Business Archives

Fleet Advantage honored with Transportation Marketing and Sales Association award

The Trucker News Staff - June 15, 2023

SAVANNAH, Ga. — Fleet Advantage has been given the 2023 Purpose Award for Community Engagement by the Transportation Marketing and Sales Association (TMSA) during the organization’s annual Elevate Logistics Marketing and Sales Conference held on June 13 in Savannah, Georgia. TMSA’s Purpose Award for Community Engagement is given to companies that distinguish themselves by going above and beyond their competitors and impacting their communities and the planet, according to a news release. “As a devoted advocate of supporting community-based initiatives and programs benefitting children and families in addition to the transportation industry, Fleet Advantage’s Kids Around The Corner Foundation (KATC) is the impulse of the company’s dedication to bringing hope and lasting change to the future generations in the country,” the news release stated. The KATC Foundation was founded to support smaller organizations and communities where their employees and clients live and work — the organizations that typically don’t have access to many funding options. Since 2014, KATC has donated to more than 35 charities. Fleet Advantage also volunteers in a mix of independent and employer-sponsored activities. “Kids Around The Corner believes our responsibility is to give back and foster community involvement, and our entire team at Fleet Advantage is thankful to TMSA for recognizing our efforts with this award,” said Elizabeth Gomez, marketing manager for Fleet Advantage and Committee Chair for Kids Around the Corner. “Just in 2022 alone, KATC helped over 18 organizations with donations, and we look forward to expanding on these numbers and changing more lives in the process this year.”

48 students with trucking industry ties awarded more than $141,000 in TCA scholarships

The Trucker News Staff - June 14, 2023

ALEXANDRIA, Va. — The Truckload Carriers Association (TCA) has announced scholarship recipients for the upcoming 2023-24 academic year. On June 8, TCA Scholarship Fund Chairman and American Central Transport Senior Vice President Bob Kretsinger said that TCA “is thrilled to recognize the hard work and drive of the 2023-2024 class of recipients. I am so grateful for the generous support and outreach of the TCA community who make this amazing TCA member benefit possible. We congratulate each of our 48 recipients and look forward to witnessing their future accomplishments.” TCA President Jim Ward also offered congratulations and words of encouragement to the class of 2023-24 class, saying, “2023 marks the 50th anniversary of the scholarship fund’s creation; the longevity of the program is truly a testament to how strong our truckload community is and the great things we can accomplish when we work together. We are proud to continue to support these students as they fulfill their potential and become the next generation of leaders in the industry. Congratulations to the 2023-24 recipients.” Since the 1970s, the scholarship fund has provided scholarships to students associated with the trucking industry. Students who can apply, and receive the scholarship, must meet several criteria: must be attending a four-year college or university, be in good standing at their college or university, and must be associated with a TCA member company as an employee, independent contractor, or the child, grandchild, or spouse of an employee or independent contractor of a TCA member company. This year, the application process was managed by the Ohio Foundation of Independent Colleges, which established a selection committee to score the applicants. Along with the mandatory criteria mentioned before, the committee also considered the applicant’s GPA, major, extracurricular activities, hours worked and more. For 2023, a total of 48 students received benefits from the scholarship fund, totaling $141,000. Of the 48 students, 10 are high school seniors, seven are college freshmen, 17 are college sophomores and 14 are college juniors. Recipients include: Connor Gates, Prime Inc.: NAIT Scholarship ($6,250) Martina Tolhurst, Bison Transport: John Kaburick Scholarship ($4,500) Mallory Beamer, Dutch Maid Logistics: Kai Norris Scholarship ($3,250) Rajpreet Gill, Bison Transport: Darrel Clark Wilson III Scholarship ($3,250) Parker Litterick, Warren Transport Inc.: Thomas Welby Scholarship ($3,250) Tristan Schelvan, Bison USA Transport: Stoney Reese Stubbs Scholarship ($3,250) Kelsey Fullenkamp, Whiteline Express: Robert Low Scholarship ($3,250) Gurjaan Rai, Bison Transport: Robert D. Penner Scholarship ($3,250) Jocelyn Calderon, Whiteline Express: Thomas R. Schilli Scholarship ($3,250) Nathan Gariepy, Load One: Thomas R. Schilli Scholarship ($3,250) Maxwell Marten, Marten Transport: Keith Tuttle Scholarship ($3,250) Carter Petit, Halvor Lines: Tom Kretsinger Jr. Scholarship($3,250) The following have been awarded $2,725 for the 2023-24 school year: Toby Plattner, Nussbaum Transportation Alexandra Wayne, Brown Trucking Isabella Yust, Contract Freighters Inc. (CFI) Emily Dudaitis, E&V Services Inc. Joshua Short, Cargo Transporters Inc. Speranza Albensi, Bison Transport Kelsey McGaughey, PGT Trucking Benjamin Niznik, Speedway/7-Eleven Courtney Street, Wilson Logistics Katherine Adkins, Mast Trucking Inc. Jay Freeman, Werner Amy Pitzel, Bison Transport Jonathan Ritenour, Werner Enterprises Kaden Buatte, Prime Inc. Robert Callahan, NFI Industries Isabella McDaniel, Buchanan Hauling and Rigging Chloe Smith, Barber Trucking Inc. Vicktoria Adams, Prime Inc. Sophia Boelter, Don Hummer Trucking Catherine Cooper, Boyd Bros. Transportation Madeline Falknor, Fremont Contract Carriers Inc. Karson Macke, Baylor Trucking Brianna Pointer, Prime Inc. Theresa Stephens, Mcleod Software Co. Jack Rogers, Don Hummer Trucking Carson Snow, Crete Carrier Benay Taylor, Prime Inc. Gianna Terrarosa, Global Experience Specialists (GES) Dylan Duffy, Transpro Freight Systems Logan Gardner, Werner Enterprises Haley Price, Fortune Transportation Grace Rittenour, Thomas E. Keller Trucking Samuel Amanual, Kriska Holdings Kelsey DeMillo, Leonard’s Express Annika Waltenberg, Ho Wolding Shaylyn Young, Arlo G. Lott Trucking Inc.

Analysts forecast slight increases in Class 8 retail sales, production volumes in ’23

The Trucker News Staff - June 12, 2023

COLUMBUS, Ind. — Class 8 forecasts, as published in the latest release of the North American Commercial Vehicle OUTLOOK, are for slight year-over-year increases in retail sales and production volumes in 2023, reflecting stronger momentum into Q3. ACT continues to forecast deteriorating sales and build in Q4. “The industry is closing in on this cycle’s downward inflection point as strong vehicle production and sales continue in the face of weak freight creation and the exhaustion of pent-up demand in 2023. Collectively, lower freight rates, shrinking carrier profits, higher equipment and borrowing costs and improved equipment availability put downward pressure on demand overall,” said Kenny Vieth, ACT’s president and senior analyst. Vieth added, “Even though we are closing on this cycle’s tipping point for commercial vehicle demand, we are encouraged by the economy’s resilience as evidence that the economy’s chances of dodging a recession accumulate. While the expectation is for tepid growth in the near term, it is an improvement from torpid. The economy’s ongoing above-expectations performance allows us to modify our US forecast, taking an anticipated recession out of our projections for the economy.” Vieth said that toward the end of 2023, like a tide-race, there are competing forces at work. On one side of the scale, he noted, are building downside pressures, the slow economic expansion, weak freight volumes, rising carrier profit pressures and fading pent-up demand. “Those negatives are currently balanced against healthy carrier balance sheets and supportive pent-up demand at the start of 2023, and the likelihood of a CARB-induced prebuy in California into the end of the year,” Vieth said. “As the force of pent-up demand fades and payback replaces prebuy in 2024, it is worth noting that our expectation for the timing of a downturn in heavy vehicle demand could be a quarter later than our expectations, but it is unlikely to be two quarters later.”

Volvo prepares for autonomous freight corridors in Texas as new office opens in Fort Worth

The Trucker News Staff - June 8, 2023

FORT WORTH, Texas — Volvo Autonomous Solutions (V.A.S.) has opened an office in Texas as the company begins manual operations in preparation for commercial autonomous hub-to-hub transport. According to a company statement, V.A.S. has opened an office in Fort Worth that’s “dedicated to driving activities to set up its first autonomous freight corridors that will run from Dallas Forth Worth to El Paso and from Dallas to Houston.” To prepare for commercial launch, V.A.S. has also started to haul loads with trucks using drivers for key customers like DHL and Uber Freight to test aspects of the transport solution and establish frameworks and procedures for safe and reliable operations. “At Volvo Autonomous Solutions, we believe the path to autonomy at scale is through reducing the friction and complications around ownership and operations for customers,” said Nils Jaeger, president of Volvo Autonomous Solutions. “This is why we have taken the decision to be the single interface to our customers and take full ownership of the elements required for commercial autonomous transport. With the opening of our office in Texas and start of operational activities, we are building the foundations for a transport solution that will change the way we move goods on highways.” Sasko Cuklev, head of on-road solutions at Volvo, said that the company’s ambition through V.A.S. “is to create a new source of industry capacity that will ease some of the burden of the increasing demand for freight while also enabling local drivers to shift into short-haul jobs that will keep them closer to home. This will unlock significant efficiencies in the entire supply chain and benefit everyone in the transportation industry.” The Autonomous Transport Solutions (ATS) offered by V.A.S. includes hardware, software and services required to run autonomous transport operations, a news release stated. On highways, the solution is operated based on a hub-to-hub model where autonomous trucks take on the highway portion of the driving, operating all hours of the day and night between transfer hubs while human drivers complete local operations. To accelerate the development and adoption of autonomous transport solutions, V.A.S. is partnering with others in the industry including DHL and Uber Freight who are part of the V.A.S. key customer program. The program is aimed at shippers, carriers, logistics service providers and freight brokers whom V.A.S. will work with to pilot and commercialize autonomous transport solutions. V.A.S. has also formed a partnership with autonomous trucking company Aurora with the Aurora Driver installed on Volvo’s on-highway truck offerings.

Musket opens diesel exhaust fluid terminal near Boston

The Trucker News Staff - June 8, 2023

HOUSTON — Musket Corp., the trading and logistics arm of the Love’s Family of Companies, recently opened a diesel exhaust fluid (DEF) terminal in Taunton, Massachusetts. This is the company’s 23rd facility in the United States and the first of several new DEF terminals slated to open this year, according to a company statement. The terminal has a dedicated rail spur and 525,000 gallons of storage capacity that will provide year-round access to DEF for all customers in the northeast region, including Love’s Travel Stops. “We’re thrilled to open our first DEF terminal in the New England market,” said Brian Hoover, director of DEF for Musket. “Taunton expands Musket’s DEF footprint providing necessary supply redundancy to support wholesale distributors, retail outlets and commercial truck drivers throughout the region. Musket DEF terminals not only provide reliable supply, but also reduce empty miles in a challenging transportation market.” Musket currently has 23 terminals in 16 states and will open terminals in Theodore, Alabama, and Plymouth, Minnesota, this summer, with plans for additional locations by the end of 2023.

CH Robinson appoints Dave Bozeman to CEO position

The Trucker News Staff - June 6, 2023

EDEN PRAIRIE, Minn. — Dave Bozeman has been named the CEO of C.H. Robinson Worldwide Inc., a company statement announced. The appointment, which also includes a seat on the board of directors, is effective June 26, a news release stated. Scott Anderson, who has been serving as interim CEO since January 2023, will continue in his role until Bozeman joins the company. Anderson will continue to serve as a member of C.H. Robinson’s Board of Directors. “Mr. Bozeman is an accomplished executive, bringing over 30 years of experience at industry-leading companies and iconic brands across supply chains, middle-mile transportation, manufacturing, digital and customer service to C.H. Robinson,” the news release stated. “Mr. Bozeman has developed teams at many complex, forward-thinking organizations involving the management of near-term challenges while at the same time executing a long-term strategic direction. He most recently served as vice president of Ford’s Customer Service Division and vice president of enthusiast vehicles for Ford Blue of Ford Motor Company, where he oversaw the overall business performance for some of Ford’s most notable vehicle brands.” Prior to joining Ford, Bozeman served as vice president at Amazon Transportation Services of Amazon.com, where he led supply chain optimization for customer delivery across Amazon’s global operations. The news release notes that Bozeman “was instrumental in building out and scaling the middle mile global transportation business which included both ground and air as well as over the road and under the roof business operations. In addition, Mr. Bozeman built and launched global transportation businesses covering digital freight shipping, air transport, and small parcel pickup and delivery businesses.” Before Amazon, Bozeman served as senior vice president of Enterprise Systems of Caterpillar, Inc., where he led the global manufacturing for all of Caterpillar’s mining products. “Following a comprehensive and thoughtful search process, we are thrilled to name Dave as CEO of C.H. Robinson,” said Jodee Kozlak, chair of the Board of Directors of C.H. Robinson. “Dave is a seasoned executive who has a strong track record of reinventing complex operating models with industry-wide impact, proven expertise in global supply chain and logistics management through various economic cycles and extensive experience leading high performing teams and cultures to drive results. Dave is the right leader to take C.H. Robinson’s vision forward with his focus on organizational opportunity and enhancing value for our customers and our shareholders by capitalizing on C.H. Robinson’s opportunities as a leading asset-light logistics provider in a rapidly-evolving and increasingly complex supply chain environment.” Bozeman called it an honor to join C.H. Robinson as its new leader. “I look forward to working alongside a strong management team and with talented employees to deliver for our customers and accelerate the next phase of sustained growth and success,” he said. “I am confident that with C.H. Robinson’s superior global services, people and capabilities, we will build on a strong existing foundation and execute on significant growth opportunities to create lasting value for Robinson shareholders, employees and the communities and customers we serve.”

DDC FPO appoints Quetura Hudson to director of client management

The Trucker News Staff - June 6, 2023

EVERGREEN, Colo — Quetura Hudson, a 16-year team member with DDC FPO, is being promoted to director of client management, the company announced in a statement. According to a news release, DDC FPO is “an outsourcing company that dedicates teams of professionals to serve as extensions of transportation and logistics companies.” “We pride ourselves on quality customer care and believe it is the backbone of growth, not just for our company, but for our clients as well,” said Donna Kintop, senior vice president of client experience at DDC FPO. “Promoting from within and giving women the opportunity to apply themselves in leadership roles is also a very strong source of pride for DDC FPO.” According to Kintop, during Hudson’s tenure as an account manager, she “has been instrumental in developing best practices and key processes and mentoring account managers.” “Quetura has been an essential part of DDC FPO’s growth and specifically customer loyalty for the past 16 years,” Kintop added. “As director of the Client Management Team, Quetura can now share her knowledge, expertise and commitment to customer service as she leads the entire team.” DDC FPO’s Client Management Team works with clients during all phases of engagement, the news release stated. “We became experts in an industry, and we set a standard of servicing our clients with innovative methods across a global playing field,” Hudson said. “Effective client management is the glue that holds our relationships with customers together and makes sure our clients are kept up to date with the latest developments and opportunities.” Hudson continued: “As we continue to advance our service and technology-based solutions, making it a priority to uphold consistent quality care throughout the entire customer journey is what ensures an optimal experience for our clients.”

Spot rates see little change over Memorial Day weekend

The Trucker News Staff - June 6, 2023

BOISE, Idaho — Total spot market rates in the Truckstop system were essentially unchanged during the week ended June 2 (week 22), according to the latest Truckstop report. Broker-posted dry van and flatbed spot rates each eased a fraction of a cent while refrigerated spot rates continued to fall modestly after the 29-cent surge during the International Roadcheck inspection event two weeks earlier. The Memorial Day holiday produced sharp drops in both spot volume and truck postings, resulting in essentially no change in the loads-to-trucks ratio. Loads available Total load activity fell 14.1% — the largest drop of the year so far — following a decrease of nearly 8% in the previous week. Volume was almost 41% below the same week last year and about 23% below the five-year average. Load activity declined in all regions except the Northeast, which saw a slight gain. Truck postings fell 13.8%, which also is the largest decrease of the year, and the Market Demand Index – the ratio of loads to trucks – barely budged. Total rates The total broker-posted rate eased just a tenth of a cent after rising just over 1 cent in the prior week. The decrease in the total market rate was buffered in part by the small specialized segment, which saw a healthy increase in rates. The total market rate was almost 22% below the same 2022 week and 0.1% below the five-year average. Although the deficit versus the five-year average is tiny, it is the first negative comparison in total rates versus the average since June 2020. Dry van Dry van spot rates eased two-tenths of a cent after rising nearly 4 cents in the previous week. Rates were more than 19% below the same 2022 week and more than 7% below the five-year average. Dry van loads fell 15.4% after dropping more than 6% in the prior week. Volume was about 37% below the same week last year and about 19% below the five-year average for the week. Loads fell in all regions. Reefer Refrigerated spot rates declined just over 5 cents. Over the past two weeks, refrigerated rates have given back nearly 11 cents of the 29-cent surge during the Roadcheck event in week 20. Refrigerated rates were nearly 14% below the same 2022 week and more than 5% below the five-year average for the week. Refrigerated loads dropped 13.8% after falling 15% during the prior week. Volume was more than 43% below the same week last year and 20% below the five-year average for the week. Loads were up in the Northeast and on the West Coast but down elsewhere. Flatbed Flatbed spot rates eased just three-tenths of a cent after rising nearly 3 cents in the previous week. Rates were about 25% below the same 2022 week but nearly 2% above the five-year average for the week. Flatbed loads fell 13.5% after declining nearly 8% in the previous week. Volume was more than 45% below the same week last year and nearly 30% below the five-year average for the week. Loads rose sharply in the Northeast but were down sharply in all other regions.

ODW Logistics garners industry award for outstanding service

The Trucker News Staff - June 5, 2023

COLUMBUS, Ohio — ODW Logistics, a national third-party (3PL) specializing in integrated logistics solutions, has received the Food Logistics 2023 Top 3PL & Cold Storage Providers award. The award recognizes leading third-party logistics and cold storage providers in the cold food and beverage industry, according to a news release. ODW has access to more than 10,000 temperature-controlled contract carriers, the news release noted. “ODW’s access to temperature-controlled contract carriers, helps in providing a sense of security to our customers when they need to transport products from state to state,” said Jeff Clark, executive vice president at ODW Logistics. “Due to the extensive industry knowledge that our leaders have, we give significant insight into big-box retail compliance standards and provide solutions to aid in supply chain optimization. We’re also able to offer food-grade warehousing, which includes a cold chain of -10°F. It’s for all these reasons that I believe ODW will continue to be an industry leader within this space.” Headquartered in Columbus, Ohio, since 1971, ODW has been providing warehousing, distribution and transportation solutions for hundreds of brands. “ODW has been in the industry for over four decades and we’re committed to serving the various supply chain and logistics needs of our wide-ranging customers,” Clark said. “Food Logistics is the only industry publication that focuses on covering the movement of products through the global cold food supply chain, which is one of our areas of expertise. As a 3PL we prioritize our customer’s supply chain design, contract logistics, and transportation management.”

Anthony Petitte returns to truck parking as COO for FinPark

The Trucker News Staff - June 5, 2023

ORAN, Mo. — Finloc 2000 Inc. announced June 1 that Anthony Petitte has been chosen to head the company’s FinPark division as COO, where he will run all truck parking operations in the U.S. and Canada. FinPark offers a technology application solution to an issue that has plagued the trucking industry for the past three decades — locating and reserving safe, secure parking for big rigs and their drivers, Petitte says. Petitte is no stranger to the truck-parking arena; he co-founded Chicago-based TruckPark in 2016 and served as the company’s CEO until selling it in 2021. After staying on with the purchasing company for several months, Petitte left to work with friends Mustafa Azizi and Matt Tabatabai, CEO and COO, respectively, of Zuum App. During his year with Zuum, Petitte worked as head of partnerships and marketing, securing new business for the company’s digital freight marketplace and TMS. Following the expiration of a noncompete agreement in early may, Petitte was asked to join the FinPark division of Finloc to head up truck parking in Canada and expand operations to the U.S. “FinPark is essentially what I built at TruckPark,” Petitte told The Trucker. “It’s a parking-place application for brokers, carriers, drivers, and shippers to find reserved paid parking in real time, as well as offer their under-utilized spaces to make revenue.” Using TruckPark as a model, Petitte says he plans to build out FinPark as a next-generation parking and storage marketplace. Currently FinPark has locations in the U.S. and Canada, and the team is actively seeking out new sites to add to the network. “Truck parking has been an industry issue for years, and finally more people are working to solve the problem, especially since Congress passed legislation saying every state should provide reserved and secure locations, versus just off-the-road parking,” Petitte said. In addition to helping ensure the safety of drivers and their cargo, providing secure parking can also help motor carriers retain drivers, he noted. “(Carriers) are focusing on their drivers, which are the companies’ core assets, and saying, ‘How can we support you?’” he said, adding that feedback from drivers points to two top issues — detention and parking. Petitte was introduced to the trucking industry by his late uncle, who worked as a Teamsters driver in the 1970s. In later years, he owned a parking facility in the Chicago area, and Petitte helped with marketing. “(Uncle Sammy) opened the door to so many possibilities, friendships, mentorships and opportunities,” he said. “I am eternally grateful and will do all I can to build another company with integrity, focusing on creating the best and most seamless experience for truck drivers.” During his years of working with the freight industry, Petitte says, he has had many mentors and friends. “I am blessed to have made such great friends in this industry — friends who have lifted me up and have been a constant support for years,” he continued. “One of those many friends is JD Redmon (chief revenue officer for vHub), who helped me get this job. He is selfless, charismatic and one of the best transportation guys in the game. Furthermore, I am excited to work jointly with JD and his team as we go to market with vHub and FinPark, respectively.” While Petitte says he has no regrets about selling TruckPark, he is excited about getting back into the arena. “I look forward to winning past and existing partnerships with all of you within my network and beyond. In this next buildout, I will strive to operate a unified reservation platform,” he said. “This market is large enough for everyone to play in — there are no competitors — only like-minded individuals and companies looking to solve a 30-year headache.” Finloc President Sebastien Blouin says he is looking forward to having Petitte on the team. “Finloc feels privileged to add Anthony as a teammate, and also (his) expertise,” Blouin said. “Anthony’s skillset, combined with our team and Finloc’s multi-decade expertise in the transportation industry, (will help to) resolve one of the Top 10 issues … in the trucking industry.”

Reports shows April truck sales up, but deteriorating conditions could signal a ‘rough ride’

Cliff Abbott - June 2, 2023

April 2023 sales of new Class 8 trucks on the U.S. market were the highest since 2006 and represented the second-best April of the century to date, according to data received from Wards Intelligence. Sales for the first four months make 2023 the best first third of the year in the past 17 years. Manufacturers reported sales of 22,741 Class 8 trucks in April — down 8.4% from March’s 24,823 but up a solid 19.4% over April 2022 sales of 19,052. How long the high sales numbers will last is hard to predict, but Kenny Vieth, president and senior analyst at ACT Research thinks conditions will deteriorate later this year. “We’ve spent most of the past year warning about a potential recession. Admittedly, the economy has proven more resilient than initially envisioned,” Vieth said in a statement accompanying ACT’s latest North American Commercial Vehicle OUTLOOK. “That said, we think broader economic conditions are softening, and we reiterate our cautious view, including our forecasts for slowing 2H’23 production rates,” he continued. “We continue to expect a shallow recession to materialize, centered on mid-year.” The OUTLOOK report cites lower freight volumes and rates and higher borrowing costs due to increased interest rates as headwinds to profitability. As profits shrink, carriers buy fewer new trucks. This is already happening, based on preliminary Class 8 order numbers released by ACT. In the North American market, orders for new Class 8 equipment fell by 39% from March orders and by 27% from April 2022 order numbers — a clear sign carriers are more skittish about investing in new equipment to grow their fleets. As recently as November 2022, the backlog of ordered trucks was high enough for 11 months of production, but ACT now expects that backlog to be completely gone by the end of 2023 as new orders continue to dwindle and cancellation rates of existing orders increase. Carriers will continue to order trucks to replenish their fleets as older trucks are removed but fleets aren’t likely to be expanding, given current conditions. If there’s good news, it’s in the used truck market, where wholesale used truck deals increased by 130% in a possible sign that dealers are acquiring more inventory. Compared with March, the average price of a Class 8 used truck fell 6% in April to $68,500, according to ACT’s latest State of the Industry: U.S. Classes 3-8 Used Trucks report. That price is 32% lower than the industry peak reached in April 2022. Used truck prices should continue falling as inventory grows. Unfortunately, lower prices may be offset by the increased cost of credit as interest rates rise. And, with lower freight rates available, the timing to purchase a truck or upgrade an older one is not good. Moving to individual manufacturers, International posted some interesting sales numbers for April. The manufacturer’s sales of 3,046 were down 26.7% from an outstanding March, the largest percentage drop of any of the OEMs. In fact, the month-over-month decline in sales of 1,108 trucks represented over half (53.2%) of the decline of 2,082 experienced by the entire industry. Those numbers are skewed, however, by the excellent March experienced by International, which reported sales of 4,154. Compared with April of last year, however, International showed the largest increase of all the OEMs at 59.4%. Even more impressive is the increase for the first four months of the year — 61.9%, more than twice the increase of the next-closest competitor. International’s share of the U.S. Class 8 market has grown too, from 11.1% as of March 31, 2022, to 12.5% by the end of 2022 to the current 14.2% of Class 8 sales. In April 2022, the company was the fourth-largest seller by volume; this year, it’s the second largest. New leadership and resources since International’s 2021 acquisition by the Traton Group have rejuvenated the company. Freightliner remains the “big dog” among the manufacturers. April sales of 8,580 were down 6.8% from 9,208 in March, but 25.5% higher than April 2022, when the company sold 6,837 Class 8 trucks. The company still sold 39.4% of the Class 8 trucks sold on the U.S. market for the year to date, up 0.5% from 38.9% as of April 2022. Volvo reported sales of 2,549 in April, up 10.2% from March and 5.1% from April of last year. Year to date, the company is 12.8% ahead of where it was last year, even as its share of the market dropped to 9.8% from 11%. Mack sales of 1,526 in April was an 11.1% decline from March but were 6.1% better than April 2022. For the year to date, however, Mack sales have increased 28.3% from the same point last year, and Mack’s share of the market for 2023 has increased slightly to 6.4%. Kenworth sales of 3,191 in April were down 5% from March sales but up 23.3% from April 2022. For the year to date, Kenworth sales have increased 21.1% as its market share dropped from 14.3% to 13.7%. Sibling Peterbilt saw a sales decline in April to 3,318 trucks, down 3.3% from March sales but up 4.6% from April of 2022. Year-to-date sales are up 16.3% at Peterbilt, while the OEM’s market share has dropped from 15% to 13.8% this year. Western Star reported sales of 491 in April, down 19.5% from March’s 610 and down 26.7% from the 670 sold last April. The company’s market share of 3.4% last April fell to 2.5%. In considering the relationship between sales numbers and market share, it’s important to note that sales for all the OEMs — the entire market — increased by 26.5% from April 2022. An individual manufacturer could increase sales but if that increase is smaller than the 26.5% industry average, market share will decline. Tesla reported sales of another 30 battery-electric trucks in April to bring its 2023 total to 105. If any other electric vehicle manufacturers are selling heavy-duty trucks, the numbers are not reflected in the Wards data. Waiting for the coming recession to hit is something like seeing “Road Construction Ahead” signs and wondering how long it will be before we reach the worst of it. On the bright side, the new road on the other side might make for smooth driving.

Factoring helps OOs focus on trucking

Cliff Abbott - June 1, 2023

If you’ve bought a truck and obtained your authority, you are truly a trucking entrepreneur. Who knows — you may have planted the seed for a future mega-carrier. Some of the biggest trucking companies in the business started with just a driver and a single truck. It’s important to understand, however, that your role has greatly expanded beyond that of a driver. Think of the different departments you’ll find within a large carrier. Someone has to find and book loads, of course, and deal with the customers. Someone has to send bills for each load and perform collection activities for those that aren’t paid. Someone has to get the checks from the mailbox (or monitor bank deposits) and match the payments up to the correct loads. Aside from the financials, someone is needed to take care of registration, permits, insurance and compliance with all those regulations. Someone needs to manage all of these things and more — and that someone is now you. Some trucking business owners do a great job of juggling all these different tasks, while others have spouses or other assistants who manage the non-driving parts of the business. Many drivers, however, turn to factors for assistance. At its simplest, factors deal with invoicing and collecting from your customers, keeping a small percentage of the revenue for their services. Most factors pay the carrier as soon as the invoice is turned in, and some even advance a portion of the amount for fuel and other needs. Most factoring businesses, however, offer much more than that. Factors usually offer an option between “recourse” and “non-recourse” services. Recourse services specify that if the factor can’t collect from the customer, the carrier may need to pay back the amount they were paid for that load. Under non-recourse services, the factor assumes all of the risks; the carrier keeps the money even if the customer never pays. Of course, factors charge more for this service. For a small carrier, the biggest benefit of factoring is cash flow. Many customers pay on a “net-30” to “net-90” day cycle, meaning that you’ll need to wait, sometimes for months, for their payment. A small trucking business that has to operate for three months before any cash comes in would have a difficult time staying in business. Factors will ask you to contact them before agreeing to a load so they can check the customer’s background. This usually includes a background check, as well as a check of the customer’s credit record. In many cases, the factor has dealt with the customer before through a different carrier. If the customer fails the background check, the factor will inform the carrier that they won’t factor loads from that customer. As a business owner, you’ll retain the option of dealing with that customer or not, but if you choose to do so you’ll be responsible for the billing and collections. You may also have the choice of not using the factor when working with some customers. For example, if you have a customer that always pays quickly, you may choose to deal directly with that customer and avoid the factoring fees. Not all factors offer this option, however. Some will ask you to agree to use them to factor all your loads. Others allow “spot” factoring, where you can choose which loads to factor. Be sure to ask about the policy when you consider a factor. Many factors offer other services, too. Since they’re already handling cash flow, it only makes sense that they’d be able to handle tax filings and payments, too. Some offer fuel cards, often with a fuel discount for their customers. Other discounts may be available, on things such as tires, oil changes and maintenance work. Expensive repairs like an engine rebuild can sideline a trucking business and, to make matters worse, owners sometimes turn to high-interest credit cards to fund repairs. Others turn to predatory lenders that may even insist on access to the business bank account to withdraw payments. Factors may provide lower-interest solutions that can help you get your business back in operation faster and at far less cost. In addition, some factors offer business education to help you better understand accounting and management duties. Another service offered by some factors is licensing and permitting. They may have people on staff for this or an agreement with another company that provides these services. Your relationship with a factor can be a huge benefit to your business, but it’s a relationship you need to make sure you understand before jumping in. Read the fine print — all of it. Ask questions and, if you aren’t sure about something, ask where to find it in the contract so you are aware of and agree with what it says. Factors can smooth out the cash flow of your business and help you free up time to concentrate on the “meat” of the business — the trucking portion that actually pays the bills. The right factor will help you make sound business decisions and can lend a hand when things don’t go as expected.

New study ranks CSX among ‘America’s Climate Leaders’

The Trucker News Staff - May 31, 2023

JACKSONVILLE, Fla. — CSX Corp. has been recognized by USA TODAY as one of America’s Climate Leaders, ranking among U.S. companies that have achieved the greatest reduction in emissions intensity between 2019 and 2021. “We applaud USA TODAY for bringing attention to the nation’s growing climate concerns and for recognizing the companies that are making a difference by reducing emissions intensity,” said Joe Hinrichs, CSX president and chief executive officer. “As the most fuel-efficient mode of freight transportation on land, railroads can play a significant role in the nation’s climate strategy, and CSX is proud to be the industry leader. We’re committed to continuing to reduce our carbon intensity through sustainable operations and technological innovation.” CSX was also recently included in 2023 S&P Global Sustainability Yearbook, and the company has been part of the Dow Jones North America Sustainability Index for 12 consecutive years, based on its sustainability performance and other factors, a news release noted. “CSX’s greenhouse gas emissions (GHG)reduction goal is among the most aggressive in the transportation industry, targeting 37.3% reduction in GHG intensity by 2030, against a 2014 base year,” according to news release. “Through 2021, the company achieved an emissions intensity reduction of 15.6% from the base year.” Citing unprecedented interest in climate change among U.S. consumers and investors, USA TODAY partnered with Statista, a global marketing and consumer data company, to create America’s Climate Leaders 2023, the news organization’s first such ranking. To create the list, Statista considered companies’ effectiveness in reducing their core emissions intensity, defined as Scope 1 and 2 greenhouse gas emissions in relation to revenue. Several thousand companies with 2021 revenue of at least $50 million were invited to participate, and 2,000 companies were evaluated.

New, commercial truck parking lot opens in West Memphis, Arkansas

The Trucker News Staff - May 31, 2023

LITTLE ROCK, Ark. — One of the most-traveled interstates in the nation — Interstate 40 — has a new 84-space parking lot in the Memphis metropolitan area. The Arkansas Department of Transportation (ARDOT) held a ribbon-cutting ceremony on Tuesday, May 30, near West Memphis, Arkansas, to celebrate the new facility. ARDOT estimates that more than 20,000 commercial trucks pass through the area on a daily basis. In 2013, Arkansas’s trucking industry lobbied for a 15% increase in their own registration fees, in part to fund the Arkansas Commercial Truck Safety and Education Program. This program has afforded projects like the West Memphis parking expansion, according to an Arkansas Trucking Association news release. “This expansion is the fruit of more than a decade of labor by Arkansas’s trucking industry,” said Arkansas Trucking Association President Shannon Newton. “A parking lot might not seem like an exciting enhancement to our state’s highway system, but for the 87% of Arkansas communities that rely exclusively on trucks to deliver milk to their grocery stores, medicine to their pharmacies and furniture to their homes, this is a critical piece of infrastructure.” According to the American Transportation Research Institute, for the last three years, truck drivers have indicated that the parking shortage is their number one concern. The U.S. Department of Transportation indicates that 98% of truck drivers regularly experience difficulties finding safe parking. For the roughly 3.5 million truck drivers in the U.S., there are only about 313,000 trucking spaces. Truck drivers give up an average of 56 minutes of available drive time per day parking early rather than risking not being able to find parking down the road. The time spent looking for available truck parking costs the average driver about $5,500 annually in lost compensation, according to data from the American Trucking Associations. “The issue of safe and available truck parking touches every issue that is important to our industry. It impacts our commercial driver’s safety and well-being. It impacts how efficiently our industry can deliver and whether it can grow,” Newton said. “Not only is it a concern to current drivers, but it also negatively impacts our ability to recruit additional individuals into this industry, and it constrains our efficiency while charged with moving 92% of the manufactured goods in this state.” The need for additional parking in West Memphis was amplified in 2021 with the closure of the I-40 bridge in Memphis. “The I-40 bridge is a vital connector of east and west coast commerce and the three-month closure had a significant national impact on trade, trucking and costs in the supply chain,” Newton said. Congestion in the area was so severe that the Interstate 55 at I-40 connection ranked No. 42 on the American Transportation Research Institute’s list of top 100 worst bottlenecks in the country for 2022, breaching the top 100 for the first time. “We recognize the critical need to provide safe, reliable parking for the professional drivers who travel our roads every day to deliver life’s essentials and are happy to celebrate the opening of the truck parking facility in West Memphis,” Newton said. “Thank you to ARDOT for overseeing this project, the ACTSEP committee for prioritizing truck parking and to the entire trucking industry for helping fund it.”

Daimler Truck to partner with Toyota on climate and self-driving tech

The Associated Press - May 30, 2023

TOYKO — German truck maker Daimler and Japan’s top automaker Toyota said Tuesday they will work together on new technologies, including using hydrogen fuel, to help fight climate change. The companies said Mitsubishi Fuso Truck and Bus Corp., whose top stakeholder is Daimler Truck, and Hino Motors, the truck maker in the Toyota group, will merge. Daimler Truck and Toyota Motor Corp. will equally invest in the holding company of the Mitsubishi-Hino merger, they said without giving a dollar amount for the deal. The companies plan to cooperate in reducing carbon emissions and developing other technologies such as autonomous driving, net-connected services and electric vehicles. “This collaboration among our four companies is a partnership for creating the future of commercial vehicles in Japan and the future of a ‘mobility society,’ said Toyota Motor Corp. Chief Executive Koji Sato. The two truck companies will work on commercial vehicle development, procurement and production to become globally competitive, the executives said. “We at Daimler Truck are very proud of our products, because trucks and buses keep the world moving. And soon they will even do so with zero emissions,” said Daimler Truck Chief Executive Martin Daum. “Today’s announcement is a crucial step in making that future work economically and in leading sustainable transportation.” Daimler Trucks has its North American headquarters in Portland, where it employs about 2,600 in corporate roles, research and engineering, and production of Western Star trucks. Automakers are rushing to keep up with the global shift toward less polluting vehicles and to help in other ways to combat climate change. Commercial vehicles like trucks and buses are major contributors to auto emissions. In some cases rivals are joining forces to gain a a competitive edge and cut costs through “economies of scale” of by sharing knowledge and resources. “It is hard to go at it alone. Working together is crucial,” Sato said, Fuel cells power Toyota’s buses in Japan but its strength has been in hybrids, which have both electric motors like EVs and gasoline engines. Consumer acceptance of battery powered EVs has come faster than expected, Toyota officials say, and the company is hard at work on rolling out EVs in various markets. Details of the merger, including shareholding ratios, the company name and its structure will be worked out over the next 18 months, the companies said. They aim to sign a definitive agreement by early next year and close the transaction by the end of 2024. The deal still needs shareholders’ and regulatory approval. The deal is a chance for a fresh start at Hino, chief executive Satoshi Ogiso said, after the company’s image was marred by its disclosure last year that it had systematically falsified emissions data beginning as early as 2003. “We will unite our aspirations to ‘support mobility and contribute to society’ and hand in hand accelerate advanced technology development to overcome the increasingly fierce global competition,” he said.

Used Class 8 tractor retail sales show 23% drop in April

The Trucker News Staff - May 30, 2023

COLUMBUS, Ind. — According to the latest State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research, used Class 8 retail volumes (same dealer sales) declined 23% month-over-month in April. Average mileage declined by 1%, with average price down 8% and age up 3%. Longer term, average volumes, price, and miles were lower, with age flat year-over-ear. “Same dealer Class 8 retail truck sales slowed in April, pulling back 23% from March. While sales normally decelerate in April, the decrease was greater than the expected 8-10%,” said Steve Tam, vice president at ACT Research. “With inventory on the rise, and more importantly, not a limiting factor for sales, the logical conclusion is that demand is softening. This is a plausible explanation, especially given waning economic and freight conditions.” Examining each of the channels individually will shed light on how other indicators are faring, Tam noted. “Near-term channel results reveal the usual pullback from the quarter-end spike in auction volumes,” he said. “After spiking 93% month-over-month in March, auction activity shrank 45% month-over-month in April. Wholesale transactions improved, jumping 72% month-over-month. Combined, the total market fell 28% m/m in April.” As the year progresses, the year-to-date scenario also continues to diverge from last year, according to ACT. “The overall market extended its lead to 5% year-to-date,” Tam said. “Despite the early lead, we believe that truckers’ appetites for used equipment will be curbed as freight volumes continue to contract. Our best estimate suggests that inventory continues to increase, supporting buyers working to refresh their used truck fleets.”

Analysts agree trucking conditions, rates are bottoming, but when will the uptick start?

Cliff Abbott - May 30, 2023

The freight situation isn’t getting any better, according to industry experts. Most analysts reported a decline in April freight volumes from March. One contributor to the drop might be the calendar itself: March had three more business days than April, and March was also the final month in the quarter —a time when shippers like to move inventory to get it off the books. However, the calendar can’t explain the year-over-year declines from April 2022. According to a May 10, 2023, release from DAT Freight and Analytics, dry van freight declined 15.5% from March and 12.3% from April 2022. Temperature-controlled freight dropped further, by 16.3% from March and 12.5% from April 2022. Flatbed freight fell 13.7% but was actually 3.5% higher than last April (flatbed freight would be impacted more by government infrastructure initiatives than other freight types). The DAT report claimed that dry van and temperature-controlled freight hit their lowest levels since February 2021, a month when a polar vortex brought frigid temperatures and severe winter weather, with a marked disruption to freight movement. “May will be pivotal for shippers, brokers and carriers,” said Ken Adamo, DAT’s chief of analytics. “After a challenging first four months of the year, we expect to see the effects of seasonality on freight volumes and rates. The question is how sustainable those effects will be.” In the same report, DAT indicated the load-to-truck ratios on its load board were down for all three trailer categories. When fewer loads are posted for each truck, there’s more competition for those loads and rates are pressed downward. As a result, all three categories experienced lower rates, with average dry van spot rates falling 10 cents below March and 71 cents per mile from April 2022 rates. Temperature-controlled freight showed similar reductions. Flatbed spot rates fell 4 cents and were 70 cents per mile lower than in April 2022. Adamo pointed out that, for rates to rise, two things are needed — fewer trucks and more freight. The fewer trucks part of the equation is beginning to happen as carriers reduce truck orders and some close their doors. More freight could be available as construction season ramps up and produce harvesting begins, but inflation and higher interest rates could continue to dampen the market. A May 16 release of ACT Research’s Freight Forecast, U.S. Rate and Volume OUTLOOK report addressed carrier closings. “Interstate operating authorities are contracting at a record rate, with about 11,000 net revocations since last October, including about 1,600 net revocations in April,” said Tim Denoyer, ACT vice president and senior analyst. “This is beginning to tighten capacity, which will also help spot rates find the bottom and begin to rise.” Denoyer noted that grants of new authority and reinstatements of carriers whose authority lapsed due to insurance cancellations and other factors were also higher than usual. The overall number of carriers, however, is declining. Another factor that impacts truck numbers is the number of drivers employed. “Long-distance trucking employment is also contracting, as long-haul trucking jobs declined by 8,700 jobs in Q1’23, or 1%,” Denoyer said. “While still up 3% year-over-year in that latest March data point, the series will be down on a year-over-year basis by June on its current level. Since trends in employment follow trends in freight rates, long-haul jobs are set to decline this year.” In another ACT release dealing with Class 8 truck production, ACT President and Senior Analyst Kenny Vieth addressed the predicted economic recession. “We continue to expect a shallow recession to materialize, centered on mid-year,” Vieth said. David Spencer, Vice President of Market Intelligence for Arrive Logistics, speaking on the recent Bureau of Labor Statistics report showing an increase in trucking jobs from April 2022, said, “Continued job growth in the trucking sector has continued to defy expectations given the declining rate environment. The growth is likely driven by a combination of owner operator capacity having stuck it out longer than expected on their own and now finally making the shift to company jobs, as well as seeing growing truckload demand, such as non-single family housing construction and oil and gas drilling.” The Cass Freight Index for Shipments, which measures freight levels in multiple modes of transportation, fell by 1% from March and by 2.4% from April 2022. The Cass index for freight expenditures fell much further, as record high freight rates continued their downward trajectory. The Index showed a 2.1% decline from March expenditures and a 14% drop from April 2022 numbers. The Cass release, however, seems bullish on freight availability and rates in the coming months. Although the firm reserves forecast prediction numbers for its paid subscribers, the release included the comment, “… after a long soft patch, we see the U.S. freight transportation industry on the verge of a new cycle as we begin to transition from the bottoming phase into the early phase of the freight cycle in the months to come.” The “cycle” mentioned is the Truckload Cycle, or Capacity Cycle, that the trucking industry invariably follows. The premise is simple: When carriers are making money, they buy trucks. That’s because they want to take advantage of high freight rates by hauling as much as they can. But as the number of available trucks increases, so does competition for available loads, meaning that shippers don’t have to pay as much. Rates fall, and they continue falling until enough trucks leave the market to balance again. Trucks — and drivers — are leaving the market and rates are, hopefully, at their lowest point. A recession, if one occurs, won’t help. At some point, freight levels will rise, and rates will respond by rising, too … and carriers will buy more trucks. Depending on who is pontificating, that point is somewhere between now and six to eight months from today. Until then, truckers will do well to keep expenses to a minimum and be selective on the loads they haul.

Understanding freight rates, fuel surcharges can maximize earning potential

Cliff Abbott - May 28, 2023

If there is anything that owners of small trucking businesses will never be completely happy about, it’s freight rates — unless, of course, it’s fuel prices. Even when freight spot rates were reaching record highs in early 2022, some owner-operators were still complaining about “bad” rates on social media outlets. The reality is that freight rates and fuel prices fluctuate, and successful trucking businesses adapt their operations to remain profitable. Those that don’t adapt generally don’t stay in business. Freight rates are broken down into “spot” rates, which are offered on the open market as loads become available, and “contract” rates that are guaranteed in agreements between carriers and customers. Contract rates can protect both parties against fluctuations in the market, but they can also obligate the parties to rates that could become unfavorable if the market changes. Using data received from DAT Freight and Analytics, derived from actual load transactions on the DAT load board, and from the U.S. Energy Information Administration, The Trucker took a look at the last 20 years of rates and fuel costs. There’s no doubt that 2022 was indeed a prosperous time for trucking. Spot rates for dry van freight reached their highest point in January 2022 at $2.70 per mile, and contract rates hit their high point the following month at $2.62. The fuel surcharge added to the rate per mile, however, reached its highest mark of 75 cents per mile (cpm) in June 2022. By then, spot rates had fallen by 77 cpm to $1.93. Just as truckers were feeling the pinch of lower rates, average fuel prices spiked at $5.81 per gallon nationally and $6.92 in California. While carriers took the hit on spot rates, contract rates in June 2022 remained higher at $2.48 per mile, down just 14 cents from their peak. Carriers that hauled larger percentages of contracted freight weren’t hit as hard as those who relied on the spot freight market. That’s because contract rates tend to follow spot rates, but they lag three to six months behind as carriers and shippers identify trends and renegotiate contracts. All of this underscores the importance of making sure to consider fuel surcharges when considering posted loads. Contracts for rates often contain fuel surcharge addenda, so the carrier is assured of fuel surcharges on each load. Posted spot rates may build in fuel surcharges, while others may pay them separately. It’s always a good idea to make sure of the amount you’ll receive, including surcharge. A year after attaining the high point in January 2022, dry van rates had fallen to $1.83 per mile and had dropped to $1.67 by March. Contract rates fell too, but only to $2.26 per mile. Fuel surcharges also fell, reaching an average of 49 cents by March 2023. That’s commensurate with national average fuel prices reported by the Energy Information Administration (EIA), which were $3.92 in the same month. Rates for temperature-controlled freight followed a similar trajectory, but the timing was a bit different for flatbed freight. Flatbed spot rates hit their highest point of $2.76 per mile in June 2021, seven months earlier than dry van and refrigerated. It helps to understand the trucking segment in which you work. Flatbed rates, for example, often climb as construction season begins, and also after hurricanes or other weather events cause damage that must be repaired. Refrigerated truckers might learn the various harvesting schedules in different parts of the country, or locations where foreign produce arrives in the U.S. Some research and some conversations with other drivers could result in significant revenue increases. Understanding freight lanes can make a difference, too. Before accepting that great rate to Miami, for example, it’s best to see what loads coming out of Miami are paying. Online load boards, like the one operated by DAT, make it easy to do so. The most profitable carriers plan several loads in advance. The EIA predicts that fuel prices won’t change much for the rest of 2023 — and will actually decline in 2024 — but it’s important to note that the oil market can quickly be impacted by weather events, military conflict and other factors. No projection can be 100% accurate. Fuel surcharges fluctuate with average pump prices, of course, but there’s another factor used to calculate them — the fleet average miles per gallon (mpg). Nationally, the average for Class 8 trucks is about 6.25 mpg; that’s the number typically used for calculation of fuel surcharge. What really matters is the mpg of the truck you operate. That’s what determines how much the fuel surcharge helps you cover the cost of fuel. For example, the national average fuel surcharge reported by DAT for March 2023 was 49 cpm. If your truck achieves the national average mpg of 6.25, you’ll earn $3.06 for each gallon of fuel you burn (6.25 multiplied by 0.49). Subtract that from the average fuel price on March 20 of $4.18 and diesel cost you $1.12 per gallon (4.18 minus 3.06). If your truck delivers a higher 7.25 mpg, the surcharge you receive for each gallon burned is $3.55. That lowers your out-of-pocket price to 63 cents per gallon. If you can get your fuel mileage to 8.5 mpg, the surcharge would jump to $4.17, and your out-of-pocket fuel cost would drop to just a penny per gallon. On the other hand, if your truck gets only 5 mpg, you’ll earn $2.45 in fuel surcharges, bringing your out-of-pocket cost to $1.73 per gallon. Considering that you may purchase 15,000 to 20,000 gallons of diesel per year, every tenth of an mpg you can increase your fuel mileage will, calculated at the March surcharge of 49 cpm add another $750 to your end-of-year profit. It helps to view each truck as a tool you use to earn income. Fleet trucks purchased by large carriers are typically equipped for the best mileage possible while maintaining durability and driver comfort. Owner-operators sometimes prefer trucks with more features and accessories, often at the cost of fuel mileage. Make your own decisions, with the understanding that some choices may cost you once for purchase and again in fuel prices because of reduced mpg. The better you understand your business and your market, the better your chances of remaining profitable during even the worst of trucking times.

Trucking industry on alert as double brokering rates rise

The Trucker News Staff - May 26, 2023

BOISE, Idaho — Scams are on the rise worldwide. From credit card skimmers to identity theft, everyone a person turns there can lurk bad people who want nothing more than to get their hands on your money. The trucking industry isn’t immune. In fact, it’s a prime target for thieves. Double brokering scams in the freight world can have dire consequences for brokers, carriers and shippers, wreaking havoc on businesses’ credibility and reputations. This scheme began when shippers started using freight brokers to book carriers to move freight and is now costing the freight transportation industry over $100 million annually, according to Truckstop. “Due to current market volatility, not only is the freight industry seeing an increase in double-brokering, but double-brokering schemes are much more sophisticated and organized, resulting in widespread fraud,” said Truckstop Chief Product Offiver Julia Laurin. “There are measures you can take to protect yourself and your business, identify suspicious activity, and prevent double brokering, whether you’re a carrier, broker or shipper.” What is double brokering? Double brokering is the unauthorized transfer of a load from one freight broker to another without the knowledge or consent of the shipper. It can be a result of negligence or poor communication, but in most cases, it’s an act of malicious fraud. Bad actors execute double brokering in an attempt to make easy money, resulting in financial loss for the victimized party or company. In a legitimate shipper-broker situation, the broker typically assigns a load to a carrier and that carrier completes the haul according to agreed-upon terms. If for some reason the load is transferred to another broker or carrier, the original shipper is informed and in agreement with the transfer terms. Double brokering occurs when the shipper is kept unaware that terms and parties have changed. Either a carrier or a broker can commit double brokering by making the following arrangements without shipper consent: A carrier accepts a load from a broker and transfers it to another carrier. When a carrier commits to more hauls than they can move, this can be a shortcut to getting freight delivered on time. This act is illegal without proper notice and shipper authorization and can result in financial loss and imprisonment. A broker gives a load to another broker. Similarly, brokers who take on too much freight might pass some on to another broker who can accommodate it. They illegally transfer the freight to another entity at a lower rate and then pocket the difference. Is double brokering illegal? Double brokering is illegal when it’s an intentional act to prey on unsuspecting trucking companies, carriers or brokers and criminal intent is at play. While double brokering violates many state and federal laws, it should not be confused with the legal practice of co-brokering. Double brokering involves an illegal transfer of a contract to a broker or carrier without the knowledge of the shipper. It represents a breach of contract between parties and results in financial loss. Co-brokering involves multiple brokers and carriers working legally with the original shipper to transport a load. Payment for the completed haul is divided among the parties according to agreed-upon contract terms. Co-brokering can help brokers work together to cover loads. The risks of double brokering When double-brokering occurs, the original broker of the freight no longer knows who is handling their customer’s cargo but is still liable for its transportation and delivery. This is especially risky because the “new” carrier may not be qualified to haul the load or have the required permits or insurance. And the carrier that delivers the freight is at risk of being left unpaid by the party who facilitated the fraud. They can also unknowingly face legal consequences, be denied an insurance claim, or be held liable in the event of an accident or lost or damaged cargo. Double brokering: five tips to avoid scams Due diligence is critical when entrusting freight to a broker or carrier. To avoid the destructive scam of double brokering, follow these tips: Work with vetted carriers and brokers. Ask the potential partner how they source carriers to cover their loads, the processes for vetting carriers, and how they avoid double-brokering. Take steps to verify broker and carrier history and their time in business. Use a trusted load board. Not all load boards are created equally. Look for one that vets and approves carriers and brokers prior to posting or handling loads and has increased security measures in place. The Truckstop Load Board has an entire team dedicated to denying access to fraudulent parties and vetting every carrier and broker. Find tools to automate your processes. Carrier onboarding and monitoring tools, like RMIS, help you reduce fraud and compliance vulnerability. Other transportation software helps you streamline your work and avoid the potential for human error, lowering the risk of costly mistakes. Read contracts carefully and verify documents. Many agreements address double-brokering head-on. Check the language thoroughly and make sure all compliance documents, insurance certificates, and required licenses are current and valid. Don’t hesitate to stop the transaction. If something seems off, trust your intuition. Ask questions, do your due diligence, and take extra precautions. The shipper will undoubtedly appreciate the effort you took to protect their freight instead of taking reckless and unnecessary risks. Double brokering is rampant in the transportation industry. But equipped with the right tools, you can go the extra mile to protect your business and your reputation against freight fraud and malicious intent.

Arkansas Trucking Association elects new directors to board

The Trucker News Staff - May 26, 2023

LITTLE ROCK, Ark. — The Arkansas Trucking Association’s Board of Directors has approved changes to the board. Ryan McDaniel, vice president of fleet operations for Walmart Transportation LLC, will replace outgoing Director Jeff Hammonds, Walmart Transportation’s vice president of logistics, who has announced his retirement, according to a news release. McDaniel has been with the company for 23 years, working both domestic U.S. and international operations. In his current role, he is responsible for domestic transportation in the western division of the U.S. John Pierron, senior vice president at McGriff, will serve in one of the board’s two allied positions for representatives of companies that provide services or products to the trucking industry. Pierron will replace Aon’s Rob Kibbe, who served a two-year term on the board. Pierron is a returning director and previously served between 2007–09, representing Regions Insurance. Jeff Loggins, president of Jonesboro-based Loggins Logistics, will continue to serve as chairman for 2023–24. “Twenty-one leaders make up the Arkansas Trucking Association Board of Directors. These executives represent a diverse group — from a university to the world’s largest retailer to small business owners,” ATA President Shannon Newton said. “But together, they set policy on political, governmental and business issues for an organization whose member companies collectively employ more than 40,000 people in transportation and logistics.”