Business Archives

Rock-it Cargo buys SOS Global to create largest specialty logistics provider in entertainment

John Worthen - February 2, 2024

LOS ANGELES and NEW BERN, N.C. — When Led Zeppelin needed a way to transport their “Stairway to Heaven” across the United States between concert venues, they called Rock-it Cargo. And when major networks need to relocate their high-dollar broadcasting equipment to and from sporting events, such a Dallas Cowboys game or a hoops matchup between the Boston Celtics and the New York Knicks, they rely on SOS Global (SOS). Now, the two companies are one. Rock-It cargo, a global critical logistics (GCL) company and a global leader in end-to-end logistics for live events and high net worth goods, has announced the acquisition SOS, the North Carolina-based freight forwarder, from NEP Group. The combined company will be the largest global specialty logistics provider in the live touring and sports and broadcast markets, a news release notes. The acquisition closed on Jan. 31, and terms were not disclosed. “Rock-it’s core leadership in live music touring has been enhanced in recent years by diversifying into and significantly growing in the sports and broadcast, film and TV production and high net worth goods sectors,” according to the news release. “Rock-it and its sister companies have offices in 18 countries and, in 2023, completed shipments in more than 115 countries. Rock-it leverages its unparalleled network and experience to deliver end-to-end solutions for its customers in every market with the same personal touch and “failure is not an option” ethos that has permeated Rock-it since its founding in 1978 with first clients Uriah Heep and Led Zeppelin.” SOS specializes in freight forwarding and logistics services for live events, particularly in the sports and broadcast industries. They service every major U.S. sports and news broadcaster, the largest U.S. professional sports leagues and many of the largest vendors to these companies. Based in New Bern, North Carolina, “SOS prioritizes speed and control in its deliveries with additional offices across the United States, Canada, Germany, United Kingdom and the United Arab Emirates,” the news release states. “Today we bring together two trusted brands with a combined 83 years of experience,” said Daniel Rosenthal, president and CEO of GCL. “For 38 years, customers have known they can ‘SOS’ their most valuable goods via a 24/7/365 operational hub. SOS’s legacy will be strengthened as part of Rock-it Cargo, with expanded services and global access via our unrivaled network. I have been thrilled to get to know Ed Reno and the SOS team, and I cannot wait to grow our business and serve our customers better together. The breadth, depth and skills of Rock-it and SOS is unparalleled in global live performance touring and live sporting events.” The acquisition aligns with GCL’s strategic plans to strengthen Rock-it’s global position within the sports and broadcast sector, as well as enhance its domestic capabilities in the live touring, events, film and theater categories. In 2023, more than 85% of GCL’s revenue was earned from international shipments, whereas a majority of SOS’s revenue was earned domestically. Ed Reno, president of SOS, who will remain with GCL and report directly to Rosenthal, said, “Our team is very excited to combine forces with Rock-it. SOS brings a robust domestic network and operational capabilities designed to meet the needs of our sports and broadcast clients. Joining a larger international specialty logistics leader will be good for our customers and good for our team.” GCL has made several acquisitions recently to bolster its global capabilities serving the live touring, sports, broadcast, film and TV production, fine art and classic and high-value automobile sectors. This buying spree includes the acquisitions of Classic Automotive Relocation Services (CARS), the largest global transporter of high-value automobiles and Dynamic International, one of the top international logistics providers for film and TV productions.

HDA Truck Pride adds Superior Diesel to team, rolls business into Illinois

Erica N. Guy - February 2, 2024

ST. LOUIS — HDA Truck Pride (HDA) has unveiled the newest member of its team, Superior Diesel, expanding HDA’s presence into Illinois. “Over the course of their 35-year journey of service to the trucking community in Illinois, Superior Diesel has built a stellar reputation for delivering outstanding customer service,” said HDA Truck Pride CEO Tina Hubbard. “This reputation and their commitment to their community strongly aligns with HDA Truck Pride’s commitment to serving the trucking industry. We look forward to a long and successful partnership.” Since its founding in 1979, Superior has grown in two Illinois locations, according to a news release. The company’s diesel technicians “specialize in several areas such as various repairs, preventive maintenance services and more extensive overhauls, providing customers with dependable and timely solutions,” the news release states. The company offers complete suspension service, air conditioning repair, engine overhauls, after-treatment services, electrical, diagnostics and complete trailer repairs. “Both Superior locations take pride in themselves in making sure inventory is always in stock, allowing them to quickly access the parts and finish repairs efficiently,” the news release notes.

US Bank Index: Truck freight market ends ’23 with drop in volume, spending

John Worthen - February 2, 2024

MINNEAPOLIS — The U.S. truck freight market ended 2023 with further declines in both shipment volume and spending, according to the latest U.S. Bank Freight Payment Index. Compared to the same period in 2022, fourth quarter shipment volume was down 15.7% while spending by shippers contracted 13.5%. The year-over-year drop in volume was the largest in the history of the Index. “The truck freight market is feeling the impacts of companies reducing inventories significantly as well as consumers continuing to spend more on experiences over goods,” said Bob Costello, senior vice president and chief economist at the American Trucking Associations. “We’ll watch carefully in coming quarters if companies complete their inventory reduction efforts and begin to restock, which would help boost trucking.” All regions in the fourth quarter felt the slowdown in volume versus the same quarter in 2022, but it was most acute in the Southeast (-25.4%) and Northeast (-23.8%). Spending also dropped in all regions year over year, with the most significant in the Midwest (-17%). “Throughout 2023, our Index has consistently revealed significant declines in spending by shippers. While spending dropped again in the fourth quarter, we are seeing indications that might suggest trucking supply is coming into balance with demand,” said Bobby Holland, director of freight business analytics, U.S. Bank. National Data Shipments Linked quarter: -10.9% Year over year: -15.7% Spending Linked quarter: -1.4% Year over year: -13.5% Regional Data West Shipments Linked quarter: -2.9% Year over year: -16.3% Spending Linked quarter: 0.2% Year over year: -7.4% The West was one of two regions to see an increase in spending on a quarter-over-quarter basis, though spending by shippers was still down -7.4% compared to a year earlier. Improved West Coast import volumes may have helped the region’s shipment volumes, which were still down, but less so than most other regions. Southwest Shipments Linked quarter: -18.2% Year over year: -15.9% Spending Third quarter: -2.7% Year over year: -10.4% After slowing in the third quarter, the Southwest truck freight market contracted significantly in the fourth quarter. The region, which was the best for truck freight in 2022 and the first half of 2023, experienced slower retail and home sales in the first half of the fourth quarter, which weighed on truck freight volumes. Midwest Shipments Linked quarter: -8.6% Year over year: -8.9% Spending Linked quarter: 1.2% Year over year: -17.0% Midwest shipment volumes contracted the least among all regions compared to the fourth quarter 2022. Soft manufacturing, consumer spending and housing activity in the region have likely contributed to depressed freight volumes, which have persisted for the last few years. Northeast Shipments Linked quarter: -9.4% Year over year: -23.8% Spending Linked quarter: -2.5% Year over year: -12.5% The Northeast was one of the most challenged truck freight markets in 2023. Headwinds for the market include consumer spending moderation and manufacturing activity softening. Southeast Shipments Linked quarter: -14.5% Year over year: -25.4% Spending Linked quarter: -4.1% Year over year: -11.4% The Southeast had the largest year-over-year drop in volume among all regions. The region has had consistent volume contractions – as well as spending declines – in recent quarters.

Averitt expands, renovates 3 key locations

Erica N. Guy - February 1, 2024

COOKEVILLE, Tenn. — Transportation and supply chain company Averitt has been busy with several expansions and renovations at its Mid-Tennessee locations. Recently completed work has brought Averitt’s Nashville service center to a span of 42 acres, including more than 500 truck parking spaces and 162 dock doors that accommodate 190 drivers and more than 300 associates, according to a news release. “Our commitment to our facilities is a direct investment, not just in our own network, but also in our customers’ success,” said Joe Paul Tackett, Averitt’s Nashville Service Center director. During this time of change, Averitt also moved its Nashville-area distribution and fulfillment operation into a new facility in Lebanon, Tennessee. “This new location is expansive and features approximately 280,000 square feet of enclosed freight storage and inventory management space,” according to the news release. In addition, Averitt also moved its On-Tour Logistics operation into a 90,000-square-foot warehouse. For more information about Averitt and its Nashville facilities, visit www.averitt.com/nashville.

3 truck manufacturers partner to bolster zero-emission vehicles

John Worthen - January 31, 2024

WASHINGTON — Three major truck manufacturers have joined forces to focus on education, advocacy and the construction of a nationwide infrastructure for medium-and heavy-duty zero-emission vehicles (ZEVs). Powering America’s Commercial Transportation (PACT) is established by Daimler Truck North America, Navistar and Volvo Group North America, who collectively represent approximately 70% of all new medium-and heavy-duty truck sales in the U.S., and who “are committed to ambitious electrification goals,” the companies said in a joint announcement on Wednesday, Jan. 31. PACT’s “express purpose of overcoming the many barriers delaying access to ZEV infrastructure and enhancing national climate policies to address the infrastructure needs of medium-and heavy-duty ZEVs,” according to a news release. Each original equipment manufacturer (OEM) has battery-electric vehicles in the marketplace, but access to charging infrastructure is an increasingly significant bottleneck to the widespread adoption of these technologies, PACT asserts. Coalition membership is open to all stakeholders with an interest in accelerating the deployment of ZEVs and the requisite infrastructure, including other OEMs, infrastructure developers, electric utilities and grid operators and others. Other founding members include ABB E-mobility, Burns & McDonnell, Greenlane, J.B. Hunt Transport, Prologis Inc. and Voltera. “So far in the United States, transportation electrification has largely focused on the needs of light-duty passenger vehicles, a far different market segment that does not require the same unique considerations as medium-and heavy-duty,” the news release states. “Quickly deploying reliable and accessible ZEV infrastructure to power the nation’s commercial transportation fleet necessitates distinct considerations for capital investment, electrical grid upgrades and dedicated charging equipment.” According to the International Council on Clean Transportation, nearly 600,000 chargers will support a projected 1.1 million class 4-8 medium-and heasvy-duty ZEVs anticipated to be deployed by 2030, which will consume 140,000 megawatt-hours of electricity per day or the equivalent of the daily energy used by 4.9 million American homes. “Decarbonizing the commercial transportation sector — the fleets that keep America moving — is critical to meeting our nation’s climate goals. But the transition to zero-emission vehicles is stalling without the deployment of the needed charging infrastructure,” said John O’Leary, president and CEO of Daimler Truck North America. “Through PACT, we aim to accelerate this infrastructure buildout so that fleets can adopt ZEVs at scale and we can all benefit from impactful emissions reductions as quickly as possible.” Mathias Carlbaum, president and CEO of Navistar, said that commercial vehicle customers require fast, reliable, affordable and convenient power to effectively deploy ZEV fleets at scale. “To enable their success, we must work collaboratively across sectors to deliver an infrastructure that provides access to seamless electricity and meets the commercial transportation industry’s unique needs,” he said. “PACT provides a concerted forum dedicated to making this vision a reality; truly working to accelerate the impact of sustainable mobility.” Stephen Roy, chairman of Volvo Group North America and president of Mack Trucks, said that the scale of infrastructure required for medium- and heavy-duty EV adoption is unprecedented. “Understanding and coordination across the different stakeholders is imperative to deploy chargers quickly and cost-effectively,” he said. “PACT will promote best practices to streamline this complex transition while minimizing impacts on fleets, utilities, and the economy.” While supporting the deployment of commercial ZEV infrastructure, PACT members say they will not advocate for specific vehicle, power generation or utility distribution technologies. “PACT exists to educate stakeholders about infrastructure challenges that hamper medium-and heavy-duty ZEV adoption in the marketplace and work with stakeholders to find solutions for the benefit of all interested parties,” according to the news release. “The Coalition also champions practical and efficient infrastructure solutions capable of supporting increasing M/HD ZEV deployments.”

MileMaker announces partnership with Turvo to bring advanced TMS

Erica N. Guy - January 31, 2024

CHICAGO — Commercial truck routing and mileage software company MileMaker recently unveiled the integration of its web services interface with Turvo’s cloud-based platform to form an advanced transportation management system (TMS). According to a news release, this move will allow Turvo’s customers to access MileMaker’s truck-specific mileage calculations. “This partnership seamlessly integrates MileMaker’s renowned truck-specific mileage calculations into Turvo’s platform, empowering our users with accurate and up-to-date information for enhanced decision-making,” said Brett Williams, senior vice president of sales at Turvo. “Together, we aim to streamline logistics processes, reduce costs, and elevate overall operational efficiency for the benefit of the entire supply chain.” Isaac Salvadori-Black, director of partnerships at MileMaker, said he and his fellow executives are “excited to collaborate with Turvo to bring MileMaker’s commercial truck mileage, rating and routing solutions to a broader audiences.” He added: “This partnership will enable transportation companies to leverage our data, from both Guide 19 and Guide 20, within the Turvo platform, making it easier than ever to access accurate mileage, helping to improve overall logistics operations.” The software provides door-to-door routing, tailoring each route to a user’s specific requirements, vehicle specifications customizable Points of Interest, midpoints and more. According to the news release, “MileMaker’s mileage data enables users to negotiate and streamline freight rates, payments and audits, while also improving freight cost and fuel surcharge forecasts. Turvo’s platform offers real-time visibility, collaboration tools and other innovative features that result in an end-to-end communication and analytics platform for freight brokers, 3PLs, shippers and carriers.”

Choosing the right trailer, right time to buy can help your business succeed

Cliff Abbott - January 31, 2024

It’s not unusual for truck drivers to think about buying their own truck, either leasing to a carrier or obtaining their own authority and starting their own fully independent business. For some people, truck ownership remains a dream, while for others it’s the next step in a career progression. Another “big step” purchase is a trailer. If you’re leasing to a carrier, owning a trailer can increase your revenue opportunities. If you’re running under your own authority, it’s practically a necessity. However, trailer ownership comes with the same issues as tractor ownership— and then some. If you’re thinking about buying a trailer, it’s important to consider how you’ll use it, along with the benefits and detractions, before you take the plunge. TOTAL COST OF OWNERSHIP Like the tractor market, the market for trailers is heavily influenced by the freight market. When freight is plentiful and rates are high, both new and used trailers can be difficult to come by. That’s been the case for the last two years as builders have been unable to keep up with demand and carriers endured waiting lists for new trailers. At the time of this writing in early 2024, trailers are a little easier to find and prices are starting to moderate, but there are still problems to overcome. Freight rates are stagnant and aren’t expected to rise much in the next six to 12 months, if at all. If you’re counting on the spot market, obtaining loads as needed from brokers and load boards, it may be tough to see a return on your investment. Another issue is the cost of credit. Because of increases in the federal funds interest rate made by the Federal Reserve, interest rates for all types of loans have increased. If you’re planning to buy a trailer on credit, you’ll pay a higher interest rate (that’s if you can get the loan at all). That brings us to the other issue with credit: Lenders have been plagued with borrower defaults in the past two years and are tightening their lending policies. In many cases, they’re demanding higher credit scores and larger down payments, denying loans at a much larger clip than before the COVID-19 pandemic. Once you secure funding and buy a trailer, your business expenses will go up. Trailers have tires, brakes, lights, air lines and other systems that require maintenance. And don’t forget that you’ll need to provide insurance coverage as well. For some types of trailers, you’ll need securement devices, cargo securement devices or other items. You’ll also need a place to park the trailer, which will take up more space than the tractor you might have bobtailed home for your time off. You’ll also need to think about fuel costs. Aerodynamic treatments such as skirts, spoilers, special mud flaps and more are available. These are investments that can pay for themselves over and over — but the initial cost must be paid, plus you’ll have to pay for any damage they sustain in the course of your work. After totaling the cost, it’s time to ask yourself the defining question: Will the additional revenue generated by the trailer be worth it? Some carriers compensate independent contractors at a higher rate if they provide their own trailers, but you’ll lose the ability to drop and hook at customer locations, adding to your idle time as you wait for live loads and unloads. TRAILER TYPES AND CARGO Some carriers operate a variety of equipment types, and your new trailer may restrict you from hauling certain loads. For example, if you have a flatbed trailer and the customer requires a drop-deck trailer, you won’t get the load. Or, if you opted for a refrigerated trailer, or reefer, the loaded weight could be too heavy for a particular load a customer is offering. A larger carrier could simply send a different, lighter-weight trailer — but as an independent operator, you’re stuck with using what you own. If you’re operating under your own authority, consider your customers’ needs before investing in a trailer. For example, you may find a discount on a 48-foot van trailer, but if you have to turn down loads that require the extra room provided by a 53-foot trailer, that “great buy” could cost you in the long run. The customer may also have specific requirements for securement, such as the use of straps and e-tracks or prevention of sliding by nailing dunnage to the floor. If your trailer has an aluminum floor instead of wood, this is a challenge. If you’re looking at buying a flatbed trailer, there are more considerations. Will you need a side kit and cover? Perhaps a retractable “tarp” system? Both can save time and protect your customers’ cargo, but they will add significantly to your cost and add weight to the trailer. Think about the freight you’ll be hauling: Are the savings in labor and time worth the additional expense? Fewer drivers will purchase tank trailers, but if you’re looking, you’ll discover that there are various features and types. For instance, baffles can smooth the ride, and individual compartments allow different products to be carried on the same trailer. However, food-grade products require trailers to be clean — and baffles make cleaning more difficult. Some products require special linings to prevent reactions with chemicals. Be sure you know your customers’ requirements before investing. If you’re planning to get your loads from a spot market, it could be well worth your time to have a conversation with a freight broker or someone familiar with the market before selecting a trailer. A broker might be able to advise you of how much freight is available for different trailer types and what it pays. As is true with any purchase, timing can sometimes mean everything. A year from now, interest rates are expected to be lower and freight rates are expected to start slowly climbing. It might be a better business strategy to wait before replacing or buying a new trailer. Every business is different, however, and you’ll need to make decisions based on your own circumstances.

Used Class 8 tractor values saw declines in November 2023

John Worthen - January 31, 2024

COLUMBUS, Ind. — According to the latest State of the Industry: U.S. Classes 3-8 Used Trucks by ACT Research, the used Class 8 tractor average retail sale price dropped 2.6% month-over-month to $58,000 in December 2023. Retail prices last saw that level in April 2021, the report notes. “On a year-over-year basis, used retail prices were 28% lower,” said Steve Tam, vice president at ACT Research. “Our pricing expectations remain steady, with a return to month-over-month growth toward the end of 2024 as the most likely course.” Regarding volumes, Tam explained, “Combined, the total market same dealer sales volume 24% in December. For the full year, total sales were up 40% compared to 2022. Auctions led the growth, improving 78%, with the wholesale market expanding by 75%. Growth in the retail market was more reserved at 12%.”

TruVideo, Karmak partnership brings ‘trust and transparency’ to truck servicing

Erica N. Guy - January 30, 2024

BOSTON — TruVideo and Karmak have partnered in what executives from both companies say will “make the repair process exceptionally easier for truck dealerships.” According to a news release, TruVideo’s messaging and video platform will be used with Karmak’s dealership management system either simultaneously or tandemly, allowing for all information about a repair order to be dated, timestamped and found all in one place. “In the service lane, trust and transparency are key markers to building customer retention. TruVideo’s video and messaging platform is one-way technicians and service advisors can build upon that trust, using videos to help customers see and understand the repairs being recommended,” said Joe Shaker, founder and CEO of TruVideo. “This partnership with Karmak will enable all customer communication to be entered and reported on from one location, creating an accurate timeline across the entire customer lifecycle.” The partnership between TruVideo and Karmak will allow for reports that highlight data regarding repair orders with video versus without it, information on increasing revenue, dollars obtained in labor and parts and reductions in dwell time on repair orders, the news release notes. “Within just a couple of months, we saw the benefits of using TruVideo,” said Andrew Hildebrand, service manager for Integrity Ventures Inc. “It’s a great tool for communicating complex issues and repairs and it’s a huge time saver. Working with the team at TruVideo on the pilot to integrate into our Karmak accounting system was effortless. Their communication and ability to understand our needs was excellent.” For more information on TruVideo and its powerful AI-based solutions, visit https://truvideo.com/ai/

UPS to cut 12,000 jobs

The Associated Press - January 30, 2024

LOUISVILLE, Ky. — UPS will cut 12,000 jobs and released a revenue outlook for this year that sent its shares down sharply. The company also hinted that its Coyote truck load brokerage business may be put up for sale. UPS acquired the Chicago-based company for $1.8 billion in 2015. The Teamsters in September voted to approve a tentative contract agreement with UPS, putting a final seal on contentious labor negotiations that threatened to disrupt package deliveries for millions of businesses and households nationwide. The contract includes pay raises for full- and part-time union workers, the creation of 7,500 full-time jobs and the filling of 22,500 open positions, allowing more part-timers to transition to full-time. On a conference call Tuesday morning, CEO Carol Tome said that by reducing the company’s headcount UPS will realize $1 billion in cost savings. The job eliminations are anticipated to be among management roles and contractors, the company said. UPS also said Tuesday that its board approved an increase of 1 cent in its quarterly dividend to shareholders of record Feb. 20. “We are going to fit our organization to our strategy and align our resources against what’s widely important,” Tome said. Tome said that UPS is ordering employees to return to the office five days a week this year. United Parcel Service Inc. anticipates 2024 revenue in a range of approximately $92 billion to $94.5 billion, short of Wall Street’s expectations for a figure above $95.5 billion. Shares of UPS dropped nearly 8% on Tuesday. Revenue also came up short in the fourth quarter, sliding 7.8% to $24.92 billion. That’s just shy of Wall Street projections for $25.31 billion, according to a poll of analysts by FactSet. Profits for the quarter ended in December slid by more than half to $1.61 billion, or $1.87 per share, from $3.45 billion, or $3.96 per share. On an adjusted basis, quarterly earnings per share totaled $2.47, a penny above the average estimate, according to FactSet.

Averitt named to Forbes’ Best-In-State Employers for ’23

Erica N. Guy - January 30, 2024

COOKEVILLE, Tenn. — Averitt has announced its inclusion in Forbes Magazine’s list of America’s Best-in-State Employers for 2023, receiving the honor in both North Carolina and Tennessee. According to the company’s press release, “This accolade is presented by Forbes in partnership with Statista Inc., a renowned statistics portal and industry ranking provider.” The news release notes that Averitt stood out by “showcasing the company’s commitment to sustaining a positive work environment for its employees” and by being “dedicated to providing a workplace that values diversity, offers competitive compensation packages, and provides opportunities for professional growth and development.” Averitt officials say they have excelled through the many changes and shifts in the transportation industry through almost six decades. “We are honored to be recognized as one of America’s Best-in-State Employers by Forbes and Statista. Our commitment to our people goes beyond words; it is reflected in our actions and our continued efforts to create a workplace that fosters growth, inclusivity, and success,” said Elise Leeson, Averitt’s vice president of human resources. The company has implemented several initiatives throughout the years to enhance the employee experience, which includes promoting from within, offering top-tier pay packages, a profit sharing plan and a benefits program, according to the news release. Averitt’s also offers over 100 secure facilities in 21 states with thousands of parking spots. The company’s goal is to ensure the safety and well-being of its dedicated workforce and show them the appreciation they deserve. “Our team’s inclusion on this list underscores our dedication to providing a workplace that not only meets but exceeds our expectations,” Leeson said. “We believe that our associates are the heart of our success, and this acknowledgment is a reflection of their commitment to serve our customers, support our fellow teammates, and secure our future.”

Van spot rates in Truckstop’s system soften as winter weather subsides

John Worthen - January 30, 2024

BLOOMINGTON, Ind. — Warmer temperatures and calmer weather relieved the pressure that had fueled spot rates during the prior week. Broker-posted spot rates for van equipment in the Truckstop system declined during the week ended Jan. 26 (week 4), especially in refrigerated, according to a news release. Dry van spot rates gave back about half of the previous week’s gain while refrigerated spot rates fell by about 50% more than they had risen the week before. Flatbed spot rates rose for the fourth straight week to their highest level since late July. Total loads Total load activity eased 2.2% after rising about 4% during the previous week. Total volume was up 0.9% compared to the same 2003 week but nearly 26% below the five-year average. Truck postings increased 7.1%, and the total Market Demand Index — the ratio of loads to trucks — declined to its lowest level of the year. Total rates The total broker-posted rate declined nearly 4 cents after rising 7 cents during the previous week. Rates were about 3% below the same 2023 week and 1.4% below the five-year average. Even with the decrease in the latest week, total rates so far in 2024 are holding more firmly than is typical during the month of January. The recent weather and rising rates for flatbed equipment are the principal factors. Dry van rates Dry van spot rates declined just over 3 cents after rising 6.6 cents during the previous week. Rates were 1.6% higher than the same 2023 week — the strongest year-over-year comparison since April 2022 — but 1.7% below the five-year average. Dry van loads were essentially unchanged from the previous week. Volume was 9% above the same 2023 week but 15% below the five-year average for the week. Refrigerated rates Refrigerated spot rates fell nearly 19 cents — the largest drop since early January 2023 — after jumping more than 12 cents during the prior week. Rates were more than 3% above the same 2023 week and right on the five-year average for the week. Refrigerated loads fell 16.9%. Volume was more than 19% above the same 2023 week but more than 16% below the five-year average. Flatbed rates Flatbed spot rates moved up more than 1 cent after rising nearly 6 cents during the previous week. Rates were nearly 5% below the same 2023 week and less than 1% below the five-year average. Flatbed loads ticked up 0.4%. Volume was more than 9% below the same 2023 week and about 39% below the five-year average for the week.

ACT Research: Will tightening capacity turn truckload rate cycle higher in ’24?

John Worthen - January 30, 2024

COLUMBUS, Ind. — Officials at ACT Research say their latest For-Hire Trucking Index reflects a “gradually-recovering freight market.” The Supply-Demand Balance tightened by 2.2 points in December to 54.2, seasonally adjusted, from 52.0 in November, according to an ACT news release. Tim Denoyer, vice president and senior analyst at ACT Research, said that with volumes stabilizing and capacity contracting, the for-hire supply-demand balance has been signaling an impending increase in freight rates for a few months. “Truckload spot rates are 12% above the seasonal pattern in January following the cold snap,” he noted. “While weather effects should revert in the coming months, freight is an outdoor sport, so the cycle will likely find a higher trajectory as the reversion happens amid tightening capacity and recovering demand.” The Capacity Index decreased by 3.3 points month-over-month to 44.2 in December, ACT’s news release notes. For-hire capacity has contracted in seven of the past eight months and decreased further as fleet purchase intentions cratered and driver availability fell further in Janurary. “Capacity is still being added industry wide by private fleets, but declining U.S. Class 8 tractor sales indicate this phenomenon is starting to slow,” Denoyer said. “Unlike private fleets, for-hire capacity has been contracting, so as private fleet additions decline, tighter industry capacity should press rates up.” The Driver Availability Index dropped noticeably, down 4.1 points month-over-month to 50.9 in December. “The quality fleets in our survey have been safe havens for owner operators for the past couple years, but market dynamics seem to have finally caught up with the driver market. While bad news for the drivers, it’s key to tightening the freight market. While weather is the larger near-term factor, driver availability is a critical longer-term factor also starting to help press spot rates up,” Denoyer concluded.

FMCSA signals May as target date for speed limiter mandate notice

John Worthen - January 30, 2024

WASHINGTON — The Federal Motor Carrier Safety Administration (FMCSA) intends to proceed with a motor carrier-based speed limiter mandate by preparing a supplemental notice of proposed rulemaking (SNPRM) that’s scheduled to be released in May. This is according to the February edition of the Department of Transportation’s Significant Rulemaking Report. A supplemental notice of proposed rulemaking is a notice and request for comment published in the Federal Register when an agency has made significant substantive changes to a rule between the Notice of Proposed Rulemaking and the final rule. The supplemental notice advises the public of the revised proposal and provides an opportunity for additional comment. It may also be issued if considerable time has elapsed since publication of a notice of proposed rulemaking. The proposal to require truck owners and fleets to implement an engine control unit — also known as a speed limiter — in all trucks manufactured after 2023 has created somewhat of a stir in the trucking industry. The FMCSA was expected to make its final ruling on the issue by the end of December 2023, according to Dave Heller, senior vice president of safety and government affairs for the Truckload Carriers Association (TCA). Unfortunately, December came and went without the agency issuing a ruling. “The timeline, of course, is interesting, as it seems as if the agency always issues its most contentious rulemakings over the holiday season,” Heller said. “That being said, we will be on the lookout for it when it hits the Federal Register so that we can comment appropriately. At this point, we expect the agency to announce what their speed limiter target could be and whether or not they have allowed for some flexibility in the proposal. The ‘set it and forget it’ mentality is long gone, replaced by tech that can be adaptable to drivers and their safety performance.” Whatever rule ends is issued, not everyone will be happy with it, said TCA Chairman Dave Williams. “At the end of the day, the rule needs to be simple, and it needs to be soundly based on data and science,” Williams said. “As an industry, we have done a great job over the years improving safety. I do believe, as unpopular in some circles as this may be, that speed limiters will help us get to the next level of safe operations. Rather than speculating further, let’s see what comes out and go from there.” The FMCSA did not say exactly what number it plans to choose as the governed speed. In September 2023, the agency published information indicating the chosen speed would be 68 mph, but that report was quickly removed. As of this writing, the agency has said nothing else about the matter. The 2023 proposal is a follow-up to a 2016 joint proposal between the FMCSA and the National Highway Traffic Safety Administration for commercial motor vehicle speed limiters. The 2016 proposal did not gain traction. During its initial review on the Federal Register as part of a supplemental notice of proposed rulemaking, the most recent proposal garnered about 15,000 comments. Many commenters opposed the proposal. A representative of Beyond Dirt LLC wrote on the comment page: “Limiting speeds in trucks will not make them safer. All it will do is impede traffic in places where the truck speed limit is higher, making driving a truck more dangerous for the truck driver because the cars around it will be making aggressive maneuvers to get around it. This law is an overreach, if there is a problem with a few trucks speeding, you need to use the state patrol to in force the speed limit on those law-breaking drivers and not make this job more dangerous for the rest of us.” Heller counters this argument, saying: “The reality is that this assumption can be used for just about any speed — 45, 55, or 65. Wouldn’t that be the same concern on roads that have a speed limit of 25 mph? It is the ‘get out of the way’ theory that likely causes problems on the road in the first place. Speed limiters, coupled with new safety technology, will only serve to help improve the industry and its safety record.” Speed limiters can improve fuel efficiency, which is better for both the environment and a carrier’s bottom line. Greater fuel efficiency means lower CO2 emissions and fewer stops to fuel up, resulting in lower operational costs for carriers. Limiters can help reduce the severity of crashes and can even help prevent some crashes in the first place, making the roads safer for everyone. However, limiters also have the potential to create longer travel times depending on how the maximum allowed speed relates to mandated speed limits. Above all, Heller said, the trucking industry will need flexibility when looking at speed-governing devices. “It is fair to point out that we don’t just support a limit of 65 mph on Class 7-8 rigs,” Heller said. “We also support raising that number to 70 mph if the truck has other safety improvement technology such as adaptive cruise control and automatic emergency braking. Speed has been noted as a primary factor in fatal crashes that involve commercial trucks, and we continue to emphasize the use of technology that will help make our roads safer.”

Ruan’s Jeff Harpole promoted to executive vice president

Erica N. Guy - January 29, 2024

DES MOINES, Iowa — Ruan Transportation Management Systems has announced the promotion of Jeff Harpole to executive vice president. Harpole is currently the senior vice president and will succeed the current Chief Operating Officer, Dan Van Alstine, who announced his retirement near the end of the year. Ron Hanson, Ruan’s chief administrative officer, will also retire in 2024, a news release stated. “Ruan has experienced historic success under the leadership of Dan Van Alstine, which is a significant achievement when considered over Ruan’s 92 years of serving customers across North America. These contributions will define Dan’s legacy at Ruan, as will his critical role in developing and preparing his successor, Jeff Harpole. In working closely with Jeff, I have been extremely impressed with his highly effective people and customer leadership skills. Even more importantly, Jeff demonstrates and continues the leadership culture that has enabled our success,” said Ruan’s Chief Executive Officer, Benjamin McLean. Harpole began his 34-year transportation career at a top-10 for-hire carrier and logistics provider where he was able to be promoted to high leadership roles. Harpole has managed an $800 million transportation organization and worked with transportation providers in developing solutions, performance metrics and more. He helped launch Ruan’s private fleet while overseeing every aspect of the operation, which includes equipment investments, safety and compliance processes, driver relations, and maintenance operations. “Ron and Dan have both been instrumental in establishing the cultural and operational framework for our success. Ron has become a key resource for skilled decision-making and thoughtful guidance to his colleagues on the Executive Leadership Team and beyond. Throughout his tenure, Ron’s astute strategic thinking has shaped our strategy and the delivery of our mission and values across the company. For 15 years, Ron has been my first stop to discuss any item of strategic and cultural significance at Ruan. He will be missed, but he too will be remembered for his legacy of preparing multiple highly capable leaders to guide our company into the future,” McLean said.

Great Dane appoints new EVP of manufacturing

Erica N. Guy - January 29, 2024

SAVANNAH, Ga. — Great Dane has announced the appointment of William (Bill) Davidson as its new executive vice president of manufacturing. “We are excited to have Bill join the Great Dane family. He is a polished leader with recurring success for improving business performance and building teams for excellence,” said Rick Mullininx, president and COO of Great Dane. “It has been a challenging manufacturing environment over the past several years, but we are continuously making improvements and have an excellent roadmap for moving forward in our commitments to build and deliver high-quality trailers.” In his new role, Davidson “will work closely with the leaders of Great Dane to help establish a process for making improvements in the company’s manufacturing plants dealing with safety, quality and cost efficiencies,” a news release states. Davidson will also oversee lean manufacturing initiatives for implementing sustainable manufacturing practices and strategies for the company. “I’m thrilled to be part of the Great Dane team, and I look forward to supporting leadership to accomplish our objectives and drive business excellence across our operations,” Davidson said. “I look forward to the journey ahead and being a part of this organization.” Previously, Davidson has served as president/CEO of All States Ag Parts (ASAP) and held several manufacturing and supply chain leadership roles at Deere & Co. He holds a master’s degree in business administration from the University of Chicago Booth School of Business and a bachelor’s degree in accounting from Brigham Young University.

C.H. Robinson doubles scholarship fund amount for carriers

Erica N. Guy - January 29, 2024

EDEN PRAIRIE, Minn. — C.H. Robinson is doubling the dollar amount of the scholarships it gives away each year. In a recent announcement, the C.H. Robinson Foundation said it is offering 25 scholarships valued at $5,000 each. “Carriers are critical to the world’s economy, and each year we are excited to be able to show our support to our talented pool of contract carriers in a variety of ways,” said Rachel Schwalbach, vice president at C.H. Robinson and president of the C.H. Robinson Foundation. “Continuous growth and learning are a core part of our culture and values. Through the C.H. Robinson Foundation, we’re proud to empower ambitious minds and help make education more accessible to all. By doubling the scholarship, we know we can make an even greater impact for our C.H. Robinson carriers and their families.” Applications can be submitted for consideration through Wednesday, Feb. 28. Employees or dependents of contract carriers who have been with a C.H. Robinson carrier for a minimum of one year as of Feb. 28 are welcome to apply. Applicants must also: Be age 16 to 26 or regular, full-time employees of the qualified carrier. Be high-school seniors, high-school graduates, or current post-secondary undergraduates. Students outside the United States must be in their final year of upper or higher secondary school or be current technical or university-level students. Enroll in full-time study if they’re a dependent, but can enroll in part-time study if employees of qualified carriers.   Since beginning the program in 2013, the C.H. Robinson Foundation has awarded nearly 340 scholarships, totaling $850,000. Click here for more information on the scholarships.

Forward Air finalizes Omni Logistics acquisition

John Worthen - January 26, 2024

GREENEVILLE, Tenn. — Forward Air Corporation officials say the company has completed the acquisition of Omni Logistics. “Together, Forward and Omni will create a category leader in the expedited LTL (less-than-load) market, built on precision execution,” a news release states. “With a differentiated service offering, industry-leading team and expanded geographic footprint, the combined company will offer high-value freight to its expedited LTL network. The combination of these complementary businesses uniquely positions Forward to accelerate its ‘Grow Forward’ strategy and deliver long-term value to shareholders, customers, employees and other stakeholders.” Tom Schmitt, chairman and chief executive officer of Forward Air, called the announcement “exciting.” “…we are pleased to welcome the Omni team to the Forward family,” he added. “Together, we are now uniquely positioned to be the premier provider of choice in high-quality freight transportation to a larger customer base with an expanded domestic footprint.” Forward will provide more details on its Grow Forward strategy, including targeted outcomes as well as additional information on its management structure and board composition, when it conducts its Q4 and FY 2023 earnings conference call in February 2024, according to the news release. “One of the defining characteristics of our corporate culture is that we do not wait around for good things to happen, we go out and make them happen,” Schmitt said. “We are approaching this important next phase with a sense of urgency and are committed to delivering on a clear and measurable plan designed to meet the needs of our customers, create opportunities for our teammates, and generate long-term value for our shareholders.”

Love’s focusing on ‘innovation, growth and top talent’ in 60th year

John Worthen - January 26, 2024

OKLAHOMA CITY — Love’s Travel Stops officials say they are celebrating the company’s 60th anniversary “by strengthening its commitment to getting customers back on the road quickly through innovation growth and top talent.” The company plans to add between 20 and 25 new locations, update 35-40 aging stores and completely rebuild four stores this year, according to a news release. This will mean thousands of new truck parking spaces at a time when they’re most needed across the nation. “Six decades ago, Tom Love opened our first service station in Watonga, Oklahoma, and almost immediately started selling household items to make stopping in more convenient for customers,” said Shane Wharton, president of Love’s. “Today, as the only major travel stop that is still family owned and operated, we continue with his innovative spirit by adding new products and improving the experience to give customers more reasons to stop in.” This year, Love’s plans to double its truck wash network by adding seven new locations in 2024. “Love’s truck washes are staffed with team members and automated technology to provide the same quality as a non-automated wash at half the time for professional drivers and RVers,” the news release stated. “RVers can also take advantage of RV hookups at travel stops and RV Stops located on property. This year, the company will bring the amenity to 44 more locations, ending the year with 1,500 hookups at 98 locations.” Love’s is also expanding its branded food and snack items, including the addition of new chip flavors, meat sticks, honey buns, powdered donuts and cookies. Love’s is also growing its Fresh Kitchen concept as a result of feedback from customers on offering fresh, healthier and diet-specific food options. Additions to this line include a new omelet bowl, upgraded snack trays and elevated mac and cheese bowls to name a few. The company is also a top 10 restaurant operator in the U.S. and will add 20 restaurants to its network this year. “Love’s remains committed to limiting down time for professional truck drivers,” the news release stated. “Freightliner ExpressPoint is now available at over 400 Love’s truck care locations, providing light mechanical warranty repair work for Freightliner trucks through Love’s partnership with Daimler Truck North America.” In 2024, the company will also add 10 new full-service Speedco locations next to travel stops, 50 maintenance bays and approximately 60 emergency roadside vehicles to its network. The company is renewing its focus on customer service by expanding training opportunities through Love’s Truck Care Academy and in-shop learning events. Programs will be available for truck care team members at all levels including leadership to develop and refine the skills that get trucks up and running faster. Love’s will also continue to add services to support professional drivers. Love’s Financial will provide drivers with more bundled service options. Also, the addition of TVC Pro-Driver in 2023 provides a subscription-based commercial driver’s license protection service to drivers, a new offering for Love’s and its customers. Through awards from the Federal Highway Administration’s National Electric Vehicle Infrastructure Formula Program, Trillium Energy Solutions plans to add to Love’s national electric vehicle fast-charging network by adding chargers to 29 Love’s location this year. Musket, one of the largest trading and logistic companies in the U.S., and a top producer of diesel exhaust fluid, will continue to grow with fuel and terminal procurement. “Finally, Love’s remains committed to hiring and retaining top talent across The Love’s Family of Companies, including at stores across the country and corporate offices in Oklahoma City, Houston and Memphis,” according to the news release. “The company will continue to focus on growing a culture that makes people want to work for Love’s long-term including top-tier benefits; inclusion and diversity efforts including expanded employee resource groups and paid time off for volunteer hours for corporate employees; and community giving initiatives including its year round Children’s Miracle Network Hospitals giving at the pin pad and five-week balloon campaign that hopes to reach $60 million in lifetime giving this year.”

PGT Trucking set to open 2 new terminals in ’24

Erica N. Guy - January 26, 2024

ALIQUIPPA, Pa. — PGT Trucking Inc., a multi-service transportation firm offering flatbed, dedicated, international and specialized services, will open two new operations facilities by Q2 2024. “Breaking ground on facilities in Laredo, Texas, and Ghent, Kentucky, in 2023, PGT solidified its commitment to fostering growth, pursuing expansion and maintaining superior customer service,” a news release stated. “Now, both facilities are set to open by summer 2024, and PGT is gearing up to support its drivers and customers with additional resources and enhanced transportation solutions in these regions.” PGT’s 7.73-acre, state-of-the-art logistics center in Laredo is under development with Park Avenue Construction within the Pinnacle Industry Center and has an anticipated completion date in mid-Q2, the news release stated. “Our contractors have completed approximately 75% of the yard paving, and exterior concrete wall panels using the ‘Hi-Tech Tilt’ system have been poured and will be erected soon,” said Laurence Cox, PGT Trucking’s vice president of sustainability. “We expect to have all the steel superstructure installed before the end of the month and the building completely under roof by the first week in February.” The custom Laredo facility will include a full-service operations center, modern driver amenities and a truck maintenance shop, providing a regional base for over 70 local drivers. PGT’s new 10.6-acre Ghent property is strategically located within a 10-mile radius of some of its largest customers. The initial four acres are under development with ATECK Inc. “The site has been leveled, and developers have laid the limestone and gravel bases, installing storm drains and various electrical conduits on the property,” Cox said. “The site work is anticipated to be complete by the end of January. A prefab building has been ordered for the project and is expected to be delivered by the end of February. We are on track to be in operation before the end of March.” The new Ghent operation will bring additional jobs to the area, including opportunities for support personnel and commercial truck drivers. “As we open these additional terminals and office locations, we’re not just adding points on the map; we’re creating hubs of innovation, collaboration and unparalleled customer service,” Cox said. “This strategic expansion is more than a physical presence; it’s a commitment to fostering stronger connections, delivering efficiency and anticipating the needs of our customers.”