Transport Topics: Recent Episodes
Transport Topics
Listen to a quick daily rundown of all of the information you need to succeed in the fast-paced business world of trucking and freight transportation.
Transport Topics is the news leader in trucking and freight transportation. Today’s daily briefing includes news about expected demand for Class 8 trucks, a California bill that would require a human driver behind the wheel of autonomous trucks, and an update to tolling on the Kansas Turnpike. Learn more about your ad choices. Visit megaphone.fm/adchoices
Transport Topics is the news leader in trucking and freight transportation. Today’s daily briefing includes news about Alvin Brown’s nomination to the NTSB, defects found in Union Pacific locomotives and railcars, and groundbreaking for an expanded biodiesel facility in Illinois. Learn more about your ad choices. Visit megaphone.fm/adchoices
Transport Topics is the news leader in trucking and freight transportation. Today’s daily briefing includes news about a collaboration involving Daimler, Paccar and Accelera by Cummins, the Jacksonville Port Authority making a sizable equipment investment and Canadian startup eLeapPower’s plans for the medium-duty battery-electric truck market in North America. Learn more about your ad choices. Visit megaphone.fm/adchoices
Transport Topics is the news leader in trucking and freight transportation. Today’s daily briefing includes news about a review of the federal motor carrier fitness rating system, a push for alternatives to electric trucks when it comes to reducing emissions and the number of traffic fatalities in the first half of the year. Learn more about your ad choices. Visit megaphone.fm/adchoices
Transport Topics is the news leader in trucking and freight transportation. Today’s daily briefing includes news about emergency waivers for truckers in Florida as Hurricane Idalia bears down, Tesla being in hot water with the National Highway Traffic Safety Administration over its Autopilot feature and a look at the consumer confidence level as August comes to a close. Learn more about your ad choices. Visit megaphone.fm/adchoices
Transport Topics is the news leader in trucking and freight transportation. Today’s daily briefing includes news about how Florida’s fuel supplies are getting squeezed, a tire recall from Yokohama and a look at cargo securement. Learn more about your ad choices. Visit megaphone.fm/adchoices
Transport Topics is the news leader in trucking and freight transportation. Today’s daily briefing includes news on a union strike authorization, an upgraded test track facility and the release of our latest Top 100 rankings. Learn more about your ad choices. Visit megaphone.fm/adchoices
Transport Topics is the news leader in trucking and freight transportation. Today’s daily briefing includes news on cargo freight volume for July, a new age requirement for Uber drivers in California, and a drone delivery service that is spreading its wings. Learn more about your ad choices. Visit megaphone.fm/adchoices
Transport Topics is the news leader in trucking and freight transportation. Today’s daily briefing includes news on an acquisition of a logistics company, an appeal of a nuclear verdict, and a new electric truck rolling off an assembly line. Learn more about your ad choices. Visit megaphone.fm/adchoices
Transport Topics is the news leader in trucking and freight transportation. Today’s daily briefing includes news on the UPS labor deal, truck tonnage data for July and concerns over the Kroger-Albertsons merger. Learn more about your ad choices. Visit megaphone.fm/adchoices
Transport Topics is the news leader in trucking and freight transportation. Today’s daily briefing includes news on CDL tests in Pennsylvania, staged accidents in New Orleans and a record for the Port of Baltimore. Learn more about your ad choices. Visit megaphone.fm/adchoices
Georgia’s reinstatement this year of motor fuel taxes helped the state collect 13.1% more revenue to reach nearly $2.5 billion in July compared with the previous year. Gov. Brian Kemp’s office announced Aug. 10 that the double-digit increase for that month was mainly due to reinstating the state’s motor fuel excise tax. Kemp’s announcement noted the state had suspended fuel tax collection from March 18, 2022, through Jan. 11, 2023. The latest taxation figures show motor fuel tax collections in July reached $179.5 million, making up 62% of total taxes collected that month. Learn more about your ad choices. Visit megaphone.fm/adchoices
Estes Express Lines is first in line to buy the terminals, tractors and trailers of bankrupt less-than-truckload rival Yellow Corp. after agreeing to submit a $1.3 billion stalking horse bid, a court heard Aug. 17. Richmond-Va.-based Estes will not, however, provide a $230 million loan to Yellow, as was under discussion the last time the U.S. Bankruptcy Court–District of Delaware heard from lawyers representing Yellow, its shareholders and creditors on Aug. 11. Learn more about your ad choices. Visit megaphone.fm/adchoices
An affiliate of the investment firm Citadel has acquired roughly $485 million in Yellow Corp. debt previously owned by Apollo Global Management Inc. and other senior lenders to the bankrupt trucking firm, according to a person familiar with the matter. The deal comes as Yellow seeks to secure a bankruptcy loan to fund its liquidation. Learn more about your ad choices. Visit megaphone.fm/adchoices
U.S. retail sales for medium-duty trucks grew 10.9% in July compared with the year-ago period, according to data from Wards Intelligence. Total retail sales for Class 4 through Class 7 trucks increased to 19,618 units from 17,682 units, marking the fourth consecutive month showing a gain from the prior year. Freightliner sold the most Class 7 trucks at 1,909 units. It also sold the most in Class 6 at 1,637. Ford sold the most in Class 5 at 3,800 units while Isuzu led the pack in Class 4 with 889 units sold. Learn more about your ad choices. Visit megaphone.fm/adchoices
Nikola Corp. will recall trucks and temporarily stop sales after several battery fires. The company will call back roughly 209 of its Tre trucks after a third-party investigator found a coolant leak was likely behind a blaze at the company’s Phoenix headquarters in June. While Nikola said its vehicles can remain in operation, it advised customers and dealers to park outside until a fix is ready in the coming weeks. Learn more about your ad choices. Visit megaphone.fm/adchoices
Yellow Corp. continues to work with potential financiers, including rival Estes Express Lines, that are offering alternative bankruptcy financing for the less-than-truckload company that’s more affordable than a loan from lenders led by Apollo Global Management. Yellow lawyer Patrick Nash said Aug. 11 during a court hearing that funders are offering to provide a Chapter 11 loan to the company with payment priority behind Apollo and other lenders. Nash said Yellow expects to finalize a Chapter 11 loan this week. Its next appearance in bankruptcy court is scheduled for Aug. 15. Learn more about your ad choices. Visit megaphone.fm/adchoices
Forward Air Corp. and Omni Logistics announced Aug. 10 that they have entered into a definitive agreement to combine in a cash-and-stock transaction. Forward said the combined company will create a scaled, premier and high-value less-than-truckload enterprise focused on providing customers with multimodal service for complex, high-service and high-value freight needs. The board of directors at both companies have approved the transaction. It is subject to regulatory approvals and the satisfaction of other customary closing conditions but is expected to close this year.
The Federal Railroad Administration released a 143-page report on railroad Norfolk Southern’s safety culture Aug. 9. The agency has worked on the report since thousands of people had to evacuate their homes after the East Palestine, Ohio, derailment in February. Though the report acknowledged the railroad has made improvements, poor communication and mistrust between employees and managers are hindering Norfolk Southern’s efforts to improve safety, the agency said. Railroad CEO Alan Shaw said the company is working to address the report’s findings.
UPS Inc. executives said Aug. 8 that second-quarter profits decreased year-over-year for the parcel carrier as it lost more business to rivals than expected because of the uncertainty surrounding high-profile labor negotiations with the Teamsters union. The Atlanta-based company reported net income of $2.08 billion in the three months that ended June 30, compared with a profit of $2.19 billion in the same period a year earlier. UPS cut its full-year 2023 revenue guidance to $93 billion from $97 billion, Chief Financial Officer Brian Newman said. The carrier posted consolidated revenues of $22.1 billion, compared with $24.8 billion in the second quarter of 2022.
Yellow Corp. on Aug. 7 announced it was seeking Chapter 11 bankruptcy protection and entering into an agreement that would secure sufficient financing for the nearly 100-year-old company to wind down operations. Yellow will seek to restructure its estimated $1.5 billion in debt, which includes more than $700 million owed to the U.S. government. The company’s operation includes 300 facilities, a fleet of more than 12,500 trucks and 42,000 trailers.
XPO saw second-quarter net income and revenue decline, but the company sees momentum headed into the third quarter. The less-than-truckload carrier on Aug. 4 reported that Q2 net income fell to $33 million, or 28 cents per share, compared with $141 million, $1.23, a year ago. XPO said Q2 net revenue declined 6% to $1.92 billion compared with $2.05 billion a year ago, but noted that revenue inched up 1% compared with Q1 and is showing positive trends early in the third quarter.
Schneider announced that it is acquiring dedicated contract carrier M&M Transport Services. Based in West Bridgewater, Mass., M&M primarily offers specialty services for the retail and manufacturing customers, Schneider said in an Aug. 2 release. M&M has 500 trucks and 1,900 trailers across 12 U.S. locations in the Northeast, Midwest and Southwest. M&M Transport will operate as a wholly owned subsidiary of Green Bay, Wis.-based Schneider.
Nikola began production of the Tre hydrogen fuel cell electric truck July 31 at its Coolidge, Ariz., factory, the company said. Phoenix-based Nikola paused production at the Coolidge complex in late May for a retooling. Previously, the plant manufactured Tre battery-electric trucks. When announcing the company’s first-quarter 2023 earnings May 9, Nikola said BETs would only be available on a “build-to-order” basis henceforth and its efforts would now be focused on fuel cell electric vehicles.
Local union leaders voted in favor of a tentative labor agreement that UPS Inc. and the International Brotherhood of Teamsters reached July 25, an important step forward in finalizing a five-year deal that covers about 340,000 full- and part-time workers at the Atlanta-based parcel carrier. The local unions on July 31 voted 160-1 in favor of the pact, and recommended it to the full membership for a vote later this month.
Less-than-truckload company Yellow Corp. on July 30 shut down operations, ending a nearly 100-year history as one of the nation’s largest carriers, and the company began posting notices at terminals. The statement instructed union employees to contact their representative with the Teamsters union.
Walmart looked in-house to see who might want to learn how to drive a big rig for the retail giant. Walmart dangled first-year truck driver salaries of up to $110,000 and a 12-week training program for its Walmart and Sam’s Club store and warehouse workers. The first class with former retail employees graduated July 28 from a training center in Walmart’s Sanger distribution center in Denton County, Texas.
A Mexico border crossing in Texas for commercial truck traffic will reopen Aug. 7 after activity was suspended in May 2017. The Marcelino Serna Port of Entry in Tornillo, which is about 17 miles east of El Paso, is expected to see about 300 trucks weekly. At first, the cargo facility will operate Monday through Friday from 10 a.m. to 4 p.m., but hours may change depending on demand, according to the U.S. Customs and Border Protection.
American Association of Port Authorities CEO Chris Connor announced he is retiring effective Oct. 1. Connor, 65, took over the post in the fall of 2019. He guided the organization through the supply chain tumult brought on by the COVID-19 pandemic and then the ensuing recovery. Before joining AAPA, Connor served in a variety of capacities in the maritime and shipping industries, including as the global CEO of Wallenius Wilhelmsen Logistics in Oslo, Norway.
UPS and the Teamsters union on July 25 reached a tentative five-year collective bargaining agreement that covers more than 340,000 workers, the company and the union announced in separate statements. The deal, which must now be ratified by the rank-and-file membership, staved off the possibility of a nationwide strike. A work stoppage by UPS workers threatened to wreak havoc on the economy. The union had voted to strike if a new contract wasn’t in place by the July 31 end date of the most recent agreement.
Based on comments provided to a federal registry, many truckers believe a proposal to require side underride guards on heavy trucks needs more research, data collection and real-world testing. About 2,000 parties filed comments on the National Highway Transportation Safety Administration proposal, with many questioning whether the costs are worth the benefits.
Truck maker Nikola agreed to sell its Phoenix Hydrogen Hub project to partner Fortescue Future Industries for $24 million, the companies said. Nikola teamed up with Australia-based FFI to develop the Buckeye, Ariz., project, with a memorandum of understanding signed in January. FFI has the funds and resources required to fully develop the green hydrogen project, Nikola said, and the companies are working on a fuel supply deal for Nikola’s Class 8 trucks.
UPS Inc. and the International Brotherhood of Teamsters jointly announced July 19 that negotiations between the two sides for a new labor contract for unionized workers will resume the week of July 24. No specific date or location has been announced, but the two sides said decisions on those details will be made soon. The high-profile negotiations broke down on the morning of July 5 after several days of productive talks.
U.S. medium-duty truck retail sales increased 22.7% in June compared with the year-ago period, according to Wards Intelligence data. Retail sales of Classes 4-7 trucks rose to 21,924 in June from 17,866 in June 2022, in what was the third consecutive month to see a year-over-year increase and the fourth overall in 2023. Sales also climbed marginally on a month-on-month basis, with 21,687 units sold in May.
A new study by the U.S. Chamber of Commerce Institute for Legal Reform found that trucking in America is “under siege by litigation.” A review of 154 trucking litigation verdicts and settlements from June 2020 to April 2023 revealed a statistical mean plaintiffs’ award of $27.5 million and a statistical median award of $759,875 for settlements.
The transportation funding committee in the U.S. House of Representatives will consider a fiscal 2024 transportation bill July 18. The bill, which would dedicate $90.2 billion for the departments of Transportation and Housing and Urban Development, was advanced by a subcommittee last week. The measure would provide $891.3 million for the Federal Motor Carrier Safety Administration, an agency tasked with regulating commercial trucks and buses.
UPS Inc. plans to train nonunion employees to help deliver packages in the event of a labor disruption in the U.S., underscoring the potential for a strike as a crucial negotiating deadline nears. The training sessions in the coming weeks won’t affect negotiations with the International Brotherhood of Teamsters or have an impact on operations, UPS said in a statement July 14. UPS is negotiating with the union, which represents about 340,000 UPS workers, to renew a five-year contract that expires at the end of this month and could lead to a potential strike on Aug. 1 if a deal can’t be reached.
U.S. Class 8 retail sales rose 7.7 percent in June compared with the year-ago period. Sales dipped slightly from May, totaling 24,085 units. Daimler Truck’s Freightliner brand sold 8,991 trucks in June, the largest market share for the month, accounting for 37.3 percent of all sales in June.. Western Star saw the largest year-over-year sales increase, jumping 62.7 percent when compared to June 2022.
The West Coast’s growing demand for renewable diesel and biodiesel fuel will drive petroleum diesel usage there next year to the lowest level in more than two decades, according to the U.S. Energy Information Administration. From January through April this year, diesel consumption in California, Washington and Oregon dropped to about 400,000 barrels per day, down from 450,000 barrels per day in 2000. Biofuels have become alternatives to diesel and are helping meet emission requirements set by California, Oregon and Washington. The EIA pointed out, however, that in the rest of the country, diesel consumption has risen to pre-pandemic levels.
During an event on July 11 in Boston, Daimler Truck reported second-quarter sales gains across its business units and boosted full-year guidance based on the strength of global sales across the first half of the year. It also said it was launching a share buyback program for its investors. In a release, Daimler reported year-over-year Q2 gains for Daimler Truck North America, Daimler Buses, Daimler’s Asia division, and Mercedes-Benz. For DTNA, Daimler raised its full-year sales growth forecast to a range of 11% to 13%, up from a previous range of 10% to 12%.
Industry analysts said the potential for a strike by UPS workers if a new labor agreement isn’t reached with the International Brotherhood of Teamsters holds significant implications across the supply chain. The contract for 340,000 unionized UPS workers expires July 31, and the Teamsters have said members will not work under a contract extension. Talks are at a standstill. On a daily basis, UPS moves an estimated 25 million parcels, which accounts for 6% of the nation’s gross domestic product.
The U.S. government reported July 6 that the country added 209,000 jobs in June, a sign that the economy’s resilience is confounding the Federal Reserve’s drive to slow growth and inflation. There was no significant change in truck transportation jobs from May to June. The June hiring figure is the smallest in 2 1/2 years but is still a sign of economic strength, and makes it all but certain that the Fed will resume its interest rate hikes later this month after having ended a streak of 10 rate increases intended to slow inflation in mid-June.
The California Air Resources Board and the Truck and Engine Manufacturers Association have come to an agreement regarding the state’s planned phasing out of diesel-emitting big rigs. As part of the pact, CARB agreed to relax current nitrogen oxide pollution regulations to align with federal standards. Manufacturers were also promised more time to meet new requirements and additional protections for legacy engines. These assurances were made on the condition that manufacturers would eventually satisfy the state’s zero-emission vehicle targets and air pollution curbs.
Face-to-face negotiations on a new labor deal between UPS Inc. and the International Brotherhood of Teamsters stalled July 5 after showing promise over the weekend, renewing concern that workers represented by the union could strike at the end of the month if a final agreement is not reached. “We have nearly a month left to negotiate. We have not walked away, and the union has a responsibility to remain at the table,” UPS said in a statement. The union said in a tweet that it was the parcel carrier that had left the negotiating table. The latest breakdown in talks is probably over pay. UPS has a tier of drivers who earn a lower hourly wage and receive fewer benefits than full-time drivers. The union has vowed since the tier was implemented in 2018 to remove it in the next contract cycle.
An 18-state coalition is backing the Environmental Protection Agency in a legal action asking for rejection of a challenge by 19 states that contend California’s future strict emission controls will negatively impact the trucking industry. California Gov. Gavin Newsom announced with other state officials the June 28 filing in the U.S. District Court of Appeals in the District of Columbia. The legal maneuver is intended to counter lawsuits against EPA for authorizing its regulations to speed adoption of California’s zero-emission laws for medium- and heavy-duty trucks.
Senior transportation policymakers are calling for passage of several big-picture supply chain-centric bills with the congressional August recess approaching. A bill recently introduced in the Senate meant to improve freight rail connectivity is the latest in this series of measures awaiting consideration in Congress. The Reliable Rail Service Act, sponsored by Tammy Baldwin, a Wisconsin Democrat, and Roger Marshall, a Kansas Republican, would pursue certain updates to operations at the Surface Transportation Board. Doing so, the sponsors insisted, would promote reliability across the freight rail network.
Legislation that would reauthorize the Diesel Emissions Reduction Act through fiscal 2029 was recently introduced in the Senate. Tom Carper (D-Del.), chairman of the Environment and Public Works Committee, is the bill’s lead sponsor. He explained the legislation is designed to promote health benefits by improving air quality nationwide. Administered by the U.S. Environmental Protection Agency, the DERA program is backed by federal grants. “Since its implementation in 2005, the Diesel Emissions Reduction Act has been one of our nation’s most cost-effective tools for reducing diesel emissions,” Carper said June 22.
Pennsylvania Motor Truck Association and four trucking company members are suing two commonwealth agencies over the automatic adoption of California heavy-truck emission standards, contending only their legislators can create state laws. PMTA President Rebecca Oyler said, “The trucking industry and PMTA members in Pennsylvania have no control over — or even input into — these regulations because they’re from California. The cost increases our members are facing will make it difficult for them to upgrade to new, cleaner trucks.”
The Federal Motor Carrier Safety Administration is seeking approval from the Office of Management and Budget to conduct a human-factors study that will examine driver behavior in commercial motor vehicles equipped with L-2 advanced driver-assistance systems and L-3 automated driving systems.
Volvo Trucks North America is working with the University of Minnesota and two fleet owners on extreme weather testing of the manufacturer’s Class 8 VNR Electric model to analyze the impact of ambient temperature on battery life, the company said June 22. Murphy Logistics Solutions will test the battery-electric trucks in Minnesota in cold winter temperatures, and H-E-B Grocery Co. in Texas will do the same in periods of intense summer heat, Volvo said.
The National Highway Traffic Safety Administration and Federal Motor Carrier Safety Administration have announced a joint proposed rule that would require heavy trucks to have automatic emergency braking systems aimed at mitigating the frequency and severity of rear-end crashes. The proposal, issued June 22 in response to petitions granted in 2015 to several safety groups and a congressional mandate under the Bipartisan Infrastructure Law, also would require that vehicles weighing more than 10,000 pounds have an electronic stability control system to work in unison with the AEB system.
Native Hawaiian women are enthusiastic about an innovative Oahu-based program starting soon to train them to become truck drivers with new, well-paying career opportunities. The commercial driver license program, scheduled to start July 1, is billed as the first all-women training program specifically for wahine, as Polynesian (especially Hawaiian) women are known.
Truck tonnage in May continued its downward year-over-year trend, dipping 1.3% when measured against the same month in 2022. However, on a month-to-month basis, the index increased a seasonally adjusted 2.4% and the index jumped to 115.4 compared with 112.7 in April.
The Federal Motor Carrier Safety Administration has issued final regulatory guidance on its definitions of ‘‘broker’’ and ‘‘bona fide agents,” including guidance on the role and activities of entities referred to as “dispatch services” for motor vehicle transportation. While the agency noted it is clarifying some regulatory areas, it said the actual definitions of broker and bona fide agents largely remain unchanged from existing federal regulations. The final guidance updates the agency’s November 2022 interim guidance in response to public comments the agency received. The review of the definitions was mandated in the Infrastructure Investment and Jobs Act, which was passed in November 2021.
A tentative six-year agreement has been reached between the Pacific Maritime Association and the 22,000-member International Longshore and Warehouse Union, ending months of sometimes acrimonious negotiations. The deal also signals an end to months of uncertainty at 29 West Coast ports and warehouse facilities. The Labor Department helped broker the talks, as acting Secretary Julie Su assisted in the negotiations. She said in a statement that the agreement is an indication that the collective bargaining process works, even when it is difficult.
U.S. retail sales for medium-duty trucks grew 28.6% in May compared with the year-ago period, according to data from Wards Intelligence. Total retail sales for Classes 4-7 trucks increased to 21,687 from 16,859. The results represent the second consecutive month showing a gain from the prior year. The only other year-over-year increase this year was in January. The only increase last year occurred in August. The latest results also were up 13.6% sequentially, with 19,098 units sold in April.
U.S. Class 8 retail sales in May rose 16.4% from a year ago and also saw a month-to-month gain, Wards Intelligence reported. Class 8 sales for the month reached 24,111 units, up from 20,713 in May 2022 and up 6% from the 22,741 sold in April. Retail sales have experienced a year-over-year increase every month this year. Freightliner, a brand of Daimler Truck North America, claimed the largest market share, accounting for 38.9% of all sales for the month.
New York City officials will experiment this summer with a new system using delivery trucks to drop goods at special off-street or curbside microhubs, where they will be collected by cargo bikes and hand carts to be delivered to their final destinations. Objectives of the two-part Microhubs Pilot are to lower truck emissions, improve safety and, quote, “rethink the city’s curb space to meet the demands of e-commerce.”
President Biden has picked Polly Trottenberg, a longtime government official and current top aide in the Transportation Department, to serve as acting administrator of the Federal Aviation Administration. Trottenberg has replaced Billy Nolen, who indicated in April that he planned to leave the FAA. Trottenberg held a high-ranking job in the Transportation Department during the Obama administration and most recently has been deputy to Transportation Secretary Pete Buttigieg. She led the New York City Transportation Department from 2014 to 2020 and worked as a U.S. Senate aide and at the Port Authority of New York and New Jersey.
Iowa is leading 19 states in a lawsuit against the U.S. Environmental Protection Agency for backing California’s future ban on heavy diesel vehicles in a purported attempt to regulate traditional trucking “out of existence through mandating net-zero emissions standards.” The 51-page legal action against the EPA and its administrator, Michael Regan, was filed June 5 in the U.S. Court of Appeals of the District of Columbia. The attorney generals from the 19 states fighting the diesel trucking ban contend that California’s Advanced Clean Trucks regulation violates the Clean Air Act and other federal laws. Their lawsuit is petitioning the court to review the EPA’s actions.
Tensions between the Pacific Maritime Association and the International Longshore and Warehouse Union are heating up as periodic, unannounced work stoppages occur at several ports and other locations, causing cargo disruptions across the nation. The actions have taken place the past several days at the Port of Oakland, the ports of Los Angeles and Long Beach and the Port of Seattle. They are occurring as the sides have been negotiating for almost a year attempting to finalize a multiyear contract for the 22,000 unionized workers who load and unload freight at West Coast ports and more than two dozen warehouse locations. The labor discord has many in the transportation, retail and agriculture sectors worried about the continued availability of their shipments.
The largest logistics company in North America has a new CEO. C.H. Robinson, which ranks No. 1 on the Transport Topics Top 100 list of the largest logistics companies in North America, has named Dave Bozeman to the position, effective June 26. Bozeman most recently served as vice president of the Ford Customer Service Division and vice president of enthusiast vehicles at Ford Blue of Ford Motor Co. He has over three decades of experience working for companies involved in supply chains, middle-mile transportation, manufacturing, digital and customer service. Scott Anderson has been serving as interim CEO since January. Anderson will continue to serve as a member of the board of directors.
A new report seeks to shed light on why so many truck drivers are leaving their jobs after failing a marijuana test — most likely accepting other jobs with lower pay rather than returning to the current nationwide driver pool that already is critically short. The report, from the American Transportation Research Institute, notes that some truck drivers who successfully complete a return-to-duty program still find it difficult to find truck driving employment, based on carrier survey data indicating that a segment of carriers will not hire truck drivers who have tested positive.
WASHINGTON — In a dispute about the pressure that organized labor can exert during a strike, the Supreme Court ruled June 1 against unionized drivers who walked off the job with their trucks full of wet concrete. Justice Amy Coney Barrett, writing for the majority, said the union failed to take reasonable precautions to protect the company’s concrete when the drivers went on strike.
With fewer than 60 days to go until the current labor contract expires, negotiations were set to resume June 5 between Atlanta-based parcel delivery giant UPS and members of the International Brotherhood of Teamsters, which represents an estimated 360,000 UPS drivers and other workers.
WASHINGTON — The U.S. government’s auto safety agency plans to require that all new passenger cars and light trucks include potentially life-saving automatic emergency braking and meet stricter safety standards within three years. The May 31 announcement by the National Highway Traffic Safety Administration represents the agency’s latest move toward regulating electronic systems that take on certain tasks that drivers themselves have normally done.
Daimler Truck will join merging Japanese companies Mitsubishi Fuso Truck and Bus Corp. and Hino Motors as part of an ecological tech alliance forged between themselves and their top stakeholders, the companies said May 30. Daimler Truck Holding, Mitsubishi Fuso, Hino and Toyota Motor Corp. announced the merger after concluding a memorandum of understanding focused on accelerating the development of advanced technologies. The focus will be on environmental, autonomous, connected and electric mobility technologies.
Embark Technology is set to be acquired by fellow autonomous vehicle software company Applied Intuition, the companies announced May 25. The deal puts the equity value at about $71 million. Applied Intuition will provide an all-cash transaction as part of a definitive merger agreement signed by the companies. Applied Intuition aims to integrate internal tools, data and software assets gained in the deal to further improve its offerings for customers in the trucking and automotive industries. Embark is an autonomous trucking software company that was founded in 2016.
A trade group representing independent contractors has begun a program to recruit and train working independent drivers to serve as “ambassadors” to educate lawmakers and others about their importance to the industry and the personal opportunities their jobs provide. The Coalition for Independent Truckers' key goal is to deploy ambassadors to head off efforts in state legislatures aimed at advancing laws that would reclassify independent owner-operators as motor carrier employees. American Trucking Associations and the Truckload Carriers Association are among groups that support the plan.
A package of supply chain-centric bills was advanced to the floor of the House of Representatives on May 23. The measures largely address safety, efficiency and resiliency in freight transportation. Transportation and Infrastructure Committee Chairman Sam Graves, a Missouri Republican, said, “Today, the committee took action to strengthen our supply chain in numerous ways by removing regulatory barriers, improving supply chain efficiency and promoting smarter infrastructure investment.”
Truck tonnage in April fell on both an annual and month-to-month basis as freight activity remains slow, American Trucking Associations said May 2. Tonnage slumped 3.4% last month to 112.7 when measured against the same period a year ago, and dipped 1.7% compared with March results, according to ATA’s seasonally adjusted For-Hire Truck Tonnage Index. The index was 115.8 in April 2022. ATA Chief Economist Bob Costello said the year-over-year decline is the largest decrease since February 2021. The April annual decline follows a 2.4% year-over-year drop in March.
Volvo Trucks has signed a letter of intent to sell up to 1,000 electric trucks to a single customer in its largest EV order to date, the manufacturer announced May 22. The Gothenburg, Sweden-based truck maker said the deal with Swiss-based building services provider Holcim extends from now through 2030, with the first 130 trucks to be delivered in 2023 and 2024.
The Biden administration has shelved a plan that would have awarded automakers such as Tesla credits for using renewable natural gas to power electric vehicles. That proposal was excluded from drafted regulation setting biofuel-blending quotas for the next three years that is undergoing final review at the White House, according to people familiar with the matter who asked not to be identified because the decision isn’t public.
Several dozen groups gathered in Washington to draw attention to supply chain projects in need of federal support, calling on policymakers to approve long-term funding as well as reform the federal permitting process. The Coalition for America’s Gateways and Trade Corridors is pressing for further attention to projects that could be advanced with funding from the $1.2 trillion federal infrastructure law President Joe Biden signed in November 2021. About five dozen freight projects would be enhanced by additional federal-level funding, the coalition indicated in a report.
Amendments to the hours-of-service rule that went into effect in late 2020 may have increased flexibility for truck drivers, but the percentage of HOS violations rose “significantly higher” the first year of the rule’s implementation, according to a new analysis sent to Congress this month.
U.S. retail sales for medium-duty trucks grew 16.2% in April compared with the year-ago period, according to data from Wards Intelligence. Total retail sales for Classes 4-7 trucks increased to 19,098 from 16,439. The results were the first year-over-year increase since a 3.8% gain in January.
Federal regulators have appointed nine individuals to serve on a truck-leasing task force that is charged with evaluating lease agreements in the trucking industry, including their potential safety and financial impacts on owner-operators. The task force will address areas that the Federal Motor Carrier Safety Administration said in a statement have long required more careful attention.
A nonprofit called Resources for the Future recently released a study that found repeal of the federal excise tax on heavy-duty commercial vehicles should be a key tool in the United States’ push to reduce trucking’s greenhouse gas emissions through electrification. The report argues removing the currently 12% excise tax on medium- and heavy-duty electric trucks can reduce the purchase cost, and that would be part of the long-term solution to reducing trucking and the overall transportation sector’s emissions. These findings back industry demands of recent months, including from American Trucking Associations.
U.S. Class 8 retail sales in April increased 19.4% from a year ago but declined on a month-to-month basis, Wards Intelligence reported. Class 8 sales for the month reached 22,741 units, up from 19,052 in April 2022 but down 8.4% from the 24,823 sold in March. Truck retail sales have experienced a year-over-year increase every month this year. Daimler Truck North America’s Freightliner brand led the pack with 37.7% of market sales.
Peterbilt Motors Co. introduced its new Model 589 truck yesterday during an event at Texas Motor Speedway, transitioning its classically styled heritage model onto the same wider cab platform as other trucks in its lineup while staying true to the styling that resonates with the truck’s core buyers, the company said. The truck is set to replace the legacy Peterbilt Model 389. That truck, which debuted in 2007, will continue production through the end of the year. Production of the Model 589 is set to begin in January, with order books opening in August.
The U.S. Environmental Protection Agency is seeking public comment on the availability of zero-emission technologies in the heavy-duty vehicle and port sectors before moving ahead with funding via the Inflation Reduction Act. Specifically, EPA is interested in comments detailing the availability, market price, and performance of zero-emission trucks, zero-emission port equipment, electric charging and other fueling infrastructure needs for zero-emission technologies in the near term. Comments are due by June 5.
The American Transportation Research Institute unveiled its top five research projects for 2023 at American Trucking Associations’ annual Mid-Year Management Session. Its No. 1 focus is a study specifically looking at the cost and impact of expanding truck parking facilities at public rest areas. Rounding out the top five are efforts looking at barriers to entry for female drivers, the impact of the complete streets approach on fleet mobility, the diesel technician shortage and the cost of driver detention.
Truck maker Navistar is expanding its electric truck offerings and has inked a partnership with infrastructure firm Quanta Services Inc. to help fleet customers implement battery-electric vehicles quickly and efficiently.
U.S. Environmental Protection Agency officials overseeing a two-day public hearing announced that the agency plans to finalize its aggressive Phase 3 heavy-truck greenhouse gas emissions mandate by the end of this year. To many of the more than 200 individuals who testified during the May 2-3 virtual hearing, that target was either too soon, or not soon enough.
RXO on May 3 reported revenue exceeding $1 billion for its first full quarter as an independent company. The Charlotte, N.C.-based asset-light transportation provider posted no net income for the three months ending March 31. That compared with $39 million, or 34 cents a diluted share, during the year-ago period when the company was operating within XPO. Total revenue decreased by 23% to $1.01 billion from $1.31 billion.
The U.S. Department of Transportation on May 1 announced the issuance of a final rule approving use of oral fluid to drug test truck drivers, a move made to deter cheating on urine-based examinations while also addressing privacy concerns of test subjects.
Diesel prices fell by an average of 5.9 cents a gallon across the country in the past week to flirt with the $4-a-gallon mark, settling at $4.018 a gallon, according to data from the Energy Information Administration. Diesel is now $1.491 a gallon cheaper than a year ago. The national average price has fallen in 12 of the past 13 weeks. Diesel is already below $4 a gallon in three regions — Lower Atlantic, Midwest and Gulf Coast.
Daimler Truck unveiled Rizon, its newly branded lineup of Class 4 and Class 5 medium-duty electric trucks, on Thursday. With the U.S. release of its latest EV, Daimler is positioning to enter the growing segment of last-mile delivery as well as applications such as dry vans, flatbeds, landscape dump trucks and refrigerated trucks. Karl Deppen, the head of Daimler Truck Asia, introduced the medium-sized EV as “everything a diesel truck does, just without the diesel.”
Truckload carrier Schneider posted its earnings, achieving a 6% year-over-year earnings gain despite a revenue loss during the first quarter of 2023. The Green Bay, Wis., company posted net income of $98 million, or 55 cents a diluted share, for the three months ending March 31. That compared with $92.1 million, or 52 cents, during the 2022 period. Total revenue decreased by 12% to $1.43 billion from $1.62 billion.
Norfolk Southern reported that the freight train derailment in East Palestine, Ohio, on Feb. 3 cost it $387 million in damages. That impacted first-quarter profit by 33.7% when compared with the same period in 2022. The Atlanta-based Class I railroad’s quarterly income was $466 million, or $2.04 a share, versus $703 million, or $2.93 a share. Revenue was up 7% to $3.1 billion in the first quarter this year compared with $2.91 billion in the year-ago period.
UPS Inc. reported first-quarter earnings that were lower than this time in 2022, and were mixed compared with Wall Street expectations. UPS reported a quarterly income decline of nearly 23% to $2.55 billion, or $2.20 a share, compared with $3.30 billion, or $3.05 a share, in the same period a year ago. The company reported year-over-year revenue fell 6% to $22.93 billion compared with $24.3 billion in 2022. UPS said the declines were the result of sagging consumer spending that pushed fewer packages through its networks.
The price of a gallon of diesel fell 3.9 cents last week, according to data from the Energy Information Administration released yesterday. The price bumped up 1.8 cents the week before, putting a brief end to 10 consecutive weeks of drops. Overall, the price of trucking’s main fuel is about 1.08 less than it was during this time in 2022.
Starting in January, people powering up electric vehicles at commercial charging stations in Utah will have to pay a 12.5% tax and gas prices will drop July 1 due to new laws signed by Gov. Spencer Cox. Cox announced the new measures among transportation tax amendments in House Bill 301 during a ceremonial signing April 18 of 10 new laws “focused on smart growth.”
In a victory for freight brokers, a federal appeals court has ruled that an insurance company may not pursue a claim against a transportation broker after that broker unknowingly hired a fraudulent motor carrier who vanished with a shipper’s load. The decision this month by the Miami-based U.S. Court of Appeals for the 11th Circuit rejected an argument by an insurance company that a federal exemption provision of the Federal Aviation Administration Authorization Act allows Florida negligence claims against a transportation broker based on the broker’s selection of a motor carrier.
WASHINGTON — A key representative of the trucking industry renewed calls before a Senate panel for Congress to repeal a tax on the purchase of new trucks nationwide. Andrew Boyle, first vice chairman of American Trucking Associations, explained repealing a World War I-era 12% tax on such vehicles would pave the way for the freight sector to upgrade fleets of commercial vehicles.
Ina Daly, a professional driver with XPO from Avondale, Ariz., took home top honors at the Arizona Truck Driving Championships April 1. The grand champion trophy for her best-in-show performance in the tank truck class qualified her for a 16th trip to the national stage. Daly, 60, the first woman to win a class title at the National Truck Driving Championships (2013 in the tank truck division), will compete alongside her peers on the national stage Aug. 16-19 in Columbus, Ohio.
U.S. stocks closed higher during Monday's trading session as another round of critical earnings got underway. Investors remain focused on results from financial institutions following the failure of Silicon Valley Bank last month.
Transportation Secretary Pete Buttigieg will appear before the transportation funding committee in the U.S. House on Thursday to discuss the White House’s fiscal 2024 budget request. Speaking recently about the budget before the Senate, the secretary said: “The budget will propel our department’s work across our three major categories of effort: running our operations well in the agency, building good things well across the country, and protecting the safety and well-being of everyone who interacts with America’s transportation systems — from pedestrians to airline passengers to rail workers.”
U.S. Class 8 retail sales in March jumped 21.9% from a year ago and also exceeded the prior month, Wards Intelligence reported. Class 8 sales for the month reached 24,823, compared with the year-ago total of 20,359, and outpaced February’s 20,136 units. Truck retail sales have increased every month since they dropped from a record high of 29,172 units in December.
Pilot Co. is set to replace its top two officers with executives hand-picked by its new majority owner, Berkshire Hathaway. Adam Wright will take the helm as CEO, and Joe Lillo will become chief financial officer. Both are longtime employees at Berkshire Hathaway. The conglomerate controlled by Warren Buffett has been Pilot’s biggest shareholder since Jan. 31. Shameek Konar and Kevin Wills will be leaving their respective positions as CEO and CFO after the transition.
Is marijuana safer than alcohol? One expert on a panel at American Trucking Associations’ 2023 Safety, Security, Human Resources National Conference and Exhibition says no. Todd Simo of HireRight said, “But from a safety perspective, marijuana has a much longer period of impairment, different from an occupational perspective than alcohol, and therefore can have a much larger impact on safety.” Other industry experts on the panel talked about what their companies are doing to ensure compliance among their safety-sensitive workers as both medical and recreational marijuana become more popular.
Federal officials have temporarily extended operating hours at three border entry points in North Dakota and one in Idaho, as border traffic volumes have lagged below pre-pandemic numbers. For 120 days starting April 1, U.S. Customs and Border Protection expanded hours of operation from 9 a.m. to 7 p.m. at North Dakota’s Maida, Northgate and Sherwood ports of entry and from 7 a.m. to 7 p.m. at Idaho’s Porthill port of entry. C-B-P will conduct an analysis on traffic flow at the end of 120 days, including an hourly breakdown, overall volume, and types of conveyances that crossed the borders.
Attorneys filed 80,000 to 100,000 new court cases that could seek damages from trucking companies and other businesses in Florida, a few days before Gov. Ron DeSantis immediately enacted a law to quash the notorious lawsuit abuse. Florida Trucking Association CEO Alix Miller was instrumental in launching a multifaceted campaign enlisting help from members in alerting state lawmakers about the detrimental impact of long-standing frivolous litigation. DeSantis, who signed the bill March 24th, said the law brings Florida into line with the rest of the country.
The White House is set to propose the toughest-ever U.S. curbs on car pollution. The proposed standards on cars and light trucks are expected to govern tailpipe emissions of carbon dioxide, smog-forming nitrogen oxide and other pollution from vehicles manufactured for model years 2027 through 2032. President Joe Biden’s proposal stops short of an electric-vehicle mandate or ban on gas-powered models.
FedEx will combine nearly all of its ground, air and other operations by June 2024 as part of a $4 billion cost-cutting initiative, the company announced April 5. The planned 14-month, phased-in transition ultimately will consolidate FedEx Express, FedEx Ground, FedEx Service and other operating companies into Federal Express Corp. That will be a single company that will operate as a unified, fully integrated, air-to-ground network under the FedEx brand.
President Joe Biden on Monday toured a power generation facility in Fridley, Minn., that will get a share of at least $1 billion in upgrades that engine and equipment manufacturer Cummins is planning for facilities around the country as it works on development of low- to zero-carbon engines. Cummins late last year announced an initial investment in electrolyzer manufacturing at the Minnesota facility, just two months after the president signed the Inflation Reduction Act. Now the company is readying another $10 million investment in the plant.
The Federal Maritime Commission ruled that marine terminal operators may not impose detention and demurrage charges on days that port facilities are closed. The 4-1 ruling, handed down at the end of March, stretches back to a complaint Nashville, Tenn.-based motor carrier TCW brought against ocean carrier Evergreen Shipping Agency after TCW was charged for three days of detention for container and chassis, also known as per diem. The changes were levied over the Memorial Day holiday weekend, when Georgia’s Port of Savannah was closed.
The Environmental Protection Agency has granted California environmental regulators waivers to officially move forward with the agency’s aggressive plans to transition diesel trucks to electric vehicles and expand the length of truck warranties. The new regulation requires manufacturers to produce and sell increasing quantities of medium- and heavy-duty zero-emission trucks in California. American Trucking Associations President Chris Spear condemned the decision, calling the rules “damaging and unrealistic.”
Recently introduced on Capitol Hill, the bipartisan Truck Parking Safety Improvement Act, sponsored by Representatives Mike Bost, a Republican from Illinois, and Angie Craig, a Democrat from Minnesota, would approve funding to assist agencies with expanding parking capacity for women and men operating trucks. The bill also would support requisite improvements to existing parking areas and authorize $755 million in competitive grants over the next few years. Leading the legislative effort on the other side of the Capitol are Senators Cynthia Lummis, a Republican from Wyoming, and Mark Kelly, a Democrat from Arizona.
RXO yesterday celebrated the grand opening of its newest cross-border facility in Laredo, Texas. The asset-light transportation provider opened the warehousing and distribution services facility to provide customers with end-to-end cross-border service that will help streamline their supply chains. The facility, located a half mile from the Mexico border, is 127,000 square feet and has 43 dock doors and parking for approximately 160 trailers.
American Trucking Associations President Chris Spear testified yesterday in front of a U.S. House panel, saying that enhancing recruitment and retention efforts across the trucking industry will benefit the connectivity of the country’s supply chain. Emphasizing an industrywide shortage of drivers, Spear highlighted policies approved in 2021’s $1.2 trillion infrastructure law specific to trucking. He specifically listed the benefits of the Safe Driver Apprenticeship Pilot Program, although he also noted that the rollout has been frustratingly slow.”
A coalition of trade associations — including American Trucking Associations — wrote to President Joe Biden on March 24th, urging the administration to take a more active role in the West Coast port labor negotiations. The contract talks involve the 22,000-member International Longshore and Warehouse Union and the Pacific Maritime Association, which represents management at 29 ports and distribution centers. The trade groups noted concerns related to freight shifting out of West Coast ports due to the uncertainty of the negotiations.
The trucking industry in Florida is hailing what it calls a major legislative victory: a new law that targets abusive and frivolous lawsuits.Gov. Ron DeSantis, who signed the bill Friday, said, “I am proud to sign this legislation to protect Floridians, safeguard our economy and attract more investment in our state.. Florida joins Iowa, Louisiana, Missouri, Montana, Texas and West Virginia as states to have enacted laws that protect businesses from unscrupulous lawsuits.
A group representing motor carriers, truck manufacturers and truck dealers has launched a coalition intended to serve as a collective voice for promoting clean transportation. Members of the Clean Freight Coalition include American Trucking Associations, American Truck Dealers, National Tank Truck Carriers, Truckload Carriers Association and Truck & Engine Manufacturers Association. Jim Mullen, whose resume includes the roles of acting administrator and general counsel for the Federal Motor Carrier Safety Administration, will serve as executive director.
Port leaders will emphasize the facilities’ significance in the supply chain when they meet with White House officials and members of Congress during the annual Legislative Summit hosted by the American Association of Port Authorities. The executives will stress the importance of sea and land ports, especially how they kept the supply chain stabilized during the COVID-19 pandemic. The summit will be held March 27-29 in Washington.
Knight-Swift Transportation Holdings has reached an agreement to acquire U.S. Xpress Enterprises for about $808 million, the companies announced March 21. The deal is expected to close late in the second quarter or early third quarter, and U.S. Xpress will continue to operate as an independent brand. Knight-Swift, based in Phoenix, ranks No. 7 on the Transport Topics Top 100 list of the largest for-hire carriers in North America. U.S. Xpress, with headquarters in Chattanooga, Tenn., is No. 23.
Many of the largest ports in the U.S. saw year-over-year drops in container cargo in February. The Port of Los Angeles saw a 43% drop, the Port of Long Beach saw a 32% drop, and the Northwest Seaport Alliance reported a 24% decline.Officials say they are trying to take advantage of the lower volume to focus on infrastructure projects to prepare for when business begins to accelerate.
FedEx Corp.’s shares jumped the most in nine months after the courier boosted its profit outlook, signaling efforts to cut costs are helping counter a decline in package volume. Adjusted earnings this fiscal year will be $14.60 to $15.20 a share, up from a prior forecast of no more than $14, the Memphis, Tenn.-based company said. Analysts were expecting $13.57 on average, according to estimates compiled by Bloomberg.
In a letter to U.S. Senate labor leaders, American Trucking Associations President Chris Spear expressed concern about the track record that Labor Secretary nominee Julie Su would bring to the job, specifically as it relates to the rights of truck drivers to be independent contractors.
By a 4-1 vote, the U.S. Surface Transportation Board on March 15 approved the more than $31 billion merger of Canadian Pacific Railway and the smaller but strategically significant Kansas City Southern Railroad. The deal is the nation’s first major rail merger in 25 years. The 212-page decision paves the way to creating the first single-line railroad linking Canada, the United States and Mexico.
Electric vehicle manufacturer Rivian and Amazon are in active discussions about ending the exclusivity provision of their delivery van deal, according to multiple media reports. Rivian is trying to remove the exclusivity terms from its Amazon deal due to a lower-than-expected order number for 2023. The two companies entered into an agreement in 2019 for Amazon to buy 100,000 delivery vans from Rivian by 2030. But Amazon only plans to buy roughly 10,000 EV vans this year.
The national average price for diesel slipped 3.5 cents to $4.247 a gallon, according to Energy Information Administration data released March 13. Diesel’s national average price has fallen for the past six weeks, totaling 37.5 cents, and for seven of the 10 reporting periods in 2023. A gallon of diesel now costs $1 less on average than it did at this time a year ago.
U.S. Class 8 retail sales in February jumped 35% from a year ago, and notched a slight increase from the prior month, Wards Intelligence reported. Class 8 sales for the month reached 20,136, easily besting the year-ago mark of 14,916 and outpacing January’s total of 19,932 units. Freightliner, a brand of Daimler Truck North America, led the pack with 7,368 trucks sold, accounting for a market-leading 36.6% share. All of the major truck manufacturers posted sales gains over the prior year.
Class 8 truck orders rebounded in February, according to ACT Research. The orders in February hit 23,600 units, ending a month-to-month decline that started in October. Preliminary data from ACT showed orders rose 12% compared with the same period last year, when they reached 21,000 units. On a month-to-month basis, February orders jumped 28% from January.
Trucking groups are renewing calls for the repeal of a World War I-era tax on the purchase of new trucks. American Trucking Associations, along with American Truck Dealers and the Zero Emission Transportation Association, are urging lawmakers to consider legislation that would undo the long-standing 12 percent federal excise tax, which can add thousands to new truck purchases. Since the start of the 118th Congress, transportation policymakers have yet to introduce a bill on the matter.
Love’s Travel Stops and Country Stores founder Tom Love died yesterday at 85 years old. He grew the company from a single location to more than 600 sites. Love and his wife and business party, Judy, in 1964 invested $5,000 to lease an abandoned service station in rural Oklahoma. Now, the brand operates in 42 states. A statement from the Love family read, in part, “He loved people, and that was evident in how he guided our family, operated the business he started in 1964 and gave back to our community and organizations across the country that serve others.”
Autonomous trucking company Embark Trucks announced March 3 it is winding down operations and is exploring a liquidation or sale. Embark said it is laying off 70% of its workforce — 230 employees — and is closing offices in Houston and San Francisco. It also indicated to the remaining 30% of the staff that they are being kept on to facilitate the company’s shutdown. Embark has had a rocky history lately. The next step may be a liquidation, and the company is actively looking for a buyer.
Daimler Truck autonomous technology subsidiary Torc Robotics has signed an agreement to acquire Canadian artificial intelligence developer Algolux Inc. Torc cited its interest in Algolux’s intellectual property and expertise in computer vision and machine learning as reasons for the acquisition. Perception technology is critical in enabling Torc’s autonomous trucking system to correctly identify objects in difficult visual conditions, such as low light, fog and bad weather, Torc noted in a news release.
The Federal Highway Administration has issued a final rule for minimum standards of electric vehicle chargers, but has chosen to not yet broaden the rule to include minimum standards for medium- and heavy-duty electric truck charging infrastructure. The agency said it did not want to issue a final rule for these trucks so as to not “pre-empt the pace of the technological innovation.”
The Commercial Vehicle Safety Alliance has scheduled this year’s International Roadcheck event for May 16-18, CVSA announced Feb. 28. This year’s event will feature an emphasis on anti-lock braking systems and cargo securement.
ORLANDO, Fla. — The U.S. economy is poised for a short and shallow recession during the second half of the year, but circumstances specific to current economic conditions — including high interest rates, persistent inflation and a cooling housing market — make predictions more challenging than usual, said American Trucking Associations chief economist Bob Costello.
Top Republicans on the congressional transportation committees applauded updated policy guidance related to the implementation of the $1.2 trillion infrastructure law. A new memorandum from the Federal Highway Administration unveiled Feb. 24 affirmed state agencies’ active role in decision-making affairs specific to infrastructure projects.
American Trucking Associations’ equipment showcase kicks off today and runs through March 2 in Orlando, Fla. The Technology & Maintenance Council Annual Meeting and Transportation Technology Exhibition features study sessions, discussions, product announcements and the latest in industry innovations on display. This year’s theme is Root Cause Analysis. Go to ttn.ws/2023tmc for Transport Topics’ full coverage, including a photo gallery.
Transportation committees on Capitol Hill are planning in-depth examinations of the circumstances surrounding the derailment this month of a freight train in East Palestine, Ohio. With the rail industry contributing a key role to the country’s supply chain, a look at freight connectivity will be among policymakers’ focus during a series of upcoming hearings in the Senate and House. On Feb. 3, about 50 railcars on a Norfolk Southern train - many carrying hazardous materials - derailed, spilling their toxic contents and causing a massive fire.
The chairman of the Communications and Technology Subcommittee is stepping up his push for the consideration of autonomous vehicle technology legislation during this session of Congress. Bob Latta, an Ohio Republican, has sought to establish a federal framework for assisting agencies and industries with the deployment of autonomous vehicles, and says other countries are getting ahead. “When we look around the world, other countries are out there right now testing,” Latta said.
The national average price of diesel fuel continues to slide, falling 6.8 cents a gallon to settle at $4.367 a gallon, according to Energy information Administration data released Feb. 21. Trucking’s main fuel has shed 16.3 cents over the past two weeks and 24.6 cents since the Jan. 30 reporting period. A gallon now costs 32.1 cents more on average than it did at this time in 2022.
New Jersey Gov. Phil Murphy issued a few executive orders to accelerate 100% clean energy by 2035 and offer new incentives for heavy-duty electric vehicles. Murphy’s mandates include allocating $70 million to lower upfront consumer costs for buying medium- and heavy-duty electric vehicles. Another part of his plan will be to launch activities with stakeholders to adopt the Advanced Clean Cars II in New Jersey initiative requiring all new cars and light-duty truck sales to be zero-emission vehicles by 2035.
BP Products North America is acquiring TravelCenters of America in a $1.3 billion deal announced yesterday. The transaction, valued at $86 per share, expands the reach of BP’s fueling station and off-highway convenience store network to include TravelCenters’ 281 truck stop and travel center locations across 44 states. TravelCenters businesses operate principally under the TA, Petro Stopping Centers and TA Express brands.
Florida lawmakers are readying a series of reforms aimed at frivolous lawsuits that target trucking companies and other small businesses in the state. The measures include eliminating one-way attorney fees and fee multipliers for all lines of insurance, modernizing Florida’s bad faith law, and installing protections to shield trucking companies and others from being subject to exorbitant lawsuit damages.
The Rhode Island Department of Transportation is fighting back after a federal court ruling in September put a stop to its trucks-only tolling initiative following a suit from American Trucking Associations and two motor carriers.The tolls, which were supposed to bolster infrastructure funding, were dismantled shortly after the ruling came down. The state department of transportation filed a briefing document Feb. 10 with the U.S. Court of Appeals for the First Circuit, asking that the decision by District Judge William Smith declaring the program unconstitutional be reversed, and that oral arguments be held on the case.
January Class 8 sales were up 34.2% year-over-year. Sales hit 19,932 compared with 14,857 a year earlier. The latest sales figures came off a record high of 29,172 for December. Freightliner led the pack with the most sales, and all the major truck manufacturers saw an increase in sales year-over-year in January. In addition to the major manufacturers, Tesla sold 30 trucks.
U.S. Xpress Enterprises says it increased revenue but earnings fell during the fourth quarter of 2022. The truckload carrier posted a net loss of $10.5 million for the three months ending December 31st. That compared with a loss of $4.98 million during the same time the previous year. But total operating revenue increased 2.1% to $542.5 million from $531.6 million.
The transportation sector experienced an estimated 20% jump in reported cargo thefts amid changing criminal tactics in 2022, with the largest portion of those coming in the fourth quarter. A study by CargoNet put the estimated total loss value in 2022 at $223 million. The average value of cargo stolen in an event was more than $200,000.
North American Class 8 orders in January hit 18,400 units, which was down 13.6% from the same period last year when they were 21,300. That’s according to Act Research. Supply chain issues early last year disrupted normal operations among truck makers, and orders didn’t start picking up steam until about midyear. September peaked at an all-time record of 53,700 units, and orders have been steadily going down since.
Secretary of Labor Marty Walsh is leaving the Biden administration to become executive director of the National Hockey League Players’ Association, according to reports. Walsh would become the first member of President Joe Biden’s Cabinet to step down. Deputy Secretary Julie Su is expected to become acting head of the agency. Walsh led the agency as it attempted to require COVID-19 vaccines at workplaces and update rules on whether workers should be considered independent contractors or employees under federal wage law.
President Biden delivers his State of the Union address from the U.S. Capitol tonight at 9 p.m. Eastern Time and is expected to champion recent progress made with the country’s infrastructure, including projects beneficial to the freight industry.
The Department of Transportation over the past year has undertaken a variety of actions related to guidance and rulemakings that officials say will lay the groundwork for reducing the number of fatal crashes on U.S. roadways.
Old Dominion Freight Line capped a record-setting year with revenue and earnings increases in the fourth quarter of 2022, the company reported Feb. 1, one day after revealing its leadership transition plan.
LAS VEGAS — Daimler Truck North America has unveiled its SuperTruck II high-efficiency tractor-trailer combination, featuring freight efficiency gains that the company said are built around equipment and components central to real-world tractor-trailer operation.
Even with a stronger-than-expected 2.9% fourth-quarter increase in gross domestic product, two of the nation’s most prominent freight transportation economists say the threat of a recession will persist this year. Bob Costello, American Trucking Associations’ chief economist, and Rajeev Dhawan, director of the Economic Forecasting Center at Georgia State University, said, however, that the economy continues to perform at a strong level.
Legislation that would dedicate funds to expand truckers’ access to parking nationwide was recently introduced in the House of Representatives. The Safer Highways and Increased Performance for Interstate Trucking, or SHIP IT, Act, introduced by Reps. Dusty Johnson (R-S.D.) and Jim Costa (D-Calif.), would approve nearly $800 million through fiscal 2026 for parking projects connected to commercial vehicle operations.
One of America’s iconic structures is getting a big boost in federal funding. The Department of Transportation announced the Golden Gate Bridge in San Francisco will receive $400 million earmarked toward making the span more resilient to earthquakes. Transportation Secretary Pete Buttigieg said the bridge, which was built in 1937, is a vital link for supply chains, including waterborne freight at the Port of Oakland.
Nearly 41,000 truck drivers tested positive for marijuana in 2022, a 32% increase over 2021, according to a report recently compiled from data in the Federal Motor Carrier Safety Administration’s Drug & Alcohol Clearinghouse. Truck drivers who test positive for marijuana — and other drugs — are prohibited from driving, and must enter a “return-to-work” process and retest to get back behind the wheel. As of Jan. 4, 91,000 of the more than 166,000 drivers who failed at least one drug test have yet to enroll in the return-to-work process. Only about 46,000 have completed the process and are eligible to drive again.
Used Class 8 vehicle sales in December declined 2.4% from a year ago, but increased slightly from the prior month, ACT Research reported. The average retail sales price was $80,385 compared with $82,341 in the 2021 period, according to ACT. The estimated retail volume in December was 21,100 units compared with 22,800 a year earlier. But that is up from the 20,100 units sold in November.
Truck tonnage rose 3.8 percent in 2022 compared with the prior year, posting the highest year-over-year gain in four years despite closing out with modest December results, American Trucking Associations reported. ATA Chief Economist Bob Costello said the annual gain was the strongest since 2018 and marked the 16th consecutive year-over-year increase.
Kodiak Robotics has landed a top industry executive for its role of chief operating officer. James Reed, who had been CEO at USA Truck for six years, will join the autonomous trucking company. USA Truck said Reed was selected based on his experience in trucking, technology and finance.
Trailer maker Wabash last week announced two long-term agreements. One is with Ryerson, a value-added processor and distributor of industrial metals for 10 years, marking its importance as a strategic supplier partner to the manufacturer. The other is a multiyear supply agreement with carrier J.B. Hunt. The long-term order agreement with J.B. Hunt couples with Wabash’s earlier 10-year agreement with aluminum supplier Hydro, to provide certainty that it can meet pent-up demand as its additional dry van capacity comes online in early 2023.
Trailer orders surged to the second-highest level in more than 25 years, ACT Research recently reported. Net orders were 57,300 compared with 26,382 a year earlier. The all-time high is 57,790 set in September 2018. ACT reports there were 361,500 net orders placed in 2022, exceeding the previous year’s level of 249,400. About 306,000 trailers were built in 2022, and ACT’s projections point to a continued upward trend in 2023.
Medium-duty sales in December fell by 6.2% year-over-year, according to Wards Intelligence. This tops off a trend for the year; medium-duty sales posted only one positive month in 2022 compared with 2021, in August. Act Research’s Steve Tam said that despite those drops, the medium-duty market is quite stable. But it’s still affected by some of the supply chain challenges plaguing manufacturers that also make Class 8 vehicles.
The National Transportation Safety Board made a series of recommendations to help lower the number of alcohol- and drug-related crashes on the nation’s roads. NTSB researchers found alcohol remains the most-often detected drug in impaired driving incidents, and cannabis is the second most common. Some of the recommendations include requirements that cannabis products have warning labels, modifying laws to allow for different ways to drug test and allowing the use of electronic warrants to obtain biological specimens during impaired driving arrests.
U.S. Class 8 retail sales in December reached an all-time monthly high, Wards Intelligence reported. Sales rose 18% to 29,172 compared with 24,716 a year earlier, according to Wards. The numbers surpassed the previous peak for the year, 23,581 in August.
The rising number of people killed and injured in automobile accidents due to driving at high speeds is unacceptable, National Transportation Safety Board Chair Jennifer Homendy said. Delivering the keynote address at the Transportation Research Board annual meeting, Homendy said transportation officials believe it is possible to reach zero highway fatalities.
WASHINGTON — Nearly three years after the beginning of the COVID-19 pandemic, global supply chains and international ocean carriers have seen cargo volumes return to pre-pandemic levels. Now, many manufacturers are considering reshoring and nearshoring their operations to lower costs and make their companies less vulnerable to shipping interruptions, such as those they experienced in 2020 and 2021.
Delaware’s Division of Motor Vehicles has launched an online self-certification option for commercial driver license holders to upload their Medical Examiner’s Certificate. “We expect this to be one of our most popular features on myDMV,” said Jana Simpler, director of the Delaware DMV. “It saves our CDL drivers time. It’s convenient. It’s easy and it gives our drivers peace of mind knowing their certification was updated and received by DMV.”
Construction will move forward to ease congestion in western Maryland and improve regional freight transportation along Interstate 81 after Gov. Larry Hogan awarded the project a $100 million grant. I-81 is the main freight connectivity corridor in Maryland that links New York to Tennessee.
Preliminary North American Class 8 orders in December were 30,300, marking the fourth consecutive month of year-over-year gains, ACT Research reported. Year-ago orders were 22,800. Orders in 2022 had remained below 2021 levels until an all-time record for any month was reached in September. Final numbers for December are due later this month.
The Federal Highway Administration announced $2.1 billion in first-round grants to repair economically significant bridges. The Large Bridge Grants were dedicated to the Brent Spence Bridge connecting Cincinnati and northern Kentucky, the Golden Gate Bridge in California, the Gold Star Memorial Bridge in Connecticut and four bridges that cross the Calumet River on the south side of Chicago. The Biden administration also said it has plans to make available $40 billion in future years for improvements to thousands of bridges.
Biden administration Cabinet secretaries Pete Buttigieg and Jennifer Granholm are headlining this year’s annual meeting of the Transportation Research Board. On Jan. 11, the secretaries of Transportation and Energy, respectively, will share updates about the implementation of a $1 trillion infrastructure law at the gathering in Washington of thousands of stakeholders and enthusiasts.
C.H. Robinson CEO Bob Biesterfeld stepped down from his role, effective Dec. 31. He also held the title of president and was on the logistics company’s board of directors. Board chairman Scott Anderson is now interim CEO, effective Jan. 1, and the company has retained a firm to lead a search for a new chief executive. Biesterfeld had been with C.H. Robinson for 24 years, and CEO since 2019.
As the calendar flips to 2023, what’s ahead for driver recruitment, shipping rates and congressional action? Transport Topics takes a look in our Year in Preview stories.
The federal spending budget for fiscal 2023 includes an increase in funding for the Department of Transportation that is higher than the level requested by the White House. The $1.7 trillion bill — which advanced through the House of Representatives on Dec. 23rd after moving through the Senate the day before — allocates $106.3 billion to DOT and its agencies, $3.4 billion more than the agency received a year ago and $1.9 billion more than was sought by the White House. As of recording, President Joe Biden has yet to sign the bill, but is expected to soon.
Dec. 17 marked Wreaths Across America Day, when volunteers lay wreaths on veterans’ graves at Arlington National Cemetery and at more than 3,700 other locations. Truck drivers play the vital role of hauling the wreaths, and the event highlights the many military members among their ranks. Notably, this year, the Senate also passed a resolution designating Dec. 17 as National Wreaths Across America Day.
WASHINGTON — The Environmental Protection Agency on Dec. 20 announced more stringent clear-air standards for heavy trucks that the agency said are 80% stronger than current limits. Starting with model year 2027 trucks, the EPA’s new standards — the first update to its heavy-truck rules in more than two decades — will by EPA estimates reduce nitrogen-oxide emissions from trucks by more than 40% by 2040 and by nearly 50% by 2045, at which point it projects most of the regulated fleet will have converted to newer equipment.
Truck tonnage inched up year-over-year in November, but for the second consecutive time declined on a month-to-month basis amid a tepid seasonal environment, according to American Trucking Associations’ monthly For-Hire Truck Tonnage Index released Dec. 20. The index rose 0.8% compared with November of 2021 but declined 2.5% compared with October. This followed a 1.2% decline from September to October. “For-hire truck tonnage saw the largest single monthly decrease in November since the start of the pandemic and a total drop of 3.7% in October and November,” ATA Chief Economist Bob Costello said.
Trailer maker Great Dane announced its longtime CEO, Bill Crown, is stepping down Jan. 1. He will be replaced by company President Dean Engelage as part of a managed executive transition. Crown, who has been CEO for 25 years, said about the change, “Dean and I have worked closely together, and Dean has been a terrific leader and president for Great Dane. I step aside with confidence that Great Dane is in good and capable hands.”
Trailer orders in November hit the second-highest mark this year, ACT Research reported. They were at 39,000 compared with 32,103 in November 2021. This year’s best result was in August, with 47,860 orders. After snags in the supply chain for trailers over the past few years, the backlog-to-build ratios are near the 7.5-month mark, on average.
Trimble announced it has agreed to acquire Transporeon, a cloud-based transportation management software platform focused on connected supply chain infrastructure, in an all-cash transaction valued at $2 billion. Trimble will acquire Ulm, Germany-based Transporeon, founded in 2000, from Hg, a leading software and services investor and current majority shareholder in the business.
The North American Council for Freight Efficiency said fuel efficiency in Class 8 trucks participating in its annual fleet study from 2018 to 2020 remained flat at 7.24 mpg after seven previous years of 2% annual increases. The study had been on a three-year hiatus, in part because of the pandemic, and a new report was released Dec. 13. NACFE Executive Director Mike Roeth said probable reasons for the lack of an increase in fleet fuel economy the past three-plus years include companies changing their routes to more regional runs versus longer over-the-road trips. Fifteen fleets participated in the study.
Class 8 U.S. retail sales in November were the second-highest this year and continued the trend since May of monthly gains compared with a year earlier, according to Wards Intelligence. Sales rose 39.5% to 23,075 compared with 16,539 a year earlier. August posted the best sales so far with 23,581. Year-to-date sales rose 14.2% to 225,163 compared with 197,224 in the 2021 period.
After two years of virtual competition due to the COVID pandemic, Rush Enterprises kicked off an in-person Tech Skills Rodeo competition again over the weekend. Rush employees compete in hands-on and written challenges to test their mettle in a range of categories. The three-day event culminates in an awards ceremony. More than a thousand Rush Enterprises employees will be competing, and about $300,000 in prizes will be awarded.
Iowa Gov. Kim Reynolds announced $6 million to reimburse eligible employers to help remove obstacles for new truck drivers who want an entry-level commercial driver license. The new effort is called the Iowa Entry-Level Driver Training Program. It is available for Iowa-based employers, employer consortia and nonprofits who hire Iowa CDL drivers and provide entry-level driver training either in-house or with third-party certified training providers.
Harassment and assaults against truck drivers are widespread, particularly among women and minority male drivers, according to a new study and survey commissioned by the Federal Motor Carrier Safety Administration. “Harassment is more likely to happen at truck stops, places where truck drivers pick up or deliver cargo, and fueling stations,” concluded the two-year study by Battelle Memorial Institute, a private nonprofit applied science and technology development company in Columbus, Ohio.
A labor agreement between the International Longshore and Warehouse Union and the Pacific Maritime Association may not be reached until the first quarter of next year. That is the opinion of Port of Los Angeles Executive Director Gene Seroka, whose facility experienced a 25% drop in cargo volume in October and is down 6% for the year. Neighboring Port of Long Beach’s volume fell 17% in October. Some shippers instead have rerouted to the Gulf Coast and East Coast, where facilities have seen a spike in business.
Trucking technology company TuSimple and truck maker Navistar have agreed to end their co-development of autonomous trucks. The companies created the joint development agreement in 2020. No specific reason was given for why the arrangement was terminated, and TuSimple and Navistar said the action did not preclude them from collaborating on projects in the future.
The average price of a gallon of diesel fell 17.4 cents to $4.967, according to Energy Information Administration data released Dec. 5. While the price has seen a few weeks of drops, the cost for a gallon of trucking’s main fuel remains almost $1.30 more than this time last year.
Tesla late Thursday handed over the first batch of its long-awaited Semi trucks to PepsiCo, kicking off customer deliveries for the vehicle originally unveiled more than five years ago. The event was live-streamed on Twitter, a company recently purchased by Tesla owner Elon Musk. Musk described Tesla’s entry into the heavy-duty truck market as a “crucial piece of the puzzle” in the company’s overall mission to accelerate the shift toward sustainable energy.
Moving quickly to help avert a rail workers strike that would have cost the national economy an estimated $2 billion per day, the U.S. Senate on Dec. 1 advanced a tentative labor agreement between railroads and their employees. Senators on Dec. 1 voted 80-15 on the bill, which had been approved in the House of Representatives the previous day.
The House of Representatives on Nov. 30 passed a bill outlining a labor agreement between freight rail carriers and workers to avert a strike projected to cost the economy $2 billion a day. The legislation, which advanced to the Senate, would implement provisions negotiated in a tentative agreement reached in September by the Presidential Emergency Board. The measure passed in the House by a vote of 290-137 with bipartisan support. Freight stakeholders, including American Trucking Associations, have called on Congress to act. “Further delays only result in more uncertainty and inflationary pressure at a time when the economy is straining under the weight of both,” ATA President Chris Spear said.
The Senate Environment and Public Works Committee by a voice vote advanced to the floor of the chamber Shailen Bhatt’s nomination for the top role at the Federal Highway Administration. Bhatt’s credentials were praised by Delaware Democrat Tom Carper, and West Virginia Republican Shelley Moore Capito said she was assured by the nominee that he would commit to implementing the Infrastructure Investment and Jobs Act as it was enacted. Senate Democratic leaders have yet to schedule a vote in the full chamber during this lame duck session of Congress.
Preparations are well underway for the annual Wreaths Across America event, which will be held Dec. 17. An estimated 2.5 million wreaths will be delivered from Maine to more than 3,700 cemeteries in all 50 states and some territories, including Arlington National Cemetery. Hundreds of thousands of people volunteer for the event every year. This year, one of those volunteers is J.D. Walker, a long-time truck driver who lost his 21-year-old son, Marine Lance Corporal Jeffrey D. Walker, in Iraq in 2007.
The state of Ohio is nearing completion on a project that by next spring will allow truckers and passenger vehicles to travel the length of its 241-mile turnpike without stopping at a toll plaza. The turnpike commission has been rolling out a new toll collection system that removes tolling gates and enables greater use of E-ZPass tolling. The $232 million project involves modernizing 20 interchanges that will eliminate the need for seven toll plazas with efficiency improvements. From January to September, more than 9.8 million commercial trucks drove along the turnpike, which is up 2% compared with the same time last year.
Truck tonnage in October increased compared with year-ago levels but declined on a month-to-month basis, a sign that the freight market is reacting to economic and consumer trends, American Trucking Associations reported Nov. 22. The ATA For-Hire Truck Tonnage Index rose 2.8% year-over-year in October but slid 2.3% from September, according to the federation. Though tonnage saw the largest single monthly decrease in October since the pandemic, ATA Chief Economist Bob Costello said, tonnage was up 3.9% through the first 10 months of the year compared with 2021.
The chances of a rail strike beginning as early as Dec. 9 were advanced when one of the largest unions involved in the negotiations turned down the tentative agreement reached in September. The Sheet Metal, Air, Rail and Transportation Workers union’s decision follows the rejection earlier this month by three other unions. Other unions have agreed to the contract, including most recently the Brotherhood of Locomotive Engineers and Trainmen. With the potential of a strike looming, Congress is being urged to act, if needed.
This holiday shipping season is expected to be marked by fewer delays and disruptions compared with the past two years, thanks to early freight movements, a flattening of volume and increased capacity, experts said.
Federal regulators have proposed a new climate-reporting rule that would require large federal contractors to publicly disclose their greenhouse gas emissions, climate-related financial risks and science-based emissions reduction targets. The new proposal, known as the Federal Supplier Climate Risks and Resilience Proposed Rule, would amend the Federal Acquisition Regulation. It was jointly announced Nov. 14 by the Department of Defense, General Services Administration and NASA. The agencies are proposing adding the climate reporting as a revision to the FAR, which governs federal contractors.
Senior Democrats are focusing on reducing highway fatalities, backed by provisions in the Infrastructure Investment and Jobs Act. Sens. Ed Markey of Massachusetts and Richard Blumenthal of Connecticut were joined by colleagues in calling on the Department of Transportation to adopt or pursue programs meant to boost safety along the country’s corridors. The lawmakers’ call to action stemmed from recent federal data estimating nearly 43,000 traffic fatalities in 2021, marking a 10.5% increase from the prior year.
Commercial motor vehicle inspectors in North America conducted 38,117 inspections Aug. 21-27 during Brake Safety Week, placing 13.3% of vehicles out of service for brake-related violations. Inspectors in the United States, Canada and Mexico also identified and documented 6,305 brake hose/tube chafing violations, a common brake-related violation that was the focus of this year’s special brake safety enforcement effort, according to an announcement Nov. 15 by the Commercial Vehicle Safety Alliance.
Classes 4-7 U.S. retail sales in October were off 5% from a year earlier, thanks only to strength in Class 6 as the other classes fell, Wards Intelligence reported. Sales reached 20,261 compared with 21,333 a year earlier.
U.S. Class 8 retail sales in October improved 34.5% compared with a year earlier, Wards Intelligence reported as all but one truck maker showed improvement. Sales were 22,863 compared with 17,002 a year earlier. Peterbilt Motors Co. saw sales rise the most, 49.1% to 3,384 and good for a 14.8% market share. Consistent market leader Freightliner improved sales by 38.9% to 9,056 and pulled down a 39.6% share. Freightliner is a brand of Daimler Truck North America.
The retail holiday season is expected to be solid as economists and other experts say sales should increase between 6% and 8% over 2021’s record 14% increase from 2020. But consumers are likely to be more strategic in the items they buy, with inflation eating up some of their purchasing power
To address a shortage of spaces, Ohio is converting more than a dozen weigh stations into truck parking lots and modernizing rest areas. “We know that truck parking is in short supply. Given the increases we continue to see in truck traffic, demand continues to climb,” noted Matt Bruning, press secretary for the central office of Ohio Department of Transportation. “Shortages continue to be concentrated along our major freight corridors like I-70, I-71 and I-75.”
In the lead up to this year’s midterms, President Joe Biden has traveled the country to remind constituents of the Infrastructure Investment and Jobs Act’s potential benefits on matters related to broadband internet, electric vehicles and supply chain connectivity. Republicans, meanwhile, continue to criticize Biden administration policies. Specifically, most of the GOP blames the White House for prices at the grocery store and at the gas station. Election Day is today, so it will have to be seen which party’s narrative is successful at the polls.
Drew Wilkerson,CEO of newly launched RXO, says the brokerage business will emphasize technology advances to gain market share. Wilkerson made the comments Nov. 3 in an interview with Transport Topics reporter Connor Wolf. RXO officially became a stand-alone company on Nov. 1. It marks the second major spinoff for XPO Logistics, whose contract logistics business became GXO Logistics in August 2021. Wilkerson said XPO’s next move would be to sell or divest its European operations and become a pure-play less-than-truckload company.
The Rhode Island Department of Transportation has filed an appeal challenging a district federal court judge’s ruling declaring unconstitutional the state’s controversial trucks-only tolling plan.
The Federal Reserve pumped up its benchmark interest rate Nov. 2 by three-quarters of a point for a fourth straight time, but hinted that it could soon reduce the size of its rate hikes.The Fed’s move raised its key short-term rate to a range of 3.75% to 4%, its highest level in 15 years. It was the central bank’s sixth rate hike this year. But the Fed also suggested that it could soon shift to a more deliberate pace of rate increases, and that in coming months it would consider the cumulative impact of its large rate hikes on the economy.
XPO Logistics Inc. turned its tech-enabled brokered transportation platform into an independent, publicly traded company Nov. 1. The new company, named RXO, will broker truckload freight via a proprietary digital freight marketplace that provides access to truckload capacity and complementary brokered services for managed transportation, last-mile and freight forwarding, the company said.
Eyes are back on the rail industry, as a number of groups in the transportation sector last week signed onto a letter urging the White House to continue to seek a settlement in the Class I rail contract dispute that could result in a nationwide rail strike. While an agreement was brokered in mid-September, to date, six of the 12 main rail unions, including two of the largest, have ratified the agreement, two have rejected it and four other unions are set to vote on the tentative package in the coming days. The letter from industry stakeholders warns that a strike could hit the economy hard.
No tricks here on Halloween, just treats for Universal Logistics, which on Friday reported all-time records for total operating income and earnings per share during the third quarter of 2022. The Warren, Mich.-based transportation and logistics company posted net income of $48.5 million, or $1.84 a diluted share, for the quarter. That compared with $10.3 million, or 38 cents, during the same time the previous year. Total revenue increased by 13.5% to $505.7 million.
The Justice Department is probing potentially misleading statements by electric car maker Tesla and its executives about the automobiles’ autonomous capabilities, according to a source who asked not to be identified discussing the investigation. The Justice Department declined to comment, and Tesla representatives didn’t immediately respond to requests to comment on the case, which was first reported by Reuters. Tesla has faced increasing scrutiny from U.S. regulators over the safety of its automated driving systems, and a jury trial is scheduled in February over a driver fatality blamed on Autopilot.
The Port of Philadelphia will have less truck congestion and more capacity thanks to a $20.3 million federal infrastructure grant award. “We receive calls daily from shippers looking for dry storage. With the construction of a new 100,000-square-foot warehouse, we will have the ability to attract new business that will result in the creation of additional family-sustaining jobs for the region,” said Jeff Theobald, executive director and CEO of the Philadelphia Regional Port Authority (PhilaPort).
SAN DIEGO — American Trucking Associations revealed Oct. 25 that it estimates the shortfall of professional drivers has decreased slightly to 78,000 for this year. That’s down from an original estimate in 2021 of a record 80,000 drivers. But ATA says the shortage could swell to more than 160,000 over the next decade based on current driver demographic trends and projected growth in freight demand.
SAN DIEGO — American Trucking Associations President Chris Spear highlighted a string of victories the federation achieved in the past year during his annual state-of-the-industry address at the ATA Management Conference & Exhibition. Spear said one prominent victory for the industry came in Rhode Island, where a federal judge in September struck down as unconstitutional a trucks-only tolling plan managed by the Rhode Island Department of Transportation known as “RhodeWorks.” Spear also cited enactment of the $1 trillion Infrastructure Investment and Jobs Act as a top victory for the industry.
American Trucking Associations’ Management Conference & Exhibition is in full swing in San Diego. ATA President Chris Spear delivers his state of the industry address today, and Secretary of Transportation Pete Buttigieg speaks to attendees tomorrow. Catch up on all of the news and photos at our microsite at ttn.ws/mce2022.
U.S. trailer orders in September just cleared 25,000 and, while down about 10% compared with a year earlier, were the highest since the first quarter, ACT Research reported. Orders reached 25,700, according to ACT, which cited trailer makers’ initial reporting that will be revised. A year earlier net orders were 28,127. FTR revised its initial take on preliminary orders to 21,500 after first reporting them as 12,500 in an Oct. 17 release.
The fourth-largest for-hire carrier in North America reported positive third quarter earnings Tuesday. J.B. Hunt beat Wall Street analysts’ expectations and reported net earnings of $269.4 million, on revenue of $3.84 billion. The company pointed to strong segment growth as the driver. The carrier’s new president, Shelley Simpson, also participated in her first quarterly call in the post. Simpson is the first woman to hold that role.
September truck tonnage increased 5.5% year-over-year, and is up just slightly from August, according to the latest numbers released yesterday by American Trucking Associations. According to ATA, the latest gain put tonnage at the highest level since August 2019 and the third-highest level on record. ATA Chief Economist Bob Costello said, “This is another example of how the contract freight market remains strong despite weakness in the spot market this year.”
Three additional participants in staged accidents with trucks in the New Orleans area have pleaded guilty to conspiracy to commit mail fraud charges, bringing to 41 the number of convicted conspirators in the FBI’s “Operation Sideswipe” investigation. The pleas by the three individuals were the most recent charged for their part in what federal authorities believe were more than 100 staged accidents involving trucks and cars in the New Orleans area.
Retail sales of Class 8 trucks remained strong in September, checking in at 22,971, according to Ward’s Intelligence. That’s slightly below August’s number of 23,581, but well above last year’s 17,131 for the month. Five truck makers posted double-digit gains, led by Navistar’s International brand up by 85% and Paccar’s Peterbilt Motors up by almost 74%.
The trucking industry’s push to recruit drivers is as strong as ever despite signs freight demand may be softening. Supply chain talent has been in short supply, a situation that was amplified by the pandemic, according to Sylvie Thompson of NTT Data Services. “Just waiting for them to come will not work.” she said. American Trucking Associations estimates a shortage of about 80,000 drivers, one reason the industry has been fairly agnostic to market trends when it comes to driver recruiting.
Bison Transport has acquired Hermon, Maine-based truckload carrier Pottle’s Transportation, it was announced Oct. 12. The transaction will be effective Oct. 31. Bison will acquire all issued and outstanding shares of the trucking company through an affiliate. Financial details will not be made public.
The American Transportation Research Institute yesterday released a report showing that previous behavior continues to be an important predictor of whether a truck driver is likely to be involved in a crash. These types of previous behavior include receiving violations such as reckless driving or failure to yield right-of-way. The 2022 update to the group’s Predicting Truck Crash Involvement Research study also found that female drivers generally exhibit better safety performance than men.
Almost exactly five years after it was first revealed as a prototype, the Tesla Semi will finally be in a customer’s hands. Tesla CEO Elon Musk tweeted that PepsiCo will be receiving some of its preordered Semis on Dec. 1; the food and beverage company has said it has reserved 100 of the trucks and expects to deploy an initial 15 by the end of the year. The production was originally slated for a few years ago, but the automaker ended up prioritizing output of Model 3 sedans and Model Y sport utility vehicles while contending with battery cell and semiconductor supply issues.
Class 8 orders set a new record in September, hitting 53,700 per truck makers’ preliminary numbers. That’s higher than the previous all-time top result of 53,040, set back in August 2018. Last year for this period, orders were just 27,155. ACT Research reported the Class 8 order backlog for North America at the end of August was at 197,000.
The Commercial Vehicle Safety Alliance approved a new standard and procedure designed to govern inspections of autonomous commercial motor vehicles. CVSA President Chris Nordloh, a major with the Texas Department of Public Safety, said in a release it will provide law enforcement “with the information they need to be confident about the roadworthiness of autonomous trucks operating on our roadways.”
California is among the leaders pushing for wider adoption of zero-emission commercial vehicles, but the state is confronting the dual challenges of resolving a shortage of truck parking and the need to build charging infrastructure accessible to tractor-trailers. This is especially true near major container ports — a key area targeted for cleaner truck operations — according to a state transportation expert.
Werner Enterprises Inc. said it is acquiring Baylor Trucking, a move that expands its truckload operations. Through the deal, announced Oct. 3, Werner will add 200 trucks and 980 trailers owned by Milan, Ind.-based Baylor. Baylor operates two terminals that service the east-central and south-central regions of the country.
The state of New York is now permitting trucking companies and other qualified third parties to administer road tests for commercial driver licenses, a move to help address a shortage of commercial drivers in the state. The goal is to increase the number of testing sites statewide and lower wait times so more CDL drivers can get on the road faster. Qualified third parties may apply for certification to administer tests via the state DMV website.
The Federal Motor Carrier Safety Administration is proposing a rule that would require every commercial motor vehicle operating in interstate commerce be equipped with an electronic identification system. The purpose is to help inspectors better target high-risk motor carriers .In a notice posted in the Federal Register on Sept. 21, regulators ask trucking industry stakeholders for their input on several issues — including privacy and security — and how the agency should proceed on the numerous technology challenges involved.
The Federal Motor Carrier Safety Administration issued an emergency declaration related to Hurricane Ian for commercial vehicles directly assisting in transporting goods and disaster relief services. Commercial motor carriers and drivers providing direct assistance during the emergency are granted temporary relief from the Code of Federal Regulations entry that pertains to maximum driving time for property-carrying vehicles. The declaration, which covers seven states, was issued yesterday.
Hurricane Ian is bearing down on Florida and could end up costing a lot in damage, according to forecasters. The storm is forecast to strengthen today, bringing threats of 7-foot storm surges into Tampa Bay and heavy rains across the U.S. Southeast. One disaster modeler said damages and economic losses in the area could reach $45 billion to $70 billion if the forecast as of yesterday afternoon comes to pass, making it the sixth-costliest U.S. hurricane.
To better position the use of advanced energy in the nation’s heartland, governors of seven states have formed the Midwest Hydrogen Coalition to spur creation of a robust hydrogen market, supply chain and workforce. A memorandum of understanding by the governors of Indiana, Illinois, Kentucky, Michigan, Minnesota, Ohio and Wisconsin creates a coalition enabling each state to capitalize on its strengths to foster development of a Midwest hydrogen-production industry.
FedEx expects to save as much as $2.7 billion this fiscal year through wide-ranging cost-cutting measures in response to weakening business conditions. The courier said about $700 million of the savings will come this quarter through actions including a reduction in flight frequencies, deferred projects and the closure of some offices. FedEx also plans to increase delivery rates across its express, ground and home delivery operations by an average of 6.9% in January.
Robin Hutcheson, President Joe Biden’s nominee to lead the Federal Motor Carrier Safety Administration, was easily confirmed by the U.S. Senate on Sept. 22. The nominee, currently managing the agency in an acting capacity, was confirmed by a unanimous consent vote. Sen. Amy Klobuchar, a member of the Commerce Committee on freight policy, announced her confirmation on the floor of the chamber.
A federal judge has struck down as unconstitutional a truck tolling plan by the Rhode Island Department of Transportation that was challenged in a lawsuit by American Trucking Associations as specifically aimed at motor carriers traveling through the state. “We told Rhode Island’s leaders from the start that their crazy scheme was not only discriminatory, but illegal. We’re pleased the court agreed,” ATA President Chris Spear said in response to the ruling. The tolling plan was part of RhodeWorks, a state initiative to raise funds to repair highway infrastructure.
Truck tonnage rose 7.4% in August compared with 2021, and is up almost 3% from July’s number. The year-over-year increase was the largest gain since 2018 and the month-over-month jump is the biggest since 2019. American Trucking Associations Chief Economist Bob Costello said, “With the economy in transition to slower growth and changing consumer patterns, we may see more volatility in the months ahead. But the good news is that we continue to witness areas of freight growth in consumer spending and manufacturing, which is helping to offset the weakness in new home construction.”
Volvo Trucks unveiled its fully electric rear axle that is designed to free up space for batteries, the company announced Sept. 19. The e-axle was presented at the IAA Transportation show in Hannover, Germany.
Late last week, U.S. DOT announced $1.5 billion in federal infrastructure grants. Called Infrastructure for Rebuilding America grants, the funds will go to 26 highway, multimodal freight and rail projects in 22 states and Puerto Rico. Some of the projects include investments in truck parking, new or improved ports of entry near the United States and Mexico border, as well as road and bridge improvements.
A deal has been reached between union workers and six Class I railroads, averting a threatened strike that could have snarled the nation’s freight and passenger rail service. The U.S. Department of Labor announced early yesterday that a tentative agreement had been negotiated between the 13 railroad workers’ unions and the management council for the rail carriers. The announcement prevents what could have been a nationwide walkout by 150,000 locomotive engineers, conductors and other employees starting today.
Commercial vehicle inspectors in the U.S., Canada and Mexico combined to conduct more than 59,000 inspections during 2022 International Roadcheck, placing 12,456 vehicles and 3,714 drivers out of service. Commercial Vehicle Safety Alliance sponsors the event, which was held May 17-19. Each year, CVSA highlights an aspect of the roadside inspection, and this year, the focus was on wheel ends. Of the top 10 vehicle out-of-service violations, tires ranked second and wheels were seventh.
Daimler Truck North America introduced the Plus Series line of its Classes 6-8 Freightliner M2 and SD models, which the company said feature major updates to the trucks’ interior and electrical systems. Among key features of the Plus Series trucks are new safety and connectivity systems, fingertip-accessible transmission controls, a new digital screen, updated engine choices and a virtual technician system if help is needed.
Shailen Bhatt, President Joe Biden’s nominee to lead the Federal Highway Administration, will head to Capitol Hill tomorrow, to answer questions from the U.S. Senate Environment and Public Works Committee. Bhatt has a long history in the industry, both in the public and private spheres, and will likely face a confirmation vote this fall.
To help communities rebuild vital infrastructure damaged by extreme weather and wildfires, the U.S. Department of Transportation on Wednesday announced $512 million in Emergency Relief Program funds to help 30 states, the District of Columbia and Puerto Rico. Transportation Secretary Pete Buttigieg said, “We must address the devastating impacts of climate change and work to build more sustainable transportation infrastructure to better withstand its impacts for years to come.” Washington state received the highest number of emergency relief allocations for 10 events with a total of $21 million.
After a seven-year wait, FMCSA has released a draft copy of the Medical Examiners Handbook that offers revised guidance to help examiners ensure that truck drivers are in good health. The medical examinations are critical to confirming that drivers do not have serious medical conditions that could risk public safety. However, there are some criticisms of the newest version of the document, including a lack of guidance for how to consider certain disorders or illnesses. FMCSA is seeking comment on the draft handbook through Sept. 30.
Electric vehicle maker Nikola announced two executive level changes and also that it has commenced an exchange offer to purchase all outstanding shares of common stock of energy-storage technology company Romeo Power. Nikola is splitting its Energy and Commercial division. Pablo Koziner, currently president of Energy and Commercial, now is president of Commercial. Carey Mendes, who runs the Global Energy Finance division, has been named president of Energy. Koziner and Mendes will report to President Michael Lohscheller, who also will become CEO on Jan. 1.
The Federal Motor Carrier Safety Administration is seeking comment on a request by an alliance of large motor carriers for an exemption that would permit the carriers to report “actual knowledge” of a truck driver’s positive hair drug test to the agency’s Drug and Alcohol Clearinghouse. The carriers, who belong to a group called The Trucking Alliance, have drug tested tens of thousands of drivers using hair and urine samples, but claim the hair testing method is far more successful in detecting lifestyle drug users who don’t belong behind the wheel of a truck.
We just released our list of the Transport Topics Top 100 private fleets in North America. PepsiCo once again topped the list, and there was a shift at Nos. 2 and 3. Walmart took the No. 2 spot this year, passing Sysco, which now ranks No. 3. Rounding out the top 5 are US Foods and Performance Food Group. Check out the full list, analysis, and extras related to private fleets at ttnews.com.
The average retail price of a used Class 8 vehicle in July inched past $90,000 to tower over the year-ago price, but it also dipped slightly from June to extend the market’s ongoing softening, ACT Research reported. July’s average retail price was $91,928 compared with $64,226 a year earlier. But it also was down 1% from June’s $92,734 — the fourth consecutive sequential decline. ACT Vice President Steve Tam said the softer demand for used trucks comes as freight rates and the economy slow.
More autonomous truck testing is happening in Texas, this time an effort between Daimler Truck and Waymo. The companies will partner to put self-driving trucks on a route between Dallas and Houston via Interstate 45, a corridor that has become one of the country’s key testing grounds for driverless trucks. Waymo, a subsidiary of Google parent company Alphabet Inc., creates the technology that can be attached to trucks and other vehicles to make them fully autonomous. Its partnership with Daimler began in 2020.
July truck tonnage rose 5.1% year-over-year, but dropped about 1% from June’s number, per American Trucking Associations. The federation’s chief economist, Bob Costello, said: “While tonnage is much stronger than a year ago, the monthly gains have moderated as the year has gone on. The combination of softer consumption of goods, home construction falling and slower manufacturing activity are the main reasons.”
Heartland Express Inc. on Aug. 22 announced plans to acquire Contract Freighters’ nondedicated truckload business as well as Mexican entities under CFI Logistica in a $525 million deal. The enterprise value of the transaction, which Heartland said is the largest it has ever done, is calculated on a cash-free and debt-free basis and is subject to certain adjustments. The deal is expected to close in the third quarter. CFI Dedicated and CFI Logistics U.S. brokerage operations are not part of the transaction.
U.S. trailer orders in July roared ahead compared with a year earlier but slumped when measured against earlier months this year, ACT Research reported, citing trailer makers’ final data. Net orders were 16,997 compared with the low of 8,128 a year earlier, when the supply chain was at its most disrupted, as one trailer maker executive said at the time.. July’s order volume also was the second lowest this year. However, August orders may jump as some leading trailer manufacturers report they have opened or are about to open 2023 order boards.
Yesterday marked the second day of the National Truck Driving Championships driving portion, and competitors across the vehicle classes reported being impressed with the course’s degree of difficulty. The drivers took to the course Wednesday and Thursday, and today, winners of each division will be announced. They will advance to the final round, with winners crowned later tonight. Make sure to check back at ttnews.com for full results, photos, interviews and more.
LAS VEGAS — Navistar Inc. premiered a new, integrated powertrain as part of an update for its International LT Series truck line Aug. 16. The S13 Integrated Powertrain, which Navistar developed in collaboration with parent company Traton Group, consists of three distinct components — an engine, a transmission and an aftertreatment system. Company executives said the setup delivers a fuel-efficiency gain of up to 15% compared with its first-generation A26 engine.
Classes 4-7 U.S. retail sales in July slipped 7.3% compared with a year earlier, and only Class 6 with its typical base of bigger customers posted a gain, Wards Intelligence reported. Class 6 sales rose 24.1 percent to 5,440 compared with 4,385 a year earlier. Total sales were 17,682 compared with 19,082 in the 2021 period. Except for March’s 21,002 sales, the medium-duty market has been steady, albeit at a low level. Only 1,932 trucks separate the peak from the low in the rest of the months this year.
A bill to force truckers to stay away from Delaware residential parking or pay skyrocketing fines up to $2,000 awaits action by Gov. John Carney after it sailed through the state General Assembly largely unopposed. Sen. Nicole Poore described how the legislation would change the state parking code by drastically hiking minimum and maximum penalties for violating parking restrictions in residential districts. Today’s parking fines of $10 to $25 would soar to $100 to $500.
Steven Cliff, the head of the National Highway Traffic Safety Administration, is stepping down from his post for a leadership role at the California Air Resources Board. Transportation Secretary Pete Buttigieg took to social media on Aug. 12 to praise Cliff’s contributions at the agency. “Thanks to administrator Cliff for his tremendous service and leadership at NHTSA and his work to protect the lives of the American people by strengthening the safety of motor vehicles and reducing their emissions,” the secretary wrote, noting that NHTSA’s chief counsel, Ann Carlson, would manage the agency’s duties on an interim basis.
Debate on a multibillion-dollar budget bill targeting supply chain connectivity concerns, clean energy initiatives and economic incentives remains front-and-center on Capitol Hill. A vote on the $740 billion Inflation Reduction Act is expected in the House of Representatives today. That follows Senate passage of the bill, which occurred Aug. 7 along party lines. House approval of the Senate-passed bill would advance the measure to President Joe Biden’s desk for his signature. Its enactment would greenlight key pillars of the president’s Build Back Better social economic and infrastructure agenda.
Soaring prices for diesel fuel, rising maintenance costs and higher wages for drivers pushed the price of operating a truck up 12.7% in 2021 to $1.855 per mile — the highest level on record — according to a report released Aug. 10 by the American Transportation Research Institute. The study determined that higher fuel prices were the biggest contributor to the gain, up 35.4% compared with 2020. Repair and maintenance costs spiked by 18.2% compared with 2020, and driver wages continued their upward trend of the past several years, rising 10.8% compared with 2020. On a cost-per-hour basis, costs increased to $74.65.
President Joe Biden signed into law yesterday legislation designed to enhance domestic semiconductor manufacturing and alleviate supply chain bottlenecks. Specifically, the $280 billion CHIPS and Science Act dedicates more than $50 billion in grants for the semiconductor sector and related industries. The law also proposes to strengthen several programs related to science, technology, engineering and mathematics.Biden said the bill was in the best interests of America’s economic and national security.
In the first half of 2022, independent engine maker Cummins Inc. supplied a leading 47,713 Class 8 diesel engines, or 35.5% of the 134,373 used, Wards Intelligence reported. Detroit Diesel, a brand of Daimler Truck North America, was next highest, supplying 40,632 Class 8 engines for a 30.2% share.
Industry supplier Commercial Vehicle Group reported second-quarter net income and revenue fell, and new pricing began in July. Net income for the quarter ended June 30 was $2.5 million on revenue of $250.8 million, compared with net income of $5.1 million on revenue of $257.9 million a year earlier. New pricing began with its largest customer on July 1, and with several other customers in 2022, and the company expects that to benefit its bottom line for the rest of the year.
Mario Harik will succeed Brad Jacobs as chief executive of XPO Logistics starting in the fourth quarter, the company announced Aug. 4. Harik also will join the board of directors after XPO’s planned spinoff of its tech-enabled brokerage platform in Q4. Jacobs will remain with XPO as executive chairman and become nonexecutive chairman of the spinoff. The company further announced that Harik has been named president of the less-than-truckload division. He had served as acting LTL president since October 2021.
GXO Logistics Inc. closed out its first year as an independent company with revenue and earnings growth in the second quarter of 2022, the company reported Aug. 2. The Greenwich, Conn.-based contract logistics business posted net income of $52 million, or 44 cents a diluted share, for the three months ending June 30. That compared with $14 million, 10 cents a share, during the year-ago period when the company’s operations were part of XPO Logistics. Total Q2 revenue for GXO increased by 15% to $2.16 billion compared with $1.88 million.
Western Star is launching a new Class 8 over-the-road model that parent company Daimler Truck North America promises will deliver on the niche brand’s reputation for dependability and toughness, while adding advanced safety, driver comfort and fuel efficiency features. The Western Star 57X, which the company showcased in Ypsilanti, Mich., joins two earlier versions in its X series — the 47X, introduced in September 2021, and 49X, introduced a year earlier, both built for vocational applications.
Autonomous technology developer Aurora Innovation Inc. and Schneider National Inc. have announced a commercial pilot effort to haul freight for Schneider’s customers with Aurora Driver, Aurora’s autonomous technology. Under the pilot, Aurora will begin weekly autonomous hauls beginning the week of Aug. 1 between Dallas and Houston, with Aurora vehicle operators on board the trucks.
Truck dealership Rush Enterprises reported record second-quarter net income and revenue, citing strong freight demand and consumer spending that resulted in increased sales of commercial vehicles, parts and services. Net income for the quarter ended June 30 was $110.6 million on revenue of $1.8 billion compared with net income of $58 million and revenue of $1.3 billion a year earlier. The company reported it sold 4,168 new Class 8 trucks in the second quarter, an increase of 41% compared with the second quarter of 2021.
Legislation to boost domestic semiconductor manufacturing while improving freight access along the nation’s supply chains was sent to President Joe Biden’s desk July 28. The legislation, which drew bipartisan support and which is strongly endorsed by the commercial transportation sector, was approved in the U.S. House of Representatives 243-187, a day after its 64-33 bipartisan passage in the Senate. President Biden indicated he would enact it into law upon its arrival.
Operations at the Port of Oakland in California have resumed after a pause due to protesters, who were there to speak out against AB 5. The law, which has gone into effect after a lengthy legal battle, aims to reclassify owner-operators as employees of carriers. Some protesters remain on site, but are using “free speech zones,” and not impeding operations, according to a port representative. One of the major issues with the law is the uncertainty it has sparked, as no one knows quite how it will be enforced or implemented.
Researchers from the Texas A&M Transportation Institute, the University of Wisconsin-Madison and ParkUnload are conducting a truck parking pilot study to better understand how truck drivers use existing parking spaces and to test the benefits of using a mobile parking app. The study, funded by the Federal Motor Carrier Safety Administration under a cooperative grant program, will select certain truck parking spaces along Interstate 80 in Iowa and along I-39/90/94 in Wisconsin.
The price of diesel has fallen for the fifth straight week, and yet it remains nearly $2 a gallon more than a year ago. This week’s 16.4-cent drop brings it to $5.268 for the national average, down by 54.2 cents from its all-time high of $5.81 on June 20. One region, the Gulf Coast, slid below $5 a gallon, as a 17.2-cent drop brought the price down to $4.911 a gallon.
Net U.S. trailer orders in June rose to 25,444, ACT Research reported July 22. It was an increase of about 10,000 orders compared with the preliminary number issued only days before. At the time the preliminary order volume of 15,300 was released, four leading trailer makers told Transport Topics they had not opened their 2023 order boards. Three then confirmed that remained the case after the revised number was released, and the fourth one did not respond immediately to a request for comment. A spokesman for a fifth trailer maker, publicly traded Wabash, chose not to comment. Wabash has scheduled an earnings call for July 27.
U.S. trailer orders in June fell to 15,300, by far the low point of the year, ACT Research reported, citing manufacturers’ preliminary data. A year earlier, net orders were 10,952, according to ACT. FTR pegged June preliminary orders at 14,400. Dry vans made up half the orders in June, according to FTR’’s Don Ake, and there is still room for refrigerated trailer orders, but not much for flatbeds or tanker trailers.
One of the largest trucking companies in the U.S., J.B. Hunt, recently announced Q2 earnings and some executive news. The carrier reported more than $250 million in net earnings compared to the same period in 2021, along with a 32% jump in revenue to $3.84 billion. Those numbers handily beat Wall Street expectations. Additionally, the company announced Shelley Simpson will be taking on the role of president. The first woman to hold the post, she replaces John Roberts, who will remain CEO.
Truck tonnage in June soared 7.9% above the same month last year, according to American Trucking Associations' For-Hire-Truck Tonnage Index, which was released July 19. Sequentially, from May to June, the index increased by 2.7% after showing a 0.3% improvement in May. The increase in the June index is the 10th consecutive year-over-year gain and the biggest jump since June 2018, according to ATA Chief Economist Bob Costello.
A number of California owner-operators have taken to protesting the AB 5 law at the state’s busy ports. The law, which was first passed a few years ago, is now in effect for trucking companies after the Supreme Court chose not to hear the case. It requires companies to reclassify owner-operators as employees, but, among other concerns, remains lacking in clarity. A spontaneous protest broke out at the ports of Los Angeles and Long Beach last week; another one began at the Port of Oakland yesterday.
President Biden took action on Friday to keep 115,000 rail workers on the job while arbitrators that he appointed develop a set of contract recommendations for the railroads and unions to consider. Biden had to act before today to prevent a possible strike. If the railroads and their 12 unions can’t agree on a contract within the next 60 days, Congress likely would step in to prevent a strike by voting to impose terms or taking other action.
With an Aug. 1 deadline looming, states are finalizing their electric vehicle infrastructure deployment plans. Plans must be submitted to the Joint Office of Energy and Transportation. Then the Federal Highway Administration will approve eligible plans by Sept. 30 before funds are issued from the National Electric Vehicle Infrastructure Formula Program (NEVI). With $1 billion earmarked annually from this year through 2026, NEVI funding is to be spent on projects directly related to vehicle charging.
Retail sales of Class 8 trucks in June hit the highest point of the year and improved 12.7% compared with the previous June, Wards Intelligence reported. Sales jumped to 22,358 after reaching 19,840 a year earlier. Year-to-date sales rose 0.6% to 112,255 compared with 111,552 in the 2021 period.
XPO Logistics’ new technology-enabled brokerage platform that is set to begin operations in the fourth quarter will be called RXO, Greenwich, Conn.-based XPO announced July 12. In March, XPO announced it planned to spin off its brokerage platform into its own separate, publicly traded division. Drew Wilkerson, President of XPO’s North American Transportation division, has been tapped to be CEO of the new company, which will be headquartered in Charlotte, N.C.
It’s officially mid-July, which means the congressional August recess is looming. Relevant on the Senate side is an emphasis on fuel-centric and semiconductor measures. On the House side, Democrats are planning to schedule a vote this month on fiscal 2023 funding legislation. The committee-passed transportation funding bill would provide the Federal Motor Carrier Safety Administration with $367.5 million for safety operations and programs. Amid a contentious midterm election year, it remains to be seen what will get passed on the limited timeline.
Before the August recess, congressional leaders intend to finalize supply chain-centric legislation designed to boost domestic manufacturing of semiconductors. Policymakers already gave bipartisan backing to the U.S. Innovation and Competition Act, which would seek to enhance programs at the Department of Energy. A final legislative product is likely to dedicate about $50 billion for the semiconductor industry.
The U.S. Energy Information Administration yesterday released diesel prices covering a three-week reporting delay caused by a network problem. The lapse in data, caused by a voltage irregularity that sparked a hardware failure, came during a time of historic highs in diesel prices. Per the new data, the national average price for diesel fell 10.8 cents to $5.675 a gallon last week. The new data also shows this marks the third consecutive week of diesel price declines.
The U.S. Energy Information Administration plans to release diesel prices today for the first time since June 13. EIA says at 4 p.m. Eastern Daylight Time it will release diesel price data for the weeks ending June 20, June 27 and July 4. Weekly releases had been delayed due to a hardware failure, and it came on the heels of the use of new methodologies to calculate the weekly average prices nationally and by region. The national average for a gallon of gasoline was released this week, showing it down 10.1 cents to $4.771 a gallon.
Volvo Group is looking to expand its autonomous and electric truck programs to build market share in its key U.S. market and drive revenue and profits higher, top executives said during a recent presentation. At the same time, Volvo Group is taking a “step by step” approach to strengthen its supply chain, according to Martin Lundstedt, CEO of the Sweden-based truck maker. Different dates are being suggested as to when autonomous freight shipments will begin, but Volvo believes they will start around the middle of this decade.The company predicts it will take a gradual shift over several years before all regions in the United States can be covered.
The U.S. Energy Information Administration is delaying its weekly release of national diesel prices for a third week in a row due to network issues. EIA usually releases national diesel and gasoline prices together on a weekly basis but has not released diesel prices since June 13. EIA says it won’t be able to release diesel prices today but says it is still able to collect data. It says a data voltage irregularity caused hardware failures on two of its main processing servers and it is working around the clock to fix the affected systems.
Shippers are looking at developing their own truck fleets due to low service levels and greater affordability, a leading logistics report says. The Council of Supply Chain Management Professionals released its 2022 “State of Logistics” report June 21 that was produced with consulting firm Kearney and Penske Logistics. It discussed annual comparisons of freight costs in the U.S. supply chain. It predicted that a drop in demand and rates in the second quarter of this year “will squeeze carrier margins” while shippers “miffed” by current service levels, including driver shortages, will seek to have their own trucking fleets.
To test the use of liquid hydrogen as a commercial vehicle fuel, Daimler Truck announced it is putting a prototype heavy-duty truck and filling station into operation in Germany. Series production of hydrogen-based trucks suitable for longhaul applications is planned for the second half of the decade, according to Daimler. They are intended to have a range of up to 621 miles. “We have signed agreements with the energy groups BP, Shell and TotalEnergies for the construction of hydrogen filling stations,” Daimler Chairman Martin Daum said recently during the company’s first annual general meeting. “In total, more than 300 filling stations are set to be built in Europe by 2030. We also took a stake in H2 Mobility Germany, an operator of hydrogen filling stations.”
USA Truck announced Friday it is being acquired by DB Schenker in a $435 million deal. Under the terms of the agreement, DB Schenker is acquiring all outstanding common stock in USA Truck. All USA Truck cash and debt is included in the price. The stock being acquired is valued at $31.72 per share. The USA Truck board of directors unanimously approved the deal, but it’s still subject to regulatory reviews and approvals. USA Truck ranks No. 57 on the Transport Topics Top 100 list of the largest for-hire carriers in North America, while DB Schenker (North America) ranks No. 24 on the TT Top 100 list of the largest logistics companies in North America.
As China lifts its latest coronavirus lockdowns, there is concern the resulting influx of goods flowing from the country could renew bottlenecks at ports in the United States. Earlier this year, Shanghai and other Chinese port cities returned to lockdowns in response to a re-emergence of the coronavirus. On June 1, Shanghai reopened and some companies resumed production output. Since then, some bottlenecks have formed because of inland transportation, labor restraints and the availability of raw materials. FourKites on June 22 released data showing the two-week average shipment volume for loads traveling from China to the United States was up 10% compared with the day before the latest lockdowns went into effect March 12.
President Joe Biden’s nominee to lead the federal agency on trucking affairs was easily approved by a U.S. Senate panel yesterday. The Commerce Committee voted to back the nomination of Robin Hutcheson, picked for the top job at the Federal Motor Carrier Safety Administration. Her nomination advances to the Senate floor for consideration, though floor managers have yet to schedule that vote. During her confirmation hearing, Hutcheson, FMCSA’s acting leader, pledged to pursue safety initiatives, help to alleviate supply chain bottlenecks and review technological advancements.
Truck tonnage jumped 3.7% in May compared with year-ago levels, marking the ninth consecutive year-over-year gain and the largest since April 2021, American Trucking Associations announced. The ATA For-Hire Truck Tonnage Index equaled 117.1 last month, compared with 113.3 a year ago. The May result also represented a 1.4% gain over 116.5 in April. ATA Chief Economist Bob Costello said the freight market is shifting amid a busy environment for loads.
For-hire motor carriers achieved significant revenue gains and higher profits last year, powered by surging freight demand. This growth among large fleets is reflected in our Top 100 For-Hire Carrier rankings for 2022, now available in print and online.
Fleet technology supplier Samsara is rolling out product updates designed to streamline drivers’ daily routines, mitigate unsafe driving and improve fleet management. The updates include enhancements to Samsara’s Driver Workflows, which guide drivers through various compliance- and safety-related tasks to help simplify those processes. Samsara also announced In-Cab Nudges, a new feature that gives drivers opportunities to self-correct risky driving behaviors after receiving an in-cab alert. If drivers cease the unsafe behavior they can maintain their safety scores and avoid potential coaching.
President Joe Biden has sent a letter to U.S. oil refiners to tell them that unprecedented profit margins are unacceptable, while calling for immediate action to improve capacity as the soaring price of gasoline feeds record inflation and fears of a recession. Biden said his administration was prepared to take steps that would help companies increase output in the near term, and said he’s ordering Energy Secretary Jennifer Granholm to hold an emergency meeting on the subject in the coming days. Oil industry leaders pushed back, with Chet Thompson, president of the American Fuel and Petrochemical Manufacturers association, saying, “Any suggestion that U.S. refiners are not doing our part to bring stability to the market is false.”
Retail sales for trucks in classes 4 through 7 sank 16.3% in May compared with a year earlier to just below 17,000, Wards Intelligence reported. It was the largest year-over-year percentage decline to date in 2022. Sales were 16,859 compared with 20,134 a year earlier, according to Wards. One truck maker said the priority in production has been and will continue to be heavy-duty trucks versus medium-duty, but said manufacturing pressure for both sectors is easing.
The nationwide average price for a gallon of gasoline has hit $5 for the first time ever. Auto club AAA said the average price June 11 was a fraction of a penny over 5 dollars. Motorists in some parts of the country, especially California, are paying far above that. The national average price has jumped 19 cents in just the past week, and it is up $1.93 from this time last year.
U.S. Class 8 retail sales in May rose 13.9% compared with a year earlier to just clear 20,000, Wards Intelligence reported June 10. A trend is building. Sales in the two previous months also percolated higher compared with almost every month in the past 12 months.May sales were 20,713 compared with 18,187 in the 2021 period. All truck makers but two increased sales in May compared with a year earlier. Volvo Trucks North America climbed the most, 80.2% to 2,546 and a 12.3% share in May.
House Transportation leaders called on the nation’s top transportation officer to increase resources for the expansion of parking facilities for truck drivers. Reps. Peter DeFazio, an Oregon Democrat, and Sam Graves, a Missouri Republican, wrote to Secretary Pete Buttigieg, saying that increased funding for truck parking availability would help alleviate long-standing supply chain inefficiencies. The trucking industry has cited a lack of parking spaces as a top concern for several years.
Robin Hutcheson, President Joe Biden’s nominee to oversee FMCSA, discussed administration efforts to bolster the trucking industry during her confirmation hearing June 8. She appeared before the Senate Commerce Committee, assuring the panel her team is focused on the implementation of trucking workforce provisions included in the infrastructure law, such as an apprenticeship to allow commercial drivers under 21 to operate trucks interstate. Committee Chairman Sen. Maria Cantwell’s office told us she expects to schedule a committee vote on Hutcheson this summer.
Uber Freight and Waymo Via have entered into a partnership that aims to integrate Uber’s freight marketplace with Waymo’s automated truck technology, the companies announced June 7. The businesses plan to blend their products and collaborate on development of tools and infrastructure to advance deployment of autonomous trucks for Uber Freight’s shipper and carrier customers. Waymo also intends to reserve billions of miles of its goods-only capacity for the Uber Freight network as part of the long-term agreement.
The average price of diesel shot up last week by 16.4 cents to $5.703 a gallon, according to Energy Information Administration data released June 6. The previous record, notched about a month ago, was $5.623.
North American Class 8 orders fell to 14,000 units, ACT Research reported June 3, citing truck makers’ preliminary data, as underlying conditions that held back order intake sharply in April were little changed. Orders a year earlier hit 23,072, according to ACT. The last time Class 8 orders were in the 14,000-unit range was February 2020. FTR pegged May orders at 13,300. Class 8 orders have totaled 270,000 units over the past 12 months, according to FTR.
Transportation Secretary Pete Buttigieg earlier this week kicked off a construction project in Nevada that will upgrade an aging Interstate 15 interchange to improve travel for truckers and all drivers accessing the Las Vegas Strip. Buttigieg noted that the interchange project will replace a bridge, improve access ramps, double sidewalk widths for pedestrians and add advanced traffic safety features to reduce crashes while dramatically improving traffic flows into and out of the Strip.
President Joe Biden’s recent interstate designation of a New Mexico-to-Texas freight corridor will give truckers a less congested route for future U.S. trade with Mexico and Canada. Departments of transportation in New Mexico and Texas have begun evaluating their portions of a new freight corridor since Biden on March 15 designated an entire roadway system, called Ports-to-Plains Corridor, as a future interstate highway when signing the fiscal 2022 omnibus appropriations bill. This interstate designation had been sought since 1998.
The Federal Motor Carrier Safety Administration has extended regulatory waivers related to truckers’ allowable work time, citing continuing public health concerns over COVID-19. The waiver associated with commercial drivers’ maximum driving time for property-carrying vehicles was extended through Aug. 31.
The Truck and Engine Manufacturers Association filed a federal lawsuit on May 27 alleging that California environmental regulators have failed to give manufacturers enough lead time to meet the state’s new, more rigid emissions standards. In its lawsuit, EMA alleges that the federal Clean Air Act requires that manufacturers be given “four full model years” of lead time before new emission standards become effective. The manufacturers said that the California Air Resources Board gave them only two years of lead time.
The average price of a used Class 8 truck reached $101,192 in April. But April dipped compared with March and its record price of $101,716, marking only the second month-over-month decline since July 2020. Used Class 8 sales in April essentially were level at 22,100 compared with 21,700 in the 2021 period, according to ACT Research, and lower compared with 25,200 in March.
A federal court is finally hearing oral arguments in a 4-year-old legal challenge to the state of Rhode Island’s trucks-only tolling program. The trial in the lawsuit — filed by American Trucking Associations and two motor carriers over the Rhode Island Department of Transportation’s tolling plan — began Monday and is expected to last up to three weeks. ATA specifically alleges RhodeWorks tolling plan violates the commerce clause of the U.S. Constitution by discriminating against interstate commerce and out-of-state truckers in both intent and effect. The program originated during the administration of then-Gov. Gina Raimondo, who now is secretary of the Commerce Department.
Truck tonnage in April increased on an annual basis but declined compared with March, American Trucking Associations reported. The seasonally adjusted ATA For-Hire Truck Tonnage figure of 115.8 dipped 2% from its 118.2 result from March, the first sequential decline after eight consecutive gains. But the index rose 1.8% compared with April of 2021.
Cargo continues to flow into Los Angeles despite some of the COVID lockdowns in China, Port of Los Angeles Executive Director Gene Seroka says. “The situation in China may lead to a lull in volume with a fairly quick bounceback once the lockdowns end,” said Seroka. Los Angeles reported its second-busiest April in its 115-year-plus history, moving 887,357 20-foot-equivalent containers, even as it saw a 6.3% decline from April 2021’s record of 946,966 TEUs.
The spot market has been declining, but with rates and volumes still above historic norms it’s unclear where it will stabilize. Ben Cubitt, senior vice president of consulting at Transplace, says rates per mile have declined since Q4 from $3.50 to about $2.36. Truckstop.com regularly recorded more than a million daily postings on its load board platform throughout last year. That has steadily decreased since the first week of January and load postings were around 900,000 daily during the week of May 8. Dean Croke, principal analyst at DAT Solutions, says rates are still historically high but carrier operating costs have gone up as much as 50 cents a mile over last year. Cubitt expects spot rates to start leveling out midsummer based on historic norms.
American Trucking Associations in a 29-page written comment on the U.S. Environmental Protection Agency proposal to reduce nitrogen oxides said it generally supports the goal. However, the federation stressed that its fleet members’ message is to minimize purchase, maintenance, warranty and operational costs and maximize performance, durability and driver satisfaction. Of the two options in the proposal, ATA rejects one similar to the California Air Resources Board standard, calling it an “unattainable approach as the next national standard for diesel freight trucks for the rest of the country.”
Classes 4-7 retail truck sales dropped 15.4% in April compared with a year earlier, according to industry analyst Wards Intelligence. Total sales were 16,439 compared with 19,431 in the 2021 period. The combined Classes 4- 5 segment drove the decline, falling 38.1% to 7,117 compared with 11,502 a year earlier. It also marked the segment’s lowest volume of the year.
Nearly 43,000 people were killed on U.S. roads last year, the most in 16 years as Americans returned to the highways after the pandemic forced many to stay at home. The 10.5% jump over 2020 numbers was the largest percentage increase since the National Highway Traffic Safety Administration began its fatality data collection system in 1975. Forty-four states had increases in traffic deaths in 2021 compared with the previous year, led by Texas, California and Florida. Posting declines were Wyoming, Nebraska, Wisconsin, Maryland and Maine. Rhode Island's figures were unchanged. Fatalities involving at least one large truck were up 13%.
Six months after President Biden signed the $1 trillion infrastructure package, the government says there are 4,300 projects underway with more than $110 billion in funding announced. Of that $110 billion, $52.5 billion is for federal highway funding this fiscal year and $20.5 billion for public transit. White House senior adviser Mitch Landrieu said the roads, bridges and other projects are laying “a foundation for tremendous growth into the future.”
Ryder System Inc. has received an offer from HG Vora Capital Management to buy the trucking company for about $4.4 billion. HG Vora, a hedge fund that has a 9.9% stake in Ryder, offered $86 in cash for each Ryder share it doesn’t already own. Ryder said it would review the offer with its financial and legal advisers to determine the best course of action for its shareholders. Ryder Supply Chain Solutions ranks No. 11 on the Transport Topics Top 100 list of the largest for-hire companies in North America.
Class 8 retail truck sales in April were flat compared with a year earlier, coming in at just over 19,000 but continuing to improve from the lows seen at the beginning of the year, Wards Intelligence reported. Sales dipped to 19,052, down 1.3% compared with the 2021 period, according to Wards. Three truck makers — Kenworth, International and Mack Trucks — posted double-digit declines compared with a year earlier.
Autonomous driving technology company Aurora Innovation will collaborate with Covenant Logistics to refine a self-driving truck system that could robotically emulate the speed of human team driving. Covenant will be using the Pittsburgh-based self-driving technology company’s Aurora Horizon product. It is a robotic driver-as-a-service business model that will offer fleets the ability to purchase vehicles powered by the Aurora Driver system, subscribe to use Aurora Driver and use Aurora-certified fleet service partners to operate autonomous mobility and logistics services.
Trucking fleets are increasingly receptive to alternative fuels and sustainable technology, according to consulting firm Gladstein, Neandross & Associates’ recent survey of 250 public, private and municipal fleets. Among the reasons fleets cited were their move toward environmental sustainability and carbon reduction, and the need to find more cost-effective transportation options given the current high cost of fuel. The findings were released yesterday at the Advanced Clean Transportation Expo in Long Beach, Calif.
Electric truck startup Lordstown Motors has pushed back a deadline to complete the sale of its Ohio assembly plant to Foxconn by four more days to May 18. This marks the second delay of a deal that had originally been set to close last month. If it isn’t finalized by May 18 and the deadline isn’t extended, Lordstown would have to pay back $200 million in down payments — and has said it does not have the cash to do so. The two companies are working to complete their agreement, which also includes a contract manufacturing arrangement with Foxconn and plans for joint development of future vehicles.
America’s employers added 428,000 jobs in April, extending a streak of solid hiring that has defied punishing inflation, chronic supply shortages, the Russian war against Ukraine and much higher borrowing costs. The May 6 jobs report from the Labor Department showed that last month’s hiring kept the unemployment rate at 3.6%, just above the lowest level in a half-century. The economy’s hiring gains have been remarkably consistent in the face of the worst inflation in four decades. Employers have added at least 400,000 jobs for 12 straight months.
China’s lockdown of key port cities because of a new outbreak of the coronavirus is expected to have serious ramifications for trucking in the United States. The two-week average shipment volume for loads traveling from China to the United States was down as much as 20% at the end of April compared with the pre-lockdown period. Ryan Closser, director of network enablement at FourKites, said the slowdown could then be followed by a surge of ships when the lockdowns lift. This could cause bottlenecks when they finally reach the West Coast.
Trucking and safety groups have expressed mixed reactions to a proposal to consider requiring speed limiters on new commercial trucks. The Federal Motor Carrier Safety Administration recently announced its intent to advance a rulemaking on the technology, which the agency says is a follow-up on a 2016 joint proposal it issued with the National Highway Traffic Safety Administration. So far, FMCSA has not specified the speed at which trucks might be governed. American Trucking Associations says it is pleased FMCSA is taking a “constructive, data-driven approach.” The Owner-Operator Independent Drivers Association says limiting highway speeds for large trucks could create unnecessary congestion and also dangerous speed differentials.
Norman Mineta, who broke racial barriers for Asian Americans serving in high-profile government posts and ordered commercial flights grounded after the 9/11 terror attacks as the nation’s federal transportation secretary, died Tuesday at the age of 90 of a heart ailment. Mineta was the first Asian American to become a federal Cabinet secretary, serving under both Democratic President Bill Clinton and Republican George W. Bush. Bush awarded Mineta the nation’s highest civilian honor, the Presidential Medal of Freedom.
The national average price for diesel has set a new all-time record at $5.509 a gallon, after a surge of 34.9 cents this past week. The previous record was $5.25, set March 14. In New England the average price skyrocketed 86.1 cents a gallon to shatter the $6 ceiling at $6.101. It also topped $6 in the Central Atlantic and West Coast regions, and remained above $6 in California.The data comes from the weekly report by the Energy Information Administration.
The weather is getting warmer and the competition is beginning to heat up as state associations conduct their state truck driving championships. These events are the first steps for drivers hoping to make it to the National Truck Driving Championships in August, and we are tracking those developments in our “Road to NTDC” coverage, now online. Get a state-by-state schedule, winners in all classifications as they become known, and photos from the state events. It’s all at ttn.ws/ntdc2022.
Calling it “a great day that we have been looking forward to for a long time,” Nikola CEO Mark Russell noted that having several Tre Class 8 battery-electric trucks ready for delivery will generate the 7-year-old company’s first-ever quarterly revenue. The vehicles were manufactured at the new assembly plant in Coolidge, Ariz. On Wednesday, industry and political dignitaries were given a tour of the facility, which currently covers 290,000 square feet. The plant will encompass 1 million square feet once all planned expansions are complete.
Secretary Pete Buttigieg became the first transportation secretary in more than two decades to testify in front of the Surface Transportation Board, as he made an appearance to discuss supply chain delays, particularly as they pertain to rail. Buttigieg testified April 26 during the first of two days of the inquiry. Issues on the table included a shortage of qualified workers, impacts of the rail delays on the agriculture industry and how rail issues are contributing to supply chain challenges at the nation’s ports.
The average retail price of a used Class 8 vehicle has pushed past the $100,000 mark for the first time, ACT Research reported. In March, used Class 8 trucks sold for an average of $101,736, nearly double what they sold for a year ago, ACT said. Total sales climbed, too. ACT estimated used Class 8 sales in March reached 25,200 compared with 23,800 a year earlier. Fleets are not selling their used trucks at the normal pace because they can’t replace them with new trucks, as truck makers continue to face persistent supply chain woes that have crimped production for many months.
Engine maker Cummins Inc. says its filtration unit has confidentially filed to go public. The IPO is expected to commence after the completion of the review process by the Securities and Exchange Commission. Last August, Cummins reported it was exploring what it called “strategic alternatives” for its filtration business unit, which it launched in 1958. The division notched annual sales of $1.2 billion in 2020. At that time, Chairman and CEO Tom Linebarger said Cummins was exploring everything from a sale to a spinoff or another kind of strategic option in an effort to realize value for Cummins’ shareholders.
One of the major concerns that many people in the trucking industry have about autonomous trucks is the expectation that their use would lead to drivers losing their jobs. But Daimler Truck CEO Martin Daum doesn’t believe that will be the case. Daum says autonomous trucks will improve highway safety, counter the trucking industry’s driver shortage, boost equipment utilization and help meet rising freight demand. Daum says Daimler is focusing its efforts on certain stretches of highway that are best suited to autonomous operation, and that only about 6% of freight might move by autonomous trucks. “That means 94% of the freight still needs drivers to be delivered,” he said, adding that freight volumes likely will have expanded faster than autonomous truck deployment, meaning the industry will continue to need more drivers, not fewer.
Torc Robotics, a self-driving truck developer and subsidiary of Daimler Truck, recently highlighted its autonomous progress during a demonstration in New Mexico. The event included four Freightliner Cascadia tractors from its test fleet, each outfitted with autonomous driving sensors and software and with safety drivers behind the wheel. The trucks demonstrated autonomous driving on highways and surface streets, among other features. One executive said Torc plans to begin its first pilot program with a trucking customer later this year.
March truck tonnage rose 3.8% compared with year-ago levels, and also posted a first-quarter gain over the same period in 2021, American Trucking Associations reported. The ATA For-Hire Truck Tonnage Index for March reached 118.8, compared with 106.8 in March 2021. Year-to-date, tonnage is up 2.6% compared with the first quarter of 2021. On a month-to-month basis, the index was 2.4% higher than the 116.1 recorded in February of this year. ATA Chief Economist Bob Costello noted that the March result marked the seventh straight month of annual gains and was the largest across that stretch.
The national average for a gallon of diesel increased by 2.8 cents to $5.101 a gallon, the Energy Information Administration reported Monday. That halts a brief two-week streak of declines. The price of diesel did fall in the New England region, by four-tenths of a cent, but it increased in the other nine. A gallon of diesel now costs $1.977 more than a year ago.
The head of American Trucking Associations called on Texas Gov. Greg Abbott to end the truck inspection initiative he recently launched at the state’s border with Mexico, chastising the plan for the crippling effect it is having on the economy, and trucking in particular. “Gov. Abbott is directly responsible for applying these new, senseless inspections on our industry, as well as the adverse impact they are having on the economy and hardworking Americans, including truckers,” ATA President Chris Spear said April 15. “We ask that the governor scrap his misguided scheme immediately.” Spear’s views echoed earlier remarks by John Esparza, president and CEO of Texas Trucking Association, who said truck drivers are waiting for hours at the border trying to cross without access to amenities such as food and restrooms.
The CEO of XPO Logistics says an over-infusion of stimulus money into the economy is the root cause of the current high inflation rate. Brad Jacobs, who also is chairman of the Greenwich, Connecticut-based carrier, made his comments during a presentation at the Economic Club of New York on Wednesday. He said that the Trump and Biden administrations deserve some of the blame for the rising cost of goods. “We put in way too much stimulus, and this contributed to inflation and we have the hangover now, and it’s going to take a while,” Jacobs said.
A series of sales figures released over the past couple days shed some light on the equipment landscape amid continued supply chain issues and uncertainty. Sales of new Class 8 trucks hit their highest point of the year so far in March, at 20,359. That’s a bit lower than last year’s March total but an increase over a slow start in January and February. Medium-duty sales followed a similar pattern, with March sales hitting 21,002. And preliminary figures for trailer orders in March showed a surge to 37,900, the highest spike since December 2020.
Rand McNally moved to elevate its place in the connected vehicle space by acquiring Fleetsu, the company announced April 12. Australia-based Fleetsu is a fleet management and vehicle insight solutions provider. Rand McNally is best known as a mapping software and hardware provider but also offers analytics and fleet management services. A report by Allied Market Research on Feb. 28 found that the global fleet management market is experiencing accelerated growth, with forecasts predicting the industry will reach $52.5 billion in value by 2030. That is more than double its current value.
The national average price of diesel dropped by a healthy 7.1 cents this week, tumbling to $5.073 a gallon. The price fell in all 10 regions that are surveyed by the Energy Information Administration, ranging from 10.2 cents in New England to just 1.3 cents in the Rocky Mountain region. Overall, diesel is still $1.944 a gallon more expensive than a year ago.
Tesla will start production next year of three products that have fallen behind Elon Musk’s original schedule, including Tesla’s electric truck called the “Semi.” At the opening of the carmaker’s newest factory in Austin, Texas, the Tesla CEO said the company would be in production in 2023 with Cybertruck, the Roadster and the Semi. In January Tesla said it was delaying introductions of new models until next year, citing challenges scaling up existing products in the midst of supply chain issues.
Self-driving truck tech company Aurora Innovation yesterday announced a partnership with carrier Werner to haul freight between Fort Worth and El Paso in Texas. Aurora said the trucking lane it will test for Werner is an essential link in the nation’s freight network, as it is the middle leg between Atlanta and Los Angeles. The route is more than 600 miles and takes approximately nine hours to complete, making it an attractive candidate for autonomous trucking.
North American Class 8 orders in March were just over 21,000 and kept pace with the levels over the past few months, ACT Research reported, citing truck makers’ preliminary data. Heavy-duty orders, which will be adjusted later in the month, were 21,300. ACT President Kenny Vieth noted manufacturers are only reporting orders scheduled to be built within 12 months. “Long backlogs and supply chain-constrained production activity kept new-order activity trending within a narrow range,” Vieth said. In March 2021, net orders were 40,049, according to ACT. Transportation intelligence company FTR pegged this March’s Class 8 preliminary orders at 21,500.
Standing alongside three Class 8 trucks parked outside the White House, President Joe Biden yesterday described a federal apprenticeship program designed to accelerate commercial driver license training as a “key ingredient” to boosting recruitment efforts in trucking. During an April 4 address that marked the culmination of a workforce recruitment challenge to trucking, Biden touted programs that “allow aspiring drivers to earn while they learn, while making this essential job more attractive to potential drivers regardless of age, background and gender.”
America’s employers extended a streak of robust hiring in March, adding 431,000 jobs in a sign of the economy’s resilience in the face of a still-destructive pandemic and the highest inflation in 40 years. The Labor Department’s April 1 report showed that last month’s job growth helped reduce the unemployment rate to 3.6%, the lowest level since the pandemic erupted two years ago. Despite the inflation surge, persistent supply bottlenecks, the damaging effects of COVID-19 and now a war in Europe, employers have added at least 400,000 jobs for 11 straight months.
In an effort to open up the nation’s clogged supply chains, the Biden administration on March 15 announced a pilot program under which trucking companies, ports, retailers and major ocean carriers would share data with one another to improve the overall flow of goods. Called Freight Logistics Optimization Works or FLOW, the program will start with 18 companies, including UPS Inc., FedEx Corp., C.H. Robinson, Target and True Value Hardware, along with the ports of Los Angeles and Long Beach, the Georgia Ports Authority, and several other transportation providers and businesses.
American Trucking Associations is among the groups proposing that the California Air Resources Board consider supply chain pressures for granting the industry alternatives to certain regulatory compliance. In a recent letter to CARB’s leadership about an emissions rule for trucks, the groups insist it would be difficult for aspects of the industry to upgrade to a 2010 model year emissions-equivalent engine by the end of the year. They propose that the agency allow certain fleets the ability to show intent to purchase a used vehicle with similar compliance considerations that exist under a delay provision in the emissions rule.
Over the coming weeks, Congress is expected to be consumed by rising energy prices and a foreign policy agenda that includes Russia’s invasion of Ukraine. Democratic leaders are signaling the potential for considering legislative remedies aimed at providing some sort of assistance to middle-class households grappling with inflation and the price at the pump. The price of diesel shot up 40.1 cents, setting a record at $5.25 a gallon, in Monday’s report from the Energy Information Administration. Since the start of the year, consumer prices have moved steadily upward due partly to ongoing supply chain bottlenecks.
Retail sales and orders for Class 8 trucks in February barely budged over January numbers. Sales reached 14,916, a tiny increase over January’s total of 14,854, according to Wards Intelligence. Class 8 orders in February came in at 21,000, or essentially even with January’s volume, according to ACT Research. But compared to a year ago February, numbers were down slightly for sales, 2.9%, and significantly for orders, by more than half. One analyst said it’s the length of the backlog, not the order volume, that best defines the shape of the demand for new trucks.
Pilot Flying J announced March 9 that it plans to spend $1 billion to remodel nearly 500 of its oldest travel centers across the country. The Knoxville, Tenn., company said the three-year initiative it is calling “New Horizons” is the largest plan in its history to modernize and upgrade its facilities. All told, Pilot Flying J has 800 stores. Some of the money will be spent to upgrade its newer facilities as well. Company executives said they are trying to reinvigorate Pilot Flying J’s customer base, much of it being professional truck drivers who have endured difficult conditions the past two years because of the pandemic.
Ceva Logistics announced it teamed up with autonomous commercial vehicle technology company Kodiak Robotics to deliver freight autonomously between Dallas-Fort Worth and Oklahoma City, expanding on an existing relationship. The latest route on the Interstate 35 corridor runs 200 miles between a Ceva facility in Dallas and the delivery point in Oklahoma City. The companies said the shipments along the new route mark the first freight deliveries by autonomous truck in Oklahoma.
XPO Logistics Inc. announced that its board of directors has approved a plan to separate its tech-enabled brokered transportation services from its less-than-truckload business in North America, and intends to divest its European business and North American intermodal operation.
Yesterday, the U.S. Environmental Protection Agency announced a proposed rulemaking to further restrict emissions of soot-forming nitrogen oxides by heavy-duty diesel and gasoline engines starting in model year 2027. EPA’s intention is to reduce these types of emissions from trucks by as much as 60% in 2045. EPA also announced it intended to set new greenhouse gas emissions standards for heavy-duty vehicles as soon as model year 2030. In response to the announcement, American Trucking Associations said it shares the administration’s goal of cleaner air, and wants to help ensure an outcome that is not harmful to the industry.
Transportation Secretary Pete Buttigieg told U.S. senators his agency is addressing the need for increasing access to parking for truck drivers. The longstanding industry concern was raised during a hearing of the Senate Environment and Public Works Committee with the secretary on March 2. Buttigieg pointed to several DOT programs that would ideally help tackle the issue. In addition, the recently enacted $1 trillion Infrastructure Investment and Jobs Act dedicates funds to enhance freight connectivity and alleviate supply chain bottlenecks.
A new report from the National Highway Traffic Safety Administration on 2020 crash data shows that despite fewer miles traveled during the first year of the pandemic, 38,824 lives were lost in traffic accidents. That marks a 6.8% increase and the highest number since 2007. However, the number of fatalities in large-truck crashes declined by 6.9%, falling to 832 in 2020 from 893 in 2019. Injuries suffered in large-truck crashes declined by 1.7%, to 44,934 in 2020 from 45,688 the year before, NHTSA said in the report that was made public March 2.
The U.S. Department of Labor has partnered with American Trucking Associations for an apprenticeship program that could play a significant role in easing the industry’s driver shortage, and presents motor carriers with an opportunity to directly work with and train new entrants into their ranks. Labor Secretary Marty Walsh was joined by Transportation Secretary Pete Buttigieg and ATA leadership at a March 1 signing ceremony at the department’s headquarters to formally establish ATA as an official registered apprenticeship sponsor. The signing ceremony centered on a 90-day apprenticeship challenge launched by the Biden-Harris administration.
January’s average retail sales price for a used Class 8 truck burst past $88,000 to set a monthly record and post an 83.2% gain compared with a year earlier, ACT Research reported. The average retail price was $88,293 compared with $48,190 in the same 2021 period, according to ACT. January also was up from $82,341 in December, the previous high. Estimated sales were 22,300. That was up from 20,700 a year earlier and slightly less than December’s 22,800.
On March 1, President Joe Biden is scheduled to deliver a State of the Union address, for which he will outline an agenda for the year. Matters pertaining to Ukraine, his Supreme Court pick and ensuring funds for aspects of his domestic “Build Back Better” budget will be dominant themes. Infrastructure spending also is expected to be among the guiding principles of that agenda. Since the enactment of the $1 trillion Infrastructure Investment and Jobs Act, or IIJA, Biden has detailed historic funding allocations for freight connectivity projects, transit options, disaster mitigation programs, electric vehicle facilities and all policy matters capable of responding to supply chain bottlenecks.
Four Rocky Mountain states will cooperate on developing ways to make the most abundant element in the universe — hydrogen — more available and useful as clean-burning fuel for cars, trucks and trains, the states’ governors announced Feb. 24. Colorado, New Mexico, Utah and Wyoming will plan a “hydrogen hub” to be built somewhere in the region, drawing from $8 billion in recently approved federal infrastructure funding for four or more such regional hubs in the U.S. Goals will include economic development and the research into cost-effective generation, transportation and use of clean hydrogen, the states’ agreement said.
Canadian lawmakers say the trucker demonstrations across the country have the potential to cause profound trade disruptions with the United States. Yesterday, the Ambassador Bridge, which connects Detroit and Windsor, Ontario, was partially blocked by truckers protesting Canada’s vaccine mandates and other COVID-19 restrictions. Ontario Premier Doug Ford called the bridge a “vital trade artery” that carries 25 percent of trade between the countries.
The national average price for a gallon of diesel jumped by 10.5 cents this week, inching ever closer to the $4 a gallon mark. It now sits at $3.951 a gallon, the highest it has been since May of 2014, according to Energy Information Administration data. In California, diesel is a nickel away from hitting $5 a gallon.
The U.S. House of Representatives passed an expansive bill Friday that would invest tens of billions in the U.S. tech sector, but Republican objections that it’s too weak on China threaten its chances of making it to President Biden’s desk. The bill started as a bipartisan push to bolster U.S. manufacturing and research, and ease the dependence on China for semiconductors, but it became mired in long-standing partisanship over U.S. policy on China. A final version of the legislation still has to be negotiated with the Senate, where Republicans wield filibuster power, and could be months away.
Class 8 orders in January plunged compared with a year earlier to just above 21,000, and reflected the caution truck makers continue to exhibit in the face of ongoing supply chain difficulties and an already very lengthy backlog, ACT Research reported. Orders reached 21,300 compared with 42,307 a year earlier. A lack of semiconductors from Taiwan has caused median inventory held by chip consumers, including automakers or medical device manufacturers, to fall from 40 days in 2019 to less than five days in 2021.
President Joe Biden’s nominee to lead the National Highway Traffic Safety Administration was easily approved by the U.S. Senate Commerce committee on Feb. 2. Steven Cliff, presently NHTSA’s deputy administrator, was cleared by a voice vote. His nomination will now move to the Senate floor, where Democratic leaders will schedule a vote to confirm his appointment as early as this month.Cliff has indicated he intends to focus the agency’s efforts on boosting safety programs as well as managing the adoption of vehicle technologies.
Solera Holdings, the parent company of Omnitracs, has agreed to acquire asset-tracking firm Spireon Inc. in the latest example of consolidation in the trucking industry’s technology market. Solera is set to acquire Spireon from a fund managed by private equity firm Greenbriar Equity Group, but the companies did not disclose the terms of the deal. The acquisition is expected to close during the first quarter. Spireon, headquartered in Irvine, Calif., provides the FleetLocate brand of trailer and asset monitoring technology and serves more than 13,000 customers with nearly 4 million connected devices.
Solera Holdings, the parent company of Omnitracs, has agreed to acquire asset-tracking firm Spireon Inc. in the latest example of consolidation in the trucking industry’s technology market. Solera is set to acquire Spireon from a fund managed by private equity firm Greenbriar Equity Group, but the companies did not disclose the terms of the deal. The acquisition is expected to close during the first quarter. Spireon, headquartered in Irvine, Calif., provides the FleetLocate brand of trailer and asset monitoring technology and serves more than 13,000 customers with nearly 4 million connected devices.
J.B. Hunt Transport Services has entered into a definitive agreement to acquire the assets of Zenith Freight Lines for approximately $87 million, the Lowell, Ark.-based carrier announced Jan. 31. Zenith is a wholly owned subsidiary of home furnishings manufacturer Bassett Furniture Industries. J.B. Hunt will continue to provide services for Bassett once the deal closes as part of a long-term master services agreement.
A 50-year-old bridge collapsed in Pittsburgh Friday on the same day that President Biden was already scheduled to visit the area to discuss infrastructure. There were minor injuries from the collapse but no fatalities. Witnesses said the loud noise from the collapse was followed by a hissing sound and the smell of natural gas. Ruptured gas lines along the bridge produced the leak. The cause was being investigated. Biden was visiting the city to promote his $1 trillion infrastructure law, which has earmarked about $1.6 billion for Pennsylvania bridge maintenance.
If you’re in the market for a used truck, it’s going to cost you about 66% more than it would have a year ago. The average retail price for a used Class 8 truck in December hit another monthly record as it cleared $82,000. A year earlier, the average price was just $49,634. Low inventory and high demand is to blame, as fleets find themselves waiting for new trucks that they’ve ordered to go into production.
A new survey from the Women In Trucking Association shows that female drivers would recommend that motor carriers adopt training policies allowing them the option for a same-gender trainer when involved in on-the-road activities, among other recommendations. The association said that the North American trucking industry gradually has come to a consensus on the need to encourage more female truck drivers. Recent U.S. Department of Labor data indicates that there has been an 88% increase in female drivers since 2010, although women still make up fewer than 8% of professional truck drivers.
The Occupational Safety and Health Administration is formally withdrawing its emergency temporary standard mandating that companies with at least 100 employees require their workers to receive COVID-19 vaccinations, the agency announced yesterday. The withdrawal of the standard, which also allowed for weekly testing, comes after a Jan. 13 U.S. Supreme Court opinion remanded the standard to a lower court, saying that challengers to the rule — including American Trucking Associations — were likely to prevail on their claims. The high court voted 6-3 to stay the temporary standard, ruling that OSHA did not have the authority to issue the mandate.
The average price of a gallon of diesel is still rising, increasing 5.5 cents to $3.78, according to Energy Information Administration data released yesterday. Diesel has seen a recent spike, rising 16.7 cents over the past three weeks, after a brief stretch of falling prices around the holidays. Trucking’s main fuel is now a dollar and change more than it was at this time last year.
The Port of Los Angeles moved record cargo volumes in 2021 amid an import surge at the biggest U.S. container gateway and supply chain snarls brought on by the pandemic. The West Coast port handled 10.7 million 20-foot-equivalent container units in 2021, 13% more volume than in 2018, the previous record year, Executive Director Gene Seroka said. Neighboring Port of Long Beach also hit a record this year, moving 9.38 million TEUs last year, almost 16% more than a year earlier, it said Jan. 19.