Business

WASHINGTON — On Sept. 21, the Trucking Cares Foundation (TCF) and the Texas Trucking Association Foundation (TXTA) announced a partnership to support Austin, Texas-based Dell Children’s Foundation. In honor of Austin playing host to the American Trucking Associations (ATA) 2023 Management Conference and Exhibition (MCE), the foundations have a goal of raising $50,000 for the charity. The Dell Children’s Foundation helps ensures no child is ever turned away from receiving the world-class medical care provided by the Dell Children’s Medical Center. Roughly 70% of Dell Children’s patients are classified as under-insured or uninsured. Every dollar that is donated via TCF and TXTA will go directly to the Dell Children’s Foundation. This fundraising initiative will conclude the evening of Tuesday, October 17th, the last day of MCE. “Dell Children’s Foundation is honored to partner with the Trucking Cares Foundation and the Texas Trucking Association Foundation to raise critical funds for children and families across Central Texas,” said Megan Campuzano, Dell Children’s senior director of annual giving. “We hope this year’s gathering in the City of Austin is enjoyable for everyone attending, and we want to share our sincere thanks for making a positive impact in our community and helping to advance pediatric healthcare by supporting Dell Children’s Medical Center.” Brandon Woods, chairman of the TXTA Foundation, explained why the groups chose to support the Dell Children’s foundation. “ATA MCE brings together some of the brightest minds in the trucking industry,” Woods said. “Innovative thinkers and leaders like those gathering in Austin are at the core of the Dell Children’s Foundation — leading the way in health care for children in central Texas. Leaders from all sectors, including healthcare and trucking, are essential in keeping our country moving forward. TXTA Foundation is honored to partner with TCF to give back to the Austin community through our support of the Dell Children’s Foundation.” John Lynch, president of TCF, says the organization’s partnership with the Texas association is an example of how ATA organizations share goals both in the trucking industry and in the community. “As ATA members prepare to gather in Austin for the 2023 ATA MCE, TCF is honored to assist Dell Children’s Foundation and Dell Children’s Medical Center meet their mission of providing top notch medical care to all children of central Texas, regardless of financial means,” Lynch said. “Without the support of generous contributions, DCH would not be able to fulfill this great mission, so I ask that all ATA members, particularly those attending MCE in Austin, strongly consider visiting the joint TCF and Texas Trucking Association Foundation microsite to help us meet our goal of raising $50,000 for Dell Children’s Foundation by October 17, the last day of MCE,” he continued. Dell Children’s offers a free-standing children’s hospital in Austin and over 90 specialty care locations across central Texas. Families have access to more than 270 pediatric specialists and care teams in 39 pediatric specialties. Dell Children’s Medical Center also has 24/7 pediatric emergency care and the highest level of trauma and surgical care in their Level I Pediatric Trauma Center and Level I Pediatric Surgery Center. To find out more about the fundraiser, click here.

WASHINGTON — The Teamsters Union is requesting that the Senate investigate the unfolding bankruptcy of Yellow Corp. following a Sept. 19, 2023, special Senate Judiciary Committee hearing on corporate manipulation of Chapter 11 bankruptcy.  According to a press release from the Teamsters, during the hearing, Sen. Amy Klobuchar (D-MN) called out Yellow, pointing tothe company’s attempts to expedite liquidation of its assets to evade responsibility for its mismanagement at the expense of workers. “After a company files for Chapter 11, employees risk losing their livelihoods, health benefits, and pensions through no fault of their own. These are things that workers have worked hard for and have earned,” Klobuchar said in the hearing. “This issue has become relevant to my state because just last month, Yellow Corp., one of the largest LTL carriers in the country, filed for bankruptcy. This bankruptcy jeopardizes the livelihoods and health benefits of many hardworking Minnesotans, including 480 Minnesota Teamsters.” The Teamsters are demanding a comprehensive investigation, including calling on Sens. Dick Durbin and Bernie Sanders to exclusively hold hearings before the Senate Committee on the Judiciary and the HELP (Health, Education, Labor and Pensions) Committee to look into the bankruptcy of Yellow.  “More disturbing details of corruption, greed, and graft continue to emerge at Yellow. We call upon Senator Sanders and Durbin to begin hearings,” said Sean M. O’Brien, general president at Teamsters. “Yellow approved millions in executive bonuses in June at the same exact time that they were voluntarily choosing not to pay millions in worker health care and pension benefits. Workers in this country need real protections against corporations who game the system. We need real reform now that puts workers first in this process.” The timing of Yellow’s bankruptcy filing and the unusual steps taken while controlling the bankruptcy as a debtor-in-possession warrants scrutiny, the press release stated. An expedited liquidation would preclude a potential purchase of Yellow’s assets from any party that may want to re-establish operations, which would benefit the economy, thousands of workers and their communities, and American taxpayers.  “Yellow is trying fast-track liquidation. Meanwhile, more than 22,000 union workers are out of work after sacrificing more than $5 billion over the past 14 years through wage and benefit concessions, a fact the company would prefer to conceal from the American public and the bankruptcy courts,” said Teamsters General Secretary-Treasurer, Fred Zuckerman. “We haven’t had bankruptcy reform in this country for nearly two decades. We need to take this opportunity to right the wrongs at Yellow and prevent them from happening again.”

LONDON — BP on Sept. 19 announced that Kate Thomson has been appointed as the fuel giant’s interim chief financial officer. Her appointment follows the appointment last week of Murray Auchincloss as BP’s interim CEO following the resignation of former CEO Bernard Looney. Thomson is currently BP’s senior vice president of finance for production and operations, where she is responsible for the financial stewardship of and commercial partnering with the business globally. She has been with BP for 19 years, previously holding a number of senior financial roles, including group treasurer and head of group tax. “Kate’s experience and skills make her ideally suited to take on the role of interim CFO,” Auchincloss said. “She brings deep technical knowledge together with a detailed understanding of BP, and has a first-class track record of leadership across our finance function. I look forward to working alongside her as we continue to deliver bp’s strategy”. Before joining bp in 2004, Thomson had worked in professional services firms, including Ernst & Young in M&A tax and as group head of tax for Charter plc. She has been a member of the board of Aker BP for the past seven years; she also serves on the boards of a number of BP Group companies. She is a qualified chartered accountant.

NEW PLYMOUTH, Idaho — Following three straight weekly gains, total broker-posted spot rates in the Truckstop system posted their largest decrease since mid-July during the week ending Sept. 15 (week 37). Rates declined substantially for all equipment types, led by refrigerated, which had risen about 29 cents over the previous seven weeks. Dry van also gave back a large portion of that segment’s rate gains over the past six weeks. Flatbed’s rate decrease represented a return to a downward trend after two weeks of gains. Total load activity rebounded 17.6% during the week following Labor Day week. Volume was more than 15% below the same week last year and almost 24% below the five-year average for the week. Volume rose in all regions week over week. Truck postings increased 13.3%, and the Market Demand Index — the ratio of loads to trucks — rose to its highest level since the end of June. The total broker-posted rate fell about 4.5 cents after rising about 2 cents in the previous week. Rates were almost 11% below the same 2022 week — the least negative year over year comparison since August 2022 — and nearly 5% below the five-year average. Comparisons year over year are stable at 4% to 5% versus a spot market that had fully normalized by August of last year. Dry van spot rates fell nearly 5.5 cents after rising 8 cents over the prior three weeks. Rates were nearly 9% below both the same week last year — the least negative year over year comparison since April 2022 — and almost 10% below the five-year average. Dry van loads rose 11.5%. Volume was about 14% below the same 2022 week and nearly 20% below the five-year average. Refrigerated spot rates fell nearly 10 cents for the largest decrease since the week that included the Independence Day holiday. Rates were nearly 7% below the same 2022 week and more than 6% below the five-year average. Refrigerated loads increased 4.5%. Volume was more than 25% below the same week last year and almost 24% below the five-year average for the week. Flatbed spot rates declined more than 3.5 cents after posting the largest increase since early February during the previous week. Rates, which were about 14% below the same 2022 week and more than 3% below the five-year average, are still slightly higher than they were several weeks ago, but they have not clearly bottomed out. Flatbed loads jumped 26.6% to the strongest level since mid-July. Volume was nearly 14% below the same week last year — the least negative year over year comparison since early March 2022 — and about 32% below the five-year average for the week.

Washington — The American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index increased 0.2% in August after rising 1.1% in July. In August, the index equaled 115.3 (2015=100) compared with 115 in July. “The evidence is growing that tonnage hit bottom in April and continues its slow climb upwards,” said Bob Costello, chief economist for ATA. “However, year-over-year comparisons remain difficult, as tonnage peaked in September of last year. As a result, it is unlikely that tonnage turns positive compared with a year earlier for at least a month or two longer. Most recently, freight continues to be mixed, with consumer spending and factory output flat to down.” July’s increase was revised higher from our August 22 press release. Compared with August 2022, the seasonally adjusted index fell 2.3%, the sixth straight year-over-year decrease. In July, the index was down 1.2% from a year earlier. The not-seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 120.7 in August, 6.3% above the July level (113.6). In calculating the index, 100 represents 2015. ATA’s For-Hire Truck Tonnage Index is dominated by contract freight as opposed to spot market freight. ATA calculates the tonnage index based on surveys from its membership. These are preliminary figures and subject to change in the final report, which will be issued around Oct. 5.

LOWELL, Ark., and FORT WORTH, Texas — J.B. Hunt Transport Inc. has entered into a definitive agreement to buy the brokerage operations of BNSF Logistics LLC, an affiliate of BNSF Railway Co. BNSF, a third-party logistics service company, provides full truckload, flatbed, temperature-controlled and less-than-truckload services. The affiliate also provides services not included in the transaction, including warehouse, retail specialty, heavy-haul and project services. “As we continue to work with BNSF Railway to develop solutions that drive value for customers, we recognized a unique opportunity to combine the companies’ efforts to serve the transportation market with 3PL services and leverage the investments J.B. Hunt has made in our technology platform, J.B. Hunt 360°,” said John Roberts, CEO of J.B. Hunt. “This acquisition is another step forward in our mission to create the most efficient transportation network in North America.” In 1989, J.B. Hunt and BNSF developed a double-stack shipping solution to complement rail and trucking services. In March 2022, the two launched a joint effort to improve capacity in the intermodal marketplace. This latest effort builds on a long-term business relationship and strategic vision to provide efficient value solutions for North American customers. “This agreement with J.B. Hunt reflects our companies’ shared commitment to provide industry-leading intermodal service to our customers,” said Katie Farmer, President and CEO of BNSF Railway. “This continues more than 30 years of partnership between BNSF and J.B. Hunt and builds on our announcement to further integrate our joint services.” Once the transaction closes, the brokerage operations of BNSF Logistics will roll into J.B. Hunt’s Integrated Capacity Solutions for segment reporting purposes. The transaction will be funded using J.B. Hunt’s existing cash balance and is expected to close before the year’s end. “BNSF Logistics has shown strong performance in serving customers of all sizes,” said Brad Hicks, executive vice president of people and president of highway services at J.B. Hunt. “Complemented with our best-in-class intermodal and J.B. Hunt360box power-only service offering, this acquisition will provide a compelling value proposition for customers, growth opportunities for J.B. Hunt, and greater service capabilities for BNSF Logistics’ employee and agent model.” Upon closing the transaction, BNSF Railway and J.B. Hunt will enter into a long-term service agreement whereby J.B. Hunt will continue to provide those services for BNSF Railway.

LONDON — Global energy giant BP is scurrying to find a new chief executive after CEO Bernard Looney became the latest corporate leader to step down amid questions about his personal conduct. Among the most crucial questions facing the company’s board is whether to recruit a leader who will maintain BP’s goal of eliminating net carbon emissions by 2050 as the oil industry struggles to meet climate commitments. Looney, 53, resigned Sept. 12. He will be replaced by Chief Financial Officer Murray Auchincloss on an interim basis. BP conducted an internal review last year after receiving allegations about personal relationships between Looney and other company employees. During that review, Looney disclosed a “small number” of relationships that occurred before he became CEO in February 2020, and the oil and gas giant found that there had been no breach of company rules, BP said in a statement. The company said it recently began a second investigation after receiving more allegations of a similar nature. Looney resigned after admitting that “he was not fully transparent in his previous disclosures,” BP said. “The company has strong values, and the board expects everyone at the company to behave in accordance with those values,” BP said. “All leaders in particular are expected to act as role models and to exercise good judgment in a way that earns the trust of others.” BP said no decisions have been made regarding remuneration payments to Looney. He received 10.03 million pounds ($12.5 million) in salary, bonuses and other benefits in 2022 — more than doubling his pay package from the year before. BP shares fell as much as 1.8% when the London Stock Exchange opened Wednesday. The stock was down 0.6% at 519.71 pence in early morning trading. Looney had spent his entire career at BP after joining the company as an engineer in 1991. After rising to head oil and gas production, he took over from former CEO Bob Dudley at the beginning of 2020. Looney led the company through the COVID-19 pandemic and Russia’s invasion of Ukraine, both of which caused disruption for energy markets. The war, however, also drove energy companies’ profits to record highs as oil and natural gas prices soared, drawing outcry as a cost-of-living crisis driven by high energy bills squeezed consumers. Looney also faced increasing pressure to speed up BP’s transition to renewable energy as the U.N., scientists and activists sounded increasingly dire warnings about climate change. Soon after becoming CEO, Looney set a goal of achieving net zero emissions by 2050 — in line with goals then adopted by the U.K. government. He also promised to increase the amount that BP invested in low-carbon projects tenfold by 2030, winning praise from the environmental group Greenpeace. But BP was criticized earlier this year when the company reported record annual earnings of $27.7 billion and watered down plans to cut oil and gas production in the shorter term. The personal conduct of top executives has come under increasing scrutiny since allegations of sexual abuse leveled against disgraced movie producer Harvey Weinstein triggered the “Me Too” movement in 2017. Former Barclays CEO Jess Staley was ousted in 2021 amid concerns about his ties to the late sex offender Jeffrey Epstein. Jeff Shell, CEO of U.S. media company NBCUniversal, stepped down this year after admitting to an inappropriate relationship with a woman in the company. By Danica Kirka, The Associated Press

COLLEGE PARK, Md. — The Eastern Transport Coalition recently revealed the findings of its international mileage-based truck pilot, the first of its kind, highlighting the potential of a mileage-based user fee (MBUF) to reestablish the link between use and payment of the transportation system. The real-world pilot was conducted from June to November 2022 and included more than 250 diverse commercial vehicles, recording more than 8 million miles covering all 48 contiguous U.S. states and four Canadian provinces. This initiative built on the Coalition’s previous pilots by exploring how an MBUF could account for the complexities of the trucking industry. The work was conducted under the supervision of the U.S. Department of Transportation’s Surface Transportation Systems Funding Alternative (STSFA) program. As the transportation industry evolves with technology, the traditional fuel tax funding model is strained by the increased fuel efficiency and the steady growth of electric vehicles. The Coalition has explored MBUF since 2018 as an alternative to the fuel tax through nine passenger and three commercial vehicle pilots, public opinion surveys, focus groups and data analysis. With a neutral stance on MBUF as the ultimate solution, the Coalition’s emphasis lies in equipping decision makers with information about how all users could pay for transportation. From the beginning, the Coalition has encouraged the inclusion of the trucking industry’s voice in the national conversation surrounding MBUF. Acknowledging the trucking industry’s valuable role in sustaining both daily life and the nation’s economy, the Coalition has worked to bridge the gap between stakeholders, policymakers, and industry experts. The outcome is innovative strategies that not only address challenges faced by the trucking sector but also enrich the broader transportation network. “Central to the Coalition’s mission is its commitment to cultivating open dialogue and transparency throughout decision-making,” said Dr. Patricia Hendren, executive director of the Coalition. “By fostering collaboration among stakeholders, the Coalition envisions pioneering innovative solutions that drive progress reflective of the complex trucking industry and the evolving needs of our transportation system.” David Heller, senior vice president of safety and government affairs for the Truckload Carriers Association (TCA), also weighed in. “Looking for dollars to support our nation’s infrastructure is not an easy task, and no stone should be left unturned,” he said. “However, any mechanism, including an MBUF, needs to be fully vetted to determine whether it is a viable option to consider in the future.” “Results from this international pilot underscore the potential of MBUF as a catalyst for a transparent and scalable highway funding solution,” Hendren said. “Insights reveal the adaptability of the current motor carrier framework for MBUF implementation, demonstrating that a weight-based approach could establish a clear link between road usage and costs. “Our work, guided by the MBUF Motor Carrier working group and MBUF Steering Committee, has shown there is an intersection between the trucking industry’s desire for uniformity, scalability, and streamlined administrative processes and our country’s need for sustainable highway funding,” she continued. The Coalition’s four major findings from the newly published report are listed below; the full report is available on the Coalition’s MBUF website. MBUF can be applied to all commercial vehicles regardless of weight, fuel type, international travel, and type of operation. A weight-based MBUF has the potential to provide a more transparent link between usage and cost of road use. Uniformity does not have to be identical to be scalable and has the potential to substantially decrease administrative costs on both the motor carrier and agency sides. Clearinghouse frameworks can be adapted to handle MBUF, but roles and responsibilities need to be clearly defined. Bill Sullivan, executive vice president for advocacy for the American Trucking Associations (ATA) concurred with the Coalition’s findings. “The Coalition’s report provides valuable insight on critical issues that must be resolved before a mileage-based user fee can be assessed on the trucking industry,” he said. “The pilot program’s findings highlight that the diversity, complexity, and interstate nature of trucking makes the imposition of a VMT (vehicle milage tax) fee a far more difficult proposition than for other vehicles. The report identifies many of these issues and provides a roadmap toward resolving the challenges that must be overcome. “ATA will continue to support the Coalition’s efforts to identify and address the many yet unresolved barriers to implementation,” Sullivan concluded. Todd Spencer, president of the Owner-Operator Independent Drivers Association (OOIDA) said the Coalition’s research considers the concerns of small trucking businesses in its research. “This is no easy feat. Many small business truckers are leery of anyone talking about the potential conversion to a mileage-based system to fund our highway infrastructure, largely because they fear the system will not reflect factors unique to their operations,” Spencer said. “Over the years, (the Coalition) has demonstrated to OOIDA that understanding and addressing our members’ concerns is a critical aspect of determining the viability of MBUF. This commitment is reflected throughout their latest MBUF truck report,” he continued. “We commend (the Coalition) for producing another clear and honest report and look forward to remaining an active participant in their ongoing research and outreach.” TCA’s Heller describes working with the Coalition on the MBUF pilot as a rewarding process, noting that he believes it addresses concerns of TCA members. “TCA looks forward to being part of these essential discussions in an effort to support the Coalition’s critical work to identify and address the issues that ultimately reflect the needs of our nation’s professional truck drivers and the roads they operate on,” Heller said. The Coalition noted that, while an MBUF has potential, key challenges and considerations must be addressed before implementation. Moving ahead, the Coalition, under the Surface Transportation System Funding Alternatives grant program, will focus on comprehensive role reviews, lighter truck, and intrastate MBUF-impact assessment, fee consolidation feasibility, weight definition complexities, and alternatively powered commercial motor vehicle participation.

BLOOMINGTON, Ind. — Broker-posted spot rates in the Truckstop system rose modestly during the week ended Sept. 1 (week 35), resulting in a second straight week-over-week increase for the first time since May. Spot rates also were up for all equipment types for the first time since May, although the increase for flatbed was a mere fraction of a cent, according to a news release. “The week before Labor Day frequently is the peak of rates between the end of June and Thanksgiving, especially for dry van and refrigerated equipment,” the news release stated. Total load activity eased 1.3% after rising more than 10% during the prior week. Volume was nearly 21% below the same week last year and almost 25% below the five-year average for the week. An increase in volume in the Southeast — possibly related to disruption and relief efforts related to Hurricane Idalia — mostly offset decreases in all other regions. Truck postings declined 1.1%, and the Market Demand Index – the ratio of loads to trucks – barely moved. The total broker-posted rate rose just under 2 cents after ticking up more than a half-cent in the previous week. Rates were almost 13% below the same 2022 week and more than 5% below the five-year average. Rates have been holding at around 4% to 5% below the prior-year level for the past five weeks, reflecting mainly the spot market’s normalization by August of last year. Dry van spot rates rose more than 6 cents, which is the strongest gain since the end of June. Rates were nearly 10% below both the same week last year – the least negative y/y comparison since July 2022 — and the five-year average. Dry van loads increased 1.2% after rising more than 9% during the prior week. Volume was nearly 9% below the same 2022 week — the least negative year-over-year comparison since July of last year — and about 20% below the five-year average.  Refrigerated spot rates increased more than 3.5 cents after rising nearly 5 cents during the prior week. Rates, which were up for a third straight week for the first time since November of last year, were nearly 7% below the same 2022 week and about 5% below the five-year average. Refrigerated loads declined 2.8% after rising more than 7% in the previous week. Volume was nearly 16% below the same week last year and almost 22% below the five-year average for the week. Flatbed spot rates ticked up three-tenths of a cent for the first gain — albeit a tiny one — in five weeks. Rates were more than 16% below the same 2022 week and nearly 5% below the five-year average. Flatbed loads were down 2.4% after jumping about 15% in the prior week. Volume was about 31% below the same week last year and almost 35% below the five-year average for the week.