Business Archives

Tentative deal reached in nearly 2-week port strike on Canada’s west coast

The Associated Press - July 14, 2023

VANCOUVER, British Columbia — A tentative deal was reached Thursday between employers and workers in a strike that has halted shipments in and out of ports in Canada’s west coast region of British Columbia for nearly two weeks. A statement from the BC Maritime Employers Association said it had reached a tentative agreement with the International Longshore and Warehouse Union. The strike by 7,400 members of the union began July 1 and shut down more than 30 west coast ports, including Canada’s largest, the Port of Vancouver. The tentative deal comes after federal Labor Minister Seamus O’Regan ordered a mediator to issue terms of a possible settlement earlier this week, saying the gap in the deadlocked talks was “not sufficient to justify a continued work stoppage.” In a tweet responding to the tentative deal, O’Regan says “the strike is over,” and the “parties are finalizing details for the resumption of work at the ports.” The four-year deal is subject to ratification by both parties, so details are not yet being released. The affected ports handle cargo worth over 800 million Canadian dollars ($600 million) every day. Business groups and the provincial governments had called on the national government to force an end to the strike. The Greater Vancouver Board of Trade said that as of Wednesday there were 63,000 shipping containers stuck on vessels waiting at British Columbia ports to be unloaded, and that number would have ballooned to 245,000 had the strike persisted to the end of July.

UPS Teamsters hold practice picket in Michigan

The Trucker News Staff - July 14, 2023

TAYLOR, Mich. — Members of Teamsters Local 243 who work at UPS began a practice picket at 8 a.m. on Friday, July 14, ahead of the July 31 expiration of their contract. The Teamsters agreement with UPS is the largest private-sector union contract in North America, according to a news release. UPS Teamsters are demanding the strongest possible contract or are prepared to strike. “More than 340,000 UPS Teamster delivery and warehouse logistics workers nationwide are fighting to win a strong contract that guarantees better pay for all workers, eliminates the two-tier wage 22.4 job classification, increases the number of full-time jobs, addresses safety and health concerns around heat illness and provides stronger protections against managerial harassment,” the news release notes. UPS recorded $100 billion in revenue and over $13 billion in profits last year.

SMGI acquires Barnhart Transportation

The Trucker News Staff - July 13, 2023

HOUSTON — Transportation services company SMG Industries has bought and merged with Barnhart Transportation, a Pennsylvania-based logistics services firm. The total acquisition consists of Barnhart Transportation LLC, Barnhart Fleet Maintenance, LLC, Lake Shore Logistics, LLC, Lake Shore Global Solutions, LLC, Legend Equipment Leasing, LLC and Route 20 Tank Wash, LLC, which specializes in a wide range of transportation services, including full truck load, dry bulk, liquids, intermodal, LTL, heavy haul, drayage, transload and an “asset lite” brokerage business, according to a news release. The acquisition cost amounts to $53.25 million, with $26 million paid in cash at closing, the news release noted. As part of the transaction, the principal owners of Barnhart received $19.25 million of the purchase price in the form of SMGI common stock, received $5 million of SMGI preferred stock and received a $3 million promissory note from SMGI. Matt Flemming, chairman of SMGI, expressed enthusiasm about the deal, stating, “The acquisition of Barnhart by SMGI creates an attractive and diversified platform. We anticipate that the combined entity will establish itself as a larger, scalable, and more diversified transportation business, emerging as a regional leader in Texas, the Southwest and the Eastern Seaboard.” Flemming further stated that combination of the two companies “will enhance customer relationships, reduce cyclicality and decrease customer concentration. With more than 500 non-overlapping customers, the cross-selling opportunities from a broader range of assets, capabilities, and services offers exciting opportunities for the growth of the combined company. We are thrilled to welcome Barnhart’s talented employees to the SMGI team and believe this transaction positions us well to deliver enhanced growth and significant value creation for employees, customers and shareholders.” Tim and Bryan Barnhart, the leaders behind Barnhart Transportation, “bring a wealth of experience, expertise and leadership to SMGI,” the news release noted. “Over the past two decades, they have successfully diversified the company’s footprint to meet evolving customer needs. Their commitment to operational excellence and financial prudence has established a foundation of fiscal responsibility and sustainability.” Tim Barnhart, the company’s new chief financial officer and board member, said that anticipating market trends and making strategic investments have been key to staying ahead in the dynamic global logistics market. “Within the combined entity, we see tremendous opportunities for growth and success,” he said. Bryan Barnhart, the newly appointed CEO and board member said of the deal: “The acquisition of Barnhart Transportation by SMG Industries is a significant milestone for both companies. “Together, management will leverage the transformative partnership to create a larger, more diversified transportation business, solidifying its position as a global leader. The merger unlocks attractive growth opportunities, strengthens customer relationships, and increases market capitalization. Combining its collective vision and strategic approach, the companies are poised to propel the company to new heights and set new benchmarks within the industry.” Steven Madden, SMGI’s chief transition officer and board member, said he’s looking forward to the future with the combined companies. “We are excited to join forces with Barnhart Transportation,” he said. “We believe this merger creates value of 1+1=3 immediately. We have worked hard since those difficult Covid days to transform SMGI along with the help of Jimmy Frye (president of 5J Trucking and board member) into a healthier, more profitable, turn-key, customer-focused, diversified, domestic infrastructure transportation company force. This acquisition and merger is just the beginning, and the Barnhart’s are a perfect fit culturally, operationally and financially. It provides the necessary platform to springboard us organically and inorganically giving us more capacity for expansion while gaining experienced, proven industry leaders and managers. This merger will also provide additional strategic business units for both geographic regions. Most importantly, this acquisition helps our customers, employees and increases value to our shareholders.”

Love’s Travel Stops adds 102 truck parking spaces with new locations in Arizona, Mississippi

The Trucker News Staff - July 13, 2023

OKLAHOMA CITY — Love’s Travel Stops is now serving customers in Willcox, Arizona, and Lucedale, Mississippi, with two new locations that opened on Thursday, July 13. The facility in Willcox, located off Interstate 10 at 1600 N. Fort Grant Road, adds 65 jobs and 60 truck parking spaces to Cochise County, according to a news release, while the store in Lucedale, located off Highway 98 at 2127 Hopper Road, adds 75 jobs and 42 truck parking spaces to George County. “Love’s is excited to add two new locations across the nation’s highways and to serve the Willcox and Lucedale communities,” said Shane Wharton, president of Love’s. “During a very busy travel season, we can’t wait to greet customers with the quality amenities and service that they deserve while on the road.” The locations are open 24/7 and offer bean-to-cup gourmet coffee, brand-name snacks and Love’s Mobile to Go Zone with today’s latest technologies. Following are store amenities by location: Willcox, Arizona More than 13,000 square feet. Arby’s (opening July 17). 60 truck parking spaces. 62 car parking spaces. Three RV parking spaces. Seven diesel bays. Five showers. Laundry facilities. CAT scale. Lucedale, Mississippi More than 10,000 square feet. Arby’s (opening July 17). 42 truck parking spaces. 59 car parking spaces. Two RV parking spaces. Five diesel bays. Four showers. Laundry facilities. CAT scale.

ACT Research: US freight market ‘bouncing along the cycle bottom’

The Trucker News Staff - July 13, 2023

COLUMBUS, Ind. — According to the latest release of ACT Research’s Freight Forecast: U.S. Rate and Volume OUTLOOK report, driver capacity models suggest the record declines in freight rates should be pushing out more jobs, generating the kind of creative destruction needed to set up the next cycle, while tremors in the LTL market could press the industry rebalancing forward. “While there may be capacity reduction in LTL soon, fleets are focused on retention despite record rate reductions, resulting in a gradual rebalancing,” said Tim Denoyer, ACT Research’s vice president and senior analyst. “The preliminary BLS data set, which we think gets closest to drivers, added 2.3k jobs in May, defying gravity for now. Some of this probably came from the owner-operator community, where net revocations of DOT operating authorities continue apace. We estimate another 12,400 total revocations of operating authority and 2,950 Trucking Employment Long Distance Drivers May 2023net revocations in May, bringing the total contraction in the industry since last October to over 15k fleets.” Capacity rebalancing is well under way, albeit slower than expected, and demand is poised to gradually recover from the soft levels of the past five or six quarters, so the fundamentals for a recovery are in place. “The spot market is continuing to rebalance with net revocations still at record rates. Even as the overall market is still on the loose side, the pendulum has started to swing,” Denoyer concluded. “The trajectory of spot rates has changed in the past couple of months, and we think demand fundamentals are likely to improve from here as we pass the worst of the destock. So, more freight market dynamics are in store down the road.”

Meadow Lark partners with OTR Solutions ‘to enhance operations’

The Trucker News Staff - July 13, 2023

BILLINGS, Mont. — Officials with third-party logistics company Meadow Lark Agency say they have partnered with OTR Solutions, an Atlanta-based factoring and trucking technology company, to boost their carrier payment systems. “This carefully curated partnership with OTR Solutions allows us to enhance our operations with their precise plan for carrier invoice management,” said Meadow Lark CEO Amanda Roth. “It is a cornerstone in our strategy to reinforce operational excellence and financial resilience, starting with ensuring our loyal carrier base that they will be brought up to date on all payments owed.” According to a news release, “with OTR Solutions’ premier back-office services supporting Meadow Lark’s carrier payment process, the Meadow Lark team can now devote their attention to cultivating carrier relationships and pursuing a strategic direction.” The news release further notes that the collaboration will allow Meadow Lark carriers to “gain access to favorable terms, such as 21-day payment cycles for new invoices, 3% two-day QuickPay options and more.” OTR Solutions Chief Executive Officer Fritz Owens said the transportation industry, especially carriers, is no stranger to difficult times. “The Meadow Lark family of companies are a staple in this industry,” he added. “We are excited to bring Meadow Lark’s capabilities to the next level and allow their business to continue moving forward.” Since its establishment in 2011, OTR Solutions has been managing carrier invoice payments and optimizing efficiency through its factoring program. OTR Solutions officials say they are “well-prepared to revolutionize Meadow Lark’s carrier payments going forward.” “This partnership is an exciting chapter in our journey,” Roth said. “We look forward to a promising future for all of our carriers.”

Jennifer Rumsey named chair of Cummins Board of Directors

The Trucker News Staff - July 13, 2023

COLUMBUS, Ind.– Cummins President and Chief Executive Officer Jennifer Rumsey has been elected to chair the company’s board, effective Aug. 1, 2023. Rumsey succeeds Tom Linebarger, who is retiring from both of his Cummins positions — as executive chairman and chairman of the board — effective July 31, according to a news release. Rumsey was first appointed to the Cummins Board of Directors in February 2022 and has served as president and CEO since August 2022. She has held numerous roles during her more than two decades at Cummins, including chief technical officer, president of the components business and chief operating officer, the news release stated. “Jennifer’s appointment as chair comes at a pivotal time for Cummins and the entire industry,” Linebarger said. “Her strategic vision for Cummins, centered on delivering solutions that meet our customers’ needs while reducing our impact on the environment, will help lead our company in the transition to a decarbonized future. On a personal note, I am filled with immense pride and gratitude for the privilege of being part of this remarkable company for the past 30 years. I am delighted to pass this role to Jennifer and firmly believe that she is the ideal leader to guide Cummins at this important time.” Rumsey said she is “deeply humbled to assume the role of chair. I would like to extend my sincere gratitude to Tom who has been an extraordinary leader for this company and an invaluable colleague and mentor to me.” Rumsey went on to praise Linebarger’s leadership, saying he “has shaped my journey and approach to leadership at Cummins and helped position us for a bright future. As we look ahead, we will continue to create innovative solutions that effectively address our customers’ needs while making a positive impact on the communities we serve.” Linebarger served as Cummins’ chairman and CEO from 2012-22 and as executive chairman of the company for the past year. During his 10-year tenure, the company grew its revenue from $17.3 billion to a record $28.1 billion last year, according to the news release. The news release noted that Rumsey “has significantly advanced the company’s decarbonization strategy in her first year as CEO while garnering three consecutive quarterly revenue records in late 2022 and early 2023. During this time, Cummins has continued to grow its core business with the acquisition of Meritor, accelerating the development of economically viable decarbonized powertrain solutions including the industry’s first fuel agnostic powertrain platform, enhancing the sales and service network and expanding customer relationships.” Rumsey is a Columbus, Indiana-native and member of the Society of Women Engineers, Society of Automotive Engineers and Women in Trucking Association. She holds a bachelor’s degree in mechanical engineering from Purdue University and a master’s degree in mechanical engineering from Massachusetts Institute of Technology. The news release notes that throughout her career, Rumsey has been an advocate for diversity, equity and inclusion and women in STEM fields. She resides in Columbus with her husband and has two college-age daughters.

J.B. Hunt recognized by Newsweek for its workplace culture

The Trucker News Staff - July 12, 2023

LOWELL, Ark. — J.B. Hunt Transport Services Inc. has been recognized as one of America’s Greatest Workplaces for 2023 by Newsweek for its overall workplace culture. “Our workplace culture centers on building an inclusive environment where employees feel empowered,” said Brad Hicks, president of Highway Services and executive vice president of People at J.B. Hunt. “It enables us to develop better strategic solutions for our customers, and these continued recognitions from national outlets like Newsweek are a testament to our company’s progress.” This is the third and largest recognition the company has received from Newsweek, according to a J.B. Hunt news release. Earlier this year, the outlet named J.B. Hunt among America’s Greatest Workplaces for Diversity, America’s Greatest Workplaces for Women and America’s Greatest Workplaces for Job Starters. “J.B. Hunt believes that a great inclusive workplace will foster company growth and innovation,” the news release noted. “The company continues to create opportunities where everyone feels seen, heard, valued, enabled and empowered to succeed. From talent acquisition to mentorships, J.B. Hunt provides a workplace centered on employee long-term career development.” Some of the company’s recent and notable efforts include: Launching and hosting six employee resource groups with a total of 5,000-plus members. Creating the J.B. Hunt Inclusion Office and Inclusion Council to ensure that inclusion remains a key component of creating exceptional employee experiences. Expanding health benefits to support the unique needs of people and their families. Awarding a total of $250,000 in scholarships annually for the families of J.B. Hunt employees.

Transervice Logistics’ owners snap up Lily Transportation Corp.

The Trucker News Staff - July 12, 2023

NEW YORK — An affiliate of ZS Fund L.P., the private equity firm and majority owner of Transervice Logistics Inc., has acquired dedicated contract carriage company Lily Transportation Corp. “The transaction increases the scale of services and resources that Transervice and Lily bring to the marketplace with the combined strength of more than 2,600 employees (more than 1,750 drivers) in more than 185 North American locations,” a Transervice news release stated. The increased scale is concentrated in the companies’ dedicated contract carriage and freight brokerage offerings, which are in addition to the contract maintenance and full-service leasing services offered by Transervice. Gregg Nierenberg, president and chief executive officer of Transervice, will also serve as president & CEO of Lily, the news release noted. Alex Lafaras, executive vice president and chief financial officer of Transervice, will also assume this role for Lily. “Our investment in Transervice Logistics 16 years ago has been a very successful one due to the company’s ability to provide outstanding service to its customers,” said Bob Horne, managing [artner of ZS Fund L.P. “Lily’s experienced and knowledgeable operating executives have exhibited this same customer-centric approach, which is what attracted us to the company, and we look forward to the best practices of each company being shared with the other.” John Simourian II, Lily’s president and CEO, said of the acquisition: “ZS Fund’s well-earned reputation in our industry as a private equity group looking for long-term appreciation, while allowing existing management teams to lead their companies, led me to choose ZS as Lily’s financial partner.” Simourian continued: “I have every confidence that Gregg Nierenberg is the right leader to ensure Lily’s continued growth. He has been a distinguished leader at some of the largest companies in our industry, and he respects and embraces our proud heritage and the exceptional customers and associates who have made us the great company we are today. While I will no longer be involved in Lily’s day-to-day operations, as Chairman of Lily and a board member and investor in Lily and Transervice, I will be fully engaged in providing support and guidance to Lily’s new leadership.” One owner, two separate companies Both companies said that customers can expect business as usual, as Transervice and Lily will be united under one owner and continue to operate as separate companies. Each will retain their independent corporate names and separate field and management teams. According to Nierenberg, “this dual-brand approach will create more opportunities for customers given the strong cultures already present in both companies known for their customer focus, empowered managers and flexible, agile approach. These are differentiators we will continue to embrace and promote.” Nierenberg also said he expects the transaction to provide more flexibility when matching prospective new customer needs and locations with each company’s strengths. The two companies now have an aggregate of 2,600 employees, including more than 1,750 drivers for dedicated contract carriage services, in more than 185 locations and manage approximately 27,000 pieces of equipment. “Transervice and Lily’s cultures and business approaches are remarkably similar,” Nierenberg said. “Both companies have many very long-standing customer relationships. We value these partnerships and will continue to give our customers the white glove touch. Every customer is provided with a senior executive point-of-contact to ensure responsive, efficient management in their day-to-day operations.”

Daimler Truck transforming for sustainable growth

The Trucker News Staff - July 11, 2023

BOSTON and LEINFELDEN-ECHTERDINGEN, Germany — After its first full year as an independent listed company, Daimler Truck Holding AG recently hosted its Capital Market Day 2023 in Boston. The main topics were “the guidance increase for 2023, the confirmation of 2025 ambitions, an enhanced capital allocation policy and the path towards 2030, transforming the company for sustainable growth,” according to a company statement. “Daimler Truck is doing very well. We are increasing our guidance for 2023. We are firmly on track to deliver on our 2025 ambitions. And we are ready to take Daimler Truck to the next level by 2030 — aiming for above 12% adjusted return on sales for the Industrial Business in sunny conditions. We are initiating a share buyback program of up to two billion euros over a period of up to two years to make sure our shareholders fully benefit from our successful development. Our flexible technology strategy enables us not only to navigate the historic transformation of our industry, but to capture all opportunities associated with it. In short: Daimler Truck is transforming for sustainable growth — to the benefit of our employees, our customers and our shareholders,” said Martin Daum, chairman of the Board of Management of Daimler Truck. After a strong first quarter in 2023 and an increase in unit sales in Q2, Daimler Truck continues to see a positive momentum for the remaining financial year, a news release states. In the second quarter of 2023, worldwide unit sales of the group increased by 9.0% versus the prior year quarter, selling in total 131,888 units (Q2/22: 120,961). All segments contributed positively to this year-over-year increase: Trucks North America +14.7% with 50,618 units (Q2/22: 44,124), Mercedes-Benz +1.1% with 39,236 units (Q2/22: 38,812), Trucks Asia +9.2% with 40,097 units (Q2/22: 36,704) and Daimler Buses +21.8% with 6,181 units (Q2/22: 5,075). These developments result in an increased group revenue guidance between $61 billion and $63 billion, company officials said. Technology strategy: Creating value for customers and scale for Daimler Truck “Daimler Truck sets itself the clear ambition to lead the transformation towards sustainable transportation,” according to the news release. “Therefore, the company’s focus lies on two technology fields that provide the highest differentiation for customers and the largest economies of scale. Power to drive, comprising the propulsion system, and intelligence to drive, focusing on electronics and software.” For power to drive, Daimler Truck officials say the aim “to continuously offer best total cost of ownership for its customers regardless of the energy source, be it diesel, battery or hydrogen. For intelligence to drive, Daimler Truck aims to differentiate with software features, which are rolled out rapidly, with high quality and tailor-made for customer use cases. Both technology fields are designed as global platforms with the goal of maximum commonality to scale them across the company’s portfolio — across all brands and regions. The platforms also allow to leverage on scales even beyond Daimler Truck.” Andreas Gorbach, a member of the Board of Management of Daimler Truck who is responsible for truck technology, said technology “plays a key role at Daimler Truck, as it is a crucial lever to increase shareholder value by creating both value for our customers and scale for us. This has always been essential, and even more so in times of transformation.” Decarbonizing with battery and hydrogen based solutions The speed of decarbonization in trucking is highly driven by the availability of infrastructure and competitive cost of green energy, Daimler officials noted. The company says it believes that the transformation requires a transition phase in which the diesel engine still plays a central role. In the case of medium-duty engines, Daimler Truck is concentrating on a non-captive procurement approach of such units in view of the declining volume of diesel-powered vehicles. However, in the case of the platform for heavy-duty engines, the group wants to remain competitive through further scaling, even beyond Daimler Truck. For a zero-emission future, the company is convinced that only the combination of battery-electric and hydrogen-powered propulsion systems will enable the customers to solve their transportation tasks sustainably and economically. “When it comes to battery technology, Daimler Truck is using a fast-to-market approach and already has a broad vehicle offering, followed by a dedicated, purpose-built truck platform for high-volume production as battery-electric vehicle penetration increases,” according to the news release. For hydrogen, Daimler Truck officials say they are aiming to enter series production of their first fuel cell powered vehicles within the second half of this decade, powered by the aggregates from cellcentric, its joint venture with the Volvo Group. As a potential complementary low-carbon technology for specific customer use cases with high power demand, Daimler Truck is considering the hydrogen combustion engine. “If the corresponding regulatory framework conditions are set, the company can build upon existing diesel engine platforms and provide this technology quickly,” the news release states. Starting already in 2024, Daimler Truck plans to roll out numerous next level software features such as further improved active safety functionalities, next level connectivity for fleet owner data access, predictive maintenance and advanced over-the-air-updates. All these features are enabled by a more powerful computer architecture. In a next step, Daimler Truck targets to further decouple software and hardware development cycles, enabling product and business improvements that can be developed in fast agile cycles, by Daimler Truck or third parties and deployed over-the-air.

ACT Research: Retail sales, production forecasts follow economic expectations higher

The Trucker News Staff - July 11, 2023

COLUMBUS, Ind. – Class 8 tractor forecasts, as published in the latest release of the North American Commercial Vehicle OUTLOOK by ACT Research, call for higher 2023 and 2024 retail sales and production volumes compared to last month’s report. The previously forecasted drop-off in Q4 sales and build activity no longer looks likely due to a continuously improving macroeconomic environment. ACT also raises its GDP, medium duty, and trailer build forecasts. “The upward forecast revisions reflect our view that macroeconomic positives will increasingly outweigh negatives as the calendar advances into 2024,” according to Kenny Vieth, ACT’s president and senior analyst. “Support from consumer durables, and perhaps even capital equipment spending, will be a plus. These are sectors that usually have steep declines in a traditional recession, but have held well thus far in 2023, and we expect that momentum to continue into 2024. Next year inventory accumulation should inflect to a freight tailwind, from the current destocking headwind.” Weaker orders in 2023 should lead to lower, if historically shallow, production declines in 2024, Vieth added. “Our now shallower decline in 2024 reflects a higher Q1 production starting rate, slightly higher economic growth, the notion that some customers may choose to replace equipment more liberally than they might otherwise in advance of the EPA’s expensive 2027 emissions mandate, which is likely to see vehicle demand outstrip the industry’s ability to supply, and for the same reasons, a willingness by dealers to carry more inventory through the 2024’s period of slower activity,” he concluded. New analysis by ACT Research shows higher-than-expected Class 8s tractor sales and production forecasts for 2023-24.

Freight markets saw no ‘boom’ during Fourth of July holiday

The Trucker News Staff - July 11, 2023

BLOOMINGTON, Ind. — While fireworks created spectacular scenes across the U.S. over the Independence Day holiday, spot market freight rates and volumes mostly fizzled. Broker-posted refrigerated and dry van rates in the Truckstop system fell during the week ended July 7, and load activity dropped sharply. Large rate decreases are typical for the van segments during the holiday week, although the decreases were smaller than they were during the same week in either 2021 or 2022, a Truckstop news release noted. Flatbed rates were the lone area of strength with an increase after five straight weeks of decline. Loads available Total load activity fell nearly 32% to the lowest level since Thanksgiving week last year. Volume was about 49% below the same week last year and almost 39% below the five-year average. Loads fell sharply in all regions. Truck postings declined nearly 22%, and the Market Demand Index — the ratio of loads to trucks — fell to its lowest level since Thanksgiving week last year. Total rates The total broker-posted rate declined nearly 2 cents, which is a strong showing for the July 4 holiday week. The relative resilience stems from smaller than typical declines in van rates and a rare increase in flatbed rates. The total market rate was about 20% below the same 2022 week and about 5% below the five-year average. The year-over-year comparison was the least negative since March. Dry van Dry van spot rates declined 3.4 cents after rising nearly 7 cents during the prior week. Although the 2022 decrease in the same week was only slightly larger, dry van rates frequently see double-digit drops during the July 4 holiday week. Rates were more than 17% below the same 2022 week and about 9% below the five-year average. Dry van loads fell 31% for the largest decrease since Thanksgiving week. Volume was more than 41% below the same week last year and about 31% below the five-year average for the week. Reefer Refrigerated spot rates fell nearly 17 cents after rising more than 13 cents in the previous week. The decrease was the smallest for the July 4 holiday week since 2020, and rate drops during the holiday week frequently are larger than they were this year. Rates were 13% below the same 2022 week and about 9% below the five-year average for the week. Refrigerated loads fell more than 33%. As was the case with dry van, the decrease was the largest since Thanksgiving week. Volume was 48% below the same week last year and nearly 34% below the five-year average for the week. Flatbed Flatbed spot rates surprised with a 2.5-cent increase following five straight weeks of decreases. Although flatbed rate drops are not as large during the July 4 holiday week as van rates are, in previous years they have always declined during the week. Rates were about 24% below the same 2022 week and nearly 4% below the five-year average for the week. Flatbed loads fell nearly 32% to their lowest level since Thanksgiving week. Volume was nearly 58% below the same week last year and 50% below the five-year average for the week.

Yellow Corp. thrown financial lifeline with new requirements, restrictions for loans

The Trucker News Staff - July 11, 2023

OVERLAND PARK, Kan.– Yellow Corp. has received a brief reprieve from its financial woes thanks to a June 30 federal financial filing. According to an 8-K filing with the Securities and Exchange Commission, Yellow has been allowed to amend its credit agreements with a group of lenders by extending the covenant compliance deadlines on its more than $1 billion in debt. In exchange, the Yellow must deliver detailed financial reports and hire a financial adviser. The SEC filing notes that beginning July 12, the company will be required to produce weekly delivery of a liquidity reports. The company’s liquidity isn’t allowed to fall below $35 million. Also beginning July 12, the company will be required to produce a 13-week consolidated operating budget and a budget variance report. These documents must compare the actual results against the forecasted results under the related budget on a line-by-line basis and aggregate basis, according to the SEC filing. Beginning July 26, a monthly supplement to the budget is required. In a statement to The Trucker, Yellow officials said they are “pleased that Yellow has successfully negotiated adjusted … covenant waivers to its existing credit agreement for one quarter with the U.S. Treasury and two quarters with its Term Loan Lenders. This, along with liquidity preservation efforts such as requesting to defer select health welfare and pension payments for July and August, should give us additional runway to negotiate with the IBT on a solution that provides material wage increases and aligns both parties on modernization of the company.” The statement added: “We aren’t giving up. Our employees, who have an average of 14 years’ tenure, want us to be here. Our customers want us to be here, even with all the noise around the company our shipment counts have held up and that’s crucial for us to work through this period while we get to negotiations.” This news comes on the heels of a lawsuit Yellow filed in the U.S. District Court for the District of Kansas against the International Brotherhood of Teamsters. The complaint alleges that the Teamsters “breached their binding union contract with Yellow, causing more than $137 million in damages by unjustifiably blocking, for over eight months, Yellow’s restructuring plan to modernize its business, which is necessary to compete against non-union carriers that dominate the LTL business today.” Yellow’s complaint further states that “These modernization efforts, known as One Yellow, are essential to the company’s survival.” In a news release, the Teamsters Union said it “categorically denies the baseless allegations made by Yellow Corporation in its frivolous lawsuit filed today.” Less-than-load carrier Yellow is working to right its financial ship, starting with a recent Securities and Exchange Commission filing that allows it a brief reprieve from loan due dates.

DHL Express opens new $84.5M hub in Atlanta

The Trucker News Staff - July 10, 2023

PLANTATION, Fla. — Global shipping giant DHL Express has announced the grand opening of its Americas region hub based at the Hartsfield Jackson Atlanta International Airport. “With a focus on sustainability, the $84.5 million investment further strengthens the company’s connections and service capabilities between the U.S. and key global markets, increasing capacity, speeding transit times, and adding resilience to its network,” a news release stated. Spanning 100,000 square feet, the new hub establishes direct connections between 19 cities in the Southeastern U.S. and key global markets, including Europe and major DHL hubs worldwide. Future plans involve adding flight connections to Hong Kong, Mexico, the UK and Puerto Rico. The DHL Atlanta Hub also generates up to 50% of its on-site energy consumption through 65,000 square feet of rooftop solar panels, preventing the release of 380 metric tons of CO2 emissions annually, according to DHL officials. The remaining energy consumed on-site is sourced from renewable sources through Renewable Energy Certificates, “guaranteeing zero emissions from electricity consumption,” DHL officials said. The hub also uses LED lights, electric forklifts, dock seals and rapid rise doors. “The new DHL Express Atlanta Hub represents a milestone in our ongoing pursuit of sustainability and technological advancement. It also exemplifies our belief in the power of international trade and recognizes the significance of Atlanta and the Southeast U.S. in the global marketplace,” said Mike Parra, CEO of DHL Express Americas. “By fostering commerce and bridging borders worldwide, this hub not only generates economic growth but also creates job opportunities in Atlanta. We take great pride in contributing to the prosperity of the communities where people live and raise their families.” The Atlanta hub operates as a fully automated facility, equipped with technology capable of sorting up to 20,000 pieces per hour, according to DHL.

Echo Global Logistics voted top 3rd-party logistics provider by Inbound Logistics

The Trucker News Staff - July 10, 2023

CHICAGO — Echo Global Logistics Inc., a provider of technology-enabled transportation and supply chain management services, has been voted the number one third-party logistics provider (3PL) by Inbound Logistics’ 2023 Top 10 3PL Excellence Awards for the seventh year in a row, according to a company statement. “Going the extra mile to simplify transportation for our clients and carriers is what Echo is all about,” said Dave Menzel, president and chief operating officer at Echo. “I’d like to thank Inbound Logistics for their support as well as our Echo team members who, combined with our innovative technology including EchoShip and EchoDrive, continue to set the logistics standard for excellence.” This win also marks the 13th consecutive year Echo has been chosen by the magazine’s readers as a top 10 3PL. “This award means a lot to us at Echo. It’s truly an honor to win this for the seventh time,” said Doug Waggoner, chief executive officer at Echo. “Shippers and carriers who work with Echo understand and appreciate the effectiveness of our technology and the dedication of our employees. I’m grateful for every industry professional who continues to support Echo each year.” For more than two decades, Inbound Logistics’ Top 10 3PL Excellence Awards recognize leading 3PLs that demonstrate “responsible and flexible service through the earned trust of their customers,” a news release stated. “Each year, thousands of the magazine’s readers participate on the awards process by voting for their favorite 3PL. For the past 13 years, Echo has managed to maintain or improve its rank on this list by combining highly effective, industry-leading technology such as advanced, load-matching algorithms, with exemplary, 24/7 service.”

SmartHop announces Courteney McDonnell as new chief revenue officer

The Trucker News Staff - July 7, 2023

MIAMI — SmartHop, a freight booking and fleet management platform, has named Courteney McDonnell as its new chief revenue officer (CRO), according to a company statement. “McDonnell will advance SmartHop’s customer-focused approach to revenue expansion by nurturing relations as part of the software as a service (SaaS) platform and fintech solutions go-to-market strategy,” a news release states. As an award-winning SaaS executive with more than a decade of notable experience stepping into the newly created position of CRO, McDonnell is responsible for overseeing SmartHop’s sales and customer success teams, ensuring the company’s continued revenue growth. “Courteney’s valuable experience in scaling global SaaS teams will prove beneficial to SmartHop as we focus on becoming the all-in-one platform, including user-friendly fintech and payroll solutions, to meet the needs of our small fleet owners and operators,” said Guillermo Garcia, SmartHop co-founder and CEO. “As we continue to scale our sales funnel, Courteney and her team will be essential in ensuring our current and prospective customers are successfully using our platform daily to grow healthier businesses by conducting back office work — from easy load booking, data-driven strategy and decision-making and trucking management to payment processing and payroll.” A majority of U.S. freight is being moved by smaller trucking companies — with 91.5% of trucking carriers operating with only six vehicles or less. SmartHop executives say that their company’s “move toward becoming a small fleet owner’s comprehensive solution is a quest to empower the trucking industry as a whole by helping smaller fleets operate more efficiently, and remaining profitable throughout the ebbs and flows of the trucking market.” “SmartHop is a tech-enabled platform offering easy load booking, data-driven strategy and decision-making, trucking management so I look forward to helping the company expand its services to additional small fleets that can benefit from such a needed platform,” McDonnell said. “I am committed to helping SmartHop deliver outstanding business in-a-box solutions aimed at helping small fleets earn more and stress less.” Before joining SmartHop, McDonnell served as the CRO and head of customer success for Measurabl, an environmental, social and governance solution for real estate. Her experience also includes leading teams at Placester Inc., a digital marketing real estate solution, as director of customer success. McDonnell also served as manager of customer success for Brainshark, a sales readiness software solution. She earned a bachelor’s degree in business administration and management from Saint Michael’s College.

Van spot rates show some strength during traditional peak week

The Trucker News Staff - July 7, 2023

BLOOMINGTON, Ind. — Although rates still trail the five-year average, spot rates for van equipment rose in line with seasonal expectations in the latest week, according to the latest report from Truckstop and Freight Transport Research. Broker-posted dry van and refrigerated spot rates in the Truckstop system posted solid increases during the week ended June 30 (week 26), which is the year’s traditional peak in rates aside from the December holiday period, a news release noted. Flatbed rates fell for the fifth straight week, although the decrease was not as sharp as it had been in the two prior weeks. Loads available Total load activity increased 2% as a drop in flatbed volume mostly offset gains in dry van and refrigerated. Volume was more than 46% below the same week last year and nearly 26% below the five-year average. Loads were down in the Southeast and South Central regions but up elsewhere. Truck postings declined 1.5%, and the Market Demand Index — the ratio of loads to trucks — rose slightly. Total rates The total broker-posted rate barely moved as the decline in flatbed rates offset the increases in rates for the van segments. Week 26 last year also saw essentially no change in total rates week over week. The total market rate was about 23% below the same 2022 week and nearly 7% below the five-year average. Total market rates have been softer than seasonal expectations for the past four weeks, but the weakness lies almost exclusively with flatbed equipment. The broker-posted spot rate for flatbed equipment slipped below refrigerated rates for the first time since the second week of this year. Dry van Dry van spot rates rose nearly 7 cents after increasing nearly 5 cents during the prior week. Rates were nearly 18% below the same 2022 week and about 10% below the five-year average. Dry van loads increased more than 13%, which is the strongest gain since mid-May’s International Roadcheck week. Volume was nearly 39% below the same week last year and nearly 16% below the five-year average for the week. Loads were down in the South Central region but up elsewhere. Reefer Refrigerated spot rates jumped more than 13 cents, which is the largest increase since the 29-cent surge during Roadcheck week. Rates were nearly 14% below the same 2022 week and more than 7% below the five-year average for the week. Refrigerated loads rose nearly 18% after a gain of a similar scope in the prior week. Volume was 40% below the same week last year and 16% below the five-year average for the week. Loads were down on the West Coast but up in all other regions. Flatbed Flatbed spot rates fell almost 4 cents after dropping about 7 cents during the previous week. Rates were nearly 28% below the same 2022 week and about 6% below the five-year average for the week. Flatbed loads fell more than 11% after dropping nearly 14% during the prior week. Volume was nearly 56% below the same week last year and about 40% below the five-year average for the week. Loads were up on the West Coast and in the Mountain Central region but down elsewhere.

New S&P Global Mobility Commercial Vehicle Forecast shows truck market coasting through ’24

The Trucker News Staff - July 6, 2023

SOUTHFIELD, Mich. — Near-term demand and growth for Classes 5-8 commercial vehicles are expected to flatten across North America as post-pandemic market corrections take place, according to a new market forecast from S&P Global Mobility. S&P analysts also predict that electric vehicle demand will drive accelerating growth as new Environmental Protection Agency regulations arrive in 2027. “The U.S. economy appears to have skirted the short recession in 2023, thanks to stoic consumer spending in durable and nominal goods, coupled with the resurgence in services, travel and restaurants — which have buoyed freight and truck activity though still being constrained by supply chain issues after the COVID-19 pandemic,” an S&P news release stated. The S&P forecast also notes that “slowing-down is expected to be visible by the fourth quarter, turning into a soft-growth 2024.” “After a strong first half of 2023, there should be a moderate reduction in medium-and heavy-duty commercial vehicle and bus demand through 2024,” according to S&P Global Mobility’s Q2 2023 forecast update. “However, the updated forecast maintains a more positive outlook for 2025 to 2026, when the truck market gears up for the next level of emissions regulations. The third tier of the 2027 greenhouse regulations, combined with the timing of the fleet replacement cycle, will likely fuel a strong wave of pre-emptive buying.” Antti Lindstrom, principal analyst for commercial vehicle forecasting at S&P Global Mobility, said that the added cost of tougher regulations “will drive more purchase activity in the middle of the decade.” As momentum slows, demand is estimated to dip to a low of around 505,000 units in 2024 (including buses and motorhomes), with projections indicating approximately 543,000 units by 2025. While not the primary driver, the energy transition in the trucking sector starting in California — plus about a dozen other CARB states with similar trajectories — is poised to support volume growth in 2023 and after. In addition to expected new-product updates, both established players and startup OEMs are continuing to introduce “cleaner” versions of their existing truck models such as the Freightliner eCascadia and Hino’s XL8 series, not to mention PACCAR’s Kenworth and Peterbilt BEV models that comply with zero-emissions standards. S&P officials note that there are several variations in observable market trends across different vehicle classes: Class 4 trucks, which were popular until the beginning of 2022, have been increasingly taken as lighter-duty applications for last-mile distribution during the pandemic. Ford’s Class 4 Econoline Cutaway model accounts for nearly two-thirds of models in this segment and may see increased competition rising from the start-ups entering the fray. Class 5 vehicles, while facing supply chain issues, are expected to see an increase in demand following a post-pandemic pause – for example in public-sector buying. Class 6 trucks have gained attention due to their fuel efficiency and suitability for many commercial purposes. However, softening of the housing and construction market triggered a dip in Class 6 truck registrations. Class 7 trucks have been on a decline in popularity due to their licensing requirements and higher costs vs. Class 6, in addition to the recent preference of OEMs and customers for trucks that bracket this segment. After a stronger 2022 where OEMs continued to focus on Class 8 trucks amid supply chain bottlenecks, we expect tractor-truck registrations to remain flat this year before a dip in 2024, and a modest upward trajectory picks up again starting in 2025. Not yet recovered to pre-pandemic levels, bus and motor home demand is projected to climb significantly in the current year and remaining at a similar level in 2024, supported by a rebound in school bus purchases. Growth is to resume in 2025, with motor homes and other bus types expected to provide the additional lift then. “Regardless of weight class, the more stringent environmental compliance will be the key driver in demand and production of all vehicle types,” according to the S&P report. “Upcoming regulations, specifically the proposed greenhouse gas emissions standards by the Environmental Protection Agency are forcing traditional OEMs to re-evaluate their manufacturing and investment strategies and prompting a potentially rapid shift from internal combustion engine products to electrified vehicles.” These laws, in conjunction with the continued push for more aggressive decarbonization efforts by states like California with its Advanced Clean Fleet regulation, are acting as the key catalyst in the transformation of powertrain technologies, S&P officials note. “However, the transition to the adoption of hydrogen and fuel cell technologies remains limited by cost, infrastructure and availability issues,” the report states. “This suggests battery-powered electrification as the go-to strategy will be pushed further into the midterm until those issues can be resolved — notwithstanding the recharging network for BEV trucks, which remains to be built.” The report further states that “Disruptor brands like Tesla and Nikola will accelerate this transition for their part and help strengthen the U.S. as the region’s epicenter of production.” As for the legacy brands, despite supply chain and labor issues, their Class 4-8 production rates for the North America region reached and even slightly exceeded the average build rates of 2019 by the end of 2022. While some production targets are still not being achieved, inventories continue being rebuilt — setting the stage for potential growth later. “Inventory figures of Class 4-7 trucks — which represent about half the market — remain below long-term averages, which is one reason why we think production has some upward potential,” said Andrej Divis, executive director of global truck research at S&P Global Mobility. Overall, present demand is still strong, owing to the muted risk of recession compared to the previous two quarters, combined with resilient consumer activity. Production is expected to sustain its surge in the short term, while remaining constrained by supply chain and labor issues, before levelling off and even declining in 2024.

Class 8 tractor orders see June increases

The Trucker News Staff - July 6, 2023

COLUMBUS, Ind. — Preliminary North American Class 8 net orders remained seasonally soft in June with 16,200 units, up 5% year-over-year and 4% month-over-month, while preliminary Classes 5-7 rose a modest 2% year-over-year with 17,700 units (-12% month-over-month), according to ACT Research. Complete industry data for May, including final order numbers, will be published by ACT in mid-July, a news release noted. “Given robust Class 8 orders into year-end 2022 and the ensuing backlog support, coupled with normal seasonal order patterns, orders were expected to moderate into Q2 and remain at relatively soft levels into mid-Q3’23. June orders were in line with this view, bringing the ytd monthly SA average to 18,200,” said Eric Crawford, ACT’s vice president and senior analyst. “The relatively few build slots still free in 2H’23 suggest order intake is unlikely to find meaningful traction until 2024 orderboards open.”

Fleet Advantage’s Matt de Aguiar selected as a 2023 40 Under 40 honoree by The South Florida Business Journal

The Trucker News Staff - July 5, 2023

FORT LAUDERDALE, Fla. — Fleet Advantage, a Class-8 fleet data analytics, equipment financing and life cycle cost management, has announced that Chief Operating Officer Matt de Aguiar, CLFP, has been selected to the South Florida Business Journal’s 40 Under 40 list, honoring his leadership and civic involvement throughout the South Florida community. Annually, the South Florida Business Journal acknowledges young professionals making their mark in the business world while shaping the local community’s future across the Broward, Miami-Dade and Palm Beach counties, according to a news release. “Promoted to be Fleet Advantage’s COO at the start of the year, de Aguiar has taken on increased responsibilities by focusing on continuous improvement both at Fleet Advantage and in the community,” the news release stated. “Within the company, he has implemented cross-departmental internal controls to foster a collaborative working environment, in which he saw an opportunity to align various departments with internal and external processes. As a result, Fleet Advantage saw better, overall teamwork as well as a better understanding of what individuals in other departments do on a daily basis.” In the community, de Aguiar has been a committee member of Fleet Advantage’s Kids Around The Corner Foundation, as he was involved in the foundation’s charitable donations to Tri-County Animal Rescue and Women In Distress. With Women-In-Distress, de Aguiar has been a key donator of the organization himself since 2012. As Fleet Advantage continues to grow, “de Aguiar continues to lead the company-wide initiative on documenting specific departmental processes, so that new and current employees can understand all procedures more holistically,” the news release noted. “de Aguiar has worked with every team in the organization with a goal to break down company silos, improve the overall culture, and create better efficiencies for Fleet Advantage overall.” Fleet Advantage President and CEO Brian Holland lauded de Aguiar’s accomplishments. “On behalf of our entire team, we are thrilled that Matt was honored with this recognition as one of South Florida’s best and brightest individuals impacting our local community,” Holland said. “Since joining Fleet Advantage nearly three years ago, Matt has implemented many tangible enhancements to the company and as his mentor, I look forward to continuing to offer any advice that I can.