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Truck freight volume continues to contract nationwide, new US Bank report shows

The Trucker News Staff - May 1, 2023

MINNEAPOLIS — For the fourth quarter in a row, freight volume has contracted on an annual basis, with freight shipments via truck declining 6.1% year-over-year in the first quarter of 2023. This is according to the latest U.S. Bank Freight Payment Index. The drop was most intense in the Southeast, West and Northeast regions, where volume fell 16.1%, 14.1% and 13.8%, respectively, according to the index. Shipments fell just 2.4% year-over-year in the Midwest, but the region has experienced contracting volume for 12 straight quarters. Meanwhile, shipments in the Southwest region increased 14%, the region’s largest year-over-year increase since early 2018. “This quarter was a prime example of how important it is to examine regional data when assessing truck freight shipments in the U.S.,” said Bobby Holland, director of freight data solutions at U.S. Bank. “Boosted by growing truck-transported trade with Mexico and increased activity at the Port of Houston, truck freight activity in the Southwest region is markedly different than what we’re seeing in other regions.” Nationwide, spending on truck freight fell just 0.3% year-over-year and was driven by an 8% year-over-year spending drop in the Midwest, according to the index. Spending rose in all other regions, including by 16.7% annually in the Southwest and 7.8% in the Southeast. “It’s clear that capacity is not uniform across the country,” said Bob Costello, senior vice president and chief economist at the American Trucking Associations. “The spending data we’re seeing in the South is more evidence that there is real trucking supply tightness there, while the Midwest is experiencing the opposite.” Regional Data West Shipments Linked quarter: -2.8%. Year over year: -14.1%. Spending Linked quarter: 6.9%. Year over year: 2.8%. Shipments declined in the West on a quarterly basis for the fourth consecutive quarter. Low seaport volumes and a significant contraction in housing starts appear to be impacting truck freight volumes in the region. Southwest Shipments Linked quarter: 5.0%. Year over year: 14.0%. Spending Third quarter: 5.7%. Year over year: 16.7%. Continuing to be the top region for truck freight, the Southwest experienced its eighth straight quarter of year-over-year volume and spending increases. Midwest Shipments Linked quarter: 1.3%. Year over year: -2.4%. Spending Linked quarter: -5.3%. Year over year: -8.0%. The region continues to be the weakest overall, notching its 12th-straight year-over-year contraction in volume. There appears to be ample truck capacity in the Midwest, which was the only region to have a drop in spending. Northeast Shipments Linked quarter: -4.8%. Year over year: -13.8%. Spending Linked quarter: 2.2%. Year over year: 2.0%. This was the third-straight year-over-year decline in volume in the region and the largest drop since Q1 2021. Spending increased even as diesel fuel prices fell, suggesting marginally constrained capacity in the area. Southeast Shipments Linked quarter: -10.1%. Year over year: -16.1%. Spending Linked quarter: 1.8%. Year over year: 7.8%. The Southeast had the largest annual decline among all regions, with the 16.1% drop the largest on record for the region. Similar to the West, new housing starts and declining seaport activity appear to be impacting truck freight volume in the Southeast.

With a variety of trailer types, there are many driving jobs to explore

Cliff Abbott - May 1, 2023

If you own a truck — or plan to buy one — the decision of what to do with it should be near the top of your list. Details such as what kind of freight you’ll haul, in which areas you want to run and whether you’ll lease your truck to a carrier or go out on your own can make a huge difference in the success of your trucking business. While it’s true that many drivers stay with the trailer type they originally trained with, others want to experience some of the variety that trucking offers. Some are curious about what it would be like to pull a trailer that’s different from the one currently behind their cab. Trucking offers a huge variety of options. A change in trailer types often means the non-driving tasks are different, the hours and runs are different, and even driver pay and the frequency of home time can be different. And for the owner-operator, the compensation can be very different. Dry van (or “box”) trailers are the most common and offer many opportunities for a truck owner. Owners can find a variety of work, from local and regional routes to coast-to-coast runs. Local work usually offers daily time at home, but the pay isn’t usually as good. Some drivers prefer shorter runs because they stay within a preferred geographic area, often offering more time at home than long runs. Others like the longer runs because they can rack up the miles and spend less time loading and unloading. Long runs often result in less home time, but owners who can lock down regular runs and return hauls can often have regular, predictable home time. Dry van trucking often includes dock time and even some driver labor, including building or breaking pallets, shrink wrapping, counting and even hand loading or unloading. It all depends on the customer, and drivers quickly form opinions, good or bad, about each location. Refrigerated trailers are, for the most part, dry van trailers with temperature-control equipment attached. Most have aluminum floors rather than wood; these aluminum floors have tracks that allow water from condensation to run off without soaking cargo. Since refrigerated trailers can also haul dry van freight, some drivers prefer them. Hauling refrigerated freight requires diligence on the driver’s part to make sure the temperature remains in the range specified by the customer. Some loads require that the trailer be pre-chilled, and some customers demand the trailer be washed out before loading. Wait time at some warehouse locations can be long, and drivers are often asked to handle at least some of the freight. Some drivers enjoy the physical activity and the extra pay that sometimes comes with it, while others hate waiting and performing labor they think should be the responsibility of the facility. Hauling flatbed offers a change some drivers like. Since flatbed freight is usually loaded by forklift or crane, driver labor usually isn’t involved in the process. Some drivers prefer hauling equipment or machinery and some like pulling step decks, drop decks or even RGN (reticulated gooseneck), or “lowboy,” trailers. Securing and tarping the load involves labor, and drivers often prefer freight that doesn’t need tarping. Trailers with side kits and tarp roofs (Conestoga wagons) and retractable tarps can make life easier — but they can also create work. While flatbed drivers avoid most dock delays, they sometimes need to wait for a forklift or crane operator. Flatbed generally pays better than dry van but can be more susceptible to seasonal conditions and building slumps. There’s an investment in the equipment needed to secure and protect freight, too. Depending on the freight hauled, chains, straps, binders, winches, tarps and more may be needed. Some truck owners turn to tank trailers for a different sort of job. Tankers come in both wet (liquid) and dry (dry bulk) configurations. Loading and unloading is often a matter of opening a hatch or hooking up a hose and pulling a lever. Some loads require a pump to unload, and some products are heated. Many tanker loads require some special handling for hazardous materials or food-grade products. Pneumatic tankers that haul dry bulk products can be noisy and dusty to unload. Instead of unloading at a dock, tanker drivers often must find connections to hook up the hoses. While dry van, refrigerated and flatbed trailers can haul a variety of freight, tankers are often restricted to certain types of cargo. A trailer used for gasoline, for example, can’t pick up a load of orange juice next. Food-grade tankers are generally prohibited from hauling non-food products and, in some cases, are dedicated to a specific product for the life of the trailer. Chemical trailers require special care to avoid loading a substance that could have a violent reaction to residue left in the trailer from the previous load. Some tankers are thoroughly washed out after every load, some when the product is changed and some are only washed out when maintenance is needed. Drivers need to know where to get trailers washed, who pays for the wash and if mileage to and from wash locations is covered. Driving with a tank trailer can be challenging, too. They tend to have a high center of gravity and can be dangerous in turns and curves. Liquids can slosh from side to side or surge from front to back. The compensation can be excellent, however, and some drivers quickly take to the type of work. Other types of trucking involve hauling cars, boats or livestock; each has its own pros and cons. There are many specialty trailers in trucking, and it seems someone is always adapting a trailer to do something new. If you’re looking for the right fit for you and your truck, talk to drivers of different trailer types, and do some research. You just might find the trucking job you’ve been dreaming about.

Career awareness an important first step for aspiring drivers

Kris Rutherford - April 28, 2023

In 2017, Jim Babson recognized a trend in career development. “I started talking to people about how they got their jobs,” he said. “And I saw so many that were working in areas they didn’t necessarily train for.” He recognized people with college degrees who may have worked in the area they graduated for a few months or years; then they completely changed direction. And he saw what was lacking. “Career awareness,” Babson said. “People are entering college majors or training programs without any real sense of what the career is about.” This problem led Babson to create his own business — developing short videos about different careers. The business hit the ground as USCareersOnline.com (USCO). “We have videos on various careers that provide a short, five to six-minute introduction to fields people may not have considered exploring before,” Babson said. One of the career fields USCO has recently explored is truck driving. USCO joined forces with Schneider Trucking and Caldwell Community College and Technical Institute (CCCTI) in North Carolina to produce a career awareness video about just one of many careers of choice in the trucking industry — driving. The video production had four goals. “First, we wanted to simply provide information to those exploring careers,” Babson said. “It was also intended to build the workforce, serve as a recruiting tool for Schneider, and help CCCTI attract new students.” CCCTI has been operating a truck driving program since 1990. The first of its type in North Carolina, the school has expanded its offerings to eight other campuses in the state’s community college system. Scott Hartley is the director of truck driver training at CCCTI. “We’ve been connected with Schneider Trucking for over 20 years,” Hartley said. “We find that whichever campus we work with, Schneider has jobs available and is recruiting.” What’s more, Hartley added, CCCTI can train drivers for all types of trucks. “Interstate driving, dedicated runs, driving out of ports, owner-operators — we have placed students in careers in many areas. We have even had success placing students under 21 with intrastate companies or driving cement and dump trucks.” One thing that surprises Hartley is the talent he sees in the 18- to 20-year-old students. “When I was on the road, I was a staunch advocate for keeping young, inexperienced drivers in a place where they could learn the trade,” he said. Since becoming an instructor, he’s seen that the rule may be a bit restrictive. Hartley says he has had some teenage students excel in the training program while students in their 50s struggle. He believes there needs to be an increased focus on younger drivers. “More simulators would help with training,” he said. As far as the video project with USCO is concerned, Hartley says it is a great tool for CCCTI and the other campuses where the truck driving program operates. “It is a great marketing tool,” Hartley said. CCCTI has the video posted on its website and also advertises its availability on YouTube and USCO. And the video doesn’t just cater to male drivers. At least one female student tells her story and how she became interested in the trucking business. “Career awareness is all about telling stories,” Jim Babson said. Each of Babson’s company’s videos includes several professionals or students who tell why they got into or are training for a career field. For Schneider, the involvement in the video was an extension of their regular recruitment. One of Schneider’s ambassadors, Lemine Dia, appears in the production and offers his thoughts about the benefits of choosing a career as a truck driver. “You are your own boss,” Dia said. “You’re the captain of your ship. Make this the best decision of your life. Becoming a truck driver was the best thing I could have ever done in my life.”

BlueGrace Logistics names Carly Bly senior director of carrier relations

The Trucker News Staff - April 28, 2023

TAMPA, Fla. — BlueGrace Logistics, one of the largest Third-Party Logistics (3PL) providers in North America, has announced the hiring of logistics veteran Carly Bly to a new company role, senior director of carrier relations. “As a 3PL, the relationships we build with our carriers are vital to the success of our shippers,” said Adam Blankenship, chief operating officer at BlueGrace Logistics. “Making connections and responsiveness to new opportunities makes professionals like Carly indispensable to the continued growth of our organization.” According to a news release, Bly’s role “brings strategic innovation to how BlueGrace manages, cultivates and optimizes LTL carrier relationships and networks by defining and establishing LTL standard procedures to promote both continuity and growth in 3PL and Managed Logistics sales and operations.” Bly began her logistics career in freight forwarding with Expeditors International as part of their Import Customs Brokerage based in Tampa. She moved to Coyote Logistics in Chicago as part of the Intermodal Pricing team and then transitioned into less-than-load (LTL) operations and pricing as the LTL Pricing and Analytics Manager. Following that role, she managed BlueGrace’s portfolio as a Strategic Account Manager at YRC Worldwide (now Yellow) in the 3PL channel. Most recently, she worked at Kenco Logistics for nearly four years as the senior manager of customer development with a focus on LTL.

Pay, equipment quality remain top driver concerns, according to new recruiting, retention report

The Trucker News Staff - April 28, 2023

BRENTWOOD, Tenn. — A new report by two driver recruitment and retention agencies notes that compensation continues to be a driving force in driver turnover across the nation, while equipment quality ranks as a top concern as well. Conversion Interactive Agency and People. Data. Analytics. (PDA) have released their Q1 2023 Driver Recruiting & Retention Data Download Report, for which they collected and analyzed data throughout the quarter to create an extensive overview of trends and data to help carriers recruit and retain drivers. “Competition for drivers remained high in Q1 of 2023 even as the jobs market cooled slightly with the number of open driver positions declining in response to a slowing freight market,” said Kelley Walkup, CEO and president of Conversion Interactive Agency. “Fleets who are investing in comprehensive marketing throughout the entire driver lead funnel are reaping the rewards of a healthy driver pipeline.” Walkup added that when it comes to marketing strategies, “vertical video formats on social media, search engine marketing, and telling employer brand stories in compelling ways are what is moving the needle today.” “These strategies produce results for not only hiring quality drivers, but other (non-driver) positions as well,” Walkup continued. “We worked with a number of carriers to grow diesel tech leads in Q1, and the results led to more hires and a clear value proposition for those positions.” In Q1 2023, according to the Data Download Report, drivers who are searching for jobs online are looking at more than open driver positions, and local opportunities are providing significant competition for fleets hiring over-the-road, regional and dedicated drivers in many markets across the country. When it comes to driver issues and concerns, equipment issues barely regained the top spot as the top driver concern in Q1, compensation issues remained at the same levels PDA saw in Q4 of 2022 and continue to be a driving force in driver turnover during the first three months of 2023. Notably, as PDA looked at the data for drivers who voluntarily left their position in Q1, compensation issues were the top issue by a substantial margin. “The softening freight market will continue to be a challenge in combating driver turnover for Q2. Open and proactive communication with your drivers, will continue to be essential and reducing turnover to keep drivers in trucks will continue to be a challenge,” said Scott Dismuke, vice president of operations at PDA. “During a freight slowdown, equipment issues can keep drivers from logging valuable miles, therefore affecting driver pay. Getting drivers in and out of the shop as quickly as possible is key to reducing driver frustration. If a quick turnaround in the shop is not possible, offering drivers a loaner is a better option than breakdown pay.” The Q1 2023 data shows that miles-related compensation issues remain the top area of dissatisfaction for drivers. More than half of the drivers with compensation issues in Q1 cited miles as the top reason for their frustration. In a year over year comparison, miles-related compensation issues are up over 13% from Q1 of 2022. Dismuke emphasized the reality that many of the drivers in the industry today have not experienced an economic slowdown. “Remember, drivers who have entered the industry in the last few years have not experienced a freight slowdown,” Dismuke said. “This is new and scary territory for them. Communication and patience with these drivers will be important in walking them through their first freight slow down.” While equipment issues are the top overall frustration for drivers, compensation is by far the top issue for drivers who voluntarily left their position in Q1. As the economy has changed, the reasons for drivers leaving have also changed. “Driver turnover is on the rise because drivers are searching for miles,” Dismuke said. “During COVID, driver turnover was caused by industry-wide pay raises which resulted in drivers searching for the top pay rate. Turnover occurs in all economies, but the reasons change.” To access the full report, click here.

Aurora, Continental announce partnership to develop self-driving truck systems

The Trucker News Staff - April 28, 2023

FRANKFORT, Germany and PITTSBURGH — German automotive parts company Continental AG and U.S.-based self-driving technology firm Aurora Innovation have entered into a partnership to design and develop autonomous driving systems for trucks. The companies made the announcement on Thursday, April 27. “At Continental, we are proud to demonstrate our leading technology expertise by being responsible for the development, manufacturing and implementation of the autonomous driving system kits and the fallback path for Aurora’s autonomy system,” said Nikolai Setzer, CEO of Continental. “In this exclusive partnership, we bundle our systems competence with Aurora’s industry-leading autonomous technology for our common goal to jointly realize the first commercially scalable autonomous trucking systems. A crucial step towards autonomous mobility.” To industrialize the Aurora Driver, Continental officials say they will leverage their automotive product portfolio to develop, manufacture, manage and deliver a variety of equipment, including automotive radar, cameras and high-performance computers. Continental will integrate these hardware components into pods that will be supplied to Aurora’s vehicle manufacturing partners, according to a news release. “Delivering autonomous vehicles at scale has the potential to dramatically transform modern transportation, bringing new accessibility, safety and efficiency to the movement of goods and people,” said Chris Urmson, co-founder and CEO at Aurora. “Continental’s legacy in development and industrialization of automated driving systems, combined with its commitment to transform transportation make it an ideal partner for Aurora. Their depth of expertise will be pivotal to scaling Aurora’s autonomous trucking solution, Aurora Horizon.”

March sales of new Class 8 trucks reflect best March since 2006

Cliff Abbott - April 28, 2023

March 2023 saw the best sales of new Class 8 trucks of any March for the past 18 years, according to data received from Wards Intelligence. Manufacturers reported sales of 24,823 for the month, representing a 23.3% increase over February sales of 20,359. For the first quarter of 2023, a total of 64,891 Class 8 trucks were reported sold. That’s less than a percentage point below the record-setting first quarter of 2006. Compared to March 2022, truck sales rose by 21.9%. A quarterly comparison shows an increase of 29.2% over first quarter 2022 sales numbers. In North America, March Class 8 orders fell by 18% to 19,000 units, according to preliminary numbers from FTR Intel. Compared with March 2022, orders fell by 11%. However, it will take quite a while for these lower order numbers to impact actual sales. Buyers have ordered so many trucks that nearly all build slots are filled for the rest of 2023. If orders fell to zero tomorrow, manufacturers would be able to keep building into 2024. “With build activity over the last several months hovering near 27,000 units, backlogs likely fell during the month,” said Eric Starks, chairman of the board for FTR, in a release announcing the preliminary results. “Given that backlogs are sitting at such high levels, however, it is difficult to ascertain if there is a fundamental weakening in the Class 8 equipment market given order activity levels.” Despite predictions of a coming recession and higher interest rates caused by Federal Reserve efforts to curb inflation, buyers are still ordering new trucks and taking delivery of as many as they can get. “Overall, the numbers were solid and will have little impact on production levels over the next two quarters,” Stark continued. “Given the uncertainty in the economy, this is a welcome sign that demand has not collapsed and that fleets still have access to capital.” ACT Research reported 19,200 March orders on a preliminary basis. “Given how robust Class 8 orders were into year-end and ensuing backlog support, coupled with increasingly cautious readings from the ACT Class 8 Dashboard (-6 on average year to date in 2023, vs. -3 on average from March-December 2022), we have expected SA orders in a range of 15-20k units per month into mid Q3’23,” said Eric Crawford, vice president and senior analyst for ACT. Individual OEMs all reported sales gains over February — with the exception of Volvo. That company reported sales of 2,313 in March, down 2.2% from February’s 2,366. It should be noted, however, that February was an exceptionally strong month for Volvo. For the first quarter of 2023, Volvo sales of 6,084 are up 16.4% from sales in the same quarter of 2022. Volvo-owned Mack Truck reported sales of 1,727 in March, up 28.5% from February’s 1,344 and up 38.6% from March 2022 sales of 1,246. On a percentage basis, International saw the largest gains both month over month and year over year. The company reported sales of 4,154 in March, up 46.9% over February sales of 2,828 and up 77.7% over March 2022 numbers. International’s share of the U.S. Class 8 market in March was 16.7%, bringing the OEM’s year-to-date total market share to 14.5% Last year at the same point (the end of the first quarter) the company’s market share was 11.6%. That’s a long way from 2009, when International held 28% of the U.S. market and the top spot among manufacturers, but things are headed in the right direction for the Traton Group-owned Navistar. Traton Group also owns MAN, Scania and Volkswagen Truck and Bus. Kenworth sales of 3,359 were 18.1% ahead of February sales and 12.5% ahead of March 2022 sales. For the first quarter, the company has sold 20.4% more trucks than in the same period of 2022. Peterbilt fared a little better in March with sales of 3,432, up 20.7% from February but only 6% better than March 2020. With first-quarter sales of 8,734, Peterbilt is 21.5% ahead of the same three months in 2022. Both PACCAR companies have about a percentage point less in market share compared with the first quarter last year. Freightliner continues to lead the pack with an even 40% of U.S. Class 8 sales in the first quarter, the same percentage they held for the first quarter of 2022. For the month of March, Freightliner reported 9,208 sold vs. 7,368 in February for an increase of 25.0%. Compared with March 2022 sales of 7,691, numbers were up 19.7%. Western Star sold nearly 8,600 fewer trucks than sibling Freightliner in March, reporting 610 trucks moved. That number represents an increase of 14.2% from February but a decline of 7.3% compared to March 2022. For the first quarter, Western Star’s 1,711 trucks sold were just 1.8% ahead of the pace set in the same quarter of 2022. Finally, Tesla reported sales of 20 Class 8 electric trucks in March, double what it sold in February. The first-quarter total of 60 can’t be compared with the same quarter 2022 because Tesla sales, if any, weren’t reported to Wards until January of this year. For perspective, Tesla sales represent .09% (less than a tenth of a percent) of the market. It’s hardly worth tracking now, but that percentage will undoubtedly be growing for Tesla and for other manufacturers of battery and fuel cell electric trucks. Economists are still predicting a mild recession, but buyers of Class 8 trucks aren’t looking to downshift any time soon.

Uber Freight giving carriers tools to fix finances through partnership with AtoB

The Trucker News Staff - April 27, 2023

CHICAGO — Uber Freight has entered into a payments partnership with AtoB, a financial tech (fintech) platform that bills itself as a way to modernize the fleet industry’s trillion dollar financial system. Under the terms of the partnership, AtoB will provide fintech tools to eligible Uber Freight carriers, allowing them to manage fuel purchases through the Uber Freight Carrier Card and access spend management software integrated directly with Uber Freight’s product and platform, a news release stated. “We’re proud to partner with Uber Freight to support their nationwide carrier network. This partnership demonstrates the strength and scalability of AtoB’s platform and products,” said AtoB CEO Vignan Velivela. “AtoB aligns fleet finances with powerful banking, lending and credit tools that, until now, have been out of reach for many operators. This announcement is an important growth moment for both our company and fleet operators across the U.S.” Uber Freight says the partnership “will empower carriers to save money, simplify logistics and outperform competitors.” Benefits to carriers include: Exclusive fuel discounts at participating truck stops. Free same-day payouts on Uber Freight loads for eligible carriers. Accepted at every fuel retailer that accepts Visa. No annual or hidden fees. Streamlined expense reporting and controls. Build business credit with purchases. Uber Freight has one of the world’s largest digital freight marketplaces and managed transportation networks, with approximately 100,000 digitally-enabled carriers and thousands of shippers in its network. AtoB’s fintech payments platform provides drivers and fleet operators with financial products, including full support for fleet transitions to electric fleets and next-generation clean fuels. “This partnership brings much-needed financial efficiency to carrier business operations with no annual fees, the opportunity to build credit, and the ability to manage all fuel expenses online with just one click,” the news release stated. “With the Uber Freight Carrier Card and fintech tools supported by AtoB, carriers have a deeply-integrated product experience with onboarding, card management and fuel finder capabilities. Uber Freight is aligning with the real-time nature of today’s businesses and constantly improving its product suite—bringing enhanced reliability, speed, and transparency to the carrier experience.” Uber Freight cardholders will have savings applied automatically, with the discount reflected on the customer’s weekly transaction report. “Carriers need innovative tools and solutions to build thriving businesses, maximizing their time and earnings potential on the road,” said Uber Freight CEO Lior Ron. “Since our beginning, Uber Freight has brought much-needed transformation to the industry. We’ve introduced driver-first carrier solutions that improve the economics of truck ownership for the thousands of drivers on our platform. Now more than ever, carriers need a solution that simplifies finances, brings same-day payments to wallets, and supports better cash flow management for the future.”

Samsara selects e2open to automate, connect its value chain

The Trucker News Staff - April 27, 2023

AUSTIN, Texas — Operations digitization company Samsara has chosen e2open Advanced Supply Chain Planning and Collaboration to help manage its demand, supply and inventory across its operations. “At Samsara, we look for technology solutions that support our pace of innovation and commitment to providing the best possible experience for our customers,” said Jeff Faulkner, vice president of operations at Samsara. “With increased visibility and automated workflows, e2open can help us stay ahead of potential disruptions and enable a quick supply chain response to changes in customer demand.” With e2open, Samsara will be able to automate more tools and communications across its supply chain network, potentially providing greater visibility into its operations, a news release stated. A metrics-driven command center and external connectivity offer opportunities for improved collaboration, while simulations and scenarios can be leveraged to drive decisions. “We’re thrilled to welcome Samsara as a client leveraging e2open’s Planning and Supplier Collaboration suites, to support their growth and customer journey,” said Michael Farlekas, CEO of e2open. “Samsara is on an exciting trajectory, and we look forward to working together to help them realize the benefits of outside-in planning, collaboration, and visibility across their entire supply chain network.”

Canadian Pacific Kansas City, Knight-Swift announce multi-year agreement

The Trucker News Staff - April 27, 2023

PHOENIX — Canadian Pacific Kansas City (CPKC) and Knight-Swift Transportation Holdings Inc. have entered into a new multi-year agreement to provide truckload intermodal transportation service on CPKC’s new single-line north-south corridor connecting Mexico, the United States and Canada. “This agreement creates compelling new transportation solutions for Knight-Swift’s current and future customers looking for optionality and increased capacity in their supply chains,” said John Brooks, CPKC executive vice president and chief marketing officer. “As Knight-Swift transition their Mexico-U.S. traffic to CPKC starting in mid-May, we will focus on growth between Chicago, Texas and Mexico markets.” Adam Miller, Knight-Swift Transportation CFO and Swift president, said the agreement with CPKC “will provide another differentiated solution for our customers and their over-arching supply chains.” “The Knight-Swift team is looking forward to engaging with the CPKC railroad on service offerings, customer solution design and demand planning to help facilitate growth on the first single-line railroad connecting Mexico, the United States and Canada,” Miller added. “Our Transmex team and growing less-than-load offering will also benefit from the newly created railroad and will allow us to continue supporting our customers in new and different ways by providing thoughtful solutions with a solid underlying service product.” According to a news release, CPKC’s International Railroad Bridge over the Rio Grande River at the U.S.-Mexico border at Laredo, Texas, offers an alternative to congested highway ports of entry. “A second span to expand the bridge’s capacity and further increase the efficiency of cross-border train movements is currently under construction and expected to be completed by the end of 2024,” the news release noted. Anticipated environmental benefits of CPKC include the avoidance of more than 1.6 million tons of greenhouse gas (GHG) emissions due to the expected improved operational efficiency of CPKC versus current operations and another 300,000 tons of GHG emissions with the diversion of 64,000 trucks to rail for a total reduction of 1.9 million tons of GHG emissions over the next five years. Diverting 64,000 long-haul truck shipments to rail annually with new CPKC intermodal services will reduce total truck vehicle miles travelled by almost 2 billion miles over the next two decades, saving $750 million in highway maintenance costs, according to the news release.

Penske to acquire Star Truck Rentals

The Trucker News Staff - April 26, 2023

READING, Pa. — Penske Truck Leasing has reached an agreement to acquire Star Truck Rentals Inc., a transportation services company offering full-service leasing, commercial truck rental, contract maintenance, used truck sales and additional services. Financial terms were not disclosed, according to a news release. Founded more than 150 years ago, Star Truck Rentals operates more than 1,900 vehicles from 18 locations throughout Michigan and Indiana. The company serves a diverse customer base across the food and beverage, manufacturing and consumer goods and services industries, the news release noted. “Star Truck Rentals has impressive scale in the region, an excellent reputation in the industry and a commitment to exceptional customer service,” said Art Vallely, president of Penske Truck Leasing. “We look forward to integrating Star into the Penske brand and leveraging the best both companies have to offer to serve new and existing customers in the region.” Tom Bylenga, president Star Truck Rentals, echoed Vallely’s enthusiasm about the acquisition. “We are excited to join Penske,” Bylenga said. “Penske and Star share a similar culture and approach towards supporting customers and developing associates. Joining with Penske will offer new opportunities for growth across an expanded network.”

Rebalancing act: Hard times are in store for the trucking industry as shipment numbers continue to fall, analysts say

Cliff Abbott - April 25, 2023

Rebalancing. That’s the word being tossed around by trucking industry analysts and economists when discussing the current freight market. The term applies to the cyclical dance between the shippers who provide the freight and the trucking industry that hauls it. ’Round and ’round it goes as the industry tries to adjust to the available freight by adding or subtracting trucks. At this juncture, we’re at the contraction phase: There are too many trucks for the available freight. The competition for loads is very high and freight rates suffer for it. Good for the shipper, but not so much for trucking. The Cass Freight Index for Shipments for March reported a 4% decline in shipment numbers from March 2022. On top of that, the Cass Freight Index for Expenditures shows a 12% drop in payment for those shipments. Cass uses both statistics to compile its “Inferred Freight Rates.” This month’s report indicates inferred rates dropped 0.5% from February and are down 8.3% from March 2022. Fuel cost is included in the freight rates used. “Fuel prices are transitioning from an inflationary factor to a deflationary one as we pass the anniversary of the fuel price spikes that followed Russia’s invasion of Ukraine, and even allowing for modest increases to follow recent OPEC production cuts, we estimate lower fuel prices will knock about 5% off freight rates y/y starting mid-Q2,” the Cass release explained. The release cautions, however, that market pressures are still pushing freight rates downwards: “Soft real retail sales trends and ongoing destocking remain the primary headwinds to freight volumes, and sharp import declines suggest this type of environment will persist for some time. Normal seasonality from the March level suggests 1% to 3% y/y declines for the next few months.” Destocking is the process retailers use to match inventory levels to current sales rates. If a retailer is selling less of a product, it needs a smaller inventory to support sales. When consumers aren’t buying, retailers don’t order replacements — and shipment numbers drop. Cass uses billing information from its clients to compile the Indexes, and the shipments counted come from multiple modes of transportation including truck, rail, pipeline, ship, air and more. Trucking makes up the largest segment of the data used. For trucking-specific data, Cass compiles a Truckload Linehaul Index that more accurately shows what’s happening in the trucking industry than the Inferred freight rates. The Cass index, which includes both spot and contract freight shipments, fell by 9.6% in March from March 2022. “With spot rates already down significantly, the larger contract market is likely to continue adjusting down, if more gradually, but in the same direction,” the release said. The American Trucking Associations (ATA) Truck Tonnage Index fell 5.4% in March after a 0.9% increase in February. The ATA Index for March was 111.6, indicating that shipment levels reported by ATA members were 11.6% higher than the baseline year of 2015. If that number seems good, remember that the index topped 120 in August of 2019 and then fell to about 106 during the pandemic. “After increasing a total of 2.6% during the three previous months, March’s sequential decline was the largest monthly drop since April 2020 during the start of the pandemic,” said Bob Costello, chief economist for ATA. “Falling home construction, decreasing factory output and soft retail sales all hurt contract freight tonnage — which dominates ATA’s tonnage index — during the month.” While contract rates are falling, they haven’t yet fallen to spot rate levels, as truckers who depend on brokered freight can readily attest. The Motive Monthly Economic Report for March 2023 pointed to more of the same with its Retail Visits Index, which is compiled from in-truck devices that measure miles and locations. The index showed truck visits to retail locations like warehouses and distribution centers declined by 10% compared to March 2022 levels. Fewer visits, of course, mean fewer shipments. The Motive release also blamed inventory destocking as retailers reduce inventories due to softness in consumer demand. The solution to lower rates is in the “rebalancing” mentioned at the beginning of this article. For rates to rise, shipment numbers must come up, truck numbers must go down or a combination of both must occur. “The pendulum of pricing power has been firmly with shippers for some time, and the cudgel of lower rates is starting to impact capacity. Though new equipment production remains elevated, hiring and fleet exit trends tell us capacity is slowing at the margin,” said Tim Denoyer, vice president and senior analyst for ACT Research, in an April 18 release titled The Rebalancing of Capacity Begins. The release noted that spot rates are now about 17% below truckload fleet operating costs for the upcoming quarter and pointed to the number of authority revocations from the U.S. Department of Transportation. Truckers who are going out of business don’t need operating authority, especially since payment of expensive insurance premiums are necessary to keep it. “With marginal fleets scrambling for miles with busted budgets, spot rates have gone far below costs, but this can only go on so long,” Denoyer concluded. DAT Freight and Analytics reported that average dry van spot rates on its load board have fallen 28.1% in the past year and are currently at an average of $2.09 per mile. Refrigerated spot rates fared slightly better but still fell by 26.3% in the past year. The average spot rate per mile for refrigerated loads in mid-April was $2.44. Flatbed spot rates were down 19.6% from a year ago and were at a $2.69 average at mid-month. As freight rates bottom out and shipment numbers remain suppressed, the trucking industry will reduce truck numbers. That’s good news for the used truck market, which will eventually see more trucks and lower prices, but lower truck numbers won’t help a lot until shipment numbers come up. Most of the experts are looking to the third quarter for the freight recession to end. However, as we all know, the “experts” don’t always get it right.

Great Plains Transport adds to its executive team, expands tractor fleet

The Trucker News Staff - April 25, 2023

MAPLETON, N.D. — Great Plains Transport has made several changes in its executive offices recently. Ryan Brugioni has been named central operations director, and Mark Harshfield has been appointed director of business development, according to a news release. These hires come on the heels of Jacob Perry being named the company’s first chief growth officer. Brugioni “brings extensive experience in boosting revenue generation, amplifying team performance, outperforming targets and driving continuous growth by providing strategic oversight and direction for customer service delivery, business development functions and day-to-day operations,” the news release noted. “Ryan’s recent accomplishments include his tenure at Dupre Logistics, where he managed branch operations and boosted branch revenue from $1 million to $15 million in just three years. Ryan’s proven history of managing large geographical territories with a focus on driving rapid business growth makes him an invaluable asset as Great Plains transport’s central operations director.” Brugioni said he is excited to join the Great Plains Transport team so he can “leverage my experience to contribute to the company’s expanding capabilities.” “Together with Mark and the rest of the team, I am confident we will provide dynamic solutions to our customers and exceed their expectations,” he added. Harshfield has a background in sales, logistics and operations management. His accomplishments include growing new customer business by 38% in his first year at Swift Logistics and increasing revenue by 30% year-over-year at Bounce Logistics, according to the news release, which also notes that “Mark’s keen ability to foster strategic partnerships and expand the company’s customer base will play a critical role in driving growth and profitability.” Harshfield said: “With the increasing challenges and opportunities in the logistics industry, I am thrilled to be a part of a company that demonstrates integrity and a commitment to growth. I look forward to working with the team to drive innovative solutions and create lasting partnerships.” Mike Holland, CEO and president of Great Plains Transport, expressed his enthusiasm for the new additions to the leadership team, stating, “We are thrilled to welcome Ryan and Mark to Great Plains Transport. Their wealth of experience and proven track records in the industry make them invaluable assets to our organization.” “As we continue to grow and evolve, their expertise will be crucial in helping us navigate the challenges ahead and seize new opportunities,” Holland continued. “With the recent appointment of Jacob Perry as our first chief growth officer and now the addition of Ryan and Mark, we are confident in our ability to strengthen our market position and deliver exceptional value to our customers.” In addition to expanding its executive team, Great Plains Transport is investing in new equipment and increasing its tractor count by 10%, according to the news release. “The company’s dedication to enhancing performance across all departments is evident in its maintenance operations, which experience a 21% higher cost on internal work orders due to prioritizing preventive repairs,” the news release noted. “This investment ensures that equipment remains in optimal condition for both drivers and customers, enhancing overall satisfaction and reliability.”

Utah’s PaperBox buys state’s1st Volvo VNR Electric Truck

The Trucker News Staff - April 25, 2023

SALT LAKE CITY — A 109-year-old, family-owned paper company has become the first in Utah to purchase a Volvo VNR Electric Class 8 tractor. Volvo Trucks North America Regional Vice President for the Western U.S. Jared Ruiz said that PaperBox “is a prime example of an established company that is changing the way they operate to be a good environmental steward for future generations. In addition to supporting Utah PaperBox, our dealer partner Mountain West Truck Center will support other customers in the region in deploying battery-electric trucks as the dealership completes our rigorous accreditation process to become the first Volvo Trucks Certified Electric Vehicle (EV) dealership in the state.” The six-battery configuration Volvo VNR Electric offers a range of up to 275 miles, enabling the company to service its high-traffic delivery routes between Provo, Utah, Ogden, Utah, and Salt Lake City, a news release stated. Charging infrastructure for the Volvo VNR Electric is expected to be installed by April in preparation for the truck’s arrival at Utah PaperBox’s Salt Lake City facility. The 150 kW chargers will provide the Volvo VNR Electric truck with an 80% charge in about 90 minutes and will utilize its existing solar power to avoid off-peak costs for charging from the grid, the news release noted. As part of its overall sustainability initiatives, the family-run paper company has made significant investments in solar energy, previously installing 1,000 solar panels that generate up to 1100 kWh per day. The solar panels also provide power to 40 kWh charging stations for employees’ personal electric vehicles at its facility. “My daughter is the fifth generation of our family to join the business, so we understand the vital importance of protecting the air quality in the community where we have lived and worked for decades,” said Steve Keyser, president of PaperBox. “We are proud to be the first company in Utah to deploy a Volvo VNR Electric, and our driver is wild with excitement at the chance to drive the battery-electric truck. I predict we will not be the only company making the transition, not just from an environmental standpoint, but for the many business advantages offered.” PaperBox purchased its 6-hy-2 Class 8 battery-electric truck through the Utah Clean Diesel Program, an incentive offered through the Utah Department of Environmental Quality to offset costs for clean fleet transition. The funding program required the company to dispose of one of its Class 8 diesel trucks in its fleet to be replaced with the Volvo VNR Electric.

England Logistics receives Utah’s Best of State 2023 award

The Trucker News Staff - April 25, 2023

SALT LAKE CITY — Freight brokerage firm England Logistics has been awarded Utah’s Best of State award in the Business Services/Freight and Logistics Division. According to a news release, this is the 10th Best of State award for the organization. The Best of State Program annually recognizes outstanding companies in 10 divisions. “To achieve this recognition, we have relentlessly pursued individual and collective betterment and upheld our core values,” said Jason Beardall, chief executive officer of England Logistics. “This accolade is evidence of our team’s dedication and the bond we’ve forged with our clients and community. Together, we celebrate this award and continue striving toward great heights.” Click here for a complete list of winners.

Electric truck maker Nikola expands into Canada

The Trucker News Staff - April 25, 2023

PHOENIX — Nikola has sold a battery-electric vehicle (BEV) and a hydrogen fuel cell electric vehicle (FCEV) to Alberta Motor Transport Association (AMTA), expanding its footprint into Canada for the first time. According to a news release, AMTA will incorporate the new heavy-duty vehicles into its Hydrogen Commercial Vehicle Demonstrations Project. “This first-of-its-kind project in Canada officially launched on Feb. 10, 2023, and offers Alberta carriers the opportunity to use and test Class 8 vehicles that operate with hydrogen fuel within their unique operations,” the news release noted. ‘These trials will look at the performance of hydrogen-fueled vehicles on Alberta roads, payloads and weather conditions, while addressing challenges around fuel cell reliability, infrastructure and vehicle cost and maintenance.” Doug Paisley, AMTA’s board chair, said his organization is helping Cananda to reach its 2050 net-zero goals by supporting the adoption of zero-emissions commercial vehicles. “We are excited to put these Nikola trucks to work in Alberta and begin collecting performance data, raising awareness to this advanced technology, promoting early adoption and creating industry confidence in such an innovative technology,” Paisley said. “AMTA works closely with the industry and its many partners to identify and research opportunities and propose and implement data-driven solutions that meet the needs and challenges of our industry.” The Nikola Tre BEV has a range of up to 330 miles, according to the company, which notes that “The Tre’s cabover design is ideal for metro-regional applications because it has improved visibility and maneuverability, along with a smooth and quiet ride free of the smell of diesel emissions.” “Canada is moving fast to decarbonize the transportation sector by removing diesel trucks from the road to help the environment,” said Michael Lohscheller, president and CEO of Nikola Corporation. “We want Nikola to be in lockstep with leaders like AMTA to accelerate these important market adoption and regulatory policies.” With a range of up to 500 miles and an estimated fueling time of 20 minutes (depending on the characteristics of the hydrogen fueling location, including fueling hardware and software protocol, fuel quantity and fueling conditions), the Nikola Tre FCEV is expected to have among the longest range of all commercially available zero tailpipe emission Class 8 trucks while realizing weight savings when compared to BEV Class 8 trucks with similar range, according to Nikola officials. “Canada is a global climate leader with bold targets for emission reductions,” said Carey Mendes, president of Nikola Energy. “Nikola’s zero-emissions trucks and its plans for building hydrogen infrastructure are aligned with Canada’s goals and underpins a fair share our publicly announced plans for 300 metric-tons of hydrogen supply, with 60 hydrogen stations planned for across North America by 2026. This partnership is just the beginning of bringing hundreds of FCEVs to Alberta and Canada.”

Van spot rates ease again in latest week

The Trucker News Staff - April 25, 2023

BLOOMINGTON, Ill. — Dry van and refrigerated continued to see spot rate softness in the latest week, but rates could be close to bottoming out, according to the latest data from Truckstop and FTR. Total market broker-posted spot rates in the Truckstop system increased during the week ended April 21 (week 16) on the strength of the flatbed segment. Dry van and refrigerated each saw rates ease slightly after the prior week had produced the largest rate drops since January for both. Based on seasonal expectations, van rates might begin firming within a couple of weeks. Loads Available Total load activity rose 7.9%, which is the largest weekly gain in seven weeks. Volume was about 49% below the same week last year and about 23% below the five-year average. Loads were up week-over-week in the three largest regions for volume – South Central, Southeast and Midwest. Truck postings increased 3%, and the Market Demand Index — the ratio of loads to trucks — rebounded nearly to the level posted two weeks earlier. Total Rates The total broker-posted rate rose 2.6 cents – precisely reversing the previous week’s decline. Flatbed’s rate strength more than offset the small decreases in van rates. The total market rate was more than 21% below the same 2022 week but 3.5% above the five-year average. Dry Van Dry van spot rates declined slightly more than 1 cent. Rates were about 25% below the same 2022 week and more than 7% below the five-year average for the week. Rates have decreased about 23 cents over seven straight weeks of declines. Dry van loads rose more than 5%. Volume was more than 45% below the same week last year and about 14% below the five-year average for the week. Volume was down week-over-week in the South Central and Mountain Central regions but up elsewhere. Reefer Refrigerated spot rates decreased just over 1 cent. Rates were almost 23% below the same 2022 week and nearly 8% below the five-year average for the week. Refrigerated rates have declined nearly 20 cents over the past five weeks. Refrigerated loads increased more than 4%. Volume was almost 53% below the same week last year and more than 26% below the five-year average for the week. Load activity was down marginally on the West Coast and in the South Central region, but it was up elsewhere. Flatbed Flatbed spot rates rose more than 3 cents after barely moving in the prior week. Rates were nearly 22% below the same 2022 week but nearly 7% above the five-year average for the week. Flatbed loads rose more than 10%. Volume was 54% below the same week last year and nearly 31% below the five-year average for the week. Load activity was up in the Midwest, Southeast and South Central regions.

Roadz opens Fleetstore Online Marketplace for commercial fleet operators

The Trucker News Staff - April 24, 2023

BALTIMORE — Roadz, a Silicon Valley based fleet-tech company, has announced the latest Roadz-powered software-as-a-service (SaaS) marketplace: Fleetstore, a Bosch Initiative. The one-stop-shop environment offers a range of digital solutions to help commercial fleets of all sizes address operating costs, productivity, safety and regulatory compliance, according to a news release. “Fleetstore enables fleet operators to save time and money by using a simple and intuitive marketplace interface to discover, compare and purchase solutions from a curated ecosystem of leading solution providers across multiple categories, at competitive pricing,” the news release stated. “Importantly, small to mid-sized fleets that purchase solutions through Fleetstore can enjoy the same purchasing power as larger fleet operators.” In addition to Fleetstore, Roadz powers digital marketplaces for leading telematics service providers and commercial auto insurers and is in the process of launching digital solution ecosystems for leading energy companies, automotive OEMs, automotive suppliers and fleet-management companies. “Smart-fleet management solutions can help commercial operators run more efficiently, reduce costs, and ensure safety and regulatory compliance — but finding the ‘right’ solution for your fleet based on fleet size and vehicle mix requires a lot of time and effort,” said Amit Jain, chief operating officer of Roadz. “Using our SaaS platform, solution providers that cater to the commercial fleet market can now connect their fleet customers to a range of verified and integrated solutions through a ‘single pane of glass’ environment. Fleets are able to get tailor-made ‘smart’ recommendations, find what they need in one place, and at a lower cost.”

Maverik begins acquisition of Kum & Go, Solar Transport fuel tankers

The Trucker News Staff - April 21, 2023

SALT LAKE CITY — Fuel provider Maverik is finalizing the purchases of convenience store chain Kum & Go and Solar Transport. According to a news release, the financial terms of the agreements aren’t being released. Kum & Go has more than 400 locations across 13 states, while Solar Transport, a fuel tanker truck carrier and logistics provider, operates more than 20 terminals with regional offices in Iowa, Colorado and Missouri. Maverik operates 380 locations — known as Maverik-Adventures First Stops — across 12 western states, making it the largest independent fuel marketer in the Intermountain West. “The combination of Maverik and Kum & Go creates a best-in-class convenience store operator across the Midwest and Rocky Mountain regions with a differentiated value proposition across fuel, foodservice and inside store offerings,” a news release stated. Chuck Maggelet, president and chief adventure guide for Maverik, lauded Kum & Go owners the Krause Group, saying that Kyle and Tanner Krause, along with he generations before them, “have built an exceptional business that pairs quality with convenience and puts people first.” “We are honored to carry their legacy forward as we build on Kum & Go’s strong operating and innovation capabilities and expand our adventurous convenience experience,” Maggelet added. “We look forward to welcoming Kum & Go and Solar Transport associates and stores to Maverik.” Kyle Krause, Krause Group president and CEO, said that Kum & Go has always been driven by a desire to innovate, grow and serve its customers, communities and people. “Maverik has built its business in the same way and is ideally positioned to lead the next chapter of growth for Kum & Go,” Kyle Krause said. “We have much in common and I look forward to welcoming Chuck’s leadership, his team and Maverik to Des Moines, which will always be the home of the Krause Group and important to our future.” The transaction is expected to close in the coming months and is subject to customary closing provisions. “This is the most momentous day in the 63-year history of our family business,” said Tanner Krause, president and CEO of Kum & Go. “My family has worked for four generations to create and build Kum & Go into a business that has done an incredible amount of good for our people, for Iowa and beyond. Serving as president for the past five years has been the fulfillment of my lifelong dream. I’ve had the pleasure of knowing Chuck Maggelet for years and hold a lot of respect for him as a person and a business leader. I’m confident the Maggelets and Maverik will be good stewards of Kum & Go’s people and culture for generations to come.”

Robot Chicken: C.R. England, Kodiak Robotics teaming up for autonomous Tyson Foods deliveries

The Trucker News Staff - April 20, 2023

MOUNTAIN VIEW, Calif. — C.R. England Inc. and Kodiak Robotics Inc. have begun a pilot program to autonomously ship Tyson Foods products between Dallas and San Antonio. According to a news release, the deliveries will launch later in April using Kodiak self-driving trucks and C.R. England refrigerated trailers. Safety drivers will be in the trucks in the initial stages of the pilot. Kodiak officials said that testing indicates that self-driving trucks provide increased safety and reliability. “Tyson Foods is pursuing the leading edge of technology in all aspects of our business, especially in transportation,” said Patrick Simmons, the company’s vice president of transportation. “Autonomous trucks are just one piece of the puzzle in this innovation journey to use technology to operate more efficiently and to help ensure our transportation loads are delivered in a timely fashion.” Through this partnership, C.R. England also joined Kodiak’s Partner Deployment Program, which helps carriers establish autonomous freight operations and integrate the Kodiak Driver, Kodiak’s self-driving system, into their fleet, according to the news release. “One of the categories where C.R. England is a leader is in perishable foods, which require the safest, most reliable on-time delivery possible,” said C.R. England CEO Chad England. “Kodiak’s proven performance and commitment to customer success makes it a great partner to help us introduce autonomous service into our operations. Working with Kodiak enables us to better understand how autonomous vehicles fit into our fleet of the future, while continuing to deliver high quality service and value to great customers like Tyson.” England added that by employing self-driving trucks, “we can increase capacity and expedite deliveries without sacrificing customer service, as our valued drivers will take over to interface with customers and consignees at either end of the load. Our intent is to be a ‘one-stop shop’ for customers, whether they need their freight moved autonomously or not.” “C.R. England’s extensive premium service network provides the ideal scenario for the introduction of autonomous trucks,” said Don Burnette, founder and CEO of Kodiak. “The potential benefits of Kodiak’s technology are far-reaching — for shippers whose reputations are built on the freshness of their products, to end consumers who rely on companies like Tyson Foods to provide products they can trust. Our partnership with C.R. England will clearly demonstrate our value proposition of increasing safety, efficiency and reliability for Tyson Foods and the entire supply chain.”