Business Archives

Report highlights FedEx’s economic impact as company marks 50th anniversary

The Trucker News Staff - October 31, 2023

MEMPHIS, Tenn. — FedEx Corp. has released its annual economic impact report analyzing the company’s worldwide network and role in fueling innovation during its 2023 fiscal year. Produced in consultation with Dun & Bradstreet, the study outlines the impact FedEx has on individuals and communities around the globe — otherwise known as the ‘FedEx Effect.’ “FedEx has helped shape global supply chains and the e-commerce revolution over five decades by transforming the way businesses exchange goods, services, and ideas — all while continuously exceeding the evolving needs of our customers,” said Raj Subramaniam, president and CEO of FedEx Corporation. “This report underscores our significant contributions to the economy and dedication to making a positive difference in the communities where we operate.” The report reveals that FedEx contributed more than $80 billion in direct impact to the global economy in fiscal year 2023, despite recent economic pressures. “This activity reflects the scale of the network FedEx has developed and the company’s ongoing efforts to enhance its innovative services that help businesses of all sizes connect with customers and strengthen their operations,” a news release stated. FedEx celebrated 50 years of operations on April 17, 2023. The company has the most extensive transportation network in the world, providing service to more than 220 countries and territories. Additionally, FedEx employs over 500,000 people across more than 5,000 facilities and moves approximately 14.5 million packages per day, according to the news release. Key highlights of the FedEx Economic Impact Report include: Indirect impact — FedEx indirectly contributed an estimated $35 billion to global net economic output in fiscal year 2023. Supply chain — FedEx contracted with roughly 100,000 suppliers in fiscal year 2023 — 90% of which were small businesses. An analysis of spending with roughly 73,000 unique suppliers over the calendar year 2022 revealed that the company’s spending with these suppliers during that time supported 1.1 million jobs. Operational enhancements — FedEx continued to improve its network and services in fiscal year 2023. This included opening new facilities across a range of locations, including Ireland, Poland, Australia, and South Korea; enhancing many existing facilities by introducing advanced sorting equipment, adding warehouse capacity, and expanding airport ramp and road truck operations; and implementing operational efficiencies in markets like Alaska. Trade — FedEx continued supporting trade policies that offer greater market access and efficiency for its customers. This included advocating in favor of provisions like de minimis allowances, which enable individuals and businesses of all sizes to import low-value goods without duties and taxes. Small businesses — FedEx supported small business growth — a major driver of economic activity globally — by providing small business resource hubs in certain regions and tailored logistics and customs services aimed at helping unlock new markets. The company also awarded small business grants to 77 companies around the world during fiscal year 2023. Sustainability — In fiscal year 2023, FedEx added more electric vehicles (EVs) to its pickup and delivery fleet around the world and continued to make its facilities more sustainable and energy-efficient. The company also invested in third-party initiatives, including research at the Yale Center for Carbon Capture and Third Derivative, RMI’s global climate technology accelerator. Giving — FedEx supported local communities through volunteer activities, in-kind shipping, and donations totaling $58.6 million to its direct partnerships with NGOs and nonprofits in fiscal year 2023. The company also completed its 50 by 50 campaign — a four-year initiative designed to positively impact 50 million people around the world by the company’s 50th birthday. United States impact FedEx delivers to every U.S. ZIP code through its extensive network made up of roughly 4,800 facilities, as well as more than 7,000 independent service providers. With approximately 370,000 U.S. employees in fiscal year 2023, FedEx is one of the largest employers in the country and is proud to support an inclusive, diverse, and equitable workplace where 61% of U.S. employees identify as minorities. The study found that in fiscal year 2023, FedEx directly contributed an estimated 8.2% of net economic output to the U.S. Transportation and Warehousing sector and indirectly contributed $8.7 billion to net output across the U.S. economy. However, the FedEx Effect extends beyond the company’s contributions to economic growth and employment. For 50 years, FedEx has worked to improve the prosperity and health of the communities it serves. For example, team members across the U.S., as well as Canada, Chile and Puerto Rico, volunteered in fiscal year 2023 to provide more than 8,400 pairs of shoes and 18,500 winter coats, funded by FedEx, to children at 70 schools in collaboration with the nonprofit Operation Warm. Additionally, FedEx continued working with federal, state, and local governments to provide services that help with their day-to-day operations, as well as during crises, like when the company transported baby formula for Operation Fly Formula in 2022.

Ryder chief information security officer garners award

The Trucker News Staff - October 31, 2023

MIAMI — Ryder Chief Information Security Officer (CISO) Joe Ellis has been named a winner of the Top Global CISOs Award for 2023, sponsored annually by Cyber Defense Magazine. To secure the honor, Ellis competed against thousands of candidates, a news release noted. Judges search for the most innovative candidates, with success in communicating with their boards and senior-level executives, and who aim to build risk reduction programs for their organizations. “We are thrilled to see Joe achieve this top spot in the industry and be recognized as a leading cyber innovator and defender,” says Ryder Chief Information Officer Rajeev Ravindran. “Joe has driven significant results over the course of his 27 years in the IT industry, and his impressive leadership and experience have proven even more impactful at Ryder.” Chief information security officers help corporations avert disasters and work tirelessly to allow companies to grow and expand by managing and mitigating cybersecurity issues on a day-to-day basis. “We’re pleased to honor Joe Ellis as a winner among the small, elite group of information security professionals of our Top Global CISOs Awards for 2023, celebrating with them at CyberDefenseCon 2023,” said Gary Miliefsky, publisher of Cyber Defense Magazine. As Ryder’s CISO since 2018, Ellis is responsible for the transportation and logistics company’s information security program. Prior to joining Ryder, he was CISO at Subway Restaurants. With nearly three decades of IT leadership experience, he is also a Certified Information Systems Security Professional, Certified Information Systems Auditor and Certified Data Privacy Solutions Engineer. To view the full list of winners, visit https://cyberdefenseawards.com/top-global-cisos-winners-for-2023/.

For-hire demand outlook remains soft for winter, ACT reports

The Trucker News Staff - October 31, 2023

COLUMBUS, Ind — After a long downturn, freight demand fundamentals are gradually improving as pandemic substitution effects fade, destocking plays out and real incomes improve, according to the latest release of the Freight Forecast, U.S. Rate and Volume OUTLOOK report from ACT Research. “With both the shipments component of the Cass Freight Index and the Cass Truckload Linehaul Index rising sequentially this month, the freight cycle is at least starting to flatten out, with smaller year-over-year declines,” said Tim Denoyer, ACT Research’s vice president and senior analyst. “We continue to expect the freight cycle to turn once capacity tightens, but early signs of 2024 equipment production suggest that may be a while.” Denoyer added that “The trucking industry has broadly reached an uncomfortable equilibrium with spot rates steady for several months now. Net fleet exits, which have been going on for a year, are worsening, and although equipment demand at larger fleets remains fairly robust, there are signs that lower new equipment demand will lead to a tighter freight market over the course of 2024.” Even as the freight demand cycle should improve in 2024, the demand outlook remains soft for this winter as the industry continues to add equipment capacity into an oversupplied market, according to ACT. “Class 8 orders over the next few months will be pivotal in setting the tone for capacity and rates in 2024,” Denoyer concluded.

Brunswick, Georgia, on track to become top US auto port

The Trucker News Staff - October 31, 2023

BRUNSWICK, Ga. — The Port of Brunswick, Georgia, is poised to become the top auto and machinery port in the U.S., with 264 acres of land for development, according to Georgia Ports Authority (GPA) President and CEO Griff Lynch. “Organic growth, a steady pipeline of new customers and the ability to take on new trade will boost Brunswick’s roll-on/foll-off volumes, which are already expanding at a strong rate,” Lynch said. “To accommodate anticipated market demand, GPA has initiated an aggressive infrastructure plan, strengthening Colonel’s Island for auto and machinery processing.” In fiscal year 2023, Colonel’s Island Terminal in Brunswick grew roll-on/roll-off volumes by 18% to more than 705,000 units of autos and heavy machinery, moving both into and out of the port, a news release stated. Including the Ocean Terminal in Savannah’s roll-on/roll-off volumes, the GPA handled a record 723,515 units during this time period. The Port of Brunswick served 610 vessel calls in fiscal year 2023, representing an increase of 11% over the year prior. Colonel’s Island handled 495 of those ships. GPA Board Chairman Kent Fountain said Brunswick has room to grow as automakers move greater volumes through Georgia. “At 1,700 acres, Brunswick is the nation’s premier gateway for auto and Ro/Ro cargo,” Fountain said. “Brunswick’s gateway port model features four on-site auto processors, room for customers to grow their business with three available parcels of land totaling 264 acres and direct access to Interstate 95 for car carrier and machinery trucks,” he said. “With on-terminal rail, Brunswick offers the fastest East Coast rail connections to inland markets.” The port also features a new fumigation facility onsite which is the largest facility of its size for autos and machinery. Fumigation is required for cars and machinery shipped to Australia and New Zealand. To accommodate growing volumes, the Port of Brunswick is undergoing improvements totaling more than $262 million. Construction has recently been completed on 350,000 square feet of near-dock warehousing that serves auto and machinery processing on the north side of Colonel’s Island Terminal. Three additional buildings representing 290,000 square feet and 122 acres of Roll-on/Roll-off cargo storage space are under construction on the south side of the island. GPA has also won federal approval for a fourth Ro/Ro berth at Colonel’s Island, to enable more vessel calls. Currently in the engineering phase, this project will more efficiently accommodate vessels that can carry up to 7,000 vehicles. A planned new rail yard on the south side of Colonel’s Island will enter the construction phase next year. This rail capacity improvement will extend Brunswick’s reach deeper into interior markets to capture more business. Federally funded maintenance dredging is ongoing in the Brunswick River shipping channel. Additionally, the U.S. Army Corps of Engineers is awaiting funding for a project to enhance the efficiency of vessel transit by widening the channel and expansion of the turning basin at Colonel’s Island. “Georgia Ports is focused on the growing market opportunity of global automotive manufacturers and original equipment manufacturers moving production to Mexico,” the news release stated. “This trend coupled with ocean carriers adding more services into Mexico ports with main haul and short sea services is tied to sourcing shifts which will add more auto volumes into the Port of Brunswick’s national gateway for distribution throughout the U.S.” Lynch said the Port of Brunswick is part of a two-pillar strategy at GPA to “specialize and scale operations for customers,” with Colonel’s Island Terminal handling all future roll-on/roll-off cargo while the Port of Savannah concentrates on containerized trade. The GPA is renovating Ocean Terminal in Savannah to serve as an all-container facility. The portion of GPA’s roll-on/roll-off cargo previously handled at Ocean Terminal is being shifted to Colonel’s Island. “By concentrating on containers in Savannah and autos and machinery in Brunswick, we are able to streamline our operations and provide more efficient service to both of our main business sectors as cargo volumes continue to grow,” Lynch said. Colonel’s Island trade 23 carmakers and 17 heavy machinery producers move cargo through the Port of Brunswick. The top five automakers by volume in fiscal year 2023 were Mercedes, Hyundai, Kia, Nissan and GM. The top five heavy machinery producers by volume were Hyundai, John Deere, Caterpillar, Wirtgen and Hamm. In fiscal year 2023, Colonel’s Island handled 705,303 units (vehicles, heavy machinery, boats, static machinery, etc.), of which 75% was import, 25% export. Auto processors onsite in the Port of Brunswick perform services such as pre-delivery inspections, quality checks and remedial actions, as well as installation of accessories prior to delivery. Infrastructure upgrades to Mayor’s Point Terminal breakbulk facility Investments to support increasing breakbulk trade at Mayor’s Point Terminal in the Port of Brunswick include a new, 100,000 square-foot warehouse with up-to-date life safety improvements and flooring upgrades to handle heavy cargoes. The building replaces an older, 50,000 square-foot structure. GPA has also upgraded the fender system on the docks to better serve larger vessels now calling the terminal. New and existing customers are already benefiting from the improvements. The facility handles forest products such as woodpulp, paper and paperboard, as well as raw rubber.

XPO breaks ground for new service center in central Florida

The Trucker News Staff - October 31, 2023

GREENWICH, Conn. — XPO has broken ground on a new service center in Lakeland, Florida. The 31,713-square-foot facility is being constructed on approximately eight acres of land near Interstate 4 and Commonwealth Avenue, a news release stated. Dave Bates, chief operating officer of XPO, said, “We’re excited to expand our footprint in the dynamic central Florida region as we continue to grow capacity in strategic markets where we expect strong long-term demand. This new service center in Lakeland will greatly benefit our customers and provide best-in-class freight transportation service to businesses across the state. It also allows us to support the local community with well-paying jobs.” According to the news release, the expected timeframe for the grand opening of the service center is the second quarter of 2024. Once construction is complete, XPO is expecting to employ approximately 75 people from the surrounding community and provide 60 doors to the thriving interstate corridor.

Report: Jack Cooper working to save Yellow Corp

The Trucker News Staff - October 30, 2023

WASHINGTON — 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. A liquidation of Yellow’s trucking and terminal assets is supposed to begin soon in a deal that is expected to value its real estate at $1.5 billion and its vehicle fleet at hundreds of millions of dollars. Reuters says President Biden has expressed interest in the Jack Cooper deal after “a bipartisan group of U.S. senators stepped up their pressure campaign on the Biden administration.” U.S. Senators, including Democrat Sherrod Brown, Republican Roger Marshall and Bernie Sanders, an Independent, asked the Treasury Department in separate letters reviewed by Reuters to extend the maturity date for $700 million in COVID pandemic loans given to Yellow Corp by the Trump administration in 2020, in exchange for the government taking a stake of nearly 30% in the company. “The loans currently come due in September 2024. Jack Cooper’s bid effort hinges largely on whether Treasury extends the payback period to 2026, allowing Jack Cooper to offer more favorable terms for Yellow, because it would not have to pay the loan back right away,” the Reuters report states. Officials with Jack Cooper have not commented on the developments.

UPS releases 2023 third quarter earnings

The Trucker News Staff - October 30, 2023

ATLANTA — On Oct. 26, UPS announced its third-quarter consolidated revenues of $21.1 billion, which is a 12.8% decrease from its 2022 third-quarter report. The consolidated operating profit was $1.3 billion, which is a decrease of 56.9% from its 2022 third quarter and is also down by 48.7% on an adjusted basis. UPS’ diluted earnings per share was $1.31 for the quarter; adjusted diluted earnings per share of $1.57 were 47.5% below the same period in 2022. “While unfavorable macro-economic conditions negatively impacted global demand in the quarter, our U.S. labor contract was fully ratified in early September and volume that diverted during our labor negotiations is starting to return to our network. I want to thank all UPSers for their hard work and efforts during this challenging time and for once again providing industry-leading service to our customers,” said Carol Tomé, UPS chief executive officer. “Looking ahead, we are well-prepared for the peak holiday season.” For the third quarter of 2023, results included an after-tax charge of $219 million or $0.26 per diluted share, comprised of a one-time payment of $46 million to certain U.S.-based non-union part-time supervisors, transformation and other charges of $70 million, and non-cash goodwill impairment charges of $103 million.

PAM Transportation Services announces results for the third quarter

The Associated Press - October 30, 2023

TONTITOWN, Ark. — P.A.M. Transportation Services reported a consolidated net income of $6.1 million, or diluted and basic earnings per share of $0.28, for the quarter that ended on Sept. 30. These results compare to a consolidated net income of $24.6 million, or diluted earnings per share of $1.09 ($1.10 basic), for the quarter ended Sept. 30, 2022. Consolidated operating revenues decreased 20.2% to $201.5 million for the third quarter of 2023 compared to $252.6 million for the third quarter of 2022. Joe Vitiritto, president of the company, commented, “The third quarter presented very challenging comparisons to the same quarter last year. The third quarter of 2022 was one of the best in our company’s history, while the third quarter this year was faced with an unprecedented unfavorable truckload market. Despite market challenges, we did see improvement in factors that we believe will position the Company favorably when truckload market conditions improve. I am especially proud of the continued loyalty, dedication and outstanding contribution of our driving and non-driving associates as we continue to drive improvement in the company. “Looking ahead, we will continue to stay focused on investing in the areas of our business that will help us to consistently grow, increase efficiencies, and deliver value to our customers, shareholders, and employees.” As of Sept. 30, the company had an aggregate of $203.5 million of cash, marketable equity securities, available liquidity under its line of credit and $316.3 million of stockholders’ equity. Outstanding debt was $227.6 million as of Sept. 30, which represents a $36.7 million decrease from Dec. 31. During the first nine months of 2023, the company generated $93.9 million in operating cash flow.

‘Impaired driving’ can refer to more than alcohol, other substances

Linda Garner-Bunch - October 30, 2023

Mention impaired driving, and most people immediately think of alcohol. After all, in the U.S., 32 people a day are killed in motor vehicle crashes involving a drunk driver (that’s one death every 45 minutes), according to the Centers for Disease Control and prevention (CDC). Even in 2020, when travel was restricted for much of the year due to COVID-19, alcohol was named a factor in about 30% of all traffic-related deaths for the year. Those numbers don’t include drug-impaired drivers, which are much harder to account for. There are tests to determine the use of many types of drugs, but determining what level of a drug in the system causes impairment is a problem. Alcohol impairment can be tied to the amount of alcohol present in the blood, while other substances, such as marijuana, can’t. Some people with high amounts of THC, the ingredient in marijuana that causes euphoria, in their systems can function as well as someone with none, while others are impaired with a very small amount in their systems. A CDC survey in 2020 that allowed anonymity for respondents found that 7.2% of respondents said they had driven while under the influence of alcohol in the past year. Another 4.2% admitted driving while impaired by marijuana. Nearly 1% drove while under the influence of illicit drugs other than marijuana. The “illicit” drugs counted in the survey don’t include legally prescribed and over the counter (OTC) medications, many of which can also cause impairment. On any given day, if you’re driving in moderate traffic, there’s a good chance that a motorist within your field of vision is under the influence of alcohol or drugs. However, alcohol and drugs aren’t the only impairments faced by drivers. Increasingly, drivers are under the influence of their cellphones or other distractions. Texting while driving may not be considered “impairment,” but the results can be just as deadly. Alcohol and drugs slow reaction times and alter perceptions. So does focusing on a text message, email or video clip on a phone. The CDC defines three main types of driver distraction: Visual (taking your eyes off the road); Manual (taking your hands off the wheel); and Cognitive (taking your mind off of driving). Distracted drivers are a factor in about 3,000 deaths per year in the U.S., according to the CDC. Cellphones aren’t the only things that distract a driver’s attention. Changing radio stations can involve taking a hand off the wheel and your eyes (and mind) off the road. So can entering a location into the GPS, answering a satellite message from a dispatcher and reading every word on an interesting billboard. Professional drivers understand the need to avoid impairment, including distractions, while driving. They also understand that the other motorists, including other truckers, may not be as diligent about remaining impairment-free. It’s a problem every driver deals with. There are no laws or company policies that can completely eliminate impaired driving. Every driver must make a personal decision to only drive when they are 100% capacity, both physically and mentally. Anything less puts the driver and others on the highway in jeopardy. For some, it’s a commitment to never drive after drinking or indulging in recreational drugs. But the decision can be much more complicated than that. For example, a driver who suffers from chronic pain and treats the condition with medicine that contains opioids, such as hydrocodone or oxycontin, must carefully monitor when the drugs are taken and make wise choices as to whether it’s safe to continue driving. Holding off on taking the medication could mean enduring more pain, but safety is a bigger goal. OTC drugs often have effects that can impair driving. Some popular sinus medications can cause drowsiness. In fact, the active ingredient in Benadryl (diphenhydramine HCL) is also the active ingredient in sleep aids such as Unisom and Zzzquil. Drivers who use those little pink pills for sinus relief may realize they’re actually taking sleeping pills! When using any kind of medication, it’s important to know what to expect from the drug and how it impacts you as an individual. One person may function normally after a prescribed dose, while another reacts quite differently. Always check the warning labels and if you’re taking the medication for the first time, try to do so when starting a break period. If you’re driving and you begin feeling the effects of the medication, park as soon as you can. Fatigue is another often-overlooked impairment. Studies have shown that fatigue can impact perception and reaction times as much as alcohol can. Drivers who are concentrating on getting to a customer on time or to the truck stop while parking is still available may not realize how much their driving skills suffer. When illness strikes, the misery of trying to function while feeling less than your best can distract you from the task of driving. The physical ability to drive the vehicle might remain, but the ability to identify and react to hazards can suffer. Emotions can also impact driving function. The more intense those emotions are, the more they distract from the important job of driving safely. Receiving bad news, anger over treatment received from a customer, a phone argument with a spouse — any of these can trigger emotions that cause safe driving to drop to a lower priority. It may be best to park it for a while and deal with an issue before driving again. While pronouncements such as “don’t drink and drive” aren’t bad advice, the truth is that professional drivers make decisions all day long that can impact the safety of their driving. Whether to take that pill, make that phone call or push on for another hour are examples of decisions that can be life-changing — or even life-ending.

Mack Trucks, UAW talks stall as strike goes on

The Trucker News Staff - October 27, 2023

GREENSBORO, N.C. — Mack Trucks and the United Autoworkers (UAW) are still at odds, and the strike continues over a labor dispute. In an Oct. 26 news release, Mack Trucks officials said that they were able to reach “tentative agreements … on the four local agreements that were not ratified by UAW members on Oct. 8. However, UAW leadership’s economic demands at the master contract level continue to be unrealistic.” Union workers at Mack Trucks went on strike Monday, Oct. 9, after voting down a tentative five-year contract agreement that negotiators had reached with the company. “Despite the not-so-confident agreement between Mack and UAW, Mack still stands by the hesitant agreement on the economic terms from Oct. 1 with the union, in which UAW’s leadership backed and called a ‘record’ contract for the heavy truck industry,” a Mack news release stated. According to that release, the terms of the tentative agreement include: The average wage increase over five years would be 36%, with an average immediate wage increase for all covered employees of nearly 15%. For employees not yet at the top rate — which is nearly half of the workforce — the average increase over the same number of years would be 55%, and the average immediate wage increase would be more than 20%. Most employees already at the top rate would receive an immediate wage increase of 10% and up to 20% compounded over five years. Premiums for the company’s healthcare coverage — which have not seen an increase in more than six years despite the 66% increase in the company’s costs over the last 10 years — would remain unchanged once again for five more years. “The companies are making billions, and they’re just not sharing it with the workforce,” said UAW 677 President Scott Wolf in a Facebook video.

Anderson Trucking welcomes Troy Dessert to executive team

The Trucker News Staff - October 27, 2023

ST. CLOUD, Minn. — Anderson Trucking Service (ATS) has announced Troy Dessert as their new vice president and general manager of the dry van division at the company, officially joining the company on Oct. 16. Dessert has “more than 30 years [of] experience in the transportation industry,” which will bring “a wealth of expertise to ATS’ organization,” according to a news release. “Having experience in account management, operations management, driver management and load planning while at a previous employer has allowed him to gain a deep understanding of the trucking business. At another former employer, Dessert took on leadership roles in the operations and services teams, which eventually landed him as the regional director of dedicated services and brokerage.” Now, in his new position as the vice president and general manager, Dessert will oversee all of the operational and sales aspects of ATS’ dry van division and use his previous experiences in leadership to build and cultivate robust networks, develop talent and solve the complex problems he will face. The news release also stated that Dessert’s “alignment with ATS’ organizational culture and values, coupled with his demonstrated commitment to personal and professional development, makes Troy a valuable addition to the ATS team.”

Transervice partners with Book Fairies program to improve literacy in New York area

The Trucker News Staff - October 27, 2023

LAKE SUCCESS, N.Y. — Transervice Logistic officials partnered with Book Fairies during the month of September to help improve literacy. During that month, Transervice collected books, CDs, DVDs and magazines for The Book Fairies, which is the largest book donation organization in the New York area, according to a news release. The materials collected will be distributed this fall to communities on Long Island and the five boroughs of New York City that do not have equal access to books. “Transervice is committed to supporting literacy in our home community and The Book Fairies gives us a hands-on opportunity to do so,” said Sean Schnipper, director of marketing for Transervice. This was the fifth consecutive year Transervice has partnered with the organization, contributing more than 2,000 print and video assets. The company was also on hand in 2020 to help the organization break the Guinness World Record for the longest line of books — 3.81 miles — at two New York elementary schools.

UPS to acquire Happy Returns

The Trucker News Staff - October 27, 2023

ATLANTA — On Oct. 26, UPS announced that it has entered into an agreement to obtain Happy Returns from the payment platform PayPal. Happy Returns is a U.S.-based software and a reverse logistics company that allows frictionless, no-box, no-label returns for dealers and consumers. “We know that returns have long frustrated shoppers and retailers looking for quick and easy solutions,” UPS CEO Carol B. Tomé said. “By combining Happy Returns’ easy digital experience and established drop-off points with UPS’s small package network and footprint of close to 5,200 The UPS Store locations, box-free, label-free returns will soon be available at more than 12,000 convenient locations in the U.S.” Happy Returns offers a full stack of returns solutions that are powered by software and fully scaled reverse logistics operations that make frictionless returns easier, according to a news release. “In just a few easy steps, users are able to access a returns portal and make a box-free return at a convenient location. Once these steps are complete, the user’s returned item will be shipped, sorted and returned to the dealer,” the news release stated. Happy Returns has a strong track record with its 800-plus dealer customers for providing hassle-free, no-box returns which reduces the cost of e-commerce for all players while creating a more efficient, sustainable supply chain. “Joining the UPS team is a win for both our employees and our customers,” said Happy Returns CEO and co-founder David Sobie, who will continue to lead the business for UPS after the deal closes. “In recent years, the growth of Happy Returns has accelerated, and we’ve built an enterprise-grade solution. This new chapter is a natural next step for Happy Returns and allows us to harness the power of the UPS network to transform the returns industry.” The acquisition of Happy Returns is expected to close during the fourth quarter of this year.

Ask these questions before leasing to a carrier

Cliff Abbott - October 27, 2023

It’s no secret that truck owners are having a tough go in today’s freight market. Freight rates, especially spot rates, remain at levels that can make it difficult to find loads that pay more than the owner’s operating cost per mile. Inflation has driven up the cost of parts, supplies and labor. Insurance rates continue to climb, as do interest rates for equipment financing. According to “carrier start” numbers published by the U.S. Department of Transportation, record numbers of carriers, mostly one- to three-truck outfits, are having their authority revoked. While owners can voluntarily surrender their operating authority, revocations often occur because of insurance lapses when owners simply can’t afford to pay the premiums. One solution some truck owners turn to is leasing their equipment to another carrier through an independent contractor (IC) arrangement. Doing this provides both advantages and disadvantages for the truck owner, and it comes with a few “watch outs” as well. Leasing to a carrier allows the truck owner to have access to the carrier’s customer base; often these clients pay contracted rates that may be higher than current spot rates. Of course, if the lease arrangement calls for per-mile compensation, the rates don’t matter as much. The general idea is that the IC can benefit from the carrier’s sales and customer service teams, as well as its billing and accounts receivable staff, and can concentrate their efforts on delivering loads and maintaining the truck. Many carriers offer maintenance at their facilities at reasonable rates, or at least the opportunity to participate in carrier discount programs at the vendors they use. Additionally, many carriers offer fuel cards and discounts on fuel purchases, as well as national tire discounts and other benefits. Most carriers require a maintenance escrow, but some are willing to help out if an IC’s repair expenses exceed escrow amounts. Insurance rates vary among carriers. Most will require the IC to provide their own non-trucking liability, or “bobtail,” insurance and Occupational Accident or Worker’s Compensation insurance, but some allow them to participate in carrier policies at a reduced rate. Tags and permits are another area in which carrier policies vary. Some carriers provide the tags and necessary permits at no cost. Others require the IC to pay but may be willing to absorb upfront costs and deduct them from contractor settlements over a period of time. On the other hand, some carriers require the IC to handle all of these on their own. There are also disadvantages to leasing to a carrier — and some things to watch out for. While the “independent” part of “independent contractor” indicates the contractor is free to accept or reject loads — and even to accept loads from elsewhere, such as from another carrier — some carriers don’t abide by the concept. Some allow contractors to accept loads from brokers or load boards, but if the contractor is pulling the carrier’s trailer, they may be choosy about whose freight goes in it. Forced dispatch is a legal no-no when it comes to ICs, but some carriers insist the contractor run their system as their own company drivers do. Two questions that must be answered before any lease agreement is signed are: Is the IC permitted to haul freight from other sources? What happens if the IC refuses a load assignment? Insurance, tags and permits can be an issue if the IC decides to leave the carrier. If the contractor paid for these items, even if paid over time, then he or she keeps them. Understandably, the carrier may not want a former IC listed on their insurance or hauling for someone else using permits with their company name on them. In those cases, the IC should be reimbursed for the unused portion of the tag, insurance or whatever. Compensation often becomes an issue when carriers pay different amounts for different miles run. For example, some carriers pay a lower rate for deadhead miles, and they may pay nothing at all for miles the contractor drives to get home. Some pay different rates for loads going to the Northeast, New York City or other areas. Some pay differently depending on the total miles of the load, with longer dispatches earning a lower per-mile rate. ICs who are paid a percentage of the load should know exactly what the carrier was paid, as well as their percentage of the revenue total. Fuel surcharges can be another issue. Some carriers claim a “100% pass-thru,” meaning the IC gets every dime the customer pays. Some pay based on the agreed rate with the IC, regardless of what the customer pays, or doesn’t pay. And don’t forget accessorial pay. What is the IC paid for detention time, layover or for labor, such as tarping or operating unloading equipment such as pumps or lifts? Some carriers charge rental fees for the use of their trailers, while others offer a higher compensation if the contractor owns their own trailer. Maintenance of the trailer can become an issue if the company charges the IC for items like tire repair or replacement, mud flaps, hoses and so on. There can also be charges for cargo claims by customers. Sometimes the IC is liable for a specified amount or percentage of the damage claim or to cover the insurance deductible. Unfortunately, other than providing details of how the damage occurred (if known), the contractor usually has little say in whether the claim is paid. If the contractor is on the hook for a $1,000 deductible and the carrier can settle the freight claim for that amount or less, they may not even contest it. The instrument for making sure you fully understand the compensation, obligations, charges and more is the lease agreement. Unfortunately, the agreement is often presented after orientation is completed, and the IC has little time to carefully read it — and zero opportunity to have it reviewed by legal counsel. Ask for a copy of the agreement, with all appropriate amendments, before going to orientation. Read it carefully and have your lawyer take a look, too. Know what you’re in for before you sign.

Heartland Express reports 3Q results

The Trucker News Staff - October 26, 2023

NORTH LIBERTY, Iowa — Heartland Express Inc. has released its financial results data for the third quarter that ended on Sept. 30, 2023. In the newsletter, Heartland Express’ Chief Executive Officer Mike Gerdin commented on the results and data and the future initiatives of the company. “Our consolidated operating results for the three and nine months ended Sept. 30, 2023, reflect the combination of a weak freight environment along with strategic operational changes implemented. These strategic changes targeted unprofitable customers and lanes of freight that were not acceptable for the long-term profitability of our organization.” Gerdin continued, “These decisions, while difficult, were made to set a course for the future to ensure that we are prepared to capitalize on stronger freight demand with more efficient operations in the future. Our organization remains committed to providing the best service for our customers, as evidenced by our customer and operational awards received during the third quarter. Further, we are committed to taking care of our professional drivers and team of supporting staff during these challenging times. However, we cannot continue to provide our premium level of service at unprofitable or unsustainable rates.” Three months ended Sept. 30, 2023: Operating Revenue of $295.0 million, an increase of 7.7% over 2022. Net Loss of $10.7 million. Basic Loss per Share of $0.14. Operating Loss of $7.4 million. Operating Ratio of 102.5% and 102.4% Non-GAAP Adjusted Operating Ratio. Total Assets of $1.6 billion. Stockholders’ Equity of $861.1 million. Nine months ended Sept. 30, 2023: Operating Revenue of $932.1 million, an increase of 52.0% over 2022. Net Income of $9.7 million. Basic Earnings per Share of $0.12. Operating Income of $31.7 million. Operating Ratio of 96.6% and 95.5% Non-GAAP Adjusted Operating Ratio.

Accelerate! Conference & Expo: A unique event with a critical mission

The Trucker News Staff - October 25, 2023

The Women In Trucking Association (WIT) is a nonprofit organization with the mission to encourage the employment of women in the trucking industry, promote their accomplishments, and minimize obstacles they face. More than 8,000 members in 10-plus countries are actively involved throughout the transportation and logistics industry representing motor carriers, 3PLs, manufacturers, retailers, truck driving schools, financial services, health and fitness service providers, and more. Major brands are involved, including Walmart, Frito Lay, UPS, FedEx, Daimler, Michelin, Bridgestone, C.H. Robinson, WM, J.B. Hunt, Ryder, Penske, Great Dane, PACCAR, Averitt, Crowley, Covenant, Werner and XPO Logistics, to name a few. Although the trucking industry has made great strides to bring more gender diversity to the industry, there are still obstacles that might cause some to avoid this career opportunity and others who choose to leave the industry. As motor carriers advertise automated transmissions, air ride seats, drop and hook freight, and regional runs to avoid lengthened time from home, the industry becomes more attractive for female drivers as well as their male counterparts. Outside of the truck, WIT’s focus is to bring more women into leadership roles to create a more diverse environment and tap into unrealized potential. WIT represents women who design, own, sell, fix and drive the trucks. In support of its critical mission, WIT will host its ninth annual Accelerate! Conference & Expo Nov. 5-8, 2023, at the Hilton Anatole in Dallas, Texas. This unique event works to elevate the issue of gender diversity, develop women leaders, explore how to leverage a diverse workforce for company success, and engage and retain more females in the industry. It has become one of the most incredible conferences to attend in the transportation industry — and you don’t want to miss it! Anyone who believes the gender balance should be changed in the industry should attend and participate in the Accelerate! Conference & Expo. Attendees are transportation decision-makers in the roles of managers, directors, vice presidents and presidents of companies ranging from motor carriers and 3PLs to manufacturers, retailers, truck driving schools, financial and insurance providers, and health and fitness services. This four-day gathering includes more than 70 educational sessions featuring more than 180 thought leaders on critical transportation issues and trends, along with perspectives of women in the industry. These educational sessions will be based on six areas of focus: leadership, professional development, human resources/talent management, operations, sales and marketing, and — a new offering this year — professional drivers. The broad range of topics offered at the Accelerate! Conference & Expo ensures that each professional, no matter what their area of focus, receives information most relevant to their career. The Expo will comprise of more than 200 exhibitors and sponsors, helping attendees to find valuable solutions from companies showcasing their capabilities and brands. The Truck and Technology Tour will offer the opportunity to see first-hand new trucks and the latest innovative technologies in the industry. WIT anticipates more than 2, 000 transportation professionals to attend the 2023 Accelerate! Conference & Expo. For more information, visit www.womenintrucking.org.

ACT’s For-Hire Survey suggests improving freight market

The Trucker News Staff - October 25, 2023

COLUMBUS, Ind. — The latest release of ACT’s For-Hire Trucking Index shows continued improvement in freight volumes, pricing and driver availability. The Volume Index fell 4.9 points in September to 49.5 seasonally adjusted (SA) from 54.4 in August, according to a news release. While retrenched from the one-off surge last month, this month’s reading still shows a gradually improving volume trend. Tim Denoyer, vice president and senior Analyst at ACT Research, commented, “Freight demand fundamentals are starting to improve after nearly two years of substitution, destocking, and inflation. Rising interest rates, declining savings, and private fleet growth are ongoing headwinds to for-hire volumes. However, with improving goods consumption trends, the end of destocking, and a resilient industrial sector, we expect the gradually improving trend to continue.” The Pricing Index jumped meaningfully in September, up 9.2 points to 48.5 SA, as rates continue to stabilize. Denoyer added, “The pricing environment is showing signs of starting to firm, but declines should persist in the near term as capacity additions and an elevated focus on labor retention persist. Improvements in volumes and slowly decreasing for-hire capacity are positive signs for pricing. Spot rates have been steady for four months as the rebalancing rolls along.” The Driver Availability Index hit an all-time high in September with a reading of 62. “Fleets continue to see a large influx of drivers, unprecedented in our survey’s history,” according to ACT. “Our survey sample encompasses mainly medium and large for-hire fleets, and it’s clear many of these drivers are coming from the challenged owner-operator market. With still recent scars from pandemic driver shortages, employers across the industry are focused on labor retention — a similar theme across much of the economy.”

Total spot rates in Truckstop system decrease slightly in latest report

The Trucker News Staff - October 25, 2023

BLOOMINGTON, Ind. — Broker-posted spot rates in the Truckstop system were down for the third straight week during the week ended Oct. 20 (week 42). After six straight weeks of decreases, refrigerated spot rates rose modestly, according to a news release; however, flatbed spot rates declined, and dry van spot rates were essentially unchanged week over week. Total spot rates are moving in line with seasonal expectations slightly below the five-year average. Spot volume was down as decreases in flatbed and dry van offset an increase in refrigerated. Total load activity declined 2.9% after falling nearly 5% during the prior week. Volume was nearly 19% below the same 2022 week and more than 26% below the five-year average for the week. Truck postings declined 1.6%, and the Market Demand Index – the ratio of loads to trucks – eased slightly to its lowest level since mid-August. Total rates The total broker-posted rate eased 1 cent after being down a fraction of a cent during the previous week. Rates were nearly 12% below the same 2022 week and more than 4% below the five-year average. Total market rates have decreased in five of the past six weeks but are moving mostly as expected during the period between Labor Day and Thanksgiving. Dry van Dry van spot rates were unchanged after falling about 5 cents during the prior week. Rates were almost 10% below the same week last year and more than 9% below the five-year average. Dry van spot rates are still about 10 cents higher than during the recent low, which was the week before the International Roadcheck inspection event. Dry van loads eased 1% after falling more than 5% in the previous week. Volume was almost 21% below the same 2022 week and almost 26% below the five-year average. Reefer Refrigerated spot rates increased nearly 3 cents after falling slightly more than 3 cents during the previous week. Rates were nearly 10% below the same 2022 week and about 5% below the five-year average. Refrigerated rates are still about 22 cents higher than the recent low in April. Refrigerated loads increased 6.9% after falling nearly 6% during the prior week. Volume was nearly 19% below the same week last year and about 25% below the five-year average for the week. Flatbed Flatbed spot rates fell 2 cents after increasing a fraction of a cent during the prior week. Rates were nearly 14% below the same 2022 week and nearly 3% below the five-year average. Flatbed loads fell 5.7% after falling by about the same degree in the previous week. Volume was nearly 18% below the same 2022 week and more than 33% below the five-year average for the week.

J.B. Hunt awards more than $437k in scholarships

The Trucker News Staff - October 25, 2023

LOWELL, Ark. — J.B. Hunt Transport Services Inc. on Oct. 24 announced that it has awarded scholarships to 100 new J.B. Hunt Scholarship for Families program recipients. Since launching the program in 2022, the company has provided a total of $687,500 in educational financial assistance for the families of J.B. Hunt employees, according to a news release. “We really love this program because it provides an opportunity to help our employees support the dreams of their children and grandchildren,” said Brad Hicks, president of highway services and executive vice president of people at J.B. Hunt. “We are very proud of this year’s class and excited to see the future they create as part of the J.B. Hunt family.” Based on the success of the first two years, the scholarship will be renewed for the upcoming class of 2024, with applications expected to open in the first quarter of 2024, the news release noted. The scholarship provides $2,500 in financial aid each school year and is renewable for up to four years. In the second year of the program, J.B. Hunt awarded a total of $437,500 in new and renewed scholarships. This year’s class of recipients represents more than 50 locations throughout the country. For some, receiving the scholarship is much more than a personal accomplishment. “From drivers at the yard in Santa Fe Springs to the managers in South Gate, to the Pico Rivera security guards, J.B. Hunt has watched me grow into the young woman I am today,” said Litzy Munoz, a recipient from Baldwin Park, California. “Through this scholarship, I will be able to pay for my ELAC (East Los Angeles College) balance, putting myself one step closer to the completion of my career. It will put me closer to saying, ‘I am a lawyer, daughter of a J.B. Hunt truck driver who supported me every step of the way.’” Alydia Lennon of Lowell, Arkansas, shared a similar sentiment, reflecting on a unique bond with her father. “J.B. Hunt is currently helping my dad receive his master’s degree, so receiving this scholarship creates a special father-daughter connection that most likely has not been experienced by many people,” Lennon said. From aviation science to criminal justice, this year’s recipients are studying a variety of over 60 career fields. Computer science major Matthew Fonner considers it a life-changing experience. “The scholarship would allow me to focus more on my academic pursuits and would give me the resources I need to succeed,” said Fonner. “Being selected validates my hard work and dedication and gives me the confidence to continue striving for excellence.” The application-based scholarship program is available to dependent children or grandchildren of J.B. Hunt employees who currently attend or plan to attend an accredited two or four-year college, trade school or vocational school. Students who receive the scholarship must maintain a 2.5 GPA and full-time enrollment for renewal.

XPO launches new over-the-road operation program

The Trucker News Staff - October 25, 2023

GREENWICH, Conn. — XPO has begun an in-house, over-the-road operation staffed exclusively by team drivers called Road Flex. According to a news release, the program is part of the company’s previously announced strategy “to insource third-party line haul carrier miles to drive greater efficiency, expected cost savings and better service for customers.” Already underway, the Road Flex program has a sleeper team that runs from two bases in Dallas, Texas and Phoenix. The company expects to expand this operation to a carefully selected group of additional service centers in 2024. To support the program, the company is currently recruiting teams of long-haul drivers who will run dedicated routes between XPO facilities in trucks equipped with sleeping quarters and other amenities to ensure a comfortable on-the-road experience. Tim Staroba, president of the East Division at XPO, said, “The launch of the Road Flex operation is a key step in accelerating our plan to insource third-party linehaul miles and create greater efficiency in our network. It’ll enable us both to reduce costs and improve service for our customers by minimizing freight re-handling and expediting deliveries. We look forward to the growth of this new program and the great team drivers who will be joining XPO to support it.” A typical workweek for the Road Flex team drivers will consist of five days on the road, followed by two days off. While schedules may occasionally vary based on network conditions, XPO is committed to providing workplace flexibility and balance, along with industry-leading compensation and benefits.