by letting the air pressure build until the compressor cuts out; then shut off the engine, push in the tractor and trailer protection valves and apply pressure to the brake pedal. Listen for air leakage and watch the gauge. The system should not lose more than 4 pounds of pressure in one minute. Your next test involves turning the key to the “on” position without starting the truck; then dump the air pressure from the system by depressing and releasing the brake pedal repeatedly. Before the system drops below 60 psi, the warning devices, including a light and a buzzer, should activate. Continue dumping air from the system until the tractor and trailer protection valves pop out. This should happen when pressure reaches 40 psi or less. If a leak is detected, if warning lights or buzzers don’t activate, or if protection valves don’t engage, repairs are needed. Whether you perform maintenance on the truck or trust it to a vendor, perform the same checks again after the maintenance has been done. Of course, CVSA focus areas aren’t the only things that will be inspected, so make sure everything is in good working order and that your records are well-maintained. Keep in mind that each jurisdiction has its own method of choosing which trucks to inspect. Some use a specific number and inspect every fifth truck, regardless of who owns it. Others may target a specific type of truck, such as logging trailers or flatbeds. Still others might look for obvious issues, such as a smoking wheel or an audible air leak. Some look for signs of neglect, such as trash strewn over the dashboard or dirty windows, under the premise that a driver who doesn’t keep the vehicle clean and organized may not pay much attention to maintenance, either. Regardless of the reason for a truck and driver’s selection for inspection, a violation can cost you thousands of dollars for repairs, especially if you can’t move the truck and the service must come to you. The loss of time can also impact your next pickup or delivery and cost you a load — or even a customer. Also remember that CSA scores for both your business and the driver can be impacted by inspection results. Some shippers, as well as brokers, look at CSA scores when selecting a carrier. Violations for maintenance issues could cost you revenue if your ability to procure loads is impacted by inspection violations. It’s a rare driver that actually looks forward to being instructed to pull around behind the scale for inspection. However, if you’re prepared, your chances of getting through with flying colors (and maybe a shiny new CVSA sticker for your windshield) are greater, and everyone is just a little bit safer.

Effects of Baltimore bridge collapse felt across trucking industry

Effects of Baltimore bridge collapse felt across trucking industry

John Worthen -

BALTIMORE — When the Key Bridge collapsed after being struck by a cargo ship in Baltimore on Tuesday, March 26, the nation watched as a vital U.S. trade gateway was instantly shut down. The Port of Baltimore is the country’s largest for roll-on/roll-off cargo. Everything from cars, tractors, trucks and heavy equipment roll in and out of the port daily — or at least they did. Now, things at the port are silent, save for the massive operation to remove the hulking remains of the bridge so that shipping channels can reopen. The port’s imports of farming machinery and construction equipment typically peak in March (12% of the annual volume), according to DAT Freight and Analytics. Carriers forced to reposition equipment to other markets will take time and add cost, especially considering Baltimore is the furthest port inland on the East Coast, some 150 miles further than New York. Baltimore is the closest port to the Quad Cities and other Midwest farm and construction machinery centers. Case New Holland Agriculture, Caterpillar, John Deere, AGCO (Fendt, Massey Ferguson), CLAAS, Komatsu and John Deere are all big customers of the Port of Baltimore. Baltimore consistently ranks in the top 10 markets for spot flatbed freight in March, according to DAT. “The collapse saw a 57% surge in spot flatbed loads moved from Baltimore and higher linehaul rates on critical lanes,” according to DAT. “The number of spot flatbed loads moved from Baltimore to Chicago increased by 117% compared to the previous week, and the average spot flatbed jumped 25 cents to $2.03 a mile.” DAT officials note that Baltimore is not a major dry van truckload freight market, ranking 29 out of 135 spot markets for the week ended March 30. “Outbound Baltimore spot rates averaged $1.33 a mile, down 2 cents, on a 12% week-over-week increase in the number of loads moved,” according to DAT. Maryland’s state average spot rate was $1.51 a mile, DAT reports. The number of spot van loads moved from Baltimore to Chicago fell by 18% last week, and the average linehaul rate increased by 1 cent to $1.03 a mile. Baltimore to South Bend — the No. 2 lane — fell 6%, while the average linehaul rate increased 4 cents to $1.14 a mile. Other movement in load posts The number of weekly load posts on DAT One rose 2.1% to 2,034,011 for the week ended March 30. The total number of load posts was down 2% year over year and in line with the same week in 2017. ▲ Van loads were 827,651, up 5.9% compared to the previous week and 3% higher year over year. ▼ Reefer loads were 339,393, down 2.2% week-over-week and 1% higher year over year. ▲ Flatbed loads were 866,967, up 0.3% week-over-week and 7% lower year over year. Truck posts fell by 12%, signaling more carrier exits The total number of trucks on the DAT One network fell by 12.4% to 307,690 for the week ended March 30. That week’s truck posts were 30% lower year over year and down 25% compared to the same week in 2020, according to DAT. The pre-pandemic week 13 average is 340,963 trucks posted. ▼ Van equipment was 206,998, down 13.0% and 31% lower year over year. ▼ Reefer equipment was 61,341, down 11.8% and 30% lower year over year. ▼ Flatbed equipment was 39,351, down 9.5% and 21% lower year over year. Load-to-truck ratios rose for all three equipment types ▲ Vans were 3.9, up from 3.3 the previous week. Four-week average: 3.3. ▲ Reefers were 5.3, up from 5.0 the previous week. Four-week average: 5.0. ▲ Flatbeds were 21.3, up from 19.7 the previous week. Four-week average: 19.1. Spot and contract rates converged last week ▲ The van rate was $1.56 net fuel, up 1 cent week over week and 2 cents higher than four weeks ago. The broker-to-carrier rate was $2.02 (fuel: 46 cents). The contract rate was $1.99 net fuel. ▼ The reefer rate was $1.83 net fuel, down 2 cents and 2 cents lower than four weeks ago. The broker-to-carrier rate was $2.34 (fuel: 51 cents). The contract rate was $2.35 net fuel. ▲ The flatbed rate was $2.01 net fuel, up 4 cents and 9 cents higher than four weeks ago. The broker-to-carrier rate was $2.57 (fuel: 56 cents). The contract rate was $2.56 net fuel.

Old Dominion’s Micha Kay named WIT’s April Member of the Month

Old Dominion’s Micha Kay named WIT’s April Member of the Month

John Worthen -

ARLINGTON, Va. — The Women In Trucking Association (WIT) has announced Micha Kay as its April 2024 Member of the Month. Kay is the regional human resources development manager at Old Dominion Freight Line (OD) and has been in the trucking industry her entire life, according to a WIT news release. Her dad worked as an over-the-road truck driver during her childhood until he retired in 2021. She says she has vivid memories of sitting on the bed in the back of his truck with her coloring books and watching talk shows on his small TV as they drove across the country. “She used to be able to get out and help him unload pallets on the dock as well,” the news release states. “Growing up with a fairly absent dad due to him being an over-the-road driver gave her such an appreciation for truck drivers and what they do every day.” Although Kay recently re-entered the transportation industry in 2022, she started her career in transportation back in 2009 as a nighttime driver check-in clerk, which helped her get through college. When she left transportation in 2011, she entered the construction industry, where she spent most of her career. “She knew it was going to be a challenge,” according to the news release. “Both transportation and construction are very male-dominated industries, and Kay knew it would take some work to make a name for herself. She believes that being true to yourself and your abilities is key. Just believe in yourself and keep the male versus female mentality at bay. We are all in this together, and reaching our goal of fulfilling our promises to our customers is our number one goal.” Kay started college as an education major until her junior year when she switched to human resource management. “Her desire to teach and develop people has helped immensely in her career in human resources (HR),” according to the news release. “Now she finds herself overseeing twenty-five locations, which she loves. Every day is different, and she is passionate about “boots on the ground” traveling to all locations so that she can interact with the drivers.” Kay enjoys being a mentor. In fact, she teaches all internship programs and runs both management and training programs. Kay has won several awards throughout her 15-year career in HR but most recently received the Old Dominions Service 2.0D award for providing exceptional service to the OD family. “Kay is incredibly involved with her drivers; she recalls one instance when she went out with one of them for a ride-along,” according to the news release. “They were downtown, and the driver was as calm as could be with one hand on the wheel and backing up into a dock that no way looked like there was enough room to back a car into let alone a truck. She was in full panic mode thinking that this was not going to fit, but it did, he got it in with no problem, and she just sat back amazed.” Beyond Kay’s career, she is a single mom with two teenage daughters. When she is not working, she is involved in her daughters’ sports schedules and family time. She also opened her own side business in 2021, specializing in resume writing and career coaching. “Kay would like women interested in the trucking industry to know that, first and foremost, if you hear that trucking and transportation are not lucrative or productive, this is a misconception and a false reality,” the news release states. “It is an illustrious career choice. You just need to be fully confident in yourself and your skills that you bring to the table. Respect is earned and with that you can thrive.”

Averitt collaborates with Tennessee State Parks to promote sustainability

Averitt collaborates with Tennessee State Parks to promote sustainability

Erica N. Guy -

COOKEVILLE, Tenn. — Averitt is collaborating with the Tennessee State Parks as a community outreach project. Averitt and the Tennessee State Parks held a collaborative meeting recently, which included representatives from Fall Creek, Cummins Falls, Burgess Falls and other local officials. In this meeting, the two shared their initiatives focusing on community engagement, environmental sustainability and fostering a positive impact on the local landscape. Through this partnership, Averitt officials say they aim to help preserve and enhance the natural beauty these parks offer to the public. “Averitt is committed to cultivating impactful relationships within the communities we are privileged to serve. Through our collaboration with Tennessee State Parks, our shared goal is to enhance education, promote sustainability, and preserve the natural beauty of Tennessee and its surrounding communities,” said Kent Williams, executive vice president of sales and marketing at Averitt. The contribution signifies the beginning of an ongoing relationship, with both parties committed to exploring further opportunities for collaboration. For more information about Averitt and its commitment to community engagement and sustainability, visit www.averitt.com/about/environment. Pictured are: Kent Williams, Averitt’s Executive Vice President of Sales and Marketing; Tim Saylor, Averitt’s Vice President of Information Systems; and Mark Davis, Averitt’s Vice President of Pricing and Traffic, alongside Tennessee State Park employees and rangers. (Courtesy: Averitt)

What is the ERG and why do drivers need it?

What is the ERG and why do drivers need it?

Cliff Abbott -

While a commercial driver’s license (CDL) is required for all operators of commercial trucks, not every professional driver undergoes the certification and training required to haul hazardous materials (hazmat). Hazmat haulers must meet additional requirements and standards for safety. However, the hazmat certification is not always required, and any driver may be called upon to transport hazardous materials at some point. This is when the Emergency Response Guidebook (ERG) is needed. If you went through driver orientation with a motor carrier, you likely received a stack of guidebooks during training. Remember the one with the bright orange cover? That’s the ERG — and you want to make sure you know where it is. The most important thing to understand about the emergency regulations belong with the bill of lading and other shipping documents whenever a load is placarded for hazardous materials. Federal regulations require that shipping paperwork must include emergency information. In other words, it’s the shipper’s responsibility. If emergency responders, such as law enforcement or fire department personnel, are required to attend your vehicle for any reason — like an accident, a fire or a hazmat leak — they’ll need to know what substances they’re dealing with and the proper way to handle the situation. That information is included in the ERG. It’s the driver’s job to make sure the ERG gets to those responders. Of course, most drivers know that affixing hazmat placards to the trailer greatly increase the likelihood of being selected for a DOT (Department of Transportation) inspection. And, even though it’s the shipper’s responsibility to provide paperwork specific to the material being transported, when a roadside inspection reveals a discrepancy, it’s the driver who stands to get cited. If the shipper fails to include emergency response information, the ERG fills the requirement, potentially preventing you from having a ticket and fine on your record. If you’re one of those drivers who wants to know as much as possible about their cargo and maintain the highest levels of safety, you’ll want to know more about the ERG. It’s important to understand that the little orange ERG book is far different than the pocket-sized copy of the Federal Motor Carrier Safety Regulations (FMCSRs) that many carriers hand out. The FMCSR book has two main functions. First, since drivers are responsible for following the regulations that pertain to them, it’s good to have a copy for reference. Some drivers frequently look up various rules to make sure they understand them. The second reason is that carriers have a defense if they’re accused of not educating their drivers about the regulations. By providing those regulations to each driver, they strengthen their defense in any actions involving the rules. The ERG, on the other hand, is provided as a safeguard, just in case a shipper doesn’t include emergency response information along with the bill of lading, as they are required to do. Drivers are supposed to make sure that information is included when signing the paperwork. Unfortunately, when the shipper hands the driver an inch-high stack of paper, it can be difficult to figure out what’s in the stack. Most drivers simply sign where they’re told and get on with the load. Keeping the ERG close at hand is insurance for the driver, in case the required information isn’t included or isn’t complete. When hauling a placarded load, drivers are required to leave the load paperwork on the driver’s seat or in a door pouch when they’re out of the truck. That’s where the ERG goes, too. The idea is that if there’s a problem while the driver is gone, the police or fire department know where to find the information they need. That information includes these items: The correct name and description of the hazardous material. Any immediate health hazards, such as inhalation hazard. Will it burn? Will it explode? Can water be used to put it out? First aid procedures for anyone exposed to the substance. Evacuation guidance. Is it necessary? How large an area to evacuate? Other hazards, such as harm to fish or wildlife if it gets into a stream. All this information is available in the ERG. The guide isn’t difficult to use, and the different sections are color-coded. Here are the basics: The blue section is simply a list of hazardous substances in alphabetical order. The yellow section is another list of hazardous substances, listed by their UN or NA identification numbers. This is helpful for quick identification of a substance based on the number on the placards or on the shipment manifest. The orange section contains the guides for each substance. Listings for each material in the blue or yellow sections provide a guide number, making it easy to look the correct guide. Green pages contain evacuation information about each substance, whether evacuation of the public is necessary and, if so, what area needs to be evacuated. Although there are apps that contain emergency response information — including an app version of the ERG itself — electronic versions are not lawful for inclusion with the load paperwork. The information MUST be printed. While the information in the ERG is primarily for the use of first responders, as the driver, your own response to an accident, fire or other threat can be more effective if you know about the substances you’re carrying. If, for example, there’s an inhalation hazard, you can direct people away from your vehicle before emergency responders even get there. The ERG can help you decide if you should remain with the vehicle or get everyone far away. Some drivers go as far as to put a bookmark in the ERG at the correct page, saving emergency responders valuable seconds when dealing with an issue. Knowing what’s in that trailer can help you make better decisions about your route, parking and more. If you’re like most drivers, you stashed those books you received in orientation somewhere in the truck and haven’t thought about them since. Understandably, not every driver enjoys recreational reading — and government regulations aren’t the most riveting stories, anyway. The ERG, however, packs a lot of useful information and just might save you the cost of a citation, or even save a life.

CVSA’s 2024 inspection blitz to include DACH queries

CVSA’s 2024 inspection blitz to include DACH queries

Cliff Abbott -

Each year, the Commercial Vehicle Safety Alliance (CVSA) announces the focus areas for its annual International Roadcheck inspection event. This year, one of those focus areas will be checking drivers and vehicles for controlled substances and alcohol. In a first for CVSA, part of that check will be conducting a query in the Federal Motor Carrier Safety Administration’s  Drug and Alcohol Clearinghouse (DACH) database. The 2024 International Roadcheck will be conducted over a three-day period, Tuesday-Thursday, May 14-16. While it may seem the best way to survive the annual event is to avoid using or possessing prohibited substances during the event, it’s actually the DACH query that will be problematic for some drivers. The DACH was created to better track and enforce the U.S. Department of Transportation’s (DOT) drug and alcohol testing regulations. In the “old days,” a driver who tested positive for controlled substances had a few options. Back then, the people involved in the testing process didn’t communicate with state licensing agencies, so CDL suspensions that were supposed to happen often did not. Provisions for treatment and follow-up testing — required before the driver could get behind the wheel again — were often ignored. Drivers who wanted to remain in trucking simply found another job, hopefully with a carrier that was lax in checking with former employers. Owner-operators who were part of a drug and alcohol consortium could simply switch to a new one that had no record of a positive test. The rules were not terribly difficult to circumnavigate. The DACH was created to tighten up enforcement of the rules. Carriers and consortiums are required to report positive results to the DACH and to query the database for every new driver they hire. Drivers are required to give their permission for the DACH to give out their results. Individual states are required to suspend CDLs for drivers who have positive results, at least until they complete a return-to-duty (RTD) process. It became much more difficult to simply find another job and bypass the process. Then, a funny thing happened. Instead of going through the required RTD process, many drivers who tested positive for drugs and alcohol chose to stop driving instead. In the four years since the DACH went live, 226,598 drivers have had at least one drug or alcohol-related violation. Of those drivers, 120,676 (53%) did not even start the RTD process. Others started the process but dropped out before completing it. As of Dec. 31, 2023, a total of 158,330 (70%) of drivers with a positive drug or alcohol test are prohibited from performing safety-sensitive functions. These are the drivers the inspectors for the 2024 CVSA International Roadcheck will be looking for, along with any drivers who are currently under the influence of or in possession of prohibited substances. The CVSA’s guidance for the event specifies that inspectors will be observing drivers for signs of alcohol or controlled substance use and/or impairment and that they will examine the cab and trailer for alcohol or controlled substances. Whether this examination includes a search of sleeper areas or the opening of trailers will likely depend on the jurisdiction in which the inspection is performed (and possibly the cooperation of the driver). The inspection will include a query of the DACH database to determine if the driver is in a prohibited status. If the driver is found to be in a prohibited status, he or she will be placed out of service. Drivers do not need to be registered with the DACH inspectors to look for information in the database. Registering in the database does provide the driver with some advantages, however. One advantage is that drivers can view information in their own files. Another is that the driver will be notified by email of any changes to the file, such as a positive drug screen. Registering in the DACH also gives the driver more access to the information in the database. It’s a good idea for every driver to check their DACH record annually; in the month before an event like the International Roadcheck, it’s even more important. To register, simply go to the DACH website and click on the “register” button. A checklist of what is needed to complete registration can be found here. In many cases, a “limited” query will be sufficient to make sure a driver is not in a prohibited status. Information about negative testing is not entered into the database, so if a driver has no infractions, their DACH file will be empty. If the driver changes employers or joins a new consortium, or if the limited query returns information in the driver’s file, a full query will be conducted to obtain full details. For an employer to conduct a full query, the driver must give consent electronically through the DACH itself; drivers must be registered in order to do so. CVSA information for drivers for the upcoming International Roadcheck specifies some common-sense guidance. They should not possess or be under the influence of alcohol or controlled substances while on duty, and they should not consume alcohol within four hours of coming on duty. Drivers who have had a positive test for alcohol or controlled substances will benefit from making sure they know exactly what is in their file before the inspection. Drivers who have tested positive and have not undergone the RTD process have an opportunity to get the process started before being placed out of service during an inspection. Drivers who would like more information about the 2024 Internation Roadcheck can download a brochure here.

Business ‘cents’: Knowing your cost per mile is vital for owner-ops

Business ‘cents’: Knowing your cost per mile is vital for owner-ops

Cliff Abbott -

Do you know the cost-per-mile to operate your truck? If you don’t, then every decision you make about which loads to accept is suspect. In today’s market, not knowing what it costs to operate is nearly a guarantee of failure. One of the largest areas where owners fail to understand their operational costs is fuel. Many drivers rely on information provided in the driver interface in the truck. Most of these can provide information such as miles traveled, average speed, average miles per gallon and other statistics. It’s great if you regularly review the numbers, but many drivers depend on the “current mpg” information shown on the display — without understanding that the number shown may not be close to the long-term average. A fuel log is an important part of tracking not only expense, but also vehicle performance. Whether on paper or in a digital spreadsheet, you should make an entry in your fuel log every time fuel is purchased. The entry should include, at a minimum, the odometer reading, gallons purchased, miles traveled since the last fuel purchase, and the price paid for the fuel. A space for recording engine idle hours is helpful, especially if you idle the engine while sleeping. Another bit of information that can be very helpful is a column for recording conditions. By recording this information, you’ll be able to identify trends for certain conditions that you can factor into your load decisions. For example, let’s say you’re taking a 1,000-mile load from Denver to Chicago. Denver’s elevation of 5,280 feet above sea level is the reason it’s called “the mile-high city.” Chicago’s elevation is a little less than 600 feet. Your trip will include uphill and downhill portions, and you may not even notice the nearly a mile of altitude you’ll descend — but it makes a difference. If the origin and destination were reversed, you’d be climbing that mile. Wind is a huge factor in fuel mileage. Jet airliners often change altitude to take advantage of tailwinds, but that’s not an option for trucks. However, if you keep track of whether you were moving with or against the prevailing winds, you’ll soon see a difference in fuel mileage. That difference can be meaningful when you’re deciding whether to take a load. Whether you use statistics provided by the truck’s system or calculate your own, you should know exactly how many mpg your truck averages, as well as the average fuel price you paid (including discounts). If you idle your engine a lot, keep track of that separately. But there’s a lot more to overall cost per mile than just your truck’s mpg. Another factor in your cost-per-mile calculations is insurance premiums, both for your truck and for you as a driver. If you lease your truck to a carrier, don’t forget to include any deductions taken from your settlements for liability, workers compensation or other forms of insurance. In addition, maintenance is a large part of your annual budget. It’s important to keep track of all expenses for maintenance, whether for recurring services, such as oil changes, or major repairs, like engine or transmission work. If you financed your truck, all payments and fees count, too. Other credit fees might be charges or interest on the use of a fuel card or a credit card you use for business expenses. As an owner-operator or the owner of a small business, your salary, including benefits, is another expense. If you’re assuming that any settlement money left over after you pay the bills is personal cash, you’re setting yourself up for failure. As a business owner, calculate a salary to pay yourself each week. Remember that you are responsible for self-employment tax of 15.3% of your profit. If you own your own truck, you may also be able to claim per diem at the end of the year and you can adjust your pay rate to reflect the savings. Often, personal savings and especially a retirement account are overlooked by those who are self-employed. Those things are a part of your pay, too, as is health insurance, if you do not have it through a spouse or other source. A good accountant or tax preparer can save you much more than the cost of their services. They can also help you avoid legal issues that stem from incorrectly reporting income and taxes. Their fees are business expenses and tax-deductible as well. Other expenses, such as food, clothing, footwear and personal toiletries are costs you may not be able to claim as business expenses, depending on the item and whether you were away from your home when it was purchased. However, they ARE expenses you’ll need to factor in. If you typically purchase three meals per day while on the road, the cost of them should be included in the rate you receive for a load. Finally, accounting for deadhead, bobtail and personal conveyance miles is important, too. When considering whether to accept a load, be sure to factor in how many miles you’ll need to drive to the pickup location. If your trip includes a stop at home, you’ll have expenses for the extra miles you’ll travel to and from your residence. If your delivery is to a region where finding a return load is difficult, you should factor in the miles you’ll need to drive to another area to pick up your next load. At the end of the year, if you have recorded your costs properly, you (or your accountant) will be able to calculate total expenses for the year. That number, divided by your total miles travelled, will give you an average cost per mile (CPM). You may need to adjust this number if, for example, you know you’ll have expenses next year that you didn’t have this year. For example, if you know you’ll need a brake job or a new set of tires in the coming year, you’ll want to add to your CPM to make sure you can cover those costs.

Love’s opens new Florida location, rebuilt location in Oregon

Love’s opens new Florida location, rebuilt location in Oregon

John Worthen -

OKLAHOMA CITY — Love’s is now serving customers at a new location in St. Augustine, Florida, and at a completely rebuilt store Troutdale, Oregon. The location in St. Augustine is open 24/7 and offers all the amenities Love’s is known for including fresh food and drinks, Love’s-branded snacks and a Hardee’s, according to a news release. For professional drivers, the location adds 63 truck parking spaces to Love’s network and RVers have access to four RV parking spaces. In honor of the grand opening, Love’s will donate $5,000 to a local non-profit. To see a full list of amenities, click here. The location in Troutdale was rebuilt from the ground up and is now ready to once again serve customers 24/7. It also offers all the amenities Love’s is known for including fresh food and drinks, Love’s-branded snacks as well as a Chester’s Fried Chicken. For professional drivers, the location adds 44 truck parking spaces to Love’s network and RVers have access to four RV parking spaces. In honor of the grand opening, Love’s will split a $5,000 donation between Transformative Living Community International and Reynolds High School. To see a full list of amenities for Troutdale, https://www.loves.com/locations/449.

Bestpass appoints innovation and growth executives to team

Bestpass appoints innovation and growth executives to team

Erica N. Guy -

ALBANY, N.Y. — Bestpass recently announced that it has added two key team members to its leadership team. Shay Demmons is now the new chief product officer, and Scott Chao is the new chief marketing officer (CMO). “These strategic hires will aid Bestpass’s commitment to scale its service offerings and network integrations for commercial fleets and owner-operators,” a news release states. Bestpass CEO Tom Fogarty said he’s glad to have the pair on board. “We set out to build out our innovation and growth teams by attracting accomplished leaders as our first C-level executives in product and marketing,” he said. “Scott and Shay bring extensive and dynamic work experience, both in and outside the transportation industry. As we continue to grow the Bestpass brand and bring forth new solutions for our customers, I am confident that their leadership will play a pivotal role in driving our success.”   Chao joins Bestpass as CMO and has deep experience growing companies through strategy and transformational improvements, according to the news release. Chao recently served as CMO and chief growth officer for Appspace, a leading workplace management software company backed by private equity firm Accel-KKR. Before Appspace, he held sales and marketing leadership positions at other private equity-backed companies, including DealerSocket, Stack Sports and Cvent.  Demmons joins Bestpass as CPO. He has more than 25 years of experience in product development across multiple industries, including commercial transportation. Most notably, Demmons served as CPO at GPS Insight, a fleet management and field services company, where he was responsible for the strategy and execution of all product and development-related activities.    Bestpass, founded in 2001, is a leading toll management and payment platform for commercial vehicle operators in the U.S. and Canada. It covers 100% of significant toll roads in the U.S., supports more than 30,000 customers, and processes over $1.5 billion in toll transactions annually. Since 2018, Bestpass has grown its customer base and revenue by more than three times. 

Strong February Class 8 sales won’t help overcapacity in the market

Strong February Class 8 sales won’t help overcapacity in the market

Cliff Abbott -

As Februarys go, the second month of 2024 wasn’t a bad month for U.S. sales of new Class 8 trucks. Manufacturers reported selling 17,619 of them, according to Wards Intelligence. That makes it the third-highest February in the past decade. February was the seventh consecutive month in which sales were down from the same month a year earlier. In February 2023, when sales were still on the upswing, 20,136 new trucks were sold. For the year to date (which includes only two months of reports), sales are running 9.6% behind last year’s pace. Sales of new trucks is often viewed as an indicator of where the freight market is headed. When carriers are confident they’ll be able to earn a profit in the coming months, they buy new trucks. When the market points upward, many company drivers with an entrepreneurial spirit buy trucks and become owner-operators, starting new carriers in hopes that growing business will one day have a “started with a single truck” story as many larger carriers do today. But this time, there’s a catch. The government has issued new fuel mileage and emissions standards for model year 2027. Those new standards include something else — a requirement that warranties be lengthened to help buyers have confidence in vehicles built with new technology. That technology (along with the extended warranties the manufacturers must fund) is expected to drive the price of trucks up by $25,000-$30,000 each. Like they did in 2006 and again in 2009, carriers are considering buying more trucks built before the new standards (and higher pricing) go into effect. The closer the calendar gets to the production of 2027 model-year trucks, the more pre-buying is expected. Some of that will start with the introduction of the 2025 models later this year. The problem is that the industry already has a capacity problem: There are too many available trucks to haul too few available loads, increasing competition for freight and keeping rates at levels that make it difficult to sustain a trucking business. For freight rates to improve, the number of available trucks needs to go down, not up, unless something happens to cause the economy to greatly increase production. Pre-buying trucks now only increases capacity. According to a blog post by ACT Research, February U.S. orders for new Class 8 trucks were at 17,213, a 32% increase over February 2023 orders. A part of that increase is on the vocational side, according to ACT President and Senior Analyst Kenny Vieth. “The vocational market remains strong, particularly in the US, where nearshoring and government programs have spurred investment,” Vieth said. One reason for the vocational increase is nearshoring, a practice that’s creating a boom in the Mexico market as manufacturers and warehousers move operations from Asian locations, particularly China, closer to U.S. markets. Doing so takes advantage of lower-cost labor and more favorable tariffs available in Mexico and saves shipping costs as ships from Asia load and unload in Mexican ports, bypassing the delays and expense of U.S. west coast ports. For the first time in more than 20 years, U.S. imports from Mexico have surpassed those from China. More trucks will be needed to handle the increase in imports. Another stimulant for the vocational side is the $1 trillion infrastructure bill passed in 2021. The government money available for roads, bridges and other construction projects will stimulate sales of trucks to haul building materials such as asphalt and concrete. Vieth also believes private fleets are responsible for a portion of the sales increase. “With February orders underscoring the ongoing above-demand-level trend in an otherwise overcapacitized U.S. market, further corroboration of evidence leads us to believe that prebuying is being driven by private fleets,” he said. The reason, he explained, is that private fleets tend to have longer trade cycles, and because they’re hauling their own products they aren’t as dependent on freight rates. Since those private fleets sometimes obtain backhauls on the freight market, however, those trucks DO have an impact on capacity. Buyers ordered 20,500 trailers in February, preliminary estimates from ACT showed, down 21% from last February but still robust. On the used truck side of the market, retail sales volumes experienced a 15% increase in February compared to January and a 32% increase compared with February of 2023. Because more used trucks are available, the price of the average used truck sold in February was 19% lower than it was a year ago. The average miles on a used truck sold in February was 10% lower than a year ago and its age was 5% newer. “The gain was stronger than expected as sales are typically still emerging from the winter freeze this time of year,” said Steve Tam, ACT vice president and senior analyst. While more used trucks are available and cost less, on average, the increased cost of credit due to higher interest rates plus more restrictive loan policies will keep some potential buyers from taking advantage. The sales performance for individual truck manufacturers varied. Freightliner sold 6,027 Class 8 trucks on the U.S. market in February, down 27.7% from January and down 18.2% from February a year ago. Volvo sales increased by 50.5% over January with sales of 2,142 but were down 9.5% from February 2023. International reported U.S. Class 8 sales of 1,825 for February, down 3.1% from January and down 35.5% from February 2025. The PACCAR companies remained fairly constant for the month. Kenworth reported sales of 2,791, up 12.3% from January but down 1.8% from last February. Peterbilt’s 2,916 sold topped January’s total by 8.2% and was 2.6% better than February 2023 sales. Mack Truck reported sales of 1,104, up 29% from January but down 17.9% from last February. Western Star sold fewer than anyone else at 814 units, down 9.7% from January but 52.4% better than February 2023. For the year to date, 39.7% of new, Class 8 trucks sold on the U.S. market have been Freightliners, followed by Peterbilt at 15.5%, Kenworth at 14.6%, International at 10.2%, Volvo at 9.8%, Mack at 5.4% and Western Star at 4.7%.

Predicted light at the end of the freight rate tunnel still far away

Predicted light at the end of the freight rate tunnel still far away

Cliff Abbott -

The signs indicating a market upturn are there, according to most trucking industry analysts — but the rates haven’t responded yet. Why? The answer is simple: There are still too many trucks available to haul shipment numbers that remain stubbornly low. According to the Federal Motor Carrier Safety Administration, more than 4,000 carriers left the industry in February 2024. At the same time, more than twice that many registered as new carriers. Adding more trucks to a market that’s already oversaturated isn’t likely to push rates upward; there is still too much supply. On the demand side, things may be looking up. According to Motive, a marketer of AI safety and technology products, trucking visits to warehouses for the top 50 retailers increased by 1.2%. The March Motive Economic Report indicated department stores and electronics saw “significant surges” while home-improvement store visits were up 14.6% from February 2023 levels. “Nearshoring” is a word that is increasingly heard around the trucking industry. The term is used to describe companies that move manufacturing or warehousing facilities to another country that’s closer to the country in which they want to sell their products. For the U.S., Mexico is becoming more popular as companies move their facilities from China and other Asian countries to new plants closer to the U.S. According to Motive, the number of vehicles registered for cross-border shipping grew by 14.3% last year, an indication that carriers are gearing up for more freight coming from Mexico. The impact for trucking may be fewer shipments from Asia going to west coast ports, resulting in fewer truckloads from the west coast and more freight from facilities along the U.S.-Mexico border. The Motive report concludes with a prediction that the second half of 2024 will be “a more carrier-friendly environment.” Poor January weather conditions reduced shipment numbers, so gains made in February mostly reclaimed the ground lost a month earlier. The American Trucking Associations (ATA) reported that its For-Hire Truck Tonnage Index increased 4.3% in February after falling 3.2% in January. “February’s level was the highest in a year, yet the index still contracted from a year earlier, suggesting truck freight remains in a recession,” said ATA Chief Economist Bob Costello. The February ATA Index fell 1.4% compared to February 2023. It was the 12th consecutive month that came in lower than the same month a year earlier. The ATA index includes data received from its membership and represents mostly contract freight shipments. Spot rates, on the average, increased by a penny for flatbed freight in February, according to DAT Trendlines published by DAT Freight & Analytics. Average rates for dry van and refrigerated loads, however, fared worse. The inclement weather that reduced shipments in January had a positive effect on rates, rising to an average of $2.15 per mile for dry van and $2.57 per mile for refrigerated. Once the weather improved in February, average spot rates dropped by nine cents for dry van to $2.06, while refrigerated rates dropped 15 cents to an average of $2.42 per mile. The Cass Freight Index for Shipments rose by 2% on a seasonally adjusted basis in February, possibly assisted by the extra day in the month due to it being a leap year. Compared to February 2023, shipments were down 4.5%, an indication that increases haven’t yet made up for recent declines. Tim Denoyer, who authors the Cass report and is vice president and senior analyst at ACT Research, noted the 4.5% decline was the smallest in 10 months. For the entire first quarter of 2024, Denoyer expects the total freight index to rise about 3% from the last quarter of 2023, a positive sign that things are getting better. “With destocking playing out and goods consumption rising, we see this improvement as an encouraging sign that a recovery is beginning,” Denoyer wrote. The Cass Truckload Linehaul Index, comprised of shipment and expenditure numbers from Cass clients, rose a tenth of a percent in February after falling 0.6% in January. Compared to February 2023, the index fell 5.4%. Again, the decline was the smallest of the past year, indicating things are getting better. The index includes both spot and contract freight. Denoyer pointed out that new EPA regulations that go into effect in 2027 will likely harm freight rates in the near term. The reason for this, he says, is that carriers are starting to buy additional equipment now to avoid expected $30,000 price increases that will take effect in 2026. As the mandate gets closer, the pre-buying will accelerate — but for now, it’s difficult to get excess capacity out of the freight market if carriers are increasing the number of trucks they plan on buying. “These capacity additions suggest the long bottom in the freight cycle may lengthen even further,” Denoyer wrote. A Feb. 29, 2024, blog post by ACT Research claimed that rising imports and intermodal trends are key indicators of a recovery in trucking for 2024. “The truckload CEOs we interviewed at ACT’s seminar on Feb. 21 (ACT Market Vitals, February 20-22, Columbus, Indiana) are seeing volumes improve enough to get more selective on freight mix, but this demand is not finding its way into the spot market yet,” Denoyer said. ACT also reported that driver availability improved again in February, likely due to small carrier revocations as owner-operators shut down their businesses and rejoin the driver market. That’s a trend that’s likely to reverse once freight rates begin to increase. The second half of 2024 could see the trucking industry turn the corner. Rising freight rates would be a nice way to help carriers keep up with the inflation that’s raising the cost of everything else.

Kodiak Robotics establishes Trucking Industry Advisory Council

Kodiak Robotics establishes Trucking Industry Advisory Council

John Worthen -

MOUNTAIN VIEW, Calif. — Autonomous transportation company Kodiak Robotics has launched a Trucking Industry Advisory Council. According to a news release, the council “brings together a diverse array of forward-thinking industry leaders to help shape the company’s product development, deployment and public engagement as it focuses on the commercialization of autonomous trucks.” Inaugural members of the Kodiak Industry Advisory Council represent brands and organizations, including the Arkansas Trucking Association, Loadsmith, Walmart, Werner Enterprises and UPS. The committee is chaired by former Kodiak Chief Operating Officer and current strategic advisor and board member, James Reed. Reed is also vice president of transportation development at Walmart. His career has been split in nearly equal parts between Silicon Valley and transportation. He began his career at Intel and then spent time as a finance executive at T-Mobile, J.P. Morgan Chase and EMC. Reed was CEO of USA Truck, where he led the turnaround and sale of the company to DB Schenker. Reed serves or has served on the boards of USA Truck, Moatable, Loram Maintenance of Way, Montgomery Transport and Truck Parking Systems. He is also the founding leader of the American Trucking Association’s DE&I subcommittee. “Kodiak’s Industry Advisory Council will help carry us through our next phase of growth, as we work alongside our partners to safely and efficiently deploy our driverless technology,” Reed said. “We’re fortunate to have such an esteemed group of industry luminaries whose range of experience includes work with industry-leading shippers, carriers, safety advocates, and regulators. Their unique perspectives will help to lead and shape the ways we approach industry and driver engagement, industry transformation, and driving public acceptance of autonomous trucks.” Additional members of Kodiak’s Trucking Industry Advisory Council include: Chad Dittberner, senior vice president of dry and expedited goods at Werner Enterprises. Dittberner is the senior vice president of the One-Way and Werner PowerLinkSM Networks at Werner Enterprises. He has more than 30 years of experience at Werner, currently overseeing office associates and professional drivers. Dittberner played a key role in propelling Werner’s Dedicated Fleet Operations Network to become one of the largest in the country during his tenure. He is a member of an associate-driven committee at Werner Enterprises called the Innovation Council, and he participates in other industry councils, demonstrating his commitment to improving efficiency and sustainability in trucking as well as helping to shape the industry’s future. Anne Ferro, former administrator at the Federal Motor Carrier Safety Administration (FMCSA) Ferro is also the former president and CEO of American Association of Motor Vehicle Administrators (AAMVA). Ferro served as administrator of the FMCSA from 2009 through 2014 and president and CEO of the AAMVA from 2014 through 2023. Earlier, she served as president and CEO of the Maryland Motor Truck Association and was the first woman to become Maryland’s Motor Vehicle Administrator, leading the state agency from 1997 to 2003. Ferro is a long-time advocate for transportation safety and mobility through responsible governance, technology investments and stakeholder collaboration. Over the years she served on multiple committees and advisory groups including a Motor Carrier Safety Research Analysis Committee with the Transportation Research Board and the U.S. Department of Transportation Advisory Committee on Transportation Equity. William Kruger, vice president of fleet maintenance and engineering at UPS Kruger has served as vice president of fleet maintenance and engineering for UPS since 2016, where he leads a Corporate Automotive ATG group with its autonomous fleet strategy, as well as all training and learning aspects in the automotive global learning and development group. During his tenure at UPS, which began in 1989, he has also held the positions of automotive senior projects manager and freight director of fleet services and west region automotive coordinator. Kruger has served on the Executive Board of Directors for the Transportation Research Board and the Board of Directors for the ToolBank USA. Shannon Newton, president of the Arkansas Trucking Association. Newton joined the Arkansas Trucking Association in 2003 and has since filled a range of leadership roles with a focus on the development and implementation of strategic initiatives, including planning, finance, member services, governance, regulatory and legislative affairs and advocacy. In 2018, she was recognized by the American Trucking Association with the President’s Trucking Association Executives Council Leadership Award for her regional and national advocacy efforts. Former Arkansas Governor Asa Hutchinson appointed Newton to the Working Group on Highway Funding, Arkansas’s Economic Recovery Task Force in 2020, and the Council on Future Mobility in 2022. Newton currently serves as chair of the Trucking Association Executives Council, which is composed of staff executives of state trucking associations and conferences affiliated with the American Trucking Associations. In 2022, Newton was named to the Transportation Industry Council of the Federal Reserve Bank of St. Louis to provide feedback on the economic conditions of the trucking industry. Brett Suma, founder and CEO of Loadsmith Suma is CEO of Loadsmith, a leading third-party capacity-as-a-Service logistics platform for shippers and carriers and the first trucking company built specifically for autonomous trucks. Prior to Loadsmith, Suma spent 20 years in various operational and technical logistics leadership roles with Knight Transportation, where he most recently served as Vice President of Operations. His expertise in intelligent network design and freight execution, and how they contribute to the overall customer and driver experience, led Loadsmith to partner with Kodiak to equip 800 trucks with the Kodiak Driver, Kodiak’s self-driving technology. Suma’s deep understanding of freight networks and shipping patterns underscore the network design approach for the Loadsmith Freight Network, which will be the foundation of the operational design domain for Loadsmith’s autonomous future.

Used Class 8 truck price growth expectations pushed further out

Used Class 8 truck price growth expectations pushed further out

The Trucker News Staff -

COLUMBUS, Ind. — According to the latest State of the Industry: U.S. Classes 3-8 Used Trucks by ACT Research, the used Class 8 average retail sale price improved 4.4% month-over-month to $62,100 in February. “On a year-over-year basis, used retail prices were 14% lower,” said Steve Tam, vice president at ACT Research. “Until recently, our pricing expectations were for a return to month-over-month growth toward the end of 2024 as the most likely course. Despite February’s encouraging results, recent developments are putting pressure on the forecast. Specifically, we are pushing expectations for the return to sustained month-over-month growth further out.” Combined, the total market same dealer sales volume fell 43% month-over-month in February. “Compared to February 2023, the retail market accelerated 29%,” Tam said. “The auction segment rose 89% year-over-year while wholesale volumes increased 143% year-over-year. Combined market results saw volumes increase 57% year-over-year. Expectations for 2024 call for moderate growth relative to 2023.”

Truckstop: Total spot rates are slightly higher in the latest week

Truckstop: Total spot rates are slightly higher in the latest week

The Trucker News Staff -

BLOOMINGTON, Ind. — The total broker-posted spot market rate in the Truckstop system edged higher during the week ended March 22 (week 12). Total rates have risen for three straight weeks — the first streak of that length this year — although the cumulative increase over that period is less than 3 cents. Dry van spot rates increased while refrigerated and flatbed rates declined. Total load postings rose in the latest week, but a sharp increase in flatbed volume offset decreases in volume for van equipment. Total loads Total load activity increased 3.6% after rising 4.4% during the prior week. Total volume was up 9% from the same 2023 week — the strongest year-over-year comparison since February 2022 — but was nearly 26% below the five-year average. Truck postings increased 1.1%, and the total Market Demand Index — the ratio of loads to trucks -[- rose to its highest level since the first week of 2023. However, the flatbed MDI continued to increase while the MDIs for dry van and refrigerated eased. Total rates The total broker-posted rate increased six-tenths of a cent after rising 1.7 cents in the previous week. Rates were nearly 5% below the same 2023 week and close to 7% below the five-year average for the week. Even though flatbed spot rates eased slightly, they raised the total market rate because flatbed rates are so much higher than van rates and because flatbed volume rose while van load postings were down. Dry van rates Dry van spot rates increased 1.3 cents, which is the largest weekly gain for that equipment type since the weather-related increase in week 3. Rates, which were up in consecutive weeks for the first time this year, were more than 4% below the same week last year and almost 14% below the five-year average for the week. Dry van loads decreased 5.9%. Volume was marginally higher than during the same 2023 week but was more than 31% below the five-year average for the week. Refrigerated rates Refrigerated spot rates decreased more than 2 cents after rising about 4 cents during the prior week. Rates were about 4% below the same 2023 week and 12% below the five-year average for the week. The current week (week 13) is the week before Easter, which typically is a solid week for refrigerated spot volume and rates. Refrigerated loads declined 3.3%. Volume was nearly 6% above the same 2023 week — the first positive year-over-year comparison since week 4 — but 33% below the five-year average for the week. Flatbed rates Flatbed spot rates declined six-tenths of a cent after increasing 1.7 cents in the previous week. Rates were more than 5% below the same week last year and almost 6% below the five-year average for the week. Flatbed rates were about 24 cents higher than current refrigerated rates and about 54 cents above current dry van rates. Flatbed loads rose 10%. Volume was more than 15% higher than the same week last year — the strongest year-over-year comparison since February 2022 — but was more than 24% below the five-year average for the week.

Baltimore bridge collapse, port closure send companies scrambling to reroute cargo

Baltimore bridge collapse, port closure send companies scrambling to reroute cargo

John Worthen -

BALTIMORE — The stunning collapse of Baltimore’s Francis Scott Key Bridge is diverting shipping and trucking around one of the busiest ports on America’s East Coast, creating delays and raising costs in the latest disruption to global supply chains. After the container ship Dali hit the bridge and brought it down early Tuesday, ship traffic entering and leaving the Port of Baltimore was suspended indefinitely. That will require rerouting vessels or their cargo to other ports, potentially causing congestion and delays for importers, said Judah Levine, head of research for the global freight booking platform Freightos. “People right now are figuring out where are they going and what are their options,’’ Ami Daniel, CEO of the maritime intelligence company Windward in Tel Aviv, Israel, said. The Dali was the only container vessel in the port at the time of the collision, but seven others had been scheduled to arrive in Baltimore through Saturday, Levine said. Six people, part of a crew that had been filling potholes on the bridge, remained missing hours after the span came down. “Aside from the obvious tragedy, this incident will have significant and long-lasting impacts on the region,” American Trucking Associations spokesperson Jessica Gail said, calling Key Bridge and Baltimore’s port “critical components’’ of the nation’s infrastructure. Gail noted that 1.3 million trucks cross the bridge every year — 3,600 a day. Trucks that carry hazardous materials will now have to make 30 miles of detours around Baltimore because they are prohibited from using the city’s tunnels, she said, adding to delays and increasing fuel costs. “Timewise, it’s going to hurt us a lot,’’ said Russell Brehm, the terminal manager in Baltimore for Lee Transport, which trucks hazardous materials such as petroleum products and chemicals. The loss of the bridge will double to two hours the time it takes Lee to get loads from its terminal in Baltimore’s Curtis Bay to the BJ’s gasoline station in the waterfront neighborhood of Canton, he estimated. The accident comes as global shipping has largely adjusted to disruptions from Houthi rebel attacks on vessels in the Red Sea. The attacks, which started amid the Israel-Hamas war, have forced ships to take the longer route around the Cape of Good Hope at the southern tip of Africa and required more ships to sail more often. The diversions have pushed freight rates from Asia to the U.S. to roughly double what they were before the war, though they prices recently declined some to $5,284 per 40-foot container, Levine at Freightos said. Baltimore’s port has become increasingly important to U.S. retailers and manufacturers seeking to diversify their supply networks and bring goods closer to customers, said Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation. “Everybody is trying to figure out the impact of the supply chain” from the loss of the bridge, said Gold who spoke with big and small retailers Tuesday. “What they had going into the port or what is currently at the port destined for somewhere else.” Gold added that it’s too early to tell how long shipments might be delayed. Americans should expect shortages, said Ryan Petersen, CEO of the supply chain management company Flexport. He said the accident would have significant repercussions for ocean container shipping and East Coast trucking logistics. “It’s not just the port of Baltimore that’s going to be impacted,” he said. Petersen was working with his team Tuesday to reroute about 800 shipping containers currently making their way to the Port of Baltimore. Flexport had two containers onboard the Dali; one was filled with a donated playground headed to Zambia. “It’s a scramble because each of those containers has now a new journey to clear customs. You’ve got to get a different truck to pick it up at a different port. It creates a whole lot of downstream work,” he said. Petersen said the attacks on cargo ships in the Red Sea already forced traffic away from the Suez Canal and increased congestion in the Panama Canal. With U.S. importers increasingly shifting to West Coast ports that in turn may experience their own backups, “you get this vicious feedback loop,” he said. The use of trucks as an alternative to shipping goods will also cause traffic backups on U.S. thoroughfares, Petersen predicted. “The East Coast I-95 corridor is going to be a real disaster,” he said. Still, Levine thinks the bridge collapse is unlikely to have a big impact on global trade, certainly nothing like the disruptions caused by the COVID-19 pandemic. First, Baltimore is not a major port for container vessels. And second, shipping traffic from Asia is in the annual lull following China’s Lunar New Year holiday. While shipments are pushed forward to get things out ahead of the holiday in early February, the period afterwards “is the slow season for ocean freight,” he said. The century-old Domino sugar refinery, an iconic Baltimore institution located at the port, expects “no short-term impact’’ to its operations in the city. Marianne Martinez, a spokeswoman for Domino parent ASR Group, said the refinery has six to eight weeks of raw sugar supplies on hand. The bridge collapse nevertheless is likely to have an outsize impact on the regional economy around Baltimore and on businesses that rely on shipments of steel and cars that come through the port. In the Baltimore area, “if you’re in the construction business and you haven’t piled up enough steel because of (high) interest rates, then there’s a good chance you’re going to run out of steel,’’ Windward’s Daniel said. “If you’re in the shipbuilding or construction business, it can slow down your project.’’ The Port of Baltimore is one of the largest vehicle handling ports in the U.S., and a lengthy closure could disrupt the supply of new vehicles. In 2022, Baltimore ranked No. 1 with more than 750,000 vehicles going through the port, 70% of them imports, according to the publication Automotive Logistics. However, supply chain experts say the Port of Los Angeles and others may have overtaken it last year based on the value of autos passing through. And since most vehicles purchased in the U.S. are made in North America and don’t come by sea, experts do not expect big problems. Car dealers currently have sizable inventories, and ships carrying cars also can divert to other ports. “Depending on the length of the disruption, we could see inventories drawn down,” Jason Miller, interim chair of the supply chain management department at Michigan State University. said. Most of the auto imports to Baltimore come from Germany, Mexico, Japan and the United Kingdom, Miller said. About 20% of U.S. coal exports pass through Baltimore en route to India, the Netherlands, Japan and other countries; that is second only to Norfolk, Virginia, according to the U.S. Energy Information Administration. Thomas Goldsby, a professor of supply chain management at the University of Tennessee, predicted “some degree of confusion and bottlenecking” for a time. But he said that shipping companies have become accustomed to taking detours to other ports in the past few years due to conflicts along the Suez Canal or low water levels in the Panama Canal. “These steamship lines are having to be agile to the circumstances,” Goldsby said. “The other ports are ready to receive. What is a challenge for Baltimore is an opportunity up and down the coast.”

‘Mr. Wonderful,’ Kevin O’Leary, gives keynote at TCA’s annual convention

‘Mr. Wonderful,’ Kevin O’Leary, gives keynote at TCA’s annual convention

John Worthen -

NASHVILLE — Kevin O’Leary, also known as “Mr. Wonderful” on ABC’s award-winning “Shark Tank,” weaved his way through the ins and outs of how to be successful in business during his keynote address Tuesday at Truckload 2024, the Truckload Carriers Association’s annual convention. The convention ends on Tuesday. O’Leary said he’s a passionate advocate for small businesses — and he said that the small business “umbrella” covers many levels of the trucking industry. “Every truck driver is an entrepreneur,” O’Leary said. “They do it because they love it — otherwise, why would they do it? To me, it’s the modern-day American cowboy. If you ask me, you get freedom from it.” During the question and answer session of the keynote, O’Leary fielded a question about buying and selling businesses. He stressed the importance of serving that business and those who are connected to it. “Think of the minute you started that business years ago,” he said. “You are no longer number one. You serve the customer, you serve your employees, and you serve your founder, your bank loan, your shareholder, your partner, whoever.” O’Leary continued: “Those are your constituents that you serve. You’re last, you’re always last. You’re the one working 25 hours a day, seven days a week, but you’re last on the pecking order here. And I think the successful businesses, in terms of integration, maintain that mandate. They have to assure when you buy in another business, and we do a lot of mergers and acquisitions, the messaging to the customer base is crucial. We will be keeping the standard of service in the top quarter.” O’Leary said if a business serves its customers, even if there’s a price increase, “they don’t leave.” “They care the most about service because that’s part of their problem solution,” he said. “So, for me … on a merger, (the most important thing) is making sure the culture does not change on customer service.” Additionally, O’Leary said, making the cuts all up front — and fast — are vital. “When we buy businesses, we chop costs, and we’re very fair on the exit package that people are not keeping,” he said. “We pay the top dollar for them because that gets out into the market pretty fast. And people want to know they’re treated fairly. I have personally done many firings myself in companies that I have major positions in to show respect to those people that we’re letting go.” O’Leary said he visits Washington about once a month to advocate for small business owners. “Just so you know, businesses between five and 500 employees, which are the majority in this room, we account for 62% of job creation in America — 62%, more than half,” he said. “We are the economy. We are the economy. So I can walk into any congressman’s or woman’s or senator’s office and say, ‘I’m here for small business’ and that every door is open, regardless of blue or red or independent, doesn’t matter.” O’Leary also touched on the importance of running successful social media campaigns in trucking and other industries. “If you’re not doing social media, if you don’t have somebody in your operation that’s in their 20s doing this for you, your competitor is, and that’s the way it’s gonna stay,” he said. “That’s just the way it’s gonna stay.” On autonomous trucking and the changing technology in the trucking industry, O’Leary reassured the crowd that the trucker isn’t going to be climbing out of the cab anytime soon. “Everybody keeps talking about automated drivers and all that,” he said. “You’re not gonna see that in your lifetime. That’s my opinion. It’s gonna take a long, long, long, long, long, long time before that happens. So this industry is going to be relevant, go up and down. Remember, transportation is the most important index in determining market performance. It still is.” About O’Leary While O’Leary may be most famous for his appearances on “Shark Tank,” the show that brings entrepreneurs before a group of wealthy investors for a chance at launching their products, he has a broad professional history. Decades ago, O’Leary co-founded SoftKey Software Products, a technology company that sold software geared toward family education and entertainment. During the late 1980s and 1990s, SoftKey became a major consolidator in the global educational software market, having acquired rival companies via hostile takeover bids. In 2008, O’Leary co-founded O’Leary Funds Inc., a mutual fund management firm focused on global yield investing. He is the company’s chairman and lead investor, while his brother Shane O’Leary serves as the director. The fund’s assets under management shot from $400 million in 2011 to $1.2 billion in 2012, he shared. The fund’s primary manager was Stanton Asset Management, a firm controlled by the husband-and-wife team of Connor O’Brien and Louise Ann Poirier. O’Leary is definitely a savvy businessman with a dynamic personality.

Magnus Technologies unveils platform to optimize truckload operations

Magnus Technologies unveils platform to optimize truckload operations

John Worthen -

NASHVILLE — Software-as-a-service company Magnus Technologies has unveiled artificial intelligence-powered (AI) enhancements that are designed to make truckload planners, customer service reps and other knowledge workers more efficient and proactive. Magnus has more than 20 years of experience developing and deploying enterprise transportation management software (TMS), starting in the auto-hauling industry segment, according to a news release. “Truckload carriers are accustomed to using TMS platforms with manual processes, static views and data grids for load planning and other functions,” said Jay Delaney, director of product management at Magnus Technologies. “We broke the mold, redefining the user experience with data visualizations and AI-driven enhancements that deliver breakthrough fleet management capabilities.” The Magnus Platform is designed to give users forward visibility of freight and capacity in their planning regions up to five days in advance, the news release notes. “The platform’s comprehensive metrics, customizable views and accurate forecasting tools enable users to strategically reposition resources to balance freight networks, transforming empty miles and dwell time into revenue,” according to the news release. “The Magnus Platform also enriches load planning with dynamic map visualizations, including real-time weather, traffic and color-coding to identify exceptions.” Magnus Technologies also recently introduced Magnus EDI Manager. The system allows users to define rules for auto-accepting customer load tenders via EDI and other data exchange methods. “Additionally, it helps companies make better-informed decisions regarding accepting or declining orders by providing industry-first visibility of network balance, lane guidance, and customer volume commitments,” the news release states. The Magnus Customer Tracking Portal allows fleets to provide greater transparency and end-to-end shipment visibility. The portal includes accurate shipment ETA predictions based on comprehensive variables. Magnus also added new truckload rate calculations and accessory charges to the TMS platform, hourly driver pay and new yard check capabilities that support dropped trailers with visibility of cargo and location status. Subscribers to the Magnus Platform receive these and other ongoing updates and enhancements at no additional cost, keeping them at the forefront of industry technology advancements.

BeyondTrucks’ new fuel transport solution is ‘simplifying work,’ exec says

BeyondTrucks’ new fuel transport solution is ‘simplifying work,’ exec says

Erica N. Guy -

SAN MATEO, Calif. — BeyondTrucks has launched a new Fuel Transport Solution, complete with digital inventory monitoring. The solution digitizes and centralizes all of the customers’ inventory readings into one place, according to a news release, allowing for real-time tracking, order point reevaluation and automated order generation. “BeyondTrucks is designed for unique industry needs,” said Hans Galland, founder and CEO of BeyondTrucks. “Our Fuel Transport Solutions now extends our core offering of simplifying work for dispatch, back office and drivers — and makes it uniquely relevant to fuel transportation. This translates to improved efficiency, control and safety for this unique industry segment. Specifically, with J.P. Noonan, we’re proud to make the most competitive service provider ensuring gas stations in New England never run out of fuel.” According to said Mark Cicchini, director of special projects at J.P. Noonan, the old processes and transportation management system made it challenging to monitor multiple fuel customers efficiently.  But “BeyondTrucks allows us to automate this work and unlock valuable data,” he said. “With real-time fuel monitoring data, we can now run our entire fleet operation on a single, streamlined platform and use analytics to make more efficient dispatch decisions and become much more competitive.”