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ACT Research For-Hire Trucking Index: Rates slip amid strong holiday freight

COLUMBUS, Ind. – The latest release of ACT’s For-Hire Trucking Index showed improvement in for-hire freight volumes and utilization. The data used in the Index included December. Respectively, the data indicated 55.5 and 52.3 diffusion index readings, both up four points from November on a seasonally adjusted basis. But even as for-hire capacity contracted again, the Freight Rates Index slid to 48.7 in December. The ACT For-Hire Trucking Index is a monthly survey of for-hire trucking service providers. ACT Research converts responses into diffusion indexes, where the neutral or flat level is 50. Tim Denoyer, ACT Research’s Vice President and Senior Analyst commented, “We see encouraging signs that the freight downturn is in its late stages and the market will rebalance in 2020. However, the ongoing rate pressure, even as volumes ramped into the holidays, is symptomatic of ongoing excess industry capacity. Our survey respondents clearly get it, and reduced capacity for a sixth straight month, so we can pretty easily deduce that private fleet capacity additions through year-end 2019 are the main factor continuing to pressure for-hire rates.” The ACT Freight Forecast provides forecasts for the direction of truck volumes and contract rates quarterly through 2020, with three years of annual forecasts for the truckload, less-than-truckload and intermodal segments of the transportation industry. For the truckload spot market, the report provides forecasts for the next twelve months. In 2019, the average accuracy of ACT’s truckload spot rate forecasts was 98%. The ACT Research Freight Forecast uses equipment capacity modeling and the firm’s economics expertise to provide anticipated freight rates, helping businesses in transportation and logistics management plan with confidence.

Annualized turnover rate for large, small TL carriers up in third quarter

ARLINGTON, Va. — The annualized turnover rate at both large and small truckload carriers rose in the third quarter, according to American Trucking Associations’ Quarterly Employment Report. The turnover rate at large truckload fleets – those with more than $30 million in annual revenue – jumped nine points, the largest quarterly increase since the second quarter of 2016, to an annualized rate of 96%. The increase set the figure at its highest point since the second quarter of 2018. The churn rate at smaller carriers also rose – ticking up six points to 73% from the lowest level since 2011. “Counterintuitively, we saw turnover rise even as the freight demand was relatively soft,” said ATA Chief Economist Bob Costello. “While turnover rose at both small and large carriers, the reasons were quite different. Large carriers reduced the number of drivers they employed, in keeping with lackluster freight levels, but smaller carriers added to their driver pools, increasing their number of drivers by 1.9%. “During the first two quarters of the year, larger carriers added drivers, but in the third quarter they started right-sizing their fleets. Conversely, smaller companies increased their driver pool in the third quarter for the first time this year.” Turnover at less-than-truckload carriers dropped four points to an annualized rate of 9% – the lowest level it has been at since the final quarter of 2017. The third quarter 2019 rate is in stark contrast to the comparable quarter in 2018 when the turnover rate fell 11 percentage points – dropping it to 87 percent, marking its lowest point since the first quarter of 2017 when it stood at 74 percent. The third quarter 2018 drop also reversed two consecutive quarters of increases in the turnover rate, which had driven up the churn rate as high as 98 percent – 10 points higher than at the end of 2017. “The drop in turnover can be potentially explained in a few ways,” Costello said in 2018. “First, large pay increases fleets have been offering appear to be working, and drivers are remaining with their current carrier. Second, we did see a softening of freight markets in the third quarter from the incredibly strong pace it had set earlier in the year. Historically, softer freight volumes lead to lower driver turnover.”

Annualized turnover rate for large, small TL carriers up in third quarter

ARLINGTON, Va. — The annualized turnover rate at both large and small truckload carriers rose in the third quarter, according to American Trucking Associations’ Quarterly Employment Report. The turnover rate at large truckload fleets – those with more than $30 million in annual revenue – jumped nine points, the largest quarterly increase since the second quarter of 2016, to an annualized rate of 96%. The increase set the figure at its highest point since the second quarter of 2018. The churn rate at smaller carriers also rose – ticking up six points to 73% from the lowest level since 2011. “Counterintuitively, we saw turnover rise even as the freight demand was relatively soft,” said ATA Chief Economist Bob Costello. “While turnover rose at both small and large carriers, the reasons were quite different. Large carriers reduced the number of drivers they employed, in keeping with lackluster freight levels, but smaller carriers added to their driver pools, increasing their number of drivers by 1.9%. “During the first two quarters of the year, larger carriers added drivers, but in the third quarter they started right-sizing their fleets. Conversely, smaller companies increased their driver pool in the third quarter for the first time this year.” Turnover at less-than-truckload carriers dropped four points to an annualized rate of 9% – the lowest level it has been at since the final quarter of 2017. The third quarter 2019 rate is in stark contrast to the comparable quarter in 2018 when the turnover rate fell 11 percentage points – dropping it to 87 percent, marking its lowest point since the first quarter of 2017 when it stood at 74 percent. The third quarter 2018 drop also reversed two consecutive quarters of increases in the turnover rate, which had driven up the churn rate as high as 98 percent – 10 points higher than at the end of 2017. “The drop in turnover can be potentially explained in a few ways,” Costello said in 2018. “First, large pay increases fleets have been offering appear to be working, and drivers are remaining with their current carrier. Second, we did see a softening of freight markets in the third quarter from the incredibly strong pace it had set earlier in the year. Historically, softer freight volumes lead to lower driver turnover.”      

Employers add 128K jobs in October, for-hire trucking up 1,300, but …

WASHINGTON — U.S. employers added a solid 128,000 jobs in October, a figure that was held down by a now-settled strike against General Motors that caused tens of thousands of workers to be temporarily counted as unemployed. The unemployment rate ticked up from 3.5% to 3.6%, still near a five-decade low. And for a second straight month, average hourly wages rose a decent if less-than-robust 3% from a year ago. All told, the October employment report from the government pointed to a still-sturdy job market that remains a key source of strength for a U.S. economy that’s been weakened by trade wars and a global slowdown. The solid jobs data will also make it even less likely that the Federal Reserve, which cut short-term interest rates this week for a third time this year, will do so again anytime soon. The solid jobs data put stock investors in a buying mood. The Dow Jones Industrial Average rose about 160 points in early trading. Labor Department statistics showed truck transportation gained 1,300 jobs in October, but other data paint a much less rosy picture. Information compiled for various trucking segment lags one month behind the total truck transportation figure and that information shows declines in September compared to August. General freight trucking, long distance lost 5,800 jobs in September compared to August. General freight trucking long distance truckload lost 4,400 jobs. General freight trucking less than truckload lost 1,400 jobs. On the national scene, last month, the GM strike contributed to the temporary loss of 41,600 auto factory and likely other related jobs. But the settlement seems sure to lead to a return of those jobs in the coming months. The report revised upward job gains in the prior two months by a combined 95,000, suggesting a healthier job market than initially believed. Another temporary drag on hiring last month was the U.S. Census. The government let go of 20,000 short-term workers who had been helping prepare for the 2020 survey. Job growth so far this year has averaged just 167,000 a month, down from an average of 223,000 in 2018, according to Labor Department figures. Even so, hiring remains high enough to keep the unemployment rate from rising despite the tepid pace of economic growth. On Wednesday, the government estimated that the economy grew in the July-October quarter at a modest 1.9% annual rate. The economy has been expanding for more than a decade, the longest period of growth on record. But the bump from the 2018 tax cuts are fading and an aging population and other demographic forces are holding back potential growth. Surveys also suggest that employers have turned cautious in large part because of heightened uncertainties caused by President Donald Trump’s trade conflicts. The president has imposed tariffs on many goods imported to the U.S., and other nations have retaliated with import taxes on U.S. exports. One result is that companies, especially in manufacturing, have slowed their hiring or have stopped hiring altogether. Still, consumers, who drive about 70% of U.S. economic activity, have remained generally resilient. In September, they modestly stepped up their spending, and their incomes grew fast enough to let them save more, too. A rising saving rate is encouraging because it suggests that households have leeway to keep spending and supporting an economic expansion that has entered a record-breaking 11th year. At the same time, businesses have been a drag on the economy in recent months. Collectively, they have slashed their spending on industrial machinery and other equipment, mostly because the U.S.-China trade war has made them reluctant to commit to big purchases. The tariffs between the U.S. and China, the world’s two largest economies, have also reduced U.S. exports. October is the usual start of hiring for the holiday shopping season. But the rise of e-commerce and increasing concentration of wealth in large U.S. metros have corresponded with the loss of more than 20,000 jobs at retailers over the past 12 months. A slowdown in pay growth is another source of concern. Hourly average earnings had been rising at a 3.4% annual rate back in February, significantly above the 3% pace in October. The low unemployment rate and a shortage of qualified workers in many industries have nevertheless failed to accelerate wages across the job market as traditional economy theory would suggest.

FMCSA website lists jobs for 18-20 year olds with military heavy truck experience

WASHINGTON — The Federal Motor Carrier Safety Administration Monday said that it has published a new job opportunities website to help 18-20-year-olds who possess the U.S. military equivalent of a commercial driver’s license find and apply for jobs with interstate trucking companies. Prime Inc., Werner Enterprises and UPS Freight are among the nine carriers which listed job opportunities on the site. “Our country has a shortage of truck drivers. This resource will help military service members translate their training into good-paying jobs safely operating commercial vehicles across the country,” said Transportation Secretary Elaine L. Chao. The website features motor carriers throughout the country who are seeking to hire 18-20-year-old drivers as part of FMCSA’s Under 21 Military Driver Pilot Program, which was revealed in June 2019. Interested service members, reservists, National Guard, active duty or military veterans who possess the equivalent of a CDL can use the job listing resource to learn more about job opportunities that are available with participating motor carriers. The online job opportunities listing page can be found at https://www.fmcsa.dot.gov/under21militaryjobs FMCSA’s pilot program will allow a limited number of individuals between the ages of 18 and 20 to operate large trucks in interstate commerce. During the pilot program, which is scheduled to run for up to three years, the safety records of these drivers will be compared to the records of a control group of drivers to help determine whether age is a critical safety factor. “We are excited to offer this resource to help military service members find jobs in the trucking industry,” said FMCSA Deputy Administrator Jim Mullen. “With our country’s economy growing at record pace, we know motor carriers around the country are looking to hire skilled drivers. We encourage service members, National Guard, and reservists to visit this online directory and look for a trucking job today.” FMCSA’s Under 21 Pilot Program is being launched at a time of sustained job growth for the U.S. economy, Mullen said. The September Department of Labor jobs report indicated that the national unemployment rate has fallen to a 50 year low of 3.5 percent. To learn more about the Under 21 Pilot Program and how to apply, visit https://www.fmcsa.dot.gov/under21pilot/under-21-pilot-program. For complete information on USDOT’s programs to help veterans transition into civilian careers, visit: https://www.transportation.gov/veteranstransportationcareers. 8

U.S. employers add modest 130K jobs in August; for-hire trucking loses 4,500

WASHINGTON  — U.S. employers added a modest 130,000 jobs in August, a sign that hiring in the United States has slowed but remains durable in the face of global economic weakness and President Donald Trump’s trade war with China. The job gain was boosted by the temporary hiring of 25,000 government workers for the 2020 Census. Excluding all government hiring, the economy added just 96,000 jobs in August, the fewest since May. Still, the Labor Department reported Friday in its monthly jobs report that the unemployment rate remained 3.7%, near the lowest level in five decades. And more Americans entered the workforce in August — a positive development that increased the proportion of adults who are either working or seeking work to its highest level since February. In addition, average hourly pay rose 3.2% from a year earlier, outpacing inflation and increasing Americans’ spending power. For-hire trucking lost 4,500 jobs, according to Labor Department statistics. Even with the slower pace of hiring, more jobs and rising pay are expected to help sustain America’s economic recovery, which has entered its 11th year, the longest on record. An improving job market can help fuel consumer spending, the primary driver of growth. And for now, Americans are still spending. Consumer spending rose in the April-June quarter by the most in five years. It had also increased at a healthy clip in July. That is especially significant now because many businesses have cut their spending and delayed expansion and investment given their uncertainty about the duration and impact of the trade war. In addition, retaliatory tariffs from China have cut into U.S. exports. In its employment report Friday, the government revised down its estimate of job growth for June and July by a combined 20,000. That revision reduced average job growth for the past six months to 150,000, down from 223,000 for all of last year. Still, hiring at the current monthly average would be enough to keep up with population growth and lower the unemployment rate over time. For August, the unemployment rate for African-Americans fell to 5.5%, a record low. Trump has repeatedly highlighted that decline, which has been steady since the Great Recession ended in 2009. In August, however, the rate fell because more African-Americans stopped looking for work and were no longer counted as unemployed. Consumers generally feel positive about the economy despite some cautionary signs. Their confidence, as measured by the Conference Board, is still strong. But an index of sentiment compiled by the University of Michigan fell in August by the most in nearly seven years. In that survey, Americans expressed rising concern about the consequences of tariffs. U.S. and Chinese officials plan to meet in early October in negotiations that are intended to resolve their dispute. The announcement Thursday of next month’s resumption of talks helped ignite a rally on Wall Street. The impact of the trade war is evident in industry-specific hiring figures. Manufacturers added just 3,000 jobs, the latest sign their hiring has fallen off sharply from last year. Employment in shipping and warehousing companies was essentially unchanged, with fewer factory and farm goods to transport. Retailers cut 11,000 jobs, the seventh straight month of decline, which is partly a reflection of the impact of online shopping. As the tariffs increasingly take effect, trucking companies could absorb a hit if they have fewer factory and farm goods to ship. And retailers might cut workers as tariffs start to affect such consumer goods as clothes, toys, and electronics. If setbacks in those industries become severe enough, they could eventually raise the unemployment rate.

OIG to audit FMCSA’s oversight of compliance of state CDL programs

WASHINGTON — A fatal traffic accident in Massachusetts involving a tractor trailer has prompted the Office of Inspector General of the Department of Transportation to initiate an audit of the Federal Motor Carrier Safety Administration’s review of state commercial driver’s license programs to determine whether those programs comply with CDL regulations. The OIG Tuesday notified the FMCSA of its intent. The notice said that earlier this year, a fatal crash involving a commercial driver led to an internal investigation by the Massachusetts Registry of Motor Vehicles (RMV) that found that RMV had not systematically processed out-of-state paper notifications of driver convictions in about five years. The OIG said that investigation also identified a software flaw that hindered RMV’s ability to process out-of-state electronic notifications in a timely manner. Consequently, this past summer, RMV issued thousands of CDL suspensions, based on previously unprocessed out-of-state notifications. “Accordingly, our objective for this self-initiated audit is to assess FMCSA’s oversight of state driver’s licensing agencies’ actions to disqualify commercial drivers when warranted,” wrote Barry J. DeWeese, assistant Inspector General for surface transportation audits. “We will begin the audit immediately and coordinate with your audit liaison to schedule an entrance conference. We will conduct our audit at FMCSA.” DeWeese noted that the FMCSA’s primary mission is to reduce crashes, injuries, and fatalities involving large trucks and buses, but said that in recent years, the number of large trucks and buses on the roads has increased. Similarly, he said, according to FMCSA data as of June 2019, fatalities in crashes involving large trucks or buses have grown from 4,455 in 2013 to 4,949 in 2018, an 11% increase. A spokesman for FMCSA said as it always does, the agency would cooperate with the OIG to complete the audit.    

TCA accepting nominations for annual Best Fleets to Drive For contest

ALEXANDRIA, Va. — The Truckload Carriers Association is now accepting nominations for the annual Best Fleets to Drive For in North America competition. TCA officials are encouraging professional truck drivers and independent contractors to nominate the company for which they drive. The annual contest and survey, now in its 12th year, evaluates and identifies those employers who provide exceptional workplace environments within the trucking industry. Visit www.BestFleetsToDriveFor.com before October 31 to make a nomination. By nominating a fleet, a professional truck driver is recognizing the things about the company’s culture that he or she likes, such as outstanding compensation, safety practices, benefits, equipment, training, etc., said TCA President John Lyboldt. If the company accepts the nomination and agrees to participate, the survey then digs deeper into its policies and practices, bringing to light the things it does that are innovative and/or successful. To be eligible, a fleet must operate 10 or more tractor-trailers in the U.S. or Canada. TCA membership is not required. Participants will answer questions about their current human resources practices, both electronically and through phone interviews with senior management and a random sampling of their drivers. The top 20 finishers will be identified as Best Fleets to Drive For and will be announced in January 2020. From this pool, companies will then be divided into both “small” and “large” categories, and two overall winners will be selected. “Every year we update the questionnaire to reflect changes in the industry,” said Jane Jazrawy, chief executive officer at CarriersEdge, which sponsors the contest. “This year, we’re going to be digging deeper into the ways fleets manage their operations and scheduling, and how that factors into performance management and work/life balance.” “I continue to be amazed by the Best Fleets to Drive For winners,” Lyboldt said. “By setting such high standards for their own businesses, these carriers influence the entire industry to provide a better working environment for all employees. I look forward to seeing the innovative practices highlighted through this year’s competition.” The two overall winners will be recognized March 1-3, 2020, at the TCA Annual Convention in Kissimmee, Florida. In late October, companies that have been nominated (or believe they will be nominated) and are considering participating are invited to learn more about the program requirements through a free, interactive webinar. More details will be released as they are finalized, but the event will outline the questions that surveyors will ask, data requirements, and methods for collecting better information more easily. To view best practices from last year’s program as well as profiles of the overall winners, visit www.BestFleetsToDriveFor.com. Follow along with the contest on social media by searching the hashtag #BestFleets20. To view the program’s Facebook page, visit www.facebook.com/BestFleetsToDriveFor.

Ohio’s Scott Woodrome wins top honors at National Truck Driving Championships

PITTSBURGH — Scott Woodrome, a professional truck driver from Middletown, Ohio, representing team FedEx Freight, has been named the Bendix Grand Champion of the 2019 National Truck Driving Championships conducted by the American Trucking Associations. This is Woodrome’s second consecutive year of winning the Bendix Grand Champion trophy. “Congratulations to Scott and his great team at FedEx Freight, as well as the entire Ohio trucking industry, for repeating as this year’s Bendix Grand Champion Award winner,” said ATA President and CEO Chris Spear. “This process began with thousands of drivers competing at the state level, but only one driver can emerge as overall grand champion. It’s a true reflection of Scott’s commitment to safety and the trucking industry as a whole that he was able to take home top honors again this year.” Woodrome, a longtime competitor in truck driving championships with more than 1.8 million lifetime safe driving miles, competed in the Twins division. He has been in the trucking industry for 25 years, spending 13 of those years with FedEx Freight. Woodrome took home the 2018 Bendix Grand Champion Award for his performance in the Tanker class, as well as the 2017 National Champion Award in the Tanker class and six Ohio state championships. “It’s been such an honor to host hundreds of our nation’s elite truck drivers this week and showcase their skills as safe professionals,” said ATA Chairman Barry Pottle, president of Pottle’s Transportation. “From start to finish, Pittsburgh was a great location and we loved to see such enthusiastic support from the families and friends who came out to support these impressive drivers.” ATA also recognized John Sanderson as the 2019 Rookie of the Year. Sanderson claimed the title after an outstanding performance in the three-axle division. To be a “rookie,” drivers must be first-time competitors at the state level who advanced to nationals. This year, there were 32 rookies competing at the National Truck Driving Championships. Sanderson was the only rookie who advanced to the championship round of competition. In addition to the individual awards, the team of drivers from Pennsylvania went home with the Team Championship. Pennsylvania hosted this week’s competition and had three drivers advance to the championship round of competition. The state of North Carolina took home 2nd place honors, with Virginia coming in 3rd place. Several individuals excelled outside the driving course throughout this week’s competition, demonstrating their professionalism, knowledge and dedication to the trucking industry. Professional truck driver Robert Dolan of XPO Logistics was recognized with the highly-coveted Professional Excellence award. Additionally, Jason Imhoff of Walmart Transportation is taking home the Vehicle Condition Award for his outstanding performance during the pre-trip inspections. Nine drivers achieved perfect scores on the written exam phase of the championships and are receiving the Highest Written Exam Award for their efforts. The nine drivers were Paul Brandon, Miguel Corral, Ina Daly, Brent Glasenapp, Julie Hjelle, Barry Kraemer, Jottyn Santos, Jimmie Wisley and Scott Woodrome. Champions from each of the nine vehicle classes were also announced. Joining Woodrome on the list of national champions include (listed in order of first, second and third with company and home state): Three-axle: Brian Walker, UPS Freight, North Carolina; Jeffrey Slaten, YRC Freight, Florida; and John Sanderson, FedEx Express, Oregon Four axle: Adam Heim, FedEx Freight, Idaho; David Rohman, FedEx Express, North Carolina; and James Plaxco, Old Dominion Freight Line, Oregon; Five axle: David Hall, ABF Freight, Arkansas; Ina Daly, XPO Logistics, Arizona; and Alphonso Lewis, YRC Freight, Alabama. Flatbed: Basher Pierce, FedEx Freight, North Carolina; Scott Osborne, FedEx Freight, Mississippi; and Eric Flick, FedEx Freight, Nevada. Sleeper Berth: Mike White, Walmart Transportation, Indiana; Terry Wood, Walmart Transportation, Pennsylvania; and Michael Barnes, Walmart Transportation, Virginia. Straight Truck: Jason Imhoff; Walmart Transportation, Ohio; Robert Dolan, XPO Logistics, Pennsylvania; and Matthew Hart, FedEx Freight, Nevada Tank Truck: Paul Brandon, FedEx Freight, Connecticut; George Wells, Shamrock Foods, Arizona; and Cecil Hicks, FedEx Freight, North Carolina Twins: Scott Woodrome, FedEx Freight, Ohio; David Mogler, FedEx Freight, Colorado; and Shannon Lynch, United Parcel Service, Indiana Step Van: Adam Stroup, FedEx Express, Nebraska; Gregory Long, FedEx Express, Virginia; and Eric Damon, FedEx Express, Colorado. ACT 1 served as a premier sponsor of the 2019 National Truck Driving Championships and National Step Van Driving Championships. Since 2011, Bendix Commercial Vehicle Systems has been the sole sponsor of the Bendix National Truck Driving Championships Grand Champion.

U.S. employers add 164,000 jobs in July, for-hire trucking hiring up 2,000

WASHINGTON — U.S. employers slowed their hiring in July, adding a still-healthy 164,000 jobs to an economy that appears poised to extend its decade-plus expansion. The unemployment rate remained at 3.7% for a second straight month, the Labor Department reported Friday. Average hourly earnings increased 3.2% from a year ago, up from annual gains of 3% in June. The pace of hiring has slowed this year as a growing share of Americans already have jobs. The three-month average for job gains was 140,000, down from 237,000 a year ago. For-hire trucking added 2,000 jobs in July and has added 8,000 since March, according to the Bureau of Labor Statistics. The U.S. economy has faced some tumult as President Donald Trump has escalated his trade conflict with China, yet the Federal Reserve voted Wednesday to cut a short-term interest rate to sustain the longest period of growth in U.S. history. The economy’s overall growth, along with consumer spending, has been solid. But business investment has been declining, home sales have weakened and manufacturers have shown signs of struggling. Despite the economy’s resilience, the Federal Reserve on Wednesday cut its benchmark interest rate for the first time in a decade to try to counter the impact of President Donald Trump’s trade wars, stubbornly low inflation and global weakness. On Thursday, Trump announced plans to tax an additional $300 billion of Chinese imports beginning in September. Though it is growing consistently, the economy appears to be sliding into a slower phase. The gross domestic product — the total output of goods and services produced in the United States — grew at a decent if unspectacular 2.1% annual rate in the April-June quarter, down from a 3.1% pace in the January-March period. Consumer spending increased at a 4.3% annual rate and helped propel much of the growth. But business capital investment declined for the first time in three years, a likely sign that Trump’s aggressive use of tariffs against China and other countries has slowed corporations’ expansion plans. Pay gains also appear to have stalled, even though lower unemployment has historically boosted worker pay. Wages and benefits have risen 2.7% over the past 12 months, down slightly from the 2.9% gain for last year, the Labor Department said. Home sales have fallen as high prices have kept many people out despite the benefits of low mortgage rates and job gains. Sales of existing homes have tumbled 2.2% over the past 12 months, according to the National Association of Realtors. Factories have also been coping with a slowdown. In part, that’s because the global economy has weakened and the president’s tariffs on hundreds of billions of dollars’ worth of goods — and threats to add more — have disrupted supply chains. The Fed said this month that manufacturing output has improved just 0.4% from a year ago after having declined over the past six months. There are signs, though, that consumers are optimistic. The Conference Board’s index of consumer confidence last month reached its best reading since November. A higher percentage of Americans anticipate pay raises in the next six months. Indeed, spending at restaurants and bars has increased 4.2% year-to-date, according to government reports. And while traditional store retailers have faced hardships, online stores have prospered: Non-store retailers have enjoyed a 10.6% jump in sales.

Payin Marfo of Ghana jumped at the chance to help form an all-female team of oil haulers

Anyone who’s been to Disney World may have heard a saccharine song with the refrain, “It’s a small world, after all.” In trucking, however, it turns out to be true and genuinely sweet, especially if you’re a young woman who lives in western Ghana and likes a challenge. Payin Marfo is that young woman, and in addition to being managing director of the trucking company Ladybird Logistics, Ltd., which employs an all-female driving force of 21 “and counting,” she’s also Women In Trucking’s January Member of the Month. Marfo got into trucking purely by accident. Some might say by divine appointment. Holding an MBA in international management and certified as a project management professional, Marfo previously worked in the oil and gas industry and the only time she was around trucks was when she went on field visits as a staff member for Shell Oil. Then in November 2017 she bumped into an old Shell colleague, Douglas McArthur, who introduced her to William Tewiah, CEO of Zen Petroleum Limited. Tewiah and his friend Yaw Koduah Sarpon had the dream of starting an all-female logistics company in the oil sector and believed Marfo was the one to head up such a company. They were right — Marfo was up for a challenge and hungry for a change. “To be successful you need God and people around to help,” she said, and help was closer than she imagined. After advertising for female truck drivers and only getting one taker, Marfo’s mother got in touch with a male bus driver she went to church with who got Marfo in touch with some female bus drivers who were ready to make the switch driving a truck. “The idea of driving trucks appealed to most of them and they were willing to make the Ladybird dream a reality,” Marfo said, adding that although she knew “next to nothing about trucks or the logistics industry,” she has “a passion for empowering women. This opportunity appealed to me purely because the idea was radical and challenging.” She’s quick to add that it also took the help of numerous individuals and organizations including the Ghana Armed Forces Mechanical Transport Academy, who helped with training, truck maker Scania, which helped on a number of fronts including advertising for female truck drivers, the West Africa Training Academy, and members of the Zen Petroleum team. Numerous women who drove for Metro Mass, a Ghana bus company, proved to be interested in hauling petroleum, but they had a lot of questions going forward. “This is when I realized the need for me personally to engage and convince the ladies,” said Marfo, who met personally with prospective drivers in March 2018 along with Tewiah. She also searched online for information on female truck drivers and best practices for logistics carriers, and saw information about Women In Trucking. She emailed WIT President and CEO Ellen Voie and said Ladybird has been a WIT member since April 2018. She also went to WIT’s Accelerate conference last year in Dallas. “She heard about us on the internet and she attended our conference in November; she is amazing,” Voie said. Ladybird Logistics operates in the city of Takoradi, in western Ghana and Marfo said they also have office space in Accra, Ghana’s capitol. CNN got wind of Ladybird because the news organization heard the carrier had drastically cut down on the amount of fuel theft in Ghana, which had been running a half million dollars in losses a year. They interviewed Marfo, who said the women drivers had been instilled with “professionalism, integrity and teamwork” and received training from Ghana’s Army. Ghana, Marfo told The Trucker, is the 13th largest oil producer in Africa and the 47th largest oil producer in the world. The Jubilee oil field, which was discovered in 2007, came on line in 2010. Ghana now produces 59,000 barrels a day from Jubilee field, which has about 3 billion barrels of reserves, she said. Although driving a truck is a new experience for Ladybird’s team, “they feel good to be part of the team of female drivers charting a new path for others,” Marfo said, adding that Ladybird pays its drivers well and a little over the industry standard. Currently, she said the women are only hauling oil in western Ghana but “our growth plans include other regions.” “Always remember you are making history, she says to her drivers. “You have a responsibility not to disappoint all who believed in you as well as the future generation of female truck drivers looking up to you to change the status quo,” she told WIT, adding that “The future just started, and by God’s grace we shall shape it nicely for future generations of females who love trucks, logistics, driving, challenges and the joy of delivering good quality products to clients on time and with a smile.” She told The Trucker that rather being daunted by the prospect of starting a company of all-female truck drivers, “I approached this as I will any other project: I start knowing that with God all things are possible, and I follow through with hard work, determination and passion.”

What women want: home time, good pay and training, plus a mentor to help ease the way.

We’ve all heard this second part of an old nursery rhyme: What are little girls made of?What are little girls made of?Sugar and spiceAnd everything nice, That’s what little girls are made of. Let’s throw out that stereotype and start fresh. Because although women make up around 50 percent of the population, they make up only just shy of 7 percent of truck drivers — 5-6 percent if we’re talking owner-operators says OOIDA — and far too few women hold board and management positions at trucking carriers and other trucking-related businesses. It’s not that trucking hasn’t made great strides in bringing women into the industry. After all, professional women drivers who were industry pioneers remember when there were no restroom facilities for women and women truckers were an anomaly on the road. Goldie Seymour, National Carrier Inc.’s 2014 Driver of the Year and their first woman to earn the title, said, “When I first started, females didn’t drive. You just didn’t see women on the road” as truck drivers. “I can remember when you took a shower, you had to make someone stand guard because the showers were in the men’s restrooms.” Women drivers also had to put up with lewd comments on the CB and were told to go back to the kitchen where they belonged. So trucking has come a long way, baby. But there’s still a long way to go, and it can’t happen soon enough with truck turnover at 95 percent or higher for large carriers and 84 percent or higher for small truckload carriers. Not to mention that the American Trucking Associations is pegging the driver shortage at 50,000 with the potential to rise to 174,000 by 2024. “Granted, we have to do better at attracting women to the industry,” said David Heller, the Truckload Carriers Association’s vice president of legislative affairs. “But we might as well ask where are all the drivers, period, as where are all the women drivers,” he said. “There’s no magic bullet.” Part of it is “overcoming stereotypes, I think. You talk about drivers and you’re just used to saying he or him, not she or her; you catch yourself. The question of where all the drivers are is now gender neutral. “It’s a whole new horizon for our industry,” he said, adding that perhaps the same things that attract younger drivers, such as technology-laden truck cabs and more creature comforts, will attract more women as well. The biggest reason more women aren’t in the industry is that trucking’s image is still that of an all-male job, said Ellen Voie, president and CEO of Women In Trucking (WIT) and herself a CDL holder. “Women just don’t look at the industry as being for them. They see a truck and don’t know anything about it. There’s no connection between that gallon of milk and the driver on the road.” Trucking’s got to do a better job with that, Voie said, and toward that end she’s come up with a series of dolls dressed in uniforms depicting various trucking-related jobs and not surprisingly, a truck driver is the first one to be presented this spring. You’ll hear many in the trucking industry talking about a “culture of safety.” What about creating a culture that attracts and retains females — drivers, dock workers and middle and senior level administrators? A. Duie Pyle Chief Operating Officer Randy Swart, said the LTL carrier, which also offers specialized truckload services through their brokerage and TL solutions, hasn’t focused on hiring women, per se. But, “It’s more that of a culture. Our culture and processes in general have resulted in that.” The thing is, he added, is that Pyle promotes people of both sexes from within and gives them the training and opportunity to move up the corporate ladder. Specifically, he said, the carrier recognizes “discretionary effort,” that is, employees who go above and beyond the norm. These men and women aren’t forced out of a job they love but are given the opportunity and training to move up if they choose. Having women in leadership and visible helps drivers see women at the top who would understand them, said Voie. In WIT’s constantly updated index of publicly traded companies, some carriers have no women in leadership or on their boards, which Voie said she found “amazing” in this day and age. As Swart mentioned, however, not all women drivers want to move up the corporate ladder. What attracts them to trucking is what attracts many of their male counterparts: They want the freedom of the open road and they want a good, reliable paycheck. Your average female driver is already in her 50s, Voie noted. “A lot of them don’t want an office position; they love being on the road.” Women want the same things as men, really, said Garner Trucking President and CEO Sherri Garner Brumbaugh: More home time and time with their children. Since women are usually the designated care-giver when it comes to children, it becomes a juggling act. Garner Trucking, Inc. has answered that problem by offering both men and women drivers four days home and four days on the road. More frequently, she added, male drivers want more time with their children, and it’s “hard to argue with that.” The most successful driver, male or female, has to have a strong support system at home, Brumbaugh noted. With a woman driver, “the spouse has to be comfortable with the wife out driving a truck” she said. Research by the U.S. Department of Labor has found that the younger the children at home, the greater the challenge of the mother working away from home. Take the days and weeks truck drivers spend on the road and the problem for female drivers multiplies exponentially. Truck driver Deb Bosworth, a charter member of WIT said: “Women say, ‘I couldn’t do that,’ and I say, ‘sure you could. You just need the right training. But if you want to be home every night, it’s probably not for you.’” Do women need to be trained differently than men? No, but they appreciate having a woman trainer and they also want a mentor. That’s what a Best Practices Survey commissioned for WIT found out.

Study notes significant increase in pace of carrier pay increases

KANSAS CITY, Mo. — The National Transportation Institute (NTI), which following compensation trends in the trucking industry, says it has noticed a significant change in the pace of pay moves by carriers and historic mileage pay rates within the findings shared in its National Survey of Driver Wages report (NSDW) for the first quarter of 2019. Featuring a process that includes proprietary research tracking more than 70 unique attributes, the NSDW is distributed exclusively to NTI subscribers. In its quarterly study of key driver compensation categories for over-the-road and regional fleets, NTI said it found that, while the acceleration of pay moves has decreased, the pay changes that were made do rank as substantial. According to NTI, the trends from first quarter of 2019 point to the continued difficulty in attracting and keeping highly qualified drivers. Those findings make note that the industry is reaching unchartered territory in the area of mileage pay, with rates of up to 65 cents per mile for solo drivers. “Our subscribers tell us that, while freight has dropped and driver churn has increased, the need to monitor driver pay attributes that produce desired outcomes remains especially high,” said NTI COO Leah Shaver. “Some of these outcomes include referrals, safe, productive driving and fair compensation for down time. We’re in a market with near full employment, and driver expectations are raised after a record year in 2018. In these conditions, the driver situation changes rapidly.” The NSDW also reports on trends related to guaranteed pay and sign-on bonuses. While the sign-on bonus continues to hold a traditional spot in the driver recruiting toolbox, the first quarter NSDW notes that some recruiters are beginning to take the viewpoint that guaranteed pay and transition bonuses are a better reflection of a driver’s value. “Our observation is that in first the size of signing bonuses continues to decrease, although the number of carriers offering bonuses continues to remain fairly high. At the same time, carriers that are utilizing some form of guaranteed pay are seeing a positive impact on turnover and hiring,” said NTI CEO and founder Gordon Klemp. The 2019 Q1 National Survey of Driver Wages report is available through a subscription. To learn more about the report and how to subscribe, visit DriverWages.com.

Tax Cuts and Jobs Act had positive impact on owner-operators

LAKEWOOD, Colo. — Preliminary data based on over 3,000 tax returns indicate that the Tax Cuts and Jobs Act had an overall positive impact on owner-operators in the trucking industry, according to American Truck Business Services (ATBS). ATBS has observed the following statistics related to how owner-operators fared on 2018 taxes. First, the average owner-operator’s taxable adjusted gross income (AGI) went from $43,093 in 2017 to $52,180 in 2018. This was an increase of $9,087 or 21%. The increase was predominantly related to a booming year in the transportation industry. During the same time, the average owner-operator total tax liability went from $8,242 (2017) to $9,284 (2018). This was a much smaller increase of $1,042 or 12.6%. The overall effective tax rate for owner-operators went from 19.1% (2017) to 17.8% (2018) or a reduction of 1.3%. The net result is that owner-operator taxable income increased 21% while actual tax liability increased only 12.6%. Following are some of the specific reasons for the reduction in owner-operator tax liability. 68% of ATBS owner-operator clients took advantage of the qualified business income education with an average of $6,235 being deducted from their tax liability. This was a new deduction for 2018 as a result of the Tax Cuts and Jobs Act. The average client’s standard deduction went from $9,439 to $18,862. The number of drivers filing the standard deduction increased from 71% to 94%. The Tax Cuts and Jobs Act essentially doubled the standard deduction for most tax filers. The average owner-operator depreciation deduction increased from $17,072 (2017) to $20,965 (2018). The significant increase in depreciation was a result of the Tax Cuts and Jobs Act allowing faster depreciation methods than prior years. The only negative consequence of 2018 taxes was the number of drivers that paid the Affordable Care Act’s individual mandate penalty. In 2018, 28% of ATBS clients paid the penalty with an average penalty amount of $1,027. However, this mandate will no longer be in effect for 2019 taxes. Overall, statistics from ATBS show that owner-operator clients enjoyed a mostly positive impact from the changes that came with the Tax Cuts and Jobs Act. American Truck Business Services is the largest tax, consulting and bookkeeping firm in the transportation industry with over 20 years of experience working with owner-operators and independent contractors. For more information, visit www.ATBS.com .