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ATA foundations join forces to support children’s hospital

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.

DAT shows truckload volume pricing mixed as line-haul rates tumble in August

BEAVERTON, Ore. — Truckload freight volumes increased in August as shippers positioned freight ahead of the fourth quarter, according to a mid-September news release from DAT Freight & Analytics, operators of the DAT One freight marketplace and DAT iQ data analytics service. Buoyed by shipments of retail goods and fresh food, the DAT Truckload Volume Index (TVI) increased for van, reefer and flatbed freight compared to July. TVI for van was 241, up 8% from July but down 8% year over year, while reefer was 175 — up 4% from July and down 5% year over year. Flatbed TVI was 259, up 9% from July and down only 0.4% year over year. DAT’s national average van and reefer load-to-truck ratios rose in August, reflecting higher demand for these services. The van ratio was 2.8, up from 2.6 in July, meaning there were 2.8 loads for every truck on the DAT One marketplace. The reefer ratio was 4.4, up from 3.8 in July, and flatbed was 6.0, down from 7.1. DAT’s report shows that spot rates rose; however, fuel costs bit into line-haul pricing. Broker-to-carrier benchmark spot rates strengthened as carriers negotiated to cover rising fuel expenses. The DAT benchmark spot van rate was $2.09 per mile in August, up 2 cents compared to July, while the reefer rate gained 7 cents to $2.51 per mile. The flatbed rate slipped 3 cents to $2.54 a mile. Line-haul rates, which subtract an amount equal to a fuel surcharge, tumbled compared to July. Line-haul rates dropped 6 cents to $1.57 per mile, and reefer rates were $1.94 per mile, a 2-cent decrease. Flatbed saw the largest drop of 12 cents, down to $1.89. DAT benchmark rates for contracted van freight have not increased month over month since May 2022 and stood at $2.57 per mile. Reefer rates were up 8 cents to $2.99 per mile, while flatbed dropped 10 cents to $3.19 per mile. “At 48 cents, the gap between our benchmark spot and contract van rates was the least it’s been since April 2022,” said Ken Adamo, chief of analytics for DAT. “We expect the pricing difference to narrow further, with contract rates falling over the next 12 months and spot rates increasing. In the near term, the fourth quarter will be a busy time for freight. It’s important to come into the months ahead armed with pricing data and strategies you trust.”

Teamsters urge Senate to begin bankruptcy reform hearings on Yellow

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.”

BP appoints Kate Thomson as interim CFO

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.

Truckstop report reflects drop in spot rates for week of Sept. 10-15

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.

ATA truck tonnage index for August shows slight increase from July

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.

Mary Chan named COO of Nikola Corp.

PHOENIX — Nikola Corp. on Sept. 18 announced the appointment of Mary Chan as chief operating officer (COO), effective Oct. 9. As COO, Chan will lead the company’s engineering, programming, production, supply chain and manufacturing teams. According to a statement released by Nikola, Chan’s appointment aligns with the vision of company President and CEO Steve Girsky to streamline decision-making processes and bolster Nikola’s reputation for excellence in engineering and manufacturing. “I have had the pleasure of collaborating with Mary for over a decade, and I cannot think of a more qualified individual to assume the role of COO at Nikola,” Girsky said. “Mary brings a solid understanding of business, combined with extensive experience in technology and transportation, spanning both engineering and management. Her expertise will be a tremendous asset to the Nikola team.” Chan previously was a managing partner VectolQ, where she assisted with the public launch of Nikola Corp. She also served as president of the Global Connected Consumer group at General Motors (GM), where she led the first launch of 4G LTE connectivity across GM’s global brands in multiple countries. She has also held various senior executive positions at Alcatel-Lucent Lucent Technologies Inc., and has been named the “Top Woman in Wireless” by the Fierce Wireless Industry Daily. “My career has been dedicated to pioneering smart transportation and wireless communications across automotive, telecommunications, and high-tech industries,” Chan said. “Joining Nikola represents the culmination of this journey, and I’m excited to be part of the team that will drive trucking to a zero-emissions future, encompassing trucking products, customer solutions, and the corresponding energy infrastructure.” Chan serves as an independent Board of Director for Magna International, SBA Communications, and CommScope. She holds a Bachelor of Science and Master of Science degree in Electrical Engineering from Columbia University.  

Going down? Analysts debate how long freight rates will remain low

Those who were hoping that freight rates might begin to rebound in August were disappointed — and the disappointment is likely to continue for a few more months. Average dry van spot rates increased slightly in August, up just 0.7% from July numbers, according to DAT Trendlines. Compared with August of 2022, however, dry van rates fell a more dramatic 17.7%. The number of available trucks has continued to grow while the number of loads has not, resulting in a decline of 19.9% in DAT’s load-to-truck ratio. More trucks competing for fewer loads drives rates downward. The average spot rate for dry van was $2.08 per mile in August, according to DAT. On the temperature-controlled side, rates increased 2.6% from July but were down 13.9% from August 2022, as the load-to-truck ratio dropped by 37.8%. Spot rates averaged $2.50 for refrigerated trailers in August. The flatbed load-to-truck ratio was even worse, declining by 57.2% compared with August 2022. Flatbed spot rates fell 1.1% from July rates and 17.6% from August 2022 rates. The average spot rate for flatbed freight in August was $2.50, according to DAT. Fuel costs rose by 12.6% during August but are still 12.8% lower than in August 2022. Loads posted on the Truckstop.com board in August followed a similar trajectory, as reported by FTR Transportation Intelligence. The board reported some rate increases due to the Labor Day holiday but reported that average rates were still 21% lower than the five-year average for that holiday week. According to the Motive Monthly Economic Report, key metrics in retail visits improved in August. Motive’s data points differ from other analysts in that its data is compiled using GPS information collected from trucks that utilize their equipment, counting actual truck visits to retailers and other statistically valuable locations. Motive reported that retail visits were higher in August compared with August 2022, a good sign that the economy is beginning to show signs of growth. At the same time, the number of new carrier registrations with the Federal Motor Carrier Safety Administration grew in August, while carrier exits declined sharply. This means more trucks are engaging in the hunt for freight, helping keep rates low. The Motive report also indicates that rising diesel prices and increasing costs for credit will add difficulty for smaller trucking operations. The report states that Motive expects the overall contraction (the removal of trucks from the marketplace) to continue into early 2024, and truck owners are advised to prioritize operational efficiency. Conserving cash is the best defense a small business has against difficult business periods. “Destocking” is a work that has been frequently used during the freight downturn. Simply put, it means retail establishments and manufacturers have been ordering less product to restock their shelves in response to slowed sales. By measuring the number of truck visits to distribution centers for the top 50 retailers, Motive can create its “Big Box Retail Index.” The index for August didn’t quite make it to July levels, primarily because of the July 4 holiday; however, the index rose 8.1% from the June level. Motive sees the increasing number of visits as a sign that retailer inventories are “normalizing.” Orders slowed while they were reducing their stock of product, but they are now ordering enough to maintain the lower inventory numbers. At a recent industry conference hosted by ACT Research, the firm’s vice president and senior analyst Tim Denoyer claimed that the freight market is “getting close to finding supply and demand balance.” In the trucking industry, “supply” indicates the availability of trucks and “demand” is the number of loads available to fill them. Denoyer predicted that freight rates will begin rising in the fourth quarter of 2023, which begins the date of this issue of The Trucker. If this happens, it will be welcome news to the thousands upon thousands of small trucking companies that are currently competing for freight. The industry could receive another boost if efforts by the Federal Reserve to curtail inflation are successful in reducing inflation without stifling production. In the meantime, a recent study released by ATRI (the American Trucking Research Institute) pegged the cost of operating a truck at $2.25 per mile, a figure that’s higher than many spot loads are currently paying. Successful truck and small fleet owners will pay close attention to the rates they accept, planning ahead for the next load or two as well. It pays to avoid taking loads into regions where outbound rates are hard to come by and priced on the low end of the spectrum when found. Some truck owners may have to adjust their home time expectations in order to take advantage of higher freight rates. The upcoming holidays can present another opportunity for good rates as many drivers shut down for days during holiday weeks, resulting in fewer trucks on the road and rates that may be temporarily higher. If there’s any good news, it’s that the recession that many economists expected has fizzled and may not happen at all. The tricky part will be staying above water on business expenses until freight rates begin climbing again.

JB Hunt to acquire broker assets of BNSF logistics

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.

August sees high used truck sales, ACT reports

COLUMBUS, Ind. — According to the State of the Industry: U.S. Classes 3-8 Used Trucks published by ACT Research, preliminary Class 8 used truck retail sales increased by 14% in August. Compared to the data from July, the average retail price had increased by 1% while miles and age declined by the same percentage, according to a news release. Compared to August of 2022, volumes improved by 6%, but the pricing, miles and age all fell — pricing by 26%, miles by 3% and age by 4%. “Historically, August is the second-best month of the year, more than 8% above average and 10% better than July,” said Steve Tam, the vice president at ACT Research. “The uncharacteristically large improvement this month is likely a reflection of the increased availability of units at more attractive prices.” In three of the past four months, used Class 8 average retail sale prices have reflected either below normal or typical levels of month-to-month depreciation, according to ACT. “Looking ahead to next month, the price against which longer-term comparisons will be made will be considerably lower than they have for the first half of 2023,” Tam said. “With destocking on shippers’ inventory at hand, freight is expected to stop contracting and perhaps even return to growth soon. At the same time, the number of trucks servicing the freight market continues to decline. These are the exact ingredients for a rebalancing of capacity and the subsequent return to a more normal used truck market.”  

Third generation of family leadership picks up reins at Indiana Kenworth dealer

INDIANAPOLIS — Palmer Trucks, a Kenworth commercial truck dealer group, announced the third generation of leadership at the company after experiencing a tremendous 20–year growth in dollar volume, geographical footprint, and employment numbers under the tenure of CEO John Nichols. The family-owned and -operated company, which has been in business nearly six decades, employs more than 700 people in Illinois, Indiana, Kentucky and Ohio. John Nichols will now take on the role of executive chairman, and his sons, Jacob Nichols and Scott Nichols, will lead the company’s day-to-day operations.   “We’ve seen tremendous growth throughout the last 20 years here at the Crossroads of America, and we’ve grown and adapted to better support regional companies with expanded facilities, quality-engineered Kenworth trucks, and cutting-edge technology,” said John Nichols. “Now is the time for the next generation to assume a more involved role in our day-to-day operations so that we continue to grow and adapt to best serve the trucking industry. I look forward to providing continued guidance and mentorship.” Scott Nichols, grandson of Palmer Trucks founder Eldon Palmer, has over 20 years in the business and will assume the role of CEO and co-president. “It is an honor and privilege I take with great humility to lead our organization, and I look forward to what the future holds with an open mind. My grandfather and father have been a tremendous inspiration, and I hope to follow in their footsteps by treating all with honesty, dignity, and respect,” said Scott Nichols. Jacob Nicholas, another grandson of Palmer, will assume the role of chief human resources officer and co-president, who will continue to develop additional well-paying careers for residents.  “There’s tremendous potential for young Indiana residents to find meaningful careers with endless growth and opportunity. I’m thrilled to lead our team in developing and growing programs to support those folks at Palmer Trucks,” Jacob Nichols commented.

CEO of energy giant BP steps down amid questions about personal conduct

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

Pilot program explores potential of mileage-based user fees

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.

Labor Day week sees flatbed bolstering spot market rates

For the first time since March, broker-posted spot rates rose for a third straight week during the week ending Sept. 8, due in most part to uncharacteristic strength in rates for flatbed equipment, according to data from Truckstop and FTR Transportation Intelligence. Flatbed posted its strongest rate increase since early February while refrigerated rates were essentially flat and dry van rates ticked up only slightly. Load postings were down for all equipment types due to the Labor Day holiday, but truck postings fell more sharply. Total load activity fell 11.7% during Labor Day week for the largest decline since the week of Independence Day. Volume for Labor Day week was more than 15% below the same week last year, the least negative comparison since July 2022 and almost 21% below the five-year average for the week. Not surprisingly, volume was down in all regions week over week. Truck postings fell 16.1%, 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 rose just over 2 cents after rising by almost the same amount in the previous week. Rates were almost 12% below the same 2022 week — the least negative year over year comparison since October 2022 — and nearly 5% below the five-year average. Dry van spot rates ticked up a half-cent after rising more than 6 cents during the prior week. Rates were more than 9% below both the same week last year — the least negative year over year comparison since July 2022 — and nearly 10% below the five-year average. Dry van loads fell 9.5%. Volume was more than 6% below the same week of 2022 — the least negative year over year comparison since July of last year — and 13% below the five-year average. Refrigerated spot rates were practically unchanged, easing just a tenth of a cent after increasing for three straight weeks. Rates were more than 7% below the same week of 2022 and more than 5% below the five-year average. Refrigerated loads fell 9.9%. Volume was more than 16% below the same week last year and almost 21% below the five-year average for the week. Flatbed spot rates rose nearly 5 cents after ticking up three-tenths of a cent in the prior week. The back-to-back increases were the first since May. Rates were nearly 15% below the same 2022 week and nearly 3% below the five-year average. Flatbed loads fell 11%. Volume was about 20% below the same week last year and more than 32% below the five-year average for the week. Flatbed spot rates rose nearly 5 cents after ticking up three-tenths of a cent in the prior week. The back-to-back increases were the first since May. Rates were nearly 15% below the same 2022 week and nearly 3% below the five-year average. Flatbed loads fell 11%. Volume was about 20% below the same week last year and more than 32% below the five-year average for the week.

Boyle’s Laura Duryea named WIT’s September member of the month

ARLINGTON, Va. — The Women In Trucking Association (WIT) announced Laura Duryea of Boyle Transportation as its September 2023 member of the month. Duryea is the director of driver recruitment and professional growth for Boyle.  Duryea began her career as a professional driver in the transportation industry; she was inspired by driving a shuttle bus while attending university. After graduating from university, she attended the Pittsburgh Diesel Institute and went on to work as a driver for the next 25 years. Her last two years as a driver were spent as a team driver at Boyle before she transitioned into the role of manager of recruiting, retention and driver development, where she worked for five years. She has been in her current position since July 2023. She said she truly believes her years of experience as a truck driver brings a fresh perspective to the position.  In 2022, Duryea was named as a member of the newly established Women of Trucking Advisory Board (WOTAB) of the U.S. Department of Transportation’s (DOT) Federal Motor Carrier Safety Administration (FMCSA). The advisory board’s mission is to support women inspired to pursue careers in the trucking industry and provide scholarship opportunities for those same women. She was also recently named as a mentor in the Women in Motion Mentor Program with the American Trucking Association.  Duryea is a passionate member of WIT and a vivid supporter of its mission, saying, “Women are collaborative by nature, and when we come together for a cause, we can change the world and this industry.”  Apart from her transportation career, Duryea is a member of the Savannah Professional Woman for Good, which supports nonprofits in the local community. She also served the Dover Volunteer Fire Department as secretary for 10 years, and she ran LaDa Farms, which supplied organic produce to local natural food stores, for over a decade.

Fleet Advantage celebrates drivers with donations to TAT, Truckers Final Mile

FORT LAUDERDALE, Fla. — To show its ongoing appreciation during National Truck Driver Appreciation Week, Sept. 10-16, Fleet Advantage is making donations to two organizations — TruckersFinalMile.org and Truckers Against Trafficking (TAT) — through Fleet Advantage’s Kids Around the Corner Foundation (KATC). “The impact of truck drivers is felt in every corner of the country, as they are vital to supplying the things that fill our lives and power our economy,” said Elizabeth Gomez, marketing manager for Fleet Advantage, and chairperson for the KATC committee. “National Truck Driver Appreciation Week serves as a reminder of how important these hardworking men and women are to keep goods flowing,” she continued. “We are proud to donate to such powerful nonprofit organizations whose missions offer care, assistance and the means for truck drivers’ families to remain close to one another and to make an impact in their communities.” Since 2021, KATC has monetarily donated to TruckersFinalMile.org annually to help the nonprofit organization reunite North American truck drivers and their families in times of crisis, loss of life, debilitating injuries or serious illnesses. Since its founding in May 2014, TruckersFinalMile.org has helped reunite more than 500 truck drivers and their families through its six unique programs. Additionally, as an official corporate sponsor for the third straight year (and the largest contributor this year), KATC helped secure college education savings accounts through TruckerFinalMile.org’s annual Christmas campaign “Sleigh Bells and Santa.” To become a sponsor or donate to truckersfinalmile.org’s “Sleigh Bells & Santa” Christmas campaign this year, click here or email [email protected] no later than Dec. 8, 2023. New, unwrapped gifts can be mailed to: TruckersFinalMile.org, 3301-R Coors Blvd. NW #293, Albuquerque, NM 87120 (also no later than Dec. 8). “With the help of Fleet Advantage, our program has been able to make the difference in the lives of thousands of children and families of truck drivers, who unfortunately face grief and trauma during the loss of a parent,” said Robert Palm, founder and CEO of TruckersFinalMile.org. “We simply can’t thank companies like Fleet Advantage enough. Their contributions, compassion and understanding plays a large part in helping to heal these families in a time of great need.” To continue honoring truck drivers and their families and to call attention to the impact the trucking industry has in the fight against human trafficking, KATC is also donating funds for the first time as a “Gold Level” sponsor to TAT. This nonprofit organization has operated since 2009 to educate, equip, empower and mobilize the trucking industry to combat human trafficking. TAT believes that by the nature of their jobs — and the fact that any given time there are more drivers on the road than law enforcement — trucking professionals can be the eyes and ears to assist law enforcement in the recognition and reporting of human trafficking, to aid in the recovery of more victims and the arrest of perpetrators. The organization also partners with the bus and energy industries, as well as industry shippers and manufacturers, to engage their carriers, raise awareness about human trafficking and use their influence to expand human trafficking awareness. “It’s exciting to see a company like Fleet Advantage lend its influence and resources to combat human trafficking,” said Esther Goetsch, executive director of TAT. “Recognizing the unique role the trucking industry can play in helping recognize and report human trafficking and become potential points of safety and recovery for victims is inspiring. We are so grateful to Fleet Advantage for helping advance our mission, and truly believe that together, we are changing lives.”

Peter Perez drives away as winner of Landstar truck giveaway

JACKSONVILLE, Fla. — Owner-operator Peter Perez of Houston won a 2024 Freightliner Cascadia during Landstar System’s 2023 Deliver to Win Truck Giveaway. The giveaway was held Aug. 29 in Reno, Nevada. Perez was one of five finalists randomly selected from the contest’s pool of eligible business capacity owners (BCOs), the term for independent owner-operators who lease with Landstar. The truck giveaway is the highlight of Landstar’s BCO Appreciation Days, a two-day event held each year to thank Landstar’s owner-operators for their commitment to safety and customer service. “The funny part is that I wasn’t going to come to the event. I was stressed. I’ve had my truck in the shop, and I thought, ‘I’ve got to work,’” Perez said. “And then it started clicking that this is when Landstar gives away a truck every year. With the way that God moves things around, I’m just happy and thankful.” Twice a year, Landstar buys and gives away a brand-new truck to the company’s eligible leased owner-operators. The Aug. 29 event was the second of 2023 and marked the company’s 48th truck giveaway. “Landstar’s safety-first culture is upheld by its independent owner-operators, and we’re thankful for that continual commitment,” said Jim Gattoni, president and CEO of Landstar. “We’re proud to acknowledge and celebrate our BCOs for their excellent customer service.” Eligible Landstar BCOs automatically earn entries to the Deliver to Win Truck Giveaway throughout the year by delivering loads safely during the giveaway period. They can earn more entries for the giveaway by attending safety meetings and participating in Landstar’s monthly Safety Thursday Conference Call. After the entry period closes, all entries are pooled, and a computerized random number generator selects finalists. Finalists must be present at the giveaway to win. In July, Landstar Million Mile Safe Driver and Roadstar honoree Willie Mixon of Quitman, Mississippi, won the company’s first giveaway for 2023.

Stack AV announces plans for autonomous truck development

PITTSBURGH — There’s a new contender in the autonomous trucking industry. Stack AV  announced Sept. 7 that it is entering the ring. The startup, backed by Softbank Group Corp., is operated by Bryan Salesky and Peter Rander. The two also co-founded the now-defunct Argo AI, which was backed by Ford and Volkswagen and focused on the passenger-vehicle industry. According to a press release from Stack AV, the new firm “leverages its self-driving technology to improve efficiency and enhance safety in the trucking industry, while tackling supply chain challenges for its partners and their consumers.” Salesky and Rander hope to revolutionize the way businesses transport goods by providing solutions to trucking industry issues, including a shortage of drivers, lagging efficiency in uptime per vehicle, overarching safety concerns, high operating costs and elevated emission levels. The ultimate goal of Stack AV, according to the release, is to create better and smarter supply chains, improve business outcomes for customers and speed delivery of goods. “As consumer consumption patterns evolve, businesses increasingly need AI-driven, intelligent, and reliable supply chains,” said Salesky, who serves as the firm’s CEO. “With our proprietary technology and expertise as well as the commitment from our long-term partner in SoftBank, we are confident we will revolutionize the trucking and freight industries by driving improvements in efficiency and safety and alleviating supply chain constraints for our customers, helping them reach their goals and advance their missions.” The amount of Softbank’s investment in the startup was not disclosed, but Stack AV’s press release noted that the bank is providing capital, resources and “deep expertise in AI” to help accelerate the firm’s growth and development. “We could not be more thrilled to unveil our autonomous trucking business to the world,” said Rander, who serves as president of Stack AV. “As global commerce continues to become increasingly interconnected, now more than ever businesses have a dire need for more reliable and efficient supply chains, especially in the trucking and freight industries. Leveraging our advanced AI-powered autonomous driving systems, we will improve supply chains for our customers and optimize transportation routes and energy efficiency.” In addition to Salesky and Rander, the Pittsburgh-based company is led by Brett Browning, who serves as chief technology officer. In total, Stack AV employs 150 people, both in the firm’s headquarters and across 15 states. “The transformative power of AI is undeniable and will have a significant impact on our society,” said Kentaro Matsui, head of the new business office at SoftBank Group and managing partner at SoftBank Investment Advisers. “The next decade will be defined by AI, where all social systems will be linked by this technology to solve the most complex societal issues,” Matsui continued. “By applying the strengths of AI-powered technology to the trucking industry, Stack AV will fundamentally change the transportation of goods and supply chains across the globe.”

Total spot rates in Truckstop system rise for 2nd straight week

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.

DAT One’s network sees load numbers fall in latest week

BEAVERTON, Ore. — The number of loads posted to the DAT One network fell by 3.2% for the week of Aug. 27 through Sept. 7 to 1.35 million. That’s down 39% compared to the same week the previous year and 15% lower than the same week in 2019. The percentage declines were spread evenly across all three equipment types, although falling reefer load availability continues to signal that the produce-shipping season is past its peak. Load posts declined 3.2% ▼  Van loads: 688,865, down 2.2% compared to the previous week. ▼  Reefer loads: 328,672, down 5.2% week-over-week.▼  Flatbed loads: 335,428, down 3.3% week-over-week.Truck posts fell 8.2% The number of trucks on DAT One dropped by 8.2% to 352,682 ahead of the Labor Day holiday. That’s 16% lower year-over-year. ▼  Van equipment: 228,672, down 5.2%. That’s the lowest number of van truck posts since Week 27, which included the July 4 holiday.▼  Reefer equipment: 72,788, down 9.7%. Down 9% year-over-year but 2% higher than the same week in 2019.▼  Flatbed equipment: 51,548, down 8.2%. Down 2% year-over-year but 12% higher compared to the same week in 2019.Load-to-truck ratios rose for the third straight week ▲  Vans: 3.0 loads per truck, up from 2.8 the previous week. Four-week average: 2.7.▲  Reefers: 4.5 loads per truck, up from 4.3 the previous week. Four-week average: 4.3.▲  Flatbeds: 6.5 loads per truck, up from 6.2 the previous week. Four-week average: 5.9.DAT benchmark spot line-haul rates increased National benchmark line-haul rates increased ahead of the Labor Day holiday weekend. ▲  Van rate: $1.58 net fuel, up 3 cents.▲  Reefer rate: $1.95 net fuel, up 2 cents. ▲  Flatbed rate: $1.87 net fuel, up 2 cents.