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More than 56% of drivers optimistic that end of freight recession is near, survey shows

BRENTWOOD, Tenn. — More than 50% of drivers say they are not actively seeking new driving jobs, and more than 56% believe the end of the freight recession could be near. That’s according to the Fall 2023 Driver Survey conducted by Conversion Interactive Agency in partnership with People. Data. Analytics (PDA). The survey delves into various critical topics, including assessing the level of optimism among drivers regarding the state of the freight market. It also explores the pivotal factors that lead drivers to contemplate making a change in their employment, and the preferences they hold when exploring new driving opportunities. In the fourth consecutive biannual survey, more than half of the surveyed drivers said they are not actively seeking new driving opportunities. However, survey findings reveal that 33.3% of drivers are currently in search of employment, a figure that remains virtually unchanged from the previous spring survey, when 33.8% of drivers expressed a desire for new opportunities. According to a statement from Conversion Interactive Agency, this statistic is important to carriers in the transportation industry because it signals the challenge they face in attracting drivers to their fleets.  For truck driver recruiters, the survey results indicate a need to adopt and utilize new tools to pursue and process driver applications using the latest technology. “Embracing innovation and technology is the key to success in today’s driver market, and drivers have already shown their readiness to respond. By leveraging technology like Conversion’s Lead Assist platform with advanced AI automation, we’ve seen a significant boost in the speed and quality of full applications,” said Kelley Walkup, president and CEO of Conversion Interactive Agency. Incorporating new tools and technology for recruitment and retention can be a key differentiator among carriers, particularly during a freight recession, but is always a factor. Notable in the survey is a result regarding driver opinion regarding the economy. A slight majority, 56.1%, of drivers responded “yes” they are optimistic about the impending end of the freight recession. A statement from Conversion Interactive Agency and PDA noted that these results, reflecting a positive sentiment within the industry, were surprising. The statistic suggests drivers may believe the current freight recession, which has persisted for a while, will come to an end in the near future. Historically, freight recessions have typically lasted 18 to 22 months, the current window for this economic downturn, although concrete data indicating a recovery has yet to materialize. “If you have the miles drivers need to make a competitive paycheck in this market, tell that story in your recruitment marketing messages,” Walkup said. “In a freight recession, drivers want to know the freight opportunities your carrier has for them so they know the miles they can expect.” In response to inquiries about their top concerns, drivers voiced two primary worries — meeting monthly bills (72.4%) and the importance of home and family (59.5%). Additionally, nearly 40% of respondents, reflecting the aging workforce in the industry, expressed concerns about saving for retirement. “These results underscore the significance of work-life balance and family-related concerns in the lives of our drivers. The concern over retirement savings aligns with the age demographics observed in the survey,” said Scott Dismuke, vice president of operations at PDA. When asked what they would do if they were in control of a trucking company and had the opportunity to take a single action to attract and retain drivers, 36.4% expressed the need to increase pay, while 23.3% recommended guaranteeing a minimum pay or mileage/loads. These findings underscore the persistent need for predictable pay, driven by factors such as reduced mileage and inconsistent freight. While immediate pay raises may not be the sole solution, focusing on initiatives that help drivers access more miles remains crucial. “It’s worth noting that many existing ‘guaranteed pay’ models are not genuine guarantees; they come with conditions,” Dismuke said. “It’s essential to exercise caution when employing the term ‘guarantee,’ as drivers experiencing a ‘guarantee’ that falls short of expectations are at nearly double the risk of turnover. Effective communication about your driver compensation strategies in your recruitment marketing is paramount. Clear, concise, and transparent messaging plays a critical role in establishing trust with drivers.” As the economy undergoes ongoing transformations, Walkup and Dismuke agree the task of recruiting and retaining drivers will persist as a formidable challenge for trucking companies. Sustaining driver satisfaction is a complex endeavor, with various individual factors in play. Carriers must possess a firm grip on their data and technology, attentively monitoring the feedback from their drivers. Even more crucial, carriers need to identify the source of feedback and respond to drivers’ concerns. To access the full survey report, click here.

DDC FPO unveils new data solutions tool for freight

EVERGREEN, Colo. — Freight Processing Outsourcing firm DDC FPO says it has developed a new auto-extraction and structuring solution for freight as part of its platform of supply chain services and products. “Today, companies are inundated with a staggering 80% to 90% of unstructured data,” said DDC FPO Chief Information Officer Richard Greening. “Every label or form is unique. While there may be some standardization, the vast amount is free form. That 80-90% slows down operations. We are committed to removing that burden from our clients’ teams.” According to a news release, the newest addition engages automated machine learning technology. DDC FPO officials say they use it “to cleanse and structure raw data from freight documents into vital information, applies client business rules and transmits information via APIs to the client’s preferred system — all within seconds of receipt.” The solution also intelligently learns with each document it processes, which allows it to have continuous refinement of the solution’s capabilities. “Data and analytics are central to every freight operation, and optimizing for digitization is key for those providers pursuing a competitive advantage in the supply chain,” Greening said. “To achieve that, one step is to ensure TMS and accounting systems obtain structured information at the time of pick-up.” Auto-extraction and structuring “delivers precise and timely data seamlessly to customers’ preferred information management systems,” the news release stated. According to DDC FPO, some benefits include: Addressing the challenge of consolidating data from diverse sources, including emails, PDFs, images, invoices, paper files, contracts, and more. Providing superior service by proactively routing shipments, optimizing capacity, and invoicing customers accurately. Increasing profitability by streamlining collection processes and reducing administrative time, errors, and costs. Continuous improvement and growth by intelligently learning with each document for ongoing refinement and increased speed without human intervention. “We are dedicated to advancing the supply chain and modernizing the industry,” said DDC FPO’s Group Chief Executive Officer, Jan Trevalyan. “Auto-Extraction & Structuring is fueled by DDC FPO’s 34 years of data capture experience, 18 years of freight expertise, and proprietary, cutting-edge technology.” Trevalyan added, “With this solution, we are laying the foundation for true digital transformation in freight transportation.”

JJ Keller offering big rig crash investigation services

NEENAH, Wis. — To help motor carriers properly follow all post-accident procedures, as well as conduct a thorough investigation of a crash, J. J. Keller & Associates has introduced its new Accident Investigation Procedures Training Service. This onsite, consultant-led program trains a carrier’s fleet manager to understand the post-accident Federal Motor Carrier Safety Regulations (FMCSR) requirements, determine if a driver followed the proper procedures, take corrective action based on the results of an investigation, conduct corrective action training as needed and challenge the preventability of a crash via DataQs. “What makes this training so special is that it not only trains managers on how to quickly and accurately respond to an accident by meeting the letter of the FMCSA standards,” said Sean Nebert, director of transport consulting services at J. J. Keller, “but also how to conduct an investigation that can protect the carrier from legal liability while preventing future accidents.” J.J. Keller’s new training service covers: Driver accident procedures. Accident registers. Drug and alcohol testing requirements. Tiered responses to accidents. Evidence and data preservation. Accident reconstruction. Root cause and preventability analysis. FMCSA crash preventability determination. Follow-up responses to prevent future accidents. “After a crash, there’s a lot to do in a short window of time,” Nebert said. “By having the proper training and processes in place, carriers greatly reduce their risk of costly mistakes being made.” For more information about J. J. Keller’s Accident Investigation Procedures Training Service, visit JJKellerConsulting.com/accident-investigation or call (844) 803-0172

Load posts surge ahead of holiday season, DAT reports

DENVER — Spot truckload rates and load-to-truck ratios for the week of Oct. 29-Nov. 4 suggest seasonality, especially for volumes, according to DAT Freight and Analytics. Shipments are being driven by produce from the Pacific Northwest and Upper Midwest, and fresh turkeys and Christmas trees. Demand for trucks usually ramps up closer to Thanksgiving as groceries and last-minute/unplanned retail freight move more urgently. DAT One Spot market data for Oct. 29-Nov. 4, 2023 (Week 44) Load posts surged 9.0% The number of loads on the DAT One network jumped by 9.0% last week to 1.18 million, the most since the final week of September. Posts were 35% lower year over year and 14% lower than the same week in 2019. Van loads: 573,358, up 7.9% compared to the previous week. Reefer loads: 277,869, up 24.3% week over week and the most since the week after Labor Day. Flatbed loads: 330,694, up 0.4% week over week. Truck posts dropped 10.4% The number of trucks on DAT One dropped by 10.4% to 361,952. That’s 21% lower year over year and down 10% compared to the same week in 2019. Van equipment: 242,430, down 10.4%. Down 23% year over year. Reefer equipment: 69,824, down 11.7%. Down 21% year over year. Flatbed equipment: 49,689, down 9.4%. Down 6% year over year. Load-to-truck ratios jumped Vans: 2.3, up from 1.9 the previous week. Four-week average: 2.1. Reefers: 3.8, up from 2.8 the previous week. Four-week average: 3.1. Flatbeds: 6.5, up from 6.0 the previous week. Four-week average: 6.3. DAT benchmark spot line-haul rates rose for all three equipment types Spot rates were up across the board as seasonality kicked in. National benchmark line-haul rates increased. Van rate: $1.55 net fuel, up 2 cents. Broker-to-carrier rate: $2.08. Reefer rate: $1.88 net fuel, up 6 cents. Broker-to-carrier rate: $2.46. Flatbed rate: $1.83 net fuel, up 1 cent. Broker-to-carrier rate: $2.47.

Trucker Path, We Realize Inc. to offer discounted, reserved truck parking

PHOENIX — Trucker Path and We Realize Inc. are offering secure, flexible, premium truck parking by partnering with major venues and real estate assets nationwide. By making reservations through the Trucker Path app, users can access secured parking at Realize Truck Parking locations for 10% off regular rates, according to a news release. Parking is available on a daily, weekly or monthly basis, including drop and hook spots for trailers, with no contracts or long-term commitments. “Finding truck parking is an ongoing challenge for drivers every day,” said Chris Oliver, CMO at Trucker Path. “The addition of Realize to the Trucker Path Marketplace provides our community of truckers with easy access to safe, secure parking with upscale amenities in a growing number of locations and at a discounted rate.” Using the Realize Truck Parking portal, drivers can currently secure parking at Texas Motor Speedway in Ft. Worth, Texas and at sites in Las Vegas, Nevada and La Vergne, Tennessee. Many more locations are coming in the near future. “We believe the truck parking problem can be solved more quickly and cost effectively with a solution that better utilizes current facilities,” said Cody Horchak, founder and CEO of We Realize. “By partnering with major venues and owners and operators of industrial outdoor storage assets, we are creating a nationwide parking network for the trucking industry by maximizing a tremendous amount of unused parking space that is already in existence. Our goal is to add over 800,000 truck parking spots by 2030.” Realize Truck Parking facilities feature on-site security with personnel and cameras, luxury showers and bathrooms, fencing, stadium lighting and large parking spots. Truck drivers interested in learning more can visit www.realizetruckparking.com/truckerpath.

Daimler Truck North America partners with Hexagon Purus

PORTLAND, Ore. — Daimler Truck North America (DTNA) has announced its partnership with Hexagon Purus to provide complete vehicle integration of the battery electric Freightliner eM2. The integration will incorporate Hexagon Purus’ proprietary zero-emission technology, which includes battery systems, auxiliary modules and more, according to a news release. It will also have power-take-off options for supplying power to the vocational body and the equipment.  DTNA executives said their decision to agree to this partnership was based on the long-standing relationship and shared expertise with Hexagon Purus. In a previous project where both parties worked together, DTNA worked with the Agility division of Hexagon on developing a Freightliner natural gas fuel tank integration and Hexagon’s zero-emission division on the first generation of electric vehicles of DTNA. “We are excited about our collaboration with Hexagon Purus and the potential it holds for the future of electric vocational trucks,” said Aaron Scates, vice president of vocational and medium-duty market development at DTNA. “With our shared history, combined experience, and the remarkable battery technology offered by Hexagon Purus, we look forward to yielding effective and flexible solutions for our vocational customers.” Earlier this year, DTNA unveiled the vocational Freightliner eM2 prototype truck with vocational upfit options as part of an innovation project together with selected Truck Equipment Manufacturers, Alamo and Altec, to lay the groundwork for expanding zero-emission solutions for vocational customers, particularly in the utility, sweeper, dump, construction, towing, and refuse segments. “We are proud to continue our long-standing relationship with DTNA, and we look forward to supporting them on this vocational vehicle program and driving their transition to zero-emission mobility,” said Morten Holum, CEO of Hexagon Purus. “DTNA has been an important zero-emission technology development partner for Hexagon Purus in North America for several years through our participation in the Innovation Fleet program.”

New ATA forecast projects continued truck freight growth

WASHINGTON — The American Trucking Associations (ATA) has released new projections showing truck tonnage will grow to 14.2 billion tons by the year 2034, securing the industry’s position as the dominant mover of goods in the United States. “In this edition of Forecast, you will see that the trucking industry continues to dominate the freight transportation industry in terms of both tonnage and revenue, comprising 72.2% of tonnage and 79.2% of revenue in 2022,” said ATA Chief Economist Bob Costello. “That market share will continue to hold over the next decade, as the country will still rely on trucking to move the vast majority of freight.” Among the key findings in ATA Freight Transportation Forecast 2023 to 2034 are: Overall truck tonnage will grow from an estimated 11.3 billion tons this year to 14.2 billion tons in 2034, this represents 72.4% of the freight tonnage in 2023 and 72.6% of tonnage at the end of the forecast period. Trucking’s revenues will grow from $1.01 trillion in 2023 to $1.51 trillion in 2034, which will account for 78.8% of the freight market. In other modes: As coal and bulk petroleum shipments wane over time, rail carload tonnage will fall from 11% of total freight to 10.1% by 2034. Rail intermodal revenues will grow from $21.7 billion in 2023 to $35.2 billion in 2034. Air cargo tonnage will grow from 17.6 million tons this year to 23.7 million tons in 2034. Pipelines will see their share of freight tonnage grow from 9.8% in 2023 to 10.4% in 2034. “Knowing where our industry and economy are headed is critical for decision makers,” said ATA President and CEO Chris Spear. “This Freight Forecast should be top of mind for policymakers in Washington, Sacramento and wherever decisions are being made that affect trucking.”

J.B. Hunt’s Shelley Simpson named 2023’s Influential Woman in Trucking

DALLAS — The Women In Trucking Association (WIT) has presented Shelley Simpson, president of J.B. Hunt Transport Services, with its 2023 Influential Woman in Trucking award. The award is sponsored by Daimler Truck North America (DTNA) and recognizes the achievements of female role models and trailblazers in the trucking industry, according to a news release. The winner was announced on Nov. 7 during the WIT Accelerate! Conference & Expo in Dallas. The announcement followed the panel discussion Unstoppable Women in Trucking You Must Know About, facilitated by Tracy Mack-Askew, chief engineer of chassis, propulsion and vocational engineering at DTNA. Finalists for the 2023 award included Tori Blake, chief financial officer and co-owner of Western Logistics Express and WLX, and Megan Ferguson, vice president of end-to-end delivery acceleration at Walmart. “It’s a privilege for Women In Trucking to recognize Shelley Simpson as our 2023 Influential Woman in Trucking award winner,” said Jennifer Hedrick, WIT president and CEO. “Shelley’s passion and leadership for this field, including her commitment to expanding gender diversity in transportation, have been evident throughout her nearly 30-year career.” Angela Lentz, chief people officer at DTNA, also offered words of support for Simpson and her fellow nominees. “On behalf of Daimler Truck North America, our congratulations to all of the remarkable finalists for the 2023 Influential Woman in Trucking award who have and continue to work tirelessly to create expanded opportunities for women in our industry,” Lentz said. “In addition, I want to congratulate Shelly Simpson for being named the 2023 Influential Woman in Trucking. Her amazing and vast career, commitment to others and impact on trucking are all impressive accomplishments worthy of this unique recognition.” Since joining J.B. Hunt as an hourly customer service representative, Simpson has held multiple positions for business segments across the company, including most recently serving as chief commercial officer and executive vice president of people and human resources. In 2007, Simpson was named president of Integrated Capacity Solutions (ICS), a business unit she helped create. While continuing to develop ICS, Simpson assumed sales and marketing executive responsibilities in 2011 and was appointed chief marketing officer. She took on additional leadership in 2014 as president of J.B. Hunt’s truckload business segment. Simpson was named chief commercial officer in 2017, leading strategic direction of marketing, sales, customer experience and external product development, including J.B. Hunt 360°, the company’s technology platform for freight matching and operational efficiency. As the company evolved J.B. Hunt 360 and its technology-driven services, Simpson was also responsible for commercializing them on a global scale as the leader of International Services. In 2020, she was named executive vice president of people and human resources, leading the company’s efforts to create a more inclusive culture and work environment. Simpson was named president in 2022 and currently provides management and performance oversight for all company business units, in addition to emerging technology, developing services and people and human resources. Simpson serves on the board for multiple organizations, including the Mercy Health Foundation and the Dean’s Executive Advisory Board for the Sam M. Walton College of Business at the University of Arkansas, in addition to serving on the DSA Selection Committee for the Council of Supply Chain Management Professionals. In 2016, she received the Distinguished Woman in Logistics award by WIT and was named 2017 ATHENA Woman of the Year at the NWA Business Women’s Conference. In 2020, she received the Power50 Award by the National Diversity Council and was named a 2020 Top Influencer by Arkansas Money & Politics. In 2021, she was named one of the Top 100 Women in Supply Chain by Supply Chain Digital and has been named one of the top 100 HR Professionals by the National Diversity Council in 2022. She recently received the 2022 Woman of the Year in Innovation award by the Women’s Foundation of Arkansas and the Excellence in Free Enterprise Award from Economics Arkansas. Originally from Russellville, Arkansas, Simpson graduated from the University of Arkansas with a bachelor’s degree in marketing. She lives in Rogers, Arkansas, with her husband David and three children.

Ryder named a top company for women

MIAMI — For the fifth consecutive year, Ryder has been named a Top Company for Women to Work For in Transportation, according to Redefining the Road, the official magazine of the Women In Trucking Association (WIT). The award acknowledges top companies “that demonstrate a steadfast commitment to fostering a gender-inclusive environment in the transportation workforce,” a news release noted. Ryder also earned a place in The Elite 30, a new honor this year reserved for companies with the highest number of industry-wide votes. “We’re proud to exceed industry averages and to accelerate female career growth through programs such as Ryder’s Women Leadership Forum, which has supported the professional development of women leaders for more than a decade,” said Frank Lopez, chief human resources officer at Ryder. More than 27,000 transportation professionals, including operations and human resources executives and professional drivers, evaluated Ryder’s nomination in an industry-wide vote. “Organizations recognized on this impressive list have proven they are supportive of gender diversity by accommodating family and work balance; offering competitive compensation, benefits, and professional growth; and providing career advancement opportunities,” said Brian Everett, group publisher and editorial director of Redefining the Road. “Ryder is commended for earning this award.” Earlier this year, two of Ryder’s leaders were recognized as part of WIT’s 2023 Top Women to Watch in Transportation for their significant career accomplishments, as well as support of other women in the industry. Ryder also supports WIT’s scholarship program, which helps make technical training and education more affordable for women pursuing a career in transportation. “It’s incredibly important to recognize companies who align with our mission here at WIT,” said WIT President and CEO Jennifer Hedrick. “Ryder actively works to overcome barriers, proving that an inclusive, empowering workforce is possible.” WIT Board member Lesley Kerr, Ryder’s vice president of human resources, said the company is proud to be an employer of choice. “Recognizing and appreciating diverse perspectives and experiences is essential to Ryder, and it’s critical to the ever-evolving transportation industry,” she said. For the full list of Women In Trucking’s 2023 Top Companies for Women to Work For in Transportation, click here.

J.B. Hunt, BNSF launch new intermodal service

LOWELL, Ark. and FORT WORTH, Texas — J.B. Hunt Transport Services and BNSF Railway have a new intermodal service called Quantum. According to a news release, “Quantum provides the consistency, agility and speed needed to transport service-sensitive highway freight using rail. Solutions are customized specifically to each customer’s needs, taking into account service expectations, transit requirements and operational procedures.” Quantum’s management team consists of both J.B. Hunt and BNSF operators who are sharing office space at a new Intermodal Innovation Center at BNSF headquarters in Fort Worth, Texas. Their workflow consists of every step of the intermodal shipping process.  “Quantum allows customers with service-sensitive freight to benefit from the cost savings of intermodal while reducing their carbon footprint and maintaining the level of service and consistency needed in their supply chains,” said Darren Field, president of intermodal at J.B. Hunt. “Our joint service and capacity are unmatched. When combined with J.B. Hunt’s broad range of flexible solutions, there’s no provider in the industry who can match Quantum’s ability to move your most important freight.” With Quantum technology, customers can anticipate up to 95% on-time delivery, which equals up to customers receiving their package a day faster, the news release noted. “We are excited to bring this innovative vision to life by creating Quantum with J.B. Hunt,” said Tom Williams, group vice president of consumer products at BNSF. “Built on a long-standing strategic partnership foundation and decades of intermodal capacity expansion investments, Quantum will provide a faster and more consistent intermodal solution to customers. Our new Intermodal Innovation Center will foster continued collaboration between our companies to continue evolving with our customer’s supply chain needs and create the intermodal solution of the future.” The team over Quantum will provide 24/7 oversight of every load of Quantum and will quickly be able to detect and resolve any issues before the final delivery. “Quantum provides the exceptional intermodal service needed to consistently meet the demands of the most complex freight,” said Spencer Frazier, executive vice president of marketing and sales at J.B. Hunt. “Its solutions are flexible to address supply chain challenges in real time. Customers have access to multiple modes for unexpected concerns such as potential delays, volume surges or production issues.” The service and technology that was integrated allows the Quantum team to identify variability and also recommends an alternative solution among standard intermodal. Pricing for Quantum will be based on the need of the customer, but customers can anticipate the cost ranging from the traditional intermodal service and other-the-road service.

Schneider National reports 3Q earnings

GREEN BAY, Wis. — Schneider National has announced financial results for this year’s third quarter. “Our enterprise experienced year-over-year declines in revenue and earnings in the third quarter, a period which we believe represents the most challenging phase of this prolonged freight recession,” said Mark Rourke, president and chief executive officer of Schneider. “Our results were driven by ongoing price pressures primarily in our network businesses, as well as other headwinds such as fuel, bad debt, and lower equipment gains.” Rourke said that “Though we are feeling the effects of the current environment across the business, our performance is augmented by our platform diversity that we have strategically advanced over the past several years.” He said the company is actively onboarding new dedicated business within its truckload segment, and while this startup activity is accompanied by near-term friction costs, “we are pleased with the growth and contributions of this key component of our portfolio.” Dedicated, with the addition of M&M Transport this quarter, now comprises more than 60% of Schneider’s total truckload fleet, Rourke said. “In Intermodal, our complementary rail partnerships are providing synergistic and compelling service and transit times,” he added. “Our Logistics segment continues to drive new business into the Enterprise through both brokerage and Power Only services while effectively managing through challenging market conditions. As we navigate the late stages of the current freight cycle, we are preparing our business for the inevitable market recovery and advancing our strategic growth objectives for Dedicated, Intermodal, and Logistics.” Results of Operations (unaudited) The following table summarizes the company’s results of operations for the periods indicated. Enterprise Results Enterprise net income for the third quarter of 2023 was $35.6 million, a decrease of $90.2 million, or 72%, compared to the same quarter in 2022. The company recorded net gains on equity investments of $2.3 million compared to $25.9 million in the third quarter of 2022, which is reflected in Other expense (income) – net on the income statement. At September 30, 2023, the company had a total of $289.0 million outstanding on various debt instruments compared to $215.1 million as of December 31, 2022. The company had cash and cash equivalents of $58.5 million and $385.7 million as of September 30, 2023 and December 31, 2022, respectively. The company’s effective tax rate was 22.8% in the third quarter, compared to 25.0% in the same quarter of the prior year. In February 2023, the company announced the approval of a $150.0 million stock repurchase program. As of September 30, 2023, the company has repurchased $50.6 million under the program year to date. In July 2023, the company’s Board of Directors declared a $0.09 dividend payable to shareholders of record as of September 8, 2023. This dividend was paid on October 10, 2023. On October 30, 2023, the company’s Board of Directors declared a $0.09 dividend payable to shareholders of record as of December 8, 2023, expected to be paid on January 8, 2024. As of September 30, 2023, the company had returned $47.7 million in the form of dividends to shareholders year to date. Results of Operations – Reportable Segments Truckload Truckload revenues (excluding fuel surcharge) for the third quarter of 2023 were $535.3 million, a decrease of $35.9 million, or 6%, compared to the same quarter in 2022. Results were driven by unfavorable pricing in network, partially offset by the impact of organic dedicated growth and M&M Transport revenues. The impact of productivity improvements were more than offset by pricing declines in the quarter. Truckload revenue per truck per week was $3,909, a decrease of 6% compared to the same quarter in 2022. Revenue per truck per week in network decreased 16%, while revenue per truck per week in dedicated increased 2%, compared to the same quarter in 2022. Truckload income from operations was $24.5 million in the third quarter of 2023, a decrease of $58.7 million, or 71%, compared to the same quarter in 2022 due to lower price in network, higher fuel and other inflationary costs, bad debt, and friction costs related to dedicated new business implementations. Truckload operating ratio was 95.4% in the third quarter of 2023, compared to 85.4% in the third quarter of 2022. Intermodal Intermodal revenues (excluding fuel surcharge) for the third quarter of 2023 were $263.0 million, a decrease of $71.7 million, or 21%, compared to the same quarter in 2022 driven by lower revenue per order and volume, which decreased 16% and 9%, respectively, compared to the third quarter of 2022. Intermodal income from operations for the third quarter of 2023 was $11.1 million, a decrease of $20.0 million, or 64%, compared to the same quarter in 2022, due to negative pricing and volume pressures, partially offset by lower rail and dray-related costs. Intermodal operating ratio was 95.8% in the third quarter of 2023, compared to 90.7% in the third quarter of 2022. Logistics Logistics revenues (excluding fuel surcharge) for the third quarter of 2023 were $326.0 million, a decrease of $138.2 million, or 30%, compared to the same quarter in 2022 primarily due to decreased revenue per order, which continues to be unfavorably impacted by lower market prices, and lower brokerage volumes which decreased 11% year over year. Logistics income from operations for the third quarter of 2023 was $8.5 million, a decrease of $19.4 million, or 70%, compared to the same quarter in 2022 due to lower volumes and net revenue per order, and decreased port dray earnings. Logistics operating ratio was 97.4% in the third quarter of 2023, compared to 94.0% in the third quarter of 2022. Business Outlook “Our second half 2023 earnings are clearly challenged by ongoing pricing pressures, muted seasonality, and transitory cost items,” said Darrell Campbell, executive vice president and chief financial officer at Schneider. “We are intently focused on margin restoration particularly in our network businesses, which includes the proactive execution of pricing strategies and positioning our Enterprise for improving market conditions, which we expect to materialize in the first half of 2024. Our updated guidance for full year 2023 adjusted diluted EPS is $1.40 – $1.45 and for net capital expenditures is a range of $550 – $575 million, with a full year effective tax rate estimated at 24.5%.”    

Transflo, Bestpass partner for toll management project

TAMPA, Fla. — Supply chain management firm Transflo has announced a partnership with toll management company Bestpass that will enable “thousands of fleets and their professional drivers to further simplify in-cab and back-office operations through a comprehensive toll management platform,” a news release stated. “This partnership marks a robust enhancement to the ever-growing Transflo ecosystem of connected technologies.” The Bestpass Complete Pass system consolidates more than 50 tolling authorities across the United States into a single platform. This consolidation also covers state-by-state accounts, payment processes, reporting systems and in-cab devices, the news release notes. In addition to a single transponder, Bestpass ensures fleet plates are on file with relevant tolling authorities, avoiding future violations. And with on-demand toll reporting, Bestpass enables alerts to flag unauthorized use. “We’re thrilled to announce our partnership with Bestpass to streamline toll management for our customers,” said Justin King, chief product officer at Transflo. “With the Bestpass Complete Pass system, we’re offering seamless automated toll payments directly from the Transflo driver app. This enhances our commitment to reduce friction across the supply chain, making operations more efficient and cost-effective for over 65,000 fleets and more than 800,000 drivers.”

Ryder reports 3Q 2023 results

MIAMI — Ryder System Inc. has reported results for the three months ended Sept. 30. Ryder Chairman and CEO Robert Sanchez offered an overview of what the successful third quarter means for the company and its shareholders. “Our strong third quarter performance and increased 2023 guidance demonstrate the ongoing effectiveness of our balanced growth strategy despite a challenging freight environment,” he said. “ROE (return on equity) of 21% remained above our high-teens target and all three business segments achieved their pre-tax earnings targets during the quarter.” Sanchez added that “the transformative changes we’ve made to de-risk the business model, enhance returns and drive profitable growth are contributing to our significant outperformance versus prior cycles and are providing us with additional opportunities to increase shareholder value. Our recently announced agreement to acquire Impact Fulfillment Services supports our strategy to accelerate growth in our supply chain business. The transaction is set to add contract packaging and manufacturing capabilities that complement our existing suite of port-to-door logistics services, allowing us to expand with existing customers while adding new brands to our extensive customer base.” Sanchez also said the company’s enhanced asset management playbook is “leading to improved returns over the cycle.” “We reduced our tractor rental fleet by 18% year over year to align with lower market demand by redeploying vehicles into longer-term lease, dedicated and supply chain applications,” he added. “In addition, our expanded retail sales capacity has allowed us to sell a higher number of used vehicles through the retail channel and maximize proceeds.” Sanchez said that the company’s stronger earnings profile our a disciplined capital allocation provide ample capacity for organic growth, strategic acquisitions and returning capital to shareholders through share repurchases and dividends. “Our board recently authorized new discretionary and anti-dilutive share repurchase programs, as well as payment of our 189th consecutive quarterly dividend, demonstrating that returning capital to shareholders continues to be a key priority for us,” he noted. “We remain confident that our transformed business model is set to deliver a stronger, more resilient return profile while remaining well positioned to benefit from a cycle upturn.” Earnings and total revenue were reported as follows:           3Q 2023 Segment Review FMS total revenue and operating revenue decreased 6% and 3%, respectively. Total revenue reflects lower fuel revenue passed through to customers and lower operating revenue. Operating revenue reflects lower rental demand and 2% negative impact from UK exit, partially offset by higher ChoiceLease and SelectCare revenue. FMS EBT decreased to $169 million. Reflects lower used vehicle sales and rental results. Lower used vehicle gains due to a 30% and 31% decrease in used truck and tractor pricing, respectively, partially offset by higher volumes; sequentially from second quarter of 2023, used truck and tractor pricing decreased 6% and 8%, respectively. Rental power-fleet utilization was 75%, down from a record level of 83% in prior year on a 7% smaller average power fleet. FMS EBT as a percentage of FMS operating revenue is at the high end of the company’s long-term target of low double digits for the third quarter and above the target for the trailing 12-month period. Supply Chain Solutions: Higher Earnings Primarily Reflect Operating Revenue Growth SCS total revenue decreased 1% and operating revenue grew 9%. Decrease in total revenue primarily reflects lower subcontracted transportation passed through to customers, partially offset by higher operating revenue. Increase in operating revenue primarily driven by new business and increased pricing. SCS EBT grew 14%. Increase primarily due to higher operating revenue and lower incentive-based compensation costs, partially offset by lower volumes in the omnichannel retail vertical. SCS EBT as a percentage of SCS operating revenue is within the company’s long-term target of high single digits for the third quarter but below target for the trailing 12-month period. DTS total revenue decreased 1% and operating revenue grew 3% Total revenue reflects lower fuel revenue passed through to customers, largely offset by higher operating revenue Operating revenue increased primarily due to inflationary cost recovery DTS EBT is generally in line with prior year DTS EBT as a percentage of DTS operating revenue is within the company’s long-term target of high single digits for the third quarter and at the high end for the trailing 12-month period Corporate Financial Information Unallocated Central Support Services (CSS) Unallocated CSS costs declined to $20 million from $21 million in the prior year, primarily due to lower professional fees. Capital Expenditures, Cash Flow and Leverage Year-to-date capital expenditures increased to $2.6 billion in 2023, compared to $2.0 billion in 2022, reflecting higher investments in the lease fleet and accelerated timing of OEM deliveries, partially offset by lower investments in commercial rental. Year-to-date net cash provided by operating activities from continuing operations was $1.8 billion, consistent with the prior year, as lower working capital needs were offset by reduced earnings. Free cash flow (non-GAAP) of $32 million, compared to $887 million in 2022, primarily reflects an increase in capital expenditures and prior-year proceeds of approximately $300 million from the FMS UK exit. Debt-to-equity as of Sept. 30, 2023, was 214%, compared to 216% at year-end 2022, and remains below the company’s long-term target of 250% to 300%. Share Repurchase Programs In October, the Board of Directors authorized two new share repurchase programs. Under a new discretionary repurchase program, Ryder management is authorized to repurchase up to 2.0 million shares of common stock at its discretion. Under a new anti-dilutive repurchase program, Ryder management is authorized to repurchase up to 2.0 million shares of common stock issued to employees under the company’s employee stock plans since August 31, 2023. Both programs commenced Oct. 12, 2023, and expire Oct. 12, 2025. The company previously authorized discretionary repurchase program was completed in September, and the anti-dilutive repurchase program expired in October. Outlook “Our business model transformation is enabling us to achieve our earnings and return targets throughout the cycle,” said Ryder Chief Financial Officer John Diez. “Despite weakening freight conditions and used vehicle pricing that peaked over a year ago, we have demonstrated the ability to deliver strong results in a difficult environment. We remain confident that the continued execution of our balanced growth strategy will drive long-term value creation and shareholder returns.”

Landstar System reports results for 3Q 2023

JACKSONVILLE, Fla. — Landstar System Inc. has announced that its basic and diluted earnings per share (EPS) totaled $1.71 on revenue of $1.289 billion during the third quarter this year, according to a news release. Last year, the company reported an EPS of $2.76 on revenue of $1.816 billion during the third quarter. “The soft freight market fundamentals experienced during the 2023 second quarter continued throughout the 2023 third quarter and made for challenging comparisons against our record 2022 third quarter performance,” said Landstar President and Chief Executive Officer Jim Gattoni. Gattoni continued, “Lackluster demand, driven by continued weakness in the U.S. manufacturing sector and the ongoing impact of an inflation-challenged consumer goods sector, plus the continuation of a loose truck capacity market drove Landstar’s truck revenue per load and volumes in the 2023 third quarter below prior-year levels. The number of loads hauled via truck declined 16% as compared to the 2022 third quarter, at the high end of the company’s guidance included as part of the company’s 2023 second-quarter earnings release on July 26, 2023, while truck revenue per load declined 12% as compared to the 2022 third quarter, at the low end of the company’s previously issued guidance.” Landstar’s gross profit was $128.1 million, and variable contribution was $187.4 million — both in the 2023 third quarter. In the previous year, the company’s gross profit was $185.7 million, and variable contribution was $245.7 million. $57.6 million and $58.3 million are the differences between 2022 and 2023 third-quarter results.  Trailing the 12-month return on average shareholders’ equity was 32%, and the return on invested capital, representing net income divided by the sum of average equity plus average debt, was 29%. The company is currently authorized to purchase up to 2,910,339 shares of company’s common stock under its previously announced share purchase programs. Landstar announced that its Board of Directors has declared a quarterly dividend of $0.33 per share payable on Dec. 1, 2023, to stockholders of record as of the close of business on Nov. 7, 2023. It is currently the intention of the Board to pay dividends on a quarterly basis going forward. “The company’s balance sheet continues to be very strong, with cash and short-term investments of approximately $497 million as of Sept. 30, 2023,” Gattoni said. “Cash flow from operations was $304 million through the first three quarters of fiscal year 2023.” Truck transportation revenue hauled by independent business capacity owners (BCOs) and truck brokerage carriers in the 2023 third quarter was $1,173.8 million, or 91% of revenue, compared to $1,598.8 million, or 88% of revenue, in the 2022 third quarter. Truckload transportation revenue hauled via van equipment in the 2023 third quarter was $665.6 million, compared to $914.2 million in the 2022 third quarter. Truckload transportation revenue hauled via unsided/platform equipment in the 2023 third quarter was $378.1 million, compared to $453.9 million in the 2022 third quarter. Revenue from other truck transportation, which is largely related to power-only services, in the 2023 third quarter was $102.0 million, compared to $195.3 million in the 2022 third quarter. Revenue hauled by rail, air and ocean cargo carriers was $88.9 million, or 7% of revenue, in the 2023 third quarter, compared to $191.9 million, or 11% of revenue, in the 2022 third quarter. “Through the first several weeks of October, the number of loads hauled via truck has trended below the historical, pre-pandemic end of third quarter to the beginning of fourth quarter sequential patterns, while truck revenue per load has thus far trended reasonably in line with these historical, pre-pandemic sequential patterns. As a reminder, the 2022 fourth quarter included 14 weeks of operations, while the 2023 fourth quarter will include 13 weeks,” Gattoni said. Gattoni added that “taking the extra week in 2022 into consideration and assuming a continuation of the October trends coupled with our expectation of a muted peak season, I expect revenue per load on loads hauled via truck to be in a range of 6% to 8% below the 2022 fourth quarter and the number of loads hauled via truck to be in a range of 20% to 22% below the 2022 fourth quarter. As such, I anticipate revenue for the 2023 fourth quarter to be in a range of $1.225 billion to $1.275 billion.” Gattoni said that based on the range of revenue estimated for the 2023 fourth quarter, “I would anticipate EPS to be in a range of $1.60 to $1.70. The anticipated range of EPS for the 2023 fourth quarter includes estimated insurance and claims costs of approximately 5.5% of BCO revenue. These costs were 5.6% of BCO revenue over the first nine months of 2023. The anticipated range of EPS for the 2023 fourth quarter also reflects an estimated effective income tax rate of 24.5%.”

Aurora announces 3Q 2023 results

PITTSBURGH — Aurora Innovation has announced its third quarter 2023 results. Aurora’s shareholder letter, including its financial results, is available on its investor relations website at ir.aurora.tech. “The third quarter was a period of intense focus on execution and capital discipline at Aurora,” said Chris Urmson, co-Founder and chief executive officer at Aurora. “Through these efforts, we are making strong progress toward closing our Safety Case, readying our hardware kit for commercial launch, and further improving the Aurora Driver’s performance in commercial settings. Alongside the maturing and scaling of our operations between Dallas and Houston, our teams are focused on preparing for an on-schedule commercial launch at the end of 2024.” The company will hosted a business review conference call on Nov. 1, along with a webcast, at ir.aurora.tech. A replay of the webcast will be available for 30 days following the call.

Nations Capital, Ritchie Bros. to sell Yellow Corps’ rolling stock assets

ALLIANCE, Ohio — A U.S. bankruptcy court has approved Nation’s Capital (NCI) and Ritchie Bros. Auctioneers to handle the sale of Yellow Corporation’s assets. According to a news release, “the companies will utilize the expansive footprint of both Ritchie Bros. and IAA (Insurance Auto Auctions) facilities, to manage the relocation, transportation, refurbishment, inventory, storage and sale of the rolling stock assets, including approximately 60,000 units of trucks, trailers and miscellaneous LTL (less-than-load) support equipment located across the United States and Canada at over 300 terminal locations.” NCI and Ritchie Bros. will implement a multi-faceted sales strategy, including private treaty and strategic bulk sales, as well as live and fully digital formats, to maximize the value of the trucks and trailers throughout 2024. “We are honored to provide Yellow Corporation a comprehensive solution to maximize the value of its rolling stock assets,” said Jim Burke, executive vice president at NCI. “The historic size and complexity of this transaction required a highly coordinated effort between the teams at NCI, Ritchie Bros. and the company. Together with Ritchie Bros., we are prepared to lead one of the largest disposition events in our industry.” For nearly 100 years, Yellow Corporation was one of the largest logistics and LTL networks in North America with local, regional, national and international capabilities. “We are excited to offer the market this extensive fleet of trucks, trailers and support equipment from what was one of North America’s largest carriers,” said Zac Dalton, Executive Vice President, NCI. “Our experience and proven track record with large fleet sales in the transportation space was key in winning the trust of this customer.” Meanwhile, auto transport giant Jack Cooper is mounting an effort to bring Yellow Corp back to life, according to a Reuters report, which cites “multiple sources familiar with the discussions.” If the deal works out, some 30,000 union jobs would be saved. Yellow filed for bankruptcy protection in August after several weeks of heated negotiations with the Teamsters Union. The company announced it was shutting down on July 30.

Shipping company Maersk to slash 10,000 jobs

COPENHAGEN, Denmark — Maersk, the world’s biggest shipping company, said Friday that it plans to eliminate 10,000 jobs due to what it described as a challenging environment for container trade and logistics services. The company said the move would result in savings of $600 million in 2024. The announcement was made as Copenhagen-based Maersk presented its quarterly report, which listed profits before taxes at $691 million, down from $9.1 billion for the same period last year. The report cited “challenging market conditions resulting in substantially lower freight rates compared to the abnormally high rates in 2022.” A.P. Moller-Maersk CEO Vincent Clerc said the company will continue to streamline its organization and operations. ”Our industry is facing a new normal with subdued demand, prices back in line with historical levels and inflationary pressure on our cost base,” Clerc said. “Given the challenging times ahead, we accelerated several cost- and cash- containment measures to safeguard our financial performance.” The company’s revenue for Q3 was $12.1 billion in 2023 compared to $22.8 billion for the same period in 2022. The company said it now expected annual global container volume growth in the range of -2% to -0.5% compared to -4% to -1% previously.

Love’s Travel Stops opens locations in Louisiana, Missouri 

OKLAHOMA CITY — Love’s Travel Stops is now serving customers in Shreveport, Louisiana, and Herculaneum, Missouri, with two locations that opened on Nov. 2. The location in Shreveport, located off Interstate 49 at Exit 215 (5430 N. Market St.), adds 80 jobs and 109 truck parking spaces to Caddo Parish, a news release stated. The location in Herculaneum, located off Interstate 55 at Exit 178 (1199 McNutt St.), adds 55 jobs and 80 truck parking spaces to Jefferson County. “Love’s is excited to add two new locations across the nation’s highways to cater to customers in Shreveport and Herculaneum,” said Shane Wharton, president of Love’s. “These two locations will offer a diverse list of food choices, including Love’s brand-named snacks, fresh food options, restaurant concepts and more.” The locations are open 24/7 and offer bean-to-cup gourmet coffee, brand-name snacks and Love’s Mobile to Go Zone with today’s latest technologies. The locations also include: Shreveport More than 14,000 square feet. Carl’s Jr. (opening Nov. 6). 109 truck parking spaces. 66 car parking spaces. Three RV parking spaces. Seven diesel bays. Seven showers. Laundry facilities. CAT scale. Herculaneum More than 13,500 square feet. Arby’s (opening Nov. 6). 80 truck parking spaces. 55 car parking spaces. Five RV parking spaces. Eight diesel bays. Seven showers. Laundry facilities. CAT scale. In honor of the grand openings, Love’s will donate $2,000 split between Northwood High School and Green Oaks High School in Shreveport. Love’s will also donate $2,000 each to Jeffco Shop with a Cop and Kade’s Playground in Herculaneum.

CRST acquires BCB Transport

CEDAR RAPIDS, Iowa — Transportation and logistics company CRST has acquired BCB Transport of Mansfield, Texas, officials announced on Nov. 1. “Privately held, BCB Transport was built with the goal of empowering its team members through collaboration and open communication,” a news release stated. “Born from the company’s mission to: Be Safe, Communicate, and if you can, Be On-Time, BCB has achieved impressive growth over the past 12 years, strategically operating a flexible asset and asset light capacity model in one of the nation’s densest transportation corridors.” Hugh Ekberg, CRST President and CEO, said he and his company are “thrilled to have BCB join Team CRST. With an impeccable track record for performance and data driven mindset, BCB will complement CRST’s Capacity Solutions business allowing us to find more ways to maximize our capacity and provide unlimited solutions for customers. In addition to operational excellence, BCB’s industry leading safety efforts align perfectly with CRST’s culture that keeps safety at the core of all we do.” Rick Larkin, BCB co-founder, praised CRST. “In CRST, we’ve found the perfect match for our business,” he said. “A team that shares our commitment to safety first, customer service and empowering all team members aligns with the principles we defined when we started BCB,” said “We are excited to take this next step and formally bring our teams together.”

Stertil-Koni welcomes Optimized Distributor Partners to its network

STEVENSVILLE, Md. — Stertil-Koni officials said they have welcomed Optimized Distribution Partners (ODP) — a family-owned and operated automotive equipment distribution and service company located in Commerce City, Colorado — to their North American distributor network. “We know automotive equipment, with in-depth expertise in vehicle lifts, wheel service, shop equipment and heavy-duty service equipment,” an ODP news release stated. ODP is headed by Jeff Murray, president, and his brother, Tim Murray, vice president. ODP also has a Commercial Sales Specialist, Matt Elder, who will focus on the Stertil-Koni product line, the news release noted. In making the announcement, Stertil-Koni General Manager Scott Steinhardt said, “We are extremely pleased to welcome the ODP team to the Stertil-Koni network. What makes this partnership so special is that both companies have built their respective businesses by focusing on the delivery of world-class customer care, superior product selection, and an unwavering focus on safety.” Stertil-Koni President Dr. Jean DellAmore concluded: “ODP brings a deep, experienced team to the Colorado region for Stertil-Koni, and we are pleased to welcome them into our growing family of outstanding distributors.”